Federal Design Studio Under Scrutiny for Opaque Staffing and Private Sector Funding Links

A detailed investigation by WIRED has unveiled a complex and potentially problematic staffing structure within the National Design Studio (NDS), a federal initiative nested within the Executive Office of the President. The findings reveal that the NDS, tasked with modernizing government websites and services, is relying on a recently formed non-profit, the America by Design Foundation, to employ and fund some of its key personnel, raising significant questions about transparency, ethical guidelines, and the blurring lines between public service and private tech interests. This situation mirrors concerns previously associated with the defunct Department of Government Efficiency (DOGE), from which NDS largely inherited its mission and many of its operatives.

The National Design Studio emerged in the wake of billionaire Elon Musk’s departure from DOGE in late spring 2025. Following Musk’s exit, several former DOGE members transitioned into the NDS, which was officially announced by the White House in August 2025 as a cornerstone of the broader “America by Design” initiative. This initiative, described by an executive order as a national effort to “improve experiences for Americans,” aimed to leverage modern design principles to enhance public interaction with federal services. Joe Gebbia, a co-founder of Airbnb, a former DOGE member, and currently the chief design officer of the US, leads the NDS. Other notable former DOGE operatives now serving at NDS include Edward “Big Balls” Coristine, head of engineering; Akash Bobba, a prolific young engineer; and Zachary Terrell, chief technology officer at the Department of Health and Human Services. The NDS has already launched high-profile government websites such as TrumpRx and RealFood.gov, and most recently, the ambitious AI-driven America.gov, designed to consolidate various federal services.

The America by Design Foundation: A Private Pipeline into Government

The core of the recent controversy lies with the America by Design Foundation. WIRED’s investigation uncovered that at least two NDS members, Amittai Groot and John Cafazza, are not direct federal employees but are instead employed by this non-profit and then “on loan” to the government, specifically detailed to the Office of Personnel Management (OPM). This arrangement, experts contend, raises serious concerns about accountability and potential conflicts of interest.

The America by Design Foundation itself was registered on August 25, 2025, a mere four days after the NDS was formally established, and received its tax-exempt status less than a month later, on September 22, 2025. Its stated mission, according to documents reviewed by WIRED, is to “enhance the visual design, usability, and overall experience of web-based federal government services.” However, the foundation’s funding sources remain entirely opaque, with no tax filings yet publicly available.

Adding to the complexity is the foundation’s leadership. James Burnham, a former general counsel for DOGE and currently the general counsel of SpaceXAI—Elon Musk’s artificial intelligence space company—is listed as the managing director of the America by Design Foundation. His biography on the Federalist Society website credits him with designing DOGE’s legal structure, underscoring his deep involvement with previous iterations of this private-sector-infused government work. The foundation’s address listed in the System for Award Management, where government contractors must register, corresponds to Burnham’s residential property in Alexandria, Virginia, and the IRS letter confirming its registration was also addressed to him. This direct link between a powerful tech executive, a nascent non-profit, and federal staffing initiatives immediately draws scrutiny.

Questionable Staffing Mechanisms and Ethical Concerns

The method by which Groot and Cafazza, and potentially others, are brought into government service is via the Intergovernmental Personnel Act (IPA). The IPA is a mechanism designed to allow individuals with specialized skills from institutions like universities and non-profit organizations to work in government for up to two years without undergoing the full federal hiring process. While IPAs serve a legitimate purpose in bringing niche expertise into federal agencies, their application by NDS, much like DOGE’s use of “special government employees” (SGEs) in the past, appears to skirt conventional hiring regulations and transparency requirements. SGEs, for instance, can work up to 120 days a year without the usual disclosure mandates.

Don Moynihan, a professor of public policy at the University of Michigan, articulated the core concern: “The fact that we wouldn’t know who is employing and paying these people is troubling in any context, especially in the context where there is a back-and-forth movement from the private sector to the public sector.”

Erie Meyer, who served as chief technologist of the Consumer Financial Protection Bureau under the Biden administration and frequently utilized IPAs, highlighted several irregularities. She noted that IPAs are typically not meant to form the core staff of an agency and should not occupy roles that could be filled by federal employees. “If the National Design Studio is bringing in designers and engineers now, the government is actually now full of those. You can’t just use the IPA system to evade hiring protections,” Meyer stated. This suggests that NDS may be circumventing established federal hiring procedures, potentially undermining the civil service.

Furthermore, Meyer pointed out that IPA candidates are generally required to be employed by their home organization for at least 90 days before being loaned to the government. This does not appear to have been the case for Amittai Groot, who, according to documents, began his employment with the America by Design Foundation in April 2026 and commenced his government term with OPM less than a month later, on May 5, 2026. Groot’s LinkedIn profile indicates he started with NDS in April 2026, coinciding with his foundation employment. His previous role was an “IT cybersecurity expert” at the Social Security Administration from July 2025 to April 2026.

