WASHINGTON, D.C. — In recent weeks, President Donald Trump and Elon Musk have made headlines by citing examples of alleged waste, fraud, and abuse within the U.S. government. Through the Department of Government Efficiency (DOGE), Trump’s administration has claimed to cancel contracts that waste taxpayer money, including grants for international programs like:
- $19 million for biodiversity efforts in Nepal
- $10 million for male circumcision in Mozambique
- $14 million for promoting social cohesion in Mali
- $42 million for social behavior research in Uganda by Johns Hopkins University
But are these claims backed by facts? And is DOGE actually saving taxpayers billions—or are the numbers misleading?
Myth vs. Reality: Were These Government Contracts Secret?
Despite claims from Trump and Musk supporters, most of the contracts highlighted by DOGE were never hidden from public scrutiny. Federal contracts over $25,000 are required by law to be publicly available on platforms like USASpending.gov—a government database that has been active since 2007.
For example:
- The contract funding male circumcision in Mozambique is publicly listed and aligns with World Health Organization recommendations to prevent HIV/AIDS infections.
- The social cohesion project in Mali was awarded through a transparent bidding process and was designed to promote stability in a region affected by terrorism and political unrest.
In short, these contracts were not secret, and Congress approved the funding as part of the federal budget process.
Is DOGE Saving $55 Billion? The Numbers Don’t Add Up
While DOGE’s website claims to have achieved $55 billion in projected savings, the actual amount of realized savings appears to be much lower:
- The department’s own “wall of receipts” reports confirmed savings of $8.6 billion so far—only about 0.1% of the federal government’s $6.8 trillion budget for the last fiscal year.
- Of the 1,100 contracts DOGE lists as canceled, more than one-third report $0 in savings because the funds had already been spent or the contracts hadn’t begun yet.
- Many of the canceled contracts were agreements that merely set spending ceilings, meaning the government might never have spent the full amount anyway.
Example: A $10 million diversity, equity, and inclusion (DEI) training contract with CulturePoint LLC at the Consumer Financial Protection Bureau was terminated before any funds were disbursed. While DOGE claims $10 million in “savings,” the government hadn’t spent anything yet.
How Are Government Contracts Awarded?
Contrary to Trump’s claims of secret deals, federal contracts undergo a highly regulated and competitive bidding process:
- Agencies issue a request for proposals (RFP) to invite bids from contractors.
- Contracts are awarded based on lowest price and best value—not political connections.
- Multiple reviews ensure compliance with spending laws and agency guidelines.
For instance, the $14 million contract in Mali that Trump mentioned was awarded to Chemonics International after a competitive process that attracted four bidders.
“Federal spending is one of the most regulated processes in existence,” says Michael Embrich, a former policy adviser at the U.S. Department of Veterans Affairs.
Fraud vs. Legitimate Spending: What’s the Truth?
While Trump and DOGE frequently label certain contracts as fraudulent, they have not provided evidence to support these claims. In fact:
- The Government Accountability Office (GAO) estimates that actual government fraud could range from $233 billion to $521 billion annually—still a fraction of overall federal spending.
- Existing oversight bodies, such as the Inspector Generals (IGs) and the Department of Justice (DOJ), are already tasked with investigating and prosecuting fraud.
- Trump’s administration itself weakened oversight by firing more than a dozen inspectors general during his first term.
Transparency or Political Theater?
The DOGE initiative claims to bring hidden government waste to light, but most of the spending examples cited by Trump and Musk were already public and approved by Congress. Critics argue that the focus on small-ticket items like DEI training or foreign aid ignores the real drivers of the federal deficit:
- Social Security: Up 7% year-over-year
- Medicare: Up 5%
- Defense spending: Up 8%
- Interest on debt: Up 13%
These five categories account for over 70% of the federal budget, while many of DOGE’s cuts represent a tiny fraction of government spending.
Does Canceling Contracts Save Money? Not Always
Simply canceling contracts doesn’t guarantee actual savings:
- Some contracts establish a maximum ceiling on spending, meaning the full amount may never have been spent.
- Contracts that have already delivered services or spent funds offer no refund once canceled.
- Long-term project cancellations may even lead to financial penalties or increased costs later, particularly in infrastructure or technology projects.
“Transparency matters, and making sure these savings are realized—not just projected—is the key to proving DOGE’s impact,” says Brandon Daniels, CEO of Exiger, a federal contracting oversight firm.
