Elon Musk’s recent shake-up of federal agencies sparked protests from federal employees, while the Office of Personnel Management (OPM) quietly issued a memo supporting the reorganization of the Department of Government Efficiency (DOGE).
Dated February 4, the memo suggests reclassifying chief information officers (CIOs) across the government from career positions to political appointees. The aim is for each agency to request the reclassification of its CIO role from “career reserved” to “general” by February 14.
According to sources familiar with the situation, the newly appointed CIOs will collaborate closely with DOGE. This marks the most detailed explanation yet of DOGE’s role within the federal government since a January 20 executive order. Despite its significance, mainstream media has largely ignored these developments, often relying on career officials who describe DOGE’s actions as beyond the scope of government.
Democrats like New York Rep. Alexandria Ocasio-Cortez have attempted to frame this reorganization as a “coup.” However, the OPM memo reveals that DOGE is striving to integrate its operations within the federal structure. The memo states, “It is a focus of President Trump’s administration to improve the government’s digital policy to make government more responsive, transparent, efficient, and accessible to the public, and to make using and understanding government programs easier.”
Unlike many large institutions, the federal government lacks a centralized IT department, with responsibilities scattered across various agencies. This decentralization results in billions spent on contractors and diverse AI technologies. Musk’s intervention could potentially reshape this $163 billion industry, consolidating IT efforts for greater efficiency.
DOGE is essentially a revamped version of the U.S. Digital Service, initially established to develop healthcare exchanges under the Affordable Care Act. How DOGE’s office in the Eisenhower Executive Office Building will work with CIOs across the government remains uncertain. Recently, a Washington Post report revealed that Edward Coristine, a 19-year-old DOGE team member, has been assigned to the State Department’s Bureau of Diplomatic Technology, which provides IT services.
The memo indicates that DOGE-aligned CIOs will assume significant roles in shaping public policy regarding technology. Their priorities include improving government procurement policies and privacy, while diversity, equity, and inclusion (DEI) initiatives are deprioritized. “Poor technology-procurement policies can endanger property and privacy rights,” the memo asserts, emphasizing the need for better security policies.
The Biden administration laid some groundwork for these changes, with previous OPM memos broadening appointees’ authority to seek technical talent from outside the government. A 2018 memo under President Trump highlighted “severe shortages of candidates” for STEM and cybersecurity roles, and a September 2024 memo noted persistent talent shortages in high-tech sectors.
Reclassifying certain CIO positions from career roles could help alleviate these shortages by expanding the candidate pool. This move aligns with public statements by Musk and former DOGE co-lead Vivek Ramaswamy, who advocate for enhancing the government’s tech infrastructure. They stress the importance of examining the vendors the U.S. government engages with, as current systems lack inter-agency communication.
Musk’s website biography describes him as “White House Tech support,” and he expressed his desire to serve as a “Volunteer IT Consultant.” He tweeted, “We can’t make government efficient & fix the deficit if the computers don’t work,” highlighting inefficiencies within the government’s IT landscape.
Ramaswamy echoed these sentiments, noting, “The federal government is the world’s largest IT customer… In theory, this *should* give us great buying power to negotiate good deals for taxpayers, but of course that’s not what happens.” He pointed out that government-wide licenses could significantly reduce costs if the federal government were serious about cost-cutting.
Despite the attention on DOGE, little discussion has occurred regarding the federal government’s existing data and records management methods. In 2024, the top five IT contractors collectively earned $45 billion, according to Washington Technology. Musk’s SpaceX ranks as the 39th largest federal technology contractor, securing approximately $1 billion in contracts.
Musk’s contracts involve delivering Starlink satellite internet services to national parks and the State Department, as well as providing a satellite network called Starshield to the U.S. Space Force. While Musk’s potential conflicts draw attention, all top five government IT contractors have former government officials or members of Congress on their boards.
These contractors employ various AI technologies, many of which are not open source, across their federal contracts. DOGE and Musk faced a setback when District Judge Paul Engelmayer temporarily halted DOGE’s work with U.S. Treasury data due to cybersecurity concerns. The lawsuit was filed by New York Attorney General Letitia James and 18 other state attorneys general.
A recent Washington Post story reported that Booz Allen Hamilton, a major government contractor, was also involved in these developments. The ongoing legal challenges highlight the complexities of modernizing government technology and ensuring cybersecurity. As these efforts unfold, the implications for federal IT infrastructure remain a topic of significant interest.
