Donald Trump has always been known for bold and unconventional ideas, and his latest proposal is no exception.
The former president is toying with the idea of redistributing savings from Elon Musk’s cost-cutting initiative, DOGE, directly to taxpayers.
However, even some of his staunchest allies in Congress are skeptical about the feasibility and impact of such a move.
A Plan to Return Savings to Citizens
During a conference in Miami, Trump suggested that 20% of the savings from DOGE’s spending cuts could be given back to U.S. citizens.
Another 20% would be allocated toward reducing the national debt.
Later, while speaking with reporters aboard Air Force One, he expressed enthusiasm about the concept, saying, “I love it.”
Trump argued that these dividends could mean real money in taxpayers’ pockets while also incentivizing the public to report government waste, fraud, and abuse.
He believes the initiative could make Americans more engaged in holding the government accountable.
Republicans Voice Doubts Over Fiscal Impact
Despite Trump’s enthusiasm, some Senate Republicans were hesitant to embrace the idea, particularly given concerns over the national debt and inflation.
Senator Kevin Cramer of North Dakota described the proposal as “very Donald Trump-like” but leaned toward prioritizing deficit reduction over issuing stimulus checks.
“We should get the budget closer to balanced rather than an inflationary stimulus check,” he told reporters.
Similarly, Senator Rick Scott of Florida acknowledged that while the idea of dividends sounded appealing, the country’s $36 trillion debt and ongoing deficit issues must take precedence.
“We’ve got to deal with that reality first,” he cautioned.
Senator Roger Marshall of Kansas echoed these concerns, stating that tackling the national debt should be the primary focus rather than sending out payments to taxpayers.
Some Republicans Open to the Possibility
Not all GOP senators dismissed the idea outright.
Senator Ted Cruz of Texas remained open-minded, saying the effectiveness of DOGE’s work in eliminating waste would determine whether dividends were a viable option.
Senator Eric Schmitt of Missouri called the proposal “interesting,” emphasizing that putting more money back into taxpayers’ hands is always a positive step.
However, he also acknowledged that deficit reduction should remain on the table.
Musk’s Involvement and the Proposed Payout
Trump’s comments came shortly after Elon Musk indicated he would consult with the former president regarding DOGE dividends.
This response was prompted by investment firm CEO James Fishback, who suggested in a social media post that taxpayers could receive a “tax refund check” once DOGE completes its cost-cutting efforts in July 2026.
Fishback’s proposal estimates that if 20% of DOGE’s targeted $2 trillion in savings were distributed, each household could receive around $5,000.
However, questions remain about whether DOGE’s efforts will achieve the intended savings.
Concerns Over DOGE’s Actual Savings
While DOGE claims to have already saved $55 billion by eliminating wasteful spending, scrutiny over the accuracy of these numbers has emerged.
In one instance, a data entry error inflated an $8 million savings claim to $8 billion.
NPR’s review of DOGE’s terminated contracts suggested actual savings were closer to $2 billion rather than the initially reported $16.5 billion.
Democratic senators have seized on these discrepancies.
Senator Ron Wyden of Oregon questioned whether the savings figures were legitimate, stating, “We don’t see much there, there.
Somebody’s got some explaining to do.”
Legal and Economic Hurdles
Even if DOGE meets its savings goals, Trump lacks the authority to unilaterally distribute funds as dividends.
Any such move would require congressional approval, where the proposal has received a lukewarm response at best.
Experts also warn that issuing stimulus checks could further fuel inflation.
Judge Glock of the Manhattan Institute noted that the proposed payout “is not plausible from any current DOGE reductions.”
He added that distributing direct payments could trigger gradual inflation as recipients spend their checks.
The Broader Inflation Debate
Inflation remains a hot-button issue, with consumer prices rising 0.5% between December and January.
The annual inflation rate hit 3% last month—the highest since June 2023—exceeding the Federal Reserve’s target.
Trump’s proposal also brings back memories of the pandemic-era stimulus checks.
Under his administration, the federal government issued two rounds of direct payments ($1,200 and $600), followed by a $1,400 check under President Joe Biden in early 2021.
Many Republicans blame Biden’s stimulus measures for exacerbating inflation, though economists continue to debate the broader economic forces at play.
What’s Next?
As of now, Trump’s idea remains just that—an idea.
With Congress divided on the issue and experts warning of potential inflationary consequences, the road ahead for DOGE dividends is uncertain.
Whether this proposal gains traction or fades away depends largely on how much DOGE actually saves and whether lawmakers can agree on how to handle those savings.
One thing is clear: the debate over government spending and taxpayer relief isn’t going away anytime soon.
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