Latest news with #SGEs
NDTV
3 days ago
- Business
- NDTV
Day After Elon Musk's Exit, His Right-Hand Steve Davis Also Quits DOGE
Steve Davis, who served as Elon Musk's de facto second-in-command at the Department of Government Efficiency, is following the billionaire adviser out of President Donald Trump's signature cost-cutting effort, a person familiar with the move said Thursday. Like Musk, Davis was serving as a special government employee, a designation that allowed him to keep his job as CEO of one of the billionaire entrepreneur's companies, the Boring Co., even as he worked on the DOGE effort. SGEs are limited to 130 days of work for the government in any year. Davis's move was detailed on condition of anonymity to discuss personnel moves not yet made public. The Boring Co. is a tunnel construction and equipment company. Davis has also worked at other Musk enterprises, including SpaceX and Twitter, which Musk rebranded as X. Davis's departure leaves the future of the effort to scale back US government spending up to lower-profile officials at the White House and federal agencies. Anthony Armstrong, who helped Musk buy Twitter as a banker at Morgan Stanley, and Antonio Gracias, a Musk confidant and CEO of Valor Equity Partners, are also top Musk lieutenants at DOGE. Trump created the White House unit of experts from computer engineering and finance in January as Musk sought to find $2 trillion in savings. The effort was expected to last through July 4, 2026. But after shuttering agencies and canceling contracts early in Trump's second term, the effort to find savings sputtered after allegations of widespread fraud never materialized. Musk said Wednesday that his time as a formal adviser to Trump is coming to a close. His high-profile political work for the president had spurred worries among investors about the fallout for his companies, most prominently Tesla Inc.
Yahoo
3 days ago
- Business
- Yahoo
Elon Leaves Trail of Destruction, Corruption … and No Financial Disclosure
Elon Musk's time in the Trump administration was short, but by no means merciful. As the 130 days of Musk's 'special employee' status in the White House expire, the world's richest man is leaving the government with shattered public approval, furious investors, and a to-go bag of grift and corruption to ensure the whole ordeal was worth his time. On Wednesday night, Musk wrote on X: 'As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending.' 'The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government,' Musk added. The full legacy of the so-called Department of Government Efficiency (DOGE) and its role in the early days of Trump's second administration will likely take years to articulate in full. As of now, what is clear is that Musk overpromised, under delivered, and executed his mandate to 'reduce wasteful spending' in such a manner that the cost of the resulting chaos, backtracking, lawsuits, and downstream damage may end up wiping out any theoretical gains made by the 'department.' Even harder to pinpoint will be the extent of Musk's personal and corporate opportunism while elbow deep in the viscera of the federal government. Excluding English kings, it's hard to conceive of any figure in the history of American governance who was granted such wide-reaching, unchecked, and unaccountable power to meddle with the mandates of elected representatives. Despite acting as a superseding Cabinet official — to the point where the president was forced to clarify that members of his Cabinet did actually have authority over their agencies — as a Special Government Employee (SGE), Musk was spared the rigors of a confirmation hearing. While some SGEs are required to submit public financial disclosures, Musk's was filed confidentially. This despite his known financial relationships with the Trump campaign, his foreign business relationships, and his various disputes with government oversight agencies that interact with his companies. When asked how the administration would handle any potential conflicts of interest, the White House claimed that Musk would self-police should any arise. He did not. In 130 days, Musk's team at DOGE fired a slew of employees at federal departments and agencies investigating his companies — including Tesla, Neuralink, and SpaceX — on a variety of issues, including safety violations, employee lawsuits, violations of securities laws, and medical research malpractice. Musk has also worked to intertwine the work of various federal agencies with the products produced by his companies. Earlier this month, Reuters reported that DOGE had been using a customized version of Musk's AI bot 'Grok' to analyze government data. In March, the Federal Aviation Administration began approving the use of Starlink on commercial aircraft, and reports emerged claiming the FAA was considering cancelling a $2 billion dollar contract with Verizon in favor of the Musk-owned company. In one of the most unforgettable moments of the new administration, Trump staged an improvised Tesla showroom in front of the White House and vamped like a used car salesman when Musk's government antics began to tank the stock price of his electric vehicle company. The billionaire is leaving government not only because the time he can legally spend as a SGE has expired, but because the leadership of his flagship companies — Tesla and SpaceX — have seemingly demanded he stop using his 'chainsaw for bureaucracy' to destroy their public image and refocus his attention on their needs. As Musk slithers away from his stint as the effective co-president of the nation, his social media pontification about the need for 'transparency' in government rings hollower than ever. The billionaire has installed a web of loyalists throughout the federal government that will continue to work on his behalf even as he attempts to lay low for the sake of his tech empire, and there is still no oversight mechanism to ensure public accountability. It may have only been 130 days, but Musk will likely go down in history as one of the most destructive unelected bureaucrats in American history. More from Rolling Stone 'Disappointed' Musk Slams Trump's Not-So-Beautiful Tax Bill How the Class of 2025 Got Screwed by DOGE MTG Argues With Elon Musk's AI, Calls It 'Left Leaning' Best of Rolling Stone The Useful Idiots New Guide to the Most Stoned Moments of the 2020 Presidential Campaign Anatomy of a Fake News Scandal The Radical Crusade of Mike Pence
