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They Served. Now, Inspired by What They Saw, They Sell.

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They Served. Now, Inspired by What They Saw, They Sell.

Over twenty years of battle, American service members abroad appeared throughout the rubble, the destroyed fields and the ripped-up properties and noticed prospects.

One tasted tea for the primary time throughout his deployment; one other was taken by flip-flops usual from fight boots. Feminine troopers received to know girls in Afghanistan and imagined economically empowered lives for them. An Military helicopter pilot got here again sick from publicity to burning plastics and shifted his views on the atmosphere.

Many veterans have struck out on their very own, availing themselves of small enterprise applications to construct corporations impressed by their fight experiences and calibrated to handle social or financial points within the international locations the place they served.

Nick Kesler, a veteran advocate who as soon as ran a nonprofit consulting agency devoted to supporting these types of deployment-inspired companies, stated the veterans behind them “know the true price of instability and battle on the households they intention to assist.”

“These companies create a connection for them between their life in uniform abroad and now their civilian lives again residence,” he stated.

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Under are the tales of 4 such companies.

Whereas rising up in Louisiana, Brandon Friedman had solely tried tea in iced type and thought it was “the grossest factor ever.”

“My concept of tea was British girls with massive hats,” he recalled.

His first true tea sipping was in Iraq with Kurdish fighters sporting AK-47 bandoleers. It was one in every of many eye-opening moments for him throughout deployments to Iraq, Pakistan and Afghanistan.

Exterior of the style, tea ingesting in Iraq represented “stopping and slowing down,” Mr. Friedman stated. “It was a solution to take away your self from on a regular basis life.”

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Again residence in Dallas in 2004, he discovered himself rummaging via halal grocery shops for brown baggage of free tea. Life moved on, with marriage, graduate faculty, a toddler, a job in politics. “I left the battle and left the tea previously.”

In 2016, Mr. Friedman started to analysis the origins of the tea he loved. (The black Ceylon tea he had in Iraq got here from Sri Lanka and different nations.) He quickly started exploring how he would possibly import tea from former battle zones. His tea schooling started in earnest, as he realized in regards to the aroma and mouth really feel of every sort.

Working with a nonprofit and in search of cash on Kickstarter, he and an Military buddy — a former Inexperienced Beret — started the enterprise in 2017 in a 250-square-foot workplace area at the back of a small constructing, importing from Nepal, Colombia, Vietnam and different international locations whose teas will be exhausting to search out in American shops. They now have a 2,000-square-foot facility with a storefront, and ship 45 teas from 9 international locations.

There have been challenges. In Vietnam, for instance, the 300- and 400-year-old wild tea timber that develop within the mountains and forests within the northern provinces of Ha Giang and Yen Bai are troublesome to handle.

Some suppliers “are far more informal about timelines,” he stated, and had been exhausting to press to fulfill vacation gross sales schedules. The largest points come up, nonetheless, when post-conflict nations like Myanmar and Ethiopia “flip again into current-conflict international locations.” On prime of all that, in fact, got here the supply-chain challenges introduced on by the pandemic.

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Promoting tea has turn out to be an extension of his army mission, stated Mr. Friedman, who nonetheless favors the Ceylon tea he first sipped in Iraq. “I stay satisfied that the way in which out of battle is thru folks speaking to one another, and commerce,” he stated. “We name this peace via commerce.”

Emily Miller recollects first deploying with the Military in Afghanistan over a decade in the past, when the U.S. army was lastly realizing how culturally inappropriate it was to have male service members tramping via villages and speaking to girls and youngsters. In 2011, she joined a group tasked with partaking “the opposite 50 p.c of the inhabitants that has been just about largely ignored.”

She ended her two deployments “fairly disillusioned with the battle effort and the way we weren’t making the distinction.” She believed that enterprise may very well be a more practical drive for good. Quickly, Ms. Miller was at Harvard Enterprise Faculty and on a Skype name with a classmate, Kim Jung, and a 3rd good friend, Keith Alaniz. Everybody on the decision was an Military veteran who had cycled via Afghanistan.

Mr. Alaniz instructed his mates about his second tour within the Maidan Wardak Province, and assembly Hajji Joseph, a saffron farmer who was wanting to faucet into the U.S. market.

The three mates began mulling saffron collectively. They questioned if they may join farmers with eating places in america. They talked about beginning a enterprise that would enhance financial situations in rural Afghanistan within the course of.

