The debate over federal aid and government efficiency has intensified in California after a recent social media exchange between White House aide Richard Grenell and SpaceX CEO Elon Musk.
Grenell’s call for a Department of Government Efficiency (DOGE) in California received immediate backing from Musk, who warned that without it, the state could be heading for bankruptcy.
“We need DOGE California,” Grenell posted on X (formerly Twitter).
“Crucial or California will go bankrupt,” Musk replied.
This comes as the federal government considers attaching strict conditions to California’s wildfire aid, signaling growing tensions between the state and the Trump administration.
Wildfire Aid to Come with Strings Attached
California Governor Gavin Newsom recently requested nearly $40 billion from Congress to support communities devastated by wildfires in the Los Angeles area.
However, Grenell, a California native and White House special envoy, suggested that the aid package should come with conditions aimed at reshaping California’s governance.
In an interview with Politico, Grenell said:
“Squeezing their federal funds, making sure they don’t get funds, putting strings on them to get rid of the California Coastal Commission is going to make California better.”
Grenell criticized the California Coastal Commission—an agency that regulates land use along the state’s coastline—calling it an unelected group of “crazy woke left” individuals. Discussions are reportedly underway in the administration to determine what conditions will be attached to future aid.
SpaceX vs. California Coastal Commission
The tensions between Musk and the California Coastal Commission stem from disputes over SpaceX’s launch site expansion at Vandenberg Space Force Base. The commission has denied requests to increase launch activity, citing environmental concerns.
- SpaceX plans to ramp up launches from Vandenberg to 100 per year.
- The commission’s decision has led to two lawsuits from SpaceX.
- The U.S. Air Force is currently accepting public feedback on the potential environmental impact of expanding launch operations.
Musk’s frustration with California’s regulatory environment is believed to be a driving force behind his support for a DOGE initiative in the state.
DOGE Programs Expand to State Level
While California remains at odds with federal officials over efficiency and funding, several Republican-led states are already embracing the DOGE model:
- Florida Governor Ron DeSantis is establishing a DOGE task force to cut 740 state jobs and eliminate 70 state boards. The state will also begin using artificial intelligence (AI) to review government contracts.
- Oklahoma, Texas, and New Hampshire have announced similar plans to bring government efficiency reforms to their state governments.
Grenell’s support for DOGE expansion beyond federal operations aligns with a growing trend among Republican governors to reduce government spending, streamline operations, and cut what they view as unnecessary bureaucracy.