Specific companies are already feeling the effects of cost cutting by Elon Musk’s Department of Government Efficiency (DOGE), with the first wave of publicly available data showing a number of government consultants facing hundreds of millions of dollars in canceled or renegotiated contracts.
They include some prominent names, such as Deloitte. The ended contracts for that multinational London-based firm, DOGE claims, total more than $219 million in savings for taxpayers.
The effect on Deloitte’s bottom line isn’t clear but is a relatively small piece of Deloitte Worldwide’s reported 2024 revenue of $67.2 billion.
Other development and consulting firms — many such smaller businesses dot the Washington area and focus on US government contracts as their main source of revenue — could see much deeper relative cuts.
One recent lawsuit filed by a group of these companies — Global Health Council v. Donald J. Trump — charged that “they have suffered and will continue to suffer enormous and concrete harm to their businesses” because of the administration’s actions.
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At least one plaintiff charged that actions by the White House and DOGE have also left open “months of unpaid invoices” for work already done.
An official at one firm told Yahoo Finance that 20 contracts had been terminated in recent weeks and added that “the immediate issue is the federal government’s failure to pay for work it commissioned and approved — that’s fundamentally unfair.”
Another — perhaps more prominent — group of companies also faces cuts but at a vastly smaller scale: media outlets. They are now selling fewer subscriptions to the government for their services after a wave of cancellations.
Those savings add up to a bit more than $13 million in possible lost revenue, a Yahoo Finance analysis found, representing only about 0.18% of the overall claimed DOGE savings so far.
The final impact for all of these companies — and actual savings to taxpayers — remains far from clear as the DOGE team has repeatedly revised its claimed savings downward in recent days in response to errors being pointed out. The exact terms of the contracts also aren’t known.
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What is clear is that much of the early focus has been on consulting and development companies such as Deloitte, DAI Global, and International Development Group.
In one example — the largest cut claimed by Musk’s team — the group says taxpayers have been saved $654,990,000 due to ending a contract with International Development Group Advisory Services.
But the website of the firm in the middle of the contract touts just $25 million in current projects.
The terms of that specific contract aren’t known, but it’s listed in the DOGE data as an indefinite delivery/indefinite quantity (IDIQ) contract, which is commonly used by the government to set the upward parameters of future work — without committing to ever paying the full amount.
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Elon Musk appeared at the Conservative Political Action Conference (CPAC) on Feb. 20 in Maryland and brandished a chainsaw gifted to him by Argentinian President Javier Milei. (Andrew Harnik/Getty Images) ·Andrew Harnik via Getty Images
DOGE’s focus on development and consulting firms — often categorized in the government data as “professional support” — is also a reflection of Musk’s early focus on the US Agency for International Development (USAID). Many of the canceled contracts reflected work done for that agency in far-flung locales like the Middle East and Africa.
All told, Musk’s group is claiming almost $7.2 billion in total savings from canceled or renegotiated contracts, with USAID representing about $5.2 billion of that figure.
The court filing in Global Health Council v. Donald J. Trump also charges that the administration’s actions “have had and will continue to have a catastrophic effect on the humanitarian missions of several plaintiffs.”
Despite the cost-cutting focus on consultants and professional support companies, media organizations have gotten much public attention from the Trump White House.
Press secretary Karoline Leavitt touted the administration’s efforts earlier this month to cancel those payments, with an emphasis on Washington-focused Politico, which offers services aimed at covering specialized wings of Washington, such as government agencies and energy policy.
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The government has canceled at least 90 Politico subscriptions across different departments, according to the DOGE data, saving about $8.5 million.
Leavitt has also charged that these subscriptions — which appear to be standard — amount to “subsidizing subscriptions to Politico on the American taxpayers’ dime” and noted that “will no longer be happening.”
Politico is likely to take a hit, but the government is far from subsidizing an outlet that was sold in 2021 for $1 billion. It was reported at the time that Politico brought in $200 million annually in revenue.
