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On Wednesday, Donald Trump signed a new executive order aimed at enhancing the authority of Elon Musk’s initiative to streamline government costs, known as the “Department of Government Efficiency” or Doge.

This executive order promotes a significant evolution in federal expenditures related to contracts, grants, and loans. It mandates that federal agencies establish a centralized system to record and substantiate their payments, with the intention of boosting transparency, as these records may be made publicly accessible and overseen by Musk’s team.

“This order initiates a transformation in how the federal government manages spending on contracts, grants, and loans, ensuring that expenditures are transparent and that government staff are accountable to the American people,” the order states.

Under this directive, each Doge team leader within the agencies is required to provide monthly updates regarding contracting activities, detailing payment and travel justifications. However, law enforcement, military operations, immigration bodies, and national security-related work are exempt from these new stipulations.

This initiative is part of a broader strategy by the White House to significantly reduce the federal workforce, which the Trump administration has labeled as a barrier to achieving its extensive goals. On the same day, the Office of Management and Budget along with the Office of Personnel Management issued a memo urging agency heads to formulate plans for substantial job cuts by March 13, as reported by the Associated Press.

“We’re reducing the size of government. It’s necessary,” Trump stated during his first cabinet meeting of his second term. “We have a bloated structure. There are many individuals who aren’t fulfilling their roles.”

The administration has already begun the process of releasing thousands of probationary workers who do not yet have civil service protections. Trump also indicated that the Environmental Protection Agency intends to reduce its workforce by up to 65%. Employees within the Labor Department and the Social Security Administration are reportedly preparing for significant layoffs as well.

During the cabinet meeting, Musk acknowledged some errors made by Doge in its swift approach to downsizing, which occasionally included entirely dissolving certain agencies. He admitted that Doge was not without flaws, mentioning an instance in which it “accidentally” terminated an Ebola-prevention program, a decision he asserted had been immediately reinstated without any disruption.

An official from the U.S. Agency for International Development (USAID), a primary focus of Doge, countered Musk’s assertion by telling the Associated Press that funding for Ebola response efforts had not been disbursed since Trump halted foreign aid last month.

As part of the new executive order associated with Doge, the General Services Administration is required to submit a plan within 60 days for the disposal of any government properties identified as unnecessary by the agency.

Additionally, this directive enforces a 30-day halt on the use of all government-issued credit cards, effective immediately, except for essential services such as disaster relief or in cases where exceptions are granted by a supervisor. Federally funded travel for conferences and other non-essential reasons will now face new reporting obligations.

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