logo
Vought grilled over DOGE, spending cuts in House hearing

Vought grilled over DOGE, spending cuts in House hearing

Yahooa day ago

Office of Management and Budget (OMB) Director Russell Vought was grilled by both sides of the aisle over the administration's sweeping cost-cutting plans as he testified before House appropriators Wednesday afternoon.
Vought faced a wide-ranging list of questions during a budget hearing, as lawmakers pressed him over President Trump's latest spending cut requests, the Department of Government Efficiency (DOGE), along with a major tax package of the president's priorities making its way through Congress.
One area of bipartisan interest was leadership at DOGE, an effort Trump previously tapped tech billionaire Elon Musk for.
Vought said the administration was 'in the midst of, with the last week or so, of establishing the leadership on an ongoing basis' following the exit of Musk. Other top officials at the department have also departed in recent days, including Steve Davids, whom Vought noted previously led the effort.
He added that he partly thinks 'the vision for DOGE' is that it 'go and be far more institutionalized' at actual agencies and working 'almost as in-house consultants as a part of the agency's leadership.
The OMB chief also faced questions over the president's budget request for fiscal 2026, which lawmakers have noted is incomplete.
'Where's the budget?' Rep. Steve Womack (R-Ark.), a spending cardinal asked him.
'We believe you have the budget,' Vought responded, after the White House released a 1,000-page budget document last Friday detailing more of its demands.
'We have a skinny budget,' Womack said.
'You have the skinny budget, discretionary budget in full,' the OMB director replied, which he said allows the House' funding 'to get the appropriations process moving forward.'
Vought added that the administration has been focused at the same time on getting the president's tax plan to his desk, after it recently passed the House and faces changes in the Senate.
He also faced heat from Democrats over other components of that plan, including reforms to Medicaid that Republicans have attached to the proposed tax cuts as an effort to save hundreds of billions of federal dollars over the next decade.
'The bill that you just said the White House supports is going to add, depending [on] who you talk to, 2.4 trillion to $5 trillion to the national debt,' Rep. Mark Pocan (D-Wis.) said. 'It's going to make somewhere between 11 and 16 million people lose their health care.
'I know you said on a Sunday morning show, no one will lose coverage as a result of this bill is that still your standing?' the lawmaker asked.
Vought responded that the bill does 'not lead to less coverage for Medicaid beneficiaries.' They both went back and forth over the bill's impact on the program before Pocan needled Vought on the fiscal impact of the bill.
The budget chief said, 'the bill will not increase the debt,' however, federal budget analysts estimate it would add more than $2 trillion to the nation's deficits in roughly a decade.
Another notable moment from the hearing came when Vought was questioned by a Republican about proposed cuts to the President's Emergency Plan for AIDS Relief (PEPFAR) pursued as part of the Trump administration's latest rescissions request.
He defended the reductions as targeting items like 'teaching young children how to make environmentally friendly reproductive health decisions' and efforts he claimed were aimed at strengthening 'the resilience of lesbian, gay, bisexual, transgender, intersex and queer global movements.'
Rep. Mark Alford (R-Mo.) raised the question of PEPFAR cuts, later pressed Vought about whether prevention efforts would be impacted by the proposed reductions.
'Aside from the crazy woke programs, which I agree should be stripped,' Alford asked, 'is there any other prevention program, not treatment, but prevention program listed in this rescission package which is not of a woke nature?'
Vought said in response that the administration seeks to scale 'down the program as it pertains to the types of organizations that are providing the examples of the waste, fraud and abuse.' But, he added, 'the prevention itself is where an analytical look needs to be done.'
'There's life saving treatment after you already have HIV, but there are prevention programs that PEPFAR does, which are not of the woke nature, which can prevent someone from getting HIV,' Alford countered. 'Are those programs going to survive?'
'It is something that our budget will be very trim on because we believe that many of these nonprofits are not geared toward the viewpoints of the administration, and we're $37 trillion in debt,' Vought said. 'So, at some point, the continent of Africa needs to absorb more of the burden of providing this healthcare.'
Rep. Rosa DeLauro (Conn.), top Democrat on the House Appropriations Committee, additionally grilled the budget chief at one point over the administration's takedown of a public website that showed how funding is apportioned to federal agencies.
'Your predecessor did comply with the law for over two years, and you followed this law for two months. What happened?' DeLauro asked Vought. 'Why did the website come down? Why do we not know what is happening? Why are we going back to those days of secret decisions being made by you and whomever else in terms of the spending of the dollars that we constitutionally enacted?'
Vought responded that the administration 'had constitutional concerns with the provision' and 'it's something that degraded our ability to manage taxpayer resources.'
DeLauro told the OMB director shortly after that she thought the 'level of your honesty on your claims [really] shines through on this topic' and accused him of making 'up constitutional issues.'
'We have no way of knowing if you are carrying out what we have lawfully required the executive branch to do,' the Connecticut Democrat said. 'That is our responsibility, and your responsibility is to carry out what it is that we have appropriated here.'
'You just can't pick and choose whatever the hell you want,' she added.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Musk could lose billions of dollars depending on how spat with Trump unfolds
Musk could lose billions of dollars depending on how spat with Trump unfolds

