As recently as March 27, Elon Musk was still confident that the Department of Government Efficiency (DOGE), the cost-cutting initiative he unofficially headed, could reduce annual federal spending by $1 trillion. But during a Cabinet meeting two weeks later, Musk projected that the savings in FY 2026, when DOGE sunsets, would be more like $150 billion.
Even the latter, much smaller number cannot be trusted, because DOGE has been vague about most of its purported cuts and has repeatedly exaggerated the ones it has specified. And last week, as he shifted his focus from DOGE back to his businesses, Musk acknowledged a reality that should have been obvious from the outset: Any serious attempt to address the country's looming fiscal crisis will require hard choices and congressional action.
Shortly before last year's presidential election, Musk breezily estimated that DOGE could cut annual federal spending by "at least" $2 trillion, which was about the size of the budget deficit in FY 2024. At a press conference in February, he reduced that target by 50 percent, saying DOGE could "cut the budget deficit in half" by insisting on "competence and caring."
