DOGE Cuts $25B, Rehiring Underway

Examining DOGE’s Cut Claims, Accounting Gaps & Agency Impacts

In June 2025, Trump’s Department of Government Efficiency (DOGE) claimed a $25 billion reduction in federal spending, touting a 22.4% cut in non-defense obligations. As agencies like HHS and IRS begin rehiring, questions arise about the cuts’ true impact and accounting accuracy.

What DOGE Claimed

The Department of Government Efficiency, initially led by Elon Musk, announced on June 8, 2025, a 22.4% reduction in annual non-defense federal obligations, equating to approximately $25 billion compared to 2024 figures. This followed a 1.9% additional cut from May 2025. DOGE highlighted terminating 108 “wasteful” contracts, including an executive leadership training program, and slashing contracts, grants, and leases. The agency framed these actions as a decisive move to streamline government operations, aligning with Trump’s fiscal conservatism agenda.

Independent Analysis

Independent analyses question DOGE’s $25 billion savings claim, suggesting reported “obligations” may not reflect actual cash savings. Estimates indicate DOGE’s cuts could cost $135 billion in lost productivity and rehiring expenses, undermining the claimed savings. Deficit spending may increase due to DOGE’s aggressive approach, which disrupted workforce stability without clear long-term fiscal benefits.

Agency Rehiring

Despite DOGE’s cuts, agencies like the CDC, IRS, FDA, and HUD have begun rehiring workers dismissed during the efficiency drive. The Department of Health and Human Services (HHS) rehired staff from its National Center for HIV and Global Health Center, among others. The National Weather Service, impacted by staffing shortages that compromised 24/7 operations, is also rebuilding its workforce. These rehiring efforts follow criticisms that initial cuts imperiled critical services, such as weather forecasting and drug approvals.

Accounting Methodology

A key point of contention is DOGE’s use of “obligations” versus actual cash savings. Obligations represent commitments to spend, not funds already disbursed. Reducing obligations may delay spending but doesn’t always equate to permanent savings. DOGE’s initial claim of $2 trillion in potential savings was revised downward significantly, with the $25 billion figure reflecting a narrower scope. This methodological gap has fueled skepticism about the agency’s reported achievements.

Implications & Criticism

DOGE’s cuts have sparked widespread debate. Critics argue that the reductions disproportionately harmed women and marginalized groups reliant on federal programs. Thousands of federal workers are now paid not to work, raising questions about efficiency. OMB Director Russell Vought faced bipartisan scrutiny in Congress over the cuts’ long-term viability. Litigation from labor unions has also slowed DOGE’s initiatives, with lawsuits challenging mass firings.

What’s Next

With Elon Musk’s departure from DOGE in May 2025, following public disputes with Trump, the agency’s future remains uncertain. DOGE staff continue to push for deeper cuts, embedding their approach within agencies. However, the administration’s rehiring efforts and legal challenges may temper DOGE’s momentum. Congress is reviewing a $9.4 billion rescission package proposed by DOGE, which could formalize some cuts if passed.

Frequently Asked Questions

Did DOGE really save $25 billion?

DOGE claims a 22.4% reduction in non-defense obligations, roughly $25 billion, but analyses suggest these are not cash savings and may be offset by rehiring costs.

Which agencies are rehiring?

Agencies including the CDC, IRS, FDA, HUD, and the State Department have started rehiring workers let go during DOGE’s cuts.

What are federal obligations?

Federal obligations are commitments to spend funds, not actual disbursements. Cutting obligations may delay spending but doesn’t always result in permanent savings.

Why did Elon Musk leave DOGE?

Musk left DOGE in May 2025 after clashing with Trump over tax legislation and subsidies.

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