Nearly half of D.O.G.E’s contract cuts prove pointless in cost-saving effort

Since January 20, Elon Musk’s Department of Government Efficiency (D.O.G.E) has aggressively cut 1,125 federal contracts in an effort to trim government spending. But data from its own “Wall of Receipts” show that nearly 40% of these cuts—417 contracts—will not save the government a single cent. The reason? The funds had already been spent.

These terminations include subscriptions to The Associated Press and Politico, completed research projects, fully-paid training programs, software purchases, and even internships that have already ended. The total value of these now-pointless contract cancellations? $478 million. But since the money was already legally obligated, it cannot be reclaimed—meaning these terminations achieve nothing in terms of actual savings.

The contract cancellations are supposed to be part of the administration’s cost-cutting initiative, but Charles Tiefer, a former government contracting law professor, says the strategy makes no sense.

“It’s like confiscating used ammunition after it’s been fired,” Tiefer said. “There’s nothing left in it. It doesn’t accomplish anything.”

D.O.G.E insists that the overall savings from the cuts exceed $7 billion, but independent analysts are questioning those numbers. Many terminated contracts were for essential services—raising concerns that the administration is more focused on hitting arbitrary budget targets than actually improving efficiency.

Federal government job market deals with Elon’s mass layoffs

The contract cancellations are just one part of the government’s sweeping cost-cutting push. Thousands of federal employees have been fired, with some agencies losing entire divisions overnight.

At the Department of Veterans Affairs, over 1,000 employees have been dismissed. Senator Patty Murray said the cuts hit researchers working on cancer treatments, opioid addiction, prosthetics, and burn pit exposure studies—areas she says are vital to veterans’ healthcare.

The Defense Department has confirmed the layoff of 5,400 probationary workers, with Darin Selnick, acting undersecretary of defense for personnel and readiness, estimating a total workforce reduction of 5% to 8%. Pentagon says a hiring freeze is also in place, except for uniformed military personnel, who are exempt from the cuts.

The Education Department has seen at least 39 employees fired, including special education specialists and student aid officials. Additionally, $900 million in budget cuts have hit the Institute of Education Services, which tracks national student performance. 169 contracts were scrapped on February 10, leaving experts uncertain about the institute’s future.

D.O.G.E hits emergency and health departments

The Energy Department also faced turmoil. On February 13, hundreds of employees working on nuclear weapons programs were abruptly laid off. But after internal backlash, the decision was partially reversed within hours, according to a report by the Associated Press.

Three U.S. officials allegedly confirmed to AP that at least 350 workers at the National Nuclear Security Administration lost access to their work emails before realizing they had been fired.

The Department of Health and Human Services (HHS) is dealing with mass firings as well. More than 5,000 probationary employees are on the chopping block, with 700 job losses confirmed at the Centers for Disease Control and Prevention (CDC).

According to the CDC, the final number of layoffs was lower than initially expected, but it still lost one-tenth of its workforce. Other public health agencies—including the National Institutes of Health, the Food and Drug Administration, and the Centers for Medicare and Medicaid Services—also lost employees, though HHS has yet to release exact figures.

At the Department of Homeland Security, 405 probationary workers were terminated. Of those, more than 200 were from the Federal Emergency Management Agency (FEMA), with additional cuts at the Cybersecurity & Infrastructure Security Agency (CISA), which oversees election system security.

The Internal Revenue Service (IRS) is set to lay off thousands of employees in the middle of tax season, according to the report. The exact number of affected workers is unclear, but concerns are mounting over how the IRS will handle the upcoming tax rush with fewer staff.

The National Park Service was hit with 1,000 layoffs—employees responsible for cleaning parks, maintaining trails, and educating visitors. Adding to the confusion, the agency later reinstated 5,000 seasonal jobs that were initially rescinded last month.

One of the most drastic changes is at the Consumer Financial Protection Bureau (CFPB). The administration has ordered the agency to stop nearly all of its operations, essentially shutting it down.

The CFPB, which was created after the 2008 financial crisis, was designed to protect consumers from predatory financial practices. It handled thousands of complaints related to fraud, illegal lending practices, and financial scams.

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