DOGE Exposes U.S. Government Spending—A New Era of Budget Efficiency?

The efforts of the Donald Trump administration to cut US government spending have once again drawn attention after the latest Government Accountability Office (GAO) report revealed the significant costs of the federal workforce reduction program.

The program is related to the agenda of the Department of Government Efficiency (DOGE), established by the Trump administration to seek savings through cuts to bureaucracy, contracts, grants, and government assets.

However, the latest audit shows that cost-saving efforts do not always mean low upfront costs. 

The question is whether DOGE is truly ushering in a new era of US budget efficiency or instead highlighting major challenges in bureaucratic reform.

Key Takeaways

• GAO estimates that the US federal government spent US$9.5 billion on paid administrative leave in 2025, about six times higher than in 2023.
• About US$6.7 billion of those costs were associated with the Deferred Resignation Program, which encouraged federal employees to resign or retire.
• DOGE reported significant savings, but GAO identified transparency and methodology issues in the calculation of some of those savings.

DOGE and the Strategy to Cut US Government Spending

DOGE has become one of the Trump administration's main instruments for pursuing its government efficiency agenda. 

Elon Musk was previously appointed to lead the effort, focusing on cost reductions, bureaucratic restructuring, and the evaluation of government contracts and programs.

One of its measures was the Deferred Resignation Program managed by the Office of Personnel Management (OPM). The program allowed certain federal employees to stop working early while continuing to receive their salaries through September 30, 2025.

According to GAO, approximately 144,312 employees were recorded as using the program. As a result, the use of paid administrative leave increased 435% from 2023 to 2025.

GAO estimates that total salary costs for paid administrative leave reached US$9.5 billion in 2025. About US$6.7 billion of that amount was associated with the resignation program.

This figure is important because it shows that workforce reductions do not automatically generate savings from day one. The government must bear transition costs before the benefits of workforce reductions can be calculated over the long term.

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DOGE Savings Face Significant Upfront Costs

The US government maintains that these costs represent one-time expenditures intended to generate long-term savings.

OPM Director Scott Kupor stated that these costs should be compared with the potential annual savings resulting from a reduced federal workforce. 

However, GAO stated that OPM currently lacks an adequate mechanism to accurately determine how much paid administrative leave costs were specifically used for the workforce reduction program.

In other words, the success of US fiscal policy cannot be measured solely by how many employees leave or how much spending is cut.

The government also needs to calculate upfront costs, lost functions, rehiring needs, and actual savings after the program is implemented.

This makes evaluating US budget efficiency more complex than simply comparing workforce numbers before and after restructuring.

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US Budget Transparency Becomes a Key Concern

Another issue emerged from the GAO report regarding the DOGE Wall of Receipts, a page used to record estimated savings from government contracts, grants, and leases.

As of July 7, 2026, DOGE reported approximately US$110.3 billion in savings from contracts, grants, and leases. Including other categories, the savings reported by DOGE reached approximately US$215 billion.

However, GAO found that some of these calculations lacked adequate supporting data. 

For contracts, GAO found that DOGE did not follow the stated methodology for the majority of reported savings. In the grants category, the available information was also insufficient to verify the methodology used for 96% of the reported savings.

These findings make US budget transparency an important factor in assessing DOGE's efficiency claims.

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Has a New Era of US Budget Efficiency Begun?

DOGE clearly brings a different approach to US government spending by making cost-cutting and bureaucratic reform key priorities.

However, GAO data shows that the process still faces measurement and transparency issues. 

The US$9.5 billion cost of paid administrative leave indicates significant transition spending, while the methodology used to calculate some DOGE savings remains questioned by government auditors.

Therefore, determining whether DOGE has created long-term efficiency requires further data. 

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The more relevant measure is not only the size of the cuts, but whether government spending actually declines sustainably without reducing the government's ability to provide public services.

For the latest US economy, this issue is also important because changes in government spending can affect fiscal needs, the federal workforce, government contracts, and spending priorities in the years ahead.

Thus, DOGE can be viewed as a major experiment in US bureaucratic reform. But its final results can only be assessed after transition costs and long-term savings can be measured more transparently.

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FAQ

What is the US government's DOGE?

DOGE, or the Department of Government Efficiency, is a Trump administration initiative established to promote government operational efficiency, including through the evaluation of the workforce, contracts, grants, and government assets.

How much did the federal employee resignation program cost?

GAO estimates that approximately US$6.7 billion of the total US$9.5 billion in paid administrative leave costs in 2025 was associated with the Deferred Resignation Program.

How much savings did DOGE claim?

DOGE reported approximately US$215 billion in savings across various categories. However, GAO identified transparency issues and methodological limitations in some of the reported savings data.

Why is transparency important in budget efficiency?

Transparency allows the public and policymakers to understand how savings are calculated and distinguish between savings that have actually been realized and estimated savings.