WASHINGTON — During a cabinet meeting on Friday, Elon Musk, head of the Department of Government Efficiency (DOGE), announced an anticipated $150 billion in savings for fiscal year 2026 by tackling waste and fraud in federal spending. The meeting, held in the wake of President Trump’s recent 104% tariffs on Chinese imports, highlighted the administration’s push to streamline government operations amid economic turbulence.
Musk, praised by Trump for his leadership, credited the cabinet and DOGE team for identifying inefficiencies. “We’re finding absurd things, like people getting unemployment insurance who haven’t been born yet,” Musk said, calling it “just crazy.” He described the federal government as a “target-rich environment” for waste, joking, “Just go in any direction, and you’ll find it.” The $150 billion in projected savings, he argued, would lead to better services for Americans while ensuring tax dollars are spent “sensibly and fairly.”
Trump lauded Musk’s team, calling them “fantastic” and “computer-savvy,” and expressed hope they’d stay on long-term. “They’re finding things nobody would have thought of,” Trump said, emphasizing their role in uncovering inefficiencies. The meeting, broadcast live on Fox News, showed market indices reflecting unease—Dow at 38,791.41, NASDAQ at 16,088.41, and S&P 500 at 5,171.18—likely due to the tariffs’ fallout, which has already hit businesses hard, as seen in a toy importer’s costs soaring from $26,000 to $346,000 annually.
Musk’s announcement ties into broader administration efforts to prioritize domestic spending, as evidenced by Senator Mike Lee’s proposal to redirect $2 billion from USAID to veterans’ facilities and the House’s passage of the SAVE Act to tighten voter registration. The $150 billion savings could provide a fiscal cushion as the U.S. navigates trade tensions, including China’s retaliatory 84% tariffs and Italian Prime Minister Giorgia Meloni’s upcoming visit to negotiate a trade deal.
However, critics question the feasibility of Musk’s claims. Identifying $150 billion in waste requires significant oversight, and past efforts to cut fraud have often fallen short. Some worry that aggressive cuts could harm essential programs, especially as economic pressures mount. Still, Musk’s focus on efficiency resonates with Trump’s “America First” agenda, aiming to redirect resources to domestic priorities.
As the administration grapples with global trade challenges and domestic backlash, Musk’s promise of $150 billion in savings offers a glimmer of fiscal relief. Whether DOGE can deliver without compromising services remains to be seen, but for now, the cabinet meeting has set an ambitious tone for FY26.
