The fired inspectors general seem to be a lot better at saving money than Elon Musk
President Donald Trump's swift and systematic ousting of 19 independent watchdogs, the inspectors general, across 18 federal agencies in his first week in office, has left a trail of financial savings that rival those promised by Tesla CEO Elon Musk's Department of Government Efficiency. A new report released by Democrats on the Senate Homeland Security and Governmental Affairs Committee reveals that the fired IGs had identified and recommended $175 billion in potential savings before being let go.
Musk, who was hired by Trump to lead his "Department of Government Efficiency," claimed he would save $2 trillion, which shrunk down to $1 trillion and then to $150 billion. However, after months of chaotic cost-cutting efforts, Musk's estimate has ticked up slightly to an estimated $170 billion, or 8.5% of his initial promise. In contrast, the Senate Democrats' report found that the IGs had identified and recommended a staggering $175 billion in potential savings through audits, investigations, and efficiency proposals.
But what's more striking is how Musk's efforts to cut costs have not only failed to meet but possibly underperformed compared to the personnel who were already in place. The Senate Democrats' report notes that the IGs had a track record of rooting out waste, with all 19 IGs in fiscal year 2024 having "over $71 billion in combined monetary impact" through their efficiency initiatives, audits, and investigations.
By contrast, Musk's savings estimates are not trustworthy, given his long history of exaggerating savings using incorrect calculations. For example, he double-counted canceled federal contracts, claimed savings over already canceled contracts, and failed to account for the added cost of revived contracts. When errors were identified by the media, they were simply deleted from his website.
Many of Musk's cuts have been so controversial and politically risky that Republican lawmakers have objected to codifying them into law. Furthermore, some watchdog estimates suggest that Musk's efforts might end up costing the federal government more than it saves, in part because of lost productivity, high costs of rehiring, and lost revenue collection capacities.
"So it's, like, it's not easy," Musk said when reflecting on his progress after 100 days. But the Senate Democrats' report paints a different picture, highlighting how Trump and Musk have tried to sideline effective tools for rooting out waste and good government. As Sen. Gary Peters, D-Mich., the ranking member of the committee that produced the report, said in a statement: "If the Trump Administration were serious about eliminating waste, it would rely on the proven track record of independent Inspectors General. Instead, President Trump's decision to fire them will not only undermine efforts to reduce waste — it sends a message of intimidation to anyone who wants to hold this administration accountable."