Today, President Donald Trump was sworn in for a second, nonconsecutive term after the historic November 2024 election. As highlighted on the campaign trail, Trump’s Administration will bring with it an unprecedented challenge to the status quo of government operations, inviting important discussions about government size, efficiency and efficacy.
Prior to taking office, Mr. Trump began paving the way for a redefinition in how the federal government views its role by establishing the much-anticipated Department of Government Efficiency or “DOGE,” for short. DOGE marks a watershed moment in the evolution of governmental operations and public-private sector interactions. This bold initiative has sparked a wide range of reactions across the political spectrum, reflecting the complex nature of government reform.
As organizations navigate the changing landscape under the new administration, it is essential to understand the multifaceted perceptions of DOGE among key stakeholders. Although DOGE will not become the official 16th department of the U.S. government, nor will its leadership be Senate confirmed, or even be government employees, it will serve an important function under the new presidency and could have lasting implications for future generations. As such, it will be critical for the private sector to understand how to navigate DOGE’s priorities and to position for new opportunities.
With an extensive network of former U.S. government officials and deep subject matter experts, The Chertoff Group (TCG) is uniquely positioned to provide insights into DOGE, highlight the implications of its creation, and equip your company with the knowledge necessary to effectively navigate this transformative period.
What is DOGE?
The Department of Government Efficiency (DOGE) is a newly formed entity dedicated to advising the Trump Administration on ways to cut waste, improve operational efficiency across federal agencies and enhance the delivery of public services to the American people. Its overarching mission is to ensure taxpayer dollars are used effectively while promoting innovation and accountability throughout government processes.
DOGE and the Political Landscape
The establishment of DOGE represents a pivotal moment in streamlining governmental activities and redefining the interaction between the public and private sectors, which has prompted mixed reactions and diverse opinions across the political spectrum. As companies consider what’s next, it will be critical to understand how DOGE is being perceived by Capitol Hill, the Executive Branch and taxpayers, alike and to understand DOGE’s evolving priorities. Especially because the DOGE’S primary power lies not in any statutory authority but its perceived influence on three centers of power: 1) the President; 2) the Congress; and 3) the Public.
Support and Opposition within Congress
Lawmakers will scrutinize how much President Trump and the public are influenced by the DOGE’s “naming and shaming” power of calling out waste, opportunities for improved efficiency or even significant gains through disruptive change. This will shape congressional future direction which will most certainly include congressional hearings, potential investigations and possible legislative action.
DOGE has already triggered a flurry of activity on Capitol Hill beyond mere debates. While proponents highlight the potential for reduced government waste and improved service delivery, critics raise concerns about bureaucratic overreach and implementation challenges. Obtaining bipartisan support will be critical for DOGE’s long-term success.
Additionally, various interest groups are expected to intensify their lobbying efforts, both in support of and in opposition to DOGE, potentially swaying congressional opinions in the process. This may catalyze significant power shifts within congressional committees, as some gain or lose oversight responsibilities, reshaping the landscape of legislative influence.
Budget
The creation of DOGE introduces new complexities into the federal appropriations process, including budget planning and execution. With three concurrent budget cycles – the FY 2025 Continuing Resolution (CR), FY 2026 budget on Capitol Hill, and the initial stages of FY 2027 budgets – the incoming administration will want to influence each of these, which could take months to sort out.
Lawmakers will also face the challenging task of attempting to allocate some minimum funding to this new entity while simultaneously seeking to balance the budgets of existing agencies, potentially leading to intense debates and prolonged negotiations. Additionally, DOGE’s mission may lead to a shift towards performance-based budgeting, which would emphasize outcomes against resource allocation. An increased focus on fiscal responsibility will necessitate the development of robust metrics and comprehensive reporting mechanisms to justify expenditures and demonstrate the tangible benefits of DOGE’s efficiency measures.
Challenges and Roadblocks
DOGE will introduce a complex set of operational challenges that extend beyond its core mandate. Although most would agree that the government should operate more efficiently, doing so will be mean hard choices. DOGE could face legislative hurdles stemming from differing priorities among political parties and resistance from agencies reluctant to adopt new processes. It could also produce potential conflicts with existing regulations and oversight mechanisms.
Another hurdle will be navigating the intricate web of interagency relationships, with potential turf wars emerging as DOGE’s role intersects with existing agency responsibilities. Simultaneously, the implementation of new efficiency measures is likely to demand significant upgrades to government IT systems, presenting both technical hurdles and budgetary constraints. Perhaps most importantly, DOGE will face the formidable task of overcoming resistance to change within government agencies. This will require carefully crafted change management strategies and strong, visionary leadership to ensure buy-in and successful adoption of new processes across the federal landscape.
Impact on Government-Private Sector Relations
DOGE’s initiatives are poised to redefine the landscape of government-private sector relations, with far-reaching implications for contractual expectations and business practices. The shift towards performance-based outcomes and increased transparency could foster greater collaboration between public and private entities, potentially giving rise to innovative partnerships focused on developing cutting-edge efficiency solutions.
However, this evolution may also introduce additional compliance requirements for private companies seeking government contracts, particularly impacting small businesses that may face altered qualification criteria or more stringent reporting obligations. The drive for enhanced efficiency could necessitate increased data sharing between government and private entities, raising important privacy and security concerns. As DOGE’s influence expands, it will likely reshape the entire ecosystem of government contracting, demanding adaptability from businesses of all sizes while potentially opening new avenues for public-private cooperation in the pursuit of governmental efficiency.
