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Dogecoin surges 10% as Elon Musk names proposed government department DOGE
DOGE is setting its sights on larger government programs, with a particular focus on healthcare and defense spending

However, this is merely a small step toward Musk’s ambitious goal of slashing $2 trillion from government expenditures. As DOGE sets its sights on larger programs, its next moves could significantly reshape federal spending priorities, particularly in healthcare, defense, and education.

The First Wave of Cuts: A Strategic Approach

DOGE has quickly become one of the most controversial and powerful entities in U.S. governance. With access to confidential financial data across multiple agencies, the department has focused on identifying wasteful spending, redundancy, and inefficiencies.

So far, its approach has concentrated on:

• Diversity, Equity, and Inclusion (DEI) programs, which accounted for over 50% of the initial $1 billion cuts.

• Digital modernization projects, where DOGE eliminated $30 million in contracts.

• Unused office spaces, cutting at least $4 million in government lease agreements.

These efforts were just the beginning, targeting low-hanging fruit before DOGE moves on to higher-cost and politically sensitive programs.

Healthcare Programs Under Fire

The U.S. government is projected to spend $7 trillion in the fiscal year ending September 30, 2025. A major portion of this budget—over $2.3 trillion—goes toward healthcare through Medicare ($910 billion), Medicaid and the Children’s Health Insurance Program ($812 billion), and Social Security ($1.6 trillion). Given the sheer scale of these programs, DOGE is now investigating inefficiencies, improper payments, and potential savings in healthcare spending.

One of the most concerning statistics comes from the Government Accountability Office (GAO), which estimated that $100 billion in improper payments were made under Medicare and Medicaid in 2023. DOGE has already gained access to federal payment systems and is working to identify fraudulent claims, excessive administrative costs, and areas for restructuring.

Sources indicate that DOGE is also involved in cutting funding for the National Institutes of Health (NIH), with an expected $4 billion in savings per year. While some applaud these efforts as necessary to curb government waste, others warn that reductions in healthcare and research funding could have unintended consequences.

Pentagon Spending in DOGE’s Crosshairs

Beyond healthcare, defense spending is another massive target. The Pentagon’s budget nears $1 trillion annually, and inefficiencies in military procurement and operations have long been criticized.

One major area of concern is the U.S. Navy’s shipbuilding process, which has been plagued by cost overruns, delays, and mismanagement. DOGE is particularly interested in investigating inefficiencies in the Virginia-class submarine program and Ford-class aircraft carriers, both of which have faced scrutiny for massive budget excesses.

National Security Advisor Mike Waltz recently suggested that the military procurement system is "bloated and outdated" and needs restructuring. In an interview on NBC’s Meet the Press, he emphasized that "Pentagon spending is full of unnecessary costs, outdated processes, and overpriced contracts."

However, DOGE’s push to reform military spending has already sparked resistance from Democrats and defense contractors, who argue that the organization lacks the expertise needed to oversee complex defense operations.

Education Department Under Review

In addition to healthcare and defense, Musk has also set his sights on the Department of Education (DoE). Speaking with Fox News on February 9, former President Donald Trump confirmed that he plans to dismantle the department entirely, citing inefficiency and poor outcomes.

According to Trump:

"We spend more per student than any other country, yet our education rankings are terrible."

DOGE is expected to review and recommend cuts in federal education grants, student loan programs, and administrative costs, with some speculating that billions in savings could be found by reducing the size and scope of the department.

Legal and Political Challenges

Despite DOGE’s aggressive cost-cutting agenda, legal experts warn that many of its actions may be unconstitutional. Some of the spending DOGE is attempting to claw back was approved by Congress and signed into law by President Joe Biden. Several lawmakers have argued that DOGE’s unilateral actions may be illegal, setting the stage for potential court battles.

Elon Musk and Russell Vought, the former director of the Office of Management and Budget (OMB) and a key architect of Trump’s fiscal policies, have signaled their willingness to challenge these legal obstacles in court.

The Future of DOGE: What Comes Next?

While Musk and DOGE have already made a significant impact, their long-term success will depend on their ability to navigate legal, political, and bureaucratic hurdles. With healthcare, defense, and education now in their crosshairs, the next phase of cost-cutting will be even more contentious.

If Musk succeeds in eliminating wasteful spending and restructuring federal operations, it could mark one of the most dramatic shifts in U.S. government spending in history. However, if DOGE’s efforts face significant resistance or legal pushback, its impact may be limited or overturned by future administrations.

One thing is clear: Elon Musk and DOGE are not slowing down—and their next moves could reshape the federal government as we know it.

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