Trump Administration Slashes $1.7 Billion in ‘Wasteful’ Contracts Under Government Efficiency Overhaul

Washington, D.C. – In a sweeping effort to curb what it deems as “wasteful spending,” the Department of Government Efficiency (DOGE), led by Elon Musk, has terminated 239 federal contracts with a total ceiling value of $1.7 billion, the agency announced Thursday. The move, which officials say will save taxpayers $400 million, marks a significant step in the Trump administration’s ongoing push for fiscal responsibility and streamlined governance.

Among the canceled contracts is an $8.5 million consulting agreement aimed at “fiscal stewardship to improve management and program operations” and “reskilling the workforce” to enhance government efficiency. In a statement, DOGE officials criticized such contracts as unnecessary bureaucratic expenditures that failed to deliver meaningful results.

Targeting Identity-Based Grants

The terminations include several controversial federal grants, particularly those funding LGBTQ+ and identity-focused research. The National Institutes of Health (NIH) has scrapped multiple grants, including:

• A $699,000 study on cannabis use among “sexual minority gender diverse individuals.”
• A $620,000 grant for an “LGB+ inclusive teen pregnancy prevention program for transgender boys.”
• A $225,000 University of Colorado research project examining the effects of hormones on headaches in transmasculine adolescents.

Agriculture Secretary Brooke Rollins also announced the termination of a $379,000 U.S. Department of Agriculture (USDA) grant designed to educate queer, trans, and BIPOC urban farmers in the San Francisco Bay Area about “food justice” and “values-aligned markets.”

“By stopping this wasteful spending here at USDA, we are ending identity politics and refocusing our agency on its core mission: supporting American farming, ranching, and forestry,” Rollins declared in a video statement.

A Broader Crackdown on Government Spending

The administration’s push for efficiency has extended beyond these contract terminations. Earlier this week, DOGE announced the cancellation of 200,000 federal government credit cards as part of an initiative to eliminate unchecked expenditures and enforce stricter oversight.

“We’re not just talking about cutting costs—we’re talking about fundamentally restructuring how the federal government operates,” Vice President JD Vance said during a Thursday interview. “This is about ensuring that taxpayer dollars are spent wisely and effectively, not on ideological pet projects that do little to benefit everyday Americans.”

Democratic Backlash and Protests

The aggressive cuts have sparked outrage among some Democratic lawmakers and activists. On Wednesday, House Democrats held a press conference condemning DOGE’s actions, with one representative reportedly launching into a fiery rant against Musk and the administration’s budget-slashing policies.

Protesters also gathered outside DOGE headquarters in Washington, D.C., calling for the reinstatement of various programs. Some activists argued that cutting grants for marginalized communities and scientific research would have long-term consequences for public health and social equity.

Trump and Musk’s Fiscal Vision

President Trump and Elon Musk have both championed DOGE’s mission to slash bureaucratic waste and rein in government overreach. Under their leadership, the agency has identified billions in federal expenditures deemed non-essential or ideologically driven.

“The American people deserve a government that works for them—not one that wastes their hard-earned money on fringe projects,” Musk said in a statement. “We’re cutting the fat and focusing on what really matters: national security, economic growth, and American innovation.”

As the Trump administration continues its second term, DOGE is expected to expand its scrutiny of federal contracts, potentially identifying further areas for cost reduction and government realignment. Whether these sweeping changes will translate into long-term fiscal improvements or ignite further political tensions remains to be seen.