The Biggest Controversies of Elon Musk’s DOGE Era: USAID Shutdown, Data Breaches, Lawsuits, and More

Elon Musk’s Department of Government Efficiency (DOGE) promised to revolutionize federal operations with aggressive cuts and tech-driven reforms—but it ignited fierce controversies that continue into 2026. From the dramatic “wood chipper” dismantling of USAID to mishandling of sensitive Social Security data and a barrage of lawsuits, DOGE’s actions drew accusations of overreach, privacy violations, and chaos. Supporters hailed it as necessary accountability; critics decried ideological targeting and risks to public services. Here’s a breakdown of the biggest flashpoints, based on court rulings, whistleblowers, and official statements.

1. The USAID “Wood Chipper” Shutdown and Ongoing Lawsuits

USAID, the U.S. Agency for International Development, became DOGE’s most high-profile target. In early February 2025, Musk boasted on X about “feeding USAID into the wood chipper,” describing a weekend operation that locked employees out of systems, took the website offline, and gutted programs. By July 2025, DOGE had shuttered the agency—closing at least 80% of programs and slashing its workforce from over 10,000 to under 300 in some reports—with remaining functions absorbed by the State Department.

Administration View: DOGE framed it as eliminating waste in a “criminal organization” funneling taxpayer dollars inefficiently.

Critics’ Side: Former USAID employees (proceeding anonymously) sued, alleging unlawful dismantling without proper authority, violating the Appointments Clause and separation of powers. They claimed Musk exercised significant control without Senate confirmation.

Latest Development (February 2026): A federal judge in Maryland (U.S. District Judge Theodore Chuang) ruled Musk, along with former USAID officials Peter Marocco and Jeremy Lewin, must sit for depositions. The judge cited “extraordinary circumstances,” noting Musk’s X posts taking credit and evidence of first-hand knowledge. The ruling rejected Musk’s “apex doctrine” shield for high-ranking officials, calling depositions essential as no alternatives existed. Lawsuits continue, with potential for broader implications on executive overreach.

This remains one of DOGE’s most enduring legal battles, highlighting tensions between rapid reform and constitutional checks.

2. Social Security Data Mishandling and Privacy Risks

DOGE teams embedded in agencies gained broad access to sensitive systems, sparking major privacy concerns—especially at the Social Security Administration (SSA).

Key Allegations: In January 2026 court filings, the Department of Justice admitted DOGE employees shared SSA data without authorization, including to third-party servers outside security protocols. One employee signed an agreement with an unnamed political advocacy group to match Social Security records with voter rolls to “find evidence of voter fraud and overturn election results in certain states.” Whistleblowers, including SSA’s chief data officer, raised alarms about improper access risking hundreds of millions of Americans’ personal info.

Administration Response: Officials said the agency was investigating extent and impact, with some actions deemed “potentially outside SSA policy.” No widespread breach was confirmed, but uncertainty persists.

Broader Impact: Critics warned of identity theft risks for retirees and disabled Americans. Lawmakers like Reps. John Larson and Richard Neal called for criminal probes. Musk and DOGE had amplified fraud claims (e.g., 40% of calls fraudulent), later disputed by data showing exaggeration.

These revelations fueled distrust, with ongoing suits alleging illegal data access.

3. Workforce Cuts, Chaos, and Legal Challenges

DOGE drove massive reductions—around 9% of the federal workforce (200,000–280,000 employees/contractors across agencies), the largest peacetime cut ever. This included mass firings, buyouts, and terminations targeting DEI programs and “wasteful” roles.

Controversies: Sudden cuts caused service disruptions (e.g., Social Security backlogs, IRS enforcement hits projecting revenue losses). Lawsuits from unions (AFGE, NTEU) and groups like ACLU challenged firings as unlawful, violating civil service protections. Some reversals occurred (e.g., nuclear weapons staff recalled quickly after backlash).

Administration Defense: Cuts streamlined bureaucracy and eliminated fraud/ideological programs.

Critics’ View: Actions were hasty, demoralizing, and ideologically driven (aligning with Project 2025 targets), leading to dozens of suits over firings, union bans, and agency gutting.

Musk’s X amplification often escalated backlash, turning policy into public spectacle.

Musk’s Reflection and Lingering Legacy

In a December 2025 interview, Musk called DOGE “somewhat successful” at stopping wasteful funding but admitted shortcomings—he wouldn’t repeat it, citing friction and business impacts. DOGE disbanded early (late 2025), but principles persist via OMB’s Russell Vought and ongoing policies.

For Americans, these controversies underscore DOGE’s double-edged sword: bold disruption delivered some accountability but at the cost of chaos, privacy fears, and legal fights. As depositions loom and suits advance, the era’s full fallout is still unfolding

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