Elon Musk’s D.O.G.E fails to stop US federal spending from hitting all-time highs

Mitrade
Trending Articles
coverImg
Source: DepositPhotos

US federal spending just hit a record $603 billion in February, in spite of Elon Musk’s Department of Government Efficiency (D.O.G.E) tearing through government agencies with mass firings and budget cuts.


Treasury data released Wednesday confirms that spending still jumped by $40 billion compared to last year, a 7% increase, exposing how difficult it is for the Trump administration to shrink the size of government.


D.O.G.E has already axed tens of thousands of workers, canceled thousands of federal contracts, and halted grants, claiming $100 billion in savings. But the Monthly Treasury Statement for February shows that most agencies kept spending high, wiping out the reductions.


Elon had promised to cut $1 trillion late last year, but so far, the biggest expenses—Social Security, healthcare, defense, and debt payments—remain untouched.


D.O.G.E keeps cutting, but spending keeps rising


Despite Elon’s $4 billion-a-day budget-cutting strategy, the largest federal spending categories barely shrank. The Department of Education managed to cut $6 billion, but that didn’t stop the overall spending spike.


D.O.G.E’s influence is already deep inside government agencies, including the State Department, the Treasury, and the Department of Health and Human Services. Government workers have been fired by the thousands, and budgets have been slashed at multiple departments.


But Jessica Riedl, an economic policy expert at the Manhattan Institute, said these reductions are too small to make a difference. “D.O.G.E savings are so small as not to be identifiable in monthly spending totals,” she said.


Even Marco Rubio’s efforts to reduce spending at the U.S. Agency for International Development barely registered. The agency’s budget was cut in half from $547 million to $226 million, but that amount was wiped out by a $5 billion increase in healthcare spending and an $8 billion rise in Social Security payments.


Riedl pointed out that 75% of all federal spending goes to Social Security, Medicare, Medicaid, defense, veterans, and debt interest, none of which D.O.G.E has touched. “There is zero indication that such savings have actually been identified,” she said.


Meanwhile, Treasury direct spending skyrocketed by $29 billion since last year, largely due to a $10 billion increase in monthly debt payments and a $14 billion surge in tax credits.


Trump orders Elon to slow down as lawmakers push back


Elon’s budget-cutting campaign is now facing pushback from Donald Trump himself along with some Republican lawmakers.


During a Cabinet meeting on March 5th, Trump told Elon that individual agencies still have control over hiring and budgets, effectively limiting D.O.G.E’s reach.


Trump warned Elon to use a “scalpel” instead of a “hatchet”, signaling that the mass firings and aggressive cuts might be too disruptive.


Several Republican lawmakers are also raising concerns. Some agencies have been forced to rehire employees for critical roles, including nuclear safety oversight, after Elon’s cost-cutting led to staffing shortages.


Meanwhile, federal judges are stepping in to stop Elon’s cuts. Last week, the Supreme Court ruled that the Trump administration must release $2 billion in foreign aid funds that D.O.G.E had previously blocked.


Despite the setbacks, Elon is doubling down on D.O.G.E’s cost-cutting mission. On Monday, he announced plans to double D.O.G.E’s staff and target major spending categories like Social Security, setting up another fight with Trump and Congress.


Federal judges demand Elon’s records in intense legal battle


On Wednesday, U.S. District Judge Tanya Chutkan ordered Elon and D.O.G.E to disclose records about federal downsizing efforts, responding to a lawsuit from 14 Democratic state attorneys general.


They argue that Elon has wielded unconstitutional power, making decisions that damage their states. Chutkan’s ruling forces Elon to identify D.O.G.E officials embedded in government agencies and explain the scope of his authority. He has three weeks to comply.


Chutkan did not force Trump to testify or provide documents, but her ruling is the first time a judge has ordered Elon to release internal records in a legal challenge to his government restructuring.


The Trump administration is resisting the legal discovery, insisting that Elon is merely a senior White House adviser protected under executive privilege. But Chutkan ruled that the document requests were narrow enough to proceed.


But Elon’s legal troubles are stacking up. Another federal judge in Washington recently ordered D.O.G.E and three government agencies to make officials available for questioning about the budget cuts, though that ruling did not require Elon himself to testify.


Another federal judge ruled that D.O.G.E must go through thousands of pages of documents to respond to a Freedom of Information Act request from a liberal watchdog group.


Read more

  • Gold Price Forecast: XAU/USD recovers above $4,100, hawkish Fed might cap gains
  • Bitcoin's 2025 Gains Erased: Who Ended the BTC Bull Market?
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    Bitcoin's 2025 Gains Erased: Who Ended the BTC Bull Market?After slumping below $93,500, 2025 Bitcoin price gains have been completely wiped out. Investors are puzzled as to why its bull market, underpinned by political tailwinds, institutionaliz
    Author  TradingKey
    Yesterday 10: 36
    After slumping below $93,500, 2025 Bitcoin price gains have been completely wiped out. Investors are puzzled as to why its bull market, underpinned by political tailwinds, institutionaliz
    placeholder
    Bitcoin briefly loses 2025 gains as crypto plunges over the weekend.Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant. The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year. Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus. Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses. Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
    Author  Mitrade
    Yesterday 03: 11
    Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant. The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year. Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus. Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses. Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
    placeholder
    Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH, and XRP flash deeper downside risks as market selloff intensifiesBitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trade in red on Friday after correcting more than 5%, 10% and 2%, respectively, so far this week.
    Author  FXStreet
    Nov 14, Fri
    Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trade in red on Friday after correcting more than 5%, 10% and 2%, respectively, so far this week.
    placeholder
    Why a Quiet 2025 Signals a Massive 2026 Crypto Bull Run: Bitwise CIO ExplainsBitwise's Matt Hougan Predicts a Crypto Boom in 2026 Amid Current Market Struggles
    Author  Mitrade
    Nov 13, Thu
    Bitwise's Matt Hougan Predicts a Crypto Boom in 2026 Amid Current Market Struggles
    placeholder
    WTI Price Forecast: Trades with modest gains below $60.00; not out of the woods yetFrom a technical perspective, the black liquid has been trending lower along a downward-sloping channel since late October.
    Author  FXStreet
    Nov 07, Fri
    From a technical perspective, the black liquid has been trending lower along a downward-sloping channel since late October.

    cryptocurrency Related Articles

    • Trading Chart Patterns:Ultimate Guide to Price Action
    • How to Day Trade Crypto? Simplest Day Trading Strategy Ever
    • Places that Provide Cheapest Ways to Buy Bitcoin In 2025
    • 10 Best Crypto With Most Potential to Buy and invest in 2025 - Top Picks from Expert Traders
    • What is Starknet (STRK)? Value of Starknet Coin and Project Development
    • How To Buy Bitcoin In Malaysia? Top 7 Best Crypto Exchanges & Trading Apps

    Click to view more