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Federal judge won’t immediately block Elon Musk or DOGE from federal data or worker layoffs


Delaware legislators have proposed a new bill designed to help protect founder-led companies from legal action by shareholders. The bill, introduced on Monday, was drafted by a law firm that represents Tesla and Elon Musk, CNBC reports, citing an anonymous source. If approved, the legislation could potentially open the door for the reintroduction of Musk’s 2018 compensation package, which was blocked by a Delaware court following a lawsuit filed by a Tesla stockholder.

Nike is joining forces with Kim Kardashian's SKIMS shapewear to attract more women — and revive its stalling sales. They're collaborating on a new brand called NikeSKIMS to "disrupt the global fitness and activewear industry with best-in-class innovation" and reclaim market share from newer activewear rivals, including Lululemon and Alo. SKIMS, meanwhile, is exploding: It's valued at more than $4 billion, expanded into menswear, and has signed sponsorship pacts with the NBA, WNBA, and Team USA.

 KFC is moving its corporate headquarters out of Kentucky as part of a consolidation plan in the U.S. by parent company Yum Brands. About 200 corporate workers will relocate to Yum's two main locations in Plano, Texas, and Irvine, California, according to a company statement. CEO David Gibbs says the changes will "better serve our customers, employees, franchisees and shareholders." Yum shares have risen roughly 17% over the past month, driven by better-than-expected sales, particularly at Taco Bell.

A federal judge refused Tuesday to immediately block billionaire Elon Musk and the Department of Government Efficiency from accessing government data systems or participating in worker layoffs.

U.S. District Judge Tanya Chutkan found that there are legitimate questions about Musk’s authority but said there isn’t enough evidence of grave legal harm to justify a temporary restraining order.

The decision came in a lawsuit filed by 14 Democratic states challenging DOGE’s authority to access sensitive government data. The attorneys general argued that Musk is wielding the kind of power that the Constitution says can be held only by those elected or confirmed by the Senate.

The Trump administration has maintained that layoffs are coming from agency heads and asserted that despite his public cheering of the effort, Musk isn’t running DOGE’s day-to-day operations himself.

DOGE has tapped into computer systems across multiple agencies with the blessing of President Donald Trump, digging into budgets and searching for what he calls waste, fraud, and abuse, even as a growing number of lawsuits allege DOGE is violating the law.

Chutkan recognized the concerns of the states, which include New Mexico and Arizona.

“DOGE’s unpredictable actions have resulted in considerable uncertainty and confusion,” she wrote. Their questions about Musk’s apparent “unchecked authority” and lack of congressional oversight for DOGE are legitimate and they may be able to successfully argue them later, she found.

Still, at this point, it remains unclear exactly how DOGE’s work will affect the states, and judges can only issue orders to block specific, immediate harms, she found.

Chutkan, who was nominated by Democratic President Barack Obama, previously oversaw the now-dismissed criminal election interference case against Trump in Washington, D.C.

The state’s lawsuit seeks to bar DOGE from the federal Office of Personnel Management and the Departments of Education, Labor, Health and Human Services, Energy, Transportation, and Commerce.

In other DOGE lawsuits, two other judges in Washington have similarly declined to immediately block DOGE from access to agency systems. A federal judge in New York has blocked DOGE’s access to Treasury Department data for now.

The Social Security Administration‘s acting commissioner has stepped down from her role at the agency over Department of Government Efficiency requests to access Social Security recipient information, according to two people familiar with the official’s departure who were not authorized to discuss the matter publicly.

Acting Commissioner Michelle King’s departure from the agency over the weekend — after more than 30 years of service — was initiated after King refused to provide DOGE staffers at the SSA with access to sensitive information, the people said Monday.

The White House has replaced her as acting commissioner with Leland Dudek, who currently works at the SSA, the people said.

White House spokesperson Harrison Fields released a statement Monday night saying: “President Trump has nominated the highly qualified and talented Frank Bisignano to lead the Social Security Administration, and we expect him to be swiftly confirmed in the coming weeks. In the meantime, the agency will be led by a career Social Security anti-fraud expert as the acting commissioner.”

Fields added, “President Trump is committed to appointing the best and most qualified individuals who are dedicated to working on behalf of the American people, not to appease the bureaucracy that has failed them for far too long.”

King’s exit from the administration is one of several departures of high-ranking officials concerned about DOGE staffers’ potential unlawful access to private taxpayer information.

DOGE has accessed Treasury payment systems and is attempting to access Internal Revenue Service databases.

Since Republican President Donald Trump has retaken the White House, his billionaire adviser Elon Musk has rapidly burrowed deep into federal agencies while avoiding public scrutiny of his work through the DOGE group.

