Skip Navigation

Nearly 40% of contracts canceled by DOGE are expected to produce no savings

apnews.com Nearly 40% of contracts canceled by Musk's DOGE are expected to produce no savings

Nearly 40% of the federal contracts President Donald Trump's administration claims to have canceled as part of its signature cost-cutting program aren’t expected to save any money.

Nearly 40% of contracts canceled by Musk's DOGE are expected to produce no savings

The Department of Government Efficiency run by Elon Musk last week published an initial list of 1,125 contracts that it terminated in recent weeks across the federal government. Data published on DOGE’s “Wall of Receipts” shows that more than one-third of the contract cancellations, 417 in all, are expected to yield no savings.

That’s usually because the total value of the contracts has already been fully obligated, which means the government has a legal requirement to spend the funds for the goods or services it purchased and in many cases has already done so.

That’s usually because the total value of the contracts has already been fully obligated, which means the government has a legal requirement to spend the funds for the goods or services it purchased and in many cases has already done so.

“It’s like confiscating used ammunition after it’s been shot when there’s nothing left in it. It doesn’t accomplish any policy objective,” said Charles Tiefer, a retired University of Baltimore law professor and expert on government contracting law. “Their terminating so many contracts pointlessly obviously doesn’t accomplish anything for saving money.”

34
34 comments
34 comments