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Trump promises new era of government efficiency with DOGE

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Group files suit over DOGE secrecy on Trump’s first day

President Donald Trump promised Americans that their federal government would operate more efficiently with the creation of the Department of Government Efficiency.

“My administration will establish the brand new Department of Government Efficiency,” the 47th president said to applause from Republicans.

Trump’s remarks on DOGE came the same day as a nonprofit group joined a union to file suit over the outside agency, alleging its secret meetings violate federal law.

The complaint, filed by Public Citizen and the American Federation of Government Employees, alleges DOGE violates the Federal Advisory Committee Act because “members do not have a fair balance of viewpoints, meetings are held in secret and without public notice and records and work product are not available to the public.”

“AFGE will not stand idly by as a secretive group of ultra-wealthy individuals with major conflicts of interest attempt to deregulate themselves and give their own companies sweetheart government contracts while firing civil servants and dismantling the institutions designed to serve the American people,” AFGE National President Everett Kelley said in a statement. “This fight is about fairness, accountability, and the integrity of our government.”

Trump spoke about DOGE during his inauguration after making bold promises for the department after winning the 2024 election.

Trump picked Tesla CEO Elon Musk and businessman Vivek Ramaswamy to lead DOGE. Trump said the new group will pave the way for his administration to “dismantle government bureaucracy, slash excess regulation, cut wasteful expenditures and restructure federal agencies.”

Both Musk and Ramaswamy attended Trump’s inauguration Monday. The two men previously outlined their plans for DOGE, which includes reducing regulations that would lead to mass layoffs of federal employees.

“A drastic reduction in federal regulations provides sound industrial logic for mass head-count reductions across the federal bureaucracy,” Musk and Ramaswamy wrote in an op-ed for the Wall Street Journal in November. “DOGE intends to work with embedded appointees in agencies to identify the minimum number of employees required at an agency for it to perform its constitutionally permissible and statutorily mandated functions.”

AFGE, which represents more than 800,000 workers in nearly every federal agency, had previously denounced DOGE. Kelley said it will hollow out the federal government and its workforce.

“By their very nature, cuts of this size also would require slashing spending on our military, homeland security, federal law enforcement, and virtually every aspect of our government operations,” he said. “This kind of financial pressure would lead to painful, widespread reductions in services that will affect Americans from every walk of life.”

Trump has promised to cut “hundreds of billions” in federal spending in 2025 through the reconciliation process. DOGE co-leader Musk initially suggested DOGE could cut $2 trillion in spending. Musk more recently said the group will aim for $2 trillion, but likely come up with half that amount.

Congress controls the purse strings for discretionary spending, which totaled about $1.7 trillion in 2023. Congress generally allocates about half of its discretionary spending to the U.S. Department of Defense.

“The number of federal employees to cut should be at least proportionate to the number of federal regulations that are nullified: Not only are fewer employees required to enforce fewer regulations, but the agency would produce fewer regulations once its scope of authority is properly limited,” Musk and Ramaswamy wrote. “Employees whose positions are eliminated deserve to be treated with respect, and DOGE’s goal is to help support their transition into the private sector. The president can use existing laws to give them incentives for early retirement and to make voluntary severance payments to facilitate a graceful exit.”

Congress has run a deficit every year since 2001. In the past 50 years, the federal government has ended with a fiscal year-end budget surplus four times, most recently in 2001.

Last week, the federal government reported net costs of $7.4 trillion in fiscal year 2024, but it couldn’t fully account for its spending. The U.S. Government Accountability Office, which is Congress’s research arm, said that the federal government must address “serious deficiencies” in federal financial management and correct course on its “unsustainable” long-term fiscal path.

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DOJ drops Biden-era discrimination lawsuit against Elon Musk’s SpaceX

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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:

  • 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.

  • 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.

  • 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.

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PepsiCo joins growing list of companies tweaking DEI policies

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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:

  • PepsiCo will end DEI workforce representation goals and transition its chief DEI officer to focus on associate engagement and leadership development.

  • The company is introducing a new “Inclusion for Growth” strategy as its five-year DEI plan concludes.

  • 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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