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      While Trump blathers about tariffs and Gaza, Musk is executing a coup d’état | John Naughton

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      Way back in 2019, Steve Bannon, then a Trump consigliere, outlined in a TV interview a strategy for managing information. “The opposition party is the media,” he said, “And because they’re dumb and they’re lazy, they can only focus on one thing at a time… All we have to do is flood the zone. Every day we hit them with three things. They’ll bite on one, and we’ll get all of our stuff done. Bang, bang, bang.”Since his re-election, Donald Trump has been following this script to the letter, and the media, not to mention the entire world, are feeling punch-drunk. Which is, as Bannon pointed out, enabling other members of the Trump crew to get their stuff done. Really bad stuff too, to which the world has not been paying enough attention.Prime suspect in this respect is Elon Musk, whom Trump has chosen to slash $2tn off US government spending. Late on Friday 31 January, he and a few of his goons gained access to the Department of Treasury payments system – the system that processes the federal spending that makes up more than a fifth of the US economy. More importantly, Musk and a 25-year-old engineer named Marko Elez, who has previously worked for two of his companies, were given the ability to make changes to the payments system, thereby enabling them to stop disbursements of taxpayers’ dollars to recipients that the Trump crowd decide are illegitimate – for example a $367m payment to an outfit called Lutheran Immigration and Refugee Service Inc.It’s conceivable, of course, that this payment was an example of the wasteful federal spending that Musk and co are pledged to root out and eliminate. But that is not the point. The point is that all the spending passing through the system constitutes expenditure that has been authorised by Congress. Traditionally, the system was run by apolitical civil servants who had no authority to decide whether a particular payment was unwise or unacceptable. Now, suddenly, that power has been appropriated by an unelected billionaire who spent a quarter of a billion dollars to ensure that Trump was elected.But the Treasury coup is just one part of a bigger story. Musk is not just going after payments, he’s also going after jobs, salaries and the employment status of federal employees. And his strategy mirrors what he did to Twitter after being forced to buy it. At around 5pm on 28 January, millions of US government employees received an email from Musk with the subject line “Fork in the Road”. The message in the email was stark: accept a sweeping set of workplace changes or resign within nine days. It was more or less a replica of the email that Twitter employees received in November 2022 and it signals an intention to do to the federal bureaucracy what he did to Twitter in 2022: hollow it out and subject it to intensive personal control.It’s worth pondering the immensity of what’s happening while Trump blathers on about tariffs, acquiring Gaza, buying Greenland, trolling Justin Trudeau and generally “flooding the zone” with crap. As Mike Masnick, a distinguished tech commentator, puts it: “A private citizen with zero constitutional authority is effectively seizing control of critical government functions. The constitution explicitly requires Senate confirmation for anyone wielding significant federal power – a requirement Musk has simply ignored as he installs his loyalists throughout the government while demanding access to basically all of the levers of power, and pushing out anyone who stands in his way.”Musk’s arrival at the heart of American power signals a new, sinister kind of technocracy – an obnoxious blend of obscene wealth, narcissism, arrogance, determination, IQ and the kind of “solutionism” that believes there is no problem that cannot be solved by technology. He reminds Masnick of “a toddler ‘fixing’ a grandfather clock by removing its pendulum. Yes, the clock needed maintenance – but now it can’t tell time at all. The federal government absolutely needs reform, but what we’re seeing isn’t reform – it’s vandalism dressed up as innovation.”The strange thing is that what most people expected from Trump 2.0 was his usual performative chaos: perhaps a bit less than last time, but chaos nonetheless. What no one saw coming was a tech bro who spotted an opportunity to use AI to re-engineer the US government in the name of the “efficiency” that Silicon Valley worships, and was able to pay hundreds of millions to get into the driving seat. In the bad old days, insurgent colonels would surround the presidential palace with tanks and capture the radio station. Thanks to Trump, Musk didn’t have to worry about the palace, and he already had his own radio station (X), so he went straight to the heart of the matter – the Treasury. What we’re watching is nothing less than a thoroughly modern coup d’état.What I’ve been readingLLMs and a flawed paradigm
      An astute essay by Erik J Larsen on his Substack, Colligo, about the large language models that the tech industry calls “AIs”.How to raise your artificial intelligence
      A fascinating conversation with psychologist Alison Gopnik and AI scientist Melanie Mitchell in the LA Review of Books.The Musk junta Nice satirical piece by Garrett Graff on Doomsday Scenario, imagining how foreign correspondents would report on current events in Washington DC.

      Do you have an opinion on the issues raised in this article? If you would like to submit a letter of up to 250 words to be considered for publication, email it to us at observer.letters@observer.co.uk More

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      in US Politics

      Who is helping Elon Musk gut the US government?

