Vivek Ramaswamy’s DOGE Agency Targets Biden’s “Last-Minute Spending Sprees”
Former presidential candidate Vivek Ramaswamy, co-leading the newly formed Department of Government Efficiency (“DOGE”) under President-elect Trump, has vowed to scrutinize what he calls a “last-minute spending spree” by the Biden administration. Ramaswamy, alongside Elon Musk, will head this temporary agency, designed to aggressively cut government spending, with a planned self-deletion date of July 4, 2026. His specific criticisms target recent large-scale loans for electric vehicle (EV) manufacturers, highlighting potential financial risks and questioning the propriety of these late-term approvals. This aggressive approach signals a sharp shift in governmental priorities and promises significant changes to the nation’s fiscal landscape.
Key Takeaways: Ramaswamy’s DOGE Targets Wasteful Spending
- Aggressive Spending Review: DOGE will aggressively review recent federal spending, particularly concerning the Inflation Reduction Act and CHIPS Act, focusing on last-minute authorizations deemed potentially wasteful.
- Rivian Loan Scrutiny: A $6.6 billion loan to Rivian Automotive is specifically called into question, with Ramaswamy stating he doesn’t believe it will be repaid.
- Stellantis-Samsung SDI Loan Under Fire: A proposed $7.54 billion loan to a Stellantis and Samsung SDI joint venture for EV battery plant construction is also flagged for review.
- “Fiduciary Breach” Allegation: Ramaswamy alleges that some of Biden’s recent spending authorizations may constitute a “fiduciary breach,” comparing it to a company’s outgoing leadership approving last-minute expenditures.
- Limited Timeframe: DOGE operates under a strict 18-month timeframe and will prioritize quick wins to demonstrate effectiveness. Ramaswamy emphasizes a “logical, measured but aggressive” approach to spending cuts.
- Broader EV Criticism: The criticism extends beyond individual loans; incoming Senator Bernie Moreno, echoing Ramaswamy’s concerns, deemed the EV tax credits “catastrophically stupid.”
Targeting “Last-Minute” Spending: The Rivian and Stellantis Loans
Ramaswamy’s primary concern centers on what he perceives as a rush of federal spending in the final days of the Biden administration. He points to the $6.6 billion loan granted to Rivian Automotive as a prime example of potentially fiscally irresponsible decisions. “The $6.6 billion loan to Rivian… I don’t think it will be paid back,” he stated at the CNBC CFO Council Summit. This assertion highlights the agency’s intent to not only review but potentially reverse or renegotiate such agreements.
Beyond Rivian: A Broader Scrutiny of Recent Loans
The scrutiny doesn’t end with Rivian. The planned $7.54 billion loan to the Stellantis and Samsung SDI joint venture for the construction of EV battery plants is also on DOGE’s radar. Ramaswamy frames these last-minute approvals within a broader context, comparing the situation to a company’s outgoing CEO and CFO approving significant spending without proper board oversight. “The board would review it,” he declared, indicating his belief that these loans warrant similar, intense scrutiny.
DOGE’s Methodology: Prioritizing Early Wins and Executive Action
Ramaswamy acknowledges the limited 18-month lifespan of DOGE (dissolving on July 4, 2026). He stresses the importance of achieving early wins to build momentum and demonstrate the agency’s effectiveness. This approach, characterized as “logical, measured but aggressive,” suggests a targeted strategy aimed at achieving quick, visible results to justify its existence. While fully committed to reviewing potential budgetary waste, Ramaswamy has stated he currently intends to avoid “cherry-picking” specific targets until closer to taking office.
Executive Power and Undoing Biden’s Actions
A key aspect of DOGE’s power lies in its ability to potentially undo executive actions taken by the Biden administration. Ramaswamy explicitly stated that “anything happening in this eleventh hour, midnight-hour spending… any eleventh-hour spending as a response to the election merits special review, and if it was accomplished by executive power it can be undone by executive power.” This assertion signals a willingness to use executive authority to overturn decisions deemed fiscally unsound or politically motivated.
Wider Implications and the Future of Government Spending
Ramaswamy’s actions and statements carry significant implications for the future of government spending in the United States. His aggressive approach signals a potential shift away from large-scale government investment in specific industries, especially the EV sector. The intense scrutiny of loans meant to jumpstart sustainable energy technologies directly challenges the policy priorities of the previous administration.
The Political Landscape and the EV Debate
The criticism of government investment in electric vehicles goes beyond Ramaswamy. Incoming Ohio Senator Bernie Moreno’s characterization of EV tax credits as “catastrophically stupid” underscores a growing skepticism within the Republican party towards government support for this sector. This sentiment suggests that future policy debates about climate change, economic incentives and government subsidies may see a significant shift in rhetoric and approach. The comments of Mr. Moreno and Mr. Ramaswamy may reflect a broader concern about the viability and long-term success of government investments in new technologies.
The 18-Month Deadline and DOGE’s Uncertain Legacy
The self-imposed 18-month deadline adds an element of urgency and perhaps risk to DOGE’s operations. The agency will need to demonstrate tangible results quickly to justify its existence and leave a lasting impact on government spending habits before its dissolution. Whether it can achieve meaningful, sustainable change within that timeframe remains to be seen, adding another layer of intrigue to this ambitious endeavor.
The creation of DOGE and its aggressive stance on recent spending decisions promise a period of intense scrutiny and potential upheaval in the American government’s financial dealings. Whether Ramaswamy’s approach will prove successful in achieving significant cost savings and reforming government spending remains an open question, but its impact on the nation’s fiscal landscape is sure to be highly significant.
