Elon Musk, head of the Department of Government Efficiency (DOGE), announced Thursday a dramatically scaled-back federal savings target, now aiming for $150 billion in fiscal year 2026 – a steep reduction from initial claims that soared as high as $2 trillion.
Speaking at a Cabinet meeting on Thursday, Musk presented the revised figure, framing it as a move that would enhance government effectiveness. The $150 billion projection, he stated, will “result in better services for the American people” and ensure federal spending occurs “in a way that is sensible and fair and good.”
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“I’m excited to announce we anticipate saving in FY ’26 from a reduction of waste and fraud a reduction of $150 billion dollars,” Musk said. He highlighted specific examples of targeted waste, adding, “And some of it is just absurd, like, people getting unemployment insurance who haven’t been born yet. I mean, I think anyone can appreciate — I mean, come on, that’s just crazy.”
This marks the latest downward revision for the high-profile initiative under President Donald Trump’s administration. Musk, who has spearheaded DOGE, initially projected $2 trillion in savings by tackling government waste, fraud, and abuse during campaign appearances last fall.
“I think we could do at least $2 trillion,” Musk stated at a Madison Square Garden rally in November 2024. “Your money is being wasted, and the Department of Government Efficiency is going to fix that.”
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By January 2025, that figure was halved, with Musk telling Fox News’ Bret Baier the goal was a “really quite achievable” $1 trillion target aimed at reducing overall federal spending from $7 trillion to $6 trillion.
The current $150 billion target aligns with the figures currently displayed on DOGE’s official website, which tracks cost-saving measures and contract cancellations attributed to the department’s efforts.
President Trump praised Musk’s team following the announcement Thursday.
“Your people are fantastic,” the president remarked. “In fact, hopefully they’ll stay around for the long haul. We’d like to keep as many as we can. They’re great — smart, sharp, finding things that nobody would have thought of.”
The significant reduction in projected savings comes as DOGE continues its work to identify and eliminate inefficiencies across the federal government.
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