Federal agencies increased spending despite workforce reductions

A new report has revealed that several federal government agencies have significantly increased their spending over the past years, even as their workforces decreased. This report, from OpenTheBooks, shows that annual spending has risen sharply in multiple departments, outpacing both inflation and staff growth. For example, the Department of Commerce’s spending increased from about $13.1 million in 2021 to an estimated $20.5 million in 2024, while its workforce fell from 53,939 in 2020 to 47,650 in 2024. The report indicates this trend has been consistent across various agencies since 2000. The Biden administration has been a major contributor to this rise in spending, largely due to COVID-19 relief funds and funding for programs focused on diversity and environmental justice. Despite the increase in spending, many Americans have faced economic challenges, including high inflation. The USDA saw a drop in employee numbers from 106,715 in 2000 to 92,072 in 2024, but its spending surged from $75.1 billion to $254.2 billion. Similar patterns were noted in other agencies, including the Department of Housing and Urban Development, which saw its spending rise yet had a slight increase in employees. Trump’s administration has responded to these findings by targeting wasteful spending through the Department of Government Efficiency (DOGE). Since its establishment, DOGE has conducted layoffs and claims to have saved taxpayers about $714 per person. A recent executive order by Trump aims to further reduce waste and improve accountability within the federal workforce. In February, the federal government cut approximately 10,000 jobs, marking a notable job loss in the sector. Representatives from several agencies, including the USDA, have expressed support for Trump's efforts to enhance government efficiency. However, comments from the Department of Commerce, Department of Housing and Urban Development, and the Council on Environmental Quality were not available.