
DOGE's favorite consulting firm
Welcome to POLITICO's West Wing Playbook: Remaking Government, your guide to Donald Trump's unprecedented overhaul of the federal government — the key decisions, the critical characters and the power dynamics that are upending Washington and beyond.
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For months, DOGE has made a show of targeting the government's biggest consulting contractors as examples of taxpayer-funded bloat. In March, the Trump administration demanded that agencies justify their relationships with firms like Accenture, Deloitte and Booz Allen. By June, the General Services Administration had sent formal letters to McKinsey, Boston Consulting Group, EY and others as part of a sweeping review of consulting expenditures.
'Based on available procurement data, we have identified the 10 highest paid consulting firms listed below are set to receive over $65 billion in fees in 2025 and future years. This needs to, and must, change,' STEPHEN EHIKIAN, now deputy acting GSA administrator, wrote in the March letter.
But while DOGE targets the major players, Ehikian and other DOGE leaders are also relying on the help of one lesser-known firm that has quietly emerged as a trusted partner for DOGE, according to private agency records viewed by POLITICO.
That firm is MSI Consulting, a small outfit with around 40 employees working under contract at GSA, an epicenter of DOGE in the federal government, according to the documents.
Half a dozen MSI consultants have worked closely with DOGE leaders including Ehikian, JOSH GRUENBAUM, THOMAS SHEDD and MATT PARKHURST-SESSION as executive assistants, according to agency records and two people familiar with the dynamics granted anonymity to discuss them. They've been providing important behind-the-scenes coordination that's allowed DOGE to execute its high-profile agenda, including managing calendars, preparing slide decks and other operational support, the people said.
MSI staff have helped organize meetings on agency downsizing, including USDA's recent reorganization, and have taken part in discussions about real estate consolidation, IT audits and artificial intellligence projects across the federal government, according to one of the two people familiar with the internal dynamics granted anonymity to discuss them.
The irony? These same MSI employees have been involved in meetings between DOGE leaders and some of the very firms previously under fire from the administration but now seeking to make nice or pitch new services to GSA. MSI COO ANDREW STEGMAIER has played a direct role in carrying out these requests on behalf of Ehikian, according to internal records.
MSI worked with GSA during the Biden administration and the company's scope at GSA extends beyond supporting DOGE.
Other consulting firms including Censeo Consulting and RMA Associates also have a presence at GSA, but no firm has been more directly involved with DOGE work than MSI consulting, according to agency records reviewed by POLITICO.
MESSAGE US — West Wing Playbook is obsessively covering the Trump administration's reshaping of the federal government. Are you a federal worker? A DOGE staffer? Have you picked up on any upcoming DOGE moves? We want to hear from you on how this is playing out. Email us at westwingtips@politico.com.
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POTUS PUZZLER
President DONALD TRUMP remains in Scotland today, the birthplace of his mother MARY ANNE MacLEOD TRUMP. Who was the first president to boast Scottish ancestry?
WHO'S IN, WHO'S OUT
JERSEY GIRL: A criminal defense attorney in New Jersey is pushing to get charges against his client tossed by arguing that the Trump administration illegally maneuvered to keep ALINA HABBA as the state's top federal prosecutor, despite the expiration of her 120-day tenure, our RY RIVARD, KYLE CHENEY and JOSH GERSTEIN report. The problems for the U.S. Attorney's Office could grow if other defense attorneys file similar motions.
The Oval
DEAL OR NO DEAL? The European Union admitted today it doesn't have the power to deliver on a promise to invest $600 billion in the United States economy, only hours after making the pledge at landmark trade talks in Scotland. That's because the cash would come entirely from private sector investment over which Brussels has no authority, two EU officials told POLITICO Europe's GREGORIO SORGI.
Meanwhile, the EU's pledge to buy $250 billion worth of U.S. oil, natural gas and nuclear fuels per year for three years, is seen as more aspirational than realistic, the Wall Street Journal's GEORGI KANTCHEV and ED BALLARD report. Purchases of that size would require a major rearrangement of energy flows, and it isn't clear whether U.S. companies could even export that much.
AND ABOUT THOSE ARMS: The EU-U.S. trade deal is unlikely to increase the amount of U.S. weapons purchased by EU countries beyond what was already planned, POLITICO Europe's CHRIS LUNDAY and LAURA KAYALI report. While Trump on Sunday said the EU would buy 'vast amounts' of American weapons, European officials – much more quietly – said nothing concrete on arms had been agreed to.
WINDOWS INTO DIPLOMACY: Trump today used part of his bilateral meeting with British Prime Minister KEIR STARMER in Turnberry, Scotland to tout his golf course. It's the latest example of how Trump mixes international diplomacy with boosting his family's business empire, the Washington Post's CAT ZAKRZEWSKI and EMILY DAVIES report.
