White House to Push Out Federal Workers Through Buyout Offer
The trick here is to avoid an adverse selection problem in which the good ones leave (or leave first).
‘In a Tuesday night email, the Office of Personnel Management told federal workers that they have until Feb. 6 to decide how to proceed. If they step down, they will continue to receive all pay and benefits and will be exempt from in-person work requirements until Sept. 30.
‘But the Trump administration made clear that even those government employees who stay on could still eventually lose their jobs as the president works to downsize the federal government.’
Trump's death by a thousand cuts to D.C. federal workforce
They made it simple to resign.
‘"Type the word 'Resign' into the body of this reply email," OPM's missive said. "Hit 'Send.'"
Elon Musk, With a Little Help From Friends, Plays Bureaucrat in Chief
Who is running his businesses?
‘Mr. Musk has stormed into Washington with a host of friends and paid employees, determined to leave his imprint quickly. Never before in modern times has someone so rich played such a hands-on role in American government, with Mr. Musk making himself omnipresent in Washington since flying there for Mr. Trump’s inauguration. His plane has not left.’
In High-Speed Power Grab, Trump Seeks to Remake the Federal Government
Note the presumption that Trump had little to do with what his Administration is doing. It’s the work of a cabal operating in the shadows, don’t you see?
‘Of course, this isn’t Trump’s handiwork; there is no evidence that he has thought deeply about the policy, law, or constitutional questions at stake. But people who work for him have planned on his behalf over the last four years out of power. Among these is Russell Vought, Trump’s nominee to head the Office of Management and Budget, who founded one of several MAGA-friendly think tanks in Washington, the Center for Renewing America, and who contributed to Project 2025. Vought is a zealot among zealots, as his perfervid contribution to Project 2025 makes clear: “Nothing less than the survival of self-governance in America is at stake.”’
GSA procurement pause sparks confusion
Can Congress force the Executive Branch to spend money?
‘The Impoundment Act limits the ability of a president to replace Congress’ spending decisions with his or her own. The Supreme Court unanimously upheld the law in 1975.
‘A new fight over the Impoundment Act looks like a real possibility. Russ Vought, Trump's nominee for OMB administrator, repeated the president's campaign statements that the law is unconstitutional during his confirmation hearing.’
Iowa floats first state-level ‘Department of Government Efficiency’
Courage is contagious.
‘Iowa Gov. Kim Reynolds, a Republican, announced during her Condition of the State address earlier this month that she would establish a state-level DOGE by executive order, a task force “to find even greater savings and efficiencies in both state and local government” as part of a plan to pass property tax reform. As of this week, an executive order had not been issued.
‘Reynolds said the efficiency initiative would build on efforts already undertaken in Iowa, which consolidated 37 state agencies into 16, including consolidating IT systems that once were in 20 departments into one. That effort began in 2023 and has saved taxpayers $217 million already, Reynolds said, but there is more to do.’
US Senator calls crypto regulation ’a matter of national importance’
Regulatory certainty for crypto cannot come soon enough for some.
‘In a Jan. 24 filing in the US Court of Appeals for the Second Circuit, Lummis claimed that the SEC “flouts” its approach to crypto enforcement cases, arguing that the regulator exceeded its authority. The senator said that “decades-old securities statutes and regulations” could not always be applied to modern assets like cryptocurrencies and called for lawmakers to establish a framework for digital assets.
‘“With lawsuits pending across the country that rely on the SEC’s overzealous interpretation of the securities laws, it is vital that the Second Circuit — the country’s leading securities law court — weigh in now and halt the SEC’s contravention of the separation of powers and encroachment on Congress’s lawmaking powers,” said the amicus brief. “A Second Circuit standard regarding when digital assets qualify as securities is urgently needed.”’
AI Regulation: New York and California Take the Lead
The states continue to move to occupy regulatory room after the federal government starts to pull out.
‘California, a long-time hub for technological innovation, has adopted a comprehensive approach, passing a series of bills addressing various aspects of AI. One key focus is transparency. The California AI Transparency Act that became law in September 2024 mandates that businesses with large-scale generative AI systems disclose their use to the public and provide tools for users to identify AI-generated content. This act aims to combat the spread of misinformation and deep fakes, particularly concerning elections and political discourse. Further emphasizing ethical considerations, California also passed AB 2839, requiring political advertisements to clearly label any AI-generated content. This measure seeks to preserve the integrity of elections and ensure voters are not misled by synthetic media, though a federal judge has temporarily blocked the legislation due to a First Amendment challenge.
‘New York, on the other hand, has taken a more targeted approach, prioritizing the impact of AI on employment and government services. The “LOADinG Act” (Lawful Obligations and Due Diligence in Government Act) imposes strict requirements on state agencies using automated decision systems (ADS). These agencies must conduct impact assessments, ensure due process for individuals affected by ADS decisions, and provide transparency about how these systems function. This legislation reflects a growing concern about the potential for AI bias and discrimination, particularly in areas like criminal justice and social services.’
