Unraveling the Truth: Did DOGE Really Slash $232 Million From Social Security? The Surprising Real Number Revealed!

The “Department of Government Efficiency” (DOGE) recently boasted about saving taxpayers nearly $232 million by canceling an IT contract for the Social Security Administration. However, the reality is quite different; the actual savings were only around $560,000. This small amount was mostly due to the cancellation of a project that aimed to develop an “X” gender marker for internal databases.

On Wednesday, the Social Security Administration confirmed the lower figure, uncovering a significant gap between DOGE’s claims and the facts. This discrepancy surprised few, as Dylan Hedtler-Gaudette, director of government affairs at the Project on Government Oversight, had already criticized DOGE’s performance, highlighting the issues in their operations.

When the DOGE was first introduced, it seemed like little more than a publicity stunt. Yet, once Trump took office, the agency began operating with unclear procedures and outcomes. The mishandling of the Social Security contract is just the latest example of confusion surrounding DOGE’s claims of savings.

In response to concerns from Democrats about its effectiveness, DOGE recently attempted to show transparency by posting a “wall of receipts.” However, reports soon followed that a claim of saving $8 billion by cutting a U.S. Immigration and Customs Enforcement contract was drastically overstated, as the actual amount was only $8 million. Similarly, claims of saving $1.9 billion from USAID contracts were also questionable, given that the costs had only accumulated to $55 million over several years.

The inflated savings claim for the Social Security contract originated from misunderstandings, or perhaps deliberate misdirection, around a large IT deal with Leidos, a Fortune 500 company. Since 2018, Leidos has received $1.5 billion through a contract with a ceiling of $1.9 billion, aimed at upgrading Social Security systems. Although this goal aligns with Musk’s concerns about outdated technology, DOGE exaggerated the savings to more than $231 million when, in reality, it stemmed from cutting the Gender X Marker project.

A spokesperson from Social Security clarified that the only actual savings were from the Gender X Marker project cancellation, which totaled just $560,000. They noted, “While the overarching task order was not terminated, we continue to assess projects within this order to find additional savings.”

DOGE had previously claimed the project elimination would save over $1 million, citing Trump’s executive order that only recognizes ‘two sexes.’ This move echoed ongoing discussions around transgender rights and has faced criticism from various groups.

Concerns about the impact of DOGE’s initiatives have grown, especially as Musk has made misleading claims regarding Social Security, causing alarm among Democrats who worry these statements could signal future benefit cuts. Some members of Congress have expressed that the agency is operating without adequate oversight. Rep. John Larson commented on the cost-cutting focus of DOGE, contrasting it with the government contracts benefiting Musk’s businesses.

Hedtler-Gaudette emphasized the need for more transparency in DOGE’s reporting. He remarked that the “wall of receipts” lacks sufficient context and analysis, making it difficult to verify their claims. He added, “I don’t think they’ve earned the benefit of the doubt.”