WASHINGTON — Elon Musk, the richest individual in the world, asserts that American taxpayers could potentially receive a $5,000 refund from the federal government — despite no discernible backing in Congress, which oversees the nation’s finances.
Shortly after Musk proposed this idea, President Donald Trump mentioned to investors at a Miami conference on Feb. 19: “There’s even under discussion a new concept where we give 20 percent of the DOGE savings to American citizens and 20 percent goes toward reducing debt, because the figures are astounding, Elon.”
Musk and Trump’s comments thrilled Trump supporters on social media. “That would be a tremendous START,” wrote one X user under the name “MAGAmom.”
Conversely, others dismissed the idea as a “bad move” and labeled it a “steaming pile of horses–t.”
The right-leaning media platform Newsmax stated that the proposal aims to encourage the public to report government waste.
The U.S. DOGE Service Temporary Organization, created by Trump through an executive order, emerged from Trump and Musk’s campaign promise to form a Department of Government Efficiency with a goal of cutting up to $2 trillion in federal spending — an almost certainly unreachable amount that Musk has since retracted.
Who initially discussed DOGE refund checks?
Musk, a senior advisor to the White House and Trump’s leading reelection campaign benefactor, posted on Feb. 18 on his social media platform X indicating he would “consult with the president” about returning government savings directly to taxpayers.
The concept of a “DOGE Dividend” was proposed on X by the CEO of an investment firm who has reportedly advised Musk on his government savings initiative.
James Fishback, from Azoria, presented a four-page plan estimating that Musk and Trump could allocate 20% of $2 trillion in government savings among approximately 79 million U.S. taxpaying households, potentially sending around $5,000 to each. This proposal only accounts for “net payers of federal income tax” in 2025, meaning lower-income Americans would not benefit from a refund.
Can Musk and Trump actually identify $2 trillion in savings?
“Not even close,” Matt Dallek, a presidential and political historian at George Washington University, shared with States Newsroom during a Tuesday interview.
“While there are opportunities to save some funds, when compared to the overall federal budget, it amounts to a mere pittance,” Dallek explained.
The Trump administration has already dismissed thousands of federal employees, primarily probationary staff, though the precise number remains unclear. The White House, under Musk’s direction, eliminated positions and contracts related to diversity initiatives, effectively dissolved the U.S. Agency for International Development, and nearly shuttered the Consumer Financial Protection Bureau.
DOGE and the Trump administration have faced protests and lawsuits over the temporary organization’s access to sensitive data and employment records, leading to the dismissal of thousands of federal workers.
“These are primarily ideological targets that do not truly aim for genuine cost savings,” Dallek commented.
Most federal spending is directed towards Social Security, Medicare, and defense, sectors that Trump and lawmakers are hesitant to alter.
Democrats argue that House Republicans’ latest budget proposal also cuts funding for Medicaid, a joint federal-state program that offers healthcare to low-income Americans. Trump has indicated he does not wish to alter Medicaid benefits.
DOGE boasts questionable savings
DOGE, which is not an official federal department but an 18-month executive office initiative, claims on its website to have saved the government an estimated $65 billion through methods such as “fraud detection/deletion, contract/lease cancellations, contract/lease renegotiations, asset sales, grant cancellations, workforce reductions, programmatic changes, and regulatory savings.”
The New York Times reported on Tuesday that DOGE removed five significant “savings” from its original list even as total claims have surged to $65 billion.
DOGE.gov features a “wall of receipts,” where claims must be viewed individually, often revealing screenshots of what the temporary organization asserts it has cut.
Claim entries indicate DOGE canceled access to news subscriptions and other resources for federal employees, terminated numerous contracts, and ended leases for federal offices nationwide.
“Much of this is smoke and mirrors,” Dallek remarked.
“If you’re truly intent on saving money for the government, why would you terminate 7,000 IRS employees just as tax season arrives, which will undoubtedly impair the IRS’s ability to collect delinquent taxes?” he added.
An NPR analysis of over 1,100 entries on the DOGE website found that the temporary organization had significantly failed to meet its savings targets. The analysis, released on Feb. 19, found only $2 billion in actual savings.
On Tuesday, twenty-one employees resigned in protest from the U.S. DOGE Service, according to The Associated Press. This agency was formerly known as the U.S. Digital Service, focused on government technology, before Trump rebranded it.
Can Trump issue checks without Congressional approval?
In recent history, Americans have received refund or stimulus checks.
Both previous administrations, under Trump and former President Joe Biden, enacted laws that included direct payments to households as part of COVID-19 relief measures.
Former President George W. Bush issued rebate checks to taxpayers as part of his tax strategy, passed by Congress in 2001. Additionally, in response to the 2008 economic downturn, Bush distributed stimulus checks.
While experts debate whether presidents can independently authorize spending through executive orders, it’s likely that the Oval Office cannot directly issue payments to Americans without Congressional appropriation, similar to previous instances.
“Trump and Musk are pursuing a lot of actions that are probably illegal and/or unconstitutional, yet they continue to do so. However, if we consider the constitutional realities and the powers of Congress, sending checks to individuals is not something the administration can achieve unilaterally,” Dallek noted.
The White House has not yet responded to a request for clarification regarding the proposal to send direct payments to taxpayers.
Last updated 12:00 p.m., Feb. 26, 2025
