Jia Lissa
A recent investigation has cast a critical spotlight on the National Design Studio (NDS), a federal initiative housed within the Executive Office of the President, revealing a complex and opaque web of staffing arrangements and financial ties that mirror the controversies of its predecessor, the Department of Government Efficiency (DOGE). The findings suggest NDS, tasked with modernizing government websites and services, may be circumventing established federal hiring and transparency regulations by relying heavily on a recently formed nonprofit, the America by Design Foundation, whose leadership maintains direct links to Elon Musk’s corporate empire, SpaceXAI. This arrangement has triggered significant concerns among ethics watchdogs and public policy experts regarding potential conflicts of interest, undue private sector influence, and a lack of accountability in crucial government operations.
Origins and Evolution: From DOGE to NDS
The National Design Studio emerged from the remnants of the highly unconventional Department of Government Efficiency (DOGE), a brainchild of billionaire Elon Musk. Following Musk’s departure from DOGE in late spring 2025, several key members transitioned into the newly established NDS. DOGE itself was a controversial entity, often criticized for its informal structure, reliance on "special government employee" designations, and a perceived lack of transparency regarding its operatives and objectives. Its stated mission was to streamline federal operations, often employing young, tech-savvy individuals directly from the private sector or academic backgrounds, some as young as 19, who bypassed traditional federal hiring protocols.
The NDS, announced by the White House in August 2025, represents a formalization of the "America by Design" initiative, an executive order aiming to "improve experiences for Americans" through enhanced government design and user-centric services. Led by Joe Gebbia, a co-founder of Airbnb, a former DOGE member, and currently the chief design officer of the United States, NDS’s mandate includes redesigning critical government platforms. Notable projects already launched include TrumpRx and RealFood.gov, with a more ambitious AI-driven platform, America.gov, designed to consolidate various federal services like tax filing and passport renewal, unveiled recently. Several other former DOGE operatives, including Edward “Big Balls” Coristine, NDS’s head of engineering, Akash Bobba, and Zachary Terrell, have seamlessly integrated into the NDS leadership and operational teams, maintaining a continuity of personnel and approach from the earlier, more informal initiative.
The America by Design Foundation: A Nexus of Concern
At the heart of the current controversy is the America by Design Foundation, a nonprofit entity that appears to be serving as a crucial, yet largely opaque, staffing and funding mechanism for NDS. A WIRED investigation revealed that at least two NDS members, Amittai Groot and John Cafazza, are not directly employed by the federal government but are on loan, or "detailed," from this foundation. They are formally employed by the America by Design Foundation and then placed within federal agencies, in this instance, the Office of Personnel Management (OPM).
The foundation itself was registered on August 25, 2025, a mere four days after the NDS was officially established, and quickly received its tax-exempt status by September 22, 2025. Its stated "core mission is to enhance the visual design, usability, and overall experience of web-based federal government services," closely aligning with NDS’s mandate. However, the funding sources for the America by Design Foundation remain entirely undisclosed, raising significant questions about who is financially supporting this pivotal link in the government’s design initiative.
Leadership Ties to SpaceXAI and Elon Musk
Further deepening the concerns are the direct ties of the America by Design Foundation’s leadership to Elon Musk’s corporate interests. James Burnham, identified in documents as the foundation’s managing director, previously served as the general counsel for DOGE and is currently the general counsel of SpaceXAI, the artificial intelligence space company founded by Musk. Burnham, who designed DOGE’s legal structure, is also listed as the president of Vallecito Capital, a fund known for supporting litigation against companies perceived to have progressive policies. The foundation’s address in the System for Award Management, where government contractors must register, is linked to Burnham’s residential property in Alexandria, Virginia, further solidifying his central role.
This direct link to SpaceXAI, a company that has received billions in federal contracts, integrates its Grok AI systems with government platforms, and has substantial regulatory dealings with federal agencies, raises profound conflict-of-interest questions. Don Moynihan, a professor of public policy at the University of Michigan, succinctly articulated the core concern: "We should know who is paying the salaries of government employees." The involvement of a non-profit led by a top executive from a company with significant financial and regulatory stakes in the federal government creates an inherent potential for influence that could undermine public trust and fair competition.
Staffing Mechanisms and Regulatory Skirting
The method by which NDS brings in staff, particularly through the America by Design Foundation, has drawn sharp criticism for potentially skirting federal hiring regulations. Like DOGE, which often utilized "special government employee" (SGE) designations to bypass full hiring processes, NDS appears to be leveraging the Intergovernmental Personnel Act (IPA). The IPA is a legitimate tool designed to allow individuals with specialized skills from institutions like universities and non-profits to work in government for up to two years. Its primary intent is to facilitate temporary knowledge transfer for specific, niche roles where federal expertise is lacking.
However, experts like Erie Meyer, former chief technologist of the Consumer Financial Protection Bureau, argue that NDS’s use of IPAs deviates significantly from its intended purpose. Meyer states, "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." She emphasizes that IPAs are not meant to form the core staff of an agency or to take positions that could be filled by federal employees.