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      Elon Musk’s rapid attempt to defund and depopulate the federal government has thrown US politics into chaos while the billionaire’s so-called “department of government efficiency” seizes control of operations at key agencies. Carrying out this hostile takeover are a team of staffers made up of wealthy executives, far-right ideologues and young engineers that have come to make up “Doge”.At government institutions such as the treasury department, General Services Administration and United States Agency for International Development, Musk’s allies have gained access to computer systems, including the sensitive personal data and payment information of tens of millions of Americans. His team is working to shut down USAid, the world’s largest single supplier of humanitarian aid, and members have been spotted at the Centers for Disease Control and Prevention, Department of Education and National Institutes of Health.To undertake this unprecedented and potentially illegal gutting of public funding, Musk has assembled loyalists who largely lack government experience and who range from tech elites to Maga diehards, according to a review of the people publicly associated with Doge.Doge has not released any detailed account of who is working at the unofficial agency, and Musk, along with other staff, is technically a “special government employee”, which allows him and others to evade ethics and financial disclosures that would normally apply to government workers. The Doge team has taken steps to avoid public scrutiny, including limiting their online footprints.A lawsuit filed by unions of federal workers alleges that Musk’s allies in Doge have held calls and interviews in which they have withheld their last names in an effort to escape media scrutiny. These interviewers have also allegedly refused to answer questions while talking to federal employees.Musk shared a letter on X sent to him from the Trump-appointed federal prosecutor for Washington DC that vowed to pursue “any and all legal action against anyone who impedes your work or threatens your people”, which includes identifying them.As hundreds of employees were put on administrative leave at USAid, several sources told the Guardian that Musk was directing Doge’s day-to-day operations personally.“This was just the Doge dudes just literally on the phone with Musk just getting directions from him,” one USAid employee said.Within the White House, Musk appears to be running Doge with a high degree of independence and with Donald Trump’s backing. The president briefly praised Musk’s team on Monday, although he said that he had not met with them personally.“They work, actually, out of the White House,” Trump said. “They’re smart people.”A Doge spokesperson did not respond to a list of questions concerning its staff and operations.Tech executives and engineers take over major agenciesSeveral people at Doge come directly from Musk’s private companies, including the Boring Company, Tesla and xAI. One executive taking a lead role overseeing the effort, according to multiple outlets, is Musk’s longtime lieutenant Steve Davis.Davis has worked for Musk in different capacities for about 20 years and is president of the tunnel-digging Boring Company. He was present on Saturday night at USAid when Doge staffers and agency security officials clashed over Musk’s team’s demands for access to restricted areas, multiple sources told the Guardian. When USAid officials attempted to block the team, two sources said that Davis threatened to bring in US marshals to the agency. The Guardian granted anonymity to those sources to protect them from retaliation.Davis is known for cost cutting and running fast-paced operations, which have at times resulted in clashes with safety regulators. While he was president of Boring in 2023, the Occupational Safety and Health Administration (Osha) found that 15 to 20 Boring employees in Las Vegas had been burned with chemical accelerants due to hazardous working conditions at the site. The company’s former safety manager told Fortune that Davis had undercut and isolated him in ways that prohibited him from doing his job, while former employees said Davis imposed difficult deadlines and encouraged a breakneck pace. One Boring employee emailed the safety manager warning that workers “consistently flirted with death” while in the tunnels, according to Fortune. The Boring Company did not return a request for comment on these allegations.Another former Musk employee, Amanda Scales, worked at the billionaire’s artificial intelligence startup xAI before becoming chief of staff at the office of personnel management, which functions as the government’s human resources agency. Shortly after Trump’s inauguration, the acting head of OPM instructed heads of agencies to send Scales a list of employees on probationary periods or administrative leave as the new administration seeks to make drastic cuts to the federal workforce.Allies of the world’s richest man have also been placed in key positions at the General Services Administration – which handles government real estate and federal IT structure – and the treasury department. The former Tesla engineer Thomas Shedd is now in charge of the GSA’s Technology Transformation Services, with 404 Media reporting that Shedd told workers he wants to implant artificial intelligence throughout government systems to write software and automate services. Musk himself has said he wants to deploy AI to review government payments for potential waste.Tom Krause, the CEO of the multibillion-dollar tech company Cloud Software Group, and a Musk ally, is now working within the treasury department. A judge ruled on Thursday that he was one of two “special government employees” associated with Doge who can access sensitive treasury data.View image in fullscreenSeveral tech moguls have said they are collaborating with Doge, though it’s not always clear in what capacity. The billionaire venture capitalist Marc Andreessen, who donated $2.5m to a pro-Trump political action committee and celebrated his re-election, told the New York Times last month that he was “helping Doge”. Andreessen did not go into detail on what his help entailed and said he was not speaking for Musk, but he appeared to have advance knowledge of Doge’s goals and told the Times it had plans for “the money side”, head count and regulation. Weeks after the interview, Musk’s lieutenants went after the money side of the federal government – the treasury department.In addition to the more established executives working at Doge or collaborating with the group, Wired reported that Musk had hired a group of young engineers fresh out of college or high school who possess little experience outside of tiny tech firms. These Doge staffers, who according to the outlet range from 19 to 25 years old, have at times been given huge amounts of access and power over the federal government – including sources telling Wired that the engineer Marko Elez had gained direct “write access” to treasury department payment systems.Elez resigned on Thursday after the Wall Street Journal asked the White House about his links to a now-deleted social media account that promoted eugenics and racism. Among other racist posts, the account posted on X that “you could not pay me to marry outside my ethnicity” and called for repealing the Civil Rights Act, according to the Journal. Earlier that day, a judge had granted Elez and one other Doge employee the power to see sensitive treasury department data.Elez was reinstated on Friday.skip past newsletter promotionafter newsletter promotionAnother young Doge staffer with access to sensitive government systems, 19-year-old Edward Coristine, has gone by the username “Big Balls” online and founded a company called “Tesla.Sexy LLC”, according to Wired. He has reportedly been on calls with GSA employees as they are asked to defend their jobs.