Did Elon Musk Just Lower DOGE's $1 Trillion Savings Target To $150 Billion In A Second Revision Since Jan?

Tesla Inc. CEO Elon Musk, overseeing the Department of Government Efficiency (DOGE), has reportedly reduced his projected budget savings for the upcoming fiscal year.

What Happened: Musk, who initially pledged to cut $2 trillion from the federal budget during Donald Trump‘s 2024 presidential campaign, has now lowered the projected savings to $150 billion. This announcement was made during a cabinet meeting on Thursday, according to the New York Times.

The Department of Government Efficiency, under Musk’s leadership, has been responsible for slashing budgets and laying off thousands of employees in Washington. However, the department’s website shows that it is far from reaching Musk’s revised goal of $1 trillion in savings for the next fiscal year.

"I'm excited to announce that we anticipate savings in '26 from reduction of waste and fraud by $150 billion," stated Musk at the cabinet meeting, referring to the fiscal year spanning October 2025 through September 2026.

Musk also called the government a "target-rich environment" for uncovering waste or fraud.

It is still uncertain whether the $150 billion represents the total projected savings or just the amount identified to date. Despite the confusion, a White House official confirmed that the $1 trillion savings target remains “the goal”, stated NY Times.

In a Fox News interview last month, Elon Musk stated that the DOGE office was on track to cut nearly $1 trillion in government spending by the end of his tenure.

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Why It Matters: Notably, Musk’s cost-cutting efforts have been criticized for errors on the department’s website, including double-counting the same cancellations and claiming credit for ending programs that concluded under previous administrations.

Bank of America (BofA) Securities recently pointed out that DOGE's savings from canceled or renegotiated contracts are apparently "overstated,” as per a Fortune report. The DOGE team reports savings of approximately $24.8 billion through contract cancellations and renegotiations as of March 30, an increase from $21.6 billion the week before that. However, experts told the publication that DOGE seemed to misinterpret the nature of government contracts, resulting in overstated figures. These contracts often include ‘ceiling values’—maximum limits that are typically much higher than the actual amounts spent.

The drastic drop in projected savings comes in the wake of concerns raised by financial experts about the economic impact of the job cuts initiated by the Department of Government Efficiency. Danny Moses, founder of Moses Ventures, had warned about the economic risks from these job cuts.

Moreover, billionaire entrepreneur Mark Cuban had also cautioned about a potential economic crisis worse than 2008 if the downsizing by the Department of Government Efficiency continues, coupled with the newly imposed tariffs.

• READ MORE: ‘Most People Don’t Have The Balls To Do It,’ Says Mark Cuban, Praising Musk For Going ‘All In’ With His Own Money For His Startups

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.