Washington DC - Tech billionaire Elon Musk, who has been tapped by President Donald Trump to lead federal cost-cutting efforts, said Tuesday that the US would go "bankrupt" without budget cuts.

Musk leads the efforts under the newly created Department of Government Efficiency (DOGE) and was speaking at the White House with Trump, who has, in recent weeks, unleashed a flurry of orders aimed at slashing federal spending.

In particular, Musk took aim at the country's budget deficit, which topped $1.8 trillion in the last fiscal year.

He said that reducing federal expenses was not optional.

Elon Musk Elon Musk demands impeachment of judge that blocked DOGE access to US Treasury

The remarks, however, came as the Trump administration finds itself on a collision course with the US courts, as federal judges questioned the legality of White House cost-cutting measures.

Trump's sweeping plans, which have effectively shuttered some federal agencies and sent staff home, have sparked legal battles across the country.

Multiple lawsuits seek to halt what opponents characterize as an illegal power grab.

Asked about his conflicts of interest on Tuesday, Musk, who also heads SpaceX – which has multiple US government contracts – and Tesla, said he is seeking to be as transparent as possible.

The DOGE reform team has triggered alarm among critics as well by gaining access through the US Treasury to the personal and financial data of millions in the US.