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Assessing the Department of Government Efficiency

A Trumpian Budgetary Fog

February 22, 2025

Since President Donald Trump took office, Elon Musk’s Department of Government Efficiency (DOGE) has aggressively reduced the number of federal employees with the stated aim of cutting $1 trillion in federal spending. But how much can it actually save? AEI budget expert James C. Capretta surveys the entire budgetary outlook of Trump’s policy agenda and explains why DOGE needs congressional cooperation to secure permanent savings.

 

 

Even if DOGE cannot meaningfully reduce the debt and deficit without addressing entitlements, it has an opportunity to make the federal bureaucracy more innovative and effective. In a new Foreign and Defense Policy working paper, Elaine McCusker, John G. Ferrari, and Todd Harrison highlight important reform opportunities in the Pentagon that DOGE should pursue.

 

However, as the Trump administration pursues this ambitious agenda of executive reorganization, it cannot disregard the legal or constitutional limits on presidential authority. Philip Wallach points out that the administration’s troubling disregard for the rule of law could undermine its policy objectives.

 

When it comes to foreign policy, the administration has shown a similar contempt for the United States’ long-standing practice of standing up for freedom and self-determination for our democratic allies against authoritarian aggression. Gary J. Schmitt explains how abdicating the United States’ moral strength and credibility on the world stage does not serve our national interests.

 

The Trump administration’s approach is having particularly acute costs on the United States’ relationship with one of our oldest and closest allies—Canada. Colin Dueck analyzes how Trump’s threats have transformed Canada’s national mood and politics.

Innovating Future Power Systems: From Vision to Action

The global energy landscape is transforming, and nowhere is this more evident than in the electricity sector. Technological advancements, shifting economic conditions, and evolving environmental policies are converging to reshape how power systems operate. In a new AEI report, AEI’s Electricity Technology, Regulation, and Market Design Working Group, led by L. Lynne Kiesling and including AEI Senior Fellow Daniel Lyons, explores these implications to propose a vision and policy agenda for the United States’ energy future. The working group argues that the US must lower barriers to innovation in its energy system and increase consumers’ access and freedom to control electricity use. By embracing innovation, reforming regulatory frameworks, and investing in new technologies, the US can achieve a dynamic, clean, and prosperous energy future.

 

 

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QUOTE OF THE WEEK

Musk has generated enough news and controversy to provide the illusion of long-term impact. But the conventional wisdom of just a few weeks ago—that DOGE will not substantially alter the trajectory of the federal government—remains likely to prove true. Before we conclude that Musk will curtail government in a way no one else has, let’s wait to see the receipts.”

Ramesh Ponnuru