Why have the rumors of disbandment never stopped as DOGE falls into a power vacuum?

Once a highly influential agency within the U.S. government—DOGE—recently found itself embroiled in a public controversy. A Reuters report claimed that this Musk-led organization had been disbanded, quickly causing a sensation. However, the statement was promptly denied by officials, and behind the story lies a subtle shift in Washington’s power dynamics.

From External Advisors to Institutionalized Agencies: A Quiet Transfer of Power

Senior officials from the Trump administration and Scott Kupor, director of the U.S. Office of Personnel Management (USOPM), swiftly corrected Reuters on social media, stating that they “carefully edited” his full comments. Kupor emphasized that the fundamental principles of DOGE remain valid, but his response itself revealed a key message: DOGE’s role is changing.

According to Kupor’s own disclosures, the Office of Personnel Management (OPM) has taken over most of DOGE’s cost-cutting and layoffs. From a bureaucratic perspective, this seems reasonable—after all, as the federal human resources department, OPM should be responsible for such tasks. But in reality, this signifies a transfer of power from external consultants like Musk to traditional government agencies.

In a media interview, Kupor publicly stated, “OPM is an independent agency.” He added that if DOGE’s goals align with his, he is willing to cooperate, but he would never fully obey DOGE’s commands. This wording indicates that the once-Musk-led radical reforms now must be integrated into the routine government management framework.

Kupor’s Path to Compromise: Gradual Reform vs. Radical Layoffs

Scott Kupor’s professional background is quite interesting. He was a managing partner at the well-known Silicon Valley venture capital firm a16z, and only sworn in as director of the Office of Personnel Management on July 14, 2025. This newcomer from the tech sector clearly has differences in reform approach compared to Musk.

According to reports from the Financial Times and Washington Post, Kupor has criticized Musk’s enforced control mechanisms, such as the “weekly progress reports,” deeming such methods inefficient. Regarding Musk’s initial aggressive cost-cutting targets, he also expressed skepticism: “We cannot simply cut discretionary spending to zero and magically save $2 trillion.”

This skepticism is meaningful. Kupor’s stance represents a more cautious approach: driving change through traditional institutions like OPM rather than relying on a controversial temporary agency. In a sense, this is a strategic adjustment within the Trump administration—to maintain reform momentum while reducing external controversy and pressure.

DOGE’s Achievements: From Bragging to Shrinking

When DOGE was established, its goals were ambitious enough to astonish. In October last year, Musk stated at a Trump rally at Madison Square Garden that DOGE could cut federal spending by “at least” $2 trillion. In February this year, Musk still optimistically believed a $1 trillion reduction was possible—about 15% of the federal budget.

But over time, these targets kept shrinking. In April 2025, Musk claimed to have already cut $1.5 trillion, which was challenged by fact-checkers. The House DOGE core group chair Blake Moore admitted on June 5 that Republican members had known all along that this figure was “seriously exaggerated.”

According to DOGE’s official website, the agency has terminated 13,440 contracts, 15,887 grants, and 264 leases. As of the time of writing, DOGE claims to have saved $21.4 billion through asset sales, contract cancellations, fraud eliminations, and other measures—equivalent to $1,329.19 per taxpayer. This only accounts for about 21% of the original promised savings.

In recent tweets, DOGE claimed to have terminated or cut 78 wasteful contracts worth $19 billion over the past 9 days, saving $3.35 billion. Specific examples include: a $616,000 HHS contract for “social media monitoring subscriptions”; a $191,000 USAGM contract for “broadcast operations in Ethiopia, Africa”; and a $4.3 million IRS contract.

Verifying these figures is difficult. The New York Times reported that even budget experts and congressional appropriations committees are unclear on how much money has actually been cut or where unspent funds have gone.

Layoff Storm: The Political Power Behind the Numbers

DOGE’s true “achievements” mainly lie in two areas: large-scale layoffs and agency paralysis.

The Trump administration announced that approximately 300,000 federal jobs had been cut, nearly all attributed to DOGE. As of July 14, 2025, CNN tracked at least 128,709 employees who had been laid off or were on the layoff list. By May 12, The New York Times reported over 58,500 confirmed layoffs, more than 76,000 buyouts, and over 149,000 other planned reductions; totaling about 12% of the 2.4 million federal civilian employees.

In Kupor’s recent blog post, he revealed that about 68,000 people had been hired this year, but 317,000 employees had left the government—far exceeding Trump’s “hiring four, laying off three” goal.

Breaking down by department: the Department of Education plans to cut nearly 50% of its staff; the Department of Veterans Affairs aims to “return to 2019 levels,” reducing about 80,000 employees; the Department of Health and Human Services plans to cut 20,000 positions (25% of its workforce).

In the first two months of 2025, 62,530 federal employees were dismissed, a 41,311 increase compared to the same period in 2024.

Why Have Rumors of Dissolution Never Stopped?

The key to understanding this is that DOGE has been destined to make enemies since its inception. The existence of this agency itself challenges the Washington power structure, touching many vested interests.

Since its founding, DOGE has faced fierce opposition from multiple sides. Protesters gathered outside the Office of Personnel Management, claiming Musk illegally controls government infrastructure. Federal employees and retirees organized protests, angry at Musk’s actions. The U.S. Digital Service (USDS) saw 21 members resign collectively. Multiple polls show that most Americans oppose DOGE’s infiltration into government and Musk’s accumulation of power.

This pressure from various quarters has kept the rumors of DOGE’s “dissolution” alive. Every disturbance fuels hopes that this disruptive agency in Washington might soon disappear.

And now, perhaps DOGE’s story is still evolving. From a controversial, Musk-led agency to a reform tool integrated into routine government departments, DOGE is losing its original disruptive momentum. This may be more telling than an actual disbandment.