A resurfaced claim on social media alleges that Elon Musk’s Department of Government Efficiency (DOGE) has halted annual royalty payments of $2.6 million to former President Barack Obama due to the association of his name with Obamacare. This claim, though gaining traction online, is entirely false. Multiple reputable fact-checking sources, including Snopes and Times Now Digital, have thoroughly debunked this narrative, confirming that Obama never received any such payments.

Read more: Fact-Check: Obama Birth Certificate Conspiracy Resurfaces In Viral Video

Barack Obama and Obamacare
Barack Obama and Obamacare

Origins of the Claim

The rumor that President Obama profited from royalties associated with "Obamacare" first emerged in 2017, early into Donald Trump's presidency.

The initial claim suggested that Obama had trademarked the term "Obamacare" and was receiving millions of dollars in royalty payments each year from the U.S. Treasury’s general fund. According to the false report, each time the term appeared in official texts or on health exchange websites, the Obamas would earn 41 cents. This claim originated from a fake report on the website "Last Line of Defense," a site notorious for spreading misinformation and satirical news presented as factual reporting.

The Snopes Investigation

Snopes, a prominent fact-checking organization, conducted an investigation into these claims in 2017. Their findings were unequivocal: former President Obama did not trademark the term "Obamacare," and no royalty payments were ever made to him concerning the Affordable Care Act (ACA).

The claim was categorized as false, stemming from a fabricated story intended as satire. Despite the clear debunking, the claim has resurfaced in 2025, now attributing the cessation of these non-existent payments to DOGE.

Understanding Trademarks and Royalties

A deeper look into U.S. trademark law further discredits the claim. The U.S. Patent and Trademark Office (USPTO) enforces stringent rules regarding the use of personal names in trademarks. According to Section 2(c) of the Trademark Act, trademarks that include the name, portrait, or signature of a particular living individual cannot be registered without that person’s written consent.

Applications to trademark "Obamacare" have consistently been rejected, as they lacked the required consent from President Obama. Additionally, as the term "Obamacare" is a widely recognized nickname for the Affordable Care Act, it is considered a public domain term not subject to royalties.

What Is DOGE and What Does It Do?

The Department of Government Efficiency (DOGE) is an initiative introduced under former President Donald Trump's administration, with Elon Musk appointed to spearhead the effort. The department's mandate is to optimize government operations, eliminate wasteful spending, and introduce private-sector efficiencies into federal management.

Despite DOGE’s focus on budgetary efficiency, there is no evidence suggesting that the department has the authority to manage or stop financial transactions related to healthcare laws or individual payments to former presidents. Furthermore, since no royalty payments were ever made to Obama, the premise of DOGE stopping these payments is fundamentally flawed.

The Political and Social Context

The revival of this claim appears to be part of a broader pattern of misinformation, often targeting high-profile figures like Obama and Musk. The blending of real government initiatives with fictional narratives can create confusion among audiences, especially when shared widely on social media platforms.

Such claims may serve to fuel political narratives or generate engagement through sensationalized stories, but they lack a basis in truth.

Public opinion pieces have also emerged, criticizing the spread of such misinformation. In a letter to the editor, Susan Gessford condemned the alleged illegal activities involving federal computer systems and criticized the influence of unelected individuals over federal operations. She called on Congress to address these issues, expressing concerns about the compromise of sensitive data and the unchecked power of Musk's employees.

Official Responses

Treasury Secretary Scott Bessent addressed concerns regarding DOGE's access to federal payment systems, clarifying that while DOGE has been granted read-only access to the U.S. Treasury's payment system codes, it does not have the authority to alter or halt payments. Bessent emphasized that decisions to stop payments are made by respective agencies, not through the Treasury's payment system.

He stated, "Elon Musk's Department of Government Efficiency (DOGE) has been granted read-only access to the U.S. Treasury's payment system codes, but it will not affect government payments, including Social Security and Medicare."

Conclusion

The assertion that Elon Musk’s DOGE has ceased $2.6 million in royalty payments to Barack Obama for Obamacare is a complete fabrication. Barack Obama has never received royalties for the term "Obamacare," as he does not own a trademark on it. The misinformation stems from a debunked satirical story from 2017, now repurposed with a new twist involving DOGE. When encountering such claims, it is crucial to verify information with credible sources and remain vigilant against the spread of false narratives.

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