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 J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     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 tech expert, Entrepreneur and the person behind Tesla, SpaceX, and X. He is hailed as one of the leading influencers of crypto. His tweets, especially for Bitcoin (BTC) and Dogecoin (DOGE), can move the crypto market upside-down.   Recently, Musk flipped an idea of integrating crypto payments with X. This move will futher facilitate crypto payments and make the X a 'Super App'.   He often participates in crypto debates and wants to educate investors about blockchain technology and the benefits of DeFi. He also supports Trump's crypto prospectives and wants a clear policy for the same.   Quick Facts   Full name Elon Reeve Musk Birth 28-07-1971, Pretoria, South Africa Nationality American, South African, Canadian Education BA, BS from the University of Pennsylvania Known for Entrepreneur, Crypto Influencer   Elon Musk - Career Highlights & Events   2020 – Tesla gained interest and backed Bitcoin   2021 – Elon Musk’s Tesla purchases $1.5B worth of Bitcoin. Accepts it as a payment method   2022 – Boosts Dogecoin (DOGE) as its integration is tested in Tesla's commodities assets   2023 – Announced crypto payment attributes for X   2024 – Advocated for crypto-based financial infrastructure at global occasions.   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.