DOGE reduces the savings that were promised, while federal spending increased by $250 billion
Despite agencies being cut by Elon Musk’s efficiency drive, the deficit increased.
Although DOGE federal spending cuts were promoted as a solution to government waste, recent Treasury data reveals that federal spending increased by $250 billion in spite of the vigorous campaign. Reduce waste. Cut back on expenditures. Make sure the budget is balanced. Elon Musk was chosen as the project’s spokesperson, and DOGE was marketed to government bloat as a chainsaw that would quickly reshape Washington and cut trillions.
Established by executive order on January 20, 2025, DOGE’s mission is to modernize government technology while eradicating what the administration refers to as waste, fraud, and abuse. Before that figure swiftly dropped to $1 trillion and then to about $150 billion, Musk first proposed savings as high as $1 to $2 trillion. DOGE’s web tracker reported savings of almost $37 billion by February, although there was no publicly available data or breakdown to support that assertion.
A swift wave of funding freezes, layoffs, and agency shutdowns ensued. DOGE focused on organizations that conservatives had long attacked, emphasizing research, social programs, and regulations above the biggest budget drivers. After DOGE took action to shut down USAID, almost all of its about 10,000 personnel were let go, and more than 80 percent of its humanitarian initiatives were canceled, effectively hollowing it out. Despite warnings from critics that the cuts would disrupt global health aid and cost American groups billions in lost economic activity, DOGE claimed to have trimmed $6.5 billion there.
The next agency to be dissolved was the Consumer Financial Protection Bureau. The 1,480 workers were all let go or put on leave, destroying an organization that since its founding has given back more than $26 billion to customers. Operating costs were reduced by DOGE, but a watchdog that had consistently recovered significantly more money than it spent was disbanded, raising concerns about whether choices were being made for ideological or practical reasons.
When Trump issued an executive order to start eliminating the Department of Education, education suffered greatly. Billions of dollars in school financing stalled or halted entirely, hundreds of grants were cancelled, and over half of the department’s employees were laid off. Lawsuits swiftly followed as states claimed delayed funds for low-income schools and special education, despite DOGE’s claims of $1.6 billion in canceled grants.
Additionally, medical research was put on the chopping block. Tens of thousands of people were laid off across health agencies as a result of DOGE-backed cuts that stopped or cancelled about $4 billion in NIH-funded research. Although the cuts decreased short-term spending, experts cautioned that they could result in billions of dollars’ worth of lost economic output and impede the advancement of diseases like cancer and heart disease.
DOGE’s efforts at the IRS most directly affected revenue. Over 7,000 workers were let off, thousands more accepted buyouts, and the ability to enforce the law vanished. Treasury experts estimated that any payroll savings from the changes would be far outweighed by the more than $500 billion in lost revenue that would result from laxer tax compliance in a single year.
In less than a year, DOGE implemented one of the biggest peacetime layoffs in American history, laying off around 260,000 federal employees. Payroll expenses have decreased, but they still account for a very small portion of all federal spending. The stated savings were undermined by agencies’ struggles with delays, service backlogs, and, in certain situations, the rehiring of contractors at higher prices.
Federal spending revealed a different picture, even if DOGE’s savings claims were increasing. According to Treasury figures, the United States spent around $250 billion more during the first half of 2025 than it did during the same period the previous year. Every month in 2025 saw spending levels surpass those of the previous year, mostly due to obligatory programs like Social Security and Medicare as well as growing interest payments on the national debt—all of which DOGE had little control over.
More than $160 billion had been saved by spring, according to DOGE’s tracker, which was later updated to $175 billion. However, independent analysts discovered that less than half of the sum came from publicly recorded cuts, with the remaining portion going to nebulous categories including labor reductions, future interest savings, and fraud prevention. Budget specialists warned that DOGE’s efforts would end up costing more than they saved, estimating actual realized savings closer to $5 billion.
It became difficult to overlook the most important lesson. Despite DOGE’s rapid changes, loud cuts, and dozens of agency reorganizations, the national debt continued to rise. Tax revenue decreased as a result of lax enforcement, major spending drivers stayed the same, and much of the cuts were compensated by new spending priorities including immigration and defense. Officials acknowledged that DOGE was no longer a stand-alone organization by the end of 2025, when it was surreptitiously merged with other organizations.
By reducing solely the programs that lawmakers already oppose, DOGE ultimately demonstrated how difficult it is to balance the federal budget. Cutting obvious targets can make headlines, but the deficit math would never stand a chance if entitlement expenditure and revenue were not addressed.
