The Hidden Coup: Unraveling Musk and Trump’s Control Over the Federal ‘Plumbing’

In recent days, new reports have surfaced suggesting that key federal government systems—encompassing payments, personnel, and operations—have been illegally seized and centralized under the direct control of Donald Trump and Elon Musk. Although the story has been developing for some time, the broader strategy and implications remain under-discussed in mainstream coverage. As political scientist and technology-studies expert Abraham Newman writes in a Bluesky thread,

“These systems [may] seem arcane and technical but are critical to key operations of the federal government—payment, personnel, and operations. In good times they make the trains run on time, but now they may be exploited for control.”

Below is a comprehensive overview of what is happening, why it matters, and how it could endanger democratic governance in the United States.

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1. How We Got Here

Seizure of Key Systems

• Payment Systems: According to The New York Times, Musk operatives gained unauthorized oversight of the federal payments system, raising alarms about the ability to redirect or even halt funding at will.
• Personnel Systems: Reuters has reported on multiple incidents where government employees were locked out of personnel databases, effectively blocking hiring decisions and reshuffling staff.
• Operational Oversight: WIRED discusses how Musk loyalists appear to have sidelined the General Services Administration (GSA), preventing normal checks on which federal properties are sold or allocated, thereby giving them free rein to move resources to whomever they wish.

While these issues were initially reported in isolation, Newman highlights that they should be viewed together. In his words, “Reporting has seen these as independent ‘lock outs’ or access to specific IT systems. This seems much more a part of a coherent strategy to identify centralized information systems and control them from the top.”

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2. Why Does This Matter?

The Panopticon Effect

Invoking philosopher Michel Foucault’s notion of the “panopticon,” Newman warns of the chilling consequences: “If you let people know that they are being watched from a central position they are more likely to obey.” By hinting that dissenters can be tracked and punished, the administration can quietly enforce compliance among government workers and even private citizens who depend on federal programs.

The Chokepoint

Access to financial levers offers a second major threat. “If you have access to payments and data, you can shut opponents off from key resources,” Newman explains. Senator Ron Wyden’s letter to the Treasury underscores these concerns. With the Treasury’s payment system compromised, the administration could potentially withhold or redirect funds to favored groups.

Diverting to Loyalists

Having a 360-degree view of government transactions means Musk and Trump can also redirect funds to allies. Sources indicate a GSA “whiteboard” full of valuable federal properties that may be sold to private interests, potentially at bargain prices. The lack of transparent oversight opens the door to cronyism and corruption on a massive scale.

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3. Gutting the Administrative State

The speed of these power grabs is particularly worrying. Parallel efforts to sideline or dismantle agencies that enforce checks and balances make mistakes—or manipulations—inevitable. As Newman notes, “You get miscalculations, overreactions, and unanticipated consequences.” Essentially, while the administration centralizes crucial operational levers, it is also laying off the very personnel who would normally monitor, audit, and correct abuses.

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4. The Bigger Picture: A Strategy for Unbounded Power

Elizabeth Popp Berman, in her article Personal Discretion Over the Treasury’s Payments System Means the End of Democracy, explores how control of federal funds enables near-limitless political leverage. She writes:

“Imagine Musk with the power to simply turn off funding to those who refuse to invest in his projects, or support his business partners. This, too, is illegal, but at least at present is hard to carry out. That practical barrier would disappear with control of the federal payments system.”

Beyond the immediate threat of intimidation, Berman explains that operational control of the “spigot” could allow the administration to impose ideological mandates on schools, states, and other institutions. If they can “turn off” resources at will, then even constitutionally questionable directives—like interfering with local school curricula—become disturbingly feasible.

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5. The Threat to Free Expression and Civic Life

When personnel systems, payment systems, and the day-to-day operations of government are controlled by a small number of loyalists, opposition voices can be silenced or financially starved. This has wide-ranging consequences:

1. Restriction of Speech: Agencies and individuals relying on federal grants or salaries may fear retribution if they criticize administration policies.
2. Manipulation of Funding: Whole sectors, such as public universities or state governments, could face crippling financial cuts if they do not comply.
3. Theft and Grift: Without meaningful oversight, political figures or their associates could direct money, property, or contracts to themselves, enriching their networks.

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6. Conclusion: Democracy at a Crossroads

As Newman and Berman both emphasize, when there is “operational control” over the primary infrastructures of government, the potential for abuse skyrockets. The “plumbing” of government—the nuts and bolts of how funds move and decisions are implemented—is far from mundane. It is inherently political.

The recent revelations that Musk and Trump have laid claim to these central systems signals a dangerous consolidation of power. While congressional investigations and media scrutiny are crucial, there is an urgent need for broader public awareness and outrage. If these maneuvers go unchecked, America’s democratic institutions—and the rule of law itself—could be fundamentally undermined.

“The overarching takeaway is that the plumbing is political and politicians and the media need to focus on what Musk is doing as a strategy.”
— Abraham Newman

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References & Further Reading

1. Newman, Abraham. (2025, January 29). Bluesky Thread on Centralized Information Systems and Coercion.
2. The New York Times. (2025, February 1). Musk Loyalists and Federal Payment Systems.
3. Reuters. (2025, January 31). Government Workers Locked Out of Personnel Databases.
4. WIRED. (2025). How Musk Lackeys Took Control of Key GSA Systems.
5. Senate Finance Committee. (2025). Sen. Wyden’s Letter to the Treasury.
6. Berman, Elizabeth Popp. (2025, February 1). Personal Discretion Over the Treasury’s Payments System Means the End of Democracy.