Department of Research, Studies and International News 10-02-2025

Former U.S. President Donald Trump has voiced confidence that billionaire entrepreneur Elon Musk will uncover extensive fraud and waste within the U.S. Department of Defense, following Musk’s appointment to lead a federal workforce reduction initiative. Trump’s remarks, made during a recent interview with Fox News, suggest that the ongoing audit of government spending could reveal misuse of funds amounting to billions of dollars.

During his interview, Trump expressed his belief that the probe, which is aimed at downsizing the federal workforce, would expose widespread financial mismanagement. He highlighted the Pentagon as a key area of concern, given its nearly $1 trillion annual budget.

“We’re going to find billions, hundreds of millions of dollars of fraud and abuse,” Trump stated. “And, you know, the people elected me on that.”

The U.S. military’s budget has been a subject of controversy for years, with bipartisan concerns over inefficiency and waste. In December, then-President Joe Biden signed legislation authorizing an $895 billion defense budget for the fiscal year ending September 30. Trump and his allies argue that a significant portion of this budget is being squandered through mismanagement, unnecessary expenditures, and possible fraudulent activities.

Elon Musk’s Role and the Creation of the ‘Department of Government Efficiency’

Musk, the high-profile CEO of Tesla and SpaceX, has been appointed to oversee a newly established agency, the Department of Government Efficiency (DOGE). The agency’s mandate is to identify inefficiencies and eliminate excessive government spending. To accomplish this, Musk has been granted access to classified and sensitive information from multiple federal agencies, a move that has raised significant concerns.

While some view this initiative as a long-overdue reform, others warn that it could lead to major disruptions within government agencies. Critics worry that Musk’s sweeping access to federal data might pose security risks, particularly given his business ties to the Pentagon. SpaceX, for instance, holds lucrative defense contracts, which raises questions about conflicts of interest.

Concerns over these potential conflicts have already led to legal action. Over the weekend, a U.S. judge issued an emergency ruling that temporarily blocks DOGE from accessing Treasury Department payment systems, which contain sensitive financial data belonging to American citizens.

Despite the backlash, Trump appears determined to move forward with Musk’s audit of federal agencies. He suggested that the Department of Education could be the next target of the efficiency review.

“I’m going to ask Elon very soon, like maybe in 24 hours, to go check the Department of Education,” Trump said. “Then I’m going to go, go to the military.”

National Security Advisor Mike Waltz, echoing Trump’s concerns, pointed to the Pentagon’s shipbuilding sector as an area in need of reform.

“Everything there seems to cost too much, take too long, and deliver too little to the soldiers,” Waltz stated in an interview with NBC News. “We do need business leaders to go in there and absolutely reform the Pentagon’s acquisition process.”

Trump’s Broader Push to Slash Federal Spending

Since his return to office, Trump has taken aggressive steps to reduce federal expenditures. Within just three weeks, he has signed multiple executive orders aimed at cutting costs across various government agencies. Among the most controversial moves was his decision to freeze funding for the U.S. Agency for International Development (USAID), a key institution responsible for foreign aid and development programs.

Additionally, the Trump administration has effectively shut down the Consumer Financial Protection Bureau (CFPB), an agency established in response to the 2008 financial crisis to safeguard consumers from predatory lending and financial misconduct.

Trump’s actions have sparked intense opposition from Democrats, who argue that his administration is undermining democratic principles and consolidating power among ultra-wealthy individuals. Senator Chris Murphy condemned the latest moves, calling them an attack on the Constitution.

“The president wants to be able to decide how and where money is spent so that he can reward his political friends and punish his political enemies,” Murphy said in an interview with ABC News. “That is the evisceration of democracy.”

With Trump doubling down on his commitment to government efficiency reforms and Musk now at the forefront of this effort, the coming months are likely to bring further political clashes, legal challenges, and widespread debate over the role of billionaires in shaping the future of American governance.