Nearly 40% of federal contracts canceled by the Trump administration are projected to yield no financial savings, according to data from the Department of Government Efficiency. Out of 1,125 contracts terminated, 417 involve previously obligated funds that the government cannot escape. Critics argue that this move does not fulfill any cost-saving objectives. The contracts include paid subscriptions and completed services, reflecting questionable benefits from the cancellations. An official deemed the contract terminations a sensible strategy despite minimal projected savings, further emphasizing inefficiencies in the approach.
The Department of Government Efficiency published an initial list of 1,125 contracts terminated, but 40% won't save the government money, as the funds are already obligated.
Retired law professor Charles Tiefer remarked that cancelling so many contracts pointlessly does not accomplish any meaningful objective in terms of saving taxpayer money.
An anonymous administration official stated they deem it sensible to cancel contracts viewed as potential dead weight, despite little projected financial benefit.
The total value of the non-saving contracts amounts to $478 million, yet many of these contract terminations are legally incapable of yielding savings.
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