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Agency Operations

The efficiency equation: How DOGE is changing the citizen-state exchange

Rabihah Butler  Manager for Enterprise content for Risk, Fraud & Government / Thomson Reuters Institute

· 7 minute read

Rabihah Butler  Manager for Enterprise content for Risk, Fraud & Government / Thomson Reuters Institute

· 7 minute read

The Trump administration’s DOGE initiative highlights the fundamental tension in American democracy between providing robust public services and maintaining fiscal responsibility, a balance that will ultimately determine whether such efficiency programs represent meaningful reform or merely political theater

Key points:

      • Efficiency & cost savings —DOGE aims to enhance the efficiency of federal government operations and achieve cost savings by identifying and addressing instances of waste, fraud, and abuse.

      • Modernization & technology — DOGE employs advanced technologies and software solutions to improve the operations of federal government agencies, which it says will help in auditing benefits and streamlining processes.

      • Impact on government agencies — DOGE’s initiatives may lead to the restructuring of various federal agencies, including potential adjustments to their operational scope and staffing levels. 


The relationship between citizens and their government, both on a federal and state, level involves a basic transaction that underpins modern democratic governance: taxes for services. Citizens contribute a portion of their income, and in return, the government provides essential services, such as infrastructure like roads, access to public safety agencies (for example, police, fire, and emergency medical services), and social safety nets.

Yet today, the evolving relationship between citizens and their government has sparked innovative approaches to efficiency and accountability in public administration. The activities of the Trump administration’s Department of Government Efficiency (DOGE), both at federal and state levels, represents a bold experiment in restructuring how government delivers services while managing taxpayer resources.

As the government’s responsibilities extend beyond fundamental functions, its need for revenue likewise increases. The expansion of services necessitates higher taxes to support them, resulting in a complex balance between public provision and private contribution that characterizes our social contract. In the United States, the government employs various departments and a bureaucratic system to deliver essential services to all US citizens.

From a political perspective, there are individuals who prioritize higher taxes in exchange for improved social services, while others advocate for reduced taxes regardless of the consequences. This raises the critical issue of finding a balance between these two positions. And for some, the solution lies paradoxically in expanding governmental oversight with the objective of limiting its own scope. The US is facing such an impasse at the changing of the guard from the Biden administration to the second Trump administration.

It may be useful to examine how this latest efficiency focus, on both a federal and state level, is playing out as DOGE continues to have a heavy impact on how government services are paid for and allocated.

Federal DOGE

At the federal level, DOGE, although not an official government department, was established under the Executive Office of the President on January 20, by President Trump. It was created with the objective of enhancing efficiency within the federal government through the implementation of advanced technologies and modernization of operations. Its primary responsibilities encompass improving governmental processes and evaluating the possibilities for restructuring or consolidating federal agencies.

The establishment and implementation of DOGE involves differing opinions as there are individuals responsible for both the fiscal adjustments and the tax changes. Not surprisingly, there have been both positive and negative political reactions to DOGE’s actions; and depending on the political perspective, the scales can tip in either direction.

There are several key aspects of what DOGE is trying to accomplish as well as the impact it’s already having, including:

Focus on efficiency & cost savings — DOGE’s primary stated objective is to enhance the efficiency of federal government operations and achieve cost savings. This goal is pursued by identifying and addressing instances of waste, fraud, and abuse, thereby leading to a more effective utilization of taxpayer resources. This can be accomplished by reviewing each agency and its personnel with an emphasis on what is necessary to operate optimally at the lowest possible cost, resulting ideally in a reduction of tax dollar expenditures.

Modernization & technology — DOGE employs technology and software solutions to improve the operations of federal government agencies and increase overall efficiency. These technologies serve dual purposes: auditing the benefits delivered and streamlining the processes that administer these benefits.

Potential impact on agencies — DOGE has been involved in initiatives that may lead to the restructuring of various federal agencies, including potential adjustments to their operational scope or staffing levels.

Data privacy concerns — Discussions have arisen regarding data privacy, specifically concerning DOGE’s access to and use of sensitive government information, especially around its interactions with agencies such as the Social Security Administration.

Several changes proposed by DOGE were implemented promptly. However, many of these changes require legislative approval and are still progressing through the necessary channels. At the end of May, Elon Musk concluded his tenure as the leader of DOGE. This transition created an opportunity for a comprehensive evaluation of the impacts of his leadership, which should take into account both the reduction in the number of federal employees and the overall budgetary implications. It is important to note that this assessment pertains solely to the federal implementation of DOGE.

State DOGE

In addition to the federal DOGE, individual states have also tried their hand at creating more efficient government process by utilizing a DOGE-like model. The implementation and evolution of this type of DOGE activity are ongoing and vary by state. Indeed, the concept of DOGE at the state level has rapidly evolved, with changes occurring on nearly a daily basis, making it challenging to keep up with the latest developments. States such as Florida, Iowa, New Hampshire, Oklahoma, Kansas, Missouri, Wisconsin, Texas, North Carolina, North Dakota, Kentucky, Mississippi, New Jersey, and South Carolina have all either implemented or are in the process of establishing a DOGE-like system.

These states have kicked off their DOGE efforts through various establishment processes, such as by executive orders from the governor’s office or by legislative initiatives that are working their way through the state legislatures or executive branches in several states. Meanwhile, other states have created online portals, established by the state legislature, for residents to report fraud, waste, and abuse.

One critical consideration for any DOGE created by a state is an understanding of its ultimate purpose. This is particularly relevant given that all US states, except for Vermont, are mandated to balance their budgets annually. Such an effort at balancing the budget would seem to render DOGE or a similar entity somewhat unnecessary. Consequently, this complicates the justification for its implementation.

Where will DOGE take us?

Within the upcoming months and years, the final decision regarding the necessity of DOGE will come into focus. Based on budgetary considerations, an evaluation will ascertain whether DOGE is essential or redundant. And if deemed necessary, governments then will have to decide whether DOGE should be implemented as a federal or state program.

In the evolving landscape of government efficiency initiatives like DOGE, we witness the tangible manifestation of the fundamental citizen-state relationship being renegotiated. The tension between providing adequate services and maintaining reasonable tax burdens continues to shape political discourse across federal and state levels. As these experimental approaches to government efficiency unfold, their success will ultimately be measured not just by cost savings, but by how well they preserve the social contract while adapting to modern challenges.

Indeed, the coming months will reveal whether DOGE represents a sustainable innovation in governance or merely another chapter in the ongoing struggle to balance public needs with fiscal responsibility — a question that lies at the heart of American democracy itself.


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