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    How Elon Musk’s billionaire Doge lieutenant took over the US’s biggest MDMA company

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    View image in fullscreenMonths before Antonio Gracias took a leading role in the dismantling of the federal government by the “department of government efficiency” (Doge), he was at Burning Man.In the dusty Nevada desert, Gracias, a billionaire private equity investor and one of Elon Musk’s closest friends, attended Nova Heaven, a sunrise rave tribute to victims of the Hamas-led 7 October terrorist attack, and found himself dancing next to Rick Doblin – the US’s most prominent advocate for psychedelic drugs.As hundreds of burners shuffled their sandy feet to psytrance music, Gracias started up a conversation. He had a piece of business advice.Doblin, 71 with an avuncular smile and tranquil, confident demeanor, is the founder of the Multidisciplinary Association for Psychedelic Studies (Maps), and has spent decades trying to legalize drugs such as MDMA, commonly known as ecstasy, for use in the treatment of trauma.Once mostly viewed as a party drug, medical researchers and advocates have seen promising results when using MDMA as a therapy aid. Gracias is a believer. He gave Maps $1m in 2020 and poured another $16m into funding psychedelics research at Harvard in 2023. Although his usual billionaire-casual attire would look more at home on Shark Tank than at a rave, he is part of a growing movement among Silicon Valley’s right wing that has become enamored with the potential – both therapeutic and commercial – of consciousness-altering drugs.Earlier that year, the pharmaceutical arm of Maps, a for-profit public benefit corporation called Lykos Therapeutics, had raised $100m as it awaited a Food and Drug Administration (FDA) decision on whether to allow MDMA for psychotherapy treatment of post-traumatic stress disorder (PTSD). Approval could turn Lykos into a multibillion-dollar pharma enterprise with exclusive US rights to sell the drug for therapeutic use for a period of six years.View image in fullscreenA few weeks before Burning Man, however, the FDA rejected the application over concerns about inadequate trial data. Doblin announced that he was exiting Lykos’s board, and the company laid off 75% of its staff. The business was in turmoil.On the playa – according to Doblin’s recounting of events – Gracias told him that the FDA’s rejection wasn’t his fault and blamed the company’s other leaders for the failure. Let Lykos go bust and start again with a clean slate, Gracias advised, before the two men parted ways in the desert.Weeks after their dancefloor meeting, Doblin reached out to Gracias with a proposition. The investors and board of Lykos were not going to let the company go bankrupt. Would Gracias consider launching a takeover bid and seizing operational control?As they corresponded about a potential plan, Doblin put Gracias in contact with the British hedge fund billionaire Christopher Hohn. By January, just before Gracias joined Doge, Gracias and Hohn were working on a takeover of Lykos.At the end of May, Lykos confirmed in a brief statement on its website that foundations owned by Gracias and Hohn had led a $50m Series B funding round that recapitalized the business. The sparse post included few details of the deal, and years of previous news releases from Lykos no longer appeared on the company’s website. In the following weeks, Lykos appointed a new CEO and chief medical officer and remade the board of directors. Gracias and Hohn are now in control of the most prominent MDMA therapy company in the US. Gracias, Doblin said, is taking a hands-on role in its operations.“It was the magic of Burning Man,” Doblin said. “I was sort of looking for a white knight that would come in and would be more focused on healing and on public benefit.”Gracias’s new leadership of Lykos comes at a pivotal moment for psychedelics treatment in the US. Top Trump administration health officials, such as the secretary for health and human services, Robert F Kennedy Jr, have said they are open to accelerating the use of psychedelic therapy while wealthy tech backers have moved to solidify control over the industry.But the takeover also highlights the ethical questions posed by Doge, even as its prominent leader, Musk, has left the government. Doge staffers like Gracias have received unprecedented access to US agencies, including their processes and staff. There have been few guardrails on their work, or the ways they leverage that access in their non-governmental lives. Just a few months ago, it was hard to imagine that an active government employee at an agency embedded across the government would assume control over a pharmaceutical company seeking FDA approval.“Maps and Gracias are going to try to seize the moment that we’re in,” said Ifetayo Harvey, a former Maps employee and executive director of the People of Color Psychedelic Collective. “I think the aim is to get MDMA-assisted psychotherapy approved by the FDA by any means necessary.”The Guardian reached out to Gracias via Lykos and his private equity firm with an interview request, a request for comment and a detailed list of questions. Neither Lykos nor the firm responded.Of drugs and DogeIn late July, a group of workers from the Service Employees International Union, the largest healthcare union in the US, marched down West Washington Boulevard in Chicago. They gathered outside the Valor Equity Partners investment firm, where Gracias is founder and CEO, to protest about his work with Doge, and what they see as its attacks on social security. At the front of the march, two demonstrators carried a banner with a message painted in bold white letters: “Antonio Gracias we will not forget your cruelty.”While Gracias was gaining control of Lykos, he had also been engaged in another power play, as a member of Doge, which shortly after Donald Trump’s inauguration had begun gutting federal agencies and seizing control over government databases.Gracias arrived at Doge as a longtime friend and business associate of Musk, with a relationship going back more than two decades. He was an early investor in Tesla through Valor Equity Partners, and was on the board of the automaker from 2007 until 2021. He still serves on the board of SpaceX, Musk’s rocket company, and is an investor in Neuralink, Musk’s brain chip venture. Valor has reportedly been in talks with lenders to raise $12bn for Musk’s xAI artificial intelligence firm. During Musk’s takeover and gutting of Twitter in 2022, Gracias acted as a mix of enforcer and proxy who tersely communicated Musk’s dictates to staff, according to the book Character Limit. Last year, he also contributed $1m to Musk’s America Pac effort to re-elect Trump.View image in fullscreenGracias and Musk’s ties go beyond business. The two men have gone on multiple personal and family vacations together, including a trip to the magician David