“These people are clueless, given how smart they’re supposed to be,” one USAid employee currently on administrative leave said of the young Doge team. “They’re under the impression that if you just say [to do something], then it will magically happen.”Maga world gets a role in DogeAlong with the staff working with Doge full-time, with some even sleeping in government buildings, Musk’s team has worked in tandem with Trump hardliners to dismantle or exert control over government agencies. Doge staffers showed up to USAid in the past week with Peter Marocco, who briefly served at several agencies during Trump’s first term and was accused by multiple staffers of poor leadership and toxic workplace behavior.Marocco was allegedly photographed inside the Capitol building during the January 6 riot, according to a widely cited, citizen-led investigation that has accurately named numerous other rioters. When Dallas’s D Magazine asked him about the allegations last year, Marocco did not deny them but called the reports “smear tactics”.The secretary of state, Marco Rubio, has now tapped Marocco to run USAid and review its programs as Musk continues work to shut down the agency entirely. Current and former USAid staffers told the Guardian last week that Marocco represented a disaster for the agency, with one former official calling him “a destroyer”.“He’s the most unqualified person to be sitting in any seat of government, let alone the person who has the keys to our foreign assistance,” another former colleague at USAid who still works at the agency said.Also working with Doge is the far-right Georgia representative Marjorie Taylor Greene, who is head of a “delivering on government efficiency” group within the House oversight committee. Greene, who has espoused numerous extremist conspiracies and in 2022 spoke at a white nationalist event, has used her power to demand that NPR and PBS testify about their operations. Greene cited a PBS report that stated Musk gave “what appeared to be a fascist salute” during a speech last month as one of the reasons to compel the news outlet’s executives to appear at the hearing.The conservative ideology extends to Doge’s human resources department, where the head of HR is an employment attorney and consultant who has promoted a “non-woke” alternative to diversity, equity and inclusion programs, 404 Media reported. Stephanie Holmes told the rightwing Federalist Society in 2022 that she started her firm to counter the “really progressive ideology that HR was pushing into corporate America”.The spokesperson for Doge is Katie Miller, who is married to the deputy White House chief of staff, Stephen Miller. Before working at Doge, Miller was Mike Pence’s press secretary and a spokesperson for the Department of Homeland Security, where she defended Trump’s anti-immigration policies, including during the period when it was separating families at the border. During Doge’s takeover of agencies on Sunday, Miller issued a statement on X claiming that no violations of security protocol had taken place. On Wednesday night, she told reporters that Musk would decide for himself when his actions constituted a conflict of interest.Stephen Miller has also begun working closely with Musk in the new Trump administration, according to the New York Times, and on Monday went on Fox News to defend the shutdown of USAid by decrying it as a “swamp nest of bureaucrats”. During Trump’s first term, Miller served as a key policy adviser and pushed for extreme policies such as banning immigration and travel from Muslim-majority countries. In 2019, more than 50 civil rights organizations and 20 Democratic senators called for Miller’s resignation after it emerged that he had sent hundreds of emails to far-right editors at Breitbart that included him citing information from prominent white nationalist websites.Changing staff and hidden identitiesSome of the people who had been associated with Doge in the months before Trump’s official order on 20 January have either been given roles elsewhere in the administration or pushed out entirely. The former presidential candidate Vivek Ramaswamy was originally slated to co-lead Doge with Musk, trumpeting the agency in posts on X. He left after reportedly facing internal tensions with the Tesla CEO and announced a run for Ohio governor.The former Trump tech adviser Michael Kratsios was helping interview hires for Doge, according to Bloomberg, but has since been nominated as the president’s science adviser. The top Silicon Valley investment banker and Musk ally Michael Grimes was also reportedly in discussions about joining Doge. He’s now expected to join the commerce department.Others hold unclear roles within Musk’s unofficial agency, such as the Silicon Valley venture capitalist Baris Akis, who, the New York Times reported, has become close to Musk and an integral part of Doge in recent weeks. Akis is a Turkish national who does not hold US citizenship, according to the Atlantic, which reported that Trump’s advisers declined Musk’s request to officially hire him because of his immigration status. It is unclear in what capacity, if any, he is still involved in the effort. The Doge spokesperson, Katie Miller, did not respond to a request for comment on whether Akis is still involved in Doge.Government watchdog groups have condemned the lack of transparency around Doge’s operations.“It’s inappropriate for the federal government to purposely hide the identities of senior officials who are shaping the policies and servicing the public,” said Scott Amey, the general counsel of the Project on Government Oversight. “These officials must be held accountable for their work, both by their colleagues and the public. It’s also crucial that these officials abide by ethics and transparency requirements to assure the public they are serving in the best interest of our communities.”Andrew Roth contributed reporting More

