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Inspector General Report Backs DOGE, Reveals Unused IRS Space Wastes Millions

Federal Contract Activity Slows as DOGE’s Cost-Cutting Measures Take Effect

by Tyler Durden, Zero Hedge
May 17, 2025
America First Healthcare

(Zero Hedge)—President Donald Trump and Elon Musk’s DOGE (Department of Government Efficiency) have exposed widespread federal waste and mismanagement that Congress long ignored. Despite the existence of oversight bodies like the Government Accountability Office, it took an executive order to uncover billions of dollars in egregious federal waste.

DOGE’s drive to cut waste and root out fraud in the bloated federal bureaucracy has already resulted in nearly 300,000 job cuts and an estimated $160 billion in savings. As detailed in our series of reports, DOGE’s actions are delivering tangible results—helping to reduce the nation’s overall funding requirements.

The debt-fueled spending spree under the Biden-Harris regime placed the nation on a crash course to financial ruin—but recent corrective actions by the Trump administration and DOGE, for now, have helped steer the trajectory away from a financial crisis.

Readers may recall some of those tangible DOGE-related results:

  • March Deficit Unexpectedly Tumbles To 5 Year Low As DOGE Cracks Down On Democrat Money-Laundering Schemes
  • US Treasury Unexpectedly Reports Sharp Drop In Debt Borrowing Needs, Rates Slide
  • US Treasury Shocks With Second Biggest Budget Surplus In History
  • Jobless Claims Jumped Last Week As ‘DOGE Actions’ Spark Biggest YTD Layoffs Since 2020
  • Is DOGE Starting To Work? ‘Deep TriState’ Jobless Claims Surged Last Week

Some progresshttps://t.co/hNCBVYB4YV

— Kekius Maximus (@elonmusk) April 11, 2025

Everything outlined above points to a solid start for DOGE, which has already uncovered hundreds of billions in waste, fraud, and abuse. However, that progress could be undone unless Congress moves to lock in those spending cuts through the reconciliation bill.

DOGE has identified hundreds of billions of dollars of waste, fraud, and abuse, but unless Congress makes those spending cuts permanent through the reconciliation process, all that work will have been for nothing.@Paul_S_Mullen pic.twitter.com/7Y8j4T5ehJ

— Heritage Foundation (@Heritage) May 5, 2025

Another measure of DOGE’s early success is the 20.5% reduction in non-defense federal obligations compared to 2024 levels—a decline that signals reduced future cash outlays as these obligations come due.

“Persistent government-wide contract reviews for wasteful spend, consistent with the DOGE Cost Efficiency Executive Order, are bearing fruit,” DOGE’s official X account wrote.

Adding to the visible signs of progress, Goldman chief economist Jan Hatzius, along with analysts Alec Phillips and others, noted Thursday that cash withdrawals from the Treasury General Account across several federal agencies continue to fall below 2023 and 2024 levels—yet another encouraging sign of success.

JD Christian Conservative Links 1

Also, new monthly federal contract obligations have sharply slowed under DOGE after four years of large spikes under the Biden-Harris regime.

“Notably, new federal contracts data has undershot trend in recent months and stood at $18.2bn in April (compared to $31.1bn in April 2024). Total government grant awards remain stagnated at Inauguration Day levels,” the analysts said.

More color here.

However, Hatzius and his team noted that year-to-date cash withdrawals from the Treasury General Account remain $123 billion above 2024 levels.

The early results of DOGE mark a shift in federal accountability. In just months, DOGE has uncovered hundreds of billions in waste, slashed nearly 300,000 federal jobs, and driven $160 billion in savings. Yet why did it take an executive order from the president to have a group take a deep dive into how federal agencies spend their money?

But this progress is not guaranteed. Without congressional action to lock in these cuts through reconciliation, the swamp remains open for the bureaucratic bloat to return. The message is clear: DOGE is working, but can only be sustained through political action.

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