Steve Davis left DOGE in May, but officials say he’s still running the show

Despite his official departure from the U.S. government in May, Steve Davis, Elon Musk’s former top lieutenant at the Department of Government Efficiency (DOGE), reportedly continues to exert significant influence within the agency. According to an investigation by The Wall Street Journal, Davis, a long-time ally of Elon Musk, is regularly providing directives to current DOGE officials and has privately dismissed his publicized exit as “fake news.”

This behind-the-scenes involvement paints a picture of deeper engagement than his official status suggests. Davis is known for his extreme frugality, reportedly signing off on costs as low as a few hundred dollars, and his unwavering loyalty to Musk, exemplified by reports of him sleeping in the offices of X (formerly Twitter) with his wife and newborn child after Musk’s acquisition of the social media platform.

The alleged continued influence of Davis, particularly following Elon Musk’s own announced exit from DOGE and his public disagreements with President Trump, has reportedly fueled internal tensions within the department. The Journal highlights that staffers are facing “loyalty tests” in closed meetings, caught between allegiances to Trump and Musk as DOGE actively resists White House efforts to curb its authority and shrink its operational scope.

Sources cited by the outlet indicate that allies of Musk within DOGE are aiming to establish “DOGE 2.0,” a renewed focus that shifts the department’s primary objective from broad job cuts to streamlining government IT systems. However, critics are vocal, asserting that the team’s ongoing involvement primarily serves to advance Musk’s extensive business interests, including those tied to SpaceX, Tesla, and X.

TechCrunch had previously reached out to The Boring Company, Musk’s tunneling enterprise where Davis holds the position of president, for commentary on his role, highlighting the ongoing scrutiny surrounding his activities.