Elon Musk’s Doge: How Real Are the Government Spending Cuts?

Elon Musk's Doge: How Real Are the Government Spending Cuts?

Elon Musk’s Department of Government Efficiency (Doge) claims it has saved more than $10 billion each week since the Trump administration’s start. As of April 23, 2025, Musk stated that Doge had saved almost $200 billion. These savings are reportedly driven by efforts to cut old contracts, tackle fraud, and reduce government staff. However, experts have raised doubts about the accuracy of Doge’s reported savings. We delved into Doge’s largest savings claims to verify the figures and analyze the transparency behind them.

Doge’s Savings Claims: Fact or Fiction?

On April 23, Musk confidently stated that his department had already saved nearly $200 billion, a number that continues to rise. In a statement to the press, Trump remarked that Doge’s savings were approaching that milestone “and climbing fast.” According to the department, much of these savings come from eliminating outdated contracts, canceling grants and leases, fighting fraud, and reducing government staffing levels.

However, our research into Doge’s claims paints a more complicated picture. While the savings numbers sound impressive, many lack the detailed evidence needed to back them up. Experts we consulted, including financial analysts and contract specialists, pointed out discrepancies and gaps in the data.

Tracking Doge’s Claimed Savings: Transparency Issues

When Doge first announced its initiative in October, Musk set an ambitious goal of cutting at least $2 trillion from the federal budget. He later scaled down this target, adjusting it to $150 billion in savings by 2026. The US federal budget for the last financial year stood at $6.75 trillion, making Musk’s revised goal of $150 billion seem more feasible but still significant.

As of April 20, Doge’s website reported a running total of $160 billion in savings. While that number is certainly eye-catching, less than 40% of it has been backed up with detailed breakdowns and verifiable documentation. We reviewed the available data and found that only half of the claimed savings had accompanying evidence. Additionally, multiple journalistic investigations have uncovered errors, such as Doge’s claim of saving $8 billion on an $8 million immigration contract—a clear discrepancy.

Doge claims that it is working to improve transparency and has uploaded around 30% of its receipts by mid-April. However, it has stated that some receipts cannot be made public due to legal restrictions.

Examining Doge’s Four Largest Reported Savings

We analyzed the four largest savings claims that Doge has linked to specific documents. These claims together add up to $8.3 billion. However, experts suggest that these savings figures are inflated, as they rely on estimated rather than actual spending figures.

1. Migrant Children Facility Cancellation: $2.9 Billion

Doge’s largest reported saving comes from the cancellation of a contract for a migrant children facility in Texas. The contract, initiated under the Biden administration in 2023, was valued at $2.9 billion through 2028. However, the contract’s cancellation figure is based on projected savings, not actual expenses. According to an insider familiar with the contract, the real savings are closer to $153 million—far lower than Doge’s reported figure.

Moreover, the facility was subject to annual reviews, and at no point did it house the full 3,000 children it was originally designed for. Instead, it peaked at around 2,000 children. Therefore, the cancellation’s financial impact is less clear than Doge suggests.

2. IRS Contract Cancellation: $1.9 Billion

Doge claims it saved $1.9 billion by canceling an IRS contract with Centennial Technologies. However, the contract had no reported spending, and the cancellation was made before the contract had fully taken effect. Experts caution that incomplete record-keeping might explain the lack of spending data.

Centennial Technologies confirmed the cancellation but refused to provide further details, adding to the opacity of the claim.

3. Department of Defense IT Services Contract: $1.76 Billion

Another major savings claim is the cancellation of a Department of Defense IT services contract with A1FEDIMPACT, reportedly saving $1.76 billion. The contract’s ceiling was listed as $2.4 billion, but no spending data was provided upon cancellation. Attempts to contact both the Pentagon and A1FEDIMPACT for clarification have gone unanswered.

4. Vaccine Grant Cancellation: $1.75 Billion

The final large savings claim stems from the cancellation of a $1.75 billion USAID grant to Gavi, a vaccine organization. However, records show that $880 million of the grant had already been distributed before the supposed cancellation. Gavi confirmed receiving this amount but stated it had not been formally notified of any grant termination.

When we reached out to the USAID Office of Inspector General for more information, we received no response, leaving the true savings unclear.

While Doge has certainly made efforts to reduce government spending, the lack of verifiable evidence for many of its largest savings claims raises concerns. Experts agree that while some savings have likely been achieved, the inflated figures and speculative numbers make it difficult to assess the department’s true impact.

Author

  • Silke Mayr

    Silke Mayr is a seasoned news reporter at New York Mirror, specializing in general news with a keen focus on international events. Her insightful reporting and commitment to accuracy keep readers informed on global affairs and breaking stories.

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