What Elon Musk Didn’t Budget For: Firing Workers Costs Money, Too

President Trump and Elon Musk promised taxpayers big savings, maybe even a “DOGE dividend” check in their mailboxes, when the Department of Government Efficiency was let loose on the federal government. Now, as he prepares to step back from his presidential assignment to cut bureaucratic fat, Mr. Musk has said without providing details that DOGE is likely to save taxpayers only $150 billion.

That is about 15 percent of the $1 trillion he pledged to save, less than 8 percent of the $2 trillion in savings he had originally promised and a fraction of the nearly $7 trillion the federal government spent in the 2024 fiscal year.

The errors and obfuscations underlying DOGE’s claims of savings are well documented. Less known are the costs Mr. Musk incurred by taking what Mr. Trump called a “hatchet” to government and the resulting firings, agency lockouts and building seizures that mostly wound up in court.

The Partnership for Public Service, a nonprofit organization that studies the federal work force, has used budget figures to produce a rough estimate that firings, re-hirings, lost productivity and paid leave of thousands of workers will cost upward of $135 billion this fiscal year. At the Internal Revenue Service, a DOGE-driven exodus of 22,000 employees would cost about $8.5 billion in revenue in 2026 alone, according to figures from the Budget Lab at Yale University. The total number of departures is expected to be as many as 32,000.

Neither of these estimates includes the cost to taxpayers of defending DOGE’s moves in court. Of about 200 lawsuits and appeals related to Mr. Trump’s agenda, at least 30 implicate the department.

“Not only is Musk vastly overinflating the money he has saved, he is not accounting for the exponentially larger waste that he is creating,” said Max Stier, the chief executive of the Partnership for Public Service. “He’s inflicted these costs on the American people, who will pay them for many years to come.”