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"Elon loves corporate welfare for himself, rugged individualism for the poor," wrote a top adviser for Sen. Bernie Sanders.
Critics are pointing out the hypocrisy of billionaire Elon Musk's efforts to slash federal spending and personnel when he himself is a major beneficiary of the government's largesse, to the tune of over $10 billion dollars in federal contracts for his various companies over the past five years.
Meanwhile, Musk and representatives at the so-called Department of Government Efficiency—with the blessing of U.S. President Donald Trump—have infiltrated multiple federal agencies in service of carrying out punishing cuts. One DOGE's first victims was the U.S. Agency for International Development (USAID), the single largest provider of humanitarian assistance worldwide.
The hollowing out of USAID—which aid organizations warn will have a "catastrophic impact" on children worldwide—is currently tied up in litigation. Separately, the administration has implemented a near-total freeze on foreign aid spending.
"While Elon Musk, the wealthiest man alive, is illegally denying food for the poorest children on Earth, SpaceX received another $38 million supplemental federal contract yesterday paid for by your taxes," wrote Warren Gunnels, a top adviser to U.S. Sen. Bernie Sanders (I-Vt.), on Wednesday.
"Elon loves corporate welfare for himself, rugged individualism for the poor," he added.
Gunnels post appears to reference reporting from the Lever, which wrote Tuesday that Musk's aerospace firm SpaceX secured "a new 'supplemental' contract dated February 10 [that] adds $7.5 million to SpaceX's NASA work... The overall transaction obligated $38 million to Musk's company, as part of its overall deal with NASA."
Meanwhile, during the first meeting of the House Oversight Subcommittee on Delivering on Government Efficiency on Wednesday, Rep. Greg Casar (D-Texas) made comments in a similar vein.
"Last year, Elon Musk was promised $3 billion from close to 100 contracts with the federal government," said Casar, who went on to say that Musk makes "$8 million a day," referencing his federal contracts, while the average person in this country who receives Social Security has to make ends meet on $65 a day.
"When Republicans talk about government efficiency in this Congress, they're not looking into billionaires who don't pay their taxes, they're not looking into billionaires who get rich off of government contracts... They're looking at cutting your public schools, they're going straight for your Social Security, they're coming straight for cancer research," he said.
Casar also lambasted a draft budget resolution unveiled by House Republicans on Wednesday that calls for $4.5 trillion in tax breaks that would disproportionately benefit the wealthy, while proposing $2 trillion in cuts to Medicaid, federal nutrition assistance, and other programs.
"While the so-called Department of Government Efficiency has been on a rampage to root out 'waste, fraud, and abuse,' they've been ignoring the biggest money pit in the entire federal government," said Rep. Summer Lee.
As billionaire Elon Musk's Department of Government Efficiency makes its way through federal agencies with the aim of cutting spending that goes toward protecting workers' rights, providing disaster assistance and healthcare in the Global South, and defending Americans from corporate greed, Democratic lawmakers are demanding to know why Republicans are pushing to increase the already bloated Pentagon budget.
"While American families struggle with skyrocketing healthcare costs and grocery bills, Republicans are gearing up to fork over another $150 billion to the military-industrial complex," said Sen. Ed Markey (D-Mass.) at a press conference titled "Slash the Pentagon" with government watchdog Public Citizen on Tuesday.
The event was held as the Senate Budget Committee prepared to begin a markup Wednesday of Senate Republicans' budget blueprint that was recently released, which could add $150 billion to the Department of Defense (DOD) budget.
The spending would be focused on improving "military readiness," expanding the U.S. Navy, building an air and missile defense system the Trump administration has called the "Iron Dome for America," and investing in nuclear defenses.
The senator said adding to the Pentagon's budget—which already stands at nearly $900 billion—won't make Americans safer, because "the doomsday that Americans fear in the 21st century isn't being vaporized by a nuclear bomb."
"It's the doomsday diagnosis of cancer, it's medical debt, it's housing payments or loan payments, it's grocery bills and heating bills," said Markey. "Let's finally put the people before the Pentagon."
As progressive organizers have noted in recent weeks, despite the fact that President Donald Trump campaigned as a populist—and won the support of a majority of working-class voters while high earners swung toward former Vice President Kamala Harris in the November election—the Department of Government Efficiency (DOGE) has spent the early days of Trump's second term seizing data and pushing for the shutdown of the Consumer Financial Protection Bureau and the Department of Education, attempting to take control of a major payment systemat the Department of the Treasury, and looking to cut spending at the Department of Labor.
Meanwhile, the Pentagon—which has failed seven consecutive audits, unable to account for its spending even as it swallows up 14% of the federal budget—has barely registered as a target of DOGE.
