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Department of Government Efficiency (DOGE) Updates | March 24, 2025

By Neil Hare
March 24, 2025
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As of March 19, 2025, the Department of Government Efficiency (DOGE), led by Elon Musk, has been involved in several significant developments:

Legal Challenges

USAID Dismantling: A federal judge in Maryland ruled that DOGE’s dismantling of the US Agency for International Development (USAID) is likely unconstitutional. The judge highlighted Musk’s significant, yet unofficial, role in orchestrating the dismantling without proper Senate approval, possibly violating the Appointments Clause. Consequently, the court ordered that dismantling activities cease and access to electronic systems be reinstated for affected employees.

Mass Terminations: The Trump administration acknowledged the firing of nearly 25,000 federal employees by DOGE. Following a court order deeming these mass terminations likely illegal, plans are underway to rehire the affected workers. Officials noted significant burdens associated with reinstating these employees and anticipate potential future layoffs if the court’s decision is overturned.

Proposed Stimulus Payments

DOGE Dividend: A forthcoming bill proposes $5,000 DOGE dividend stimulus payments to taxpayers, attributed to cost-saving measures by DOGE totaling an estimated $115 billion. Unlike previous stimulus checks, these dividends would be exclusive to households that are net payers of federal income tax, aiming to minimize inflationary pressure by targeting those with a higher propensity to save. Six US senators have expressed support for the proposal.

Musk Backlash

Tesla Vandalism: Elon Musk expressed shock over nationwide acts of vandalism and arson targeting Tesla vehicles, describing these attacks as “hatred and violence from the left.” He suggested that these incidents are a response to his efforts in reducing government waste and corruption through DOGE. Authorities are treating these attacks as domestic terrorism, and investigations are ongoing.

Leadership Changes

USAID Appointment: A DOGE official is taking a leadership role at USAID after DOGE’s involvement in dismantling the agency. This move has raised concerns about the agency’s future direction and effectiveness.

These developments underscore the complex and contentious nature of DOGE’s initiatives aimed at reducing government inefficiency.

Social Security Administration (SSA) Reforms

Budget Reductions and Workforce Downsizing: DOGE plans to implement an $800 million budget cut for the SSA, accompanied by a 12% reduction in its workforce. While these measures aim to reduce federal spending, critics express concerns that they may pave the way for the privatization of Social Security, potentially affecting beneficiaries.

Enhanced Identity Verification Measures: The SSA will introduce stricter antifraud protocols, requiring more beneficiaries to verify their identities in person at SSA field offices. This initiative seeks to bolster security and prevent fraud but may impose additional burdens on beneficiaries, particularly those with mobility challenges.

Closure of SSA Field Offices: In line with cost-cutting efforts, approximately 47 SSA field offices across various states are slated for closure throughout the year. These closures could further complicate access to services for beneficiaries, especially in regions with limited alternatives.

For more information, please contact:


Neil E. Hare

Partner

neil.hare@dentons.com

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Government Efficiency
Neil Hare

About Neil Hare

Neil Hare is a Partner in Dentons’ Public Policy practice in the Firm’s Washington, DC office. Known to navigate the most complex issues related to law and regulation, Neil’s clients include Fortune 500 companies, major trade associations, US government agencies and international entities and span a range of industries including financial services, biotech, energy and transportation, among others.

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