4 Ways DOGE’s Billions in Cuts Could Cost You

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Elon Musk, before his unceremonious departure from his political career, famously said the Department of Government Efficiency (DOGE) would cut up to $2 trillion in government waste. Currently, DOGE’s official site only shows $180 billion in savings, and even if this is accurate, it is nowhere near reaching that lofty goal.

Unfortunately, those savings can be detrimental to Americans’ finances, thanks to costs related to re-hiring essential workers and more, according to Max Stier, president and CEO of the Partnership for Public Service. Keep reading to find out just how the DOGE cuts could end up impacting your wallet.

Quick Take: DOGE Cuts So Far

Here are a few key takeaways about how DOGE has affected the federal budget and beyond: 

• DOGE’s website also claims that it has saved about $1,118 per taxpayer thus far, but this is up for some debate as there are questions and corrections about the actual savings achieved.
• Some economists and analysts estimate the real cuts to be closer to $63 billion. 
• The organization initially published large savings figures based on contract terminations and workforce reductions, but some of these were later found to be inflated or based on misunderstandings of government accounting practices, including with departments such as the Department of Health and Human Services, Department of Education, Social Security and even the Internal Revenue Service (IRS).

Here are four ways DOGE cuts will hit Americans to the tune of $135 billion.

Taxes Could Increase

The IRS has long been in the crosshairs of Musk and Trump. DOGE has already cut 11% of the workforce — per Treasury Inspector General for Tax Administration (TIGTA) — particularly auditors, through multiple reduction-in-force (RIF) measures. This seemingly has minimal impact on Americans. However, lost revenue could directly result in the need for tax increases.

The Yale Budget Lab said cutting the agency’s staff so drastically would lead to much less tax revenue and slower technological progress, costing the government a lot of money over a decade. That lost income will need to be made up somehow, likely through eventual tax hikes.

Medical Costs Could Increase

Biomedical research wasn’t immune to DOGE’s chainsaw on spending. The National Institutes of Health (NIH) saw reduced staff and funding due to DOGE. The agency oversees $48 billion in annual spending, researching various diseases and conditions, according to its website.

“By early April, the NIH had experienced $2.4 billion in canceled and frozen grants and contracts, had fired 1,200 employees and induced retirement and resignations from a yet unspecified number. The administration’s 2026 budget proposes a 37% further cut to the agency,” said Richard Frank and Sherry Glied of the Brookings Institute.

The cuts may seem insignificant in light of the total NIH budget, but less spending at NIH could result in slower discovery of affordable treatment options. It could also limit access to free or low-cost therapies to cure Americans and provide less support for families with medical conditions.

Fewer Job Opportunities

Key to DOGE’s efforts is reducing the federal workforce. This was accomplished through firings and buyout offers to employees. Roughly 150,000 employees have left the federal workforce already, according to the New York Times.

The impact on Americans’ wallets comes in manifold ways, with the most obvious being employees who have lost their jobs. Additional impacts range from slowing innovation to job losses in local communities, as federal contractors may have fewer opportunities.

Indirect Costs Could Increase

Given the size of the federal government, it may seem difficult to pinpoint exact costs caused by DOGE’s actions. Tax savings are an undeniable result of many of the cuts, amounting to $38 billion over the next decade, according to the Partnership for Public Service.

Those savings could easily vanish for Americans dealing with fewer job opportunities, increased health premiums and out-of-pocket health expenses. Time will tell the economic impact that many Americans will feel.

DOGE promised big cuts, but the result pales in comparison, with costs erasing much of the agency’s efforts. Those costs don’t even include charges tied to legal challenges, thanks to the moves. Any remaining savings could vanish, impacting Americans even more.

Caitlyn Moorhead contributed to the reporting for this article.

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