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'Shadow government'? Billionaire Elon Musk's grip on U.S. government spending raises questions

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'Shadow government'? Billionaire Elon Musk's grip on U.S. government spending raises questions

The world’s richest man, acting as an unelected “efficiency” consultant to President Trump, has in recent days managed the rare feat of overshadowing his boss — presuming to storm into and begin closing out government agencies at will.

After two weeks of chaos caused by Trump’s own unilateral executive orders to radically alter the federal government, it was suddenly Elon Musk whose name was everywhere in Washington this week, as he and his deputies in the new Department of Government Efficiency slashed at the federal bureaucracy in a purported effort to cut costs.

Disregarding established security protocols while downplaying the budgetary authority of Congress, they accessed sensitive Treasury Department systems full of Americans’ most personal data and declared that the U.S. Agency for International Development — the agency long in charge of distributing American foreign aid to places such as Gaza, Ukraine and sub-Saharan Africa — was corrupt and being shuttered.

They suggested anyone who stood in their way, including career civil servants with actual authority to safeguard Treasury and USAID data, were the real rogue agents. And they and their allies dismissed rising outrage among Democrats as the whining resistance of political sore losers.

In one instance, Rep. Jamie Raskin (D-Md.), the ranking Democrat on the House Judiciary Committee, tore into Musk for overreaching, saying “we don’t have a fourth branch of government called Elon Musk.”

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“Elon Musk, you didn’t create USAID. The United States Congress did for the American people,” Raskin said. “And just like Elon Musk did not create USAID, he doesn’t have the power to destroy it.”

Stephen Miller, Trump’s deputy chief of staff for policy and homeland security, shot back on the social media platform X, which Musk owns.

“Democrat politicians hate democracy,” Miller wrote. “They don’t believe voters have the right to elect a president to drain the permanent unelected DC swamp.”

The showdown continued a roiling debate over U.S. governance that defined the 2024 race between Trump and former Vice President Kamala Harris and has continued to shape Trump’s presidency in its first days.

The battle is between legacy government and the legal checks and balances that have held it together for generations, a system Democrats are vociferously trying to defend — including in court — and Trump’s new order, aimed at tearing down the status quo with the fast-paced, slash-and-burn tactics of venture capital and big tech, where breaking things in the name of innovation is celebrated.

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Trump and his supporters believe they have a sweeping new mandate to drive change, thanks to a slim win for Trump and tiny majorities for Republicans in the House and Senate, powered in part by nearly $300 million in campaign contributions from Musk. They say Trump chose Musk to ferret out fraud and waste, and that Musk as a result has all the authority he needs to proceed unimpeded.

Trump, never one to appreciate being upstaged, has so far remained unmoved by the growing alarm over Musk usurping undue power — though those concerns have clearly reached him. In recent remarks, Trump has said he approves of Musk’s work so far, but also that he remains in charge as president and won’t always agree with the tech billionaire’s playbook.

“Sometimes we won’t agree with it, and we’ll not go where he wants to go,” Trump said. “But I think he’s doing a great job. He’s a smart guy.”

Trump said he won’t allow Musk to work in areas where he has a conflict, but hasn’t seen anything of concern yet.

In addition to being the primary owner of X, Musk is the chief executive of SpaceX and Tesla. The companies hold dozens of contracts with the federal government worth billions of dollars.

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Democrats say it is impossible to untangle Musk from his conflicts, particularly if he is given sweeping spending authority across all of federal government. They say no president has the legal right to disregard budget decisions by Congress or the basic structure of government as outlined in the Constitution and other law — much less an unelected and clearly conflicted subordinate who has not been confirmed to any real government position by the Senate.

And they warned that a system that hands government control over to rich campaign donors is not a democracy at all, but an oligarchy.

“Before our very eyes, an unelected, shadow government is conducting a hostile takeover of the federal government,” Senate Minority Leader Charles E. Schumer (D-N.Y.) said during a news conference Monday.

Schumer said DOGE employees doing Musk’s bidding had on Friday “forcefully gained access” to the Treasury Department’s payment system and “the most sensitive information of virtually every U.S. citizen,” including Social Security data, tax information and Medicare and Medicaid benefit data.

