Elon Musk said he will discuss a proposal with President Donald Trump to distribute tax rebate checks to Americans, funded by projected savings from the Department of Government Efficiency (DOGE).
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The proposed payments, dubbed “DOGE Dividend” checks, could return a portion of the agency’s savings to taxpayers. However, the plan would require congressional approval and depends on DOGE’s ability to meet ambitious budget-cutting goals.
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Why It Matters
The proposal comes amid ongoing debates about government spending, tax policy and economic relief measures. While some lawmakers support returning savings to taxpayers, others argue the funds should be used to reduce the national debt or extend existing tax cuts.
The last widespread stimulus payments were issued in response to the COVID-19 pandemic, making this initiative a significant policy shift.
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What To Know
Musk has publicly entertained the idea of stimulus-style rebate checks linked to DOGE savings.
Musk posted on X that he would “check with the president” on Azoria CEO James Fishback’s proposal to return 20 percent of DOGE savings to taxpayers.
If Musk’s target of $2 trillion in federal savings is met, Fishback estimates that roughly $400 billion could be allocated for rebates, equating to approximately $5,000 per household for the 78 million households that pay federal income taxes. This estimate could amount to around $2,500 per person in a household with two taxpayers, depending on the tax situation.
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Estimated Savings
DOGE has saved an estimated $55 billion so far according to a live savings tracker, which is projected to be just under $360 in savings per taxpayer. DOGE’s methods of cutting costs have primarily surrounded trimming federal contracts and reducing agency budgets.
The long-term viability of the rebate proposal remains uncertain, as lawmakers may seek alternative uses for the savings.
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What People Are Saying
James Fishback, CEO of investment firm Azoria, said on X: “President Trump and @ElonMusk should announce a ‘DOGE Dividend’—a tax refund check sent to every taxpayer, funded exclusively with a portion of the total savings delivered by DOGE.”
Kevin Thompson, finance expert and founder/CEO of 9i Capital, previously told Newsweek: “If people thought inflation was bad last year and prices are still stubbornly high now, imagine what would happen if we pumped even more money into the system.”
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F. Stevens Redburn, former Office of Management and Budget (OMB) official and George Washington University lecturer of public policy and public administration, told POLITICO: “If [the DOGE dividend proposal] is real, you have to have a way of estimating and collecting the amounts that are being saved and putting them into some account. Both OMB and [Congressional Budget Office] CBO would look at that, and then Treasury would then record those amounts.”
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What Happens Next
The proposal remains in its early stages and would require congressional approval before any checks are issued. Meanwhile, lawmakers will continue evaluating how to allocate any savings generated by DOGE, with some pushing for tax relief measures instead of direct payments.
