Business
DOGE Must Focus On Big Picture To Achieve Big Change
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From the Daily Caller News Foundation
By Jenny Beth Martin
President-elect Donald Trump’s new Department of Government Efficiency (DOGE) is wasting no time in laying the groundwork for its effort to cut the size and scope of government. That Elon Musk and Vivek Ramaswamy are the right men to lead this effort is beyond doubt — Musk famously slashed the workforce at Twitter after he bought it and Ramaswamy made shrinking the federal workforce the centerpiece of his campaign for president a year ago.
They know how to find cost savings, and they have shown they are not afraid to do so.
Visiting with congressional Republicans last week, Musk and Ramaswamy even declared they would be keeping a “naughty and nice” list of those who work with them to save taxpayer money and those who do not.
To that end — because who, especially at this time of year, doesn’t want to be on a “nice” list? — here are some thoughts.
First, they are going to have to look at the big picture. They won’t find the $2 trillion Musk pledged to save by focusing on the old standby, “waste, fraud, and abuse.” Yes, they are certainly going to find plenty of waste, fraud, and abuse in the Government Accountability Office (GAO) reports their staff will review, but that will not be enough.
To find the big savings, they are going to have to shrink not just the size of the federal government, but its scope. The federal government is not huge just because it spends money inefficiently, it is huge because it is doing things it has no business doing.
Second, they are going to have to take advantage of the fact that much of that huge government was never specifically authorized by the Congress. The federal behemoth was created by the mass of alphabet soup executive branch agencies that have for decades been imposing regulations that have the force of law, even though the Congress never approved them.
Reversing that is going to require taking a chain saw to federal regulations. And we will need a proportionally reduced federal workforce to match the reduced federal regulatory regime. That should not be a problem; huge numbers of federal employees still have not come back to work in their offices, even though the COVID-19 crisis ended years ago. The DOGE should recommend that any federal employee who refuses a directive to come back to work in the office should be terminated. That will save taxpayer money, too — a 10% cut in the federal workforce would yield about $40 billion in savings every year.
Third, recognize that to make permanent change, executive orders will not be enough — because executive orders can be reversed by the next president. Laws, on the other hand, can only be overturned with new action by the Congress and the president. That makes laws tougher to overturn.
One of the legislative changes that would serve the long-term interest in getting the federal government under control would be passage of the REINS Act, a proposed law that would require any federal agency that wanted to impose a new regulation that would have a significant impact on the economy to first gain approval from Congress in the form of an affirmative vote in both houses, and then the signature of the president. As I said when discussing this on my recent podcast with American Commitment’s Phil Kerpen, ‘Imagine that — Congress votes on something before it becomes law!”
A second legislative change that could help make a major difference would be reform of the civil service laws that govern the federal workforce. Musk and Ramaswamy are going to recommend significant elimination of positions in the federal workforce. Under the current system, it is significantly more difficult to remove employees than it is in the private sector — even employees who engage in insubordination or flagrantly breaking rules. And before you retort, “but the tradeoff they agree to, and that we must honor, is that civil service employees accept lower compensation in exchange for that greater job security,” a recent analysis by the Cato Institute shows that “the average federal civilian worker made $157,000 in wages and benefits in 2023, much higher than the average U.S. private sector wages and benefits of $94,000.”
Greater job security on top of higher compensation? That wasn’t the deal.
Rep. Barry Loudermilk (R-Ga.) introduced his MERIT Act in the last Congress. It was a proposed law that would have strengthened agency management’s power to remove poor employees, expedited timelines and made other reforms to bring the system closer to the private-sector model. Something along those lines could be extremely helpful as federal managers move to meet their reduced workforce needs.
The DOGE enterprise begins with broad public support — a recent poll conducted by McLaughlin & Associates for the organization I lead, Tea Party Patriots Action, shows that 71% of Americans support the creation of DOGE and 65% support firing government employees who do not return to their offices to work.
Musk and Ramaswamy have taken on a huge task, and they recognize the opportunity before them. By focusing on big-picture efforts to shrink the size and the scope of the federal government, they can help restore it to its constitutional moorings, with government officials in a smaller, less intrusive, less expensive government that is more responsive to the needs, desires, and authority of the citizens on whose behalf and in whose name they toil.
Jenny Beth Martin is honorary chairman of Tea Party Patriots Action.
Business
DOJ drops Biden-era discrimination lawsuit against Elon Musk’s SpaceX
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MxM News
Quick Hit:
The Justice Department has withdrawn a discrimination lawsuit against Elon Musk’s SpaceX that was filed during the Biden administration. The lawsuit accused SpaceX of discriminatory hiring practices against asylum seekers and refugees. The move follows ongoing cost-cutting measures led by Musk as the head of the Department of Government Efficiency under the 47th President Donald Trump’s administration.