Schumer took a similar message to X, attacking DOGE there as a made-up entity with zero legitimate power.

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“DOGE has no authority to make spending decisions. DOGE has no authority to shut programs down or to ignore federal law,” Schumer wrote. “DOGE’s conduct cannot be allowed to stand. Congress must take action to restore the rule of law.”

Musk, reportedly operating as a “special government employee” with limited responsibilities, called Schumer’s response “hysterical” and proof that DOGE “is doing work that really matters.”

“This is the one shot the American people have to defeat BUREAUcracy, rule of the bureaucrats, and restore DEMOcracy, rule of the people,” Musk wrote on X. “We’re never going to get another chance like this. It’s now or never. Your support is crucial to the success of the revolution of the people.”

Elon Musk reacts as Donald Trump speaks at a Jan. 19 rally in Washington.

(Alex Brandon / Associated Press)

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How the American people feel about Musk’s latest actions is not entirely clear. But polling in recent months has showed Americans are skeptical of his role in government, and of him personally.

A Quinnipiac poll conducted toward the end of Trump’s first week in office found that 53% of registered voters disapproved of Musk playing a prominent role in the administration, compared to 39% who approved.

An AP-NORC poll conducted early last month, before Trump took office, found that two-thirds of U.S. adults said corruption and inefficiency were “major problems” in the federal government, and about 6 in 10 said the same about government regulations and bureaucracy. However, only a third of respondents had a favorable view of Musk, and about 6 in 10 said the president relying on billionaires for advice on government policy would be a “very” or “somewhat” bad thing.

Late Monday, several unions representing federal employees sued the Treasury Department for sharing what they said was “confidential data” with Musk’s team — alleging new Treasury Secretary Scott Bessent had abdicated his responsibility to protect the data by granting Musk access and by taking “punitive measures” against Treasury employees who had tried to block it.

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“People who must share information with the federal government should not be forced to share information with Elon Musk or his ‘DOGE,’” the lawsuit read. “And federal law says they do not have to.”

Street protests have also erupted over Musk’s moves, with one titled “Nobody elected Elon” scheduled Tuesday.

Bessent had reportedly spent part of Monday behind closed doors with Republican lawmakers, reassuring them that Musk’s team did not have control over a Treasury system that controls trillions of dollars in federal funding.

Katie Miller, a DOGE spokesperson, has also disputed claims that DOGE representatives accessed classified information without the proper security clearances. She and other Trump officials have backed DOGE’s work in part by alleging that both the Treasury and USAID ran afoul of Trump’s “America First” agenda.

Katie Miller’s husband, Stephen Miller, offered a particularly stunning assessment of USAID, an agency established by President Kennedy in 1961 and enshrined in law to distribute billions of dollars in foreign assistance.

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“Bureaucrats at USAID cannot interfere in the affairs of foreign countries to prop up regimes, to thwart America’s interests, to facilitate mass illegal immigration, nor to facilitate diversity, equity and inclusion policies, which violate federal civil rights law,” Stephen Miller said on Fox News.

Musk has said USAID is “an arm of the radical-left globalists” and responsible for “insane spending.” To Trump’s decision to put Secretary of State Marco Rubio in charge of USAID amid a review of spending, Musk replied: “Cool.”

USAID’s budget, while massive in terms of overseas spending power, amounts to less than 1% of the current federal budget. And its programs have been lauded on a bipartisan basis for years for providing a vital lifeline to people around the world, including for HIV medications and other healthcare aimed at stemming infectious diseases.

Dr. Atul Gawande, USAID’s head of global health under the Biden administration, has called Musk’s claims about the agency a “willful distortion,” and said the “impending shutdown of USAID is unconstitutional and reveals complete ignorance or indifference to how vital its work — in global health, conflicts, disasters and beyond — is to Americans and humanity.”

Democrats have also strongly defended USAID.

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Sen. Chris Murphy (D-Conn.) said on CNN that USAID supports an array of international initiatives, not just in support of vulnerable populations but American foreign policy priorities — from “countering Chinese influence inside Africa” to “fighting back against Hezbollah in Lebanon.”

