Re‑Governing: Reducing Waste

The aftermath of our recent war exemplifies our federal waste. The United States government continues to spend far more than it takes in. Federal debt is projected to reach $53 trillion by 2036 without major policy changes. 

Most Americans sense the danger: more than 75% believe Washington spends too much, and in 2025 Senator Rand Paul identified $1.6 trillion in documented waste.

The waste industry—often dismissed or overlooked—offers one of the clearest models for redesigning an inefficient government. After decades working on used‑oil recycling and evaluating landfill financial assurance, one lesson stands out: design determines outcomes.

Waste‑management companies are widely considered recession‑resistant because their essential, non‑discretionary services generate steady cash flow even in downturns. 

The government could learn from that discipline.The familiar “third R”—reduce—remains essential. But without rigorous full‑cost accounting, we cannot manage natural resources or public dollars responsibly.

Growing up in Washington, I wore many environmental hats, eventually serving as a federal environmental executive. The sheer volume of government waste is staggering.

My awareness began in the 1970s with Senator William Proxmire’s 168 Golden Fleece Awards, which exposed absurd federal spending and helped build national awareness. It deepened when investigative journalist Jack Anderson—co‑founder of Citizens Against Government Waste—visited my ninth‑grade class. His reporting rattled the Nixon White House so deeply that the “Plumbers” unit targeted him. It was my first lesson in the power—and cost—of transparency.

Yet even reformers are not immune to contradiction. Anderson’s co‑founder, Peter Grace, led W.R. Grace & Co., later associated with 39 Superfund sites and a $250 million settlement for a Montana asbestos disaster. The Grace Commission sought to root out federal waste, yet could not clean up its own house.

Overspending remains a central culprit. The Government Accountability Office reports that 14 agencies made $236 billion in improper payments in FY2023. By FY2025, 15 agencies reported roughly $186 billion in improper payments—mostly overpayments.

Major FY2023 examples included:

-Medicaid — $51.1 billion

-Pandemic Unemployment Assistance — $43.6 billion

-Earned Income Tax Credit — $21.9 billion

-Paycheck Protection Program — $18.7 billion

-The IRS diverted $21 million intended for modernization to outdated technology.

A congressional review of the Department of Government Efficiency (DOGE) found $21.7 billion in waste. These numbers are staggering—yet they represent only about 2% of the federal government’s nearly $7 trillion in annual spending. Meanwhile, total federal spending still increased by $114 billion in the first seven months of FY2026.The Trump administration’s FY2027 budget proposes $1.5 trillion for national defense—a historic 42% increase—paired with a 10% cut to non‑defense discretionary spending and additional military overspending marked by limited transparency and weak accounting.

One of the most corrosive incentives in federal budgeting is the “Use It or Lose It” rule. Agencies that exhaust their budgets are rewarded; those that save are punished with cuts. This system discourages innovation, long‑term planning, and stewardship.

As the District of Columbia’s first recycling coordinator, I learned that resource‑management ingenuity requires a financial tipping point—a system where profit aligns with pollution prevention. Yet the D.C. budget then resembled the plot of The Producers, where bankruptcy was rewarded.

Today, our prosperity depends on avoiding climate tipping points and shifting from consumers to conservators. Our $39 trillion federal deficit and $1.22 trillion in interest payments in 2025 are further warnings.

Healthcare offers a parallel cautionary tale. I was fortunate to observe my father’s work—described by The Washington Post in the 1980s as “the unobtrusive shaper of law.” He spent nearly 40 years crafting major healthcare legislation. Today the U.S. healthcare system is estimated to lose $760 billion to $1.6 trillion annually, roughly 25% to 30% of total healthcare spending. 

The largest sources of waste are:

-Administrative complexity — $266B+

-Pricing failures — $230B+Inefficient care delivery

-Fraud alone wastes $233 billion to $521 billion annually, according to a 2024 GAO analysis.

Real reform requires:

-Accountability

-Transparency

-Long‑term budgeting

-Clear separation of regulator and market participant

-Incentives for efficiency

Privatizing government services without proper oversight can saddle future taxpayers with enormous liabilities. Whenever the government plays both regulator and market participant, transparency is essential to prevent conflicts of interest and protect the public. 

Unfortunately, DOGE saved only a few billion dollars—far short of its hundred‑billion‑dollar claim—while copying private Social Security data.Ultimately, designing wiser systems—not louder rhetoric—is the only path to a government that rewards stewardship over harmful inefficiencies.

Let’s manage this waste rather than manage to waste. Unless we commit to reducing waste, debt will bury future generations’ opportunities.