What's Happening?
The Department of Government Efficiency (DOGE), established during the Trump administration, has achieved a significant reduction in the federal workforce, cutting employment by 9% in less than 10 months. This reduction, amounting to 271,000 jobs, marks
the largest peacetime workforce reduction since the demobilizations following World War II and the Korean War. Despite these cuts, federal spending has increased, with $7.6 trillion spent in the first 11 months of 2025, surpassing previous years. The Cato Institute attributes the high spending to entitlement programs, which remain outside DOGE's control and require congressional action for cuts.
Why It's Important?
The reduction in federal employment is a notable achievement for DOGE, reflecting a significant shift in the size of the federal government. However, the increase in overall federal spending highlights the challenges in managing entitlement programs, which constitute a large portion of federal expenditures. This situation underscores the complexity of federal budget management and the limitations of administrative actions without legislative support. The workforce reduction could lead to increased efficiency in government operations, but the rising spending may continue to strain federal resources and impact fiscal policy.
What's Next?
Future actions may involve legislative efforts to address entitlement spending, which remains a significant driver of federal budget increases. The continuation of workforce reductions could further streamline government operations, but balancing these cuts with the need for effective public services will be crucial. Stakeholders, including policymakers and public sector unions, may engage in discussions on the implications of these changes for federal employment and service delivery.
