US Spending Didn’t Slow Post-Trump Inspite of Elon Musk’s D.O.G.E Efforts

Elon Musk publicly urged Donald Trump—three times—during an August 2024 livestream on X Spaces to launch a sweeping government cost-cutting initiative.

Elon told him:

“We need a government efficiency commission.”

At the time, Trump deflected, pivoting instead to military spending, despite Musk having already funnelled hundreds of millions into his re-election bid.

Eight months later, Trump relented.

The result was D.O.G.E: a radically unorthodox budget commission named after a meme coin, led by Musk and staffed with a cohort of young engineers.

Within 100 days, D.O.G.E began dismantling parts of the federal government at unprecedented speed—shuttering departments, eliminating programmes, and triggering a mass exodus of nearly 250,000 federal employees.

Of those, over 112,000 opted into a “deferred resignation” programme, while another 121,000 were terminated outright.

The federal workforce has shrunk to levels not seen since the 1960s.

D.O.G.E was designed to save $2 trillion.

So far, Musk claims it has trimmed $160 billion in spending.

But in a twist that defies expectations, federal expenditures have still risen.

According to the Penn Wharton Budget Model, government spending increased by 6.3%—or $156 billion—in Trump’s first four months back in office compared to the same stretch in 2024.

Even after adjusting for inflation, that’s an $81.2 billion increase.

D.O.G.E Initiative Slashes Departments as Federal Spending Climbs

Before Trump even returned to the White House, Musk had already assembled his D.O.G.E team—a group of roughly 40 handpicked staffers, largely drawn from backgrounds in engineering, crypto, venture capital, and internet infrastructure.

Few had experience in public service.

Musk retained his executive roles at Tesla, SpaceX, and X (formerly known as Twitter), and continued overseeing billions in federal contracts.

Yet he also emerged as a dominant force in Washington, regularly appearing in the Oval Office and Cabinet meetings, running the cost-cutting initiative more like a tech startup than a government programme.

D.O.G.E’s first major target was USAID, the US Agency for International Development.

The agency was shut down entirely, with 10,000 employees dismissed and a minimal team left behind to dismantle operations and erase data.

Other foreign aid institutions—including the US Institute of Peace and the Millennium Challenge Corporation—were similarly dismantled.

These cuts slashed roughly $2 billion from the United States’ foreign policy footprint in just the first four months of 2025, affecting even parts of the State Department.

D.O.G.E operated under a ruthless directive: cut 20% more than necessary, then rehire only if essential systems failed.

That policy led to widespread disruption.

He told his staff:

“If you’re not in pain, then you didn’t cut enough.”

Experts in public health, nuclear safety, and medical device regulation were laid off—some later brought back in haste.

The Department of Education became the first agency to formally initiate a Reduction in Force (RIF), cutting around 1,300 positions—over 30% of its workforce.

Its annual budget was reduced by $10 billion, making it one of the few departments where spending clearly declined.

Now, D.O.G.E is turning its attention to immigration.

Musk’s team is developing a centralised system to track migrants and accelerate deportations—signalling that its next round of disruption could reshape another cornerstone of US policy.

D.O.G.E Slammed by Lawsuits

By March, the backlash against D.O.G.E reached a breaking point.

Over 60 lawsuits were filed challenging the programme’s legality and impact.

At town halls across the country, Republican lawmakers faced angry constituents—veterans, rural communities, and parents—who felt betrayed by the cuts.

Public opinion soured quickly.

Polls showed widespread disapproval of D.O.G.E, and Musk’s approval rating fell below even Trump’s.

Democrats seized the moment, branding Musk an unelected billionaire wielding outsized influence over government affairs.

The backlash became especially visible in a recent Wisconsin Supreme Court race, widely viewed as a referendum on D.O.G.E—Musk lost decisively.

Inside the administration, cracks deepened.

Musk clashed with Secretary of State Marco Rubio, Transportation Secretary Sean Duffy, and Treasury Secretary Scott Bessent.

Defense Secretary Pete Hegseth pushed back on the deepest cuts, attempting to quietly stall them.

Even Musk’s personal life began to unravel.

Forbes reported his net worth had plunged by more than $100 billion since December.

Tesla faced sharp declines in both sales and stock price amid growing public boycotts.

Attacks on Tesla vehicles escalated to the point that the Justice Department classified some as acts of domestic terrorism.

Under mounting pressure, Musk admitted he was shaken.

During Tesla’s most recent earnings call—following a 71% drop in quarterly net income—he announced plans to scale back his involvement in D.O.G.E, saying he would now devote only “a day or two” per week to the initiative.