Department of Government Efficiency (DOGE) Reshapes Federal Operations

Just days after President Donald Trump’s second inauguration, billionaire Elon Musk assumed control of the newly established Department of Government Efficiency (DOGE). The agency has initiated widespread changes, affecting multiple government departments, terminating contracts, and sparking legal and political debates over its methods.

The United States Agency for International Development (USAID) has been particularly affected, with nearly 7,000 employees placed on leave or dismissed. The agency was temporarily suspended, and its website was taken offline, affecting global humanitarian aid programs. Legal challenges have since emerged, with a judge issuing a temporary restraining order to prevent further dismissals.

Under Trump’s directive, DOGE has been planning significant workforce reductions across various agencies, including the Department of Education, the Small Business Administration, and the General Services Administration. Thousands of employees, particularly those on probation, have reportedly been dismissed as part of an effort to streamline operations.

Federal contracts considered inefficient or unnecessary have also been terminated. While Musk argues that these cancellations improve transparency and reduce waste, critics contend that the agency’s disclosures lack crucial details. A newly launched DOGE website lists the terminated contracts but provides minimal information. In one instance, DOGE claimed to have saved $165 million across six agencies in a single day, though independent analysts have raised questions about the accuracy of these figures.

In addition to workforce reductions, DOGE has played a key role in eliminating diversity, equity, and inclusion (DEI) programs. Several DEI-related contracts have been cut, including a $45 million scholarship program for Burmese students and $116 million in DEI training grants issued by the Department of Education. The department claims to have identified over $1 billion in savings from these cancellations.

Another major initiative under DOGE has been the downsizing of federal office space. Working in collaboration with the General Services Administration, the agency has moved to terminate thousands of leases. In early February, DOGE announced that canceling nearly two dozen office leases had resulted in savings of $44.6 million, though transparency regarding the specific offices affected has been limited.

One of the most controversial actions taken by DOGE has been its access to the Treasury Department. Musk’s team was granted entry into the federal payment system, which disburses trillions of dollars each year. The administration argues that this move enhances fraud prevention efforts, but legal challenges have been filed over concerns regarding privacy and potential conflicts of interest. A court filing revealed that a DOGE staffer was mistakenly given edit access to Treasury systems, though no unauthorized changes were made before access was revoked. Despite this, watchdog groups have launched lawsuits to restrict DOGE’s access to sensitive taxpayer data.

Another federal agency experiencing significant disruption is the Consumer Financial Protection Bureau (CFPB). Following the dismissal of its director, the agency has been effectively paralyzed, with Musk suggesting that it may be dismantled entirely. Employees have been instructed to halt operations, prompting lawsuits from federal employee unions.

The Department of Education has not been left out, particularly regarding student loan data. Reports indicate that DOGE operatives were granted access to federal student loan records, raising concerns among lawmakers and advocacy groups over data security and the potential for politically motivated changes to federal education policy.

In the aviation sector, DOGE had access to Federal Aviation Administration (FAA) technologies to facilitate what Musk describes as “rapid safety upgrades.” While efforts to enhance safety are broadly supported, critics warn that Musk’s involvement could lead to conflicts of interest, given his ownership of SpaceX, which operates under FAA regulations.

DOGE’s influence has also extended to the Centers for Disease Control and Prevention (CDC), where reports suggest that the agency has requested detailed personnel records. This has raised concerns about potential political interference in public health decision-making.

Also, DOGE has been granted read-only access to Medicare and Medicaid systems. The administration insists that the purpose of this initiative is to identify fraud. But, critics argue that it could lead to fundamental changes in healthcare programs relied upon by millions of Americans.

The Department of Energy (DOE) has also been affected, with reports indicating that a former SpaceX intern was granted access to basic DOE IT systems without a formal background check. Given the department’s role in managing nuclear security, this revelation has sparked concerns among cybersecurity experts.

At the Environmental Protection Agency (EPA) and the Federal Emergency Management Agency (FEMA), DOGE has been granted read-only access to EPA contracting data; four FEMA officials were dismissed following DOGE allegations of misused disaster relief funds. Opponents argue that these actions threaten critical public services.

At the Department of Veterans Affairs (VA), DOGE has sought to streamline spending by removing gender identity-related content from department materials. Meanwhile, the agency canceled $8 million worth of Politico subscriptions, following growing speculation in right-wing circles about government funding for media outlets.

DOGE’s sweeping reforms have led to numerous lawsuits and congressional investigations. Critics argue that Musk’s authority within the agency consolidates excessive power, while supporters praise the initiative’s aggressive cost-cutting measures. As DOGE continues its mission to reshape the federal government, its long-term effects remain uncertain, with legal and political battles still unfolding.