Revised projected federal spending cuts estimates cast doubt on DOGE
By Sirisha Dinavahi
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4/17/25 (LAPost.com) — Elon Musk’s Department of Government Efficiency has significantly reduced its projected federal spending cuts for the 2026 fiscal year, lowering the target from an initial $1 trillion to $150 billion. This adjustment follows scrutiny over the feasibility of the original goal and concerns about the impact on essential public services.
During an April 10 Cabinet meeting, Musk attributed the revised savings estimate to reductions in waste and fraud, asserting these cuts would enhance government services.
“I’m excited to announce that we anticipate savings in ’26 from the reduction of waste and fraud by $150 billion,” Musk told President Donald Trump, referring to the fiscal year, which runs from the beginning of October 2025 to the end of September 2026.
Analyses have revealed discrepancies in DOGE’s reported savings. For instance, the department claimed a $318 million saving by canceling an Office of Personnel Management contract. However, this contract had not been finalized, and DOGE did not provide documentation to substantiate the claimed savings.
The administration’s own data indicate nearly 40% of the contracts canceled by DOGE are unlikely to yield any financial savings. These contracts, valued at approximately $478 million, were either already obligated or not projected to produce cost reductions.
James Capretta, a senior fellow at the American Enterprise Institute, commented on the challenges of achieving substantial budget cuts. He noted while personnel reductions could potentially save $20 billion annually, such savings are contingent upon Congressional approval.
Political reactions to DOGE’s initiatives have been polarized. Many Republicans support the department’s efforts to eliminate perceived government inefficiencies.
Representative Marjorie Taylor Greene has advocated for the implementation of DOGE-like oversight offices at local and state levels. During a town hall in Cobb County, Georgia, she stated over 70 counties in the state are working to establish such groups, aiming to curb waste, fraud, and abuse.
Conversely, Democrats have expressed concerns about the rapid implementation of cuts without thorough legislative oversight. Senator Elizabeth Warren has expressed skepticism about DOGE’s approach. She sent a letter to Musk outlining 30 recommendations to save $2 trillion in the federal budget, including measures like stopping waste at the Department of Defense and curbing Medicare insurers’ abuse. However, her suggestions have reportedly been ignored.
DOGE’s influence has extended beyond federal agencies. The department attempted to assign a team to oversee the Vera Institute of Justice, a nonprofit organization. This move was retracted after it was revealed the Department of Justice had recently rescinded $5 million in federal grants to the institute.
Despite the controversies, Trump has continued to endorse Musk and DOGE, emphasizing the administration’s commitment to reducing government expenditures. However, with Musk’s tenure as a special government employee nearing its end in May, the future trajectory of DOGE’s initiatives remains uncertain.
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