The Real DOGE

Last year I criticized Elon Musk’s project to save the federal government $2 trillion a year (Department of Government Efficiency—DOGE) as a missed and botched chance to streamline our federal bureaucracy. I was, perhaps, overly influenced by the elimination of the USAID aid agency, which I consider a big mistake  https://wcoats.blog/2025/02/17/usaid/  and an interview with a brainless boy on one of the DOGE teams who had no idea what he was doing. Tyler Hassen’s new book: “Inside DOGE: The Real Story from a Senior Insider,” has convinced me that I was largely unfair. Washington Post – Inside DOGE

While DOGE achieved far less than it promised, its primary failure was PR – its failure to properly explain what it was doing and how it was doing it.  https://wcoats.blog/2025/04/27/trumps-chainsaw/    https://wcoats.blog/2025/11/29/kill/

It would have taken me days to research what DOGE actually achieved, but my AI program took less than one minute and probably was more though so I will just share its answer. This did not replace me but made, I think, my blog better.

What did DOGE promise to deliver and what did it actually accomplish

DOGE promised a sweeping transformation: roughly **$2 trillion a year** in lower federal spending, a leaner and more efficient federal workforce, modernized government technology, and unusually transparent public accounting of its results. What it demonstrably delivered was much narrower: aggressive cancellations and workforce actions, major operational disruption, and a reported—but largely unverified—$215 billion in savings, far below the original goal.[1][2]

What DOGE promised

There were two related but distinct promises:

PromiseWhat it meant in practice
Cut federal spending by $2 trillionElon Musk’s early public target was to reduce annual federal spending by at least $2 trillion. The target was subsequently discussed at lower levels—$1 trillion, then approximately $150 billion in savings by FY 2026. [3][4]
Eliminate “waste, fraud, and abuse”DOGE was expected to identify and cancel low-value contracts, grants, leases, and programs, while cutting duplicative spending. [3][2]
Reduce bureaucracy and improve productivityIt sought to shrink or restructure parts of the federal workforce and make agencies operate more efficiently. [5]
Modernize federal ITThe January 20, 2025 executive order formally charged the renamed U.S. DOGE Service with improving government-wide software, IT systems, network interoperability, data integrity, and responsible data synchronization. [2]
Provide transparent, itemized reportingMusk promised a public “Wall of Receipts” showing savings, so the public could inspect DOGE’s work. [1]

A crucial distinction: the legal executive-order mission was principally technology modernization and productivity. The far larger $2 trillion fiscal promise was a public political objective associated with Musk and DOGE’s wider cost-cutting drive, not a quantified requirement written into the order.[2][1]

What it actually did

DOGE’s concrete actions included:

  • Embedding DOGE teams in federal agencies to examine records, systems, contracts, and operations. The executive order called for an agency team typically including a lead, engineer, HR specialist, and attorney.[2]
  • Seeking to terminate contracts, grants, and leases, including underused office space, software licenses, and selected programs.[6]
  • Pursuing federal-workforce reductions and agency restructuring.
  • Creating and maintaining the public “Wall of Receipts,” which ultimately listed claimed savings of approximately $215 billion—including categories beyond the individual contracts, grants, and leases shown in the main receipts records.[5][1]
  • Expanding centralized access to agency unclassified records, software, and IT systems, with an explicit emphasis on data access and modernization.[2]

Its temporary organization was set to end July 4, 2026—18 months after its creation.[2]

Savings: claims versus evidence

The central result is that DOGE’s claimed savings and independently substantiated savings diverged sharply.

MeasureAmountInterpretation
Original public aspiration$2 trillion annuallyThe headline promise; DOGE did not come close to it. [1][7]
Later, lower goalAbout $150 billionMusk’s April 2025 goal for savings by the end of FY 2026. [3][4]
DOGE’s eventual claimed totalAbout $215 billionAn administration/DOGE estimate, not an audited accounting of net budget savings. [1][5]
“Wall of Receipts” reviewed by GAO$110 billionClaims tied to reported contract, grant, and lease actions that GAO examined. [1][5]
GAO-supported portion of that $110 billionAbout 4%GAO found only a small part of the reviewed claims had adequate support; this is not the same as an estimate of total program savings. [8]

The GAO’s findings are particularly important because headline savings are not equivalent to actual reductions in federal outlays. A canceled multiyear contract may have had unspent funds, may not have been canceled, may have been replaced by another purchase, or may impose transition costs elsewhere.

