After four months of high-profile budget slashing and government downsizing, Elon Musk is stepping away from the Department of Government Efficiency (DOGE). But despite his official exit on May 28, both Musk and President Trump say he may still play a behind-the-scenes role.
This explained guide breaks down what DOGE was, what Musk did, who was affected, and what happens next.
What is DOGE, and why did Musk lead it?
DOGE — short for the Department of Government Efficiency — was established by executive order on January 20, 2025, the day Trump began his second term. It was designed to reduce federal bureaucracy, cut waste, and modernize government technology.
Initially co-led by Elon Musk and Vivek Ramaswamy, the department became Musk’s solo project by February. Its goal: cut $2 trillion in federal spending, later reduced to $1 trillion.
DOGE’s tactics included:
- Asset sales
- Contract and lease cancellations
- Grant terminations
- Federal workforce reductions
Why did Elon Musk leave?
Musk was hired as a special government employee (SGE), a temporary role limited to 130 working days per year. In a post on X, Musk cited this legal cap as the reason for his exit.
However, both Musk and Trump have said this isn’t a true departure.
“He’s gonna be back and forth,” Trump said at a press conference.
Musk added, “I will continue to visit and be a friend and advisor to the president.”
What did Musk actually do at DOGE?
Between January and May 2025, Musk and DOGE executed a sweeping overhaul of federal spending. Key figures and actions include:
- $175 billion in claimed savings (as of May 30)
- 15,149 grants canceled, totaling $40 billion
- 250,000 federal workers laid off or bought out
- Cuts across every major agency: EPA, IRS, NOAA, VA, DHS, and more
Musk also gained viral attention for wielding a chainsaw at CPAC, calling it “the chainsaw for bureaucracy.”
Who was impacted — especially in Michigan?
Musk’s cuts hit Michigan especially hard:
Federal Facilities Closed in Michigan:
- Bureau of Indian Affairs (Baraga)
- Departmental Management IG Building (Grand Rapids)
- Indian Health Service (Traverse City)
- IRS office (Metro Detroit)
- U.S. Fish and Wildlife Service (Ann Arbor)
- Social Security office (unnamed location)
Major Grant Cancellations in Michigan:
- $238M to the Michigan Dept. of Health and Human Services
- $20M to expand broadband through LEO
- $1M for Flint climate/resiliency planning
- $19M for home repairs in Kalamazoo County
- 17 university research grants as of April
The cuts led to lawsuits, including one by Michigan Attorney General Dana Nessel, challenging the firing of probationary federal employees.
Did DOGE really save money?
That depends on how you measure it.
- DOGE claims $175 billion in savings
- Critics say costs of cuts offset gains:
- $135 billion in administrative and legal costs
- $8.5 billion in lost IRS revenue (from 22,000 layoffs)
- Net gain: ~$31.5 billion, far below goals
A study by the Partnership for Public Service and analysis from Yale’s Budget Lab both challenge DOGE’s math.
Why are some people calling Musk’s exit a “farce”?
Despite official announcements, media outlets like The New Republic and CBS News report that Musk is still closely involved.
- Trump: “He’s not leaving.”
- Musk: “DOGE is now a way of life.”
- JD Vance: “Musk remains an informal advisor.”
Critics argue Musk is avoiding federal ethics and disclosure requirements tied to longer-term government roles.
How has Musk responded to the backlash?
In interviews, Musk has defended DOGE’s mission while acknowledging the backlash:
“DOGE became the whipping boy for everything,” he told CBS. “If there was some cut, real or imagined, everyone would blame DOGE.”
Musk also pushed back on critics by comparing the federal government to the DMV: “It’s just the DMV that got big.”
What’s happening with Musk’s companies?
Musk says he’s now returning full-time to his business ventures:
- Tesla (now scrapping the $25K EV)
- SpaceX (fresh off the 9th Starship test)
- xAI, Neuralink, Starlink, The Boring Company, and X
Tesla has faced declining sales and executive tension after Musk’s denials about canceling new EV projects. Tesla’s affordable Model 2 has reportedly been scrapped in favor of stripped-down Model 3 and Y variants.
What’s next?
While Musk may be out of Washington officially, his policies and legacy remain in motion.
- DOGE continues without him.
- The $3.8 trillion Trump budget may offset any savings DOGE achieved.
- Lawsuits and political fallout are still unfolding.
As CBS’s David Pogue put it: “Musk’s rocket spun out of control. It did not survive re-entry.” Whether his DOGE experiment fares better remains to be seen.
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