Another significant media recipient of government subscriptions is Bloomberg, which has lost over $2 million in subscriptions. That’s likely to be an even smaller hit to the company’s bottom line, which reportedly passed $10 billion in annual revenue in 2019.
White House press secretary Karoline Leavitt holds up a copy of government contract receipts during a press briefing on Feb. 12. (ANDREW CABALLERO-REYNOLDS/AFP via Getty Images) ·ANDREW CABALLERO-REYNOLDS via Getty Images
Of course, DOGE is still in the early stages of its work cutting through the federal bureaucracy and is estimated to have touched about 10% of named government agencies so far.
The impacted companies are sure to evolve in the weeks ahead as Musk and the DOGE team turn their attention to other areas, especially the $850 billion Department of Defense. Both DOGE and Defense Secretary Pete Hegseth are discussing plans for cuts.
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William Blair industrials research analyst Louie DiPalma noted in a recent Yahoo Finance live appearance that many forces in Washington are looking to increase defense spending, so the effects there are far from certain.
“There seems to be strong support for continuing to increase the defense budget,” he noted.
DOGE is claiming a total of $55 billion in savings through a range of means, from fraud detection to workforce reductions, but hasn’t provided a detailed accounting of those changes yet.
Ben Werschkul is a Washington correspondent for Yahoo Finance.
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My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.
When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.
The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.
Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).
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Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.
However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).
Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.
San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).
The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.
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A peek inside the scorecard’s grades shows where trouble exists within California.
Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.
Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.
Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
ROCHESTER, N.Y. — Student athletes are now earning real money thanks to name, image, likeness deals — but with that opportunity comes the need for financial preparation.
Noah Collins Howard and Dayshawn Preston are two high school juniors with Division I offers on the table. Both are chasing their dreams on the field, and both are navigating something brand new off of it — their finances.
“When it comes to NIL, some people just want the money, and they just spend it immediately. Well, you’ve got to know how to take care of your money. And again, you need to know how to grow it because you don’t want to just spend it,” said Collins Howard.
What You Need To Know
High school athletes with Division I prospects are learning to manage NIL money before they even reach college
Glory2Glory Sports Agency and Advantage Federal Credit Union have partnered to give young athletes access to financial literacy tools and credit-building resources
Financial experts warn that starting money habits early is key to long-term stability for student athletes entering the NIL era
Preston said the experience has already been eye-opening.
“It’s very important. Especially my first time having my own card and bank account — so that’s super exciting,” Preston said.
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For many young athletes, the money comes before the knowledge. That’s where Glory2Glory Sports Agency in Rochester comes in — helping athletes prepare for life outside of sports.
“College sports is now pro sports. These kids are going from one extreme to the other financially, and it’s important for them to have the tools necessary to navigate that massive shift,” said Antoine Hyman, CEO of Glory2Glory Sports Agency.
Through their Students for Change program, athletes get access to student checking accounts, financial literacy courses and credit-building tools — all through a partnership with Advantage Federal Credit Union.
“It’s never too early to start. We have youth accounts, student checking accounts — they were all designed specifically for students and the youth,” said Diane Miller, VP of marketing and PR at Advantage Federal Credit Union.
The goal goes beyond what’s in their pocket today. It’s about building habits that will protect them for life.
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“If you don’t start young, you’re always catching up. The younger you start them, the better off they’re going to be on that financial path,” added Nihada Donohew, executive vice president of Advantage Federal Credit Union.
For these athletes, having the right support system makes all the difference.
“It’s really great to have a support system around you. Help you get local deals with the local shops,” Preston added.
Collins-Howard said the program has given him a broader perspective beyond just the game.
“It gives me a better understanding of how to take care of myself and prepare myself for the future of giving back to the community,” Collins-Howard said.
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“These high school kids need someone to legitimately advocate their skills, their character and help them pick the right space. Everything has changed now,” Hyman added.
NIL opened the door. Programs like this one make sure these athletes walk through it — with a plan.
