According to a report by Bloomberg, the Trump administration has officially shut down 18F, a federal agency focused on modernizing government technology. On Mar. 1, about 85 employees received dismissal notices, effectively dissolving the office that was once hailed as the government’s own tech startup.

IRS Direct File— a free service that helps taxpayers file their tax returns online and that is now available in 25 participating states—was one of 18F's many projects over the years, according to CPA Practice Advisor. The tech-focused federal agency was created under the Obama administration to improve digital services, working on projects such as login.gov and weather.gov as well. 

The office played a key role in streamlining online access for taxpayers and government agencies. However, the agency faced criticism over cybersecurity lapses and management issues in past audits. 

The closure comes as part of a broader reduction in force by the General Services Administration, which deemed 18F “non-critical.” The decision aligns with the administration’s efforts to consolidate government technology services under the U.S. Doge Service, an initiative associated with Elon Musk’s push for efficiency in federal agencies.

While affected employees will receive transition assistance, the closure raises concerns about the future of federal digital innovation.