In a move to cut the cost of governance, President-elect Donald Trump has tapped billionaire Elon Musk and American entrepreneur Vivek Ramaswamy to lead the Department of Government Efficiency.

Mr Trump announced the appointment of the duo, which he said would champion his government’s move to “dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies,” in a statement on Monday.

“I am pleased to announce that the Great Elon Musk, working in conjunction with American Patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (“DOGE”),” Mr Trump said.

“All actions of the Department of Government Efficiency will be posted online for maximum transparency,” Mr Musk wrote on X. “Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know!”

The department, which Mr Trump has dubbed ‘the Manhattan Project’, will work to overhaul the federal bureaucracy to make dramatic cuts and improve efficiency by July 4, 2026, the 250th anniversary of the Declaration of Independence.

In a statement, Mr Trump emphasised that a leaner, more efficient government would be the ideal gift to the American people on the nation’s milestone anniversary.

“A smaller government, with more efficiency and less bureaucracy, will be the perfect gift to America,” Mr Trump declared.

Mr Musk, one of Mr Trump’s largest campaign backers, has previously discussed his plans to slash $2 trillion from the federal budget, although specifics on how that will be achieved remain unclear.

Mr Musk promised that the changes would “send shockwaves through the system” and target government waste. 

However, concerns have been raised about potential conflicts of interest, given that SpaceX has secured over $10 billion in federal contracts over the past decade, and Mr Musk’s companies are under investigation by federal agencies.

Mr Ramaswamy, a 39-year-old entrepreneur and former Republican presidential contender, has become one of Mr Trump’s most ardent supporters. 

After dropping out of the race, Mr Ramaswamy threw his weight behind Mr Trump, becoming a prominent surrogate and advocating for drastic cuts.

He proposed eliminating agencies like the Education Department, the FBI, and the IRS by executive order and has called for a 75 per cent reduction in the federal workforce.

The initiative aligns with Mr Trump’s long-standing promises to reduce government size and bureaucracy, a theme that was central to his first campaign. However, critics point out that despite his rhetoric, Mr Trump did little to cut government during his first term. 

With Messrs Musk and Ramaswamy at the helm, Mr Trump is pledging to deliver on these promises and rid the government of “massive waste and fraud” across the federal spending budget, totalling $6.5 trillion annually.