DOGE: Department of Gawdawful Errors

[NB: check the byline, thanks. /~Rayne]

This seems very inefficient:

Photo of falling debris from SpaceX Starship Flight 8 over the Caribbean dd. 06MAR2025, via AkaSci on Mastodon

Oh, I’m not referring to the second consecutive failure of Elon Musk’s SpaceX Starship this year. He can blow up all his capital and burn down his future space freight contracts.

I’m referring to this:

Image, Mastodon post by Ben Brockert dd. 06MAR2025

Why have are our FAA resources, reduced as they are after Elon Musk took a DOGE-ian chainsaw to them recently, been forced to scramble to protect civilian and commercial aircraft from yet another “rapid, unscheduled disassembly“?

Why wasn’t the FAA given enough advance notice of the possible (and likely) threat from debris so that flights could be re-routed or delayed BEFORE the launch attempt?

The reach of this fuckery is breathtaking:

Photographs and videos posted on the social media site X by users saying they were along the Florida coast showed the spacecraft breaking up. The falling debris disrupted flights at airports in Miami, Orlando, Palm Beach and Fort Lauderdale, and as far away as Philadelphia International Airport.

In other words, most of the eastern U.S. affected — no big deal. But that’s likely an understatement; you know the cascade of effects must have been wider given how tightly planes are scheduled.

Why are any other persons outside of SpaceX forced to change their activities without advance notice because Musk is such a selfish fuck-up of a business manager?

This is particularly galling:

In a Department of Transportation all-hands meeting late last week, Duffy responded to a question about DOGE’s role in national airspace matters, and without explicitly mentioning the new employees, suggested help was needed on reforming Notice to Air Mission (NOTAM) alerts, a critical system that distributes real-time data and warnings to pilots but which has had significant outages, one as recently as this month. “If I can get ideas from really smart engineers on how we can fix it, I’m going to take those ideas,” he said, according to a recording of the meeting reviewed by WIRED. “Great engineers” might also work on airspace issues, he said.

As if NOTAM wasn’t already a concern, Musk’s SpaceX blows up a rocket without ensuring adequate notice. It’s not as if the launch was scheduled in advance or anything, as if a flight path for the rocket — and its debris — wasn’t predicted well before launch.

You know what really worries me — more so than I already was?

Engineers who work for Elon Musk’s SpaceX have been brought on as senior advisers to the acting administrator of the Federal Aviation Administration (FAA), sources tell WIRED.

On Sunday, Sean Duffy, secretary of the Department of Transportation, which oversees the FAA, announced in a post on X that SpaceX engineers would be visiting the Air Traffic Control System Command Center in Virginia to take what he positioned as a tour. “The safety of air travel is a nonpartisan matter,” Musk replied. “SpaceX engineers will help make air travel safer.”

Count the errors in the last two sentences of that excerpt. One party doesn’t give a shit about Musk’s manifold conflicts of interest or his unelected status as shadow president, the same party also doesn’t see the problem with giving Musk free rein to trash the regulatory agency which kept his space freight company from making even more explosive mistakes.

Imagine letting Elon’s SpaceX management habits reengineer infect the U.S. air traffic control systems, especially with his clueless if not utterly indifferent attitude about his mistakes.

“Some of the things that I say will be incorrect and should be corrected. So nobody can bat 1,000,” he said, adding that he would act quickly to correct errors.

He acknowledged DOGE could be making errors as well.

“We are moving fast, so we will make mistakes, but we’ll also fix the mistakes very quickly,” Musk said.

A plane crash isn’t a mistake one can fix, quickly or otherwise. US air travel demands zero defects; it’s not a series of test launches which can inconvenience people with few repercussions to the individuals responsible for failures.

What will it take before the spineless GOP congressional caucus, in thrall to the current administration, snaps out of its sleepwalking submission to Musk’s Department of Gawdawful Errors?

Will it take the crash of a plane carrying some of its members before it realizes oversight by a separate but equal branch of government is absolutely necessary to their own fucking safety?

Somehow I don’t think it will be enough to wake them up, because they haven’t batted an eye at Musk’s other business failure, the “Deadliest Car Brand in America.

Sen. Mitch McConnell’s sister-in-law couldn’t be rescued from her swamped Tesla in no small part because of its design, and yet this wasn’t enough to give the GOP congressional caucus pause about Musk in any way. They continue to share the road with these vehicles on a daily basis.

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NOAA: The Biggest Little Agency in America

What We are Quietly Losing in All the Tumult

Last week the ghouls of DOGE came to gut NOAA (National Oceanic and Atmospheric Administration) by firing all the probationary employees, because they were the easiest to fire. It was terrible, but it won’t be their last visit.

I wanted to take a moment to focus on this small and amazing agency because in all the chaotic headlines, outrageous speeches, and feral conduct, it’s easy to miss how consequential the Trumpist destruction of NOAA will be, if no one can stop it. Americans, and to a degree the whole world, depend on the nerdy, devoted folks at NOAA to keep the fish biting, the crops abundant, the land peaceful, and their homes and businesses safe and dry.

I’ve often thought of them as some of the wonderful unsung heroes of the federal government. I learned about NOAA in college. We worked with their oceanography data, pulled down from a satellite to a 486 computer into our little marine science lab in 1993. All their data, then as now, was freely available to anyone in the world. Scientists, students, and even enthusiasts still dig into their archives all the time, and the people at NOAA often look for ways to make their data more useful to anyone who wants it. It has made life easier on this planet in uncountable little ways we’ll never know about.

I don’t want to focus on the most famous parts of NOAA, the National Weather Service and the National Hurricane Center, not because they’re not important. They are incredibly important: key to saving lives and property, and keeping people informed during emergencies. But these are the two parts of NOAA you most likely already know about. The National Weather Service is the best forecaster and weather analysis agency on this little blue marble we call home, and we see its work every time we look at local news and weather. NWS data populates the various apps on our phones, sends out warnings, and appears on our local news stations.

You also probably know about the National Hurricane Center. That’s the website and associated services that we turn to in hurricane season, to watch and wait to see the fates of the gulf states and the Eastern seaboard every year. It is the high drama of global weather. It attracts the news, storm chasers and media audiences.

Hurricane season, unlike tornadoes, storms, or the long slow violence of climate change, has a ready-for-TV narrative. The danger forms over the sea and creeps nearer and nearer to where people live, and no one is ever quite sure how it will turn out until the danger hits land. This part of weather forecasting even has its own mediagenic hero squad — the hurricane hunters who fly through the eye and eye wall of hurricanes in beefy planes, letting NOAA gather data that can’t be gathered any other way.

You probably know that NOAA has weather satellites. NOAA operates 18 satellites in total. Some track American and global weather, but they also track fires, desertification, drought, heat, tree cover, and more values besides — across the whole world.

But there’s so many more parts you may not know.

In the US, NOAA sent up around 76,000 weather balloons a year equipped with radiosondes, a instrument that gathers and transmits data for NWS upper air network, they’re creating a long term archive of weather, also gathering data that can’t be gathered with cameras in space. They’re even keeping track of cosmic rays as part of the radiosonde telemetry. In theory, that means the first signs of a cosmic event like a supernova could reach earth via NOAA first. Either way, their data is invaluable for many other federal agencies, as well as the public, and private businesses. But with the cuts that have already happened, not as many of those balloons are going up.

NOAA has always worked hand in glove with their more famous cousin, NASA. Though NOAA looks inward more than outward to space, as NASA does. Between the two of them, they run most of the USA’s non-military satellite and sensor systems, gathering data — but also making it public.

But in many ways, NOAA has more to do than NASA, or even many other more famous parts of the federal government.

So Much More Than A Weather Forecast

NOAA’s job is to keep you alive. We get this when it’s hurricanes, tornadoes, flash floods — that kind of thing. But they help the global system in so many more ways that are less obvious. NOAA’s satellite data plays an important role in precision agriculture, where farmers use satellite data and weather information to time and place their crops for the best possible yield. It’s good for the farmers, but also it’s good for the global food system, Data for farmers makes agriculture predictable and efficient, keeping prices low and cupboards stocked around the world. In a globalized food system, that means less political unrest, less war, and more healthy children.

NOAA is the agency that monitors and studies El Niño, more precisely known at ENSO, which is a climate pattern in the equatorial Pacific ocean that affects much of global weather. This information is used all over the world to plan for crops, water allocation, typhoons, hurricanes and more. They study the AMOC,( Atlantic Meridional Overturning Circulation). This part of the global water circulation is of particular concern right now. If it fails (due to climate change) the Eastern Seaboard could drown and much of Europe could freeze. We don’t know how likely that is or what we could do about it, but NOAA is working the problem.

The NMFS (National Marine Fisheries Service) division of NOAA (pronounced “nymphs”) uses both ship and satellite surveys to monitor and protect fisheries, to keep them healthy and commercially viable. This is a global task, because fish don’t really care about your country’s EEZ (Exclusive Economic Zone) or other applicable human laws. NMFS tell people to stop fishing sometimes, and tell them where to fish at other times, using surveys, satellite data and other fisheries studies. This is about making sure that we can feed ourselves, and that the fish will be there next year, too. Fisheries management isn’t just a resource management task — it’s peace-building.

Fish and seafood account for 6.2% of the world’s protein consumption, and it’s often all the majority of protein in poor coastal communities. When fisheries are stressed or even collapse, conflict inevitably follows. Like increasing crop yields, protecting fisheries makes the world a little more peaceful. NOAA even monitors the Mississippi’s levels and behavior, safeguarding the cheapest and easiest trade route to the majority of the country. (the Mississippi is maintained by the Army Corp of Engineers, but this relationship between the agencies is just one of the many ways American infrastructure reaches out and finds the hand of NOAA there to help.)

NOAA is studying microplastics in whale guts, how to save coral reefs (and therefore also prevent another kind of fisheries collapse), saving sea turtles, and oyster bed restoration that could help preserve food and infrastructure on both of our coasts.  They generate heat maps to help people survive the growing threat of dangerous heat events. They monitor the oceans to help enforce the Marine Mammal Protection Act, protecting cetaceans (along with other marine mammals) from habitat destruction and human interference.

Even if you didn’t like whales, (and go get a therapist if that’s true, because who hates a whale?) they are a keystone species, and without them a lot of fisheries around the world would collapse. Whale poop is the great fertilizer of the global ocean. We know that, in part, because of NOAA research.

All of this, plus educational programs, ecological science, all your weather prediction, hurricane monitoring, and tornado warnings, for .11% of the federal budget. It’s one of the wonders of the data world. But the cost isn’t why DOGE and the Trumpists will want to destroy NOAA. There’s very little waste, fraud, and abuse here. There’s very few things that could even be mistaken for waste, fraud and abuse, even if you squinted as hard as you could.

