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Trump Administration Continues Federal Spending and Workforce Reduction Initiatives into 2025

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Federal Spending and Workforce Initiatives Continue into 2025

Initiatives focused on federal spending reduction and government efficiency, previously associated with the DOGE program, continued to be a part of the Trump administration's agenda through the end of 2025.

Former DOGE Leader's Reflections

Billionaire Elon Musk, who previously served as a DOGE leader and adviser, commented on his involvement with the administration. He described DOGE's work as "somewhat successful" but indicated he would not repeat the experience. Musk stated that efforts stopped funding identified as wasteful. He departed from his role with DOGE in May following legal challenges and conflicts with cabinet members.

Despite Musk's departure, the principle of reducing spending to address the national deficit remained a core objective for the administration's vision of a streamlined bureaucracy.

Implementation and Outcomes

While many initial goals for increased efficiency and spending cuts did not fully materialize, the administration maintained its focus on these objectives. The approach shifted towards more incremental adjustments within federal agencies.

Federal Workforce Reductions

  • Agencies that had been directed by DOGE to dismiss employees earlier in the year were observed rehiring hundreds of workers before the fiscal year concluded in September.
  • The Office of Management and Budget (OMB) attempted further layoffs during the government shutdown in October.
  • By the end of 2025, approximately 317,000 federal employees were projected to have left government service, according to the Office of Personnel Management.
  • Specific federal agencies and programs, including the U.S. Agency for International Development, the Corporation for Public Broadcasting, and portions of the Education Department, were largely eliminated.

Despite these workforce reductions and efforts to reduce contracts and terminate leases, federal expenditures continued to exceed revenue.

Targeted Funding Cuts

OMB Director Russ Vought spearheaded efforts to reduce the federal workforce. Vought has historically advocated for a smaller federal government footprint, including proposals for mass reductions-in-force across several agencies during the October government shutdown, which were subsequently blocked by courts.

During the shutdown, the administration also announced several rounds of funding reductions impacting transportation and energy grants.

Data Consolidation Initiatives

Efforts initiated by DOGE to consolidate sensitive personal data across federal agencies withstood legal challenges and were applied to the administration's immigration enforcement objectives. This included:

  • The transformation of a federal citizenship verification database.
  • Requests for states to provide information on federal food aid recipients.

NPR previously reported instances where U.S. citizens were incorrectly identified by some of these efforts.

Ongoing Restructuring Efforts

Even after Musk's exit, the work initiated by DOGE persisted. Several of Musk's key allies and DOGE personnel transitioned into full-time roles within the agencies they had been assigned to.

An executive order signed on August 21, 2025, established the National Design Studio, tasked with improving the federal government's online systems and websites. Joe Gebbia, an Airbnb co-founder and associate of Musk, leads this initiative, having previously overseen the overhaul and digitization of the federal employee retirement system at the Office of Personnel Management.

The studio's projects include developing the website for the new "Trump Accounts," which are tax-advantaged investment accounts for U.S. children, created under the "One Big Beautiful Bill Act" enacted earlier in the year. Other projects include the Energy Department's "Genesis Mission" and the US Tech Force, a two-year program designed to recruit engineers for government technology development.

Federal Spending and National Debt

One of DOGE's stated purposes was to address the national debt. The national debt increased by over $2.2 trillion from October 1, 2024, to September 30, 2025, reaching over $38 trillion. This figure is projected to increase by at least an additional three trillion dollars over the next decade, exceeding baseline projections due to the "One Big Beautiful Bill Act," which includes tax cuts and new spending allocations for administration priorities.

White House spokesman Davis Ingle stated the administration's commitment to reducing waste, fraud, and abuse within the government. The White House did not provide direct responses to inquiries regarding the government's deficit spending or the increase in national debt.

From October to the end of November, the federal government spent nearly half a trillion dollars more than it collected. This amount was slightly less than during the same period in the previous year.

The majority of federal spending, approximately 65% in this fiscal year, is allocated to Social Security, Medicare, health programs, income security, and veterans' benefits and services. An additional portion covers interest payments on the national debt, while 14% is for national defense. DOGE's initiatives did not include these programs, as changes would require Congressional action.