Claim Jumping

I have observed the advancement of a homegrown Wisconsin boy, Sean Duffy, from afar.  With some admiration too.  What's not to like about a lumberjack from Hayward, WI?

Indeed, Duffy was a professional lumberjack having competed in Hayward's Lumberjack World Championship on several occasions and winning multiple titles in speed climbing.  He graduated from St. Mary's College of Minnesota with a marketing degree and from William Mitchell College of Law in 1999.  In 2002 governor Scott McCallum appointed Duffy as Ashland County District Attorney where he served until 2010.

In 2010 he defeated state senator Julie Lassa for Wisconsin's 7th Congressional district; formerly held by retiring representative David Obey.  Duffy was re-elected four more times before resigning from Congress in 2019 on account of a newborn child's health complications. After leaving Congress Duffy worked for a consulting group and began co-hosting Fox Business's The Bottom Line in 2023.  

In November 2024, President-elect Donald Trump nominated Duffy to serve as his Secretary of Transportation.  Duffy was confirmed by the Senate on January 28, 2025 and immediately sworn-in.

As cabinet Secretary Duffy isn't generally associated with much of the drama and intrigue that ordinarily follows other cabinet officials.  Much of this is a consequence of a department not generally bedeviled by the culture wars, there is institutional inherited momentum in the pipeline (pardon the pun), ribbon cuttings are positive events and any project delays can be chalked-up to government bureaucracy.  Because bricks and mortar are basically boring background noise Transportation is likely the quietly safest cabinet post on the planet.  Which leads me to this:  Scuttlebutt that Secretary Duffy is taking credit for infrastructure grants signed into law by former president Biden. 

Say it isn't so.

With a modicum of digging it is quite so.

Seems Duffy is touting BUILD grants (Better Utilizing Investments to Leverage Development) as rebranded RAISE grants (Rebuilding American Infrastructure with Sustainability and Equity) created and funded by the Bipartisan Infrastructure Law signed by President Biden in 2021.  

Critics note that the Trump administration has been resurrecting previously-passed legislation with new names while not always acknowledging their origin under the former guy.

Official messaging from Duffy and the Department frequently describe moving or approving grants emphasizing that the Trump administration is clearing a backlog or getting America building again of previously announced projects.  Such messaging frames the work as a fresh accomplishment by the current administration - omitting any reference to funding under Biden. 

Representative O'Brien meets with Transportation Secretary Duffy to discuss the I-69 Ohio River Crossing.  The ORX bridge involves a mix of federal, state (Kentucky and Indiana) and toll authority funding for the estimated $933 million project.  The states are pursuing $632.3 million in major federal grants, including the Infrastructure Investment and Jobs Act funds. 

The Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) signed in 2021 was huge; authorizing roughly $1.2 trillion in infrastructure funding much of which continues to be allocated and spent as you read this.

In the year since Trump took office not a single stand-alone infrastructure law has been passed.  Major federal infrastructure authorizations all stem from laws passed before Joe Biden left office.  

Noteworthy, is the administration has focused on regulation and permitting; pushing changes intended to speed-up infrastructure approvals by means of revising matters such as environmental permitting.  Recent rollbacks of long-standing environmental review requirements aim to reduce delays on large projects which supporters suggest accelerates infrastructure work without creating entirely new federal infrastructure spending authorizations.

Nevertheless, the current administration has not passed into law any large scale infrastructure spending of its own.  Major funding still originates from earlier bipartisan legislation enacted under former President Biden or other existing statutory authority.

It's not exactly like plagiarizing a term paper as much as it is more like stealing someone else's thunder.  Or maybe their lunch from the office break room fridge.  And much like never accepting responsibility for anything that goes awry; the administration is quick to message another's work as their own and take credit and recognition for someone else's efforts.  All in the name of benefiting from unearned achievements passed-off as their own.  

Nothing new under the sun; we've all been to this rodeo before..... 

The Big Beautiful Bill

The Big Beautiful Bill is back.

In the run-up to the election candidate Trump and Congressional Republicans made multiple promises to cut multiple taxes for multiple constituencies.  They cannot deliver on all of it as a consequence of a $4.5 trillion limit on the amount of money the federal budget can devote over the next decade to tax cuts. So, if you're looking forward to tax-free tips, tax-free Social Security, tax-free overtime pay and state and local tax (SALT) deductions something is gonna give.

First-off, if the GOP-controlled Congress wants to simply reauthorize the last round of tax cuts implemented during Trump 1.0 that will account for almost all of the $4.5 trillion cap leaving roughly $300 billion for everything else. 

Secondly, the GOP plan is contingent-upon an additional $2 trillion in spending cuts.  Anything less than that and the tax cuts are jeopardized.

