In this DealBook newsletter installment, The New York Times details how Elon Musk’s aggressive drive for cutting government bureaucracy may be hitting its limits. Musk’s latest initiative—forced accountability measures that demand government workers justify every expense by midnight—has sparked mounting resistance among federal agencies and unions. From Pentagon officials instructing employees to “pause any response” to union leaders condemning his tactics as “plainly unlawful,” the backlash signals growing frustration with Musk’s style, even among Trump loyalists managing these agencies. Meanwhile, debates swirl around the implications of these cost-cutting efforts for government expertise and broader economic policies, all while other major stories—from Apple’s $500 billion U.S. investment to tense U.S.-Ukraine resource negotiations—complicate an already dynamic policy landscape.

Key points:

• Elon Musk’s directive for government workers to justify each expense by midnight is facing fierce pushback.
• A top Pentagon official advised employees, “For now, please pause any response,” highlighting the growing resistance within federal agencies.
• Government leaders, including those appointed by President Trump, express frustration over dealing with Musk’s “brutal management style.”
• The American Federation of Government Employees condemned the move as “plainly unlawful,” emphasizing concerns over the impact on public service values.
• The clash underscores limits to applying private-sector tactics in a slower, unionized federal bureaucracy.
• Alongside this story, the newsletter touches on major shifts in the broader market and policy arena, including Apple’s pledge to invest $500 billion in the U.S. and tense U.S.-Ukraine negotiations over resource trading.

Enjoy this deep dive into how bold corporate moves intersect with government inertia in the latest episode of our podcast!
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