Bessent ‘Slightly Shocked’ by Scale of Fraud Uncovered by DOGE

As DOGE pushes to cut spending, Treasury Secretary Scott Bessent says he’s somewhat shocked by the amount of fraud it has already uncovered.

U.S. Secretary of Treasury Scott Bessent attends a meeting with Ukraine's president in Kyiv on Feb. 12, 2025. Tetiana Dzhafarova/AFP via Getty Images

Treasury Secretary Scott Bessent said Friday that the Department of Government Efficiency (DOGE) is making significant strides in cutting federal spending, adding that he is “slightly shocked” by the extent of fraud uncovered—not just waste and abuse.

Speaking in a Feb. 28 interview on Bloomberg Podcasts, Bessent was asked whether DOGE’s cost-cutting measures would have a “material” impact on deficit reduction.

“I think we can make a pretty big hit here,” he replied, explaining that if DOGE identifies $300 billion in savings—which he suggested is possible—it could reduce the annual deficit by approximately 1 percentage point as a share of gross domestic product (GDP).

Even if the savings total only $150 billion, he said, this is still “moving us back toward the target, and we’re determined to get this down.”

Bessent emphasized that DOGE, which was tasked by President Donald Trump with rooting out waste, fraud, and abuse in federal spending, has already uncovered substantial inefficiencies—and a surprising amount of outright fraud.

When it comes to “waste, fraud, and abuse, I think most of us think in terms of waste and abuse,” Bessent said. “I’ve got to tell you that I’m slightly shocked at some of the fraud we’re finding, and you’re going to be hearing about more of that over the next couple of weeks.”

As for the ultimate savings that DOGE will deliver, Bessent said: “We'll see.”

DOGE, led by Elon Musk in a special government role, has an 18-month mandate to slash $2 trillion in federal spending before its scheduled dissolution on Independence Day 2026. Musk has acknowledged the ambitious nature of this goal, saying that even cutting half that amount would be a major step toward reducing inefficiency and lowering deficits.

Over the past month, Musk and DOGE staffers have moved aggressively to pursue reforms across federal agencies, reporting $65 billion in savings through canceled grants, asset sales, workforce reductions, and terminated contracts and leases.

Trump recently urged Musk to push even harder to root out waste and fraud. He also signed an executive order directing federal agencies to work with DOGE to eliminate costly or duplicative regulations, further accelerating its deficit-cutting mission.

“We either solve the deficit, or all we'll be doing is paying debt,” Musk said in a recent interview with Fox News. “It’s not optional. America will go bankrupt if this is not done.”

According to the Congressional Budget Office (CBO), the federal deficit is projected to average $1.9 trillion per year between 2025 and 2034, or approximately 5.4 percent of GDP over that period. If DOGE’s projected $300 billion in savings materializes—a figure Bessent said was not out of the question—it would lower the deficit to $1.6 trillion and reduce the deficit-to-GDP ratio by nearly 1 percentage point, improving fiscal sustainability.

The CBO has warned that persistently high debt could slow economic growth, increase interest payments to foreign creditors, heighten the risk of a fiscal crisis, and limit policymakers’ ability to respond to future downturns. It has stressed that lawmakers must pursue comprehensive fiscal reforms, including spending cuts, revenue increases, or a combination of both, to put the budget on a sustainable long-term path.

Meanwhile, DOGE’s aggressive efforts have drawn criticism from Democrats in Congress, who accuse the agency of overstepping its authority and operating without sufficient oversight or transparency. The agency also faces multiple lawsuits, some challenging its access to federal data and others questioning its constitutional legitimacy.

Despite the legal and political battles, DOGE appears to have significant public support. A recent poll of Epoch Times readers found overwhelming backing for DOGE and the Trump administration’s push to curb waste, fraud, and abuse. At the same time, respondents called for greater visibility into DOGE’s findings, with some demanding greater accountability—including the prosecution of individuals found to have engaged in fraud.

Bessent’s remarks suggest that such accountability may be on the horizon.