Defense Department Announces savings of $10.4 billion from Use of DOGE, major portion attributed to Consultants and Service Providers
The Department of the Air Force has announced significant savings under President Donald Trump's Department of Government Efficiency (DOGE) initiative, claiming a total of over $10.4 billion. While a detailed breakdown of these savings is not yet available, key components include substantial cost savings or avoidance on contracts and reductions in the civilian workforce.
The savings appear to be derived from cancelling contracts or planned contract pools for consultants and cutting civilian jobs. The Air Force saved an additional $3.75 billion by terminating a second AFSTS contract vehicle before it was awarded. Notably, the Department of the Air Force saved an additional $104 million in AFSTS contracts for other consultants.
The Air Force also made savings of $19.4 million in immediate savings and long-term cost avoidance by rightsizing IT service contract software licenses. Moreover, the cancellation of the Mayhem contract for the Air Force Research Laboratory saved the Air Force $309.9 million.
The Space Force is expected to reduce "almost 14%" of its civilian workforce, mirroring the Air Force's efforts. The Air Force's 2026 budget request notes $1.7 billion in savings from civilian workforce optimization. Additionally, the Air Force saved $368.1 million on reduced travel expenses and $1 billion in savings from cutting back on Advisory and Assistance Services.
The Air Force's savings also include approximately $341 million from canceled climate initiatives and $15 million from canceled diversity, equity, and inclusion programs. USASpending.gov lists $353 million in Pentagon spending on AFSTS, with $12.17 million spent in fiscal 2024.
The Air Force has been working with DOGE for six months to cut waste and reduce contract spending. The Department of the Air Force saved an additional $832 million by canceling a task order for Deloitte under the first AFSTS contract.
In summary, while the Air Force has not released a precise line-item accounting of the full $10.4 billion savings, the public information highlights major contributions from contract and consultant reductions and civilian personnel cuts, with other smaller savings in travel, climate-related, security assistance, and DEI programs also contributing. The Air Force's efforts under the DOGE initiative are expected to continue, aiming to streamline operations and reduce costs further.
[1] Department of the Air Force, Press Release, [Date], URL [2] Air Force 2026 Budget Request, URL
- The Department of the Air Force saved $3.75 billion by terminating a second AFSTS contract vehicle before it was awarded, and an additional $104 million in AFSTS contracts for other consultants.
- The Air Force saved $19.4 million in immediate savings and long-term cost avoidance by rightsizing IT service contract software licenses.
- The Space Force is expected to reduce "almost 14%" of its civilian workforce, mirroring the Air Force's efforts, and the Air Force's 2026 budget request notes $1.7 billion in savings from civilian workforce optimization.
- The Air Force's savings also include approximately $341 million from canceled climate initiatives and $15 million from canceled diversity, equity, and inclusion programs.
