Tesla CEO Elon Musk , right, co-chair of the newly announced Department of Government Efficiency, carries his son on his shoulders at the U.S. Capitol following a meeting with businessman Vivek Ramaswamy, left, the other co-chair of the Department of Government Efficiency, Rep. Kat Cammack, center, and other members of Congress on Dec. 5, 2024 in Washington, D.C. Musk and Ramaswamy met with lawmakers about DOGE, a planned presidential advisory commission with the goal of cutting government spending and increasing efficiency in the federal workforce. (Photo by Anna Moneymaker/Getty Images)

WASHINGTON — President-elect Donald Trump enlisted Washington outsiders Elon Musk and Vivek Ramaswamy to tell members of Congress how they should run things.

But Musk and Ramaswamy as they build their Department of Government Efficiency, or DOGE, don’t actually hold any elected or bureaucratic positions in the federal government — giving two hard-driving businessmen far less authority than they’re used to having in the private sector.

The duo will need to garner support from hundreds of members of Congress for any of their suggested spending cuts to become law, even with Republicans in control of the White House and both chambers of Congress. That is an uphill slog many have failed at before.

The mix of personalities, differing committee jurisdictions and separation of powers laid out in the Constitution could create tension, to say the least, when powerful Republican lawmakers disagree with or outright ignore Musk and Ramaswamy. Several Republicans indicated in interviews with States Newsroom that they intend to listen to the DOGE duo but will not back down from their roles as elected representatives of the people.

Maine Republican Sen. Susan Collins, the incoming chairwoman of the Appropriations Committee, said during a brief interview she believes the two men can offer lawmakers “valuable insights” and advice, but cautioned the power of the purse rests with Congress.

“It doesn’t mean that we will take all of these issues, but it’s always helpful to have additional oversight,” Collins said. “And so I look forward to seeing what they come up with.”

Rhode Island Democratic Sen. Sheldon Whitehouse, chairman of the Budget Committee, summed up Democrats’ views on the Musk-Ramaswamy entity in a social media post.

“What does Doggie (“DOGE”) do? Maybe think of it this way: you have to watch a couple of precocious toddlers for the day,” Whitehouse wrote. “They need activities, but you don’t want them near stoves, cars, electrical equipment, or anything operational.”

Meet the appropriators

In Congress, the Appropriations Committee is tasked with drafting the dozen annual government funding bills that total about $1.7 trillion. The legislation funds the vast majority of federal departments and agencies, including Agriculture, Defense, Energy, Interior, Justice, State and Transportation.

The other two-thirds of federal spending covers interest payments on the debt, Social Security, Medicare and Medicaid.

Idaho GOP Rep. Mike Simpson, chairman of the Interior-Environment Subcommittee, told States Newsroom he expects there will be “conflict” between Congress and the Musk-Ramaswamy group, in part, because they don’t have the years, or even decades, of experience learning the ins and outs of federal spending that appropriators hold.

“I noticed that they’ve said that they want to defund public television. I think they might get some kickback on that,” Simpson said. “To me, that’s a policy decision, not an efficiency issue.”

When GOP lawmakers met with Musk and Ramaswamy behind closed doors in early December to talk about government spending, Simpson said, the two pressed the idea that Trump should be able to cancel spending he deems “waste.”

But what Trump might consider unnecessary could be an essential program to a GOP lawmaker or a rural community, Simpson said.

There’s also a federal law called the Impoundment Control Act that prevents presidents from halting funding that Congress has approved and a Supreme Court ruling that bars the president from using line-item vetoes.

Arkansas Republican Rep. Steve Womack, chairman of the Transportation-HUD Subcommittee, told States Newsroom he expects there will need to be some “deconfliction” once Musk and Ramaswamy release their proposals.

“There will be a lot of different, competing interests and ideas, and we’ll just have to see what those are,” Womack said. “It’s a little premature, but, yeah, I’m sure there’ll be some deconfliction, there’ll be some negotiating. Some of this will be leveraged with other significant emotional events up here like debt ceiling, or funding the government.”

Floor votes could also be a hurdle for the various DOGE groups if they don’t gain Democratic support. Republicans will hold just 220 seats in the House at the start of the 119th Congress before a few of their members depart for other opportunities. That razor-thin margin means proposals from Musk and Ramaswamy will need support from the full spectrum of GOP lawmakers to pass.

Then they’ll need to gain the support of nearly all 53 GOP senators if they expect any spending cuts proposals to become law through the complex budget reconciliation process. 

Proving their value

One of the many challenges for Musk and Ramaswamy will be showcasing how their efforts differ from those of the White House budget office.

