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American Focus > Blog > Politics > Republican governors tried to slash state budgets. They have advice for Elon Musk.
Politics

Republican governors tried to slash state budgets. They have advice for Elon Musk.

Last updated: March 2, 2025 9:51 am
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Republican governors tried to slash state budgets. They have advice for Elon Musk.
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Mitch Daniels, also known as “the Blade,” made a name for himself in the early 2000s as a no-nonsense government reformer. As the former Indiana governor and Office of Management and Budget director under President George W. Bush, Daniels implemented drastic cuts to the state’s workforce, turning a $700 million deficit into a $2 billion surplus. His efforts were so successful that he was able to give refund checks to taxpayers, a move that earned him the nickname “the Blade.”

In today’s political landscape, Mitch Daniels and other former GOP governors are looking back at their own efforts with a mix of nostalgia, uncertainty, and caution towards Elon Musk’s Department of Government Efficiency. Daniels, in particular, expressed reservations about Musk’s ambitious goal of achieving $2 trillion in savings.

While Daniels acknowledged the value of highlighting government inefficiencies, he advised a more measured approach, urging Musk to focus on tangible successes before setting lofty benchmarks. He emphasized the importance of action over mere rhetoric, cautioning against overemphasizing personnel cuts that could backfire politically.

Other former governors, such as Bruce Rauner of Illinois and Chris Christie of New Jersey, shared their own experiences with government reform. Rauner found it challenging to shrink the government in Illinois due to resistance from the Democratic-led state legislature. Christie, on the other hand, faced backlash for cuts to human services that he later reversed.

Despite their differing approaches, all former governors recognized the need for government reform at various levels. They commended the Trump administration for attempting to reduce government waste, likening its approach to the corporate world’s ethos of “move fast and break things.” However, they also highlighted the importance of protecting essential services like education.

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As Elon Musk’s Department of Government Efficiency continues to make headlines with its controversial decisions, former governors like Mitch Daniels, Bruce Rauner, and Chris Christie serve as a reminder of the challenges and complexities of reforming government. Their experiences offer valuable lessons for policymakers seeking to streamline bureaucracy and eliminate waste in public institutions. The U.S. Agency for International Development (USAID) has recently faced criticism for a lack of transparency in its efforts to prevent the spread of Ebola. Governor Christie highlighted a recent mistake where USAID mistakenly canceled these crucial initiatives, causing concern among the public. While the initiative was eventually restored, Christie emphasized the importance of transparent decision-making processes to avoid such errors in the future.

Mitch Daniels, a prominent figure in advocating for fiscal responsibility, has long warned about the country’s growing debt crisis. In a speech at the Conservative Political Action Conference in 2011, he referred to the national debt as the “new red menace.” Daniels also proposed the idea of a taxpayer refund back then, which has since been implemented multiple times to benefit taxpayers.

Daniels has expressed support for President Trump and Elon Musk’s efforts to streamline government spending. However, he believes that the Office of Management and Budget (OMB) holds the true authority to make significant budget cuts. While Daniels acknowledges the need for fiscal restraint, he cautions that Trump and Musk may struggle to achieve substantial reductions without addressing entitlement reforms, such as Medicaid.

Despite his support for cost-saving measures, Daniels believes that incremental cuts are more realistic in the current political climate. He urges the administration to focus on effective spending reductions that will not jeopardize essential services. Daniels remains skeptical about the feasibility of achieving the level of cuts desired by Trump and Musk without addressing larger budgetary issues.

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In conclusion, while USAID’s efforts to combat Ebola have been reinstated, the incident underscores the importance of transparent decision-making processes. Mitch Daniels’ advocacy for fiscal responsibility serves as a reminder of the challenges in addressing the country’s growing debt crisis. As President Trump and Elon Musk seek to streamline government spending, Daniels emphasizes the need for practical and effective cost-saving measures to ensure financial stability in the long run.

TAGGED:AdvicebudgetsElongovernorsMuskRepublicanslashState
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