Less than two weeks into Trump’s second presidency, Elon Musk-led the Department of Government Efficiency (DOGE) has slashed over $1 billion by canceling over one hundred “Diversity, Equity & Inclusion” (DEI) contracts. Musk had promised to cut “at least $2 trillion” of the $6.75 trillion federal budget.
Over three-quarters of the recent savings were realized by canceling DEI contracts in just three departments. The Office of Personnel Management (OPM) was the most impacted, of which DOGE slashed $494,956,223. DOGE also saved $228,730,692 from the United States Agency for International Development (USAID) and $110,618,680 from the Department of Agriculture.
The least savings were from the General Services Administration—Federal Acquisition Service (FAS), which had a spending ceiling of $15,168, and only the administrative costs were saved.
The Department of Treasury had 21 DEI contracts canceled, amounting to over $25 million, followed by the Department of Health and Human Services (HHS), in which DOGE terminated 15 contracts amounting to over $28 million. The Department of Agriculture, also one of the top-grossing agencies, had 11 DEI contracts canceled.
DOGE has also highlighted other unreasonable expenditures, including $784 million for constructing a new Embassy in South Sudan, one of the youngest nations with a population of slightly above 10 million.
Other potential savings could be realized by defunding Planned Parenthood, which receives nearly $700 million through government health services reimbursements and grants.
Besides DEI spending, Trump and Musk have suggested shutting down entire departments, such as the Department of Education, and returning education responsibilities to the states. In November 2024, Musk also shared Milton Friedman’s vision of a lean government, highlighting agencies that should cease to exist.
They include the Department of Housing and Urban Development, the Department of Agriculture, the Department of Commerce, the Department of Energy, the Department of Education, the Department of Labor, and the Department of Transportation. Trump’s HHS Secretary RFK Jr. has also suggested scrapping the Food and Drugs Administration (FDA).
While these departments earmarked for scrapping might be serving some purpose, DEI programs are an absolute waste of taxpayers’ money. They also affect government efficiency by turning down the most qualified individuals based on unrelated characteristics such as race, gender, and sexual orientation.
Hot on the heels of the recent air tragedy, it emerged that nearly 1,000 FAA air traffic controllers were turned down because they did not meet the DEI hiring criteria despite acing the pre-employment test.
Meanwhile, Musk has a long way to go to achieve his initially projected $2 trillion target, which he later reduced by half. Nonetheless, any savings, especially those linked to destructive ideologies like DEI, are highly welcome. We can only hope that DOGE will accelerate the cancelations as the Trump administration settles in.
Musk must also surmount various challenges, including non-cooperation by senior employees. Recently, USAID’s director of security and his deputy were sent on administrative leave after denying DOGE employees access to its systems, claiming that some did not have the necessary security clearances.
However, DOGE officials say they did not attempt to access classified materials for which they did not have security clearances.
“No classified material was accessed without proper security clearances,” Kate Miller stated.
As DOGE gains steam, such incidents are only likely to increase, hampering its ability to audit government agencies.
