(NewsNation) — Elon Musk has been tapped to lead a new advisory group on government spending in Donald Trump’s second administration, and the tech entrepreneur has been dropping breadcrumbs on what he plans to do. 

President-elect Trump announced Tuesday that Musk, along with Vivek Ramaswamy, would lead his “Department of Government Efficiency” (DOGE), an initiative meant to “slash excess regulations, cut wasteful expenditures” and restructure federal agencies.

There is still little known about DOGE, but in a statement shared by Trump, Musk said it will “send shockwaves through the system and anyone involved in Government waste, which is a lot of people!”

What is DOGE or Department of Government Efficiency? 

The Department of Government Efficiency is a new initiative put forth by Trump once he takes office in January. 

Trump said that DOGE would “provide advice and guidance from outside of government” and partner with the White House Office of Budget and Management (OMB) to drive large-scale structural reform.

“It will become, potentially, ‘The Manhattan Project’ of our time. Republican politicians have dreamed about the objectives of ‘DOGE’ for a very long time,” the president-elect added. The Manhattan Project was a secret World War II government program to develop and deploy the world’s first atomic weapons.

The idea appeared to have come from Musk, who discussed the need for a “government efficiency commission” while campaigning alongside Trump.

The president-elect said DOGE’s work will “conclude” no later than July 4, 2026, in celebration of the 250th anniversary of the Declaration of Independence.

What are Elon Musk’s plans for DOGE? 

Musk has provided some tidbits on what could be in store for DOGE since Trump’s announcement on the agency. 

“Incentives matter. There should be rewards for wise spending, but those who waste taxpayer funds cannot be allowed to keep doing so without consequences,” Musk posted on X of DOGE on Wednesday, hinting that cuts will be imminent under his guidance. 

He also said the department would provide “maximum transparency” and that all of DOGE’s actions will be posted online.

“Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know!” Musk posted. 

Musk also said that DOGE would create a “leaderboard for most insanely dumb spending” of tax dollars, which he said would be “extremely tragic and extremely entertaining.” 

While Trump has given DOGE less than 18 months to complete its work, Musk said Wednesday that it “will be done much faster.” 

One item that might be on Musk’s chopping block is the defense budget, which the billionaire called “pretty gigantic” in a video posted on the X account of a PAC founded by Musk that he reshared on Tuesday. 

Tesla and SpaceX CEO Elon Musk speaks during an interview. (Czarek Sokolowski, Associated Press)

“It’s a trillion dollars. The interest we owe on the debt is now higher than the defense budget. This is not sustainable. That’s why we need the Department of Government Efficiency,” he said in the video. 

Musk had floated the idea of a government efficiency department before Trump’s win while on the campaign trail, telling voters it was time to “drain the swamp.” 

During an October Trump rally in Pennsylvania, Musk said, “We’re going to bankrupt the country” without lowering government spending, adding that it would take “some pretty big moves.” 

Musk also spoke at the controversial Madison Square Garden rally in New York leading up to the election and told crowds there that he wants to cut at least $2 trillion in federal spending.

“All government spending is taxation … your money is being wasted, and the Department of Government Efficiency is going to fix that,” Musk said 

What is Vivek Ramaswamy’s role in DOGE?

Pharmaceutical entrepreneur Ramaswamy, who was one of Trump’s most vocal supporters, was tasked to run DOGE alongside Musk. 

“DOGE is ready to help the U.S. government conform to the U.S. Constitution once again. @elonmusk and I are ready to serve,” he posted. 

He added, “We will not go gently @elonmusk.”

Vivek Ramaswamy speaking during the second day of the Republican National Convention on Tuesday, July 16, 2024, in Milwaukee. (AP Photo/J. Scott Applewhite)

During his own unsuccessful bid for the presidential nomination, Ramaswamy campaigned on eliminating federal agencies, including the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Education Department; the Nuclear Regulatory Commission; and the Food and Nutrition Service within the Agriculture Department.

On Wednesday, he posted on X that “DOGE will soon begin crowdsourcing examples of government waste, fraud, & and abuse. Americans voted for drastic government reform & they deserve to be part of fixing it,” on X. 

Is there a connection between DOGE and Dogecoin? 

Cryptocurrency dogecoin has been surging in value since Trump named Musk as one of the heads of DOGE, as the acronym plays on the same word usage as the memecoin and is also the ticker symbol under which dogecoin trades.

The close word association has generated increased excitement around the cryptocurrency, which Musk has promoted in the past. 

Dogecoin was trading at $0.4006 on Wednesday, an increase of more than 15% in the past 24 hours and 121% over the last week, reported Quartz. 

The cryptocurrency became associated with Musk after he played a character on “Saturday Night Live” who went by the nickname the “Dogefather.” He has also called it his favorite cryptocurrency. 

In 2022, Musk became more closely associated with dogecoin after he suggested Twitter should perhaps accept it as payment for subscriptions. 

He continued promoting dogecoin on various platforms, leading to its inclusion in the top 10 cryptocurrencies by market capitalization, the outlet reported.