One-Third of Canceled US Contracts Won't Yield Savings

DOGE's 'wall of receipts' may be a little misleading
By John Johnson,  Newser Staff
Posted Feb 25, 2025 10:45 AM CST
One-Third of Canceled US Contracts Won't Yield Savings
Protesters in Washington, DC, voice their objections to actions by President Trump and Elon Musk on Feb. 17.   (AP Photo/Jacquelyn Martin)

News accounts continue to challenge Elon Musk's claims of major savings thanks to the Department of Government Efficiency he runs. On Monday, DOGE published an updated "wall of receipts" list of about 2,300 contracts that have been terminated across the federal government. The problem? The AP reports that nearly 800 of those cancellations won't yield any savings whatsoever because the money already has been committed.

  • "It's like confiscating used ammunition after it's been shot when there's nothing left in it. It doesn't accomplish any policy objective," says Charles Tiefer, an expert on government contracting law. "Their terminating so many contracts pointlessly obviously doesn't accomplish anything for saving money."

  • As a story at Axios explains, the only way to get truly meaningful savings would be to cut defense, Medicare, Medicaid, and Social Security, which collectively make up 86% of the budget. President Trump, however, has promised not to touch any of them.
  • "When you consider where federal money really goes, most DOGE oddities and outrages amount to rounding errors in a sea of government obligations," write Mike Allen and Jim VandeHei.
  • A defense: The AP quotes an anonymous administration official who says the canceled contracts are still important for the message they send about efficiency. And the Axios piece cites a Harris Poll survey showing that 72% of registered voters back the idea of an agency focused on the issue. "So Trump and his aides correctly calculate that both the cuts and the tales of government insanity are popular with the vast majority of Americans," the outlet notes.
(More DOGE stories.)

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