Investing.com - The Elon Musk-led Department of Government Efficiency may potentially end up saving U.S. taxpayers as much as $350 billion a year as part of its ongoing drive to slash federal spending, according to analysts at Wolfe Research.
In a note to clients on Wednesday, the analysts led by Tobin Marcus said they estimate that $30 billion may be saved by reducing the federal civilian workforce by 10%, followed by a further $30 billion to $50 billion from a push to eliminate fraud and improper payments in benefits programs like Medicare and Medicaid and "across the government."
The analysts also suggested that up to $270 billion or more could be saved through the elimination of agencies and major programs through a process known as "impoundment," in which the president blocks funds allocated by Congress from being spent.
The total savings would amount to $60 billion to $350 billion, Marcus said, stressing that these were "generous" estimates that were also dependent on the results of pending litigation.
In late January, Musk said on his X social media platform that he expects cuts from the department, known commonly as DOGE, will soon reach $4 billion per day, which would equate to about $1.5 trillion per year. On Tuesday, an online DOGE tracker claimed that the department had saved taxpayers $37.69 bilion since it began operations on January 20, although it was unclear how the figure was reached, Reuters reported.
DOGE has so far unveiled buyouts to federal workers who agree to resign and suggested that those who choose not to participate in the deal could lose their jobs in a wider effort to downsize the government. It has also moved to dismantle an agency responsible for providing aid to the world's needy and another that aims to provide protections to American consumers from exploitative lenders.