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Jay Shackford
Time to Dig In
By Heather Cox Richardson
February 3, 2025
Billionaire Elon Musk’s team yesterday took control of the Treasury’s payment system, thus essentially gaining access to the checkbook with which the United States handles about $6 trillion annually and to all the financial information of Americans and American businesses with it. Apparently, it did not stop there.
Today Ellen Knickmeyer of the Associated Press reported that yesterday two top security officials from the U.S. Agency for International Development (USAID) tried to stop people associated with Musk’s Department of Government Efficiency, or DOGE, from accessing classified information they did not have security clearance to see. The Trump administration put the officials on leave, and the DOGE team gained access to the information.
Vittoria Elliott of Wired has identified those associated with Musk’s takeover as six “engineers who are barely out of—and in at least one case, purportedly still in—college.” They are connected either to Musk or to his long-time associate Peter Thiel, who backed J.D. Vance’s Senate run eighteen months before he became Trump’s vice presidential running mate. Their names are Akash Bobba, Edward Coristine, Luke Farritor, Gautier Cole Killian, Gavin Kliger, and Ethan Shaotran, and they have little to no experience in government.
Public policy expert Dan Moynihan told reporter Elliott that the fact these people “are not really public officials” makes it hard for Congress to intervene. “So this feels like a hostile takeover of the machinery of governments by the richest man in the world,” he said. Law professor Nick Bednar noted that “it is very unlikely” that the engineers “have the expertise to understand either the law or the administration needs that surround these agencies.”
After Musk’s team breached the USAID computers, cybersecurity specialist Matthew Garrett posted: “Random computers being plugged into federal networks is obviously terrifying in terms of what data they're deliberately accessing, but it's also terrifying because it implies controls are being disabled—unmanaged systems should never have access to this data. Who else has access to those systems?”
USAID receives foreign policy guidance from the State Department. Intelligence agencies must now assume U.S. intelligence systems are insecure.
Musk’s response was to post: “USAID is a criminal organization. Time for it to die.” Also last night, according to Sam Stein of The Bulwark, “the majority of staff in the legislative and public affairs bureau lost access to their emails, implying they’ve been put on admin leave although this was never communicated to them.”
Congress established USAID in 1961 to bring together the many different programs that were administering foreign aid. Focusing on long-term socioeconomic development, USAID has a budget of more than $50 billion, less than 1% of the U.S. annual budget. It is one of the largest aid agencies in the world.
Musk is unelected, and it appears that DOGE has no legal authority. As political scientist Seth Masket put it in tusk: “Elon Musk is not a federal employee, nor has he been appointed by the President nor approved by the Senate to have any leadership role in government. The ‘Department of Government Efficiency,’ announced by Trump in a January 20th executive order, is not truly any sort of government department or agency, and even the executive order uses quotes in the title. It’s perfectly fine to have a marketing gimmick like this, but DOGE does not have power over established government agencies, and Musk has no role in government. It does not matter that he is an ally of the President. Musk is a private citizen taking control of established government offices. That is not efficiency; that is a coup.”
DOGE has simply taken over government systems. Musk, using President Donald Trump’s name, is personally deciding what he thinks should be cut from the U.S. government.
Today, Musk reposted a social media post from MAGA religious extremist General Mike Flynn, who resigned from his position as Trump’s national security advisor in 2017 after pleading guilty to secret conversations with a Russian agent—for which Trump pardoned him—and who publicly embraced the QAnon conspiracy theory. In today’s post, Flynn complained about “the ‘Lutheran’ faith” and, referring to federal grants provided to Lutheran Family Services and affiliated organizations, said, “this use of ‘religion’ as a money laundering operation must end.” Musk added: “The [DOGE] team is rapidly shutting down these illegal payments.”
In fact, this is money appropriated by Congress, and its payment is required by law. Republican lawmakers have pushed government subsidies and grants toward religious organizations for years, and Lutheran Social Services is one of the largest employers in South Dakota, where it operates senior living facilities.
South Dakota is the home of Senate majority leader John Thune, who has not been a strong Trump supporter, as well as Homeland Security secretary nominee Kristi Noem.
The news that DOGE has taken over U.S. government computers is not the only bombshell this weekend.
Another is that Trump has declared a trade war with the top trading partners of the United States: Mexico, Canada, and China. Although his first administration negotiated the current trade agreement between the U.S., Mexico, and Canada, on Saturday Trump broke the terms of that treaty.
