The state-level push for DOGE
refl ects in part a hangover from the pandemic years. Many states, buoyed by fed- eral largesse that was intended to help rescue the U.S. economy, esca- lated their spending substantially. Over the past year,
KOLODIN
however, both Republi- can and Democrat-led states have faced signif-
icant budget shortfalls. That looming red ink will either lead to spending cuts, tax hikes, or both to balance the budget. States also face the prospect that
under a more cost-conscious admin- istration, future federal grants may be less generous. While Democrat leaders nationally
have been harshly critical of the DOGE movement, some Democrats on the state level have carved out pragmatic positions on government spending, especially in swing states like Pennsyl- vania and Colorado. Leading the nonpartisan push to
extend the government-efficiency movement to the state level: the Ameri- can Legislative Exchange Council (ALEC). The council, which lauds the states
as “the laboratories of democracy,” bills itself as the largest membership organi- zation of state legislators “dedicated to the principles of limited government, free markets, and federalism.” Following the fi nancial crisis of 2008-2009, ALEC created a state bud- get reform toolkit to help legislators rethink how to manage their resources. The council has a proven track record of designing model legislation that leaders can then introduce in their own states.
Jonathan Williams, president and
chief economist of ALEC, calls the rise of DOGE in Washington, D.C., and beyond “a magic moment for those of us who want to see common sense in budgeting again.” He says state leaders’ interest in set- ting up their own versions of DOGE has
Federal Fraud Hits $1 Trillion a Year
W
hen X billionaire Elon Musk said he wanted to trim $2 trillion
a year from federal spending, wags inside the Beltway laughed and called it impossible. They’re not laughing now. Congress’ Government
Accountability Of ice has estimated fraud losses at between $233 billion and $521 billion annually. But in testimony to Congress, risk management experts say the real figure is closer to $1 trillion. That’s how much the federal
government loses every year due to fraud, waste, and abuse. Just one example: While grants to
the private sector typically experience a 3%-4% level of fraud or abuse, for federal spending it’s an estimated 20%. In other words, an estimated one
of every five dollars in payments and grant money might as well be flushed down the toilet. Some recipients, analysts say, are simply no longer alive, but their survivors continue to milk taxpayers anyway. LexisNexis Risk Solutions CEO
Haywood Talcove told Congress, “We continue to pay benefits to deceased and incarcerated individuals, direct money to bad actors flagged in the Do Not Pay list, and overlook duplicate Social Security numbers by not following best practices.” Just three simple steps, Talcove
says, could save federal, state, and local governments tens of billions of dollars every year: 1. Verify recipients’ identities so
of icials know who is really receiving the funds. 2. Eliminate self-certification, i.e.,
don’t assume applicants are qualified to receive the money just because they say so. 3. Monitor the programs on the “back end” to be sure they’re actually delivering promised benefits to the public. Those may sound like basic,
common-sense steps for any grant program, but Talcove estimates those fundamentals alone could save taxpayers a stunning $1 trillion per year. “And continuous auditing,” he adds.
“Keep verifying, because criminals never stop adapting.” — D.P.
Big Spenders State
California New York New Jersey Florida
Pennsylvania Massachusetts Ohio
Tennessee Connecticut
North Carolina
Billions
$234 $84* $53
$42* $41 $36 $25 $23 $22 $22
* Florida’s population in 2024 was 23.3 million — and growing. New York’s was 20.1 million — and shrinking.
New York spends 50% more per capita than the national average — higher than California (7%), Massachusetts (24%), New Jersey (55%), Texas (71%), and Florida (101%).
taken off since Republicans captured the House, the Senate, and the presi- dency in November. In December, ALEC launched a new state-level initiative, the Government Effi ciency Coalition. The coalition conducts monthly meetings with leg- islators nationwide, providing a forum where they can brainstorm over how to reduce regulations, cut spending, and enhance effi ciency at every level of state government. “Realizing the federal government
is in much worse shape than the states, we still have a lot to do at the state level,” Williams tells Newsmax. “We’re super excited that President Trump has moved this discussion to a national level with Elon Musk, and the attention that they’re bringing to it.” With U.S. voters now on the hook for
$36.4 trillion in national debt, Williams notes interest costs are now projected to eclipse total U.S. defense spending. “This is something that cannot con-
tinue to happen,” he says. “We have a limited time now to make substantial changes regarding the scope of gov- ernment,” he explains. “This is exactly the time for fi scal conservative ideas to shine.”
APRIL 2025 | NEWSMAX 15
ILLUSTRATION/DNY59/GETTY IMAGES / MUSK/JIM WATSON/AFP VIA GETTY IMAGES
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