After a year of federal workforce cuts, Elon Musk's DOGE shuts down

The Department of Government Efficiency (DOGE), the cost-cutting initiative led by Elon Musk during the early months of President Donald Trump's second administration, has officially reached the end of its mandate.

Created through an executive order signed by President Trump on January 20, 2025, DOGE was established with a fixed termination date of July 4, 2026. Its mission was to improve government efficiency by reducing spending, eliminating waste and restructuring federal agencies.

During its tenure, the initiative became one of the most significant drivers of workforce changes across the US federal government.

Workforce reductions defined DOGE's tenure

According to the Office of Management and Budget (OMB), more than 260,000 federal employees left government service during 2025 under the administration's cost-cutting measures.

The departures included several workforce actions:

• Reductions in force
• Early retirements
• Deferred resignation programmes
• A federal hiring freeze

DOGE also pursued broad restructuring efforts across multiple federal agencies, including the United States Agency for International Development (USAID), with the stated objective of eliminating fraud, waste and abuse.

Elon Musk initially set a target of reducing $2 trillion in federal spending. According to DOGE's own figures, the initiative ultimately claimed approximately $215 billion in savings through workforce reductions, cancelled contracts, terminated leases, asset sales and rescinded grants.

However, according to reporting by the Associated Press, the Government Accountability Office (GAO) and other independent organisations have said the administration's reported savings could not be fully verified, and several estimates remain disputed.

Agency's future remained uncertain before mandate ended

Although July 4 marked DOGE's official expiration date, its operational structure had already begun to change.

According to Reuters, the central DOGE organisation had effectively been disbanded months earlier, with some former officials moving into permanent positions across federal agencies. The US DOGE Service, which housed the temporary organisation, increasingly shifted its focus from cost-cutting towards citizen services initiatives similar to those previously handled by the US Digital Service.

Separately, Federal News Network reported that OMB Director Russell Vought told lawmakers there are no plans to publish a final report documenting DOGE's achievements or overall impact.

Instead, Vought said the initiative's outcomes are reflected across agency budgets, appropriations and spending reductions implemented during the administration.

Legal challenges continue after closure

DOGE's formal shutdown does not end the legal scrutiny surrounding its work.

According to the Associated Press, more than a dozen lawsuits remain pending over actions linked to the initiative, including:

• Cancelled federal grants
• Workforce reductions and buyout programmes
• Access to sensitive Treasury Department and Social Security Administration data
• Closure of federally funded programmes

The litigation is expected to shape how courts assess the legality of several decisions made during the agency's operation.

Federal hiring resumes in some agencies

As DOGE concludes its mandate, several federal agencies have begun rebuilding their workforce.

According to reports cited by The Economic Times, more than 104,000 federal positions were advertised during the first five months of 2026. Some agencies have also reinstated employees after determining staffing reductions affected critical operations.

During a House Appropriations subcommittee hearing, lawmakers also questioned the long-term consequences of rapid workforce reductions. Some agencies, including the Nuclear Regulatory Commission, were cited as examples where positions had to be restored following earlier cuts, according to Federal News Network.

A debated legacy

DOGE leaves behind one of the most extensive government restructuring exercises undertaken in recent years. Supporters view the initiative as an ambitious effort to reduce spending and streamline government operations. Critics continue to question both its reported financial savings and the impact of its workforce reductions.

While the organisation has now reached the end of its mandate, its legacy is likely to be defined by ongoing court proceedings, renewed hiring across federal agencies and continued debate over the future of government efficiency initiatives.