'If you take a look at the windows in the various dining rooms, they're magnificent,' Trump said during his meeting with Starmer in a minutes-long aside to discuss his property. White House officials noted that the golf courses are held in a trust managed by Trump's children.
In the Courts
NO ALLIGATOR WARDENS HERE: Legal challenges are gathering steam to the Trump administration's bid to outsource immigration detention to the state of Florida at the so-called Alligator Alcatraz jail deep in the Everglades, Josh writes in.
U.S. District Judge RODOLFO RUIZ held a 90-minute hearing today on a lawsuit the ACLU filed last month over a lack of access to lawyers and immigration courts for prisoners kept at the makeshift jail built at a site once planned as an airport for supersonic aircraft.
Ruiz, a Miami-based Trump appointee, said a 'paramount' issue in the case is whether the state or federal government is in charge. 'There seems to be some confusion as to who exactly is running the show at Alligator Alcatraz,' the judge said, saying he'll consider ordering the state and feds to quickly turn over any written agreements to the ACLU.
Ruiz set a hearing for Aug. 18 on the group's request for improved communications with detainees and an expected bid to move the suit to central Florida. 'Anything that tries to transform the court into the warden of Alligator Alcatraz is not going to happen here,' the judge warned.
MAXWELL APPEALS TO SCOTUS: GHISLAINE MAXWELL, the co-conspirator of JEFFREY EPSTEIN, made a final plea to the Supreme Court today to take up her appeal of her sex-trafficking conviction. But defense lawyer DAVID MARKUS made clear she's simultaneously making the case to Trump that he should pardon her or commute her 20-year prison sentence, Josh writes in.
'We are appealing not only to the Supreme Court but to the President himself to recognize how profoundly unjust it is to scapegoat Ghislaine Maxwell for Epstein's crimes, especially when the government promised she would not be prosecuted,' Markus wrote on X, days after Maxwell sat for an unusual two-day interview by Deputy Attorney General TODD BLANCHE.
Maxwell's appeal argues that a controversial non-prosecution deal Epstein entered into with federal prosecutors in South Florida in 2007 protects Epstein's associates like Maxwell from prosecution. The Justice Department has argued the agreement did not bind federal prosecutors in Manhattan, where Epstein and Maxwell were charged about five years ago. Lower courts agreed.
The Supreme Court is expected to announce in September or October whether it will take up Maxwell's case.
Agenda Setting
UNDOING MAJOR CLIMATE RULES: The Trump administration is planning to release a proposal Tuesday that would overturn a 16-year-old scientific finding that has allowed three administrations to regulate climate pollution, POLITICO's E&E News' JEAN CHEMNICK and ZACK COLMAN report.
Revising the so-called endangerment finding for greenhouse gases would represent a milestone in the administration's efforts to weaken the government's authority to curtail carbon emissions from the energy and automotive industries, among others. It will be paired with a proposal for rolling back climate rules for cars and trucks.
VITAMIN DEFICIENCY: Health Secretary ROBERT F. KENNEDY JR. often speaks about how many vitamins he takes, causing many in the industry to believe their moment had arrived when he was confirmed. But STEVE MISTER, chief executive of the Council for Responsible Nutrition, says his initial excitement about having an ally in the administration has given way to disappointment, our AMANDA CHU reports.
Mister's concerns underscore the tensions facing Kennedy ahead of the release of his final Make America Healthy Again report in August, which will include recommendations to fight chronic disease.
DISASTER WARNING: Trump's plans to remake FEMA are bringing to the fore a paradox of disaster policy, The Economist reports. Disaster aid has typically come from the federal government, but decisions about how to use land — such as whether a building should go up in a flood-prone area — are made by local leaders.
The Trump administration's decision about how to remake FEMA — the agency was originally going to be taken apart; more recently, administration officials say it will be revamped — should force states to think about reducing their risks related to climate change, Harvard professor SUSAN CRAWFORD told the publication.
What We're Reading
What is DOGE without Elon Musk? (Bloomberg's Cam Kettles and Gregory Korte)
How NASA engineered its own decline (The Atlantic's Franklin Foer)
Researchers quietly planned a test to dim sunlight. They wanted to 'avoid scaring' the public. (POLITICO's Corbin Hiar)
POTUS PUZZLER ANSWER
JAMES MONROE, the fifth U.S. president, was the nation's first to come from Scottish ancestry. Monroe's paternal great-great-grandfather left Scotland for the U.S. in the 17th century.