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A visit in 2014 to Afghanistan, the place the three met with farmers, sealed their plan to create Rumi Spice, Ms. Jung stated. (They later added Carol Wang, a civilian who spoke Dari, to the combo.)

“When the saffron got here into the room,” Ms. Jung recalled of their go to, “it simply stuffed the room with this superb perfume that I assumed any chef would simply swoon over.” However it got here in a cardboard field wrapped in string, presaging years of labor to show U.S. requirements of packaging and meals security to native college students and farmers, and to centralize processing within the area, which had by no means been executed.

Rumi Spice has since educated almost 4,000 native girls to work in its processing and achievement facilities, a few of them receiving a wage for his or her labor for the primary time.

The group was cautious to not align themselves with the People or the Afghan authorities they backed, which proved prescient.

Even after the disintegration of the nation’s authorities final yr, Rumi Spice — now with 12 merchandise in 1,800 shops throughout america — continues to make use of hundreds of ladies and farmers.

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Throughout his deployments in Iraq, Chris Videau couldn’t assist however discover all of the trash. There have been piles of it in every single place, and a black haze of air pollution darkened the skies. The stench of burning plastic hung under.

The army’s burn pits — large rubbish dumps ignited by jet gas — glowed so intensely that Mr. Videau, an Military helicopter pilot, might navigate by their mild.

Mr. Videau was amongst tens of hundreds of people that had been uncovered to burn pits whereas serving in Iraq and Afghanistan. Many have since filed incapacity compensation claims with the Division of Veterans Affairs. Congress has additionally taken up their trigger.

Mr. Videau thought he had left the burning waste, like so many components of his deployment, behind him when he returned to Kansas in 2007. However by 2008, his morning runs started to endure. A health care provider who examined his X-rays instructed him his lungs “had been like a 70-year-old’s” regardless that he was in his early 30s.

“I began desirous about plastic,” Mr. Videau stated, and shortly he and his spouse started to take away it from their residence as a lot as attainable. “That modified my outlook on life.”

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However he nonetheless couldn’t keep away from plastic laundry detergent tubs. In 2017, he started researching whether or not laundry sheets might change commonplace cleaning soap. After some advanced negotiations with an organization that held a patent for such sheets, Mr. Videau and a accomplice began their enterprise. They rapidly bought 25,000 containers of cleaning soap sheets.

Since its first yr, Mr. Videau stated, Sheets Laundry Membership has had over $9 million in whole gross sales and prevented greater than 615,000 plastic containers from being bought.

“The intent wasn’t to create consciousness for burn pits,” he stated. “It was to create a sustainable enterprise for my household. We consider if we do the best factor, the cash will come.”

Mr. Videau’s journey has come full circle, as he now makes a degree to donate his merchandise to troops abroad.

“I’ve been over there,” he stated. “I do know what it’s wish to not get issues within the mail.”

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Matthew Griffin was a 4th-generation army man and West Level graduate thrust into the battle instantly after the Sept. 11, 2001, assaults. “I grew up on ‘Rambo’ and thought the easiest way to serve my nation was to be an Military Ranger,” he stated.

After leaving as a captain in 2006, Mr. Griffin discovered his method into the contracting world, and in 2008 was again in Afghanistan serving to to arrange medical clinics.

In the future he visited a fight boot manufacturing facility in Kabul, the place he was impressed to see staff making a boot that emulated a flip-flop sandal. It appeared that many Afghan fighters, used to unlaced sneakers, had been “shedding tens of hundreds of man-hours a day,” combating the in depth laces on their fight boots.

The manufacturing facility proprietor had invented army sandals “that adhered to their cultural norms,” Mr. Griffin stated. When the proprietor instructed him he had no plans for the manufacturing facility after the battle, Mr. Griffin ventured to show the enterprise into one thing viable and enduring, benefiting the nation the place he as soon as fought.

He referred to as one other Ranger buddy, Donald Lee, and the 2 contemplated the way to get Afghan footwear into the American market. They began making flip-flops within the nation in 2012 and “instantly failed,” he stated. They finally shifted manufacturing to Colombia, benefiting from bilateral commerce agreements with america, and started promoting Fight Flip Flops on-line in 2013.

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“After we first began, our prospects had been 80 p.c army and army households,” Mr. Griffin stated.

Their buyer base grew and diversified as they added scarves, baggage and jewellery made in Afghanistan, Laos and america. After the Taliban regained management over Afghanistan final yr, Fight Flip Flops pivoted its Afghan textile manufacturing facility to make blankets and cold-weather clothes for displaced Afghans struggling via a brutal winter. Some proceeds from gross sales have gone towards funding women’ schooling in Afghanistan, land mine removing in Laos and companies for disabled veterans in Washington State. “It’s been a reasonably wild journey,” Mr. Griffin stated.

