Elon Musk has been a constant in the headlines while heading up the Department of Government Efficiency (DOGE) since President Trump’s return to office. Musk famously said DOGE would cut up to $2 trillion in government waste. Though, DOGE’s official site only shows $170 billion in savings. Unfortunately, those savings also come at a cost to Americans’ finances, thanks to costs related to re-hiring essential workers and more, according to Max Stier, president and CEO of the Partnership for Public Service, who spoke to CBS MoneyWatch.

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Here are four ways DOGE cuts will hit Americans to the tune of $135 billion.

The IRS has long been in the crosshairs of Musk and Trump. DOGE has already cut 11% of the workforce — per Treasury Inspector General for Tax Administration (TIGTA) — particularly auditors, through multiple reduction-in-force (RIF) measures. This seemingly has minimal impact on Americans. However, lost revenue could directly result in the need for tax increases.

The Yale Budget Lab said cutting the agency’s staff so drastically would lead to much less tax revenue and slower technological progress, costing the government a lot of money over a decade. That lost income will need to be made up somehow, likely through eventual tax hikes.

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Biomedical research wasn’t immune to DOGE’s chainsaw on spending. The National Institutes of Health (NIH) saw reduced staff and funding due to DOGE. The agency oversees $48 billion in annual spending, researching various diseases and conditions, according to its website.

“By early April, the NIH had experienced $2.4 billion in canceled and frozen grants and contracts, had fired 1,200 employees and induced retirement and resignations from a yet unspecified number. The administration’s 2026 budget proposes a 37% further cut to the agency,” said Richard Frank and Sherry Glied of the Brookings Institute.

The cuts may seem insignificant in light of the total NIH budget. Less spending at NIH could result in slower discovery of affordable treatment options. It could also limit access to free or low-cost therapies to cure Americans and provide less support for families with medical conditions.

Key to DOGE’s efforts is reducing the federal workforce. This was accomplished through firings and buyout offers to employees. Roughly 150,000 employees have left the federal workforce already, according to the New York Times.

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