U.S. Air Force Declares Saving of $10.4 Billion from Investments in Dogecoin, Majority of Funds Recouped from Consultants and Service Providers
The Department of the Air Force has announced significant savings of over $10 billion as part of President Donald Trump's Department of Government Efficiency (DOGE) initiative. The savings, primarily derived from contract-related actions and civilian workforce reductions, have been achieved over the past six months through a collaborative effort with DOGE.
The bulk of the savings come from canceling contracts or planned contract pools, including descoping contracts, reducing contract ceilings, terminating contracts, or declining to exercise contract options. Significant savings have also been realized from cuts to civilian staff and canceled consulting contracts.
In the broader budget context, the Air Force has saved approximately $1.7 billion from cuts to civilian staff, $1 billion from canceled consulting contracts, $368 million from reduced travel expenses, $341 million from canceled climate initiatives, $39 million from reduced security assistance to other countries, and $15 million from canceled diversity, equity, and inclusion programs.
One of the most notable savings comes from the termination of a second AFSTS contract vehicle before it was awarded, which resulted in savings of $3.75 billion. Additionally, DOGE saved an additional $832 million by canceling a task order for Deloitte under the first AFSTS contract. The termination and descoping of the program saved $4.8 billion.
The Air Force also saved $104 million in AFSTS contracts for other consultants. Notably, DOGE's website notes a canceled contract worth $309.9 million for an Air Force Research Laboratory effort called Mayhem.
The department has reviewed over 500 contracts and 50 business systems as part of its efforts. However, a detailed public breakdown of the entire savings amount has not been provided by the department.
Lt. Gen. Caroline Miller expects to lose about 12,000 Air Force civilians, roughly 6% of the department's civilian employees. Chief of Space Operations Gen. B. Chance Saltzman estimates a reduction of "almost 14% of our civilian workforce."
Defense Secretary Pete Hegseth and Air Force Secretary Troy Meink made the announcement, marking a significant step towards achieving President Trump's goal of government efficiency and cost savings.
[1] Air & Space Forces Magazine [2] Department of the Air Force Budget Request FY26
- The Defense Secretary Pete Hegseth and Air Force Secretary Troy Meink, in collaboration with the Department of Government Efficiency (DOGE), have announced notable savings within the Department of the Air Force, particularly from the termination of various contracts that amount to over $10 billion, as part of President Donald Trump's Department of Government Efficiency (DOGE) initiative.
- The Air Force, in its efforts to streamline operations and reduce costs, has realized significant savings from cuts to civilian staff and canceled consulting contracts, amounting to approximately $3.2 billion collectively. Additionally, the termination of certain AFSTS contracts resulted in savings of $4.59 billion.
- The Space Force, a division within the Department of the Air Force, is estimated to experience a reduction of almost 14% of its civilian workforce, following the efficiency measures implemented by DOGE. This could potentially equate to a significant number of employees.
- While the Department of the Air Force has reviewed over 500 contracts and 50 business systems, a detailed public breakdown of the entire savings amount from these measures has not been provided. However, notable canceled contracts include one worth $309.9 million for an Air Force Research Laboratory effort called Mayhem.
