President Donald Trump signed an executive order on Wednesday to “further reign in government waste and officially implement” the Department of Government Efficiency’s “cost efficiency initiative.”

The order requires each agency head to work directly with the DOGE team to identify where government contracts and grants can be terminated or modified. The new process, which “shall commence immediately,” aims to reduce federal government spending or “reallocate spending to promote efficiency and advance the policies” of the Trump administration.

Trump signed the order after holding the first cabinet meeting of his new administration, during which his senior adviser, Elon Musk, who influences DOGE’s actions, spoke at length about the department’s goals.

“The overall goal here with the DOGE team is to address the enormous deficit,” Musk told a room full of Trump cabinet members on Wednesday. “We simply cannot sustain as a country two-trillion-dollar deficits. Just the interest on the debt now exceeds the Defense Department spending.”

The SpaceX and Tesla CEO later told the president and his cabinet that DOGE is working as “a support function for the president and for the agencies and departments to help achieve those savings to effectively find 15% reduction in fraud and waste.” Trump’s executive order seeks to increase DOGE’s ability to slash federal spending. The order requires “Each Agency Head, in consultation with the agency’s DOGE Team Lead, [to] conduct a comprehensive review of each agency’s contracting policies, procedures, and personnel.” 

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