Today : Jun 25, 2025
Politics
25 June 2025

Trump’s Government Efficiency Cuts Reshape Washington D.C.

Department of Government Efficiency’s reforms spark debate over savings, workforce reductions, and impacts on federal services and housing market

On June 24, 2025, the House Committee on Oversight and Government Reform’s Subcommittee on Delivering on Government Efficiency convened a hearing titled “Locking in the DOGE Cuts: Ending Waste, Fraud, and Abuse for Good.” The hearing spotlighted the Department of Government Efficiency (DOGE), an initiative launched under the Trump administration aimed at slashing federal waste, fraud, and bureaucratic bloat. While proponents hailed the billions saved and the promise of streamlined government, critics painted a far less rosy picture, warning of service disruptions and political motivations behind the cuts.

DOGE, which is not a Cabinet-level department but a contracted government organization under the U.S. DOGE Service, has aggressively targeted inefficiencies across federal agencies. According to Dan Lips, Senior Fellow at the Foundation for American Innovation, DOGE has identified between $100 billion and $180 billion in savings and has cut down the federal code by more than 1.7 million words. These efforts include reducing regulatory burdens and shrinking the federal workforce, with estimates suggesting that a 10% workforce reduction could save between $559 billion and $608 billion over the next decade, as testified by Matthew Dickerson, Director of Budget Policy at the Economic Policy Innovation Center.

Subcommittee Chairwoman Marjorie Taylor Greene (R-Ga.) emphasized the need to codify these reforms through legislation. She remarked, “We need to lock in DOGE savings for taxpayers. And we should also be thinking about locking in the DOGE process that has produced those savings.” Greene called the federal government an “overgrown, out-of-control animal” and urged Congress to pass laws to streamline agencies, eliminate redundant programs, and grant the president authority to remove underperforming bureaucrats. The Trump administration’s budget proposal submitted in May 2025 aims to reduce non-discretionary spending by $163 billion next year, potentially saving $2 trillion over the coming decade.

However, the hearing was far from a one-sided celebration. Democrats and some witnesses challenged DOGE’s effectiveness and motives. Rep. Jasmine Crockett (D-Texas) accused the initiative of weakening federal institutions for personal gain, calling claims of cost reduction “absolute BS.” The top Democrat on the subcommittee, Rep. Melanie Stansbury (D-N.M.), criticized DOGE for firing many inspectors general — watchdogs tasked with fighting waste and fraud — and for causing a “brain drain” in federal agencies. She stated, “What we've seen from DOGE is the exact opposite” of bipartisan government modernization efforts.

One particularly contentious exchange involved Subcommittee Chairwoman Greene questioning Emily DiVito, Senior Advisor for Economic Policy at the Groundwork Collaborative, about federal funding for gender transition surgeries for children. Greene pressed DiVito on whether she supported taxpayer funding for such procedures, framing them as “genital mutilation.” DiVito deflected, emphasizing government research’s role in innovation but did not directly answer the yes-or-no question. This exchange exemplified the heated political and cultural battles intertwined with DOGE’s broader agenda.

The hearing also delved into the practical consequences of the federal workforce cuts orchestrated by DOGE. The Trump administration’s February 2025 buyout program offered up to eight months of salary and benefits to encourage voluntary resignations, resulting in approximately 75,000 federal employees accepting the offer. This downsizing has rippled through the Washington D.C. metro housing market. According to a Bright MLS survey, nearly 40% of local real estate agents reported that clients’ decisions to buy or sell homes in May 2025 were directly linked to layoffs or buyout offers.

Lisa Sturtevant, Chief Economist at Bright MLS, noted, “This spring marked a turning point for the Washington housing market. Federal buyouts provided older, often higher-income homeowners a chance to cash out and relocate.” The influx of homes for sale has driven a 25.1% year-over-year jump in active listings in the D.C. area during the four weeks ending April 27, 2025, the highest since 2022. New listings also rose 11.4% year-over-year, nearly double the national gain. The trend has put downward pressure on prices and is reshaping homeownership patterns, as many retirees with paid-off homes take buyout packages and move away.

Moreover, DOGE’s cuts have hit specific agencies hard. The Consumer Financial Protection Bureau (CFPB), established after the 2007-2008 financial crisis to protect consumers, has seen about 1,500 employees cut, many fired or placed on administrative leave. The Social Security Administration (SSA) has also faced challenges, including a reversed anti-fraud policy that had slowed retirement processing after finding essentially no fraud, a policy initially spurred by DOGE and White House claims of rampant fraud. These disruptions have raised concerns about long-term service quality, with Rep. Suhas Subramanyam (D-Va.) warning that DOGE has led to “poor services” and a costly “brain drain.”

The commercial real estate sector is also feeling the impact. House Buyers of America reported that shrinking budgets and workforce reductions have increased vacancies and lowered returns on investment for properties reliant on government tenants or infrastructure. FOX News reported that DOGE leadership is considering selling off major D.C. area federal properties, including the Departments of Energy and Housing & Urban Development headquarters, as part of efforts to reduce the national debt, which currently stands at $36 trillion. Taxpayers spend approximately $81 million annually maintaining underutilized federal offices, according to a Biden-era Office of Management and Budget report.

Adding to the turmoil, DOGE’s staff has seen notable departures. Edward Coristine, a 19-year-old staffer nicknamed “Big Balls,” left the federal government on June 24, 2025. His youth and controversial past, including a prior firing from a cybersecurity internship for leaking company secrets, made him a symbol for critics who questioned DOGE’s recklessness. Coristine’s departure follows that of tech billionaire Elon Musk, who stepped back from DOGE in late May 2025 and has since engaged in a public feud with President Trump. Other departures include Musk’s chief aide Steve Davis and Amanda Scales from Musk’s AI startup, xAI.

Republicans again blocked a Democratic attempt to subpoena Elon Musk during the hearing, underscoring the partisan divisions surrounding DOGE. While Republicans push for a $9 billion rescission package to cement DOGE priorities and seek $45 million in funding for the initiative next year, Democrats remain skeptical of its efficacy and motives.

Despite the contentious debate, it’s clear that DOGE has left a significant mark on federal operations and the broader Washington region. Whether the reforms will be permanently codified and whether they will deliver sustained savings without undermining essential government services remains an open question. As the federal government continues to navigate these changes, taxpayers and policymakers alike will be watching closely to see if DOGE’s promise of efficiency translates into lasting benefits.