Could $5,000 DOGE stimulus checks really happen? Here’s what we know.
The idea of $5,000 stimulus checks coming from the Trump administration to decrease federal spending has been proposed, but its feasibility remains uncertain.
Checks led by Elon Musk’s DOGE initiative may find their way into the hands of New Yorkers, yet the ambiguity surrounding the particulars has left many with more questions than answers. Here’s what we currently understand about these potential payments and who might qualify for them.
What is a ‘DOGE dividend’?
President Donald Trump suggested he is contemplating a strategy to distribute $5,000 stimulus checks to taxpayers in the form of a ‘DOGE dividend’ during a recent speech.
This ‘DOGE dividend’ notion was initially proposed by James Fishback, CEO of Azoria investment firm, on Musk’s social media platform X, advocating that Trump and Musk “should declare a ‘DOGE Dividend’ — a tax refund check dispatched to every taxpayer, funded solely from the total savings achieved by DOGE.” Musk responded, “Will check with the President.”
“The figures are astounding, Elon. So many millions, billions — hundreds of billions,” Trump expressed in his address. “And we’re considering giving 20% back to American citizens, and 20% to repay our debt.”
As of the 2024 fiscal year, the US national debt has reached $35.5 trillion, a $1.4 trillion increase from 2023, according to the Treasury Department, while the US debt-to-GDP ratio increased by two percentage points in fiscal year 2024 compared to 2023.
Where would the ‘DOGE dividend’ funds originate?
During last week’s speech, Trump clarified that it would involve taking 20% of the savings identified by Musk’s Department of Government Efficiency (DOGE) and redistributing it to American taxpayers.
What exactly is DOGE?
The Department of Government Efficiency (DOGE), formally known as the U.S. DOGE Service Temporary Organization, is an initiative initiated by Trump and overseen by ‘special government employee’ Musk.
The primary goal of DOGE is to drastically cut federal spending, deregulate, and “modernize federal technology and software to enhance governmental efficiency and productivity.”
How much has DOGE managed to save?
When introduced, DOGE aimed to save up to $2 trillion annually. DOGE claims to have already saved $55 billion in government cuts, although this figure has not been independently verified.
The agency has implemented significant cuts across various federal agencies, which includes large-scale layoffs of federal workers. Agencies that have experienced budget cuts include the United States Agency for International Development (USAID), the Department of Education, the National Institutes of Health, the Centers for Disease Control and Prevention, and the Consumer Financial Protection Bureau.
Will you be eligible for a possible ‘DOGE dividend’?
Although Trump did not provide more details regarding the potential ‘DOGE dividend’ or its feasibility, Fishback’s proposal explained that the ‘DOGE dividend’ would be a refund “allocated only to tax-paying households” and would be limited to households earning above a certain income level, contrasting the pandemic-related checks that were distributed “indiscriminately.”
Fishback further elaborated that unlike pandemic stimulus checks which were financed through deficits, DOGE checks would not contribute to inflation as they would be “exclusively financed through DOGE-driven savings.”
“Many low-income households essentially received transfer payments that constituted 25 to 30% of their annual income,” Fishback highlighted regarding the pandemic stimulus checks, noting, “This would be directed solely to households that pay federal income tax, which implies they typically spend less of such a transfer and save more.”
The proposed refund would only be issued to households that are net-income taxpayers — individuals who contribute more in taxes than they receive back — thus excluding lower-income Americans from qualifying for the return, as reported by news outlets. The Pew Research Center notes that the majority of Americans with an adjusted gross income below $40,000 effectively pay no federal income tax.
A dividend typically refers to the distribution of earnings by a corporation to its shareholders, whereas a refund is a return payment to someone who has previously paid for a service or product. In contrast, a stimulus check is a direct payment intended to encourage spending and stimulate the economy by injecting money directly into consumers’ hands.
How are NY officials addressing the recent DOGE initiatives?
In light of the Buffalo National Labor Relations Board (NLRB) office staff discovering their lease termination was announced on the DOGE website and receiving conflicting information regarding their job statuses, Senate Minority Leader Chuck Schumer has decided to intervene.
Schumer disclosed that he has dispatched a letter to NLRB’s acting General Counsel William B. Cowen to inquire about the situation, including details on where local employees would work if the office were to shut down.
“The Buffalo NLRB office is essential in safeguarding workers’ rights throughout Upstate NY,” Schumer declared in a statement. “The reckless DOGE initiative has already put it on the chopping block, leaving workers in uncertainty regarding their future, which is why we require immediate answers. We must ensure the NLRB continues its crucial role in protecting labor rights in Buffalo and across Upstate New York.”
Moreover, Schumer had successfully advocated against DOGE’s expulsion of World Trade Center Health Program employees, who provide services to 9/11 survivors and first responders, just last week.
In tandem, Governor Kathy Hochul announced a new ‘You’re Hired’ initiative aimed at recruiting public service workers into state positions in response to the recent federal government layoffs by DOGE.
“While the federal government may say, ‘You’re fired,’ here in New York, we proclaim, ‘You’re hired.’ We truly value federal employees,” Hochul stated. “Regardless of your skillset, we appreciate public service … Join our New York State family.”
Those interested in exploring potential job opportunities can visit ny.gov/wewantyou.
Contributing: USA Today Network
Emily Barnes covers consumer issues for the USA TODAY Network’s New York Connect Team, focusing on scams and recalls. Follow her on Twitter and Instagram @byemilybarnes. Reach her at [email protected].
