Politics
'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.”
“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.
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.
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.
“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)
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.
“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.
“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.
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.
“Whether it’s to boost his finances or expand his political power,” she said, “it is all up to Elon.”
Politics
Video: Protests Against ICE in Minneapolis Continue Into Friday Night
new video loaded: Protests Against ICE in Minneapolis Continue Into Friday Night
transcript
transcript
Protests Against ICE in Minneapolis Continue Into Friday Night
Hundreds of protesters marched through downtown Minneapolis on Friday night. They stopped at several hotels along the way to blast music, bang drums and play instruments to try to disrupt the sleep of immigration agents who might be staying there. Mayor Jacob Frey of Minneapolis said there were 29 arrests but that it was mostly a “peaceful protest.”
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The vast majority of people have done this right. We are so deeply appreciative of them. But we have seen a few incidents last night. Those incidents are being reviewed, but we wanted to again give the overarching theme of what we’re seeing, which is peaceful protest. And we wanted to say when that doesn’t happen, of course, there are consequences. We are a safe city. We will not counter Donald Trump’s chaos with our own brand of chaos here. We in Minneapolis are going to do this right.
By McKinnon de Kuyper
January 10, 2026
Politics
Trump says Venezuela has begun releasing political prisoners ‘in a BIG WAY’
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President Donald Trump said Saturday that Venezuela has begun releasing political prisoners “in a BIG WAY,” crediting U.S. intervention for the move following last week’s American military operation in the country.
“Venezuela has started the process, in a BIG WAY, of releasing their political prisoners,” Trump wrote on Truth Social. “Thank you! I hope those prisoners will remember how lucky they got that the USA came along and did what had to be done.”
He added a warning directed at those being released: “I HOPE THEY NEVER FORGET! If they do, it will not be good for them.”
The president’s comments come one week after the United States launched Operation Absolute Resolve, a strike on Venezuela and capture of dictator Nicolás Maduro as well as his wife Cilia Flores, transporting them to the United States to face federal drug trafficking charges.
US WARNS AMERICANS TO LEAVE VENEZUELA IMMEDIATELY AS ARMED MILITIAS SET UP ROADBLOCKS
Government supporters in Venezuela rally in Caracas. (AP Photo)
Following the military operation, Trump said the U.S. intends to temporarily oversee Venezuela’s transition of power, asserting American involvement “until such time as a safe, proper and judicious transition” can take place and warning that U.S. forces stand ready to escalate if necessary.
At least 18 political prisoners were reported freed as of Saturday and there is no comprehensive public list of all expected releases, Reuters reported.
Maduro and Flores were transported to New York after their capture to face charges in U.S. federal court. The Pentagon has said that Operation Absolute Resolve involved more than 150 aircraft and months of planning.
TRUMP ADMIN SAYS MADURO CAPTURE REINFORCES ALIEN ENEMIES ACT REMOVALS
A demonstrator holding a Venezuelan flag sprays graffiti during a march in Mexico City on Santurday. (Alfredo Estrella / AFP via Getty Images)
Trump has said the U.S. intends to remain actively involved in Venezuela’s security, political transition and reconstruction of its oil infrastructure.
The White House did not immediately respond to Fox News Digital’s request for comment.
President Donald Trump said Saturday that Venezuela has begun releasing political prisoners. (Mark Schiefelbein/AP Photo)
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Fox News Digital’s Morgan Phillips and Greg Norman-Diamond contributed to this reporting.
Politics
Secretary of Defense Pete Hegseth tours Long Beach rocket factory
Secretary of Defense Pete Hegseth, who is taking a tour of U.S. defense contractors, on Friday visited a Long Beach rocket maker, where he told workers they are key to President Trump’s vision of military supremacy.
Hegseth stopped by a manufacturing plant operated by Rocket Lab, an emerging company that builds satellites and provides small-satellite launch services for commercial and government customers.
Last month, the company was awarded an $805-million military contract, its largest to date, to build satellites for a network being developed for communications and detection of new threats, such as hypersonic missles.
“This company, you right here, are front and center, as part of ensuring that we build an arsenal of freedom that America needs,” Hegseth told several hundred cheering workers. “The future of the battlefield starts right here with dominance of space.”
