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Elon Musk, co-head of President-elect Donald Trump’s newly formed Department of Government Efficiency (DOGE), tempered expectations on Wednesday for the ambitious $2 trillion in federal budget cuts he initially promised. In an interview with political strategist Mark Penn, Musk acknowledged that achieving the full amount was unlikely and described it as a “best-case outcome.”
“I think if we try for $2 trillion, we’ve got a good shot at getting 1,” Musk said, clarifying that $1 trillion in savings is a more realistic target. The revised figure represents a significant shift from Musk’s statement during an October 27 rally at Madison Square Garden, where he boldly claimed the budget could be slashed by at least $2 trillion.
The ambitious $2 trillion goal quickly drew skepticism from budget experts, who pointed out that the entire discretionary federal budget amounts to just $1.7 trillion. Despite criticism, Musk had not previously walked back the figure, and it had become widely associated with DOGE’s plans to streamline government spending.
The DOGE initiative, co-led by Musk and entrepreneur Vivek Ramaswamy, was established by Trump as an advisory panel to propose budget-cutting recommendations. The group, named after a popular internet meme, holds no formal authority but is tasked with presenting strategies to reduce federal spending.
Penn pressed Musk on whether specific cuts had been identified to meet these goals. While Musk declined to name particular programs, he described federal spending as a “very target-rich environment for saving money.” However, experts have noted that achieving significant savings would likely require cuts to mandatory programs such as Medicaid, which could lead to “hardship” for some Americans—a point Musk himself acknowledged.
Budget analysts have emphasized the challenges Musk and Ramaswamy face, as many mandatory spending programs are politically sensitive and deeply entrenched. Mark Penn drew parallels to President Bill Clinton’s efforts to balance the budget, asking Musk if a similar outcome was feasible.
“If we can drop the budget deficit from $2 trillion to $1 trillion and free up the economy for additional growth, there will be no inflation,” Musk said, describing such an achievement as “an epic outcome.”
The Trump transition team has not commented on Musk’s revised projections, though Musk’s remarks are likely to shift the public perception of DOGE’s scope and feasibility. Despite the tempered expectations, Musk remains confident that his team’s recommendations can significantly impact federal spending while fostering economic growth.