International aid organizations sounded alarm over potential disruptions to humanitarian aid in Gaza, which has been decimated by Israel in its ongoing war against Hamas, while others worried over cuts to Ukraine, which is fighting off a Russian invasion.

Sen. Brian Schatz (D-Hawaii) said Musk and his team’s foray into federal agencies was “an illegal act” that the Trump administration was trying to justify through sheer brazenness.

“They are depending on some sort of sense of swagger and inevitability to storm into buildings, and take over the servers, and to run the databases, and to relieve people of their duties,” he said, “like this is some hostile takeover of a tech company.”

Sen. Elizabeth Warren (D-Mass.) said Americans should be extremely concerned about Musk gaining access to government data without any legitimate authority or clear limits on how the information may be used.

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“Whether it’s to boost his finances or expand his political power,” she said, “it is all up to Elon.”

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House Republicans push Johnson to go to war with Senate over SAVE Act

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House Republicans push Johnson to go to war with Senate over SAVE Act

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Several House Republicans are pushing Speaker Mike Johnson, R-La., to go to war with the Senate GOP over an election security bill that has little chance of passing the upper chamber under current circumstances.

House GOP leaders convened a lawmaker-only call on Sunday in the wake of a massive military operation against Iran launched by the U.S. and Israel.

After leaders briefed House Republicans on how the chamber would respond to the ongoing conflict — including a vote on ending Democrats’ weeks-long government shutdown targeting the Department of Homeland Security (DHS) — Fox News Digital was told that several lawmakers raised concerns about the Senate not yet taking up the Safeguarding American Voter Eligiblity (SAVE America) Act. Among other provisions, the act would require voters in federal elections to produce valid ID and proof of citizenship.

Rep. Derrick Van Orden, R-Wis., was among those pushing the House to reject any bills from the Senate until the measure was taken up, telling Johnson according to multiple sources on the call, “If we don’t get this done, or at least show that we’ve got some backbone, we’re done. The midterms are over.”

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Speaker of the House Mike Johnson, R-La., pauses for questions from reporters as he arrives for an early closed-door Republican Conference meeting at the Capitol in Washington, Tuesday, Feb. 3, 2026. (J. Scott Applewhite/AP Photo)

At least three other House Republicans shared similar concerns. Sources on the call said Rep. Brandon Gill, R-Texas, argued that GOP voters were “not enthused” heading into November and that “the single biggest thing” to turn that around would be forcing the Senate to pass the SAVE America Act.

The SAVE America Act passed the House last month with support from all Republicans and just one Democrat, Rep. Henry Cuellar, D-Texas.

JEFFRIES ACCUSES REPUBLICANS OF ‘VOTER SUPPRESSION’ OVER BILL REQUIRING VOTER ID, PROOF OF CITIZENSHIP

Republicans have pointed out on multiple occasions that voter ID measures have bipartisan support across multiple public polls and surveys. But Democrats have dismissed the legislation as an attempt at voter suppression ahead of the 2026 midterms.

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 Senate Majority Leader John Thune speaks at a press conference with other members of Senate Republican leadership following a policy luncheon in Washington, D.C. on Oct. 28, 2025. (Nathan Posner/Anadolu via Getty Images)

The legislation would require 60 votes in the Senate to break filibuster, which it’s likely not to get given Democrats’ near-uniform opposition. But House Republicans have pressured Senate Majority Leader John Thune to use a mechanism known as a standing filibuster to circumvent that — which Thune has signaled opposition to, given the vast amount of time it would take up in the Senate and potential unintended consequences in the amendment process.

It also comes as Congress grapples with the fallout from the strikes on Iran and the need to ensure safety for the U.S. domestically and for service members abroad, both of which will require close coordination between the two chambers.

Johnson told Republicans several times on the Sunday call that he was privately pressuring Thune on the bill but was wary of creating a public rift with his fellow GOP leader, sources said.

HARDLINE CONSERVATIVES DOUBLE DOWN TO SAVE THE SAVE ACT

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“If we’re going to go to war against our own party in the Senate, there may be implications to that,” Johnson said at one point, according to people on the call. “So we want to be thoughtful and careful.”

