Federal Spending Rises Despite Efficiency Push as Data Security Risks Emerge
Washington D.C., Tuesday, 30 December 2025.
One year following the establishment of the Department of Government Efficiency (DOGE), a fiscal paradox has emerged: while federal employment has contracted by 9 percent, overall government spending has actually increased by approximately $248 billion as of November 2025. Analysis indicates that promised savings failed to materialize, with many claimed reductions found to be misclassified expired contracts or cuts subsequently reversed by litigation. Beyond the budgetary shortfall, the rapid deregulation has introduced significant operational risks; whistleblowers have revealed that millions of Americans’ sensitive data were compromised in unsecured cloud environments during the restructuring. With Elon Musk having departed the initiative in May 2025, the administration now faces the complex challenge of managing a rising deficit alongside critical vulnerabilities in agency infrastructure.
A Disconnect Between Cuts and Savings
The divergence between the administration’s efficiency goals and the fiscal reality of 2025 is stark when analyzing the federal balance sheet. While the Department of Government Efficiency (DOGE) successfully reduced federal employment by 9 percent—bringing the workforce to its lowest level since 2014 with a reduction of 271,000 jobs—these personnel cuts have not translated into aggregate savings [1]. In the first 11 months of 2025 alone, the federal government spent $7.6 trillion, a figure that exceeds spending during the same period in the previous year by approximately $248 billion [1]. Data from the Brookings Institution underscores this trend, revealing a spending increase of roughly 5.929 percent, rising from $7.135 trillion to $7.558 trillion as of December 19, 2025 [1]. This outcome falls significantly short of Elon Musk’s initial projection to slash $2 trillion in waste, a target that was subsequently revised down to $1 trillion and eventually $150 billion before his departure [1].
Scrutinizing the Ledger
Much of the confusion regarding the deficit stems from the methodology used to calculate savings. A detailed analysis of DOGE’s claims found that of the department’s 40 largest stated cuts, only 12 appeared to be accurate [2]. The department faced criticism for opacity; its public “Wall of Receipts” website has not been updated since October 4, 2025 [2]. Significant discrepancies include the listing of two Department of Defense contracts as “terminations”—claimed to save $7.9 billion—which reportedly remained active [1][2]. Additionally, the agency claimed credit for $12.2 billion in savings from pandemic-era contracts that had simply expired or were terminated by the Biden administration prior to DOGE’s formation [2]. Furthermore, aggressive cuts to grants, such as those for the Institute of Museum and Library Services (IMLS), were often reversed by courts, forcing the reinstatement of over 1,000 grants and effectively negating the claimed savings while incurring additional litigation costs [2].
The Human Cost of “Move Fast and Break Things”
Beyond the financial ledger, the operational speed of the restructuring—characterized by White House Chief of Staff Susie Wiles as a “move fast and break things” approach—has exposed critical vulnerabilities in government data infrastructure [1]. In August 2025, Charles Borges, the former Chief Data Officer at the Social Security Administration (SSA), blew the whistle on dangerous data practices, revealing that DOGE had created a live copy of sensitive social security information in an unsecure cloud environment [3]. This breach of protocol led to a lawsuit that temporarily restrained DOGE from accessing SSA data between March 20 and June 6, 2025 [3]. Borges, who resigned citing “anxiety and fear over potential illegal actions,” highlighted that the rush to deregulate and downsize had bypassed essential security protocols, leaving millions of Americans’ data exposed [3].
Administrative Fallout and Future Outlook
The political sustainability of the project fractured in May 2025, when Elon Musk exited the White House following a public feud with President Trump [1]. Since that time, DOGE has ceased to function as a centralized entity, with its remaining staff dispersed to other federal departments [1]. While President Trump continues to advocate for the disarmament of groups like Hamas and pushes for international peace deals, the domestic economic agenda faces the hurdle of explaining why a smaller government is costing taxpayers more [4]. In a podcast interview this month, Musk reflected on the initiative, describing it as “somewhat successful” but admitting he would not undertake the project again, leaving the administration to manage the long-term consequences of a disrupted bureaucracy entering 2026 [2].