Elon Musk plans ambitious $1 Trillion cuts amid federal workforce reductions

Musk, in an interview with news agency said that he believes that his Department of Government Efficiency can find that level of cost savings within 130 days from the start of Trump’s term, which began on Jan. 20.

That presents an ambitious goal that would require slashing more than half of the $1.8 trillion the US spent on non-defense discretionary programs in 2024.

Musk is a special government employee, a classification for temporary federal workers who are only supposed to work 130 days out of the year in their roles.

Musk said he wants to cut 15% of the government’s annual spending — which amounted to $6.75 trillion in fiscal year 2024. That’s a reduction of about $1 trillion. Musk says he is confident he can slash that amount “without affecting any of the critical government services.”

The interview came days after Trump said that he expected to be “satisfied” with DOGE’s cuts in the coming month or two.

The president has also said DOGE’s overhauls are not “necessarily a very popular thing to do,” an acknowledgment of the political risk associated with Musk’s plans for wide-ranging cuts.

Much of the federal government’s spending is on mandatory programs, such as Medicare and Social Security, where there is little leeway to make cuts.

Musk has said, without citing evidence, that those programs are overrun with fraud and waste.