WASHINGTON, D.C. — President-elect Donald Trump’s recent announcement that tech mogul Elon Musk and biotech entrepreneur Vivek Ramaswamy will lead a newly created advisory Department of Government Efficiency has raised alarm among government ethics experts who fear potential conflicts of interest due to the duo’s substantial financial stakes.
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Ethics specialists are particularly concerned by the designation of Musk and Ramaswamy’s roles as “outside of government,” a classification that could potentially exempt them from typical financial disclosure rules, despite their work’s likely impact on federal operations.
“Together, these two wonderful Americans will pave the way for my Administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies,” Trump stated. Musk, CEO of Tesla, X, and SpaceX, and Ramaswamy, founder of biotech firm Roivant Sciences, were both ardent supporters of Trump’s re-election campaign.
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As external advisers, Musk and Ramaswamy might not be bound by federal disclosure requirements that mandate officials report financial interests to the Office of Government Ethics. While some external advisers can be required to disclose interests under the Federal Advisory Committee Act, including if classified as “Special Government Employees,” experts say it remains unclear if this department will be subject to such rules.
In response to transparency concerns, Musk promised that all actions of the Department of Government Efficiency would be shared publicly, stating on X, “All actions of the Department of Government Efficiency will be posted online for maximum transparency.” Trump transition spokesperson Brian Hughes also assured compliance with all legal guidelines related to conflicts of interest.
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Kedric Payne, senior director of ethics at the Campaign Legal Center, expressed concerns over the potential absence of financial disclosure obligations. “It could be simply an attempt to stop regulations on their business interests at the expense of government workers and the public,” Payne noted, highlighting how reducing regulations could directly benefit Musk and Ramaswamy’s companies.
Payne added that cutting government functions could open more contracts to private businesses like those owned by Musk and Ramaswamy, who could be in a unique position to influence decisions. “If you eliminate the government from doing certain tasks, then those tasks can go to government contracts for consultants,” he explained.
Describing their roles as “highly unusual,” Payne noted that while it is common to have external experts advise the government, it is rare for entrepreneurs with substantial business interests to wield such influence over regulatory changes potentially affecting their own industries.
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Noah Bookbinder, president of Citizens for Responsibility and Ethics in Washington, echoed Payne’s concerns, emphasizing that more information is needed to fully assess the potential for conflicts of interest. “If Musk and Ramaswamy are in a position where they can influence governmental decisions…then there could be a danger of illegal conflicts of interest,” he said, adding that other legal concerns might arise depending on the department’s operations.
Bookbinder also raised the possibility that government officials might feel pressured to align with Musk’s interests due to his sway within the Trump administration. According to sources, Musk has recently influenced Trump’s staffing choices and played a significant role in shaping the future administration’s direction.
As Trump’s team develops the new Department of Government Efficiency, calls for transparency and adherence to ethics laws remain prominent among experts.
