Investing.com-- The recently formed Department of Government Efficiency will scrutinize multi billion-dollar loans to a Stellantis joint venture and Rivian from the government, Vivek Ramaswamy said on Monday evening.
Ramaswamy, who will lead the department along with Tesla (NASDAQ:TSLA) CEO Elon Musk, said President Joe Biden’s “midnight spending spree is illegitimate and should be rescinded.” He added that DOGE will scrutinize recent spending by the Biden administration after Donald Trump takes office in January.
Specifically, DOGE will look into a $7.5 billion Department of Energy loan to StarPlus Energy- a joint venture between Samsung (KS:005930) and Stellantis NV (NYSE:STLA) that plans to build batteries for electric vehicles through two plants in Indiana, Ramaswamy said in a social media post.
The agency will also look into a recently announced $6.6 billion loan to EV maker Rivian Automotive Inc (NASDAQ:RIVN) to help complete an upcoming factory in Georgia.
Both loans were part of the DOE’s Advanced Technology Vehicles Manufacturing program, which was aimed at promoting EVs and clean energy technologies. Tesla had also received a loan under the program in 2010.
Trump announced the formation of DOGE as an extra-governmental agency that will advise congress on spending and potentially streamlining government agencies. Musk claimed that the agency will be able to cut spending by $2 trillion.
But analysts questioned just how many changes the agency will be able to enact, given that any sweeping cuts to government spending still require Congressional approval, where the Republicans hold a slim majority.