Trump adopts Elon Musk plan for government reform, lays out economic blueprint ahead of Harris debate

NEW YORK — Former President Donald Trump on Thursday unveiled a new batch of economic policy proposals that include Tesla CEO Elon Musk's idea of creating a government efficiency commission to eliminate wasteful federal spending, a shot at the Biden-Harris administration's spending levels.

"This commission will develop an action plan to totally eliminate fraud and improper payments within six months," Trump said in a speech to a room full of business executives at the Economic Club of New York.

"When Elon started the conversation with the president, I think the president was very excited that somebody like Elon Musk is so dedicated to America's future that he would be willing to be a part of something to help the government work more efficiently," Trump campaign advisor Brian Hughes said on a call with reporters ahead of the former president's speech.

Hughes added that details on how the efficiency commission would be staffed and operated are yet to come.

But Musk has repeatedly raised his hand to helm such a commission: "I look forward to serving America if the opportunity arises. No pay, no title, no recognition is needed," the billionaire entrepreneur reiterated in a Thursday post on X.

Trump's embrace of Musk's idea is the latest signal of their warming alliance, a stark pivot from just two years ago when the two were enthralled in a public feud, openly exchanging insults at each other.

The government efficiency commission also gives Trump a concrete proposal to attach to his attacks against what he sees as frivolous spending in the Biden-Harris administration.

"It's time to send Comrade Kamala Harris back home to California," Trump said during his Thursday speech. "She wants four more years to enforce the radical left agenda that poses a fundamental threat to the prosperity of every American family and America itself. We're talking about America itself."

During the speech, Trump also doubled down on his previous proposals to lower the corporate tax rate to 15% and to repeal certain pockets of funding from President Joe Biden's Inflation Reduction Act.

"I am promising low taxes, low regulations, low energy costs," Trump said.

Trump also lauded his own first-term accomplishments, including imposing a hardline tariff policy against China and cutting the corporate tax rate to 21% from its 35% rate.

"I took care of our economy [as] I would take care of my own company," Trump said.

So far, Trump's economic proposals come with their own set of hefty price tags, such as his plan to impose across-the-board tariffs on all imports, which has faced backlash from economists and Wall Street analysts.

The Thursday speech comes as Trump works to sharpen his policy pitch five days before he is scheduled to face off against Harris in a debate hosted by ABC News on Sept. 10.

— CNBC's Josephine Rozzelle contributed to this report.

This is a developing story. Check back for updates.