Billionaire Elon Musk has formally resigned as the head of the Department of Government Efficiency (DOGE), a unique position formed during President Trump's presidency aimed at radically reducing federal spending. Even though Musk is ending his 130-day stint, he will still be close to the president, Trump announced on Friday in a joint press conference at the White House.

Trump Hails Musk: "He's Not Leaving"

Standing beside Musk in the Oval Office, President Trump praised the Tesla and SpaceX CEO for his efforts in spearheading one of the most radical cost-cutting crusades in recent US history. Musk, sporting a black DOGE cap and a T-shirt labeled "The Dogefather," received Trump's praise and a symbolic golden key, a gesture Trump explained is reserved for "very special people." "Elon is not leaving. He's going to be back and forth," Trump said from behind the Resolute Desk. "He had to endure the slings and arrows, which is a shame because he's an incredible patriot."

Initially tasked with trimming 2 trillion USD from government spending, DOGE under Musk has supposedly recorded 175 billion USD in asserted savings. Yet Treasury overviews and available public records show actual cuts nearer to 19 billion USD, amounting to just 0.5 per cent of total federal spending. The campaign did lead to a large reduction in the federal workforce. Approximately 260,000 jobs, or 12 per cent of civilian federal employees, were eliminated by layoffs, buyouts, and early retirements. Musk accepted the deficit and said, “Downsizing the government turned out to be harder than I expected. It’s the banal evil of bureaucracy,” he said. “But this is not the end of DOGE, it’s the beginning.”

Although dropping DOGE, Musk affirmed he will still counsel President Trump informally.“I expect to remain a friend and an adviser, and certainly, if there’s anything the president wants me to do, I’m at the president’s service,” he said. In addition to saying he would direct more of his energy
toward his businesses. The billionaire, who gave close to 300 million USD in donations to Republican candidates in 2024, now announces he will reduce political donations.

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Political Pressure and Backlash

Although Musk initially had unprecedented sway in Trump's second term, his political clout has declined amid growing tensions within the White House and mounting criticism from investors and the public. Cabinet officials were said to become increasingly frustrated with his sudden directives and disruptive style of governance. Musk’s departure comes after public clashes with the administration over Trump’s sweeping tax and spending bill, which Musk criticized as “too expensive.” Senior aides, including Deputy Chief of Staff Stephen Miller, viewed the remarks as a betrayal, sources told Reuters.

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Musk's foray into Washington politics has not only extracted a cost on his business empire. Tesla has experienced falling sales and increasing protests at showrooms in the US and Europe. SpaceX and Starlink, although set to benefit from government connections, have come under scrutiny for Musk's ties to Trump. Investors complained that Musk's political activism was becoming a burden.