• Skip to primary navigation
  • Skip to main content

HRMorning

  • FREE RESOURCES
  • PREMIUM CONTENT
  • HR DEEP DIVES
  • PODCASTS
    • VOICES OF HR
    • WOMEN’S LEADERSHIP TODAY
  • LOGIN
  • GET STARTED
  • Employment Law
  • Benefits
  • Recruiting
  • HR Technology
  • Payroll
  • Management
  • Women’s Leadership
  • More
    • Talent Management
    • Performance Management
    • Leadership & Strategy
    • Compensation
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans
PAY Logo
  • Payroll
  • Policies & Procedures

DOGE’s Sweeping Changes of Federal Agencies: Here’s the Latest

Jennifer Weiss
By: Jennifer Weiss
Read it on Beacon
  • Share on

About the Author

Jennifer keeps readers current on Payroll news, covering topics such as employment taxes, fringe benefits and the Fair Labor Standards Act. She brings over 20 years of experience to the HRMorning staff.

Show Less
Last Updated: January 24, 2025
3 minute engagement
Doge Developments
You read HRMorning's newsletter. Beacon's Daily Brief is the version tuned to you: it skips what you've already read and leads with what you've asked Beacon about. Get your Daily Brief →

The Department of Government Efficiency (DOGE) got its start on Day One of President Donald Trump’s second term and met with immediate legal action.

According to the executive order that established and implemented DOGE, the entity’s purpose will be to “modernize federal technology and software.” The end goal of the modernization will be to maximize the efficiency and productivity of the government.

The executive order also explains that a software modernization initiative will seek to improve the quality and performance of not only software but also network infrastructure and IT systems used by government agencies.

So, businesses can expect that the tech overhaul will lead to procedural changes when electronically submitting reports, forms and other information to various federal agencies.

Details in the President’s Executive Order

To identify potential changes, federal agencies are supposed to assemble DOGE teams, with details laid out in the executive order: Establishing and Implementing the President’s “Department of Government Efficiency.”

Each team will consist of at least four employees. A typical team would be a:

  • team leader
  • engineer
  • HR specialist, and
  • attorney.

Agency heads would have the responsibility of assembling their teams. They’d work in consultation with the head of DOGE — currently, Elon Musk. Originally, the role of DOGE leader was going to be shared by Musk and Vivek Ramaswamy. But with Ramaswamy deciding to run for governor in Ohio instead, Musk is the sole leader for now. It’s possible someone else may replace Ramaswamy and his emphasis on regulatory reductions.

Ideas for Government Efficiency

While the executive order didn’t specifically mention government spending, it’s anticipated that DOGE will look for ways to make cuts from the $6.8 trillion federal budget, though likely not as dramatic as the $2 trillion in cuts Musk had earlier suggested.

Will that mean reducing the number of federal agencies — currently, over 400?

Will that mean reducing the number of federal civilian employees — currently, over 2 million?

And/or will it mean something else, such as this recently floated idea: stopping the production of the penny.

Minting that coin costs more than 3 cents — i.e., three times the value of the penny itself. The expense of making the penny added up to more than $179 million in FY 2023, DOGE said in an X post on January 21, 2025. So, the federal government stands to save millions each year.

In case you’re wondering if you’ll end up needing to reconfigure your payroll system to default to 5-cent increments, the penny isn’t expected to be removed from circulation, only from production.

Legal Challenges to DOGE

The January 20, 2025, executive order stipulates that DOGE should exist for 18 months.

So, it’ll be around until July 4, 2026. That’s assuming it makes it that far.

Several legal challenges have been filed against DOGE, including three on Inauguration Day. The lawsuits were all filed in the Federal District Court for the District of Columbia.

Lentini v. Department of Government Efficiency claims violations of four laws, including the Federal Advisory Committee Act (FACA). Under this 1972 law, advice from advisory committees must be objective and accessible to the public. The plaintiffs ask the court to decide in their favor on eight points, including this one: declaring that DOGE is a presidential advisory committee subject to FACA requirements.

