President Donald Trump asserted control over Elon Musk’s aggressive government restructuring efforts on Monday, February 3, stating that the billionaire entrepreneur “can’t and won’t do anything without our approval” amid mounting controversy over sweeping agency cuts and reorganizations.
The statement comes as Musk’s Department of Government Efficiency (DOGE) faces intense scrutiny for its unprecedented access to classified information and rapid dismantling of federal agencies. In recent days, DOGE has gained access to at least 11 federal agencies, including the Treasury Department, Education Department, Federal Aviation Administration (FAA), and Federal Bureau of Investigation (FBI), gaining access to some of the government’s biggest payment systems, personnel information, and personal information of many Americans.
A federal judge early Saturday, February 8, barred Elon Musk’s DOGE from obtaining Treasury Department records containing sensitive personal information, including Social Security numbers and bank account details for millions of Americans.
U.S. District Judge Paul A. Engelmayer issued the preliminary injunction in response to a lawsuit filed by 19 Democratic attorneys general against President Donald Trump. The lawsuit, submitted in federal court in New York City, claims the Trump administration unlawfully granted Musk’s team access to the Treasury Department’s central payment system.
This payment system manages tax refunds, Social Security benefits, veterans’ benefits, and other financial distributions, processing trillions of dollars annually.
Engelmayer, appointed by President Barack Obama, also ordered that anyone who has accessed the sensitive information since January 20 must promptly destroy all copies of any materials downloaded from Treasury Department systems.
The most significant upheaval occurred at the U.S. Agency for International Development (USAID), where two top security chiefs were placed on administrative leave after refusing to grant Musk’s team access to classified materials. John Voorhees and Brian McGill cited insufficient security clearances as the legal basis for their denial, according to officials familiar with the situation. Despite their objections, DOGE eventually gained access to the agency’s classified information, including intelligence reports.
“USAID is a criminal organization that is beyond repair,” Musk stated in discussions with the president, advocating for the agency’s complete shutdown.
The administration has already begun dismantling USAID’s operations, ordering forced leaves and furloughs for over 8,000 direct hires and contractors, with fewer than 300 employees exempted. Secretary of State Marco Rubio announced plans to merge the agency with the State Department, effectively ending its six-decade independence. The administration claims these changes are part of a review to determine which aid and development programs to resume, though critics argue the moves are illegal without congressional approval.
On Friday, February 7, a federal judge temporarily prevented the Trump administration from placing 2,200 USAID employees on paid leave. District Judge Carl Nichols, a Trump appointee, ruled in favor of two federal employee unions, ordering a halt to the plan to place the workers on paid leave starting at midnight Friday.
Federal employee associations contend that Trump did not have the legal authority to rapidly dismantle a 60-year-old aid agency established by Congress.
On Friday, Trump posted on social media, calling for USAID to be “CLOSE[D] DOWN.”
That same day, workers covered the agency’s name on a sign outside its Washington headquarters using duct tape, a flag was removed, and someone left a bouquet of flowers at the entrance. A small group of six USAID officials speaking to reporters on Friday strongly pushed back against claims made by Secretary of State Marco Rubio that the most critical life-saving programs overseas were being allowed to continue through exemptions. According to one official, with nearly all staff dismissed and funding frozen, the agency has “effectively ceased to exist.”
On Thursday afternoon, February 6, the administration had informed remaining USAID officials that 297 employees would be excluded from the widespread leave and furloughs affecting at least 8,000 staff members and contractors, according to USAID staff and officials.
Later that evening, the list was updated to include 611 employees who would continue working, with many assigned to oversee the return of thousands of staff, contractors, and their families from overseas. Justice Department attorney Brett Shumate confirmed the 611 figure during a court hearing.
DOGE’s influence extends beyond USAID. At the Office of Personnel Management (OPM), which employs approximately 3,000 people, Brian Bjelde, who serves as both a senior adviser at OPM and Vice President of People Operations at SpaceX, directed senior staff to prepare for a 70% reduction in workforce. Managers were instructed to identify the first 30% of their teams for immediate cuts.
The restructuring efforts have already yielded significant financial impacts. DOGE claims to have saved over $1 billion by canceling various contracts, including diversity, equity, and inclusion initiatives. The task force has also gained unprecedented access to the Treasury Department’s payment systems and the Centers for Medicare and Medicaid Services, which has contracts totaling $1 trillion, raising concerns about data security and potential conflicts of interest.
Congressional Democrats have expressed concern that Trump may be moving toward ending several independent agencies, with elements of their missions being absorbed into larger departments. While the administration cannot simply abolish these agencies, critics argue they are being transformed into shadows of their former selves through workforce reductions and operational changes.
Federal employee unions have mounted legal challenges to these changes. A lawsuit filed against the administration’s “deferred resignation” program argues that the offer is “arbitrary, capricious” and violates various laws. The program would allow federal workers to continue receiving pay and benefits through September 2025 if they agree to resign. The lawsuit also claims that the program’s nine-day deadline for workers to make a decision is too short, compared to previous voluntary resignation offers that provided a year.
The situation has caused significant stress among federal workers. “Many workers are hesitant to accept the buyout offers, fearing that the government may not honor the terms or that they will be fired regardless,” said a union representative who requested anonymity due to the sensitive nature of ongoing negotiations. Some agencies have even threatened reductions in force if not enough people accept the offers.
As of Friday, over 65,000 federal workers had submitted resignations, representing less than 3% of the 2.3 million federal employees (excluding military and Postal Service personnel). This falls short of Musk’s predicted 5-10% target. The administration estimates potential savings of $6.9 billion annually from these workforce reductions, though achieving substantial budgetary savings through workforce cuts could prove challenging, particularly for agencies providing essential public services.
On Thursday, February 6, a federal judge in Boston issued a nationwide halt to the Trump administration’s buyout offer for federal employees, just under 11 hours before the acceptance deadline.
The injunction from Judge George O’Toole Jr. will remain in place until at least Monday when a hearing will be held to evaluate the legality of the buyout plan. Federal agencies are required to inform employees who were offered the buyout that the program is suspended until Monday.
At Thursday’s hearing, O’Toole stated, “I am not making any judgment on the validity of the claims at this time.”
The administration maintains that Musk and DOGE have “the appropriate security clearances” and that DOGE employees are employees of relevant agencies. However, as a “special government employee,” Musk is not required to file a public financial disclosure report, adding to concerns about potential conflicts of interest in his dual role as a private sector CEO and government reformer.