Elon Musk’s Department of Government Efficiency (DOGE) failed to achieve savings as federal spending soared to a record $603 billion.
Federal spending reached a record high of $603 billion in February 2025.
This surge occurs despite efforts by Elon Musk’s Department of Government Efficiency (DOGE) to cut costs. Many believe that the expected savings have not materialized.
Federal spending hits new high of $603 billion
Recent statistics show that federal spending has significantly increased.
In fact, it has risen by $40 billion compared to February 2024, marking a 7% increase.
This rise in spending raises questions about the effectiveness of the DOGE’s initiatives.
DOGE claims to save $1 trillion but faces skepticism
Elon Musk has claimed that his department is on track to save $1 trillion. However, this claim has been met with skepticism.
Reports indicate that DOGE has only managed to identify about $115 billion in savings, which many analysts say is too small to make a meaningful impact.
Compounding the issue, the DOGE has faced criticism for inaccuracies in its reports.
The department had to remove $4 billion from its claimed savings due to errors.
This has led some to doubt the credibility of the savings figures being presented.
Rising costs in key areas
While DOGE claims to be cutting costs, spending has increased in essential areas.
Healthcare costs are rising by 3% each month, adding approximately $5 billion to the budget.
Similarly, Social Security outlays have grown by 6%, which amounts to an additional $8 billion.
Expert opinions on federal spending
Economic experts are questioning the effectiveness of the DOGE’s initiatives.
Jessica Riedl, an economic policy expert, noted that the savings claimed by DOGE are “so small as not to be identifiable in monthly spending totals.”
This suggests that despite the cuts, overall spending continues to climb.
In addition to rising costs, the Treasury itself has reported increased spending.
The Treasury’s expenditures spiked by $29 billion compared to February 2024. This increase is attributed to higher debt servicing costs and rising tax credits.
Riedl continued: “Some 75 per cent of all federal spending goes to social security, Medicaid, Medicare, defence, veterans and interest — and none of that has been touched.
“There is zero indication that such savings have actually been identified.”
Elon Musk has acknowledged the challenges facing DOGE.
After experiencing a significant drop in his personal wealth, he vowed to keep pursuing savings.
He insists that the department will continue to identify areas where cuts can be made.
Calls for greater accountability
As concerns grow about DOGE’s effectiveness, there are calls for more accountability.
A federal judge has ordered the department to release records detailing its operations.
This move is intended to ensure transparency and address the ongoing skepticism about DOGE’s claims.
The future of the Department of Government Efficiency remains uncertain.
While Musk has ambitious plans, the current financial situation raises doubts about the department’s ability to deliver on its promises.
Many are watching closely to see if real changes will come.