Elon ready to Salute again in 90 days while DOGE Cancels $420M Government Contracts

Introduction

The Department of Government Efficiency (DOGE), led by Elon Musk, has announced the cancellation of approximately $420 million worth of current or impending government contracts within its first 80 hours of operation. This initiative also resulted in the termination of two leases.

DOGE’s primary focus has been on Diversity, Equity, and Inclusion (DEI) contracts and unoccupied buildings. This aligns with the Trump administration’s cost-cutting priorities and efforts to streamline government operations.

Financial Impact

At the current rate, DOGE is cancelling about $126 million worth of contracts per day. If this pace continues throughout its operational period until July 4, 2026, it could potentially cancel around $67 billion in contracts annually. However, this amount represents only about 3% of Musk’s original goal of slashing $2 trillion from the federal budget, or 7% of his revised $1 trillion target.

Challenges and Criticisms

While DOGE’s early actions demonstrate a commitment to reducing government spending, several challenges and criticisms have emerged:

Limited Impact

The current rate of cancellations puts DOGE on track to achieve only a fraction of its ambitious cost-cutting goals.

Transparency Concerns

Questions have been raised about the transparency and accountability of DOGE’s decision-making process.

Legal Challenges

DOGE is facing a lawsuit alleging violations of federal transparency standards, particularly the Federal Advisory Committee Act.

Potential Disruptions

Critics argue that rapid contract cancellations may lead to unintended consequences and disruptions in government services.

Limited Authority

As an advisory body, DOGE can only make recommendations and cannot directly alter the federal budget without Congressional approval.

Implications for Government Contractors

The actions of DOGE are likely to have significant implications for government contractors:

Increased Scrutiny

Federal contracts may face closer examination, potentially leading to more terminations or modifications.

Operational Changes

Contractors may need to adapt to new efficiency standards and potentially do more with less funding.

Opportunities for Innovation

Some contractors see potential opportunities in helping agencies identify and implement efficiencies.

Uncertainty

The rapid pace of changes and lack of clear guidelines have created uncertainty in the government contracting sector.

Conclusion

As DOGE continues its operations, its impact on government spending and the broader landscape of federal contracting remains to be seen. The department’s ability to achieve its ambitious goals while navigating legal, political, and practical challenges will be closely watched in the coming months.

FAF review :

The horse is released to safeguard the life of his master, Trump. Repeatedly, it has been highlighted that the U.S. fears a prolonged recession unless they address the $1.8 trillion budget deficit. Consequently, the Trump administration intends to bypass established protocols, regulations, and security measures to leverage DOGE as a means to reduce this figure.

Within the next 90 days, anticipate the cancellation of both unwarranted and warranted government contracts. No doubt Elon must is ready to salute again.

It is crucial for the new administration to understand the origins of the $1.8 trillion budget deficit. While foreign aid to Ukraine has been cut, assistance to Egypt and Israel remains unchanged. It is essential to monitor the amount of aid directed to these nations, as we continue to track the budget deficit.

Also government spending is $6 billion a day? We suggest to audit this line item.

At 23% of GDP spending far exceeds government revenues, which is 17% of GDP in 2024.

This 6% gap is the deficit.

Explanation

In 2024, highest spending priority for the federal government was in Social Security, which typically takes up the largest portion of the federal budget, followed closely by Medicare and national defense spending. You can see 17% on education is why government wants to keep cutting expenditure in the area. Education and defence are together at 29% and not sure where 15 % is shown in others. 10 % in debt payment is very high as government borrows and interest accrued in very high. Would be good to audit the ‘other’ section of 15%

In 2010, federal spending in the United States was 23.4% of GDP

Explanation

The highest spending priority for the federal government in 2010 was education and health and human services. 

The amount the government can spend depends on how much revenue it collects. 

This is a great comparison as major chuck of federal expenditure goes in social security, Medicare and Defence spending.

You would hear again and again that federal wants to cut social security and Medicare. It is interesting to note‘Defence spending’ in 2024? And worth the research.

The amount the government can spend is based on how much revenue it collects. This revenue comes from taxes, customs duties, and other sources. 

And represents significant over-spending into the economy in 2023/2024.

Further after just about two months into fiscal 2025, the US has already raked in a $624BN budget deficit?

This is a key number to be analyzed by DOGE as a good starting point.

Further the US government spent more than $1 trillion in a year on interest payments on the national debt, which currently stands at $35.3 trillion. This was reported by the Treasury Department. Interest payments are 30% higher than last year.

Not sure how much is this rumour true?

Leaked memo from US House Budget Committee Republicans reveals Trump tax handouts to the wealthy estimated at $1.2 Trillion, includes:

Repeal 15% corporate profit minimum tax

Elimination of estate tax for millionaires

Lowers corporate tax rate to 15%

Reinstate corporate tax loopholes

Historically, Congress imposed restrictions on arms sales; however, with Republicans holding a majority and Trump’s influence, the landscape is set to change. Trump is likely to advocate for increased defense sales as a strategy to generate revenue and address the budget imbalance.

As mentioned previously, we will conduct a comprehensive review of the budget. We are aware of $850 billion in unaccounted funds identified in the Pentagon audit. It is imperative that the new Secretary of Defense and Elon DOGE address this ongoing issue.

Furthermore, the U.S. left $7 billion worth of defense supplies in Afghanistan. Trump was met with resistance from Afghanistan regarding the return of these supplies. Although this amount is relatively small compared to the $1.8 trillion deficit, every penny is significant.

Trump's influence could potentially facilitate the implementation of sanctions. Further insights will be provided in the upcoming budget review.