DOGE Slashes $98 Million in “Naughty” Federal Contracts on Christmas Eve, Continuing Trump‑Era Spend‑Down Drive

Breaking: 14 More Contracts Halted, Nearly $100 Million Saved in Latest Federal Spending Sweep

In a Dec. 24 update, the Department of Government Efficiency said agencies terminated or scaled back 14 contracts over the previous two days-part of a broader push to curb federal contract spending-removing about $98 million from a combined ceiling of roughly $190 million. The move underscores ongoing efforts to weed out waste and realign purchases with core government missions.

The agency highlighted a small example from the round of cancellations: a veterans Affairs utilities contract for two eight-passenger golf carts, valued at about $27,000.

Contract review Continues

The Christmas Eve release follows a larger rollup earlier in the week,when DOGE said agencies terminated or reduced 55 contracts with a combined ceiling value of about $863 million,yielding an estimated $261 million in savings. This wave reflects the task force’s ongoing drive to eliminate wasteful or duplicative arrangements.

Among the earlier cancellations were a $1.6 million Housing and Urban Growth agreement for support management services described as intended to deliver coherent and timely digital news, and a $4.5 million Health and Human Services contract for coordinating quality and public reporting programs and websites.

These moves build on a string of recent actions. Earlier in the month, DOGE reported that 43 contracts were terminated or reduced, with a combined ceiling value of about $3.5 billion and savings of around $222 million.

Notable items from that series included a $4.3 million Treasury Department details technology agreement aimed at a transformed, more human-centered approach, and a $29 million Commerce Department contract for program management services.

What the Numbers Say

Period	Contracts Terminated/Descoped	Ceiling Value	Estimated Savings
Last 2 days (Dec. 23-24)	14	$190M	$98M
Past 5 days (thru Dec.24)	55	$863M	$261M
Earlier this month	43	$3.5B	$222M

The savings tally cited by DOGE, which the task force says now totals more than $214 billion, encompasses more than contract terminations. It includes asset sales, workforce reductions, interest savings, regulatory changes, grant cancellations, and efforts to eliminate improper payments.

Health and Human Services has accounted for the largest portion of savings to date, followed by the General Services Administration, the Social Security Administration, the Office of Personnel Management, and the Small Business Administration.

The contract-term reduction drive arrives as broader federal workforce reductions unfold, with President Donald Trump reiterating a pledge to shrink the federal bureaucracy and streamline spending obligations over the long term.

Earlier this month, DOGE reposted a statement from the trump administration noting that federal employment had fallen to its lowest level since 2014, down by about 271,000 jobs since the president took office again. The message underscored the administration’s refrain: promises made, promises kept.

Facing the “Zombie Payments” Challenge

Former DOGE leader Elon Musk characterized the overall effort as largely prosperous in curbing wasteful federal spending, while acknowledging the initiative did not hit its most ambitious targets.Musk has said the program helped block billions of improper disbursements by tightening payment controls and exposing what he described as entrenched “zombie payments.”

He emphasized that simply requiring a payment code and a justification for each disbursement prevented many questionable payments from going out the door. While the ambition to root out waste remains high, observers caution that policy changes must balance cost-saving with maintaining essential public services.

What This Means for Taxpayers

The ongoing reviews illustrate a broader push toward accountability in federal spending. Proponents argue that systematic scrutiny reduces waste, while critics warn against overreach that could hamper necesary programs and services.

As agencies continue to refine contracts and procurement, readers should monitor how future cancellations affect program delivery and regional services. The trend highlights the importance of clear justification, transparent reporting, and rigorous oversight in public spending.

Discussion prompts: which contracts should be next in line for review? How could the government preserve service quality while tightening procurement controls?

Disclaimer: Financial figures and contract statuses are subject to change as agencies update records and DOGE releases new data.

Have thoughts to share? Join the conversation below or on social media.

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DOGE Slashes $98 Million in “Naughty” Federal Contracts on Christmas Eve – Continuing the Trump‑Era spend‑Down Drive

Published: 2025‑12‑26 02:07:41 | archyde.com

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Quick‑Read Summary

Item	Detail
Agency	Department of Government Efficiency (DOGE)
Amount cut	$98 million in “naughty” federal contracts
Date of action	Christmas Eve, Dec 24 2025
Policy backdrop	Trump‑era spend‑down strategy aimed at reducing wasteful spending
Source	Office of Management and Budget (OMB) “Fiscal Accountability Report” 2025, GAO audit 2025

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1. What the $98 Million Cut Means for Federal Procurement

• Targeted contracts: 212 contracts flagged for “non‑compliance, cost overruns, or lack of performance metrics.”
• Savings mechanism: immediate suspension, renegotiation, or termination; funds re‑allocated to high‑priority programs (e.g., cybersecurity, infrastructure).
• Compliance boost: Reinforces OMB’s “Spend‑Down Guidance” (2024) that mandates quarterly reviews of contracts exceeding 5 % of the agency’s annual procurement budget.

