POLITICO Energy The reality behind DOGE’s exaggerated savings claims
Aug 15, 2025
Uncover the truth behind DOGE’s inflated savings claims, revealing a staggering gap between reported and actual savings. The supposed $50 billion cut shrinks to just $1.4 billion, raising questions about financial transparency. Delve into the implications for federal deficit reduction and the questionable accounting practices at play. Plus, learn about the Energy Department's new funding initiative aimed at critical minerals projects. Get ready for a deep dive into government efficiency and its real impact on energy policy!
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Big Claim, Tiny Verified Savings
- DOGE claims about $50 billion in contract savings but verifiable adjustments total roughly $1.4 billion through late July.
- Those $1.4 billion are freed for agencies to re-spend and do not necessarily reduce the federal deficit.
Ceiling Cuts Aren't Real Budget Cuts
- DOGE counts the difference between a contract's ceiling and committed spending as 'savings,' which reflects potential future avoided costs, not present cuts.
- Only Congress can rescind obligations so deobligated funds remain available to agencies unless formally rescinded.
Use Rescissions To Lock In Cuts
- Treat deobligations as provisional until Congress rescinds them to permanently remove spending needs.
- Use rescissions legislation to convert DOGE's deobligations into real deficit reductions.