Background

DOGE’s Authority

How will DOGE function? It is important to note that DOGE is not an official government department, so it will not have the authority to enforce federal laws, terminate employees, and revoke regulations. Instead, DOGE will act as an advisory body to Congress and the Trump administration, identifying issues and recommending ways to reform the “slash excess regulations, cut wasteful expenditures, and restructure federal agencies” (Pillsbury Law).
 

Specifically, DOGE plans to work closely with the Office of Management and Budget and the

House Oversight and Accountability Committee currently under Republican control (Pillsbury Law).

DOGE’s Plans

DOGE will initiate three major kinds of reform: regulatory rescissions, administrative reductions, and cost savings. They are expected to do this by:

• Cutting federal regulations that are considered invalid to “slash and burn bureaucracy” according to Ramaswamy (The Hill).
• Shrinking the federal workforce, leading to “mass head-count reductions across the federal bureaucracy.” Federal workers will be “transitioned into the private sector,” being offered “incentives for early retirement and voluntary severance payments to facilitate graceful exits.” Workers will be expected to come to the office five days a week, resulting in a “wave of voluntary terminations” (Wall Street Journal).
• ⅔ of the government’s $6.7 trillion budget is mandatory spending, of which Social Security and Medicare are part. The rest is discretionary spending, in which a large part is spent on defense. Musk and Ramaswamy will therefore target “$500 billion-plus in annual federal expenditures that are unauthorized by Congress or being used in ways that Congress never intended” (The Hill).

In an op-ed, Musk and Ramaswamy pinpointed The Corporation for Public Broadcasting, international organizations, Planned Parenthood, and “progressive groups” as places they would like to cut. Additionally, DOGE may dismantle big institutions like the IRS, USDA, FBI, DOE, and ATF.
“Voters did not vote for incremental change, they voted for sweeping change,” Ramaswamy says (Wall Street Journal).

Help Wanted

DOGE is looking for a small number of “super high-IQ small-government revolutionaries willing to work 80+ hours per week on unglamorous cost-cutting.” Those interested can submit their CV or resume to DOGE’s official account on X. The following are people across engineering, HR, IT, and finance industries who are reportedly interested in getting involved:

• William McGinley, a Republican lawyer who served on the committee of the Republican National Committee
• Brad Smith, CEO of healthcare firm Russell Street Ventures who served as a health official during Trump’s first term
• Marc Andreessen, co-founder of the venture capital firm Andreessen Horowitz (Business Insider).

Impact on Small to Mid-Sized Business Owners

DOGE will likely have significant implications for SMEs with contracts with the federal government. The Cato Institute, a libertarian public policy research organization based in Washington D.C., submitted recommendations to DOGE on areas to cut government. Among them was the recommendation to eliminate the Small Business Administration and contracts set aside for minorities. These changes could potentially threaten existing contracts between SME owners and the government while making the procurement process for new entrepreneurs more difficult than it already is (Cato Institute; Angell). Additionally, Musk could run DOGE with volatility, making it advisable for SMEs to perhaps start exploring alternative contracting options in the private sector as well (Angell).

However, DOGE could present SMEs with fruitful opportunities as well. SMEs could thrive in a scenario where the government outsources the work of these eliminated agencies to the private sector. During Reagan’s administration, work usually done by the government, such as maintaining parks and developing weaponry, was handed over to the private sector, intending for SMEs to compete for contracts and ultimately lower costs for consumers (Angell).

Particularly, SMEs in AI should expect a critical role for them moving forward. Matt Zeiler, CEO and Founder of tech company Clarifai, notes, “If they reduce the federal workforce significantly, I think that’s going to increase the need for AI because there are still a lot of things that need to be done in the Government, that could be a big opportunity for us” (Angell).

Concerns With DOGE

Doubts have emerged about how Musk and his team exactly plan to make such a drastic change to the federal budget without cutting key government programs that many Americans rely on: Social Security and Medicare, which comprise 35% of the federal budget (Center for American Progress). “Two trillion dollars per year is such an absurdly large number, it’s impossible,” Senior Director of Federal Budget Policy at the left-leaning Center for American Progress Bobby Kogan said. “You could only propose $2 trillion a year if you are not interested in living within reality or if you are completely callous to the major harmful effects that doing that would entail.”
Even if DOGE decides to limit these entitlement programs, they will likely receive fierce pushback from the courts. Currently, DOGE is facing legal challenges, namely, their dismantling of USAID (United States Agency for International Development). “USAID was established by an act of Congress, and it can only be disbanded by an act of Congress,” says Virginia Congressman Don Beyer (Connolly). Additionally, many Americans are questioning if Musk and his team are overstepping their power by accessing the Treasury’s payment systems. They are unelected officials now with access to millions of Americans’ bank accounts, tax data, Social Security numbers, home addresses, and critics say that Congress is being differential to the power grab of what is meant to be an advisory board to the American Government, not an executor (Center for American Progress).

Conclusion

Whether you argue the creation of DOGE marks a positive step in eradicating government inefficiencies or a blatant overreach of executive power, such a program marks an unprecedented step of an administration taking sweeping measures to fundamentally alter the nature of the administrative state. According to the Pew Research Center, 57% of Americans today say that reducing budget deficits should be a top priority, compared to 45% in 2022 (Pew Research Center). The need for the Government to balance its books is growing on the radar of Americans who fear the massive repercussions of a national debt default. While the effectiveness and legality of DOGE in achieving fiscal responsibility remains to be seen, an attempt is finally being made to address what has been a long-forgotten national issue.

Written by Veer Agarwal
Veer Agarwal studies at Livingston High School in the United States.

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Sources/Citations

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https://clintonwhitehouse5.archives.gov/WH/Accomplishments/eightyears-03.html.

2. Pillsbury Law Firm. “Department of Government Efficiency (DOGE).” Pillsbury Law, https://www.pillsburylaw.com/en/news-and-insights/department-government-efficiency-d oge.html.

3. Ramaswamy, Vivek. “Ramaswamy Says DOGE Will Slash and Burn Bureaucracy.” The Hill,
https://thehill.com/homenews/administration/4990434-ramaswamy-says-doge-will-slash- burn-bureaucracy/.

4. Musk, Elon, and Vivek Ramaswamy. “Musk and Ramaswamy: The DOGE Plan to Reform Government, Supreme Court Guidance, End Executive Power Grab.” The Wall Street Journal,
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5. Lewis, Ray. “Ramaswamy Pledges to ‘Slash and Burn’ Bureaucracy in New Trump Admin Role.” KEYE, The National News Desk, 14 Nov. 2024, https://cbsaustin.com/news/nation-world/ramaswamy-pledges-to-slash-and-burn-bureaucr acy-in-new-trump-admin-role-donald-election-white-house-vivek-elon-musk-doge-depart ment-of-government-efficiency.

6. CBS News. “Musk, Ramaswamy to Cut $500 Billion in Government Spending.” CBS News,
https://www.cbsnews.com/news/musk-ramaswamy-doge-500-billion-spending-where-the y-will-cut/.

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10. Angell, Melissa. “Could DOGE Be a Good Thing for Small Business Contractors?” Inc., https://www.inc.com/melissa-angell/could-doge-be-a-good-thing-for-small-business-cont ractors/91064958.

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13. Connolly, Gerald E. “USAID and its Role in Government Efficiency.” Congressman Gerry Connolly,
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