Could President Trump really issue DOGE stimulus payments? The proposition of $5,000 refunds from the ongoing effort to cut federal expenditures has been suggested.
However, you might want to hold off on expecting that bonus in your account. The Department of Government Efficiency, or DOGE, must ideally reach its savings target of $2 trillion for the refund to be viable. Achieving that goal is something even Elon Musk, a prominent figure for DOGE, indicated might not be feasible back in January.
Nevertheless, President Trump stated on Wednesday that the administration is contemplating distributing 20% of “DOGE savings” back to the public. This announcement followed a day after Musk mentioned he would discuss the proposal with Trump.
Even if the idea of $5,000 stimulus checks progresses, it would still require Congressional approval to allocate funds to taxpayers. Here’s the latest information on this matter.
Where did the proposal for $5,000 DOGE stimulus checks originate?
On February 14, “anti-woke” investor James Fishback, the CEO and co-founder of Azoria Partners, introduced the idea on X, advocating for $5,000 checks based on the anticipated $2 trillion in savings from DOGE, with the remainder directed towards reducing the national debt.
“American taxpayers deserve a ‘DOGE Dividend’: 20% of the savings generated by DOGE should be returned to hardworking Americans as a tax refund. After all, it was their money originally,” Fishback wrote.
He further encouraged, “@ElonMusk, let’s make this happen! It’s a way to restore trust in our government.”
Discussing the potential payout on CNN last Saturday, Fishback stated that a check of up to $5,000 would incentivize individuals to report waste, fraud, and abuse within their communities. “The more that DOGE saves, the larger their check will be,” he explained.
How would the $5,000 stimulus checks be distributed? Who would be eligible?
In 2020, Congress approved—a measure that President Trump signed— a $2 trillion bipartisan stimulus package aimed at addressing the economic challenges arising from the COVID-19 pandemic. This package included $1,200 payments to eligible individuals and $2,400 for most couples filing jointly, along with an additional $500 for each qualifying child under 17 years old.
These stimulus payments were sent to individuals who had filed tax returns in the previous two years or who were recipients of Social Security or veterans’ benefits.
The relief plan also encompassed financial support for small business loans and grants, alongside additional weekly unemployment benefits.
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What has President Trump articulated regarding DOGE dividend checks?
Trump spoke on the topic twice on Wednesday. “We’re contemplating returning 20% of the DOGE savings to American citizens and designating another 20% to reduce the debt,” Trump stated during the Saudi-sponsored FII PRIORITY Summit in Miami Beach on Wednesday.
Later, while on Air Force One, Trump added, “I love it. A 20% dividend for the savings we’re generating by tackling waste, fraud, and abuse,” as reported by The Associated Press.
He also emphasized that the dividend would serve as “an incentive for taxpayers to report issues that could lead to potential savings.”
FILE PHOTO: Elon Musk listens to U.S. President Donald Trump speak in the Oval Office of the White House in Washington, D.C., U.S., February 11, 2025. REUTERS/Kevin Lamarque/File Photo
What has Elon Musk remarked regarding the issuance of $5,000 DOGE stimulus checks?
Following Fishback’s suggestion about the DOGE dividend on X, Musk replied, indicating he would “check with the President.”
What is House Speaker Mike Johnson’s stance on DOGE dividend checks?
House Speaker Mike Johnson appeared skeptical about the DOGE dividend plan during his remarks at the 2025 Conservative Political Action Conference on Thursday.
He expressed skepticism, stating, “Essentially, that would be politically advantageous for us, since everyone receives a check,” Johnson pointed out. “However, considering our core principles, fiscal responsibility is vital for conservatives. We are faced with a $36 trillion federal debt and a significant deficit. We need to focus on addressing that.”
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What do economists think about $5,000 stimulus checks?
The prevailing sentiment among economists who have voiced their opinions is that a DOGE dividend may not be advisable.
Judge Glock, director of research at the Manhattan Institute, explained, “Such a move would exacerbate the deficit, spur immediate consumer spending, and lead to inflationary outcomes—something that is particularly undesirable right now,” as he shared with Scripps News.
He added that the funds would be better allocated to addressing the $1 trillion annual budget deficit and tax offsets instead.
Another concern regarding stimulus checks is inflation. If DOGE commences “distributing substantial payments to a large portion of the population, that could significantly amplify inflation, especially considering Trump’s imposition of tariffs—which inherently means higher costs for goods and services,” Jay Zagorsky, a professor from Boston University’s Questrom School of Business, noted to CBS News.
In contrast, Kevin Hassett, who previously served as Trump’s director of the National Economic Council, asserted on Thursday that the checks would not provoke inflation, arguing that the government had already earmarked the funds for spending.
“When we don’t use governmental funds and return it to the populace, if they spend that money, it balances out,” he stated, according to Investopedia. “However, if they save a significant portion, it would actually help reduce inflation.”
The discussion may become irrelevant as DOGE is unlikely to achieve its target of $2 trillion in savings, as suggested by Zagorsky. “I’m uncertain if those savings are attainable,” he remarked.
Recently, Musk claimed that DOGE had already saved taxpayers $55 billion. However, a mistake—representing the cancellation of an $8 million contract as yielding an $8 billion saving—indicated that the actual savings amounted to approximately $16.5 billion.
DOGE is unlikely to generate sufficient savings to issue checks “large enough” to incite inflation, according to Elaine Kamarck, a senior fellow in governance studies at the Brookings Institution, who shared her thoughts with The Associated Press. She described the notion of a DOGE dividend as “absurd.”
“There’s no substantial funding available, especially not enough to provide a meaningful return to taxpayers,” Kamarck remarked, highlighting her experience working with Vice President Al Gore in efforts to eliminate governmental waste during the Clinton era. “He simply makes statements,” she concluded, in reference to Musk.
Contributors: Fernando Cervantes Jr., Greta Cross, Joey Garrison, Jessica Guynn, Nick Penzenstadler, and James Powel.
Follow Mike Snider on Threads, Bluesky, and X: mikegsnider & @mikegsnider.bsky.social & @mikesnider.
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This article was originally published on USA TODAY: Will $5,000 DOGE stimulus checks become a reality? Insights for Ohioans.