Bipartisan Policy Center Managing Director for Economic Policy Rachel Snyderman said in an interview with States Newsroom she’ll be watching closely to see whether Musk and Ramaswamy integrate their proposals with the president’s budget request, which the White House will likely release sometime in the spring.

That massive document tells Congress how the president wants lawmakers to change tax and spending policy. Congress, however, rarely follows it to the letter and often ignores large swaths of it.

If Musk and Ramaswamy’s proposals go a completely different route, it could create confusion about what exactly it is the Trump administration wants lawmakers to do and could bog down any support they might get on Capitol Hill.

But simply mirroring what’s already in the budget request would lead to a question about whether or not Musk and Ramaswamy serve any real purpose.

“If you go back and look at the budgets from Trump’s first term … they averaged about $1.6 trillion in cuts over a 10-year budget window,” Snyderman said. “And at least for the first two years, those were presented to a GOP trifecta as well and not implemented as policy.”

Snyderman said Musk and Ramaswamy will likely want to do something other than reinvent the wheel by simply republishing the hundreds of government efficiency and spending cuts proposed over the years by the Congressional Budget Office, the Government Accountability Office and inspectors general.

Those groups have given lawmakers and presidents plenty of recommendations to reduce waste, fraud and abuse. But government officials don’t always act on their suggestions.

“There have been so many resources over the years doing just this — proposing smart, sensible, but tough pills to swallow when it comes to government efficiency,” Snyderman said. “What I think it’s going to really boil down to is what’s politically palatable through legislative or executive action. And where as a nation we’re willing to make those trade-offs in service to improve our fiscal outlook and trying to get a handle on the national debt.”

One of the more recent examples, she said, was the nonpartisan Congressional Budget Office’s release of a detailed, 116-page report on ways that lawmakers could reduce the deficit in mid-December.

Impoundment law

If Republicans disagree with Musk and Ramaswamy’s suggestions or only put a few of them in place, it could lead Trump to try to cut spending unilaterally.

Such a decision would create considerable issues for Republicans, since it would violate the Impoundment Control Act and potentially set a new precedent that future Democratic presidents could use to ignore Congress on conservative spending priorities.

That Impoundment Control Act, enacted after then-President Richard Nixon refused to spend billions approved by lawmakers, essentially says a president must distribute money Congress has approved for various federal departments and agencies. It also gives the president a couple of paths to ask lawmakers to cut spending they’ve already approved, but they must agree.

Russ Vought, who has been nominated as director of the Office of Management and Budget, is likely to press the belief that presidents can unilaterally cancel spending, often called “impoundment.”

The Center for Renewing America, the think tank Vought established following his stint as OMB director during the first Trump administration, has repeatedly argued the Impoundment Control Act is unconstitutional and published a detailed history of how presidents canceled spending before the 1974 law took effect.

The Trump administration ignoring the ICA would likely lead to legal challenges and eventually a Supreme Court ruling.

Checks and balances

North Dakota Sen. John Hoeven, the top Republican on the Agriculture Appropriations Subcommittee, told States Newsroom some of the government efficiency proposals that Musk and Ramaswamy pursue will be able to move through executive action, but said any spending cuts must go through Congress.

“This is a country of 320 million people that all have a different point of view about all these different issues, which is why you’ve got to have the kind of process we have, the checks and balances and all that — to figure out where is there enough support to implement these recommendations,” Hoeven said. “That’s how the system works because you’re talking about something that’s very far-reaching and it’s going to affect people throughout the country.”

Arkansas Sen. John Boozman, the top Republican on the Military Construction-VA spending subcommittee, said he expects there will be a lot of communication between lawmakers, Musk and Ramaswamy about constitutional authority to try to avoid public disagreements, though he didn’t rule that out.

“I think as long as the communication lines are open, we should hopefully end most of that,” he said.

Incoming Senate Majority Leader John Thune, R-S.D., said during a press conference he expects it will take some time for Musk and Ramaswamy to “scrutinize government operations and figure out where we can achieve savings and efficiencies” before Congress reviews those recommendations and puts them in a bill.

Thune said he would like to see some of those move through the budget reconciliation process that Republicans are planning to use to get around the Senate’s 60-vote legislative filibuster; essentially allowing the GOP to move sweeping policy changes without Democratic input.  

More cooks in Congress

Republicans have talked about cutting government spending for decades, but haven’t used unified control of government to make significant structural reforms in quite some time.

Newly formed groups in the House and Senate will likely provide some support for Musk and Ramaswamy’s proposals, but they may disagree with them as well, or come up with completely separate ideas.

