GAO finds DOGE vastly overstated savings from federal cuts

New reports by the Government Accountability Office show that the makeshift cost-cutting office vastly overstated its reported savings and had sloppy processes. In addition, its staff wouldn’t answer questions and largely failed to comply with basic government employment requirements. 

Despite big promises, images of Musk wielding a chain saw to slash spending, a team of young techies with nicknames like “Big Balls,” and the Trump administration’s undying support, DOGE quietly folded at the end of last year like a failed tech startup.

At the time, some government sources suggested the agency hadn’t disappeared but instead had transformed and “burrowed into agencies like ticks.”

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DOGE posted its work on an online “Wall of Receipts” — which listed more than $110 billion in savings from cuts in federal contracts, grants and leases — but that number was way off, according to the GAO, which found incorrect information and missing evidence. It also reported that DOGE staff members didn’t respond to investigators’ inquiries. 

The GAO warned that DOGE’s bad data wasn’t useful for policymakers, could erode public trust and should have a disclaimer. “The data quality issues … limit the value of the Wall of Receipts to policymakers,” it said. “In addition, when government data are not reliable, it can hinder the public’s trust in government.”

Of the savings listed by DOGE, $3.9 billion came from federal contracts across Texas — including $3.6 billion from San Antonio vendors — but the actual amount of cuts in the Lone Star State was calculated to be nearly $1 billion less. 

Of the $110 billion in savings listed by DOGE, $61 billion was said to have come from 13,476 contracts that were cut across government agencies. 

GAO investigators could corroborate only about $26.4 billion in savings from canceled contracts, less than half of DOGE’s claimed amount. The GAO said $27.4 billion worth of the contracts remain in place, and DOGE didn’t provide enough information about another $7.2 billion worth.

The GAO found problems with thousands of DOGE’s Wall of Receipts entries, including 3,751 that weren’t identified, 2,503 that weren’t ended despite claims otherwise and 5,812 that reported zero savings. 

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Among the missing data are all of the U.S. Agency for International Development’s 3,506 contracts and 245 from other agencies. 

“Moreover, DOGE did not apply its stated methodology for calculating more than half of the reported savings,” wrote the GAO.  “In addition, DOGE’s stated methodology has limitations,” such as failing to account for basic aspects of government contract processes. 

“Even in cases in which DOGE followed its stated methodology, it did not account for many complexities and nuances of federal contracting or sufficiently identify limitations,” the GAO wrote. 

The congressional watchdog analyzed 21 major contracts DOGE claimed to have cut in the Defense and Health and Human Services departments and found major discrepancies. 

Among them was the Defense Health Agency’s $1.7 billion contract to provide IT services at 700 military medical sites around the world, including those in Texas and San Antonio. 

“While DOGE initially identified the contract for termination, in the end, no action was taken to terminate the contract, or to reduce scope, value, or funding. Thus, no savings were achieved,” the GAO reported.

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In another case, DOGE reported $4 billion in savings on an Air Force IT modernization contract for 187 bases over 10 years. The Air Force had reduced the $12.5 billion contract’s value by $3.75 billion, but it couldn’t explain DOGE’s claimed $4 billion. 

“There is no certainty that the $3.75 billion will be saved,” wrote the GAO. “The contract was not terminated.”

The congressional watchdog found several examples of federal agencies extending or awarding new contracts for the same work after changing contracts flagged by DOGE. 

According to the GAO, DOGE reported it saved $49 billion by cutting 15,887 grants, but many of the entries, as with the contracts, lacked identification information. 

The GAO couldn’t accurately calculate savings for 13,553 of the grants that were cut, which equates to 96% of DOGE’s reported savings. 

The GAO concluded the grant savings were closer to $1.9 billion, and much of that may not be realized.

DOGE overstated its savings on canceled property leases around the country by more than $80 million, according to the GAO.  

The Musk-led department originally reported that it ended 679 leases worth $400 million but later adjusted that number to 264 leases. DOGE originally said those were worth $113 million but later reduced that amount to $53.5 million. 

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The actual savings attributable to DOGE are even less than that.   

“Specifically, 108 of the 264 leases identified for termination on the Wall of Receipts, about $15.3 million of the total $53.5 million in savings, were already in process for termination when DOGE was established,” the GAO reported.

A separate GAO report sheds light on DOGE workers and their compliance with federal ethics and training requirements designed to guard against potential conflicts of interest. 

At its height, DOGE had 206 employees, including four in leadership roles and 27 who were considered special government employees. Although some were attached to specific federal agencies, they were employed through the Executive Office of the President. At least 128 had left their jobs as of Jan. 31. 

While the White House office said the employees were required to do ethics and records training, it didn’t provide information to the GAO. Only 15 of 25 federal agencies that had DOGE workers attached to them did.

The GAO found that of 64 DOGE workers it received records for, 49 had completed ethics training, 18 completed records management training and 38 filed financial disclosures.