US President Donald Trump suggested that some savings from his federal cost-cutting effort being overseen by billionaire Elon Musk could be sent back to US taxpayers, with another portion being used to reduce the national deficit.
“There’s even under consideration a new concept where we give 20 per cent of the Doge savings to American citizens, and 20 per cent goes to paying down debt, because the numbers are incredible,” Mr Trump said, referring to his Department of Government Efficiency's effort on Wednesday in an address to an investment summit backed by Saudi Arabia’s sovereign wealth fund in Miami.
Mr Trump’s idea has been floated previously by Mr Musk, who attended the summit. Mr Musk responded this week to a post on his social media platform X suggesting that Mr Trump announce a “Doge dividend” with a $5,000 tax refund cheque sent to taxpaying households, saying he would “check with the President”.
The remarks were the latest signal that Mr Trump is working to justify his Doge effort, which has sent shock waves through Washington as Mr Musk’s moves to slash the federal government’s spending and workforce invite legal challenges and questions over the effort’s authority and powers.
Critics have argued that the slash-and-burn style of cancelled contracts and worker layoffs risks crippling critical government services while doing little to deliver long-term taxpayer savings. And Mr Trump and Mr Musk have repeatedly overstated the amount of realised taxpayer savings, casting doubt on whether ambitious goals to significantly slash spending could be met.
While the White House has claimed some $55 billion in savings so far, itemised documents posted by the department suggest the actual savings are only a fraction of that amount. Sending 20 per cent of the roughly $8.6 billion of Doge savings the department has so far listed on its website would amount to about $11 per taxpayer.
Still, about 75,000 federal workers took an offer for a buyout offer, Mr Trump said, arguing it would provide long-term savings to the government. And Mr Trump and Mr Musk have argued that the biting cuts are necessary given the nation’s debt.
The US recorded an annual deficit of $1.8 trillion in the last fiscal year, and deficits are on track to rise over the next decade, adding further to government red ink. The US would need to eliminate those budget shortfalls before even beginning to make a dent in its $29 trillion debt load.
Mr Trump’s address to the Future Investment Initiative Institute summit drew members of the business elite, to whom he pitched a vision of a nation revitalised by his economic policies. Attendees at the conference included Robert Smith of Vista Equity Partners, Josh Harris of 26North Partners, WeWork founder Adam Neumann and Middle East envoy and real estate investor Steve Witkoff.
“The United States is back and open for business,” Mr Trump said. “The economic engines have come roaring back to life in just a very short period of time.”
Mr Trump also warned those who operated foreign companies about coming tariffs, and said that he would “probably” impose levies on lumber in addition to his previously announced plans to hit semiconductors and pharmaceuticals. Mr Trump later told reporters aboard Air Force One that he was thinking about a 25 per cent tariff on lumber and that the import levy could come around April 2.
Earlier in the week, Mr Trump suggested he was considering a 25 per cent tariff on key industries that would be added on top of his previously announced reciprocal tariff regime, which is pegged to existing tariffs and non-tariff barriers that other countries impose on US exports.
“If they don’t make their product in America, then they, very simply, they have to pay a tariff,” the President said.
His return to the White House has seen Wall Street and corporate leaders flock to win his favour with pledges of sizeable US investments. Many of those projects have been announced at the White House or at Mr Trump’s Mar-a-Lago estate in Florida, providing those executives a photo opportunity with the president.
Many companies “want to come to the White House and have a little news conference”, Mr Trump said, adding “$10 billion or more, and I’m there”.
Mr Trump also highlighted his administration’s focus on boosting the artificial intelligence and cryptocurrency sectors, saying he was “committed to making America the crypto capital”.
Others attending the summit included Citadel chief executive Ken Griffin, former Google chief executive Eric Schmidt, Uber Technologies co-founder Travis Kalanick and New York Mets owner Steve Cohen.
