Elon Musk Resigns from DOGE Amid Controversy Over Spending Bill

Musk Steps Down from Government Role

In Washington, Tesla's CEO Elon Musk announced his resignation as a 'Special Government Employee' on Thursday, coinciding with significant protests. He expressed gratitude to President Donald Trump for the chance to help minimize government waste.

Musk shared his thoughts on X, stating, "As my time as a Special Government Employee concludes, I want to thank President Trump for allowing me to work on reducing wasteful expenditures. The DOGE initiative will continue to grow as it becomes integral to government operations."

Continued Support for Trump

Despite stepping down, Musk indicated his desire to remain a supportive advisor to the president. He mentioned, "I plan to stay a friend and advisor, and I am available for any tasks the president may need me for."

Trump's Praise for Musk

President Trump commended Musk for his exceptional leadership of the DOGE (Department of Government Efficiency) and assured that the department, which Musk established to streamline funding and enhance the economy, will persist in its operations.

Understanding DOGE

Although it has a formal title, DOGE is not an officially recognized government department, as only Congress can create such entities. Instead, it was formed through an executive order by President Trump.

The executive order outlines DOGE's mission to improve IT systems for greater efficiency, with a completion target set for July 2026, although this deadline could be extended by another executive order.

The workforce of DOGE primarily consists of young individuals with technical expertise but limited governmental experience.

The 'One Big Beautiful Bill'

The 'One Big Beautiful Bill Act of 2025' (OBBBA), which spans over 1000 pages, was narrowly approved by the US House of Representatives last week and is now moving to the Senate. This legislation includes commitments to increase defense spending and implement substantial tax cuts.

The House Bill aims to extend or solidify various tax measures from the 2017 Tax Cuts and Jobs Act (TCJA), which are set to expire, while also introducing new tax provisions.

Key components of the bill include expanded tax cuts, new eligibility criteria for federal benefits, and an increase in the national debt ceiling, all of which were contentious points agreed upon by the House with a vote of 215 to 214.

The bill also proposes tax reductions from the 2017 TCJA, additional funding for border security, work requirements for Medicaid recipients, and a reduction in tax incentives for clean energy projects.

According to the Congressional Budget Office, the tax provisions in this package could lead to a $3.8 trillion increase in the budget deficit by 2034.

Musk's Concerns About the Bill

Musk expressed his worries regarding Trump's extensive tax and spending cuts, stating in a video that he believes it would exacerbate the US budget deficit and undermine the efforts of the Department of Government Efficiency.

"I was disheartened to see the large spending bill, which increases the budget deficit rather than reducing it, and undermines the work of the DOGE team," Musk remarked.

"A bill can be substantial or appealing, but I question whether it can be both," he added.

Future of DOGE and Legislative Process

Even with Musk's departure, DOGE is expected to continue its initiatives, with staff members remaining embedded in various federal agencies for an extended period.

As Musk steps back, the 'One Big Beautiful Bill' is set to advance to the Senate, where Trump is keen to see it approved and has urged the Senate to act swiftly.

"It’s time for our friends in the United States Senate to get to work and send this Bill to my desk AS SOON AS POSSIBLE!" he posted on social media.

The Senate will review the bill and may propose amendments, which would then require another critical vote in the House.

Democrats, lacking a majority in both chambers, have criticized the bill, particularly its implications for Medicaid and SNAP.

House Minority Leader Hakeem Jeffries labeled the bill a "reckless, regressive, and reprehensible GOP tax scam" and vowed to leverage it against Republicans in the upcoming 2026 midterm elections.

The White House warned that failure to pass the bill could lead to a $4 trillion tax increase, potentially triggering economic downturns.