Source: Committee for a Responsible Federal Budget | Not all proposed tax cuts are shown. | By The New York Times

 The non-partisan Committee for a Responsible Government has tallied these estimates for the next decade :

• At least $100 billion not to tax tips 
  

• At least $250 billion not to tax overtime

• At least $550 billion to lower taxes on Social Security benefits

• At least $200 billion to increase the deduction for state and local taxes

The challenge is that the sum total of these promises blows-up the budget.  Sure, Congress could end the subsidy for electric vehicles and scratch together something from that.  The trouble is that's all it is.  Scratch.  Chump change in a voluminous budget.  

Senate Republicans have floated the notion that if Congress simply reauthorize the Trump 1.0 tax cuts it doesn't cost anything. Since the old Trump tax cuts are currently in effect then maintaining the status quo costs nothing.  It is free.  Or at least that is the thinking.  If you consider that really thinking.  Just between you and me I know this brilliant thinking will blow-up the deficit and balloon the debt that any rational economist would tell you is already too large.  But I digress. 

Meanwhile, the debt ceiling looms large.  The tax cuts expire at the end of the year.  Hard deadlines make for hard work.  Time will tell.

Theater At The DOGE

I asked ChatGPT: 

How much budget savings so far from Musk's Department of Government Efficiency?

As of March 2, 2025, the Department of Government Efficiency (DOGE), let by Elon Musk, reported the cancellation of 128 contracts recently, resulting in approximately $60 million in savings.  Since Its inception, DOGE reports terminating over 3,000 wasteful contracts.

However, analyses by external organizations have raised questions about these reported savings.  An NPR investigation found discrepancies in DOGE's claimed savings, suggesting potential overstatements. 

Additionally, data from DOGE's "Wall of Receipts" indicates that nearly 40% of the cancelled contracts are expected to yield no actual savings. 

In specific instances, DOGE identified inefficiencies in software licensing.  For example, the General Services Administration (GSA) reportedly held 37,000 WinZip licenses for 13,000 employees, leading to a claimed $9.6 million in savings after addressing the surplus.

While DOGE reports significant contract cancellations and some specific savings, external evaluations suggest that the actual budgetary impact may be less substantial than claimed.

Despite these efforts, the reported savings represent a fraction of DOGE's ambitious goal to cut $2 trillion in federal spending by July 4, 2026. 

The notion that Elon Musk and his government efficiency apparatchiks can bring down the debt is a tall order.  To be clear, I take no issue with rooting-out waste fraud and abuse; just give the chainsaw schtick and lame theatrics a rest.  

At this particular moment in time our outstanding debt stands at $36 trillion (give or take).  Closing a handful of government agencies and laying-off government workers makes for great theater but it isn't gonna get the job done.  The savings are much, much too small to achieve the stated goal. Anybody who actually believes nibbling around the edges like this will fix the real problem is engaging in what I call magical wishful thinking.

You see, just like a household budget that has gotten out of control, fixing this problem is going to require hard work and making difficult choices.  

You're probably thinking - Like what?

Like raising taxes, cutting defense spending or reforming Social Security and Medicare.  Or all of the foregoing.  These are unpopular choices for good reason.  Nobody wants to do them.  They're like going to the theater to watch a crappy production.  Nobody wants to do that.  The people demand good theater.  Bread and circuses if you will.  I might be wrong, but I happen to wonder if the current collection of clowns places a higher priority on theater and spectacle than hard work.

So, are we going to continue to be witness to the slow roll reality TV performance or get serious about fixing the real problem for the next couple of generations.

Anyone care to make a friendly wager?

The Big Beautiful Bill

Sure, I know that some of you reading this have been dazzled by Elon Musk and The DOGE.  I hate to break it to you but that's just theater.  Entertainment to distract the masses from serious budget stuff.  

Winter is going to turn to spring and spring will turn to summer.  And American families are going to turn to vacation travel.  And when they visit a national park, or battlefield or monument and nobody's picking-up the trash, cleaning the restrooms or a campground is closed the people will be grumpy.  And they'll look at that twitchy billionaire from South Afrika and say:  WTF.  

 

I'll make it simple for you.

Here you go folks.

The House budget.  

A Big Beautiful Bill.

Almost $3 trillion of Big Beautiful Red Ink in that mamajama.

 

 

 

DOGE Update

In the aftermath of the inauguration of Donald Trump we've witnessed the exiling of DOGE Bro Vivek Ramaswamy and Elon Musk's waffling on his promise of $2 trillion of government spending cuts.   

I have two DOGE updates:  Privacy and Theatrics.

Last week we learned that a federal judge halted access to the US Treasury's payment systems by Elon Musk's team of DOGE apparatchiks. The order came in response to a lawsuit filed by 19 state attorneys general accusing the president of failing to faithfully execute the nation's laws when he granted DOGE unfettered access to the federal payments system.

