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Musk Quietly Inserts DOGE Across Federal Agencies In Move That Could Uproot $162,000,000,000 Govt Industry

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From the Daily Caller News Foundation

By Emily Kopp

As federal employees launched protests of entrepreneur Elon Musk’s disruption of federal agencies last week, the Office of Personnel Management quietly released a memo shoring up the formal structure of the Department of Government Efficiency (DOGE).

An OPM memo dated Feb. 4 seeks the redesignation of chief information officers across the government from career positions to political appointees. OPM has recommended that every agency send a request to OPM to reclassify its CIO role from career reserved to “general” by Feb. 14.

The new CIO positions will be working with DOGE, a source familiar confirmed to The Daily Caller News Foundation.

The new memo gives the greatest detail about how DOGE will operate within the federal government since a Jan. 20 executive order. Yet it has been entirely overlooked by the legacy press, which has relied largely on career officials within the government who characterize DOGE’s actions as extra-governmental. Democrats like New York Rep. Alexandria Ocasio-Cortez have sought to portray the effort as a “coup.”

However, the memo shows that DOGE is attempting to regularize its operations within the federal government.

“It is a focus of President Trump’s administration to improve the government’s digital policy to make government more responsive, transparent, efficient, and accessible to the public, and to make using and understanding government programs easier,” the memo reads.

Unlike most major institutions, the federal government has no central IT department. InsteadIT responsibilities are dispersed across federal agencies which in turn spend billions on contractors and disparate artificial intelligence technologies. Musk’s housecleaning could reshape this $163 billion industry.

DOGE is the renamed U.S. Digital Service. The U.S. Digital Service is a small office within the White House created to build the health care exchanges under the Affordable Care Act and advises on technical strategy. How the DOGE office in the Eisenhower Executive Office Building will liaison with CIOs throughout the government is not yet clear.

Washington Post report revealed Monday that Edward Coristine, the 19-year-old DOGE team member known online as “Big Balls,” has been stationed at the State Department’s Bureau of Diplomatic Technology. The Bureau of Diplomatic Technology provides IT services.

The memo states that the new DOGE-aligned CIOs will take on a major role in public policy on technology.

The memo gives some insight into what they will prioritize, like improving government procurement policies and privacy, and deprioritize, namely diversity, equity and inclusion (DEI) initiatives.

“Poor technology-procurement policies can endanger property and privacy rights. Inadequate security policies can lead to vulnerabilities and hacks,” it states. “Emphasis on policies like [Diversity, Equity, Inclusion, and Accessibility] siphons labor and resources from other core government objectives.”

The Biden administration helped lay the groundwork for the change. Two earlier OPM memos cited in the Feb. 4 memo broadened the authority of government appointees to look outside of government for highly technical roles, including one released in the final months of the last administration.

2018 OPM memo under the first Trump administration noted “severe shortages of candidates and/or critical hiring needs” for STEM and cybersecurity. A September 2024 memo released under the Biden administration noted that “severe shortage of talent” in cybersecurity and other high-tech sectors persisted.

The new memo states that moving certain CIO positions away from career positions could help to alleviate it by dramatically increasing the number of candidates available to fill these important roles.

The move is in keeping with public statements about DOGE made by Musk and former DOGE co-lead and potential Ohio gubernatorial hopeful Vivek Ramaswamy about improving the federal government’s tech infrastructure, including examining the vendors the U.S. government works with and the fact that these systems don’t communicate across agencies.

Musk’s biography on his website X reads “White House Tech support.”

“My preferred title in the new administration is Volunteer IT Consultant,” Musk wrote on X on Dec. 9. “We can’t make government efficient & fix the deficit if the computers don’t work.”

“The federal government is the world’s largest IT customer… In theory, this *should* give us great buying power to negotiate good deals for taxpayers, but of course that’s not what happens,” Ramaswamy said on Dec. 5. “If the federal government were serious about reducing costs, it would procure government-wide licenses.”

Despite the intense focus on DOGE, there has been little discussion of the federal government’s existing methods for managing data and records.

The top five contractors on IT together took in $45 billion in 2024, according to Washington Technology, a trade publication that uses federal procurement data, USASpending.gov and company Security and Exchange Commission filings.