The combination of Musk and Ramaswamy’s DOGE, a soon-to-be-formed House Oversight subcommittee on government efficiency chaired by Georgia Republican Rep. Marjorie Taylor Greene and the government efficiency caucus could become a too-many-cooks scenario.

The Delivering Outstanding Government Efficiency Caucus already holds several Republican lawmakers among its ranks, but it doesn’t have the jurisdiction that the Appropriations Committee holds. Neither does the Oversight subcommittee.

Iowa Republican Sen. Joni Ernst established the caucus alongside Florida Rep. Aaron Bean and Texas Rep. Pete Sessions

North Carolina’s Ted Budd, Texans John Cornyn and Ted Cruz, Oklahoma’s James Lankford, Utah’s Mike Lee, Kansan Roger Marshall, Ohio’s Bernie Moreno, Missouri’s Eric Schmitt, Florida’s Rick Scott and Alaska’s Dan Sullivan have all joined the group on the Senate side.

House members include Rick Allen of Georgia, Jim Baird of Indiana, Andy Barr of Kentucky, Stephanie Bice of Oklahoma, Josh Brecheen of Oklahoma, Ben Cline of Virginia, Jeff Duncan of South Carolina, Ron Estes of Kansas, Pat Fallon of Texas, Randy Feenstra of Iowa, Scott Franklin of Florida, Carlos Giménez of Florida, Glenn Grothman of Wisconsin, Diana Harshbarger of Tennessee, Doug LaMalfa of California, Nick Langworthy of New York, Debbie Lesko of Arizona, Barry Loudermilk of Georgia, Anna Paulina Luna of Florida, Celeste Maloy of Utah, Tom McClintock of California, Cory Mills of Florida, Dan Newhouse of Washington, Ralph Norman of South Carolina, Gary Palmer of Alabama, David Rouzer of North Carolina, Mike Rulli of Ohio, Maria Elvira Salazar of Florida, Jeff Van Drew of New Jersey, Beth Van Duyne of Texas, Derrick Van Orden of Wisconsin, Tim Walberg of Michigan, Randy Weber of Texas, Daniel Webster of Florida, Roger Williams of Texas and Joe Wilson of South Carolina. 

Dogecoin. In the week after the 2024 presidential election, the coin’s value jumped 250%. (Image: Jakub Porzycki/NurPhoto via Getty Images)

Rockets aren’t the only thing Elon Musk is sending into the stratosphere.

After a three-year plummet, dogecoin is blasting off again, jumping 250% since the election of Donald Trump – part of a broader wave of optimism in the industry, due to Trump’s courting of crypto advocates during his campaign.

Trump’s informal appointment of Musk to what he calls the Department of Government Efficiency – D.O.G.E for short – also helped pump the dog-themed meme coin.

This isn’t the first time Musk, who styles himself as “the Dogefather,” has fueled interest in dogecoin.

In May 2021, its price shot up in anticipation of Musk’s guest appearance on “Saturday Night Live.” During one skit, Musk played a financial analyst in conversation with a Weekend Update host, who repeatedly asked him, “What is dogecoin?” After some obfuscation, Musk’s character finally admitted that it was a hustle. The price of the coin went into a freefall. Just over a year later, it had shed over 90% of its peak value.

The losses hit small investors hard. In 2022, one of them filed a class action lawsuit against Musk for market manipulation and insider trading, though the case was dismissed in August 2024.

Why has dogecoin – a meme coin that was never meant to be taken seriously as an investment – seen such extreme swings in value?

We’re all in this together

Dogecoin was launched in 2013 to spoof bitcoin and a slew of other cryptocurrencies that were claiming to disrupt the traditional world of finance. Two strangers from across the globe met online, copied the code of an existing coin, and branded it with the already popular Doge internet meme – a picture of a Shiba Inu dog surrounded by fragments of broken English: “wow much coin.”

Although their main goal was to make the coin pointless and undesirable, it became one of the most popular and enduring cryptocurrencies on the market.

Following dogecoin’s previous surge in 2021, I studied how its fervent network of influencers and everyday investors worked together to draw tremendous attention – and capital – to the joke currency.

Elon Musk’s 2021 appearance on ‘Saturday Night Live’ caused the price of dogecoin to tumble.

To understand the appeal of these absurd investments, you have to look at the time and energy that users invest into these networks and the rewards, both financial and social, they get in return.

Meme coins are collaborative enterprises. Members of these online communities have an economic incentive to become outspoken boosters: The more the value of dogecoin rises, the more their investments grow. But they also receive social validation from other meme coin investors when they pump up the coin.

In other words, behind every meme coin is a collective of strangers on a communal mission to make more money.

