Elon Musk ’s Department of Government Efficiency (DOGE) under US President Donald Trump’s administration is reportedly projected to cost taxpayers $135 billion this fiscal year. According to a new analysis from the nonpartisan Partnership for Public Service (seen by the New York Times), this will undercut DOGE’s claim of $160 billion in savings. The PSP study attributes these costs to putting tens of thousands of federal employees on paid leave, rehiring workers who were mistakenly fired and lost productivity across agencies. Based on the federal workforce’s $270 billion annual compensation, the analysis calculates the financial impact of DOGE’s efficiency drives on taxpayer dollars. However, the $135 billion estimate does not include legal fees for defending multiple lawsuits against DOGE or potential revenue losses from IRS staffing cuts .
How Elon Musk’s DOGE may be costing the US government money
As per PSP’s analysis, based on federal budget data, suggests that the combined costs of terminations, rehiring, lost productivity and paid leave for thousands of employees will exceed $135 billion this fiscal year. At the IRS alone, a DOGE-induced departure of 22,000 staffers is projected to slash about $8.5 billion in revenue in 2026, per Yale’s Budget Lab figures, with total workforce departures potentially reaching 32,000.
In a statement to the NYT, PSP CEO Max Stier said: "Not only is Musk vastly overinflating the money he has saved, he is not accounting for the exponentially larger waste that he is creating. He's inflicted these costs on the American people, who will pay them for many years to come."
According to the NYT report, Musk has said DOGE is likely to save taxpayers about $150 billion, which is just 15% of the $1 trillion he initially pledged and under 8% of the $2 trillion he once promised, and a drop in the bucket compared with the nearly $7 trillion the US government spent in fiscal 2024.
DOGE aimed to cut at least 12% of the 2.4 million-strong civilian workforce, but only about 100,000 workers have left via buyouts or firings—fewer than the thousands who retire each year, the report noted.
At least a quarter of those dismissed have since been rehired at full pay after judges ruled their terminations illegal or Musk admitted “accidentally” sacking critical personnel. Those rehired remain on paid leave, imposing extra costs on taxpayers, the report continued.
How Elon Musk’s DOGE may be costing the US government money
As per PSP’s analysis, based on federal budget data, suggests that the combined costs of terminations, rehiring, lost productivity and paid leave for thousands of employees will exceed $135 billion this fiscal year. At the IRS alone, a DOGE-induced departure of 22,000 staffers is projected to slash about $8.5 billion in revenue in 2026, per Yale’s Budget Lab figures, with total workforce departures potentially reaching 32,000.
In a statement to the NYT, PSP CEO Max Stier said: "Not only is Musk vastly overinflating the money he has saved, he is not accounting for the exponentially larger waste that he is creating. He's inflicted these costs on the American people, who will pay them for many years to come."
According to the NYT report, Musk has said DOGE is likely to save taxpayers about $150 billion, which is just 15% of the $1 trillion he initially pledged and under 8% of the $2 trillion he once promised, and a drop in the bucket compared with the nearly $7 trillion the US government spent in fiscal 2024.
DOGE aimed to cut at least 12% of the 2.4 million-strong civilian workforce, but only about 100,000 workers have left via buyouts or firings—fewer than the thousands who retire each year, the report noted.
At least a quarter of those dismissed have since been rehired at full pay after judges ruled their terminations illegal or Musk admitted “accidentally” sacking critical personnel. Those rehired remain on paid leave, imposing extra costs on taxpayers, the report continued.
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