The Department of Government Efficiency (DOGE), under Elon Musk’s leadership, is now targeting federal technology contracts. Google Workspace  and Microsoft 365 where the U.S. government spends hundreds of millions each year, are viewed as the most immediate opportunities for further cuts.

This follows DOGE’s high-profile cancellation of $60 million in media subscriptions to The New York Times, The Associated Press, and Politico, a move that has already drawn significant attention and pushback.

DOGE’s Media Subscription Purge

Musk called the payments to major news outlets “a huge waste of taxpayer money,” prompting immediate cancellations.

According to DOGE’s internal tracker, the government was paying $40 million to The New York Times, $20 million to the Associated Press, and $500,000 to Politico. Politico disputed a broader claim that USAID had paid them $8.1 million, while The New York Times countered that its total government revenue last year was under $2 million. Regardless of the exact figures, the cuts signaled a decisive shift in federal spending priorities.

Broader Context: Government Media Spending

Federal agencies regularly subscribe to outlets like Bloomberg, Reuters, and niche policy publications to support research, compliance, and decision-making. Public records confirm multi-million-dollar agreements across departments, particularly those focused on finance, foreign affairs, and intelligence.

While DOGE’s critics argue that sweeping cuts may deprive agencies of critical information, proponents counter that many of these contracts reflect outdated procurement habits rather than true necessity.

Next on the Chopping Block: Google Workspace & Microsoft 365

DOGE’s cost-cutting mandate now turns to cloud-based productivity suites, where larger savings may be possible. Microsoft 365 Government currently accounts for the majority of federal spending in this category, with contracts totaling more than $500 million in 2024.

Combined federal software contracts with Microsoft and Oracle are estimated at $3 billion annually, reflecting the broader scale of entrenched vendor relationships that may face renewed scrutiny.

Google’s share is far smaller, at roughly $6 million, but a new agreement with the General Services Administration offers Workspace licenses at a 71 percent discount. Google has suggested the deal could save agencies up to $2 billion over three years if widely adopted. However, those figures rely on aggressive assumptions about agency participation and streamlined license consolidation.

Implications for Federal Operations

While the potential for savings is significant, abrupt changes to core software platforms could cause widespread disruption. Eliminating or restructuring Microsoft and Google contracts would affect everything from interagency communication to document management and cybersecurity protocols. Experts, including analysts from the Center for Strategic and International Studies (CSIS) and multiple federal CIO councils, caution that any transition must be carefully phased and vendor-neutral to avoid unintended consequences. Without a clear migration plan, agencies risk productivity loss, data access issues, and weakened security postures during the handoff period

Conclusion

DOGE’s cancellation of $60 million in media subscriptions was only the beginning. With cloud productivity platforms now under scrutiny, the stakes are rising quickly. Microsoft and Google dominate the digital backbone of federal operations, and any large-scale contract changes would ripple across agencies nationwide. Whether this effort leads to measurable savings or costly complications depends on execution. For tech vendors and policymakers alike, the coming months will reveal whether DOGE is making government leaner, or simply more chaotic.

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