"While the so-called Department of Government Efficiency has been on a rampage to root out 'waste, fraud, and abuse,' they've been ignoring the biggest money pit in the entire federal government: the Department of Defense," said Rep. Summer Lee (D-Pa.). "The people want a more efficient government, quality healthcare, housing costs that don't skyrocket, and affordable eggs and groceries—not a bloated military budget that doesn't make us any safer. Maybe DOGE should take a look at that."
Rep. Rashida Tlaib (D-Mich.) added that DOGE's actions so far will leave students with disabilities without resources and threaten senior citizens who rely on Social Security.
"We don't have clean drinking water in our country, but we always have the money for war," said Tlaib. "I'm sick of it. If our government has endless money to bomb people, they have money for clean air and water, guaranteeing healthcare as a human right, and making sure no child goes hungry. Our elected officials are choosing to spend money on endless war instead of the American people."
Trump and Musk have begun answering some questions from the press about whether DOGE will address DOD spending, with the president saying Sunday that DOGE will likely find "hundreds of billions of dollars of fraud and abuse."
Musk has criticized the Pentagon's $12 billion F-35 program as "obsolete," and some lawmakers have drawn attention to exorbitant spending at the department on luxury meals, toilet seats, and soap dispensers.
But Defense Secretary Pete Hegseth on Tuesday expressed hope that spending cuts would focus on climate programs, saying the Pentagon "is not in the business of climate change, solving the global thermostat. We're in the business of deterring and winning wars."
The DOD is the "single largest institutional producer of greenhouse gases in the world," as the Costs of War project at Brown University said in a 2019 report, and Trump's former defense secretary, Jim Mattis, acknowledged that the DOD must "pay attention to potential adverse impacts" of the climate crisis, related to national security.
On Tuesday, Musk was also questioned about DOGE's priorities at the Pentagon, with a reporter asking whether he has a conflict of interest in examining the DOD's spending, given his role of CEO at SpaceX, an aerospace company that receives about $22 billion in defense contracts from the department.
Musk shrugged off the concern, telling the reporter that he isn't personally "the one filing the contract, it's the people at SpaceX," and adding that defense contracts received by his company are "by far the best value for money for the taxpayer."
SpaceX was handed a new $38.85 million contract with the National Aeronautics and Space Administration (NASA) on Monday.
Meanwhile, said Public Citizen co-president Robert Weissman, as Republicans head toward the budget reconciliation process, "money for the Pentagon will come directly cutting spending on human needs. The money that will go to Lockheed Martin or Palantir will come directly from Medicaid and food stamps and other programs for the poor and vulnerable."
"But with the plundering of the human needs budget made plain," he said, "the American people are not going to stand for—and will defeat—the Republicans' Pentagon boondoggle proposal."
Every elected Democrat should be demanding that no taxpayer dollars go to corporations that lay off taxpayers involuntarily. If they don't, what good are they?
As the Trump-Musk administration takes an axe to the federal government’s budget and personnel, the Democrats have an opening to raise an issue that Musk will hate but Trump can’t ignore—private sector mass layoffs.
Right now, as Acting President Musk goes after agency after agency in the name of cost cutting, the Democrats are focused on public sector job cuts. As they should, tens of thousands of jobs are at risk.
But those numbers pale in comparison to the 1.8 million private sector workers who lost their jobs in December of 2024 due to involuntary layoffs. For the past several decades, more than 20 million jobs per year have been taken away from workers who did nothing wrong.
It won’t be easy to convince private sector workers that cutting federal government costs is a mistake. If you’re living paycheck to paycheck, you don’t want your tax dollars squandered, and USAID., to many, sounds like a money pit.
If the Democrats act forcefully to defend working-class jobs, they should have better chance to win back Congress from Trump in 2026.
But private sector workers do care about their own job insecurity, and Donald Trump knows it. He has spoken forcefully about keeping worker jobs from migrating to Mexico and elsewhere, and he could take actual action to make that happen with one simple Executive Order:
Corporations that receive taxpayer money via federal contracts and tax subsidies shall not lay off taxpayers involuntarily.
More than $750 billion in contracts for materials and services are made each year by the federal government. Many of the corporate recipients have had no qualms about laying off workers and using the savings to enrich their investors via stock buybacks, and there have been no effective rules to prevent this. (A stock buyback is when a corporation repurchases its own shares, thereby raising the price of the stock without improving the company in any material way.)
Taxpayers know there is a great deal of waste built into federal contracts, especially those massive purchases involving defense and advanced technologies.
