The Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, is set to help President-elect Trump’s administration cut wasteful federal spending. Their focus may include streamlining financial regulatory agencies.
On Thursday, DOGE announced it is seeking workers to join the cost-cutting mission. Musk described it as a “revolution” to eliminate waste and fraud. Applications are being accepted through direct messages on X, which recently enabled all users to send DMs without needing a premium subscription.
Part of the effort could involve examining regulatory agencies with overlapping responsibilities. Gary Cohn, former director of the National Economic Council, highlighted this on FOX Business. “We have a lot of costs in regulatory agencies that potentially overlap,” Cohn said, pointing to the Consumer Financial Protection Bureau (CFPB) and the Securities and Exchange Commission (SEC).
“Do we need both agencies?” Cohn questioned. “I’m not saying we don’t, but we need to evaluate. These agencies are expensive, and we must consider what they cost taxpayers and how effectively they’re run.”
The CFPB’s budget stands at about $800 million, funded by the Federal Reserve. The SEC operates with a $2.4 billion budget, offset by transaction fees to remain deficit-neutral.
Cohn emphasized modernizing government technology to increase efficiency and save costs. “Investing in technology will make organizations more efficient,” he said. “There’s little AI or high-end computing in government today.”
He added, “Modern technology will reduce administrative costs, which are a significant burden on the U.S. government.”
Liz Claman of FOX Business noted the Trump administration’s plans to redirect savings from cuts, like ending electric vehicle subsidies, to fund tax reforms. This includes extending lower tax rates and broader deductions from the Tax Cuts and Jobs Act.
Cohn acknowledged potential reforms like eliminating taxes on tips, overtime, and Social Security benefits for high earners. “All these items will be reviewed in terms of their revenue impact,” he said. “There are always trade-offs in these discussions.”