Posted on Friday, 28th February 2025 by

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In a recent article, Social Security Income Tax Elimination Update, I mentioned in the summary that the Department of Government Efficiency (DOGE) had discovered excessive spending, waste, and abuse in several government agencies. I suggested that some of those funds could be used to compensate for the revenue lost if the Social Security income tax is repealed.

The DOGE was established by Executive Order (EO) 14158 on January 20, 2025. The EO aims to “establish the Department of Government Efficiency to implement the President’s DOGE Agenda by modernizing Federal technology and software to maximize governmental efficiency and productivity.”

DOGE is a temporary organization headed by the United States DOGE Service (USDS) Administrator and dedicated to advancing the President’s DOGE agenda. The U.S. DOGE Service Organization terminates on July 4, 2026.

DOGE Teams

The USDS administrator, Elon Musk, is not working unilaterally to vanquish fraud, waste, and abuse or to restructure the government’s automation and network infrastructure. In consultation with USDS, each Agency Head has established within their Agency a DOGE Team of at least four employees, which may include Special Government Employees, hired or assigned within thirty days of the date of January 20, 2025.

Each DOGE Team typically includes one DOGE Team Lead, one engineer, one human resource specialist, and one attorney. Agency Heads must ensure that DOGE Team Leads coordinate their work with USDS and advise their respective Agency Heads on implementing President Trump’s DOGE Agenda.

Primary Focus

DOGE’s Software Modernization Initiative is intended to improve the quality and efficiency of government-wide software, network infrastructure, and information technology (IT) systems. The DOGE teams, in concert with the Administrator, will work with Agency Heads to promote interoperability between agency networks and systems, ensure data integrity, and facilitate responsible data collection and synchronization.

The teams evaluate agency software and data systems for potential problems and disconnects. They don’t have access to make changes.

During a recent TV interview, Elon Musk stated that one of his primary objectives is to ensure the implementation of the President’s Executive Orders.

Major government-wide software and network infrastructure changes won’t happen overnight; years of planning, congressionally approved funds, and competitive contracts are required. You don’t turn a cruise ship on a dime. The initiative is to get the ball rolling over this 18-month period, and our politicians must keep it on track.

On the other hand, obvious fraud, waste, and abuse can be eliminated rather quickly with proper safeguards. The implementation phase is designed to address this.

Implementation

A second Executive Order dated February 11, 2025, covers the implementation of The President’s “Department of Government Efficiency” Workforce Optimization Initiative. Its purpose is to “restore accountability to the American public; this order commences a critical transformation of the Federal bureaucracy by eliminating waste, bloat, and insularity.”

Insularity means having or reflecting a narrow, provincial viewpoint. I interpret this to mean that some organizations, not all, in government lose track of the bigger picture. It’s like having blinders on, and some work groups can’t see the forest for the trees.

No agency appears to be excluded from DOGE’s reach, from USAID to the Department of Defense, Treasury, VA, DOT, and others. The President’s new cabinet will initiate deeper dives into each agency as they sift through the recommendations presented by these teams.

They seek ways to cut spending, reduce regulations, right-size the workforce, and modernize federal technology and software to maximize governmental efficiency and productivity. It is a tall task for any organization.

Federal employees and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Historical Perspective

During my 35 years of federal service, I went through numerous reorganizations. President Clinton’s administration eliminated hundreds of thousands of positions through the Voluntary Early Retirement Authority (VERA), often with an accompanying $25,000 Voluntary Separation Incentive Payment (VSIP) and Reduction in Force (RIF) proceedings.

President Clinton’s National Performance Review leader, Elaine Karmarck, testified in early 2000 before the House Committee on Oversight and Government Reform that 426,200 federal jobs were cut during President Clinton’s tenure.

The Office of Personnel Management (OPM) reported total federal civilian employment at the beginning of President Clinton’s term as 2,225,000. By the end of his term in 2000, it had decreased to 1,778,000, a 20% drop.

Current Administration Cuts

At the beginning of President Trump’s second term, federal civilian employment exceeded 2,300,000. This is May 2024 data released by OPM; additional hiring took place in the last half of 2024, and this data isn’t currently available.

The Trump administration’s first step in reducing the workforce was to offer deferred resignations to those who did not wish to return to the workplace. Approximately 75,000 accepted this offer, which provided a generous severance package of up to 9 months of full pay with benefits without a requirement to return to work. This was challenged in court. However, Judge George O’Toole lifted the restraining order on February 12.

The Future of Federal Telework: New Rules, and What Comes Next in the Return to In-person Work

Many probationary workers with less than one year of service were laid off shortly thereafter. According to OPM’s FedScope, about 218,000 federal workers have less than a year on the job, representing about 9% of the government workforce. Not all probationary employees will be automatically fired; those in critical or essential positions may be retained.

Their next logical step is to offer VERA and VSIP packages for positions that are being eliminated. Funds must be approved for this to proceed. RIFs could also be used; they require the government to provide a 60-day advance notice of a layoff.

I believe the administration is targeting at least a 20 percent drop in the onboard full-time equivalent positions, similar to what former President Clinton accomplished during his administration. The difference is that Clinton had 8 years to achieve this, and President Trump has just under 4 years to accomplish the same thing.

The Employee’s Plight

For many federal employees, their anxiety is overwhelming, to say the least. Federal jobs are believed to be among the most secure, and for the most part, they are.

I know how they feel. Many military installations were shuttered or downsized shortly after the Vietnam War ended. I had recently relocated to a federal civil service position at an Air National Guard base in Pittsburgh.

All civilian employees received a notice of a pending RIF shortly after I reported to work; one of the units was being decommissioned. I didn’t look forward to going home to my wife that day and telling her I may lose my job. Our son was only one year old, and we had just relocated from Topeka, Kansas, a thousand miles away after the Forbes AFB closed!

New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs

Summary

Elon Musk is in the daily news cycle for his engineering feats and, most recently, for his USDS Administrator duties. His team has purportedly found numerous issues that question how well the government manages our money. They aren’t the only ones.

The U.S. Government Accounting Office (GAO) reported on January 23, 2025, “Since FY 2003, federal agencies have made $2.8 trillion in improper payments—i.e., payments that shouldn’t have been made or were made in incorrect amounts.” When an Inspector General (IG) finds an agency non-compliant, the agency must report its compliance plans to Congress.

The report suggests that reducing fraud and improper payments is critical to safeguarding federal funds. It estimates that between $233 billion and $521 billion is lost to fraud annually within the federal government! This is the government’s GAO report, not DOGE!

We frequently hear that Elon has entered the building and discovered whatever there is to expose. He may have entered, but his teams are the ones finding inconsistencies. They comprise federal workers, including experts Elon Musk knows and trusts.

The DOGE teams post their findings online at www.DOGE.gov as they discover issues that often require further investigation and highlight their progress. For example, they found over 500 million going overseas for various projects that have since been canceled.

There will be many hiccups along the way as they backtrack on certain issues due to moving too far too fast. For instance, they rehired many probationary employees who shouldn’t have been let go.

Time will tell whether this effort bears fruit. They are even talking about a DOGE dividend, possibly a 20 percent rebate to taxpayers of the total saved! I would prefer they apply all the funds to reduce our debt and lower our taxes.

 

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Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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