Doge savings of 160 billion will cost at least 135 billion to effectuate

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Elon Musk's Department of Government Efficiency, or DOGE, says it has saved $160 billion through its push to root out wasteful or fraudulent government spending. But that effort may also have come at a cost for taxpayers, with a new analysis from a nonpartisan research and advocacy group estimating that DOGE's actions will cost $135 billion this fiscal year.

The analysis seeks to tally the costs associated with putting tens of thousands of federal employees on paid leave, re-hiring mistakenly fired workers and lost productivity, according to the Partnership for Public Service (PSP), a nonpartisan nonprofit that focuses on the federal workforce.

PSP's estimate is based on the $270 billion in annual compensation costs for the federal workforce, calculating the impact of DOGE's actions, from paid leave to productivity hits. The $135 billion cost to taxpayers doesn't include the expense of defending multiple lawsuits challenging DOGE's actions, nor the impact of estimated lost tax collections due to staff cuts at the IRS.

DOGE has sought to slash federal spending by urging government workers to accept a deferred resignation plan, which allowed many employees to retain full pay and benefits through September without working.

Another 24,000 government employees who were fired as part of the reform effort have since been rehired after a court ruling.

Other agencies also have rehired some workers after mistakenly firing them, such as bird flu experts who were dismissed by the U.S. Department of Agriculture.