Politic

Elon Musk resigns from the Trump administration after a dispute over federal efficiency and budget bill controversy. What’s the impact?

29 May 2025 2 min

Elon Musk’s resignation from President Donald Trump’s administration on May 28, 2025, has become one of the most widely discussed international news stories. Known as the CEO of Tesla and SpaceX, Musk decided to step down after about 130 days serving as the head of the Department of Government Efficiency (DOGE). This decision has sparked various speculations about the future of federal bureaucratic reform in the United States and the effectiveness of Musk’s cost-efficiency policies.

Elon Musk was appointed by President Trump to lead DOGE at the start of Trump’s second term, with the mission of streamlining bureaucracy and saving government spending. Musk brought a vision to “completely overhaul” the government system, which he considered bloated and inefficient. He even claimed to have saved up to $160 billion through restructuring and budget cuts across government agencies. However, several independent audit bodies found that much of the claimed savings could not be fully verified, and aggressive budget cuts may have led to an additional $135 billion burden for taxpayers.

Musk’s clash with senior White House officials began when he criticized the “One Big Beautiful Bill” legislation, which Musk believed would worsen the budget deficit. The bill included tax cuts and increased defense spending, which Musk argued could add up to $3.8 trillion to the deficit over the next decade. This criticism marked a turning point in Musk’s relationship with Trump, further straining internal government dynamics.

During his tenure, Musk made a number of controversial decisions, such as closing down USAID, laying off thousands of federal employees, and terminating government contracts with several companies. These policies drew harsh protests from labor unions and led to legal actions highlighting potential conflicts of interest, as Musk was known to retain shares in companies with government contracts.

In his official statement on the X platform, Musk expressed gratitude to President Trump for the trust placed in him, while also conveying disappointment at the federal bureaucracy, which he saw as hampering reform. Musk emphasized that the DOGE efficiency mission would continue even in his absence.

The White House confirmed Musk’s resignation and reiterated their commitment to continue DOGE’s mission. Some Republican lawmakers, such as Mike Johnson and Mike Lee, supported the efficiency programs Musk had initiated, but the future of DOGE now hangs in the balance amid ongoing controversies and uncertain policy direction.

Musk’s departure highlights the complexity of reforming bureaucracy in the United States. Many believe that without radical, conflict-free innovations, government efficiency reform will remain a major challenge. Musk’s resignation is viewed as a reflection of the failure of a “top-down” approach in the face of resistance from a complex bureaucratic structure.