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Sujit Kumar
Mar 4, 2025
by Sujit Kumar

DOGE Targets Waste, Aims to Slash Gov Contracts & Boost Citizen Savings

DOGE Targets Waste

Table of contents

  1. Consultants Under Scrutiny
  2. Economic Impact and Potential Payouts
  3. Market Reaction and Investor Caution
Amid mounting concerns over wasteful spending, a new initiative led by Elon Musk’s DOGE aims to eliminate up to $1 trillion from the government budget. The proposal requires federal agencies to list and justify consulting contracts from 10 major firms by week’s end, targeting so-called “Oasis” contracts covering professional services such as accounting, engineering, logistics, and banking.

Consultants Under Scrutiny

This move comes as part of a broader effort to boost efficiency by cutting non-essential contracts. Firms like Deloitte, Accenture, Booz Allen Hamilton, Leidos, and IBM—set to receive over $65 billion in fees in the coming years—are now at risk. Acting GSA administrator Stephen Ehikian stressed that these changes align with the Trump administration’s goals to eliminate waste and reduce spending, signaling support for DOGE’s cost-cutting measures.

Economic Impact and Potential Payouts

The initiative could lead to significant job losses and reduced government contracts, with estimates suggesting that layoffs could far exceed the commonly cited 300,000, affecting millions of federal contractors. However, proponents argue that the long-term benefits could be substantial. A Trump proposal envisions channeling 20% of the savings from these cuts to American citizens, with potential payouts of up to $5,000 per household once the DOGE-led reforms conclude in July 2026.

Market Reaction and Investor Caution

While the proposal has sparked enthusiasm among some investors and reform advocates, it also raises concerns about the broader economic impact. Reduced government spending might lead to higher unemployment and slower GDP growth in the short term, though analysts like Michael Wilson of Morgan Stanley believe these challenges could be temporary, ultimately paving the way for a more stable fiscal outlook.

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DOGE Targets Waste, Aims to Slash Gov Contracts & Boost Citizen Savings
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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