Elon Musk leaves Trump administration after turbulent effort to slash government
Billionaire Tesla CEO Elon Musk is leaving the Trump administration after leading a tumultuous efficiency drive, during which he upended several federal agencies but ultimately failed to deliver the generational savings he had sought.
His "off-boarding will begin tonight," a White House official told Reuters late on Wednesday, confirming Musk's departure from government.
Musk earlier on Wednesday took to his social media platform X to thank President Donald Trump as his time as a special government employee with the Department of Government Efficiency draws to an end.
"As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Donald Trump for the opportunity to reduce wasteful spending," he wrote on his social media platform X. "The DOGE mission will only strengthen over time as it becomes a way of life throughout the government," he added.
Elon Musk gestures as President Donald Trump addresses a joint session of Congress at the Capitol in Washington. File / AP
His departure was quick and unceremonious. He did not have a formal conversation with Trump before announcing his exit, according to a source with knowledge of the matter, who added that his departure was decided "at a senior staff level."
While the precise circumstances of his exit were not immediately clear, he leaves a day after criticising Trump's marquee tax bill, calling it too expensive and a measure that would undermine his work with the US DOGE Service.
Some senior White House officials, including Deputy Chief of Staff Stephen Miller, were particularly irked by those comments, and the White House was forced to call Republican senators to reiterate Trump's support for the package, a source familiar with the matter said.
While Musk remains close to the president, his exit comes after a gradual, but steady slide in standing.
Elon Musk stands and is recognised and applauded as President Donald Trump addresses a joint session of Congress. File/ AP
After Trump's inauguration, the billionaire quickly emerged as a powerful force in Trump's orbit: hyper-visible, unapologetically brash and unfettered by traditional norms. At the Conservative Political Action Conference in February, he brandished a red metallic chainsaw to wild cheers. "This is the chainsaw for bureaucracy," he declared.
On the campaign trail, Musk had said DOGE would be able to cut at least $2 trillion in federal spending. DOGE currently estimates its efforts have saved $175 billion so far, a number Reuters was not able to independently verify.
Musk did not hide his animus for the federal workforce, and he predicted that revoking "the COVID-era privilege" of telework would trigger "a wave of voluntary terminations that we welcome." But some cabinet members who initially embraced Musk's outsider energy grew wary of his tactics, sources said.
Elon Musk listens as President Donald Trump speaks during a cabinet meeting at the White House. AP/ File
Over time, they grew more confident pushing back against his job cuts, encouraged by Trump's reminder in early March that staffing decisions rested with department secretaries, not with Musk.
Musk clashed with three of Trump's most senior cabinet members - Secretary of State Marco Rubio, Transportation Secretary Sean Duffy and Treasury Secretary Scott Bessent.
He called Trump's trade adviser Peter Navarro a "moron" and "dumber than a sack of bricks." Navarro dismissed the insults, saying, "I've been called worse."
At the same time, Musk began to hint that his time in government would come to a close, while expressing frustration at times that he could not more aggressively cut spending.
Elon Musk jumps on stage as he joins Donald Trump during a campaign rally at site of his first assassination attempt in Butler, Pennsylvania. File / AFP
In an April 22 Tesla conference call, he signaled he would be significantly scaling back his government work to focus on his businesses.
"The federal bureaucracy situation is much worse than I realized," Musk told The Washington Post this week. "I thought there were problems, but it sure is an uphill battle trying to improve things in D.C., to say the least."
DOGE GOES ON
Musk's 130-day mandate as a special government employee in the Trump administration was set to expire around May 30. The administration has said DOGE's efforts to restructure and shrink the federal government will continue.
Several cabinet secretaries are already discussing with the White House how to proceed without further alienating
Congressional Republicans. But even as department heads will keep some DOGE infrastructure in place, they will likely move to reassert control over budgets and staffing, sources have told Reuters.
"The DOGE mission will only strengthen over time as it becomes a way of life throughout the government," Musk said.
Trump and DOGE have managed to cut nearly 12%, or 260,000, of the 2.3 million-strong federal civilian workforce largely through threats of firings, buyouts and early retirement offers, a Reuters review of agency departures found.
At the same time, DOGE has hit a number of roadblocks, with federal courts at times propping back up agencies shortly after DOGE had moved to eliminate them. In some cases, staff and funding cuts have led to purchasing bottlenecks, increased costs and a brain drain of scientific and technological talent.