The cases of Amittai Groot and John Cafazza illustrate these concerns. Groot, listed as an "IT cybersecurity expert" prior to joining NDS, began his employment with the America by Design Foundation in April 2026, the same month he started work with NDS. His term with OPM is part-time, from May 5 to September 30, 2026. This timeline appears to violate a key IPA requirement that individuals be employed for at least 90 days at their home organization before being loaned to the government. Cafazza, a senior product designer with NDS, previously worked at Trump Media & Technology Group, the parent company of Truth Social, and his government term is listed as part-time from May 7, 2026, to May 7, 2028.
Financial Arrangements and Unanswered Questions
The financial agreements for these detailed employees further compound the lack of transparency. For Groot, OPM agreed to reimburse the America by Design Foundation $13,691 per month, which represents only a portion of his actual salary, deemed "too large for the government pay scale." The foundation is responsible for paying the "remaining employee’s salary requirements and all benefits." In Cafazza’s case, the foundation appears to cover his entire employment cost. Meyer described having multiple people from the same organization with different payment agreements as "very, very weird."
The source of the foundation’s funds to cover these salaries, particularly Cafazza’s full employment cost and a significant portion of Groot’s, remains a critical unanswered question. Without public tax filings or disclosures, the benefactors influencing federal operations through the America by Design Foundation are unknown. This lack of financial transparency, coupled with Burnham’s senior role at SpaceXAI, fuels suspicions of private interests potentially subsidizing and thus influencing government functions.
International Personnel and Visa Scrutiny
Adding another layer of complexity, the investigation also uncovered the involvement of foreign nationals within the NDS and DOGE orbit. Department of Labor documents reveal that the America by Design Foundation applied for an H-1B visa for a "member of technical staff" with a salary ranging from $175,427 to $340,000, spanning from April 6, 2026, to April 5, 2029. While the specific recipient is not named, the visa application lists Burnham as the foundation’s managing director and provides an address linked to his former law firm.
The presence of foreign nationals in sensitive government roles, even as IPAs, is uncommon. Previous reporting identified Baris Akis, a Turkish national and close Musk associate, as a recruiter for DOGE. Yat Choi, an NDS member and former Airbnb employee, has indicated Canada as "home" on social media and is listed as a senior technologist at OPM under a "contract" since April 2025. While IPAs can be foreign nationals under specific circumstances, the concentration and nature of these roles within NDS raise questions about national security implications and adherence to federal employment guidelines for non-citizens, particularly given the high salaries involved. A search for the America by Design Foundation on the Department of Homeland Security’s H-1B employer data hub links to "Jennifer Michelsen America by Design Foundation." Jennifer Michelsen is the co-founder of an eyewear company, and her husband, Matt Michelsen, is the founder of Gothams LLC, which has secured substantial federal contracts, including for immigration detention facilities and humanitarian logistics systems. This connection further broadens the network of private interests linked to this seemingly government-adjacent foundation.
Broader Implications for Governance and Public Trust
The revelations surrounding the National Design Studio, the America by Design Foundation, and their staffing practices carry significant implications for the integrity of federal governance. The use of a privately funded non-profit, led by an executive with deep ties to a major government contractor and a high-profile billionaire, to staff critical government initiatives bypasses traditional checks and balances. This creates an environment where:
- Transparency is compromised: The public is left unaware of who is truly funding and influencing government operations.
- Accountability is diluted: When employees are paid by an external entity, their primary loyalty and accountability can become ambiguous, potentially shifting from the public interest to private benefactors.
- Conflicts of interest proliferate: The close ties between the foundation, SpaceXAI, and government initiatives create fertile ground for perceived and actual conflicts, where private sector agendas could subtly or overtly shape public policy and resource allocation.
- Fair hiring practices are undermined: By sidestepping standard federal hiring processes, the system potentially disadvantages qualified public servants and opens the door to preferential treatment based on private sector connections rather than merit.
- Privacy concerns are amplified: The previous report by The Guardian about NDS-designed websites installing commercial software to track visitors, in apparent violation of the 1974 Privacy Act, further underscores the risks when private sector approaches are adopted without sufficient governmental oversight and ethical review.
The White House, when questioned about the relationships between the America by Design Foundation, OPM, and NDS, declined to comment directly, referring inquiries to OPM, which also did not respond. This silence only reinforces the perception of opacity and a reluctance to address the fundamental questions raised by these arrangements. As Professor Moynihan noted, "It makes you ask, What does this outside organization get out of this?"
The ongoing investigation into the National Design Studio and its intricate connections to the America by Design Foundation highlights a growing trend of private sector entanglement in government operations. While the infusion of tech expertise can be beneficial for modernization, the current setup raises serious red flags about the erosion of transparency, the potential for undue influence, and the fundamental principles of public service. Without clear answers on funding, oversight, and adherence to regulatory frameworks, the NDS risks becoming less a symbol of government efficiency and more a testament to the blurring lines between public duty and private interest.
