U.S. Government Efficiency Department Cancels $420 Million in Contracts

According to Odaily, the U.S. Government Efficiency Department (DOGE) announced on Friday via a post on X that it has canceled existing or soon-to-be-signed government contracts worth approximately $420 million within 80 hours, along with two leases. BusinessInsider's calculations indicate this equates to about $126 million in contracts canceled daily. If the department maintains this pace from January 20, 2025, to July 4, 2026, over 530 days, it could potentially cancel around $67 billion in contracts annually. This would account for approximately 3% of Elon Musk's initial $2 trillion federal budget cut target or 7% of his revised $1 trillion goal. Currently, DOGE is primarily focused on contracts related to diversity, equity, and inclusion (DEI) and unused buildings. However, it cannot directly alter the federal budget without congressional approval. The temporary DOGE service is set to terminate on July 4, 2026.