What NOAA has is a truth the GOP doesn’t want anyone to see. NOAA is one of the foremost research agencies in the field of Climate Change. They collect much of the vital data, but also tell the story of anthropogenic climate change, well, and deeply, with receipts.

Here is NOAA’s mortal sin: their message is comprehensive, clear, and backed up with many, many studies. NOAA is easy to access for anyone in the world. This little slice of the federal government is telling on our crimes against nature, and the GOP doesn’t like that.

Without miraculous intervention, NOAA may be doomed in the coming weeks and months. I hope, and expect, that the people at NOAA are archiving its vast trove of potentially civilization-preserving records they’ve collected over the decades, to keep it from being destroyed by this insane GOP. I also hope companies and other governments will scoop up these people and get them back to their work — the work of preserving our comfortable Holocene civilizations on Planet Earth.

Science isn’t Transactional, and Data Doesn’t Make Deals.

Climate Change doesn’t care about the GOP’s political goals. This agency may end up dying for Trump’s insane vision of how the world works- and the damage is already arriving. There simply is no room in the Republican version of the world for forces beyond their control. But at this point, climate chaos is baked into the world as we have made it. Not all the might of the United States can win this fight with facts.

They have already fired the probationary workers, and anyone else who was legally vulnerable. The weather forecast part of NOAA’s mission is already being damaged. The Trump regime will be back to enact a political murder, trying to stop a global climate crisis by killing the messenger. But more fucking around has never made for less finding out, a fact that Trump will be demonstrating to us for years to come.

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IDENTIFIED: The Biggest Waste of US Tax Dollars So Far

[NB: check the byline, thanks. /~Rayne]

It’s as if every single federal employee has been sucked into the 1999 movie, Office Space, forced to generate value-sucking and utterly-useless TPS reports just to make a goddamned micromanaging control freak happy. Via NBC News:

Billionaire Elon Musk issued an ultimatum to federal employees Saturday, saying in a post on his social media platform X that employees must respond to an email justifying the work they completed this week or resign.

Federal employees have already begun receiving an email asking to summarize their work, sources familiar with the matter told NBC News, though unlike Musk’s post, it does not explicitly threaten a forced resignation.

The email, sent from the Office of Personnel Management and shared with NBC News, asked employees to send approximately five bullet points listing what they accomplished this week, CC’ing their managers.

The email reviewed by NBC News requested that employees not send any classified information, links or attachments. It said employees must respond by a deadline of Monday at 11:59 p.m. ET.

Good luck to any federal employee who’s on leave or on vacation and doesn’t learn of this until after the deadline — or who can’t provide five fucking bullet points because their job is as simple as “fought a forest fire” or “nursed veterans.”

If this is how Musk runs publicly-listed companies, shareholders should contact the boards of directors and demand he be removed because he’s wasting their investments as well.

No need to do your jobs better, no need to add more value. Just worry about fulfilling this massive time waste.

Musk needs to be fired.

Here’s your action item: find a special election for a congressional race and help the Democratic candidate win. Keep an eye out for future special elections. Take back the House to prevent any effort to legislate this kind of massive waste of tax dollars. The GOP has a very slim margin which can be eliminated through special elections.

Then find a way to communicate to other voters they need to know about this waste and be ready to help pitch in to fire Musk.

Nobody elected a shadow king, and nobody elected this blackhole draining our taxes.

Unfamiliar with the reference to Office Space? It’s streaming on Hulu.

_________
Image by: Daniel Manrique ([email protected]) via Wikipedia CC BY-SA 3.0

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DOGE Is Xitter Files for Government

The other day, Fox News’ Jesse Watters explained the difference between left and right wing messaging.

We are waging a 21st century information warfare campaign against the left and they are using tactics from the 1990s. They are holding tiny press conferences. Tiny little rallies. They’re screaming into the ether on MSNBC. This is what you call top-down command and control. Your talking points, from a newspaper, and you put it on the broadcast network and it disappears.

What you’re seeing on the right is asymmetrical. It’s like grassroots guerrilla warfare. Someone says something on social media, Musk retweets it, Rogan podcasts it, Fox broadcasts it.. and by the time it reaches everybody, millions of people have seen it. It’s free money. And we’re actually talking about expressing information, they are suppressing information.

Only, Watters left several things out (unless it’s what he meant by “expressing” information, whatever that is). The things Musk retweets are, almost without exception, false. Which means this massive asymmetrical guerrilla warfare feeds just propaganda. And Watters didn’t admit (though he seemed to, on a Fox and Friends broadcast the other day when he confessed to making up the Hamas tie to the Gaza condom hoax) that after these false claims go viral, they get parroted by Trump’s propagandist, Karoline Leavitt, and then Trump himself.

Still (as multiple disinformation experts noted), Watters offered a perfectly timed explanation of the information warfare the right is conducting.

And amid conflicting claims about what Elon’s role in all this is, I would suggest that until someone confesses differently, his primary role is simply a propaganda one: taking excerpted data he totally misunderstands out of context and pushing false claims about it, one that will feed a baseless narrative of corruption.

Mike Masnick described this would happen weeks ago.

Later on, Musk (operating without any clear legal authority or Senate confirmation) made a whole bunch of wildly false claims about USAID, including that it is “a criminal organization,” arguing that it funds all sorts of things it does not (including the idea that it funds “woke prosecutors”), that it’s a “terror organization”, and more. He even claimed it helped fund the creation of COVID-19.

The pattern is familiar: ExTwitter users spin elaborate red-yarn-on-corkboard conspiracy theories, and Musk treats each one as revealed truth. The result is a government increasingly run on paranoid hallucinated fever dreams rather than expertise – imagine NASA’s Apollo Program being handed over to flat-earth conspiracy theorists while the actual engineers are sidelined, and you’ll get the idea.

The danger isn’t just bad policy — it’s the replacement of accountable governance with conspiracy-driven chaos that threatens everything from disaster response to diplomatic relations.

And Renee DiResta described the familiar pattern today.

This is absolutely the Twitter Files for the government.

It’s the same methodology boosted by the same people.

Crawl through a bunch of stuff, find something that seems outrageous, make an online mob lose their minds. Destroy work, upend lives. Get it totally wrong, move to the next thing.

That’s what we’ve seen.

First there was the lie Elon told about condoms in Gaza (as I noted, Watters seemed to confess the other day that he made up the bit about Hamas getting them).

Elon Musk acknowledged Tuesday that there might not have been a federal plan to spend $50 million on condoms for Gaza — two weeks after the White House press secretary told the false story at an official briefing and more than a week after the president baselessly doubled the phony figure to $100 million and said the condoms were going to Hamas.

“Some of the things that I say will be incorrect, and should be corrected,” Musk, the billionaire businessman who is leading a Trump administration initiative they call the Department of Government Efficiency, said when a reporter told him the Gaza story was wrong. “So, nobody’s going to bat a thousand. I mean, any – you know, we will make mistakes, but we’ll act quickly to correct any mistakes.”

This correction was not particularly quick. Press secretary Karoline Leavitt’s claim that President Donald Trump had thwarted $50 million in condom funding for Gaza made headlines around the world in late January. Trump kept repeating the story, and inflating the figure, even after media outlets reported it was highly unlikely to be true.

The saga of the imaginary condom aid began when Leavitt announced during her debut White House press briefing on January 28 that Musk’s team and the president’s budget office had “found that there was about to be 50 million taxpayer dollars that went out the door to fund condoms in Gaza” before Trump imposed a freeze on foreign aid. Musk promoted Leavitt’s words on the X social media platform he owns.

Then there was the lie about dead people receiving Social Security checks, an anomaly in Social Security data identified ten years ago and revisited in an Inspector General report released two years ago.

In 2015,3 we reported that SSA had not established controls to annotate death information on the Numident records of numberholders who exceeded maximum reasonable life expectancies of age 112 or older and were likely deceased. At the time, only 35 known living individuals worldwide were age 112 or older, however, SSA’s Numident included 6.5 million numberholders4 age 112 or older whose record did not contain death information. Therefore, the numberholders’ information did not appear in the full DMF. We recommended SSA add death information to approximately 1.5 million Numident records where the numberholders’ death information appeared in SSA payment records. We also recommended SSA determine whether it could efficiently correct the approximately 5 million remaining records. SSA agreed to explore the legal and technical feasibility, as well as the cost, to establish an automated process to update the millions of Numident records for individuals who appeared to be alive and age 112 or older, but ultimately decided not to update these records.

Social Security decided not to address it because of cost.

In response to our 2015 report, SSA considered multiple options, including adding presumed death information to these Numident records. SSA ultimately decided not to proceed because the “. . . options would be costly to implement, would be of little benefit to the agency, would largely duplicate information already available to data exchange consumers and would create cost for the states and other data exchange partners.”16 SSA also believed a regulation would be required to allow it to add death information to these records, and adding presumed death information to the Numident would increase the risk of inadvertent release of living individuals’ personal information in the DMF.

Now there are the outrageous errors in the DOGE “receipts” page. Thus far, the reporting on this has been inadequate (though Washington Times published a slavering review, which I guess indicates DOGE knows its audience). For example, the NYT dedicated four reporters to call out just the most embarrassing error — that the richest man in the world had mistaken an $8 million payment over a multi-year contract and boasted instead that it represented $8 billion in savings for the two years remaining on the contract.

Daily Beast did a better job, noting not just the order of magnitude error that NYT and others identified, but also that Elon, like Trump, is taking credit for savings made under Joe Biden.

The group boasted that its “estimated savings” for American taxpayers is $55 billion so far, but the total it gave Monday adds up to just a third of that figure—and appears to claim credit for the closure of two government offices that were shuttered under Joe Biden.

Those closures are the National Archives centers in Hoffman Estates, Illinois, and in Fairfield, Ohio. DOGE’s site claims the latter location was a “True Termination – Agency Closed Office.” No other details are offered.

The only details offered on a contract termination for the National Archives center in Fairfield, Ohio.
The only details offered on a contract termination for the National Archives center in Fairfield, Ohio.DOGE

Those centers’ approximate closing dates were announced way back on Aug. 1, however, when Biden was still president.

“The records and artifacts of the Barack Obama Presidential Library, which have been held temporarily at Hoffman Estates, will be permanently moved to College Park, MD, in late FY 2025,” a news release from National Archives announced at the time.

