Trump Gives Green Light to Return 20% of Government Savings to Taxpayers
President Donald Trump has officially endorsed a proposal to distribute what’s being called “Doge dividend” checks to American households using funds recovered through government spending cuts. Speaking at an investment conference in Miami on Wednesday, Trump confirmed his support for the plan that could potentially put $5,000 into millions of American households.
“There’s even under consideration a new concept where we give 20% of the Doge savings to American citizens and 20% goes to paying down debt,” Trump told attendees. When later asked about the proposal by reporters aboard Air Force One, the President was even more direct: “I love it.”
The unprecedented proposal would redirect 20% of funds recovered by the Department of Government Efficiency (Doge) back to taxpayers in the form of direct payments.
How the ‘Doge Dividend’ Would Work
The concept was initially proposed by James Fishback, CEO of investment firm Azoria, who suggested that 20% of all money saved through Doge’s cost-cutting measures should be returned directly to taxpayers. Elon Musk, who heads Doge, expressed support for the idea earlier this week, promising to discuss it with the President.
According to current projections, if Doge reaches its ambitious target of $2 trillion in government savings, approximately $400 billion would be distributed to roughly 79 million American households that pay federal income taxes.
This would translate to checks of approximately $5,000 per household.
Unlike traditional stimulus checks, these payments would not represent new government spending but rather a return of taxpayer dollars that had been previously misallocated, according to proponents of the plan.
Current Status of Doge Savings
The Department of Government Efficiency, created through executive order shortly after Trump took office, has already identified significant savings across federal agencies.
According to the Doge live tracker (www.dogetracker.com), the department has recovered approximately $55 billion since January 21, 2025 — representing about 2.75% of their ambitious $2 trillion goal.
Major sources of savings identified so far include:
- United States Agency for International Development (USAID)
- Department of Education
- Social Security Administration
However, some financial analysts have questioned whether these figures are accurate. The New York Times recently reported that Doge had mistakenly claimed to have cut an $8 billion contract that was actually only worth $8 million, raising questions about the accuracy of their reporting.
Examples of Government Waste Being Targeted
During his Miami speech, Trump highlighted several examples of the kind of wasteful spending Doge is targeting:
- “$101 million for 29 diversity, equity, and inclusion contracts at the Department of Education”
- “$20 million for Sesame Street performances in Iraq”
- “$29 million for sex change operations in Guatemala”
- “$520 million for a consultant” (Trump remarked, “I want to know who that consultant is”)
“These are just some taken at random,” Trump told the audience. “There are much worse examples than this. I was just looking at them before the speech, and I can tell you they were much worse.”
Political Strategy Behind the Dividend Plan
Trump suggested that the dividend plan would serve a dual purpose: returning money to taxpayers while also incentivizing citizens to help identify government waste.
“By doing this, Americans will tell us where there is waste. They’ll be reporting it themselves. They participate in the process of saving money,” Trump explained.
This approach could create a powerful constituency in favor of Doge’s cost-cutting measures, as Americans would have a direct financial stake in the department’s success.
Addressing Social Security Concerns
The administration has also highlighted potential fraud in the Social Security system as a major target for Doge.
“We’re also finding tremendous abuse, waste, and fraud in Social Security,” Trump said. “What’s happening there is going to be one of the great potential scandals in history.”
According to claims made by Musk, there are over 4.7 million Social Security numbers for people aged 100-109 years old in the system, with millions more for even older age brackets, including one person allegedly listed as 360 years old.
In a recent interview with Fox News, Musk emphasized the importance of addressing government spending: “If we don’t solve the deficit, there won’t be money for medical care, there won’t be money for Social Security… America will go bankrupt if this is not done.”
Congressional Approval Required
Despite presidential endorsement, the “Doge dividend” proposal would require congressional approval before any checks could be issued to American households.
Budget experts have noted that measurable savings would need to be verified through the Office of Management and Budget and the Congressional Budget Office, and Congress would need to authorize both the repayment to taxpayers and the method of distribution.
The proposal could face resistance from Democrats who have been critical of Doge’s approach to cost-cutting. Some Republican lawmakers have also expressed preference for directing all savings toward debt reduction rather than issuing checks.
Senator Elizabeth Warren and Representative Adam Schiff have already raised concerns about Doge’s efforts, particularly regarding cuts to the Consumer Financial Protection Bureau, which would be the agency in charge of regulating the planned payments arm of Musk’s X social media platform.
Inflation Concerns
Some economists have raised concerns about the potential inflationary impact of distributing $5,000 checks to millions of American households.
According to research conducted by the Federal Reserve Bank of St. Louis, the pandemic-related stimulus contributed to an increase in inflation of about 2.6 percentage points. With the 12-month Consumer Price Index currently at 3%, any significant influx of cash to consumers could potentially push inflation higher.
However, supporters of the proposal argue that unlike previous stimulus measures, the Doge dividend would not represent new government spending but rather a redirection of already-allocated funds.
What This Means for Americans
If approved, the Doge dividend checks could provide a significant financial boost to American households at a time when many are still struggling with elevated prices for everyday essentials.
The timing of any potential payments remains unclear, as does the question of who would qualify and how the funds would be distributed. The administration has not yet specified whether non-taxpayers, such as Social Security recipients who don’t file tax returns, would be eligible for the payments.
For the average American household, a $5,000 payment could help with:
- Paying down personal debt
- Home repairs or improvements
- Vehicle purchases or repairs
- Building emergency savings
- Covering rising costs of essentials
Next Steps for the Proposal
As this proposal continues to develop, several key hurdles remain:
- Verification of actual savings achieved by Doge
- Congressional authorization of the payment plan
- Determination of eligibility requirements
- Creation of a distribution system
