No Half Measures
In for a penny, in for a pound.
Maybe Musk Isn’t All-Powerful, After All
Musk will be quiet for the deregulatory phase of DOGE, either because of recent setbacks or because that was the plan all along.
In any event, it will make deregulation more difficult to counter for defenders of the status quo.
‘It’s the latest bump in the road during Musk’s three-month crash course in government. He has repeatedly rankled certain members of Trump’s cabinet by failing to coordinate with them. His overall progress with the Department of Government Efficiency has been slower than he imagined. He was practically admonished by Trump in public after a plan for him to receive a classified briefing on China was leaked and then scuttled.
‘He suffered a high-profile political defeat after inserting himself into this month’s Wisconsin Supreme Court race. And despite his public opposition to Trump’s tariffs — and the trade adviser promoting them — he is not believed to have played a substantial role in persuading the president to change course.
‘As these obstacles have piled up, I’ve noticed that we haven’t seen quite so much of a billionaire who usually possesses no shortage of main-character energy. When he joined a cabinet meeting last week, he spoke only briefly during the televised portion, in contrast with his first such appearance, which essentially turned into the Elon Musk show. He hasn’t given a major interview in a couple of weeks.’
DOGE moving on building the Gold Card system.
‘It’s a story that reveals how DOGE’s functional power has seemingly expanded, with the group going so far as to rework a corner of the nation’s immigration system. Ryan and Hamed noted that it also shows how the Musk outfit is not only trying to cut jobs and contracts but also generate revenue.
‘And it’s an example of how its staff members are building structures and systems that might outlast them.’
DOGE Comes for Clean Energy, Putting Exxon and Occidental Projects at Risk
Political volatility brings contractual instability.
‘The Energy Department is preparing dramatic cuts that could halt nearly $10 billion in federal funding for clean-energy projects—and some of its highest profile partnerships with Exxon Mobil XOM -2.11%decrease; red down pointing triangle and Occidental Petroleum OXY -2.54%decrease; red down pointing triangle are at stake.
‘The proposed cuts would upend government contracts with energy companies working on hydrogen, carbon capture, long-duration energy storage and other technologies, according to department memos reviewed by The Wall Street Journal. Thousands of DOE jobs are expected to be eliminated.’
ObamaCare at the Supreme Court—Again
The devil is in the details.
‘Several Texas employers are challenging an ACA requirement that insurers cover preventive care at no out-of-pocket cost. Congress instructed that a Preventive Services Task Force of outside experts determine care that must be covered. The plaintiffs specifically object to the task force’s inclusion of drugs that prevent the transmission of HIV.
‘But the dispute before the Justices is whether the task force members have been validly appointed. Congress directed the director of the Agency for Healthcare Research and Quality, a unit of the Health and Human Services Department, to “convene” a task force of 16 “independent” experts who are “not subject to political pressure.”
‘The task force’s recommendations for insurance coverage are effectively binding because they aren’t subject to review by the HHS Secretary or anyone else. Ergo, the task force exercises rule-making authority similar to an administrative agency.’
How to do regulatory reform (from my email)
Tyler Cowen reports comments from Philip Howard on government reform.
‘Most of the newcomers to the realization that govt is paralyzed (Ezra Klein, Dunkelman etc) think that the red tape jungle can be pruned, or organized with better feedback loops (Pahlka). This is falling into Gore’s pit. There’s a fatal defect: the operating system is designed around legal compliance–instead of human authority to make tradeoff judgments. Law should be a framework setting the boundaries of authority, not a checklist. That’s why some reforms I championed (page limits, time limits) haven’t worked; there’s always another legal tripwire.’