TL;DR: The Department of Government Efficiency isn't just cutting budgets. It's merging the federal government's most sensitive databases (IRS tax returns, Social Security records, Medicare and Medicaid data, veterans' medical files, immigration records) into a single cross-agency system. Peter Thiel's Palantir is building the infrastructure. A Trump executive order called "Stopping Waste, Fraud, and Abuse by Eliminating Information Silos" provides legal cover. At least 12 federal lawsuits allege violations of the Privacy Act of 1974. DOGE staffers have already been caught using backpacks full of laptops to simultaneously access databases across agencies.
The Executive Order Nobody Talked About
While headlines focused on DOGE's Social Security data scandal, a quieter move laid the groundwork for something bigger. President Trump signed an executive order titled "Stopping Waste, Fraud, and Abuse by Eliminating Information Silos," directing federal agencies to share data across departments "to the maximum extent consistent with law."[1]
Elon Musk framed it simply: "The biggest vulnerability for fraud comes from the fact that government databases don't talk to each other."
That sounds reasonable. Who's against stopping fraud?
But here's what "eliminating information silos" actually means: merging your tax returns with your immigration file. Linking your Medicaid records to your Social Security history. Cross-referencing your VA medical records with IRS data. Creating a single profile of every American: searchable, queryable, shareable.
The databases were kept separate on purpose. The Privacy Act of 1974 was written specifically to prevent this. Fifty years of privacy law, undone by an executive order.
What DOGE Has Accessed
Here's the agency-by-agency breakdown of what DOGE staffers have gotten their hands on:[2][3]
- IRS (Treasury): Tax returns for hundreds of millions of Americans. At least one DOGE employee had "edit" access to payment systems that process trillions in government transactions
- Social Security Administration: Earnings histories for 350+ million Social Security numbers. A whistleblower alleged data on 300+ million Americans was copied to unsecured cloud servers
- Centers for Medicare and Medicaid Services (HHS): Payment and contracting systems containing Social Security numbers, adjusted gross income, taxable benefits, filing status, and dependent information
- Veterans Affairs: Military records and health information
- Office of Personnel Management: Background checks, medical records, bank account information, and biometric data (including fingerprints and facial recognition) for federal employees
- Consumer Financial Protection Bureau: Sensitive financial data on consumer complaints and enforcement actions
- Department of Homeland Security: Immigration records via the USCIS "data lake" and SAVE citizenship verification system
- Departments of Commerce, Education, Energy, Labor, and Transportation: Various systems with unblocked DOGE access
That's not fraud detection. That's a dossier on every person in America.
Enter Palantir
Building a cross-agency database of this scale requires serious infrastructure. That's where Peter Thiel's Palantir comes in.[4]
Palantir's software platform (called "Foundry") serves as the central access point for the merged data. It doesn't necessarily store everything in one location. Instead, it creates interoperable queries across multiple agencies, letting authorized users search IRS records, immigration files, and Social Security data from a single interface.
According to reporting by CNN and Democracy Now!, DOGE leadership within the IRS orchestrated a "hackathon" to design what they called a "mega API": a central access point allowing privileged users to view all agency data at once.[5]
Palantir already holds a $30 million contract with ICE. The company's CEO, Alex Karp, has positioned Palantir as "an operating system for the entire government." That's not marketing hype anymore: it's the plan.
And it's not just immigration enforcement. IRS data, including the most recent addresses of workers filing with ITINs (Individual Taxpayer Identification Numbers, used by immigrants instead of Social Security numbers), has been fed into the system. Voting records from states including Pennsylvania and Florida have been downloaded. Immigration records from anyone who has applied through USCIS portals are included.
Backpacks Full of Laptops
A whistleblower described the technical methods DOGE staffers used to bridge agency databases, and it's exactly as alarming as it sounds.[6]
According to Rep. Gerry Connolly (D-VA), ranking member of the House Oversight Committee, DOGE engineers "tried to create specialized computers for themselves that simultaneously give full access to networks and databases across different agencies." When that didn't work, they assembled "backpacks full of laptops, each with access to different agency systems."
One laptop connected to Treasury. Another to SSA. A third to DHS. Sit them side by side, and you've got your cross-agency database: no formal authorization, no Privacy Act compliance, no audit trail.
"It's terrifying. The Privacy Act prevents this," said John Davisson of the Electronic Privacy Information Center.[7]
The Fraud That Wasn't
DOGE justified all of this with one word: fraud.
