The Department of Government Efficiency (DOGE), established by President Donald Trump and initially led by Elon Musk, aims to streamline federal operations and reduce government spending.
Since its inception in January 2025, DOGE has made some deep cuts and ruffled more than a few feathers.
Prediction markets seem skeptical that DOGE will have much of a positive impact.
Here’s a look at what it’s done, who it’s gone after, and where it might strike next.
Workforce Reductions
The first thing DOGE did was cut — and cut hard. More than 281,000 federal positions have been slashed in just a few months, nearly eight times last year’s total job cuts. The impact has been particularly harsh in the D.C. area, where a significant chunk of the local economy is built on government employment. Despite the bold claims of $160 billion in savings, independent reviews suggest much of this is smoke and mirrors — a mix of expired contracts and inflated estimates that don’t quite add up.
Targeted Agencies
DOGE has zeroed in on a few key agencies for these cuts, including the Environmental Protection Agency (EPA), the Department of Education, Centers for Medicare and Medicaid Services (CMS), AmeriCorps, Institute of Museum and Library Services (IMLS), Millennium Challenge Corporation (MCC), National Science Foundation (NSF), Peace Corps, Securities and Exchange Commission (SEC), and even the United States Postal Service (USPS). It’s a wide net, and one that’s drawn sharp criticism for gutting the infrastructure of federal oversight and social services.
Tech Overhaul
It’s not just about layoffs, either. DOGE is pushing a technology overhaul, revamping decades-old Pentagon software to speed up workforce reductions. The so-called “Workforce Reshaping Tool” is designed to streamline the firing process across multiple agencies, making it easier to cut entire departments with a few keystrokes.
Legal Pushback
Of course, this hasn’t gone unchallenged. A federal judge in San Francisco recently blocked large portions of Trump’s downsizing effort, putting the brakes on DOGE’s rapid restructuring. Critics argue that these cuts weaken essential government functions, compromising public safety, veterans’ care, and food safety.
Social Fallout
The social fallout is already apparent. Programs like Medicaid, Social Security, and Medicare have faced significant budget reductions, potentially forcing vulnerable individuals out of long-term care facilities and slashing benefits for millions.
Global Impact
International aid hasn’t fared any better — DOGE effectively shut down the U.S. Agency for International Development (USAID), ending HIV prevention programs in Mozambique and pulling the plug on countless other global health efforts.
Financial Blowback
Despite the claims of financial savings, the economic ripple effects are being felt across the country. Federal contractors and local economies dependent on government jobs are facing a harsh reality as funding dries up.
Musk’s Role in Question
Despite all this, the future of DOGE is looking uncertain. Musk has recently stepped back from his role, raising questions about the department’s direction moving forward.
Backlash and Skepticism
With mounting legal challenges, a backlash from affected communities, and growing skepticism from within the federal workforce, it’s unclear whether DOGE can maintain its current momentum.
What Comes Next
One thing is certain — the shake-up isn’t over yet. As DOGE continues its mission to shrink the federal government, the real impact on American workers and global partnerships remains to be seen.
