President Donald Trump’s February 26, 2025, Executive Order 14222 directed federal agency heads to review certain contracts, grants, loans and related spending with input from their agency DOGE Team Leads. It allowed agency heads to terminate or modify covered awards only “where appropriate” and “consistent with applicable law.” The order did not give DOGE independent authority to cancel every contract or grant.
What does Trump’s DOGE spending order do?
Executive Order 14222, titled “Implementing the President’s ‘Department of Government Efficiency’ Cost Efficiency Initiative,” set up a review of covered federal spending. Agency heads were told to conduct the review in consultation with their agency DOGE Team Leads and, when appropriate and consistent with applicable law, terminate or modify awards. The order describes the goal as reducing spending or reallocating it to advance efficiency and administration policy; that stated goal is not evidence that a particular amount was saved.
The distinction matters: the order names agency heads as the officials responsible for review and possible action. DOGE Team Leads participate in consultation, but the order does not say DOGE alone cancels all covered awards.
What spending is covered—and what is excluded?
The order defines covered spending as discretionary spending through federal contracts, grants, loans and related instruments. It also identifies exclusions and gives agency heads a written-exemption option.
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| Category | What the order says |
|---|---|
| Covered spending | Discretionary spending through federal contracts, grants, loans and related instruments. |
| Direct assistance | Direct assistance to individuals is excluded. |
| Specified sensitive or urgent areas | Spending related to immigration enforcement, law enforcement, the military, public safety and the intelligence community is excluded. Other critical, acute or emergency spending may also be excluded as determined by the relevant agency head. |
| Written exemptions | The relevant agency head, in consultation with the DOGE Team Lead and the OMB Director, may exempt certain covered grants or contracts, agency components or real property in writing. |
These categories define the order’s scope; they do not establish that every item within a broad spending category was reviewed or changed.
Can DOGE cancel a federal contract?
EO 14222 does not describe DOGE as an independent cancellation authority. It directs agency heads to review covered contracts and grants in consultation with DOGE Team Leads, and says agencies may terminate or modify them only where appropriate and consistent with applicable law. Whether a particular award can be changed depends on the agency’s action and the law that applies to that award.
So the practical answer is: DOGE may be involved in the review process, but the order assigns the review and potential action to agency heads. It does not make every covered contract automatically cancellable.
How does the order fit into DOGE’s original structure?
Trump’s January 20, 2025, Executive Order 14158 renamed the United States Digital Service as the United States DOGE Service (USDS), placed it in the Executive Office of the President, provided for a temporary DOGE Service organization and directed agency heads to establish agency DOGE Teams. That temporary organization was assigned an 18-month agenda and a stated end date of July 4, 2026. EO 14158 also said that ending the temporary organization would not, by itself, terminate or amend other authority or provisions in that order.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsEO 14222 is the separate order specifically directing cost-efficiency reviews of contracts and grants. The White House’s February 26, 2025, fact sheet described the initiative as focused on federal spending through contracts and grants and on reviewing unnecessary contracts. That is the administration’s description of its policy, not an independent audit of savings or results.
What have courts said about DOGE’s spending role?
A 2026 opinion from the U.S. District Court for the District of Columbia discussed EO 14222 among later executive orders reflecting DOGE’s broader role in spending reduction. The reported ruling granted defendants’ motion on separation-of-powers and Administrative Procedure Act claims and denied it on Appointments Clause and ultra vires claims. That outcome concerns the claims in that case; it is not a blanket ruling that validates or invalidates every part of EO 14222.
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In a separate 2026 court order, a judge asked the parties whether claims for declaratory or injunctive relief remained live in light of DOGE’s “apparent dissolution.” The question was a case-management development, not a judicial finding that every DOGE-related authority or agency process had ended. These case-specific developments should not be read as a definitive statement of DOGE’s current legal or operational status.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What does the order mean for taxpayers?
For taxpayers, the order establishes a review process and the administration’s stated aim of reducing or redirecting certain federal spending. It does not provide a savings total, identify how many awards were changed, or show the results of agency reviews. A claim about actual savings therefore needs evidence of completed actions and their financial effects, not just the order’s stated purpose.
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