The most recent source of friction came on Tuesday when Musk criticized the price tag of Republicans' tax and budget legislation making its way through Congress.
"I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing," Musk told CBS News.
One source said the billionaire's decision to trash Trump's bill on television deeply upset senior White House aides.
His political activities have drawn protests and some investors have called for him to leave his work as Trump's adviser and more closely manage Tesla, which has seen falls in sales and its stock price.
Associated Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
an hour ago
- Zawya
US trade deficit narrows sharply in April; imports post record drop
The U.S. trade deficit narrowed sharply in April, with imports decreasing by the most on record as the front-running of goods ahead of tariffs ebbed, which could provide a lift to economic growth this quarter. The trade gap contracted by a record 55.5% to $61.6 billion, the lowest level since September 2023, the Commerce Department's Bureau of Economic Analysis said on Thursday. Data for March was revised to show the trade deficit having widened to an all-time high of $138.3 billion rather than the previously reported $140.5 billion. Economists polled by Reuters forecast the deficit narrowing to $70.0 billion. The goods trade deficit eased by a record 46.2% to $87.4 billion, the lowest level since October 2023. A rush to beat import duties helped to widen the trade deficit in the first quarter, which accounted for a large part of the 0.2% annualized rate of decline in gross domestic product last quarter. The contraction in the deficit, at face value, suggests that trade could significantly add to GDP this quarter, but much would depend on the state of inventories. Imports decreased by a record 16.3% to $351.0 billion in April. Goods imports slumped by a record 19.9% to $277.9 billion. They were held down by a $33.0 billion decline in imports of consumer goods, mostly pharmaceutical preparations from Ireland. Imports of cellphones and other household goods fell $3.5 billion. Imports of industrial supplies and materials declined $23.3 billion, reflecting decreases in finished metal shapes and other precious metals. Motor vehicle, parts and engines imports fell $8.3 billion with passenger cars accounting for much of the decline. The front-loading of imports is probably not over. Higher duties for most countries have been postponed until July, while those for Chinese goods have been delayed until mid-August. President Donald Trump's administration had given U.S. trade partners until Wednesday to make their "best offers" to avoid other punishing import levies from taking effect in early July. Imports from Canada were the lowest since May 2021, while those from China were the lowest since March 2020. But imports from Vietnam and Taiwan were the highest on record. Exports rose 3.0% to $289.4 billion, an all-time high. Goods exports increased 3.4% to a record $190.5 billion. They were boosted by a $10.4 billion jump in industrial supplies and materials, mostly finished metal shapes, nonmonetary gold and crude oil. Capital goods exports advanced $1.0 billion, lifted by computers. But exports of motor vehicles, parts and engines fell $3.3 billion, held down by passenger cars as well as trucks, buses and special purpose vehicles. Exports of services increased $2.1 billion to $98.9 billion, lifted by travel, despite reports of decreased tourist visits because of the trade tensions and an immigration crackdown. The United States had record goods trade surpluses with Hong Kong, the United Kingdom and Switzerland. But it had record deficits with Vietnam, Taiwan and Thailand, while the gap with Canada was the smallest since April 2021. (Reporting by Lucia Mutikani; Editing by Andrea Ricci)
ARN News Center
an hour ago
- ARN News Center
Gamers line up for Nintendo Switch 2 on launch day
Gaming fans queued up for the launch of Nintendo's Switch 2 on Thursday amid pent-up demand for the more powerful next-generation gaming device. "The level of demand seems to be sky-high," said Serkan Toto, founder of the Kantan Games consultancy. In the Ikebukuro shopping district of Tokyo, dozens of successful applicants to a sales lottery by electronics retailer Bic Camera lined up before the store opened to collect their devices. "I feel like I'm going to cry," Yumi Ohi, a 30-year-old delivery contractor, told Reuters. Ohi had missed out in other lotteries and had come from Saitama prefecture, adjacent to Tokyo, to receive her Switch 2. Nintendo has sold 152 million Switch home-portable devices since launching in 2017. It became a games juggernaut with titles, including two The Legend of Zelda titles and COVID-19 pandemic breakout hit Animal Crossing: New Horizons. The Switch 2 bears many similarities with its predecessor but offers a larger screen and improved graphics and debuts with titles including Mario Kart World. "The much larger audience of Switch users should translate to stronger adoption in the opening part of its lifecycle," said Piers Harding-Rolls, an