Copperfield’s Bahamas island, according to a deposition Gracias gave in a 2023 court case. They have spent Christmas and other holidays together, and Gracias was a groomsman at the wedding of Musk’s brother Kimbal.Gracias and Musk have also taken illegal drugs together, witnesses told the Wall Street Journal. Multiple news outlets have reported that Musk has himself used MDMA and psilocybin mushrooms, as well as recreationally used ketamine. Musk has stated that he has used prescription ketamine to treat depression, and has vehemently denied reports of drug use impairing his abilities.As one of Musk’s most prominent staffers at Doge, Gracias began working at the Social Security Administration (SSA) and led a taskforce that involved accessing immigration data at the Department of Homeland Security. He appeared on stage alongside Musk in March to present misleading claims about immigrants and public benefits, and then in April on the All-In podcast promoted the conspiracy theory that Democrats were attempting to “import voters”, a favorite theory of Musk’s.Gracias claimed during his media appearances to be rooting out corruption at the SSA and specifically touted his efforts to uncover proof of immigrants illegally voting en masse. Yet the cases Gracias cited were hardly indicative of widespread malicious voter fraud, experts told NPR, such as a recently immigrated Ukrainian mother and daughter who told investigators they simply didn’t know they couldn’t vote.Gracias remained with Doge even after Musk’s very public breakup with Trump, with Politico reporting that he regularly visited the White House to meet with top officials such as the deputy chief of staff, Stephen Miller.Double-dipping with DogeGracias’s time in government ended in July, after his presence at Doge caught the attention of the AFL-CIO, the nation’s largest federation of unions. An AFL-CIO report in June raised questions about Gracias’s fiduciary responsibilities as CEO of Valor as the private equity firm manages retirement plans for public employees such as teachers and municipal workers.“We noted Antonio Gracias appeared to be moonlighting for Doge when he’s supposed to be running Valor for the benefit of those pension plans,” said Brandon Rees, deputy director of corporations and capital markets for the AFL-CIO.The report cited flight records, which the Guardian has viewed, that showed Valor’s private jet made 23 trips from the Washington DC region between January and April – suggesting Gracias was spending a large amount of time at Doge. In late July, the American Federation of Teachers sent a letter to nine public pension funds asking them to review the union’s investments with Valor, worth about $1.8bn.One week later, Gracias announced in a lengthy statement on X that he had already resigned from Doge on 4 July and denied claims he had abandoned his responsibilities.“I hope this is a moment where our compassion can be stronger than our anger,” he wrote.Valor Equity Partners did not respond to requests for comment on this article and a detailed set of questions.The pension fund controversy highlighted the ethical gray areas that Doge created, as some of its top staffers chose to pull double duty between public and private work. While Doge claimed to function with transparency, it has made public only a partial explanation of how its staffers accessed and used government data, as well as how their work may have informed their own future business endeavors. Doge’s broad mandate to reshape federal agencies allowed it to operate akin to a parallel government with little oversight or disclosure about its activities, ethics watchdogs and labor groups allege, and created larger concerns about what might constitute conflicts of interest for its staffers.“With the lack of transparency, it leaves us really grasping at what it even means to be Doge,” said Faith Williams, a policy director at the Project on Government Oversight, a non-profit watchdog group. “We have seen so many, if not outright conflicts of interest then potential for conflicts of interest, and if not outright corruption, potential for corruption.”That hazy dynamic raises questions about Gracias’s new leadership of Lykos, according to ethics experts, and what it might mean for a former Doge member to now be seeking regulatory approval. Although Gracias worked primarily with the SSA, Doge’s staffers have also been embedded in the FDA and fired employees reviewing clinical trials for Musk’s Neuralink.Government ethics rules generally prohibit federal employees from representing private enterprises to agencies while working in government. There are also rules limiting how former employees can represent private interests even after they have left the government, in an effort to prevent workers from trying to seek favor for a future regulatory decision.“You can’t be greasing the wheels and then say, ‘OK, now I’m going to quit and go pursue that approval,’” said Cynthia Brown, senior ethics counsel at the non-profit watchdog group Citizens for Responsibility and Ethics in Washington.Doblin denied that Gracias’s role at Doge posed any conflict of interest, saying that the billionaire did not work with the FDA. Lykos did not respond to questions related to Gracias’s work at Doge.Ecstatic expectations – dashedBefore the FDA rejected Lykos’s application, the psychedelics world had been riding high, anticipating that MDMA would soon be approved and behind it a slew of other treatments. Venture capitalists, politicians and wellness-minded celebrities had descended on the industry with a fervor, attending events such as Maps’ annual psychedelics conference in Denver, Colorado, in droves. Recent years featured speakers including future NFL hall of fame quarterback Aaron Rodgers, former Texas governor Rick Perry and former senator Kyrsten Sinema.View image in fullscreenThe 2024 application was the zenith of Doblin’s four-decade campaign to legalize MDMA for therapy purposes, part of his goal to reach “net zero trauma by 2070”. He founded Maps in 1986 on the premise that psychedelic drugs, which the US has long designated as illegal schedule 1 substances with a high potential for abuse, could have beneficial therapeutic uses and had been unfairly vilified, much like cannabis. The idea has gained significant scientific support, with preliminary evidence from studies showing that MDMA therapy can reduce PTSD symptoms.Doblin has also suggested more grandiose and outre uses for MDMA therapy, such as conflict resolution between Israelis and Palestinians. Maps has meanwhile trained therapists in a wide range of countries, including conflict zones such as Ukraine, on how to conduct therapy with the drug.As Doblin sought out funding and support for Maps and Lykos over the past decade, former employees say he began looking to broader circles of investors. They included advocates for military veterans interested in treating PTSD, big names in corporate finance and, controversially, the Republican donor Rebekah Mercer.One method was to court investors with invitations to parties where drugs were being used, according to Harvey, the former Maps employee.