December 21, 2024
Congressional Republicans huddled for a series of meetings on Thursday with Elon Musk and Vivek Ramaswamy, the two business titans tapped with slashing the size of the federal government. Musk and Ramaswamy swept through the Capitol to share their vision for the so-called Department of Government Efficiency, a commission that will recommend cost-saving measures to President-elect Donald Trump. The panel […]

Congressional Republicans huddled for a series of meetings on Thursday with Elon Musk and Vivek Ramaswamy, the two business titans tapped with slashing the size of the federal government.

Musk and Ramaswamy swept through the Capitol to share their vision for the so-called Department of Government Efficiency, a commission that will recommend cost-saving measures to President-elect Donald Trump.

The panel is designed to give the White House a menu of actions it can take on its own, without intervention by Congress. But unified control of Washington has prompted Republicans to set up their own caucuses that will help facilitate the rollback.

In the morning, Ramaswamy met with the Senate DOGE Caucus, billed as a “listening” session where Sen. Joni Ernst (R-IA), the chairwoman, unveiled a report accusing “teleworking bureaucrats” of receiving more than their fair share of federal pay.

Sen. Marsha Blackburn (R-TN) publicly announced legislation that would freeze federal hiring and move agency headquarters out of Washington.

“It was a really good meeting. Lots of good ideas. Vivek was listening, we offered a few suggestions,” said Sen. Tedd Budd (R-NC), a member of the caucus.

In the afternoon, Musk and Ramaswamy convened Republicans in the House and Senate to solicit ideas on how to reduce the deficit, making only brief introductory remarks before opening the floor to lawmakers.

“They were not there to lecture,” said Rep. Dusty Johnson (R-SD), the chairman of the Republican Main Street Caucus. 

The flurry of activity represents an early opportunity for lawmakers to get to know two of the most powerful men in Trump’s orbit. Musk, the billionaire founder of Tesla and SpaceX, has become a fixture at his side since helping him win election to a second term.

Ramaswamy is an outspoken surrogate for Trump who made his fortune in the biotech space.

Each has no ultimate say in what sort of cuts the White House makes, but they plan to work closely with Trump’s Office of Management and Budget to enact a sweeping deregulatory agenda.

Republican leadership welcomed the visit by Musk and Ramaswamy, with House Speaker Mike Johnson (R-LA) praising them as disruptors who would bring about “a new day in Washington and a new day in America.”

Throughout the day, they held meetings with Johnson and other key decision-makers that were described as general in nature.

“We did not go through any kind of list of cuts or anything like that,” Sen. Susan Collins (R-ME), the incoming chairwoman of the Senate Appropriations Committee, said of her meeting with Musk.

Incoming Senate Majority Leader John Thune (R-SD) also hosted Musk, son in tow, in the morning at his Senate office.

Congress could be a partner that helps downsize the federal budget. Republicans are already considering ways to claw back funds passed by Democrats over the last four years, including uncommitted money in the Inflation Reduction Act.

“We have a window, and we have reconciliation as a tool, and we need to utilize that,” said Rep. Jodey Arrington (R-TX), the chairman of the House Budget Committee. “That’s why I’m excited, and that’s why these guys are going to play a good role in that.”

But the proposals offered by Musk and Ramaswamy have also raised concerns that DOGE will end up on a collision course with Congress. The two published an op-ed the other week teasing they could ignore the spending levels set by appropriators to accomplish a leaner federal budget.

Collins is among the lawmakers opposed to that prospect, specifically barred by the Impoundment Control Act of 1974.

“I remember when Richard Nixon impounded funds that Congress appropriated, and to me, that violates the separation of powers,” she said.

Others, particularly Trump’s congressional allies, were open to the step if it helped the commission be effective.

“We have such a huge spending problem in Washington, we got to do something outside the box to fix it,” said Sen. Bill Hagerty (R-TN), a Senate appropriator. “So, I’m going to be supportive of everything they do to try to address this issue.”

It remains to be seen whether Musk and Ramaswamy, “outside advisers” to Trump with no formal power of their own, will be able to enact real reforms. Past presidents have convened commissions only for their recommendations to go ignored.

But Democrats see a conflict of interest in Trump choosing Musk, whose companies rely in part on federal dollars to operate. On Wednesday, Ramaswamy drew scrutiny for denouncing a “last-minute spending spree” by the Biden administration that included a $6.6 billion loan to electric vehicle maker Rivian.

Rivian is a rival to Musk’s automotive company Tesla.

“The bottom line is, Elon Musk is in a delicate position here,” said Senate Majority Whip Dick Durbin (D-IL), who noted that Tesla has accepted federal dollars.

Thursday’s meetings were limited to Republicans, who will control both chambers of Congress and the White House next year. But Johnson and Musk have called for Democratic involvement as conversations progress.

So far, four Democrats have signed on to the DOGE Caucus in the House.

Part of the allure has been Musk’s stated openness to cuts in Pentagon spending, with Democrats generally in favor of a slimmer defense budget. In their op-ed, Musk and Ramaswamy noted that the Defense Department has failed seven straight audits.

Meanwhile, defense hawks have not dismissed his proposals out of hand.

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Collins predicted that Congress could still raise defense spending while isolating “savings” within the budget.

“I have said for some time that I think we need to take a hard look at defense procurement. It’s encrusted with bureaucracy,” she said.

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