In an investigative report, The New York Times demonstrated that Elon Musk failed to deliver on his claim that he could cut $2 trillion from the federal budget. Not only did he fall short, but his efforts were so reckless that they might cost money instead of saving it.
Having launched his so-called “Department of Government Efficiency” (which is not a department at all and was never authorized by Congress), Musk and his then-partner Vivek Ramaswamy promised to cut $2 trillion. Their goal dropped to $1 trillion, and Vivek left the team to run for Governor in Ohio.
Some of DOGE’s claims turned out be be inflated (one alleged saving of $8 billion turned out to be a saving of only $8 million.
Musk eventually reduced his saving claim to only $150 billion.
Since DOGE began, thousands of federal employees have been fired. Some have been rehired after courts decided their firing was illegal. Some have been fired, rehired, and fired again. Some career employees have taken buyout offers. Tens of thousands of federal employees have been laid off, without regard to their experience. There was no time for DOGE workers to evaluate each person they ousted, nor did DOGE have the competence to judge its victims.
The New York Times concluded that DOGE’s activities may actually save nothing at all. Firing workers is expensive when you do it the wrong way, the DOGE way.
Elizabeth Williamson of The New York Times wrote:
President Trump and Elon Musk promised taxpayers big savings, maybe even a “DOGE dividend” check in their mailboxes, when the Department of Government Efficiency was let loose on the federal government. Now, as he prepares to step back from his presidential assignment to cut bureaucratic fat, Mr. Musk has said without providing details that DOGE is likely to save taxpayers only $150 billion.
That is about 15 percent of the $1 trillion he pledged to save, less than 8 percent of the $2 trillion in savings he had originally promised and a fraction of the nearly $7 trillion the federal government spent in the 2024 fiscal year.
The Partnership for Public Service, a nonprofit organization that studies the federal work force, has used budget figures to produce a rough estimate that firings, re-hirings, lost productivity and paid leave of thousands of workers will cost upward of $135 billion this fiscal year. At the Internal Revenue Service, a DOGE-driven exodus of 22,000 employees would cost about $8.5 billion in revenue in 2026 alone, according to figures from the Budget Lab at Yale University. The total number of departures is expected to be as many as 32,000.
Neither of these estimates includes the cost to taxpayers of defending DOGE’s moves in court. Of about 200 lawsuits and appeals related to Mr. Trump’s agenda, at least 30 implicate the department.
The errors and obfuscations underlying DOGE’s claims of savings are well documented. Less known are the costs Mr. Musk incurred by taking what Mr. Trump called a “hatchet” to government and the resulting firings, agency lockouts and building seizures that mostly wound up in court.
“Not only is Musk vastly overinflating the money he has saved, he is not accounting for the exponentially larger waste that he is creating,” said Max Stier, the chief executive of the Partnership for Public Service. “He’s inflicted these costs on the American people, who will pay them for many years to come.”
Mr. Stier and other experts on the federal work force said it did not have to be this way. Federal law and previous government shutdowns offered Mr. Musk a legal playbook for reducing the federal work force, a goal that most Americans support. But Mr. Musk chose similar lightning-speed, blunt-force methods he used to drastically cut Twitter’s work force after he acquired the company in 2022.
“The law is clear,” said Jeri Buchholz, who over three decades in public service handled hiring and firing at seven federal agencies, including NASA and the Defense Intelligence Agency. “They can do all the things they are currently doing, but they can’t do them the way they’re doing them. They can either start over and do it right, or they can be in court for forever.”