WASHINGTON, DC (LOOTPRESS) – President Trump suggested Wednesday that a portion of savings from Elon Musk’s cost-cutting initiative, the Department of Government Efficiency (DOGE), could be used to provide direct payments to taxpayers—but economists across the political spectrum are skeptical.
“We’re thinking about giving 20% back to the American citizens and 20% back to pay down debt,” Trump said at an investment summit in Miami. However, he did not provide details on how this plan would be implemented.
Proposal Gains Attention Online
The idea of a “DOGE dividend” gained traction after James Fishback, an X user, posted a four-page proposal estimating that 20% of DOGE’s projected $2 trillion savings could provide a $5,000 tax rebate per household. Only households with a tax liability would qualify, meaning many lower-income Americans would not receive a payment.
Musk, who heads DOGE, responded to the post and later said he would discuss the idea with Trump.
Experts: $2 Trillion in Savings is Unrealistic
Economists and policy experts argue that DOGE is unlikely to achieve the $2 trillion in savings needed to fund such a rebate.
Jessica Reidl, an economist at the Manhattan Institute, called the plan “completely impossible,” noting that two-thirdsof the federal budget is dedicated to Social Security, Medicare, defense, and debt interest—areas Trump has vowed not to cut.
“Saving $2 trillion would require eliminating nearly every remaining federal program,” Reidl said. “DOGE has no authority to cut spending—Congress would have to pass a law, and that will not happen.”
As of Wednesday, DOGE claims to have cut $8.4 billion—far short of Musk’s goal to shave $500 billion annually, let alone reach $2 trillion.
Alex Nowrasteh, an economist at the Cato Institute, called the plan “very unrealistic,” adding that even if significant cuts were achieved, any new tax rebate would require Congressional approval.
Budget Constraints and Political Hurdles
Trump’s Feb. 18 Fox News interview reaffirmed that Social Security and Medicare will not be cut, but he has backed House Republicans’ budget plan, which proposes deep Medicaid cuts.
With the federal budget deficit surpassing $2 trillion annually and national debt at a record $36.2 trillion, experts argue that issuing dividend checks would be fiscally irresponsible.
“Washington is facing annual deficits that could exceed $3 trillion in the coming years,” Reidl warned. “Sending taxpayers rebate checks would only worsen the problem.”
While a scaled-down version of the DOGE dividend could emerge, experts say finding anywhere near $2 trillion in federal cuts remains highly unlikely.
