Topline
One of the workers at Elon Musk’s Department of Government Efficiency most involved in the agency’s access to the Treasury Department’s payment system reportedly resigned Thursday after racist social media posts tied to him surfaced—the latest in the line of controversy and criticism surrounding DOGE.
U.S. Senate Majority Leader Chuck Schumer (D-NY) speaks to a crowd gathered in front of the U.S. … [+]
Timeline
Marko Elez, one of the two primary DOGE emissaries embedded in the Treasury Department, resigned from the Musk-led agency, the White House told The Wall Street Journal, after the publication uncovered Elez’s ties to a since-deleted X account with racist posts including calling for “eugenic immigration policy” and to “normalize Indian hate.”
The 25-year-old Elez previously worked for Musk’s X and SpaceX, according to the Journal.
Forbes contacted the White House for comment on Elez.
Treasury Secretary Scott Bessent told Bloomberg DOGE is not “tinkering” with the government payment systems the agency has access to, and Musk’s agency is conducting an “operational review” of government payments, not an “ideological review” (Musk’s statements have often veered toward the latter, calling the U.S. Agency for International Development a “criminal organization.”)
“Elon and I are completely aligned in terms of cutting waste and increasing accountability and transparency for the American people,” Bessent added.
People with ties to DOGE are using AI—accessed via Microsoft’s Azure service—to sort through Education Department data with “personally identifiable information for people who manage grants, as well as sensitive internal financial data” while they look for ways to save the government money across departments, The Washington Post reported, citing two unnamed people (a department spokesperson told the Post they’re looking for efficiencies, and there’s “nothing inappropriate or nefarious”).
Judge Colleen Kollar-Kotelly approved an agreement that grants Tom Krause and Marko Elez—two Musk associates working as special government employees—the ability to see Treasury Department data “as needed” on a read-only basis.
The agreement is a temporary fix that will remain in place until Kollar-Kotelly makes a further judgment on the lawsuit, which was brought by nonprofits and unions seeking to limit DOGE’s access to the Treasury Department’s private financial data.
DOGE workers have access to employee data from the Office of Personnel Management, essentially the federal government’s human resources arm, The Washington Post reported Thursday, citing four anonymous U.S. officials—the data includes addresses, demographics and Social Security numbers, and DOGE’s access includes the ability to edit employee records (there’s no evidence DOGE staff have edited any records).
Justice Department lawyers agreed Wednesday to a proposal that would limit DOGE’s access to the critical Treasury payment system following a lawsuit, with only two Musk associates now permitted to have “read-only” access.
The Centers for Medicare and Medicaid Services released a statement on its collaboration with DOGE and said two senior agency veterans are working with DOGE and they are “taking a thoughtful approach to see where there may be opportunities for more effective and efficient use of resources in line with meeting the goals of President Trump.”
Musk quote-tweeted a post on X, formerly known as Twitter, with a screenshot of The Wall Street Journal’s reporting on DOGE being at Medicare and said, “Yeah, this is where the big money fraud is happening.”
DOGE team members were onsite at the Centers for Medicare and Medicaid Services to look for fraud or waste, Bloomberg and The Wall Street Journal reported, citing people familiar with the matter who said DOGE representatives had access to payment and contracting systems.
The Treasury sent a letter to Congress stating it is “committed to safeguarding the integrity and security of the system” and the “Fiscal Service is confident those protections are robust and effective,” adding that Tom Krause, who is affiliated with DOGE but is a Treasury employee, has “read-only access to the coded data of the Fiscal Service’s payment systems” in an effort to review efficiency.
Sens. Elizabeth Warren, D-Mass., and Ron Wyden, D-Ore., requested the Government Accountability Office investigate Bessent’s “decision to grant access to sensitive government payment systems to Elon Musk and other” DOGE employees, specifically asking them to identify if there are guardrails in place to protect “economic and national security and Americans’ privacy” and ensure there are no conflicts of interest with Musk.
Senate Democrats held a news conference at which they expressed their concern about Musk getting access to the federal payment system, with Senate Minority Leader Chuck Schumer, D-N.Y., saying “an unelected shadow government is conducting a hostile takeover of the federal government,” and Sen. Patty Murray, D-Wash., saying Musk was “hijacking our nation’s most sensitive financial systems and its checkbook.”
The American Federation of Government Employees and other unions sued the Treasury Department in an effort to reduce DOGE’s access to Treasury data.
The Associated Press and The New York Times reported Bessent granted DOGE access to the sensitive Treasury data, giving Musk a “powerful tool to monitor and potentially limit government spending,” according to the Times.
