Elon Musk has warned that the United States will go “bankrupt” without drastic budget cuts, as he leads the charge to slash federal spending under President Donald Trump‘s administration.
Speaking at the White House on Tuesday alongside Trump, the tech billionaire emphasised that reducing government expenses is not just an option but a necessity.
“It’s not optional,” Musk told reporters. “It’s essential.”
Musk, who has been tasked with overseeing cost-cutting efforts through the newly established Department of Government Efficiency (DOGE), criticised federal bureaucracy, calling it an “unelected, unconstitutional branch of government” that holds more power than elected representatives. His remarks came as Trump signed an executive order requiring federal agencies to comply with DOGE’s directives.
The initiative aims to reduce the size of the federal workforce, a move Musk has strongly advocated. Under the new order, federal agencies will only be allowed to hire one employee for every four that leave. Agency heads must also consult with DOGE before filling vacancies.
Musk pointed to the country’s budget deficit, which reached $1.8 trillion last year, and warned about rising interest payments on national debt. Trump echoed Musk’s concerns, saying they were “going to weed out the corruption.”
The billionaire, who also heads Tesla and SpaceX, dismissed concerns over potential conflicts of interest, stating that his role in government is focused on transparency and efficiency. However, critics argue that Musk’s companies, which have secured billions in government contracts, raise ethical concerns about his involvement in cost-cutting decisions.
Musk’s presence at the White House sparked online buzz, not just for his remarks but also for his outfit. He wore a black cap reading “Make America Great Again” and a fully black ensemble, reminiscent of what he wore at a Pennsylvania Republican rally last year before Trump’s election.
The cost-cutting measures, however, have ignited legal battles. Multiple lawsuits have been filed against the administration’s sweeping budget reductions, with opponents calling them an illegal power grab. Federal judges have questioned the legality of Trump’s orders, leading the president to criticise the judiciary, claiming that some judges were trying to block his efforts to “root out corruption”.
Meanwhile, Musk’s four-year-old son, X Æ A-Xii, made a surprise appearance at the White House. The child playfully roamed the Oval Office, climbed onto Musk’s shoulders, and mimicked his father, drawing laughs from reporters. Trump acknowledged the boy, calling him “a great guy” and a “high IQ individual.”
