Cost Cutting in Government
A key fiscal policy topic discussed, focusing on the challenges of reducing government spending, debt, and the deficit due to political incentives for representatives to secure funding for their constituents.
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7/26/2025, 5:49:15 AM
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7/26/2025, 5:54:11 AM
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7/26/2025, 5:54:11 AM
Summary
Cost-cutting in government is a multifaceted issue aimed at reducing government expenditure and can lead to significant structural changes, such as the abolition of upper legislative houses. These measures are often implemented to remove unelected bodies or address under-representation. In the early days of the Trump administration, discussions highlighted the challenges of cost-cutting, alongside a focus on private-public sector collaboration, energy policy, and artificial intelligence infrastructure. Specific initiatives like the $500 billion 'Stargate Project' for AI infrastructure and the debate around expanding electricity production, particularly nuclear energy, were emphasized as crucial for national security and global competitiveness. The administration also sought to reshape AI policy by rescinding previous regulations and promoting the U.S. as a leader in cryptocurrency. Broader cost management approaches include operational efficiency, structural transformation, reducing employment and pay rates, cutting spending programs, and streamlining procurement processes, as seen in various government initiatives.
Referenced in 1 Document
Research Data
Extracted Attributes
Purpose
Addressing under-representation of certain demographics
Approach
Streamlining procurement processes
Challenge
Difficulty of implementation
Associated Initiative
Department of Government Efficiency
Associated Administration
Trump Administration
Timeline
- During the first week of the new Trump Administration, discussions included the challenges of cost-cutting in government alongside focuses on private-public sector collaboration, energy policy, and AI infrastructure. (Source: Related Documents)
2017-01-20
- The White House issued an order titled 'Implementing the President's "Department of Government Efficiency" Cost Efficiency Initiative', focusing on transparent spending and accountability. (Source: Web Search)
2025-02-26
- A policy change to cut annual non-defense discretionary spending by 5 percent relative to projected levels is proposed to take effect. (Source: Web Search)
2025-01-01
- Various options for reducing the federal deficit are outlined, including significant cuts to the Department of Defense's annual budget, capping military pay increases, and changes to social programs like Medicaid. (Source: Web Search)
2025-2034
Wikipedia
View on WikipediaList of abolished upper houses
This is a list of abolished upper houses of bicameral legislatures and parliaments at national and lower levels of government. The reasons for abolition include removal of unelected houses, under-representation of ethnic/religious minorities, under-representation of women, cost-cutting in government expenditure, longer and unlimited terms in office (leading to accusations of monarchism), and to speed up the process of legislation due to upper house scrutiny.
Web Search Results
- Delivering on lower-cost, higher-value government - Deloitte
This trend highlights the tools and key strategies governments are employing to deliver on lasting cost reduction. These cost management approaches, unlike traditional cost-cutting measures, take a broader, more integrated view of the organization and its mission. As shown in figure 1, these approaches fall into three main categories: Operational efficiency: Rethinking the “How” [...] As the Department of Public Expenditure and Reform’s first secretary general, I led a cost reduction initiative, implementing measures across all government sectors. We reduced employment numbers and pay rates, cut back on spending programs, and streamlined procurement processes. And we broadened the effort by not redlining specific spending areas, since protecting some sectors from cost-cutting consideration would have further pressured all the other areas. [...] Structural transformation: Governments have a bevy of structural approaches they can use to reduce costs without negatively affecting services, ranging from consolidation to IT rationalization to different models of public-private partnerships.
- Implementing the President's "Department of Government Efficiency ...
