(NewsNation) — Former President Donald Trump has secured a White House win, and Tesla CEO Elon Musk could reap the benefits.
During his remarks Wednesday morning, Trump praised the SpaceX CEO, who spent time in Philadelphia, Pennsylvania, stumping for him.
How Musk could benefit from Trump presidency
Bill O’Reilly said Elon Musk’s support of former President Trump is likely a business arrangement centered on electric vehicle infrastructure, describing their relationship as “the art of the deal.”
“The Musk-Trump relationship is a business deal,” O’Reilly said Monday on NewsNation’s “On Balance.” “In return, there’s nothing really defined, but I can tell you what Musk needs,” he continued. “He needs EV charging stations.”
O’Reilly speculated that Musk could benefit from government cooperation in placing charging stations if Trump wins the presidency, calling it “the likely quid pro quo.”
Trump and Musk want to create a ‘government efficiency commission’
Trump said in September he would create a “government efficiency commission” first proposed by Musk, whom Trump said agreed to lead the new task force.
During an already controversial rally for Trump at New York’s Madison Square Garden last week, the SpaceX CEO said that he wants to cut at least $2 trillion in federal spending.
During the event, Howard Lutnick, the chief executive of Wall Street firm Cantor Fitzgerald and a leader on Trump’s transition planning team, asked Musk how much could be ripped out of the Biden administration’s current budget.
The Washington Post reports that Musk answered, “We can do at least $2 trillion,” with the promise of getting “the government off your back and out of your pocketbook.”
Billionaire investor John Paulson, who The Wall Street Journal reports is on the possible short list to be Trump’s treasury secretary, says he would work with Musk to enact federal spending cuts. Others on the short list include Scott Bessent, a founder of Key Square Group; former trade ambassador Robert Lighthizer; and former Securities and Exchange Commission Chairman Jay Clayton, according to the WSJ.
What could be cut in Elon Musk’s proposed plan
In fiscal year 2024, the federal government spent a total of $6.75 trillion, according to the Treasury Department. Should Musk actually implement his proposed cuts, it would mark around a third of federal spending.
Exact details of this plan from Musk remain unknown but this has brought some concerns about what areas could see an impact, and that some government services would be slashed.
Currently, $1.46 trillion is being spent on Social Security; $874 billion goes to Medicare, $874 billion is budgeted for national defense; $325 billion is for veterans benefits and services; and there’s $324 billion allocated to education, training, and social services, per Treasury data.
“The idea that one can cut $2 trillion in wasteful and unnecessary programs is absolutely absurd,” Brian Riedl, a senior fellow at the Manhattan Institute, a center-right think tank, told the Washington Post. “There’s a long history of the fantasy that one smart businessman will just identify trillions in waste, but that’s just not how it works.”
On X, one user said if Musk is successful in “hacking away at the government, firing people and reducing the deficit” that, combined with Trump possibly “forcing through mass deportations” could lead to an initial severe overreaction in the economy. However, the user added that “when the storm passes and everyone realizes we are on sounder footing, there will be a rapid recovery to a healthier, sustainable economy.”
To this, Musk replied: “Sounds about right.”
Safia Samee Ali and Tom Dempsey contributed to this report.