More power to you: Trump gives Elon Musk crucial cost-cutting task, sending jitters across US govt

In a move that further expands billionaire Elon Musk’s influence in Washington, President Donald Trump signed an executive order on Tuesday that directs federal agencies to initiate “large scale” work force reductions.

The order grants Musk’s cost-cutting team significant oversight over the hiring and firing of career officials in an unprecedented shift in federal governance.

The Department of Government Efficiency (DOGE), which is headed by Musk, will now oversee agency staffing and hiring practices.

Besides agencies involved in law enforcement and immigration, most federal departments will now require hiring approval from a DOGE official, the New York Times reported. The directive mandates that agencies can hire only one new employee for every four who leave.

Effectively, the order now gives Musk sweeping control over staffing in the US government, further tightening his grip on Washington.

Musk even defended DOGE’s work amid growing concerns, saying that what the department is doing is “common sense” and “not draconian or radical”.

Musk and Trump appeared together in the Oval Office on Tuesday, where they spent 30 minutes defending the restructuring.

“It’s not optional for us to reduce the federal expenses. It’s essential. It’s essential for America to remain solvent as a country.”

Musk, who wore a black “Make America Great Again” hat during the event, described the federal workforce as an “unelected, fourth, unconstitutional branch of government” that has “more power than any elected representative,” according to The Wall Street Journal.

The restructuring plan is already facing resistance. A federal judge in Massachusetts has temporarily paused a Trump administration offer that allowed federal employees to resign with paid leave through September. Additionally, US District Judge Paul Engelmayer in New York recently placed a temporary restriction on DOGE’s access to a Treasury Department payment system responsible for trillions of dollars in annual payments. A hearing on the matter is set for Friday.

Musk dismissed concerns over potential conflicts of interest, saying, “There are sort of checks in place. So it’s not just us just going in and doing things willy-nilly.”

He acknowledged the scrutiny but compared it to a “daily proctology exam.”

He also admitted that he might occasionally spread incorrect information, saying, “Some of the things that I say will be incorrect and should be corrected. Nobody is going to bat 1,000.”

With DOGE embedding itself in at least 19 federal agencies, its cost-cutting measures are already reshaping government operations, NYT reported.

The Department of Education has cut over $900 million in spending, terminating 89 contracts and 29 grants linked to diversity, equity and inclusion programs. The Trump administration also fired four Federal Emergency Management Agency (FEMA) employees, including the agency’s chief financial officer, over allegations that they disbursed funds to house migrants in New York City hotels.

Despite mounting legal challenges and Democratic criticism that Musk is orchestrating a “hostile takeover of government,” he remains steadfast. “The people voted for major government reform, and that’s what people are going to get,” Musk said.

With Musk speaking to Trump “almost daily” and DOGE rapidly consolidating authority over federal hiring and budgeting, the billionaire’s power in Washington appears to be growing by the day.