In what may be the largest federal restructuring effort in modern U.S. history, President Trump and Elon Musk have launched an aggressive initiative to slash government spending, eliminate inefficiencies, and overhaul federal operations. At the centre of this effort is the newly established Department of Government Efficiency (DOGE), an advisory body that has already overseen the departure of more than 110,000 federal employees and the cancellation of billions of dollars in contracts.
The Trump administration claims that these actions have already saved American taxpayers over $100 billion, with Musk estimating that potential cuts could reach $2 trillion.
The Creation of DOGE and Musk’s Role
DOGE was created through a Trump executive order, bypassing the need for congressional approval. Unlike traditional government agencies, DOGE functions as a high-powered advisory team embedded within federal departments. It has at least four representatives assigned to every major agency, charged with identifying waste and recommending reductions.
Elon Musk, who originally announced he would serve as an unpaid volunteer, has since been designated a special government employee, a classification reserved for individuals who work in federal roles for 130 days or fewer per year. Musk has framed the initiative as an urgent necessity, calling the federal government bloated and inefficient.
“The people voted for major government reform and that’s what the people are going to get,” Musk recently stated from the Oval Office. “They’re going to get what they voted for.”
Musk’s leadership, however, has been met with scepticism. Critics argue that as a business magnate whose companies—Tesla, SpaceX, and others—hold billions in federal contracts, he may have a conflict of interest in overseeing government spending. The White House has denied any ethical concerns, insisting that Musk is working in the public interest.
Massive Federal Workforce Reductions
One of DOGE’s most immediate actions has been a sweeping reduction of federal employees. Since Trump’s inauguration, more than 110,000 federal workers have left government service—75,000 through voluntary “deferred resignation” buyouts and another 35,000 through terminations. Among the most affected agencies is the Social Security Administration (SSA), which reports suggest could face a 50% workforce reduction.
Trump and Musk have argued that AI-driven automation and self-service digital portals will allow the government to continue functioning effectively with fewer employees. “We’re replacing inefficiency with technology,” Musk tweeted in February.
Cost-Cutting Measures and Transparency Concerns
The administration claims that DOGE has already led to $105 billion in savings by eliminating wasteful spending. Musk has proposed that up to $2 trillion in cuts could eventually be achieved by reevaluating government priorities.
Some of DOGE’s most high-profile cost-cutting actions include:
- Eliminating thousands of federal contracts, including many related to diversity, equity, and inclusion (DEI) programs, which the administration deems unnecessary.
- Shutting down the Biden-era Climate Corps which was designed to promote green jobs and combat climate change.
- Reviewing all federal grants, with 15,000 flagged for potential elimination, worth an estimated $60 billion.
- Suspending all new foreign aid grants until a comprehensive audit can be conducted.
However, DOGE’s financial claims have come under scrutiny. A Reuters investigation found that DOGE’s official website, which lists terminated contracts and cost-saving efforts, has been riddled with errors. The site initially claimed to have eliminated $16 billion in contracts, but that number was later revised to $8.9 billion.
A budget expert at Yale University, Martha Gimbel, expressed doubts about the administration’s numbers. “Anyone can put numbers and words on a website,” she said, “but in order to be transparent, the numbers and words have to be accurate.”
Sweeping Agency Reforms
Beyond workforce reductions and budget cuts, DOGE has targeted specific agencies for restructuring, eliminating programs seen as excessive or politically motivated. Among the most notable agency overhauls:
- The Consumer Financial Protection Bureau (CFPB), a regulatory agency created after the 2008 financial crisis, has been ordered to halt operations.
- The Environmental Protection Agency (EPA) has cancelled tens of millions of dollars in contracts and launched investigations into what the Trump administration claims is “widespread fraud.”
- The Internal Revenue Service (IRS) has seen a rollback of the expansion enacted under President Biden, reducing funding for enforcement efforts.
- The United States Agency for International Development (USAID) has faced deep cuts, with Trump citing concerns over “wasteful spending” on foreign projects, including claims that U.S. taxpayer money was funding sex-change surgeries in Guatemala.
The administration has also implemented strict new hiring policies, including an order requiring federal agencies to hire no more than one new employee for every four departures.
Legal Challenges and Public Response
DOGE’s rapid changes have not gone unchallenged. A coalition of labour unions, state attorneys general, and congressional Democrats have filed lawsuits arguing that Trump and Musk are overstepping executive authority. Some legal challenges have temporarily halted DOGE from accessing sensitive government records, including Treasury Department financial data.
Despite the controversy, DOGE has significant public support. A CBS News poll found that a majority of Americans back the initiative, finding that Republican voters, in particular, are overwhelmingly in support of the effort.
“They’re shining a very bright spotlight on various parts of the federal government,” said David Ditch, a senior analyst at the conservative Economic Policy Innovation Center, “and they’re asking, whether it’s the American public, whether it’s moderate members of the Republican caucus – is this how you want America’s tax dollars to be used?”
The Future of DOGE
While DOGE’s early focus has been cutting costs and downsizing the workforce, Musk and other administration officials have hinted at a second phase that will focus on modernising government services through technology. Proposed reforms include:
- Expanding self-service digital portals to allow citizens to manage government tasks without needing human intervention.
- Deploying AI-driven virtual assistants to handle customer support for federal agencies.
- Automating bureaucratic processes to eliminate manual data entry and paperwork.
- Enhancing cybersecurity and authentication systems to improve digital access to government services.
However, sceptics warn that slashing government staffing without a clear technological replacement could create service disruptions. Daniel Castro of the Information Technology and Innovation Foundation stated, “If they don’t invest in a long-term digital transformation strategy, they risk gutting government services without making them more efficient.”
As DOGE continues its mission, the next several months will test whether Trump and Musk’s vision of a streamlined, cost-effective government can be realised—or if the initiative will face increasing resistance from lawmakers, the courts, and the American people.