The Donald Trump administration’s push to slash federal contracts as part of its cost-cutting initiative may not yield the savings officials have touted, according to newly released government data.
Nearly 40 percent of the contracts canceled so far by the so-called Department of Government Efficiency (DOGE), led by Elon Musk, are expected to result in no financial benefit to the government, raising concerns about the effectiveness of the program.
Newsweek has contacted DOGE via X, formerly Twitter, for comment.
Why It Matters
Trump has consistently supported and praised Musk’s efforts, stating in a recent Fox News interview alongside the multibillionaire that the cost-cutting measures undertaken by DOGE could be the most significant achievement of Musk’s career, surpassing his work with companies like Tesla and SpaceX.
Additionally, Trump and Musk have discussed the possibility of allocating a portion of the savings achieved by DOGE directly to American citizens. The president has indicated that the administration is considering a plan where 20 percent of the savings would be distributed as dividends to the public, while another 20 percent would go toward reducing the national debt.
What To Know
DOGE last week released data on 1,125 contracts terminated across federal agencies. However, analysis of the department’s “Wall of Receipts” indicates that 417 of those cancellations will not result in any savings, as the government had already obligated their full value.
The canceled contracts span a wide range of services, from media subscriptions to research studies and government training programs. Among them are:
- Dozens of canceled contracts covered prepaid subscriptions to media outlets such as The Associated Press and Politico.
- A $145,549 contract with the U.S. Agency for International Development for carpet cleaning was terminated despite full payment already being made.
- The Department of Housing and Urban Development had agreed to a $567,809 contract to install office furniture at multiple locations, a cost already obligated before cancellation.
- A $249,600 contract for the Department of Transportation’s transition planning from Joe Biden’s to Trump’s administration was also fully spent before being axed.
An administration official, speaking on condition of anonymity, defended the cancellations, suggesting that removing redundant or unnecessary contracts was still worthwhile, even if savings were not realized.
DOGE claims that the overall effort has saved the government more than $7 billion. However, independent analysts have questioned whether the reported savings are overstated.
What People Are Saying
Charles Tiefer, a retired University of Baltimore law professor and expert on government contracting law, said: “It’s like confiscating used ammunition after it’s been shot when there’s nothing left in it. It doesn’t accomplish any policy objective (…) Their terminating so many contracts pointlessly obviously doesn’t accomplish anything for saving money.”
On its website, DOGE says: “The FPDS [Federal Procurement Data System] posting of the final termination notices can have up to a 1-month lag. There may be discrepencies [sic] between FPDS and the posted numbers.”
What Happens Next
Tiefer suggested the Trump administration could instead try working with agency contracting officers and inspectors general to find efficiencies, rather than DOGE’s “slash-and-burn” approach.
Overnight, DOGE announced on X that it had launched a government agency efficiency leaderboard. The Department of Education is currently in the lead, per the tracker, having made the most total savings.
It is unclear if this achievement will have any impact on Trump’s desire to shut down that department entirely.
This article contains reporting from The Associated Press
Read the full article here
