Trump Tasks Musk with Government Streamlining Panel

WASHINGTON (Reuters) – Donald Trump has tasked Elon Musk with setting up a panel to streamline the U.S. government. Although the president-elect has said little about how this group would operate, Musk has previously set an ambitious goal of cutting $2 trillion of spending.

Panel Leadership

The new panel, headed by Musk, the world's richest person, and former Republican Presidential candidate Vivek Ramaswamy, aims to enhance government efficiency.

What Does Musk Want to Cut?

At a Trump rally in October, Musk claimed the federal budget could be reduced by "at least" $2 trillion. Discretionary spending, including defense, is expected to total $1.9 trillion of the projected $6.75 trillion budget for fiscal 2024, making this target challenging.

Musk, known for Tesla and SpaceX, has deep knowledge of NASA and the Pentagon due to extensive contracts for rockets and satellites. He has had regulatory conflicts with the Department of Transportation regarding rocket launches and autonomous driving investigations.

Ramaswamy, who founded Roivant Sciences, has a history of critiquing the FDA, labeling it "corrupt" and calling out its regulations as hypocritical.

Musk and Trump's Vision for the Panel

Trump stated the panel would offer advice and guidance on reducing government size, cutting regulations, and restructuring federal agencies. He aims to eliminate the Department of Education and undermine the "deep state."

While they promise significant cuts, such actions are primarily within Congress's domain. Musk and Trump stated the panel would welcome public input about its recommendations.

Precedent for the Efficiency Panel

In February 1982, Ronald Reagan formed a group of private sector experts to eliminate inefficiency in the federal government, known as the Grace Commission. Under J. Peter Grace, the Commission made around 2,500 recommendations, most of which were never implemented.

In March 2017, Trump signed an executive order to improve federal agency efficiency and proposed reorganization plans, but faced challenges in cutting agencies during his first term.

Musk's Cost-Cutting Experience

Musk significantly reduced costs at Twitter by laying off about half its workforce following advertiser pullback. His greater success has been with SpaceX, which dominated satellite launches due to its rocket reusability, thereby contributing to military efficiency.

Panel Operation Rules

The panel would likely be governed by the Federal Advisory Committee Act, ensuring advice is prompt, objective, and publicly accessible. This law mandates cost controls and documentation for the numerous committees advising the President and the executive branch.