At the onset of their term, the concord between President Trump and Elon Musk foretold a potentially transformative fiscal benefit for the public, even hinting at a ‘DOGE dividend’ distribution to taxpayers. This was to be achieved through the intervention of the Department of Government Efficiency (DOGE) within the federal government’s machine. However, as Musk prepares to transition away from this governmental initiative, the proverbial pie in the sky appears somewhat less appetizing. Without divulging further details, Musk intimated a taxpayer savings of around $150 billion through DOGE– just 15% of the initially pledged $1 trillion, drastically under the $2 trillion he initially promised, and a minuscule fraction of the government’s total expenditure for the 2024 fiscal year, which stands at approximately $7 trillion.
The fallacies and evasive tactics linked to DOGE’s assumed savings are widely reported and analyzed. What’s under the radar are the resources invested by Musk—resources that effectively eviscerated parts of the government via widespread layoffs, agency suspensions, and property reappropriations, many of which eventually landed in court.
The Partnership for Public Service, an indendent organization dedicated to scrutinising the federal workforce, has analyzed budget data and inferred that the financial implications of staff dismissals, reassignments, lowered output, and furlough expenditures for thousands of employees may rise to a staggering $135 billion for the current fiscal year. There are costs associated with the Internal Revenue Service as well. As a direct outcome of the DOGE initiative, the estimated departure of 22,000 IRS employees could generate a shortfall of $8.5 billion in 2026, based on the Budget Lab at Yale University’s figures. Speculations suggest the overall number of exits could be as high as 32,000.
These estimations do not factor in the financial bearings on taxpayers necessitated by defending DOGE’s procedures in court. Amidst some 200 litigations and appeals tied to Trump’s policies, at minimum 30 involve the department.
A representative from the Partnership for Public Service has criticized Musk’s lack of financial transparency and the ensuing consequences. This spokesperson expressed criticism that Musk is inflating the savings and not acknowledging the greater waste produced, stating, ‘He’s inflicted these costs on the American people, who will pay them for many years to come.’