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Associated Press
21 minutes ago
- Associated Press
Cargo surge amid tariff turmoil drives the Port of Savannah to its 2nd busiest year
SAVANNAH, Ga. (AP) — Retailers scrambling to stock up ahead of anticipated stiff tariffs on imports boosted the Port of Savannah, one of the top U.S. container ports, to its second-busiest year ever, Georgia officials said Tuesday. The Savannah port moved 5.7 million container units of imports and exports across its docks in the 2025 fiscal year that ended June 30, the Georgia Ports Authority reported. That's an increase of 8.6% over the prior fiscal year and just shy of the record 5.76 million container units Savannah handled in fiscal 2022. The growth was caused in part by a surge in cargo since President Donald Trump returned to office in January promising heavy tariffs on China and other U.S. trading partners. But double-digit increases Savannah saw during the spring months were followed by a sizable drop in June container volumes as Trump's on-again, off-again tactics continued to fuel uncertainty. 'It's just going to be this very up-and-down time until things get settled,' said Georgia Ports Authority CEO Griff Lynch, who praised Trump's trade deal with the European Union as a step toward restoring stability. 'I'm sure all of it will come together. It's just a matter of timing.' The Port of Savannah is the nation's No. 4 seaport for cargo shipped in containers, giant metal boxes used to transport goods ranging from consumer electronics to frozen chickens by ship, rail and truck. Uncertainty surrounding Trump's tariff policies has resulted in gains, at least in the short term, at other major U.S. ports. A 90-day pause the Republican president placed on new tariffs announced in April gave American retailers and manufacturers a window to build up inventories ahead of new price hikes. What happens to trade volumes in the coming months may depend on a big deadline Friday, when dozens of countries face increased tariffs on goods shipped to the U.S. if they don't reach a deal with the White House. The Port of Los Angeles, the top U.S. container port, reported its busiest June ever to close out fiscal 2025 with 10.5 million container units handled — a 14% increase over the previous year. At the Port of New York and New Jersey, the biggest East Coast port, container volumes from January through May were up 6.5% compared to the same period last year. Gene Seroka, executive director of the Port of Los Angeles, told reporters earlier this month that Trump's tactics have created a 'whipsaw effect' as shipping volumes slow down with new tariff announcements, then surge suddenly to take advantage of delayed tariff start dates. The National Retail Federation is forecasting that cargo containers shipped through U.S. ports will drop by double digits from August through November. At the Port of Savannah, container volume jumped 22.5% in March to 533,995 units and remained above 500,000 container units through May. The streak ended in June, when container volumes fell 9.6% compared to a year earlier. Lynch said paused shipments of automobiles to Georgia prompted by tariffs on foreign cars contributed to a 16% drop in autos moving through the nearby Port of Brunswick in fiscal 2025. Last year, Brunswick was the top U.S. port for automobiles after passing the Port of Baltimore, which was shut down for weeks after the deadly collapse of the Francis Scott Key Bridge. Cargo volumes appeared flat in July said Lynch, who anticipates another decline in August. But he said he's optimistic the turbulence won't be prolonged. 'If they can nail these tariffs down, we'll get back to normal trade,' Lynch said.


Forbes
22 minutes ago
- Forbes
Real Estate Set To Soar After Trump's One Big Beautiful Bill
WASHINGTON, DC - JULY 04: U.S. President Donald Trump, joined by Republican lawmakers, signs the ... More One, Big Beautiful Bill Act into law during an Independence Day military family picnic on the South Lawn of the White House on July 04, 2025 in Washington, DC. After weeks of negotiations with Republican holdouts Congress passed the One, Big Beautiful Bill Act into law, President Trump's signature tax and spending bill. The bill makes permanent President Donald Trump's 2017 tax cuts, increase spending on defense and immigration enforcement and temporarily cut taxes on tips, while cutting funding for Medicaid, food assistance and other social safety net programs. (Photo by) The One Big Beautiful Bill Act, signed into law by President Donald Trump on July 4, 2025, is not without its critics. From concerns about ballooning deficits to controversial cuts to Medicaid, many see the legislation as a step backward. However, for those in the commercial real estate industry, the bill is a potential game-changer. New tax provisions offer clarity and long-term stability for developers and investors, setting the stage for what could be the next major boom in the sector. While the provisions of the OBBBA will have significant implications for the entire commercial real estate market, two sectors stand to benefit particularly: low-income multifamily housing and industrial development. A Permanent Boost for Affordable Housing There is a growing housing shortage in the United States, especially in the low-income end of the market. The lack of affordable units drives homelessness, deepens poverty, strains public services, and weakens the economy by limiting workforce mobility and long-term social stability. The OBBBA specifically targets this crisis with the new incentives and provisions to jumpstart development. According to DLP Capital, a private real estate investment company specializing in affordable housing development, the gap between qualified income and actual income has grown to 54.6% from -3.7% since 2021. DLP believes the new incentives will have a significant impact on the market. "The OBBBA may be the most pro-housing CRE legislation in a generation," says DLP's head of growth, Bo Parfet. The OBBBA includes a significant boost to the Low-Income Housing Tax Credit program, which is the nation's primary tool for creating affordable housing. Before the OBBBA, it operated with annual