Elon Musk’s new role as head of the new U.S. Department of Government Efficiency (DOGE) has kept him extremely busy recently.
This new department is a U.S. government organization operating without Cabinet-level status. Musk and President Donald Trump have framed DOGE as being created to reduce wasteful government spending, but so far, its attempts to eliminate federal staffers and strip away funding have been met with pushback and lawsuits.
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However, Musk’s new role in the federal government is not limited to DOGE. Recent images of him standing next to Trump in the Oval Office answering questions while Trump looks on have prompted speculation that the Tesla (TSLA) and SpaceX CEO is exerting influence that extends beyond his organization.
According to recent reports, Musk has already started placing people with ties to him and his companies in positions of power at top government offices.
Musk’s political reach is extending beyond the White House
Long before his election in November 2024, many experts speculated that Trump would fill his cabinet with loyalists. However, top tech-related positions at several important federal departments have been filled by people with connections not to Trump but to Musk.
A recent analysis from WIRED reports that over the past few weeks, tech leaders who can be traced to Musk have been installed as chief information officers (CIOs), at the Office of Management and Budget, the Office of Personnel Management, and the Department of Energy.
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This list includes Gregory Barbaccia, who is named Federal CIO and has a position with the Office of Management and Budget (OMB). Previously, he spent ten years at Palantir Technologies (PLTR) , serving most recently as Head of Intelligence & Investigations.
While he hasn’t worked there since 2020, Palantir has recently strengthened its ties to Musk. The multifaceted data analytics company announced that it would be integrating Grok, the AI model made by Musk’s xAi startup, into its AI platform.
Palantir has brought @grok to the enterprise.
— Palantir (@PalantirTech) February 6, 2025
Now officially available in AIP. pic.twitter.com/EBlZ64joqh
Another new federal appointee is Ryan Riedel, who has been named the Department of Energy's CIO. While Riedel keeps a low digital profile, he seems to have worked as a lead network security engineer at SpaceX, though he has not personally issued any statements confirming this.
Greg Hogan has been named CIO of the Office of Personal Management, which is described as “essentially the US government’s HR department.” While he has no direct ties to Musk, he previously held a high position at Comma.AI, an automated driving software company whose former CEO, George Hotz, once publicly antagonized Musk.
This may mean significant changes for the federal government, even as civil servants make it clear to Musk that they don’t intend to abandon their posts.
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“Federal workers may find their roles shifting under CIOs who prioritize private-sector processes over longstanding civil service protection,” speculates attorney Justin Schnitzer. “Thousands of federal employees may find their jobs threatened by policies favoring automation, AI-driven workforce reductions, and privatization.
Schnitzer, a managing partner at FEDELAW, predicts that unless these changes are put through extensive review, they could easily fail, leading to further problems.
This development is raising questions and red flags
Musk’s new position at DOGE and close proximity to Trump has led to many questions regarding potential conflicts of interest. These suspicions seem highly warranted as he is still the CEO of multiple companies that can benefit from lucrative government contracts.
Now, experts are raising concerns about whether these new federal appointees can operate and serve the best interests of the American people without conflicts of interest, particularly given their ties to both Musk and the private sector.
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Neal K. Shah, founder and CEO of CareYaya, spoke to TheStreet about this topic, noting that the appointment of new federal CIOs with ties to Musk is likely to raise doubts about the ability of agencies to function independently and reliably. In his words:
“Appointing people with direct ties to private tech companies to call "the shots" in sensitive government roles raises several significant red flags, including potential conflicts of interest, decision-making that is biased (in either direction), and the very real risk that our government will prioritize the welfare of Musk's businesses over the "public good."
George Carrillo, CEO of the Hispanic Construction Council (HCC), noted that while the promise of increasing government efficiency sounds great in theory, it likely won’t be as easy as Musk has claimed.
“Efficiency alone isn’t enough,” he states. “The government has to prioritize fairness, transparency, and public trust, values that can be compromised when private sector leaders with corporate ties drive change.”
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