Elon Musk’s newly established Department of Government Efficiency has made high-profile assertions about cutting federal spending, promising savings of $1 billion per day and annual reductions exceeding $2 trillion. However, an analysis of Treasury data indicates that these claims do not reflect reality, as federal outlays have risen since President Trump took office. Daily Treasury statements reveal that spending now averages $30 billion per day—up from $26 billion during the same period under President Biden—demonstrating a trend that mirrors previous fiscal years rather than the dramatic reductions Musk proclaims.
The program, which names its mission as fighting fraud and reducing waste, has concentrated on curbing expenses in areas criticized by former President Trump, including diversity, equity, inclusion, and accessibility initiatives. Despite these efforts, the overall announced savings by DOGE appear modest—around $7 billion in total—with some cost-cutting measures stemming from multi-year contract cancellations that yield lower annual savings than initially reported. Even when including controversial funding cuts at the United States Agency for International Development, estimated annual savings only reach about $45 billion, amounting to just 0.6% of the federal budget.
nearly two-thirds of the nation’s budget is allocated to mandatory spending on Social Security and health insurance, with another 10% committed to interest payments. This rigid budget structure leaves limited room for discretionary spending, half of which is dedicated to defense—an area that remains politically sensitive. As a result, despite the bold claims and high expectations set by Musk, the tangible financial impact of DOGE’s initiatives appears minimal, underscoring the difficulties inherent in overhauling federal expenditures.