President Donald Trump seems to like the idea of distributing the money saved from laying off thousands of federal employees to the American people. Reportedly, Trump said Wednesday that he likes the idea of giving some of the savings from Elon Musk's Department of Government Efficiency (DOGE) back to U.S. citizens as a kind of dividend.
"They'll be reporting it themselves," Trump said. "They participate in the process of saving us money."
READ: Will Vivek Ramaswamy withdraw from DOGE? (January 20, 2025)
After laying off thousands of federal employees through Elon Musk-led DOGE, Trump plans to give part of the savings back to the citizens of the country. It is still not clear whether this payment will be a one time thing or if it will be in lieu of a salary.
In 2025, the U.S. federal government began a significant round of layoffs affecting thousands of employees across various departments. Approximately 10,000 workers were let go, primarily targeting probationary employees with fewer protections.
Agencies impacted include the Internal Revenue Service (IRS), reducing its workforce by cutting around 7,000 employees, which could affect tax collection and compliance efforts in the upcoming tax filing season.
The Department of Defense (DoD) is undergoing an 8% budget cut over five years, leading to further staff reductions. Additionally, the National Institutes of Health (NIH) faced administrative cost cuts, though some layoffs were temporarily halted due to legal challenges.
READ: DOGE leaders Elon Musk, Vivek Ramaswamy target 94% of remote federal workers (December 9, 2024)
These layoffs have raised concerns about the potential impact on public services with lawsuits filed over the legality of the mass reductions. The figures may not be exact but a variety of reports have claimed that thousands of federal employees have indeed been laid off.
Reportedly, as Trump flew back to Washington D.C. aboard Air Force One, he was asked by a reporter about the plan floated by Musk. "I love it," the Republican president told reporters on the plane.