Cut Smart, Not Blind: The Key to Fixing Federal Waste
The Trump administration’s focus on reducing the size of the federal bureaucracy is a worthwhile effort, but its current plans for broad, indiscriminate cuts risk undermining critical government functions. A more prudent approach would involve targeted reductions that address wasteful spending while bolstering high-value programs essential to national security, public health, and economic stability.
Certain programs within the federal government are undeniably wasteful and merit reevaluation. A prominent example is NASA’s continued reliance on the Space Launch System (SLS) for the Artemis moon landing program. The SLS, conceived in 2011, has already cost taxpayers $11.8 billion in development expenses, and each launch is projected to cost roughly $2 billion. By comparison, Elon Musk SpaceX’s Starship, which aims to achieve full reusability, offers a starkly more economical alternative. Although recent Starship launches have cost an estimated $100 million each, Elon Musk anticipates reducing this to as little as $10 million per launch. The stark contrast in costs highlights the inefficiency of relying on SLS when more cost-effective private-sector solutions are available. Transitioning to Starship or similar systems could save billions of dollars and exemplifies the kind of wasteful spending the Trump administration should prioritize cutting.
While trimming such programs is a necessary step, some areas of federal government activity demand increased funding to fulfill their missions effectively. One such area is the fight against the opioid epidemic, specifically the trafficking of synthetic opioids like fentanyl, which Trump has strongly endorsed. Fentanyl, which is up to 50 times stronger than heroin, has fueled an alarming rise in overdose deaths in the United States. To combat this crisis, the Treasury Department created a Counter-Fentanyl Strike Force, pooling resources from the Office of Foreign Assets Control and the Financial Crimes Enforcement Network. This task force aims to disrupt the financial networks that sustain fentanyl production and trafficking, and has recently frozen assets and dismantled key financial hubs linked to cartel operations. Reducing funding or personnel for this initiative would undermine its capacity to combat one of the nation’s most pressing public health threats.
Medicare fraud, a major concern for Trump, is another critical area requiring greater investment. Fraudulent schemes, such as those exposed in multiple lawsuits against Lincare, illustrate the vulnerability of federal programs to exploitation. Lincare, a major provider of home oxygen equipment, faced lawsuits over claims it defrauded Medicare by improperly billing for services and products. In one settlement, the company agreed to pay $26 million to resolve allegations of fraudulent practices, highlighting systemic vulnerabilities in Medicare’s oversight mechanisms. Without sufficient auditors and compliance officers, the federal government cannot adequately detect and deter such fraud. Investing in oversight could save taxpayers billions annually and protect Medicare’s solvency for future generations.
The Internal Revenue Service (IRS) also demonstrates the tangible benefits of targeted funding increases. During his first term, President Trump proposed $362 million in additional IRS enforcement funding, arguing that effective tax collection yields far more revenue than it costs. Evidence supports this view. A recent analysis showed that enhanced IRS funding during the Biden administration boosted tax enforcement, improving collections from tax evaders and expanding taxpayer services. For every dollar spent on enforcement, the IRS collected at least $5 in additional revenue. Furthermore, the increased resources allowed the IRS to modernize outdated systems, making it easier for taxpayers to access services and reducing processing times for returns. Cutting IRS resources would widen the tax gap, benefiting those who cheat the system at the expense of law-abiding Americans.
Despite these clear examples of programs that deliver a strong return on investment, the new administration’s primary tool for rationalizing the government – the Department of Government Efficiency (DOGE), headed by Elon Musk and Vivek Ramaswamy – advocates for across-the-board reductions, such as through return-to-office (RTO) mandates. These mandates, which aim to reduce federal workforce numbers, carry unintended consequences. Skilled professionals, particularly those in IT and cybersecurity roles, are among the first to leave federal service when flexible work options are rescinded. This attrition poses significant risks to national security, especially as cyber threats from adversaries like China, Russia, North Korea, and Iran grow more sophisticated. Federal agencies have repeatedly warned that maintaining a robust cybersecurity posture requires retaining top talent, which often hinges on offering competitive work conditions, including remote flexibility.
Moreover, indiscriminate cuts to federal agencies risk crippling essential services. The IRS, for instance, could lose its ability to enforce tax laws effectively, leading to billions in uncollected revenue. Public health programs combating fentanyl trafficking and Medicare fraud could falter without adequate staffing and funding. These reductions would not only hurt the government’s ability to protect Americans but could also increase the financial burden on taxpayers by widening the tax deficit and forcing costly interventions in the future.
A more effective strategy would focus on targeted reforms that align with President Trump’s stated goals of fiscal responsibility and national strength. One option is to implement zero-based budgeting, a method where each federal program must justify its funding from scratch rather than relying on historical appropriations. This approach forces agencies to demonstrate the value of their expenditures and prioritize high-performing programs. Another solution is to use advanced data analytics to identify inefficiencies and fraud within federal operations. Tools like artificial intelligence can sift through vast datasets to uncover patterns of waste or abuse, enabling more precise interventions.
Indiscriminate cuts driven by ideological opposition to government are ultimately counterproductive. They risk increasing tax burdens, weakening national security, and undermining critical public services. Instead, the Trump administration should pursue a disciplined strategy that eliminates waste while strengthening programs essential to the nation’s health, safety, and economic competitiveness. This approach not only ensures fiscal responsibility but also aligns with the administration’s broader vision of a leaner, more effective federal government. By focusing on targeted reforms, the Trump administration can achieve meaningful reductions in bureaucracy while preserving and enhancing the government’s ability to serve the American people.
Key Take-Away
Fixing federal waste requires targeted reforms, not indiscriminate cuts. Eliminating inefficient programs like NASA’s SLS and bolstering high-value initiatives, such as combating fentanyl trafficking, Medicare fraud, and improving IRS… Share on XImage credit: Alena Darmel/pexels
Dr. Gleb Tsipursky was named “Office Whisperer” by The New York Times for helping leaders overcome frustrations with hybrid work and Generative AI. He serves as the CEO of the future-of-work consultancy Disaster Avoidance Experts. Dr. Gleb wrote seven best-selling books, and his two most recent ones are Returning to the Office and Leading Hybrid and Remote Teams and ChatGPT for Thought Leaders and Content Creators: Unlocking the Potential of Generative AI for Innovative and Effective Content Creation. His cutting-edge thought leadership was featured in over 650 articles and 550 interviews in Harvard Business Review, Inc. Magazine, USA Today, CBS News, Fox News, Time, Business Insider, Fortune, The New York Times, and elsewhere. His writing was translated into Chinese, Spanish, Russian, Polish, Korean, French, Vietnamese, German, and other languages. His expertise comes from over 20 years of consulting, coaching, and speaking and training for Fortune 500 companies from Aflac to Xerox. It also comes from over 15 years in academia as a behavioral scientist, with 8 years as a lecturer at UNC-Chapel Hill and 7 years as a professor at Ohio State. A proud Ukrainian American, Dr. Gleb lives in Columbus, Ohio.