Could A New Trump Administration Hand Elon Musk More Federal Power?

Billionaire Elon Musk holds power over some aspects of the federal government, however, this power could increase if Donald Trump wins the presidency and gives Musk the chair of a new government efficiency commission.

According to an investigation by the New York Times, Musk’s companies are deeply intertwined with various U.S. agencies, securing close to $3 billion across 100 contracts with 17 federal agencies. However, Musk’s operations are not without controversy. His businesses have been the subject of at least 20 recent federal investigations. 

For example, the Federal Aviation Administration, started a process to fine SpaceX $633,009 for disregarding license requirements for two Florida launches. In addition, the FAA has held up rocket launches for weeks over questions about harm the company has caused to wildlife in its Texas launch site.

Musk has been a growing critic of government bureaucracy, saying it’s delaying its plans for reaching Mars.

“Starship will make life multiplanetary, preserving life as know from extinction events on Earth, so long as it is not smothered by bureaucracy,” He wrote in a tweet.

“The Department of Government Efficiency is the only path to extending life beyond Earth,” he added.

He has been touting his idea of a new federal government efficiency commission recently on his social media platform X. According to the NYT, this idea originated in an interview with Trump, where Musk pushed the plan even when Trump disregarded the idea.

“I think it would be great to just have a government efficiency commission that takes a look at these things and just ensures that the taxpayer money — the taxpayers’ hard-earned money — is spent in a good way,” Musk said the third time. “And I’d be happy to help out on such a commission.”

“I’d love it,” Trump finally replied. “Well, you, you’re the greatest cutter.”

This new agency could give the power to regulate regulators who investigate their companies for failures, fraud or mismanagement.

Musk “has had very contentious interactions and entanglements with regulators,” Kathleen Clark, an ethics lawyer, told the NYT. “It is entirely reasonable to believe that what he would bring to this federal audit is his own set of biases and grudges and financial interests.”

Regulators could be penalized for taking action against one of Musk’s companies.

On the other hand, the idea of having Musk in a Trump’s advisory role couldn’t’ be that bad, according to Richard Briffault, a Columbia University professor of law who has served as chair of the New York City Conflicts of Interest Board. He said that Musk already has a big influence over Trump, and at least having him as a formal advisor would require some disclosure of the advice he was offering.

“Having this in public as opposed to having Elon Musk calling up the White House and saying, ‘Hey, this agency is coming down hard on me. Get them to back off,’ — is that even worse?” Briffault said. “It’s an open question.”

Musk has been active this electoral cycle, wielding his monetary power with politicians and the public to influence the election.

He already gave $75 million to America PAC, an organization dedicated to support Trump in battleground states. In addition, he promised to give $1 million to a randomly selected person who signs his online petition pledging to support the First and Second amendments.

Experts are still discussing whether this last attempt is legal, as the effort does not directly induce people to register, but it surely benefits Republicans more.