Nancy Altman, president of Social Security Works, an advocacy group for the preservation of Social Security benefits, said of DOGE’s efforts that “there is no way to overstate how serious a breach this is. And my understanding is that it has already occurred.”

“The information collected and securely held by the Social Security Administration is highly sensitive,” she said. “SSA has data on everyone who has a Social Security number, which is virtually all Americans, everyone who has Medicare, and every low-income American who has applied for Social Security’s means-tested companion program, Supplemental Security Income.”

“If there is an evil intent to punish perceived enemies, someone could erase your earnings record, making it impossible to collect the Social Security and Medicare benefits you have earned.”

The future of Social Security has become a top political issue and was a major point of contention in the 2024 election. About 72.5 million people, including retirees, disabled people, and children, receive Social Security benefits.

President Donald Trump's administration targeted on Tuesday bank regulators, rocket scientists, and tax enforcers for dismissal, as a federal judge gave the green light for its unprecedented remaking of the U.S. civil service, at least for now.
With Trump's blessing and praise, tech billionaire Elon Musk's Department of Government Efficiency, or DOGE, has swept through federal agencies slashing thousands of jobs since Trump became president last month and put Musk, his biggest campaign donor, in charge of a drastic overhaul of government.
Trump claimed without evidence on Tuesday the endeavor would save "hundreds of billions of dollars" and heaped praise on Musk as a patriot. Musk's team has said it has saved $55 billion so far, less than 1% of the annual $6.7 trillion federal budget.
The campaign has delighted Republicans for culling a federal workforce they view as bloated, corrupt and insufficiently loyal to Trump, while also taking aim at government agencies that regulate big business and collect taxes.
Democratic critics in turn have raised concerns that Trump is exceeding his constitutional authority and hacking away at popular and critical government programs at the expense of legions of middle-class families.
They complain that Musk has operated as an unchecked freelance operator who has seized access to sensitive government data.
On Tuesday the downsizing extended to NASA, where 1,000 new hires including rocket scientists were expected to be laid off, according to two people familiar with the U.S. space agency's plans. More cuts were deemed possible.
"People are scared and not speaking up to voice dissent or disagreement," said one employee at the 18,000-person agency who spoke on condition of anonymity.
Musk said the complaints were a sign that DOGE was working.
"All we're really try to do here is restore the will of the people through the president and what we're finding is that there's an unelected bureaucracy ... that is implacably opposed to the president and the cabinet," Musk told Fox News in an interview recorded on Friday and aired on Tuesday.
The White House has not said how many people it plans to fire and has given no numbers on the mass layoffs. The information to date has come from employees of federal agencies.
The Office of Personnel Management, which manages the civil service, set a deadline on Tuesday for all government departments to provide a list of probationary employees who have been terminated and those sought to be retained, an OPM spokesperson said.
It remained unclear whether the numbers would be disclosed.

COURT BATTLES

About 20 lawsuits filed in various federal courts challenging Musk's authority have seen mixed results.
In one of the more consequential cases, U.S. District Judge Tanya Chutkan on Tuesday denied a request to place a temporary hold on DOGE. She instead allowed the campaign to continue while underlying litigation played out.
But Chutkan raised flags about Musk's authority as an independent operator, writing, "Plaintiffs legitimately call into question what appears to be the unchecked authority of an unelected individual and an entity that was not created by Congress and over which it has no oversight."
Congressional Democrats said oversight committee requests for information had gone unanswered, calls to agency officials were not being returned, and details of new policies essential for constituent casework were difficult to come by.
"This is not normal, at all," one Senate committee aide said about the lack of response.
Trump asserted even more executive authority on Tuesday, issuing an order to rein in independent agencies and claiming presidential supervision and control of the entire executive branch except for the Federal Reserve.
The White House identified the Federal Trade Commission (FTC), Federal Communications Commission (FCC), and Securities and Exchange Commission (SEC) as agencies that "have exercised enormous power over the American people without presidential oversight."
The job-cutting continued apace.
Senior officials at the IRS identified at least 7,500 employees for dismissal, according to a person familiar with the matter.
The Federal Deposit Insurance Corporation, which oversees banks, said it had fired an unknown number of new hires, according to an email seen by Reuters.
Layoffs were also expected at the Federal Emergency Management Agency, which handles flood insurance and disaster response, as well as its parent, the Department of Homeland Security, sources said.
Among the workers swept up in the overhaul of dozens of agencies are those reviewing Musk's brain implant company Neuralink.
Musk's role has raised questions about the fate of at least 20 federal investigations and regulatory actions affecting his business empire, Reuters reported last month.
On Tuesday, Trump said he would not let Musk participate in any space-related government decisions.

