Elon Musk’s Department of Government Efficiency (DOGE), which has pledged “full transparency,” has so far maintained an air of mystery about its operations. Despite its high-profile formation, the agency has yet to make formal announcements about its plans for cost-cutting measures across federal programs.
The department has already seen internal shakeups. Co-chair Vivek Ramaswamy exited prior to DOGE’s launch, citing plans to run for governor of Ohio. Shortly after, the agency’s lead attorney resigned without explanation. Musk himself now operates from the West Wing, further solidifying his proximity to Trump’s administration.
Initially aiming for $2 trillion in spending reductions, Musk has since revised that figure to $1 trillion, acknowledging that the goal comes with certain challenges. While specifics remain elusive, some early actions and hints suggest where DOGE might focus its efforts.
Potential Areas for Cost-Cutting
The Penny
DOGE recently highlighted that the penny costs three cents to produce, burdening taxpayers with $179 million in fiscal 2023. If eliminated, it would mark the first removal of U.S. currency since the half-cent coin in 1957.
South Sudan Embassy
A DOGE social media post criticized the $784 million allocated for a new U.S. embassy in South Sudan, calling the expenditure unreasonable. Construction, set to conclude in 2027, may now face scrutiny.
DEI Initiatives
Musk’s push to reduce diversity, equity, and inclusion (DEI) spending extends beyond the dissolved Chief Diversity Officers Executive Council. DOGE has flagged $113 million requested by the Department of Health and Human Services for workforce diversity training, with similar programs in other departments also likely on the chopping block.
Government IT Systems
DOGE may propose investments in modernizing outdated government IT systems, which currently consume 80% of the $100 billion annual IT budget. Musk’s team argues that such upgrades could reduce maintenance costs and bolster cybersecurity.
Unauthorized Federal Spending
In a Wall Street Journal op-ed, Musk and Ramaswamy criticized annual federal expenditures not approved by Congress. They cited grants such as $535 million for the Corporation for Public Broadcasting and $1.5 billion in funding for international organizations as potential targets for elimination.
Federal Workforce and Remote Work
Musk has long opposed work-from-home policies, and Trump’s executive order ending federal telework may lead to significant workforce reductions. Musk believes that enforcing office returns could prompt voluntary resignations, which he welcomes, arguing that taxpayers shouldn’t fund “Covid-era privileges.”
Regulatory Rollbacks
Citing Supreme Court decisions, Musk and Ramaswamy claim many federal regulations are invalid and can be overturned via executive order. This could result in agency closures and thousands of job cuts. However, legal experts dispute this interpretation, with some labeling it as “confused.”
Defense Contracts and Charter Schools
Senator Elizabeth Warren has proposed renegotiating defense contracts and scrutinizing the federal Charter Schools Program as cost-saving measures. It remains unclear whether DOGE will act on these suggestions.
Department of Education
Ramaswamy has previously suggested eliminating the Department of Education entirely, redirecting its $80 billion budget to parents. He has hinted at similar plans for other federal agencies.
What’s Next for DOGE?
While Musk’s cost-cutting ambitions have stirred controversy, the full scope of DOGE’s actions remains unclear. Whether the department will achieve its trillion-dollar savings target or face legal and logistical hurdles is yet to be seen.
