The Department of Government Efficiency, spearheaded by billionaire Tesla founder Elon Musk, is slashing the federal government in an effort to save money.
Elon Musk’s Department of Government Efficiency (DOGE) has claimed credit for billions of cuts in federal spending, most of which comes from cancelled contracts.
The department is working to downsize the federal workforce, increase the efficiency of federal agencies, and reduce government spending. As DOGE continues to cut spending across the federal government, here are four things to watch.
USAID
Musk’s DOGE has focused on the U.S. Agency for International Development (USAID) as an area of potential savings for the federal government, asserting that its work overseas is wasteful.
USAID was created to deliver aid around the world to impoverished and underdeveloped regions. It operates out of 60 countries and has an employee base of 10,000 people.
In early February, USAID employees were put on administrative leave and the agency’s website was taken down. Since then, Trump has mentioned that some parts of USAID may be absorbed by the State Department after naming Secretary of State Marco Rubio acting director of the agency.
Over 90% of USAID’s contracts have been cancelled. The Supreme Court has temporarily blocked a judge’s order requiring Trump’s administration to release billions of dollars in foreign aid.
An estimated $60 billion in assistance overseas has been cut by the department. Contract cancelled included thousands for HIV programs in South Africa.
Social Security Administration
More than 10% of the Social Security Administration’s (SSA) workforce is at risk of being laid off. Dozens of offices around the country are being closed as well.
On DOGE’s website, 47 SSA offices are set for closure. Many of these are located in the South and across the Southeast. The SSA has about 1,200 field offices across the United States.
There are 72.5 million Social Security beneficiaries across the country, with many being worried their benefits will be cut.
If not addressed by Congress, the program is facing a looming bankruptcy date. By 2035, Social Security’s trust funds covering old age and disability recipients will be unable to pay full benefits.
During Trump’s campaign, he promised to make no changes to the program. Since his election, he has said Social Security benefits “won’t be touched” and “will only be strengthened.”
Health and Human Services
DOGE is also pursuing cuts to the Department of Health and Human Services (HHS). NIH grants that support research institutions were dramatically cut by Trump’s administration under guidance from Musk and DOGE.
Alabama Republican Senator Katie Britt said she’d work with the administration to protect innovation and research, saying, “A smart, targeted approach is needed in order to not hinder lifesaving, groundbreaking research at high-achieving institutions like those in Alabama.”
The Association of American Medical Colleges warned in a statement that the decision is harmful and would “diminish the nation’s research capacity.”
In February, DOGE announced on X that it had cancelled $182 million worth of contracts dedicated to administrative expenses, not health care programs.
Also last month, DOGE staffers gained access to systems at the federal agency responsible for disbursing Medicare and Medicaid payments. No cuts to those programs have been announced so far.
Veterans Affairs
This past week, it was announced that the Department of Veterans Affairs (VA) is planning a reorganization that includes cutting 80,000 jobs. The agency provides health care and other services for millions of veterans in the United States.
More than 25% of the agency’s workforce is comprised of veterans.
Veterans Affairs Secretary Doug Collins said, “This administration is finally going to give the veterans what they want. President Trump has a mandate for generational change in Washington and that’s exactly what we’re going to deliver at the VA.”
Musk’s DOGE is examining the VA, which provides physical and mental health care for over 9 million veterans, for potential savings.
