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Wednesday, December 24, 2025

Why DOGE Failed

 Many posts have discussed federal deficits and the federal debt. Like previous efforts to reduce the deficit by cutting "waste, fraud, and abuse," DOGE was a failure.

Emily Badger, David A. Fahrenthold, Alicia Parlapiano and Margot Sanger-Katz at NYT:

Elon Musk’s Department of Government Efficiency said it made more than 29,000 cuts to the federal government — slashing billion-dollar contracts, canceling thousands of grants and pushing out civil servants.

But the group did not do what Mr. Musk said it would: reduce federal spending by $1 trillion before October. On DOGE’s watch, federal spending did not go down at all. It went up.

How is that possible?

One big reason, according to a New York Times analysis: Many of the largest savings that DOGE claimed turned out to be wrong. And while the group did make thousands of smaller cuts, jolting foreign aid recipients, American small businesses and local service providers, those amounted to little in the scale of the federal budget.

...
' To sort DOGE’s bogus cuts from its successes, The Times looked at federal records for the 40 largest items on the “Wall of Receipts.” In at least 28 cases, DOGE got it wrong.

Its errors included:

Double-counting. DOGE took credit for canceling the same Department of Energy grant twice, adding $500 million in duplicate savings.

Timeline errors. One contract that DOGE claimed credit for ending had actually been terminated by the Biden administration, weeks before DOGE began its work. Three more items on DOGE’s list had simply expired. These were pandemic-era contracts with pharmacies that provided free Covid-19 testing for the uninsured. They were originally allowed to spend up to a combined $12.2 billion, but they never came close to that level. Then, in May, the three contracts ended on schedule.

DOGE still claimed credit for killing them, highlighting $6 billion in savings.

Misclassifications. Seven programs that DOGE claimed to have terminated are not dead, including four that were resurrected by court rulings.

Exaggerations. In 16 cases, DOGE greatly exaggerated its cuts. Many, including those two large Defense Department contracts, relied on an accounting trick that produced “savings” with little real-world effect. DOGE lowered the official “ceiling value” of contracts — reducing the theoretical limit on what the government could eventually pay — without changing its actual spending.