Among the problems GAO found:

  • 108 of 264 leases DOGE listed as terminations were already being terminated before DOGE began. GAO said this overstated lease savings by more than $80 million.[1]
  • More than half of the listed contracts were either not actually ended or had insufficient information to determine their status.[1]
  • DOGE cited $1.7 billion in savings from a Defense Department technology contract that GAO said was never terminated or reduced; GAO therefore found no savings from that action.[8][1]
  • DOGE did not provide enough detail for GAO to verify the methodology for 96% of reported grant savings, and it often did not apply its own stated method consistently to contracts.[1]

Earlier independent reporting had already found major reporting errors. NPR’s contract-record review in early 2025 could verify only about $2.3 billion in maximum estimated savings from the items it examined, while emphasizing that even this figure could overstate actual savings.[9]

Bottom line

DOGE did accomplish a real administrative and political intervention: it pushed agencies to cancel or reconsider some contracts, grants, leases, software licenses, and programs; it contributed to workforce reductions; and it made federal technology, data access, and organizational efficiency a central White House priority.[6][2]

But it **did not deliver the $2 trillion annual spending reduction it promised**, and it did not produce a transparent, independently auditable accounting sufficient to validate even most of its public savings claims. Its own final figure—roughly $215 billion—was only about 11% of the original $2 trillion target, and GAO found serious reliability problems in the subset of claims it reviewed.[5][1]

The fairest concise assessment is: DOGE was consequential as an instrument of disruption, contracting pressure, workforce change, and IT/data centralization; it was unsuccessful as a demonstrated $2-trillion deficit- or spending-reduction program.

  1. https://www.cnn.com/2026/08/06/politics/doge-savings-gao-report-elon-musk           
  2. https://www.whitehouse.gov/presidential-actions/2025/01/establishing-and-implementing-the-presidents-department-of-government-efficiency/       
  3. https://www.bbc.com/news/articles/cn4j33klz33o  
  4. https://www.npr.org/2025/04/28/nx-s1-5377445/doge-musk-trump-100-days 
  5. https://www.cnbc.com/2026/08/06/doge-elon-musk-gao-government-cost-cuts.html    
  6. https://www.politico.com/news/2026/07/04/doge-july-4-white-house-end-00983651 
  7. https://www.bbc.com/news/articles/cvg0rg9wmvlo
  8. https://www.usatoday.com/story/news/politics/2026/08/06/watchdog-doge-overstated-billions-savings/91196591007/ 
  9. https://www.npr.org/2025/03/01/nx-s1-5313853/doge-savings-receipts-musk-trump
  10. https://www.yahoo.com/news/politics/articles/doge-initiative-resulted-federal-employees-000000027.html
  11. https://www.nytimes.com/2026/09/15/us/politics/doge-federal-work-force.html
  12. https://www.thefiscaltimes.com/2026/07/06/DOGE-Officially-Done
  13. https://www.openfeds.org/analysis/doge-tracker
  14. https://www.timesnownews.com/world/us/us-news/department-of-government-efficiency-doge-officially-shuts-down-on-july-4-what-it-promised-and-what-it-delivered-article-154944633
  15. https://www.callyoursenate.com/doge-promises-results-gao-report/
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Author: Warren Coats

I specialize in advising central banks on monetary policy and the development of the capacity to formulate and implement monetary policy.  I joined the International Monetary Fund in 1975 from which I retired in 2003 as Assistant Director of the Monetary and Financial Systems Department. While at the IMF I led or participated in missions to the central banks of over twenty countries (including Afghanistan, Bosnia, Croatia, Egypt, Iraq, Israel, Kazakhstan, Kenya, Kosovo, Kyrgystan, Moldova, Serbia, Turkey, West Bank and Gaza Strip, and Zimbabwe) and was seconded as a visiting economist to the Board of Governors of the Federal Reserve System (1979-80), and to the World Bank's World Development Report team in 1989.  After retirement from the IMF I was a member of the Board of the Cayman Islands Monetary Authority from 2003-10 and of the editorial board of the Cayman Financial Review from 2010-2017.  Prior to joining the IMF I was Assistant Prof of Economics at UVa from 1970-75.  I am currently a fellow of Johns Hopkins Krieger School of Arts and Sciences, Institute for Applied Economics, Global Health, and the Study of Business Enterprise.  In March 2019 Central Banking Journal awarded me for my “Outstanding Contribution for Capacity Building.”  My recent books are One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina; My Travels in the Former Soviet Union; My Travels to Afghanistan; My Travels to Jerusalem; and My Travels to Baghdad. I have a BA in Economics from the UC Berkeley and a PhD in Economics from the University of Chicago. My dissertation committee was chaired by Milton Friedman and included Robert J. Gordon. I live in National Landing Va 22202

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