Musk’s SpaceX was the 39th largest federal contractor in government technology at approximately $1 billion. That represents about one third of Musk’s reported $3 billion in contracts with the U.S. government. Musk’s contracts in IT include the delivery of Starlink satellite internet units and services to national and state parks and the State Department, and the provision of a satellite network called Starshield to the U.S. Space Force.

While Musk’s potential conflicts have been in the spotlight, all of the top five current contractors on government IT have either a former government official or member of Congress on their boards of directors, and sometimes multiple government officials. They include a former admiral, a former Pentagon acquisitions officialjoint chiefs of staff leadership, a former deputy secretary of defense, and a former chair of the Armed Services Committee.

In addition, all of these companies use various artificial intelligence technologies across all of their federal contracts, many of them non-open source.

Musk and DOGE were dealt a setback on Saturday when District Judge Paul Engelmayer ordered a temporary stop on DOGE’s work with U.S. Treasury data, citing cybersecurity concerns. The suit was filed by New York Attorney General Letitia James and 18 other state attorneys general.

A Washington Post story reported Friday night that Booz Allen Hamilton had described the DOGE team’s access to Treasury data — reportedly “read only” access that doesn’t allow for data manipulation — as “the single greatest insider threat risk the Bureau of Fiscal Services has ever faced.”

The company put out a statement hours after the assessment became public.

“Booz Allen did not conduct a threat assessment or make recommendations regarding DOGE,” a statement read. “Commentary provided in a draft document by a subcontractor contained unsubstantiated personal opinions. … Booz Allen has terminated the subcontractor.”

Booz Allen Hamilton is the government’s fourth largest contractor on IT issues, taking in $8.2 billion in 2024.

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Trump eyes end of capital gains tax in 2025

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Quick Hit:

In a historic announcement that rattled markets and reignited debate over tax policy, President Donald Trump revealed plans to eliminate the capital gains tax starting in 2025. The unprecedented move would allow Americans to retain all profits from asset sales—whether in stocks, real estate, or other investments. Supporters tout it as a bold pro-growth measure, while critics warn it may cause budget strain and market instability.

Key Details:

  • President Trump announced the elimination of capital gains tax effective 2025, describing it as a move to reward success and promote wealth-building.

  • Currently, capital gains are taxed at rates up to 20%, with additional surcharges for high earners.

  • The announcement caused a major rally across financial markets, though critics claim the change favors the wealthy and could disrupt the economy.

Diving Deeper:

At a press conference on Monday, President Trump laid out a sweeping proposal to eliminate the capital gains tax in its entirety, calling it a “long-overdue correction” to what he described as a punitive tax on prosperity. “Why should you be punished for building wealth?” he asked. “This is America—we reward success.” If enacted, the change would allow investors to retain 100% of profits from the sale of assets such as stocks, homes, and businesses, with zero tax liability.

This proposal marks a sharp departure from decades of entrenched U.S. tax policy. Currently, long-term capital gains are taxed at rates ranging from 0% to 20%, with potential surcharges including the 3.8% Net Investment Income Tax for high earners. Trump’s plan would zero out those liabilities entirely starting in the 2025 tax year.

Conservative economists and market analysts have lauded the move as potentially the most transformative supply-side reform since the Reagan era. They argue that removing the tax will unshackle trillions of dollars currently locked in unrealized gains, spurring investment, entrepreneurship, and broader economic dynamism. “This is a game-changer,” said one pro-growth advocate. “It sends a clear message that America is back to being the most investment-friendly nation on Earth.”

Predictably, left-wing critics erupted. One Democratic senator labeled the measure a “grenade” that would detonate the federal budget and widen the wealth gap. Others warned of asset bubbles and increased volatility as investors rush to dump assets ahead of the reform’s implementation. These concerns, however, do not seem to have spooked the markets—at least not yet.

