Elon Musk’s DOGE co-head Vivek Ramaswamy expected to quit Trump administration task force amid Ohio gubernatorial race – Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC)

Vivek Ramaswamypresident-elect co-leader Donald TrumpThe head of the Department of Government Effectiveness is expected to resign, potentially complicating the administration’s ambitious federal spending reduction targets.

what happened: Ramaswamy, 39, plans to run for Ohio governor by the end of the month, CBS News reported, citing multiple sources. Ramaswamy’s departure as co-leader of DOGE, Tesla Inc. Tesla CEO MuskBudget reduction expectations were recently lowered from $2 trillion to a more modest $1 trillion target.

In a recent interview with X, Musk described the lowered goal as “epic” if achieved.

The leadership change has drawn concern on Wall Street, although analysts remain optimistic about its impact on the defense sector.

Truist Securities analyst Michael Ciarmoli initiated the Lockheed Martin LMT and Northrop Grumman Corporation National Olympic Committee With a buy rating, it described concerns related to DOGE as “overblown” given the advisory nature of the unit.

Ramaswamy did not immediately respond to Benzinga’s request for comment.

See also: TikTok back online in US after Trump’s executive order on Monday

why it’s important: Internal dynamics are fueling friction between Ramaswamy and new DOGE staff, with Musk’s colleagues privately expressing frustration with Ramaswamy’s limited involvement in key initiatives, according to the report.

The department, while not a full federal agency, is tasked with making recommendations on cutting bureaucracy and cutting federal spending, and has been given until July 2026 to complete the work.

Market observers note that previous attempts to slash federal spending have been met with resistance in Congress, with even the most modest proposals struggling to gain traction.

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