Musk’s Expanding Role in Government Sparks Lawsuits, Political Backlash/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Elon Musk has rapidly expanded his influence over federal agencies with President Donald Trump’s approval, overseeing mass layoffs, budget cuts, and policy overhauls. Musk, acting as a special government employee, now has access to sensitive databases, payment systems, and key policy decisions. His actions have triggered lawsuits, with Democrats warning of unprecedented executive overreach.

Musk’s Federal Influence: Quick Looks
- Musk’s Expanding Role: With Trump’s support, Musk has taken over the Department of Government Efficiency (DOGE), cutting jobs and resources across agencies.
- Shutting Down USAID: Musk orchestrated the closure of the US Agency for International Development (USAID), locking employees out of their offices.
- Treasury Payment System Access: Musk’s team gained control of the Treasury Department’s payment system, handling $5 trillion annually.
- Massive Federal Layoffs: Agencies like the General Services Administration (GSA) and Office of Personnel Management (OPM) are seeing thousands of job cuts and office closures.
- Lawsuits Mount: Government unions and retirees sued the Treasury Department, accusing Musk’s DOGE team of illegally accessing private financial data.
- Democratic Pushback: Senate Minority Leader Chuck Schumer and Sen. Chris Van Hollen vowed to challenge Musk’s power grab in Congress and the courts.
- Trump Defends Musk: Trump insists Musk is simply executing his vision, saying, “Elon can’t do anything without our approval.”
Musk’s Expanding Role in Government Sparks Lawsuits, Political Backlash
Musk’s Federal Takeover: A Deep Look
In just over two weeks, Elon Musk has become one of the most powerful figures in the federal government, overseeing mass layoffs, agency shutdowns, and major policy shifts. With Trump’s blessing, Musk has reshaped key agencies under the newly created Department of Government Efficiency (DOGE), bypassing traditional government oversight.
Musk’s Expanding Federal Power
Musk’s official status as a “special government employee” grants him a unique role within the administration. Unlike traditional political appointees, he is not bound by full ethics and financial disclosure requirements.
Operating from an office in the White House, Musk and his DOGE team have begun downsizing federal operations at an unprecedented pace, targeting agencies such as:
- USAID (U.S. Agency for International Development) – Locked out employees, dismantled humanitarian aid programs.
- General Services Administration (GSA) – Ordered the termination of 7,500 federal office leases nationwide.
- Office of Personnel Management (OPM) – Initiated mass layoffs, reduced agency staffing by 70%, and pushed federal workers to resign.
- Treasury Department – Gained access to the government’s $5 trillion payment system, raising security and privacy concerns.
USAID Shutdown Sparks Chaos
The closure of USAID, the largest provider of humanitarian aid, has sparked international backlash. On Monday, Musk’s team blocked employees from their offices, with police tape sealing off the agency’s Washington headquarters.
Musk defended the move, stating:
“It’s not an apple with a worm in it; what we have is just a ball of worms. You’ve got to get rid of the whole thing.”
Critics argue that Trump cannot legally dissolve USAID without Congressional approval, setting up a potential legal showdown.
Musk Gains Access to Treasury Payment System
Perhaps the most controversial move yet, Musk’s DOGE team secured full access to the U.S. Treasury’s payment system, which handles:
- Social Security payments
- Federal employee salaries
- Government contracts worth trillions
Senator Tammy Baldwin (D-WI) called it:
“The biggest data hack ever in the world.”
On Monday, a coalition of retirees and government unions sued the Treasury Department, demanding that Musk be barred from accessing personal financial records.
Musk’s Influence Over Federal Employees
Musk’s policies have directly impacted federal workers, as DOGE has:
- Offered buyouts to encourage resignations.
- Locked employees out of payroll and benefits systems.
- Moved staff out of their offices at OPM, raising concerns over data privacy and cybersecurity.
At GSA, Musk’s appointees even proposed placing beds in federal buildings to encourage round-the-clock work schedules, mirroring Musk’s management style at Tesla and SpaceX.
Democrats Push Back with Lawsuits and Legislation
Democratic leaders have launched legal and legislative efforts to challenge Musk’s growing influence.
“We must halt this reckless dismantling of government.”
Senator Chris Van Hollen (D-MD) warned of a constitutional crisis, vowing to use Senate oversight powers to stop Musk’s unchecked authority.
Trump and Musk: A Political Alliance
Musk’s deep involvement in the federal government is seen as a reward for his political loyalty. During the 2024 election, Musk donated $250 million to Trump’s America PAC, funding:
- Door-to-door canvassing
- Digital advertising
- Voter outreach efforts
“The more I’ve gotten to know President Trump, the more I like him. Frankly, I love the guy.” – Elon Musk
What’s Next?
With lawsuits mounting and Congressional Democrats preparing legal challenges, Musk’s future in government is uncertain. However, as long as Trump supports him, Musk remains one of the most powerful figures in Washington.