United States President Donald Trump has announced a proposal to return a portion of the savings generated by Elon Musk’s cost-cutting initiative to American citizens while also reducing the federal debt. Speaking at an investment summit hosted by Saudi Arabia’s sovereign wealth fund in Miami Beach, Florida, Trump suggested allocating 20% of the identified savings as payouts to the public and another 20% toward paying down the country’s $36 trillion debt.
Addressing the Future Investment Initiative (FII) Priority Summit, Trump praised the savings achieved by Musk’s Department of Government Efficiency (DOGE), saying, “The numbers are incredible, Elon. So many billions of dollars … hundreds of billions.” Trump continued, “We’re thinking about giving 20 percent back to the American citizens, and 20 percent down to pay back debt.”
The announcement follows a proposal from DOGE adviser James Fishback, CEO of investment firm Azoria, who introduced the idea of a “DOGE dividend.” Fishback’s memo, posted on X (formerly Twitter), estimated that if Musk’s task force manages to save $2 trillion by July 2026, every tax-paying household could receive a $5,000 check.
Musk, CEO of Tesla and SpaceX, responded on X, stating he would “check with the President” regarding the proposal.
Despite Trump and Musk’s optimism, experts have expressed doubts about the feasibility of the plan. Guo Xu, an associate professor at UC Berkeley Haas, questioned the initiative, saying, “This seems like a populist measure designed to make the crippling of our federal government capacity more appealing.” He argued that instead of cutting government programs for one-time payouts, efforts should focus on strengthening infrastructure, science, and national security.
Similarly, Canice Prendergast, a professor at the University of Chicago Booth School of Business, voiced concerns about the practicality of DOGE’s savings. “My guess is that at least 100 percent of the ‘savings’ will be used to pay severance to workers they let go,” he said, noting that truly identifying and eliminating waste without disrupting essential services is a complex challenge.
DOGE, which is not an official government department, claims to have already achieved $55 billion in savings but has not released detailed documentation to verify the figure. On Monday, the initiative published a list of contracts it canceled, totaling $16 billion in savings. However, the report contained errors, including an $8 million contract with Immigration and Customs Enforcement mistakenly reported as $8 billion.
During Trump’s campaign, Musk had initially predicted $2 trillion in potential savings but later revised his estimate, suggesting he might be able to save about half that amount. Given that most of the federal budget is allocated to programs such as Social Security, Medicaid, and Medicare areas that remain politically untouchable many experts believe that DOGE’s cost-cutting impact may be overstated.
With skepticism mounting and details yet to be clarified, Trump’s proposal remains a highly debated topic. Whether Americans will actually see a DOGE-funded payout or a meaningful reduction in national debt remains to be seen.