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16 Feb 2025 4:21
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  •   Home > News > International

    Elon Musk's DOGE agency is at the centre of controversy in the US. So what is it?

    There has been an escalation in the legal battles over billionaire Elon Musk's new US government efficiency agency. Here's what we know about DOGE.


    It's not a cryptocurrency or the renowned internet meme.

    But Elon Musk's DOGE has been making global headlines recently, sparking questions around why the world's richest person has decided to centre himself in US politics.

    The creation of the Department of Government Efficiency, or DOGE, was the next step in the so-called bromance between the billionaire and US President Donald Trump.

    And Mr Trump put more power into the hands of the tech mogul by signing an executive order this week, enforcing all federal agencies to cooperate with DOGE.

    It's escalated the legal fight over Mr Musk's influence in the White House, with a group of state attorneys-general alleging the president gave Mr Musk "unchecked legal authority" without Congress's approval.

    But, what actually is this new agency and what is Elon Musk's end game?

    What is Elon Musk's DOGE?

    Mr Trump created DOGE in a barrage of executive orders that he signed on January 20.

    The agency's main task is to slash federal spending, with the president appointing Mr Musk as his cost-cutting tsar.

    DOGE was originally headed by Mr Musk and former Republican presidential candidate Vivek Ramaswamy, but Mr Ramaswamy left DOGE amid plans to run for governor of Ohio.

    The pair promised to cut billions from the federal budget and usher in "mass headcount reductions across the federal bureaucracy".

    Despite the name, this new task force isn't actually a government department.

    This means this agency plays more of an advisory role, rather than being an official department established through Congress, with Mr Trump saying it will "provide advice and guidance from outside of government".

    The White House has also said Mr Musk is a special government employee, meaning he doesn't get paid and is only allowed to work 130 days or fewer in a year.

    This essentially allows Mr Musk to work for the federal government, while possibly avoiding disclosure rules about conflicts of interest and finances that apply to regular government employees.

    What has DOGE done under the Trump administration?

    Since Mr Trump established the task force, Mr Musk has dispatched members of DOGE to scrutinise sensitive personnel and payment information in government systems.

    The agency claims to have saved taxpayers $US37.69 billion ($59.33 billion) since starting its work. However it has provided evidence to support that figure.

    This massive government makeover has led to concerns about the president trying to secure more loyalists within federal agencies.

    Former Congressional Budget Office director Republican Douglas Holtz-Eakin has said Mr Musk and the president are not going into agencies that they like, but rather "agencies they disagree with".

    But the White House has insisted that DOGE is "extremely transparent," sharing examples of its work so far such as cancelling contracts and ending leases for underused buildings.

    And Mr Musk made a rare appearance in the Oval Office this week to defend the agency's extensive cuts.

    But what are some of the main things DOGE has done so far?

    Federal workers offered buyouts

    The US government sent buyout offers to about 2 million federal workers, including to those in intelligence agencies such as the CIA.

    A buyout is essentially when an employee receives some benefits, such as pay for a period of time, in exchange for agreeing to resign.

    Mr Trump says it's all part of his plan to downsize bureaucracy within the government.

    While unions have urged members not to accept the offer, a White House official says more than 65,000 federal employees have signed up to the buyout.

    But these plans have been blocked by a US judge, preventing the administration from imposing the plan temporarily.

    The agency also claims to have saved the US economy $US1 billion by scrapping diversity equity and inclusion (DEI) programs.

    USAID employees put on leave

    DOGE had planned to put roughly 2,200 US Agency for International Development (USAID) employees on leave and also shut down the agency's website.

    Mr Musk has called USAID a "criminal organisation".

    In 1961, then-US president John F. Kennedy set up USAID to promote social and economic development through foreign aid.

    Since then, the agency has used taxpayer money provide basic health care and chronic disease treatment to people overseas.

    The US provided 42 per cent of all humanitarian aid tracked by the United Nations in 2024.

