EFFICIENCY OR ILLUSION?

DOGE CUTS MAY BACKFIRE

A new Partnership for Public Service analysis casts serious doubt on the financial gains touted by Elon Musk's Department of Government Efficiency (DOGE), estimating that the aggressive federal spending cuts may have ultimately cost American taxpayers $135 billion.

DOGE, launched under former President Donald Trump and led by Musk starting in early 2025, claimed to have saved $160 billion by reducing the size of government. These savings were achieved through sweeping layoffs, agency eliminations, and dismantling programs deemed "non-essential." However, the Partnership's report suggests those changes may have incurred substantial hidden costs, stunting or reversing the financial benefits. The Partnership for Public Service's estimate is based on the federal workforce's $270 billion in annual compensation costs and calculates the impact of DOGE's actions, from paid leave to productivity hits.

The $135 billion figure includes: Severance and paid leave for federal workers dismissed en masse. Costs associated with rehiring and retraining personnel when essential services broke down. Productivity losses during agency overhauls and Revenue losses from a 31% staff reduction at the IRS, which decreased audit capacity and tax collection.

"This data shows just how catastrophic the Trump administration's first 100 days have been for services to the American people, taxpayer value, and effective government." "We need a more effective government, but this administration is taking us so far in exactly the wrong direction. Through our 'Cost of DOGE' campaign, we are committed to capturing the long-term harm these misguided policies will have on the federal workforce, public institutions, and the American people," said Max Stier, president and CEO of the Partnership for Public Service.

Key federal services have reportedly been impacted. The Social Security Administration and Veterans Affairs experienced backlogs and delays. Meanwhile, internal watchdogs noted a decline in overall government responsiveness and performance.

Despite the criticism, Musk defended the department's mission, stating that the federal government was bloated and overdue for disruption. But the analysis paints a different picture—one in which the rush to cut spending produced systemic breakdowns, with taxpayers footing the bill.

The Partnership's findings raise broader questions about the legacy of DOGE and the future of federal reform initiatives. While Musk has since stepped down from his role, the ripple effects of his cuts are expected to linger for years.

Department of Government Efficiency

The Partnership for Public Service

What Elon Musk Didn’t Budget For: Firing Workers Costs Money, Too (The New York Times, 4-24-25)

DOGE says it has saved $160 billion. Those cuts have cost taxpayers $135 billion, one analysis says. (CBS, 4-28-25)

New estimates indicate that Elon Musk's DOGE might not achieve any savings (MSNBC, 4-28-25)

New “Cost of DOGE” initiative aims to inform the public and policymakers about the ongoing harms of recent federal government cuts (Partnership for Public Service, 4-29-25)