Understanding DOGE Reduction of Federal Spending in 6 Charts

Elon Musk led Department of Government Efficiency (DOGE) has reported that the government has cut $65 billion in spending during the first six weeks of President Donald Trump’s administration.

The Department of Government Efficiency, particularly under Musk’s leadership, has garnered praise from President Trump and a significant portion of the public. However, it has also faced criticism from some who express concerns about the security of government data and the legality of certain government actions, such as the closure of the United States Agency for International Development (USAID) and the termination of thousands of federal employees.

While the Department of Government Efficiency is an advisory body with no authority to reduce funding or lay off employees, officials from relevant agencies have taken action based on recommendations.

This article will systematically examine the government departments that the Department of Government Efficiency has suggested cut spending the most. Many of these cuts represent ongoing savings, as the projects or services will continue for years. So far, the amount of cuts made only represents a small fraction of Musk’s projected total reductions.

Musk aims to cut $2 trillion from the national budget by next year, but many analysts believe this target is unlikely. The federal budget for 2023 was $6.1 trillion with a deficit of $1.7 trillion.

The General Services Administration (GSA) owns or leases over 8,600 buildings across the country, some of which are vacant or underutilized.

To date, the Department of Government Efficiency has recommended the cancellation of 97 lease agreements.

The GSA also has 188 vacant buildings and another 96 buildings with a vacancy rate of at least 50%. The total vacant space amounts to approximately 28 million square feet, enough to cover 140 city blocks in Manhattan.

The federal government alone owns about 3 million square feet of office space in the Washington, D.C. area. A report titled “A New Vision for our Nation’s Capital: The Future of Federal Facilities” presented at a meeting of the Public Meetings Control Board on January 28 highlighted properties in the D.C. area that are being considered for disposal, providing an opportunity to re-plan the future of the capital.

Some government waste stems from carelessness in work or inappropriate spending choices. Common individual errors include forgetting to cancel free trial subscriptions or investing more funds into renovation projects that have exceeded the budget.

For instance, according to the Department of Government Efficiency report, the GSA canceled over 114,000 unused software licenses and 15 underutilized or redundant software applications based on the Department’s recommendations. This results in an annual saving of $9.6 million.

The Department of Government Efficiency noted that the Office of Personnel Management (OPM) undertook a website overhaul using a $6 million loan from the Technology Modernization Fund. Despite having spent $5 million, the project remains incomplete. Even upon completion, hosting services would cost $400,000 annually, whereas the current website costs $1,000 annually. The OPM has since canceled the project.

The implementation of the Trump administration’s priorities has led to cuts in some expenditures, such as the elimination of DEI (Diversity, Equity, and Inclusion) policies and gender-related programs.

This move has shown significant impact. Funding for the DEI scholarship program aimed at Southeast Asian country Myanmar was cut by $28 million; the Gender Equality and Women’s Empowerment Center was reduced by $41 million, DEI-related training grants were cut by $373 million, and the Fair Aid Center was reduced by $33 million.

Some cuts reflect shifts in other priorities, such as the $37 million cut for climate financing for Pacific island nations and a $1.9 billion reduction for the Internal Revenue Service’s information technology operations.

Due to the Trump administration’s “America First” policy on foreign aid and scrutiny over how USAID utilizes funds, the agency has undergone significant restructuring, resulting in over $5.2 billion in expenditure reductions so far.

In January, the Office of Personnel Management offered a deferred resignation scheme for federal employees willing to resign, with seven months of continued pay. Approximately 77,000 employees opted for this scheme.

The government also mandated federal employees to return to the office by March 1. Many are unaware that since the end of the Severe Acute Respiratory Syndrome Coronavirus global epidemic in May 2003, many have been working from home.

“We want to retain every employee who is doing essential work and performing well. However, if the job is not indispensable, or they are not doing it well, their names clearly should not appear on the public payroll,” Musk stated on February 26.

The Office of Personnel Management has not yet disclosed the number of layoffs, with some layoff plans being halted or delayed by federal judges. A website aggregating media reports on layoffs listed information on over 33,000 federal employees laid off from 13 departments and 13 independent agencies. The Epoch Times has requested clarification from the Office of Personnel Management on this matter.

Excluding active-duty military personnel and postal workers, the federal government employs 2.4 million workers, with an average salary of about $80,300.

On the other hand, the Department of Government Efficiency has made errors in canceling contracts, such as canceling an Ebola virus prevention project and laying off crucial nuclear technology engineers for the Department of Defense.

In both cases, these actions were quickly rectified.

“We will make mistakes. We won’t be perfect,” Musk said during the first Cabinet meeting held on February 26.

“When we make mistakes, we will correct them swiftly,” Musk added, citing the example of restoring funding for the Ebola virus prevention initiative.

One of the goals of the Department of Government Efficiency is to prevent errors. The federal government’s self-reported improper payment rate is around 4%. This means that nearly $150 billion worth of medical reimbursements, contracts, and other services were improperly paid last year due to the lack of proper documentation or other errors.

Since assuming office, the Department of Government Efficiency has identified $65 billion in federal expenditures within six weeks under the Trump administration, taking a solid step towards its $2 trillion total goal.