What DOGE is Doing Now
Musk’s DOGE office is testing legal limits to cut staff and spending.

To help you understand what's going on in politics and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
There’s still lots of uncertainty about DOGE — the Department of Government Efficiency. The new office in the Trump White House has tried to “move fast and break things” to improve the federal government, in many cases using legally questionable methods. But a concerted agenda is slowly emerging.
So far, DOGE has dismantled federal agencies, most notably USAID — United States Agency for International Development — now in a state of limbo. It’s also laid off thousands of federal workers as a prelude to an even larger reduction-in-force effort that is now under way at various federal agencies.
Legal setbacks
Both efforts have encountered legal setbacks, including a ruling by the conservative Supreme Court requiring the Trump administration to disburse money for already completed foreign aid work. Another judge ordered DOGE to halt further actions against USAID, though the agency can’t resume its work. A lower court says the White House must reinstate 30,000 workers who were fired because of their probationary status.
An expansion of executive power is at stake. The Trump administration seems intent on testing its legal limits, hoping for favorable court rulings that will increase its ability to fire federal workers, impound congressionally appropriated funds and more.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Reduction-in-force initiative
In the meantime, expect DOGE to try doing more things by the book. This includes implementing an even bigger reduction-in-force initiative across several agencies. The Department of Education is in the process of cutting 50% of its staff (roughly 1,900 people) via both layoffs and voluntary retirement. The Department of Veterans Affairs aims to return to its 2019 employment levels (400,000 employees) by shedding around 80,000 jobs. The Department of Defense wants to lose at least 55,000 of its roughly 780,000-strong civilian workforce. The Social Security Administration will look to cut 7,000 of its 57,000 employees.
But note that the traditional RIF process can take months to complete and comes with numerous requirements that open the door to more legal challenges.
DOGE also wants to fast-track efforts to shrink Uncle Sam’s office footprint, terminating hundreds of leases, some of which will expire as soon as this summer. Even here, projected savings may prove short-lived. Some leases will be renegotiated at the urging of agencies that were generally not consulted about the changes.
Slow progress and confusion
The slow pace of progress has proved frustrating for President Trump, whose hunger for quick victories has been stymied by political and legal realities, including fears that the reduction in manpower will hamper government services. So far, DOGE’s actions have mostly sown confusion in Washington. That in itself could help if it discourages people from seeking federal jobs.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Read more
- Social Security Is DOGE's New Target: What You Need to Know
- With DOGE Making Cuts at National Parks, Can You Still Use Your Senior Pass?
- DOGE Gains More Grip on IRS Amid Leadership Reshuffle
- Donald Trump Tests His Limits
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Tips for Expat Retirees, From Expat Retirees
You may enjoy a lower cost of living by moving abroad, but it requires careful planning.
-
Why Investing Abroad Could Pay Off
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Hiring a Financial Adviser: 10 Questions to Ask
When hiring a financial adviser, ask these 10 questions to weed out the duds and find the right person to manage your nest egg. After all, you're the boss.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade Talks
Despite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Ask the Editor, June 27: Tax Questions on Disaster Losses, IRAs
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on paper checks, hurricane losses, IRAs and timeshares.
-
The Bull Case for the Second Half of 2025
This strategist sees a volatile market segueing to a strong close this year.
-
No Social Security Tax Cuts in Trump’s 'Big Bill'? What Retirees Need to Know
Tax Policy Eliminating taxes on Social Security benefits is missing from President Trump’s proposed tax overhaul. Here’s why and what an alternative offering could mean for retirement taxes.
-
What to Do and What Not to Do When Markets Get Turbulent
Follow these tips and strategies to help you navigate investing turbulence.