Musk’s new government department in turmoil as partner mulls quitting

Elon Musk’s new government department has been thrown into turmoil amid reports his partner is considering quitting.

Vivek Ramaswamy could ditch plans to work with the department of government efficiency (Doge) in order to focus on his bid to become Ohio governor, a source close to the matter told Politico.

Mr Ramaswamy told members of the transition team about his plans to run for governor following the election, according to the outlet, and he is said to be planning to formally announce his candidacy by the end of January 2024.

The move could upend Doge, which plans to cut government spending by up to $2 trillion by July 4, 2026, as Mr Ramaswamy’s time would probably be occupied with his gubernatorial race.

Some in Donald Trump’s orbit have suggested Mr Ramswamy’s exit could provide a clear path for Mr Musk to carry out his own work uninterrupted.

Elon basically runs the show,” an informal adviser to the president-elect told Politico. “Time is their biggest enemy. We’ll see.”

Mr Ramaswamy’s decision was allegedly brought forward this week after Mike DeWine, the Ohio governor, passed over him to replace JD Vance in the Senate, instead opting for lieutenant governor Jon Husted.

Elon Musk and Vivek Ramaswamy, right, at the US Capitol to discuss budget cuts in December 2024 – Roberto Schmidt/AFP via Getty Images

The billionaire entrepreneur-turned-politician is said to have attended a Doge meeting on Sunday at the SpaceX headquarters in Washington, for which Mr Musk was not present.

It is now reportedly an open question of whether the former Republican presidential candidate will move into Doge’s new office space next door to the White House after Mr Trump is sworn into office on Monday.

Mr Trump announced the launch of Doge during the election campaign, with its stated mission to “dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures and restructure federal agencies”.

Mr Musk will look at the big picture while Mr Ramaswamy focuses on deregulation and the rest of its employees work on implementation, a source told Politico.

Little known about funding

Doge has already developed something of a shadowy reputation, with little known about how the non-governmental organisation will be funded or how its billionaire bosses will avoid conflicts of interest.

According to The Washington Post the department has stepped up hiring in recent weeks, with close to 100 staff set to be in place by Monday.

Among them are Steve Davis, the Boring Company president, who wielded the hatchet at X after Musk bought it, and Emil Michael, a former Uber executive.

According to Politico, Mr Trump is expected to introduce multiple executive orders related to the department’s role in the first few weeks after returning to office, including one that deals with government contracts.

Mr Musk has dialled back his expectations, admitting the department may fall short of its $2 trillion spending cut goal.

“I think we’ll try for $2 trillion. I think that’s like the best-case outcome,” he told the Consumer Electronics Show: “But I do think that you kind of have to have some overage. I think if we try for $2 trillion, we’ve got a good shot at getting $1 [trillion].”

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.

Leave a Reply

Your email address will not be published. Required fields are marked *