It turns out that Musk’s companies, reportedly, have received $20 billion in federal contracts, with $15.4 billion coming to Tesla and Space X in the last decade. Last year, Tesla laid off more than 14,000 workers, and Space X has announced that this year it will lay off more than 10 percent of its workforce, about 6,000 jobs. Imagine if Musk were not allowed to stuff himself with taxpayer money unless he refrained from involuntary layoffs?
To get there the Democrats, for the first time in memory, would need to care about greed-driven private sector layoffs.
That will be difficult because the Democrats are more in tune with highly educated, upper middle-class federal workers. These are the kind of voters who have been trending Democratic while the party has shed the working class. And the Democrats see the federal agencies in which these voters work as part of their legacy, often created and enhanced by legislation they spear-headed. Federal workers are their people, doing the work that the Democrats care most about.
Not so much the private sector, where voters have been drifting away from the Democrats in large numbers for decades, especially in the swing states of Michigan, Pennsylvania, and Wisconsin. As I show in Wall Street’s War on Workers, since 1992, as a county’s mass layoff rate has gone up, the Democratic vote has gone down, even as these voters have grown more liberal on social issues.
The Democrats have been losing these working-class voters because they have failed to interfere in private sector layoff decisions, even when job destruction became a campaign issue.
For example, in the run up to the 2024 election, John Deere and Company announced they were shipping more than 1,000 jobs to Mexico while recording $10 billion in profits and conducting $12.2 billion in stock buybacks. Trump immediately called for a 200-percent tariff on all Deere imported goods if they didn’t rescind their layoffs.
The Democrats didn’t say a word about how to stop this needless job destruction and instead attacked the tariffs. Deere’s stock buybacks and profits proved the company had more than enough money to offer voluntary buyout packages for all their workers, not just the executives. But the Democrats did not speak up.
During the height of the COVID-19 pandemic, the Democrats also remained silent when the Mylan Pharmaceutical plant in Morgantown, WV, moved to India. Workers there begged the Democrats to use the Defense Production Act to keep open the facility, which made generic drugs. If Biden could do it for baby formula, why not for badly needed pharmaceuticals?
But not one Democrat came out in support of these workers, and 1,500 jobs with an average wage of $70,000 per year were tossed away.
Clearly, the Democrats have been pulling away from the working class. Why help these workers, some are saying, when they’re more than likely to vote for Republicans? And why challenge corporate power when you’re trying to win over highly educated executives and financial leaders?
Democratic Senate Minority Leader Chuck Schumer, who is up and arms these days about the attacks on federal workers, was very honest about this switch in 2016. I’ve quoted him again and again because he tells us precisely what the Democratic strategy has been all about:
"For every blue-collar Democrat we lose in western Pennsylvania, we will pick up two moderate Republicans in the suburbs in Philadelphia, and you can repeat that in Ohio & Illinois & Wisconsin."
At the launch of a second Trump presidency, Schumer’s political acumen has not aged well.
Nor has Ken Martin’s, the new chair of the Democratic National Committee, who has made it clear that billionaires are welcome.
“There are a lot of good billionaires out there that have been with Democrats, who share our values, and we will take their money, but we’re not taking money from those bad billionaires,” Martin said recently.
It is doubtful that Martin ever gave one second’s thought to the fact that most, if not all, of these “good” billionaires that “share our values” have grown wealthy from, to some significant extent, stock buybacks funded through mass layoffs.
The country needs the Democrats to go from defense to offense. If the only activity is mounting a resistance movement to Trump, the odds are slim that enough new voters will be gained to win back the House or the Senate in 2026.
Every elected Democrat should be demanding that no taxpayer dollars go to corporations that lay off taxpayers involuntarily. They should put that message on social media, old media, even billboards all over the swing states. They should challenge every Republican candidate to take a stand on it. It doesn’t cost the taxpayer one dime, but it can protect the livelihoods of millions of working people every year. Or, at least, give them leverage while working out their severance.
Every day Democrats should be asking Trump to sign the order. Does he really want to be seen giving our tax dollars to corporations that lay off taxpayers and funnel the savings to the rich?
And wouldn’t it be good for our weary souls to see Musk squirm because he wouldn’t be able to sup at the federal trough while casually laying off his employees?
You have to wonder if the Democrats are capable of such a move, or anything remotely close to it. Only if they truly are willing to take on Wall Street and the billionaire class. They need to believe, not just mouth the words, that they will fight the wealthy to protect the livelihoods of working people.
If the Democrats act forcefully to defend working-class jobs, they should have better chance to win back Congress from Trump in 2026. But in the short term, pushing Trump to defend his populist flank might help put a wedge between Trump and his billionaire bros, and get some relief for workers from financialized layoffs.
But don’t hold your breath. All those “good” Democratic billionaires might get upset.