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    Home » How Elon Musk’s Doge Claims to Have Slashed Billions from US Government Spending
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    How Elon Musk’s Doge Claims to Have Slashed Billions from US Government Spending

    Silke MayrBy Silke MayrApril 26, 2025Updated:April 28, 2025No Comments4 Mins Read
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    How Elon Musk's Doge Claims to Have Slashed Billions from US Government Spending
    How Elon Musk's Doge Claims to Have Slashed Billions from US Government Spending
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    The Department of Government Efficiency (Doge), led by Elon Musk and created under President Trump’s administration, claims to have saved the United States almost $200 billion since 2025. Announced on 23 April, President Trump praised Musk’s agency for its efforts to cut government waste dramatically.

    Doge, according to its official website, focuses on cancelling unnecessary grants, leases, and contracts from previous administrations. It also aims to reduce fraud and shrink the size of the federal workforce. However, a detailed analysis reveals that while the numbers are impressive, clear evidence behind many claims is often missing.

    Doge’s Reported Savings: Big Numbers, Little Proof

    In October, Musk stated he planned to cut “at least $2 trillion” from the federal budget. Later, this goal shifted to $1 trillion. By 10 April 2025, Doge forecast savings of $150 billion by 2026.

    The U.S. federal budget for the previous year was $6.75 trillion. Doge’s website features a live tally showing $160 billion saved by 20 April. However, fewer than 40% of the savings listed include detailed breakdowns or attached receipts.

    When EuroNews24 reviewed Doge’s available data on 23 April, only about half of the amounts had supporting documents. Errors have also surfaced — including one where Doge mistakenly claimed an $8 billion saving by cancelling an $8 million contract.

    Doge officials say they are uploading receipts “clearly and transparently,” although currently only 30% of the claimed savings have documentation. Some receipts remain hidden for “legal reasons,” according to a Doge update on 20 April.

    Investigating Doge’s Largest Reported Savings

    An examination of Doge’s four largest savings shows a worrying pattern. The agency claims these savings total $8.3 billion. Yet experts say these numbers seem inflated.

    Three of these savings relate to documents in the Federal Procurement Data System (FPDS). This federal database tracks contracts, showing maximum spending limits and current amounts spent.

    David Drabkin, a specialist who helped design FPDS, warns that ceiling amounts in the database do not equal real spending. He noted that savings often reflect maximum contract values rather than actual government payouts.

    For example, vaccine research contracts often set high maximum limits but end up costing much less. This issue means Doge’s savings may cover projections for several years instead of immediate cuts.

    Example: The Texas Facility Contract

    Doge’s largest claimed saving comes from cancelling a $2.9 billion contract for a migrant children’s facility in Texas. This contract, signed under President Biden in 2023, was scheduled for yearly reviews through 2028.

    Sources familiar with the agreement revealed that Doge’s figure is based on hypothetical costs, not actual expenses. In reality, the savings likely amount to about $153 million — much lower than the announced $2.9 billion.

    The facility’s operating costs were around $18 million per month. Importantly, the center never reached full capacity, peaking at about 2,000 children.

    Attempts to get comments from awarding agencies, including the Department of Health and Human Services, were unsuccessful.

    Further Analysis of Other Major Claimed Savings

    Doge’s second-largest saving involves cancelling a $1.9 billion contract between the IRS and Centennial Technologies. However, the linked documents show only a ceiling amount — with no recorded spending at the time of cancellation.

    Mr. Drabkin highlighted that missing spending data could result from incomplete record-keeping rather than actual savings. The IRS contract started in August 2024 and was supposed to last until 2031. Centennial Technologies’ CEO confirmed the contract was already under cancellation review during the Biden era but did not respond to further questions.

    Another major saving comes from cancelling a Department of Defense IT contract with A1FEDIMPACT. Doge states it saved $1.76 billion. However, Higher Gov, an independent database, confirmed this was again a ceiling value, not actual spending. The Pentagon did not provide clarification.

    The fourth biggest saving relates to cancelling a $1.75 billion USAID grant to Gavi, a global health group. Doge’s documents show USAID paid Gavi $880 million during Biden’s term. Gavi confirmed the payments but said it had received no notice of cancellation. Internal sources also found no evidence supporting Doge’s $1.75 billion saving claim. USAID’s Office of Inspector General did not respond to inquiries.

    While Doge has likely contributed to reducing some government spending, full verification of the savings remains elusive. Without clear, consistent documentation, it is difficult to confirm the full scale of Doge’s reported achievements.

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    Silke Mayr
    Silke Mayr
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    Silke Mayr is a seasoned news reporter at EuroNews24, specializing in general news with a keen focus on international events. Her insightful reporting and commitment to accuracy keep readers informed on global affairs and breaking stories.

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