Alex Brandon/AP
- DOGE says it's saved $55 billion in total, documenting some of that on a "wall of receipts" on its website.
- On Tuesday, its website showed $16.5 billion in savings, much of that canceled contracts.Elon Musk's White House Office Lowers Expected Savings from Cancelled Contracts
Initial Savings Claims Overstated by $9.3 Billion
The Department of Government Efficiency (DOGE), a White House office led by Elon Musk, has significantly revised its estimated savings from cancelled federal contracts. A review of DOGE's website, which features a "wall of receipts," revealed a reduction in claimed savings from $16.5 billion on Tuesday to $7.2 billion as of Thursday.
Errors Account for Significant Adjustments
The primary reason for the adjustment is a $8 billion error in a contract with the Immigration and Customs Enforcement agency. The contract was initially listed as cancelled for $8 billion, but the agency later clarified that the actual amount was only $8 million.
Additionally, a claim of $2 billion in savings from cancelling three USAID deals was revised. Now, only one of those deals is listed, resulting in a further reduction of $1.3 billion.
Savings Calculation Method
According to a White House official, DOGE calculates savings by subtracting obligated funds from a contract's total award value. The official emphasized that this method is conservative, as DOGE does not take credit for recovered funds or anticipate administrative savings.
Musk Acknowledges Potential Errors
Elon Musk has acknowledged that errors can occur. During a recent appearance with former President Trump, he stated that corrections would be made quickly.
Total Savings Estimates and Future Goals
Despite the revisions, DOGE maintains an estimate of $55 billion in total savings, achieved through various measures including contract cancellations, lease renegotiations, and programmatic changes. However, the website currently only provides data on contract cancellations.
Musk has expressed ambitious goals for DOGE, including a target of reducing the federal deficit by $1 trillion.
