DOGE Unmasking Hidden Waste in Federal Spending: Beyond USAID

When it comes to government spending, USAID is often the poster child for waste. Yet, while USAID receives only about 0.2% of the federal budget, far larger inefficiencies, fraud, and mismanagement are spread across other areas. In this discussion, we peel back the layers to reveal how billions—and in some cases, trillions—of dollars are misallocated across defense, healthcare, Social Security, education, and even nonprofit funding.

1. Misplaced Focus on USAID

Despite its frequent criticism, USAID’s overall expenditure represents a very small slice of the federal budget. Critics targeting USAID overlook the systemic issues embedded within other major spending programs. For example, while USAID might be singled out for “waste,” the inefficiencies in defense spending, improper payments in Medicare and Medicaid, and the bloated costs in Social Security have a far larger impact on the nation’s finances.

2. Federal Budget Breakdown

Consider the following table summarizing key budget categories based on estimates from recent transcripts and reports:

Table 1: Federal Budget Breakdown (Approximate Percentages)

Category	Estimated Percentage of Budget	Notes
Health Insurance	24%	Includes Medicare, Medicaid, and related healthcare funds
Social Security	21%	Major entitlement program
Defense	33%	Encompasses both military spending and related contracts
Interest on Debt	33%	Servicing the national debt
Veterans’ Benefits	8%	Support services for veterans
Economic Security	7%	Welfare and related social safety programs
Education	5%	Federal spending on K–12 and higher education

These figures highlight that even if USAID’s share is trimmed, the overall inefficiencies in the federal budget remain vast.

3. The Hidden Toll of Improper Payments

Improper payments—those disbursed in error or due to fraud and mismanagement—add up to staggering amounts. For example, recent estimates suggest the following:

Table 2: Improper Payments in Selected Federal Programs (FY Estimates)

Program	Estimated Improper Payments (in billions)	Source/Notes
Medicare	~$51	GAO estimates and transcript data
Medicaid	~$50.3	GAO estimates
Federal Pandemic Unemployment Assistance	~$43	GAO estimates
Earned Income Tax Credit	~$22	GAO estimates
PPP Loan Forgiveness	~$19	GAO estimates
Other Programs	~$50	GAO estimates
Total	~$235–$281	Cumulative estimates

These improper payments represent money that never reaches its intended purpose—funds that could support critical services like education, healthcare, and infrastructure.

4. DOGE’s Cost-Cutting Initiatives

In contrast to the debate over USAID, the Trump administration’s newly created Department of Government Efficiency (DOGE) has already begun targeting what it calls “wasteful spending” across the federal government. Recent reports from major outlets highlight DOGE’s aggressive cost-cutting efforts:

Table 3: DOGE’s Initial Cost-Cutting Actions

Initiative	Reported Savings	Details/Examples	External News URL
Terminating Diversity Programs	>$1 billion	Over half of DOGE’s early savings comes from canceling DEI-related expenses	WSJ wsj.com
Digital Modernization Contracts	$30 million	Canceled contracts aimed at digital modernization projects	WSJ wsj.com
Unused Office Leases	$4 million	Savings from terminating leases for underused government space	WSJ wsj.com
Overall Spending Cuts Identified	>$1 billion (in 3 weeks)	DOGE reported cutting more than $1 billion in the first three weeks	WSJ wsj.com
Projected Future Savings	$2 trillion	DOGE aims to identify a total of $2 trillion in cost savings	NY Post nypost.com

These aggressive measures have sparked debates about legality and effectiveness, with critics arguing that even if DOGE identifies significant savings, they represent only a fraction of overall federal expenditures.

5. The Broader Implications and Call for Reform

The article underscores that while USAID’s spending is often highlighted in political debates, the more critical fiscal challenges lie in deeply embedded inefficiencies across the federal government. These include:

Defense Spending Issues:
Problems such as overbuying, mismanaged inventory, and unaccountable contracts continue to drain billions of dollars.
Healthcare Fraud and Waste:
Fraudulent claims and administrative errors in Medicare and Medicaid not only waste funds but also impact care for millions.
Nonprofit Funding and Lack of Oversight:
A significant slice of government money flows to nonprofits, yet oversight in this area is often inadequate.
Systemic Accountability Gaps:
The need for comprehensive reform—including stricter audit protocols, enhanced technological oversight, and independent watchdogs—is urgent.

Conclusion

Although USAID is frequently used as a symbol of waste, its spending is only a small part of the overall picture. The real challenge lies in addressing systemic inefficiencies that span the federal budget—from defense and healthcare to Social Security and beyond. The establishment of DOGE and its initial cost-cutting measures illustrate a drive for reform, yet critics warn that these actions target only a fraction of the massive inefficiencies that drive the national debt.

For further reading on DOGE’s activities and federal cost cutting efforts, see:

By refocusing the debate on the true drivers of inefficiency and waste, there is an opportunity to implement reforms that could significantly improve government accountability and reduce the long-term fiscal burden on taxpayers.