DOGE stimulus floated by Trump, Elon Musk gets lukewarm response from Johnson
Speaker Mike Johnson, R-La., expressed his disapproval of a proposal to distribute stimulus checks to Americans using funds saved by the Department of Government Efficiency (DOGE). He emphasized that redirecting the funds towards reducing the national debt would align better with conservative principles of fiscal responsibility.
During a session at the Conservative Political Action Conference (CPAC), Johnson acknowledged the political appeal of providing stimulus checks but stressed the importance of addressing the $36 trillion federal debt and the significant deficit of over $838 billion for fiscal year 2025. He emphasized the need to prioritize paying down the national debt as a core conservative principle.
President Donald Trump had suggested allocating 20% of DOGE-led savings to American taxpayers during a speech at the FII Priority Summit in Miami. Billionaire Elon Musk, leading DOGE’s efforts to cut federal spending by $2 trillion, indicated his willingness to explore the proposal in collaboration with the president.
In a separate interview with Newsmax, Johnson cautioned against the possibility of the largest tax increase in U.S. history if Trump’s Tax Cuts and Jobs Act (TCJA) from 2017 were not extended before expiring at the end of the year. Congressional Republicans are working to extend the tax cuts and advance defense and border security priorities through a comprehensive bill using the budget reconciliation process.
The reconciliation process allows for passage of a significant budget bill with a simple majority in both the Senate and House, circumventing the usual two-thirds threshold for Senate approval. Johnson highlighted the need for regulatory reform and streamlining bureaucracy in the proposed bill, which is crucial for success given the narrow majority in the House.
Extending Trump’s tax cuts is projected to incur costs exceeding $4.5 trillion, underscoring the financial implications of the proposed measures. Johnson’s stance reflects a commitment to conservative fiscal principles and responsible budget management in addressing the nation’s economic challenges.
Elizabeth Elkind, a politics reporter for Fox News Digital covering the House of Representatives, provides insights into the evolving policy discussions and legislative priorities shaping the national agenda. Stay informed on the latest developments by following her on Twitter at @liz_elkind and sharing tips at elizabeth.elkind@fox.com.
