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Home»Legal»DOGE caught in a controversy, $38.4B of its saved money is missing
Legal

DOGE caught in a controversy, $38.4B of its saved money is missing

NBTCBy NBTC20/02/2025No Comments4 Mins Read
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The Department of Government Efficiency (DOGE), a federal cost-cutting effort backed by President Donald Trump and founded by billionaire Elon Musk, reportedly has some discrepancies in its reported savings.

According to its website, DOGE claims to have saved $55 billion in federal spending, but only $16.6 billion of that amount is accounted for, leaving $38.4 billion in question.

Further complicating the matter is an error in the data DOGE published, which misrepresented an $8 million contract as $8 billion. The correction reduces the initiative’s detailed savings to just $8.6 billion, far from the reported total.

Musk promised Americans that the initiative would maintain “maximum transparency” and ensure “all actions are fully public.” However, DOGE’s inconsistent accounting is giving liberals grounds to query the reliability of its financial reporting.

Controversy over misreported contract savings

After weeks of protests from Democrats, federal unions, and transparency advocates, DOGE has begun providing more details on its website, including a list of about 700 canceled contracts. As of February 18, the site also listed nearly $145 million in real estate-related savings.

The most expensive contract it claims to have canceled was an $8 billion agreement with D&G Support Services, LLC, a firm that was set to provide services for the Office of Diversity and Civil Rights within US Immigration and Customs Enforcement (ICE).

D&G Support Services, headquartered in a Washington, D.C. suburb, describes itself as a “people-focused” organization with fewer than 200 employees. Its largest government contracts include $16 million from the Air Force for staffing support and approximately $11 million from the US Coast Guard. Since 2017, its average contract value has been around $1 million.

Looking at the latest financial records, ICE’s entire annual budget in the last decade has been around $9 billion, making the $8 billion contract cancellation highly improbable. The agency’s largest recent contracts, according to usaspending.gov, were $800 million for charter flight services and $787 million for transporting unaccompanied children and families.

Per Bloomberg, a search of the Federal Procurement Data System for the contract ID listed on DOGE’s website, 70CMSD22A00000008, shows the original contract filing from September 2022 mentions a total contract of $8 billion.

An update on January 28 revised that figure to $8 million, the same day the department listed the contract as an $8 billion saving. Moreover, two additional filings on January 29 and January 30 confirmed the contract’s partial and then full termination, both reflecting the corrected $8 million value.

A small pattern of errors ignites calls for ‘clarity’

Elon Musk’s advisory role in the US government has put him in the midst of controversial takes and a mountain of lawsuits. His company, SpaceX, has received billions of dollars in government contracts, which democrats believe is illegal as it presents a “conflict-of-interest issues.”

President Trump said that Musk will “police himself” regarding any conflicts related to the six companies he operates. Much to the dismay of left-wing aligned policymakers, even though Musk is required to file a federal financial disclosure, the document will not be made public.

DOGE’s website states that it is working to present its data “in a digestible and fully transparent manner with clear assumptions, consistent with applicable rules and regulations.” It also explains that final contract termination notices may take up to a month to appear publicly.

Speaking to reporters in the Oval Office last week, Musk acknowledged that some information he shares “will be incorrect and should be corrected,” adding that DOGE would act swiftly to address such errors.

The cost-cutting initiative has moved across several federal government offices, including the Treasury and Internal Revenue Service, canceling improper contractual government payments.

On Tuesday, through an X post, House Majority Leader Steve Scalise stated that he wants Congress’ budget resolution to include “passing into law DOGE’s identified waste in government.”

Senate Majority Leader John Thune also supported the department’s efforts during a Fox News interview last week, calling DOGE’s work “long overdue.”

It’s time to act on ALL of the powerful mandates the American people gave to @realDonaldTrump in November:

Securing the border, opening up American energy to lower costs, keeping tax rates low (including no tax on tips), strengthening our national defense, a two-year extension…

— Steve Scalise (@SteveScalise) February 18, 2025

“Obviously, they’re going to identify some things that perhaps can’t be changed or fixed, but there’s a ton of stuff out there that I think can be done better,” Thune reckoned.

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NBTC is the editorial account for NBTC News, covering Bitcoin, Ethereum, DeFi, blockchain infrastructure, exchanges, mining, regulation and digital asset markets. The editorial team focuses on clear sourcing, timely updates and practical context for crypto readers.

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