Implementing the President's "department of government efficiency" cost efficiency initiative

Summary of Executive Order on Government Spending Transparency and Efficiency ​

Purpose ​

• Aims to enhance transparency and accountability in Federal spending on contracts, grants, and loans.

Key Definitions ​

• Administrator – Head of the U.S. DOGE Service.
• Agency – Federal departments except for the Executive Office of the President.
• Covered Contracts and Grants – Discretionary Federal spending excluding critical services (e.g., military, law enforcement).
• DOGE Team Lead – Oversees efficiency efforts within each agency.

Measures to Cut Costs ​

1. Contract and Grant Justification ​

• Agencies must build a centralized system to record every payment with a justification.
• Payments without justification can be paused and reviewed.
• Payment justifications should be publicly posted where legally permissible.

2. Review of Contracts and Grants ​

• Agencies must review existing contracts for potential termination, modification, or renegotiation to cut costs.
• Focus on educational institutions and foreign entities for waste, fraud, and abuse.
• 30-day deadline for review completion.

3. Contract and Grant Process Review ​

• Agencies must review contracting policies, personnel, and procedures.
• New contract approvals paused for 30 days unless deemed necessary.

4. Contract and Grant Approval ​

• After review, agencies must issue guidance on new contracts to promote efficiency.
• Monthly contracting activity reports to be sent to the Administrator.

5. Non-Essential Travel Justification ​

• Agencies must record federally funded travel justifications in a centralized system.
• Travel without justification is prohibited.
• Reports must be publicly posted where permissible.

6. Credit Card Freeze ​

• All government credit cards frozen for 30 days, except for disaster relief and critical services.

7. Real Property Management ​

• Agencies must update real property inventory within 7 days.
• Agencies must review lease termination rights within 30 days.
• A plan for disposal of unnecessary properties must be submitted within 60 days.

General Exclusions ​

• Exemptions include law enforcement, military, immigration enforcement, and classified information.

General Provisions ​

• Does not override existing laws or agency authorities.
• Implementation subject to available funding.
• Does not create enforceable legal rights for individuals.

Issued: February 26, 2025 – The White House