Elon Musk and Vijay Ramaswamy are advocating for significant spending cuts from Congress, but it may be a difficult task to achieve.
- Elon Musk and Vivek Ramaswamy are seeking major cuts to federal spending.
- Without legislation, it will be difficult to cut Social Security, Medicare, and Medicaid benefits, which are politically sensitive topics in Congress.
- Hundreds of Republican lawmakers met with the duo on Capitol Hill for a day of discussions.
Elon Musk and Vivek Ramaswamy, entrepreneurs with an ambitious agenda, are seeking to reduce federal spending with the help of their advisory council, the Department of Government Efficiency (DOGE).
During their first joint visit to Congress on Thursday, the pair likely witnessed some of the constraints on external impact on the legislative branch's operations.
On a marathon day of meetings with lawmakers, Musk and Ramaswamy received warm welcomes from Republicans while crisscrossing Capitol Hill together.
An unspoken understanding existed among those who visited the rooms that Musk's goal of reducing federal spending by $2 trillion is already unattainable.
The reason for this comes down to math.
According to the nonpartisan Congressional Budget Office, the federal government spent a total of $6.1 trillion in fiscal year 2023.
On day one, about $3.8 trillion of the $6.1 trillion budget was already committed to mandatory spending programs, including Social Security benefits, Medicare coverage, and veterans benefits.
The national debt was allocated $650 billion to cover interest payments.
The federal government had $1.7 trillion left after accounting for mandatory spending, which included $805 billion for national defense. The rest was allocated to various federal departments, including FEMA, NASA, and Customs and Border Patrol, for their daily operations.
The $2 trillion that Musk talks about is likely a bridge too far for Republicans close to the government funding process, like House Appropriations Committee member Rep. Steve Womack, Ark.
To achieve massive, DOGE-style cuts, you must leave social safety net programs untouched and cut hundreds of billions of dollars from discretionary spending, as stated by him in an interview with CNBC.
Womack stated that it would be extremely challenging to accomplish that task without compromising national security.
Politically dangerous for Congress members running for reelection are any proposed cuts or changes to mandatory programs like Social Security, Medicare, or Medicaid.
Some Republicans are open to limited reforms in Medicaid and Social Security programs. For instance, House Majority Leader Steve Scalise, La., has expressed his willingness to explore potential work requirements for Medicaid recipients and stricter verification for Social Security benefits.
Scalise informed reporters that he would also be examining those things following his meeting with Musk and Ramaswamy.
Speaker Mike Johnson, R-La., stated that Thursday's meetings with Musk and Ramaswamy were "brainstorming" sessions, providing an opportunity to discuss ideas without any obligation to reach a consensus.
Plans can only move ahead once Republican President-elect Donald Trump takes office in January and Senate Republicans gain control of their chamber.
Johnson's narrow hair's breadth of a vote margin means he will only be able to afford a few defections from his conference on any given bill, and still pass it on a party line vote.
Some Republicans are advocating for a new approach to reducing government expenses: Mandating federal workers to physically return to their offices five days a week.
"Sen. John Cornyn, R-Texas, stated that one of the things he is most thrilled about is enforcing attendance at work. If individuals fail to appear, they may choose to depart on their own accord, allowing the company to save a substantial amount of funds."
Sen. Susan Collins, R-Maine, the Senate's top appropriator, also supported the notion of reinstating federal employees in the office. As she stated, 'It's astonishing to stroll through some federal buildings and see nothing but vacant offices everywhere.'
If the federal government is truly going to change the way people work, then we must address the excess buildings and space, said Collins.
The Senate DOGE Caucus, led by Sen. Joni Ernst, R-Iowa, has brought attention to the issue of underused federal office space resulting from employee telework in a new report released on Thursday.
The report revealed that over $81 million is being wasted annually on underutilized government office space. However, this finding highlights the limited impact of changes to federal office space on the significant spending cuts that Musk is seeking.
This week, CNBC interviewed Republicans on Capitol Hill and found that federal return-to-work policies were the most commonly mentioned example of potential cost-cutting measures.
If federal employees were required to return to the office five days a week, would they collectively resign, allowing their current salaries to be redirected for other purposes?
Hundreds of thousands of federal workers nationwide are preparing to resist any changes to their working conditions, as unions gear up for a fight.
The DOGE team may face new challenges due to these battles.
Politics
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