U.S. Defense Secretary Pete Hegseth revealed that IT service contracts worth $5.1 billion with companies like Accenture and Deloitte will be terminated, explaining that these contracts were for services that Pentagon staff can handle internally.
According to a memo shared on Thursday, Hegseth described the spending on outside consultants as unnecessary. "These terminations represent $5.1 billion in wasteful spending ... and nearly $4 billion in estimated savings," he added, as per Reuters.
Musk Projects $150 Billion Savings in 2026; Trump Praises His Efforts at Cabinet Meet
At the same time, billionaire Elon Musk told a White House cabinet meeting on Thursday that he expects the Department of Government Efficiency (DOGE) to help save $150 billion in the 2026 financial year. He had previously claimed that DOGE could uncover up to $1 trillion in total savings.
"Elon's done a fantastic job. He is sitting here. I don't care, I don't need Elon for anything other than I happened to like him. I am telling you this guy did a fantastic job. I don't need his car, I actually bought one," President Donald Trump told reporters, Business Insider reported.
He added, "They said, 'did you get a bargain', and I said, 'no give me the top price'. I paid a lot of money for that car, but honestly he makes a great car. You know what I do with it? I let people in the office drive it around."
Musk Urges Trump to Reverse Tariffs as New 50% Levy on Chinese Goods Announced
Musk is said to have personally urged Trump to roll back tariffs on the country's trade partners. However, a report by the Washington Post says that his efforts have not had any impact yet.
Trump announced, earlier this week, his plans to add a 50% tariff on Chinese products, on top of the 34% already in place. Still, he mentioned he's open to discussing changes to the policy.
Musk, on the same day, without directly criticizing the tariffs, posted a video on X featuring economist Milton Friedman. In the video, Friedman talks about how global trade helps everyone and uses the example of a pencil made from parts sourced worldwide.
"Elon Musk and President Trump have both publicly stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete," the White House press secretary, Karoline Leavitt, wrote in an X post on April 2.
