GAO Report – DHS Contracts: Reported Potential Cost Avoidance from Terminations Will Not Fully Materialize
In early 2025, the President directed federal agency heads to implement a series of initiatives to reform government operations, including reviewing federal contracts and grants for termination or modification to potentially save costs. To advance these initiatives, the President established the United States DOGE Service and directed agencies to create DOGE teams to help carry out administration priorities. GAO was asked to review DHS and DOGE efforts to terminate contracts and grant awards and reduce its workforce in 2025. This report, the first in a series, provides information on DHS actions to review and terminate contracts from January through September 2025, and the number and value of contracts terminated.
GAO found that DHS overstated its reported cost savings. DHS claimed $10.5 billion in savings. But GAO found this number represents the maximum that could have been obligated on these contracts, not what actually would have been obligated. What’s more, if DHS still needs the goods and services covered by those contracts and meets those needs through other contracts, those costs would not be avoided but incurred through those other contracts.
