The United States Department of Government Efficiency (DOGE), led by Elon Musk, has denied a Reuters report claiming its shutdown, calling it ‘fake news.’ The agency asserts it remains operational and has implemented cost-saving measures, such as terminating 78 wasteful contracts and saving $335 million. Reuters, however, reported that the agency had effectively disbanded, with many of its functions absorbed by the Office of Personnel Management (OPM), and key personnel relocated to other government departments.
DOGE, launched by former President Donald Trump in January 2021, was intended to reduce federal waste and bureaucracy. Musk, as the government efficiency czar, was tasked with modernizing the government and curbing waste, fraud, and abuse. In a statement on X, DOGE claimed to have terminated 78 wasteful contracts, resulting in a $335 million saving for taxpayers. The agency also stated it would resume its regular Friday updates in the coming days.
Reuters, however, had published a report stating that DOGE had effectively disbanded eight months before its mandate expired. Office of Personnel Management Director Scott Kupor told Reuters that DOGE ‘doesn’t exist’ as a centralized entity, with many of its functions absorbed by OPM. The report also noted that Trump administration officials had referred to DOGE in the past tense in recent months, indicating the agency’s reduced role and the absorption of its staff into other parts of the government.
Uncertainty about the agency’s future had been building for months. After a public feud between Musk and Trump over the president’s flagship ‘big, beautiful bill,’ Musk resigned as head of DOGE and left Washington in May. Politico had previously reported that staff had vacated DOGE’s headquarters in June, packing up ‘clothes and bedding.’ The agency was known for its unannounced office visits, deep spending cuts, and mass layoffs, raising questions about its continued existence and impact.