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How Poshmark Is Trying to Make Resale Work Again

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How Poshmark Is Trying to Make Resale Work Again

Lauren Eager got into thrifting in high school. It was a way to find cheap, interesting clothes while not contributing to the wastefulness of fast fashion.

In 2015, in her first year of college, she downloaded the app for Poshmark, a kind of Instagram-meets-eBay resale platform. Soon, she was selling as well as buying clothes.

This was the golden age of online reselling. In addition to Poshmark, companies like ThredUp and Depop had sprung up, giving a second life to old clothes. In 2016, Facebook debuted Marketplace. Even Goodwill got into the action, starting a snazzy website.

The platforms tapped into two consumer trends: buying stuff online and the never-gets-old delight of snagging a gently used item for a fraction of the original cost. During the Covid-19 pandemic, as people cleaned out their closets, enthusiasm for reselling intensified. It was so strong that Poshmark decided to go public. On the day of its initial public offering in January 2021, the company’s market value peaked at $7.4 billion, roughly the same as PVH’s, the company that owns Calvin Klein and Tommy Hilfiger, at the time.

Then, the business of old clothes started to fray.

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Using the Poshmark app, Ms. Eager and others said, started to feel like trying to find something in a messy closet. The app was cluttered with features that did not work or that she did not use, and it felt “spammy,” she said, sending too many push notifications.

Many platforms found selling used items hard to scale. Now, online resellers are trying to recalibrate. Last year, ThredUp decided to exit Europe and focus on selling in the United States. Trove, a company that helps brands like Canada Goose and Steve Madden resell their goods, purchased a competitor, Recurate. The RealReal, a luxury consignor, appointed a new chief executive as the company tried to improve profitability.

Poshmark is undergoing perhaps the biggest reinvention. In 2023, Naver, South Korea’s biggest search engine as well as an online marketplace, bought the company in a deal valued at $1.6 billion, less than half its IPO price.

Something of a mash-up of Google and Amazon, Naver is betting it can rebuild Poshmark, which has 130 million active users, with the same technology that made Naver dominant in its own country.

It may also help breathe new life into the resale market. Analysts think the resale fashion market still has room to grow in the United States, with revenue expected to increase 26 percent to $36.3 billion by 2028, according to the retail consultancy firm Coresight Research.

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New legislation in California could help. The law, passed last year, requires brands and retailers that operate in the state and generate at least $1 million to set up a “producer responsibility organization” to collect and then reuse, repair or recycle its products. Resale platforms like ThredUp and Poshmark could be in a position to help brands carry out that mandate.

At the moment, though, Naver’s focus for Poshmark is more basic: Make it a better place to sell and shop. The company has the “operating know-how” to do that, said Philip Lee, a founder of the media outlet The Pickool, which covers both South Korean and U.S. tech companies.

“They’re trying to renovate Poshmark and then expand the market share,” he said.

Poshmark, which is based in Redwood City, Calif., was founded in 2011 by Manish Chandra, an entrepreneur and former tech executive, and three others. In trying to expand, Poshmark faced a problem common to resellers: Capturing the excitement of the secondhand-shopping treasure hunt while not frustrating buyers with an endless scroll. The company knew it needed better search, as well as interactive elements that gave people more reasons to come beyond paying $19 for a J. Crew sweater.

For its part, Naver was looking for ways to push beyond South Korea, where its commerce and search businesses were already mature. The growing online resale market in the United States presented an opportunity, and also gave the company access to the largest consumer market in the world.

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Commerce is a big growth engine for us,” Namsun Kim, Naver’s chief financial officer, said. And the peer-to-peer sector, where users sell to one another, was still in its infancy, with room to expand. But, Mr. Kim added, “it’s a more challenging segment, and that’s why it’s harder for a lot of the larger players to enter.”

There are two common business models for resale: peer-to-peer and consignment. With consignment, a platform collects and redistributes physical goods. Poshmark uses the peer-to-peer model, which relies on scores of people — many of them novices — haggling over prices and then mailing items to one another. This decentralization can be a headache for brands, which like to maintain a certain level of control of their products. And platforms like Poshmark must make buyers comfortable with trusting the sellers on their site.

Before the Naver purchase, it was difficult to push through needed technological changes, said Vanessa Wong, the vice president of product at Poshmark.

