Elon musk's cost-cut mission sees record $603b federal spend
Elon Musk, leading the Department of Government Efficiency (DOGE), was tasked with reducing U.S. federal spending. Despite plans for cuts, spending rose to a record $603 billion, according to the news service The Financial Times.
Appointed by Donald Trump to decrease public spending, Elon Musk is facing a challenging task. Even with canceled contracts and layoffs, U.S. federal spending increased to $603 billion in February, marking a record high as reported by The FT. This figure is $40 billion more than during the same period last year.
The "Financial Times" reports that savings have been negligible, as increased spending on healthcare and social insurance has offset major cuts. The publication adds that most federal spending is allocated to social insurance, healthcare, and defense, making significant savings difficult to achieve.
DOGE has already reduced funding for public programs and is laying off workers en masse. Key departments, including the Department of Defense, Department of Energy, Environmental Protection Agency, and General Services Administration, which controls federal IT systems, are under scrutiny.
Massive wave of layoffs in the USA
American employers announced the largest wave of layoffs since the beginning of the pandemic in February. Over the course of the month, more than 172,000 job cuts were announced, marking a 103% year-over-year increase. The biggest cuts affected the government sector as a result of actions by Donald Trump's administration, Bloomberg recently reported.
The crisis hasn't just impacted the government sector; the retail and technology industries are also facing job cuts. Several large companies, including HP Inc. and Walt Disney Co., have announced layoff plans.
