Musk and DOGE Greatly Inflated Claimed Budget Cuts

NEWS & RESEARCH

Armed with a chainsaw, Elon Musk initially vowed his Department of Government Efficiency (DOGE) would cut $2 trillion from the federal budget, about 30%. And while DOGE did dismantle the US Agency for International Development, DOGE acknowledged that it had cut the budget by only 3%, one-tenth of Musk’s claim. But even that amount appears to be greatly inflated. The Government Accountability Office (GAO) found that DOGE consistently overstated its government savings and posted unverified claims on its public "Wall of Receipts." In an audit requested by Sens. Gary Peters and Richard Blumenthal examining about half DOGE's claimed cuts, investigators discovered that 108 of 264 listed lease terminations were already underway before DOGE was created, nearly 2,000 contracts listed as terminated remained active, and roughly $35 billion of $61 billion in contract savings could not be verified or corroborated.

SOURCES: The Guardian | NPR | Washington Post | Politico | Washington Post

ANALYSIS & OPINION

Sen. Peters said in a statement: "Elon Musk and the Trump administration claimed billions of dollars in savings it could not substantiate, took credit for work already underway, and refused to show its work, all while putting Americans' sensitive data at risk and hollowing out critical agencies."  A New York Times analysis revealed that despite firing civil servants and stripping public aid, DOGE failed to reduce federal spending. Most claimed savings were labeled an "accounting mirage," as overall spending actually increased. Los Angeles Times columnist Michael Hiltzik warned that DOGE’s breach of SSA privacy could permanently shatter public confidence in the program.

SOURCES: New York Times | Los Angeles Times | CBS News

HOW TO FIX IT

Federal action:

Legislation:S.1208 - Privacy Act Modernization Act of 2025

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