The US Department of Government Efficiency (DOGE), established by US President Donald Trump and headed by Tesla and SpaceX CEO Elon Musk, has announced over $1 billion in savings following the elimination of diversity, equity, and inclusion (DEI) contracts.

On Friday, the agency shared a detailed breakdown of these savings via its official X account. The index listed 30 federal agencies, revealing that 104 contracts with a “ceiling value” exceeding $1.2 billion were canceled as part of Trump's initiative to dismantle DEI programs.

Earlier this week, the agency reported that as of January 29, it had reduced federal spending by approximately $1 billion daily. The savings, it stated, were due to halting “the hiring of people into unnecessary positions, deletion of DEI, and stopping improper payments to foreign organizations.”

This comes as Donald Trump’s newly launched yet vaguely defined Department of Government Efficiency (DOGE) program lost one of its key leaders just hours after the president took office. Vivek Ramaswamy stepped down last week from the cost-cutting initiative, leaving Elon Musk as its sole head.

Ramaswamy’s departure now leaves Musk, the world’s richest man, solely in charge of the initiative—an arrangement that may raise concerns, especially given his assertion that “at least” $2 trillion could be slashed from government expenditures. It is worth noting that Musk's role in leading DOGE has sparked ethical concerns.

According to Politico, Musk had “made it known that he wanted Ramaswamy out of DOGE in recent days.” The tension between them reportedly stemmed from disagreements over the tech industry’s reliance on foreign-born workers.

Driving the news

Back in November, Musk and Ramaswamy were tapped by Trump to lead the Department of Government Efficiency.

Despite its official-sounding name, the department operates outside the formal government structure. In a statement, Trump explained that Musk and Ramaswamy will work alongside the Office of Management and Budget, providing "advice and guidance" to drive sweeping structural reforms.

The initiative, Trump said, focuses on dismantling bureaucratic red tape, cutting excessive regulations, eliminating wasteful spending, and restructuring federal agencies.

Elon Musk and former Republican presidential candidate Vivek Ramaswamy have been tapped by Donald #Trump to lead a newly formed initiative called the Department of Government Efficiency. Despite its official-sounding name, the department will operate outside the formal government… pic.twitter.com/yxkXwNzeit

— Al Mayadeen English (@MayadeenEnglish) November 13, 2024

The big picture

Since Trump returned to office on January 20, the White House has taken steps to dismantle DEI programs across federal agencies. On his first day back, Trump signed executive orders reversing protections for transgender individuals and eliminating DEI initiatives, declaring that his administration was putting an end to efforts to “socially engineer race and gender into every aspect of public and private life.”

Last week, Trump also signed an executive order banning “radical gender ideology” in the US Army, emphasizing that service members must meet physical and mental fitness standards for duty.

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