Government Contracts and Procurement

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    Judge Orders U.S.A.I.D. and State Dept. to Pay Funds ‘Unlawfully’ Withheld

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    A federal judge barred the Trump administration on Monday from “unlawfully impounding congressionally appropriated foreign aid funds” that the State Department and the U.S. Agency for International Development owed to grant recipients and contractors, requiring it to pay for work completed in the first several weeks of President Trump’s term.The ruling, handed down by Judge Amir H. Ali of the Federal District Court for the District of Columbia, was the latest step in a winding dispute over foreign aid payments since Mr. Trump has tried to vastly shrink the nation’s foreign assistance. While forcing the administration to pay for work completed before Feb. 13, Judge Ali said the limits of the case prevented him from ordering payments on future work or restoring canceled contracts.But he left no doubt that he believed that the administration had exceeded its authority in trying to block funding, a warning that could echo through a deluge of lawsuits over Mr. Trump’s efforts to unilaterally halt spending.“Here, the executive has unilaterally deemed that funds Congress appropriated for foreign aid will not be spent,” he wrote. “The executive not only claims his constitutional authority to determine how to spend appropriated funds, but usurps Congress’s exclusive authority to dictate whether the funds should be spent in the first place.”The order on Monday prohibited the State Department and U.S.A.I.D. from implementing much of a Jan. 24 memorandum outlining plans to reorient and shrink U.S. foreign aid. It further required them to pay out hundreds of millions of dollars still owed to a constellation of groups for work completed before Feb. 13, as Judge Ali had ordered last month.The order dealt with a broad freeze on foreign aid funding that Mr. Trump put into effect the day he took office. It stopped short of the much more significant step of invalidating the Trump administration’s decision to cancel thousands of contracts through what it described as an expedited line-by-line review, after the lawsuit was already underway. Judge Ali found that the court was restrained to addressing the specific harms laid out in the lawsuit, not “supervision of discrete or ongoing executive decisions.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Call to Scrap ‘Horrible’ Chip Program Spreads Panic

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      The president’s attack on the key tenet of the Biden administration’s industrial policy has set off concerns that he may claw back its funding.As President Trump addressed Congress last week, he veered off script to attack a sensitive topic, the CHIPS Act, a bipartisan law aimed at making the United States less reliant on Asia for semiconductors.Republican lawmakers had sought and received reassurances over the past few months that the Trump administration would support the program Congress created. But halfway through Mr. Trump’s remarks, he called the law a “horrible, horrible thing.”“You should get rid of the CHIP Act,” he told Speaker Mike Johnson as some lawmakers applauded.The CHIPS program was one of the few things to unite much of Washington in recent years, as lawmakers on both sides of the aisle worked with private companies to draft a bill that would funnel $50 billion to rebuild the U.S. semiconductor industry, which makes the foundational technology used to power cars, computers and coffee makers. After President Joseph R. Biden, Jr. signed it into law in 2022, companies found sites in Arizona, New York and Ohio to construct new factories. The Commerce Department vetted those plans and began to dole out billions of dollars in grants.Now, Mr. Trump is threatening to upend years of work. Chip company executives, worried that funding could be clawed back, are calling lawyers to ask what wiggle room the administration has to terminate signed contracts, said eight people familiar with the requests.After the speech, Senator Todd Young, the Indiana Republican who championed CHIPS, said he reached out to the White House to seek clarity about Mr. Trump’s attack because the criticism was “in tension” with the administration’s previous support.Senator Todd Young, the Indiana Republican who championed CHIPS, said he reached out to the White House to seek clarity about Mr. Trump’s attack, which he said was “in tension” with the administration’s previous support.Eric Lee/The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      DOGE’s Only Public Ledger Is Riddled With Mistakes

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      The figures from Elon Musk’s team of outsiders represent billions in government cuts. They are also full of accounting errors, outdated data and other miscalculations.Elon Musk and his Department of Government Efficiency say they have saved the federal government $55 billion through staff reductions, lease cancellations and a long list of terminated contracts published online this week as a “wall of receipts.”President Trump has been celebrating the published savings, even musing about a proposal to mail checks to all Americans to reimburse them with a “DOGE dividend.”But the math that could back up those checks is marred with accounting errors, incorrect assumptions, outdated data and other mistakes, according to a New York Times analysis of all the contracts listed. While the DOGE team has surely cut some number of billions of dollars, its slapdash accounting adds to a pattern of recklessness by the group, which has recently gained access to sensitive government payment systems.Some contracts the group claims credit for were double- or triple-counted. Another initially contained an error that inflated the totals by billions of dollars. In at least one instance, the group claimed an entire contract had been canceled when only part of the work had been halted. In others, contracts the group said it had closed were actually ended under the Biden administration.The canceled contracts listed on the website make up a small part of the $55 billion total that the group estimated it had found so far. It was not possible to independently verify that number or other totals on the site with the evidence provided. A senior White House official described how the office made its calculations on individual contracts, but did not respond to numerous questions about other aspects of the group’s accounting. But it is clear that every dollar the website claims credit for is not necessarily a dollar the federal government would have spent — or one that can now be returned to the public.A screenshot of the DOGE site’s “wall of receipts” on Friday. More

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      DOGE Claimed It Saved $8 Billion in One Contract. It Was Actually $8 Million.