Newsweek
23-04-2025
- Business
- Newsweek
Can Elon Musk Carry on Working for DOGE? What We Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Elon Musk has said that he intends to continue his involvement with the Department of Government Efficiency (DOGE), but will scale back his commitments to dedicate more time and energy to his business ventures. "I think starting probably next month, May, my time allocation to DOGE will drop significantly," Musk said during a conference call on Tuesday to discuss Tesla's first-quarter earnings. "I'll have to continue doing it for, I think, probably the remainder of the President's term, just to make sure that the waste and fraud that we stop does not come roaring back, which [it] will do if it has the chance," Musk added. "So, I think I'll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful." Newsweek has reached out to the White House via email for comment on Musk's future work within government. Why It Matters Aside from the work of DOGE itself—which has drawn criticism from Democratic lawmakers and advocacy groups—Musk's involvement in the government has drawn scrutiny due to the potential conflicts created by his concurrent business interests. Musk's involvement with DOGE and his association with Trump has also been credited with contributing to his company's declining stock price and sluggish global sales in recent months, prompting major investors to call for him to either relinquish his government role or step down as CEO of Tesla. What To Know Musk has served as the figurehead for DOGE since its establishment on January 20, championing the advisory body's attempts to eliminate what it perceives as waste, fraud and abuse in federal spending. As confirmed by the White House in February, Musk's has been working within the government as a "special government employee," or SGE, a type of appointment conceived by Congress in 1962, entitling the executive or legislative branch to retain individuals "with or without compensation" to serve specific, ordinarily consultative roles on a temporary basis. Per Title 18, Section 202 of the U.S. Code, SGEs are permitted to perform their duties within government "for a period not to exceed 130 days during any period of 365 consecutive days." The U.S. Federal Labor Relations Authority (FLRA) states that any work performed beyond basic "administrative matters" is counted as a full workday. Elon Musk looks on as US President Donald Trump hosts a cabinet meeting in the Cabinet Room of the White House on March 24, 2025, in Washington, DC. Elon Musk looks on as US President Donald Trump hosts a cabinet meeting in the Cabinet Room of the White House on March 24, 2025, in Washington, DC. Brendan Smialowski/AFP via Getty Images Depending on how much time Musk has devoted to DOGE since the inauguration—whether working every single day or only occasionally—he may have already used over 90 of the allowed 130 days. Assuming he has spent and will continue to devote time each day toward DOGE, Musk would legally have to relinquish his SGE status by the end of May. However, if his involvement has been limited to weekdays, the 130-day limit would in theory allow him to remain in the role until late July. With approximately 36 weeks remaining in 2025, if Musk follows through on his plan to scale back his DOGE involvements to "a day or two per week," as promised in Tuesday's earnings call, his total time with the department could range from around 100 days—assuming he has so far worked only weekdays—to as many as 165 if he has been involved in DOGE-related activities daily. Even if Musk were to exceed the 130-day limit, he could potentially maintain his SGE status, as the 130-day threshold is regarded as a "good faith estimate" under the FLRA's ethics guidelines. Newsweek has reached out to the FLRA via email for comment. Past 2025, however, reducing his work with DOGE to a couple of days per week would fall well within the 130-day-per-year limit, likely allowing him to serve as an SGE for the "remainder of the President's term." According to federal employment law expert Debra D'Agostino, there are precedents for SGEs exceeding the 130-day limit. D'Agostino pointed to a legal advisory issued by the U.S. Office of Government Ethics (OGE) last year, which gave the example of an SGE working 140 days over a 365-day period. The OGE stated that the individual could be redesignated as an SGE the following year if the hiring agency "concludes that the circumstances leading to the additional ten days were unique and unlikely to recur." "So, while there is some premise for a situation where the 130 days was exceeded, it isn't credible that any time Musk spends beyond the 130 days are 'unique and unlikely to recur,'" D'Agostino said, "as the administration seems aware of the 130 days limit on the one hand and yet is openly disregarding any confines on Musk's tenure on the other." Elon Musk attends a Cabinet meeting at the White House on April 10, 2025 in Washington, DC. Elon Musk attends a Cabinet meeting at the White House on April 10, 2025 in Washington, White House has offered conflicting views on how long Elon Musk will remain in his DOGE role. Press Secretary