TechFlow news — On January 10, according to Cailian Press, Elon Musk admitted in an interview with Mark Penn, former advisor to the Clinton administration and political strategist, that the proposed U.S. Department of Government Efficiency (DOGE) would struggle to achieve the previously promised $2 trillion reduction in federal spending. This contrasts sharply with his statement last October during a Trump campaign rally, where he claimed the initiative could cut "at least $2 trillion." Musk explained that setting an ambitious target was intended to ensure meaningful results: "If we aim to cut $2 trillion, we might actually achieve $1 trillion."
According to U.S. Treasury data, fiscal year 2024 spending reached $6.75 trillion, while the government's discretionary budget amounted to only $1.7 trillion. Musk stated that reducing the budget deficit from $2 trillion to $1 trillion and unlocking economic potential—so that growth in goods and services keeps pace with money supply expansion—could help control inflation. Experts anticipate that Musk and Ramaswamy may focus spending cuts on social welfare programs such as Medicaid.
