Elon Musk Has Benefited From DOGE Cuts but Have the Rest of Americans? Experts Weigh In
Written by
Tobi Opeyemi Amure
Edited by
Rebekah Evans
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Elon Musk’s Department of Government Efficiency (DOGE) has claimed massive savings while facing criticism for potentially benefiting the billionaire personally. Congressional reports estimate Musk’s companies avoided $2.37 billion in potential liability through DOGE’s regulatory changes this year.
Meanwhile, everyday Americans face increased delays and diminished access to essential services, according to finance expert Andrew Lokenauth, founder of TheFinanceNewsletter.com.
Musk’s Personal Financial Gains Through DOGE Operations
A Senate subcommittee investigation revealed how DOGE cuts have disproportionately benefited Musk and his business empire. According to the minority staff report, Musk’s companies faced 25 federal investigations before Trump took office. The report estimated Tesla alone faced $1.19 billion in potential liability for allegedly misleading autopilot statements.
The Congressional analysis further revealed that Musk put pressure on the head of the Federal Aviation Administration (FAA) to resign before Trump’s inauguration. This could be because in September 2024 the FAA suggested several fines totaling $633,009 against SpaceX for license infractions. The FAA also tried to dismiss regulators overseeing Musk’s economic interests.
However, Musk can’t be held accountable for this action because his status as senior advisor shields him from scrutiny that cabinet members receive.
Questionable Savings Claims and Accounting Errors
DOGE’s website claims $175 billion in total savings since Trump took office, representing over $1,000 per taxpayer. However, analysis by multiple news outlets reveals significant accounting errors and questionable methodology in these calculations. According to The New York Times, earlier DOGE claims included an $8 billion typo for an $8 million contract.
The Atlantic reported that verified budget savings stood at just $2 billion after correcting various accounting mistakes. Per a BBC analysis, less than 40% of DOGE’s claimed savings include links to supporting documentation. According to CBS News, DOGE’s actions may have actually cost taxpayers $135 billion through productivity losses and rehiring.
Real-World Impact on American Citizens and Services
“There have been sectors where waste was reduced, mainly in outdated bureaucratic processes. Streamlining digital operations or cutting legacy contracts helped modernize tech and defense procurement. A few urban centers even saw faster permit approvals,” said Daniel Ray, national insurance expert and CEO of InsuranceForBurial.com.
“Rural communities and working-class families often get hit hardest. When funding is cut without a backup plan, essential services like mail or healthcare access vanish overnight,” Ray added. Reports from USA Today and the Center for American Progress also confirmed that Americans in some regions are experiencing longer wait times for Social Security and other federal services after staff reductions.
Public Trust and Service Quality Deterioration
Public trust in federal agencies has continued to decline as DOGE’s cost-cutting measures reshape government operations. According to a KFF Health Tracking Poll, 61% of Americans opposed major cuts to staff and spending at federal health agencies. Moreover, 54% said the Trump administration and DOGE have gone too far with recent reductions.
The same survey found that most Democrats and independents see the cuts as reckless, while a majority of Republicans support the changes as necessary for efficiency. “Some see the cuts as needed tough love, while others see neglect. The mixed signals make it harder for people to believe the system works for them, especially when services feel slower or out of reach,” Ray explained.
An analysis from the Council on Criminal Justice also warned that funding cuts risk eroding public trust in government, especially when services are reduced or discontinued. Lokenauth said indiscriminate reductions can lead to disruptions, backlogs and a decline in service quality, which further undermines confidence in federal institutions
Concerns Surrounding DOGE’s Approach
“Policymakers need to understand fiscal responsibility should never mean sacrificing service. The lesson from DOGE is clear: Cutting costs isn’t leadership unless paired with clear improvements and a strategy that protects the vulnerable while fixing what’s broken,” Ray said.
While DOGE’s $175 billion in claimed savings includes contract cancellations and fraud crackdowns, experts argue that the human cost risks overshadowing short-term gains. The true long-term impact of DOGE’s cuts on American communities and finances remains under debate, with both positive and negative effects still emerging.
The subcommittee report said it does not accuse Musk of illegal activity in his DOGE role. However, according to multiple experts, the concentration of regulatory relief benefiting Musk’s companies raises ethical questions. Per ongoing analysis, the true long-term impact of DOGE’s cuts on American communities remains under scrutiny.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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