Appropriations subcommittee presses oversight of 'Department of Government Efficiency' and raises alarms about mass probationary firings

The House Appropriations Subcommittee on Financial Services and General Government heard multiple members raise urgent oversight concerns about the administration’s new Department of Government Efficiency — referred to in testimony as “Doge” — and the effects of its actions on federal operations, contractors and public services.

Lawmakers told the subcommittee during member day that the administration has used executive directives and Office of Management and Budget guidance to halt or redirect funds already appropriated by Congress, and that mass dismissals of probationary employees have disrupted services and created legal and operational uncertainty.

Representative Steny Hoyer, the committee’s ranking member, framed the issue around congressional authority and oversight, saying the panel has “the power of the purse, not the president,” and arguing the committee must investigate how the new entity is operating and spending taxpayer dollars. Several other members repeated that theme and called for increased transparency and possible legislative fixes.

Representative Sarah Elfreth urged the subcommittee to protect probationary federal employees who were fired in recent weeks and said she will introduce legislation to prevent reinstated probationary employees from having to restart their probationary periods. “I plan to introduce a bill next week to provide that protection,” Elfreth said, arguing that reinstated employees should retain their prior service time rather than start the clock over again.

Representative Melanie Stansberry said the executive actions creating and empowering the new unit “are not normal and they are not legal,” and listed concerns including alleged improper withholding of funds, data-mining of federal systems, and self-dealing in contract awards. Stansberry urged the subcommittee to use every available appropriations tool and report language to rein in what she called “reckless, harmful and illegal activity.”

Representative Val Hoyle told the committee that if the administration wants to withhold funding Congress has already approved, it must follow the statutory impoundment procedures established by Congress; she and others said recent actions have not abided by that framework. Multiple members urged boosting funding for oversight and worker-protection agencies — including the Merit Systems Protection Board, the Office of Special Counsel and the Federal Labor Relations Authority — to handle an expected surge in wrongful-termination and related cases.

Members and witnesses described operational consequences beyond federal payrolls: delayed federal contractor payments, stalled infrastructure and wildfire-mitigation projects, interruptions to NIH and other research programs, and reduced capacity at agencies that support fishermen, public lands and veterans. One member said some contractors who have performed work remain unpaid for months, forcing layoffs and threatening completion of projects that already have contracts and obligations in place.

Several members asked the subcommittee to seek sworn testimony from the chief executive associated with the new entity; Representative Hoyer said the committee should request Elon Musk to testify because of the broad impact described during remarks.

The witnesses and members did not vote on any measures during this member day session. Lawmakers left the hearing with plans to press the Appropriations Committee’s tools — funding conditions, report language and potential statutory changes — in the FY 2026 appropriations process.

The subcommittee adjourned after the member statements and did not take questions of a formal witness panel on this agenda item during the hearing.