Elon Musk stated on January 9, 2025, during a broadcast on X that the savings target for the Department of Government Efficiency, a commission he co-runs, has been revised. Initially claiming a potential $2 trillion in savings, Musk now considers this a 'best-case outcome' and suggests a more conservative estimate of $1 trillion.
Musk emphasized that reducing the budget deficit from $2 trillion to $1 trillion could stimulate economic growth and prevent inflation. He described the government as a 'target-rich environment for saving money,' likening it to being in a room full of targets.
The federal government’s spending reached $6.75 trillion in the 2024 fiscal year. Musk did not disclose specific cuts needed to achieve the savings target, which would require a significant reduction in government spending.