Musk's DOGE Ambitions Shrink: Why $2 Trillion Budget Cuts May Be Out Of Reach

Elon Musk walked back his ambitious federal budget-cutting plans last week, telling investors that slashing $2 trillion from government spending would be a “best-case outcome” for his upcoming role in the Trump administration.

“I think if we try for $2 trillion, we’ve got a good shot at getting one,” Musk said to political strategist and Stagwell Inc. chairman Mark Penn during an interview on X, formerly Twitter. The tech billionaire will colead Trump’s new Department of Government Efficiency (DOGE) alongside former presidential candidate Vivek Ramaswamy.

Don't Miss:

• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.
• Built on the trusted network of Fortune 500 companies, this blockchain company partners with Salesforce to uproot lengthy and expensive B2B transactions, and you can invest with just $100.

The reduced target undercuts Musk’s October stance at Trump’s Madison Square Garden rally, where he promised to cut “at least $2 trillion” from federal spending. Budget experts immediately questioned the math behind such deep reductions, given current spending levels.

Federal expenditures reached $6.75 trillion in fiscal year 2024, with $5.3 trillion allocated to Social Security, health care, defense, veterans’ benefits and debt interest, according to a report issued by Bloomberg. Trump repeatedly promised voters he would not touch Social Security or Medicare during his campaign.

When Penn pressed for specifics on potential cuts, Musk described the government as a “very target-rich environment for saving money” but offered no concrete plans. “It’s like being in a room full of targets, like you could close your eyes and you can’t miss,” he said.

See Also: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.

Previous attempts to dramatically reduce federal spending have stalled in Congress. Sen. Rand Paul’s recent proposal to cut six cents from every projected spending dollar over five years failed to gain traction, even with Republican majorities in both chambers.

“There’s a lot of us out here who are skeptical that they’re really going to be able to come in out of nowhere and figure out all these savings that nobody else has been able to figure out all these years,” Philip Wallach, senior fellow at the American Enterprise Institute, told Newsweek.

Musk pitched his revised goal as an “epic outcome” if achieved. “If we can get, drop the budget deficit from $2 trillion to $1 trillion and kind of free up the economy to have additional growth such that the output of goods and services keeps pace with the increase in the money supply, then there will be no inflation,” he said.

Trending: With 100+ historic trademarks including some of the high grossing characters in history, like Cinderella, Snow White and Peter Pan, this company is transforming the $2 trillion entertainment market with patented AR, VR, and AI tech. — For a short window, investors are able to claim $2/share ($980 min).

The timing of Musk’s tempered expectations mirrors other campaign promises meeting reality. Trump recently extended his timeline for brokering peace between Ukraine and Russia from his first day to six months in office.

Congressional Republicans have begun meeting with Trump to map out his legislative agenda, including tax cuts and immigration reform. However, lawmakers have yet to reach consensus on moving the initiatives forward.

Musk and Ramaswamy take their positions leading the efficiency department when Trump returns to the White House on January 20.

Read Next:

• According to Juniper Research, the total value of B2B cross-border payments stored on the blockchain is projected to exceed $4.4 trillion — Join the first company to bring blockchain payments to Salesforce early with just $100.
• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!