Others have noted that many of the big savings are in reality subscriptions to media outlets, including (as Brad Heath noted, the SEC’s subscription to Westlaw). Once all these necessary services get turned back on again, the imagined savings will be wiped away.

Still, DOGE’s shoddy work, slapped up there after days of unfulfilled promises of transparency, needs to be more systematically mined, if for no other reason than to determine whether this is simply a reflection of the ignorance of the DOGE boys Musk has infiltrated into government, the shoddiness of the AI tools they’re using, or simply a disinterest in giving a fuck, because once Elon claims this website says something, the right wing will follow along like sheep.

They don’t need and maybe won’t bother trying to find real proof of savings, because between Elon and Trump and Fox News, they will insist it is the truth, not matter how often it gets debunked.

Until this effort is exposed as the propaganda campaign it is, the lies Musk tells give even Republicans discomforted by all the job losses in their districts something to cling to: A claim that this is about auditing, rather than destruction, a claim that this is about fraud, rather than policies that even Republicans have protected for years, and for good reason.

The richest man in the world is conducting a con on Republicans in government, claiming he is fixing government when instead he is dismantling even the parts that the Republicans themselves cherish.

As Masnick said, “it’s the replacement of accountable governance with conspiracy-driven chaos.”

It remains the case that one of the foundational claims to which Trump’s people continue to return is the one I identified a week ago: A GAO report from last year that spoke of $2.7 trillion in improper payments over the last two decades, but also a spike in recent years that almost entirely arises from fraud and management problems with the various COVID programs Trump rolled out his first term.

The factual claims of fraud — as opposed to the disinformation spun by Elon Musk — largely measure fraud that Trump created through his catastrophic response to COVID. And he fired several of the Inspectors General — most notably HHS IG Christi Grimm (whose work resulted in 193 charges last June), Department of Labor IG Larry Turner (who had already identified $191 billion in improper COVID payments, many fraudulent, and was chasing$135 billion more), and SBA IG Mike Ware (who had IDed around $200 billion in COVID fraud, returning $40 billion to the US Treasury and was still chasing more) — who were busy hunting it all down.

DOGE continues to rely on fraud Trump enabled to excuse their assault on government. And what they’ve found so far is that they lack any of the competencies they would need to audit or identify fraud, and Trump already fired the people who do have those competencies.

Update: Lawfare catches DOGE taking credit for savings due to Jimmy Carter’s death.

Yet a brief glimpse of the data raises questions about its accuracy. One row describes a lease terminated for an “agency” called “Allowance to Former Presidents.” Additional information shows that the property is 7,682 square feet, costs $128,233 per year, and is in Atlanta, Georgia. The GSA maintains a database of property leased by the federal government. Cross-referencing the information on DOGE’s website with GSA’s database reveals that the federal government was leasing this property from “The Carter Center, Inc.” The Carter Center is a nonprofit organization founded by former President Carter, who died on Dec. 29, 2024.

The Former Presidents Act provides former presidents with certain post-presidency benefits. Subsection (c) of that Act says, “The Administrator of General Services shall furnish for each former President suitable office space appropriately furnished and equipped, as determined by the Administrator, at such place within the United States as the former President shall specify.” As one might expect, Carter’s office was located in the Carter Center, and GSA leased office space for Carter from the Carter Center.

DOGE is likely not responsible for the termination of GSA’s lease of the Carter Center. The benefits to Carter under the Former Presidents Act expired upon his death.

Update: NPR’s review of this gets closer to the kind of real test of these claims. For example, it finds that some of the purport cuts have not yet been made.

Just over half of the contracts touted by DOGE, accounting for $6.5 billion in alleged savings, haven’t actually been terminated or closed out as of Wednesday, according to an NPR analysis of a federal government procurement database, even though the site’s “wall of receipts” listed these items.

That includes a billion dollar IT support contract with the Social Security Administration that actually added $1.8 million in obligated spending and additional funding for a Forest Service project management contract worth up to nearly $30 million.

More than a third of the listed contracts posted online would not actually save any money if canceled, according to DOGE.

And it interviews contracting officers.

A smarter way to reform contracting would actually cost money in the short term,” Riedl said. “Because it requires audits, it requires analysis, building new systems, building new controls rather than just going through with a chainsaw and trying to cut contracts almost randomly.”

Byrne, whose contracting career spanned more than 20 years and included work with the General Services Administration, the Environmental Protection Agency and the Navy, says DOGE’s website is also missing basic information needed to track and understand federal spending, like the ID number, what type of agreement or contract method was used and whether the cancellation was for some or all of the spending. Several publicly available data sources already track and confirm changes to federal contracts, including the Federal Procurement Data SystemUSASpending.gov and the System for Award Management (SAM). Unlike DOGE, those sources list other relevant data like the current value of the contract, historical changes to the amount budgeted and spent for the contract and when the contracts begin and end.

Who also note that the government is going to have to pay for a lot of the programs cut.

Even government contracts that have been terminated before reaching their full value could end up costing taxpayers more to settle up. Jessica Tillipman, associate dean for government procurement law studies at The George Washington University Law School, previously told NPR that the termination for convenience clause used for many of these cancellations is expensive.

“When the government terminates a contract for convenience, it’s still obligated to pay for the work completed,” she said. “This doesn’t eliminate the government’s responsibility for paying these sorts of costs.”

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Why Elon Musk Can’t Run DOGE [sic] Anymore

Yesterday, Judge Tanya Chutkan had a Presidents Day hearing on a lawsuit challenging DOGE’s actions. While she reportedly seemed inclined not to grant an emergency restraining order, she did order the government to provide her with two pieces of information: how many people had and were going to be fired, and what Elon Musk’s status is.

In a response and declaration, the government blew off the first question, but on the second, denied that Musk has the power of DOGE. He’s just a senior Trump advisor, one solidly within the White House Office, and so firewalled from the work of DOGE, yet still protected from any kind of nasty disclosure requirements.

But as the attached declaration of Joshua Fisher explains, Elon Musk “has no actual or formal authority to make government decisions himself”—including personnel decisions at individual agencies. Decl. ¶ 5. He is an employee of the White House Office (not USDS or the U.S. DOGE Service Temporary Organization); and he only has the ability to advise the President, or communicate the President’s directives, like other senior White House officials. Id. ¶¶ 3, 5. Moreover, Defendants are not aware of any source of legal authority granting USDS or the U.S. DOGE Service Temporary Organization the power to order personnel actions at any of the agencies listed above. Neither of the President’s Executive Orders regarding “DOGE” contemplate—much less furnish—such authority. See “Establishing and Implementing the President’s Department of Government Efficiency,” Exec. Order No. 14,158 (Jan. 20, 205); “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative,” Exec. Order 14,210 (Feb. 11, 2025).

The statement is quite obviously an attempt to retcon the structure of DOGE [sic], one that Ryan Goodman has already found several pieces of evidence to debunk.

But it is a testament that the suit in question — by a bunch of Democratic Attorneys General, led by New Mexico [docket] — might meet significant success without the retconning of Elon’s role.

Partly for more general benefit, let me talk about the various kinds of lawsuits filed so far against Trump’s attacks.

Kinds of plaintiffs:

  • Imminent, individual personal injury: The cases that have had the most success, so far, are examples of individuals who describe a specific imminent injury. The most obvious such example is a number of Trans women prisoners who’ve argued, successfully so far, that they face a very high likelihood of assault and/or rape if they are moved to male prisons.
  • Unions or other representatives of federal workers: These lawsuits address the imminent injury of privacy violations or firing and other mistreatment. The most successful (and eye-popping) so far has been the American Foreign Service Association lawsuit challenging the USAID shutdown [docket], in which a Doe employee yesterday provided another horrifying declaration describing another instance of a pregnant woman being deprived of promised medevac, and another from a woman in South Africa running up debt taxpayers will have to pay and about to lose access to electricity on the compound. But there are limits to the recourse that unions can seek on both these theories. For example, while Trump appointed judge Carl Nichols imposed a temporary restraining order on actions targeted at employees oversees, he has not done so for the USAID personnel stuck without the ability to fix anything in DC, because being put on paid leave is not the same kind of injury as being stuck overseas with no access to security warnings.
  • States (all with Democratic Attorneys General): The states are arguing a variety of things, both contractual breaches and injuries to their citizens. Contractual challenges may have little ability to halt ongoing destruction.
  • Private entities, like corporations or associations: These entities are often arguing contractual breaches, or privacy damages. The latter are likely to have more success than the former because of the way the Privacy Act works.

Kinds of challenges:

  • Many of these challenges claim a violation of the Administrative Procedures Act, basically arguing that the government changed the rules without going through the process they are required to use to change the rules.
  • Many lawsuits also claim violations of the Privacy Act, which requires that the government follow certain rules if they’re accessing your data in new ways. Thus far, the government has argued that employees have more limited protections than private citizens.
  • Underlying many of these suits are claims about the Impoundment Act and Separation of Powers because the government is not spending money the way Congress said it had to, but argued through an APA challenge. These challenges are particularly important because a key project of Project 2025 is to effectively strip Congress of the power of the purse.
  • Some lawsuits have tried to get at cybersecurity violations or even hacking (Computer Fraud and Abuse Act) claims, but thus far with little success. In any case, those would pivot on how DOGE [sic] got access to various computer systems, and in most cases, a senior Agency official ultimately relented to give them access.
  • This lawsuit, and another similar one brought by 26 anonymous USAID employees, argue that Elon Musk’s role in all this violates the Appointments Clause. This basically argues that Elon is acting as a superior officer, which requires Senate confirmation.

The injury suffered by each set of plaintiffs and legal theory largely limits the ability of judges to weigh in. So, for example, if a suit is arguing only Privacy Act violations, a judge can do no more than limit the dissemination outside of authorized channels of the data of the plaintiffs, something that has been ineffective once agencies started giving DOGE formal authorization to access computer servers. If a suit worries about firings, but the government instead puts tons of people on paid leave (as happened with USAID), then the plaintiffs are not yet suffering an irrevocable injury.

Here’s how the Appointments Clause theory, arguing that Elon is exercising powers that need to be created by Congress and confirmed by them, looks in the complaint.

64. Although he occupies a role President Trump—not Congress—created and even though the Senate has never voted to confirm him, Mr. Mr. Musk has and continues to assert the powers of an “Officer[] of the United States” under the Appointments Clause. Indeed, in many cases, he has exceeded the lawful authority of even a principal officer, or of the President himself.

65. As explained below, Mr. Musk: (1) has unprecedented and seemingly limitless access across the federal government and reports solely to President Trump, (2) has asserted significant and sweeping authority across a broad swath of federal agencies, and (3) has engaged in a constellation of powers and activities that have been historically associated with an officer of the United States, including powers over spending and disbursements, contracts, government property, regulations, and agency viability.

