The Trump Administration is exploring the possibility of directing some savings from the Department of Government Efficiency to benefit the American populace.
This concept was initially suggested by a user on X, to which the DOGE head, Elon Musk, replied that he would consult with the President.
“I love it,” Trump remarked about the proposal while addressing reporters on Air Force One. “We’re talking about a 20% dividend from the savings we achieve by targeting waste, fraud, and abuse, among other issues. I believe it’s an excellent idea.”
During a speech in Miami on Wednesday, Trump noted that the plan would allocate 20% of DOGE’s savings to the American people and 20% to reduce the national debt.
The actual amount DOGE saves taxpayers remains a contentious topic.
The organization asserts it has saved $55 billion; however, the savings reported on their website Wednesday amounted to only $16.6 billion, not including an incorrectly labeled ICE contract.
DOGE initially estimated the value of this contract at $8 billion, but it turned out to be only $8 million. This mistake has now been corrected on the DOGE website.
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However, would returning this money to taxpayers positively impact the U.S. economy? Judge Glock, director of research at the Manhattan Institute, disagrees.
“It would heighten the deficit, boost immediate consumer spending, and result in inflationary effects, which we are currently trying to avoid,” Glock explained. “With a budget deficit exceeding $1 trillion annually, our priority should be on minimizing that deficit before distributing additional funds to citizens. Moreover, if we consider returning taxpayer dollars, we should focus on reducing taxes instead.”
This is not the first instance of the government proposing monetary distributions to the American public.
During the COVID pandemic, both the Trump and Biden administrations issued trillions in stimulus payments, which, according to Glock, contributed to rising inflation.
