Musk and Ramaswamy will head Department of Government Efficiency, Fox News host to head Pentagon

President-elect Donald Trump announced Tuesday that Elon Musk and Vivek Ramaswamy will lead a new “Department of Government Efficiency” in his second administration.

“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 said in a statement.

The announcement of Ramaswamy and particularly Musk, who leads companies with existing, lucrative government contracts, raises immediate questions about potential conflicts of interest. It is not immediately clear how the department – which Trump said would “provide advice and guidance from outside of Government” – would operate, and whether a Congress even fully controlled by Republicans would have the appetite to approve such a massive overhaul of government spending and operations.

Trump had proposed the creation of a government efficiency commission as part of a slate of new economic plans that he unveiled in early September. At the time, he said Musk had agreed to lead it if he were to secure a return to the White House.

Trump’s statement Tuesday night quoted Musk as saying that “this will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!”

President-elect Donald Trump has chosen Pete Hegseth, a Fox News host and Army veteran, to serve as his secretary of defense.

Hegseth’s selection was a surprise, as he was not among those considered as a likely pick by members of Trump’s team, sources familiar with the discussions told CNN.

Sources said that it came down to Trump having a longstanding relationship with Hegseth, noting that the president-elect always thought he was “smart” and was impressed by his career. Trump also likes that Hegseth is a military veteran and the account of his service in his book, the sources said.

While Hegseth’s name had not been on the initial shortlist, Trump was struggling to land on a choice for the job, and he liked Hegseth from Trump’s last term when he briefly considered him for leading the Department of Veterans Affairs before being warned that he may not get confirmed by the Senate, one source familiar said.

“Trump also thinks he has the look,” one source said.

Many people in Trump’s orbit were caught by surprise by his decision, the sources said. Hegseth didn’t emerge as a top candidate for defense secretary until Monday, a Trump adviser said, with the Fox News host interviewing for the role over the last 24 hours.

Trump’s choice of Hegseth is a notable departure from his picks for defense secretary in his first term, when he selected a four-star general, James Mattis, and an Army secretary, Mark Esper, to lead the Pentagon. But Trump ultimately soured on both of those secretaries and was sharply critical of them after Mattis resigned and Esper was fired.

One defense official told CNN, “Everyone is simply shocked.” Another Pentagon official who was following the potential picks for defense secretary learned about the possibility of Hegseth only in the hours before the nomination and, like others who spoke on condition of anonymity with CNN, didn’t know how to react.