In March, President Donald Trump issued an executive order instructing federal agencies to improve how they share data. The administration pitched the move as a modernization effort—aimed at cutting costs and improving efficiency. But behind this seemingly bureaucratic shift lies a more controversial possibility: the creation of a sweeping government surveillance system.
While Trump hasn’t publicly mentioned the initiative since signing the order, officials across multiple federal agencies have been quietly laying the groundwork. Central to this infrastructure is Palantir Technologies, a data analytics company with deep ties to Silicon Valley and co-founded by billionaire and Trump ally Peter Thiel.
Palantir’s software platforms are rapidly becoming embedded in key government systems, sparking concern among privacy advocates, civil liberties groups, and even some of the company’s own employees.
Palantir’s Government Footprint Grows Quietly
Since Trump entered office, Palantir has received over $113 million in federal contracts, with more likely to follow. The Department of Defense alone recently awarded the company a massive $795 million deal. Other agencies working with Palantir include the Department of Homeland Security (DHS), the Department of Health and Human Services (HHS), and the Internal Revenue Service (IRS).
The company’s flagship platform, Foundry, is designed to manage and analyze enormous volumes of data from disparate sources. Foundry is already being used by at least four federal agencies and is reportedly being considered by others, including the Social Security Administration (SSA) and the Department of Education. Its widespread deployment would make it easier for the federal government to merge databases—creating a powerful, centralized system of citizen data.
According to several government officials, this opens the door to building a master profile on millions of Americans—aggregating everything from tax records and medical claims to bank details and immigration status.
Civil Liberties Advocates Warn of Overreach
The administration’s appetite for personal data is not speculative. Officials have already sought access to Americans’ bank account numbers, student debt, medical histories, and disability statuses through various databases.
Critics fear this trove of information could be weaponized—used to monitor dissent, target political opponents, or enforce immigration policies more aggressively. Lawsuits from civil rights organizations, student groups, and labor unions have already been filed in an attempt to stop this kind of data consolidation.
Linda Xia, a former Palantir engineer, is among 13 ex-employees who signed an open letter urging the company to sever ties with the Trump administration’s project.
“This is not about software. It’s about intent,” Xia said. “Collecting all this data in one place makes misuse not just possible—but likely.”
Internal Discontent Brews at Palantir
Inside Palantir, the company’s expanding government role has sparked growing unrest. Multiple employees, both past and present, have raised concerns about the ethical implications of working with an administration that appears intent on building a vast surveillance network.
“There’s a risk that Palantir will be seen as the engine behind Trump’s data machine,” said one former employee. “And if anything goes wrong—whether it’s a hack or abuse of power—the backlash will fall on us.”
One high-profile departure was Brianna Katherine Martin, a company strategist, who resigned publicly over Palantir’s new contracts with Immigration and Customs Enforcement (ICE). In a LinkedIn post, she said the company had crossed “a red line” in its work.
DOGE and Potential Conflicts of Interest
Driving much of this behind the scenes is the Department of Government Efficiency (DOGE), an office created by Trump and now headed by Elon Musk. Several of DOGE’s top officials previously worked at Palantir or other companies backed by Peter Thiel, raising questions about conflicts of interest in how federal tech vendors are chosen.
Emails reviewed by reporters reveal DOGE discussing plans with DHS officials to integrate Social Security data with immigration records. Palantir engineers have already begun building tools for ICE under a $30 million contract to track migrant movements.
Employees at both Palantir and DHS say DOGE has been lax with data security protocols, further heightening concerns.
Data Projects at the IRS and Beyond
Palantir’s presence is expanding in agencies that handle highly sensitive information. At the IRS, Palantir engineers are helping create a centralized, searchable taxpayer database using Foundry. What began as a system upgrade is now poised to become a permanent fixture.
The Treasury Department stated that the goal is to improve taxpayer services and that Palantir is working alongside IRS engineers. Yet the scope of data being collected continues to draw scrutiny.
Palantir has also entered discussions with the SSA and Department of Education, both of which manage vast troves of personal data. Employees in those agencies have confirmed talks to implement Palantir’s tools to streamline data organization—though several admit they’re uneasy about the broader implications.
Company and White House Stay Silent
Palantir has declined to directly address its contracts with the Trump administration. In a public blog post, the company emphasized that it is merely a “data processor” and not a “data controller.” According to the post, clients—including the federal government—set the rules for how Palantir software is used.
The White House also declined to offer specifics, referring back to the language of Trump’s executive order, which described the plan as a means to eliminate “information silos” and improve governmental operations.
A Bigger Picture: Technological Power and Public Trust
Palantir was founded in 2003 by Alex Karp and Peter Thiel and became a publicly traded company in 2020. It has long worked with federal agencies including the Defense Department and the CDC, most notably assisting with COVID-19 vaccine logistics during the Biden administration.
But Trump’s re-election in November 2024 gave Palantir a financial and symbolic boost. The company’s stock has surged over 140%, and CEO Karp—despite previously donating to Democrats—has endorsed Trump’s push for government reform. He has also praised Musk as “the most qualified person” to lead the transformation.
Still, watchdog groups like the Electronic Frontier Foundation caution that this isn’t just a tech story—it’s a fundamental question of democracy.
“If Americans can’t trust that their data will only be used for its original purpose, we risk collapsing public confidence in our institutions,” said EFF attorney Mario Trujillo. “And once that trust is gone, it’s incredibly hard to restore.”
