Elon Musk Sets New DOGE Savings Target Amid Departure

Elon Musk, concluding his formal tenure as head of the Department of Government Efficiency (DOGE), revised his savings projections once again, emphasizing that the targeted reductions in government waste and fraud will materialize gradually over time. Speaking alongside President Trump on Friday, Musk reaffirmed his commitment to the initiative, pledging that the work will continue despite his departure from his official government role.

Musk’s Evolving Savings Promises for DOGE

Over the course of his involvement with DOGE, Musk has repeatedly adjusted his estimates of potential savings from government spending cuts. Initially, he promised a staggering $2 trillion in annual savings — a figure that was soon halved. Later, Musk suggested that initial efforts might yield closer to $150 billion in cuts.

On Friday, Musk shifted the emphasis from immediate gains to a long-term vision, expressing confidence that:

“Over time, we’ll see $1 trillion of savings, a trillion dollars of waste and fraud reduction.”

He also highlighted the growth potential of the DOGE team, describing it as becoming “like a way of life” within Washington, suggesting a sustained, institutional effort to curb inefficiencies.

Highlights:

• Initial savings promise started at $2 trillion annually, later reduced.

• Latest projection targets $1 trillion in savings spread over time.

• DOGE team expected to expand and become a permanent fixture in government.

Immediate-Term Savings and Questions on Impact

Despite Musk’s long-term optimism, he offered a more modest immediate-term figure, projecting that savings from the current to next fiscal year would “probably go over $200 billion soon.” This contrasts with DOGE’s website claim of $175 billion in identified savings. Independent analyses, including a Yahoo Finance review, have questioned these figures due to apparent errors and lack of clear evidence.

Moreover, broad government spending data from the Brookings Institution indicates that overall federal expenditures in 2025 are slightly higher than in 2024, underscoring the absence of visible, substantial cuts at the macro level.

Highlights:

• Short-term savings forecast around $200 billion between fiscal years.

• Independent reviews raise questions about accuracy of reported savings.

• Federal spending overall slightly increased in 2025 vs. 2024.

Mixed Results Within Agencies and Workforce Disruption

The effects of DOGE have been most visible in smaller agencies like USAID, where budget reductions and workforce changes have taken place. However, Musk’s aggressive cost-cutting style has left parts of the federal workforce unsettled, reflecting the challenges of implementing sweeping efficiency reforms within a large bureaucracy.

Despite this disruption, broad, sustained budget cuts remain elusive, calling into question the initiative’s overall effectiveness to date.

Highlights:

• Noticeable budget and staffing cuts at agencies like USAID.

• Workforce disruption due to Musk’s management approach.

• Overall federal cuts have yet to be realized at scale.

Trump’s Endorsement and Political Context

President Trump praised Musk’s efforts during the event and expressed hope that Congress would codify the DOGE savings into law. He hinted at additional undisclosed waste reductions uncovered by Musk’s team and predicted that savings would increase substantially over time.

The conversation also included spirited discussions on tariffs, trade, and Musk’s personal reputation, though Musk largely avoided repeating critiques of Trump’s tariff and tax policies. Trump defended his economic agenda robustly, even when some claims — such as deficit reduction through his “big, beautiful bill” — have been widely disputed.

Highlights:

• Trump lauded Musk’s efforts and urged legislative backing for DOGE cuts.

• Both men maintained a cordial tone despite differing views on trade.

• Musk promised to remain an adviser and friend despite leaving his official role.

Challenges and Roadblocks to Efficiency Gains

When asked about obstacles faced by DOGE, Musk declined to blame any individual, suggesting that the initiative’s challenges were systemic rather than personal. He maintained a hopeful outlook that the program would ultimately succeed despite the hurdles.

Highlights:

• Musk described challenges as systemic, not tied to any one person.

• Confidence expressed that DOGE’s mission will continue successfully.

• Musk’s formal departure marks a transition but not an end to his involvement.