Elon Musk and Vivek Ramaswamy recently proposed a comprehensive strategy aimed at reducing federal staff under the guidance of President Donald Trump. Their proposal emphasizes large-scale layoffs of federal employees, which they believe can be achieved by eliminating a significant amount of regulatory measures.
Elon Musk and Vivek Ramaswamy announced a plan to reduce the U.S. workforce.
In a recent (Wall Street Journal) article, Elon Musk and Vivek Ramaswamy, co-chairs of the newly established Department of Government Efficiency (DOGE), detailed their plan to streamline the federal workforce. This ambitious plan proposes converting some federal employees to 'Class F', stripping them of their traditional job security. This move will ultimately reduce the size of the federal workforce.
The column in the (Wall Street Journal) coincides with the Supreme Court's rulings, and the two believe these rulings grant the new government the executive authority to implement comprehensive reforms.
The plan is directly related to the broader goals of the Trump administration to cut federal spending and reduce government bureaucracy. The CEO of Tesla and Ramaswamy stated that many federal jobs will naturally disappear through the reduction of federal regulations.
The two expressed their commitment to future missions, stating:
"We will serve as external volunteers rather than federal officials or employees. Unlike government committees or advisory boards, we will not just be writing reports or cutting ribbons. We will cut costs."
Additionally, they mentioned that collaboration with the Trump transition team is underway. This collaboration will recruit a group referred to as 'small government fighters'. These individuals will work with the White House Office of Management and Budget.
Reduction of regulation and its impact on federal employment
Elon Musk and Vivek Ramaswamy claim that reducing the number of federal regulations will directly impact the number of federal employees. They believe that the fewer regulations there are, the more employees are needed to enforce those regulations. This, in turn, will lead to a reduction in federal workers.
The strategy largely relies on recent Supreme Court rulings that support the president's authority to revoke regulations that exceed the powers granted by Congress.
Elon Musk and Ramaswamy further elaborated on their DOGE strategy and cited two specific Supreme Court cases: West Virginia v. Environmental Protection Agency (2022) and Loper Bright v. Raimondo (2024). According to the two, these cases highlight the limitations of federal regulatory authority.
The implementation of Elon Musk and Ramaswamy's plan will lead to one of the most significant reorganizations of government. A recent report indicated that a request made by Ripple CLO Alderoty to DOGE may prompt the U.S. Securities and Exchange Commission to conduct a thorough investigation into financial activities.