Establishment of the U.S. Department of Government Efficiency, Analysis of Administrative Reform, and Korean Implications

In 2025, immediately after taking office, President Donald Trump announced a strong commitment to administrative reform and established the Department of Government Efficiency (DOGE) under the Executive Office of the President. Unlike existing federal departments, DOGE is a temporary organization created by executive order rather than statute, tasked with leading comprehensive administrative reforms encompassing digital transformation, regulatory reform, fiscal consolidation, and workforce restructuring. DOGE was established with an 18-month mandate, scheduled to conclude in July 2026. Elon Musk was appointed as Secretary, but his 130-day special government employee term ended on Thursday, May 29.

The central policy focus of DOGE is regulatory reform. The Trump administration adopted a “one-in, ten-out” regulatory principle, requiring the elimination of at least ten existing regulations for every new regulation introduced. At the same time, it mandated that the net regulatory cost of newly issued regulations remain below zero, aiming to prevent the quantitative expansion of regulation and limit cost burdens on the private sector. Each federal agency was also required to report its annual regulatory costs and reassess the justification of existing administrative regulations. In particular, regulations meeting any of seven criteria—including constitutional violations, lack of statutory authority, or excessive burdens on the private sector—were prioritized for repeal. These regulatory reforms resulted in estimated savings of USD 28.8 billion and the deletion of approximately 800,000 words from regulatory texts.

DOGE also pursued aggressive reforms in the areas of fiscal management and public spending. Federal contracts, grants, and loan expenditures were required to be registered in a centralized records system, and all expenditures had to be accompanied by a brief written justification. If no justification was submitted, the expenditure was automatically suspended, thereby enhancing transparency and accountability in the use of public funds. In addition, grants and contracts deemed unnecessary or inconsistent with national interests were widely canceled. As a result, approximately 10,800 contracts were terminated, more than 15,000 grants were discontinued, and total savings of USD 175 billion were achieved. This translates to an estimated USD 1,087 in savings per taxpayer.

Workforce restructuring was another major pillar of DOGE’s reform agenda. The federal government adopted a policy allowing the hiring of only one new employee for every four retirees, while certain agencies, such as the Internal Revenue Service, remained under a complete hiring freeze. Departments engaged in DEI (Diversity, Equity, and Inclusion) initiatives or performing functions not mandated by law were prioritized for downsizing. Contracts with temporary workers and reemployed pension recipients were also gradually terminated. These measures were intended to prevent bureaucratic expansion and maximize administrative efficiency.

The Trump administration’s DOGE initiative is widely regarded as a flagship effort to realize a “small government” model in the United States. Korea likewise pursued a policy of a “small and efficient government” during the Kim Dae-jung administration, but subsequent governments have seen continuous growth in organizational size and staffing levels. The U.S. DOGE case therefore offers several important implications for Korea.

First, it underscores the need for a dedicated ministry or control tower to oversee administrative reform. In Korea, entities such as the Prime Minister’s Office or the Regulatory Reform Committee have performed similar roles, but their coordination capacity has been limited due to ministerial autonomy and bureaucratic fragmentation. This suggests the need to establish a presidentially affiliated administrative reform body with strong execution authority.

Second, there is a need to introduce a digital, performance-based disclosure system for administrative reform outcomes. DOGE publicly discloses metrics—such as taxpayer savings, numbers of terminated contracts, and eliminated regulations—through a dedicated website, enhancing citizens’ right to know and strengthening public trust in government policies.

Third, Korea should consider adopting substantive regulatory reform mechanisms, such as a regulatory cap by ministry, a one-in, ten-out rule, or net-zero regulatory cost management, with a focus on actual regulatory consolidation, repeal, and elimination.

Finally, Korea should review concrete measures for expenditure efficiency and workforce restructuring, including strengthened pre-screening of contracts and grants, controls on unnecessary travel, termination of government real estate leases, and organizational consolidation.

The Trump administration’s DOGE activities and administrative reforms are noteworthy not only for their visible and substantive implementation of restructuring and cost reduction, but also for their emphasis on citizen-centered transparency and government accountability, making them a valuable reference for future administrative reform efforts in Korea.



I. Introduction: Establishment of the U.S. Department of Government Efficiency and the Need for Administrative Reform

1. Establishment of DOGE and Administrative Reform under the Trump Administration

2. The Need to Revisit the “Small Government” Debate through the Creation of DOGE

II. Executive Order–Based Structure and Current Status of DOGE and Administrative Reform

1. Executive Order (Jan. 20, 2025): Establishment and Implementation of DOGE

2. Executive Order (Jan. 31, 2025): Promoting Prosperity through Regulatory Relief

3. Executive Order (Feb. 11, 2025): Implementation of the Presidential DOGE Workforce Optimization Plan

4. Executive Order (Feb. 19, 2025): Ensuring Lawful Governance and Implementation of the Presidential DOGE Regulatory Reform Plan

5. Executive Order (Feb. 26, 2025): Implementation of the DOGE Cost Efficiency Plan

6. Executive Order (Mar. 14, 2025): Continued Reduction of the Federal Bureaucracy

7. Fact Sheet (Feb. 18, 2025): President Trump Directs Transparency on Wasteful Spending

III. Performance Outcomes of DOGE

1. Savings

2. Regulatory Reform

3. Federal Government Spending, Revenue, and Fiscal Deficit

5. Workforce and Personnel Cost Reductions

IV. Analysis of Administrative Reform under the Trump Administration and Implications for Korea

1. Analysis of DOGE Activities and Administrative Reform

2. Implications for Korea

V. Conclusion: Policy Recommendations for Regulatory Reform and Government Efficiency under the New Administration

References

Korean version: https://www.cfe.org/20250605_27777