There’s the executive in a U.S. supply-chain company whose voice breaks while facing the next round of calls telling employees they no longer have jobs.

And a farmer in Missouri who grew up knowing that a world with more hungry people is a more dangerous world.

And a Maryland-based philanthropy, founded by Jews who fled pogroms in Eastern Europe, is shutting down much of its more than 120-year-old mission.

Beyond the impact of the Trump administration’s dismantling of the U.S. Agency for International Development, some 14,000 agency employees and foreign contractors as well as hundreds of thousands of people receiving aid abroad — many American businesses, farms, and nonprofits— say the cutoff of U.S. money they are owed has left them struggling to pay workers and cover bills. Some face financial collapse.

U.S. organizations do billions of dollars of business with USAID and the State Department, which oversee more than $60 billion in foreign assistance. More than 80% of companies that have contracts with USAID are American, according to aid data company DevelopmentAid.

President Donald Trump stopped payment nearly overnight in a Jan. 20 executive order freezing foreign assistance. The Trump administration accused USAID’s programs of being wasteful and promoting a liberal agenda.

USAID Stop-Work, a group tracking the impact, says USAID contractors have reported that they laid off nearly 13,000 American workers. The group estimates that the actual total is more than four times that.

Here are stories of some Americans whose livelihoods have been upended:

Crop innovation work facing closures

At the University of Illinois Urbana-Champaign, a lab that works with processors, food manufacturers, and seed and fertilizer companies to expand soybean usage in 31 countries, is set to close in April unless it gets a last-minute reprieve.

Peter Goldsmith, director and principal investigator at the Soybean Innovation Lab, said the group has helped open international markets to U.S. farmers and made the crop more prevalent in Africa.

For Goldsmith, that kind of steady partnership built on trade and U.S. foreign aid offers the best way to wield U.S. influence, he said.

Goldsmith said innovation labs at other land grant universities also are closing. Without them, Goldsmith worries about what will happen in the countries where they worked — what other actors may step in, or whether conflict will result.

“It’s a vacuum,” he said. “And what will fill that vacuum? It will be filled. There’s no doubt about it.”

A refugee mission is imperiled

For nonprofits working to stabilize populations and economies abroad, the United States was not only the biggest humanitarian donor but an inextricable part of the whole machinery of development and humanitarian work.

Among them, HIAS, a Jewish group aiding refugees and potential refugees, is having to shut down “almost all” of its more than 120-year-old mission.

The Maryland-based philanthropy was founded by Jews fleeing persecution in Eastern Europe. Its mission in recent decades has broadened to include keeping vulnerable people safe in their home country so they don’t have to flee, said HIAS President Mark Hetfield.

Hetfield said the first Trump administration saw the wisdom of that effort. Has experienced some of its biggest growth during Trump’s first term as a result.

But now, Trump’s shutdown of foreign assistance severed 60% of HIAS’s funding, overnight. The group immediately started furloughs among its 2,000 direct employees, operating in 17 states and 20 countries.

The administration calls it a “suspension,” rather than a termination, Hetfield said. “But we have to stop paying our leases, stop paying our employees.”

“It’s not a suspension,” Hetfield said. “That’s a lie.”

Tracking USAID’s effectiveness may fall by the wayside

Keith Ives, a Marine veteran who fell in love with data, has a small Denver-area nonprofit that brought a numbers-crunching relentlessness to his USAID-funded mission of testing the effectiveness of the agency’s programs.

For Ives’ teams, that’s included weighing and measuring children in Ethiopia who are getting USAID support, testing whether they’re chunkier and taller than kids who aren’t. (On average they are.)

Last week, Ives was planning to tell half his full-time staff of 28 that they would be out of a job at the end of the month. Ives’ Causal Design nonprofit gets 70% of its work from USAID.

At first, “it was an obsession over how can I fix this,” said Ives, who described his anxiety in the first days of the cutoff as almost paralyzing. “There must be a magic formula. ... I’m just not thinking hard enough, right?’'

Now, Ives goes through all-staff call after call, breaking bad news on the impact of USAID’s shutdown. Being transparent with them, it turned out, was the best he could do.

He looks at the U.S. breaking partnerships and contracts in what had been USAID’s six-decade aim of boosting national security by building alliances and crowding out adversaries.

For the U.S. now, “I think for years to come, when we try to flex, I think people are going to go, ‘Yeah, but like, remember 2025?’” Ives said. “‘You could just be gone tomorrow.’”

