KeyTakeaways:
- Trump urges Musk to intensify cost-cutting measures, targeting government inefficiency.
- DOGE achieves $55B savings through contract terminations and workforce reductions.
- Federal job cuts and contract suspensions create widespread uncertainty among employees.
In a move towards reducing inefficiency within the U.S. government, President Donald Trump has called on Elon Musk to be “more aggressive” in his cost-cutting efforts through the Department of Government Efficiency (DOGE). Musk, who co-founded DOGE, has already overseen the implementation of several substantial reductions.
President Trump’s push for greater efficiency comes after he praised Musk’s work at DOGE on his Truth Social platform. Trump emphasized that Musk’s efforts had been valuable but encouraged him to step up the pace, calling for more cuts to government inefficiency.
Trump noted that:
“Elon is doing a great job, but I would like to see him get more aggressive.”
Trump wrote, adding a call to action to ensure the country is positioned for future growth. Musk quickly responded to X, acknowledging the president’s request and committing to follow through.
However, the push for further efficiency has included changing federal employees’ work habits. On January 20, President Trump signed an executive order mandating that all federal employees return to in-person work as soon as practicable.
The shift has faced some resistance from within the government, especially from agencies like the FBI and State Department, whose leaders have instructed staff to ignore the new directives. These agencies have pushed back against the mandate, with some employees refusing to provide the requested accountability reports.
DOGE’s $55 Billion Savings and Job Cuts
As of February 17, 2025, DOGE announced that it has made $55 billion in savings, driven by contract terminations and workforce reductions. Musk’s team has focused on cutting diversity, equity, and inclusion (DEI) programs.
Some of the programs eliminated include a $1.5 million DEI initiative in Serbia and a $47,000 “transgender opera” in Colombia. These moves have contributed to the overall reduction in government expenditures.
Moreover, the U.S. Agency for International Development (USAID) has experienced a reduction in its workforce. The White House confirmed that 1,600 USAID employees had been let go, and most remaining staff were placed on leave. This move has left many federal employees uncertain, with some, like Charles Farinella, an IRS agent in New York, voicing concerns about their financial future.
Contract Terminations and Broader Economic Impact
The restructuring efforts have also included workforce cuts and contract suspensions. Chemonics, a company that collaborates with USAID, revealed in a recent court filing that its contract suspensions had forced the company to furlough 750 workers or roughly 63% of its employees.
As a result, many individuals previously employed by federal agencies or their contractors are now grappling with the loss of income and the uncertainty of what comes next. These sweeping changes have sent a shockwave through federal employment, leaving many to navigate the fallout from these significant shifts.