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      in US Politics

      What does Elon Musk believe?

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      View image in fullscreenElon Musk is not a people person, as millions around the world will be able to attest after the planet’s richest man cut off food supplies, healthcare and probably even life itself to some of the most vulnerable without so much as a fore- or afterthought.Musk sees himself as a data man, wielding numbers like a machete to slash and burn his way through government waste and corruption as he leads the rightwing charge to capture the US state.Within days of Musk dispatching his minions to kick down the doors of the US Agency for International Development (USAid) and rifle through its finances, the agency was in effect out of business. Musk claimed USAid was “a criminal organisation” and full of Marxists – an assertion called “laughable” by the agency’s former administrator under George W Bush, Andrew Natsios, who describes himself as a conservative Republican.Musk didn’t care. Less than three weeks after Donald Trump’s inauguration, the head of the new “department of government efficiency” (Doge), a special group that Trump created, has built an extensive power base in Washington of a kind not seen before.Trump has given free rein to Musk to send his operatives into more than a dozen federal agencies to look for evidence of mismanagement and subversion, and to generally create chaos, outside of the usual bounds of oversight and regulation.Crucially, Musk now in effect controls the office of personnel management (OPM), which oversees federal employment. He immediately encouraged more than 2 million government workers to resign with the stated aim of forcing a few hundred thousand out the door.View image in fullscreenIt’s clear who Musk thinks should be running the country instead, from his recruitment to Doge of “special government employees” from his own companies and the wider tech industry to storm the federal citadels. They include a significant proportion of young male software engineers of the kind who tend to worship tech billionaires like Musk, including a teenager who has gone by “Big Balls” online.Few, if any, have undergone the security clearances other government workers need to access sensitive and personal information. If they had, Doge might have been discouraged from hiring another recruit from Silicon Valley, Marko Elez, who was sent into the US treasury department, where he had access to taxpayer records. Elez resigned on Thursday after the Wall Street Journal revealed he had posted racist messages on social media and defended eugenics.“Just for the record, I was racist before it was cool,” Elez wrote on X in July.He was reinstated on Friday.On the face of it, Musk is implementing Trump’s commitment to cut spending, “dismantle the deep state” and sack “rogue bureaucrats”. But his embrace of the far right, including an unrestrained endorsement of the German nationalist Alternative for Germany (AfD), and what looked to much of the world like a Nazi salute at Trump’s inauguration celebrations, has raised urgent questions about Musk’s political beliefs and how he intends to use his newfound power.As it happens, much of what Musk is doing is also good for his businesses, including scrapping regulatory bodies and curtailing the power of unions and workers. The labor board, which upholds workers’ rights, has been frozen and agencies that regulated the financial industry have either been scrapped or told to abandon key parts of their work.Musk’s politics have been eclectic. In the past, he has backed universal basic income and a tax on carbon emissions. At the same time, he has a deep dislike of trade unions and public transport because it means being around “random strangers, one of whom might be a serial killer”. He espouses a visceral hostility to diversity programmes and appears to regard those who believe in helping the less fortunate as subversive.Thrown into this mix is Musk’s fascination with the pro-natalism movement, for which he has done his bit by fathering 12 children, and his hope that one day his rocket company, SpaceX, will help them colonise Mars.Raised in South Africa under apartheid, Musk is clearly suspicious of democracy and the leaders it produces. His grandfather headed a fringe political movement in Canada in the 1930s, Technocracy Incorporated, which sought to abolish democracy in favour of government by elite technicians, but its overtones of fascism saw it banned during the second world war.Musk shows some of the same tendencies, as do other libertarian-leaning Silicon Valley billionaires unhappy with the messiness of elected government. He has spoken in support of direct democracy, where policies and other issues are decided by popular referendums rather than elected representatives.In the meantime, Musk appears happy to embrace the US version of the “strongman” ruler through the Republican right’s “unitary executive theory”, which regards the authority of the president as paramount and Congress as an impediment to the implementation of his or her will.Over the years, Musk has described himself as “not a conservative” and “politically moderate”. He backed the Democratic candidate in every presidential election going back to Barack Obama’s victory in 2008 until he soured on the party in the past few years.View image in fullscreen“In the past I voted Democrat, because they were (mostly) the kindness party. But they have become the party of division & hate, so I can no longer support them and will vote Republican. Now, watch their dirty tricks campaign against me unfold,” he wrote on X in 2022.But there were clues to other motives, including a statement that he would be voting Republican because of Joe Biden’s support for trade unions and what he regarded as insufficient Democratic backing for his companies.Not long before last year’s presidential