The individual who proposed the issuance of $5,000 “DOGE dividend” stimulus checks to Americans has provided details on the potential amount taxpayers could receive if the plan were enacted today.
Importance of the Proposal
The Department of Government Efficiency (DOGE) is responsible for minimizing the government’s operational expenses and has reduced several federal agencies to streamline the government.
This initiative to distribute $5,000 checks to American taxpayers using government savings has received endorsement from President Donald Trump and his wealthy ally, Elon Musk.
While the plans aim to refund a portion of these savings to U.S. taxpayers, no formal decisions have been made as of yet.
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Key Information
James Fishback, CEO of the Azoria investment firm and the mind behind the “Doge Dividend” proposal, spoke at the Republican Women’s Club of Duval in Jacksonville, Florida. He detailed how much DOGE has managed to save and how these savings could be converted into direct payments for American taxpayers.
“I was honored that the president supported this proposal I put forth called the DOGE Dividend,” Fishback stated.
“The DOGE Dividend is straightforward; it entails taking all the funds that DOGE has saved, which is anticipated to be substantial. It’s already $100 billion after just 52 days, translating to approximately $652 per taxpayer. That’s the perspective we need to adopt,” he explained.
Fishback highlighted the significance of concentrating on taxpayer-specific savings rather than merely emphasizing overall federal amounts.
According to the proposal, 20 percent of the savings generated by DOGE would be distributed directly to taxpayers via stimulus checks. Currently, with savings amounting to $115 billion, each taxpayer would receive roughly $142 if disbursed now, according to the DOGE website.
Fishback conveyed that as DOGE continues to trim costs, the potential payouts could rise considerably.
The proposal indicates that around 79 million American households could benefit from direct payments, encouraging the reporting of inefficiencies to further enhance overall savings.
However, nearly 40 percent of the contracts terminated by DOGE so far are unlikely to produce any financial gains for the government, raising alarms regarding the program’s effectiveness.
Critics argue that while the stimulus check initiative is ambitious, it may lead to inflation and could be seen more as a political maneuver than a true fiscal reform.
Furthermore, the DOGE payment initiative faces potential challenges, as recent fiscal analyses show that the anticipated savings from Musk’s department have not yet appeared.
The Congressional Budget Office (CBO) reported that the federal deficit grew by 5 percent in February, largely due to a 7 percent increase in spending compared to the same period last year.
The DOGE stimulus plan aims to allocate 20 percent of the department’s savings to taxpayers and another 20 percent to paying down the national debt. It forecasts $2 trillion in savings over 18 months, which would enable $400 billion in direct payments to about 79 million taxpayers, translating to $5,000 checks each.
Nevertheless, the latest CBO data raises questions about the plan’s feasibility. In the first five months of Fiscal Year 2025, the federal government borrowed $1.1 trillion, including $308 billion in February alone.
Reactions to the Proposal
James Fishback previously told Newsweek: “In the long run, this will reshape the economy into a streamlined free market where anyone can work diligently, earn a living, and pay taxes, assured that their contributions are handled responsibly, honestly, and with optimal efficiency.”
Donald Trump remarked at an investment conference in Miami in February: “There’s even a new concept under review, where we distribute 20 percent of the Doge savings to American citizens, while 20 percent is allocated for debt repayment.”
Brendan Duke, senior director for Federal Budget Policy at the Center on Budget and Policy Priorities, told Newsweek: “A DOGE dividend is entirely impractical—the CBO demonstrated that both federal spending and deficits last February were greater than the same period the previous year, indicating that any savings DOGE has achieved are superficial.
“Significant savings might not even be permissible legally since Congress controls federal agency expenditure—not Elon Musk or even Donald Trump. The recently passed government spending bill mainly locks in Biden-era expenditures for agencies targeted by DOGE for major cuts, such as the Department of Education. All signs suggest that DOGE’s savings are virtually non-existent at this point, and actual savings either require Congressional approval or would be illegal.”
Lance Roberts, chief investment strategist and economist at RIA Advisors, previously told Newsweek: “If demand increases without a corresponding rise in supply, inflation will ensue. A tax credit would be more advantageous in assisting the bottom 50 percent of income tax payers who contribute little to no taxes (they receive a refund) but wouldn’t generate as significant a demand surge.”
Future Developments
It remains uncertain whether Fishback’s proposal will transition into formal government policy or when Americans might start receiving checks.
Although the Doge Dividend proposal has attracted backing from influential individuals such as Trump and Musk, it is still in the proposal phase. Additional legislative steps would be necessary to formalize and distribute the checks, with the earliest possible arrival projected for 2026.
Update 3/17/25, 9:15 a.m. ET: This article has been modified to include comments from Duke.
