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Trump’s DOGE Unit Shuts Down Eight Months Early Amid Controversy

DOGE Department Shuts Down Amid Elon Musk Controversy and New Government Layoff Rules

  • The Department of Government Efficiency (DOGE), founded in January to reduce federal costs, has ceased centralized operations ahead of its scheduled end date.
  • Questions and public confusion arose regarding Elon Musk’s role, as well as the department’s access to sensitive federal payment systems.
  • The closure coincides with plans for a new rule that would simplify the process of shutting down government programs and laying off staff.
  • DOGE’s short history involved exploring blockchain technology for government transparency and facing multi-state lawsuits over data access concerns.

The Department of Government Efficiency (DOGE), established by executive order to advance President Donald Trump’s cost-cutting agenda, has stopped functioning as a centralized office with eight months left before its charter expiration. This information comes from statements by the administration’s personnel chief and a Reuters report.

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The department was created shortly after the 2024 presidential elections to reduce excessive regulations, cut wasteful spending, and restructure federal agencies. It attracted attention partly because its acronym matched Elon Musk’s favored cryptocurrency, Dogecoin, although the agency’s mission was unrelated to the coin. Reports indicated that the Dogecoin logo briefly appeared on DOGE’s website, causing a temporary 14.4% rise in the cryptocurrency’s value.

In February, official documents clarified that Musk held no authority to make government decisions in DOGE, despite early public assumptions. The department also explored blockchain technology to increase transparency and efficiency in government operations.

Controversy emerged in the same month when a multi-state lawsuit alleged the administration unlawfully gave DOGE personnel, including non-Treasury employees, access to federal payment systems responsible for Social Security, veterans’ benefits, and Medicaid, raising data security concerns. The lawsuit claimed that Musk publicly advocated halting payments to certain government programs.

Reports of Musk departing from DOGE surfaced in April, coinciding with increases in Bitcoin and Tesla stock values. By May, Musk confirmed his exit from the department. In June, public disagreements between Musk and Trump further complicated the department’s public image.

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Meanwhile, the Trump administration is considering a new draft rule to ease closing government offices and terminating programs. This rule would allow agencies to lay off employees without considering performance or tenure during complete unit closures, as revealed by investigations. A federal employment attorney noted this change could enable selective elimination of offices officials oppose.

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