Tech mogul Elon Musk, who was appointed by President Donald Trump to spearhead federal cost-cutting initiatives, warned on Tuesday that the United States could face financial collapse without serious budget reductions.
Leading the newly established Department of Government Efficiency (DOGE), Musk made the statement during a discussion at the White House alongside Trump, who has recently issued several executive orders aimed at curbing government spending.
Musk specifically highlighted the country’s growing budget deficit, which exceeded $1.8 trillion in the last fiscal year, and raised concerns about the mounting interest payments on national debt.
“Cutting spending isn’t just an option—it’s a necessity,” he told reporters.
However, the administration’s aggressive cost-cutting measures have sparked legal challenges, with federal judges questioning whether these initiatives are even lawful.
Trump’s sweeping budget reforms, which have led to the closure of some federal agencies and furloughs for employees, are now the subject of multiple lawsuits. Opponents argue that these moves amount to an unconstitutional overreach of executive power.
Despite the backlash, Musk’s team has pushed forward, halting aid programs and initiating workforce reductions across federal agencies.
A recently signed executive order outlines DOGE’s strategy, including a plan to significantly downsize the federal workforce. Under the new policy, agencies will only be allowed to hire one new employee for every four that leave their positions.
Additionally, agency heads must consult with DOGE before deciding which vacancies to fill, ensuring strict oversight of hiring practices.
When pressed about the controversy surrounding the reforms, Musk emphasized that the American people had voted for sweeping government changes, echoing the themes Trump championed during his campaign rallies.
Musk, who also runs Tesla and SpaceX, addressed concerns over potential conflicts of interest, stating that he is committed to full transparency. However, critics argue that his involvement raises ethical questions, as his companies have secured significant government contracts.
Further concerns have been raised over DOGE’s access to sensitive financial data via the U.S. Treasury, with opponents warning that the level of control granted to Musk’s team could set a dangerous precedent.
