Government Shrinks Workforce but Spending Keeps Rising
A Historic Decline in Federal Employees
In 2025, the federal government experienced a significant reduction in its workforce, with a 9% drop from 3.015 million to 2.744 million employees. This marked the largest peacetime reduction in government staffing history.
Spending Continues to Climb
Despite the workforce cuts, government spending increased by nearly 6%, rising from $7.135 trillion to $7.558 trillion. This contradicted the promises of the Department of Government Efficiency (DOGE), which had aimed to reduce expenditures.
Elon Musk's Brief Tenure at DOGE
Elon Musk briefly led DOGE but resigned in May 2025, stating he would not return. He claimed DOGE had eliminated some wasteful spending but fell short of achieving major savings goals.
Mixed Results in Government Spending
- Cuts:
- The US Agency for International Development (USAID) was shut down and merged with the State Department.
The State Department and Department of Education also saw reduced budgets.
- Increases:
- The Department of Defense, Homeland Security, and Justice Department all received higher funding.
The Challenge of "Policy Autopilot"
Most government spending is driven by mandatory programs like Social Security and interest on the national debt, which continue to grow regardless of workforce reductions.
Musk's Workforce Reforms
Musk emphasized his efforts to reduce the federal workforce, stating he had "reprogrammed the matrix." However, the broader trend remains: government spending keeps rising even as the number of employees declines.