“I would always talk to my engineers and ask, ‘What if we do this or do that?’ They’re like, ‘That’s hard. The effort’s really high,’” Ms. Wong said.

Naver’s purchase offered both the investment and the expertise to pull off the changes. Founded in 1999, the company is everywhere in South Korea.

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“We are not just a simple search technology or A.I. service,” said Soo-yeon Choi, the chief executive of Naver, whose headquarters are near Seoul. The company, she said, “alleviates the frustrations of people, which is what is needed to help growth.”

Search built Naver “into the massive power that they are in Korea,” said Mr. Chandra, who stayed on as chief executive after Naver’s purchase. It was the top priority when the company bought Poshmark.

Several new elements for users and sellers have been introduced. With a tool called Posh Lens, users can take a photo of an item and, using Naver’s machine-learning technology, the site populates listings that are the same or similar to the shoe or tank top that they’re searching for. A paid ad feature for sellers called “Promoted Closet,” pushes listings higher on customer feeds.

Poshmark also introduced live shows, some of which are themed, to draw in the TikTok generation and increase engagement. One party auctioned off clothing previously worn by South Korean celebrities, a connection that was made with the help of Naver.

Still, the resale market is going through growing pains and has not quite found its footing since the height of the pandemic. It’s not clear whether the changes taking place at Poshmark will be enough. In May, Mr. Kim, Naver’s finance chief, said in an earnings call that Poshmark’s profitability was improving, but by November, the company was cautioning that growth had slowed because of weakness in the peer-to-peer resale market in North America.

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The company has already done some backpedaling on unpopular decisions.

In October, Poshmark introduced a new fee structure, which increased costs for buyers. Sellers, fearing that higher costs would make consumers bolt, revolted. Within weeks, the company scrapped the new fee structure.

And there are still user headaches: tags and keywords that help users find what they’re looking for can be miscategorized. Sellers sometimes tag their products incorrectly to get more eyeballs on their less popular products. (Hard-to-offload Amazon leggings, for example, may be listed as Free People apparel.)

The company is beta testing changes with its frequent sellers — people like Alex Mahl, who sells thousands of dollars in apparel on the site each year. And within dedicated Facebook groups related to Poshmark, there’s a lot of chatter about the changes that sellers and buyers would still like to see.

“The only way for it to do well is there’s going to be constant changes,” Ms. Mahl said about the tweaks on Poshmark. “If you were just on an app that never changed — one, it would be boring, and two, the opportunity to just do better wouldn’t be there.”

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One recent morning, Ms. Eager, the seller who joined Poshmark back in college, was pleasantly surprised to find that the app had some new features she actually liked. She snapped a photo of her Aerie gray tank top with Posh Lens. Within seconds, the app populated listings of similar products. It was so much better than conjuring up the adjectives needed to describe it.

“Love it,” Ms. Eager exclaimed.

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When receipts of home renovations are lost, is the tax break gone too?

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When receipts of home renovations are lost, is the tax break gone too?

Dear Liz: I have sold my family home recently after almost 50 years. I had done lots of improvements throughout those years. Due to a fire 15 years ago, all the documentation for these improvements has been destroyed. How do I document the improvements for the capital gains tax calculation?

Answer: As you probably know, you can exclude $250,000 of capital gains from the sale of a principal residence as long as you own and live in the home at least two of the previous five years. The exclusion is $500,000 for a couple.

Once upon a time, that meant few homeowners had to worry about capital gains taxes on the sale of their home. But the exclusion amounts haven’t changed since they were created in 1997, even as home values have soared. Qualifying home improvements can be used to increase your tax basis in the home and thus decrease your tax bill, but the IRS probably will demand proof of those changes should you be audited.

You could ask any contractors you used who are still in business if they will provide written verification of the work they performed, suggests Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. You also could check your home’s history with your property tax assessor to see if its assessment was adjusted to reflect any of the improvements.

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At a minimum, prepare a list from memory of the improvements you made, including the year and the approximate cost. If you don’t have pictures of the house reflecting the changes, perhaps friends and relatives might. This won’t be the best evidence, Luscombe concedes, but it might get the IRS to accept at least some increase in your tax basis.

If you’re a widow or widower, there’s another tax break you should know about. At least part of your home would have gotten a step-up in tax basis if you were married and your co-owner spouse died. In most states, the half owned by the deceased spouse would get a new tax basis reflecting the home’s current market value. In community property states such as California, both halves of the house get this step-up. A tax pro can provide more details.

