Introduction
The Department of Government Efficiency (DOGE) recently checked Doge software licenses at HUD, the U.S. Department of Housing and Urban Development (HUD). The audit revealed thousands of permits going unused. For example, HUD paid for 11,020 Adobe Acrobat licenses no one used. On the surface, these numbers look like waste. But the whole story is more complex. Why does HUD have so many unused licenses? And how does the government actually buy software?
What Is the DOGE Audit at HUD?
The audit focused on HUD’s software license usage. HUD is a federal agency that helps Americans secure housing and manages programs for millions of people. It relies on budgeting, compliance, and data management software to do this.
In March 2025, DOGE published its findings. The report revealed HUD paid for numerous licenses but didn’t use them. The audit’s goal was simple: highlight areas of government waste. Still, the numbers alone don’t tell the entire story.
Why Do Numbers Need Context?
At first glance, the statistics look shocking. HUD had 35,855 ServiceNow licenses but only 84 users, less than 1% active. That seems like a misuse of taxpayer money. However, agencies often buy more than they need for reasons not apparent in a report.
They might purchase extra licenses for future expansion, contractor use, or to support legacy systems. A former HUD official told WIRED that agencies often “buy ahead” so they’re prepared. What looks like waste on paper could actually be a strategy.
How Did DOGE Conduct the Audit?
DOGE software licenses audit HUD inventory. They reviewed payment records, checked what was installed on computers, and compared license numbers against real usage.
The results showed significant gaps:
- 10,000 Java licenses but only 400 users
- 800 WestLaw Classic licenses, but just 216 users
- Thousands of ServiceNow, Adobe, and Cognos licenses are rarely accessed
While the audit captured the mismatch, it didn’t explain why HUD purchased so many. That missing context makes the situation more complicated to judge.
Why Does HUD Have So Many Licenses?
The reasons come down to how government contracts work. Agencies like HUD usually sign significant, multi-year agreements. These contracts often include bulk licenses at discounted rates. Even if not all licenses are used, agencies may save money long-term.
Other factors include:
- Contractors: HUD hires outside workers who also need licenses.
- Legacy systems: Old technology requires outdated software like Java.
- Future projects: Agencies stock licenses to avoid long procurement delays.
A 2024 Government Accountability Office (GAO) report found that 41% of HUD’s software failed compliance checks, highlighting how complex license tracking is.
How Much Money Is at Stake?
Unused licenses represent millions in potential waste. Based on estimates:
- 11,020 Adobe Acrobat licenses = about $2.64 million annually (at $20 monthly).
- ServiceNow licenses could add up to tens of millions since nearly all 35,855 went unused.
- Cognos licenses also added significant costs, with 1,451 unused.
DOGE has suggested that across the government, unused software licenses could waste up to $100 million each year.
Challenges in Managing Software at HUD
HUD faces the same obstacles as many large federal agencies:
- Outdated systems: Some tools from decades ago still run mission-critical programs.
- Slow procurement cycles: Buying software takes months or years, so agencies stock up.
- Poor tracking systems: It’s unclear which employee or contractor uses which license.
- Vendor contracts: Software companies push large “enterprise deals” that oversupply licenses.
HUD’s spokesperson told Fox News that some licenses were purchased for upcoming projects, meaning not all “unused” licenses are wasted.
DOGE’s Role in Preventing Waste.
The Department of Government Efficiency was created to find and reduce government overspending. Led by high-profile figures including Elon Musk, DOGE has conducted audits across multiple agencies, providing a crucial oversight role in preventing waste and ensuring taxpayer dollars are used efficiently.
The Department of Government Efficiency was created to find and reduce government overspending. Led by high-profile figures including Elon Musk, DOGE has conducted audits across multiple agencies.
Examples beyond HUD include:
- General Services Administration: 37,000 WinZip licenses for just 13,000 workers.
- Department of Labor: 380 unused Microsoft 365 licenses.
DOGE stresses that removing waste saves taxpayer dollars. However, experts caution that cutting licenses too quickly could hinder operations, highlighting the need for a balanced approach to reducing waste.
How Can HUD Improve Software Spending?
The doge software licenses audit hud highlighted clear gaps in how licenses are purchased and tracked. HUD has several opportunities to manage software spending more effectively. The audit shows that while some unused licenses are necessary for contractors or future projects, others are the result of poor tracking or outdated procurement practices. By modernizing its approach, HUD can save millions of taxpayer dollars without harming its work.
1. Implementing Monitoring Tools
The Doge software licenses audit HUD revealed that thousands of licenses went idle because usage wasn’t properly tracked. HUD can fix this by using automated monitoring systems. These tools show which employees, contractors, or systems use software. With better visibility, HUD can cut licenses that sit unused for months and reassign them, preventing costly oversupply.
