Introduction
Elon Musk’s Department of Government Efficiency (Doge), established under President Trump, claims to have slashed US government spending by over $160 billion since its creation. While the initiative promises to cancel unnecessary contracts and eliminate waste, a closer investigation by BBC Verify raises serious questions about the accuracy of these savings. In this article, we break down the top claims and uncover what’s really behind Doge’s reported figures.
How Doge Reports Its Savings
Initially, Musk pledged to cut $2 trillion from the federal budget. However, that target was later reduced to $1 trillion. As of April 20, Doge claims $160 billion in savings, but detailed evidence supports less than 40% of this figure. BBC Verify found that many contracts cited as “savings” were based on projected maximum values rather than actual expenditures, raising doubts about the true impact.
1. The Migrant Facility Contract
Doge’s largest saving claim—$2.9 billion—comes from cancelling a Texas facility contract for unaccompanied migrant children. However, experts say the real savings are closer to $153 million. The original contract amount was speculative and based on a “ceiling” value, not guaranteed yearly spending.
2. IRS and Centennial Technologies Contract
The cancellation of a $1.9 billion IT contract between the IRS and Centennial Technologies is another major claim. Yet, the Federal Procurement Data System shows $0 spent at cancellation. Experts note that poor record-keeping could mean some expenditures were unreported, leaving the $1.9 billion savings highly questionable.
3. Defense Department IT Contract
Doge reports saving $1.76 billion by cancelling a Department of Defense IT services contract. Again, the listed contract value was a projected ceiling, not actual spending. No evidence has been found to verify the $1.76 billion claim as an accurate reflection of true savings.
4. USAID Grant to Gavi
Another major saving claim involved terminating a USAID grant to Gavi, supposedly saving $1.75 billion. However, Gavi confirmed receiving $880 million and stated they had not been informed of any contract termination. No documentation has surfaced to substantiate Doge’s figure.
5. Broader Issues with Doge’s Reporting
Less than half of Doge’s reported savings are itemized, and only about 30% have attached receipts. Some savings, such as the $8 billion immigration contract cancellation, were based on accounting errors. Doge claims they are working toward full transparency, but for now, many savings remain unverifiable.
Conclusion
While Doge under Elon Musk may have driven some reductions in US government spending, the lack of verifiable evidence casts serious doubt on the $160 billion figure. True savings appear significantly lower than advertised. As Doge pledges greater transparency, independent audits and evidence-based reporting will be crucial for public trust.
For a deeper dive into how Trump’s policies reshaped US government spending, check out our related analysis here.
