One month in, President Donald Trump's government efficiency squad claims it has found billions in savings, but the amount is in dispute.
The promise to create a government efficiency commission, which Trump ordered Jan. 20, is one of 75 Trump campaign promises that PolitiFact is tracking on the MAGA-Meter. Over the next four years, we will periodically evaluate the new administration's progress on Trump's 2024 campaign promises, just as we did with Barack Obama, Trump during his first term and Joe Biden.
The Department of Government Efficiency, or DOGE, is posting its progress on canceled contracts on a "wall of receipts" website. The DOGE site said Feb. 17 that it had saved $55 billion, but news outlets including PolitiFact found that some of the savings were exaggerated.
An entry for $16 billion in savings from Immigration and Customs Enforcement, for example, included an $8 billion contract in its total, even though its real value was $8 million, The New York Times reported.
The DOGE X account said the contract amount was mistakenly entered in 2022 and that it had been corrected on the DOGE website. However, NPR found that DOGE continued to count the $8 billion contract toward the $55 billion.
USA Spending, the database that tracks government grants and contracts, showed that about $2.5 million of that contract had been spent.
Jessica Riedl, an expert on the federal budget at the Manhattan Institute, a conservative policy group, said DOGE has cut far less than the $55 billion it claims. DOGE is counting the dollars for contracts as savings even if some has already been spent.
"In some instances they are listing the full value of a three-year contract without adjusting for the amount already disbursed or obligated, and counting multiple years into one," said Riedl, who worked as the chief economist to former Sen. Rob Portman, R-Ohio.
A lot of the contracts have been terminated for the government's convenience — a clause that allows the government to unilaterally terminate the contract, and is unique to government contracting, said Jessica Tillipman, an expert on government procurement law at George Washington University law school. But the government is still liable for some costs, such as work performed, even under this term, Tillipman said.
It's hard to know at this point whether the programs targeted for cuts will be permanent. The 1974 Impoundment Control Act says that if the executive branch wants to cancel spending, it must propose a cut, known as a "rescission."
"Even if the money is rescinded, the agencies still have the authority to redirect the money elsewhere unless Congress passes a rescissions bill," Riedl said.
A rescission bill would take back funding that had been provided in a previous law.
The impoundment law says that if the executive branch wants to cancel spending, it must propose a cut, known as a "rescission." Spending cannot be paused for more than 45 days as lawmakers consider the cuts.
An Associated Press poll in January shows most Americans support some cuts, though the majority of respondents wanted more funding for some programs, including Social Security and Medicare.
Trump and Elon Musk, the frontman of DOGE, have repeatedly said they have uncovered fraud but have not shown evidence of crimes. The White House has largely pointed to projects, many through the U.S. Agency for International Development, that it disagrees with ideologically, such as efforts on diversity, equity and inclusion or climate change. Some people may agree that such projects were unnecessary or wasteful, but that's not the same as fraud.
The effort to cut government spending has attracted controversy and court challenges, but it is not slowing down. For now, we continue to rate this promise In the Works.
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