Elon Musk’s new role sparks controversy: What to know about his ‘Special Government Employee’ designation

Billionaire Elon Musk has been designated as a special government employee (SGE) under the Department of Government Efficiency (DOGE), a cost-cutting initiative launched by President Donald Trump to reduce federal spending. The White House confirmed Musk’s status on Monday, sparking criticism and legal challenges.

What is a Special Government Employee (SGE)?

According to the Department of Justice, an Special Government Employee (SGE) is someone who works for the government for 130 days or less within a year.

SGEs can be paid or unpaid and are generally subject to federal ethics laws. However, they cannot work on matters that could impact their personal financial interests or those of their spouse, children, or affiliated businesses—unless granted a waiver for insignificant conflicts.

Transparency requirements

As an SGE, Musk may be required to submit a financial disclosure report within 30 days of assuming his position. If he serves more than 60 days and earns above a GS-15 pay grade, his financial records must be made public. Otherwise, his disclosure may remain confidential if his work affects private entities.

Musk’s role in DOGE and legal challenges

Musk’s appointment under DOGE, which is not an official federal department, has drawn scrutiny from Democratic lawmakers and advocacy groups. Since Trump’s inauguration on January 20, multiple lawsuits have challenged DOGE’s operations.

On February 3, two unions and the Alliance for Retired Americans sued over DOGE’s access to the Treasury Department’s payment systems, which handle tax refunds and Social Security payments. The lawsuit alleges that DOGE’s involvement violates privacy laws and could compromise sensitive financial data.

Conflict of interest concerns

Senator Ron Wyden, the top Democrat on the Senate Finance Committee, raised concerns about Musk’s business ties to China in a January 31 letter to Treasury Secretary Scott Bessent. Wyden warned that Musk’s access to US financial systems could pose a national security risk, citing China’s history of cyber espionage targeting US government data.

“I am concerned Musk's enormous business operations in China — a country whose intelligence agencies have stolen vast amounts of sensitive data about Americans, including U.S. government employee data by hacking U.S. government systems — endangers U.S. cybersecurity and creates conflicts of interest that make his access to these systems a national security risk," Wyden wrote,” Wyden wrote.

White House and Musk remain silent

The White House and Musk have not yet responded to concerns over potential conflicts of interest. Meanwhile, watchdog groups are closely monitoring how DOGE operates and whether Musk’s role aligns with federal ethics standards.