Musk and former Republican presidential candidate Vivek Ramaswamy will co-lead the new Department of Government Effectiveness, an entity that Trump says will operate outside the confines of government.

Trump said in a statement that Musk and Ramaswamy “will lead the way for my administration to dismantle government bureaucracy, cut excessive regulations, cut wasteful spending, and restructure federal agencies.”

Trump said the new department would fulfill long-held Republican dreams and “provide advice and guidance outside of government,” signaling that Musk and Ramaswamy’s roles would be informal, without requiring Senate approval and allowing Musk to remain at the head of electric car manufacturer Tesla. , social media platform X and rocket company SpaceX.

The new department would work with the White House and the Office of Management and Budget to “drive large-scale structural reform and create an entrepreneurial approach” to government never before seen, Trump said.

Work would end on July 4, 2026, the 250th anniversary of the signing of the Declaration of Independence.

Musk, ranked by Forbes as the world’s richest person, had already benefited from Trump’s victory, with the billionaire entrepreneur expected to wield extraordinary influence to help his businesses and gain favorable treatment from the government.

Having many ties to Washington, Musk has donated millions of dollars to support Trump’s presidential campaign and made public appearances with him.

Adding a government wallet to Musk’s plate could benefit the market value of his companies and foster businesses such as artificial intelligence and cryptocurrency.

“It is clear that Musk will play a major role in the Trump White House with his growing influence across many federal agencies,” equity analyst Daniel Ives of Wedbush Securities said in a research note.

“We believe the primary benefits for Musk and Tesla far outweigh any downsides, as this continues to be a ‘gamble for eternity’ from Musk betting on Trump,” Ives said.

The move was criticized by Public Citizen, a progressive consumer rights NGO that challenged several of Trump’s first term policies.

“Not only does Musk know nothing about government efficiency and regulation, but his own companies have routinely broken the very rules he will be able to attack in his new position as ‘czar,'” Lisa said Gilbert, co-president of Public Citizen. in a statement. “This is the ultimate corporate corruption.”

Trump likened the efficiency drive to the Manhattan Project, the U.S. pledge to build the atomic bomb that helped end World War II, while Musk promised transparency.

“All actions of the Department of Government Effectiveness will be published online for maximum transparency,” Musk said on X, inviting public advice.

“We’ll also have a ranking of the stupidest tax dollars you spend. It will be both extremely tragic and extremely entertaining,” Musk said.

Musk told a Trump rally at Madison Square Garden in October that the federal budget could be cut by “at least” $2 trillion. Discretionary spending, including defense spending, is estimated at $1.9 trillion of the $6.75 trillion in total federal spending for fiscal year 2024, according to the Congressional Budget Office.

“Your money is being wasted and the Department of Government Efficiency is going to fix this problem. We are going to get the government off your back and out of your wallet,” Musk said at the rally.

The new department’s acronym – DOGE – also refers to the name of the dogecoin cryptocurrency that Musk promotes.

In August, Musk and Tesla won the dismissal of a federal lawsuit accusing them of defrauding investors by promoting dogecoin and engaging in insider trading, causing billions of dollars in losses.

Dogecoin has more than doubled since Election Day, tracking a surge in cryptocurrency markets due to expectations of easing regulations under the Trump administration.

Tesla shares fell on Wall Street ahead of the announcement, but are up about 30% since the election.

Ramaswamy is the founder of a pharmaceutical company that ran for the Republican nomination against Trump, then threw his support behind the former president after he dropped out.

In his 2021 bestseller “Woke, Inc.”, Ramaswamy denounced the decisions of some large companies to base their business strategy on concerns for social justice and climate change.

Ramaswamy said the nomination means he is withdrawing from consideration of the pending U.S. Senate nomination in Ohio, where Gov. Mike DeWine will name a replacement for JD Vance, who will become Trump’s vice president in his inauguration on January 20.