Login.gov and IRS Direct File in Limbo After Elon Musk’s DOGE Scraps Federal Tech Team

A major government tech unit behind essential services like Login.gov and IRS Direct File has been abruptly shut down. The decision, quietly executed overnight, has left employees locked out and key projects in limbo.

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Login.gov and IRS Direct File in Limbo After Elon Musk’s DOGE Scraps Federal Tech Team | en.Econostrum.info - United States

The General Services Administration (GSA) has officially disbanded 18F, a technology unit that played a key role in modernizing federal IT systems, including the widely used Login.gov platform. The move, which was revealed in an internal memo obtained by Politico, is part of broader cost-cutting measures under the Trump administration’s restructuring efforts.

A major shift in government IT operations

18F was established in 2014 as an internal government consultancy designed to improve digital services across federal agencies. Over the past decade, it contributed to projects such as:

  • Login.gov, the government’s centralized authentication system for services like Medicare, Medicaid, and Social Security.
  • The IRS Direct File system, allowing taxpayers to submit their returns online for free.
  • The modernization of the Department of Justice Civil Rights Division’s complaint submission platform.

The unit operated on a cost-recovery model, meaning it charged other agencies for its services rather than relying on direct congressional appropriations.

According to its official website, 18F was funded through the Acquisition Services Fund (ASF), which allowed it to develop digital tools for federal agencies on a reimbursable basis.

Political and budgetary pressures

The decision to shut down 18F follows increased scrutiny of the unit in recent months. The closure was reportedly initiated by the Department of Government Efficiency (DOGE), a newly created office within the administration focused on reducing federal spending. The department is led by Elon Musk, who has been vocal about streamlining government operations.

In February, Musk shared a post labeling 18F as a “far-left” group and accused it of obstructing Trump’s first-term agenda. Shortly after, reports emerged of internal discussions within the GSA about dismantling the unit. The final decision was reportedly made in a late-night meeting and was communicated to employees at 1 a.m. ET on Saturday morning.

Impact on federal IT infrastructure

The elimination of 18F affects approximately 70 employees, including engineers, designers, and procurement specialists. The abrupt nature of the closure has led to confusion among staff, with reports stating that employees were locked out of their computers and emails without prior notice.

Former 18F staff have raised concerns about how ongoing projects will be transitioned. In an official statement, employees alleged they were given “no chance to assist in an orderly transfer of work.” Some have also reported difficulties returning government-issued equipment due to lost email access.

Broader implications for federal digital services

The closure of 18F follows recent cuts to the U.S. Digital Service (USDS), which previously provided IT consulting to federal agencies. Earlier this month, USDS was restructured and renamed the U.S. DOGE Service, with 40 employees laid off and 21 resigning in protest.

Critics argue that these moves could disrupt federal IT modernization efforts. Vivian Graubard, a founding member of the US Digital Service, warned that the rapid restructuring could introduce security risks. In a recent LinkedIn post, she claimed that new DOGE engineers were being granted access to sensitive systems without proper vetting.

Others suggest that the changes may benefit private-sector contractors. Don Moynihan, a professor at the University of Michigan’s Ford School of Public Policy, stated that the dissolution of 18F could clear the way for Silicon Valley vendors to take over federal IT projects. He described DOGE as a temporary wrecking crew paving the way for private industry to fill the gap.

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