Elon Musk’s Doge Claims Big Savings, But Evidence Leaves Questions Unanswered

Despite claims of saving billions in U.S. government spending, Elon Musk's Department of Government Efficiency (Doge) faces scrutiny over the lack of substantial evidence for its reported savings. Investigative analysis highlights accounting errors and speculative figures, leaving experts questioning the legitimacy of Doge’s financial achievements.

The Department of Government Efficiency (Doge), spearheaded by Elon Musk, asserts it has saved the U.S. government over $10 billion weekly since its inception. During an interview on April 23, former President Trump lauded these claims, stating total savings could be nearing $200 billion, targeting fraud, unnecessary contracts, and workforce reduction as key focuses.

However, thorough investigations into Doge's reports suggest a significant disconnect between its claims and concrete data. Mr. Musk initially promised to cut spending by a staggering $2 trillion but later revised this to $150 billion, aiming to address wastage and fraudulent expenditures by fiscal year 2026. Current figures on Doge’s website indicated $160 billion in savings, but only a small portion is substantiated by detailed evidence.

An analysis showed numerous discrepancies in the reported savings. For instance, less than 40% of the claimed savings could be linked to specific documentation. Errors were noted, with one claim of saving $8 billion from an immigration contract actually amounting to just $8 million.

BBC Verify scrutinized Doge's four largest claimed savings totaling $8.3 billion. However, experts highlight that these savings often rely on maximum contract values rather than actual costs incurred. David Drabkin, an expert in federal contracts, warns that projected budgets can misinform actual yearly spending outcomes.

The largest alleged saving, $2.9 billion, stems from cancelling a contract for a Texas facility housing unaccompanied migrant children. However, data shows that the contract was reviewed annually, meaning the maximum value was speculative rather than a guaranteed expense reduction. Sources familiar with the contract indicated that actual documented savings were closer to approximately $153 million.

Other major claimed savings include $1.9 billion from an IRS contract, which experts clarify was already cancelled during prior administrations without any spending thus far, and $1.76 billion from an IT services contract with the Department of Defense, which is likewise questioned due to insufficient details. Another claimed saving of $1.75 billion connected to a USAID grant appears unfounded, as no termination notice was issued to Gavi, the health organization involved.

Doge's transparency has been criticized, with insufficient receipts available for its claims. As it strives to improve documentation and clarify discrepancies, the agency has yet to provide compelling validation for its significant savings assertions. U.S. government officials have been contacted for further information, but responses remain forthcoming. This situation raises ongoing concerns regarding accountability and authenticity in government financial reporting, particularly within agencies spearheading cost-cutting initiatives.