Other homeowners should take note of the importance of keeping good digital records. While documents may not be lost in a fire, they may be misplaced, accidentally discarded or (in the case of receipts) so faded they’re illegible. To make sure documents are available when you need them, consider scanning or taking photographs of your records and keeping multiple copies, such as one set in your computer and another in a secure cloud account.

When an employee is misclassified as contractor

Dear Liz: A parent recently wrote to you about a son who was being paid as a contractor. I know someone else who got a job that did not “take out taxes from his paycheck.” Such workers believe they are pocketing more money, but unfortunately, too many do not know about the nature of withholding. They only learn if they choose to file for their expected refund, but instead discover an exorbitant tax liability that a paycheck-to-paycheck worker cannot pay.

The sad fact is that many of these employers improperly classify their workers, who are truly employees, as independent contractors! And they do this to avoid paying their own portion of Social Security and unemployment taxes and also workers compensation insurance.

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If workers believe that they have been misclassified (the IRS website provides all criteria), they can file IRS Form SS-8 and Form 8919, which will allow them to pay only their allocated half of their Social Security taxes. Hopefully the IRS will then contact these employers to correct their wrong classifications. And finally, it should be a law that, when hired, all true independent contractors should be given a clear form (not fine print on their employment agreements) that informs them of their status and the need to make estimated tax payments.

Answer: A big factor in determining whether a worker is an employee or contractor is control. Who controls what the worker does and how the worker does the job? The more control that’s in the employer’s hands, the more likely the worker is an employee.

However, the IRS notes that there are no hard and fast rules and that “factors which are relevant in one situation may not be relevant in another.”

The form you mentioned, IRS Form SS-8, also can be filed by any employer unsure if a worker is properly classified.

Liz Weston, Certified Financial Planner®, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.

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Inside Elon Musk’s Plan for DOGE to Slash Government Costs

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Inside Elon Musk’s Plan for DOGE to Slash Government Costs

An unpaid group of billionaires, tech executives and some disciples of Peter Thiel, a powerful Republican donor, are preparing to take up unofficial positions in the U.S. government in the name of cost-cutting.

As President-elect Donald J. Trump’s so-called Department of Government Efficiency girds for battle against “wasteful” spending, it is preparing to dispatch individuals with ties to its co-leaders, Elon Musk and Vivek Ramaswamy, to agencies across the federal government.

After Inauguration Day, the group of Silicon Valley-inflected, wide-eyed recruits will be deployed to Washington’s alphabet soup of agencies. The goal is for most major agencies to eventually have two DOGE representatives as they seek to cut costs like Mr. Musk did at X, his social media platform.

This story is based on interviews with roughly a dozen people who have insight into DOGE’s operations. They spoke to The Times on the condition of anonymity because they were not authorized to speak publicly.

On the eve of Mr. Trump’s presidency, the structure of DOGE is still amorphous and closely held. People involved in the operation say that secrecy and avoiding leaks is paramount, and much of its communication is conducted on Signal, the encrypted messaging app.

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Mr. Trump has said the effort would drive “drastic change,” and that the entity would provide outside advice on how to cut wasteful spending. DOGE itself will have no power to cut spending — that authority rests with Congress. Instead, it is expected to provide recommendations for programs and other areas to cut.

But parts of the operation are becoming clear: Many of the executives involved are expecting to do six-month voluntary stints inside the federal government before returning to their high-paying jobs. Mr. Musk has said they will not be paid — a nonstarter for some originally interested tech executives — and have been asked by him to work 80-hour weeks. Some, including possibly Mr. Musk, will be so-called special government employees, a specific category of temporary workers who can only work for the federal government for 130 days or less in a 365-day period.

The representatives will largely be stationed inside federal agencies. After some consideration by top officials, DOGE itself is now unlikely to incorporate as an organized outside entity or nonprofit. Instead, it is likely to exist as more of a brand for an interlinked group of aspirational leaders who are on joint group chats and share a loyalty to Mr. Musk or Mr. Ramaswamy.

“The cynics among us will say, ‘Oh, it’s naïve billionaires stepping into the fray.’ But the other side will say this is a service to the nation that we saw more typically around the founding of the nation,” said Trevor Traina, an entrepreneur who worked in the first Trump administration with associates who have considered joining DOGE.

“The friends I know have huge lives,” Mr. Traina said, “and they’re agreeing to work for free for six months, and leave their families and roll up their sleeves in an attempt to really turn things around. You can view it either way.”

