Trump Considers DOGE Savings: 20% Back to Americans?

Aakhir Tak – In Shorts

Donald Trump proposed returning 20% of DOGE’s savings to Americans.
The remaining 20% would be used to reduce the federal debt.
The idea originated from businessman James Fishback.
DOGE aims to achieve $2 trillion in savings by 2026.
DOGE has claimed $55 billion in savings to date, but skepticism remains.

Aakhir Tak – In Depth

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Donald Trump has stated his administration is considering a proposal to return 20% of the savings identified by the Elon Musk-led Department of Government Efficiency (DOGE) to American citizens. Concurrently, another 20% would be allocated toward reducing the federal government’s debt. Trump’s DOGE savings proposal is generating significant discussion.

A New Concept Under Discussion

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Speaking at a gathering of global financiers and tech executives hosted by Saudi Arabia’s sovereign wealth fund in Miami, Trump described the idea as a “new concept” currently under discussion within his administration.

“[We are considering] a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt because the numbers are incredible. So many billions, hundreds of billions are being saved…so we’re thinking of giving 20% back to the American people,” Trump stated.

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The Origin: James Fishback’s Proposal

The idea originated from businessman James Fishback, who shared a four-page memo on X on Tuesday proposing a “DOGE dividend.”

Musk took notice of this proposal and responded, “Will check with the President.”

Fishback’s memo suggests allocating 20% of DOGE’s savings—an estimated USD 400 billion—to distribute USD 5,000 checks to all tax-paying households after DOGE concludes its operations in July 2026.

This estimate is based on DOGE achieving USD 2 trillion in savings, a scenario Musk describes as a “best-case outcome,” with the primary goal set at USD 1 trillion.

DOGE Claims Significant Savings

Trump’s remarks followed DOGE’s claim that it had saved billions of dollars since he assumed office on January 20. The department, spearheaded by Musk, has aggressively reduced government contracts, eliminated federal jobs, and sold off government assets in a sweeping cost-cutting effort.

According to DOGE, these measures have resulted in USD 55 billion in savings. However, the agency acknowledged that itemized figures for contract cancellations and lease terminations accounted for only a fraction of that total. The department affirmed that it would continue to release data to substantiate its savings claims.

Persistent Skepticism

Despite DOGE’s assertions, skepticism persists regarding the extent of its reported financial impact. A Reuters analysis of partial data published by the agency revealed that the majority of identified savings stemmed from terminating relatively small contracts, including those for computer systems and workforce training.

To date, the initiative has cut USD 8.5 billion in federal spending, with individual contract cancellations averaging approximately USD 7.7 million. The broader claim of USD 55 billion in savings, however, has yet to be fully substantiated, raising concerns about the methodology used to calculate the remaining funds.

Controversies Surrounding the Initiative

The cost-cutting initiative has not been without controversy. Since its inception, DOGE has drastically reshaped the federal workforce, leading to the layoff of thousands of employees and the closure of key programs.

The agency reported slashing USD 6.5 billion from the US Agency for International Development (USAID), effectively dismantling its operations.

Additionally, it cut USD 501 million from the Department of Education and USD 232 million from the Social Security Administration, including a major contract supporting the agency’s technology infrastructure. Nevertheless, many of these contracts were long-term agreements with funds already disbursed, making it unclear how much of the reported savings will translate into actual budget reductions.

Trump had previously defended DOGE’s decision-making, particularly concerning its controversial move to cancel a USD 21 million fund designated for “voter turnout” efforts in India. Just days earlier, he had questioned the rationale behind such financial support, arguing that India’s economic position and trade policies did not warrant US funding for its electoral initiatives.

“Why are we giving USD 21 million to India? They have a lot more money. They are one of the highest-taxing countries in the world in terms of us; we can hardly get in there because their tariffs are so high. I have a lot of respect for India and their Prime Minister, but giving USD 21 million for voter turnout?” Trump said after signing executive orders at Mar-a-Lago on Tuesday.

Aakhir Tak – Key Takeaways to Remember