The Hill

time33 minutes ago

  • The Hill

Musk could lose billions of dollars depending on how spat with Trump unfolds

NEW YORK (AP) — The world's richest man could lose billions in his fight with world's most powerful politician. The feud between Elon Musk and Donald Trump could mean Tesla's plans for self-driving cars hit a roadblock, SpaceX flies fewer missions for NASA, Starlink gets fewer overseas satellite contracts and the social media platform X loses advertisers. Maybe, that is. It all depends on Trump's appetite for revenge and how the dispute unfolds. Joked Telemetry Insight auto analyst Sam Abuelsamid, 'Since Trump has no history of retaliating against perceived adversaries, he'll probably just let this pass.' Turning serious, he sees trouble ahead for Musk. 'For someone that rants so much about government pork, all of Elon's businesses are extremely dependent on government largesse, which makes him vulnerable.' Trump and the federal government also stand to lose from a long-running dispute, but not as much as Musk. The dispute comes just a week before a planned test of Tesla's driverless taxis in Austin, Texas, a major event for the company because sales of its EVs are lagging in many markets, and Musk needs a win. Trump can mess things up for Tesla by encouraging federal safety regulators to step in at any sign of trouble for the robotaxis. Even before the war of words broke out on Thursday, the National Highway Transportation Safety Administration requested data on how Musk's driverless, autonomous taxis will perform in low-visibility conditions. That request follows an investigation last year into 2.4 million Teslas equipped with full self-driving software after several accidents, including one that killed a pedestrian. A spokesman for NHTSA said the probe was ongoing and that the agency 'will take any necessary actions to protect road safety.' The Department of Justice has also probed the safety of Tesla cars, but the status of that investigation is unclear. The DOJ did not respond immediately to requests for comment. The promise of a self-driving future led by Tesla inspired shareholders to boost the stock by 50% in the weeks after Musk confirmed the Austin rollout. But on Thursday, the stock plunged more than 14% amid the Trump-Musk standoff. On Friday, it recovered a bit, bouncing back nearly 4%. 'Tesla's recent rise was almost entirely driven by robotaxi enthusiasm,' said Morningstar analyst Seth Goldstein. 'Elon's feud with Trump could be a negative.' One often-overlooked but important part of Tesla's business that could take a hit is its sales of carbon credits. As Musk and Trump were slugging it out Thursday, Republican senators inserted new language into Trump's budget bill that would eliminate fines for gas-powered cars that fall short of fuel economy standards. Tesla has a thriving side business selling 'regulatory credits' to other automakers to make up for their shortfalls. Musk has downplayed the importance of the credits business, but the changes would hurt Tesla as it reels from boycotts of its cars tied to Musk's time working for Trump. Credit sales jumped by a third to $595 million in the first three months of the year even as total revenue slumped. Musk's foray into right-wing politics cost Tesla sales among the environmentally minded consumers who embraced electric cars and led to boycotts of Tesla showrooms. If Musk has indeed ended his close association with Trump, those buyers could come back, but that's far from certain. Meanwhile, one analyst speculated earlier this year that Trump voters in so-called red counties could buy Teslas 'in a meaningful way.' But he's now less hopeful. 'There are more questions than answers following Thursday developments,' TD Cowen's Itay Michaeli wrote in his latest report, 'and it's still too early to determine any lasting impacts.' Michaeli's stock target for Tesla earlier this year was $388. He has since lowered it to $330. Tesla was trading Friday at $300. Tesla did not respond to requests for comment. Trump said Thursday that he could cut government contracts to Musk's rocket company, SpaceX, a massive threat to a company that has received billions of federal dollars. The privately held company that is reportedly worth $350 billion provides launches, sends astronauts into space for NASA and has a contract to send a team from the space agency to the moon next year. But if Musk has a lot to lose, so does the U.S. SpaceX is the only U.S. company capable of transporting crews to and from the space station, using its four-person Dragon capsules. The other alternative is politically dicey: depending wholly on Russia's Soyuz capsules. Musk knew all this when he shot back at Trump that SpaceX would begin decommissioning its Dragon spacecraft. But it is unclear how serious his threat was. Several hours later — in a reply to another X user — he said he wouldn't do it. A subsidiary of SpaceX, the satellite internet company Starlink, appears to also have benefited from Musk's once-close relationship with the president. Musk announced that Saudi Arabia had approved Starlink for some services during a trip with Trump in the Middle East last month. The company has also won a string of other recent deals in Bangladesh, Pakistan, India and elsewhere as Trump has threatened tariffs. It's not clear how much politics played a role, and how much is pure business. On Friday, The Associated Press confirmed that India had approved a key license to Starlink. At least 40% of India's more than 1.4 billion people have no access to the internet. Big advertisers that fled X after Musk welcomed all manner of conspiracy theories to the social media platform have started to trickle back in recent months, possibly out of fear of a conservative backlash. Musk has called their decision to leave an 'illegal boycott' and sued them, and the Trump administration recently weighed in with a Federal Trade Commission probe into possible coordination among them. Now advertisers may have to worry about a different danger. If Trump sours on X, 'there's a risk that it could again become politically radioactive for major brands,' said Sarah Kreps, a political scientist at Cornell University. She added, though, that an 'exodus isn't obvious, and it would depend heavily on how the conflict escalates, how long it lasts and how it ends.' ___ Associated Press Writer Barbara Ortutay in San Francisco contributed to this report.