Karoline Leavitt, in response to an early April report of Musk's impending departure, said that both Musk and Trump agreed that the Tesla CEO "will depart from public service as a special government employee when his incredible work at DOGE is complete." President Trump, however, has said that he intends to keep Musk on "as long as I can." In late March, Musk told Fox News host Bret Baier that DOGE would have "accomplished most of the work" to achieve its hoped-for, $1 trillion reduction in the federal deficit within the 130-days timeframe, without specifying whether he would stay on beyond this point. What People Are Saying Debra D'Agostino, federal employment law expert and Founding Partner at The Federal Practice Group, told Newsweek: "More critically than the timeframe permitted, an SGE serving for more than 60 days in a calendar year is required to file a public financial disclosure report, and it does not seem that Musk has done so. There were murmurs that Musk would be filing a 'confidential' financial disclosure report, but a confidential report is only permissible where the SGE serves for less than 60 days, and regardless, there is still no evidence that Musk filed anything. The reason this is so important is that the criminal conflict of interest laws that apply to government officials also apply to SGEs." James Sample, professor of Law at Hofstra Law School, told Newsweek: "From the start of the Elon Musk and DOGE saga, his status as a special government employee has been, at best, a function of a wink and a nod. By every legal measure, the scope and import of his governmental authority made him, in the eyes of the law, an 'officer of the United States' and a 'principal' one at that. Accordingly, he should have been subject to Senate confirmation." White House Press Secretary Karoline Leavitt, via X in early April, said: "Elon Musk and President Trump have both *publicly* stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete." Elon Musk, during Tesla's earnings call on Tuesday, said: "There's been some blowback for the time that I've been spending in government with the Department of Government Efficiency or DOGE. I think the work that we're doing there is actually very important for trying to sprain in the insane deficit that is leading our country, the United States, to destruction. And the DOGE team has made a lot of progress in addressing waste and fraud." He later added: "I do think [the] large slug of work necessary to get the DOGE team in place and working in the government to get the financial house in order is mostly done... But starting next month, I'll be allocating probably more of my time to Tesla and now that the major work of establishing the Department of Government Efficiency is done." What Happens Next? With pressure coming from both administration critics and Tesla investors over his dual roles in the private and public sectors—and with Musk potentially nearing the legal time limit for unofficial government employees—both he and the White House will likely face growing calls for clarity on his future role within DOGE.
New York Post
23-04-2025
- Business
- New York Post
Elon Musk tells Tesla shareholders he'll start cutting back on DOGE work next month
Department of Government Efficiency chief Elon Musk told Tesla shareholders on Tuesday that he's planning to dramatically cut back on his work for the Trump administration next month. 'Starting next month, I will be allocating far more of my time to Tesla,' the electric car company CEO said on Tesla earnings call, according to Business Insider. Musk noted that 'the major work of establishing' DOGE has been completed and that his 'time allocation' to President Trump's government cost-cutting initiative 'will drop significantly' come May. Advertisement The billionaire tech tycoon, 53, indicated he's interested in continuing to spend a day or two a week on government matters, 'as long as it is useful,' and Trump is amenable to the idea. 3 Musk's special government employee status expires at the end of May. Getty Images Musk was already widely expected to leave his post as the unofficial head of DOGE at the end of May, when his special government employee (SGE) status expires. Advertisement Per federal regulations, SGEs can only work in government for 130 consecutive days — pegging May 30 as the Tesla, SpaceX and Starlink CEO's last day as DOGE chief. Earlier this month, Trump told reporters that he wants Musk to be a part of his administration for 'as long as possible' but acknowledged that the world's richest man may want to spend more time on his business endeavors. 3 Anti-Trump vandals have targeted Tesla cars, dealerships, and charging stations in recent weeks over Musk's work with the Trump administration. Getty Images 'We're in no rush, but there will be a point in time in which Elon's going to have to leave,' Trump said on April 3, noting that Musk has 'a number of companies to run.' Advertisement The president didn't put an exact date on when Musk would be departing the administration but said he expects it will happen 'in a few months.' Trump insisted that Musk is welcome to stay 'as long as he likes.' 3 New Tesla Cybertrucks were vandalized in Seattle on March 10. Jonathan Choe / SWNS Tesla, which reported a 71% drop in net income for the quarter during the earnings call, has been targeted by arsonists and vandals nationwide over Musk's work with the Trump administration. Advertisement 'I think a great wrong is being done to the people of Tesla and to our customers,' Musk said of the spate of vandalism in an interview with Fox News 'Special Report' host Bret Baier last month. 'I mean, Tesla's a peaceful company that has made great cars, great products — that's all it's done,' he argued. 'It hasn't harmed anyone, and yet, people are committing violence.'