Sen. Mike Lee, R-Utah, talks with a guest during a “Only Citizens Vote Bus Tour” rally in Upper Senate Park to urge Congress to pass the Safeguard American Voter Eligibility (SAVE) Act on Wednesday, Sept. 10, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

At another point in the call, sources said Rep. Andrew Clyde, R-Ga., suggested pairing a coming vote on DHS funding with the SAVE America Act in order to force the Senate to take it up.

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But both Johnson and House Homeland Security Committee Chairman Andrew Garbarino, R-N.Y., were hesitant about such a move given the enhanced threat environment in the wake of the U.S. operation in Iran.

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Both spoke out in favor of the SAVE America Act, people told Fox News Digital, but warned the current situation merited leaving the DHS funding bill on its own in a bid to end the partial shutdown, so the department could fully function as a national security shield.

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Sen Lee dares Democrats to revive talking filibuster over SAVE Act, slamming criticism as ‘paranoid fantasy'
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Trump justifies Iran attack as Congress and others raise objections

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Trump justifies Iran attack as Congress and others raise objections

According to President Trump, the United States attacked Iran because the Islamic Republic posed “imminent threats” to the U.S. and its allies, including through its use of terrorist proxies and continued pursuit of nuclear weapons.

“Its menacing activities directly endanger the United States, our troops, our bases overseas and our allies throughout the world,” he said in a recorded statement Saturday.

According to leading Democrats in Congress, Trump’s justification is questionable, especially given his claims of having “completely obliterated” Iran’s nuclear capabilities in separate U.S. bombings last June.

“Everything I have heard from the administration before and after these strikes on Iran confirms this is a war of choice with no strategic endgame,” said Rep. Jim Himes (D-Conn.), ranking Democrat on the House Intelligence Committee and part of a small group of congressional leaders — the Gang of Eight — who were briefed on the operation by Secretary of State Marco Rubio.

That divide is bound to remain an issue politically heading into this year’s midterm elections, and could be a liability for Republicans — especially considering that some in the “America First” wing of the MAGA base were raising their own objections, citing Trump’s 2024 campaign pledges to extricate the U.S. from foreign wars, not start new ones.

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The debate echoed a similar if less immediate one around President George W. Bush’s decision to go to war in Iraq following the Sept. 11, 2001, attacks, also based on claims that “weapons of mass destruction” posed an immediate threat. Those claims were later disproved by multiple findings that Iraq had no such arsenal, fueling recriminations from both political parties for years.

The latest divide also intensified unease over Congress ceding its wartime powers to the White House, which for years has assumed sweeping authority to attack foreign adversaries without direct congressional input in the name of addressing terrorism or preventing immediate harm to the nation or its troops.

Even prior to the weekend bombings, Democrats including Sen. Adam Schiff of California were pushing Congress to pass a resolution barring the Trump administration from attacking Iran without explicit congressional authorization.

“President Trump must come to Congress before using military force unless absolutely necessary to defend the United States from an imminent attack,” Sen. Tim Kaine (D-Va.), a member of the armed services and foreign relations committees, said in a statement Thursday.

In justifying the daylight strikes that killed Supreme Leader Ayatollah Ali Khamenei just two days later, Trump accused the Iranian government of having “waged an unending campaign of bloodshed and mass murder” for nearly half a century — including through attacks on U.S. military assets and commercial shipping vessels abroad — and of having “armed, trained and funded terrorist militias” in multiple countries, including Hezbollah and Hamas.

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Trump said that after the U.S. bombed Iran last summer, it had warned Tehran “never to resume” its pursuit of nuclear weapons. “Instead, they attempted to rebuild their nuclear program and to continue developing long-range missiles that can now threaten our very good friends and allies in Europe, our troops stationed overseas, and could soon reach the American homeland,” he said.

Other Republican leaders largely backed the president.

“The United States did not start this conflict, but we will finish it. If you kill or threaten Americans anywhere in the world — as Iran has — then we will hunt you down, and we will kill you,” said Defense Secretary Pete Hegseth.

