The newly formed Department of Government Efficiency (DOGE) has swiftly initiated measures to reduce excessive federal expenditures, having terminated 85 contracts related to Diversity, Equity, Inclusion, and Accessibility (DEIA) that collectively amount to approximately $1 billion across various federal agencies within the first ten days of its establishment.
In a statement posted on X, the Department of Government Efficiency confirmed this substantial reduction, which affects 24 federal agencies, including the Departments of Education, Labor, Treasury, Defense, Agriculture, Homeland Security, and the Environmental Protection Agency.
The announcement detailed, “As of January 29, 2025, 85 DEIA-related contracts totaling around $1 billion have been canceled within the Departments of Education, General Services Administration, Office of Personnel Management, Environmental Protection Agency, Labor, Treasury, Defense, Agriculture, Commerce, Homeland Security, Veterans Affairs, Health and Human Services, State, National Science Foundation, Nuclear Regulatory Commission, National Labor Relations Board, Pension Benefit Guaranty Corporation, U.S. Agency for International Development, Railroad Retirement Board, Social Security Administration, Small Business Administration, Bureau of Land Management, Consumer Financial Protection Bureau, National Park Service, and National Oceanic and Atmospheric Administration.”
This action aligns with President Trump’s Executive Order on Government Efficiency, which was signed on Inauguration Day and led to the creation of DOGE, aimed at optimizing operations and curtailing wasteful spending. The executive order called for a comprehensive reform of federal technology, the elimination of bureaucratic redundancies, and a reassessment of costly diversity initiatives.
The Department of Government Efficiency, which has taken over the responsibilities of the former U.S. Digital Service, is charged with the task of eradicating wasteful programs and ensuring that federal agencies emphasize performance over political considerations. The decisive action regarding DEIA-related contracts marks a significant indication that the administration is committed to reducing unnecessary federal expenditures and enhancing operational efficiency.
Among the most notable reductions, the Office of Personnel Management (OPM) experienced significant cuts, with nearly $500 million in contracts terminated, while the Department of Agriculture followed with over $110 million in canceled expenditures. Other significant reductions include:
- Department of Homeland Security – $14.9 million
- Department of Health and Human Services – $28.1 million
- Department of Labor – $7.8 million
- Department of Treasury – $25.2 million
- Environmental Protection Agency – $3 million
- Department of Education – $3.8 million
- Federal Aviation Administration (FAA) – $45 million
The executive order stipulates that the DOGE initiative will persist in identifying and eliminating inefficient government contracts over the forthcoming 18 months. The U.S. DOGE Service Temporary Organization, a designated task force within the White House, will supervise additional reductions and reforms, aiming to ensure that every dollar expended yields value.
The Department of Government Efficiency (DOGE) was established by Trump through an executive order, with Elon Musk appointed as its administrator. Notably, DOGE is not classified as a federal executive department but rather as a temporary organization under the United States DOGE Service, previously known as the United States Digital Service. Its main goal is to modernize federal technology and software to improve governmental efficiency and productivity.
The acronym “DOGE” pays homage to the widely recognized cryptocurrency Dogecoin, which emerged from the “Doge” internet meme featuring a Shiba Inu dog.
On Monday, the Department of Veterans Affairs announced the placement of 60 employees, whose roles were exclusively focused on diversity, equity, and inclusion (DEI), on administrative leave. Spokesperson Morgan Ackley remarked that the department is “laser focused on providing the best possible care and benefits to Veterans, their families, caregivers, and survivors.”
Ackley further highlighted the department’s new direction, asserting, “We are proud to have abandoned the divisive DEI policies of the past and pivot back to VA’s core mission.”