A supplier faces ruin

It takes expertise, cash flow, and hundreds of staff to get USAID-funded food and goods to remote and often ill-regulated places around the globe.

For U.S. companies doing that, the administration’s only follow-up to the stop-work orders it sent out after the money freeze have been termination notices — telling them some contracts are not only paused but ended.

Almost all of those companies have been kept silent publicly, for fear of drawing the wrath of the Trump administration or endangering any court challenges.

Speaking anonymously for those reasons, an executive of one supply-chain business that delivers everything from hulking equipment to food describes the financial ruin facing those companies.

While describing the next round of layoff calls to be made, the executive, who is letting hundreds of workers go in total, sobs.

Farmers may lose market share

Tom Waters, a seventh-generation farmer who grows corn, soybean, and wheat near Orrick, Missouri, thinks about his grandfather when he reads about what is happening with USAID.

“I’ve heard him say a hundred times, ’People get hungry, they’ll fight,’” Waters said.

Feeding people abroad is how the American farmer stabilizes things across the world, he says. “Because we’re helping them keep people’s bellies full.”

USAID-run food programs have been a dependable customer for U.S. farmers since the Kennedy administration. Legislation mandates U.S. shippers get a share of the business as well.

Even so, American farm sales for USAID humanitarian programs are a fraction of overall U.S. farm exports. And politically, U.S. farmers know that Trump has always taken care to buffer the impact when his tariffs or other moves threaten demand for U.S. farm goods.

U.S. commodity farmers generally sell their harvests to grain silos and co-ops, at a per bushel rate. While the impact on Waters’ farm is not yet clear, farmers worry any time something could hit demand and prices for their crops or give a foreign competitor an opening to snatch away a share of their market permanently.

Still, Waters doesn’t think the uncertainty is eroding support for Trump.

“I really think people, the Trump supporters are really going to have patience with him and feel like this is what he’s got to do,” he said.

U.S. President Donald Trump said on Tuesday he intends to impose auto tariffs "in the neighborhood of 25%" and similar duties on semiconductors and pharmaceutical imports, the latest in a series of measures threatening to upend international trade.
On Friday, Trump said levies on automobiles would come as soon as April 2, the day after members of his cabinet are due to deliver reports to him outlining options for a range of import duties as he seeks to reshape global trade.
Trump has long railed against what he calls the unfair treatment of U.S. automotive exports in foreign markets.
The European Union, for instance, collects a 10% duty on vehicle imports, four times the U.S. passenger car tariff rate of 2.5%. The U.S., though, collects a 25% tariff on pickup trucks from countries other than Mexico and Canada, a tax that makes the vehicles highly profitable for Detroit automakers.
EU trade chief Maros Sefcovic will meet with U.S. counterparts - Commerce Secretary Howard Lutnick, Trump's nominee to be U.S. Trade Representative Jamieson Greer, and National Economic Council director Kevin Hassett - in Washington on Wednesday to discuss the various tariffs threatened by Trump.
Asked whether the EU could avoid reciprocal tariffs he proposed last week, Trump repeated his claim that the EU had already signaled it would lower its tariffs on U.S. cars to the U.S. rate, although EU lawmakers have denied doing so.
He said he would press EU officials to increase U.S. imports of cars and other products.

PHARMA, CHIPS DUTIES

Trump told reporters at his Mar-a-Lago estate in Florida on Tuesday that sectoral tariffs on pharmaceuticals and semiconductor chips would also start at "25% or higher", rising substantially over the course of a year.
Item 1 of 2 New trucks crowd a parking lot at the GM assembly plant in Oshawa, Ontario, Canada September 24, 2019. REUTERS/Chris Helgren/File Photo
He did not provide a date for announcing those duties and said he wanted to provide some time for drug and chip makers to set up U.S. factories so that they could avoid tariffs.
Trump said he expected some of the biggest companies in the world to announce new investments in the United States in the next couple of weeks. He provided no further details.
Since his inauguration four weeks ago, Trump has imposed a 10% tariff on all imports from China, on top of existing levies, over China's failure to halt fentanyl trafficking. He also announced, and then delayed for a month, 25% tariffs on goods from Mexico and non-energy imports from Canada.
He has also set a March 12 start date for 25% tariffs on all imported steel and aluminum, eliminating exemptions for Canada, Mexico, the European Union, and other trading partners. Trump also announced, opens new tab that these tariffs would apply to hundreds of imported downstream products made of steel and aluminum, from electrical conduit tubing to bulldozer blades.
Last week, he directed his economic team to devise plans to impose reciprocal tariffs that match the tariff rates of every country product-by-product.