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What Is Doge?
Musk floated the idea of DOGE in September before Trump was elected, and shortly after, Trump said he would create it and have Musk lead it. After he won the election, Trump appointed Musk and Vivek Ramaswamy to lead the commission and advised them to “slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.” DOGE was officially created via an executive order on Trump’s first day in office that restructured an existing entity, the U.S. Digital Service, to be the U.S. DOGE Service. It is not a new federal agency or department, and many members of the team are designated as “special government employees,” according to the Congressional Research Service.
What Authority Does Doge Have?
There is no clear outline in the executive order establishing DOGE about what authority it has. Per the order, the role of it is “to implement the President’s DOGE Agenda, by modernizing Federal technology and software to maximize governmental efficiency and productivity.” The order said the DOGE administrator will work with agency heads to improve the efficiency of software and how agencies work with each other and collect data. DOGE officials have reportedly been gaining access to sensitive data and information upon request.
Does Elon Musk Work For The Government?
Musk is a “special government employee.” The Justice Department defines the role as any employee expected to work for the federal government for up to 130 days, and they are prohibited from participating in matters that may have financial conflicts of interest or from using their role to influence an election or engage in political activity while on duty. The role of a special government employee is subject to most rules and guidelines that apply to federal employees, but they can be “less restrictive” because the role is temporary. Musk is reportedly not being paid for his work in the White House.
Who Is Working For Doge?
It’s unclear who works for DOGE. On Nov. 14, 2024, DOGE’s account on X asked people to direct message the account with their resumes if they were “super high-IQ small-government revolutionaries willing to work 80+ hours per week on unglamorous cost-cutting.” On Feb. 2, Wired published an article alleging they were able to identify six engineers between the ages of 19 and 24 working for DOGE who had ties to other Musk companies or billionaire Peter Thiel. Katie Drummond, Wired’s global editorial director, told CNN “it’s a little bit difficult to ascertain exactly what they are doing,” but Wired was able to determine they are “working at the behest of Musk … on a number of engineering related tasks.” But, in a letter sent from eight Senate Democrats to White House Chief of Staff Susie Wiles requesting more information on what DOGE is doing, the lawmakers said “no information has been provided to Congress or the public as to who has been formally hired under DOGE.”
What Departments Is Doge Working In?
DOGE has appeared to so far do most of its work with the USAID, which Musk has said—without evidence—is “incredibly politically partisan” and a “radical-left political psy op.” Since Musk began discussing USAID on Monday, the agency has placed direct hire personnel globally on administrative leave, with few exceptions, and some USAID employees were seen clearing out their desks. Beyond that, DOGE said on Jan. 24 that in its first 80 hours of operating, it canceled “approx $420M of current/impending contracts” and two leases while focusing “mainly on DEI contracts and unoccupied buildings.” On Thursday, The Washington Post reported DOGE was analyzing the Education Department’s spending using artificial intelligence. It’s suspected Musk was involved in the Office of Personnel Management’s buyout offer to all federal employees, and he previously suggested the government should close the Consumer Financial Protection Bureau, which was directed earlier this week to pause its work, Reuters reported.
What Are Democrats Doing To Stop Doge?
On Tuesday, more than 1,000 protesters gathered outside the Treasury building in Washington, D.C., to protest DOGE’s actions, and more than two dozen Democratic lawmakers spoke at the gathering, the Associated Press reported. Democrats also teased the “Stop the Steal” Act on Tuesday, which House Minority Leader Hakeep Jeffries, D-N.Y., said would “prevent [DOGE’s] unlawful access from taking place.” Democrats tried to subpoena Musk on Wednesday to get more information on his actions and DOGE’s work, but congressional Republicans blocked the subpoena, ABC News reported. The top Democrat on the House Oversight Committee, Rep. Gerald Connolly, D-Va., said Musk’s role is “puzzling” for many people, adding: “Who is this unelected billionaire that he can attempt to dismantle federal agencies, fire people, transfer them, offer them early retirement and have sweeping changes to agencies without any congressional review, oversight or concurrence?” Democrats have limited power in opposing DOGE, or Trump’s actions more broadly, though, as Republicans control the House and Senate.
Further Reading
Unions Sue To Stop Elon Musk’s DOGE From Accessing Treasury Department Data (Forbes)
Elon Musk’s Team Now Has Access to Treasury’s Payments System (New York Times)
Elon Musk’s DOGE Team Mines for Fraud at Medicare and Medicaid Agency CMS (Bloomberg)
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