The Dow Jones Industrial Average jumped nearly 600 points following the announcement, while cryptocurrencies surged on expectations of tax-free gains. Real estate portals and trading platforms like Robinhood and E*TRADE saw surges in activity as users began strategizing around the policy’s timing. Online, the announcement triggered a wave of memes and commentary. The hashtag #NoCapGains began trending on X (formerly Twitter), with some calling it a “wealth liberation act” and others denouncing it as “Robin Hood in reverse.”

Legislation to formalize the proposal is expected to hit Congress within weeks. While Republicans have largely expressed support, Democrats are preparing for a fierce battle. It’s unclear whether some establishment Republicans—many of whom have been resistant to bold reform under Trump—will help move the bill forward or slow-walk it in favor of more moderate compromises.

Until the law is officially passed, financial advisors are urging caution. “The promise of zero capital gains tax is tempting,” one planner said, “but don’t bet the farm until it’s signed, sealed, and delivered.”

Still, with the 2025 tax season approaching fast, the stakes are enormous. If passed, Trump’s plan would not only mark one of the most dramatic tax overhauls in modern history—it would redefine the very incentives that drive American investment and wealth accumulation.

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Trump threatens additional 50% tariffs on China, urges ‘patience’

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President Donald Trump threatened to ratchet up tariffs against China after China upped its own tariffs against the U.S. in response to the president’s tariffs policy announcement earlier this month.

The Chinese Communist Party raised its tariffs on U.S. goods to 34%, ignoring Trump’s warning not to retaliate, which does not include Chinese tariffs on specific U.S. goods like natural gas.

That 34% figure matches the additional tariffs the president put on China in his announcement of the new tariff policy on April 2, an announcement that brought overall tariffs against China to 54%.

Trump argues that tariffs are not the only way China takes advantage of the U.S.

“Yesterday, China issued Retaliatory Tariffs of 34%, on top of their already record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long term Currency Manipulation, despite my warning that any country that Retaliates against the U.S. by issuing additional Tariffs, above and beyond their already existing long term Tariff abuse of our Nation, will be immediately met with new and substantially higher Tariffs, over and above those initially set,” Trump said in a statement online.

“Therefore, if China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” he continued.

“Additionally, all talks with China concerning their requested meetings with us will be terminated!” the president said. “Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”

Trump also urged Americans to be patient with his tariff policy as stocks continued to decline.

The president unveiled a sweeping set of reciprocal tariffs during a press conference earlier this month, and since that announcement the markets have seen sharp declines.

“The United States has a chance to do something that should have been done DECADES AGO,” Trump said on TruthSocial, his social media platform. “Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”

Democratic and some Republican critics have blasted the president’s tariffs, a policy previously foreign to the Republican Party in modern politics.

Trump has admitted there will be some pain but argued that the tariffs will reinvigorate domestic manufacturing in the U.S. and raise revenue for the federal government. He also says the tariffs will help the U.S. negotiate better trade deals with other countries, many of which currently charge steep tariffs against the U.S.

Critics argue the tariffs will increase prices for Americans and hurt the economy and U.S. trading relationships.

Trump and his allies have argued the U.S. has been manipulated and taken advantage of in the previous tariff system, all while manufacturing jobs were shipped overseas. Now, they argue, much of our manufacturing is done by one of our greatest adversaries: China.

“Countries from all over the World are talking to us,” Trump said. “Tough but fair parameters are being set. Spoke to the Japanese Prime Minister this morning. He is sending a top team to negotiate! They have treated the U.S. very poorly on Trade. They don’t take our cars, but we take MILLIONS of theirs. Likewise Agriculture, and many other ‘things.’ It all has to change, but especially with CHINA!!!”

Sen. Rand Paul, R-Ky., has helped lead the charge of Republicans who oppose the president’s new trade policy.

“Politicians should pay attention to the millions of investors who are worried that widespread tariffs will lead to a recession,” Paul wrote on X Friday.

Trump’s comments suggest that he is doubling down, not backing off, of his new tariff policy, likely part of the reason markets continued to slide Monday. Trump pointed to other signs of economic health, and his Treasury Secretary Scott Bessent has pointed out that the stock market is only one marker of the economy and one in which half of Americans have no stake.

“Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place,” Trump said. “This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate. They’ve made enough, for decades, taking advantage of the Good OL’ USA!”

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