“Definitely part of their fundraising strategy is ‘Meet rich people at Burning Man, do psychedelics with them and get Maps money,’” Harvey, who was Doblin’s executive assistant in 2015, said.Maps denied that it used drugs to as a means of drumming up investment.“MAPS conducts all fundraising activities with the highest integrity and maintains strict ethical boundaries in all donor relationships and fundraising activities. MAPS does not supply controlled substances at any events or gatherings, nor do we use substances as a fundraising tool or strategy,” Maps said in a statement.Doblin also told Business Insider last year that giving drugs to donors was “not common”.Psilocybin ValleyGracias’s takeover of Lykos adds to a constellation of venture capitalists and tech world elites who have invested heavily in psychedelics. Another major player alongside Lykos is Atai Life Sciences, which is testing a synthetic version of a drug secreted by a species of toad, and is backed by Peter Thiel’s VC firm.While the juxtaposition of investors known for companies such as Palantir or initiatives like Doge may seem incongruous with the wellness world’s pronouncements about psychedelics, it is actually a culmination of a symbiotic relationship that stretches back to at least the 1970s.“There’s been decades and decades of overlap between Silicon Valley and psychedelics,” said Brad Burge, founder of psychedelics PR firm Integration Communications and a former Maps marketing director. “It’s just new in this epoch to be seeing this level of funding from highly public people.”Gracias is not even the only member of Doge with ties to the psychedelics industry. Before joining the agency, Alexandra Beynon worked as head of engineering for her husband’s at-home ketamine therapy company Mindbloom. Dylan Beynon, who founded the company, posted on X that he had previously met with Gracias to talk about an investment with Mindbloom, although no partnership materialized.Nor is Gracias the only member of Musk’s orbit to have donated to Maps. The former Tesla and SpaceX board member Steve Jurvetson, who the Wall Street Journal reported attended parties and consumed drugs with Musk, has also donated $2.6m to Maps through a non-profit he founded with his wife. In 2012, the non-profit organization that Musk founded with his brother Kimbal also directly donated $10,000 to Maps. The money went to funding the Temple of Whollyness at Burning Man, a complex wooden art sculpture that tech money helped build before it was ceremoniously burned down.A bump from TrumpGracias’s takeover of Lykos comes at a fortuitous time for the psychedelics industry, with the Trump administration and Republican lawmakers embracing alternative drugs as part of the “Make America healthy again” movement. Although the Biden administration was also open to the use of psychedelics therapy, experts say, some top Trump health officials have gone further, calling for accelerating and re-evaluating the FDA review process.“This line of therapeutics has tremendous advantage if given in a clinical setting, and we are working very hard to make sure that that happens within 12 months,” Kennedy said during a House committee meeting in late June, adding that the FDA commissioner, Marty Makary, agreed that psychedelics were a promising treatment.Trump’s pick for surgeon general, Casey Means, has praised using psilocybin mushrooms for therapy as one of the most meaningful experiences of her life, much like Steve Jobs. Her brother Calley Means, one of Kennedy’s top advisers, meanwhile told Politico in June that the Republican party had become the “party of psychedelics research”.The new administration’s outlook is potentially good news for Lykos, which is still recovering after the FDA ruled that the clinical trials it published in 2021 and 2023 suffered from bias issues and did not meet standards. One concern from those reviewing the studies was the difficulty of a double-blind test, since it was obvious to participants who got MDMA and who did not.The FDA’s ruling required Lykos to conduct another phase 3 clinical trial, probably a years-long endeavor that could cost millions. The company sought to contest the findings, while some advocates, including Doblin, blamed the anti-corporate psychedelics group Psymposia, accusing it of influencing the FDA against approval. Psymposia denied it was the sole reason for the FDA rejection.“The FDA rejected Lykos for flawed science, not because of Psymposia, and the public still deserves better than pseudoscientific therapy,” Psymposia said in a statement. “Gracias’ willingness to back a company rejected for safety failures while pushing disinformation at Doge suggests a consistent disregard for facts in pursuit of profit.”Other researchers took a middle ground, believing that while MDMA therapy showed promise, it wasn’t ready for prime time.“It’s very possible that MDMA is a safe and effective treatment under the right conditions,” said Mason Marks, lead of the Project on Psychedelics Law and Regulation at Harvard Law School’s Petrie-Flom Center. “But I don’t think that was demonstrated adequately by the data, and there were a lot of question marks.”While Trump health officials project optimism, there is also wariness within the psychedelics industry that the new administration’s support for psychedelics therapy could risk politicizing the drugs or lead to a loosened scientific review of their safety and efficacy. Such a result could end up setting back the industry in the long run, some advocates argue.“If it’s politicized in that way, then what happens in the future when we have a differently politicized administration?” said Burge. “Are they going to be able to roll that back and cite that there wasn’t sufficient evidence, and that psychedelic therapies were only approved because this particular administration felt like doing so?”There’s little that would prevent the FDA under Kennedy and its new commissioner Makary from reversing the agency’s ruling against Lykos, Marks said. The FDA is not bound by its previous decision and has the power to request a less stringent follow-up trial, throw out its decision altogether or authorize a substance for emergency use. In June, the FDA also announced a Commissioner’s National Priority Voucher program that would allow qualifying drug developers to shorten the agency’s review time from 10 to 12 months to one to two months.“I can’t really speak on the negotiations with the FDA,” Doblin said. “I hope that instead of a phase 3 study that the FDA may determine, I believe, that the data we gathered was valid.”Any rollback of the ruling, even a partial one, could carry extraordinary benefits for Lykos and Gracias. More

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    Elon Musk’s Doge put sensitive social security data at risk, whistleblower says