“Every president has talked about the threat posed by the Iranian regime. President Trump is the one with the courage to take bold, decisive action,” said Atty. Gen. Pam Bondi.

While Iran’s coordination with and sponsorship of groups such as Hezbollah and Hamas are well known, Trump’s claims about Tehran’s ongoing development of nuclear weapons systems are less established — and the administration has provided little evidence to back them up.

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Democrats seized on that lack of fresh intelligence in their responses to the attacks, contrasting Trump’s latest statements about imminent threats with his assertion after last year’s bombings that the U.S. had all but eliminated Iran’s nuclear aspirations.

“Let’s be clear: The Iranian regime is horrible. But I have seen no imminent threat to the United States that would justify putting American troops in harm’s way,” said Sen. Mark Warner (D-Va.), vice chairman of the Senate Intelligence Committee and a member of the Gang of Eight. “What is the motivation here? Is it Iran’s nuclear program? Their missiles? Regime change?”

Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement that the Trump administration “has not provided Congress and the American people with critical details about the scope and immediacy of the threat,” and must do so.

House Minority Leader Hakeem Jeffries (D-N.Y.) said the Trump administration needs congressional authority to wage such attacks barring “exigent circumstances,” and didn’t have it.

“The Trump administration must explain itself to the American people and Congress immediately, provide an ironclad justification for this act of war, clearly define the national security objective and articulate a plan to avoid another costly, prolonged military quagmire in the Middle East,” he said.

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After the U.S. military announced Sunday that three U.S. service personnel were killed and five others seriously wounded in the attacks, the demands for a clearer justification and new constraints on Trump only increased.

Rep. Ro Khanna (D-Fremont) said Sunday he is optimistic that Democrats will be unified in trying to pass the war powers resolution, and also that some Republicans will join them, given that the strikes have been unpopular among a portion of the MAGA base.

Rep. Thomas Massie (R-Ky.), who partnered with Khanna to force the release of the Jeffrey Epstein files, has said he will work with him again to push a congressional vote on war with Iran, which he said was “not ‘America First.’”

Benjamin Radd, a political scientist and senior fellow at the UCLA Burkle Center for International Relations, said that whether or not Iran represented an “imminent” threat to the U.S. depends not just on its nuclear capabilities, but on its broader desire and ability to inflict pain on the U.S. and its allies — as was made clear to both the U.S. and Israel after the Hamas attacks on Israel on Oct. 7, 2023, which Iran praised.

“If you are Israel or the United States, that’s imminent,” he said.

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What happens next, Radd said, will largely depend on whether remaining Iranian leaders stick to Khamenei’s hard-line policies, or decide to negotiate anew with the U.S. He expects they might do the latter, because “it’s a fundamentalist regime, it’s not a suicidal regime,” and it’s now clear that the U.S. and Israel have the capabilities to take out Iranian leaders, Iran has little ability to defend itself, and China and Russia are not rushing to its aid.

How the strikes are viewed moving forward may also depend on what those leaders decide to do next, said Kevan Harris, an associate professor of sociology who teaches courses on Iran and Middle East politics at the UCLA International Institute.

If the conflict remains relatively contained, it could become a political win for Trump, with questions about the justification falling away. But if it spirals out of control, such questions are likely to only grow, as occurred in Iraq when things started to deteriorate there, he said.

Israel and the U.S. are betting that the conflict will remain manageable, which could turn out to be true, Harris said, but “the problem with war is you never really know what might happen.”

On Sunday, Iran launched retaliatory attacks on Israel and the wider Gulf region. Trump said the campaign against Iran continued “unabated,” though he may be willing to negotiate with the nation’s new leaders. It was unclear when Congress might take up the war powers measure.

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Video: Trump’s War of Choice With Iran

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Video: Trump’s War of Choice With Iran

new video loaded: Trump’s War of Choice With Iran

Our national security correspondent David E. Sanger examines the war of choice that President Trump has initiated with Iran.

By David E. Sanger, Gilad Thaler, Thomas Vollkommer and Laura Salaberry

March 1, 2026

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