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Analysis Exposes DOGE’s Tiny Contract Savings and Massive Downsizing Costs

Budget rules mean canceled contract funds revert to agencies instead of reducing the deficit

Overview

  • A Politico analysis found DOGE’s reported $52.8 billion in contract savings through July overstated verifiable cuts at $32.7 billion and real savings at $1.4 billion.
  • DOGE’s accounting method uses maximum contract ceiling values as baselines, inflating its claimed savings by counting potential spending as cuts.
  • By law, canceled contract funds return to federal agencies and do not cut the deficit absent congressional rescissions of appropriations.
  • A Senate Permanent Subcommittee report documented about $21.7 billion spent on downsizing, including $14.8 billion in deferred resignation payments and $6 billion on involuntary separations.
  • Despite White House assurances that DOGE’s numbers are rigorously vetted, congressional and GAO probes are intensifying over its fiscal estimates and operational risks.