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Business & Economy
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Business & Economy
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Government unions sue over DOGE access to DOL
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The AFL-CIO and several affiliated government employee unions sued Elon Musk’s Department of Government Efficiency over fears that the cost-cutting unit is close to unlawfully gaining access to the Labor Department.
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© Matt Rourke, Associated Press
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Musk’s team has led sweeping changes to the federal government in the initial weeks of President Trump‘s term, including dismantling the U.S. Agency for International Development (USAID) and gaining access to the Treasury Department’s payment system.
“Today, they will come for the Department of Labor,” the lawsuit states, warning that it would provide Musk with nonpublic information about investigations into his companies.
The plaintiffs cited at least one Labor Department employee who was told DOGE plans to visit and “to do whatever they ask, not to push back, not to ask questions.”
The Hill reached out to the Labor Department and the White House for comment.
A flurry of legal actions have been filed against DOGE as it takes broad aim at the federal bureaucracy, claiming it is doing so without any legal authority.
“DOGE seeks to gain access to sensitive systems before courts can stop them, dismantle agencies before Congress can assert its prerogatives in the federal budget, and intimidate and threaten employees who stand in their way, worrying about the consequences later,” the complaint reads.
The Hill’s Zach Schonfeld has more here.
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Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.
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Key business and economic news with implications this week and beyond:
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The Senate on Wednesday teed up a final vote on the nomination of Russell Vought to lead the White House budget office.
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Google is dropping its diversity, equity and inclusion (DEI) hiring goals in the wake of President Trump’s executive orders seeking to end the practice.
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Vice President Vance celebrated the news that the prestigious venture capital firm Andreessen Horowitz hired Daniel Penny, a Marine veteran who was acquitted two months ago of a negligent homicide charge in New York City.
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Senators on Wednesday advanced the nominations of Howard Lutnick and Kelly Loeffler — President Trump’s picks to head the Commerce Department and the Small Business Administration (SBA), respectively.
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Welcome to Tax Watch, a new feature in The Hill’s Business & Economy newsletter focused on the fight over tax reform and the push to extend the 2017 Trump tax cuts this year.
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Trump hiring freeze looms over filing season, tax fight
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President Trump’s imposition of a federal hiring freeze via executive order is raising questions about how well the IRS will be able to handle the looming tax filing deadline.
Tax filing season kicked off earlier this month ahead of the usual April 15 deadline, but some tax experts are concerned the agency may lack the manpower to handle returns.
“Every facet of IRS operations will be significantly impacted by the current hiring freeze,” wrote former IRS Commissioner Charles Rettig.
“Fortunately, IRS employees are resilient and have considerable experience with hiring freeze operations,” Rettig wrote, citing the frequent stopgap funding measures and changes to the IRS budget over the past decade.
Fewer IRS employees could mean delayed returns, longer wait times for assistance and higher rates of error. But a smaller IRS may also take a bite out of long-term revenue projections, which are crucial to assessing the impact of a GOP tax cut plan.
Budget experts warned Republicans in 2023 that their plans to slash IRS funding would actually increase the deficit. IRS funding helps reduce the deficit by helping the federal government collect more tax revenue.
— Sylvan Lane
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Upcoming news themes and events we’re watching:
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- The Senate is expected to vote Thursday on the nomination of Russell Vought to serve as the next head of the Office of Management and Budget.
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Branch out with more stories from the day:
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NEW YORK (AP) — CBS’ “60 Minutes” posted online Wednesday the unedited transcripts of its October …
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Business and economic news we’ve flagged from other outlets:
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- DOT secretary says he spoke with Elon Musk on U.S. airspace reforms (CNBC)
- Google erases promise not to use AI technology for weapons or surveillance (CNN)
- Stock Traders Look Past AI Jitters as Bonds Climb (Bloomberg)
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Top stories on The Hill right now:
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The odds of a government shutdown are surging as President Trump battles Democrats over efforts to freeze funding and Republicans brawl internally over the size and scope of potential cuts. Read more
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Tensions flared during a House GOP conference meeting Wednesday as the group struggles to unite around a plan to pass President Trump’s legislative agenda, delaying Speaker Mike Johnson’s (R-La.) ambitious timeline for considering the sprawling measure. Read more
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Opinions related to business and economic issues submitted to The Hill:
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You’re all caught up. See you tomorrow!
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