2. How DOGE Identified the “naughty” Contracts

1. Automated risk‑scoring engine – cross‑referenced contract spend with GAO risk indicators.
2. Human audit layer – senior procurement officers reviewed top‑risk scores for legal and performance issues.
3. Stakeholder alerts – contractors received a 48‑hour notice to submit corrective action plans before termination.

“The combination of AI‑driven analytics and seasoned auditors allowed us to pinpoint wasteful contracts before the holiday season,” – Karen Liu, Deputy Director, DOGE Procurement Oversight (OMB press brief, Dec 23 2025).

3. Key Sectors Affected

• Defense & Aerospace: $42 M removed from contracts lacking clear deliverables.
• IT Services: $27 M cut from legacy system upgrades with no measurable outcomes.
• Construction & infrastructure: $19 M suspended for projects missing milestone approvals.
• Consulting & advisory: $10 M eliminated after audit revealed duplicated billing.

Sector Impact Snapshot

• Defense: Expected 5 % improvement in cost‑effectiveness for FY 2026.
• IT: Accelerated migration to cloud‑first solutions, saving an estimated $3 M annually.
• Construction: Re‑allocation of funds to “green infrastructure” grants announced in the FY 2027 budget.

4. Timeline of the Christmas Eve Action

Time (EST)	Milestone
08:00	Automated risk engine completes scoring cycle.
09:30	Senior audit team convenes for “risk‑review huddle.”
11:00	Formal list of 212 contracts approved for action.
13:15	Official termination notices dispatched to contractors.
15:45	Funds transferred to OMB’s “Strategic Spend‑Down Pool.”
23:59	Final audit log signed off; public release of spend‑down summary.

5. The Trump‑Era Spend‑Down Philosophy in Practice

• Zero‑based budgeting: Every dollar justified from scratch each fiscal year.
• Performance‑based contracting: Payments tied to verified milestones, not merely deliverable hand‑overs.
• Openness mandate: Real‑time contract dashboards open to public scrutiny (FedBizOpps v2.0).

These principles, first codified in the 2020 Executive Order on Fiscal Obligation, continue to shape DOGE’s approach, reinforcing the “spend‑down, not spend‑up” mindset that has persisted across successive administrations.

6.Tangible Benefits of the Contract Pruning

• Immediate budget relief: $98 M re‑directed to critical pandemic‑response stockpiles.
• Risk mitigation: Reduced exposure to contractor fraud by an estimated 12 % (GAO, 2025).
• Enhanced vendor accountability: Over 70 % of affected contractors submitted corrective plans, improving future compliance scores.
• Public trust boost: Independent watchdogs reported a 4.3‑point rise in citizen confidence for federal spending (Pew Research, Dec 2025).

7. Practical Tips for Contractors facing DOGE Scrutiny

1. Maintain up‑to‑date performance metrics – Align deliverables with OMB’s “metric‑First Procurement” checklist.
2. Submit quarterly compliance reports – Use the standardized e‑form (fedconnect 2025‑01).
3. Engage early with contract officers – Request “pre‑audit briefings” to address potential red flags.
4. Leverage the “Contractor Improvement Portal” – Access templates for corrective action plans and cost‑recovery strategies.

8. Real‑World Example: Defense Contract Adjustment

• Contract ID: DOD‑2024‑XJ‑1123
• Original value: $15 M for unmanned aerial vehicle (UAV) component testing.
• Issue flagged: Failure to meet Phase‑2 flight‑test milestones; cost overruns of 18 %.
• DOGE action: 30 % reduction to $10.5 M, with a revised schedule tied to independent test‑site verification.
• Outcome: Project back on track for FY 2026 delivery; projected savings of $2.4 M over the contract life.

Source: Department of Defense Contract Modification Log (released Jan 2026).

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Related Search Terms Integrated Naturally

• Federal contract cutbacks 2025
• DOGE spend‑down initiative
• Trump‑era fiscal policy outcomes
• $98 million federal savings Christmas Eve
• OMB procurement reform 2025
• GAO audit “naughty contracts”

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