White House rejects report claiming some DOGE canceled contracts won’t help save tax dollars

The White House is pushing back against a report from the Associated Press claiming that nearly 40% of the federal contracts canceled by the Department of Government Efficiency (DOGE) aren’t expected to save the government any money. The AP first reported this figure on Tuesday, stating that it was based on data from the Trump administration.

DOGE, led by Elon Musk, recently published a list of 1,125 contracts terminated by President Donald Trump’s cost-saving program. The AP analysis of DOGE’s data found that more than one-third of these contract cancellations, totaling 417 contracts, are not anticipated to result in any savings. This is primarily due to the fact that the funds for these contracts have already been fully obligated, meaning the government is legally required to spend the allocated funds.

A White House official defended the cancellations, stating that many of the contracts were on auto-renewal and that terminating them prevents wasteful spending in the future. The official emphasized that DOGE is identifying previously unknown sources of waste, ultimately benefiting American taxpayers. Additionally, an unnamed administration official noted that it makes sense to cancel contracts that are deemed inefficient, even if they do not immediately result in savings.

However, government contracting law expert Charles Tiefer criticized DOGE’s approach, likening it to confiscating used ammunition with no remaining value. Tiefer expressed concern that DOGE’s mass cancellation of contracts could harm government agency performance, suggesting that efficiencies could be achieved through collaboration with agency contracting officers and inspectors general.

Despite the criticism, DOGE has estimated that the overall contract cancellations have already saved over $7 billion. The AP highlighted various examples of canceled contracts, including those for office furniture installation, carpet cleaning, and consulting services for organizational restructuring at agencies like the CDC.

It’s worth noting that the White House’s clash with the AP extends beyond the contract cancellation report. A federal judge recently declined to immediately order the restoration of the AP’s access to presidential events, following a dispute over the naming of the “Gulf of Mexico” as the “Gulf of America.”

In conclusion, while some question the effectiveness of DOGE’s contract cancellations, the White House maintains that the program is essential in identifying and eliminating wasteful spending. The ongoing debate underscores the complexity of government efficiency initiatives and the challenges of achieving meaningful cost savings.