The financial arrangements for these IPA placements also raise eyebrows. While OPM will reimburse the foundation $13,691 a month for Groot’s work, this represents only a portion of his actual salary, which is described as exceeding the government pay scale. The foundation is responsible for covering the "remaining employee’s salary requirements and all benefits." In the case of John Cafazza, a senior product designer with NDS and formerly a product designer at Trump Media & Technology Group, the foundation appears to be covering his full salary. His government term is listed as part-time, running from May 7, 2026, to May 7, 2028. Meyer described having multiple people from the same organization with different payment agreements as “very, very weird,” further complicating the financial transparency of the arrangement.

Projects, Privacy, and Undue Influence

The work undertaken by NDS operatives, including those from the America by Design Foundation, spans critical government functions. Groot, for instance, has been publicly credited by Edward Coristine for his contributions to the recently launched America.gov, an AI-driven platform intended to centralize services like tax filing and passport renewal. The ambitious nature of these projects, combined with the opaque staffing, amplifies concerns.

Adding another layer of controversy, The Guardian reported earlier in 2026 that NDS-designed websites had installed commercial software to track visitors, a practice that seemingly violated the 1974 Privacy Act. Although the code was removed following the Guardian’s inquiry, it highlighted potential blind spots or disregard for established federal privacy protocols within the NDS’s operations.

The pervasive influence of James Burnham, linking the America by Design Foundation directly to SpaceXAI and Elon Musk, creates a significant potential for conflicts of interest. SpaceXAI, through its parent company, has received billions of dollars in federal contracts, works closely with the government to integrate its Grok AI systems, and faces substantial regulatory business from federal agencies. Moreover, Musk is a prominent political donor. Burnham’s additional role as president of Vallecito Capital, a fund that supports litigation against companies perceived to have broken the law with progressive policies, further complicates his multifaceted engagement with both the public and private spheres. The concern, as Moynihan articulates, is "What does this outside organization get out of this? We should know who is paying the salaries of government employees.”

International Staffing and Lack of Official Response

Further documents from the Department of Labor reveal that the America by Design Foundation applied for an H-1B visa for a "member of technical staff," with Burnham listed as the managing director. The visa’s start date of April 6, 2026, and expiration on April 5, 2029, effectively covers the remainder of the current administration. The salary range for this role, from $175,427 to $340,000, extends well beyond the highest end of the federal pay scale ($197,200).

The presence of non-citizens within these government-adjacent initiatives is not unprecedented for DOGE and NDS. Baris Akis, a Turkish national and close associate of Musk, acted as a recruiter for DOGE and attended internal meetings. Similarly, Yat Choi, an NDS member and former Airbnb employee, has referred to Canada as “home” on social media and is listed on LinkedIn as a senior technologist at OPM under a “contract” role since April 2025. While Meyer noted that it’s "not common" for foreign nationals to serve as IPAs, it is technically permitted in some cases. However, the use of a private foundation to sponsor such visas for roles within the government raises questions about national security and the principle of direct government employment for sensitive positions.

A search for the America by Design Foundation on the Department of Homeland Security’s H-1B employer data hub yielded "Jennifer Michelsen America by Design Foundation." Jennifer Michelsen is the cofounder of an eyewear company and is married to Matt Michelsen, founder of Gothams LLC. Gothams LLC notably secured a $33 million contract for the “Alligator Alcatraz” immigration detention facility in Florida and reportedly sought additional contracts for a “fully integrated humanitarian logistics system” for the administration’s Gaza Strip rebuilding efforts. This connection further entangles the foundation with individuals and entities holding significant financial interests and contracts with the federal government.

The White House spokesperson, when questioned about the relationships between the America by Design Foundation, OPM, and NDS, declined to provide direct answers, instead referring WIRED to OPM. OPM, in turn, did not respond to requests for comment. This lack of official transparency only serves to intensify public and expert scrutiny, fueling suspicions that the administration is deliberately obscuring the nature of these arrangements.

Broader Implications for Governance and Accountability

The revelations surrounding NDS and the America by Design Foundation paint a concerning picture of modern governance, where the lines between public service and private enterprise are increasingly blurred. Critics argue that these arrangements allow powerful tech figures and their associates to exert influence over government functions without the usual checks and balances inherent in federal employment. The use of private foundations to staff government positions bypasses traditional hiring processes, ethical disclosure requirements, and salary limitations, creating an environment ripe for potential conflicts of interest and undue influence.

The long-term implications are significant. If left unaddressed, such practices could set a precedent for future administrations to circumvent civil service protections, undermine federal employee morale, and potentially compromise the impartiality of government operations. The risk of private interests dictating public policy or benefiting from insider access, particularly in areas involving substantial federal contracts and regulatory decisions, is substantial.

As Erie Meyer aptly summarized, the fundamental concern is that “an outside organization [could] use an external rich person’s preference to exert power over how the government works.” The ongoing investigation underscores the critical need for greater transparency, robust ethical oversight, and a clear delineation of roles and responsibilities when private sector expertise is integrated into federal initiatives. Without these safeguards, the pursuit of “efficiency” and “innovation” risks eroding the very foundations of democratic accountability and public trust.

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