Trump’s New DOGE Saves $1 Billion Per Day: Is U.S. Debt Finally Under Control?

President Trump’s newly created Department of Government Efficiency (DOGE) is focused on reducing federal spending and improving operations. With the U.S. DOGE Service now under its control, the department aims to modernize government functions and cut costs. Remarkably, these efforts are already showing significant results just one week after Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President passed the executive order.

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Early Success for the U.S. Government?

According to The Kobeissi Letter, DOGE has reportedly saved the U.S. government $1 billion per day since the new administration took office. If this trend continues, it could reduce the national deficit by $365 billion by January 2026—equivalent to a 20% cut in the FY2024 deficit of $1.8 trillion.

For context, the U.S. spent around $850 billion on defense in 2024, meaning DOGE’s savings could cover almost 43% of that budget. Additionally, with U.S. interest payments on debt reaching $882 billion last year, reducing the deficit by $365 billion could lower interest costs by over $12 billion annually.

The Three Key Strategies Behind DOGE’s Success

DOGE achieved these financial savings with three major steps: freezing non-essential hires, cutting DEI programs, and reducing improper payments overseas. By halting unnecessary hiring, trimming down bureaucratic waste, and ensuring taxpayer money isn’t lost abroad, DOGE is setting a new standard for fiscal discipline.

If these changes continue, they could save around $365 billion a year, which could be redirected to essential areas like infrastructure, healthcare, or national security.

Could DOGE Impact Interest Rates?

The Kobeissi Letter points out that to reduce the deficit by 50%, DOGE would need to boost daily savings to $2.5 billion. If deficit spending decreases, bond yields could also drop, reducing interest costs and starting a positive economic cycle.

With concerns over rising inflation and the deficit, the 10-year Treasury yield has increased by 100 basis points since rate cuts began. If DOGE’s efforts lead to lower government borrowing, yields could stabilize, saving U.S. consumers trillions in interest over the next decade.

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Can DOGE Completely Eliminate the Deficit?

Fully eliminating the FY2024 deficit would require cutting $5 billion per day—five times the current savings rate. The last time the U.S. achieved a budget surplus was in 1998 under President Bill Clinton. If successful, Trump and Elon Musk Elon Musk   Elon Musk is a well-known entrepreneur and inventor, widely recognized for his role in founding or leading several major companies, including Tesla, SpaceX, Neuralink, and The Boring Company. He’s also known for his ambitious goals around space exploration, electric vehicles, and the future of humanity.   Musk is often a polarizing figure, admired for his innovation and vision, while also drawing criticism for his management style and controversial statements. The U.S. became the primary base for Musk’s career, and the tech scene in California played a significant role in shaping his professional trajectory.     Personal Info:Organization: Ledger.Location: United States.Graduation: Musk earned two bachelor’s degrees, one from the College of Arts and Sciences in Physics and another from the Wharton School of Business. In Economics    Experience: Zip2 Corporation, Co-founder X.com and PayPal Co-Founder & CEO SpaceX CDEO & Chief Engineer Tesla. Inc. CEO, Product Architect Neuralink co-founder, CEO The Boring Company Founder, CEO   NAsales@teslamotors.com EntrepreneurInvestorChief Executive Officer DOGE initiative could mark the second surplus since 1969.

A New Hope for the U.S. Economy

While these results are encouraging, it’s still uncertain if DOGE can truly transform the U.S. economy. Nevertheless, the latest developments have caught the attention of the market, with DOGE—an underdog cryptocurrency—making waves in the U.S. economy.

If the current trend holds, the U.S. government may soon be able to look at its budget in a whole new light, with savings that benefit the country as a whole.

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