“DOGE’s First Cuts Favor Trump, But Bigger Slashes Coming!”

“DOGE’s First Cuts Favor Trump, But Bigger Slashes Coming!”

The White House’s Department of Government Efficiency (DOGE) is making waves for its aggressive approach to cutting federal spending. In just three weeks, its tech team has identified and slashed over $1 billion from various agencies a small but symbolic step toward its ambitious $2 trillion goal.

Elon Musk, the public face of DOGE, has led the charge, targeting what the agency considers “low-hanging fruit” across multiple programs. While the first round of cuts focused on smaller-dollar initiatives, that could soon change. DOGE staffers are now embedding within major government programs, especially in healthcare, and collaborating with the General Services Administration to reduce underutilized office space by canceling or letting leases expire.

A significant portion of the savings—over $1 billion—comes from eliminating diversity, equity, and inclusion (DEI) programs, according to DOGE’s posts on X. The cuts align with President Trump’s directive to terminate DEI programs across federal agencies, reflecting his broader push to reshape government priorities.

Beyond DEI, DOGE has axed $30 million in digital modernization contracts and at least $4 million in office space leases deemed unnecessary. However, the agency has not provided specifics on how these cuts were calculated when asked by The Wall Street Journal.

Trump, who created DOGE via executive order, praised its early results. “Elon is doing a great job. He’s finding tremendous fraud, corruption, and waste,” he said Friday.

Despite these cuts, the federal government is projected to spend $7 trillion this fiscal year, according to the Congressional Budget Office. Key expenditures include:

  • $1.6 trillion for Social Security
  • $910 billion for Medicare
  • $812 billion for Medicaid, the Children’s Health Insurance Program, and healthcare marketplace subsidies
  • $850 billion for military spending
  • $950 billion in net interest payments on the national debt
  • Nearly $1 trillion for education, housing, transportation, and other programs

As DOGE digs deeper, its next targets could involve more politically sensitive areas, setting the stage for even bigger battles over federal spending.

Musk’s team has zeroed in on specific federal programs so far, but he has hinted at much larger cuts ahead. Recently, DOGE gained access to Medicare and Medicaid’s contracting and payments system, where it is now searching for fraud. On Friday, Trump confirmed that Musk will also be reviewing the Education Department and even military spending.

DOGE has already played a role in cutting overhead costs for National Institutes of Health (NIH) grants, capping university fees for lab support at 15%. This change, expected to save $4 billion annually, was met with backlash from scientists who argue it will cripple vital medical research. “Amazing Job by #NIH team,” DOGE posted on social media. Meanwhile, the U.S. Government Accountability Office (GAO) estimates that Medicare and Medicaid saw $100 billion in improper payments last year—whether Musk’s team can recover those funds remains to be seen.

Critics argue that DOGE is focusing on the wrong targets. Danielle Brian, executive director of the Project on Government Oversight, says that if cutting waste was the real priority, “they’re not looking in the right places.” She suggests that government contractors and military spending should be under scrutiny instead.

President Trump

Legal and political battles are already mounting. Some lawmakers claim DOGE’s attempts to claw back funds appropriated by Congress and signed into law by President Biden could be illegal. Trump’s budget director, Russell Vought, is expected to challenge this in court. Meanwhile, a federal judge temporarily blocked DOGE’s access to a sensitive Treasury Department payment system, and another court put a pause on Musk’s plan to dismantle the U.S. Agency for International Development, which he had suggested should be fed “into the wood chipper.”

DOGE operatives have embedded themselves in multiple agencies, including the Office of Personnel Management, the Treasury Department, and even the parent agency of the National Weather Service, with a mission to cut spending and terminate contracts.

Government watchdogs have long pointed out billions in potential savings. The GAO has identified cost-cutting opportunities, such as reauthorizing a first-responder broadband network and improving income verification for student loan repayments—changes they estimate could save tens of billions.

While cutting government waste is a popular bipartisan talking point, DOGE is moving at an unprecedented pace. Senator Rand Paul (R-Ky.) releases an annual “Festivus” report identifying government waste, and Democrats also push for spending reforms. Yet Musk’s group isn’t waiting for long-term studies—it’s taking action now.

As an entity within the White House, DOGE is supposed to present its final recommendations by July 4, 2026. But with Musk and his team rapidly canceling contracts and pushing for immediate budget cuts, the battle over government spending is just beginning.

Scott Patterson and Liz Essley Whyte contributed to this article.

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