An executive order signed on February 11 calls for a transition to a general policy across the government of one hire for every four departures combined with possible reductions in force in select agencies.
These moves could reduce costs but only if Congress gets on board. In 2025, there were expected to be about 2.3 million federal civilian workers before the DOGE-mandated reductions, with pay and benefits costing $476 billion. If the DOGE reforms push the total employment down by 100,000 workers, it might be possible to save $20 billion per year, which is significant. But the savings will only accrue to taxpayers if Congress agrees to reduce appropriations for the relevant agencies. Otherwise, spending that would have gone toward salaries can be redirected to other line items, such as grants and contracted services. With Democratic votes required to pass appropriation bills, the DOGE-initiated personnel cuts are unlikely to produce lasting savings.
Source: James Capretta, AEI
Government spending — including health care spending — has become something of an economic development initiative. Congress never intended it to be efficient. It’s a way to buy votes and party favors. Every time a Medicare provider is accused of fraud the Member of Congress from that district comes to the rescue. The FDA is even afraid of enforcement action because there are always a Members of Congress wanting to know why their constituents are being singled out.