The White House had previously defended the DOGE's access as READ-ONLY, yet in the ruling the judge specifically invoked the Watergate Era Privacy Act of 1974, which states:  no agency shall disclose any record which is contained in a system of records by any means of communication to any person or to another agency.  

Let me begin by making abundantly clear I'm all about rooting out waste, fraud and abuse.  I embrace audits that adhere to Generally Accepted Accounting Principles. I believe in accountability. I place a high value on transparency. I hold close Reagan's admonition to Trust, But Verify.  Privacy is at the top of my list; which happens to be why I applaud the court ruling.

I would not voluntarily release my tax returns, charitable contributions, investment account and banking information, social security records, medicare details (including health records) or any other personal identifiers or privileged information to anyone without my prior written consent and assurance this information would be safeguarded.  

Rooting out fraud while simultaneously erecting appropriate firewalls to protect the integrity of a citizen's privileged personalty are not mutually exclusive. In my previous life my employer guarded this same information on behalf of their clients as if it were the Crown Jewels.  A security breach was always on the short list of of existential risks facing any financial services firm.  

To-wit, a couple of my MAGA pals think I'm nuts.  I'm overreacting.  Between you and me, for a couple of guys who howl at every opportunity about their impeccable conservative credentials; privacy ranks close to the bottom of priorities.

Go figure.  

Considering that Mr. Musk hasn't passed senate review or approval, has not received a security clearance, issued written ethics guidelines, or defined for anybody what he and his team intend to do with this data; naturally many of us have concerns.  Will they safeguard your identity?  Share it with whomever they please?  Retain it indefinitely?  Sell it?  Blackmail people with it? 

The question to you, dear readers, is the defense of personal information unreasonable?  

Would YOU voluntarily release the foregoing to Elon Musk without reservation?

Ponder that.

Meanwhile, DOGE has dismantled a Federal agency - USAID.  I've substituted a WIKI web link as the official .Gov website has been disappeared.  Meanwhile the name of the agency has been stricken from the building.  

Image - NBC

To be clear, the loss of USAID has no direct impact on my life so I don't have a dog in this fight.  Although I wonder if this signifies that we've thrown-in the towel on soft-power influence in response to stuff like Communist Red China's Belt and Road initiative, or North Korean and Soviet designs on African natural resources. Time will tell.

Meanwhile, I want to highlight the messaging power of what is known in political vernacular as a Play to the Base*  

Both Democrats and Republicans engage in these dramatic flourishes; and in this instance Elon Musk is championed for slaying the Great White Whale of foreign aid corruption.  Apologies for the Herman Melville metaphor but Trump is a master of this sort of theater.  

Consider this:

As crazy as it sounds opinion polling suggests that a plurality of Americans believe anywhere from 25 to 31 percent of the entire federal budget is foreign aid.  Wasteful fraud and abuse.  Every last damn dollar going to ungrateful heathens.  Naturally, that belief is fallacious because it is opinion and not fact.  US foreign aid (economic, nutrition, health and military) has historically hovered around 1% of the entire US budget; with USAID a small part of that total.  I've blogged about this before.

2023 aid managed by USAID totaled about $40 billion. You and I would likely agree that this sounds like a king's ransom to an average American; correct?  Yet in the grand scheme of our federal budget it is pocket change in the government's couch cushions.

If you unpack the numbers in the context of the entirety of the federal budget the savings amounts to 2% of Elon Musk's $2 trillion savings boast. 

Considering the context of erasing an entire agency; and assuming Washington never feeds another hungry Sub-Saharan child, vaccinates any heathens suffering an epidemic or offers any similar disaster aid these savings become basically permanent.  I take no issue that they are savings.  They are permanently exceedingly small.  

Even so, in the eyes of Trump supporters Musk is a Giant Killer.  

The melodrama of sweeping furloughs of slothful and ungrateful government workers, the erasure of an entire agency along with the trope of chiseling the name from the facade of the empty building is as close as you can get to modern-day angry Jesus giving the money changers the heave-ho from the temple.  

The theatrics are priceless.

So, let's agree this scalp in Musk's belt in only the first three weeks of the administration is yeoman's work. Or is it like the Battle of the Greasy Grass?  Spoiler Alert: The plains Indians took many scalps and still lost the war.

Ask yourself this:

Is the DOGE willing to hunt and scalp the prize 800 pound gorilla?

Or the administration to settle on collecting some small scalps for Reality TV* and forfeit the war?

Only time will tell.

Pro Tip Alert!  Be sure to stock-up on popcorn and adult beverages.  Both a Budget Reconciliation and the Debt Ceiling are in the on-deck circle.  I'm told it's gonna be easy peasy as Trump controls both Houses of Congress.