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DOGE leaders have told others that the minority of people not detailed to agencies would be housed within the Executive Office of the President at the U.S. Digital Service, which was created in 2014 by former President Barack Obama to “change our government’s approach to technology.”

DOGE is also expected to have an office in the Office of Management and Budget, and officials have also considered forming a think tank outside the government in the future.

Mr. Musk’s friends have been intimately involved in choosing people who are set to be deployed to various agencies. Those who have conducted interviews for DOGE include the Silicon Valley investors Marc Andreessen, Shaun Maguire, Baris Akis and others who have a personal connection to Mr. Musk. Some who have received the Thiel Fellowship, a prestigious grant funded by Mr. Thiel given to those who promise to skip or drop out of college to become entrepreneurs, are involved with programming and operations for DOGE. Brokering an introduction to Mr. Musk or Mr. Ramaswamy, or their inner circles, has been a key way for leaders to be picked for deployment.

That is how the co-founder of Loom, Vinay Hiremath, said he became involved in DOGE in a rare public statement from someone who worked with the entity. In a post this month on his personal blog, Mr. Hiremath described the work that DOGE employees have been doing before he decided against moving to Washington to join the entity.

“After 8 calls with people who all talked fast and sounded very smart, I was added to a number of Signal groups and immediately put to work,” he wrote. “The next 4 weeks of my life consisted of 100s of calls recruiting the smartest people I’ve ever talked to, working on various projects I’m definitely not able to talk about, and learning how completely dysfunctional the government was. It was a blast.”

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These recruits are assigned to specific agencies where they are thought to have expertise. Some other DOGE enrollees have come to the attention of Mr. Musk and Mr. Ramaswamy through X. In recent weeks, DOGE’s account on X has posted requests to recruit a “very small number” of full-time salaried positions for engineers and back-office functions like human resources.

The DOGE team, including those paid engineers, is largely working out of a glass building in SpaceX’s downtown office located a few blocks from the White House. Some people close to Mr. Ramaswamy and Mr. Musk hope that these DOGE engineers can use artificial intelligence to find cost-cutting opportunities.

The broader effort is being run by two people with starkly different backgrounds: One is Brad Smith, a health care entrepreneur and former top health official in Mr. Trump’s first White House who is close with Jared Kushner, Mr. Trump’s son-in-law. Mr. Smith has effectively been running DOGE during the transition period, with a particular focus on recruiting, especially for the workers who will be embedded at the agencies.

Mr. Smith has been working closely with Steve Davis, a collaborator of Mr. Musk’s for two decades who is widely seen as working as Mr. Musk’s proxy on all things. Mr. Davis has joined Mr. Musk as he calls experts with questions about the federal budget, for instance.

Other people involved include Matt Luby, Mr. Ramaswamy’s chief of staff and childhood friend; Joanna Wischer, a Trump campaign official; and Rachel Riley, a McKinsey partner who works closely with Mr. Smith.

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Mr. Musk’s personal counsel — Chris Gober — and Mr. Ramaswamy’s personal lawyer — Steve Roberts — have been exploring various legal issues regarding the structure of DOGE. James Burnham, a former Justice Department official, is also helping DOGE with legal matters. Bill McGinley, Mr. Trump’s initial pick for White House counsel who was instead named as legal counsel for DOGE, has played a more minimal role.

“DOGE will be a cornerstone of the new administration, helping President Trump deliver his vision of a new golden era,” said James Fishback, the founder of Azoria, an investment firm, and confidant of Mr. Ramaswamy who will be providing outside advice for DOGE.

Despite all this firepower, many budget experts have been deeply skeptical about the effort and its cost-cutting ambitions. Mr. Musk initially said the effort could result in “at least $2 trillion” in cuts from the $6.75 trillion federal budget. But budget experts say that goal would be difficult to achieve without slashing popular programs like Social Security and Medicare, which Mr. Trump has promised not to cut.

Both Mr. Musk and Mr. Ramaswamy have also recast what success might mean. Mr. Ramaswamy emphasized DOGE-led deregulation on X last month, saying that removing regulations could stimulate the economy and that “the success of DOGE can’t be measured through deficit reduction alone.”

And in an interview last week with Mark Penn, the chairman and chief executive of Stagwell, a marketing company, Mr. Musk downplayed the total potential savings.

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“We’ll try for $2 trillion — I think that’s like the best-case outcome,” Mr. Musk said. “You kind of have to have some overage. I think if we try for two trillion, we’ve got a good shot at getting one.”

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