Elon Musk’s Department of Government Efficiency (DOGE) has fallen far short of the massive savings it promised, according to a report by the Financial Times. Despite claims on its official website that it slashed $170 billion in government spending, new analysis says only a fraction of that amount can be verified. Musk had vowed to cut “at least $2 trillion” from the federal budget when he launched DOGE during US President Trump’s re-election campaign. However, a Financial Times investigation has raised serious doubts about the real impact of the cost-cutting task force.According to the FT, the $170 billion figure includes many savings that are exaggerated or misrepresented. For example, DOGE claims $31.8 billion in savings from cancelling or adjusting over 10,000 contracts. But the FT could only confirm reductions in around 6,700 of those cases.The report also highlights that DOGE counted savings from “indefinite delivery vehicles” (IDVs), contracts that offer flexibility to government agencies. It calculated savings using the highest possible legal spending limits, rather than actual spending amounts.Furthermore, DOGE took credit for cost cuts that had already begun under the Biden administration. One example includes the early cancellation of a Department of Defense IT contract worth $1.4 billion, a decision made back in September 2024.In addition to the FT’s findings, the Penn Wharton Budget Model points out that government spending has increased since DOGE came into operation. Politico reported that spending rose by 6.3 per cent under Trump’s second term compared to the first four months of 2024.In April, Microsoft co-founder Bill Gates accused Musk of “killing children” with DOGE’s spending cuts, as political anger over the programme’s real-world effects continues to build.Musk, who recently announced he would be “stepping back” from his DOGE responsibilities, is no longer working from the White House. However, he remains involved in the department’s work. Meanwhile, Tesla has faced backlash in recent months, with some analysts warning that Musk’s close ties to the Trump administration and his role in a controversial nationwide firing spree may be damaging the company’s finances.The White House and Musk’s lawyers have not responded to requests for comment on the report.