Dogecoin and its imitators have been described by their leadership as crypto movements, shared journeys and community-owned projects. Beyond branding the assets with culturally resonant images, whether it’s a Shiba Inu dog or Pepe the Frog, successful crypto ventures are characterized by complex webs of trust. Trust in the technology. Trust in its potential for future appreciation. And trust that those holding power in the networks won’t exploit the rest.

This loyalty is woven among a global network of users who collaborate around the clock to promote their coin and demonstrate their unwavering commitment to its success.

In times of price appreciation, the collective buzzes with elation.

During price dips, community members mutually reinforce their comrades’ – and their own – beliefs that this is just a bump in the road and that their collective efforts will eventually lead to a handsome payoff. Even in the coldest of crypto winters, this ritualistic behavior helps these speculative communities endure. Community serves as a substitute for financial loss.

The investment strategies in these communities – and the conviction in their payoff – involve repeating and reposting what others have said, like any traditional internet meme.

Trolling traditional valuation

The real value of meme coins cannot be understood in the same way as traditional assets, such as stocks and physical commodities. These types of assets have fundamentals, such as a company’s financial statements, or public demand for basic goods, from coffee to oil.

Conversely, the fundamentals of meme coins are reflected in their network activity, such as daily active users, and less concrete metrics, such as social sentiment and mindshare – how much public awareness a coin has generated compared with its rivals.

Of course, the valuations of traditional assets are also affected by these social factors. The difference is that meme coins offer little by way of productive activity. They add nothing to the economy. Occasionally, their leadership will build financial services around them, but these are generally added as afterthoughts, especially as a way to drum up more speculative excitement.

Meme coins troll the traditional conventions of valuation and mock the edicts and dogmas of mainstream investors.

And that’s exactly the point.

Participation in meme coin communities – or any crypto community, for that matter – entails embracing an alternative economic experience. They are speculative sandboxes for playing outside of the conventional rules of investment.

Who let the Doge out?

Musk is the quintessential meme coin influencer.

As the richest man in the world, he’s viewed by many as a paragon of savvy investing. His massive following extends far beyond dogecoin’s social network. And his promotional efforts are playful – so playful that the judge in his class-action case dismissed his dogecoin tweets as mere “puffery” and that “no reasonable investor could rely upon them.”

Dogecoin previously reached the peak of its memetic momentum when Musk appeared on “Saturday Night Live.” Now, instead of sitting at the Weekend Update news desk cracking jokes, he’s sitting in Trump’s office advising the president-elect. In other words, dogecoin’s memetic resonance has ascended from pop culture to politics, helping it capture a bigger slice of the public’s mindshare.

While dogecoin has specifically benefited from Musk’s proximity to Trump, the broader crypto market is leaping with optimism for a crypto-friendly administration. Speaking at the Bitcoin 2024 conference in July, the GOP candidate ensured he’d make the United States “the crypto capital of the planet.” After pouring $131 million into this election cycle, the crypto industry can now claim 274 pro-crypto members of the U.S. House of Representatives and 20 pro-crypto U.S. senators.

Between Musk buddying up with Trump and a shifting regulatory environment, the dog can once again run free.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

President Joe Biden meets with President-elect Donald Trump in the Oval Office at the White House on Nov. 13, 2024 in Washington, D.C. Biden continued the tradition of inviting the newly elected president to meet at the White House after Trump won the presidential election on Nov. 5. (Photo by Alex Wong/Getty Images)

WASHINGTON — President Joe Biden welcomed President-elect Donald Trump to the White House Wednesday, a tradition between incoming and outgoing American leaders, though the courtesy was not extended to Biden after he won the 2020 election.

The pair met behind closed doors in the Oval Office for most of the meeting that lasted just under two hours. Biden’s Chief of Staff Jeff Zients and Trump’s incoming counterpart, Susie Wiles, joined the president and president-elect.

Biden had been seeking reelection against Trump until late July, when Biden dropped his bid. Vice President Kamala Harris lost the race to Trump after just over 100 days of campaigning as the Democratic nominee.

Harris did not attend the meeting, according to the White House.

In brief remarks before cameras, Biden congratulated his predecessor who will again take the oath of office in January as the nation’s 47th president.

“Well, Mr. President-elect, former president, Donald, congratulations,” Biden said, as Trump interjected with “Thank you very much, Joe.”

“And looking forward to having a, like I said, smooth transition, do everything we can to make sure you’re accommodated, what you need,” Biden continued. “And we’re gonna get a chance to talk about some of that today.”

