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Musk-Led Efficiency Drive Faces Fallout as Reinstated Contracts Undermine Savings Claims

Federal agencies reverse over $220 million in contract cancellations while DOGE's savings tracker remains riddled with discrepancies.

President Donald Trump listens as Elon Musk speaks in the Oval Office at the White House, Tuesday, Feb. 11, 2025, in Washington. (AP Photo/Alex Brandon)
Elon Musk speaks during a cabinet meeting at the White House, Wednesday, April 30, 2025, in Washington. (AP Photo/Evan Vucci)
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People gather to protest outside the headquarters of the Office of Personnel Management after the Elon Musk-led Department of Government Efficiency was tasked with oversight of OPM, in Washington, Feb. 2, 2025.

Overview

  • Federal agencies have reinstated 44 contracts worth over $220 million that were previously canceled by the Department of Government Efficiency (DOGE).
  • DOGE's online savings tracker continues to list nearly all reinstated contracts as savings despite their reversal, raising questions about transparency and accuracy.
  • Some canceled contracts, including one at the EPA, were legally required and had to be reinstated, often at higher costs, with one contract increasing by $171,000.
  • The White House attributes the discrepancies to a 'paperwork lag' and promises updates to DOGE's savings page, but critics highlight the chaos caused by the rapid cuts.
  • Elon Musk, who initially led DOGE full-time, has scaled back his involvement as scrutiny grows over the agency’s management and its inflated savings claims.