Government wastes millions of taxpayer money on unused software—spent $20,000 on ‘free’ Software! DOGE audit sparks outrage

Daniel Levi Posted On February 26, 2025

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The Department of Government Efficiency (DOGE) just uncovered a staggering waste of taxpayer money—millions spent on unused software licenses across federal agencies. The audit, which focused on the Department of Labor (DOL) and other agencies, exposed shocking discrepancies, from thousands of idle Microsoft 365 accounts to $20,000 spent on WinZip licenses—a software that many consider free.

The findings surfaced less than two weeks after Elon Musk’s DOGE team uncovered $100 billion in Medicare and Medicaid fraud, calling it the “epicenter of fraud”—a revelation that triggered a federal crackdown.

Too Many Software Licenses, Too Few Users

The audit was conducted again at the Department of Labor, and the initial findings painted a troubling picture of wasteful spending.

The numbers didn’t lie—380 Microsoft 365 licenses sat completely unused, paid for but never assigned to an employee. Conference room software was another glaring issue, with 128 Microsoft Teams licenses purchased, yet only 30 rooms actually had the system installed.

Then came a baffling discovery—250 licenses for Visual Studio Code (VSCode), even though it’s a free and open-source tool. Only 33 were in use, suggesting a mix-up between VSCode and Microsoft’s paid Visual Studio software.

The design software wasn’t spared either. The audit revealed 129 Photoshop licenses, yet just 22 employees were using them.

Perhaps the most head-scratching detail was the cybersecurity expenditure. The Department of Labor had five cybersecurity licenses, each covering more than 20,000 seats—for a department with fewer than 15,000 employees.

The numbers painted a clear picture: federal agencies were spending taxpayer dollars on software they didn’t need, didn’t use, or didn’t even realize they had.

This audit was repeated at the Department of Labor. Initial results:

– 380 Microsoft 365 licenses with zero users
– 128 Microsoft Teams conference room licenses; only installed in 30 rooms
– 250 VSCode licenses; only using 33
– 129 Photoshop licenses; only using 22.
– 5… https://t.co/xnY8TkKOWv

— Department of Government Efficiency (@DOGE) February 26, 2025

DOGE Findings

DOGE’s findings highlight a recurring issue: agencies are paying for far more software than they actually use. Here are some of the key discoveries from the audit:

380 Microsoft 365 licenses had zero users.
128 Microsoft Teams conference room licenses, but only 30 rooms using them.
250 Visual Studio Code (VSCode) licenses, despite the fact that VSCode is free and only 33 were in use.
129 Photoshop licenses, but only 22 in use.
5 cybersecurity licenses, each covering 20,000 seats—for a department with fewer than 15,000 employees.

A post from DOGE’s official account on X summarized the findings, raising even more questions about how taxpayer money is being allocated on software expenses.

“Agencies often have more software licenses than employees, and the licenses are often idle (i.e. paid for, but not installed on any computer).”

The WinZip Controversy

The most baffling detail? USAID reportedly spent over $20,000 on WinZip licenses. While WinZip does offer paid plans, many users are pointing out that free alternatives exist and that most people never pay for it.

The discovery sparked disbelief and humor online, with users questioning why the government needed to pay thousands for compression software when countless free options are available.

Government-Wide Software Bloat

The issue isn’t limited to the Department of Labor. The General Services Administration (GSA) also showed extreme software bloat:

37,000 WinZip licenses for a department with 13,000 employees.
19,000 training software subscriptions, with multiple platforms running in parallel.
7,500 project management software seats in a division of 5,500 employees.
Three different ticketing systems are being used simultaneously.

These numbers point to a major problem: agencies are spending taxpayer money on software they don’t need, don’t use, or don’t even know they have.

Will Anything Change?

DOGE says fixes are already underway, but the audit raises bigger questions about overspending, accountability, and procurement inefficiencies in government IT spending. If software license waste is this widespread across multiple departments, how much more waste is hiding in plain sight?

For taxpayers footing the bill, the biggest question remains: who’s making sure this doesn’t happen again?

DOGE: A Time-Limited Experiment

DOGE’s lifespan is as audacious as its goals. The department is set to disband on July 4, 2026, aligning with the nation’s 250th anniversary. This tight deadline underscores its commitment to efficiency—even in its own operations. “The ultimate success of DOGE is its obsolescence,” Musk remarked, adding his signature mix of wit and confidence.