Several accounting errors, incorrect accounting assumptions and outdated data were reported following Elon Musk and his department of government efficiency claimed to save US federal government $55 billion through staff reductions, lease cancellations, and a list of terminated contracts published online as a “wall of receipts.”
According to a report by the New York Times, the savings listed on the website are difficult to verify, and the math behind the reported cuts often doesn’t account for additional termination costs or the actual impact of canceled contracts.The report found issues such as double- or triple-counted contracts, inflated totals, and mistakes in listing canceled contracts, some of which were actually ended during the Biden administration.
Some contracts, such as one for environmental research in Michigan, were inaccurately listed as canceled. David Reid, an environmental scientist, said, “That contract wasn’t canceled by DOGE or anyone else. If they took credit for canceling the contract, they’re lying.”
Many of the canceled contracts are linked to the administration’s priorities, including cutting programs on diversity, equity, and inclusion, with some affecting businesses run by women and minorities. The mistakes suggest that Musk’s team, which is tasked with reducing government spending, may not fully understand the complexities of government contracting, New York Times reported.
Experts in federal contracting expressed skepticism about the effort’s accuracy. Amber Hart, co-founder of the Pulse research firm, said, “There’s no way for them to make it possible unless they completely overhaul the way the data is reported.”
The website lists 1,125 contracts accounting for about 20% of the reported savings, but Musk’s team has provided no data to verify the remaining savings, such as workforce reductions. The dollar values for each contract are drawn from a central government contract tracking system, but some estimates appear overly high. For example, a claimed $5.4 million in savings for canceling a Department of Homeland Security contract may be exaggerated due to outdated data and failure to account for termination costs.
Another issue involves umbrella contracts, where the government sets a maximum potential value, but the ceiling doesn’t represent actual spending.
“It’s not real money,” Kelly Saldana, a former USAID official, told The New York Times explaining that unspent funds in umbrella contracts don’t equate to savings.
Some errors were also flagged in contracts like one for technical support services at ICE, where a value of $8 billion was mistakenly entered instead of $8 million, inflating the savings by half. The “wall of receipts” also includes hundreds of contracts where no savings were realized. For instance, a contract with the SEC is listed as having no savings despite the contract expiring in March 2024.
DOGE has a target of $2 trillion in savings and the Elon Musk-led department, as on Monday, already achieved $55 billion. DOGE is targeting government departments, frauds and government employees to cut corners for which it drew massive flak for it suggested the deletion of the US Agency for International Development (USAID) that provides funds to war-torn countries, the Department of Education and will put forth their further recommendations. President Trump praised the department and its “smart” work done by Elon Musk dismissing any scope of any conflict of interest.
DOGE dividend is a proposal in which the taxpayers may get a refund check of $5,000 from the money that Elon Musk’s Department of Government Efficiency targets to save by its 2026 deadline. The proposal has been floated on X by James Fishback, the CEO of an investment firm and also an outside adviser to DOGE. Elon Musk reacted to the proposal and said he would check this proposal with President Donald Trump.