CAGW Recommendations for Trump Administration's Nickel Plan- DOE

November 1, 2018

The Honorable Rick Perry
Secretary, Department of Energy
1000 Independence Avenue, S.W.
Washington, D.C. 20585

Dear Secretary Perry,

During a meeting on October 17, 2018, President Trump directed you and other members of his Cabinet to cut their department budgets by 5 percent in fiscal year (FY) 2019.  With a national debt of more than $21 trillion and the budget deficit soaring to its highest level since 2012, President Trump’s initiative will help to improve fiscal responsibility.

Since 1993, Citizens Against Government Waste (CAGW) has annually published Prime Cuts, a comprehensive account of options the federal government possesses to reduce waste, fraud, abuse, and mismanagement.  The 2018 edition has 636 recommendations that would save $429.8 billion in the first year and $3.1 trillion over five years.  Since CAGW was established in 1984 following the release of the Grace Commission report under President Reagan, the implementation of recommendations similar to those in Prime Cuts has helped save taxpayers $1.8 trillion.

I urge you to consider the following recommendations for President Trump’s 5 percent spending cut directive that are included in Prime Cuts 2018, as well as proposed in whole or in part in the President’s Major Savings and Reforms for FYs 2018 and 2019.

  • Sell the Southeastern Power Administration and related power-generating assets

                        1-Year Savings: $0                           5-Year Savings: $3.8 billion

  • Eliminate Advanced Technology Vehicle Manufacturing Loan Program and Title 17 Innovative Technology Loan Guarantee Program

                        1-Year Savings: $21 million              5-Year Savings: $105 million

  • Terminate the Mixed Oxide Fuel Fabrication Facility Termination project

                        1-Year Savings: $61 million              5-Year Savings: $305 million

  • Eliminate Advanced Research Projects Agency-Energy

                        1-Year Savings: $305 million            5-Year Savings: $1.5 billion

  • Reduce funding for applied energy research and development programs focused on nuclear, fossil, renewables, efficiency, and electricity

                        1-Year Savings: $2.1 billion               5-Year Savings: $10.4 billion

  • Divest the Power Marketing Administration’s transmission assets

                        1-Year Savings: $0                             5-Year Savings: $3.8 billion

  • Reform the laws governing how the Power Marketing Administrations establish power rates

                        1-Year Savings: $162 million              5-Year Savings: $874 million

  • Repeal borrowing authority for the Western Area Power Administration

                        1-Year Savings: $450 million              5-Year Savings: $550 million

Secretary Perry, thank you for your efforts to be a responsible steward of the taxpayers’ money.  Your work to fulfill President Trump’s 5 percent cut directive will show taxpayers that your department stands with them in rooting out wasteful spending in the federal government.

Sincerely,

Tom Schatz
President, CAGW

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