    Mr Trump froze USAID funding in late January, leading to the sudden suspension of medical clinics across the world.

    However, a federal judge has this week ordered the Trump administration to pause the funding freeze, temporarily allowing foreign aid.

    Access to sensitive information

    DOGE has attempted to access systems related to the US Department of Treasury Systems, raising concerns about sensitive information being improperly disclosed.

    The DOGE team's work has allowed it to access millions of Americans' personal and financial data, such as social security numbers.

    A coalition of mostly Democratic-led states has filed a lawsuit arguing DOGE has no legal power to access the US Department of Treasury systems.

    The lawsuit also argues Mr Musk and his team may disrupt federal funding for health clinics, preschools, climate initiatives and other programs.

    It has led to a US judge issuing an emergency order blocking DOGE from accessing Treasury Department payment systems.

    Democrats have also pressed the secretary of energy on whether DOGE employees have access to classified information on nuclear weapons.

    Energy Secretary Chris Wright has told CNBC that DOGE members do not have security clearances and are not looking at nuclear weapons secrets.

    What is Elon Musk's end game?

    It's the big question many have been wondering, but no-one really knows the answer.

    Griffith University political scientist Lee Morgenbesser believes the billionaire is trying to enrich himself by being around the president.

    The State Department had been in talks with Mr Musk's Tesla to buy armoured electric vehicles, but the plans were put on hold after reports about a potential $US400 million purchase emerged.

    Dr Morgenbesser says Mr Musk's access to key systems is a "massive conflict interest" but it's something the president seems to be fine with.

    "He's positioning his corporations and those of other billionaires that support Trump to be the first in the pecking order, a seat at the table, so to speak," he said.

    "And so they will enrich themselves, even if they are not the best corporation or company to do the work that United States government is paying him to do."

    US journalist Kara Swisher has interviewed Mr Musk several times.

    She agrees with Dr Morgenbesser, saying the billionaire is hoping to gain "unprecedented power for himself, his companies and his cronies".

    "Elon is the heavy. Elon does the dirty work, and then they go from there," she told ABC Radio National's Fran Kelly.

    "So it's really hard for me to imagine why he's not useful to Donald Trump, because he has the money which he can threaten congresspeople with … they have an ability to … scare people."

    Is Elon Musk orchestrating a coup?

    In its simplest terms, a coup is defined by the following:

    A sudden illegal, often violent, taking of government power, especially by part of an army

    Ms Swisher describes the actions of Mr Musk as a "quiet coup".

    The word coup has been thrown around by experts recently as the billionaire as has made his way into the White House.

    But Dr Morgenbesser says Mr Musk's recent actions under DOGE qualify as state capture:

    A process where private entities use their power to influence policies and regulations to benefit their own interests

    Dr Morgenbesser says the best way to think of this process is "like legalised corruption".

    He adds that Mr Musk hasn't shown an intention to "violently remove Trump from office", but he warns that state capture is still concerning.

    "You have worse decisions by those that are put in power," he said.

    "You also have less accountability and less transparency about decisions … less decisions made in the public good and more decisions made for the benefit of sort of this kleptocratic class of billionaires."

    What can we expect next from DOGE?

    Dr Morgenbesser expects DOGE to go into some of the bigger government departments next, such as defence.

    With growing criticism about the lack of information around DOGE, he says the task force will likely also "get more organised on how they sell things to the American people".

    And Dr Morgenbesser believes there are going to be more tech billionaires getting involved with DOGE over the next few months.

    "I think there's a big role to play in terms of artificial intelligence … a lot of the AI companies are going to start positioning themselves to be the answer to the problem that Musk is trying to fix," he said.

    "So once you gut the federal bureaucracy, you then have to retool it, rebuild it, reform it in some way.

    "I think companies are going to be lining up to do that, with the caveat that those companies are loyal to Trump."


    ABC




    © 2025 ABC Australian Broadcasting Corporation. All rights reserved

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