Elon Musk’s DOGE: What has been cut so far and why it matters

The Department of Government Efficiency (DOGE), led by Elon Musk, is dedicated to reducing federal spending, downsizing the government workforce, and enhancing the efficiency of federal agencies.

Since its inception, DOGE has cancelled several diversity, equity, and inclusion (DEI) initiatives within federal agencies, along with certain consulting contracts. It has also terminated leases for underutilised federal buildings and is actively working to consolidate redundant agencies and programmes.

What has DOGE cut or targeted?

DOGE has primarily focused on cutting DEI programmes, consulting contracts, and federal building leases. It recently saved $30 million by cancelling 12 contracts and $3 million by ending 12 underutilised leases.


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Additionally, DOGE cancelled 36 contracts, saving $165 million, and terminated 22 leases, saving $44.6 million. It also removed 85 DEI-related contracts worth $1 billion and cancelled a $45 million scholarship programme for Burmese students.

Focus on USAID

Musk and DOGE have identified the U.S. Agency for International Development (USAID) as a target for potential cost savings.

On Monday, the agency’s website went offline, and employees were barred from entering its headquarters. The Trump administration announced that USAID staff would be placed on leave from Friday. Marco Rubio has been appointed acting director, with potential plans to merge parts of USAID into the State Department.

How much has DOGE saved?

On January 28, DOGE announced that it is saving the US government around $1 billion per day. These savings are attributed to halting unnecessary hiring, eliminating DEI programmes, and preventing improper payments to foreign organisations, in alignment with the President’s Executive Orders. DOGE aims to increase savings to over $3 billion per day.

But DOGE has not provided a detailed breakdown of how these savings are calculated. Musk stated that he was "cautiously optimistic" that savings could reach $4 billion per day by the fiscal year 2026, contributing to a $1 trillion reduction in the federal deficit.

Most federal spending remains tied to mandatory programmes such as Social Security, Medicare, and interest payments on national debt.

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Criticism

DOGE has faced criticism regarding its access to federal systems, including the Treasury Department’s payment system. Concerns have been raised about its efforts to cancel federal contracts and implement cuts across various agencies. However, a Treasury official informed lawmakers that DOGE only has "read-only" access to the payment system.

FAQs

1. What is DOGE?
DOGE was created by US President Donald Trump through an executive order he signed on Inauguration Day. Under the order, DOGE will be a temporary organiSation within the White House that will spend 18 months until July 4, 2026, carrying out its mission.

2. What is USAID?
United States Agency for International Development (USAID), created in the 1960s, is a government agency that provides foreign aid and development assistance to countries around the world.