The Real Numbers Behind DOGE’s Budget “Cuts”
A Bold Promise Meets Fiscal Reality
When Elon Musk was tapped to lead the new Department of Government Efficiency (DOGE), it was met with skepticism—rightly so. Musk vowed to slash $2 trillion from the $7 trillion federal budget, later reducing the target to $150 billion. But even that figure remains wildly unrealistic.
Inflated Claims, Questionable Math
DOGE has claimed $165 billion in savings, yet detailed receipts support only a small fraction. Many "cuts" stem from accounting errors—like counting a canceled $8 million contract as an $8 billion save—or from canceling unused purchase agreements and claiming full credit limits as savings. Even with generous assumptions, real savings may reach only $15 billion—just 0.2% of federal spending.
Treasury Data Paints a Clearer Picture
Official Treasury reports show federal spending actually increased by 7% in early 2025 compared to the previous year, driven by obligations like Social Security, Medicare, defense, and interest payments—areas untouched by DOGE. Cuts have focused on marginal programs like DEI contracts and international aid.
Small Cuts, Big Disruption
Public health spending dropped by $1.1 billion a month; foreign aid by $1 billion. USAID spending fell by a third. While disruptive to services and recipients, the total impact is minor. Layoffs of federal employees have had minimal budget effect, and future savings from buyouts may be offset by contractor hiring.
The Political Cost
DOGE’s high-profile targets—bureaucrats, foreign programs, and liberal causes—have pleased partisan audiences but provoked legal challenges and public backlash. Long-term savings are uncertain, while GOP tax cuts threaten to balloon deficits by $500 billion annually.
Was It Ever About Savings?
In truth, DOGE may succeed in reshaping the federal workforce and political landscape more than the budget. If you thought it was about actual cost-cutting—you missed the point.
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