Elon Musk warned on Tuesday (Feb 11) that the United States (US) will go "bankrupt" without drastic budget cuts. The billionaire is leading the charge to cut federal spending under the Donald Trump administration. Speaking with the US president at the White House in the Oval Office, the chief of DOGE (Department of Government Efficiency) said the reduction of government expenses is not an option but rather a necessity.

"It's not optional. It's essential," Trump said.

Musk has been assigned to oversee the cost-cutting efforts via his newly formed department under Trump's second term in the White House. Musk slammed the federal bureaucracy and called it an "unelected, unconstitutional branch of government". He accused that the branch holds more power than elected representatives in the US administration.

This came as Trump signed an executive order in the Oval Office making it mandatory for federal agencies to follow DOGE's directives. The move is intended to reduce the size of the federal workforce, something Musk has long advocated for.

Under the new order by Trump, the federal agencies will now be permitted to hire only one employee for every four that leave the branch. And to hire that single employee as well, the top executives of the agency will have to consult DOGE first.