The Department of Homeland Security will not fully achieve its reported potential cost avoidance of over $10.5 billion from contract terminations. The agency terminated 438 contracts for convenience between January 20, 2025, and September 30, 2025, but actual deobligations from those terminated contracts totaled over $92 million.

DHS incurred over $1.7 billion in costs through other contracts for the same services covered by terminated contracts. This spending occurred as the agency sought to maintain operations after ending the original agreements. DHS had obligated over $1.6 billion for the terminated contracts prior to termination.

Ninety-five percent of the reported $10.5 billion in potential cost avoidance came from 30 terminated indefinite delivery/indefinite-quantity information technology contracts. These 30 information technology contracts had a 10-year period of performance from fiscal years 2025 through 2034. DHS obligated over $1.7 billion in fiscal year 2025 through existing government-wide contracts to meet the same information technology requirements.

DHS conducted a department-wide review of over 17,000 contracts to assess their importance to the agency’s mission. In the first half of 2025, the President issued a series of executive orders directing federal agency heads to review and terminate contracts to reduce federal spending. The executive orders directed agency heads to consult with the United States DOGE Service, also known as the Department of Government Efficiency, agency team leads. The Department of Government Efficiency (DOGE) was established by an executive order on January 20, 2025.

Members of DOGE terminated certain government contracts and obtained administrative access to information systems used in procurement. Termination of work under the 438 contracts was determined to be in the federal government’s interest. In March 2025, DHS began requiring approval by the Deputy Secretary for all contract terminations regardless of value.

The department also began requiring approval by the Deputy Secretary for awards of any contracts worth $25 million or more in March 2025. The requirement for Deputy Secretary approval of contract terminations was rescinded in April 2026. DOGE ceased operation on July 4, 2026, as scheduled.

Why It Matters

The gap between reported potential savings and actual financial outcomes shows the complexity of federal procurement adjustments. While DHS ended hundreds of contracts, the immediate re-obligation of funds through alternative channels meant that the net reduction in spending was lower than initial estimates suggested. The reliance on a small number of large information technology contracts for the majority of the reported savings indicates that broad contract reviews may yield concentrated rather than distributed financial impacts.

The involvement of DOGE and subsequent procedural changes within DHS illustrate the administrative shifts accompanying these terminations. The establishment and scheduled cessation of DOGE, along with the temporary imposition and later rescission of deputy secretary approval requirements, mark a specific period of regulatory flux. These structural changes occurred alongside the contract actions, affecting how the agency managed its procurement portfolio during the review period.

Timeline

The Department of Homeland Security terminated 438 contracts for convenience between January 20, 2025, and September 30, 2025. In March 2025, the Department of Homeland Security began requiring approval by the Deputy Secretary for all contract terminations regardless of value. The Department of Government Efficiency (DOGE) ceased operation on July 4, 2026, as scheduled. Homeland Security Department published notice titled "Agency Information Collection Activities; Extension, Without Change, of a Currently Approved Collection: e-Request Tool" on 2026-09-04.

What's New

DHS published a notice titled Agency Information Collection Activities; Extension, Without Change, of a Currently Approved Collection: e-Request Tool on September 4, 2026. DHS is a United States federal executive department. DOGE was established by an executive order on January 20, 2025.

DOGE is a U.S. government organization and initiative.

How Sources Differ

Regarding homeland security details, the Government Accountability Office report DHS Contracts: Reported Potential Cost A stated that DHS obligated over $1.7 billion in fiscal year 2025 through existing government-wide contracts to meet the same information technology requirements. On another point regarding homeland security details, the Government Accountability Office report DHS Contracts: Reported Potential Cost A indicated that DHS conducted a department-wide review of over 17,000 contracts to assess their importance to the agency’s mission. Meanwhile, federalregister.gov recorded that DHS published a notice titled Agency Information Collection Activities; Extension, Without Change, of a Currently Approved Collection: e-Request Tool on September 4, 2026.