Elon Musk’s DOGE (Department of Government Efficiency) is once again under legal scrutiny. This time, however, it’s through a lawsuit claiming it doesn’t comply with federal transparency rules.
National security advisers argue that DOGE should be bound by the Federal Advisory Committee Act of 1972. This law requires any advisory committee that assists the U.S. government to follow strict transparency rules.
The lawsuit has the potential to upend Musk’s relationship with DOGE supporters and government transparency laws.
FACA controversy
The Federal Advisory Committees Act was created to ensure transparency in advisory groups that advise the government. The plaintiffs, however, assert that DOGE’s participation in government discussions is important enough to be covered by the FACA. If this situation persists, it could change the nature of informal consultative bodies in their relations with government policies.
Elon Musk’s DOGE sued minutes after Trump inauguration
– Guadalupe Correa-Cabrera (@GCorreaCabrera) January 20, 2025
The U.S. General Services Administration says the law requires advisory groups to be “objective and publicly accessible.”
Citing FACA, a coalition of educators, public health specialists, veterans and other groups sued the Department of Government Efficiency on Monday, asking the court to halt DOGE operations until that he complies with the law.
Trump asks Musk to cut $500 billion in federal spending
DOGE, which is not an official government agency, was tasked by Trump with producing ideas on how to cut federal spending, with billionaires Musk and Vivek Ramaswamy saying they planned to save around $500 billion every year.
President-elect Donald Trump and Elon Musk (left). Image: Getty Images.
According to the lawsuit, DOGE appears to have primarily appointed three categories of people to work on its efforts: tech industry executives, those associated with the Trump campaign and his previous administration, and associates of Musk or Ramaswamy.
Image created by DALL-E.
First revealed by Donald Trump last month, the Department of Government Effectiveness appeared to be a subtle reference to Musk’s favorite cryptocurrency, Dogecoin.
Dogecoin market cap currently at $50.8 billion. Chart: TradingView.com
Defenders fight back
DOGE supporters have responded with skepticism, saying that DOGE is not a formal advisory group and therefore does not fall under FACA. This indicates a much deeper debate about the role of Bitcoin projects in political and legal contexts. Musk’s department, its supporters say, remains independent and is not subject to government review or controls.
Transparency issues and legal ramifications
Transparency is essentially at the heart of this trial. The court may set a precedent for other cryptocurrency-based advisory boards if it rules in favor of the plaintiffs. The implications of this lawsuit could potentially extend beyond the Department of Government Efficiency and impact any cryptosystem dealing with the U.S. government.
These legal questions have the potential to become crucial in determining the future relationship between crypto and government.
Featured image from Getty Images, chart from TradingView