Founded in 2006 in New Zealand, the company makes a small rocket called Electron — which lay on its side near Hegseth — and is developing a larger one called Neutron. It moved to the U.S. a decade ago and opened its Long Beach headquaters in 2020.
Rocket Lab is among a new wave of companies that have revitalized Southern California’s aerospace and defense industry, which shed hundreds of thousands of jobs in the 1990s after the end of the Cold War. Large defense contractors such as Northrop Grumman and Lockheed Martin moved their headquarters to the East Coast.
Many of the new companies were founded by former employees of SpaceX, which was started by Elon Musk in 2002 and was based in the South Bay before moving to Texas in 2024. However, it retains major operations in Hawthorne.
Hegseth kicked off his tour Monday with a visit to a Newport News, Va., shipyard. The tour is described as “a call to action to revitalize America’s manufacturing might and re-energize the nation’s workforce.”
Long Beach Mayor Rex Richardson, a Democrat who said he was not told of the event, said Hegseth’s visit shows how the city has flourished despite such setbacks as the closure of Boeing’s C-17 Globemaster III transport plant.
“Rocket Lab has really been a superstar in terms of our fast, growing and emerging space economy in Long Beach,” Richardson said. “This emergence of space is really the next stage of almost a century of innovation that’s really taking place here.”
Prior stops in the region included visits to Divergent, an advanced manufacturing company in aerospace and other industries, and Castelion, a hypersonic missile startup founded by former SpaceX employees. Both are based in Torrance.
The tour follows an overhaul of the Department of Defense’s procurement policy Hegseth announced in November. The policy seeks to speed up weapons development and acquisition by first finding capabilities in the commercial market before the government attempts to develop new systems.
Trump also issued an executive order Wednesday that aims to limit shareholder profits of defense contractors that do not meet production and budget goals by restricting stock buybacks and dividends.
Hegseth told the workers that the administration is trying to prod old-line defense contractors to be more innovative and spend more on development — touting Rocket Lab as the kind of company that will succeed, adding it had one of the “coolest factory floors” he had ever seen.
“I just want the best, and I want to ensure that the competition that exists is fair,” he said.
Hegseth’s visit comes as Trump has flexed the nation’s military muscles with the Jan. 3 abduction of Venezuelan President Nicolás Maduro, who is now facing drug trafficking charges to which he has pleaded not guilty.
Hegseth in his speech cited Maduro’s capture as an example of the country’s newfound “deterrence in action.” Though Trump’s allies supported the action, legal experts and other critics have argued that the operation violated international and U.S. law.
Trump this week said he wants to radically boost U.S. military spending to $1.5 trillion in 2027 from $900 billion this year so he can build the “Dream Military.”
Hegseth told the workers it would be a “historic investment” that would ensure the U.S. is never challenged militarily.
Trump also posted on social media this week that executive salaries of defense companies should be capped at $5 million unless they speed up development and production of advanced weapons — in a dig at existing prime contractors.
However, the text of his Wednesday order caps salaries at current levels and ties future executive incentive compensation to delivery and production metrics.
Anduril Industries in Costa Mesa is one of the leading new defense companies in Southern California. The privately held maker of autonomous weapons systems closed a $2.5-billion funding round last year.
Founder Palmer Luckey told Bloomberg News he supported Trump’s moves to limit executive compensation in the defense sector, saying, “I pay myself $100,000 a year.” However, Luckey has a stake in Anduril, last valued by investors at $30.5 billion.
Peter Beck, the founder and chief executive of Rocket Lab, took a base salary of $575,000 in 2024 but with bonus and stock awards his total compensation reached $20.1 million, according to a securities filing. He also has a stake in the company, which has a market capitalization of about $45 billion.
Beck introduced Hegseth saying he was seeking to “reinvigorate the national industrial base and create a leaner, more effective Department of War, one that goes faster and leans on commercial companies just like ours.”
Rocket Lab boasts that its Electron rocket, which first launched in 2017, is the world’s leading small rocket and the second most frequently launched U.S. rocket behind SpaceX.
It has carried payloads for NASA, the U.S. Space Force and the National Reconnaissance Office, aside from commercial customers.
The company employs 2,500 people across facilities in New Zealand, Canada and the U.S., including in Virginia, Colorado and Mississippi.
Rocket Lab shares closed at $84.84 on Friday, up 2%.
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