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, called the Department of Government Efficiency (DOGE), which shares the same acronym as the code for Musk’s favorite cryptocurrency, Dogecoin, will “cut redundant regulations, reduce wasteful spending, and reorganize federal agencies,” according to President-elect Donald Trump.
However, some details of the project remain unclear. Here is everything we know about DOGE so far.
What is DOGE?
DOGE is an upcoming initiative of the US government, first mentioned by Elon Musk in a tweet last August.
While the project initially seemed like a joke (it was built for jokes, and unsurprisingly the price of Dogecoin rises whenever Musk mentions it), Trump has expressed support for DOGE’s initiative to cut government spending, suggesting that the once-fictional department will actually become a real-life U.S. government affiliate.
"Together, Elon Musk and Vivek Ramaswamy will pave the way for my administration to dismantle the government bureaucracy, cut redundant regulations, reduce wasteful spending, and reorganize federal agencies — all critical to the 'Save America' movement," Trump said in an announcement on Tuesday.
Trump also noted that the program will continue until "no later than July 4, 2026," the 250th anniversary of the (Declaration of Independence).
It is worth noting that according to the information on the U.S. Congress website, DOGE is not an official department of the U.S. government in the traditional sense, because only Congress (not the President) can approve the establishment of new federal government departments.
Trump said Musk’s meme-related ideas will exist “outside” of the government system. This means DOGE may not receive government funding. It also means that the project’s ability to directly control the budgets 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?
Billionaires Musk and Vivek Ramaswamy will lead the Ministry of Government Efficiency. Neither will be paid for the work, according to a Twitter post by Musk on Thursday.
Musk, of course, is the CEO of Tesla and SpaceX and the owner of Twitter (now X). Ramaswamy is an entrepreneur and one-time Republican presidential candidate who dropped out of the race during the primaries and endorsed Trump.
According to an official post from the department on Thursday, the program will tentatively consist of a group of "super-intelligent, small government revolution-supporting people" who are willing to work more than 80 hours a week to cut ignominious costs. Elon Musk tweeted this week that it is not yet clear how many employees will be hired to work on the project, but the work will be unpaid.
Neither Ramaswamy nor Musk immediately responded to Decrypt's request for comment.
What will DOGE actually do?
Trump said DOGE's role is to streamline the U.S. government by releasing reports that provide advice and guidance on cutting government regulation and spending.
“Your money is being wasted, and the Department of Government Effectiveness is going to fix that. We’re not going to have government bothering you and taking money out of your wallet anymore,” Musk said at a Trump rally at Madison Square Garden in New York City in October.
However, the quasi-sector's billionaire leaders have given different accounts of how far U.S. federal government spending should be cut.
Musk has suggested cutting federal spending by $2 trillion, or a third of the federal government's total budget. At the same time, Ramaswamy said he wants to cut federal government headcount by 75%, though the impact of such a cut on the budget is unclear.
Despite these differences, DOGE leaders appear to be on the same page about laying off a large number of federal government employees and several U.S. agencies, such as the Department of Education and the Federal Bureau of Investigation (FBI), in an effort to cut costs, based on recent public comments by Ramaswamy and Musk.
"The amount of government money wasted is beyond public imagination," Musk said on Twitter on Thursday, referring to U.S. federal government spending of more than $6 trillion in 2023.
Musk also said that DOGE will hold weekly live broadcasts to share its progress.
Why is it called DOGE?
The virtual unit’s acronym DOGE appears to be a playful reference to Dogecoin, Elon Musk’s beloved high-market-cap meme coin. The connection was further reinforced by a T-shirt sold by Trump’s official website featuring the president-elect, Musk and a Shiba Inu.
The meme, known for its Shiba Inu mascot, was created by a pair of software engineers in 2013. Musk has said he owns "a bunch" of Dogecoins, and he has frequently tweeted about the coin over the past few years. In 2021, he even called himself the "Father of Dogecoin" and mentioned the coin while hosting (Saturday Night Live).
The value of Dogecoin climbed during Musk's support for Trump's campaign, and then soared after Trump won and officially announced DOGE's leadership. Dogecoin hit its highest price in three years last week, driving the value of other well-known meme coins to soar