DOGE's Cost-Cutting Efforts Could Cost US Taxpayers Big Time: Report

Elon Musk's push to cut government spending through the Department of Government Efficiency (DOGE) may end up costing American taxpayers billions, a new report warns.

At first, Musk and DOGE promised to save $2 trillion by cutting waste and fraud. But that goal was later reduced to $150 billion.

Now, experts say the savings could be much smaller—and the hidden costs much bigger. Around 260,000 federal workers have left their jobs since President Trump returned to the White House, either by taking buyouts, being fired, or retiring early.

The IRS alone could lose about one-third of its workforce, according to reports from The New York Times.

With fewer workers, the IRS may collect less money in taxes. Yale's Budget Lab found that if 22,000 IRS employees leave, the government could lose almost $198 billion in revenue over ten years.

"We do need to have our government work better, but the approaches that have been adopted so far are taking us in the exact wrong direction," said Max Stier, head of the Partnership for Public Service, a group focused on making government better, Fortune said.

The Partnership's study estimates DOGE's efforts could cost taxpayers about $135 billion this year. This figure includes lost work, rehiring costs, and salaries for workers placed on paid leave. It does not count the money spent defending lawsuits or the IRS's missed tax collections.

Experts Say DOGE Savings May Be Overstated by 80%

Some of DOGE's claimed savings have been questioned. Harry Kraemer, a business professor at Northwestern University, said DOGE's savings could be overstated by up to 80%.

Some of the "saved" money came from contracts that had already ended before Musk took charge.

Meanwhile, the White House defended DOGE. Harrison Fields, a spokesman, said, "Doing nothing has a cost, too," and criticized experts for not looking at that side of the issue.

Experts say the bigger problem is that cutting workers means cutting the work they were hired to do.

Richard Prisinzano from The Budget Lab explained that the IRS needs people to do audits and bring in tax money. Without enough staff, the government loses billions.

According to CBSNews, Max Stier added that the chaos caused by constant firings, rehirings, and extra paperwork has hurt productivity. "Ultimately, it's the public that will end up paying for this," he said.

Even Musk admitted he can't walk away completely. He said he would still spend one or two days a week helping DOGE for the rest of Trump's term, aiming to keep government waste from coming back.

Originally published on vcpost.com