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How much has Elon Musk's Doge cut from US government spending? | How much has Elon Musk's Doge cut from US government spending? |
(2 days later) | |
Elon Musk's Department of Government Efficiency (Doge) - set up to cut US government spending - claims to have saved, on average, more than $10bn a week since President Trump entered office. | Elon Musk's Department of Government Efficiency (Doge) - set up to cut US government spending - claims to have saved, on average, more than $10bn a week since President Trump entered office. |
"We're talking about almost $200bn and rising fast," Trump told the BBC when talking about Mr Musk's cost-cutting drive on 23 April. | "We're talking about almost $200bn and rising fast," Trump told the BBC when talking about Mr Musk's cost-cutting drive on 23 April. |
Doge's website says it is focusing on cancelling contracts, grants and leases put in place by previous administrations, as well as tackling fraud and reducing the government workforce. | Doge's website says it is focusing on cancelling contracts, grants and leases put in place by previous administrations, as well as tackling fraud and reducing the government workforce. |
BBC Verify has looked at the agency's biggest claimed savings, examining the figures and speaking to experts. | BBC Verify has looked at the agency's biggest claimed savings, examining the figures and speaking to experts. |
Our analysis found that behind some of the large numbers, there is a lack of evidence to back them up. | Our analysis found that behind some of the large numbers, there is a lack of evidence to back them up. |
How does Doge report savings? | How does Doge report savings? |
In October, Mr Musk pledged to cut "at least $2 trillion" from the federal government budget. He subsequently halved this target and on 10 April talked about making savings of $150bn from "cutting fraud and waste" by the end of the next financial year in 2026. | In October, Mr Musk pledged to cut "at least $2 trillion" from the federal government budget. He subsequently halved this target and on 10 April talked about making savings of $150bn from "cutting fraud and waste" by the end of the next financial year in 2026. |
The US federal budget for the last financial year was $6.75tn. | The US federal budget for the last financial year was $6.75tn. |
Doge publishes a running total of its estimated savings on its website - which stood at $160bn the last time the site was updated on 20 April. | Doge publishes a running total of its estimated savings on its website - which stood at $160bn the last time the site was updated on 20 April. |
However, less than 40% of this figure is broken down into individual savings. | However, less than 40% of this figure is broken down into individual savings. |
We downloaded the data from the Doge website on 23 April and added up the total claimed savings from contracts, grants and leases. | We downloaded the data from the Doge website on 23 April and added up the total claimed savings from contracts, grants and leases. |
Our analysis found only about half of these itemised savings had a link to a document or other form of evidence. | Our analysis found only about half of these itemised savings had a link to a document or other form of evidence. |
US media has also highlighted some accounting errors, including Doge mistakenly claiming to have saved $8bn from cancelling an immigration contract which in fact had a total value of $8m. | US media has also highlighted some accounting errors, including Doge mistakenly claiming to have saved $8bn from cancelling an immigration contract which in fact had a total value of $8m. |
Doge says it is working to upload all receipts in a "digestible and transparent manner" and that, as of 20 April, it has posted receipts "representing around 30% of all total savings". It also lists some receipts as being "unavailable for legal reasons". | Doge says it is working to upload all receipts in a "digestible and transparent manner" and that, as of 20 April, it has posted receipts "representing around 30% of all total savings". It also lists some receipts as being "unavailable for legal reasons". |
What's the evidence behind the biggest saving? | What's the evidence behind the biggest saving? |
BBC Verify examined the four largest savings listed on the Doge website which had receipts attached. | BBC Verify examined the four largest savings listed on the Doge website which had receipts attached. |
The department claims these add up to $8.3bn, but after examining the evidence provided and speaking to people familiar with federal contracts, this figure appears to be overstated. | The department claims these add up to $8.3bn, but after examining the evidence provided and speaking to people familiar with federal contracts, this figure appears to be overstated. |
For three of the savings, Doge links to documents on the Federal Procurement Data System (FPDS). This is a database which records contracts given out by the US government. | For three of the savings, Doge links to documents on the Federal Procurement Data System (FPDS). This is a database which records contracts given out by the US government. |
The documents show a contract's start and end date, the maximum amount the government has agreed to spend, and how much of that has been spent. | The documents show a contract's start and end date, the maximum amount the government has agreed to spend, and how much of that has been spent. |
