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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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Bank of Canada Slashes Interest Rates as Trade War Wreaks Havoc

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The Opposition with Dan Knight

With businesses cutting jobs, inflation rising, and consumer confidence collapsing, the BoC scrambles to contain the damage

The Bank of Canada just cut interest rates again, this time by 25 basis points, bringing the rate down to 2.75%. On the surface, that might sound like good news—lower rates usually mean cheaper borrowing, easier access to credit, and in theory, more money flowing into the economy. But let’s be clear about what’s actually happening here. The Canadian economy isn’t growing because of strong fundamentals or responsible fiscal policy. The Bank of Canada is slashing rates because the Trudeau—sorry, Carney—government has utterly mismanaged this country’s economic future. And now, with the U.S. slapping tariffs on Canadian goods and our government responding with knee-jerk retaliatory tariffs, the central bank is in full-blown damage control.

Governor Tiff Macklem didn’t mince words at his press conference. “The Canadian economy ended 2024 in good shape,” he insisted, before immediately admitting that “pervasive uncertainty created by continuously changing U.S. tariff threats have shaken business and consumer confidence.” In other words, the economy was doing fine—until reality set in. And that reality is simple: a trade war with our largest trading partner is economic suicide, yet the Canadian government has charged headlong into one.

Macklem tried to explain the Bank’s thinking. He pointed out that while inflation has remained close to the BoC’s 2% target, it’s expected to rise to 2.5% in March thanks to the expiry of a temporary GST holiday. That’s right—Canadians are about to get slammed with higher prices on top of already sky-high costs for groceries, gas, and basic necessities. But that’s not even the worst part. Macklem admitted that while inflation will go up, consumer spending and business investment are both set to drop as a result of this economic uncertainty. Businesses are pulling back on hiring. They’re delaying investment. They’re scared. And rightly so.

A BoC survey released alongside the rate decision shows that 40% of businesses plan to cut back on hiring, particularly in manufacturing, mining, and oil and gas—precisely the industries that were already hammered by Ottawa’s obsession with green energy and ESG policies. As Macklem put it, “Canadians are more worried about their job security and financial health as a result of trade tensions, and they intend to spend more cautiously.” In other words, this is self-inflicted. The government could have pursued a different approach. It could have worked with the U.S. to de-escalate trade tensions. Instead, Mark Carney—an unelected, Davos-approved globalist—is running the show, doubling down on tariffs that will raise prices for Canadians while doing absolutely nothing to change U.S. policy.

The worst part is that the Bank of Canada is completely cornered. It can’t provide forward guidance on future rate decisions because, as Macklem admitted, it has no idea what’s going to happen next. “We are focused on assessing the upward pressure on inflation from tariffs and a weaker dollar, and the downward pressure from weaker domestic demand,” he said. That’s central banker-speak for: We’re guessing, and we hope we don’t screw this up. And if inflation does spiral out of control, the BoC could be forced to raise rates instead of cutting them.

At the heart of this mess is a government that has spent years inflating the size of the state while crushing private sector growth. Macklem admitted that consumer and business confidence has been “sharply affected” by recent developments. That’s putting it mildly. The Canadian dollar has dropped nearly 5% since January, making everything imported from the U.S. more expensive. Meanwhile, Ottawa has responded to U.S. tariffs with a tit-for-tat strategy, placing nearly $30 billion in retaliatory tariffs on American goods. The BoC is now forced to clean up the wreckage, but it’s like trying to put out a fire with a garden hose.

And what about unemployment? Macklem dodged giving a direct forecast, but he didn’t exactly sound optimistic. “We expect the first quarter to be weaker,” he said. “If household demand, if business investment remains restrained in the second quarter, and you’ll likely see weakness in exports, you could see an even weaker second quarter.” That’s code for job losses. It’s already happening. The hiring freezes, the canceled investments—those translate into real layoffs, real pay cuts, real suffering for Canadian families.

Meanwhile, inflation expectations are rising. And once those expectations set in, they become nearly impossible to undo. Macklem was careful in his wording, but the meaning was clear: “Some prices are going to go up. We can’t change that. What we particularly don’t want to see is that first round of price increases have knock-on effects, causing other prices to go up… becoming generalized and ongoing inflation.” Translation: We know this is going to hurt Canadians, we just hope it doesn’t spiral out of control.

If this sounds familiar, that’s because it is. The same policymakers who told you that inflation was “transitory” in 2021 and then jacked up rates at record speed are now telling you that trade war-driven inflation will be “temporary.” But remember this: the BoC is only reacting to the mess created by politicians. The real blame lies with the people in charge. And now, that’s Mark Carney.

Macklem refused to comment on Carney’s role as prime minister, insisting that the BoC remains “independent” from politics. That’s cute. But the damage is already done. Ottawa picked a fight with the U.S. and now the BoC is left trying to prevent a full-scale economic downturn. The problem is, monetary policy can’t fix bad leadership. Canadians are the ones who will pay the price.

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USAID reportedly burning, shredding classified documents

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From The Center Square

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The U.S. Agency for International Development is facing criticism after news broke that federal employees were reportedly told to burn or shred classified documents.

USAID has been the center of controversy since President Donald Trump took office, and billionaire Elon Musk directed the Department of Government Efficiency to expose a slew of spending items widely mocked and criticized, from transgender operas to propaganda overseas and more.

A senior USAID official reportedly sent a memo to employees directing them to destroy the documents, raising questions about legality and transparency at the embattled agency.

“Shred as many documents first, and reserve the burn bags for when the shredder becomes unavailable or needs a break,” reads the email obtained by Politico.

Hans von Spakovsky, a legal expert at the conservative Heritage Foundation, wrote on X that “these employees are committing felonies under 18 USC 1519 in destroying Gov documents,” arguing that they “should all be criminally prosecuted especially acting director of USAID.”

Secretary of State Marco Rubio announced last week that 83% of of USAID contracts were terminated, though a federal judge has limited the federal government’s ability to stop paying out at least some contracts. Where this lands legally remains unclear as it works its way through the courts.

“In consultation with Congress, we intend for the remaining 18% of programs we are keeping (approximately 1000) to now be administered more effectively under the State Department,” Rubio said.

D.C. Bureau Reporter

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