The new department has been conceived as a "SWAT team" comprised of able former business executives. Trump hopes it will be able to implement ideas from the business world to improve the work of the federal government.
The new office is particularly focused on innovation in technology and data and is working with tech giants such as Apple CEO Tim Cook, Microsoft founder Bill Gates, Tesla founder and CEO Elon Musk and Salesforce CEO Marc Benioff, the Washington Post reported.
Kushner told the newspaper that the administration wants to borrow some principles of government from the private sector.
"The government should be run like a great American company. Our hope is that we can achieve successes and efficiencies for our customers, who are the citizens," Kushner said.
The White House has said that more details about the new office will be announced on Monday.
Vladimir Bruter, a political analyst at Russia's International Institute of Humanities and Political Research, told RT that Kushner's role as the head of the new department demonstrates the belief that Trump has in him.
"I think that Jared Kushner and his wife Ivanka are people who the President trusts a lot and are very helpful for him. Strictly speaking, from the very beginning, Kushner received the status of presidential assistant in a very complex area, the Middle East peace process. It's very important to have somebody next to you who shares your views and can give the right advice at a critical moment and in the right direction," Bruter said.
"The failure to abolish Obamacare has already shown that the administration needs to strengthen its lobbying efforts. If Trump's administration had been more attentive to opposition-minded Republicans, a solution would have been found in Congress. Therefore, Trump needs to consolidate all the forces at his disposal," Bruter said.
Political analyst Victor Olevich said that the creation of the new office is logical given Trump's pre-election promise to bring business know-how to the White House.
"The creation of a new White House department, an office of innovation, is entirely logical. During his election campaign, Donald Trump promised to fix relations between the state and business and make American bureaucracy more economical, cheaper and more effective. And to attract business in order to achieve this," Olevich said.