As a result of these changes, Musk's extensive contracts with companies like SpaceX are expected to grow, prompting worries about potential conflicts of interest.

Elon Musk is spearheading a major initiative to cut funding for U.S. government agencies, with proposals that could eliminate some departments entirely, potentially benefiting private companies, including his own.

These initiatives are being executed by an unofficial group known as the 'Department of Government Efficiency' (Doge), which is targeting various agencies such as the Department of Education and the General Services Administration.

The Trump administration has bolstered Musk's efforts by issuing an executive order mandating that government agencies collaborate with Doge on staffing and budget reductions, which raises concerns about diminished oversight.

Musk justifies these cuts as a way to eradicate waste while promoting greater dependence on private companies for government services, especially in the technology and defense sectors.

Musk's designation as a 'special government employee' allows him to circumvent standard financial disclosure requirements, further complicating ethical considerations regarding his dual roles.

Ethics watchdogs and advocacy groups have expressed concern over Musk's influence on government functions, highlighting risks of corruption and a lack of transparency.

Critics have drawn parallels between Musk's approach to government cuts and his management style following his acquisition of Twitter, as well as the way SpaceX integrated into NASA's operations.

Silicon Valley firms, including Palantir and Coinbase, have voiced support for Doge's initiatives, viewing them as opportunities for increased contracts and profitability.

Legal challenges have emerged against Doge for allegedly breaching federal transparency laws, while Trump has dismissed various officials who could have provided oversight of Musk's actions.