The United States Department of Government Efficiency (DOGE), led by billionaire Elon Musk, has terminated a consulting contract with the State Department for the Republic of Palau.
In a statement posted on its X account last week, DOGE described the US$1.9 million contract as providing “global advisory and support services for the Republic of Palau.”
The agency indicated that this consultancy contract was one of the “wasteful contracts” it is eliminating to save taxpayer money.
Details about the specific global advisory and support services the State Department previously provided to Palau remain unclear. DOGE did not elaborate in its statement on how the funds were utilised in the island nation.
DOGE was initiated during the second Trump administration and has been promoted by Musk as a means to eliminate federal spending deemed “waste, fraud, and abuse.”
The organisation has taken measures such as accessing government data systems, organising mass layoffs of federal employees, and cutting funding for initiatives related to climate change, scientific research, and diversity, equity, and inclusion (DEI) programmes. Its actions have targeted several federal agencies, including the U.S Agency for International Development (USAID), the Consumer Financial Protection Bureau (CFPB), the Department of Education, the Social Security Administration (SSA), and the Department of Health and Human Services (HHS).
Recent reports also indicate that DOGE has arrived at the Peace Corps headquarters.
Last year, the U.S announced the resumption of a long-suspended Peace Corps programme in Palau.
The Peace Corps stated that it would send volunteers back to the island in 2025, following an agreement reached between the agency’s director and Palau’s president. Peace Corps Director Carol Spahn said in a statement,
“Volunteers will live and work side-by-side with community partners to improve childhood literacy and math and science skills, along with teaching English as a foreign language.”
