Donald Trump and Elon Musk’s cost-cutting plan is slashing tens of billions from federal spending, cutting thousands of government jobs and eliminating entire agencies.
But Musk’s growing influence — and potential conflicts of interest — are raising alarm bells among legal and ethics experts.
Musk, Trump’s biggest campaign donor and the wealthiest person in the world, now heads the new “Department of Government Efficiency” — known as Doge.
This radical, fast-moving program allows Musk to lead sweeping government cuts, even though his companies rely heavily on federal contracts.
Musk Balances Power and Private Profits
Musk’s role is unique — and controversial.
- He keeps full control over SpaceX, Tesla, and other businesses.
- Many of those companies hold contracts worth billions with the federal government.
- At the same time, he’s driving the cuts that directly affect government oversight of those contracts.
Critics argue this gives Musk enormous power with almost no checks or balances.
Watchdog Agencies in Musk’s Crosshairs
Some of the first agencies targeted for deep cuts have histories of investigating Musk’s businesses.
The Consumer Financial Protection Bureau (CFPB), which has previously looked into Tesla’s debt collection and loan policies, is one of Doge’s primary targets. Ethics experts say this looks suspicious, given Musk’s direct financial stake.
Campaign Cash and Government Influence
Musk first pitched the Doge program to Trump in August, around the same time he wrote seven-figure checks to support Trump’s re-election.
This close financial and political connection is raising questions about whether Musk’s government role is a reward for his donations.
- Musk gave millions to Trump’s campaign.
- Within months, Trump appointed Musk to lead Doge.
- Doge immediately began slashing budgets for agencies that have investigated Musk’s companies.
Critics Warn of ‘Unchecked Power’
Legal and ethics experts are openly warning that Musk’s dual role — as both a government cost-cutter and the head of companies with federal contracts — creates a serious conflict of interest.
- There’s no independent oversight on Doge’s actions.
- Musk’s cuts could directly benefit his businesses by weakening regulatory oversight.
- Watchdogs say this level of unchecked influence is unprecedented.
Kedric Payne, the senior director of ethics at the nonpartisan Campaign legal Center, said:
“The Office of Government Ethics is needed to enforce compliance, but Trump abruptly fired the office’s director.
“The OGE needs a director committed to the agency’s mission to help restore public confidence that Doge is not involved in corrupt activities to benefit Musk.”
“Ethics compliance for government employees like Musk usually requires ethics lawyers providing advice and pre-approval of any actions taken that involve the employee’s financial interests,” Payne added. “It is a red flag that the White House has not said that any ethics professionals are involved in reviewing Musk’s actions.
“More transparency and accountability are needed. Voters have a right to know that government employees are serving the public interest and not their own personal interest.”
Musk’s Companies and Federal Contracts
Musk’s businesses are deeply tied to government funding:
- SpaceX: Billions in NASA and Department of Defense contracts.
- Tesla: Benefited from federal electric vehicle subsidies and loan programs.
- Starlink: Secured deals to provide broadband to rural areas under federal programs.
By controlling Doge, Musk holds influence over the very agencies responsible for overseeing these contracts.
Hiring? Post jobs for free with WhatJobs
Trump and Musk’s Shared Vision
Trump has long pushed for shrinking the federal government, calling agencies like the CFPB unnecessary. Musk’s own clashes with regulators, including the Securities and Exchange Commission and the National Labor Relations Board, made him a natural fit for Trump’s cost-cutting team.
Doge is moving aggressively, announcing plans to:
- Eliminate entire departments focused on consumer protection.
- Slash regulatory agencies overseeing environmental, financial, and workplace safety laws.
- Cut thousands of jobs, with a focus on roles related to oversight and enforcement.
What Happens Next?
As Doge’s cost-cutting accelerates, legal challenges are almost certain.
Ethics experts warn that Musk’s unprecedented power — balancing private business interests with control over government spending — could lead to lawsuits and congressional investigations.
The question now is whether any checks will be placed on Musk’s authority before major regulatory agencies are dismantled.
