Billionaire Tesla CEO Elon Musk was a major donor to Donald Trump's 2024 campaign and, now that Trump is president-elect, he has picked Musk and MAGA businessman Vivek Ramaswamy to head a proposed new agency called the Department of Government Efficiency. Its goals, according to Trump and his transition team, include finding ways to cut federal spending and reducing the United States' federal deficit.
In an article Wednesday, Reuters reporters Andy Sullivan and Ally J. Levine examine possible areas in which Musk and Ramaswamy could recommend "deep cuts." And those cuts could be the most painful in red states where Trump enjoyed the strongest support.
"Roughly two out of every three dollars is spent on pension, health care and other programs that provide tangible benefits to U.S. residents, meaning that any cutbacks could cause an outcry," Sullivan and Levine wrote.
"Consider the Affordable Care Act, the healthcare expansion that was the signature accomplishment of Democratic President Barack Obama. Republicans vowed to roll back 'Obamacare' when Trump was first elected in 2016, but they failed to do so. The program has dramatically grown since then."
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Like Musk and Ramaswamy, Russell Vought — Trump's choice for White House budget director and a major architect of Project 2025 — has, according to Sullivan and Levine, "called for tightening veterans programs." And this, the Reuters reporters note, "could have an outsize effect in Trump country."
A chart published with the article shows that 63 percent of the United States' "total spending on veterans' benefits" is in states that Trump won in the 2024 election — while only 37 percent is in states that went to Vice President Kamala Harris.
"Trump has ruled out benefit cuts to the two biggest safety-net programs, Social Security and Medicare," Sullivan and Levine report. "The two programs, which provide pension and health benefits to seniors, play a bigger role in the states that backed his presidential bid. Other benefit programs aimed at low-income people may be easier for a Republican president like Trump to tackle."
The journalists continue, "Both the Medicaid health plan for the poor and the Supplemental Nutritional Assistance Program, which helps pay for groceries, tend to play a bigger role in Democratic-leaning states. But cutbacks in these areas also would hit hard in poor, conservative states like Louisiana."
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Read Reuters' full report at this link.