Key Takeaways
- DOGE canceled 104 DEIA-related contracts by February 2025, saving over $1 billion across 30 agencies, including $500M from OPM.
- By February 4, 2025, DOGE terminated 34 federal leases, saving $47.6M as part of reducing underused properties.
- On February 7, 2025, USAID employees were placed on leave, with oversight set to shift partially under the State Department.
The Department of Government Efficiency (DOGE), established by former President Donald Trump 🇺🇸 and led by Elon Musk, has been making substantial changes to federal spending and operations since its formation. With a mission to cut costs and make government processes more efficient, DOGE has taken major steps that impact contracts, government programs, and agency operations. By focusing on reducing spending, eliminating duplicate efforts, and shutting down select programs, DOGE hopes to achieve a reduced federal deficit.
Major Cuts to Federal Contracts and Programs
DOGE has concentrated much of its efforts on canceling contracts related to diversity, equity, inclusion, and accessibility (DEIA) initiatives. As of early February 2025, the department has reported cutting over 100 contracts across various agencies. These actions were primarily aimed at saving money while streamlining federal operations.
Some of the most notable reductions include:
- January 29, 2025: DOGE canceled 85 contracts linked to DEIA programs across more than 12 agencies, saving an estimated $1 billion.
- February 3, 2025: The number of canceled contracts increased to 104, involving 30 federal bodies. Savings from these cancellations surpassed $1 billion, with significant reductions in:
- The Office of Personnel Management: nearly $500 million
- USAID: $228 million
- The Department of Agriculture: $110 million
- On the same date, DOGE announced the elimination of 36 contracts valued at $165 million across six agencies.
- February 4, 2025: DOGE cut 12 contracts from the Government Services Administration and the Department of Education, amounting to $30 million in savings.
Additionally, DOGE targeted specific programs, including a $45 million scholarship program for students in Burma, which was canceled in early February 2025.
Reduction of Leases for Federal Buildings
Another area where DOGE has focused its efforts is the termination of leases for underused or unnecessary federal properties. Taxpayers are expected to see substantial savings as a result.
- By February 2, 2025, DOGE had terminated 22 leases over six days, which resulted in cost reductions totaling $44.6 million.
- Later, on February 4, 2025, the department canceled another 12 leases, freeing up an additional $3 million.
These canceled leases reflect DOGE’s commitment to reducing expenses tied to unneeded office spaces.
Agency-Specific Actions: USAID Under Scrutiny
The U.S. Agency for International Development (USAID) has been a significant target for DOGE. The focus on USAID aligns with the Trump administration’s broader goal of reshaping foreign aid and development operations. On February 5, 2025, DOGE took dramatic action that left USAID employees locked out of their headquarters as the organization’s website went offline. Additionally, direct-hire employees were placed on administrative leave, effective February 7, 2025.
To add to the organizational changes, Secretary of State Marco Rubio 🇺🇸 was named acting director of USAID. The Trump administration has suggested that parts of USAID may eventually be relocated under the State Department’s jurisdiction.
Hiring Freezes and Workforce Reductions
DOGE has implemented a hiring freeze for positions it considers “unnecessary.” While specific numbers have not been disclosed, the freeze is reportedly generating significant financial savings for the federal government. This hiring freeze is one aspect of a broader attempt to scale back the federal workforce.
DOGE’s Claimed Savings
One of DOGE’s most notable claims has been the rate at which savings are being achieved:
- On January 28, 2025, DOGE declared that it was saving the federal government approximately $1 billion per day.
- These savings come from three primary areas:
- Halting hiring for unnecessary positions
- Removing DEIA-related contracts and programs
- Preventing payments to certain foreign organizations
While Musk has projected optimism, he acknowledged that achieving a $4 billion daily reduction—his goal for fiscal year 2026—is ambitious. On January 31, 2025, Musk described the target as being within reach if current trends continue.
Legal Foundation for DOGE’s Actions
DOGE’s initiatives are authorized by executive orders signed by former President Trump 🇺🇸. On the day of his inauguration, Trump established DOGE as a temporary body tasked with improving government efficiency. The organization is set to operate for 18 months, expiring on July 4, 2026.
Another executive order instructed all federal agency leaders to terminate, as extensively as legally possible, all contracts and grants tied to equity programs. Additionally, the Office of Management and Budget was tasked with coordinating the removal of discriminatory programs and initiatives, often referred to as DEIA policies, across the federal government.
Controversy Surrounding DOGE’s Actions
Despite the claimed benefits, DOGE’s actions have sparked considerable debate. For example, its access to sensitive federal systems, including the Treasury Department’s payment systems, raised concerns. However, treasury officials clarified that DOGE’s access is “read-only,” meaning that DOGE can view but not alter payment functions.
Opposition has also come from members of Congress, especially Democrats, some of whom have staged rallies and hearings to voice their concerns. Critics argue that cutting DEIA programs and reducing overseas scholarship funds may harm certain communities. Still, DOGE has maintained that such measures are necessary to achieve budgetary goals.
Elon Musk’s Vision for Future Reductions
As DOGE continues its work, its objectives are expanding. For instance, Musk indicated that reducing spending by $4 billion daily would be essential to cutting the federal deficit by $1 trillion in fiscal year 2026. He frequently shares updates on DOGE’s actions, particularly on his personal social media accounts.
DOGE’s potential next steps could include an audit of the Internal Revenue Service (IRS). A recent social media poll by Musk hinted at this possibility, suggesting that DOGE intends to broaden its oversight to additional agencies.
Long-Term Effects of DOGE’s Cuts
While DOGE reports impressive savings, the long-term implications of these cuts remain unclear. Reducing funding for DEIA programs and halting certain scholarship opportunities may spark criticism, particularly among impacted groups. Furthermore, DOGE’s structural decisions concerning agencies like USAID could significantly reshape how the U.S. manages international aid and national staffing.
Wrapping Up DOGE’s Efforts
Significant daily savings have positioned DOGE as a central player in the Trump administration’s federal budget strategy. By eliminating costly contracts, removing unnecessary leases, and trimming federal workforce expenses, Musk and DOGE aim to create a leaner and more efficient government. However, the full scope of DOGE’s effectiveness will likely not be fully seen until much later, perhaps even after its scheduled dissolution in mid-2026.
For further information on current government policies and financial management, readers can refer to the U.S. Department of the Treasury’s official website at Treasury.gov. For analysis on DOGE’s broader implications, VisaVerge.com has closely followed its development and its influence on government policy.
As DOGE heads into its next phases under Musk, observers will undoubtedly continue to evaluate its successes, shortcomings, and long-term impact on federal efficiency and public services nationwide.
Learn Today
DEIA (Diversity, Equity, Inclusion, and Accessibility) → Initiatives aimed at promoting equal opportunities, reducing discrimination, and ensuring inclusion across organizations and institutions.
Administrative Leave → Temporary suspension from work with pay while investigations or decisions regarding employment status are underway.
Hiring Freeze → A government or organization’s temporary halt on hiring new employees to reduce costs or reassess priorities.
Executive Order → A directive issued by the President of the United States that has the force of law without Congressional approval.
Fiscal Year → A one-year period used for budgeting and financial reporting; the federal government’s fiscal year starts on October 1.
This Article in a Nutshell
Elon Musk’s Department of Government Efficiency (DOGE), born under Trump, claims $1 billion daily savings by slashing diversity programs, federal leases, and foreign scholarships. Praised for cutting waste but criticized for targeting equity, DOGE faces controversy. Bold cuts promise efficiency, yet their lasting impact on public services may define its legacy.
— By VisaVerge.com
