Trump says DOGE could return 20% of its savings directly to taxpayers. That could reignite inflation

President Donald Trump said he is considering a plan that would give 20% of savings identified by Elon Musk’s Department of Government Efficiency (DOGE) back to Americans, potentially complicating the country’s ongoing battle with elevated inflation.

President Donald Trump said he is considering a plan that would give 20% of savings identified by Elon Musk’s Department of Government Efficiency (DOGE) back to Americans, potentially complicating the country’s ongoing battle with elevated inflation. “There’s even a — under consideration, a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt,” Trump said in remarks at the FII Priority Summit in Miami on Wednesday. The idea of a so-called “DOGE Dividend,” a check sent to every taxpayer and funded with DOGE savings, was publicly floated on Tuesday by a user on Musk’s social media platform, X. Musk replied to the post that he would “check with the President.” While Trump didn’t share specific details, the payout threatens to re-heat the US economy at a time when inflation has remained stubbornly above the Federal Reserve’s ideal target of 2% – it rose to 3% in January, the highest level since June 2024. This wouldn’t be the first time that Americans received payments directly from the federal government. During the pandemic, more than 476 million payments totaling $814 billion went out to households. During Trump’s first presidential term, qualifying Americans received $1,200 in March 2020 and $600 in December 2020. When former President Joe Biden assumed office in March 2021, another round of relief checks totaling $1,400 was sent out.