U.S. Congress Debates Upcoming Budget Proposals
Where Does the Money Go?
5.2.25
The administration is gearing up for a new tax bill. The intent has been to show that through DOGE, this administration has been able to save billions of dollars in spending, so now tax cuts can be instituted for this administration’s wealthy supporters.
There have been reports that DOGE numbers online initially showed absurdly high savings, and then, a week or so later, those numbers were adjusted. In at least one case, a number listed as billions should have been millions. There is quite a difference there. (Just a reminder, the difference between billions and millions is three more zeros: between $10 and $1000). Numerous news sources have checked the figures. Now is the time to look and see what savings have been made with DOGE, if any, and what the national debt is, seeing if this administration has been significantly cutting spending.
Perplexity AI search found the following (the numbers in the body of the AI search give the references in the article):
Based on the available information, DOGE (Department of Government Efficiency) claims to have saved $160 billion as of April 20, 202523. However, independent analyses and investigations reveal significant discrepancies and challenges in verifying these figures:
Claimed Savings:
$160 billion is the latest total reported by DOGE12, achieved through canceled contracts, workforce reductions, and anti-fraud measures.
$150 billion is another figure cited by Musk as a revised target for 202626, down from an initial $2 trillion pledge6.
Verification Issues:
Lack of documentation: Only ~30% of DOGE’s claimed savings have supporting receipts, with some receipts marked “unavailable for legal reasons”2.
Inflated figures: Examples include:
A $2.9 billion claim from canceling a migrant facility contract, which a source estimated actually saved $153 million2.
A $1.9 billion IT contract cancellation with $0 spent, where the contract’s validity and expenditure remain unclear2.
Accounting errors: DOGE misreported an $8 million contract as $8 billion2.
Offsetting Costs:
$135 billion in taxpayer costs this fiscal year from paid leave, rehiring, and lost productivity16.
$8.5 billion in lost IRS revenue by 2026 due to staff cuts6.
Legal expenses from lawsuits challenging DOGE’s actions are not included in these estimates16.
In summary, while DOGE asserts $150–160 billion in savings, the net fiscal impact is likely minimal or negative when accounting for direct costs and lost revenue68. Independent analyses suggest many claimed savings are speculative or unverified237.
This BBC article explains some discrepancies in the DOGE reports, including this quote: “Doge mistakenly claiming to have saved $8bn from cancelling an immigration contract which had a total value of $8m.”
Last year, I wrote a piece on the national debt, and you can read that here:
The bottom line is that we want to ensure that any tax cuts are more than covered by the money saved. We should also use any money saved to pay off some of that debt, or at least wait a year or two before tax cuts to see the savings from cutting numerous employee positions and agencies. Could you keep that in mind in the coming weeks when Congress creates the bill that this administration wants?