    Elon Musk’s so-called “department of government efficiency” (Doge) copied and uploaded sensitive Social Security Administration (SSA) data to a vulnerable cloud server, potentially risking the safety of hundreds of millions of Americans and violating federal privacy laws, according to a whistleblower complaint filed on Tuesday.The complaint from Charles Borges, the chief data officer at the SSA, alleges that Doge staffers effectively created a live copy of the entire country’s social security data from its numerical identification system database. The information is a goldmine for bad actors, the complaint alleges, and was placed on a server without independent oversight that only Doge officials could access.“These actions constitute violations of laws, rules, and regulations, abuse of authority, gross mismanagement, and creation of a substantial and specific threat to public health and safety,” the complaint states.The whistleblower complaint, first reported by the New York Times, is one of the most high-profile insider accounts of how Doge staffers have allegedly taken confidential government information and used it for their own ends, at great risk to the public. The database that Doge officials allegedly uploaded to the cloud contains highly personal information about hundreds of millions of US citizens and residents. It includes details such as names, place and date of birth, race and ethnicity, names of family members, phone numbers, addresses and social security numbers.The Social Security Administration denied that the sensitive data had been compromised and stated that it takes all whistleblower complaints seriously.“SSA stores all personal data in secure environments that have robust safeguards in place to protect vital information. The data referenced in the complaint is stored in a longstanding environment used by SSA and walled off from the internet,” an SSA spokesperson said. “We are not aware of any compromise to this environment and remain dedicated to protecting sensitive personal data.”The non-profit Government Accountability Project whistleblower organization is providing Borges legal counsel in the case and filed his complaint with the US Office of Special Counsel, as well as members of Congress. The complaint calls on lawmakers to swiftly take action to safeguard public data and provide more oversight.“Placing a live copy of Americans’ social security data in a cloud environment without independent oversight puts everyone with a social security number and their families at real risk of identity theft, interrupted benefits, and tax or medical fraud that can follow them for years,” said Andrea Meza, director of advocacy and strategy at the Government Accountability Project and the legal counsel on the case.Borges is a career civil servant and navy veteran who joined the SSA in late January, and was previously chief data officer for naval air systems command. His complaint alleges that he repeatedly raised concerns with his superiors about Doge officials improperly accessing data but that no action was taken.“Mr Borges spent weeks pressing for fixes inside SSA; when nothing changed, he used the protected channels federal whistleblower law provides,” Maza said. “We’re calling for immediate oversight and an independent audit to investigate these violations, prevent future problems, and restore required safeguards.”Lawmakers and ethics watchdog groups, as well as former and current federal employees, have long accused Doge of accessing government data with a wanton disregard for security protocols and transparency. A separate whistleblower disclosure in April raised concerns that Doge employees had potentially exposed sensitive National Labor Relations Board information, and alleged it appeared that Doge employees attempted to cover up documentation of what data they accessed.As Doge rapidly embedded its staffers across federal agencies earlier this year, it gained access to troves of information from a wide swath of government databases. Although reports have detailed how the agency is using some of that data to further the Trump administration’s immigration crackdown, there has not been a full accounting of why Doge has accessed the public’s data. More

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    Trump threatens to ‘federalize’ DC after attack on Doge staffer

    Donald Trump is threatening to strip Washington DC of its local governance and place the US capital under direct federal control, citing what he described as rampant youth crime following an alleged assault on a federal employee who worked for the so-called “department of government efficiency” (Doge).In a post on his Truth Social platform, the president said he would “federalize” the city if local authorities failed to address crime, specifically calling for minors as young as 14 to be prosecuted as adults.“Crime in Washington, D.C., is totally out of control,” Trump wrote. “If D.C. doesn’t get its act together, and quickly, we will have no choice but to take Federal control of the City, and run this City how it should be run.”The threat received backing from Elon Musk, after the billionaire described an incident in which a member of the Doge team was allegedly “severely beaten to the point of concussion” while defending a woman from assault in the capital.“A few days ago, a gang of about a dozen young men tried to assault a woman in her car at night in DC,” Musk posted on X. “A @Doge team member saw what was happening, ran to defend her and was severely beaten to the point of concussion, but he saved her. It is time to federalize DC.”The victim was identified by friends and the police as Edward Coristine, a 19-year-old known as “Big Balls”, one of Doge’s most recognizable staffers who joined Doge in January. He reportedly left in June, and is currently employed at the Social Security Administration. According to a police report obtained by Politico, Coristine was assaulted at approximately 3am on Sunday by about 10 juveniles near Dupont Circle.Police arrested two 15-year-olds from Maryland, a boy and a girl, as they attempted to flee the scene, and charged them with attempted carjacking. A black iPhone 16 valued at $1,000 was reported stolen during the incident.Trump’s post, which included images of a bloodied and shirtless Coristine, concluded: “If this continues, I am going to exert my powers, and FEDERALIZE this City. MAKE AMERICA GREAT AGAIN!”Washington DC currently operates under “home rule”, established in 1973, which grants the city an elected mayor and council while maintaining ultimate congressional oversight. No president has attempted to revoke this arrangement since its creation.Trump’s threat could theoretically take several forms. The constitution grants Congress broad authority over the federal district, though completely suspending local governance would probably require congressional legislation. Trump could also deploy federal law enforcement officers or national guard