Despite Elon Musk’s DOGE efforts, government spending actually went up after Trump won

Elon Musk begged Donald Trump three different times on a livestream in August 2024 to create a new government cost-cutting project. The stream happened on X Spaces during Trump’s campaign.

Elon told him, “We need a government efficiency commission.” Trump ignored him and started talking about building up the military. Elon had already poured hundreds of millions into getting him elected.

Eight months later, Trump finally gave in. That commission became DOGE, a budget-crushing machine run by Elon, named after a meme coin, and packed with random engineers in their 20s. In just 100 days, DOGE started gutting the federal government.

And yet even after everything they cut, federal spending still went up. DOGE was supposed to save the US $2 trillion. Elon said it has saved $160 billion so far. But total government spending rose by 6.3% — or $156 billion — in Trump’s first four months back in office compared to the same period last year.

Even with inflation adjusted, there’s still $81.2 billion more in spending than in 2024. That data came from the Penn Wharton Budget Model, which tracks weekly Treasury figures.

DOGE nuked departments. The federal workforce got slashed to 1960s levels. Nearly 250,000 workers either quit or got fired. That includes over 112,000 who joined the “deferred resignation” scheme and another 121,000 that were just removed.

DOGE cuts departments while spending rises

Elon built his DOGE squad before Trump even stepped into the White House again. Around 40 staff were selected, most of them with backgrounds in engineering, crypto, venture capital, or internet infrastructure. Not public service. 

Elon kept his titles at Tesla, SpaceX, and X, and still had billions in government contracts. He was everywhere: Oval Office, Cabinet meetings, running the whole thing like another tech company.

The first place to fall was USAID, the US Agency for International Development. DOGE wiped it out completely, firing 10,000 workers and leaving a skeleton crew to destroy files. Other foreign aid groups like the US Institute of Peace and the Millennium Challenge Corporation got shredded too.

As a result, programs tied to America’s international presence — including the State Department — lost about $2 billion in spending during the first four months of 2025.

DOGE engineers followed Elon’s rule: cut 20% more than needed, then bring people back if something breaks. He told his staff, “If you’re not in pain, then you didn’t cut enough.” So people were in pain. Bird flu scientists, nuclear workers, and even medical device regulators lost their jobs, then some were quietly rehired.

The Department of Education was first to officially trigger a reduction in force. Around 1,300 workers were cut, which is over 30% of the department. This was one of the only areas where spending actually went down as its budget dropped by $10 billion in one year.

DOGE’s latest project is focused on immigration. Elon’s team is trying to create a national database to track migrants entering the US and make deportation faster and easier.

By March, lawsuits hit hard. At least 60 different legal actions were filed against DOGE. Republicans at town halls got grilled by pissed-off constituents. Veterans, rural patients, parents — all furious. Polls showed Americans don’t like DOGE, and Elon’s approval dropped under Trump’s.

Democrats took advantage. They called Elon an unelected billionaire with way too much power. In a Wisconsin Supreme Court election earlier this month, which became a public referendum on DOGE, Elon lost — badly.

Inside the government, things fell apart too. Elon fought with Secretary of State Marco Rubio, Transportation Secretary Sean Duffy, and Treasury Secretary Scott Bessent. Defense Secretary Pete Hegseth didn’t support the deepest cuts and tried to block them quietly.

Elon’s own life took a hit. Forbes reported his net worth fell over $100 billion since December. Tesla’s sales and stock crashed after public boycotts. His personal safety was also at risk. People were attacking Tesla vehicles. The Justice Department said some of those attacks counted as domestic terrorism. Elon admitted he was scared.

During Tesla’s earnings call last week, after a 71% drop in net income, Elon told shareholders he was cutting back his government work. He said he’d only give “a day or two” per week to DOGE moving forward.

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