Federal contractors face “massive cuts” in their fees once President-elect Donald Trump’s government efficiency push gets underway, according to entrepreneur Vivek Ramaswamy, who will co-lead the initiative with billionaire Elon Musk.
“There is currently massive waste, fraud and abuse,” Ramaswamy further said fox News’ Sunday morning futures. “Federal contractors are really exploiting the federal government.”
Trump said last week that the new body – known as the Department of Government Efficiency – would work with the White House Office of Management and Budget to cut red tape, cut regulations, reduce wasteful spending and restructure federal agencies.
“We expect that certain agencies will be completely deleted,” Ramaswamy said. “We expect massive troop reductions in bloated areas of the federal government. We expect massive cuts to federal contractors and others who overcharge the federal government.”
Ramaswamy has not selected any contractors and is not yet clear how the efficiency drive will be structured.
If Musk and Ramaswamy were added to a federal advisory board, they would be subject to ethics laws that require them to stay away from discussions and decisions that affect them personally. SpaceXMusk’s rocket company has federal contracts worth more than $15 billion.