Key Details:
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The DOJ filed an unopposed motion in Texas federal court to lift a stay on the case, signaling its intent to formally dismiss the lawsuit.
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The lawsuit, filed in 2023, alleged SpaceX required job applicants to be U.S. citizens or permanent residents, a restriction prosecutors argued was unlawful for many positions.
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Elon Musk criticized the lawsuit as politically motivated, asserting that SpaceX was advised hiring non-permanent residents would violate international arms trafficking laws.
Diving Deeper:
The Justice Department, led by Attorney General Pam Bondi, has moved to drop the discrimination lawsuit against SpaceX, marking another reversal of Biden-era legal actions. The case, initiated in 2023, accused SpaceX of discriminating against asylum seekers and refugees by requiring job applicants to be U.S. citizens or permanent residents. Prosecutors claimed the hiring policy unlawfully discouraged qualified candidates from applying.
The DOJ’s decision to withdraw the case follows a judge’s earlier skepticism about the department’s authority to pursue the claims. No official reason for the withdrawal was provided, and neither Musk, SpaceX, nor the DOJ have issued public statements on the development.
Elon Musk was outspoken in his criticism of the lawsuit, labeling it as a politically motivated attack. Musk argued that SpaceX was repeatedly informed that hiring non-permanent residents would violate international arms trafficking laws, exposing the company to potential criminal penalties. He accused the Biden-era DOJ of weaponizing the case for political purposes.
The decision to drop the lawsuit coincides with Musk’s growing influence within the Trump administration, where he leads the Department of Government Efficiency (DOGE). Under his leadership, DOGE has implemented aggressive cost-cutting measures across federal agencies, including agencies that previously investigated SpaceX. The Federal Aviation Administration (FAA), which proposed fining SpaceX $633,000 for license violations in 2023, is currently under review by DOGE officials embedded within the agency.
Meanwhile, SpaceX’s regulatory challenges appear to be easing. A Texas-based environmental group recently dropped a separate lawsuit accusing the company of water pollution at its launch site near Brownsville. The withdrawal of the DOJ lawsuit signals a significant victory for Musk as he continues to navigate regulatory scrutiny while advancing his business ventures under the Trump administration.
Business
PepsiCo joins growing list of companies tweaking DEI policies
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MxM News
Quick Hit:
PepsiCo is the latest major U.S. company to adjust its diversity, equity, and inclusion (DEI) policies as 47th President Donald Trump continues his campaign to end DEI practices across the federal government and private sector. The company is shifting away from workforce representation goals and repurposing its DEI leadership, signaling a broader trend among American corporations.
Key Details:
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PepsiCo will end DEI workforce representation goals and transition its chief DEI officer to focus on associate engagement and leadership development.
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The company is introducing a new “Inclusion for Growth” strategy as its five-year DEI plan concludes.
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PepsiCo joins other corporations, including Target and Alphabet-owned Google, in reconsidering DEI policies following Trump’s call to end “illegal DEI discrimination and preferences.”
Diving Deeper:
PepsiCo has announced significant changes to its DEI initiatives, aligning with a growing movement among U.S. companies to revisit diversity policies amid political pressure. According to an internal memo, the snacks and beverages giant will no longer pursue DEI workforce representation goals. Instead, its chief DEI officer will transition to a broader role that focuses on associate engagement and leadership development. This shift is part of PepsiCo’s new “Inclusion for Growth” strategy, set to replace its expiring five-year DEI plan.
The company’s decision to reevaluate its DEI policies comes as President Donald Trump continues his push against DEI practices, urging private companies to eliminate what he calls “illegal DEI discrimination and preferences.” Trump has also directed federal agencies to terminate DEI programs and has warned that academic institutions could face federal funding cuts if they continue with such policies.
PepsiCo is not alone in its reassessment. Other major corporations, including Target and Google, have also modified or are considering changes to their DEI programs. This trend reflects a broader corporate response to the evolving political landscape surrounding DEI initiatives.
Additionally, PepsiCo is expanding its supplier base by broadening opportunities for all small businesses to participate, regardless of demographic categories. The company will also discontinue participation in single demographic category surveys, further signaling its shift in approach to DEI.
As companies like PepsiCo navigate these changes, the debate over the future of DEI in corporate America continues. With Trump leading a campaign against these practices, more companies may follow suit in reevaluating their DEI strategies.
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