Antoinette Flores
Director of Higher Education Accountability and Quality
An analysis uncovers $400 million spent in cancelled education research contracts.
For the past few weeks, the so-called Department of Government Efficiency (DOGE) has made headline-grabbing claims that it has eliminated hundreds of millions of dollars in 鈥渨asteful鈥 government spending. DOGE is killing contracts with hefty price tags and trumpeting the savings to bolster its allegations the government is engaging in excessive and fraudulent spending. However, a closer look at DOGE鈥檚 cancelled contracts show the savings it鈥檚 heralding are heavily inflated and fail to account for money that鈥檚 already been spent.
Take the devastating cuts to the , the research arm of the U.S. Department of Education established under the Bush Administration in 2002. IES researches and collects data on how well students are performing in U.S. schools and analyzes the success of American education initiatives such as the National Assessment of Educational Progress (NAEP), often referred to as the nation鈥檚 report card.
On February 10, DOGE staffers terminated 89 IES contracts, and saved $881 million. However, based on 国产视频鈥檚 analysis of the DOGE said it discontinued, over half of the contract values rely on a number that includes extra contract options, many of which may never be executed.[1] The total contract value of current awards is more realistically around $676 million. This is $200 million less than what DOGE claimed.[2]
DOGE itself seems to admit the contract savings are far less than initially suggested. Among 104 U.S. Department of Education contracts listed on its new , including the IES contracts, DOGE states the savings amount to just $500 million.
Out of the $881 million DOGE claims to have cut, it's unclear where a large portion of the numbers come from. In one case, DOGE workers cut what they claimed to be a $19 million Mathematica contract, which evaluated the impact of teacher residency programs and the professional development for classroom teachers.[3] The $19 million doesn鈥檛 align with any of the contract values pulled from , nor does it match the DOGE website. The DOGE website states the Mathematica is worth $14 million. The contract is currently awarded at just under $8 million.
Further, while DOGE would have Americans believe that cancelled contracts result in immediate savings, Elon Musk鈥檚 team is actually frittering away hundreds of millions in taxpayers dollars. That鈥檚 because in the case of the IES contracts, the government has spent almost $400 million鈥攐r 59 percent鈥攐f the current awards.[4] Research cannot be undone, and statistics cannot be uncollected. Instead, they will likely sit on a computer somewhere untouched. More than half of the contracts DOGE ended have used more than 50 percent of their funding. One of the IES contracts funded an evaluation of the , which creates learning centers for students who attend high-poverty schools to receive additional academic support. That contract was over 90 percent spent before DOGE abruptly cancelled it. According to 国产视频鈥檚 analysis, the real 鈥渟avings,鈥 if you can call it that, are around $278 million.[5] Neither the initial list of $881 million in cuts nor the DOGE website used to calculate reported savings account for money that鈥檚 already been spent.
Further complicating matters, the U.S. Department of Education may need to rebid some of the contracts because they fund agency operations and studies required under federal law, meaning Americans tax dollars will pay for the study and the significant amount of work that goes into federal contract procurement twice. DOGE acknowledged this in compiled for members of Congress which state, 鈥淎ny contracts to perform statutory functions will be rebid.鈥
One study required by law is the (NPSAS). NPSAS, which has been conducted every three to four years since the late 1980s, is widely relied on by researchers and policymakers to understand how students and families pay for higher education. The current value of the 2024 NPSAS contract is $30 million, $18 million of which was already spent.
The cancelled IES contracts pay for dozens of studies into what works in education, how to improve teaching and learning, and how well students are performing across the American education system. The data collected inform school systems, colleges and universities, states, the federal government, policymakers, and students and families on the most effective uses of taxpayer money. Cancelling these contracts while important data languishes on a computer wastes taxpayer dollars and leaves policymakers in the dark. DOGE鈥檚 proclamations of saving money are a master class in inefficiency and a squandering of public funds.
For more on 国产视频鈥檚 growing collection of posts and statements on defending the Department of Education, see here.
[1] The includes contract options that may never be executed. It also includes additional option years, which may or may not be executed. The is the amount the Federal government has agreed to pay. The actual contract valuation is likely to vary, and it is difficult to say with accuracy how much the Federal government will ultimately spend. However, the current award is the value of the current contract and a conservative estimate, with the actual average likely lying somewhere in between the current and potential award.
[2] 国产视频 compiled contract data from USA Spending and the DOGE website. The data can be found here: . 国产视频 uses the total of the current award to calculate the contract value for reasons explained in Footnote 1.
[3] See Mathematica contract 91990019C0066 on the IES Terminated by DOGE spreadsheet.
[4] 国产视频 used the to calculate how much of the contract has been spent.
[5] 鈥淪avings鈥 represents the total of current awards minus total outlays. See table in Footnote 2.