troops under executive authority, as he did during 2020 protests when federal forces cleared Lafayette Square outside the White House over local officials’ objections.But fully stripping the city’s home rule would probably face fierce Democratic opposition in Congress. Any such move would require congressional legislation that Democrats could block or attempt to challenge in federal courts.skip past newsletter promotionafter newsletter promotionThe president targeted DC’s juvenile justice system specifically. “The Law in D.C. must be changed to prosecute these ‘minors’ as adults, and lock them up for a long time, starting at age 14,” he wrote, referring to alleged attackers he described as “local thugs” and putting the word “youths” in quotation marks.Washington DC, with a population of about 700,000, has seen violent crime decline in the first half of 2025 compared with the previous year, and 2024 marked a 30-year low, according to a pre-Trump January report by the Department of Justice. The Democratic-controlled city has frequently clashed with Trump over federal interventions and has long sought statehood, which would grant it full self-governance and congressional representation – which Republican lawmakers have opposed.The office of the DC mayor, Muriel Bowser, declined a request for comment. More

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    Elon Musk claims his America party will change US politics. Experts disagree

    “You want a new political party and you shall have it!” Elon Musk declared in early July.The world’s richest man is never one to shy away from grandiose statements, and he continued: “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom.”The America party, Musk hopes, will be a viable alternative to the Democratic and Republican parties: a political organization that can influence the future of US politics. He has mooted running candidates for two to three Senate seats and up to 10 House districts. Given the tight divide between Republicans and Democrats in Congress, Musk believes capturing the small number of seats “would be enough to serve as the deciding vote on contentious laws”.Given there is consistently strong support for an alternative to the Big Two parties, it should be a good idea, right?Wrong, said Bernard Tamas, professor of political science at Valdosta State University and author of The Demise and Rebirth of American Third Parties.“At this moment in American politics, I see no evidence that you’re going to get another party winning seats in Congress and actually being able to have an impact in the government,” Tamas said.“It’s not just the money that Democrats and Republicans have. They have all the resources. They have the money. They have 150 years of structure. They have all the professional politicians, and they have all the consultants, and they have all the Madison Avenue ad companies working for them.”The whole concept of the America party seemingly came together in a matter of weeks, following the famous row between Musk and Donald Trump. And as with many ideas born out of spite and fury, certain elements appear to have not been fully thought through. Americaparty.com, for example, is already registered to someone else, who now appears to be trying to sell the domain name for $6.9m. On X, which Musk owns, @AmericaParty was already taken, so the new venture had to opt for @AmericaPartyX.It’s not yet clear what the party will stand for, beyond opposition to Republicans’ ballooning of the national debt. Musk has yet to elaborate on the “contentious laws” his politicians would challenge, and there is no party platform or manifesto.In any case, third parties have rarely, if ever, been successful in the way Musk envisages. But where they can make a difference is in highlighting issues and pressuring the main two parties to act.“In terms of the parties that really had a big impact, they didn’t win seats,” Tamas said. “The job of third parties is disruption. It’s to sting like a bee. It’s to cause pain.”Tamas pointed to the Progressive party in Wisconsin and the Minnesota Farmer-Labor party, which managed to win key victories over relief for unemployed constituents and banking reform in the state, as examples of political groups that have managed to inflict such a bee sting. That doesn’t appear to be what Musk is going for, however, despite there being an opportunity for a stinging insect.“Here you have the Republican party moving farther and farther to the right, and farther and farther in this kind of Maga direction, with nobody in the Republican party in Congress willing to stand up at all to Trump or this movement,” Tamas said.“It’s a perfect opening for a third party. This is what it looks like historically. But you’re not going to replace them. What you do is you attack them for this. You’re trying to pull them back towards the center.“This is how the third parties have always succeeded. The idea is you cause them pain, and what they do, if it works, is they shift back towards something that reflects more what the public wants, or deals with the issues that the third party is bringing up.”Parties that have pursued the getting-people-elected approach have fared less well than the pain-inflictors. Forward party was founded by Andrew Yang, who had previously run for the Democratic presidential nomination, in 2022, with the slightly call-to-arms style slogan of “Not left. Not right. Forward.” These days the party barely features on the national political landscape, although it does continue to bleat out social media content – a recent 4 July post on Instagram attracted almost 40 likes.At its inception, Forward party figures claimed both the Republican and Democratic parties had become too radical, and said their new venture “can’t be pegged to the traditional left-right spectrum because we aren’t built like the existing parties”.Somehow, a promise to not really have a firm ideological stance on anything isn’t a very sexy pitch to voters. Among the “elected affiliates” named on Forward’s website are the former mayor of Newberry, Florida, a town of 7,300 people, and a man who “is responsible for sanitation and utilities” in the Connecticut borough of Stonington – population 976 people.There is widespread support for a third party. Polls have repeatedly shown that people want a third party. But what that looks like remains to be seen. In Musk’s own survey on social media asking if people wanted him to start a new party, only 65% said yes, and 34% said no, although a poll in early July showed that 14% of voters said they would be very likely to support the party, with 26% somewhat likely.There are already issues with the America party becoming a viable third choice. Musk is approaching eccentric political advisers, including Curtis Yarvin, a rightwing tech blogger who has argued American democracy has run its course and the country should instead be run by a dictator-esque CEO.A more fundamental problem with the America party is unique to Musk: people really don’t like him. A poll last week found that 60% of Americans have an unfavorable view of Musk, compared with 32% in favor.America shall have a third party, Musk declared at the start of his new venture. But does America want this kind of third party, with these kind of aims, run by this kind of man? More

