Elon Musk and former President Trump initially promised substantial savings for taxpayers through the creation of the Department of Government Efficiency (DOGE), even suggesting the possibility of a dividend check for Americans. However, as Musk prepares to step back from his role overseeing these federal cuts, he now estimates the department will save taxpayers around $150 billion, a figure offered without detailed explanation.
This projected saving represents only about 15 percent of the $1 trillion Musk originally pledged, less than 8 percent of the $2 trillion initially promised, and a small fraction of the nearly $7 trillion the federal government spent during the 2024 fiscal year.
While the inaccuracies and lack of transparency surrounding DOGE’s savings claims have been widely noted, the significant costs incurred from Musk’s aggressive approach to reducing government staff are less recognized. The widespread firings, agency lockouts, and building seizures have often resulted in legal challenges.
A nonprofit organization focused on the federal workforce has estimated, using budget data, that the financial impact of layoffs, rehirings, decreased productivity, and paid leave for thousands of employees could exceed $135 billion during this fiscal year. Specifically, at the Internal Revenue Service, an exodus of approximately 22,000 workers linked to DOGE initiatives is expected to reduce revenue by around $8.5 billion in 2026, according to research from a budget analysis group at Yale University. Total departures from federal agencies could reach as many as 32,000.
These figures do not include the taxpayer costs associated with defending DOGE’s actions in court. Among roughly 200 lawsuits and appeals tied to the former administration’s agenda, at least 30 involve the department’s activities.
Max Stier, chief executive of the nonprofit that conducted the analysis, warned that Musk is dramatically overstating the savings generated while failing to account for the far greater waste his actions are producing. He emphasized that these expenses ultimately fall on the American public and will have long-term financial consequences.
