Elon Musk’s efficiency drive falls short as US federal spending hits record high: Report

Despite these reductions, the broader trend of rising expenses continues to challenge Musk's cost-cutting initiative.

Elon Musk's efficiency drive has failed to curb rising U.S. federal spending, which soared to a record $603 billion last month, according to a report by the Financial Times citing new Treasury data. The data underscores the Trump administration's struggle to significantly reduce government expenditure despite Musk's aggressive cost-cutting efforts.

Musk's "Department of Government Efficiency" claims to have achieved over $100 billion in savings. However, only a few government departments reported lower spending in February, the first full month under the new administration, the Financial Times reported.

Federal spending rose by $40 billion compared to the same month last year, marking a 7 percent increase. Despite Musk's claims that his initiative is identifying cuts at a rate of $4 billion per day and is on track to deliver $1 trillion in annual savings, the latest data shows limited progress in curbing expenses across major spending categories.

While the Department of Education managed to cut $6 billion in spending, broader cost reductions were overshadowed by increases elsewhere. The Financial Times reported that healthcare spending climbed 3 percent, adding $5 billion to the budget, while social security payments rose 6 percent, adding $8 billion in costs.

Treasury spending itself surged by $29 billion from the previous year, driven by a $10 billion increase in debt servicing costs and a $14 billion rise in tax credits and related payments. Meanwhile, defense spending remained steady at $61.4 billion.

The Financial Times reported that Marco Rubio, the secretary of state, oversaw a reduction in spending at the U.S. Agency for International Development (USAID), where monthly outlays were halved to $226 million from $547 million a year earlier. His department's core budget also fell slightly from $1.7 billion to $1.6 billion.

Despite these reductions, the broader trend of rising expenses continues to challenge Musk's cost-cutting initiative. In response, Musk has vowed to double Doge's staff and intensify efforts to reduce major expenditures like social security.

However, legislative developments could limit the impact of Musk's plans. On Tuesday, the House of Representatives narrowly passed a bill that extends current government spending levels until the end of September. The bill now moves to the Senate, where it requires support from at least eight Democrats to pass.

Meanwhile, President Trump has recently curtailed some of Doge's activities, emphasizing that individual agencies retain authority over personnel decisions. Trump urged Musk to adopt a "scalpel" rather than a "hatchet" approach to spending cuts, following criticism from Republican lawmakers about the aggressive pace of Doge's reductions.

Federal judges have also intervened, pausing or reversing several of Doge's decisions. Last week, the Supreme Court upheld an order compelling the Trump administration to distribute nearly $2 billion in previously approved foreign aid funding.