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    Doge wants to replace our institutions with a tech utopia. It won’t work | Mike Pepi

    Elon Musk has stepped away from Doge with very little “efficiency” to show for it. While it may have been more of a showpiece than real policy, this brutal and short experiment in Silicon Valley governance reveals a long-simmering battle between digital utopians and the institutional infrastructures critical to functioning democracies.Doge’s website dubiously claims $190bn in savings. The receipts show that they are less about efficiency than they are aimed at effective dissolution, a fate met by USAID, the federal agency responsible for distributing foreign assistance.Don’t be fooled. These brash new reductions are not just your garden-variety small-government crusades or culture-war skirmishes. This administration’s war on institutions derives from the newfound power of Silicon Valley ideology – a techno-determinism that views each institution’s function as potential raw material for capture by private digital platforms.All the while, Elon Musk sold the White House on an “AI-first strategy” for the US government. The recent executive order Removing Barriers to American Leadership in Artificial Intelligence mandates that barely tested Silicon Valley AI be jammed into the government’s work. It directs agencies to use AI to “lessen the burden of bureaucratic restrictions”. This is a thinly veiled attempt not just to reduce institutional activities; it’s also a degradation play.Doge makes plain an often misunderstood tension: Silicon Valley’s final dream is a world without institutions. Since the rise of the internet, startups have long encouraged, and profited from, institutional decline. This anti-institutionalism goes back to the roots of computing. Charles Babbage’s difference engine, central to modern computing, was built on technologies meant to control labor. It was a reflection of Babbage’s belief that the highest intention of the factory manager was to reduce the skill and cognitive complexity of laborers’ tasks. If the machine could manage production, humans – now smoothed-out automatons – would hardly need accompanying social protections, or even any governance at all.In 1948, Norbert Wiener founded the discipline of cybernetics, “the science of control and communications in the animal and machine”. This automated governance was eventually brought into direct competition with public institutions. The revolt against the state took many forms in the history of computing thereafter, from the libertarian California ideology (“information wants to be free”) to the very idea that a new “cyberspace” would be liberated from governments. Here the individual is an entrepreneur of the mind, able to instantly improve their lot without the mediating hand of the institutional form.To get to the real heart of Doge’s ideology, read The Cathedral and the Bazaar, Eric Raymond’s manifesto on building open-source software. For Raymond, cathedrals are “carefully crafted by individual wizards or small bands of mages working in splendid isolation”. This slow, deliberate work is no match for the networked and digitally enabled bazaar, where many software developers move fast by releasing early and often, delegate everything they can, and are open to the point of promiscuity. Something like scripture for computer engineers, Raymond’s ideas soon jumped out of the network and into governance of the physical world, where all human organizations were scrutinized as the maligned “cathedral”.Entrepreneurs loved this idea, too. The management method known as the “lean startup” is a lightweight program of data-driven optimizations designed to quickly scale businesses. Instead of human labor and judgment, lean startups use data and algorithms to experiment their way toward governance.But there’s a catch: a public institution is not supposed to be run like a digital startup. Silicon Valley may have carved out a niche in which its organizational philosophies mastered food delivery apps, AI girlfriends and money-laundering shitcoins, but the moment they take these methods to institutions entrusted with public welfare, they’ve lost the plot. Governments don’t have customers – they care for citizens. If classical liberalism had the state and its many sovereign institutions, and neoliberalism had the divine hand of the free market, today’s platform class elevates computation as the ultimate arbiter of truth. When presented with an institutional force, the platform class first asks: how could this be delivered by way of a digital platform?Digital technology doesn’t have to be this way. Good software can augment institutions, not be the rationale for their deletion. Building this future requires undoing Silicon Valley’s pernicious opposition to the institutional form. By giving into the digital utopian’s anti-institutionalism, we allowed them to reshape government according to their growth-at-all-costs logic.If the newly empowered digital utopianism goes unchecked, we face a platform-archy where black-box AI makes decisions once adjudicated through democratic institutions. This isn’t just a Silicon Valley efficiency fantasy; it’s on the roadmap of every authoritarian who ever sniffed power.Thankfully, the anti-Doge backlash was swift. The abrupt layoffs backfired, leading many Americans to fully understand just how much research and resources for advancing science, medicine and culture are tied to federal support.In the private sector, since capital is no longer free after the federal government hiked interest rates in 2022, the growth of the big Silicon Valley platforms have almost completely stalled. In search of an answer, Silicon Valley is making a big bet on AI, overwhelming users with automated answers that hallucinate and mislead at every turn. It’s becoming harder and harder for the average person to buy what the digital utopians are selling.The response to this assault on our institutions might be a kind of Digital New Deal – a public plan for institutions in the AI era. This 21st-century economics must go well beyond solving for mass unemployment. Reconstructing the institutional foundations of public goods such as journalism, libraries and higher education requires more than just restoring the public funds stripped by Doge. It will require forceful assertions about their regulatory value in the face of a fully automated slop state. Governments come and go, but free and open institutions are critical to the functioning of democracy. If we make the mistake of misrecognizing digital platforms for public institutions, we will not easily reverse Doge’s mistakes.