66. In sum, Mr. Musk purports to exercise and in fact asserts the significant authority of a principal officer on behalf of the United States. Yet, he does not occupy an office created by Congress and has not been nominated by the President or confirmed by the Senate. As a result, all of Mr. Musk’s actions are ultra vires and contrary to law.

You can see why the White House has decided that Elon is boxed away inside the White House with no direct control over the dismantling of government bureaucracy. The retconning of his role is all the more obvious when you understand that the right wing judges on SCOTUS feel very strongly about the Appointments Clause. And Trump is on the record relying on it, most spectacularly in convincing Aileen Cannon that Jack Smith had to be confirmed by the Senate before he could indict Trump.

In practice, Trump is saying Elon can dismantle entire agencies without Senate confirmation, but Jack Smith couldn’t prosecute him as a private citizen without it.

Or he was. Now he’s arguing that all this is happening without Elon’s personal direction.

There is plenty in the complaint already that debunks this, not least the narrative of how Elon started disappearing USAID even before, by his own description, Trump approved.

93. With a budget of over $40 billion, USAID accounts for more than half of all U.S. foreign assistance. USAID has missions in over 100 countries. As of January 2025, USAID had a workforce of over 10,000, with approximately two-thirds serving overseas.

94. On Saturday, February 1, 2025, a group of about eight DOGE personnel entered the USAID building and demanded access to every door and floor, despite only a few of them having the requisite security clearance.34 The areas to which they sought access included a sensitive compartmented information facility—commonly known as a SCIF—an ultra-secure room where officials and government contractors take extraordinary precautions to review highly classified information. DOGE personnel, aided by phone calls from Mr. Musk, had pressured USAID officials for days to access the secure facility and its contents.35

95. When USAID personnel attempted to block access to some areas, DOGE personnel, including Mr. Musk, threatened to call federal marshals. Under threat, the agency personnel acquiesced, and DOGE personnel were eventually given access to the secure spaces.

96. Later that day, top officials from USAID and the bulk of the staff in USAID’s Bureau for Legislative and Public Affairs were put on leave. Some of them were not notified but had their access to agency terminals suspended. USAID’s security official was also put on leave.36 97. Within hours, USAID’s website vanished. It remains inoperative.37

98. On Sunday, February 2, 2025, Mr. Musk tweeted, “USAID is a criminal organization. Time for it to die.”

38 Later, he tweeted, “We spent the weekend feeding USAID into the woodchipper.”39

99. Mr. Musk provided no support for his claim that USAID is a criminal organization. 100. On Monday, February 3, 2025, Mr. Musk stated that he was in the process of closing the agency, with President Trump’s blessing. Mr. Musk stated: “I went over it with him [President Trump] in detail, and he agreed that we should shut it down. And I actually checked with him a few times [and] said ‘are you sure?’ The answer was yes. And so we’re shutting it down.”40

Now, before DOJ gave this answer and blew off Judge Chutkan’s order to provide details of the ongoing firing spree, she seemed inclined not to grant a restraining order to stop all this.

It’s unclear whether this defiance will change that. Or, at the very least, whether it will lead to more questions about whether White House wrote any of this down.

What is clear is that the White House recognizes a real risk if Elon is held accountable for all the things Elon has done.

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John Barrasso Declares Programs Protecting Christian Minorities and Combatting Migration “Wrong”

On an appearance on Fox News Sunday yesterday, Senator John Barrasso claimed Democrats are “filing lawsuit after lawsuit because they want the border to remain open, they want to have boys playing in girls’ sports, and they want to spend money on things that people think are ridiculous — these transgender comic books, operas, surgery in foreign countries — all of these things are wrong.”

It’s unclear whether Wyoming’s Senator has simply pickled his brain with too much Fox News, made the grave mistake of believing any single thing Karoline Leavitt and/or Elon Musk says, or simply been ill-served by his staffers.

Several of the spending issues he alluded to, for example, have been publicly explained (and represent State Department funding, not USAID funding).

The rest were awarded by the State Department’s Office of the Under Secretary for Public Diplomacy and Public Affairs. In 2022, it granted $70,884 to an Irish company for “a live musical event to promote the U.S. and Irish shared values of diversity, equity, inclusion, and accessibility.” A grant for $25,000 was awarded in 2021 to a university in Colombia “to raise awareness and increase the transgender representation” through the production of an opera, with an additional $22,020 coming from non-federal funding. And $32,000 awarded in 2022 to a Peruvian organization funded “a tailored-made comic, featuring an LGBTQ+ hero to address social and mental health issues.”

The bigger problem for the badly misled Senator Barrasso, however, is in claiming that “all of these things are wrong,” he is saying he opposes a bunch of programs that did get shut down, including protecting the religious freedom of Christian minorities in Asia and Africa and combatting migration to the United States at its source.

That’s what declaration after declaration after declaration submitted in lawsuits reveal. Many these lawsuits haven’t been filed by Democrats; some of which have been filed by representatives of small businesses devastated because Donald Trump has decided to renege on billions of dollars of signed contracts, which is the key injury alleged in one of the more sweeping Temporary Restraining Orders thus far.

More importantly, rather than halting things that Barrasso is sure are wrong, they’ve halted programs that go to the core of what Trump claims he supports.

Disrupting migration at its source in El Salvador and Venezuela

One USAID contractor, Chemonics, describes several programs designed to disrupt migration to the US at its source. It describes the disruption of a program targeting El Salvador:

Working with urban municipalities and communities to counter incentives to join gangs and creating safe public spaces, addressing the root causes of migration to the U.S. from El Salvador;

[snip]

In El Salvador, each day the stop work order is in effect undermines progress made by Chemonics enhancing safety, economic opportunities, and safer environments. These work stoppages disrupt services designed to prevent organized crime and reduce migration, and they impede the development and implementation of long-term policies and organizational capacity of our government counterparts to sustain these gains.

And another program facilitating Venezuelan migration to Colombia, in lieu of migration to the US.

Helping resettle Venezuelan migrants permanently in Colombia by supporting Colombian visa processes and assisting with job skills training and placement to prevent migration to the U.S. southern border;

[snip]

In Colombia, 11 one-stop-shops for Venezuelan migrants to obtain temporary visas and nine workforce development centers now lack the resources necessary to operate, leaving migrants without access to social integration services. Agreements that Chemonics had negotiated with four banks to provide bank account registration and other financial services for migrants could not be signed, resulting in reputational harm. Similarly, each day the stop-work order remains in place, we lose the engagement of more than 1,500 private sector companies across different sectors that had agreed to promote job hiring and placement of Venezuelan migrants and connect migrant-led businesses to market opportunities. Chemonics fears that, without access to these services, more Venezuelan migrants will turn to illegal smuggling and human trafficking to on-migrate to the U.S. border.

Protecting Christian minorities

One contractor described that its human rights defenders protecting Christian communities from terrorists are at risk.

In Burkina Faso, human rights defenders who are working to track violence by the military junta and terrorist groups that have targeted Christian communities are at risk of being killed because the program can no longer help them relocate to safer locations and provide them with food, shelter, and subsistence support.

The American Bar Assocation also described having programs supporting religious freedom in Asia shut down.

With our partners in Indonesia, ABA is actively pursuing six religious freedom cases, including 4 representing Christian churches who were denied necessary permits to hold worship services and 2 representing Shia and Ahmadiyya Muslims who were accused of blasphemy/heresy

Combatting human trafficking

The ABA also supports programs fighting human trafficking in the Congo and Colombia.

The ABA is building the long-term capacity of the Congolese government, lawyers, and local service providers to combat human trafficking and violence against women, children, and other vulnerable groups around the country. ABA’s partners include medical, legal, psychological, shelter, and economic support providers alongside security actors, Congolese government representatives, and judicial personnel who receive training, technical assistance, capacity building, and direct distribution of goods or services for survivors. The project also works with local NGOs to raise public awareness on existing laws, rights, referral pathways, and resources for survivors to collectively improve long-term attitudes toward victims of trafficking and violence against women, children, and other vulnerable groups.

[snip]

In Colombia, ABA ROLI is implementing the Child Protection Compact (CPC) Partnership program, which aims to strengthen investigations, prosecutions and adjudications of child and adolescent trafficking cases through institutional strengthening as well as advocacy and increased access to justice. Emphasizing sustainable outcomes, this program adopts highly participatory approaches that increase commitment of the government, ensures sustained technical knowledge, and has developed tools and standard operating procedures, and improved law enforcement’s practices to obtain reliable data. As a result of the funding freeze, despite Colombia’s efforts to address the worst forms of child labor, children will still remain subjected to commercial sexual exploitation, illicit activities, forced labor, and recruitment by criminal groups.

Competing with China for Congo’s resources

One USAID employee describes how the evacuation and defunding has put programs designed to provide Congo alternate markets to those of China have been put at risk.

My portfolio focuses on establishing conflict-free supply chains of critical minerals from the DRC to the U.S. The overarching objective of my role is to strengthen the supply chain of DRC’s vast critical minerals sector to the U.S. Much of my job is establishing relationships with Government of DRC officials and informing them of the benefits partnerships with the U.S. offer. Over 70% of the world’s cobalt is produced in the DRC, which is almost entirely shipped to China. My job was to help reduce the country’s dependence through increased trade with the U.S.

[snip]

[T]he shutdown is ruining the U.S.’s strong relationship with the DRC government and private sector partners in the mining sector. USAID had many partnerships and programs active in the DRC’s mining sector focused on improving the environmental and social aspects of mining so that minerals could be legally exported to the U.S. Likewise, USAID was the primary donor supporting the development of the Lobito Corridor in the DRC. We have essentially “ghosted” all of our partners and our reputation may forever be tarnished as a result. Over the past few years, the DRC had expressed their preference for U.S. partnerships and USAID worked hard to develop strong, mutually beneficial partnerships that increase trade, benefitting the DRC economy and U.S. consumers who rely on the critical minerals that only the DRC produces. This is in jeopardy. China is ready to immediately jump in and take over.

John Barrasso has a job to do, and that is to oversee the actions taken by the President, of either party.

And rather than doing the least due diligence to learn about the damage that Trump’s shutdowns have caused, Barrasso instead went on TV and — presumably without knowing the least little bit about what he was talking about — cheered the shutdown of programs protecting Christian minorities around the world.

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DOGE2025 Is Getting the Catastrophic De-Ba’athification They Demanded

There are two stories that attracted a lot of attention last week that offer the same lesson.

