Recent data from the Trump administration’s cost-cutting program shows that nearly 40% of the federal contracts it claims to have canceled won’t actually save the government any money. The Department of Government Efficiency (DOGE), led by Elon Musk, released a list of 1,125 cancelled contracts. Surprisingly, 417 of those, making up more than a third, are expected to yield zero savings.
Why is this? Often, it’s because the funds for these contracts have already been spent. This means the government must fulfill its financial commitments for goods or services that have already been received.
Charles Tiefer, a retired law professor and government contracting expert, explained it simply: cancelling contracts at this stage is pointless. “It’s like trying to reclaim used ammunition—you can’t get anything back,” he said. His view is that these cancellations do little to help save money.
Many of the cancelled contracts were for things already paid for, like subscriptions to media services and training programs that have been completed. An anonymous official from the administration argued that even if some contracts don’t save money, it’s wise to cut those seen as unnecessary.
According to DOGE, the 417 canceled contracts totaled around $478 million, with many others likely to generate little savings as well. Tiefer points out that once the government has committed to these contracts, it’s often too late to change course without facing financial consequences.
He criticized the DOGE’s method, labeling it a “slash and burn” tactic that could harm government operations. Instead, he suggested that savings might be found by collaborating with contracting officers to improve efficiency—a strategy that hasn’t been prioritized by this administration.
While DOGE claims these cancellations could save more than $7 billion in total, experts have raised concerns, stating that this figure may be overstated. The cancelled contracts varied widely, covering numerous services and goods.
For example, the Department of Housing and Urban Development recently awarded a contract for office furniture that it had already fully funded. Similarly, the U.S. Agency for International Development had a carpet cleaning contract worth over $145,000 that was completely obligated to a Native American-owned firm.
Some of the cut contracts aimed to modernize government processes, which seems contradictory to the goal of reducing spending. One significant contract was with Deloitte Consulting, which had already received $13.6 million for reorganizing the Centers for Disease Control. This included critical responses related to the COVID-19 pandemic.
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Source linkDonald Trump, Elon Musk, District of Columbia, Iowa City, Baltimore, Iowa, General news, Washington news, Government and politics, Charles Tiefer, Politics