    Mike Pepi is a technologist and author who has written widely about the intersection between culture and the Internet. His book, Against Platforms: Surviving Digital Utopia, was published by Melville House in 2025 More

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    US supreme court clears way for Trump officials to resume mass government firings

    The US supreme court has cleared the way for Donald Trump’s administration to resume plans for mass firings of federal workers that critics warn could threaten critical government services.Extending a winning streak for the US president, the justices on Tuesday lifted a lower court order that had frozen sweeping federal layoffs known as “reductions in force” while litigation in the case proceeds.The decision could result in hundreds of thousands of job losses at the departments of agriculture, commerce, health and human services, state, treasury, veterans affairs and other agencies.Democrats condemned the ruling. Antjuan Seawright, a party strategist, said: “I’m disappointed but I’m not shocked or surprised. This rightwing activist court has proven ruling after ruling, time after time, that they are going to sing the songs and dance to the tune of Trumpism. A lot of this is just implementation of what we saw previewed in Project 2025.”Project 2025, a plan drawn up by the conservative Heritage Foundation thinktank, set out a blueprint for downsizing government. Trump has claimed that voters gave him a mandate for the effort and he tapped billionaire ally Elon Musk to lead the charge through the “department of government efficiency”, or Doge, though Musk has since departed.In February, Trump announced “a critical transformation of the federal bureaucracy” in an executive order directing agencies to prepare for a government overhaul aimed at significantly reducing the workforce and gutting offices.In its brief unsigned order on Tuesday, the supreme court said Trump’s administration was “likely to succeed on its argument that the executive order” and a memorandum implementing his order were lawful. The court said it was not assessing the legality of any specific plans for layoffs at federal agencies.Liberal justice Ketanji Brown Jackson was the sole member of the nine-person court to publicly dissent from the decision, which overturns San Francisco-based district judge Susan Illston’s 22 May ruling.Jackson wrote that Illston’s “temporary, practical, harm-reducing preservation of the status quo was no match for this court’s demonstrated enthusiasm for greenlighting this president’s legally dubious actions in an emergency posture”.She also described her colleagues as making the “wrong decision at the wrong moment, especially given what little this Court knows about what is actually happening on the ground”.Illston had argued in her ruling that Trump had exceeded his authority in ordering the downsizing, siding with a group of unions, non-profits and local governments that challenged the administration. “As history demonstrates, the president may broadly restructure federal agencies only when authorized by Congress,” she wrote.The judge blocked the agencies from carrying out mass layoffs and limited their ability to cut or overhaul federal programmes. Illston also ordered the reinstatement of workers who had lost their jobs, though she delayed implementing this portion of her ruling while the appeals process plays out.Illston’s ruling was the broadest of its kind against the government overhaul pursued by Trump and Doge. Tens of thousands of federal workers have been fired, have left their jobs via deferred resignation programmes or have been placed on leave.The administration had previously challenged Illston’s order at the San Francisco-based ninth US circuit court of appeals but lost in a 2-1 ruling on 30 May. That prompted the justice department to make an emergency request to the supreme court, contending that controlling the personnel of federal agencies “lies at the heartland” of the president’s executive branch authority.The plaintiffs had urged the supreme court to deny the justice department’s request. Allowing the Trump administration to move forward with its “breakneck reorganization”, they wrote, would mean that “programs, offices and functions across the federal government will be abolished, agencies will be radically downsized from what Congress authorized, critical government services will be lost and hundreds of thousands of federal employees will lose their jobs”.skip past newsletter promotionafter newsletter promotionThe supreme court’s rejection of that argument on Tuesday was welcomed by Trump allies. Pam Bondi, the attorney general, posted on the X social media platform: “Today, the Supreme Court stopped lawless lower courts from restricting President Trump’s authority over federal personnel – another Supreme Court victory thanks to @thejusticedept attorneys. Now, federal agencies can become more efficient than ever before.The state department wrote on X: “Today’s near unanimous decision from the Supreme Court further confirms that the law was on our side throughout this entire process. We will continue to move forward with our historic reorganization plan at the State Department, as announced earlier this year. This is yet another testament to President Trump’s dedication to following through on an America First agenda.”In recent months the supreme court has sided with Trump in some major cases that were acted upon on an emergency basis since he returned to office in January.It cleared the way for Trump’s administration to resume deporting migrants to countries other than their own without offering them a chance to show the harms they could face. In two cases, it let the administration end temporary legal status previously granted on humanitarian grounds to hundreds of thousands of migrants.It also allowed Trump to implement his ban on transgender people in the US military, blocked a judge’s order for the administration to rehire thousands of fired employees and twice sided with Doge. In addition, the court curbed the power of federal judges to impose nationwide rulings impeding presidential policies.On Tuesday the Democracy Forward coalition condemned the supreme court for intervening in what it called Trump’s unlawful reorganisation of the federal government. It said in a statement: “Today’s decision has dealt a serious blow to our democracy and puts services that the American people rely on in grave jeopardy.“This decision does not change the simple and clear fact that reorganizing government functions and laying off federal workers en masse haphazardly without any congressional approval is not allowed by our Constitution.” More

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    Donald Trump calls Elon Musk’s new political party ‘ridiculous’ and says Tesla owner is ‘off the rails’ – US politics live

    Welcome to our live coverage of US politics and the second Trump administration.Donald Trump has hit out at Elon Musk’s decision to start and bankroll a new US political party that the tech billionaire believes can offer a viable alternative to the Democrats and Republicans.Speaking to reporters before boarding Air Force One yesterday, the US president said:
    I think it’s ridiculous to start a third party. It’s always been a two-party system and I think starting a third party just adds to the confusion.