SHELVED CAR TARIFFS

An auto import tariff of 25% would be a game-changer for a global auto industry that is already reeling from uncertainty caused by Trump's tariff drama.
A similar drama played out in 2018 and 2019 during Trump's first term when the Commerce Department conducted a national security investigation into auto imports and found that they weakened the domestic industrial base. Trump had threatened car tariffs of 25% at that time, but ultimately took no action, allowing the tariff authority from that probe to expire.
However some of the research that went into the 2018 investigation may be reused or updated as part of a new automotive tariff effort.
Amazon has discontinued its Inspire video and photo platform, initially intended as a TikTok-style showcase for new products when it launched on the e-commerce giant's mobile app in 2022. The company confirmed the move, instead highlighting its newer features like its artificial intelligence chatbot Rufus, which debuted last year. Inspire sought to capitalize on TikTok's rollout of in-app shopping features, though the platform sparked a backlash among some influencers over its rates for sponsored content.
There's a new king in the world of exchange-traded funds. With inflows of $23 billion so far in 2025, Vanguard’s S&P 500 ETF has grown to $632 billion in assets, surpassing State Street’s SPDR S&P 500 ETF Trust — known as SPY, and previously the largest ETF — which holds $630 billion. While the two funds are largely identical products, investors have increasingly flocked to Vanguard, given its lower fees. As Bloomberg notes, this reflects "cost-conscious times" in the $11 trillion industry.
Tech startup Humane is pulling its much-maligned AI Pin devices from the market, with HP set to acquire much of the company's business for $116 million and absorb a majority of its staff. Humane attracted substantial buzz for its signature artificial-intelligence-powered wearables, though poor reviews and safety concerns turned the product's 2024 launch into an instant cautionary tale. The pins will effectively cease to function at the end of the month, the company said.
Former OpenAI chief technology officer Mira Murati has unveiled her next venture. Called Thinking Machines Lab, the new company will aim to make artificial intelligence systems "more widely understood," with greater focus on human-AI collaboration, according to a blog post. Murati, who stepped down from OpenAI last fall, follows fellow OpenAI alumnus Ilya Sutskever in establishing a rival AI startup. She will serve as the company's CEO.
Grok, Paper, Scissors ✂️ Another day, another AI heavyweight stepping into the ring. 🥊 So xAI launched Grok 3 yesterday, and the immediate reaction was predictable: a mix of “this is revolutionary”, “this is barely incremental”, and “this is Musk, so obviously it’s either the future of intelligence or a meme.”

What’s new:
🔹 Performance - xAI claims Grok 3 outperforms GPT-4o and DeepSeek AI R1 on reasoning and coding tasks. It has a “Big Brain” mode, helping with complex step-by-step reasoning, and DeepSearch, which makes AI better at research. Say what you will about Musk, but the man knows how to name things for impact.
🔹 Distribution - Unlike OpenAI and Google, which are focused on enterprise adoption and broad accessibility, Musk is taking a direct-to-consumer approach. Grok 3 is locked behind X Premium+ ($50/month or $350/year). The big question: Can xAI break out of the X/Twitter sandbox, or is this an AI built for a captive audience? Over time, expect Grok to integrate with Tesla, SpaceX, and robotics, further tying AI into Musk’s empire.
🔹 Compute - Grok 3 was trained on 200,000 NVIDIA GPUs using xAI’s Colossus supercomputer, a 10x increase from Grok 2. The Colossus supercomputer is a clear indication that xAI is serious about long-term AI independence—Instead of relying on hyperscalers, Musk is building his own compute stack.

Musk wants AI to be vertically integrated—own the compute (Colossus), own the model (Grok), own the distribution (X/Twitter), and own the monetization (subscriptions). His strategy is control.

Following the release, Twitter/X was flooded with the usual AI tribalism—some celebrating Grok’s performance, others pointing out that xAI conveniently left out OpenAI’s o3 model, which actually scored higher. One of the more measured takes came from Andrej Karpathy, who summarized:
“Grok 3 + Thinking feels somewhere around the state-of-the-art territory of OpenAI's strongest models and slightly better than DeepSeek-R1 and Gemini 2.0 Flash Thinking. Which is quite incredible considering that the team started from scratch ~1 year ago—this timescale to state-of-the-art is unprecedented.”

Grok 3 isn’t just another model launch - it’s a reminder of how fast AI is moving. The time from zero to state-of-the-art is compressing at an unprecedented rate, and that’s a win for customers, a challenge for incumbents, and a race against scale for new entrants.

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