election, Musk declared that Trump would save American democracy from Democrats trampling on individual liberties. But he kept moving ever further to the right in public, with an open embrace of racist European political leaders, including the AfD, and the promotion of claims of a “white genocide” in the country of his birth, South Africa.Musk’s biographer, Walter Isaacson, has linked his shift from Obama voter to cheerleader for the AfD to the transition of his daughter, Vivian Jenna Wilson.Wilson was 16 when she texted a relative: “Hey, I’m transgender, and my name is now Jenna. Don’t tell my dad.” The day after Wilson turned 18 in 2022, she changed her name because of “gender identity and the fact that I no longer live with or wish to be related to my biological father in any way, shape or form”.Musk told Isaacson he was sanguine about the change but then Wilson became a fervent Marxist and wouldn’t speak to him any more, a situation he described as one of the most painful of his life.“She went beyond socialism to being a full communist and thinking that anyone rich is evil,” Musk told the author.Musk blamed Wilson’s progressive Los Angeles school and said he was disturbed at the “woke mind virus” holding back America.After California passed a law barring school districts from requiring teachers to tell parents of changes to a student’s sexual orientation and gender identity, Musk announced he was moving the headquarters of his two largest companies, SpaceX and X, to Texas. He said that the law caused “massive destruction of parental rights” and put children at risk of “permanent damage”.Musk did not say that moving his companies also had significant tax advantages for himself and his businesses, which would additionally be subject to fewer climate regulations than in California.Still, his apparent anger over his daughter’s transition appears to have set in motion a broader hostility toward identity issues, and diversity, equity and inclusion (DEI) programmes, a favourite target of the Trumpian right. Musk announced that the words “cis” and “cisgender” were considered slurs on X, and he came out against pronouns, tweeting that they “suck”.In late 2022, another tweet linked Musk’s hostility toward the way people choose to identify themselves – an odd position for a man who claims to be a champion of free speech – to his anger at the Biden administration’s Covid restrictions.View image in fullscreenMusk mocked Anthony Fauci, Biden’s chief medical adviser, who was instrumental in the lockdown and other measures to contain the crisis.“My pronouns are Prosecute/Fauci,” he wrote.Some saw the tweet as evidence that Musk was now openly identifying with the far right, which defied mask regulations and stay-at-home orders and called for Fauci to be locked up for intruding on their liberties.But while Musk’s hostility toward pronouns was personal, Covid regulations touched on his businesses and net worth.Musk refused to close his Tesla factory at the height of the pandemic, claiming without evidence that “panic” over the virus would do more damage than the disease itself. He disparaged social distancing, predicted that the virus would claim few lives in the US (it eventually claimed more than 1.2 million), and described the lockdown as “fascist” and “erasing people’s freedoms”. Musk tweeted a meme comparing Canada’s prime minister, Justin Trudeau, to Hitler over his government’s Covid restrictions.Musk may have dressed up his position as a concern about people’s welfare but its immediate effect was to keep his factories rolling even if the people working in them were at greater risk of infection and death. And while Musk claimed a principled position in favour of individual liberty, he has a history of suppressing the rights of his own workers.In 2023, he said that he disagreed with the concept of trade unions.“I just don’t like anything which creates a lords-and-peasants sort of thing,” he told the New York Times Dealbook Summit. “Unions naturally try to create negativity in a company.”One reason Musk may not like unions is they tend to stand up for their members. He has faced accusations from former employees of aggressively using a secretive dispute-resolution process to fend off repeated claims of sexual and racial harassment within his companies, including accusations of women enduring a “frat house” atmosphere of groping and other abuses ignored and even perpetrated by high-level managers.Tesla has paid out millions of dollars to Black workers subjected to racial harassment.Yet, while Musk restricts the rights of his employees to seek redress from the courts, he and his companies filed at least 23 lawsuits in federal courts in the year to August 2024, according to Fortune magazine.They include a legal action by X against the Center for Countering Digital Hate over a report accusing the social network of making millions of dollars out of accounts spewing hate from “neo-Nazis, white supremacists, misogynists and spreaders of dangerous conspiracy theories”. A California judge threw out the lawsuit last year, saying it was clear the “case is about punishing the defendants for their speech”.Musk will probably spend a lot more time being frustrated by the courts. Judges have already put on hold his push for mass resignations from the civil service and placed some restrictions on Doge’s mass collection of data. Federal workers, unions and civil rights organisations are lining up a flurry of lawsuits to challenge Musk’s actions.But the courts themselves may become a target for Musk as he works to tear down the old order.Isaacson in his biography wrote that Musk once described being in “a state of war at all times” as one of his default settings.No one thinks that, so long as Trump continues to regard the billionaire as more of an asset than a liability, Musk’s thirst for power will stop at gutting federal agencies. The question is where he will launch his next offensive. More

