Trump names Elon Musk for role in creating greater government efficiency

U.S. President-elect Donald Trump on Tuesday named Elon Musk to a role aimed at creating a more efficient government, handing even more influence to the world's richest man who donated millions of dollars to help Trump get elected.

Musk and former Republican presidential candidate Vivek Ramaswamy will co-lead a newly created Department of Government Efficiency, an entity Trump indicated will operate outside the confines of government.

Trump said in a statement that Musk and Ramaswamy "will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies."

Trump said the new department will realize long-held Republican dreams and "provide advice and guidance from outside of government," signaling the Musk and Ramaswamy roles would be informal, without requiring Senate approval and allowing Musk to remain the head of electric car company Tesla TSLA.O, social media platform X and rocket company SpaceX.

Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X looks on during the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 6, 2024. Reuters/File photo

Benefits to Musk's companies

With many links to Washington, Musk gave millions of dollars to support Trump's presidential campaign and made public appearances with him.

Adding a government portfolio to Musk's plate could benefit the market value of his companies and favored businesses such as artificial intelligence and cryptocurrency.

"It's clear that Musk will have a massive role in the Trump White House with his increasing reach clearly across many federal agencies," equities analyst Daniel Ives of Wedbush Securities said in a research note.

Musk vows to reduce government spending

Musk has promised transparency in his work.

"All actions of the Department of Government Efficiency will be posted online for maximum transparency," Musk said on X, inviting the public to provide tips.

"We will also have a leaderboard for most insanely dumb spending of your tax dollars. This will be both extremely tragic and extremely entertaining," Musk said.

The acronym of the new department - DOGE - also references the name of the cryptocurrency dogecoin that Musk promotes.

Ramaswamy is the founder of a pharmaceutical company who ran for the Republican presidential nomination against Trump and then threw his support behind the former president after dropping out.

Ramaswamy said the appointment means he is withdrawing from consideration for the pending U.S. Senate appointment in Ohio, where Governor Mike DeWine will appoint a replacement for JD Vance, who will become Trump's vice president when they are inaugurated on Jan. 20.

President Donald Trump is interviewed by Fox & Friends cohost Pete Hegseth at the White House, April 6, 2017.Reuters

Fox news commentator as secretary of defense

In a related development, Trump said he has picked as his secretary of defense Pete Hegseth, a Fox News commentator and veteran who has expressed disdain for the so-called "woke" policies of Pentagon leaders including its top military officer.

Hegseth, if confirmed by the U.S. Senate, could make good on Trump's campaign promises to rid the U.S. military of generals who he accuses of pursuing progressive policies on diversity in the ranks that conservatives have rallied against.

It could also set up a collision course between Hegseth and the chairman of the Joint Chiefs of Staff, Air Force General C.Q. Brown, a former fighter pilot with command experience in the Pacific and the Middle East, who Hegseth accused of "pursuing the radical positions of left-wing politicians."

The 44-year old NATO-skeptic is perhaps Trump's most surprising pick as he fills out his cabinet ahead of the Jan. 20 inauguration, and the decision drew swift condemnation from some of Trump's opponents.

Anxiety in Pentagon

"The job of Secretary of Defense should not be an entry-level position," Representative Adam Smith, the top Democrat on the House Armed Services Committee, said on X.

Trump, announcing his decision, praised Hegseth, who is an Army National Guard veteran and according to his website served in Afghanistan, Iraq, and Guantanamo Bay, Cuba.

"Pete is tough, smart and a true believer in America First," Trump said in a statement. "With Pete at the helm, America's enemies are on notice - Our Military will be Great Again, and America will Never Back Down."

There is already anxiety in the Pentagon that Trump aims to root out military officers and career civil servants he perceives to be disloyal.

Hegseth has been sharply critical of America's European allies and his selection could fuel even greater anxiety in NATO about what a Trump administration will mean for the alliance.

"Maybe if NATO countries actually ponied up for their own defense — but they don't. They just yell about the rules while gutting their militaries and yelling at America for help," he wrote in his book.

Huckabee, left, speaks as Trump looks on during a campaign event in Pennsylvania, October 29 Reuters

Pro-Israel Mike Huckabee as ambassador

Also on Tuesday, Trump said he had nominated Mike Huckabee as US ambassador to Israel under his incoming administration, putting a stalwart supporter of that country's government in a key role.

"Mike has been a great public servant, Governor, and Leader in Faith for many years," Trump said in a statement, referring to the Christian pastor-turned-politician.

"He loves Israel, and the people of Israel, and likewise, the people of Israel love him."

Israel's Foreign Minister Gideon Saar quickly offered his congratulations to Huckabee, who has in the past said there was "no such thing as an occupation" when it came to Palestinian territories.

"I look forward to working with you to strengthen the bond between our peoples," Minister Saar posted to Huckabee on X. "As a longstanding friend of Israel and our eternal capital Jerusalem -- I hope you will feel very much at home."

Huckabee, 69, ran twice for the Republican Party presidential nomination, including in 2016 against eventual winner Trump, who Huckabee was quick to back after falling out of the race.

Huckabee, whose nomination requires confirmation by the US Senate, has traveled to Israel regularly since 1973, and has led numerous tours there.

In December 2023 he visited Kibbutz Kfar Aza, where dozens of Israelis were killed in the Oct. 7 attack by Hamas militants, and said: "I wanted to be here to say I stand with Israel. I stand with the Jewish people."