allocations that were subject to congressional approval and extension. While effective, this approach created uncertainty for long-term project planning and limited states' ability to address the housing shortage with consistent, predictable funding. The OBBBA provides a permanent 12% increase in the annual amount of 9% LIHTC allocations. Another provision created under the OBBBA is the Fast-Track Permitting Fund, which allows developers to pay a fee to expedite federal environmental reviews under the National Environmental Policy Act. This fund is particularly beneficial for low-income housing projects that rely on federal funding or tax-exempt bonds, as it helps reduce delays that often derail or inflate the development costs. By streamlining the approval process, the fund enables affordable housing projects to meet financing deadlines more easily, improve predictability, and bring much-needed units to market more quickly. The hope is that the Fast-Track Permitting Fund will put political and market pressure on states and cities to follow suit, further reducing bottlenecks. The lengthy permitting process is often a deal-killer for developers, and reducing the timeline to construction should improve investment returns. "Multifamily—especially workforce housing—is the clear winner. More deals will move forward, faster," says Parfet. In addition to adjustments to the Low-Income Housing Tax Credit program and the introduction of the Fast-Track Permitting Fund, changes to opportunity zones are also expected to fuel growth in affordable housing. The Qualified Opportunity Zone program, designed to incentivize long-term investments in low-income communities, was created with a sunset date of December 31, 2026, for capital gain deferral. The OBBBA makes the deferral feature permanent. It also introduces new 10-year designation periods for new zones, starting in 2027, and includes provisions for rural opportunity zones with enhanced benefits. The introduction of rural opportunity zones should help direct capital into underserved rural areas, potentially spurring new industrial and multifamily developments in these regions. Investors who may have been hesitant due to the previous program's limited lifespan will likely re-evaluate Qualified Opportunity Zone projects, leading to new capital flowing into underserved communities and regions. Ben Reinberg, CEO of real estate investment firm Alliance Consolidated Group of Companies, believes the new legislation will re-energize OZ investments. "For long-term investors looking to reduce exposure and amplify yield, OZs just became very relevant again," he says. Massive Incentives For Domestic Manufacturing The Trump administration has made domestic manufacturing a central focus, using tariffs to try to shift supply chains and incentivize production at home. The OBBBA complements that strategy, combining new tax incentives with the renewal of other programs to accelerate industrial development and attract capital back to U.S. soil. The biggest incentive in the bill targets Qualified Production Property. Before the OBBBA, nonresidential buildings, such as factories, were typically depreciated over a lengthy 39-year period. While equipment and other tangible personal property qualified for bonus depreciation, the buildings themselves did not. The OBBBA introduces a new, temporary provision that allows for a 100% immediate deduction of the cost of QPP. To qualify, construction must be completed before January 1, 2029, and the property must be placed in service before January 1, 2031. QPP excludes offices, administrative areas, lodging, and parking within the building. The ability to immediately deduct the cost of eligible manufacturing facilities provides a powerful tax incentive. The QPP provision should stimulate the construction of new factories, assembly plants, and processing facilities across the U.S., encouraging companies to reshore production from overseas or nearshore from other countries to the U.S. The growth of manufacturing facilities should lead to increased demand for other logistics assets such as distribution centers and warehousing. "The opportunity lies in overlooked industrial corridors, characterized by land availability, low regulation, and favorable tax structures," Reinberg notes. "Industrial CRE is the sleeping giant. This bill just woke it up." Permanent 100% bonus depreciation, which allowed businesses to deduct the full cost of eligible qualified property immediately, was also introduced in the OBBBA. The previous law had 100% bonus depreciation phasing down. For property placed in service in 2025, the rate was set at 40%, declining further in subsequent years. The phase-down created urgency for capital expenditures to take advantage of the higher deduction rates. Another positive provision for commercial real estate is the change to the deductibility of interest costs. The previous law restricted the deduction of business interest expense to 30% of adjusted taxable income and excluded the add-back of depreciation and amortization from the calculation, lowering the amount of deductible interest for capital-intensive businesses. The OBBBA permanently amends the calculation for the business interest expense limitation to include depreciation and amortization. By including these expenses in the determination of adjustable taxable income, real estate businesses will generally be able to deduct a larger portion of their business interest expense, increasing cash flow and improving the overall profitability of debt-financed projects. In a higher-interest-rate environment, this change makes borrowing more attractive. The Revival of Commercial Real Estate The OBBBA is undoubtedly positive for the commercial real estate market. By enhancing incentives such as 100% bonus depreciation, LIHTC, fast-track permitting, and opportunity zones, the OBBBA can provide clarity and predictability to investors and developers, ultimately helping to address the affordable housing problem. Meanwhile, the new Qualified Production Property deduction is expected to reinvigorate the industrial market and promote domestic manufacturing. The OBBBA is indeed beautiful, especially for commercial property.