Government Cuts Billions in Wasteful Contracts
Surprising Move Saves Taxpayers $269 Million
The Department of Government Efficiency (DOGE) has revealed that federal agencies have canceled or reduced 42 contracts worth $1.5 billion over just five days. This action saved taxpayers $269 million.
One of the contracts was for $1.2 million to hire a full-time director for gender and social inclusion at the Millennium Challenge Corp.
Previous Cuts
This isn't the first time DOGE has made such cuts. Just a week before, they announced the termination of 55 contracts worth $1.6 billion over three days, saving $542 million. One of these was a $47 million State Department contract for armored personnel carriers and training for the Somalia National Army.
Total Savings Since January 1
Since January 1, DOGE has saved about $215 billion by canceling contracts, grants, and leases. With around 161 million federal taxpayers, this means each taxpayer has saved approximately $1,335.40.
Departments with Significant Savings
The departments that saved the most money include:
- Health and Human Services
- General Services Administration
- Social Security Administration
- Office of Personnel Management
- Small Business Administration
The Department of Defense (DOD) and the Department of the Air Force also made significant cuts, totaling billions of dollars.
Grants Canceled
The highest amounts canceled were from the now-defunct United States Agency for International Development (USAID), totaling $6.6 billion. USAID was shut down by the Trump Administration in July 2025.
Government Benefit Fraud in Minnesota
Meanwhile, the Treasury Department has uncovered large-scale government benefit fraud in Minnesota. According to Treasury Secretary Scott Bessent, billions of dollars meant for:
- Feeding hungry children
- Housing disabled seniors
- Helping children in need
were stolen by Somali fraud rings. These criminals used the money to buy:
- Real estate
- Luxury goods
- Vehicles
- Planes
- International flights
Fraud Investigations Announced
Following these incidents, President Donald Trump announced a fraud investigation targeting California. Additionally, Texas Governor Greg Abbott has directed state agencies to investigate social services for potential fraud.
