Musk creates new power base in Washington with takeover of US agencies

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MONITORING (SW) – Elon Musk’s rapid takeover of two U.S. government agencies has enabled the South African-born billionaire to exert unprecedented control over America’s 2.2-million-member federal workforce and begin a dramatic reshaping of government.

The world’s richest man and an ally of President Donald Trump, Musk, 53, has in two weeks created a new center of power in Washington as he executes Trump’s cost-cutting initiative to reduce the size of the U.S. government.

The CEO of Tesla (TSLA.O), opens new tab and founder of SpaceX, Musk has acted swiftly since Trump’s Jan. 20 inauguration, deploying teams of current and former employees of his companies as his agents.

Musk’s actions have fostered a wave of panic among government workers and public protests in Washington and at times have threatened to overshadow Trump’s own agenda.

Trump’s up-and-down trade war with neighboring Canada and Mexico vied this week for space on front pages with Musk’s effort to shut down USAID, the Agency for International Development, America’s main humanitarian aid agency to the world.

Musk’s efforts are part of a massive government restructuring by Trump, who has fired and sidelined hundreds of civil servants in his first steps toward downsizing the bureaucracy and installing more loyalists.

Nonetheless, Musk operates at Trump’s pleasure. The president told reporters on Monday that the billionaire had to seek approval from the White House for any of his actions.

“Elon can’t do and won’t do anything without our approval, and we’ll give him the approval, where appropriate; where not appropriate, we won’t. But he reports in.”

Trump has put Musk in charge of what both men call the Department of Government Efficiency. Despite its name, it is not a department, Musk does not draw a government salary, and DOGE’s creation immediately drew lawsuits from government unions, watchdogs and public interest groups.

On Friday, a Musk team gained access to the U.S. Treasury Department’s payment system, which sends out more than $6 trillion a year on behalf of federal agencies and contains the personal information of millions of Americans who receive Social Security payments, tax refunds and other monies from government.

There has been no immediate comment from either Musk or the White House, Reuters reported.

Trump has repeatedly said that the federal bureaucracy is bloated and inefficient, and needs to be downsized. He also accuses many federal workers of being liberal ideologues out to thwart his agenda.

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