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The Department of Government Efficiency (DOGE) fell short of its core goal to reduce federal spending, but it delivered one of the fastest peacetime reductions in the federal workforce on record before being disbanded, according to a new analysis from the CATO Institute.Â
DOGE was created to slash waste and shrink government, initially targeting $2 trillion in budget savings. That figure was later revised down to $1 trillion and then $150 billion. While the initiative also sought to streamline procurement, reduce regulation, and downsize agencies, its measurable impact came almost entirely through employment cuts.
Spending Continued to Rise
Federal outlays showed no meaningful decline during DOGE’s tenure.
Treasury data show the federal government spent $7.6 trillion in the first 11 months of 2025, exceeding spending levels from prior years and closely tracking Congressional Budget Office projections. There was no clear break in the spending trend tied to DOGE’s launch.
Most federal spending is driven by entitlement programs, which DOGE lacked authority to change. As a result, outlays continued largely unchanged despite the initiative’s stated goals.
Workforce Shrank at Unmatched Speed
Where DOGE did leave a mark was employment.
Federal civilian employment fell by about 271,000 workers from January to November 2025, a roughly 9% decline in less than a year. That pace has not been seen outside of post-war demobilizations. Nearly 60% of the reduction occurred in October, driven largely by a one-time civil service buyout.
By November, federal employment had fallen back to levels last seen in 2014.
Why Cuts Didn’t Translate Into Savings
Despite the scale of layoffs, savings were limited.
Federal payroll accounts for a small share of total spending, and workforce reductions do not significantly affect entitlement-driven outlays. Prior estimates suggest a 10% workforce cut saves roughly $40 billion annually—modest relative to total federal expenditures. Some reductions may also be offset by increased contractor use.
A Mixed Record
DOGE ultimately failed to reduce federal spending, but it achieved the largest peacetime workforce contraction in decades. Elon Musk, closely associated with the initiative, recently described its results as limited—a judgment largely supported by the data.
Future efforts to rein in spending would likely require direct congressional action. DOGE showed how quickly the federal workforce can shrink, but also how difficult it is to cut costs without structural reform.
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