The first story is the report that after firing a bunch of people in charge of securing nuclear weapons, Trump’s minions have tried to rehire them, which was first reported by CNN.

Trump administration officials fired more than 300 staffers Thursday night at the National Nuclear Security Administration — the agency tasked with managing the nation’s nuclear stockpile — as part of broader Energy Department layoffs, according to four people with knowledge of the matter.

Sources told CNN the officials did not seem to know this agency oversees America’s nuclear weapons.

An Energy Department spokesperson disputed the number of personnel affected, telling CNN that “less than 50 people” were “dismissed” from NNSA, and that the dismissed staffers “held primarily administrative and clerical roles.”

The agency began rescinding the terminations Friday morning.

The other is that the USAID is trying to prevent anyone still at the now-shuttered agency from telling the press that the life-saving grants for which Marco Rubio issued waivers have not actually been reauthorized to operate, which Greg Sargent focused on after John Hudson disclosed a memo making the order.

new internal memo circulating inside the U.S. Agency for International Development neatly captures this split. The Washington Post reports that the memo warns USAID employees not to communicate with the press about the shocking disruptions in humanitarian assistance that are being caused by the Trump-Musk attack on the agency, which are already producing horrific consequences. The memo said this transgression might be met with “dismissal.”

The memo claims to be correcting a “false narrative in the press” about the disruptions to that assistance. It notes that Secretary of State Marco Rubio last month issued a waiver to “lifesaving humanitarian assistance,” allowing it to continue despite the Trump-Musk freeze in agency spending. This has meant that this assistance has “continued uninterrupted and has never paused,” the memo claims, while warning recipients against any “unauthorized external engagement with the press.”

Now, at one level, this chaos is happening because many of the people enacting these cuts are DOGE boys with no idea what they’re looking at. Don Moynihan (who is an indispensable source on the policy issues of all this) uses the nukes case as one example to make the same point: because ignorant people were making the firing decisions, they eliminated a slew of critical positions.

Musk’s management style when it comes to downsizing has been to cut to the bone, and then hire back if he fired too many. This philosophy might make sense if you are running a social media company where its not a big deal if Twitter goes down for a couple of hours. It makes less sense where the a) failure of government systems has big and sometimes irrevocable costs, and b) it is not easy to replace expertise once you have eliminated it. On the latter point, many public jobs take time to develop knowledge of the policy domain, organizational practice and tasks. Those are not qualities that are easy to rebuild if you just spent a year training a new employee who has now been fired.

[snip]

Let me note that I feel like this lesson should not be necessary. We should not need to spell this one out. One measure of the collapse of the Soviet Union was that they could no longer afford to keep staff to secure nuclear warheads. Why would the US voluntarily downgrade it’s own capacity to manage its nuclear arsenal? And yet, DOGE fired 1 in 5 federal staff that manage the nation’s nuclear stockpile.

Have you heard about the National Nuclear Security Administration before? Probably not. It’s one of those jobs that we hopefully never need to think about, because if we do that means something has gone badly wrong. But it’s also one of those jobs that someone needs to ensure is staffed appropriately to make sure something does not go badly wrong. As a citizen, its fine if you are not aware of NNSA, but bear in mind that when the right attacks wasteful bureaucracy, these sort of invisible agencies performing important tasks are some of what they are talking about.

Apparently DOGE does not know much about the NNSA either. To be fair, when you have zero experience of government, why should you? But if you have zero experience of government, you should also probably not be in the position of firing 300 of the guys who take care of the nukes. CNN reported that the fired staffers included “staff who are on the ground at facilities where nuclear weapons are built. These staff oversee the contractors who build nuclear weapons, and they inspect these weapons.”

After enough members of Congress got upset, the firings were rescinded. Just one problem. DOGE made the firings effective the day they were received (no notice, not severance), immediately shutting down access to government emails. And they did not have contact information to tell NNSA employees they were unfired.

[snip]

Under Biden, the IRS had received long-awaited and much needed funds that allowed it to rebuild after a period of sustained downsizing, and was becoming more effective.
The IRS represented a very simple test for the credibility of DOGE. Was it really interested in efficiency and state capacity? If so, you support the tax enforcement, the biggest return on investment in government, generating somewhere between $5-9 for every additional $1 spent on enforcement.

Or did DOGE want to minimize parts of the state that bothered billionaires?

We have our answer. In the middle of tax season, the IRS was told to lay off thousands of workers hired as part of the rebuilding project.

Part of the DOGE hype is that after they fire everyone, they will figure out better ways to do the job using, uh, AI and such. But there is no second act where it gets better. They don’t have a plan to fix what they are breaking because they don’t understand or care about the damage they are doing. Breaking government is the point. It is not as if DOGE has some magical IRS plan up their sleeve. There is no plan.

The story is not just that these DOGE boys have no idea what they’re looking at, being so incompetent that the word “nuclear” doesn’t even spark their interest.

It’s that after ideologues fire competent bureaucrats, they’re often left without a way to turn the bureaucracy back on again when they realize they actually needed it.

Take the first example, the people ensuring the security of America’s nuclear arsenal. As NBC followed up, after Congressional lobbying and a press campaign convinced someone to reverse the NNSA firings, the DOGE boys had no easy way to contact those who had been fired to order them to return to work.

National Nuclear Security Administration officials on Friday attempted to notify some employees who had been let go the day before that they are now due to be reinstated — but they struggled to find them because they didn’t have their new contact information.

In an email sent to employees at NNSA and obtained by NBC News, officials wrote, “The termination letters for some NNSA probationary employees are being rescinded, but we do not have a good way to get in touch with those personnel.”

AP has a follow-up noting — among other things — that the key jobs were in Texas, Eastern Washington, South Carolina, and Tennessee. These are not just crucial jobs for national security, but many of them represent job losses in Republican areas.

Something similar has happened at USAID.

It shouldn’t have, because there, one key player shutting down the agency, Pete Marocco, actually worked at USAID in the first Trump term. The declaration he has submitted in multiple suits admitted he shut down already-committed funds on his own authority, without Marco Rubio’s involvement. He described that after he started firing administrators, administrators were unable to answer his questions, which he deemed insubordinate rather than just a natural consequence of firing the people who might be able to answer his questions. Nevertheless, his inability to get answers is what he used to justifying shutting everything down.

As a former USAID staffer, Marocco should have the competence to know better — but ProPublica describes why his own past insubordination may be a better explanation for his war against the agency.

The flood of USAID lawsuits has produced an associated flood of sworn declarations that describe, from the perspective of people involved, what is really happening.

For example, as part of a suit by the American Foreign Services Association, a program officer described that, even though she supervises 30 emergency food assistance programs, she had not (as of February 7) been able to get a waiver for any of them, resulting in food rotting in warehouses.

For example, while it was announced that most USAID funding would be frozen, a waiver is supposed to be available for life-saving humanitarian assistance, which would apply to the more than 30 emergency food assistance programs I support. Without my knowledge, the partners I manage, nearly all of which work on lifesaving, emergency food assistance, were sent email notices from their Agreement Officers directing them to fully or partially stop their work. As an Agreement Officer Representative for these awards, I am required to be copied on any communications, which never happened. While I tried to obtain a waiver for the programs I manage, there was no guidance on the process by which our patterns could obtain a waiver and none of the programs were ever formally approved to keep running. I am skeptical that the waiver actually exists. At this point, if a waiver does in fact exist, the implementation has been so chaotic with so many employees either furloughed or on administrative leave that as a practical matter it isn’t available to those who need it. While the programs I manage are under a stop work order, food commodities sit in warehouses rotting and scheduled food distributions to vulnerable populations do not happen and children miss follow-up appointments for treatment of severe malnutrition.

A contracting officer’s declaration in the same suit described the conflicting management orders, the lack of access to experts, and the technical access limits that made it impossible to implement the waiver program.

As a Contracting Officer, some of the awards on this list were perplexing and the sudden push to do this while nearly all of our counterparts with technical knowledge about where awards were in the waiver process and what the programmatic purpose of each award were locked out of the network and suspected to be on administrative leave.

There was an approved tab with one single PEPFAR award despite the fact that the Agency has many different PEPFAR awards and we were told a waiver had been granted for PEPFAR and Emergency Food Assistance. There were no Emergency Food Assistance awards on the approved tab. Concerns were raised by Contracting Officers and Regional Legal Officers alike who replied all to Matthew’s email with concerns. We asked for clarification on the reason for the contract terminations and for confirmation that OAA had consulted with OMB and made a determination consistent with the Executive Order on realigning foreign aid. If these awards had not received such a determination, the termination would be in violation of the executive order. We received no reply to those questions. A contracting officer replied all to the email asking if Congressional notification had been made on these terminations and noted that Congressional notification is required when a termination will involve reduction in employment of 100 or more contractor employees which these actions would likely result. It was also asked if USAID had taken steps to adhere to our Congressionally authorized and funded responsibilities on these terminations.

These emails received no reply from OAA leadership and our working level supervisors urged us to proceed with the terminations and meet the deadlines.

Subsequently at approximately 6PM that same day, Nadeem Shah, Deputy Director of Washington Operations for OAA, sent around an email entitled “PLEASE PAUSE ALL AWARD TERMINATIONS” asking staff to hold off on all award terminations in Matthew’s previous email.

[snip]

When my technical bureau’s access was supposedly restored yesterday, we quickly discovered that they do not have access to our Agency File system called ‘ASIST’ nor do they have access to our financial system in direct violation of the TRO issued the night of February 7, 2025. This makes it incredibly hard for them to provide programmatic information to help with the program review process. To date, the technical bureaus have not had any opportunity to provide any inputs or relevant information for the programmatic review. I am extremely concerned that Agency and State Dept leadership do not have the relevant information needed to thoroughly evaluate programming

Importantly, this seems to suggest that PEPFAR — one of the programs that Republicans have vociferously championed — was only partly restored because someone didn’t understand the multiple programs it involves.

Another staffer in the same AFSA lawsuit, a controller, described how bureaucratic and technical problems have prevented people from disbursing funds even for the programs that have gotten waivers.

9. On February 3, the situation changed yet again. As of that date, every time I tried to hit the “certify” button to begin a disbursement, I received an error message stating that I did not have authority to proceed. I contacted Phoenix Security to inquire if there was a technical problem in the system and was told “on Friday January 31, we were instructed to remove the ability to certify payments.” They did not indicate who instructed them, only stating “Unfortunately I am unable to reverse this decision.”

