Elon Musk's Department of Government Efficiency, affectionately called Doge, has made headlines with assertions of massive cost reductions in U.S. government spending. After its establishment under former President Trump, the agency boasts that it has saved over $10 billion weekly, accumulating almost $200 billion in just over three years. During a recent interview, Trump touted Doge's financial impact, but BBC Verify unearthed discrepancies behind these substantial claims.
The Doge website has recently claimed it targets the cancellation of contracts, grants, and leases initiated by past administrations. Its ambitions include reducing fraud and slashing the workforce across government departments. Musk, originally aiming for $2 trillion in cuts, recently revised his target to $150 billion by 2026, which is significant given the current federal budget of $6.75 trillion.
The agency has reported a running savings total of $160 billion but lacks transparency since less than 40% of these figures are individually detailed. An investigation by BBC Verify indicates that only half of the itemized savings linked to valid documents supports the claimed totals. Notably, there were examples of accounting miscalculations, such as Doge mistaking an $8 billion savings claim from an immigration contract, which was, in fact, valued at only $8 million.
Doge's largest listed saving claimed to be $2.9 billion by terminating a 2023 contract for a Texas facility meant to house migrant children. Critics refer to the $2.9 billion figure as speculative, with claims that actual savings would be closer to $153 million when accounting for operational costs. Furthermore, the facility did not reach its projected limit, casting doubt on the claimed savings.
The second-largest cited saving of $1.9 billion came from a cancelled IRS contract with Centennial Technologies but raised questions of its validity. Documents indicated no expenditures were made, yet experts pointed out that governmental recordkeeping is often unreliable.
Two additional notable savings included a $1.76 billion cancellation of an IT services contract with the Department of Defense and a $1.75 billion cancellation of a USAID grant to Gavi. Both figures have sparked controversy over their legitimacy, with not enough evidence provided to substantiate Doge's claims.
In summary, while it is apparent that Doge seeks to cut government spending, ongoing investigations reveal a need for more concrete evidence to substantiate its savings claims. As the organization progresses, transparency remains paramount for validating its fiscal assertions. BBC Verify has reached out to the White House for comprehensive evidence, with anticipation surrounding further clarity on these high-stakes savings.