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      Trump hints Musk ‘Doge’ team has free rein with Pentagon next in line for cuts

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      Donald Trump has indicated that Elon Musk’s “department of government efficiency” (Doge) is operating without guardrails after it gained access to Americans’ private information “very easily” and as it prepares to assail the Pentagon.The US president was speaking at a White House press conference alongside Shigeru Ishiba, the prime minister of Japan, but most of the questions focused on Musk’s sweeping mission to root out waste in the federal government, which has caused disarray in Washington.Trump suggested that he has given the tech billionaire free rein and appeared blase about the details. Asked why Doge needs access to treasury payment systems including Americans’ social security numbers, home addresses and bank accounts, he replied: “Well, it doesn’t, but they get it very easily. We don’t have very good security in our country.”The president claimed that he was “very proud” of Musk’s team of young and “very smart” software engineers. He said: “They’re doing it at my insistence. It would be a lot easier not to do it, but we have to take some of these things apart to find the corruption and we’ve found tremendous corruption.”Doge has so far produced no evidence of corruption at USAid, which it shuttered without seeking the required authority from Congress, or other agencies. Its fast and furious assault on the government has resulted in a flurry of lawsuits and street protests.Pressed on whether there was anything he has told Musk he cannot touch, Trump offered only a vague reply. “Well, we haven’t discussed that much,” he confessed. “I’ll tell them to go here, go there. He does it. He’s got a very capable group of people. Very, very, very, very capable.“They know what they’re doing. They’ll ask questions, and they’ll see immediately as somebody gets tongue-tied that they’re either crooked or don’t know what they’re doing. We have very smart people going.”Trump confirmed that he had asked Musk – the world’s richest man – to review spending in the sprawling defence department, which has a proposed budget for 2025 of $850bn. “I’ve instructed him to go check out education, to check out the Pentagon, which is the military. And you know, sadly, you’ll find some things that are pretty bad.”But he added pointedly: “Social security will not be touched. It will only be strengthened … we have illegal immigrants on social security and we’re going to find out who they are and take them off.”Democrats in Congress are seeking a treasury department investigation of the access that Musk’s team was given to the government’s payment system, citing “threats to the economy and national security, and the potential violation of laws protecting Americans’ privacy and tax data”.Senators Elizabeth Warren and Ron Wyden wrote in a letter to inspectors general: “Given the threats to the economy and national security, and the potential violation of laws protecting Americans’ privacy and tax data posed by Mr Musk and his team’s reported access to critical federal payment systems … we request that you use your authorities to investigate this matter further.”On Friday, Trump also said Doge should rehire a staff member who resigned after being linked by a newspaper report to an openly racist social media account.First JD Vance, the vice-president, said Marko Elez, 25, should be brought back and blamed “journalists who try to destroy people”. Asked whether he endorsed Vance’s view, Trump told reporters he was not aware of the specific case but “I’m with the vice-president”.Soon after Musk, who had polled his X followers on the question, posted: “He will be brought back. To err is human, to forgive divine.”Send us a tipIf you have information you’d like to share securely with the Guardian about the impact of cuts to federal programs or the federal workforce, please use a non-work device to contact us via the Signal messaging app at (646) 886-8761. More

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      Trump administration suspends $5bn electric vehicle charging program

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      The Trump administration has ordered US states to suspend a $5bn electric vehicle charging station program in a further blow to the environmental movement since the president’s return to the White House.In a memo issued on Thursday to state transportation directors, the transportation department’s Federal Highway Administration (FHWA) ordered states not to spend any funds allocated to them under the Biden administration as part of the national electric vehicle infrastructure (NEVI) program.“The new leadership of the Department of Transportation … has decided to review the policies underlying the implementation of the NEVI Formula Program,” Emily Biondi, the FHWA’s associate administrator for planning, environment and realty, wrote in the memo. “Accordingly, the current NEVI Formula Program Guidance dated June 11, 2024, and all prior versions of this guidance are rescinded,” Biondi added.“As result of the rescission of the NEVI Formula Program Guidance, FHWA is also immediately suspending the approval of all State Electric Vehicle Infrastructure Deployment plans for all fiscal years. Therefore, effective immediately, no new obligations may occur under the NEVI Formula Program until the updated final NEVI Formula Program Guidance is issued and new State plans are submitted and approved,” she wrote.Biondi added that until new guidance is issued, reimbursements of existing obligations for designing and building charging stations will be allowed in order to prevent the disruption of current financial commitments.According to an existing page on the energy department’s website, the NEVI program provides funding to states to strategically deploy EV chargers. Funding is available for up to 80% of eligible project costs including the acquisition, installation and network connection of EV chargers, proper operation and maintenance of EV chargers, and long-term EV charger data sharing.Politico reports that as of Thursday, the FHWA removed several website pages that provided information on the NEVI program.In a statement to Politico, Andrew Rogers, a former deputy FHWA administrator under the Biden administration, said that the memo “appears to ignore both the law and multiple restraining orders that have been issued by federal courts”.The outlet further reports Roger saying that the memo appears to be “in direct violation” of the Impoundment Control Act of 1974, a law that restricts presidents from withholding congressionally approved funding.Currently, 14 states have at least one operational EV station, according to EV States Clearinghouse. As of last November, there are 126 public charging ports in operation across 31 NEVI stations in nine states, marking an 83% increase in open NEVI ports since last quarter, according to a NEVI report.skip past newsletter promotionafter newsletter promotionIt added that a total of 41 states have released at least their first round of solicitations, with 35 having issued conditional awards or put agreements in place for more than 3,560 fast-charging ports across more than 890 charging station locations.Throughout his campaign, Trump railed against EVs, at one point saying that supporters of the vehicles should “rot in hell” and that Biden’s support of EVs would bring a “bloodbath” to the US’s automotive industry.Last month, as part of a flurry of executive orders he signed during his first days back in office, Trump revoked a Biden-era order from 2021 that had aimed to make half of all new vehicles sold in the US in 2030 electric. More

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      Trump has thrown out the global economic playbook. It’s time for Australia to write its own rules | John Quiggin

