Will Elon Musk be able to cut $2 trillion from US government spending?

The boss of Tesla and the social media site X, Elon Musk, suggested last month at Donald Trump’s rally in New York City that it would be possible to cut “at least $2 trillion” from US government spending by eradicating “waste”.

Musk has now been appointed to co-head a new Department of Government Efficiency by the incoming US president, giving him an opportunity to try to put his plans into action.

In the most recent fiscal year (from October 2023 to September 2024) the US federal government spent $6.75 trillion (£5.3 trillion) according to the US Treasury.

This means Musk’s proposed cuts of $2 trillion would represent around a cut of around 30% of total federal government spending — also known as national spending in other countries.