‘Your money is being wasted’: Elon Musk just claimed he could cut $2 trillion from the US federal budget — promises to ‘get the government off your back.’ Can he really?

It’s unclear where Lutnick got his figure from, but in the 2024 fiscal year, the federal government spent $6.75 trillion. More than three-quarters of this was for Social Security, health care, defense, and veterans’ benefits — which as Bloomberg pointed out are “politically fraught and notoriously difficult to convince Congress to cut” — as well as interest on the national debt.

Musk didn’t hesitate. “I think we can do at least $2 trillion,” he replied confidently. Lutnick responded with a fist pump and sparked another eruption of cheers from the crowd.

While Musk didn’t detail specific areas for cuts, he spoke sharply about government spending and taxation.

“At the end of the day, you’re being taxed … All government spending is taxation,” he said. “Your money is being wasted, and the Department of Government Efficiency is going to fix that. We’re going to get the government off your back and out of your pocketbook.”

The crowd roared its approval again, energized by Musk’s promise of a leaner government. But can he fulfill it?

Department of Government Efficiency (DOGE)

When Trump rolled out his economic proposals in September — including a new government efficiency commission to be led by Musk — the Tesla CEO expressed his willingness to take on the role.

“I look forward to serving America if the opportunity arises. No pay, no title, no recognition is needed,” Musk wrote in a post on X.

In characteristic style, Musk has joked about his prospective role as head of the “Department of Government Efficiency,” nicknamed “DOGE” after the cryptocurrency he has frequently championed.

Trump acknowledged Musk’s many commitments and doubted he could dedicate himself to the role full-time. “I don’t think I can get him full-time because he’s a little bit busy sending rockets up and all the things he does. But he’s so much into that, he said the waste in this country is crazy,” Trump remarked.

And Trump doesn’t plan to pay Musk for his efforts — which, with a net worth of $272 billion, Musk probably doesn’t need.

Musk, who has endorsed Trump for president, sees a Trump victory as “a once in a lifetime” opportunity in deregulation and reduction in the size of government.

And as someone who runs multiple businesses, Musk is no stranger to downsizing. When he acquired Twitter (now X) in 2022, the company had around 7,800 employees. By 2023, Musk revealed in a BBC interview that the workforce had been cut to just 1,500 — a staggering 80% reduction.

The challenge

If Musk takes on the efficiency commission, he’ll face a formidable challenge.

The federal government ran a $1.83 trillion deficit for the 2024 fiscal year. This is the amount by which spending exceeded revenue.

When a government that’s already in debt keeps spending beyond its means, it adds to the national debt. As the Treasury noted, “The deficit this year contributed to a national debt of $35.46 trillion through September 2024.”