DOGE just got a green light to access your Social Security data. Here's what that means
DOGE just got a green light to access your Social Security data. Here's what that means

CNN

time35 minutes ago

  • CNN

DOGE just got a green light to access your Social Security data. Here's what that means

When people think of Social Security, they typically think of monthly benefits — for the roughly 69 million retirees, disabled workers, dependents and survivors who receive them today. But efforts by the Department of Government Efficiency this year to access the Social Security Administration's data systems should conjure up thoughts of data on hundreds of millions of people. Why? Because the SSA's multiple data systems contain an extensive trove of personal information on most people living in the United States today — as well as those who have died. While a lower federal court had blocked DOGE's efforts to access such data — which it argued it needs in order to curtail waste, fraud and abuse — the Supreme Court lifted that order on Friday, allowing DOGE to access the data for now. The three liberal justices — Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson — dissented. In her opinion, Jackson wrote, 'The government wants to give DOGE unfettered access to this personal, non-anonymized information right now — before the courts have time to assess whether DOGE's access is lawful,' she added. The personal data the Social Security Adminstration has on most Americans runs 'from cradle to grave,' said Kathleen Romig, who used to work at the SSA, first as a retirement policy analyst and more recently as a senior adviser in the Office of the Commissioner. DOGE was created unilaterally by President Donald Trump with the goal of 'modernizing Federal technology and software to maximize governmental efficiency and productivity,' according to his executive order. To date, the group has caused chaos and intimidation at a number of federal agencies where it has sought to take control and shut down various types of spending. It is also the subject of various lawsuits questioning its legal right to access wholesale the personal data of Americans on highly restricted government IT systems and to fire groups of federal workers in the manner it has. Here's just a partial list of the data the SSA systems likely have about you: your name, Social Security number, date and place of birth, gender, addresses, marital and parental status, your parents' names, lifetime earnings, bank account information, immigration and work authorization status, health conditions if you apply for disability benefits, and use of Medicare after a certain age, which the SSA may periodically check to ascertain whether you're still alive. Other types of personal information also may be obtained or matched through the SSA's data-sharing agreements with the IRS and the Department of Health and Human Services. Information on your assets and living arrangements also may be gathered if you apply for Supplemental Security Income (SSI), which is meant to help those with very limited income. As with the IRS data systems to which DOGE has also sought access, the SSA systems are old, complex, interconnected and run on programming language developed decades ago. If you make a change in one system, it could trip up another if you don't know what you're doing, said Romig, who now is director of Social Security and disability policy at the liberal Center on Budget and Policy Priorities. And, just as at the IRS, there are concerns that if DOGE team members get access to the SSA systems and seek to make changes directly or through an SSA employee, they could cause technical errors or base their decisions on incorrect understandings of the data. For example, multibillionaire CEO