But the numbers tell a different story. When SSA deployed DOGE's anti-fraud tools on actual benefit claims, the results were embarrassing: only 2 out of 110,000 claims were flagged as having "a high probability of being fraudulent." The tool slowed retirement claim processing by 25%.[1]
The voter fraud hunt produced similar results. Antonio Gracias (Elon Musk's close associate running SSA operations) claimed at a Wisconsin rally that data matching found "well over a thousand" noncitizens who voted. The actual number of referrals for prosecution: 57 cases described as "may or may not have voted."
Two results out of 110,000 claims. Fifty-seven "maybes" out of millions of voter records. That's the fraud epidemic requiring the largest data consolidation in American history.
12+ Lawsuits and Counting
The legal pushback has been swift. At least 12 federal lawsuits allege violations of the Privacy Act of 1974, challenging DOGE's data access on three grounds:[1][8]
- Need to know: DOGE employees (many of them young engineers with no government experience) lacked legitimate reasons to access individual records
- Routine use: Sharing data between agencies requires that disclosures be established as "routine uses" compatible with the original purpose of collection. Tax returns were collected for tax enforcement, not immigration raids
- Security safeguards: Storing data on Cloudflare servers, using backpack-laptop setups, and sharing files via unapproved channels violates federal security requirements
The Electronic Privacy Information Center (EPIC) filed suit against OPM, Treasury, and DOGE itself. Democracy Forward won a temporary restraining order blocking DOGE from SSA data, which the Supreme Court later reversed. A federal judge temporarily curbed DOGE's access to Treasury's Bureau of Fiscal Service data.
Courts have blocked some access. But the infrastructure is already being built.
What's Already Gone Wrong
This isn't theoretical risk. The damage has already started:[3][9]
- SSA data breach: DOGE staffers stored personal data on unapproved Cloudflare servers and signed an agreement to share SSA data with an advocacy group seeking to overturn elections
- USAID doxxing: DOGE employees with edit access to USAID databases contributed to the identification and harassment of foreign aid workers
- NRO data exposure: DOGE published budget and staffing information from the National Reconnaissance Office (America's spy satellite agency) on its public website
- SSA Chief Data Officer resignation: Chuck Borges resigned in August 2025 after alleging 300+ million Americans' data was copied to unsecured cloud servers
Every breach involved data that was supposed to stay siloed. The "information silos" weren't a bug: they were the security model.
Why Information Silos Exist
The Privacy Act of 1974 didn't create "information silos" by accident. It was a direct response to Watergate: to Richard Nixon using IRS audits against political enemies and FBI surveillance against civil rights leaders.
Congress decided that the government shouldn't be able to combine your tax returns with your medical records with your immigration file. Not because it's inefficient. Because it's dangerous.
Here's what a merged federal database enables:
- Cross-reference ITIN tax filings with immigration records to identify and deport people
- Match Social Security data with voter rolls for political targeting
- Link Medicaid enrollment to immigration status for benefit denial
- Combine VA medical records with employment data for unknown purposes
- Use OPM biometrics (fingerprints, facial recognition) for surveillance beyond federal employment
Some of these are already happening. ICE is using IRS address data from ITIN filings to locate immigrants. DHS is expanding the SAVE system into a "centralized national citizenship tool" linked to Social Security records and driver's license information.[4]
What You Can Do
Get an IRS Identity Protection PIN
Prevents unauthorized tax filings using your SSN. Apply at irs.gov. Takes five minutes.
Freeze Your Credit at All Three Bureaus
With SSA and IRS data floating around, your SSN is exposed. Freeze at Equifax, Experian, and TransUnion. It's free.
Monitor Your SSA Account
Create a my Social Security account and set up login notifications. Watch for unauthorized benefit changes or address updates.
Support the Lawsuits
Organizations like EPIC, Democracy Forward, and the ACLU are fighting DOGE's data grabs in court. They accept donations and need public pressure behind them.
References
- Brookings Institution - Privacy under siege: DOGE's one big, beautiful database
- Harvard Ash Center - Understanding DOGE and Your Data
- NPR - How DOGE improperly accessed and shared Social Security data
- Democracy Now! - Palantir helps DOGE build master database to surveil, track immigrants
- CNN - Elon Musk's DOGE team is building a master database for immigration enforcement
- Nextgov/FCW - DOGE is building a 'master database' of sensitive information
- Electronic Privacy Information Center - DOGE Privacy Act lawsuit filings
- Democracy Forward - Stopping DOGE's unlawful seizure of Americans' Social Security data
- FedScoop - DOGE likely violated order on Social Security data, court filing shows
Published: February 9, 2026