Sec. 3. Cutting Costs to Save Taxpayers Money. (a) _Contract and Grant Justification._ Each Agency Head shall, with assistance as requested from the agency’s DOGE Team Lead, build a centralized technological system within the agency to seamlessly record every payment issued by the agency pursuant to each of the agency’s covered contracts and grants, along with a brief, written justification for each payment submitted by the agency employee who approved the payment. This system shall include a [...] By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered: Section 1. Purpose. This order commences a transformation in Federal spending on contracts, grants, and loans to ensure Government spending is transparent and Government employees are accountable to the American public. Sec. 2. Definitions. As used in this order: [...] Published Time: 2025-02-26T22:26:36+00:00 Implementing the President's "Department of Government Efficiency" Cost Efficiency Initiative – The White House =============== Menu President Donald J. Trump The White House Search Image 1 News Articles Briefings & Statements Fact Sheets Presidential Actions Executive Orders Nominations & Appointments Presidential Memoranda Proclamations Remarks
- Options for Reducing the Deficit: 2025 to 2034
The options come from a variety of sources, including legislative proposals, budget proposals from various Administrations, Congressional staff, federal agencies, and private groups. The options are intended to reflect a range of possibilities rather than to rank priorities or present a comprehensive list. The inclusion or exclusion of a particular option does not represent an endorsement or a rejection by CBO. In keeping with CBO’s mandate to provide objective, impartial analysis, this report [...] | Title | Savings, 2025–2034 (billions of dollars) | | --- | --- | | Reduce the Department of Defense's Annual Budget | 959 | | Cap Increases in Basic Pay for Military Service Members | 22a | | Replace Some Military Personnel with Civilian Employees | 17a | | Stop Building Ford Class Aircraft Carriers | 15 | | Cancel the Long-Range Standoff Weapon | 15 | | Cancel the Army’s Future Long-Range Assault Aircraft | 11 | | Reduce the Size of the Bomber Force by Retiring the B-1B | 6 | [...] | Title | Savings, 2025–2034 (billions of dollars) | | --- | --- | | Reduce Subsidies in the Crop Insurance Program | 47 | | Raise Fannie Mae's and Freddie Mac's Guarantee Fees and Decrease Their Eligible Loan Limits | 7 to 15 | | Eliminate the Add-On to Pell Grants, Which Is Funded With Mandatory Spending | 44a | | Establish Caps on Federal Spending for Medicaid | 459 to 893 | | Limit State Taxes on Health Care Providers | 48 to 612 | | Reduce Federal Medicaid Matching Rates | 69 to 561 |
- Policy Options for Reducing the Federal Debt: Spring, 2024
Cut annual non-defense discretionary spending by 5 percent: Under current law, about 70 percent of the federal budget is for mandatory programs, for which spending is set by predetermined formulas, and interest payments on the national debt. About 30 percent of the budget is for “discretionary” programs, which are the programs for which spending is controlled by annual appropriations acts. About half of discretionary spending is defense spending, while the other half is comprised of [...] Table 5: Budget Effects of Bundle 3, A Mixture of Broad-based Tax Increases and Spending Cuts Conventional budgetary savings (+) or cost (-), billions of nominal dollars, excluding the effects of debt service DOWNLOAD DATA [...] education, transportation, housing, and more. This policy change would reduce the non-defense portion of discretionary spending by 5 percent each year relative to currently projected levels. This policy would take effect in 2025.
- Debt Fixer | Committee for a Responsible Federal Budget
Fix the Debt in the short and long term. Make the hard budget choices to stabilize debt at 100% of the economy by by identifying $7.8 trillion of deficit reduction and bring it down to 60% by 2050. You have cut $0 from the Federal Budget to bring down the debt to under 100% of GDP by . You have cut $0 from the Federal Budget to bring down the debt to under 60% of GDP by 2050. Your Savings Relative to Current Law 0 (In billions of dollars) ## #### {{term.name}} (select one) i [...] You managed to bring the debt down considerably in the long term, but debt is still high in the short term. try again. ## Good progress on long term debt! You managed to bring the debt down considerably in the long term, but debt is still high in the short term. Revisit your selections or try again. ## You fixed the budget! You managed to stabilize the debt in the short term and bring the debt down in the long term. Share your results! ## Stabilize the U.S. Debt at 100% of GDP by [...] ### {{term.name}} ## Make Your Choices Count! CRFB will analyze data from users to identify trends and preferences and provide that analysis to policy makers. ## Success! We've received your results CRFB will analyze your results to identify trends and preferences and provide that analysis to policy makers. ## Tell Your Representatives! Enter your zip code to identify your representatives. You can also find contact info for your senators here and your representative here.