On Wednesday, billionaire Elon Musk acknowledged the improbability of his ambitious plan to cut $2 trillion from the U.S. federal budget. This acknowledgment was highlighted by a critic as evidence of the impracticality of the so-called Department of Government Efficiency.
“Before President-elect [Donald] Trump even steps into office, Elon Musk is already conceding defeat regarding the deeply unpopular and impractical objectives of DOGE,” stated Lindsay Owens, executive director of the Groundwork Collaborative. “Americans are not deceived by Musk’s plan to finance his own tax reductions by stripping funds from Social Security, Medicaid, and Medicare.”
Musk, the wealthiest individual globally and a Trump supporter, described in a Wednesday interview that achieving a $2 trillion reduction in federal spending would be “an epic outcome” but considered it a “best-case” scenario. Experts have ridiculed Musk’s $2 trillion goal as ludicrous, especially since the entire discretionary budget for Fiscal Year 2024 was only $1.6 trillion.
On Thursday, Bobby Kogan, the senior director of federal budget policy at the Center for American Progress, termed Musk’s lesser goal of $1 trillion in cuts as “excessively large.” He elaborated, “If you safeguard Social Security, Medicare, veterans, and defense, it would necessitate cutting every other program by an average of 45%.” Similar extreme reductions have been proposed by Republican legislators.
Critics of the Department of Government Efficiency—an advisory committee slated to be co-led by Musk and billionaire Vivek Ramaswamy—have cautioned that it is a covert attempt to slash Social Security, Medicare, Medicaid, and other mandatory spending programs. This concern was heightened by recent remarks from GOP advocates of the committee.
“I am committed to discussing and reassessing them, and I think, ultimately, some reductions will occur,” Rep. Greg Lopez (R-Colo.) mentioned outside the inaugural meeting of the House DOGE Caucus, referring to Medicare and Social Security.
Prior to the 2024 elections—where he invested heavily—Musk noted that the budget cuts he proposed would “inevitably lead to some temporary difficulties,” though he did not specify which programs would be affected.
“If the incoming president enacts even a portion of the $2 trillion in cuts that Musk and his associates have pledged, the impact will extend far beyond economically challenged rural America,” journalist Conor Lynch reported for Truthdig earlier in the week. “Particularly, veterans, who predominantly supported the president-elect, might face severe consequences.”
“Shortly after his appointment as Musk’s co-chair at the so-called Department of Government Efficiency, Vivek Ramaswamy took to X to state that the first agenda should be to cease all funding for programs without current congressional authorization, which sums up to over half a trillion dollars,” Lynch added. “Observers quickly highlighted that if Trump adopted Ramaswamy’s suggestion, it would immediately cut off healthcare funding for veterans, the largest expense in that category.”
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An economic reporter, Dax Everly breaks down financial trends and their impact on Americans’ daily lives.