10. On February 5, all USAID controllers received another diplomatic cable indicating that USAID personnel could no longer process payments themselves but must request approval from a Senior Bureau Officer before forwarding the payment packages for processing. However, as of February 11, nobody can agree on who is the appropriate SBO for USAID payments and the State Department hasn’t processed a single payment based on the new procedure.

11. As of February 9, when I try to log into Phoenix, I receive a new error message stating that my sign-in attempt has failed. I have even less access to Phoenix after the February 7 court order than I did before that date.

12. I have been in touch with many colleagues and all report the same experience. To my knowledge, worldwide there are no USAID financial management personnel, including controllers, that can access Phoenix.

13. I have not been able to process payments under any of the waivers included in the January 24 cable, including legitimate expenses incurred prior to January 24 under existing awards or those for employee operating expenses. Though the waivers exist on paper, in reality all USAID funds have remained frozen because of technological barriers added to the system, I don’t know by whom. Phoenix will not let us disburse anything.

In a different USAID-related lawsuit by contract recipients, the head of a faith-based non-profit, Mark Hetfield, described how attempts to get waivers looked in practice.

11. On February 3, 2025, HIAS also received a revised “Notice of Suspension” for its work in Chad from PRM via email stating that HIAS should stop all work under the grant unless exempted from suspension as “existing life-saving humanitarian assistance” defined by the Department as “core life-saving medicine, medical services, food, shelter, and subsistence assistance, as well as supplies and reasonable administrative costs as necessary to deliver such assistance.” See February 3, 2025, Letter from Philip Denino, PRM Grants Officer, annexed to this declaration as Exhibit F. In his cover email, Mr. Denino stated that “PRM will follow up shortly to set up a meeting to discuss the specific HIAS programming in Chad that falls under the exemption for life-saving humanitarian assistance.” See February 3, 2025, Email from Philip Denino, annexed to this declaration as Exhibit G. That meeting with PRM took place the next day, February 4, during which HIAS and PRM staff discussed what activities would qualify as “lifesaving humanitarian assistance.” PRM asked HIAS to provide an overview of HIAS’ activities conducted in Chad pursuant to the award that HIAS deemed exempt from the 90-day suspension. HIAS prepared and sent the requested overview. See February 7, 2025, Email from Guillermo Birmingham to Philip Denino, annexed to this declaration as Exhibit H. However, after the meeting, Mr. Denino sent a follow up email indicating they he had been “given guidance that PRM will not be providing any additional information regarding the application of the waivers/exemptions to activities” and that he could only refer us to the revised Suspension Memo to guide us in resuming activities. See February 4, 2025, Email from Philip Denino to Guillermo Birmingham, annexed to this declaration as Exhibit I. Nor would we be able to receive funds to continue work under a waiver/exemption since all federal government payment portals were and are not functioning, making the purported waiver/exemption process cited in PRM’s revised Notice of Suspension useless.

12. On February 10, HIAS’ Chief Financial Officer again asked PRM for guidance on what would qualify as an emergency exemption from the indefinite suspension of PRM funds. In response, PRM’s Grants Officer stated, “I can’t provide guidance. It was determined much higher than me.” HIAS’ CFO then expressed concern to PRM that the lack of guidance coupled with the inability of aid organizations to access payments is making it impossible for organizations to provide the lifesaving humanitarian services identified by PRM as exempt in their revised Suspension Notice. See February 10, 2025, Email exchange between Guillermo Birmingham and Philip Denino, annexed to this declaration as Exhibit J.

He included a stack of backup, including the email instructing that Comptrollers were instructed not to provide any guidance on what was considered life-saving programming covered by the waivers.

Ultimately, USAID simply refused to tell grant recipients whether they had received a waiver or not, and if so for which parts of their programming. And it wouldn’t matter anyway because the computer systems on which it all runs are not functioning. State doesn’t want employees telling the press that life-saving grants haven’t been resumed, because Marco Rubio doesn’t want to confess to Republicans that he failed to deliver what he promised them.

Whether intentional at USAID or the inevitable outcome of arbitrary ignorance, the effect is the same.

It’s not just that the DOGE2025 attack on government has destroyed critical expertise. But absent that expertise, Trump’s minions are finding it difficult to reverse the ill effects of their initial assault, because the initial damage they do to both systems and expertise makes it far harder to reverse their initial failures.

Last July, JD Vance envisioned this process as a de-Ba’athification, which he imagined was targeted at a caricature of liberal culture, but which in reality targeted the civil service. Someone who served in Iraq really did set out to recreate the same insanely stupid policy decision that made Iraq a decade-long clusterfuck — he really did set out to launch that same kind of attack on his own government.

We’ve seen this movie before. It was, perhaps, Americas biggest failure ever.

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Trump Fired Inspectors General Who Identified $183.5 Billion in Waste, Fraud, and Abuse

There have and will be a slew of lawsuits in response to Trump’s attack on government. But this lawsuit, from eight of the Inspectors General that Trump fired on January 24, has been much anticipated. [docket]

That’s partly because Congress just strengthened the laws protecting Inspectors Generals, in response to Trump’s firing of some in his first term, as the suit lays out.

63. Congress responded in 2022 by further amending the IG Act. The Securing Inspector General Independence Act of 2022, see supra ¶6, enacted by overwhelming margins in both houses of Congress, procedural protections before an IG can be removed or placed on nonduty status, designated that a “first assistant” would automatically replace an IG in the event of a vacancy, and required the President to communicate reasons for not making a formal nomination to fill an IG vacancy after a certain period of time.

64. The 2022 amendments also strengthened the procedural safeguards on removing an IG. Prior to the amendments, the IG Act had required the President to provide 30 days’ notice to both houses of Congress and “reasons for any such removal.” The 2022 amendments require the President to provide 30 days’ notice to both houses of Congress, including appropriate congressional committees, and to “communicate in writing the substantive rationale, including detailed and case-specific reasons, for any such removal.” 5 U.S.C. §403(b). With the 2022 amendments included, the relevant provisions now reads as follows:

An Inspector General may be removed from office by the President. If an Inspector General is removed from office or is transferred to another position or location within an establishment, the President shall communicate in writing the substantive rationale, including detailed and case-specific reasons for any such removal or transfer to both Houses of Congress (including to the appropriate congressional committees), not later than 30 days before the removal or transfer. Nothing in this subsection shall prohibit a personnel action otherwise authorized by law, other than transfer or removal.

65. These procedural provisions ensure that Congress or members of Congress can, if it or they deem it appropriate, seek to persuade the President not to go forward with a noticed removal. Indeed, the legislative history of the Inspector General Reform Act indicates that Congress added the notice requirement to “allow for an appropriate dialogue with Congress in the event that the planned transfer or removal is viewed as an inappropriate or politically motivated attempt to terminate an effective Inspector General.” See S. Rep. No. 110-262, at 4 (2008)

If Congress has any power to limit how the President fires someone, then this suit will uphold that power (a large team from Wilmer Cutler, led by former Solicitor General Seth Waxman, are representing the plaintiffs).

But it’s also because the plaintiffs in this suit embody everything Trump claims he wants to do with DOGE. Elon Musk claims he’s hunting for waste, fraud, and corruption in government agencies he’s wildly unfamiliar with. These civil servants have been doing this, some of them, for four decades.

Indeed, one thing the suit lists, for each of the plaintiffs, is how much material impact they have had in their role (with one exception, exclusively in the IG position from which they were fired, which the report explains is:

“Monetary impact” describes the estimated financial savings or losses that could result from implementing recommendations made in an IG’s audits, inspections, or evaluations, essentially quantifying the potential cost-benefit of addressing issues like waste, fraud, and abuse in a government agency or program. See CIGIE, Toolkit for Identifying and Reporting Monetary Impact, at 1 (June 18, 2024), https://www.ignet.gov/sites/default/files/files/Toolkit%20for%20Identifying%20and%20Reporting%20Monetary%20Impact.pdf.

Some monetary-impact estimates reported herein also consider monetary benefits associated with IG investigations.

And while there’s some inconsistency in the reporting (for example, Sandra Bruce included stuff from when she was Acting IG during Trump’s first term whereas some of the others left out susbstantial terms in other IG roles, Larry Turner’s number — for Department of Labor — seems quite high, and Mike Ware does not include $30 billion seized or returned pursuant to investigations he oversaw), the Inspectors General describe identifying $183.5 billion in material impact.

As noted in this post, that includes substantial work cleaning up after COVID relief rolled out by Trump, particularly from Mike Ware, work which lead DOGE Treasury Official Thomas Krause relied on to suggest that DOGE could be effective. In Ware testimony to Congress that Krause cited, Ware described up to $200 billion in fraud just in Small Business related relief alone.

Using OIG’s investigative casework, prior OIG reporting, advanced data analytics, and additional review procedures, we estimate SBA disbursed more than $200 billion in potentially fraudulent COVID-19 EIDLs and PPP loans. This estimate represents approximately 17 percent of disbursed COVID-19 EIDLs and PPP funds — specifically, more than $136 billion COVID-19 EIDLs and $64 billion in PPP funds. Since SBA did not have an established strong internal control environment for approving and disbursing program funds, there was an insufficient barrier against fraudsters accessing funds that should have been available for eligible business owners adversely affected by the pandemic.

That’s what Trump did by firing Ware and the others: halt proven efforts to do what DOGE is incapable of — and only pretending — to do.

Which is another reason to keep an eye on this lawsuit.

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Thomas Krause Says Trump Had to Close USAID because of Trump’s Poor COVID Management

In the last few days, Trump has started doing a better job of messaging with his responses to lawsuits. I’ll attempt to explain that going forward. But one instance is the Thomas Krause declaration filed in the Attorneys General challenge to the DOGE access to Treasury systems (which I also wrote about in this post). Krause — still serving as the hatchet man CEO of Citrix (which probably creates a serious conflict) — uses his declaration to claim that he is attempting to “improve the accuracy of financial reporting.”

I am responsible, among other duties, for reducing and eliminating improper and fraudulent payments; waste, fraud, and abuse; and improving the accuracy of financial reporting. To that end, I am focused on improving the controls, processes, and systems that facilitate payments and enable consolidated financial reporting.

Later in the declaration, he provides a notably different explanation for his job.

My role on the Treasury DOGE Team is to find ways to use technology to make the Treasury Department more effective, more efficient, and more responsive to the policy goals of this Administration.

To justify the focus of DOGE, Krause cites several Biden-era GAO reports.

