Original author: Liz Napolitano
Original translation by: Block unicorn
SpaceX CEO Elon Musk and entrepreneur Vivek Ramaswamy will co-lead a new U.S. government initiative aimed at reducing the federal budget deficit.
The plan, named the 'Department of Government Efficiency' (D.O.G.E), shares the same acronym as Musk's favorite cryptocurrency, Dogecoin. According to President-elect Donald Trump, the plan will 'cut unnecessary regulations, reduce wasteful spending, and reorganize federal agencies.'
However, some details of the project remain unclear. Here is everything we currently know about DOGE.
What is DOGE?
DOGE is a plan soon to be launched by the U.S. government, first mentioned by Elon Musk in a tweet last August.
While the project initially appeared to be a joke (created just for fun, and it is not surprising that the price of Dogecoin rises whenever Musk mentions it), Trump has supported DOGE's initiative to cut government spending, suggesting that this once fictional department may indeed become a real-life U.S. government affiliate.
Trump stated in a statement on Tuesday: 'Elon Musk and Vivek Ramaswamy will work together to pave the way for my government to dismantle the bureaucratic structure, cut unnecessary regulations, reduce wasteful spending, and reorganize federal agencies - which is critical to the 'Save America' movement.'
Trump also noted that the project will last 'no later than July 4, 2026', which marks the 250th anniversary of the Declaration of Independence.
It is worth noting that, according to information from the U.S. Congress website, DOGE is not an official department of the U.S. government in the traditional sense, as only Congress (not the president) can approve the establishment of new federal government departments.
Trump stated that Musk's meme-related ideas will exist 'outside' the government system. This means DOGE may not receive government funding support. It also indicates that the project's ability to directly control the budget of U.S. government agencies will be very limited, although DOGE's directives may be implemented through Trump's supporters in Congress.
Who will manage DOGE?
Billionaire Elon Musk and Vivek Ramaswamy will lead the Department of Government Efficiency. According to a tweet posted by Musk on Thursday, neither of them will be compensated for this work.
Of course, Musk is the CEO of Tesla and SpaceX, and the owner of Twitter (now called X). Vivek Ramaswamy is an entrepreneur who was a Republican presidential candidate and withdrew from the race during the primaries to support Trump.
According to an official post released by the department on Thursday, the plan is tentatively to be composed of a group of 'super high IQ individuals who support the small government revolution' who are willing to work over 80 hours a week to cut wasteful costs. Elon Musk tweeted this week that it is still unclear how many employees will be hired to work on the project, but these jobs will be unpaid.
As of now, neither Ramaswamy nor Musk has immediately responded to Decrypt's request for comments.
What will DOGE actually do?
Trump stated that the responsibilities of DOGE are to streamline the U.S. government by providing recommendations and guidance for reducing government regulation and spending through report publication.
'Your money is being wasted, and the Department of Government Efficiency will address this issue. We will no longer let the government entangle you or take money from your wallets,' Musk said at a Trump rally in Madison Square Garden in New York City in October.
However, the billionaire leaders of this quasi-department have given different statements on how much U.S. federal government spending should be cut.
Musk suggested cutting federal spending by $2 million, which would account for one-third of the total U.S. federal budget. Meanwhile, Ramaswamy indicated that he hopes to reduce the number of U.S. federal government employees by 75%, although the impact of this reduction on the budget remains unclear.
Despite these differences, according to Ramaswamy and Musk's recent public comments, DOGE leaders seem to agree on cutting a significant number of federal government employees and several U.S. agencies, such as the Department of Education and the FBI, to reduce costs.
Musk said on Twitter on Thursday: 'The extent of government funding waste is beyond what the public imagines.' He was referring to over $6 trillion in U.S. federal government spending in 2023.
Musk also stated that DOGE will hold weekly live broadcasts to share its progress.
Why is it called DOGE?
The acronym DOGE for the virtual department seems to be a playful reference to Dogecoin (DOGE), a meme coin favored by Elon Musk. This connection was further reinforced by a T-shirt sold officially by Trump, which features an image of President-elect Trump, Musk, and a Shiba Inu.
This meme, famous for its Shiba Inu mascot, was invented by a pair of software engineers in 2013. Musk has stated that he owns 'a bunch' of Dogecoin and has frequently discussed the token on Twitter over the past few years. In 2021, he even referred to himself as the 'Dogefather' and mentioned the token while hosting Saturday Night Live.
During Musk's support for Trump's campaign, the value of Dogecoin soared, and after Trump's victory and the official announcement of the DOGE leadership, its value skyrocketed even further. Dogecoin hit a three-year high last week, driving up the value of other well-known meme coins.