EU Commission announces determined fight against bureaucracy
Is it credible to suggest that the EU now has a deregulatory agenda?
‘In line with this, the EU Commission plans to present a strategy paper for greater competitiveness in Brussels this week. It is about “unprecedented efforts to reduce bureaucracy”.
‘The first step in this direction is planned for February and includes, among other things, simplifications in reporting on sustainable finance and due diligence obligations. A revision of the supply chain law is also planned, the entry into force of which in June 2026 is still being discussed. Faster approval procedures and a relaxation of EU competition rules are also to be part of the concept.’
Bureaucracy, energy most important issues for German business ahead of snap election – survey
Germans want less bureaucracy.
‘Bureaucracy and energy are the top issues that German companies say the next government to should prioritise, according to a survey by economic research institute ifo. When asked which topics should be addressed first in the new legislative period, almost 40 percent of the surveyed businesses said bureaucracy reduction, meaning the implementation of laws with less bureaucracy and the acceleration of planning and approval procedures. This was followed by the topic of energy at 30 percent, with measures such as grid fee reductions, a faster grid buildout and energy supply security considered particularly urgent.
‘Meanwhile, other concerns such as the shortage of skilled workers and sustainability have fallen down the list, with five and four percent of companies naming these as priorities respectively. Companies in the construction industry, however, are an exception, with over half (57%) considering skilled labour shortage as the most pressing task for the next federal government to address.’
Next time you face bureaucracy, AI might speed things up
Can AI improve productivity in the public service?
‘So, next time you're tangled up in bureaucracy, AI might just help speed things up. For example, the State of Minnesota's Enterprise Translations Office is using ChatGPT to provide quicker translation services to the state's multilingual communities, slashing both costs and turnaround times.’
Why the Federal Bureaucracy Keeps Multiplying
The highly litigious nature of American life is one key reason.
‘Management and staff functions — HR, Finance, Legal, and Program Management — have accounted for all employment gains in the U.S. federal workforce over the last quarter century.’
Former DoD Official: Bureaucracy Hindering Innovation Progress
Bureaucracy is the manifestation of risk aversion.
‘Geurts highlighted that while the DoD workforce and military services understand the need for innovation, agility, and fiscal responsibility to meet evolving threats, the department’s real challenge is lies in the bureaucratic inefficiencies that obstruct progress.
‘“Risk-averse approaches have been impairing the nation’s competitive capability,” Geurts said, adding that many of the Pentagon’s roadblocks are “self-inflicted and culturally reinforced.”’
Hate Filling out Forms? We Can Make Bureaucracy Less Confusing
Bureaucracy is difficult for neurodivergent people with characteristics such as ADHD and autism.
Could AI tools with chat interfaces be the solution? For everyone?
‘Bureaucratic processes like these can be complicated, time-sucking tasks that at best leave many people frustrated. But what is it like for neurodivergent people?’
Trump administration targets wide range of positions for removing federal job protections
This is going to be an iterative process. The administration is giving the civil service the opportunity to do it themselves.
Don’t be surprised if they reject the homework.
The administration may have mapped everything out already. This may be a pro forma exercise to get people to reveal their preferences.
‘In a memo published Monday morning, Office of Personnel Management Acting Director Charles Ezell detailed how agencies should move forward with implementing President Donald Trump’s executive order on “restoring accountability to policy-influencing positions within the federal workforce,” while also announcing the suspension of portions of the Biden administration’s regulations aiming to prevent a return of the Trump administration’s previous Schedule F policy.
‘Ezell clarified that agencies have until April 20 — or 90 days after Trump signed the executive order — to submit their initial recommendations of the career positions to be converted into the new “Policy/Career” classification.’
Social media experts are skeptical about the power of new state laws
‘ddd
Missouri rule would require algorithm ‘transparency’ on social media
A million points of light, indeed.
‘But tech developers are concerned new state laws could weaken privacy protections for users, take away online mental health resources for marginalized communities and restrict the flow of online information, said Paul Lekas, the senior vice president and head of global public policy and government affairs at the Software & Information Industry Association, a trade association representing the digital content industry.
‘“The bills are all different, so it’s hard to say that all of them are good or all of them are bad,” Lekas said. “But a lot of concerns come up in a number of these bills.”’
First wave of DEI-related contract cancellations hit the market
How big of a shock will this be to the economy?
‘In one example, the Energy Department has removed DEI requirements from a $20 billion contract with the University of California system to manage the Ernest Orlando Lawrence Berkeley National Laboratory.
‘Using information from the GovTribe data base and USASpending.gov, we found three contracts that are cancellations and are tagged with “stop work” or “termination” orders.
‘Ernst & Young had a $3 million contract with the Department of Housing and Urban Development cancelled on Friday. The contract support implementation of Biden administration executive orders.’