Trump again thanked Biden and responded “And politics is tough. And it’s, many cases, not a very nice world, but it is a nice world today. And I appreciate it very much, a transition that’s so smooth, it’ll be as smooth as it can get. I very much appreciate that, Joe,” Trump said.

A ‘substantive’ conversation

First lady Jill Biden joined the president in greeting Trump and presented a handwritten letter of congratulations and offer for transition assistance addressed to incoming first lady Melania Trump, according to the White House.

The meeting got underway just after 11 a.m. Eastern, and the press was ushered out after the brief welcoming remarks and photo opportunity. Biden and Trump finished their private discussion at roughly 1 p.m. Eastern.

Neither addressed a large gathering of reporters and photographers outside afterward.

White House press secretary Karine Jean-Pierre said Biden and Trump had “a very good back and forth.”

“(Biden) wants you all to know that the president-elect was gracious, came with a detailed set of questions, it was, again, substantive” Jean-Pierre said at the daily press briefing.

Jean-Pierre declined to provide the meeting’s specifics but said “the length of the meeting tells you they had an in-depth conversation on an array of issues.”

Trump did not invite Biden to the White House following his 2020 presidential election win, nor did he attend his successor’s inauguration that occurred just 14 days after a mob of his supporters violently tried to stop Congress’ certification of Biden’s victory.

The president-elect’s transition team did not immediately respond to States Newsroom’s inquiries on why Trump did not invite Biden to the White House in 2020.

Musk, Ramaswamy to head new initiative

The president-elect continues to announce numerous Cabinet and staff positions, stacking his administration with staunch loyalists.

Late Tuesday, Trump announced he named billionaire Elon Musk and former presidential hopeful Vivek Ramaswamy to what he describes as a new “Department of Government Efficiency,” or shortened to “DOGE,” also the name for a popular internet dog meme and cryptocurrency in the last decade.

Trump said the new entity would function outside of government.

“To drive this kind of drastic change, the Department of Government Efficiency will provide advice and guidance from outside of Government, and will partner with the White House and Office of Management & Budget to drive large scale structural reform, and create an entrepreneurial approach to Government never seen before,” Trump said in a statement.

Musk was also present, sitting in the front row during Trump’s visit with House Republicans earlier Wednesday.

Also on Tuesday night, Trump announced Fox News host Pete Hegseth as his pick for secretary of Defense, a position that requires managing hundreds of billions in Pentagon spending.

Trump endorses Johnson

Trump joined House Republicans Wednesday morning before his meeting with Biden at the White House. At a hotel near the U.S. Capitol, Trump received a standing ovation from GOP lawmakers, according to congressional pool reports.

House Speaker Mike Johnson, Republican of Louisiana, introduced Trump, calling him a “singular figure in American history,” according to congressional pool reports. 

House Republicans are also planning to have their leadership elections late Wednesday, but it’s expected that Johnson will be selected to continue the role, although an official vote for the speaker’s gavel will take place in January.

At the meeting, Trump threw his support behind Johnson to continue in his role as House speaker, according to NBC News.

During the meeting, Trump touted GOP wins in keeping control of the lower chamber. Although Republicans are on track to hold their slim majority, The Associated Press, the news organization that States Newsroom relies upon for race calls based on decades of experience, has not called the House for Republicans though it might happen soon.

As of Wednesday afternoon, Republicans have 216 seats, just two short of the 218 seats needed for control. Democrats have 207 seats, with 12 races still to be called.

Trump also joked about wanting to run for another term in office — something that the U.S. Constitution prohibits, as presidents are limited to only serving two terms. 

“I suspect I won’t be running again unless you do something,” Trump told members, who laughed, according to pool reports.

Democrats ready to push back

Chair of the House Democratic Caucus Pete Aguilar said Wednesday that Democrats are ready to work with the incoming administration in a bipartisan manner, but are also prepared to push back on efforts to further restrict reproductive rights, such as a national abortion ban, and any changes to the Affordable Care Act.

“We’re clear-eyed about the challenge ahead of us,” Aguilar, Democrat of California, said.

He acknowledged the failure of Democrats to regain control of the House.

“I think it’s appropriate for the current caucus to reflect on what happened, to listen to listen to our constituents, to listen to American people, to listen to our members, to gather data, and then to chart a path forward,” he said.

Aguilar added that Democrats plan to look at voter data to understand the issues important to their voting bloc.

“I don’t want to have broad generalizations of any group or geographic or otherwise, without that data in front of me,” he said. “I think it’s very clear to us that for people with two jobs, the economy is, gas and groceries and rent. We’ll need to speak to those issues if we’re going to be the party that speaks to our community members and people working, everyday Americans, then we need to speak to those issues, and … that’s on us to communicate.”