Dell Stock Falls As Trump Administration Expands Spending Review To Tech Contracts

Dell Technologies DELL stock is trading lower on Monday amid reports indicating the Trump administration is widening its spending review beyond consulting firms to include tech companies.

The General Services Administration on Wednesday wrote to 10 technology providers, including Dell and CDW Corp CDW urging them to justify their work and find areas to cut.

The letter highlighted the need to put a tab on the U.S. spending $82 billion annually on IT products and services that have taken a toll on the taxpayer in the form of higher markups, the Wall Street Journal reported on Saturday, citing Josh Gruenbaum, commissioner of GSA’s Federal Acquisition Service’s letter.

Also Read: Palantir Stock Gains As Trump Expands Company’s Role in US Government Agencies

The Trump administration’s review of contracts prompted companies like Booz Allen Hamilton Holding BAH to downsize their workforce.

The Wall Street Journal cited unnamed sources familiar with the matter as stating that since January, the federal government has canceled 11,297 contracts across 60 agencies, leading to $33 billion in overall savings.

The government has halted 2,809 consulting-specific contracts to date.

In February, Defense Secretary Pete Hegseth urged senior officials to develop plans to cut 8% of the defense budget each of the next five years. 

April reports indicated the Energy Department is exploring substantial reductions, potentially halting nearly $10 billion in federal funding for clean-energy projects.

An analysis of federal data reportedly revealed that the U.S. government’s spending continues to rise despite the Trump administration’s concerted efforts to cut costs. Between Jan. 21 and Feb. 20, government spending totaled approximately $710 billion, marking a notable increase from the roughly $630 billion spent during the same period last year. This increase is driven by an aging population and an increasing debt burden.

Former Treasury Secretary Larry Summers said that the Trump administration’s cuts to the Internal Revenue Service (IRS) could result in a $1 trillion government loss.

Price Actions: DELL stock is trading lower by 3.57% to $107.35 at last check Monday. 

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