[Elon Musk Walks Back Claim of Cutting $2 Trillion from Federal Budget
Elon Musk, who has been tasked by President-elect Donald Trump to co-lead the Department of Government Efficiency (DOGE), has walked back his previous claim that he could cut at least $2 trillion from the federal budget. In an interview streamed on X, which he owns, Musk said that cutting half that amount would be “an epic outcome.”
Musk, who has been tasked with downsizing the federal budget and operations, said that the $2 trillion target is “the best-case outcome.” He believes that if the budget deficit can be reduced from $2 trillion to $1 trillion, it would free up the economy to have additional growth without causing inflation.
Musk also emphasized the need to streamline the federal government, saying that there are many targets for cost savings within the government. However, budget experts have scoffed at his pronouncements, saying that eliminating $2 trillion from a roughly $6.8 trillion budget is unrealistic.
DOGE, which is co-led by entrepreneur Vivek Ramaswamy, does not have the power to make spending cuts or regulatory changes, but Musk’s comments carry weight with lawmakers. Many congressional Republicans and some Democratic lawmakers have embraced DOGE’s mission to streamline the federal government.
In the interview, Musk also reiterated his complaints about federal regulations, saying that they have interfered with his business ventures. He believes that many regulations are unnecessary and that DOGE should focus on getting rid of ones where the harm is worse than the good.
Musk’s comments come as DOGE is set to make recommendations to the White House on how to streamline the federal government. While some lawmakers have expressed support for DOGE’s mission, others have been skeptical of Musk’s claims.
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