2. Reviewing Contracts More Carefully
The Doge software licenses audit HUD also showed how long-term contracts create overspending. Agencies often sign bulk deals that lock them into paying for thousands of permits. HUD could negotiate flexible “pay-as-you-use” contracts instead. Regular reviews allow the agency to buy only what’s needed and save millions across multi-year deals.
Read Also: Apple iPhone 17 Pro.
3. Adopting Cloud-Based Solutions
Another lesson from the Doge software licenses audit HUD is that static license bundles don’t match modern needs. Cloud solutions like Microsoft 365 or Adobe Creative Cloud let HUD pay for what’s used. These models scale up or down monthly, so HUD avoids wasting money on thousands of empty seats while staying agile for future projects.
4. Phasing Out Legacy Systems
The Doge software licenses audit HUD pointed to outdated systems as a key factor behind unused licenses. HUD still maintains old platforms that require costly tools like Java or Cognos. Replacing these with modern applications would cut unnecessary spending, improve efficiency, and enhance security. Retiring legacy systems is one of the fastest ways to reduce waste.
5. Conducting Regular Internal Audits
Rather than waiting for DOGE or GAO, HUD should create its own routine audit cycle. The Doge software licenses audit HUD showed how much gets overlooked when tracking is reactive. Quarterly or annual checks would flag unused licenses, review renewals, and catch waste early—putting HUD in control of its spending before it escalates.
6. Training and Accountability
The Doge software licenses audit HUD also raised questions about whether staff knew how to use the tools purchased. Sometimes licenses go unused simply because employees lack training. HUD can boost adoption by teaching staff how to use software effectively and holding managers accountable for over-ordering. Requiring data-backed justification for new licenses could prevent waste.
Benefits by Role
| Role | Key Benefits |
|---|---|
| Developers | Get real-time feedback during coding, ensure license design matches project needs, and access clear legal guidance directly in the IDE or CI/CD pipeline. |
| Compliance & Legal Teams | Simplify audit preparation with consistent documentation, enforce policies automatically, and maintain ongoing readiness for external reviews. |
| CTOs / IT Governance Leaders | Gain centralized oversight of software usage, optimize costs through accurate license tracking, and align operations with regulatory requirements. |
| Government Agencies (e.g., HUD) | Improve accountability and transparency, strengthen compliance with procurement rules, and demonstrate responsible use of taxpayer-funded licenses. |
Conclusion
The DOGE audit at HUD found tens of thousands of unused software licenses. On paper, this looks like a waste costing millions of taxpayer dollars. But the story isn’t black and white. Agencies buy extra licenses for contractors, legacy systems, and future growth.
Still, HUD can do better. With improved tracking, smarter contracts, and modernized systems, it can cut unnecessary spending. The lesson for taxpayers: government waste is real, but understanding the context helps separate true inefficiency from strategic planning.
Disclaimer
This article is based on public reports and expert commentary. It does not provide legal, financial, or compliance advice. Readers should consult qualified professionals before making decisions about software licensing.
FAQs
- What did the DOGE audit find at HUD?
The audit found thousands of unused software licenses at HUD, including Adobe, Service Now, and Cognos. On paper, this looked like a waste costing millions. - Why did HUD buy so many licenses?
HUD often signs large, multi-year contracts that include bulk licenses. Many extras are for contractors, old systems, or future projects—not all are waste. - How much money is at stake?
The audit suggests HUD spent millions on unused software. For example, unused Adobe Acrobat licenses alone may cost over $2.6 million per year in fees. - Are all unused licenses a waste?
Not always. Some are needed for contractors, backup systems, or future growth. While many go unused, others ensure HUD can work without delays or gaps. - What makes license tracking hard for HUD?
HUD runs complex, old systems and hires contractors. Tracking who uses what is a bulk and challenging process for vendor deals, making overbuying licenses easy. - How can HUD improve software spending?
HUD can add monitoring tools, negotiate smarter contracts, use cloud services, retire legacy systems, and train staff to reduce overspending. - What role does DOGE play?
DOGE was created to cut government waste—auditing agencies like HUD show where money is overspent and push reforms in federal spending. - Could cutting licenses hurt HUD’s work?
Yes. Cutting too fast could block employees and contractors from vital tools. Balance is key—savings matter, but HUD must keep programs running. - Why does this matter to taxpayers?
Unused licenses waste public money. Every dollar lost to overspending is money that could go to housing programs or other important community services. - What’s next for HUD after the audit?
HUD is reviewing contracts, tracking usage better, and working with DOGE to fix waste. Smarter buying could save millions and fund housing programs.