7. As illustrated by several reports released by the Government Accountability Office (GAO), we have our work cut out for us. On January 16, 2025, GAO released a report entitled “Financial Audit: FY2024 and FY2023 Consolidated Financial Statements of the U.S. Government.” In the report, GAO summarizes that they were not able to determine if the Financial Report of the U.S. Government is fairly presented. Among other reasons, GAO highlighted “problems in accounting for transactions between federal agencies.” GAO found many material weaknesses including “the federal government’s inability to determine the full extent to which improper payments, including fraud, occur and reasonably assure that appropriate actions are taken to reduce them.” GAO also reported that Treasury and Office of Management and Budget (OMB) officials expressed their continuing commitment to addressing the problems this report outlines. In short, the GAO report identifies the Federal government’s inability to account for all of the improper payments including waste, fraud and abuse across federal agencies.

8. On September 10, 2024, the GAO released a report entitled “Payment Integrity: Significant Improvements are Needed to Address Improper Payments and Fraud.” The report found that since 2003, cumulative improper payments1 by executive branch agencies have totaled about $2.7 trillion dollars. Some of GAO’s top concerns [1] included fraudulent or improper Earned Income Tax Credit refunds, Social Security payments, unemployment and Medicare and Medicaid payments. In fiscal year 2023 alone, federal agencies estimated $236 billion in improper payments across more than 70 federal programs. In addition, GAO estimated that the total annual financial losses across the government from fraud are between $233 and $521 billion. These numbers are truly staggering—billions and billions in hardearned American taxpayer dollars are being misspent every year. GAO highlighted a number of steps that Congress and federal agencies could take to help reduce fraud and improper payments, including that “[a]gencies should improve oversight to ensure that funds aren’t paid to ineligible recipients” [2] and that “[a]gencies should improve their collection and use of data for preventing and detecting fraud.” [3]

9. Similarly, GAO has identified areas for improvement in BFS’s systems related to identifying and tracing transactions to determine whether they were complete and properly recorded in the correct general ledger accounts and line items within the Schedules of the General Fund. See GAO Report, “Financial Statement Audit: Bureau of the Fiscal Service’s FY22 Schedules of the General Fund” (March 30, 2023). Specifically, GAO has found inconsistent reporting, lack of traceability, and need for improved controls with the Treasury’s Central Accounting and Reporting System (CARS), which federal agencies use to track their spending for budgetary and accounting purposes. These kinds of improvements and others can enhance BFS’s ability to ensure accountability in the spending of taxpayer dollars.

1 Improper payments and fraudulent payments are related but distinct concepts. An improper payment is a payment that should not have been made, or that was made with an incorrect amount; fraudulent payments occur due to willful misrepresentation. All fraudulent payments are improper, but not all improper payments are fraudulent. [emphasis and links added]

Elon Musk parroted a lot of this language at his presser at the White House yesterday (which is one reason I say they’re beginning to coordinate this better).

If you don’t look too closely, the declaration almost makes DOGE look smart. Except I decided to look at one of the reports — the second one — more closely.

And once I did, I realized that Thomas Krause is, in part, using Trump’s management failures during COVID as an excuse to start shutting down government. Start with the fact that the first agency Krause focused on after arriving at Treasury was USAID — pursuing his goal of making Treasury, “more responsive to the policy goals of this Administration.” But that’s not one of the high risk agencies, all of which have to do with direct payments.

Since 2003, which is when they first tracked the data, the amount of improper payments has steadily increased. But it has declined in recent years, under Biden.

 

There’s a reason for that. Look more closely at the estimated improper payments, their sources, and their timing. 

For longstanding programs — Medicare and Social Security, the ones Krause mentions in his declaration — the number of improper payments in recent years is about what it was under Trump. What has spiked in recent years (and then receded) are programs that expanded under COVID: Expanded Medicaid and unemployment access, and the PPP program rolled out under Trump, something Krause neglects to mention at [1]. A key thing this report measures is COVID mispayments — that is, improper payments made under programs set up under President Donald Trump, 1.0.

The quotes at [2] and [3] are not actually from the report. They’re from this website (which links to this report).

Many of the recommendations and data used in this report pertain to COVID or lessons learned from it. For example, the report recommends making the payment tracking center set up in response to COVID permanent.

Establish a permanent analytics center of excellence to aid the oversight community in identifying improper payments and fraud.28 This could be achieved by building upon and expanding PACE and making it permanent.

And it recommended building in such collection in case of any future emergency response — in part, to avoid the two to three year delay in finding these payments reflected in the table above.

Require OMB to (1) provide guidance for agencies to proactively develop internal control plans that would be ready for use in, or adaptation for, future emergencies or crises and (2) require agencies to report these plans to OMB and Congress.

Amend PIIA. Quickly reporting improper payment estimates for emergency relief programs is critical for agency accountability and transparency over whether appropriated funds were spent for their intended purposes. In addition, estimating improper payments and identifying root causes help ensure that agencies develop and implement corrective actions to reduce them.

In November 2020, we recommended that Congress consider, in any future legislation appropriating COVID-19 relief funds, designating all executive agency programs and activities that made more than $100 million in payments from COVID-19 relief funds as “susceptible to significant improper payments.31 Such a designation would require, among other things, agencies to report improper payment estimates for such a program and develop corrective actions to reduce improper payments. In March 2022, we recommended that Congress amend PIIA to apply this criterion to all new federal programs for their initial years of operation.32 The current approach resulted in 2-to-3 year delays in reporting improper payment estimates for short-term and emergency spending COVID relief programs.

Much of the fraud, too, pertains to COVID relief.

When it is discovered, the Department of Justice (DOJ) can bring charges of fraud against the alleged fraudsters. For example, DOJ has prosecuted over 2,000 COVID-19 fraud-related cases, and hundreds of additional cases are pending. We analyzed the department’s public statements and court documentation and found that, from March 2020 through March 2024, at least 1,998 individuals or entities facing fraud-related charges were found guilty or liable.16 This includes charges in cases involving SBA’s loan programs, DOL’s Unemployment Insurance (UI) programs, and Treasury’s economic impact payments. Of the individuals found guilty, at least 1,596 had been sentenced as of March 31, 2024, and many have also been ordered to pay restitution and fines. There were also federal fraud-related charges pending against at least 632 other individuals or entities involving federal COVID-19 relief programs, as of March 31, 2024.17 We expect the number to continue to increase as investigations take time to develop and given the significant number of investigative leads. For instance, SBA’s IG office reported that its actionable leads represent more than 100 years of investigative case work.18 The government has 10 years to prosecute individuals who committed fraud related to the Paycheck Protection Program (PPP) and the COVID-19 Economic Injury Disaster Loan (EIDL) program.19 DOL’s IG has requested Congress similarly extend the statute of limitations for the pandemic relief UI programs as well.20 Additionally, in a June 2024 press release, the Internal Revenue Service requested to Congress that the statute of limitations for fraud be extended for the Employee Retention Credit.21 We support their requests.

Now, to be fair, there was likely to be overpayments and fraud regardless of who was in charge when COVID hit (or when avian flu and measles become pandemics in months ahead).

This is not all attributable to Trump’s COVID failures.

But one other thing about this report deserves mention: It is full of discussion of the role of Inspectors General in finding this fraud, including a bunch of the people Trump fired four days into his term — six of whom just filed suit today (which I’ll turn to shortly). Indeed, one of them — Mike Ware — is cited in the report Krause invoked.

18 Stolen Taxpayer Funds: Reviewing the SBA and OIG Reports of Fraud in Pandemic Lending Programs Hearing Before the House Committee on Small Business, 118th Cong. 45 (2023) (statement of Hannibal “Mike” Ware, Inspector General of U.S. Small Business Administration).

Thomas Krause says we need to fix the errors created by Trump’s poor management of COVID. But one of the first things Trump in his second term did was to fire the people who’ve done the most to do so.

Update: Corrected Mike Ware’s last name.

Update: I’ve linked Ware’s testimony, above. Among other things, he estimated that SBC IG identified up to $200 billion in fraudulent COVID relief.

Using OIG’s investigative casework, prior OIG reporting, advanced data analytics, and additional review procedures, we estimate SBA disbursed more than $200 billion in potentially fraudulent COVID-19 EIDLs and PPP loans. This estimate represents approximately 17 percent of disbursed COVID-19 EIDLs and PPP funds — specifically, more than $136 billion COVID-19 EIDLs and $64 billion in PPP funds. Since SBA did not have an established strong internal control environment for approving and disbursing program funds, there was an insufficient barrier against fraudsters accessing funds that should have been available for eligible business owners adversely affected by the pandemic.

In other words, a huge chunk of the fraud Krause says he is looking for was IDed by one of the guys Trump fired on day four.

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Marko Elez “Resigned” the Day His Write Access to Payment Systems Was Discovered

According to the currently operative story, Marko Elez — the DOGE [sic] boy who had source code for Treasury’s payments system — resigned in response to a query from WSJ reporter Katherine Long about his social media posts in support of

A key DOGE staff member who gained access to the Treasury Department’s central-payments system resigned Thursday after he was linked to a deleted social-media account that advocated racism and eugenics.

Marko Elez, a 25-year-old who is part of a cadre of Elon Musk lieutenants deployed by the Department of Government Efficiency to scrutinize federal spending, resigned after The Wall Street Journal asked the White House about his connection to the account.

“Just for the record, I was racist before it was cool,” the account posted in July, according to the Journal’s review of archived posts.

“You could not pay me to marry outside of my ethnicity,” the account wrote on X in September. “Normalize Indian hate,” the account wrote the same month, in reference to a post noting the prevalence of people from India in Silicon Valley.

After the Journal inquired about the account, White House spokesperson Karoline Leavitt said that Elez had resigned from his role.

But that belief is only based on correlation, not any proof of causation. Long asked about posts that are in no way exceptional for the far right boys Elon has infiltrated into the government. And Elez resigned that same day.

Sure, Elon implied that Elez quit because the boy’s far right ideology was exposed — he led a campaign for his reinstatement. That campaign — and JD Vance’s support for it — similarly led a lot of people to believe that Elez had been reinstalled at Treasury. But multiple court filings claim that Elez resigned and never came back, at least not to Treasury.

In fact, there are two things that might provide better explanations than the discovery that like Elon himself, Elez is a racist.

As WSJ itself notes, Elez resigned the same day that Colleen Kollar-Kotelly ordered that Elez, then still identified as a Special Government Employee, be granted only read-only access to Treasury’s networks. Once Elez no longer worked for the defendants in that case — starting with Scott Bessent — then any access he had would be exempted from the order.

More importantly, as a court filing submitted yesterday reveals, Elez’ resignation happened the same day that Treasury discovered Elez’s Bureau laptop, “had mistakenly been configured with read/write permissions instead of read-only.” The filing is a declaration from Joseph Gioeli, who has been employed as the “Deputy Commissioner for Transformation and Modernization in the Bureau of the Fiscal Service” since 2023 and is a civil servant first hired in the first year of Trump’s first term.

