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President Donald Trump announced Wednesday that he is weighing a proposal to return 20% of the cost savings from the Department of Government Efficiency (DOGE) initiative to American taxpayers.
The potential rebate could provide financial relief to citizens amid ongoing inflation concerns.
Speaking at an event in Miami Beach, Trump detailed the initiative’s progress and hinted at direct payments to taxpayers.
“There’s even under consideration a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt,” Trump said. “The numbers are incredible, Elon, so many billions — hundreds of billions — and we’re thinking about giving 20% back to the American citizens.”
The proposal comes as billionaire entrepreneur Elon Musk, who leads the DOGE initiative, continues an aggressive cost-cutting campaign within the federal government. DOGE has already identified substantial savings through agency shutdowns, contract cancellations, and personnel reductions.
Musk’s Cost-Cutting Measures
Musk’s initiative has already led to the suspension of operations at the U.S. Agency for International Development (USAID), a $50 billion-per-year agency, as well as the downsizing of the Consumer Financial Protection Bureau. In recent weeks, DOGE has also uncovered nearly $2 billion in unused Department of Housing and Urban Development funds and canceled hundreds of millions in Education Department grants related to diversity, equity, and inclusion (DEI) programs.
Musk, who sat in the front row at Trump’s speech, has previously stated that DOGE aims to cut up to $1 trillion in annual federal spending. His 100-person team has been dismantling bureaucratic agencies, reducing workforce numbers, and reallocating resources deemed unnecessary.
Potential Impact on Taxpayers
Investor James Fishback, a proponent of the DOGE dividend, has estimated that a total of $2 trillion in savings over two years could result in approximately $25,000 per taxpayer. A 20% refund from those savings would translate to around $5,000 per individual.
Musk, however, clarified in a post on X that no specific amount has been decided, and the dividend could take the form of a reduced tax burden rather than direct payments.
“The amount would obviously be proportionate to how much savings DOGE actually achieves,” Musk wrote. “More savings would mean a bigger tax reduction! The top DOGE priority remains, however, reducing the deficit to stop inflation and lower people’s interest rates.”
The proposal has drawn mixed reactions from the public. Supporters argue that returning savings to taxpayers could stimulate economic growth, while critics warn that increased government spending—even in the form of rebates—could contribute to inflationary pressures.
As the initiative progresses, discussions on the potential payout structure and its broader economic implications are expected to continue in the coming months.
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