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      The biggest single line item on the website of Elon Musk’s cost-cutting team appears to include an error.The Department of Government Efficiency, the federal cost-cutting initiative championed by Elon Musk, published on Monday a list of government contracts it has canceled, together amounting to about $16 billion in savings itemized on a new “wall of receipts” on its website.Almost half of those line-item savings could be attributed to a single $8 billion contract for the Immigration and Customs Enforcement agency. But it appears that the DOGE list vastly overstated the actual intended value of that contract. A closer scrutiny of a federal database shows that a recent version of the contract was for $8 million, not $8 billion. A larger total savings number published on the site, $55 billion, lacked specific documentation.The contract, with a company called D&G Support Services, was to provide “program and technical support services” for the Office of Diversity and Civil Rights at ICE. The Trump administration has been purging diversity programs from the federal government.By examining past versions of the contract listed on the Federal Procurement Data System, The Upshot determined that the federal award, approved in September 2022, had initially listed a total value of $8 billion. But on Jan. 22 this year, that figure was updated to $8 million. According to the database, the contract was terminated about a week later. (For context, $8 billion is nearly the size of the entire budget of the Centers for Disease Control and Prevention.)It’s possible that DOGE or someone else in the Trump administration can claim credit for fixing the error in the contracting database, given that the value was downgraded to $8 million two days after President Trump took office. But it is also clear that the government was not spending $8 billion on the contract. In the two and a half years since it was signed, $2.5 million had been spent; the contract appeared set to expire in 2027.The DOGE website initially included a screenshot from the federal contracting database showing that the contract’s value was $8 million, even as the DOGE site listed $8 billion in savings. On Tuesday night, around the time this article was published, DOGE removed the screenshot that showed the mismatch, but continued to claim $8 billion in savings. It added a link to the original, outdated version of the contract worth $8 billion.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Judge Extends Halt on Trump Plan to Dismantle U.S.A.I.D.

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      For at least another week, a judge will keep a hold on a directive placing more than 2,000 employees on administrative leave and forcing the return of overseas workers.A federal judge on Thursday moved to extend by one week a temporary restraining order preventing the Trump administration from carrying out plans that would all but dismantle the U.S. Agency for International Development.The order, which Judge Carl Nichols of the U.S. District Court for the District of Columbia said he would file later Thursday, continues to stall a directive that would put a quarter of its employees on administrative leave while forcing those posted overseas to return to the United States within 30 days.Judge Nichols said he would rule by the end of next week on whether to grant the plaintiffs’ request for a preliminary injunction that would indefinitely block key elements of the high-profile Trump administration effort.The plan was driven in large part by Elon Musk, the billionaire tech entrepreneur tasked with making cuts to the federal budget, to shutter an agency he and Mr. Trump have vilified. The temporary restraining order applies to about 2,700 direct hires of U.S.A.I.D., including hundreds of Foreign Service officers, who would have been put on administrative leave under the directive, which also warned that contractors’ jobs could be terminated.The lawsuit was filed by two unions representing the affected U.S.A.I.D. employees: the American Foreign Service Association, to which aid workers in global missions belong, and the American Federation of Government Employees, which represents other direct hires. They have argued that President Trump’s executive order freezing foreign aid for 90 days and subsequent directives to dismantle certain U.S.A.I.D. operations and reduce staff were unconstitutional, and have asked the court to overturn them.Democratic lawmakers, U.S.A.I.D. workers, and the aid organizations that depend on U.S. foreign assistance have decried any moves to unilaterally shut down the agency as unlawful, as its role in the federal government was established by law and Congress funded it, like the rest of the government, through March 14.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      State Department Revises Plan to Buy Armored Teslas

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      Tesla’s name was removed from a State Department document that listed planned vehicle purchases after the existence of the list was reported late Wednesday. The potential award raised questions about why the government was giving a lucrative contract to the company, which is led by Elon Musk, one of President Trump’s most important advisers.A department procurement forecast for 2025 detailed purchases the agency expected to make, including $400 million for armored Tesla vehicles. The document did not specify which Tesla model, but the electric Cybertruck, which has a body of high-strength stainless steel, would be the most suitable.Later on Wednesday, a different version of the procurement document appeared online. It referred to “armored electric vehicles,” omitting any mention of Tesla.Mr. Musk spent more than $250 million to help elect Mr. Trump, who then appointed him as the leader of a cost-cutting initiative that’s been called the Department of Government Efficiency, or DOGE.Plans to spend $400 million on Tesla pickups raised eyebrows given that Mr. Musk has been posting almost hourly on X, the social media site he owns, about wasteful government spending.Tesla and the State Department did not respond to requests for comment. On X, Mr. Musk shared a post from a supporter that said a report on the topic by Rachel Maddow of MSNBC was a “hit piece.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Enjoying the Pinnacle of Power, Musk Holds Court on Trump’s Stage