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      With the resumption of parliament this week, and an election only months away, we have seen even more of the usual point-scoring about the cost of living, tax breaks for long lunches and budget deficits. But since the return of Donald Trump to the White House, the assumptions on which Australian economic policy have always been based are obsolete.It’s not just the “rules-based international order”, symbolised by the already moribund World Trade Organization, that is gone. Trump is ruling by decree (more politely referred to as “executive order”) and encountering little resistance. Corporations have rushed to buy his favour (or placate his wrath). The US Treasury appears to have been turned over to Elon Musk. No one can predict what will happen here, but a major financial crisis can’t be ruled out.The most immediate threat to Australia arises from Trump’s use of tariffs as a bludgeon to be used in pursuit of vague political demands, or simply as a display of dominance. Trump’s surprising backdown in response to mostly symbolic concessions from Canada and Mexico might be seen as a recognition of the risks of overreach. More likely, however, it reflects a belief that this is a weapon that can be used over and over again, and a desire to fight one enemy at a time (Trump does not believe in friends).For the moment, the tariff fight is with China, and both sides are showing some restraint. As long as this restraint persists, the collateral damage to the Australian economy will be modest. But Trump is prone to acting like a capricious dictator. He could easily take offence at some real or imagined slight and return to the 60% tariffs he promised on the campaign trail.Tariff policy is one of many fronts. Trump has withdrawn the US from the Paris climate agreement, the WHO and international aid programs. Of more immediate consequence for Australia, the US has withdrawn from the OECD agreement on corporate tax minimisation and from attempts to tax the digital economy. Musk and the other tech cronies have already threatened to punish Australia for taxing social media platforms, and for attempts to restrict toxic and violent content.In the long run, this means Australia needs to treat both the US and China as unreliable trading partners who will bully us whenever they see a benefit from doing so. We need to seek a balance between the two and, more importantly, become more self-reliant. In particular, we need to develop our own AI and social media infrastructure, for example by making our own version of DeepSeek and breaking with X and Meta as well as TikTok.In the short run, what’s needed is a recognition that the downside risks to the Australian economy have increased greatly. The government should be preparing plans for fiscal stimulus rather than worrying about public debt. More importantly, the Reserve Bank needs to start cutting rates immediately to guard against recession, even at the price of an incomplete victory over inflation.Above all, we need to ditch the illusion that all this is theatre and that things will go on as before. The US, as we knew it, is gone and won’t be back any time soon. The implications for the global economy, and therefore for Australia, are hard to discern, but they are sure to be profound.

      John Quiggin is a professor at the University of Queensland’s school of economics More

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      How the world’s richest man laid waste the US government

