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Musk vs. the bureaucracy vs. Congress: Who has the power to cut spending?

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The Trump administration’s all-of-Washington shake-up has resulted in hundreds of lawsuits and cries of a “constitutional crisis,” with Elon Musk’s Department of Government Efficiency at the heart of many complaints from Democrats.

Critics of the department say its on shaky legal footing and have questioned whether Musk’s role violates the U.S. Constitution, as higher-ranking government officials often must be appointed by the president and confirmed by the Senate. The White House has maintained that, despite Musk being the public face of the department and seemingly directing its activities, he is only a “special government employee.” As such, he isn’t subject to a Senate confirmation.

But legal experts disagree on Musk’s role and authority within the federal government.

The Pacific Legal Foundation’s Michael Poon works for the foundation’s separation of powers practice group. Now that the White House has revealed the identity of the DOGE’s administrator as Amy Gleason, a healthcare technology executive who served under Presidents Donald Trump and Joe Biden, Poon likened Musk’s role to that of a “DOGE czar,” or even the president’s chief of staff – neither of which are senate-confirmed positions. Because Musk isn’t the department’s administrator, he doesn’t seem to have any formal authority, according to Poon.

“Agency heads have the power to ignore him because he doesn’t actually have formal power himself,” Poon continued, “but they probably listen because Musk is understood to have the president’s confidence,” similar to other positions Poon mentioned, including Trump’s border czar, Tom Homan, who also isn’t Senate confirmed but works side by side with the Department of Homeland Security. whose secretary, Kristi Noem, is Senate-confirmed.

“This kind of arrangement makes Musk informally powerful, but the power comes from the expectation that the president would back him, not any power that is, sort of, inherent in his position,” Poon said.

While Poon doesn’t think Musk’s role violates any constitutional requirements, he does appreciate the sudden interest the public is taking in the role of unelected federal officials in general. But since their function in the federal government has developed over many decades, it’s unlikely that anything resulting from the DOGE-Musk controversy would go very far in solving the problem.

“It’s appropriate to be scrutinizing of unelected officials and the power that they wield,” Poon said. “But it’s a concern that has been put to the side for the last hundred years, over which both major parties have worked to weaken these protections against unelected officials.”

If Americans want less power and more guardrails for unelected officials, it will take time to achieve, according to Poon.

“I don’t think that, as the current case law stands, Elon Musk’s role contravenes the Constitution, but if we think those protections should be strengthened…  that’s something that takes a concerted effort and it can’t vary depending on who is in control of the executive branch,” Poon said.

Thomas Berry, director of the Cato Institute’s Robert A. Levy Center for Constitutional Studies, finds the lack of transparency around DOGE and Musk’s role troubling.

“I think there’s very serious concerns about what exactly is happening with DOGE,” Berry said.

A lot of concerns with DOGE have to do with the Appointments Clause, which is the basis for Senate confirmations of presidential appointees and creates a system of accountability.

“The Appointments Clause of the Constitution says that the final decision maker on a lot of issues needs to be either the president or someone appointed by the president and confirmed by the Senate,” Berry said. “When the public perception is that Musk or anyone who’s not Senate-confirmed is making these decisions, you don’t have any elected person to blame.”

Even if the administration were to eventually reveal that the president approved all of Musk’s actions, the lack of transparency now is problematic for the public, according to Berry.

As for questions about Trump’s authority to establish DOGE and Musk’s role within it, President of the Liberty Justice Center Jacob Huebert thinks they’re unfounded.

“Article II of the Constitution gives all executive power to the president,” Huebert said. “As long as the president has ultimate decision-making authority here, I don’t see any problem with that.”

He applauds what he sees as Trump’s revision of the executive branch, bringing it closer to what it was intended to be.

“It’s the president deciding how the executive branch is going to run, which is very much the opposite of how it has long been run, where the bureaucracy is kind of leading things even though the bureaucracy doesn’t have any constitutional authority whatsoever,” Huebert said.

As far as Trump’s efforts to cut government spending through DOGE, Huebert’s unsure how it will play out, though he thinks it’s a valiant aim. The Constitution grants Congress power over the government’s purse, and some lawsuits are challenging the president’s attempts to cut spending that Congress has already appropriated. Even if DOGE were able to get federal agencies to cut their budgets and the courts ruled in their favor, Huebert thinks it will be difficult to motivate Congress to pass significantly smaller budgets.

“That to me seems like the biggest challenge for DOGE if part of the goal is to cut spending because Congress really likes to spend, including most of the Republicans in Congress, and the reasons that they’ve had to spend so much money have not gone away,” Huebert said. “All the incentives to spend, or most of them, are still there. So I don’t know how Trump or Elon Musk, if they want to bring it under control, can bring it under control.”

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China’s economy takes a hit as factories experience sharp decline in orders following Trump tariffs

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President Trump’s tariffs on Chinese imports are delivering a direct blow to China’s economy, with new data showing factory activity dropping sharply in April. The fallout signals growing pressure on Beijing as it struggles to prop up a slowing economy amid a bruising trade standoff.

Key Details:

  • China’s manufacturing index plunged to 49.0 in April — the steepest monthly decline in over a year.
  • Orders for Chinese exports hit their lowest point since the Covid-19 pandemic, according to official data.
  • U.S. tariffs on Chinese goods have reached 145%, with China retaliating at 125%, intensifying the standoff.

