Elon Musk to Head Government Efficiency Commission if Trump Elected

By Sheila Dang, Akash Sriram, Joey Roulette and Nora Eckert

(Reuters) – Billionaire Elon Musk has been announced to lead a government efficiency commission, if Donald Trump wins the U.S. presidency. This commission has a broad mandate that could alter regulations affecting various industries where Musk’s companies, such as SpaceX and Tesla, operate.

On Thursday, Trump detailed the commission’s purpose, emphasizing initiatives aimed at identifying fraud and streamlining federal government operations. The proposal aligns with Musk’s past assertions of the need for governmental financial prudence, which he openly discussed with Trump on social media, suggesting he could assist in these efforts.

Historically, presidential commissions have investigated numerous issues, including recent efforts by President Biden to reform the Supreme Court. However, Musk’s financial ties to the government raise concerns about conflicts of interest, as he operates businesses intertwined with federal contracts and regulations in electric vehicles, satellite services, and social media.

Critics like Nikolas Guggenberger, University of Houston Law Center professor, express reservations about Musk’s capability to provide unbiased recommendations given his vested interests in several sectors.

While Trump did not disclose implementation details, he mentioned the commission’s intended role in audits and recommendations, though similar undertakings have been challenging in the past. Cristina Chaplain, former director at the Government Accountability Office, remarked that while business insights could be beneficial, they often clash with the complexities of regulatory frameworks.

Musk has continually criticized government inefficiencies that impact his businesses, facing significant regulation from space launches to vehicle safety. Some investors view his potential influence in Washington positively, citing his successful restructuring at Twitter as evidence of his capability to eliminate wasteful expenses.

Industry experts worry that Musk’s focus on efficiency could disadvantage competitors, particularly in the space sector, as he might advocate for reducing the number of governmental contracts awarded to multiple vendors.

While some investors are apprehensive about Musk’s capacity to juggle so many responsibilities, others believe his involvement could enhance operational efficiencies within the government. Despite not replying to requests for comments, Musk labeled the creation of the efficiency commission as “badly needed” on social media.

Tom Schatz, head of the group Citizens Against Government Waste, echoed that there are precedents for significant savings through such commissions and that Musk’s prominence could attract other business leaders to contribute to governmental improvement efforts.