From Yahoo Finance: 2025-05-31 18:00:00

Elon Musk is stepping back from his involvement with the Department of Government Efficiency (DOGE) to focus on his business ventures. This may signal a shift in political focus on cost-cutting, budget proposals, tax code changes, and entitlement debates affecting middle-class Americans.

President Trump’s budget cuts funding for housing, education, and food programs while increasing defense and infrastructure spending. Middle-class Americans may receive less support from government programs and minimal tax relief, with top earners benefiting more from tax cuts.

With potential policy shifts and economic volatility, middle-class households should bolster emergency savings. Financial experts recommend saving three to six months’ worth of living expenses to navigate unforeseen challenges due to changes in federal programs or economic downturns.

DOGE’s initiatives aimed to reform entitlement programs, but discussions continue without Musk. Possible changes could impact healthcare coverage for millions, prompting middle-class Americans, especially those nearing retirement, to stay informed and consult financial planners.

Layoffs at DOGE could affect the economy, with uncertainties around workforce reductions and government service disruptions. Market analysts recommend maintaining a diversified portfolio to protect against market volatility and policy-driven economic fluctuations amid federal policy uncertainties.

Understanding federal initiatives like DOGE is crucial for middle-class Americans. By staying informed and consulting financial advisors, individuals can anticipate policy changes proactively, advocate for their financial interests, and make informed decisions to achieve long-term financial goals.



Read more at Yahoo Finance: 5 Money Moves the Middle Class Should Make as Elon Musk Steps Down From DOGE