His declaration describes how the 4-6 week “payment process engagement plan” initiated (per Thomas Krause) on January 26 required giving Elez risky access to payment systems. Gioeli describes how they tried to mitigate those risks.

11. The scope of work as envisioned in the engagement plan required access to Fiscal Service source code, applications, and databases across all these Fiscal Service payment and accounting systems and their hosting environments. This broad access presented risks, which included potential operational disruptions to Fiscal Service’s payment systems, access to sensitive data elements, insider threat risk, and other risks that are inherent to any user access to sensitive IT systems. In light of these risks, BFS and Treasury Departmental Office employees developed mitigation strategies that sought to reduce these risks.

12. These measures included the requirement that Mr. Elez be provided with a BFS laptop, which would be his only method of connecting to the Treasury payments systems, both in connecting with the source code repository and for his read-only access of the systems. He had previously been provided a Treasury laptop from the Department shortly after he onboarded, but due to Bureau security policy, that device was restricted from accessing the BFS systems and services he had requested. BFS used several cybersecurity tools to monitor Mr. Elez’s usage of his BFS laptop at all times and continuously log his activity. Additionally, the Bureau enabled enhanced monitoring on his laptop, which included the ability to monitor and block website access, block the use of external peripherals (such as USB drives or mass storage devices), monitor any scripts or commands executed on the device, and block access to cloud-based storage services. Additionally, the device contained data exfiltration detection, which alerts the Bureau to attempts to transmit sensitive data types. The laptop is also encrypted in accordance with Bureau policy, which, if the laptop were stolen or lost, would prevent unauthorized users from accessing data contained within the laptop.

13. Additional mitigation measures that were adopted included that Mr. Elez would receive “read-only” access to the systems, and that any reviews conducted using the “read-only” access would occur during low-utilization time periods, to minimize the possibility of operational disruptions. While providing a single individual with access to multiple systems and data records accessed here was broader in scope than what has occurred in the past, this read-only approach is similar to the kind of limited access the Bureau has provided to auditors for other Treasury non-payment systems, though even in those scenarios the availability of production data was significantly limited. [my emphasis]

Gioeli goes on to describe how, starting on February January 28, the Bureau gave Elez source code in a sandbox environment.

16. On January 28, 2025, the Bureau provided Mr. Elez with the Bureau laptop and with copies of the source code for PAM, SPS, and ASAP in a separate, secure coding environment known as a “secure code repository” or “sandbox.” Mr. Elez could review and make changes locally to copies of the source code in the cordoned-off code repository; however, he did not have the authority or capability to publish any code changes to the production system or underlying test environments. This repository was separate from Fiscal Service’s typical code development environment, and unlike the usual code development environment, this new repository was segmented, to ensure that no changes to the operative source code could be made. [my emphasis]

Then, six days after giving him that sandbox access, using the same laptop, they gave him read-only access to first two and then one more systems.

17. On February 3, 2025, consistent with the engagement plan and mitigation measures developed, Mr. Elez was provided with read-only access, through his Bureau laptop, to the certain BFS systems. The read-only access that Mr. Elez was provided gives the user the ability to view and query information and data but does not allow for any changes to that information and data within its source system. While this reduces risk, it does not fully eliminate the risks identified in the assessment (for example, the risk of overburdening the system with a complex read-only query). Specifically, Mr. Elez was provided read-only access to the Payment Automation Manager (PAM) Database, Payment Automation Manager (PAM) File System, and, subsequently on February 5, the Secure Payment System (SPS) Database.

After he got that access, per a review of the logs, Elez copied some files from the active database onto his Bureau laptop, on which he had the source code.

18. ISS configured his network access and assisted him in setting up the necessary tools to connect to the PAM database on February 3. His access was closely monitored by multiple BFS administrators throughout the process on February 3. That same day, he received a “walk-through” demonstration of two BFS payment systems, the PAM database and the PAM file system (the system that controls the payment file “landing zone” discussed above), to see how the systems worked. He logged in with his read-only access to these systems on February 3 during this “walk-through” demonstration. The Bureau is in the process of reviewing the logs of Mr. Elez’s activity on his Bureau laptop, and this review remains ongoing. Based on the preliminary log reviews conducted to date, it appears that on February 3, Mr. Elez copied two USAID files directly from the PAM database to his BFS laptop; on February 4 and 5, Mr. Elez accessed the PAM file system; and on February 5, Mr. Elez accessed the PAM payment processing database. These activities are consistent with the read-only access that Mr. Elez was provided and did not change or alter any BFS payment system or record within their source systems. As noted, reviews of Mr. Elez’s work are still actively occurring; I do not have any more detail to provide at this time about his activities with respect to PAM. [my emphasis]

Then, on February 5, Elez got access to the payment system itself — again, with the same laptop on which he had source code.

19. Due to scheduling constraints, Mr. Elez was unable to meet with Bureau personnel to set up his access to the SPS database until February 5. On that date, lSS held a virtual walk-through session to help him to connect to the SPS database. He accessed this database exclusively under the supervision of Bureau database administrators in a virtual walkthrough session. According to the preliminary review of logs the Bureau has conducted to date, it appears Mr. Elez accessed the SPS database only once during that walk-through demonstration on February 5. It does not appear that he accessed the database again. As part of the ongoing review, additional log reviews are currently underway to confirm this. Mr. Elez never logged into ASAP, CARS, or ITS.gov, as technical access to those systems was never established for him. [my emphasis]

The next day, “it was discovered” (Gioeli does not say by whom, which means we’re not seeing a declaration from that person) that Elez actually “had mistakenly been configured” with read/write access, rather than “read only.”

20. On the morning of February 6, it was discovered that Mr. Elez’s database access to SPS on February 5 had mistakenly been configured with read/write permissions instead of read-only. A forensic investigation was immediately initiated by database administrators to review all activities performed on that server and database. The initial investigation confirmed that all of Mr. Elez’s interactions with the SPS system occurred within the supervised, walk-through session and that no unauthorized actions had taken place. His access was promptly corrected to read-only, and he did not log into the system again after his initial virtual over-the-shoulder session on February 5. To the best of our knowledge, Mr. Elez never knew of the fact that he briefly had read/write permissions for the SPS database, and never took any action to exercise the “write” privileges in order to modify anything within the SPS database—indeed, he never logged in during the time that he had read/write privileges, other than during the virtual walk-through – and forensic analysis is currently underway to confirm this. [my emphasis]

Throughout his declaration, Gioeli stresses that they’re still investigating whether Elez did something unauthorized with his access.

21. As noted above, the Bureau used several cybersecurity tools to monitor Mr. Elez’s usage and continuously log his activity. While forensic analysis is still ongoing, Bureau personnel have conducted preliminary reviews of logs of his activity both on his laptop and within the systems and at this time have found no indication of any unauthorized use, of any use outside the scope that was directed by Treasury leadership, or that Mr. Elez used his BFS laptop to share any BFS payment systems data outside the U.S. Government.

And his declaration stops short of saying that some mitigation techniques were used. For example, Gioeli says that the enhanced monitoring on Elez’ Bureau laptop had the ability to “block the use of external peripherals (such as USB drives or mass storage devices)” and access to the cloud, but it doesn’t say whether those functionalities was used.

Plus, Gioeli’s declaration makes it clear that they have’t involved Elez in any review of his access. No one has asked Elez, for example, whether he knew he had write access to the payment system.

Similarly, in an earlier declaration submitted in the parallel DC case, Thomas Krause gave a very couched answer about whether Elez had has any ongoing access.

I currently have no reason to believe Mr. Elez retains access to any BFS payment data, source code, or systems.”

Did anyone think to ask the guy? Does anyone know where that guy is? Are you going to interview him? Or is someone deliberately trying to keep him from being questioned further?

Worse still, Thomas Krause declaration submitted in the NY case doesn’t even say that Elez has left Treasury — only that he has resigned from the role of, “working closely with engineers at the Bureau of the Fiscal Service (BFS) on information technology (IT) matters in service of BFS’s mission to promote financial integrity and operational efficiency of the federal government through accounting, financing, collection, payment, and other relevant BFS services.”

On February 6, 2025, Mr. Elez submitted his resignation from this role. On that same day, he turned in his Treasury laptop, BFS laptop, access card, and other government devices; his BFS systems access was terminated; and he has not conducted any work related to the BFS payment systems since that date.

Elez was made a Treasury employee — contrary to early reports, he was not a SGE. That may make it easier to shuffle him off somewhere else.

What Gioeli describes is the panic that ensues when a guy who had high level access quits unexpectedly. And to date, we’ve never been given a formal explanation of why he quit — or whether he was asked to do so. We certainly can’t reconcile the claims that he has been reinstated with claims that he’s not doing what he was doing at Treasury.

Everyone has always assumed that Elez quit because his racism was discovered. But given the timeline, we can’t rule out that he quit because of the access concerns (and ongoing investigation) at Treasury.

Timeline

January 21: Elez hired.

January 23: Krause hired.

January 26: Treasury focuses on USAD. Treasury also adopts a 4-6 week engagement plan.

January 28: Bureau provides Elez with Bureau laptop copies of the source code for PAM, SPS, and ASAP in sandbox.

January 31: Treasury focuses on TAS codes; Elez assists in “automating” manual review of payments. “A high-ranking career official at Treasury also raised the issue of risks from DOGE access in a memo to Treasury Secretary Scott Bessent.”

February 3: Treasury gives Elez access to PAM. Booz threat contractor delivers report warning of grave insider threat.

February 5: Treasury gives Elez access to SPS, the payment system.

February 6 (afternoon): Elez resignation.

February 7: Treasury flags but then approves four payments. WaPo publishes story about Booz report and Booz contractor is fired.

February 8: Paul Engelmeyer limits Krause’s access.

February 10: Millenium Challenge Corporation submits, but then requests not to process, a payment.

Documents

Opposition to Stay

Thomas Krause Declaration: Describing the plan to use technology to provide more oversight over payments (citing three Biden-era GAO reports, not anything DOGE has discovered).

Vona Robinson Declaration: Describing that the only payment that has been intercepted at Treasury was a payment to the Millenium Challenge Corporation.

Michael Wenzler Declaration: Describing the hiring, employment status, revisions thereof, of Thomas Krause and Marko Elez, and also confirming Elez’ resignation from Treasury.

Joseph Gioeli Declaration: Describing the circumstances of Elez’ access and the investigation into what he did with it.

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