Entrepreneurs Elon Musk and Vivek Ramaswamy are seeking major cuts to federal spending with their outside advisory council, the Department of Government Efficiency (DOGE). However, lawmakers say achieving a $2 trillion reduction is unlikely without significant changes to Social Security benefits, Medicare, and Medicaid.
Musk and Ramaswamy met with hundreds of Republican lawmakers on Capitol Hill, receiving warm welcomes from Republicans who support their agenda of reducing federal spending, loosening regulations, and promoting a private sector approach to the public sector. The duo’s message resonated with conservatives, but lawmakers acknowledged that Musk’s goal is already deemed unachievable due to math.
The federal government spent $6.1 trillion in fiscal 2023, with $3.8 trillion earmarked for mandatory spending programs like Social Security benefits and Medicare coverage. Any attempt to cut this amount would require significant reductions in discretionary funding, which includes national defense and daily government operations. Republicans close to the government funding process estimate that Musk’s goal of slashing federal spending by $2 trillion is unrealistic without touching social safety net programs.
Despite this, some Republicans are open to exploring limited reforms to these programs. House Majority Leader Steve Scalise expressed interest in proposing work requirements for Medicaid recipients and stricter verification for Social Security benefits. However, plans will be put on hold until President-elect Donald Trump takes office and Senate Republicans gain control of their chamber.
Another idea gaining traction among Republicans is requiring federal employees to return to the office full-time, which could lead to significant cost savings. Sen. John Cornyn emphasized this approach, stating that “requiring people to show up for work” can help reduce costs. However, unions representing hundreds of thousands of federal workers nationwide are likely to fight any effort to change their working conditions.
The DOGE team will face challenges in navigating these battles as they push forward with their agenda.
Source: https://www.cnbc.com/2024/12/06/doges-musk-ramaswamy-try-to-sell-congress-on-huge-spending-cuts.html