DOGE announces more than $1B in savings after canceling 104 federal DEI contracts

The Department of Government Efficiency (DOGE) recently made headlines with the announcement of over $1 billion in taxpayer savings through the elimination of 104 diversity, equity, and inclusion-related (DEI) contracts. This move comes as part of President Donald Trump’s executive order aimed at ending illegal discrimination and restoring merit-based opportunities.
Since Wednesday, DOGE has canceled 85 “DEIA” contracts from 25 federal agencies, with the total number reaching 104 contracts by Friday afternoon. The Department of the Treasury led the pack with 21 canceled contracts, saving $25,247,783, followed by the Department of Health & Human Services with 15 contracts worth $28,187,448.
The Office of Personnel Management saw the largest dollar figure savings, with three contracts totaling a staggering $494,956,233, averaging about $165 million per DEI contract. Other agencies with significant contract cancellations include Agriculture with 11, and the U.S. Agency for International Development (USAID) and Homeland Security each with seven.
In response to the cancellations, the Department of Veterans Affairs placed 60 employees focused solely on DEI on administrative leave, emphasizing a shift back to the core mission of providing the best care and benefits to veterans and their families.
Despite the administration’s focus on efficiency and cost savings, a group of liberal state attorneys general criticized the executive order, calling it unnecessary and disingenuous. Led by Rhode Island AG Peter Neronha, the attorneys general from 13 states expressed a willingness to combat discrimination using longstanding civil rights laws instead.
In Congress, Rep. Aaron Bean and Sen. Joni Ernst have championed the DOGE efforts to reduce government waste and abuse. Bean, founder of the Congressional DOGE Caucus, and Ernst, a proponent of return-to-work requirements for federal employees and the sale of underused federal office space, are leading the charge to streamline government operations.
Overall, the DOGE’s swift action in canceling DEI contracts reflects the administration’s commitment to efficiency and merit-based opportunities. While facing criticism from some quarters, the savings achieved through these cancellations mark a significant step towards eliminating wasteful spending and promoting accountability in government operations.