Elon Musk’s DOGE signed a $1.3 million agreement with the U.S. Labor Department for IT upgrades. While meant to improve tech efficiency, the deal contradicts earlier “free service” claims and faces a federal audit over data access and control.
When Elon Musk launched his self-proclaimed Department of Government Efficiency—DOGE for short—it sounded like another bold idea from the tech billionaire. The goal? Make the government more efficient, more innovative, and less wasteful. He even promised the services would come “at no cost to taxpayers.”
But a newly revealed agreement with the U.S. Department of Labor (DOL) tells a different story.
What’s in the Deal?
The contract, obtained through a public records request and reported by Wired, shows that the DOL has agreed to pay DOGE up to $1.3 million for IT modernization services over the next 18 months.
In return, DOGE will deploy four of its operatives to work with the department on:
- Software engineering
- Data analysis
- Digital design
- Fraud prevention and system improvement
The mission: to overhaul and streamline the Labor Department’s outdated technology systems.
But this seems to directly contradict Musk’s previous public statement. When first launching DOGE, Musk tweeted:
“We are not charging the government for these services. This is strictly voluntary and to help improve our institutions.”
Clearly, that’s no longer the full story.
Strict Terms, Limited Access
Despite the deal’s optics, the agreement isn’t a blank check. The Department of Labor included strict stipulations to control how DOGE interacts with government systems. For example:
- DOGE operatives must provide 24-hour notice before logging into any DOL system.
- Any data usage or transfer requires written approval.
- All payments must go through official government channels.
One clause in the contract reads:
“DOGE shall not use or disclose data for any purpose without written approval from the Department of Labor.”
This shows a high level of caution from the DOL. It’s clear they want to keep DOGE’s role tightly controlled, despite the headline-making partnership.
Who Are the DOGE Operatives?
According to the agreement, three names stand out:
- Aram Moghaddassi – Previously linked to Musk’s various ventures
- Miles Collins
- Marko Elez
Each of them has ties to Musk’s tech empire. Their connections to SpaceX, Tesla, and X (formerly Twitter) raise some eyebrows. Is this a private takeover of public systems—or just smart collaboration?
Federal Oversight and Investigations
The Government Accountability Office (GAO) has launched a probe into DOGE’s expanding footprint in federal agencies. Investigators are examining:
- Access to sensitive government data
- Operational authority of DOGE members
- Compliance with federal IT and contracting procedures
This follows multiple concerns from government insiders and transparency advocates.
“It’s not about whether Musk is helping—it’s about how, and at what cost,” one official told Wired under condition of anonymity.
What Happens Next?
The Department of Labor hasn’t confirmed whether the agreement is already active. But the document shows DOGE submitted payment paperwork as early as January. That suggests the wheels are already turning behind the scenes.
So far, neither DOGE nor Elon Musk has commented further on the payment clause or the federal probe.
This isn’t just a story about a contract. It’s a story about trust, power, and how tech moguls like Elon Musk are reshaping the way government operates—often quietly, and sometimes controversially.
What began as a promise to “help, not charge” has now turned into a million-dollar agreement, scrutiny from federal auditors, and a fresh debate over the future of digital governance in America.
