Tesla CEO Elon Musk stated in a cabinet meeting on Thursday to US President Trump that the Department of Government Efficiency (DOGE) is expected to cut $150 billion from the federal budget during the federal fiscal year from October 2025 to September 2026:
I am pleased to announce that we expect to save $150 billion in the 2026 fiscal year by reducing waste and fraud, which will actually provide better services to the American people.
This is far lower than the figure Musk claimed, who shouted a budget cut of $2 trillion during the 2024 US Presidential Election, which was halved to $1 trillion after Trump took office, and now the target has been further reduced.
According to the DOGE website, the department claims to have saved approximately $150 billion by canceling contracts, subsidies, and leases, but it is currently unclear whether the $150 billion cut mentioned by Musk is the final goal or the amount currently identified as savable. He maintained last month that he would reduce $1 trillion in expenditure by the end of May.
The New York Times quoted White House officials as firmly stating that the $1 trillion savings "remains the goal".
Trump praised the DOGE team's efforts in the cabinet meeting. Musk's White House appointment is expected to end in May, and his current status is that of a special government employee. His 130-day federal government term is about to expire, and the White House stated that he plans to leave when his term ends.
DOGE's Credibility Questioned
It is worth noting that the DOGE website frequently has incorrect information and calculation errors, making it difficult for the outside world to believe whether the $150 billion in savings is true. After some of their statements were questioned in media reports, the team has deleted several contract cases from the "Savings Proof Wall".
For example, a savings claim originally stated as $8 billion was later pointed out by a supplier to be a mere typo in the procurement record, actually being $8 million, and DOGE accordingly corrected the data. DOGE also boasted about canceling a $19 billion contract with the Treasury and Century Technology, which was later debunked, with Century Technology stating that the cooperation plan was already canceled during Biden's term.