analyst at Ampere Analysis. "Nintendo is better prepared this time around" to deal with the high demand, he said. The launch of the $499.99 Switch 2 is a test of Nintendo's supply chain management during US President Donald Trump's trade war. Nintendo last month forecast sales of 15 million Switch 2 units during the current financial year, as well as 4.5 million Switch units. President Shuntaro Furukawa said Nintendo will strengthen production capacity to respond to strong demand and focus on sales promotion in an effort to exceed the forecast. "Given it's a special occasion, I wanted to buy (the Switch 2) right away on its release date," said Shinichi Sekiguchi, a hotel receptionist in his thirties. Nintendo said it received 2.2 million applications for its Switch 2 sales lottery on its My Nintendo Store in Japan. Pre-orders at Target sold out in less than two hours. "You are looking at weeks or months until you can walk into a store and buy a Switch 2," said Toto of Kantan Games. Investor expectations for the new device are similarly lofty. Nintendo's shares, which closed down 2 per cent in Tokyo, have gained 28 per cent this year. Concerns include whether momentum for the Switch 2 will be sustained after hardcore gamers have upgraded. "The volume of first-party games on offer at launch isn't as strong as it could be, so some more casual users may wait and see how the games available build over the next one to two years before making the leap," said Ampere's Harding-Rolls. Ampere forecasts Switch 2 sales to exceed 100 million units in 2030. Mario Kart World has a US sticker price of $79.99, generating debate over the price of games. Nintendo is also attracting third-party titles to the system. "I've been around since the era of the Super Nintendo Entertainment System and games from (that period) were expensive too so I think it's somewhat within the acceptable range," said Akitomo Takahashi, a salesman in his forties.
Arabian Post
an hour ago
- Arabian Post
Musk's ‘Debt Slavery' Warning Intensifies GOP Spending Bill Debate
Elon Musk has launched a scathing attack on President Donald Trump's proposed $4 trillion tax and spending bill, branding it the 'Debt Slavery Bill' and urging Americans to pressure lawmakers to reject it. The Tesla and SpaceX CEO's criticism comes as the U.S. national debt approaches $37 trillion, with the Congressional Budget Office projecting the bill would add approximately $2.4 trillion to the deficit over the next decade. Musk's denunciation marks a sharp reversal from his previous role as head of the Department of Government Efficiency under Trump. In a series of posts on his social media platform, X, Musk described the bill as a 'disgusting abomination' and warned that its passage would plunge the nation into 'debt slavery.' He called on his 220 million followers to contact their representatives, stating, 'Bankrupting America is NOT ok!' The legislation, officially titled the 'One Big Beautiful Bill Act,' was narrowly approved by the House on May 22 and is now under consideration in the Senate. It includes permanent tax cuts estimated to reduce federal revenues by $3.7 trillion, offset by $1.5 trillion in spending cuts and nearly $300 billion in additional defense and border security funding. The bill also proposes significant reductions to Medicaid and food assistance programs, introducing new work requirements for recipients. ADVERTISEMENT Critics argue that the bill's fiscal measures disproportionately benefit the wealthy while placing undue burdens on low-income Americans. Senator Rand Paul of Kentucky has voiced strong opposition, labeling the debt ceiling increase as 'the greatest in U.S. history' and asserting that the GOP now owns the resulting fiscal consequences. Similarly, Senator Josh Hawley of Missouri has expressed concerns over the proposed Medicaid cuts, calling them 'morally wrong and politically suicidal.' Supporters of the bill, including House Speaker Mike Johnson, contend that the tax cuts will stimulate economic growth sufficient to offset the deficit increases. They argue that the legislation is necessary to maintain America's competitive edge and bolster national security. However, the CBO's analysis contradicts these claims, indicating that the bill would significantly exacerbate the national debt without delivering the promised economic benefits. Musk's opposition is not solely based on fiscal concerns. The bill's elimination of electric vehicle tax credits could adversely affect Tesla's bottom line, potentially costing the company billions. Additionally, the withdrawal of Musk's ally Jared Isaacman as a nominee for NASA administrator has further strained relations between Musk and the Trump administration. The controversy surrounding the bill has intensified as the Senate deliberates its provisions. Several Republican senators have expressed reservations, and the bill's passage is far from certain. Musk's vocal opposition has galvanized public discourse, with many Americans taking to social media to echo his concerns and urge their representatives to reconsider their support.
