When the DOGE programme (Digital Optimisation for Government Efficiency) was launched in 2023, the White House hailed it as a landmark reform. Elon Musk, then one of the most influential figures in global technology, was entrusted with applying his trademark disruptive methods to the machinery of federal government. The ambition was staggering: cut waste, digitalise outdated bureaucratic processes, and generate between one and two trillion dollars of annual savings — a sum equal to almost 8% of US GDP, comparable to the entire defence budget of the United States. The programme was seen as a test case of Silicon Valley thinking inside Washington. This was reported by The WP Times, citing Axios.

Why the project lost momentum

Two years later, the reality looks much less impressive. Reports cited by Axios and other US outlets show savings of around $200 billion — ten times less than the most optimistic forecasts. Critics argue that Musk repeated the same template he had applied at Twitter: rapid, large-scale staff cuts, followed by an expectation of leaner operations. Yet unlike in the private sector, government agencies require regulatory expertise and continuity of service. Departments such as Health and Human Services reportedly struggled with backlogs and delays after thousands of employees were laid off.

Trump administration’s sharp critique

Commerce Secretary Howard Lutnick, speaking in the first episode of Axios’s new political series, accused Musk of “Twitter-style management” instead of targeted spending reforms. According to Lutnick, the focus on headcount reductions distracted from the deeper structural problems of fraud, overspending and poor procurement oversight. Only after the strategy shifted back to auditing and transparency did any measurable improvements begin to emerge.

The numbers behind the disappointment

Musk’s vision of saving up to $2 trillion annually implied cutting more than $5 billion in waste every single day. Independent economists immediately questioned the feasibility of such figures, pointing out that the US Government Accountability Office had identified around $300–350 billion in “high-risk” wasteful spending per year — far below Musk’s claims. Current DOGE savings of $200 billion, while significant in absolute terms, represent less than 3% of total federal expenditure. Experts note that some of these savings are difficult to verify and may overlap with already planned budget cuts.

Where DOGE goes from here

With Musk and his team no longer directly involved, DOGE has been restructured into a longer-term initiative under federal oversight. Its priorities now include step-by-step expenditure audits, expansion of e-government services, and stricter procurement controls. The pace is slower but considered more sustainable. Lutnick has publicly admitted that the project is “off track” compared with 2023 expectations, but insists that “the curve is pointing upwards” in terms of effectiveness.

Broader consequences for politics and business

The faltering reform raises questions about the role of private entrepreneurs in managing public policy. For future administrations, the DOGE experience may become a cautionary tale about importing Silicon Valley’s aggressive cost-cutting methods into the public sector. For Musk personally, the setback comes at a cost to his public image. Bloomberg’s Billionaires Index recently confirmed that Larry Ellison has overtaken Musk as the world’s richest man, a symbolic shift reflecting both market trends and reputational headwinds.

Why this matters

The fate of DOGE is more than a footnote in Musk’s career. It highlights the growing pressure on the US government to modernise its operations while balancing accountability, efficiency and political feasibility. It also underscores the risks of relying on high-profile business leaders to solve systemic problems: charisma and ambition alone cannot replace the slow, complex work of reforming the state.

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