The Department of Government Efficiency (DOGE), established by President Donald Trump in January 2025 and led by Elon Musk, is set to influence local governments across the United States. Recent news has highlighted DOGE’s goal to modernize federal technology, streamline operations, and cut wasteful spending. However, some believe this is problematic and not done with the thoughtfulness needed for such potentially significant changes.
Since the initial reports from DOGE and subsequent work, a few states and local municipalities have discussed establishing similar Offices of Efficiencies for their communities. The AFI team understands that this is a politically sensitive issue. While we never engage in politics, our membership needs to review the realities of DOGE and examine its potential impact on local communities.
With our AFI team receiving numerous inquiries about the potential impact of DOGE, we have compiled some basic information for our members. This will include possible benefits, challenges, and concerns. We will also provide some proactive steps.
Potential Benefits of DOGE:
--Streamlined Bureaucracy to speed up the process of Accessing Federal Support, thereby reducing the administrative cost burdens.
--Technology Modernization—all facets from grant submissions to exigent circumstances.
--Cyber Security enhancements for local governments through grants and partnerships.
--Potential transparency in all aspects of funding.
Challenges and Concerns:
--Any new federal requirements may strain current local staff and resources.
--Additionally, team members' capabilities vary from city to city, potentially creating unfair funding.
--Since the main goal is to increase efficiency, programs, grants, and initiatives may soon face reductions, resulting in funding challenges for various reasons.
--Cuts in personnel or reductions in contract work on significant projects, such as defense and infrastructure, may impact communities with many federal government employees.
AFI Recommendations:
Governments should review budgets for federally funded initiatives, including state grants that might rely on federal spending, as past funding sources could be interrupted, reduced, or eliminated.
Some non-profits provide tremendous social services. Are there other funding sources to explore if adversely affected by lack of federal funding?
Training government staff and local nonprofits on new procedures will help minimize potential disruption caused by process changes.
Build positive relationships with local and federal elected officials. This should also involve regional approaches.
This is a highly fluid situation, and information from our membership will help direct our path forward.
Please consider assisting AFI members in two ways:
1. If your community is taking proactive steps or has learned of potential upcoming challenges, please share with our team at my email address
2. Complete the survey below to help AFI develop next steps.
Troy Riggs
Executive Director
Alliance for Innovation (AFI)
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