The new initiative aims to cut spending, but key details remain unclear.
The Big Picture
Elon Musk and Vivek Ramaswamy’s Department of Government Efficiency (DOGE) has generated significant attention in recent days. The initiative aims to identify wasteful federal spending and burdensome regulations. Although DOGE will operate outside the federal government, there are efforts to coordinate with congressional committees.
Musk has stated that he wants to cut $2 trillion in federal spending. Ramaswamy has suggested that certain federal agencies could be eliminated entirely and has spoken about reducing the federal workforce. The idea is that DOGE will issue recommendations, which could then be sent to the White House for consideration.
What remains unclear is how these recommendations will be implemented. When Musk says he wants to cut $2 trillion in federal spending, does he mean in one fiscal year, over five years, or over ten years? Cutting $200 billion annually over a decade is a far more achievable goal than cutting $2 trillion in a single year.
Zooming In
Understanding federal spending
The Congressional Budget Office (CBO) projects that the federal government will spend $6.975 trillion in fiscal year 2025. To put that into perspective, even the world’s richest man, Elon Musk, with a net worth of $333 billion, would need 21 lifetimes of his wealth to fund the federal government for a single year. The combined net worth of the 100 wealthiest Americans is $4 trillion, which would only fund 145 of the 250 business days in FY 2025.
Federal spending falls into three main categories:
- Mandatory spending – programs like Social Security, Medicare, and Medicaid, which are automatically funded.
- Net interest on the public debt – payments to service the national debt.
- Discretionary spending – funding allocated by Congress, including defense and non-defense programs.
DOGE’s goal of cutting $2 trillion will need to navigate these categories carefully.
Federal spending breakdown
Total Projected FY 2025 Spending: $6.975 trillion
The allocation of spending:
Where can cuts realistically be made?
The largest share of federal spending—$4.1 trillion—is dedicated to mandatory programs such as:
- Social Security
- Medicare and Medicaid
- Federal civilian and military retirement
- Veterans’ benefits
These costs are based on the number of eligible beneficiaries, making them difficult to cut without significant political consequences.
Another $1.016 trillion is spent on net interest payments for the national debt. This amount is locked in and cannot be reduced unless the government dramatically reduces borrowing—a task that would require significant entitlement reform.
This leaves discretionary spending, which totals $1.832 trillion, as the most likely target for cuts. However, this is divided almost evenly between defense ($905 billion) and non-defense ($927 billion) spending.
Defense vs. non-defense discretionary spending
Cutting Pentagon waste—easier said than done
There are clear opportunities to reduce inefficiencies in the defense budget. The Pentagon has repeatedly failed audits, with the most recent revealing significant waste. A 2016 report found $125 billion in bureaucratic waste, and Congress has yet to act on those findings.
However, defense spending is politically protected. Lawmakers often resist military budget cuts because defense contractors and military bases provide jobs in their districts. This makes it difficult to achieve meaningful reductions without strong political will.
The challenge of non-defense discretionary cuts
On the non-defense side, the remaining $927 billion funds key government services, including:
- Education programs
- Infrastructure projects
- Scientific research
- Law enforcement and the FBI
Any effort to make substantial cuts would require eliminating or drastically scaling back programs that many Americans rely on.
Data Snapshot
- $6.975 trillion – Total projected federal spending in FY 2025
- $4.1 trillion – Mandatory spending (Social Security, Medicare, Medicaid)
- $1.016 trillion – Net interest payments on the national debt
- $1.832 trillion – Discretionary spending (defense and non-defense)
- $2 trillion – Targeted cuts proposed by DOGE
- $125 billion – Pentagon waste identified in 2016, still unaddressed
- $510 billion – Federal spending in FY 2023 classified as "unauthorized"
Independent Lens
Musk, Ramaswamy, and DOGE have an opportunity to start a long-overdue conversation about federal spending, efficiency, and debt reduction. However, the challenge lies in defining realistic cuts rather than simply making broad promises.
If the administration wants to gain the trust of independent voters, it must present concrete and achievable plans for reducing waste without jeopardizing essential services.
Independents are pragmatic. If these proposals turn into political theater rather than real fiscal responsibility, they will take notice.
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