X owner Elon Musk is expected to lead the new US government initiative intended to cut unnecessary expenses. Known as the Department of Government Efficiency (D.O.G.E), the initiative will also “get rid of excess regulations and restructure various federal agencies,” according to the incoming President Donald Trump.
Here is everything you need to know about D.O.G.E.
What’s D.O.G.E?
D.O.G.E was first teased by Elon Musk in August. The initiative, whose acronym matches the ticker of Musk’s favorite crypto asset, Dogecoin, is part of Trump’s “Save America” movement. Musk will be assisted by billionaire businessman Vivek Ramaswamy to run D.O.G.E. The president-elect expects the pair to deliver results by July 4th, 2026, when US citizens will be celebrating Independence Day.
It’s noteworthy that D.O.G.E isn’t an official government department, considering the president doesn’t have the power to create new federal agencies. For the initiative to be officially recognized, it must be approved by Congress.
That said, D.O.G.E will operate ‘outside’ of the US government system, per Trump’s recent statement. This means it will not be allocated government funds. Furthermore, D.O.G.E’s ability to control federal agencies will be minimal. However, Musk and Ramaswamy’s directives could be adopted by Trump upon Congress’s approval.
D.O.G.E Executives and Employees
As mentioned, two billionaires will run D.O.G.E: Ramaswamy and Musk. The former says none of them will be compensated for their contributions. Despite zero incentives, the two appear excited about their new roles, promising Trump to deliver expected results within the specified timeframe.
Regarding employees, Musk says D.O.G.E’s workforce will be made up of “high-IQ government revolutionaries who can work 80 or more hours per week without compensation.” He has yet to reveal the number of workers to be hired.
What Will D.O.G.E Do?
According to Donald Trump, D.O.G.E’s primary purpose is to streamline the American government by providing guidance on how to trim unnecessary spending and regulations.
While campaigning for Trump at Madison Square Garden in New York two months ago, Elon Musk said he had noted increased wastage of funds by the current administration led by Joe Biden and that D.O.G.E was going to fix that.
Although Ramaswamy and Musk agree that reducing the government budget is necessary, they differ over the extent to which the budget should be cut. Last week, Musk said D.O.G.E would reduce the federal budget by $2 trillion or about a third of the total government funds. Ramaswamy, on the other hand, wants the budget to be slashed by nearly 50%. He says this will be achieved by reducing the federal workforce and eliminating certain agencies, including the Federal Bureau of Investigation (FBI) and the Department of Education.
Meanwhile, Elon Musk has promised to organize weekly live streams to give updates on D.O.G.E’s progress toward trimming the $6 trillion government budget.
Why is it Known as D.O.G.E?
As mentioned, the acronym for the Department of Government Efficiency resembles the ticker for Dogecoin, a popular meme coin that Elon Musk has supported on X over the years. Therefore, crypto enthusiasts believe the initiative’s name is inspired by the dog-themed token, which has rallied whenever Musk tweets about D.O.G.E.
Elon Musk and His Relationship With Dogecoin
Elon Musk started to tweet about Dogecoin in 2021. His tweets have triggered massive price rallies, prompting some investors to level accusations of market manipulation against him. In 2022, a group of DOGE investors accused the billionaire of manipulating the market and causing them losses worth millions. They filed a lawsuit to demand $258 billion in compensation, but the charges were dropped last week.
Launched in 2013, Dogecoin is the largest meme coin by market capitalization ($57.07 billion), data from CoinGecko shows. The token has enjoyed an exceptional performance this month following Trump’s win against Kamala Harris. Last week, it retested a three-year high, causing many analysts to be optimistic that the $0.73 peak price will be crossed soon.
