In the first month of President Donald Trump's second term, the newly established Department of Government Efficiency (DOGE), led by Elon Musk, has swiftly implemented a series of spending cuts across various federal departments.
These cuts are part of a broader effort to reduce federal expenditures and streamline government operations, but they've also sparked controversy and concern among some about the potential impacts on essential services.
Why It Matters
DOGE's aggressive cost-cutting measures are poised to reshape numerous facets of the federal government. Proponents argue these cuts are necessary to eliminate waste and reduce the federal deficit, while critics warn that they could undermine critical services and functions.
The debate highlights the broader tensions in U.S. politics over the size and role of government, making this an essential issue with far-reaching implications.
What To Know
Recent federal budget cuts have targeted a variety of sectors, from education to international aid, sparking a broad debate on their impact on essential government functions and public services.
DOGE announced on its website that it has achieved $55 billion in federal savings since Trump's inauguration, attributing these savings to contract cancellations, workforce reductions and asset sales—though the published receipts add up to roughly $16.5 billion. The agency noted discrepancies in the totals and committed to regularly updating the site with new data.
The overall projected savings may amount to as little as $2 billion, according to NPR. Over a third of the contracts listed on the DOGE website wouldn't result in any financial savings if terminated, NPR reported.
Read more: How DOGE Could Impact Pentagon Spending
Full List of DOGE Spending Cuts
The following departments and agencies have or are experiencing savings cuts in the form of contracts, real estate lease cancellations and more, according to the official DOGE website:
- Department of Education (ED)
- U.S. Agency for International Development (USAID)
- Department of Defense (DoD)
- National Institutes of Health (NIH)
- Department of Homeland Security (DHS)
- Environmental Protection Agency (EPA)
- Department of Health and Human Services (HHS)
- General Services Administration (GSA)
- Office of Personnel Management (OPM)
- Department of Agriculture (USDA)
- Department of Commerce (DOC)
- Department of Housing and Urban Development (HUD)
- Consumer Financial Protection Bureau (CFPB)
- Department of the Treasury (TREAS)
- Department of Labor (DOL)
- Food and Drug Administration (FDA)
- Department of Justice (DOJ)
- Social Security Administration (SSA)
- Department of State (DOS)
- Department of Veterans Affairs (VA)
- Small Business Administration (SBA)
- Department of Transportation (DOT)
- Federal Trade Commission (FTC)
- U.S. Geological Survey (USGS)
- U.S. Fish and Wildlife Service (FWS)
- Bureau of Indian Affairs (BIA)
- Federal Communications Commission (FCC)
- National Labor Relations Board (NLRB)
- Securities and Exchange Commission (SEC)
- Department of Energy (DOE)
- National Archives and Records Administration (NARA)
- Railroad Retirement Board (RRB)
Which Department Has Experienced the Majority of DOGE Spending Cuts?
USAID has faced the most drastic cuts at $6.5 billion, according to receipts on DOGE's official website. The agency is listed first on DOGE's list of the top ten total contract savings as well as for contract savings as a percentage of the budget.
The Department of Education is listed as the second-highest in total contract savings at $502 million in savings, per DOGE receipts.
Government Agencies Hit with Federal Layoffs
Over 200,000 federal workers have been laid off since Trump took office, and about 75,000 federal employees have accepted buyout plans known as "deferred resignations," per the Office of Personnel Management.
Here are the government agencies, departments and bureaus that have experienced or are being targeted for layoffs by DOGE:
- Consumer Financial Protection Bureau
- Department of Agriculture (including the U.S. Forest Service)
- Department of Education
- Department of Energy
- Department of Health and Human Services
- Department of Homeland Security
- Department of the Interior (including the National Park Service)
- Department of Veterans Affairs
- Environmental Protection Agency
- General Services Administration
- Internal Revenue Service (IRS)
- National Aeronautics and Space Administration (NASA)
- Office of Personnel Management
- Small Business Administration
- United States Agency for International Development
All of these government entities have also been targeted for spending cuts.
Read more: Will Americans Get a 2025 Stimulus Check Refund Thanks to DOGE's Savings?
What People Are Saying
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek early this month: "DOGE is an unprecedented and highly controversial approach to federal spending reform. From a financial planning perspective, there are critical concerns about its methodology and long-term implications..."
"These cuts pose significant risks to long-term governmental and economic stability. While cost-cutting measures can be beneficial, the current approach lacks any transparent methodology or comprehensive impact analysis. In my opinion, the potential destabilization of critical agencies like USAID could compromise national security and international diplomatic relationships."
Jessica Riedl, a senior fellow at the Manhattan Institute, a conservative think tank, told NPR: "Think of Congress and its budget as the debt-ridden dad on the way to buy a $250,000 Ferrari on the credit card, and DOGE is the $2 off gas card he used along the way. It's great that he saved $2 on gas, but I think his wife may be more concerned about the $250,000 car."
Everett Kelley, national president of the American Federation of Government Employees (AFGE), stated in a press release: "These firings are not about poor performance -- there is no evidence these employees were anything but dedicated public servants. They are about power. They are about gutting the federal government, silencing workers and forcing agencies into submission to a radical agenda that prioritizes cronyism over competence."
What Happens Next
Per the official DOGE website, the department's savings estimates were last updated Monday, February 17, and "will initially be updated twice per week," eventually transitioning to "real-time" coverage.
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