Elon Musk, a driving force at DOGE, had incorrectly claimed that SSA is making payments to millions of dead people. His claim appeared to be based on the so-called Numident list, which is a limited collection of personal data, Romig said. The list includes names, Social Security numbers, and a person's birth and death dates. But the Numident list does not reflect the death dates for 18.9 million people who were born in 1920 or earlier. That's a known problem, which the Social Security inspector general in a 2023 report already recommended the agency correct. That same report, however, also noted that 'almost none of the 18.9 million number holders currently receive SSA payments.' And making any decisions based on mistaken interpretations could create real-world problems for individuals. For example, Romig said, there are different types of Social Security numbers assigned — eg, for US citizens, for noncitizens with work authorization and for people on student visas who do not have work authorization. But a person's status can change over time. For example, someone on a student visa may eventually get work authorization. But it's up to the individual to update the SSA on their status. If they don't do so immediately or maybe not even for years, the lists on SSA systems may not be fully up to date. So it's easy to see how a new entity like DOGE, unfamiliar with the complexity of Social Security's processes, might make a quick decision affecting a particular group of people on a list that itself may not be current. Charles Blahous, a senior research strategist at the Mercatus Center at George Mason University, has been a leading proponent of addressing Social Security's long-term funding shortfall. And he is all for rooting out waste, fraud and abuse. But, Blahous noted, 'best estimates of improper payments in Social Security are less than 1% of the program's outlays. I've been concerned that this particular conversation is fueling profound misimpressions about Social Security and the policy challenges surrounding it.' SSA's data systems are housed in locked rooms, and permission to view — never mind alter — information on them has always been highly restricted, Romig said, noting that she was fingerprinted and had to pass a background check before being allowed to view data for her research while at the agency — and it could only be data that had no personally identifiable information. Given the variety of personal data available, there are also a number of federal privacy and other laws limiting the use and dissemination of such information. Such laws are intended to prevent not only improper use or leaks of the data by individuals, but abuse of power by government, according to the Center on Democracy and Technology. DOGE's arrival at the SSA resulted in a number of seasoned employees leaving the agency, including Michelle King, a long-time career service executive who briefly served as acting commissioner from January 20 until February 16. She resigned after DOGE staffers attempted to access sensitive government records. In her place, SSA employee Lee Dudek was named acting director. Dudek put out a statement on SSA's 'Commitment to Agency Transparency and Protecting Benefits and Information' when he came on. In it, he noted that DOGE personnel: a) 'cannot make changes to agency systems, benefit payments, or other information'; b) 'only have read access' to data; c) 'do not have access to data related to a court ordered temporary restraining order, current or future'; and d) 'must follow the law and if they violate the law they will be referred to the Department of Justice for possible prosecution.' CNN's Alayna Treene and John Fritze contributed to this report.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store