Elon Musk, who spearheaded the controversial DOGE initiative targeting US federal government reforms, is stepping back to refocus on Tesla amid plummeting sales and profits.
Although the turbulence caused by DOGE appears to be subsiding, experts warn that the consequences of its policies could endure and evolve in less visible, yet more damaging ways.
The DOGE (Department of Government Efficiency), established by executive order at the outset of Donald Trump’s second term, was intended to streamline bureaucracy and cut federal spending.
Elon Musk Withdraws From Frontline Role as DOGE Activity Slows
Elon Musk announced his decision last week to reduce his involvement with DOGE to concentrate on Tesla, according to CNN. This move follows a difficult quarter for the electric vehicle manufacturer, which reported a 71% drop in profits and a 9% decline in revenue.
DOGE itself, initially portrayed as a force for modernizing government operations, has instead been associated with widespread disruption. Reuters reported that more than 260,000 federal workers have lost their jobs through firings, buyouts, or early retirements.
According to Popular Information, DOGE’s aggressive approach has targeted agencies such as the Consumer Financial Protection Bureau and the US Agency for International Development, leading to significant operational shutdowns.
While DOGE’s website claims taxpayer savings of $160 billion, analysis by Nat Malkus of the American Enterprise Institute indicates that only around $60 billion has been itemized, casting doubt over the credibility of the savings figure.
Critics argue that DOGE’s rapid interventions lacked constitutional safeguards and often produced collateral damage without long-term cost reductions.
Concerns Grow Over DOGE’s Data Use and Policy Ambitions
Despite Musk’s partial withdrawal, DOGE’s activities are not coming to a complete halt. CNN reported that DOGE is collaborating with data analytics firm Palantir to create a centralized government database aimed at accelerating deportations of undocumented immigrants.
This project involves aggregating sensitive data from agencies such as the IRS and Social Security Administration, raising significant legal and ethical concerns.
According to a former senior IRS official cited by CNN, the initiative risks transforming DOGE into a “deportation machine” by facilitating rapid identification and targeting of individuals. Privacy advocates and Democratic lawmakers have expressed alarm at the potential for misuse, particularly in light of DOGE’s track record of prioritizing political goals over procedural integrity.
Chris Scott, a Democratic strategist, warned that even if DOGE appears to slow down, it is likely reassessing its strategy rather than abandoning its objectives.
While Musk’s retreat may signal the end of DOGE’s most disruptive phase, the structural impacts on government institutions and the expanded use of centralised data systems could shape US policy and civil liberties for years to come.
