Nearly 40% of contracts canceled by DOGE are expected to produce no savings
(AP) Nearly 40% of the federal contracts that the Trump administration claims to have canceled as part of its signature cost-cutting program arent expected to save the government any money, the administrations own data shows.
The Department of Government Efficiency run by Elon Musk last week published an initial list of 1,125 contracts that it terminated in recent weeks across the federal government. Data published on DOGEs Wall of Receipts shows that more than one-third of the contract cancellations, 417 in all, are expected to yield no savings.
Thats usually because the total value of the contracts has already been fully obligated, which means the government has a legal requirement to spend the funds for the goods or services it purchased and in many cases has already done so.
Its like confiscating used ammunition after its been shot when theres nothing left in it. It doesnt accomplish any policy objective, said Charles Tiefer, a retired University of Baltimore law professor and expert on government contracting law. Their terminating so many contracts pointlessly obviously doesnt accomplish anything for saving money.
https://apnews.com/article/doge-federal-contracts-canceled-musk-trump-cuts-a65976a725412934ad686389889db0df