This story originally appeared in The Washington Post November 16, 2024
https://www.washingtonpost.com/business/2024/11/16/trump-musk-ramaswamy-doge-program/


Elon Musk, center, and Vivek Ramaswamy, right, at Donald Trump's Mar-a-Lago on Thursday. (Saul Martinez for The Washington Post)

By Jacob Bogage
November 16, 2024 at 6:00 a.m. EST

Trump government efficiency advisers Elon Musk and Vivek Ramaswamy have pledged not to bring a chisel to government spending, but rather “a chainsaw.” The particular approach Ramaswamy has in mind could threaten dozens of programs that tens of millions of Americans rely on each day.

Ramaswamy floated on social media a proposal to eliminate programs that Congress funds but where specific spending authorization has lapsed. That may sound like an easy source of savings, but it would ax veterans’ health-care programs, drug research and development, opioid addiction treatment — even the State Department.

“We can & should save hundreds of billions each year by defunding government programs that Congress no longer authorizes,” Ramaswamy wrote.

The approach from President-elect Donald Trump, Musk and Ramaswamy’s out-of-government “Department of Government Efficiency,” or DOGE, demonstrates a fundamental misunderstanding of Congress and federal spending, experts say.

Though Ramaswamy suggested that programs Congress no longer authorizes are prime targets for cuts, in reality, many programs where Congress has let authorization lapse are covered by funding bills that policy wonks call “self-authorizing.”

In other words, instead of needing two laws — one to approve funding for an agency and another to actually allocate the money — Congress only passes one: the allocation, which intrinsically gives a department authority to spend its funding. It is Congress’s way of making legislative work more efficient, and its legality has been confirmed by numerous government studies.

There is plenty of room for policymakers to uncover and eliminate excess federal spending, experts say, an issue made even more serious by the country’s deteriorating financial health. The national debt is expected to eclipse $36 trillion in the coming days; Trump’s first-term policies accounted for $8.4 trillion of that amount, according to the nonpartisan Committee for a Responsible Federal Budget.

It just might be more difficult than DOGE’s backers suggest.

“It is obviously important for the government to be good stewards of taxpayer dollars. There’s real bipartisan areas where people agree there’s stuff to be done. But what Elon and Vivek and Trump are going for is not that,” said Bobby Kogan, an analyst at the center-left think tank Center for American Progress. “They don’t even get the basics right. They get the size of the budget wrong. They named it after a meme. In no way are they actually taking this seriously.”

Musk and Ramaswamy beg to differ, and have called the DOGE commission the United States’ next Manhattan Project.

“There’s a new sheriff in town. Donald Trump’s the president. He has mandated us for radical, drastic reform of this federal bureaucracy with the learnings of that first term,” Ramaswamy said on Fox News. “And look, Elon and I — Elon is solving major problems of physics. I came from the world of biology. What we’re solving here now is not a natural problem. This is a man-made problem, and when you have a man-made problem, you better darn well have a man-made solution. That’s what we’re bringing to the table.”

Trump transition officials did not immediately return a request for comment.

The programs without separate spending authorization that Ramaswamy would do away with represent more than $516 billion, according to the Congressional Budget Office. The 10 largest make up $380 billion. Here’s a look at what some of those programs do.

Veterans’ health care $119.1B

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A 1996 law set eligibility requirements for military veterans to receive hospital, medical and nursing home care and authorized spending for those services and patient enrollment. That law has not been renewed, but Congress regularly allocates additional Department of Veterans Affairs funding and allows benefits to increase automatically based on inflation. VA provides medical care to more than 9.1 million enrolled veterans, according to the agency.

Drug development and opioid addiction treatment $48.2 Billion

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Most of this spending relates to the bipartisan 21st Century Cures Act of 2016. That law provided money to the National Institutes of Health and Food and Drug Administration to modernize pharmaceutical research and medical trials. It funded research for cancer cures and state-level grants for opioid addiction and other substance abuse treatment.

State Department $38.4 Billion

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In 2003, Congress passed the Foreign Relations Authorization Act, which set policy priorities and created spending authority for the State Department. That law has not been renewed, but Congress every year since has passed annual funding bills for the department, which Trump has announced he’ll nominate Sen. Marco Rubio (R-Florida) to run.

Housing assistance $37.2 Billion

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President Bill Clinton in 1998 signed the Quality Housing and Work Responsibility Act, which overhauled federal housing assistance policies, including voucher programs and other antipoverty assistance. The Department of Housing and Urban Development and other agencies continue using this law to implement federal housing programs.

Justice Department $35.3 Billion

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In 1994, Congress passed the landmark Violence Against Women Act and has renewed it multiple times since. In 2006, lawmakers packaged a VAWA renewal with authorizing legislation for the Justice Department. As with the State Department, Congress has not approved new authorizing legislation for the Justice Department since, but it has funded the agency — and even authorized hundreds of millions of dollars more for a new FBI headquarters — every year.

Education spending $29 Billion

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The 2015 Every Student Succeeds Act delegated power to state and local education officials to set primary and secondary education achievement standards. It gives billions of dollars in federal grant money to state and local education officials to fund schools and school districts. Those standards are still used by the Education Department, even though the legislation has not been reauthorized. Trump has suggested he’d like to eliminate the entire department.

NASA $24.9 Billion

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Stripping funding for NASA, which was last reauthorized in 2017, could spell doom for Musk’s commercial spaceflight firm, SpaceX. The company has contracts worth more than $4 billion — including for return trips to the moon and retiring the International Space Station — linked to programs approved in the 2017 law.

Health-care and student loan programs $22.5 Billion

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What’s known as the Affordable Care Act, or Obamacare, was actually passed in two separate bills in 2010. The Health Care and Education Reconciliation Act represents the second bill, which included some tax revisions and technical changes to the ACA. The law has not been reauthorized since, but the Department of Health and Human Services reported in March that more than 45 million people have health insurance coverage backed by the Affordable Care Act.

The law that made those final tweaks to the ACA also overhauled the Education Department’s student loan program. Where some schools relied on private lenders to issue federally backed loans, with this law, the government itself became the lender. That change has since enabled President Joe Biden to offer student loan debt relief, though many of his most ambitious policies have been blocked by the courts. Student loans are generally funded through mandatory spending — similar to social safety net programs such as Medicare and Social Security — and not subject to annual spending laws.

International security programs $13.5 Billion

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The 1985 International Security and Development Cooperation Act bundled together authorizations for a number of international security programs, including funding and regulations for arms sales to allies, economic aid for developing countries, airport security, anti-narcotics-trafficking policies, the Peace Corps and more. This Reagan-era law continues to be foundational to congressional funding and federal policy.

Head Start $12.3 Billion

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Head Start provides preschool education for children from low-income families. In the 2023 fiscal year, more than 800,000 children enrolled in Head Start programs, according to the National Head Start Association. The program also helped place more than 530,000 parents in jobs, school or job-training programs. It was last authorized in 2007.


By Jacob Bogage
Jacob Bogage covers economic policy in Congress for The Washington Post, where he's worked since 2015. He previously covered business and technology and wrote for the Sports section.

10 programs that could be on the ‘government efficiency’ chopping block


 

Vivek Ramaswamy, Elon Musk’s partner at President-elect Donald Trump’s planned spending panel, suggested defunding programs that Congress no longer authorizes. Here are some of those.
































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