    Shortly after speaking about his former ally, Trump posted further comments on his Truth Social platform, writing:
    I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.
    Trump and Musk were formerly close allies, with the Tesla boss and X owner appointed to slash federal spending through the unofficial Department of Government Efficiency (Doge) from January through May.Musk fell out with the Republican president over his sprawling tax and spending plan, signed into law on Friday, which is expected to add at least $3 trillion (£2.2 trillion) to the US’s already huge $37tn (£27tn) debt pile. Musk has argued that the bill, which he has described as “utterly insane and destructive”, would irresponsibly add to the US national debt.Musk, the world’s richest person, posted on X over the weekend that he had set up the America Party to challenge the Republican and Democratic “Uniparty”. The details of the structure of the new venture or a timeline for its creation are still unclear.But some of his social media posts suggests the new political party would focus on two or three Senate seats, and eight to 10 House districts.We will have more on this and other US politics stories throughout the day so stick with us.Donald Trump has said his administration plans to start sending letters on Monday to US trade partners dictating new tariffs, amid confusion over when the new rates will come into effect.“It could be 12, maybe 15 [letters],” the president told reporters, “and we’ve made deals also, so we’re going to have a combination of letters and some deals have been made.”With his previously announced 90-day pause on tariffs set to end on 9 July, the president was asked if the new rates would come into effect this week or on 1 August, as some officials had suggested.“No, there are going to be tariffs, the tariffs, the tariffs are going to be, the tariffs,” the president began uncertainly. “I think we’ll have most countries done by July 9, yeah. Either a letter or a deal.”Sensing the confusion, his commerce secretary, Howard Lutnick, jumped in to add: “But they go into effect on August 1. Tariffs go into effect August 1, but the president is setting the rates and the deals right now.”You can read the full story, by my colleagues Robert Mackey, Lauren Almeida and Lisa O’Carroll, here:The US is extremely mindful of BRICS’ economic might and its growing influence on the diplomatic stage. The group, often described as the developing world’s alternative to the G7 group of nations, has undergone a recent rapid expansion.BRICS was founded by Brazil, Russia, India, China and South Africa, but the group last year expanded to include Indonesia, Iran, Egypt, Ethiopia and the UAE.Some of its members have denounced US tariff policies and have suggested reforms to how major currencies are valued.The group pushes for greater representation for emerging economies and thinks western countries have a disproportionate influence on global organisations like the World Bank and International Monetary Fund.In other news, Donald Trump has widened his trade war after saying the US will impose an additional 10% tariff on any countries aligning themselves with the “anti-American policies” of the BRICS group of developing nations that include China and Russia.Trump wrote on social media:
    Any country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% tariff. There will be no exceptions to this policy.
    His comments came after a joint Sunday statement from the opening of the BRICS summit in Rio de Janeiro in which the group warned the rise in tariffs threatened global trade, continuing its veiled criticism of Trump’s erratic tariff policies.Since his return to the White House, Trump has announced a series of steep import taxes on foreign goods, arguing they will protect American jobs and the US manufacturing industry.In April, in line with this protectionist view, Trump announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% duties until 9 July.The negotiating window until 9 July has led to announced deals only with the UK and Vietnam. You can read more on Trump’s tariff threat in our business live blog.My colleagues Richard Luscombe and Robert Mackey have a little more detail about how the feud between the world’s richest man and the world’s most powerful man has recently escalated. Here is an extract from their story:
    When the pair fell out earlier in the summer, Musk lashed out during an astonishing social media duel in which he stated Trump’s name was in the files relating to associates of the late pedophile and sex trafficker Jeffrey Epstein.
    Musk later deleted the post and apologized to the president as they embarked on an uneasy truce. On Sunday, however, Musk returned to the subject, reposting a photo of the jailed Epstein facilitator Ghislaine Maxwell that questioned why she was the only person in prison while men who engaged in sex with underage girls – a crime colloquially known in the US as statutory rape – were not.
    In other posts he said it would be “not hard” to break the two-party stranglehold in US politics enjoyed by Democrats and Republicans…
    Trump has made clear his feelings about his former friend in recent days after criticism of the bill. In response to Musk’s posts calling the bill “insane”, Trump said he might “look into” deporting the South African-born, naturalized US citizen billionaire.
    Welcome to our live coverage of US politics and the second Trump administration.Donald Trump has hit out at Elon Musk’s decision to start and bankroll a new US political party that the tech billionaire believes can offer a viable alternative to the Democrats and Republicans.Speaking to reporters before boarding Air Force One yesterday, the US president said:
    I think it’s ridiculous to start a third party. It’s always been a two-party system and I think starting a third party just adds to the confusion.
    Shortly after speaking about his former ally, Trump posted further comments on his Truth Social platform, writing:
    I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.
    Trump and Musk were formerly close allies, with the Tesla boss and X owner appointed to slash federal spending through the unofficial Department of Government Efficiency (Doge) from January through May.Musk fell out with the Republican president over his sprawling tax and spending plan, signed into law on Friday, which is expected to add at least $3 trillion (£2.2 trillion) to the US’s already huge $37tn (£27tn) debt pile. Musk has argued that the bill, which he has described as “utterly insane and destructive”, would irresponsibly add to the US national debt.Musk, the world’s richest person, posted on X over the weekend that he had set up the America Party to challenge the Republican and Democratic “Uniparty”. The details of the structure of the new venture or a timeline for its creation are still unclear.But some of his social media posts suggests the new political party would focus on two or three Senate seats, and eight to 10 House districts.We will have more on this and other US politics stories throughout the day so stick with us. More