DOGE Claims To Have Saved $160 Billion – But Its Cuts Will Cost Taxpayers $135 Billion, Report Finds

The Department of Government Efficiency (DOGE), headed up by tech billionaire Elon Musk, claims it has saved $160 billion in the U.S. budget. But the Partnership for Public Service (PSP), a nonpartisan study organization, reported that its cuts would cost taxpayers $135 billion.

The study, prepared by PSP, highlights the unexpected effects of DOGE’s reductions and efficiency efforts.

The report stated that PSP’s calculation considers the fiscal effect of putting tens of thousands of federal workers on paid leave, rehiring suddenly dismissed employees, and causing a loss in productivity. 

Last month, Rich Couture, a union leader for Social Security Administration (SSA) employees, declared that DOGE’s cuts to the agency will send it into a “death spiral.”

DOGE hoped to cut federal expenditures by inducing government workers to take deferred resignations, which allow them to earn full pay and benefits without working.

Over 24,000 workers were terminated due to these reforms, but many have been rehired after legal appeals. 

“We haven’t seen much focus on the waste [DOGE] is creating. This is an effort that was created to address waste, but we were seeing the opposite,” PSP President Max Stier stated. “Ultimately, it’s the public that will end up paying for this.”

He mentioned that he expects taxpayers’ costs to increase after other DOGE cuts take effect.

The White House has pushed back on the report.

“The continued attempts to sow doubt in the massive accomplishments of this never-before-seen effort to make government more efficient speaks more about the illegitimacy of those peddling these falsehoods than good work of DOGE,” White House spokesperson Harrison Fields. “The American public is in lockstep with the president’s mission and will not be swayed by more lies coming from the legacy media.”

One of the most important impacts of DOGE’s cuts could be the reductions in the Internal Revenue Service (IRS).

The agency, which is planning to slash nearly 40% of its workforce, will lose significant tax revenue as a result.

Estimates from the Yale Budget Lab suggest the IRS cuts could lead to a $323 billion loss in tax revenue over the next ten years due to decreased audits and lower tax compliance. 

According to the report, even though DOGE’s attempts might pay off in the long term, like saving $38 billion over the next ten years through the layoffs, Stier noted that the costs for taxpayers could increase as they ripple through the economy.

These include reductions in health and science research funding, which could lead to an estimated $16 billion yearly economic loss and the loss of 68,000 jobs. 

The Food and Drug Administration (FDA) suspended a quality-control testing program for drinking milk and other dairy products after the termination and departure of 20,000 employees of the Department of Health and Human Services (HHS).