Diving Deeper:

Three weeks into a high-stakes trade war, President Trump’s aggressive tariff strategy is showing early signs of success — at least when it comes to putting economic pressure on America’s chief global rival. A new report from China’s National Bureau of Statistics shows the country’s manufacturing sector suffered its sharpest monthly slowdown in over a year. The cause? A dramatic drop in new export orders from the United States, where tariffs on Chinese-made goods have soared to 145%.

The manufacturing purchasing managers’ index fell to 49.0 in April — a contraction level that underlines just how deeply U.S. tariffs are biting. It’s the first clear sign from China’s own official data that the trade measures imposed by President Trump are starting to weaken the export-reliant Chinese economy. A sub-index measuring new export orders reached its lowest point since the Covid-19 pandemic, and factory employment fell to levels not seen since early 2024.

Despite retaliatory tariffs of 125% on U.S. goods, Beijing appears to be scrambling to shore up its economy. China’s government has unveiled a series of internal stimulus measures to boost consumer spending and stabilize employment. These include pension increases, subsidies, and a new law promising more protection for private businesses — a clear sign that confidence among Chinese entrepreneurs is eroding under Xi Jinping’s increasing centralization of economic power.

President Trump, on the other hand, remains defiant. “China was ripping us off like nobody’s ever ripped us off,” he said Tuesday in an interview, dismissing concerns that his policies would harm American consumers. He predicted Beijing would “eat those tariffs,” a statement that appears more prescient as China’s economic woes grow more apparent.

Still, the impact is not one-sided. Major U.S. companies like UPS and General Motors have warned of job cuts and revised earnings projections, respectively. Consumer confidence has also dipped. Yet the broader strategy from the Trump administration appears to be focused on playing the long game — applying sustained pressure on China to level the playing field for American workers and businesses.

Economists are warning of potential global fallout if the trade dispute lingers. However, Beijing may have more to lose. Analysts at Capital Economics now predict China’s growth will fall well short of its 5% target for the year, citing the strain on exports and weak domestic consumption. Meanwhile, Nomura Securities estimates up to 15.8 million Chinese jobs could be at risk if U.S. exports continue to decline.

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Scott Bessent says U.S., Ukraine “ready to sign” rare earths deal

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During Wednesday’s Cabinet meeting, Treasury Secretary Scott Bessent said the U.S. is prepared to move forward with a minerals agreement with Ukraine. President Trump has framed the deal as a way to recover U.S. aid and establish an American presence to deter Russian threats.

Key Details:

  • Bessent confirmed during a Cabinet meeting that the U.S. is “ready to sign this afternoon,” even as Ukrainian officials introduced last-minute changes to the agreement. “We’re sure that they will reconsider that,” he added during the Cabinet discussion.

  • Ukrainian Economy Minister Yulia Svyrydenko was reportedly in Washington on Wednesday to iron out remaining details with American officials.

  • The deal is expected to outline a rare earth mineral partnership between Washington and Kyiv, with Ukrainian Armed Forces Lt. Denis Yaroslavsky calling it a potential turning point: “The minerals deal is the first step. Ukraine should sign it on an equal basis. Russia is afraid of this deal.”

Diving Deeper:

The United States is poised to sign a long-anticipated rare earth minerals agreement with Ukraine, Treasury Secretary Scott Bessent announced  during a Cabinet meeting on Wednesday. According to Bessent, Ukrainians introduced “last minute changes” late Tuesday night, complicating the final phase of negotiations. Still, he emphasized the U.S. remains prepared to move forward: “We’re sure that they will reconsider that, and we are ready to sign this afternoon.”

As first reported by Ukrainian media and confirmed by multiple Ukrainian officials, Economy Minister Yulia Svyrydenko is in Washington this week for the final stages of negotiations. “We are finalizing the last details with our American colleagues,” Ukrainian Prime Minister Denys Shmyhal told Telemarathon.

The deal follows months of complex talks that nearly collapsed earlier this year. In February, President Trump dispatched top officials, including Bessent, to meet with President Volodymyr Zelensky in Ukraine to hammer out terms. According to officials familiar with the matter, Trump grew frustrated when Kyiv initially refused U.S. conditions. Still, the two sides ultimately reached what Bessent described as an “improved” version of the deal by late February.

The effort nearly fell apart again during Zelensky’s February 28th visit to the White House, where a heated Oval Office exchange between the Ukrainian president, Trump, and Vice President JD Vance led to Zelensky being removed from the building and the deal left unsigned.

Despite those setbacks, the deal appears to be back on track. While no public text of the agreement has been released, the framework is expected to center on U.S.-Ukraine cooperation in extracting rare earth minerals—resources vital to modern manufacturing, electronics, and defense technologies.

President Trump has publicly defended the arrangement as a strategic and financial win for the United States. “We want something for our efforts beyond what you would think would be acceptable, and we said, ‘rare earth, they’re very good,’” he said during the Cabinet meeting. “It’s also good for them, because you’ll have an American presence at the site and the American presence will keep a lot of bad actors out of the country—or certainly out of the area where we’re doing the digging.”

Trump has emphasized that the deal would serve as a form of “security guarantee” for Ukraine, providing a stabilizing American footprint amid ongoing Russian aggression. He framed it as a tangible return on the billions in U.S. aid sent to Kyiv since the start of Russia’s 2022 invasion.

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