Elon Musk's DOGE Initiative Sparks Business Uncertainty Over Federal Cuts

Trump's cost-cutting Department of Government Efficiency, led by Musk, faces legal challenges and mixed reactions from businesses and lawmakers.

The Department of Government Efficiency (DOGE), led by Elon Musk, is implementing sweeping federal budget cuts, creating uncertainty for businesses reliant on government contracts.
Several companies, including defense contractors and pharmaceutical firms, have warned investors about potential risks from DOGE's actions in their SEC filings and earnings reports.
Congress has raised constitutional concerns, with lawmakers emphasizing that spending cuts should be approved through legislative processes rather than executive directives.
While some technology companies view DOGE's efficiency goals as an opportunity, other sectors, such as healthcare and real estate, are bracing for potential negative impacts.
Legal challenges and internal government pushback have slowed the implementation of certain DOGE initiatives, with Musk instructed to limit his role to making recommendations.