DOGE Scraps 104 DEI Contracts, Saving Over $1 Billion in Federal Spending

The Department of Government Efficiency (DOGE) has announced the cancellation of 104 diversity, equity, and inclusion (DEI) contracts across 25 federal agencies, marking a major cost-cutting milestone that will save taxpayers more than $1 billion.

In an operational update shared on January 31 via X (formerly Twitter), the Elon Musk-led advisory body detailed the agencies most affected by the move. The Department of the Treasury led the list, eliminating 21 contracts and saving $25.2 million, followed by the Department of Health and Human Services, which cut 15 contracts worth $28.2 million.

The largest savings came from the Office of Personnel Management (OPM), which canceled three high-value contracts totaling nearly $495 million, averaging $165 million per contract. According to DOGE’s official report, total savings from the terminated DEI agreements amount to $1,000,060,792.

Trump’s DOGE Initiative Targets DEI Programs to Reduce Federal Waste

The sweeping changes stem from former President Donald Trump’s executive order, issued on January 20, which formally created the Department of Government Efficiency by renaming the United States Digital Service, a program originally established during Barack Obama’s administration.

Initially, biotech entrepreneur Vivek Ramaswamy was appointed to co-lead DOGE alongside Musk. However, Trump’s team later announced Ramaswamy’s departure, leaving Musk at the helm. DOGE’s long-term goal is to trim up to $2 trillion from federal spending, with the recent round of DEI contract cancellations marking its first major milestone.

Trump’s executive order explicitly calls for the immediate termination of DEI and DEIA (diversity, equity, inclusion, and accessibility) programs across all federal agencies. The directive describes such initiatives as “illegal, immoral, and wasteful,” arguing that taxpayer funds should be used “to make America great” rather than support programs that promote “division and discrimination.”

Federal Agencies Ordered to Roll Back DEI Programs

In response to the executive order, the Office of Personnel Management has directed all agencies to begin dismantling DEI programs, cancel related training sessions, and lay off DEI staff. This effort forms part of a broader government-wide strategy to cut bureaucratic costs and streamline federal operations.

While critics of DEI programs claim they undermine merit-based hiring and increase government bloat, supporters argue that such initiatives foster inclusion and strengthen institutional culture.

Prior to stepping down, Ramaswamy and Musk co-authored a Wall Street Journal op-ed in November 2024, outlining their shared mission. “The entrenched and ever-growing bureaucracy represents an existential threat to our republic,” they wrote. “We’re not here to write reports or cut ribbons—we’re here to cut costs.”

Next Steps for DOGE: Modernization and Oversight

Trump’s order also requires every federal agency to form a DOGE team of at least four employees to coordinate with the department’s leadership. These teams will focus on implementing cost-saving reforms, modernizing technology, and ensuring taxpayer money is used efficiently.

As the initiative progresses, DOGE’s actions—particularly the mass cancellation of DEI programs—signal a new era of aggressive government downsizing and renewed focus on fiscal accountability in Washington.

Trump Unveils DOGE Initiative to Slash Regulations, Cut Wasteful Spending

Former President Donald Trump formally announced the Department of Government Efficiency (DOGE) on Tuesday, calling it an effort to “slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”

The name DOGE is a nod to Elon Musk’s support for the cryptocurrency dogecoin , which began as a joke but has surged in value, now trading at 38 cents after tripling in the past month.

Trump stated that Musk and former co-leader Vivek Ramaswamy’s work on DOGE “will conclude no later than July 4, 2026,” aligning with the 250th anniversary of the Declaration of Independence. However, he did not provide details on the initiative’s funding or staffing, and the Trump campaign did not respond to inquiries about whether Musk or Ramaswamy would receive compensation.

On Thursday, DOGE’s official X account announced it is seeking “super high-IQ small-government revolutionaries willing to work 80+ hours per week on unglamorous cost-cutting.” In a separate post, Musk clarified: “compensation is zero.”

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