Capitol Corner: Introducing the Department of Government Efficiency

As President-elect Donald J. Trump announced his nominees for traditional cabinet posts, he also announced his intent to create a Department of Government Efficiency (DOGE). Since a new federal agency can only be created by an act of Congress, DOGE will instead function as a presidential advisory commission. The name DOGE was deliberately chosen as a backronym to reference the popular internet meme and dogecoin, the cryptocurrency often promoted by Tesla CEO Elon Musk. Together, Elon Musk and Vivek Ramaswamy will lead the new commission.  

While the creation of such a commission is historic, it is not unprecedented. Similar commissions date back to 1905 when President Theodore Roosevelt created the Keep Commission. Since then, Presidents Franklin D. Roosevelt, Harry S. Truman, Ronald W. Reagan, William J. Clinton, and Barack H. Obama also created advisory commissions to address the efficiency and effectiveness of the federal government.  

Musk and Ramaswamy state that their goal is to disband the DOGE by July 4, 2026. Until then the Commission plans to work closely with the Office of Management and Budget to pursue three types of reform: regulatory rescissions, administrative reductions and cost savings. DOGE will seek to drive change through executive action based on existing law rather than by passing new legislation.  

The commission will be charged with identifying duplicative programs, functional inefficiencies and unnecessary regulations. Reported first steps include targeting federal spending not authorized by Congress and trimming the workforce by requiring federal employees to work in the office five days a week (expected to result in numerous resignations) and by offering early retirement incentives. Federal regulations will also be subject to intense scrutiny. Due to recent U.S. Supreme Court decisions, many existing regulations may now exceed congressional authority and may instead be addressed in DOGE recommendations. 

Although the DOGE purview encompasses the entire federal government, the commission is advisory in nature and does not have the authority to enact changes. The role of DOGE is limited to making recommendations. Budget cuts, significant policy changes and agency creations or eliminations require approval from both the U.S. House of Representatives and the U.S. Senate. 

The House of Representatives plans to create a new House Oversight Subcommittee on Delivering on Government Efficiency in the 119th Congress, and some Members of Congress are forming a DOGE caucus. The Senate has also formed a DOGE caucus that includes Senator Ted Budd (R-NC) as a founding member. 

President-elect Trump’s inauguration is scheduled for January 20, 2025. Plans for DOGE will not officially be implemented before then and may change in the interim. 

Federal funds are commonly passed through state agencies in North Carolina before being awarded to local governments, which can make the original funding source less obvious. Before proceeding with a procurement, local governments should verify whether an award originates from a federal source. This determination affects compliance obligations, including procurement standards, reporting, and audit requirements.

When a construction or repair contract over $300,000 involves a building, the procurement and contract are subject to additional requirements under N.C.G.S. 143-128. Therefore, this question must be answered to determine whether the additional statutory requirements apply to this procurement scenario.

The micro-purchase threshold is a federal procurement threshold under which competitive procurement is not required. The default micro-purchase threshold is $15,000, but local governments may increase the micro-purchase threshold up to $50,000. An explanation of increasing the micro-purchase threshold and a template for the required annual self-certification is available here.