Analyzing the Creation of the U.S. Department of Government Efficiency, Administrative Reform, and Implications for Korea

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

DOGE’s single most important policy is regulatory reform. The Trump administration adopted a “1-for-10 regulatory repeal principle,” requiring that whenever a new regulation is enacted, at least 10 existing regulations must be repealed. At the same time, it mandated that the total net cost of newly issued regulations be kept below zero, in an effort to prevent a quantitative increase in regulation and limit the costs imposed on the private sector. In addition, each department introduced a system requiring annual reporting of regulatory costs and a reexamination of the validity of administrative regulations. In particular, regulations meeting seven criteria—including constitutional violations, administrative regulations lacking statutory basis, and excessive burdens on the private sector—were classified as priority targets for withdrawal. These regulatory reforms reportedly produced savings of $28.8 billion, and approximately 800,000 words were deleted from regulatory documents.

DOGE also pursued aggressive reforms in fiscal management and spending. Details of federal government contracts, grants, and loan expenditures were required to be registered in a central record system, and all expenditures had to be accompanied by a brief statement of reasons. A system was introduced under which spending would automatically be put on hold if such a statement was not submitted, thereby strengthening transparency and accountability in the use of public funds. At the same time, large numbers of unnecessary grants and contracts, or those not aligned with the national interest, were canceled. As a result, about 10,800 contracts were terminated, more than 15,000 grants were ended, and total savings of $175 billion were generated. The savings per taxpayer are estimated at about $1,087.

Workforce restructuring was also a major reform task for DOGE. The federal government limited hiring to one new employee for every four retirees, and maintained a complete hiring freeze at certain agencies such as the Internal Revenue Service. In particular, departments carrying out DEI (diversity, equity, and inclusion) programs or functions not required by law became priority targets for restructuring, and contracts with temporary workers and rehired pension recipients were also phased out. These measures were intended to prevent organizational bloat and maximize bureaucratic efficiency.

The Trump administration’s DOGE policy is regarded in the United States as a representative attempt to realize “small government.” The Korean government likewise pursued a “small and efficient government” under the Kim Dae-jung administration in the past, but under subsequent governments, personnel and organizational size have continued to increase. The case of DOGE in the United States offers several important implications for Korea.

First, it underscores the need for a dedicated department or control tower to oversee administrative reform in its entirety. In Korea, the Office for Government Policy Coordination and the Regulatory Reform Committee have performed similar functions, but their coordinating role has been limited by the independence and departmentalism of individual ministries. Accordingly, there is a need to establish an administrative reform department directly under the president with strong implementation authority.

Second, there is a need to introduce a digital, performance-disclosure system for administrative reform. Through its dedicated website, DOGE discloses quantified information such as taxpayer savings, the number of terminated contracts, and the number of repealed regulations, helping satisfy the public’s right to know and enhancing confidence in government policy.

Third, alongside a total regulatory cap by ministry and agency, there is a need for practical regulation-improvement, withdrawal, and repeal-centered policies such as the 1-for-10 regulatory repeal principle and management aimed at reducing net regulatory costs to zero.

Finally, specific measures for spending efficiency and workforce restructuring—such as strengthened prior review of contract and grant spending, tighter control of unnecessary business travel, termination of real estate leases, and organizational consolidation and integration—are also matters that the Korean government should consider.

The Trump administration’s DOGE activities and administrative reform are highly valuable as a reference not only for the visible and substantive implementation of administrative reform, such as restructuring and cost reduction, but also in terms of securing citizen-centered transparency and ensuring government accountability.

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

1. The Establishment of the Department of Government Efficiency and the Promotion of Administrative Reform by the Trump Administration in the United States

2. The Need to Discuss “Small Government,” Including the Establishment of the U.S. Department of Government Efficiency and the Promotion of Administrative Reform

II. Current Status of the U.S. Department of Government Efficiency and Administrative Reform Centered on Presidential Executive Orders

1. Presidential Executive Order (2025.01.20.): Establishment and Implementation of the Department of Government Efficiency

2. Presidential Executive Order (2025.01.31.): Unleashing Prosperity Through Deregulation

3. Presidential Executive Order (2025.02.11.): Implementing the President’s “Department of Government Efficiency” Workforce Optimization Initiative

4. Presidential Executive Order (2025.02.19.): Ensuring Lawful Governance and Implementing the President’s “Department of Government Efficiency” Deregulatory Initiative

5. Presidential Executive Order (2025.02.26.): Implementing the “Department of Government Efficiency” Cost Efficiency Initiative

6. Presidential Executive Order (2025.03.14.): Continuing the Reduction of the Federal Bureaucracy

7. Fact Sheet (2025.02.18.): President Donald Trump Directs That the Public’s Right to Know About Wasteful Spending Be Guaranteed

III. Current Status of the Achievements of U.S. Department of Government Efficiency Activities

1. Savings

2. Regulations

3. Federal Government Spending and Revenue, Fiscal Deficit

4. Reduction in Civil Servants and Personnel Costs

IV. Analysis of Administrative Reform by the Trump Administration in the United States and Implications for Korea

1. Analysis of Department of Government Efficiency Activities and Administrative Reform by the Trump Administration in the United States

2. Implications for Korea

V. Conclusion: Suggestions on the Direction of Regulatory Reform and Government Efficiency Under the New Government

References

Wiki:

https://www.cfe.org/w/bbsDetail.php?&idx=47

---

Original title: 미국 정부효율부 설립과 행정개혁 분석 및 한국적 시사점

Author: Gwang yong Go

Date: 2025-06-05

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=report&pn=1&idx=27777