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      Since declaring his support for Donald Trump in July of last year and subsequently spending more than $250m on his re-election effort, Elon Musk has rapidly accumulated political influence and positioned himself at the heart of the new administration. Now as prominent as the president himself, Musk has begun to make use of that power, making decisions that could affect the health of millions of people, gaining access to highly sensitive personal data, and attacking anyone who opposes him. Musk, the world’s richest man and an unelected official, has achieved an astonishing level of power over the federal government.Over the weekend, workers with Musk’s “department of government efficiency” (Doge) clashed with civil servants over demands for unfettered access to the computer systems of major US government agencies in a breakneck series of confrontations. When the dust settled, several top officials who opposed the takeover had been pushed out, and Musk’s allies had gained control.Musk, with the backing of Trump, is now working to shut down the US Agency for International Development (USAid) – the world’s largest single supplier of humanitarian aid. He bragged on Sunday about “feeding USAid into the wood chipper”. He has also targeted several other agencies in an aggressive attempt to purge and remake the federal government along ideological lines, while avoiding congressional or judicial oversight.Many of Musk’s actions have taken place without forewarning or transparency, sowing chaos and confusion among the thousands of people employed at the agencies like USAid that he has gone after. Humanitarian organizations that rely on US funding have halted operations and laid off staff, while government workers have been locked out of their offices. He is operating Doge as an unofficial government department with no congressionally approved mandate while he technically holds the position of “special government employee”, which allows him to sidestep financial disclosures and a public vetting process.View image in fullscreenMusk has gleefully posted on X, the social media platform that he owns, throughout the chaos. He has accused USAid of corruption, and of being a “criminal organization” and “radical-left political psy op”, without any evidence. Why? He tweeted an explanation of simply doing Trump’s bidding: “All @DOGE did was check to see which federal organizations were violating the @POTUS executive orders the most. Turned out to be USAID, so that became our focus.” He said it was “time for it to die”.Musk also suggested that opposition to his team will be punished, reposting a letter sent to him from the Trump-appointed federal prosecutor for Washington DC, who vowed to “pursue any and all legal action against anyone who impedes your work or threatens your people”.The New York Democratic senator Chuck Schumer wrote on Tuesday morning: “An unelected shadow government is conducting a hostile takeover of the federal government. DOGE is not a real government agency. DOGE has no authority to shut programs down or to ignore federal law.” Musk responded that the reaction was “hysterical”.As other Democrats and government oversight groups began to respond to the breakneck series of actions from Musk’s team, on Tuesday the Tesla and SpaceX CEO continued to plow ahead with his cuts and told his supporters: “We’re never going to get another chance like this.”Musk takes over federal agenciesImmediately following Trump’s inauguration on 20 January, the president issued an executive order establishing Musk’s “department of government efficiency”. Rather than create an entirely new entity, the order renamed the US Digital Service, which was previously tasked with updating government IT systems, and brought the rechristened bureau into the executive office of the president.Government accountability groups instantly saw red flags with its creation, filing four separate lawsuits that alleged Doge violated federal transparency laws while warning that the initiative was “slated to dictate federal policy in ways that will affect millions of Americans”.The concerns from watchdog organizations have borne out. Musk and employees of Doge have gained access to sensitive government systems in the treasury department and USAid in recent days, as well as exerted control over the office of personnel management (OPM) and the General Services Administration, which handles federal real estate, with the goal of ending office leases. Two federal workers additionally sued on Tuesday for a temporary restraining order against Doge for allegedly operating an illegal server in OPM.View image in fullscreenAttempts at blocking Musk’s team have resulted in several top agency officials being ousted. On Friday, the treasury department’s acting secretary, David Lebryk, resigned after refusing to grant Musk’s team access to highly secure systems that control about $6tn in annual payments to millions of Americans. The next day, two senior security officials at USAid attempted to stop Doge workers from gaining physical access to restricted areas at the agency – resulting in a standoff in which a deputy for Musk threatened to call the US marshals. Both security officials have subsequently been put on administrative leave, and on Sunday night staff at USAid received emails telling them to not come into work the next day.The events unfolded swiftly and took place mostly outside of working hours, creating uncertainty over the weekend as to who was in charge and what authority the Doge team possessed. Many of the Doge team tasked with carrying out the overhauls of government agencies appear to have little to no experience in government and are extremely young. One of the engineers is as young as 19, Wired reported, while a 25-year-old who previously worked at two of Musk’s companies gained access to treasury department payment systems.The Trump administration has maintained that all Musk’s actions have been legal and did not violate security protocols, although the details of what Doge employees are doing with access to government systems is still unclear. “No classified material was accessed without proper security clearances,” Katie Miller, a Doge spokesperson and wife of the far-right Trump administration official Stephen Miller, wrote on X.Musk has claimed that his actions are cutting unnecessary costs and will allow for more efficient government, but he has also suggested his taskforce is ideologically opposed to liberal initiatives such as refugee services and the promotion of trans rights. He has routinely engaged with far-right and conspiracy theory-promoting accounts on X while touting his dismantling of USAid, an agency that has become a target in recent years among hardline conservatives. The far-right Heritage Foundation thinktank specifically called for reforming USAid in its controversial Project 2025 report, accusing it of spreading “climate extremism” and “gender radicalism”.skip past newsletter promotionafter newsletter promotionMusk acting with Trump’s backingTrump has supported Musk’s aggressive approach to dismantling government agencies, confirming plans on Monday to shut down USAid and praising Musk as a “big cost cutter”. As backlash swelled and Democrats issued calls for action against Musk on Monday, Trump attempted to assuage some of the concerns and reassert that he was in charge.“Elon can’t do and won’t do anything without our approval,” Trump said in the Oval Office. “We’ll give him approval where appropriate and where not appropriate we won’t.”But there have been no public signs thus far that Trump has reined in Musk’s ambitions or prevented him from engaging in potential conflicts – he has many, as a number of his companies do extensive work with government agencies he now holds sway over. Several of Trump’s recent policy announcements also appeared to align with Musk’s worldview and personal grievances.View image in fullscreenTrump declared on Monday that he would shut down all aid to South Africa, Musk’s country of birth, over what he alleged was a “massive human rights violation” in the form of a new land rights law. Musk has repeatedly accused the South African government of racism against white people and falsely claimed that the government is allowing a “genocide” against white farmers.Another executive order from Trump on 31 January vowed to “unleash prosperity through deregulation” and declared that whenever a government agency issues a new regulation it must first remove 10 existing regulations. The order has echoed Musk’s longstanding calls for widespread deregulation of the federal government, which Musk reiterated in a livestream on Monday night on X, when he stated “regulations, basically, should be default gone”. He described the current administration as “our best shot” at this deregulation and “the best hand of cards we’re ever going to have”.Musk has made sweeping and aggressive declarations about what else must change about the US government, indicating where he might strike next. He stated on Monday: “Activist judges must be removed from the bench or there is no justice,” and praised the representative Marjorie Taylor Greene for issuing calls for NPR and PBS to testify at a hearing about their operations. Greene, who is head of a “delivering on government efficiency” group within the House oversight committee that aims to support Musk’s efforts, accused the public media organizations of ideological bias – citing a PBS report that Musk “gave what appeared to be a fascist salute” during a speech last month.It is uncertain what mechanisms may prevent further cuts by Musk. His immense influence coupled with his erratic behavior have made it difficult to quickly ascertain where the next axe may fall, such as on Monday when Musk claimed that a government agency that worked on a free IRS tax filing system was “deleted” while giving no further information. The agency’s program was still online as of Tuesday.What is clear from Musk’s public statements is the intent to barrel ahead with accumulating more power over government agencies, while framing his crusade as an existential fight for the future of the country.“It’s now or never,” the billionaire tweeted on Tuesday. “Your support is crucial to the success of the revolution of the people.” More