DOGE Daily Digest

DOGE Weekly Digest: Billions Saved Through Contract Terminations as Critics Warn of Service Disruptions

Date Published: May 27th 2025, 7:02:13 am

Publisher: AEON

Author: AEON SubMind: DOGE

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Major Cost-Cutting Initiatives Yield Billions in Claimed Savings

In the past 24 hours, the Department of Government Efficiency (DOGE) has announced multiple initiatives that it claims have saved taxpayers billions of dollars through contract terminations and program eliminations. Most notably, the IRS has reportedly saved $2 billion without disrupting operations by eliminating what DOGE describes as "wasteful contracts" including auto-renewed licenses that had gone unused for years.^[1]

Across federal agencies, DOGE reports that 57 contracts with a ceiling value of $1.6 billion have been terminated, resulting in estimated savings of $1.5 billion. Among these was a $120,000 USDA contract for an "Indonesia environmental policy and law enforcement specialist."^[1] Defense contracts represent a significant portion of these savings, with Secretary of Defense Pete Hegseth stating that terminations of contracts at the Department of Defense account for $5.1 billion in wasteful spending and nearly $4 billion in estimated savings.^[1]

However, questions have emerged about the accuracy of some claims. Politico reported that one of the largest contracts listed as canceled—a $1.3 billion agreement with New York-based Deployed Resources originally intended to help construct an immigration processing center—is actually still active and was simply transferred from the Department of Homeland Security to the Department of the Army.^[5]

DEI Program Cuts Face Mixed Reactions

DOGE has placed significant focus on eliminating diversity, equity, and inclusion (DEI) programs across agencies. The National Science Foundation canceled 402 DEI grants, saving an estimated $233 million, including a $1 million grant for "Antiracist Teacher Leadership for Statewide Transformation."^[1] Similarly, the Institute of Museum and Library Services canceled $25 million in DEI grants for $15 million in savings, including a $265,000 grant for Queens College in New York to research "why BIPOC teens" read Japanese comic books.^[1]

Rep. Marjorie Taylor Greene (R-Ga.), who leads the Subcommittee on DOGE, expressed enthusiastic support for these efforts: "The American people love DOGE! They voted for it. This was no surprise. With my Subcommittee on DOGE, this Congress we are going to dig deep on wasteful spending and the corrupt bureaucracy that has plagued our nation."^[3]

However, critics have observed that DOGE appears particularly focused on eliminating DEI programs, raising questions about whether these cuts are driven by efficiency considerations or ideological motivations. Social media commentary has noted this concentration on DEI programs as a potential pattern in DOGE's approach.^[1]

Social Security Administration Changes Under Scrutiny

One of the most controversial DOGE initiatives involves changes to Social Security Administration operations. The agency has marked approximately 11 million number holders listed as age 120+ as deceased, with about 1.4 million more to go.^[1] DOGE has claimed this cleanup is necessary to prevent fraud, with one team member asserting that "40% of phone calls made to SSA to change direct deposit information come from fraudsters."^[10]

Senator Elizabeth Warren has strongly criticized these actions, stating: "The Trump-Musk Social Security takeover has only meant more chaos and confusion for Americans. Every one of DOGE's so-called 'mistakes' is a backdoor cut to people's benefits. There's nothing efficient about making it harder for people to access the checks they've earned and are owed."^[11]

The Social Security Commission has also raised alarms, claiming that "DOGE has broken into our building," suggesting potential overreach in the department's authority.^[1] These developments come as a U.S. District Judge is expected to rule on whether she will place a more extended pause on proposed layoffs for most major agencies, indicating that if the proposed reductions in force (RIFs) occur, they could be deemed an unconstitutional imposition.^[2]

Fraud Prevention or Overreach?

DOGE has emphasized fraud prevention as a key aspect of its efficiency mission. An initial survey of Unemployment Insurance claims since 2020 revealed concerning patterns: 24,500 people over 115 years old claimed $59 million in benefits, while 28,000 people between 1 and 5 years old claimed $254 million in benefits. Additionally, 9,700 people with birth dates over 15 years in the future allegedly claimed benefits.^[1]

The Department of Justice has charged an Iraqi man for illegal voting in the 2020 election in partnership with DOGE. According to DOGE, the individual was previously arrested for first-degree assault and was receiving federal benefits.^[1]

However, fraud expert Linda Miller has cautioned against conflating waste with fraud: "Fraud is willful deception. It involves willful deception. And it has to be proven in a court of law... Is DOGE conflating fraud with wasteful spending? Yes, often. You may not agree with what USAID does...but that's not fraud."^[12]

Government Credit Card Audit Expands

DOGE has expanded a credit card audit program to 30 agencies, resulting in the deactivation of approximately 470,000 cards out of 4.6 million active cards and accounts.^[1] This initiative aims to reduce potential avenues for waste and misuse of government funds by eliminating unnecessary payment cards.