Yahoo
14-04-2025
- Business
- Yahoo
Democrat-sponsored bill seeks ethics checks on special government employees
A new legislative push led by Sen. Elizabeth Warren, D-Mass., and Rep. Melanie Stansbury, D-N.M., is seeking to bar special government employees like tech billionaire and senior Trump adviser Elon Musk from communicating with government agencies that interface with their companies, and would require federal employees like Musk to meet new ethics requirements. Warren and Stansbury introduced a bill this week in the Senate and House, respectively, that would prevent special government employees (SGEs) like Musk – who lead companies worth $1 billion or more – from interacting with federal agencies that interface with his companies. SpaceX and Tesla together have received billions of dollars in government contracts over the past ten years. While the legislation introduced by Warren and Stansbury does not mention Musk or his companies by name, Musk's proximity to Trump in the early days of Trump's second term has made him a clear target of Democrats who have been outspoken about their opposition to Musk's key role in orchestrating massive cuts to the federal government, with little input from lawmakers. The bill, titled the SGE Ethics Enforcement & Reform (SEER) Act of 2025, would create what the lawmakers are calling a 'bright-line rule' that makes new provisions explicitly applicable to owners of a 'large company,' which the bill defines as any for profit company making over $1 billion. Democrats, including Warren, have also raised concerns that Musk's companies could be unfairly benefitting from Musk's influence over Trump's policies. Since 2015, Musk's companies SpaceX and Tesla have been awarded at least $24 billion in federal contracts, according to government spending data and public announcement. SpaceX has won nearly $23 million worth of contracts, which includes nearly $6 million that the Space Force recently awarded SpaceX for launch missions. MORE: Trump privately indicates Musk to step back from administration after government employee status expires: Sources 'No special Government employee, as defined in section 202 of title 18, United States 23 Code, who is not on an advisory committee or a chair or vice chair on an advisory committee may have direct or indirect communications in their official capacity with an agency or office that contracts with, regulates, or has a pending enforcement action against a large company – (1) that the special Government employee owns; or (2) for which the special Government employee serves as a senior executive or director,' the bill reads. The new bill would also implement a new requirement for government employees designated as 'special government employees' to resolve conflicts of interest between their private sector and governmental work during their service. Unlike other cabinet and high-level positions that are subject to congressional scrutiny via the Senate confirmation process, Musk, in his advisory role, is designated as a 'special government employee,' – a status Congress created in 1962 for temporary executive branch hires to perform limited duties for no more than 130 days. 'Unelected billionaire Elon Musk should not be acting as co-president of the United States and making $8 million a day from government contracts while he's at it. My new bill would crack down on conflicts of interest and create stronger ethics rules for Elon Musk and all Special Government Employees. Government should work for the American people, not billionaires lining their own pockets,' Sen. Warren said in a statement provided to ABC News. Those working for the government as special government employees are not paid by the federal government and can continue to collect payment from outside entities while performing their work for the government, which Warren and Stansbury say runs the risk of creating possible conflicts of interest. The legislation aims to address those concerns by applying the same standard ethics rules that apply to regular federal employees to special government employees after they render 60 days of government service. These rules guide federal employees to avoid using their office for personal gain, to steer clear of conflicting financial interest, to maintain impartiality, to avoid outside activity or employment that could raise conflict of interest questions, and more. The new legislation would also apply tougher scrutiny to the process of acquiring a conflict of interest waiver for this kind of work. Musk has appeared alongside Trump as recently as Thursday, when he was present at a Cabinet meeting at the White House. ABC News has previously reported that Musk could be taking a step back from his current role in the administration. His term would be up around the end of May but it had been widely rumored that the White House could take steps to keep him on or extend his employment status in some way. MORE: Trump's tariff policy is 'all chaos and corruption': Sen. Elizabeth Warren 'Elon has done a fantastic job. Look, he's sitting here, and I don't care. I don't need Elon for anything other than I happen to like him,' Trump told reporters during the meeting. Trump has acknowledged that Musk will eventually need to return to Tesla to run the company. However, when reports that Musk could depart the White House in May surfaced, White House press secretary Karoline Leavitt refuted them. 'Elon Musk and President Trump have both publicly stated that Elon will depart from public service as a special government employee when his incredible work at [the Department of Government Efficiency] is complete," Leavitt said earlier this month. The bill introduced by Warren and Stansbury faces an uncertain future on Capitol Hill. It does not currently have a Republican co-sponsor and it's unlikely to get the GOP support it would need to move through either chamber of the Republican-controlled Congress. Many Republicans have praised Musk's efforts to slash federal spending and have remained hesitant to criticize Musk's work at the Department of Government Efficiency (DOGE). Still, the bill comes as Democrats are looking to demonstrate that they are fighting against the Trump agenda on all fronts. Warren has been particularly focused on the Musk-led effort to dismantle federal agencies, including the Consumer Financial Protection Bureau that she was instrumental in creating. ABC News' Soorin Kim contributed to this report. Democrat-sponsored bill seeks ethics checks on special government employees originally appeared on
