Tom Krause, a former tech executive with ties to Elon Musk, has been appointed as an assistant secretary at the Treasury Department. He is the only remaining person affiliated with the Department of Government Efficiency who has access to the nation's federal payments system.
Krause's new role involves overseeing the Bureau of the Fiscal Service, a critical office within Treasury that processes over $5 trillion in federal government payments annually. This includes distributing tax returns, Social Security benefits, and payments for other government agencies.
His appointment marks the first time in modern history that a political appointee will be in charge of the Bureau of the Fiscal Service, a position traditionally held by career civil servants.
Recent legal scrutiny has surrounded the payments system as Krause and other DOGE personnel detailed to Treasury have sought control over this government infrastructure. This move has raised concerns as the system has historically been managed by career civil servants rather than political appointees.
Krause replaces David Lebryk, a long-time career official who recently departed after disagreements with Krause and political leadership. The clash reportedly stemmed from attempts to manipulate the BFS system to align with former President Donald Trump's political decisions.
Shortly after Trump's inauguration, Krause urged Lebryk to halt certain USAID payments, a move that was considered unusual in the context of using the payment system.
A federal judge has ruled that Krause and another DOGE-affiliated worker, who has since resigned, are the only individuals associated with Musk's or the White House's initiatives permitted to have 'read-only' access to sensitive payment system records due to privacy concerns.
Litigation surrounding the work of DOGE and its access to sensitive government data is ongoing.
