Tech billionaire Elon Musk, who has been tapped by President Donald Trump to lead federal cost-cutting efforts, said Tuesday that the United States would go “bankrupt” without budget cuts.

Musk leads the efforts under the newly created Department of Government Efficiency (DOGE), and was speaking at the White House with Trump, who has in recent weeks unleashed a flurry of orders aimed at slashing federal spending.

 

In particular, Musk took aim at the country’s budget deficit, which topped $1.8 trillion in the last fiscal year.

 

He said that reducing federal expenses was not optional.

 

The remarks, however, came as the Trump administration finds itself on a collision course with the US courts, as federal judges questioned the legality of White House cost-cutting measures.

 

Trump’s sweeping plans, which have effectively shuttered some federal agencies and sent staff home, have sparked legal battles across the country.
Multiple lawsuits seek to halt what opponents characterize as an illegal power grab.

 

Asked about his conflicts of interest on Tuesday, Musk, who also heads SpaceX — which has multiple US government contracts — and Tesla, said he is seeking to be as transparent as possible.

 

The DOGE reform team has triggered alarm among critics as well by gaining access through the US Treasury to the personal and financial data of millions in the United States.

 

Cutting on USAid

 

Earlier this month, Elon Musk called for the closure of the United States Agency for International Development (USAID) as two senior security officials were reportedly placed on leave for blocking his team’s access to classified materials.

 

Musk, the billionaire owner of Tesla and SpaceX who has become the president's most powerful backer, called USAID a "criminal organisation" after reports that his team was blocked from accessing restricted areas at the agency’s Washington, DC headquarters.

 

"Time for it to die," Musk posted on his social media platform X.

President Trump claimed the agency was "run by radical lunatics" and said he was considering its future.

The assault on the agency tasked with humanitarian relief overseas marks a significant new front in Trump's move to give unprecedented power to Musk to upend government departments and counter what the pair consider wasteful official spending and overreach.

"USAID is a criminal organization," Musk wrote on his X platform, replying to a video alleging USAID involvement in "rogue CIA work."

 

In a subsequent post, Musk doubled down and, without giving evidence, asked his 215 million X followers, "Did you know that USAID, using YOUR tax dollars, funded bioweapon research, including Covid-19, that killed millions of people?"

He did not elaborate on the allegations, which officials in the previous administration linked to a Russian disinformation campaign.

USAID has "been run by a bunch of radical lunatics, and we're getting them out... and then we'll make a decision (on its future)," Trump said without elaborating.