New data from February 2025 reveals that federal spending has reached an all-time high, despite Elon Musk’s efforts through the Department of Government Efficiency (DOGE) to slash costs.
Despite Musk’s bold claims that DOGE is on track to save $1 trillion, with supposed daily savings of $4 billion, government expenditures have continued to rise. Critics argue that “the math isn’t mathing,” as DOGE’s highly publicized “wall of receipts”—a running tally of reported savings—has barely inched forward, sitting at just $115 billion.
Adding to the scrutiny, DOGE was recently forced to remove $4 billion in incorrectly filed savings, casting further doubt on its financial impact.
Spending Hits Record Highs
According to the Financial Times, new Treasury data shows that federal spending surged to a record-breaking $603 billion in February 2025, marking a 7% increase compared to February 2024. Many departments have failed to show any reductions, leading to a $40 billion year-over-year spending increase.
The budget deficit has also reached new highs. In the first five months of fiscal 2025, the U.S. recorded a staggering $1.147 trillion deficit, including $307 billion in Donald Trump’s first full month as president—a 4% increase from the previous year.
With thousands of federal jobs slashed under DOGE’s directive, many are questioning where the money is actually going. Economic policy expert Jessica Riedl commented:
“DOGE’s savings are so small that they’re practically invisible in monthly spending totals.”
Where Is the Money Going?
While Secretary of State Marco Rubio followed DOGE’s recommendations and cut USAID’s monthly spending in half to $226 million, those savings are overshadowed by massive increases elsewhere:
- Healthcare spending is rising by $5 billion per month
- Social Security outlays increased by 6%, adding another $8 billion
- Treasury spending jumped by $29 billion, fueled by:
- A $10 billion increase in debt servicing costs (now at $86 billion)
- A $14 billion rise in tax credits and associated payments
Musk Stands Firm Amid Setbacks
Elon Musk, whose personal wealth recently plummeted by $29 billion in a single day, remains defiant. Despite looking visibly frustrated in a recent public appearance, he vowed to “keep following the money” and continue the cuts.
However, calls to restrict DOGE’s powers are growing, with President Trump urging Musk to use a ‘scalpel’ instead of a ‘hatchet’ when making budget reductions. Adding to the pressure, a federal judge has ordered DOGE to release detailed records on its spending and operational decisions.
With scrutiny intensifying and spending continuing to climb, DOGE’s ability to deliver meaningful savings remains in question. Uncomfortable conversations are surely happening behind closed doors.