David Drabkin, a federal contracts expert who helped develop the FPDS database, said the maximum figure listed should be treated with caution. | David Drabkin, a federal contracts expert who helped develop the FPDS database, said the maximum figure listed should be treated with caution. |
"FPDS does not reflect the actual paid price until some period of time after the contract has been completed and the contract actions have been recorded," he says. | "FPDS does not reflect the actual paid price until some period of time after the contract has been completed and the contract actions have been recorded," he says. |
"For example, when buying research and development into a vaccine no one really knows how much that's going to cost - so when a price is set, it's not a definite price but rather an upper limit." | "For example, when buying research and development into a vaccine no one really knows how much that's going to cost - so when a price is set, it's not a definite price but rather an upper limit." |
So if Doge counts the maximum figure, that can represent projected spending over a number of years, rather than a direct saving from the country's yearly spending. | So if Doge counts the maximum figure, that can represent projected spending over a number of years, rather than a direct saving from the country's yearly spending. |
Elon Musk has said he will reduce his work with Doge to focus on his other companies such as Tesla | Elon Musk has said he will reduce his work with Doge to focus on his other companies such as Tesla |
Doge's largest listed individual saving is $2.9bn. | Doge's largest listed individual saving is $2.9bn. |
It comes from cancelling a contract - which started in 2023 under President Biden - for a facility in Texas to house up to 3,000 unaccompanied migrant children. | It comes from cancelling a contract - which started in 2023 under President Biden - for a facility in Texas to house up to 3,000 unaccompanied migrant children. |
Doge appears to have taken the "total contract value" until 2028 - the end date listed - and subtracted the amount spent so far to get the $2.9bn figure. | Doge appears to have taken the "total contract value" until 2028 - the end date listed - and subtracted the amount spent so far to get the $2.9bn figure. |
But the contract was reviewed annually, meaning renewing it until 2028 was not guaranteed. | But the contract was reviewed annually, meaning renewing it until 2028 was not guaranteed. |
A source familiar with this contract - who spoke on condition of anonymity - told BBC Verify that Doge's figure is "based on speculative, never-used figures" and that the actual spending depended on how many children were placed at the facility and the services they required. | A source familiar with this contract - who spoke on condition of anonymity - told BBC Verify that Doge's figure is "based on speculative, never-used figures" and that the actual spending depended on how many children were placed at the facility and the services they required. |
"In truth, the government never incurred those costs and could never reach that ceiling amount. The real, documentable savings from early termination were approximately $153 million", they estimated. | "In truth, the government never incurred those costs and could never reach that ceiling amount. The real, documentable savings from early termination were approximately $153 million", they estimated. |
They say this figure comes from tallying up the $18m per month fixed running costs (for things like staffing and security at the facility) from February - when Doge announced the cut - to November - when the contract was subject to annual review. | They say this figure comes from tallying up the $18m per month fixed running costs (for things like staffing and security at the facility) from February - when Doge announced the cut - to November - when the contract was subject to annual review. |
They also told us that the site - which closed on the same day as the Doge announcement - never reached its maximum capacity of 3,000 children, and about 2,000 stayed at the Texas facility at its peak, before numbers fell significantly as border crossings decreased. | They also told us that the site - which closed on the same day as the Doge announcement - never reached its maximum capacity of 3,000 children, and about 2,000 stayed at the Texas facility at its peak, before numbers fell significantly as border crossings decreased. |
We contacted the Administration for Children and Families and the Department for Health and Human Services which awarded the contract but are yet to hear back. | We contacted the Administration for Children and Families and the Department for Health and Human Services which awarded the contract but are yet to hear back. |
What about the other big savings? | What about the other big savings? |
The second largest saving listed by Doge comes from cancelling a contract between the Internal Revenue Service (IRS) and an IT company called Centennial Technologies which it claims was worth $1.9bn. | The second largest saving listed by Doge comes from cancelling a contract between the Internal Revenue Service (IRS) and an IT company called Centennial Technologies which it claims was worth $1.9bn. |
