Nearly 40% of federal contracts canceled as part of the Trump administration’s cost-cutting initiative will not save the government any money, according to data from the Department of Government Efficiency (DOGE), led by Elon Musk.
Last week, DOGE released a list of 1,125 terminated contracts on its “Wall of Receipts” platform. Of these, 417 contracts — representing $478 million in obligations — are expected to yield no savings, as the government had already committed to or paid for the goods and services, according to agency records.
“It’s like confiscating used ammunition after it’s been shot when there’s nothing left in it,” said Charles Tiefer, a retired University of Baltimore law professor specializing in government contracting law. “Terminating so many contracts pointlessly doesn’t accomplish anything in terms of saving money.”
Among the canceled agreements were subscriptions to media outlets like The Associated Press and Politico, research studies, employee training, purchased software, and completed internships. An administration official, speaking anonymously, defended the cancellations, stating that removing potential “dead weight” made sense, even if no immediate savings were realized.
Some of the most notable cancellations include a $567,809 furniture contract for the Department of Housing and Urban Development, a $145,549 carpet cleaning service for the U.S. Agency for International Development, and a $249,600 transition support contract for the Department of Transportation following the shift from the Biden to Trump administration.
The largest terminated contract involved Deloitte Consulting LLP, which had received $13.6 million to assist the Centers for Disease Control and Prevention’s National Center for Immunization and Respiratory Diseases in restructuring its research offices post-COVID-19. Despite the contract’s cancellation, the full amount had already been committed.
Tiefer criticized DOGE’s “slash and burn” approach, suggesting that a more effective strategy would involve collaborating with agency contracting officers and inspectors general to identify efficiencies. While DOGE claims its overall cancellations will save over $7 billion, independent experts have questioned the accuracy of this figure.
As the administration continues its cost-cutting efforts, questions remain regarding the long-term impact of its contracting decisions on government performance and efficiency.