Public Perception and Communication Strategy
The success of DOGE will partly depend on public understanding and support. A comprehensive communication strategy will be crucial to its long-term success and impact. This strategy must effectively explain DOGE’s mission and potential benefits to the public, and address concerns about government overreach and/or privacy issues. It will be essential to highlight early wins and tangible improvements for taxpayers to build confidence in DOGE’s mission. Additionally, the strategy should focus on managing expectations and maintaining transparency about the challenges, while fostering trust and credibility with the public.
Legal and Regulatory Framework
DOGE will require careful consideration of existing laws and regulations, necessitating a comprehensive review and potential overhaul of the current legal landscape in relation to government budgeting and expenditures. There may be a need to amend existing regulations or draft new legislation to fully empower DOGE’s mandate and ensure it has the necessary authority to implement efficiency measures across government agencies. Furthermore, new regulatory frameworks may be needed to govern DOGE’s operations and its interactions with other agencies, ensuring clarity and preventing jurisdictional conflicts. Throughout this process, careful consideration must be given to potential legal challenges that may arise from affected stakeholders or interest groups, including unionized elements of the federal government workforce. Proactive legal strategies will be needed to address and mitigate such issues.
What are DOGE’s Priorities?
The short answer is that it’s hard to say. While there is a lot of conjecture on what DOGE will cut, there’s little known insight into how the pseudo-agency will prioritize its focus areas. However, there are three likely scenarios based on what we know so far: (1) DOGE will focus on workforce and spending cuts, (2) it will emphasize operational efficiency – especially through disruptive new technologies like AI, or (3) a combination of both.
Depending on the path DOGE ultimately takes, it will impact which agencies are most likely to experience change under its guidance. For example, departments with high operational complexity (e.g., Defense, Health and Human Services) will likely undergo extensive process reengineering and operational streamlining. Technology-driven agencies (e.g., NASA, Homeland Security) may become key adopters of DOGE’s modernization strategies. Other regulatory entities may face adjustments in oversight and accountability measures, as well as pressure to streamline and simplify the volume of government regulations affecting business.
Understanding your organization’s concentration risk based on DOGE’s potential priorities will be paramount to successfully navigating the new landscape.
How Will DOGE’s Priorities Affect Your Company?
Reduced spending means a reduced number of contracts. That may seem like a negative, but it could be an opportunity. A focus on improved efficiency across government agencies could be beneficial for contractors who can help identify and implement these efficiencies. However, all companies will not be impacted by DOGE in the same way. For example, one primary driver of DOGE’s effect on your company will be its size, for example:
Small Businesses: Potentially face increased competition due to streamlined bidding processes but may benefit from expanded access to government projects.
Mid-Sized Enterprises: Opportunities to showcase agility in meeting DOGE’s performance-based metrics.
Large Corporations: Likely required to adapt to heightened competition and compliance standards while demonstrating innovation in achieving government objectives.
There are many other factors that influence how your company could be affected – industry, service offerings/capabilities, federal footprint, lobbying and policy influence, and strength of relationships and network, among others.
The Chertoff Group can help you track and understand how DOGE will impact your company based on other factors, such as industry, relationship with government contracts, and missions supported. Knowing DOGE’s implications for your company will give you a leg up and help you take advantage of DOGE’s outcomes.
How Can Companies Stay Ahead of the Curve?
The magnitude of DOGE’s implications, coupled with ambiguity for how it will be operationalized, might seem overwhelming. However, there are things companies can do now to set themselves up for success, while managing business, board member, and company leadership expectations in the process.
Form Tiger Team: Establish a “tiger team” led by a company executive with sufficient influence within industry, congress, lobbying organizations, and other core stakeholder groups.
Understand Your Federal Footprint: Examine your federal business to understand opportunities and threats that DOGE might create for your company.
Proactively Shape Opportunities: Author thought pieces, white papers, and unsolicited proposals to demonstrate how your company can contribute to DOGE’s efficiency drive.
Enact Strategic Messaging: Developa comprehensive stakeholder outreach strategy and messaging campaign that supports identified opportunities and minimizes threats; and
Have a Plan: Ensureyou’re meetingregularly with both internal and external stakeholders, stay agile and able to adapt as DOGE evolves, and lean into opportunities.
Disrupt Yourself Before DOGE Does: Form a Red Team – preferably with an independent outside advisor – who’s mission will be to show you how the DOGE could seriously disrupt any part of your business. Consider how to de-risk and diversify your federal portfolio where there might be programmatic risk, budgetary risk, concentration risk or other threats to your business.
Proactively Navigate Uncertainty
The Chertoff Group provides a comprehensive suite of services that can help your organization take advantage of DOGE’s impact on the government landscape. We appreciate that the uncertainties of DOGE might be overwhelming. The Chertoff Group is prepared to help companies navigate its complexities. Leveraging our broad base of former high-ranking public officials and subject matter experts, we have unparalleled access to knowledge that will lend insight into how DOGE will take shape.
Our ability to provide detailed insights is complemented with our expertise in policy analysis, helping you maneuver new regulations and align your business goals with DOGE’s priorities.
The Department of Government Efficiency represents a transformative opportunity to enhance governance at the federal level in the United States. While challenges lie ahead, the potential benefits for public services and private-sector collaboration are immense. By understanding DOGE’s objectives and preparing proactively, companies can position themselves to thrive in this new paradigm. The Chertoff Group stands ready to support you in navigating this journey with confidence and clarity.
MacKenzie Lang and Davi Hayes are members of the Federal Strategy team at The Chertoff Group. Their mission is to help companies accelerate growth.
