• DOGE claims $160 billion in savings while costing taxpayers $135 billion.
• Mass layoffs and court hearings lead to significant financial implications.
• Elon Musk's ambitious goals for cost cuts have not been met.

Elon Musk's Department of Government Efficiency (DOGE) asserts that it has saved about $160 billion through efforts to eliminate wasteful spending. However, a recent analysis conducted by the Partnership for Public Service (PSP) reveals that these efforts may have inadvertently cost taxpayers as much as $135 billion during the current fiscal year, stemming from the consequences of job cuts and lost productivity, among other factors. The overall impact includes not only compensation costs but also the financial burden of numerous lawsuits challenging DOGE’s actions, particularly those that have resulted in forced layoffs or court-mandated rehiring of staff, according to CBS News.

Since the inception of DOGE, the organization has focused on canceling contracts and minimizing government workforce size as part of its strategy, declaring average savings of more than $10 billion per week. However, analyses conducted have pointed out the difficulty in verifying these savings. For example, many of the claimed savings lack sufficient evidence, and prior claims have even been shown to contain significant errors, as highlighted in a thorough examination by the BBC. These reports indicate that many entries on DOGE's savings list do not correspond to actual changes in spending, raising questions about accountability and transparency, as reported by BBC.

The budgetary strategy employed by DOGE has led to considerable layoffs at various federal agencies, particularly affecting around 22,000 positions at the IRS. This drastic reduction could lead to foregone tax revenues estimated at $323 billion over the next decade, exacerbating the economic fallout of the cuts while further challenging the claimed savings attributed to DOGE. As noted by analysts, the cuts could potentially create a ripple effect that reduces funding for essential government functions, including health and science research, according to findings from New York Times and CBS News.

While the White House has defended DOGE's achievements, the critiques from various watchdog groups highlight concerns that the effort might create more inefficiencies than it resolves, fundamentally questioning whether the optimism surrounding these savings will translate into long-term fiscal health. Critics have pointed out that Musk’s initial pledge of saving $2 trillion appears unattainable given the current trajectory and the mounting costs that undermine any efficiency gains. This sentiment is echoed in the analyses from multiple sources advocating for reassessment of DOGE's financial strategies, according to New York Times and BBC.