Wendy Edelberg and Jacob Leibenluft discuss a recent scandal involving the Bureau of the Fiscal Service in the Treasury Department. They delve into the alarming implications of political actors accessing sensitive financial systems, particularly under the influence of Elon Musk's DOGE initiative. The conversation highlights concerns about the integrity of federal payment processes and the potential risks to financial markets stemming from such meddling. They also underscore the importance of trust and accountability in government operations to protect vulnerable populations.
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insights INSIGHT
Civil Servants vs. Political Appointees
Civil servants traditionally administer the Bureau of Fiscal Service (BFS) payment systems.
Political interference raises concerns about executive overreach and potential misuse of funds.
insights INSIGHT
BFS: Critical Infrastructure
The Bureau of Fiscal Service (BFS) is a crucial part of government infrastructure, ensuring payments reach their intended recipients.
Meddling with this system raises concerns about motives and potential consequences.
question_answer ANECDOTE
Existing Congressional Oversight
Congress has established laws and oversight mechanisms for the payment system.
DOGE's actions deviate from established procedures, raising concerns.
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Before January, most Americans had probably never heard of the Bureau of the Fiscal Service (BFS), a Treasury Department agency that distributes payments from the federal government. But over the last month, this corner of government has appeared again and again in the headlines, as aides working with Elon Musk’s quasi-governmental DOGE initiative successfully gained access to BFS’s payment systems. After a flurry of litigation, a temporary restraining order now bars these aides from accessing data—but the crisis is not over. It’s still not clear precisely what happened within BFS or what access political actors within the administration might gain in the future, and DOGE continues to access similarly sensitive systems in other agencies, such as the Social Security Administration and the Internal Revenue Service.
To understand what’s happening, Senior Editor Quinta Jurecic spoke with Wendy Edelberg, Director of the Hamilton Project and Senior Fellow at the Brookings Institution, and Jacob Leibenluft, who served in the Treasury Department and the Office of Management and Budget under the Biden administration. Why is it so alarming to have political appointees accessing BFS systems? What does this tell us about the administration’s political goals? And what manner of crises could result from this kind of meddling?
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