The document which Doge links to has a total contract value of $1.9bn and all of the other cost fields, including the amount already spent, are for $0. | The document which Doge links to has a total contract value of $1.9bn and all of the other cost fields, including the amount already spent, are for $0. |
However, Mr Drabkin told us this does not necessarily mean that nothing had been spent on the contract. | However, Mr Drabkin told us this does not necessarily mean that nothing had been spent on the contract. |
He said several government departments have poor recording keeping, meaning the amount spent during some contracts might not always be updated in a timely fashion. | He said several government departments have poor recording keeping, meaning the amount spent during some contracts might not always be updated in a timely fashion. |
Musk to reduce Doge role after Tesla profits plunge | Musk to reduce Doge role after Tesla profits plunge |
Will Elon Musk be able to cut $2 trillion from US government spending? | Will Elon Musk be able to cut $2 trillion from US government spending? |
The contract start date is listed as August 2024 and was estimated to run until 2031. | The contract start date is listed as August 2024 and was estimated to run until 2031. |
However, Centennial Technologies' CEO told the New York Times that the agreement had actually been cancelled last autumn during the Biden administration. | However, Centennial Technologies' CEO told the New York Times that the agreement had actually been cancelled last autumn during the Biden administration. |
The company did not respond to our requests for further comment. | The company did not respond to our requests for further comment. |
Elon Musk has attended the Trump administration's cabinet meetings | Elon Musk has attended the Trump administration's cabinet meetings |
Another IT contract, this time with the Department of Defense, is the third largest claimed saving. | Another IT contract, this time with the Department of Defense, is the third largest claimed saving. |
Doge says $1.76bn was saved by cancelling a contract with an IT services company called A1FEDIMPACT. | Doge says $1.76bn was saved by cancelling a contract with an IT services company called A1FEDIMPACT. |
On the contract document, the total value is listed as $2.4bn. An online database of government contracts called Higher Gov says this amount was the ceiling value. | On the contract document, the total value is listed as $2.4bn. An online database of government contracts called Higher Gov says this amount was the ceiling value. |
Again, there is $0 recorded for the amount that had been spent at the time the contract was terminated. | Again, there is $0 recorded for the amount that had been spent at the time the contract was terminated. |
It is unclear where Doge's figure of $1.76bn comes from - we have asked the Pentagon and the supplier about it. | It is unclear where Doge's figure of $1.76bn comes from - we have asked the Pentagon and the supplier about it. |
The fourth largest claimed saving of $1.75bn comes from cancelling a USAID grant to Gavi, a global health organisation, which campaigns to improve access to vaccines. | The fourth largest claimed saving of $1.75bn comes from cancelling a USAID grant to Gavi, a global health organisation, which campaigns to improve access to vaccines. |
Doge links to a page on USASpending.gov. It shows a grant was paid to Gavi in three instalments, during the Biden administration, totalling $880m. | Doge links to a page on USASpending.gov. It shows a grant was paid to Gavi in three instalments, during the Biden administration, totalling $880m. |
Gavi confirmed that $880m had been paid out by USAID but said it had not been told the grant had been terminated. | Gavi confirmed that $880m had been paid out by USAID but said it had not been told the grant had been terminated. |
"Gavi has not received a termination notice related to this grant," a spokesperson told us. | "Gavi has not received a termination notice related to this grant," a spokesperson told us. |
We have not found any evidence for the $1.75bn saving claimed by Doge, and a source familiar with the contract said it was unclear where it comes from. | We have not found any evidence for the $1.75bn saving claimed by Doge, and a source familiar with the contract said it was unclear where it comes from. |
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We asked the USAID Office of Inspector General about the grant but it did not respond to us. | We asked the USAID Office of Inspector General about the grant but it did not respond to us. |
While Doge may have cut a significant amount of government spending, the lack of evidence provided for its biggest claimed savings makes it impossible to independently confirm exactly how much. | While Doge may have cut a significant amount of government spending, the lack of evidence provided for its biggest claimed savings makes it impossible to independently confirm exactly how much. |
Doge does not have a press office but BBC Verify has contacted the White House to ask for more evidence of these claimed savings. | Doge does not have a press office but BBC Verify has contacted the White House to ask for more evidence of these claimed savings. |
Additional reporting by Ned Davies and Alison Benjamin. | Additional reporting by Ned Davies and Alison Benjamin. |
What do you want BBC Verify to investigate? | What do you want BBC Verify to investigate? |