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

  • US-Europe Trade War Reignites, Bitcoin’s $90,000 Level at Risk
  • * 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
    Greenland Storm Hits. US Stocks Erase Over $1 Trillion in a Single Day, Bitcoin Drops Below $90,000 MarkGreenland tariff war escalates, hitting US stocks and crypto markets hard, but Fundstrat expects a year-end recovery.On Wednesday (January 21), hit by the Greenland tariffs, the crypto ma
    Author  TradingKey
    10 hours ago
    Greenland tariff war escalates, hitting US stocks and crypto markets hard, but Fundstrat expects a year-end recovery.On Wednesday (January 21), hit by the Greenland tariffs, the crypto ma
    placeholder
    US-Europe Trade War Reignites, Bitcoin’s $90,000 Level at RiskAs the US-EU tariff war reignites, Bitcoin prices are weakening and may briefly fall below the $90,000 mark.Over the past 24 hours, Bitcoin ( BTC) prices have dropped to $92,000 twice, an
    Author  TradingKey
    Yesterday 10: 57
    As the US-EU tariff war reignites, Bitcoin prices are weakening and may briefly fall below the $90,000 mark.Over the past 24 hours, Bitcoin ( BTC) prices have dropped to $92,000 twice, an
    placeholder
    Crypto Meltdown. 240,000 Liquidated, $100 Billion Wiped Off Crypto Market Cap.TradingKey - A significant drop in rate cut expectations and liquidity depletion, among other factors, have triggered a cryptocurrency plunge; Bitcoin may briefly fall to $90,000.On Monday (January 19
    Author  TradingKey
    Jan 19, Mon
    TradingKey - A significant drop in rate cut expectations and liquidity depletion, among other factors, have triggered a cryptocurrency plunge; Bitcoin may briefly fall to $90,000.On Monday (January 19
    placeholder
    Meme Coins Price Prediction: DOGE, SHIB and PEPE tumble with Bitcoin, as support levels come into focusDOGE, SHIB and PEPE extend Monday losses as BTC drops below $93,000; DOGE stays under $0.1375/$0.1417 EMAs, SHIB eyes $0.00000678 support, and PEPE risks a slide below $0.00000500 toward $0.00000363.
    Author  Mitrade
    Jan 19, Mon
    DOGE, SHIB and PEPE extend Monday losses as BTC drops below $93,000; DOGE stays under $0.1375/$0.1417 EMAs, SHIB eyes $0.00000678 support, and PEPE risks a slide below $0.00000500 toward $0.00000363.
    placeholder
    How Is the Crypto Market Structure Bill Progressing? Advancing or Hindering the Future of Cryptocurrency?The crypto market structure bill has encountered opposition led by Coinbase and is currently stalled, but it is expected to eventually pass and propel the crypto market forward.According
    Author  TradingKey
    Jan 16, Fri
    The crypto market structure bill has encountered opposition led by Coinbase and is currently stalled, but it is expected to eventually pass and propel the crypto market forward.According

    cryptocurrency Related Articles

    • Top 3 Price Prediction: Bitcoin, Ethereum, Ripple — Bulls take the reins, with $100K BTC, $3,500 ETH and $2.35 XRP in focus
    • Best Strategies When BTC Price Drops: From Hedging to Accumulating
    • How to Day Trade Crypto? Simplest Day Trading Strategy Ever
    • Trading Chart Patterns:Ultimate Guide to Price Action
    • 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

    Click to view more