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      The president let the spotlight in the Oval Office go to his billionaire friend/budget slasher, who cited blank checks and 150-year-old Social Security beneficiaries to justify purging the federal work force.Three weeks into this administration, hardly a day seems to go by that does not produce a norm-busting moment at the White House. But the scene that played out in the Oval Office on Tuesday afternoon was among the wildest yet.President Trump sat behind the Resolute Desk while Elon Musk stood at his side and attempted to explain, for the first time in public since Inauguration Day, what it is he came to Washington to do.For weeks, he and his Dorito-dusted minions have burrowed deep inside the federal government, tearing the thing apart from within by sending workers packing and shutting down programs and entire agencies, testing if not exceeding the bounds of the law and the Constitution in the process.So far, the only explanations to be had about what they are doing or where they are going next have come in the form of brief or sometimes trolling messages on the social media platform Mr. Musk owns or in opaque statements from administration officials.Dressed all in black, with a dark MAGA hat on his head and his young son fidgeting by his side or on his shoulders, Mr. Musk, seeming quite jolly about finding himself at the very pinnacle of power, sought on Tuesday to justify pushing tens of thousands of federal employees out the door by casting them as a collection of unelected and unaccountable managers of a wasteful and corrupt bureaucracy.Workers overseeing contracts were mysteriously getting rich, he asserted without any backing details or evidence. Social Security was paying benefits to 150-year-olds. Taxpayers were being gouged.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Administration Move to Freeze E.V. Charger Funding Confounds States

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      A new federal order that freezes a Biden-era program to build a national network of electric vehicle charging stations has confounded states, which had been allocated billions of dollars by Congress for the program.In interviews on Friday, some state officials said that as a result of the memo from the Trump administration, they had stopped work on the charging stations. Others said they intended to keep going.In Ohio, where Gov. Mike DeWine, a Republican, has welcomed federal money to build 19 E.V. charging stations, Breanna Badanes, a spokeswoman for the state’s Transportation Department, said Friday that “it’s safe to say we’re not sure” how or whether the state will build more.“Those stations will continue operating, but as far as what comes next, we’re in the same boat with everyone else, just trying to figure it out,” she said.The Feb. 6 memo signed by Emily Biondi, an associate administrator at the U.S. Transportation Department, said that the administration was “suspending approval of state electric vehicle infrastructure deployment plans.” The memo singled out the National Electric Vehicle Infrastructure, or NEVI, program, which was authorized under the 2021 bipartisan infrastructure law.A national network of fast charging stations was part of President Joseph R. Biden’s Jr.’s effort to combat climate change by accelerating the nation’s transition to electric vehicles.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Washington Curtails Intel’s Chip Grant After Company Stumbles

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      The Biden administration is reducing its award to the chip maker, partly to account for a multibillion-dollar military contract.The Biden administration plans to reduce Intel’s preliminary $8.5 billion federal CHIPS grant, a move that follows the California-based company’s investment delays and broader business struggles.Intel, the biggest recipient of money under the CHIPS Act, will see its funding drop to less than $8 billion from the $8.5 billion that was announced earlier this year, four people familiar with the grant said. They all spoke on the condition of anonymity because the final contract had not yet been signed. The change in terms takes into account a $3 billion contract that Intel has been offered to produce chips for the U.S. military, two of these people said.The government’s decision to reduce the size of the grant follows Intel’s move to delay some of its planned investments in chip facilities in Ohio. The company now plans to finish that project by the end of the decade instead of 2025. The chip maker has been under pressure to reduce costs after posting its biggest quarterly loss in the company’s 56-year history.The move by the Biden administration also takes into account Intel’s technology road map and customer demand. Intel has been working to improve its technological capacity to catch up to rivals like Taiwan Semiconductor Manufacturing Company, but it has struggled to convince customers that it can match TSMC’s technology.Intel’s troubles have been a blow to the Biden administration’s plans to rev up domestic chip manufacturing. In March, President Biden traveled to Arizona to announce Intel’s multibillion-dollar award and said the company’s manufacturing investments would transform the semiconductor industry. Intel’s investment was at the forefront of the administration’s ambition to return chip manufacturing to the United States from Asia. The CHIPS Act, a bipartisan bill passed in 2022, provided $39 billion in funding to subsidize the construction of facilities to help the United States reduce its reliance on foreign production of the tiny, critical electronics that power everything from iPads to dishwashers.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More