Johns Hopkins economist Steve Hanke is urging President Donald Trump to create a Government Transformation Task Force by executive order, arguing Washington needs a new "fiscal Constitution" to impose discipline on a federal government he says has grown beyond effective control.
Top Economist Tells Trump How to ‘Fix’ the US Government, Calls for Executive Order Creating a Task Force to Rewrite America’s Fiscal Rulebook
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Steve Hanke urges Trump to create task force for fiscal reform, citing $40 trillion debt. Calls for constitutional fix and restructuring.
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Hanke Proposes New Fiscal Constitution Task Force
"To once again establish fiscal rules and rein in the federal government, Trump should create a Government Transformation Task Force by Executive Order," Hanke wrote on X, quoting a Fortune op-ed he co-authored with former U.S. Comptroller General David Walker. The task force, he said, could recommend "consolidation, termination, devolution, privatization, partnership, and expansion actions."
Hanke and Walker argue Washington is "flying blind" because it lacks enforceable fiscal restraints and outcome-based measures. Their proposal would bring public- and private-sector restructuring experts together to compare agencies’ work with constitutional and statutory mandates, then develop economic, diplomatic, security and domestic performance indicators.
The recommendation follows Hanke’s recent call for a limited Article V constitutional convention to create a binding "debt brake."
US Deficit Deepens As Debt Pressures Mount
The fiscal backdrop has become harder to ignore. The Congressional Budget Office projects a $1.9 trillion federal deficit in fiscal 2026, equal to 5.8% of GDP, with debt held by the public at 101% of GDP. CBO expects that ratio to climb to 120% by 2036 as rising interest costs widen deficits.
Reuters reported Wednesday that the U.S. posted a record $432 billion July deficit, pushing the fiscal-year-to-date gap to $1.799 trillion with two months remaining. Gross federal debt is nearing $40 trillion, adding urgency to Hanke’s warnings. The economist has been calling for a constitutional fix to the problem since May when public debt topped 100% of GDP.
Plan Seeks Broader Overhaul Beyond DOGE
Hanke and Walker contrast their plan with earlier efficiency drives. Trump created the Department of Government Efficiency by executive order in January 2025 to modernize federal technology and improve productivity. It was later reported that DOGE disbanded ahead of its scheduled July 2026 expiration.
Hanke, who served as a senior economist on President Ronald Reagan’s Council of Economic Advisers, wants Trump to go beyond another cost-cutting campaign. His proposed task force would effectively rewrite Washington’s fiscal rulebook by deciding what government should keep, merge, return to states, privatize or eliminate.
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