Jamaine Punzalan

Article (news)

Agence France-Presse

<div><br/></div><p>Tech billionaire Elon Musk, who has been tapped by President Donald Trump to lead federal cost-cutting efforts, said Tuesday that the United States would go &quot;bankrupt&quot; without budget cuts.</p><p>Musk leads the efforts under the newly created Department of Government Efficiency (DOGE), and was speaking at the White House with Trump, who has in recent weeks issued a flurry of orders aimed at slashing federal spending.</p><p>In particular, Musk pointed to the country&#x27;s budget deficit, which topped $1.8 trillion in the last fiscal year, and took aim at high interest payments on the public debt.</p><p>&quot;It&#x27;s not optional&quot; for Washington to reduce federal expenses, he told reporters. &quot;It&#x27;s essential.&quot;</p><div><a href="https://www.abs-cbn.com/news/world/2025/2/9/trump-says-musk-will-help-uncover-hundreds-of-billions-in-us-govt-fraud-0112">Trump says Musk will help uncover &#x27;hundreds of billions&#x27; in US gov&#x27;t fraud</a></div><p>The remarks, however, came as the Trump administration finds itself on a collision course with the US courts, as federal judges questioned the legality of White House cost-cutting measures.</p><p>Trump&#x27;s sweeping plans, which have effectively shuttered some federal agencies and sent staff home, have sparked legal battles across the country.</p><p>Multiple lawsuits seek to halt what opponents characterize as an illegal power grab.</p><p>Meanwhile, Musk&#x27;s team has moved through federal agencies, freezing aid programs and pushing workforce reductions.</p><p>An executive order outlining the scope of DOGE included details of a federal workforce reduction plan that will restrict agencies to hire only one employee for every four that depart.</p><p>The order also requires the head of each agency to consult with DOGE when deciding which vacancies to fill.</p><p>Asked to respond to criticism, Musk said that Americans voted for &quot;major government reform,&quot; an issue that Trump spoke about at rallies.</p><p>And Musk, who also heads SpaceX and Tesla, said he is seeking to be as transparent as possible when asked about potential conflicts of interest.</p><p>Musk&#x27;s role faces criticism in part because his companies have had huge US government contracts.</p><p>The DOGE reform team has triggered alarm among critics as well by gaining access through the US Treasury to sensitive data.</p><div><a href="https://www.abs-cbn.com/news/world/2025/2/8/us-judge-blocks-musk-s-team-from-treasury-data-2210">US judge blocks Musk&#x27;s team from accessing Treasury data on Americans</a><br/><a href="https://www.abs-cbn.com/news/world/2025/2/8/musk-vows-to-rehire-deputy-who-quit-over-racist-posts-0800">Musk vows to rehire deputy who quit over racist posts</a></div><div><strong>© Agence France-Presse</strong></div>

<p>Tech billionaire Elon Musk, who has been tapped by President Donald Trump to lead federal cost-cutting efforts, said Tuesday that the United States would go "bankrupt" without budget cuts.</p>

Tech billionaire Elon Musk, who has been tapped by President Donald Trump to lead federal cost-cutting efforts, said Tuesday that the United States would go "bankrupt" without budget cuts.

Musk, with Trump at White House, says US will go 'bankrupt' without cuts

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Musk, with Trump at White House, says US will go 'bankrupt' without cuts

Agence France-Presse

Published Feb 12, 2025 09:44 AM PHT

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