By Chris Matthews
Ultimately, Congress will decide
Elon Musk distributed checks of one million dollars each to two voters in Wisconsin on Sunday night as part of his efforts to garner support for a Republican candidate vying for a position on the state Supreme Court.
These checks, which some critics argue may breach campaign finance regulations, are funded through Musk’s personal finances. Nonetheless, many Americans are speculating if the Tesla (TSLA) CEO will lead an initiative to distribute rebates to taxpayers using savings attributed to the so-called Department of Government Efficiency, which Musk advises for the Trump administration.
Last month, Musk mentioned he would discuss with President Donald Trump the notion of using savings from DOGE to finance taxpayer rebates, and he was queried about it once again at a recent town hall meeting in Green Bay, Wisconsin.
During Sunday’s gathering, Musk did not dismiss the possibility that DOGE savings could be transformed into rebate checks, although he acknowledged that the ultimate decision is not in his hands.
“The decision on whether specific checks are issued is largely dependent on Congress and possibly the president,” Musk stated. “However, regardless of whether a check is issued, cutting down on wasteful spending will benefit the economy.”
While economic stimulus checks have become a staple of modern fiscal policy, their use as direct payments is relatively recent and has primarily been deployed to invigorate the economy following a recession or economic downturn.
The practice originated during the George W. Bush administration in the early 2000s, as a response to the dot-com bust and the ensuing recession.
Bush revisited this approach in 2008 amidst the housing market collapse, authorizing payments of up to $600 for individuals and $1200 for couples. Additionally, President Barack Obama enacted legislation in 2009 that issued stimulus checks to numerous Americans. Both President Trump and President Joe Biden utilized similar payments during their presidencies to support the economy in response to the COVID-19 pandemic.
The effectiveness of such payments in promoting economic growth remains a topic of debate among economists. Nonetheless, historical precedent indicates that Congress must approve these payments, as the Constitution grants the legislative branch authority over taxation and expenditure.
It is also unclear whether DOGE is delivering the amount of savings to U.S. taxpayers that it claims. Although their website asserts savings of $140 billion, approximately $870 per taxpayer, this figure contains inaccuracies and often lacks sufficient information for validation.
Real-time spending reports from the Treasury Department suggest that federal expenditure in 2025 is higher than in 2024, which raises concerns about the DOGE claims.
Meanwhile, congressional Republicans are formulating a tax bill that is anticipated to, at the very least, extend Trump’s 2017 tax cuts, which may incur a cost exceeding $4 trillion.
GOP lawmakers are also grappling with how to incorporate Trump’s pledges to eliminate taxes on tips, overtime, and Social Security income, a change that could elevate the total expense of the legislation to over $11 trillion.
Henrietta Treyz, director of economic policy at Veda Partners, noted in a client communication on Sunday that congressional Republicans are cautious about the significant cuts to programs like Medicaid that would be necessary to finance these tax reductions, indicating that any savings from DOGE may need to be allocated toward reducing the deficit rather than issuing taxpayer refunds.
“Senate Republicans,” Treyz remarked, “are communicating to their members that the extension of the 2017 tax cuts will not have offsets.”
-Chris Matthews
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03-31-25 1214ET
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