What happens to DOGE once Elon Musk leaves?

(The Hill) - Elon Musk’s plans to wind down his work at the Department of Government Efficiency (DOGE) are raising questions about the future of the cost-cutting push that has defined his brief but controversial tenure in the administration. 

Musk revealed Tuesday that he will dedicate less time to DOGE starting next month, as Tesla suffers from blowback to his work for Trump, which has spurred dozens of lawsuits, protests and even vandalism.

DOGE's general goal is shared broadly among White House officials, who have pushed for major cuts to the size of the federal workforce.

But with its unofficial leader taking a step back, DOGE sits in a precarious position, as it remains unclear whether the initiative has enough momentum to drive forward with Musk's ambitious goals on its own. 

“Musk is personally driving this,” said Matt Calkins, CEO of software firm Appian, adding, “I believe that he’s gathered people who have a similar attitude, but there’s nothing like having the captain on board the ship.” 

Musk is serving in the administration as a “special government employee,” which requires him to leave his role after 130 days. When asked last month whether he would depart at the end of this period, the tech billionaire signaled he planned to wrap up his work. 

“I think we will have accomplished most of the work required to reduce the deficit by a trillion dollars within that timeframe,” Musk told Fox News host Brett Baier, even though federal deficits have increased since Trump took office.

He more explicitly confirmed his plans to wind down his work at DOGE on Tesla’s quarterly earnings call Tuesday, although he suggested he would not entirely depart the administration. 

“Starting probably next month, May, my time allocation to DOGE will drop significantly,” Musk said. “I’ll have to continue doing it for, I think, the remainder of the president’s term just to make sure that the waste and fraud doesn’t come roaring back, which we’ll do, if it has the chance.” 

The Tesla CEO said he will likely spend one to two days of the week on “government matters” while dedicating “far more of my time to Tesla now that the major work of establishing” DOGE is “done.”  

The announcement came as a relief to the company’s investors, who have watched with growing concern as Musk’s work in the Trump administration has weighed significantly on the EV firm.  

“The clock struck midnight — he had to choose Tesla or DOGE,” Wedbush Securities analyst Dan Ives said. “The brand damage that it had seen globally, the only way it ends is if Musk takes a big step back from DOGE and the Trump White House.” 

“DOGE took on a life of its own that I think even Elon underestimated,” Ives added. 

Tesla’s quarterly earnings dropped by 71 percent, falling from $1.4 billion to $409 million, in the latest sign of the company’s difficulties. The EV firm’s stock has plunged nearly 50 percent since December. 

The company, whose brand is closely tied to Musk, has become a target of frustration with the tech billionaire and DOGE. 

DOGE has struggled to maintain public support, as it has moved quickly to slash large swathes of government funding, often making high-profile mistakes and facing numerous lawsuits. 

Musk himself has been named in several lawsuits, with some challenging the legality of his influential role in the administration, although the White House has maintained that he is not the formal head of DOGE. 

A source close to the White House said Musk leaving DOGE is a combination of the Trump team feeling the pressure from Republicans to create distance from him and the pressure on Musk from Tesla investors. 

“He’s a hot-button guy and Trump doesn’t want to own him,” they said. “Republicans don’t want to own him. It’s almost like he’s got the convenience of him needing to go pay attention to his business.” 

“I think there was enough chatter from Republicans, town hall meetings, where Elon Musk and what he’s doing and the chaotic, sporadic nature of it is actually bleeding through. And members are saying, ‘Why am I answering questions about a guy who is never going to be on the ballot?’” they continued. 

“When members are having to account for someone that they don’t think is in their political interest, that permeates,” they added. 

Musk has also publicly and privately clashed with members of Trump world.

Tensions between the tech billionaire and Secretary of State Marco Rubio bubbled over last month during a Cabinet meeting, in which Musk accused Rubio of failing to cut sufficient staff at the State Department, according to The New York Times. 

He also reportedly had a heated exchange with Transportation Secretary Sean Duffy at the same meeting over the Federal Aviation Administration (FAA) and air traffic controllers. 

Most recently, Musk got into a shouting match with Treasury Secretary Scott Bessent last week at the White House within earshot of the president, according to Axios. 

The tech billionaire seemed keen to recuperate DOGE’s image last month when he joined Baier for an interview, where he claimed he and his staff were being careful and compassionate with their overhaul of the federal government. 

The interview also marked the first public appearance for several of Musk’s DOGE members, who have been embedded in various federal agencies across the administration. 

They largely appear to share Musk’s vision, as Calkins noted, which could give the initiative some staying power.  

One of Musk’s DOGE officials, Tyler Hassen, has been named assistant secretary for policy, management and budget at the Interior Department. Last week, Interior Secretary Doug Burgum gave Hassen additional, sweeping authority at the agency. 

Burgum signed an order granting the former oil executive the authority to take “all necessary actions” to carry out “consolidation, unification and optimization” at the department and its bureaus.   

However, another DOGE staffer, Gavin Kliger, was recently ousted from his role at the Internal Revenue Service (IRS) by Bessent, according to Politico. 

"Even if it maintained the same spirit, it would still be tempered [without Musk],” Calkins added. 

A senior White House official emphasized that DOGE is an element of the agencies and that the final say over decision-making belongs to agency heads alone. 

“Elon Musk never was the final say. He wasn’t decision-maker in any of these agencies,” they said. 

The official described DOGE as being in “cruise control,” saying its work will continue even as Musk draws back his involvement. 

“We have so much more to accomplish, and we are just now getting started,” they added. “It’s integrated very well with the federal government, and it’s integrated very well as a component of the White House.” 

“Nothing’s going to change when it comes to the function, the operation and the goal of DOGE,” the official continued. 

Trump and others in the White House view the fight against the bureaucracy as a core part of his agenda, whether it’s slimming down the workforce of those who are obstacles to the administration or eliminating spending that does not align with the president’s goals. 

Republican strategist Chris Johnson suggested that increasingly some of the DOGE effort will have to move toward Congress. Some GOP lawmakers previously argued that the large-scale cuts sought by DOGE would require a spending rescission package passed by legislators. 

“There’s a decent amount of political runway that they’ve potentially used to a certain degree too much and now just the political realities mean that it can’t go on,” Johnson told The Hill. 

"If the president is serious about cutting spending and cutting waste and dealing with the bloat of the federal government, it’s got to happen through Congress,” he added. 

Even as Musk steps back, another White House official downplayed the idea that this would mean he was no longer a factor in the administration. Trump and Musk have developed a close personal and political relationship, and Musk is still likely to have Trump’s ear. 

The president on Wednesday touted Musk’s work both with DOGE and in boosting his 2024 campaign. The tech billionaire spent more than $250 million on the election, most of which went towards his super PAC that helped aid Trump's ground game in key swing states. 

“I can’t speak more highly about any individuals. He’s an incredible guy; he’s a brilliant guy; he’s a wonderful person.... And he was a tremendous help, both in the campaign and in what he’s done with DOGE,” Trump said. 

“He has helped the country. I also want him to make sure he’s going to be in great shape,” he continued, adding, “I told him I said, ‘You know, whenever you’re ready — I’d like to keep him for a long time — but, whenever you’re ready.’ He’s an exceptional guy.” 

Brett Samuels and Alex Gangitano contributed to this report.