He slapped tariffs of 25% on goods coming from Mexico and Canada, tariffs of 10% on Canadian energy, and tariffs of 10% on goods coming from China. He said he was doing so to force Mexico and Canada to do more about undocumented migration and drug trafficking, but while precursor chemicals to make fentanyl come from China and undocumented migrants come over the southern border with Mexico, Canada accounts for only about 1% of both. Further, Trump has diverted Immigration and Customs Enforcement agents combating drug trafficking to his immigration sweeps.
As soon as he took office, Trump designated Mexican drug cartels as foreign terrorist organizations, and on Friday, Secretary of Defense Pete Hegseth responded that “all options will be on the table” when a Fox News Channel host asked if the military will strike within Mexico. Today Trump was clearer: he posted on social media that without U.S. trade—which Trump somehow thinks is a “massive subsidy”—“Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada—AND NO TARIFFS!”
Trump inherited the best economy in the world from his predecessor, President Joe Biden, but on Friday, as soon as White House press secretary Karoline Leavitt confirmed that Trump would levy the tariffs, the stock market plunged. Trump, who during his campaign insisted that tariffs would boost the economy, today said that Americans could feel “SOME PAIN” from them. He added “BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.” Tonight, stock market futures dropped 450 points before trading opens tomorrow.
Mexican president Claudia Sheinbaum wrote, “We categorically reject the White House’s slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory,” and has promised retaliatory tariffs. China noted that it has been working with the U.S. to regulate precursor chemicals since 2019 and said it would sue the U.S. before the World Trade Organization.
Canada’s prime minister Justin Trudeau announced more than $100 billion in retaliatory 25% tariffs and then spoke directly to Americans. Echoing what economists have said all along, Trudeau warned that tariffs would cost jobs, raise prices, and limit the precious metals necessary for U.S. security. But then he turned from economics to principles.
“As President John F. Kennedy said many years ago,” Trudeau began, “geography has made us neighbours. History has made us friends, economics has made us partners and necessity has made us allies.” He noted that “from the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar,” Canadians “have “fought and died alongside you.”
“During the summer of 2005, when Hurricane Katrina ravaged your great city of New Orleans, or mere weeks ago when we sent water bombers to tackle the wildfires in California. During the day, the world stood still—Sept. 11, 2001—when we provided refuge to stranded passengers and planes, we were always there, standing with you, grieving with you, the American people.
“Together, we’ve built the most successful economic, military and security partnership the world has ever seen. A relationship that has been the envy of the world…. Unfortunately, the actions taken today by the White House split us apart instead of bringing us together.”
Trudeau said Canada’s response would “be far reaching and include everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes. It’ll include major consumer products like household appliances, furniture and sports equipment, and materials like lumber and plastics, along with much, much more. He assured Canadians: “[W]e are all in this together. The Canadian government, Canadian businesses, Canadian organized labour, Canadian civil society, Canada’s premiers, and tens of millions of Canadians from coast to coast to coast are aligned and united. This is Team Canada at its best.”
Canadian provincial leaders said they were removing alcohol from Republican-dominated states, and Canadian member of parliament Charlie Angus noted that the Liquor Control Board of Ontario buys more wine by dollar value than any other organization in the world and that Canada is the number one export market for Kentucky spirits. The Liquor Control Board of Ontario has stopped all purchases of American beer, wine, and spirits, turning instead to allies and local producers. Canada’s Irving Oil, which provides heating oil to New England, has already told customers that prices will reflect the tariffs.
In a riveting piece today, in his Thinking about…, scholar of authoritarianism Timothy Snyder wrote that “[t]he people who now dominate the executive branch of the government…are acting, quite deliberately, to destroy the nation.” “Think of the federal government as a car,” he wrote. “You might have thought that the election was like getting the car serviced. Instead, when you come into the shop, the mechanics, who somehow don’t look like mechanics, tell you that they have taken the parts of your car that work and sold them and kept the money. And that this was the most efficient thing to do. And that you should thank them.”
On Friday, James E. Dennehy of the FBI’s New York field office told his staff that they are “in a battle of our own, as good people are being walked out of the F.B.I. and others are being targeted because they did their jobs in accordance with the law and F.B.I. policy.” He vowed that he, anyway, is going to “dig in.”
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Notes:
https://apnews.com/article/doge-musk-trump-classified-information-usaid-security-35101dee28a766e0d9705e0d47958611
https://www.state.gov/resources-and-reports-office-of-foreign-assistance/
https://www.cnn.com/2025/02/02/politics/usaid-officials-leave-musk-doge/index.html
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