Despite Musk's DOGE efforts, US spending increased under Trump - WSJ

Federal spending in the US has increased since President Donald Trump took office, despite Elon Musk's Department of Government Efficiency (DOGE) cutting contracts, cutting jobs and ending diversity programs, The Wall Street Journal reports, according to UNN.

Details

An analysis of daily financial reports published by the US Treasury Department showed that government spending since the inauguration is $154 billion higher than the same period in 2024 under President Joe Biden's administration.

DOGE claims cuts of $150 billion so far, but a Journal analysis found that these efforts have not yet affected the bottom line.

And while government revenues - taxes and income, including duties - have also increased, this is not enough to keep pace with higher spending.

The WSJ analysis shows that the Musk team's $150 billion in savings will barely affect $6.8 trillion in spending.

In addition to domestic spending, the US has paid $25.5 billion more in interest on the national debt since Trump returned to the White House than in the same period in 2024. Rising interest rates and growing government debt are contributing to higher interest expenses.

DOGE, the publication writes, began cutting spending with a "shock and awe" campaign, firing at least 25,000 probationary federal employees and cutting funding for foreign aid. Some laid-off civil servants have regained their jobs, and the dismissal of probationary employees is currently being challenged in court.

In particular, the administration's efforts to cut spending at the US Agency for International Development (USAID) have reportedly faced obstacles. At first, spending was sharply reduced, as US Treasury Department data shows. However, in March, the US Supreme Court rejected the administration's emergency request to postpone foreign aid payments, and in recent weeks spending has almost returned to 2024 levels.

DOGE, meanwhile, has scored several victories in several of the more than 100 spending categories tracked in the Treasury Department's daily report. But they were rated as "small victories," indicating that the full effect of DOGE's efforts is likely to be felt for many years to come.

"I think the net effect of DOGE on federal spending, at least as far as we can track it in the Treasury Department's daily report, has been fairly insignificant," said Don Schneider, deputy head of US policy at Piper Sandler. - It will take time to accumulate these savings, but it will also depend on whether the administration wins in court on some of these claims."