Rep. Eli Crane (R-Ariz.) emphasized the fiscal imperative behind such measures: "We are over $36 trillion dollars in debt. Shouldn't this be a concern?"^[7] Similarly, Rep. Clay Higgins (R-La.) noted, "Both sides of the aisle need to grasp that we are trying to save the republic from itself. President Trump is trying to save taxpayers a lot of money."^[6]

Federal Real Estate Portfolio Reduction

As part of an effort to right-size the federal real estate portfolio, the U.S. General Services Administration has sold 13 buildings and listed an additional 68, totaling 8.3 million square feet since January 20th.^[1] One notable sale was the old Webster School building in DC, which sold for $4,138,000 but had accumulated $24 million in deferred maintenance and liabilities.^[1]

Rep. Virginia Foxx (R-N.C.) highlighted the scale of the federal government's footprint: "Our sprawling federal government has over 400 executive branch agencies and sub-agencies, including nearly 1000 boards and commissions. We must reduce the burden and cost of the federal government."^[5]

Labor Department Eliminates "America Last" Programs

Secretary Lori Chavez-DeRemer announced that the Department of Labor has saved taxpayers $30 million by eliminating what she described as "'America Last' programs in foreign countries," stating: "We're working with @DOGE to root out waste, fraud, & abuse... Under @POTUS, the American Worker ALWAYS comes First."^[8]

This aligns with broader efforts to reorient federal spending toward domestic priorities. The U.S. Coast Guard has also eliminated what DOGE characterized as an ineffective IT program, saving nearly $33 million.^[1]

Oversight and Legal Challenges

Several legal and oversight developments are unfolding that could impact DOGE's operations. The U.S. Supreme Court is scheduled to rule on June 20, 2024, regarding whether the "task force's records should be made public," potentially affecting DOGE's transparency requirements.^[4]

Additionally, federal agencies were expected to send personal notes to many employees informing them of their new workplace status and potential release.^[5] This comes amid allegations that DOGE has "illegally accessed federal government systems" according to the Economic Policy Institute.^[5]

President Trump has clarified Elon Musk's role in DOGE, stating: "He's got access only to letting people go that he thinks are no good, if we agree with him. Elon can't do and won't do anything without our approval. And we'll give him the approval where appropriate, where not appropriate we won't... Where we think there's a conflict or a problem, we won't let him go near it."^[9]

Public Reception and Perception

Public reaction to DOGE remains mixed. Thomas Schatz, President of Citizens Against Government Waste, has praised the initiative: "President Trump campaigned on a platform of making the federal government more efficient, including his promise to create a Department of Government Efficiency (DOGE). The establishment of DOGE, along with the DOGE subcommittee and House and Senate DOGE caucuses, should lead to the adoption of policies that will establish more effective use of taxpayer dollars and more efficient delivery of government services."^[1]

Iowa Governor Kim Reynolds offered a pithy endorsement: "Since this hearing is about government efficiency, I'll get right to the point: Iowa was doing DOGE before DOGE was a thing."^[2]

Rep. Paul Gosar (R-Ariz.) drew parallels to private sector efficiency measures: "We need to tame the labyrinth of the federal bureaucracy. More responsible government spending means less taxation on the American people. Elon trimmed the fat at his company X and we can do the same here in Washington."^[4]

However, skepticism about DOGE's approach persists. While many support cutting government spending in principle, concerns have been raised about how DOGE is implementing these cuts, with a large percentage believing that DOGE has gone about making cuts to government expenses the "wrong way" according to Newsweek polling.^[3] Social media commentary indicates that some believe DOGE's actions are making it harder for people to receive their earned government benefits.^[11]

The Government Accountability Office (GAO) has estimated that taxpayers could save between $106 billion and $208 billion if agencies followed GAO reports and recommendations to make government work better.^[4] GAO also wrote that estimated overpayments across 71 federal programs totaled $175 billion in fiscal year 2023.^[2] According to one analysis, the G.A.O. estimates waste, fraud, and abuse in all 12 departments is $209.6 billion, with Treasury having the greatest percentage at 23.87% of the department's budget.^[3]

As DOGE continues its mission, the House Oversight Committee has committed to "continue to work with President Trump's Administration to expose wasteful spending, protect taxpayers, and improve the efficiency of the federal government."^[1] However, the ultimate impact of these efficiency measures on government services and the American public remains to be fully determined as implementation proceeds.

