DOGE is on the rise, and no, we aren’t referring to the cryptocurrency or the iconic meme of a side-eyeing Shiba Inu dog.
You’ve probably seen references to DOGE come up in the news or on your social media feed (and for some of us, that’s one and the same). So, let’s answer the first question you may have: what exactly is DOGE?
The Department of Government Efficiency, aka DOGE, is a special task force that is set to identify ways to cut down on government spending during the Trump administration. The appointed leaders of DOGE, Elon Musk and Vivek Ramaswamy, have already begun meeting with lawmakers to discuss their plans. One goal they are pushing for: cutting $2 trillion in spending from the federal budget.
For context, the U.S. government spent $6.8 trillion in fiscal year 2024 (much wow!) A $2 trillion cut would mean shaving off nearly one-third of the current federal budget (also wow!).
You might be asking: What are we spending that $6.8 trillion on? (Hint: a whole lot of stuff.)
Basically, the federal budget is split into two categories: mandatory and discretionary spending. Each category covers different programs and services that are funded by the federal government. Some of these programs (mandatory) are required to be funded by law. Others (discretionary) are decided upon by Congress each year.
So let’s talk about the elephant-sized Shiba Inu in the room: What would it mean to cut $2 trillion from current government spending?
Typically, mandatory spending cuts are considered a “no-go” for lawmakers. This is largely because Social Security and Medicare, both of which are mandatory programs, provide benefits to one in five Americans.
However, even if DOGE suggests cuts to mandatory spending, reaching that $2 trillion mark would be equivalent to eliminating the entire Social Security program and then some.
In a more likely scenario, mandatory programs are off-limits and all eyes are on discretionary spending. Discretionary spending goes towards things like highway construction, pensions for federal and military employees, medical research, and grants to schools.
Remember, discretionary spending is only a quarter of the federal budget and, by its own, would not reach DOGE’s $2 trillion goal. If lawmakers are serious about reaching that benchmark, it’s inevitable that mandatory programs like Social Security, Medicare, and Medicaid will experience some kind of cut.
Before we jump to any conclusions, it’s important to understand that there is still a lot of uncertainty surrounding DOGE and its influence on policymaking. Despite its name, the Department of Government Efficiency is not an executive department and can’t actually make any decisions about spending on its own. If and when DOGE recommends cuts to lawmakers, any change to the federal budget would have to go through Congress and the President.
The key takeaway is that it’s not going to be easy to find $2 trillion to cut without Social Security and Medicare being on the table.
To learn more about the federal budget, check out this link:
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