Despite Elon Musk's DOGE efforts, government spending actually rose after Trump took office.
Initiation and Background: In August 2024, Elon Musk urged Trump three times during a livestream to establish a 'Government Efficiency Committee' to cut spending; Trump did not heed the advice at the time.
Birth of DOGE: Eight months later, the committee evolved into 'DOGE'—a young engineering team led by Musk, named after the Meme coin, specifically tasked with federal budget cuts.
Layoffs and Department Impact: Within 100 days, the federal workforce fell back to levels seen in the 1960s, with approximately 250,000 civil servants forced to leave (including 112,000 'deferred resignations' and 121,000 direct layoffs). International aid agencies like USAID, the United States Institute of Peace, and the Millennium Challenge Corporation were severely impacted.
Spending Trend Contrast: Although it announced saving about $160 billion, government total spending still grew by 6.3% compared to the same period last year (about $156 billion) due to rising baseline budgets, with an inflation-adjusted increase of $81.2 billion.
Department Specific Performance: The Department of Education laid off about 1,300 people, a 30% reduction, making it the only department to achieve a real decrease in actual spending (cutting about $10 billion). Most other areas felt pain due to the strategy of 'first cutting 20% and then replenishing,' resulting in no significant savings.
Controversy and Backlash: DOGE made large-scale cuts in sensitive areas such as immigration, avian influenza, and nuclear regulation, triggering over 60 lawsuits; grassroots Republican voters were furious, leading to the defeat of DOGE supporters in the Wisconsin judicial elections; Democrats criticized Musk for having too much power.
Internal Conflicts: Musk clashed with several cabinet members, including the Secretary of State, the Secretary of Transportation, and the Secretary of the Treasury, while the Department of Defense privately resisted the most profound cut proposals.
Musk's Cost: Personal finances were severely impacted—over $100 billion in net worth evaporated since last December; Tesla sales and stock prices fell due to public backlash; investments in DOGE were reduced due to safety threats, announcing only 'one or two days' of effort per week.
