This Week In Waste – February 6, 2026
Welcome to This Week in Waste, a series by Citizens Against Government Waste (CAGW) that highlights how taxpayer dollars are being wasted in the federal, state, and local levels of government and efforts to fight back against this spendthrift behavior.
Taxpayers Win Big When the Internal Revenue Service (IRS) Cannot File Their Taxes for Them
The One Big Beautiful Bill Act (OBBBA) eliminated the IRS’s non-statutory and overreaching DirectFile program, which is a major victory for taxpayers. CAGW had been sounding the alarm on DirectFile, pointing out that the IRS should not be filling out and processing anyone’s taxes for them. Ending DirectFile protects taxpayer choice and prevents waste, while OBBBA also saves taxpayer dollars by delivering broader tax relief. Read more here.
House Energy and Commerce Committee Holds Hearing on FirstNet Reauthorization
The First Responder Network Authority (FirstNet) was created in 2012 to address the lack of interoperability among first responders that became a critical issue during the events of 9/11. CAGW submitted comments to the February 4, 2026, House Energy and Commerce Subcommittee on Communications and Technology hearing which began House consideration of the reauthorization process. FirstNet’s authority expires in 2027, and CAGW noted that the hearing is an important first step to give Congress an opportunity to evaluate the program to ensure it continues to meet the needs of the nation’s public safety community. Read more here.
CAGW Files Comments in California Supporting Charter-Cox Merger
The California Public Utility Commission is considering the merger of Charter Communications and Cox Communications. CAGW submitted comments that noted the merger would improve service and increase competition for the areas covered by the two companies. It will also provide businesses and consumers with faster network upgrades, expanded network coverage, and greater streaming content variety. Read more here.
Government Accountability Office (GAO) Reports on Improving the Use of Shared Services
A February 3, 2026, GAO report discussed how federal shared services are being used and what can be done to improve their use. GAO recommended that shared services could be expanded by filling more leadership positions and implementing plans to collect performance information. CAGW is a member of the Shared Services Leadership Coalition, which is hosting the March 5, 2026, conference “Driving Government Efficiency: Delivering Measurable Results” to help enhance the adoption of shared services. Read more here.
Congress Starts to Hold Minnesota Accountable for Fraud
There have been three congressional hearings on Minnesota’s failure to prevent at least $9 billion in fraud in federal safety net programs. State legislators and other witnesses testified that Gov. Tim Walz (D) enabled the fraud to persist by ignoring warnings about the losses, which led CAGW to name him the January Porker of the Month. The broader lesson, as Sen. Mike Lee (R-Utah) noted, is that federal welfare programs invite fraud because the federal government was never designed to operate as a welfare agency. Read more here.
California Collected $3.8 Million for 94,000 Dead People’s Phone and Internet Services
The Universal Service Program’s Lifeline program provides discounted phone and internet service to low-income households. A January 26, 2026, Federal Communications Commission (FCC) Inspector General report found that Lifeline providers in California, one of the Lifeline opt-out states, obtained $3.8 million in federal Lifeline funds from 2020–2025 to provide phone and internet service to 94,000 deceased individuals. Lifeline providers in opt-out states received nearly $5 million for deceased subscribers. Read more here.
White House Releases Report on the Benefits of State Income Tax Elimination
The January 28, 2026, Council of Economic Advisors report found that repealing state income taxes could raise average state GDP by up to 1.6 percent, boost new startups by 16 to 19 percent, increase average wages by $4,000, and attract high-income taxpayers. Read more here.
Washington Income Tax Proposal Includes ‘Jock Tax’ on Visiting Athletes
Washington Governor Bob Ferguson’s (D) proposed income tax would impose a 9.9 percent levy on income over $1 million and introduce a “jock tax” targeting visiting professional athletes. The draft proposal may also be expanded to cover college athletes with name, image, and likeness income, and touring performers. The proposal conflicts with a 2024 voter-approved income tax ban, inviting legal challenges. Read more here.
Expedited Review of Pole Attachment Complaints Helps Accelerate Broadband Deployment
The FCC issued a precedent-setting order on February 4, 2026, under its new expedited review process, resolving a pole attachment dispute between Comcast and Appalachian Power Company (APCO) in 60 days as part of the agency’s efforts to remove barriers to broadband deployment. The FCC determined that APCO’s attempt to charge Comcast the full cost to replace a pole that did not comply with existing safety or engineering standards violated the law and Comcast only had to pay the incremental cost of improving the pole for its new attachment. The ruling limits what utilities can charge broadband providers for replacing deficient poles, accelerating broadband deployment and preventing inflated costs. Read more here.
