Elon Musk has been appointed by President-elect Donald Trump to co-lead a newly proposed “Department of Government Efficiency,” a key initiative aimed at reshaping federal operations. Musk, who has built a reputation as a forward-thinking innovator with ventures like Tesla and SpaceX, will be joined by entrepreneur Vivek Ramaswamy to spearhead this department, which aims to slash bureaucratic red tape, reduce regulatory burdens, and streamline government agencies.

Announcing the initiative on Tuesday, Trump praised Musk and Ramaswamy as “two wonderful Americans” who will be pivotal in “dismantling Government Bureaucracy and slashing wasteful expenditures.” According to Trump, the department’s mission is to provide “advice and guidance from outside of Government” on restructuring federal processes for greater efficiency.

The move signals Trump’s intent to bring a fresh approach to government, leaning heavily on leaders from the private sector to make sweeping changes. Musk’s appointment, however, has sparked scrutiny and raised questions about potential conflicts of interest. Tesla, SpaceX, and other Musk-led companies hold lucrative government contracts, and critics are concerned about the ethical implications of his involvement. Transparency advocates are calling for safeguards to prevent conflicts, given Musk’s financial ties with the federal government.

The exact structure and operation of the Department of Government Efficiency remain unclear, though the initiative could face significant legislative hurdles. Even with the possibility of a Republican-controlled Congress, support for such a large-scale reorganization is uncertain, as lawmakers from both sides weigh the implications of giving private sector figures a hand in government restructuring.

Supporters argue that Musk’s influence could lead to a leaner, more agile federal system, citing his track record for ambitious innovation and efficient problem-solving. Detractors, however, warn that the initiative risks placing too much power in the hands of individuals with strong private-sector interests.

As details of the department unfold, questions regarding oversight and operational boundaries will likely play a major role in congressional debates.