In a bold statement, technology mogul Elon Musk asserted that if the newly established Department of Government Efficiency (DOGE) successfully cuts $4 billion in federal spending per day, the United States could be free of inflation by 2026. This ambitious plan aims to halve the projected federal deficit from $2 trillion to $1 trillion within the next year and a half.Musk’s comments came as he leads DOGE, a task force established during the administration of President Donald Trump, designed to identify and eliminate wasteful government spending. He emphasized that achieving this goal would not only stabilize the economy but also promote growth in line with the increase in the money supply, thus preventing inflation. “If we can cut the budget deficit from $2 trillion to $1 trillion and stimulate economic growth, we can ensure that inflation remains low,” Musk stated in a recent social media interview.
The proposed cuts are part of a larger strategy that Musk claims will address the inefficiencies in the federal budget. He emphasized that significant savings could be achieved in many areas, particularly by eliminating contracts related to Diversity, Equity, Inclusion, and Accessibility initiatives. So far, DOGE has reportedly terminated several contracts valued at nearly $1 billion solely in these areas.While Musk initially aimed to cut $2 trillion from the federal budget, he has recently adjusted this estimate, suggesting that a more realistic target would be around $1 trillion. He acknowledged the challenges ahead, stating that “it’s very hard for people to care about spending other people’s money,” but remains optimistic about finding significant savings within the federal framework.
With a deadline set for July 4, 2026—marking the 250th anniversary of the founding of the United States—Musk and his team face a tough battle in addressing the complexities of federal spending. However, he remains committed to transparency and public engagement throughout the process, promising to update and create opportunities for citizens to contribute their opinions as they implement these crucial financial reforms.
