Elon Musk’s so-called Department of Government Efficiency has only saved a small fraction of what the tech mogul pledged it would, according to a report.
Official figures from DOGE’s website say the cost-cutting task force has made $170 billion in savings—well short of the “at least $2 trillion” that Musk vowed to slash from the federal budget during President Trump’s re-election campaign. New analysis from the Financial Times claims that the amount of savings that can be verified is much less than the official $170 billion claimed.
The FT investigation found that the claimed savings numbers are inflated and that the reductions include a stop in spending on contracts that had already been shortened or were due to expire.
Among the claimed savings is $31.8 billion tied to the cancellation or amendment of 10,248 contracts, according to the FT. But the investigation was only able to match the cost reduction claimed by DOGE in roughly 6,700 of the cases.
The investigation also uncovered that DOGE’s savings numbers included 155 “indefinite delivery vehicles” (IDVs), contracts that provide flexibility for agencies to purchase goods and services. DOGE had used the highest possible prices agencies can legally spend on particular items to calculate the savings generated by cancelling these contracts, according to the FT.
DOGE also attributed cost reductions kickstarted by the previous administration in its calculations, including the cancellation of an IT contract for the Department of Defense that was due to run until 2029 and was worth $1.4 billion. The decision to end the agreement prematurely was taken in September 2024 under the Biden administration.
The White House and lawyers for Musk did not immediately respond to requests for comment.
In addition to allegations of inflated and overstated numbers, the Penn Wharton Budget Model claims that government spending has actually gone up on DOGE’s watch.
Total spending rose by 6.3 percent since President Donald Trump returned to power when compared with the first four months of 2024, Politico reported.
Musk announced last month that he is stepping back from his role at DOGE. While he is still involved in the department’s business, he is no longer working from the White House.
Tesla has taken a financial hit in the past three months as backlash swelled over Musk’s role in a nationwide firing spree that has angered voters.
In April, a financial analyst warned that the electric vehicle company could continue to suffer because of Musk’s close and public association with the Trump administration.
The post Musk’s DOGE Is Falling Spectacularly Short of His Target appeared first on The Daily Beast.
