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A Day of Trump-Musk Cost-Cutting Overhauls Federal Government
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By Associated Press
Published 10 hours ago on
March 9, 2025

President Trump and Elon Musk's aggressive cost-cutting measures are causing widespread disruption across federal agencies. (AP/Ben Curtis)

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WASHINGTON — A series of decisions revealed Friday provided a glimpse of the turmoil engulfing federal agencies since President Donald Trump and Elon Musk launched their campaign of disruption, upending how government functions in ways big and small.

Some changes appeared designed to increase political control over agencies that have historically operated with some degree of autonomy, such as requiring Environmental Protection Agency officials to seek approval from the Department of Government Efficiency for any contracts exceeding $50,000.

Other directives increased burdens on federal workers, who have already endured insults, layoffs and threats from the president and other top officials. For example, government credit cards issued to civilian employees at the Pentagon were altered to have a $1 limit, choking off their ability to travel for work.

The Transportation Security Administration became another target. The administration canceled a collective bargaining agreement with 47,000 workers who screen travelers and luggage at airports around the country, eliminating union protections in a possible prelude to layoffs or privatization.

The cascading developments are only a fraction of the upheaval that’s taken place since Trump took office, but they still reshaped how hundreds of thousands of public servants do their jobs, with potentially enduring consequences. The ongoing shakeup is much more intense than the typical whiplash that Washington endures when one administration gives way to another, raising fundamental questions about how government will function under a president who has viewed civil servants as an obstacle to his agenda.

The White House has wrestled with political blowback over Musk’s role and legal challenges that have tried to block or slow down his work. Republicans who are facing growing pressure in contentious town halls have started to speak up.

“I will fully admit, I think Elon Musk has tweeted first and thought second sometimes,” said Rep. Bill Huizenga, R-Mich., during a virtual meeting with constituents on Friday. “He has plunged ahead without necessarily knowing and understanding what he legally has to do or what he is going to be doing.”

Mistakes Are Being Made

The overhaul of the federal government is happening at lightning speed, reflecting years of preparation by Trump’s allies and the president’s decision to grant Musk sweeping influence over his administration. Musk, a billionaire entrepreneur with no previous experience in public service, has shown no interest in slowing down despite admitting that he’ll make mistakes in his crusade to slash spending and downsize the workforce.

The government is facing even more dramatic changes in the coming weeks and months. Trump has directed agencies to prepare plans for widespread layoffs, known as reductions in force, that will likely require more limited operations at agencies that provide critical services.

The Department of Veterans Affairs could shed 80,000 employees, while the Internal Revenue Service and the Social Security Administration are considering plans that would cut their workforces in half.

Trump has vowed not to reduce Social Security benefits, but Democrats argue that layoffs would make it harder to deliver payments to 72.5 million people, including retirees and children.

There are also concerns that politics could interfere with Social Security. Trump has feuded over transgender issues with Maine Democratic Gov. Janet Mills, and his administration recently said children born in the state would no longer have a Social Security number assigned at birth. Instead, parents would have to apply for one at a local office.

Leland Dudek, the acting commissioner of Social Security, rescinded the order on Friday.

“In retrospect, I realize that ending these contracts created an undue burden on the people of Maine, which was not the intent,” he said in a statement. Dudek added that “as a leader, I will admit my mistakes and make them right.”

A Startup Mindset Takes Hold

More than a month after Trump took office, there’s still confusion about Musk’s authority. In public statements and legal filings, administration officials have insisted that Musk does not actually run DOGE and has no direct authority over budgets.

But Trump has contradicted both statements. He said Tuesday that DOGE is “headed by Elon Musk” in a prime-time speech to a joint session of Congress, and he said Thursday that “Elon will do the cutting” if agency leaders don’t reduce their spending.

Their approach has energized people like David Sacks, a venture capitalist serving as a Trump adviser on cryptocurrency and artificial intelligence, who praised the administration as moving “faster than any startup that I’ve been part of.”

Trump denied reports of friction between Musk and Cabinet officials, particularly Secretary of State Marco Rubio, during a meeting Thursday.

“Elon gets along great with Marco,” the president said. The State Department had no immediate comment.

Norm Eisen, executive chair of State Democracy Defenders Fund, an organization that has been suing the Trump administration, said the president “made clear that Musk and DOGE have been calling the shots.”

Musk serves as a presidential adviser, not a Senate-confirmed official, which Eisen argued makes his role unconstitutional. He said Trump’s comments are “an admission that the vast chaos that Musk and DOGE have wrought without proper approval and documentation is illegal — and so must be completely unwound.”

Trump Is Using Executive Orders to Reshape Government

Many of the changes sweeping through Washington were ignited by Trump’s executive orders. One order issued last week said agencies must develop new systems for distributing and justifying payments so they can be monitored by DOGE representatives.

The EPA distributed guidance intended to ensure compliance.

“Any assistance agreement, contract or interagency agreement transaction (valued at) $50,000 or greater must receive approval from an EPA DOGE team member,” said the documents obtained by The Associated Press.

Sen. Sheldon Whitehouse of Rhode Island, the top Democrat on the Senate Environment and Public Works Committee, said the involvement of Musk’s “unvetted, inexperienced team raises serious concerns about improper external influence on specialized agency decision-making.”

Republicans have shied away from holding town hall meetings with constituents after critics started using them to vent their frustration.

Some protesters gathered outside Huizenga’s district office in Holland, Michigan, calling on him to answer questions in person.

“I would like to ask him why he thinks that someone like Musk can go in and simply blow up agencies without seemingly even knowing what they’re doing,” said Linda Visscher, a Holland resident.

She said increasing the efficiency of government was a good idea, but she doesn’t agree with “just taking the blowtorch to it.”

____

Associated Press reporters Lolita Baldor, Matthew Daly, Fatima Hussein and Matthew Lee in Washington; Joey Cappelletti in Holland, Michigan; and Patrick Whittle in Portland, Maine, contributed to this report.

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