The other cases filed January 20, 2025, also bring claims under FACA. The cases are:

  • American Public Health v. Office of Management and Budget, and
  • Public Citizen Inc. vs. Donald J. Trump.

As the courts consider whether or not DOGE is an advisory committee, as defined by FACA, here’s a summary of how DOGE describes itself:

  • It’s part of the United States DOGE Service (USDS) — previously, USDS referred to a team President Barack Obama founded in 2014, called the United States Digital Service.
  • The official name of DOGE is the USDS Temporary Organization, and it’s headed by the USDS administrator.
  • The USDS is established in the executive office of the president, with the USDS administrator reporting to the White House chief of staff.

To see an updated list of executive orders impacting HR, check out New Executive Orders: What HR Should Know for Trump 2.0.

Read it on Beacon
Open this article in Beacon, from HRMorning, and ask how it applies to your company. Every answer names its source.
Read it on Beacon
Get HRMorning's newsletter tuned to you every morning: your Daily Brief on Beacon →
Filed under
PAY Logo
  • Payroll
  • Policies & Procedures
  • Share on

Get the HRMorning Newsletter

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

Get it free with a Beacon account. Beacon keeps your company's HR context at hand, and every answer names its source.
Create my free account

Free Training & Resources

White Papers

Every Accommodation Request Is a Compliance Test. Automate the Process That Passes It.

White Papers

Employee Recognition Playbook

Provided by Inspirus

White Papers

Fertility Mandates Are Moving Fast: What Benefits Leaders Need to Know Now

Provided by Maven Clinic

White Papers

Recognition Is a System, Not a Moment

Provided by Terryberry

SPONSORED CONTENT

Compensation

Recruiting

sponsored content
Salary Benchmarking: 6 Choices That Decide Whether Your Pay Data Holds Up

Courtesy of MARSH

Employment Law

Policy & Procedures

sponsored content
Policy Rollout: 4 Checkpoints That Show Employees Got the Message

Courtesy of NAVEX

Benefits

Staff Administration

sponsored content
PEO ROI: 3 Numbers to Know Before You Leave Patchwork HR

Courtesy of TRINET

Further Reading

  • Payroll
California Minimum Wage Rises to $17.40 an Hour in 2027

California’s statewide minimum wage will rise to $17.40 an hour on Jan. 1, 2027. The increase will also raise the annual salary an employ...

  • Compensation
  • Payroll
Payroll Alert: New Minimum Wage Rates Update July 1

Mid-year minimum wage increases catch more payroll teams off guard than January changes do. Several state, local and industry-specific mini...

  • Payroll
New Revision Date for National Medical Support Notice

Be on the lookout for an updated notice, requiring you to provide healthcare coverage to an employee’s child. As in the past, if y...

  • Compensation
  • Payroll
Reimbursement: FY 2026 Per Diem Rates Announced by GSA

Employers that don’t want to require employees to turn in receipts for business travel reimbursement can rely on per diem rates. T...

  • Compensation
  • Payroll
2026 Social Security Taxable Wage Base Projected to Increase

What’s the maximum you’ll pay per employee in Social Security tax next year? The taxable wage base estimate has been released. ...

  • Employment Law
  • Payroll
Payroll Problems Lead to Proposed $162M Settlement in New York

A federal court has approved a proposed $162 million class action settlement between Public Partnerships LLC (PPL) and personal assistants ...

Get the latest from HRMorning in your inbox PLUS Beacon, free. Check it before you say it.

GET STARTED FREE
HR Morning Logo
  • Facebook
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • Leadership & Strategy
  • Compensation
  • Policy & Procedures
  • Wellness
  • Staff Departure
  • HR Career & Self-Care
  • Health Care
  • Retirement Plans
  • DEI

HRMorning, part of the Rover Insights Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day's headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Powered By Rover Insights
Privacy Policy | Terms of Service | HRMorning Insider? Manage your subscription
Copyright© 2026 Rover Insights
HRMorning Logo

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.