Elon Musk and Donald Trump in the Oval Office with Elon’s son X. Credit: The White House
So far, the Department of Government Efficiency (DOGE) has made significant cuts and taxpayer savings, including over $1 billion in diversity, equity, and inclusion (DEI) contracts, $6.5 billion in reductions from the U.S. Agency for International Development (USAID), $502 million from the Education Department, and savings across several other departments such as Social Security, Agriculture, and Health and Human Services. Additionally, DOGE has laid off thousands of federal employees, terminated over 1,100 contracts, and restructured various government programs. And now, DOGE is considering sending a $5,000 check to every American as part of its efforts to provide financial relief to taxpayers.
Elon Musk’s Department of Government Efficiency (DOGE), created through an executive order by President Donald Trump, is tasked with reducing U.S. government spending and improving efficiency. Operating as an advisory body, DOGE aims to streamline operations, particularly in government IT systems, and save taxpayers money. Musk’s team has focused on eliminating wasteful practices, including cutting over $1 billion in diversity, equity, and inclusion (DEI) contracts, reducing the size of the federal workforce, and challenging agencies like the U.S. Agency for International Development (USAID) to reallocate resources more effectively.
In the first month of Trump’s administration, DOGE implemented significant workforce reductions, laying off thousands of federal employees, including probationary workers. For example, the Department of Veterans Affairs dismissed over 1,000 employees, while the Education Department fired at least 39 staff members and cut nearly $900 million from the Institute of Education Services. Other agencies, including Homeland Security, and Energy, also made cuts. At the Department of Health and Human Services, about 1,300 employees were laid off, including a large portion of the workforce at the Centers for Disease Control and Prevention. Additionally, Trump’s administration removed at least 17 inspectors general, a move criticized by Democrats, and fired career prosecutors in the Department of Justice. The Consumer Financial Protection Bureau (CFPB) was essentially shut down, and foreign aid programs like those run by USAID were paused, leading to further layoffs.
DOGE claims to have saved $55 billion in federal funds, with $8.6 billion of this coming from cutting 1,127 federal contracts across 39 agencies. However, the total savings and specifics are difficult to verify as only a portion of the data has been disclosed. Additionally, DOGE has reported savings from fraud detection, asset sales, grant cancellations, workforce reductions, program changes, and regulatory savings. Among the disclosed cuts are $6.5 billion from USAID, $502 million from the Education Department, and further reductions in Agriculture, Health and Human Services, and Social Security.
On February 12, The Department of Government Efficiency (DOGE) Subcommittee’s inaugural hearing revealed significant waste, fraud, and improper payments across federal agencies, which collectively cost taxpayers billions of dollars annually. The Subcommittee, in partnership with DOGE, is working to improve payment systems, close loopholes, and implement better identity verification and auditing processes to eliminate fraud. Expert witnesses, including Dawn Royal and Haywood Talcove, emphasized the importance of eliminating self-attestation, using advanced technology for identity verification, and enforcing continuous auditing to prevent fraud. They highlighted the low investment in fraud prevention within programs like SNAP, where less than 1/20th of 1% of the budget goes toward detecting and prosecuting fraud.
One of the most alarming findings was the fraud rate in the public sector, which is around 20%, compared to the private sector’s 3%, largely due to outdated tools and processes. The committee outlined measures to curb fraud, such as eliminating self-attestation in welfare programs and implementing the National Accuracy Clearinghouse to prevent duplicate participation in social welfare programs. Additionally, the committee explored the impact of policy decisions made by the Biden administration, which some argue have exacerbated improper payments, leading to billions of taxpayer dollars being funneled into wasteful or fraudulent programs.
A key part of the committee’s efforts to address this problem is the Department of Government Efficiency’s push to modernize the 1974 Privacy Act, allowing for the use of AI and other advanced technologies to improve payment systems. These reforms aim to reduce improper payments, which have reached a staggering $2.7 trillion since 2003. The committee also examined how improper payments have contributed to funding left-wing activism and organizations, fueling concerns that taxpayer dollars are being misused to support partisan causes. With the DOGE’s ongoing work, there is a significant push to hold the federal bureaucracy accountable and ensure more efficient use of public funds.
The administration’s efforts to reduce federal spending also include a proposed $5,000 “DOGE Dividend” check to American taxpayers. This payout, more than double the average tax refund, could provide significant financial relief to households, especially since 70% of American households are financially unhealthy. While the proposal has sparked concerns among Democrats about inflation, it offers a contrast to previous government spending, which has focused on increased debt and funding programs for non-citizens and individuals not working. Given the amount of money already allocated to such programs, it would be refreshing for taxpayers to receive a return for the funds they’ve contributed to the system.
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