What Retired/Retiring Veterans Need to Know About Elon Musk’s Plans for Government Efficiency

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

The Department of Government Efficiency (DOGE) is President Donald Trump’s newly created advisory commission to reduce wasteful federal spending. The task force, which is not an official government department, is led by Tesla CEO Elon Musk and entrepreneur Vivek Ramaswamy.

The two are responsible for slashing budgets for various federal departments and co-wrote a piece in the Wall Street Journal stating they will target “the $500 billion-plus in annual federal expenditures that are unauthorized by Congress or being used in ways that Congress never intended.”

In addition, Ramaswamy denounced expired government programs that account for $516 billion each year shortly after the election. 

“There are 1,200+ programs that are no longer authorized but still receive appropriations,” Ramaswamy wrote on X. “This is totally nuts. We can & should save hundreds of billions each year by defunding government programs that Congress no longer authorizes. We’ll challenge any politician who disagrees to defend the other side.”

Many speculate that the Veterans Health Care Eligibility Reform Act of 1996 is on the chopping block because it costs the government $119 billion annually. The law expired in 1998 but is still funded and benefits veterans today by improving healthcare standards, expanding eligibility for outpatients, and more.

Here’s what to know about the DOGE and how it could impact retired and retiring veterans. 

Job Loss

According to a press release from the National Federation of Federal Employees, 30% of federal employees are veterans. If Musk and Ramaswamy follow through on promises to cut massive spending, an estimated 481,950 veterans will be laid off. 

“Every person in this country needs to know that if Elon Musk and Vivek Ramaswamy get their way, nearly half a million veterans will go jobless,” said Randy Erwin, national president of the National Federation of Federal Employees, in the media release. 

Healthcare Impact

Nearly 371,000 healthcare professionals work for the Veterans Affairs (VA). If job loss occurs as a result of the DOGE, and a massive employee reduction takes place, it would severely disrupt services to veterans. 

“If Musk and Ramaswamy execute their stated plans, the VA healthcare system as we know it will collapse,” Erwin explained in the press release. 

According to Andrew Lokenauth, a finance expert and founder of TheFinanceNewsletter, veterans will be affected if too much staff is let go in several ways. 

• Appointment wait times might stretch from weeks to months (especially in rural areas)
• Emergency care services could see reduced staffing and longer wait times
• Mental health support services might face severe limitations
• Prescription medication costs could increase for veterans
• Specialized care for post-traumatic stress disorder (PTSD) and combat-related injuries might see reduced resources

Warning Signs To Watch

It’s unclear when the potential changes could happen, but Lokenauth explained there are key signs to watch for: 

• Closure announcements of local VA facilities
• Increased co-pays or medication costs
• New restrictions on service eligibility
• Reduced operating hours at VA clinics
• Staffing cuts at VA facilities

Protective Measures

To help prepare for possible upcoming changes, veterans should consider taking these steps, per Lokenauth: 

• Collect and organize all medical records
• Complete any pending healthcare procedures
• File any outstanding disability claims ASAP
• Get current prescriptions filled and renewed
• Schedule important medical appointments now

Financial Preparation Steps

If changes are implemented, veterans should protect themselves financially. Lokenauth advises the following: 

• Build an emergency healthcare fund (aim for at least six months of expenses)
• Consider supplemental private health insurance options
• Explore local veteran support organizations and programs
• Look into state-specific veteran healthcare programs
• Start documenting all current health conditions and treatments

Time will tell what will happen, but Ramaswamy and Musk are already drumming up plenty of support for DOGE. An account for the task force was launched in November 2024 on X and has 2.7 million followers.

Share This Article: