Streamlining the Federal Budget: How a New Department of Government Efficiency Could Drive Real Savings

By JOE WALLACE

 The promise to reduce government spending has often focused on cutting budgets for programs that may seem essential to many. However, as recent thinkers like Elon Musk and Vivek Ramaswamy have pointed out, it is possible to reduce federal spending without compromising critical services or entitlements. Instead, a new Department of Government Efficiency could achieve this by addressing inefficiencies and redundancies in federal operations. From rethinking costly healthcare policies to tackling overpriced construction projects and streamlining the federal workforce, there are numerous opportunities for meaningful cuts in government spending. Here’s how this department could lead the charge.

1. Healthcare Reform: Exploring Overseas Medical Options and Drug Sourcing

Healthcare, specifically Medicare and Medicaid, is one of the largest areas of federal spending. Instead of slashing these entitlements, we could save billions by rethinking how and where services are delivered. One promising approach is to allow certain high-cost procedures, such as hip replacements and other surgeries, to be performed overseas. For instance, a hip replacement in Belgium costs up to $100,000 less than the same procedure in the United States. By creating partnerships with reputable international hospitals and covering travel costs for qualifying patients, the government could provide high-quality care at a fraction of the domestic price.

Additionally, Americans could be given the option to buy medications from vetted international suppliers online. Prescription drug prices in the United States are often much higher than in other countries, where pharmaceutical pricing is more regulated. Allowing people to purchase medications from international markets could encourage competition, drive down domestic drug prices, and save the government and consumers billions each year.

2. Affordable Housing and Infrastructure Projects: Reducing Construction Costs

The cost of building affordable housing and government infrastructure is notoriously high in the United States. While government projects routinely exceed $1,000 per square foot, the private sector often completes comparable buildings for less than $400 per square foot. This discrepancy results from bureaucratic inefficiencies, complex procurement processes, and, in some cases, outdated labor agreements and regulations. The Department of Government Efficiency could standardize construction procedures, streamline permitting processes, and negotiate new contracts, potentially cutting costs by more than half.

One way to bring down costs is to open construction contracts to international bidders or private sector companies that have demonstrated success in cost-effective building practices. In some cases, simply adopting best practices from private industry could substantially reduce costs without sacrificing quality or safety.

3. Reducing Redundancies in Federal Employment

Federal agencies, while essential in some areas, suffer from redundancies and outdated staffing practices in others. According to the Government Accountability Office, duplication and fragmentation across federal agencies cost taxpayers billions each year. Many agencies have overlapping responsibilities, which leads to inefficiency, confusion, and wasted resources. By conducting a comprehensive review of agency functions and roles, the Department of Government Efficiency could identify areas where agencies overlap, consolidate them, and reduce the workforce accordingly.

The government also maintains many positions that no longer align with current technological advancements or needs. Automating routine tasks, digitizing processes, and reducing the need for paper-based procedures could allow the federal workforce to be leaner and more agile. This might mean a significant reduction in the number of employees required to perform these tasks, which would lead to savings in payroll, benefits, and administrative overhead.

4. Embracing Technology and Digital Transformation

Digitization has transformed the private sector, increasing productivity and reducing costs. The federal government, however, often lags in technology adoption due to complex procurement processes and security concerns. A focused effort on digital transformation, led by the Department of Government Efficiency, could allow agencies to move to cloud-based systems, reduce the need for physical office spaces, and consolidate administrative functions. With cloud computing, for example, agencies could cut down on data center expenses and the cost of maintaining outdated systems.

Teleworking has also shown great promise during the COVID-19 pandemic, proving that many federal employees can work effectively from remote locations. This shift could reduce the need for large government-owned or leased office spaces, cutting down on real estate costs and utility expenses. By investing in secure digital infrastructure, the government could improve service delivery while cutting costs.

5. Revamping Procurement Processes for Cost Savings

Federal procurement is often mired in red tape, driving up costs and creating inefficiencies. By simplifying the procurement process, encouraging competitive bidding, and allowing agencies to procure goods and services more like the private sector, the Department of Government Efficiency could achieve substantial cost savings. For example, giving federal agencies the autonomy to make bulk purchases across departments, rather than working through multiple vendors, could lead to greater discounts and better pricing for taxpayers.

Additionally, the Department could promote bulk purchasing and negotiating for volume discounts across agencies. Allowing for open-source software and hardware options could also reduce the reliance on expensive, proprietary technology solutions.

Conclusion: A New Path to Fiscal Responsibility

While entitlement programs may seem untouchable, there are ample opportunities to reduce federal spending in less controversial and more practical areas. By targeting inefficiencies in healthcare spending, reforming construction and procurement processes, and reducing redundancies in the workforce, the Department of Government Efficiency could achieve significant savings without compromising quality or access. With visionary leadership and a commitment to leaner government, this new department could lead the way in transforming federal operations—providing a more fiscally responsible path that serves the American taxpayer.

In the end, cost-cutting doesn’t have to mean service cuts. By making smart changes in how the government operates, we can ensure a more sustainable future, one where federal spending aligns with the real needs of the people.