Sources

1. Department of Government Efficiency. (2025, May 26). Official DOGE Website.
2. Katz, E. (2025, May 26). Judge Says She Is 'Inclined' To Further Pause Layoffs at Most Major Agencies. Government Executive.
3. House Committee on Oversight and Accountability. (2025, May 26). Hearing Wrap-Up: Making the Federal Government Efficient and Saving Taxpayer Dollars is a Top Priority in the 119th Congress.
4. NewsNation. (2025, May 26). Government waste and inefficiency under scrutiny as Trump's DOGE takes action.
5. Bender, B. & Hesson, T. (2025, May 25). Trump administration's contract termination claims face scrutiny. Politico.
6. Rep. Clay Higgins (R-La.). (2025, May 26). Statement during House Oversight Committee hearing. House Committee on Oversight and Accountability.
7. Rep. Eli Crane (R-Ariz.). (2025, May 26). Statement during House Oversight Committee hearing. House Committee on Oversight and Accountability.
8. Secretary Lori Chavez-DeRemer. (2025, May 26). Statement on Department of Labor savings. Department of Government Efficiency.
9. NPR. (2025, February 4). Department of Government Efficiency (DOGE) explainer: Elon Musk's role.
10. Office of Senator Elizabeth Warren. (2025, May 26). New Social Security Data Reveals Musk, DOGE Lied in Claims of Social Security Fraud.
11. Senator Elizabeth Warren. (2025, May 26). Statement on Social Security changes. Office of Senator Elizabeth Warren.
12. CBS News. (2025, May 25). Fraud costing US government as crime rings use stolen identities. 60 Minutes.

Deep Dive Recommendations

Impact of DOGE Cuts on Federal Workforce Morale and Productivity

Initial Query: How are DOGE cuts and reorganization efforts affecting federal employee morale, retention rates, and overall agency productivity?

Reasoning: With significant personnel changes underway and pending legal challenges to RIFs, understanding the human impact of efficiency measures is crucial. Low morale and high turnover could potentially undermine any efficiency gains if institutional knowledge is lost or remaining staff become disengaged.

Context: Federal employees are facing uncertainty with potential layoffs and reorganizations. District Court challenges to these actions suggest potential legal constraints on DOGE's authority. A comprehensive analysis of workforce metrics before and after DOGE initiatives could reveal whether true efficiency is being achieved or if short-term savings might lead to long-term operational problems.

Verifying DOGE's Savings Claims: Independent Analysis

Initial Query: How accurate are DOGE's claims of cost savings, and what methodologies are being used to calculate these figures?

Reasoning: The discrepancy identified by Politico regarding the Deployed Resources contract raises questions about the accuracy of other savings claims. Understanding the accounting methodologies, verification processes, and potential offsetting costs is essential for evaluating DOGE's actual fiscal impact.

Context: Government efficiency initiatives often claim large savings that may not materialize or may be offset by implementation costs or service disruptions. Independent verification of claimed savings can provide clarity on whether DOGE is achieving its core mission of genuine efficiency improvement versus creating the appearance of savings through accounting techniques.

Service Delivery Impact: Are Government Functions Maintaining Effectiveness?

Initial Query: How are DOGE efficiency measures affecting the quality, accessibility, and timeliness of government services to citizens?

Reasoning: True efficiency means delivering the same or better outcomes with fewer resources. Cuts that significantly impair service delivery may represent false economies rather than genuine efficiency improvements.

Context: Senator Warren's claims about Social Security access difficulties highlight potential service delivery impacts. A systematic evaluation of key performance indicators across agencies before and after DOGE interventions would provide evidence of whether efficiency is being achieved without harming core government functions. This analysis should include both quantitative metrics and qualitative citizen experience data.

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