There are doubts about the viability of a proposal from the Department of Government Efficiency (DOGE) to distribute $5,000 to taxpaying households throughout the U.S.
Importance of the Proposal
President Donald Trump and government appointee Elon Musk have both indicated that they are contemplating a plan to provide $5,000 “DOGE Dividends” to Americans, funded by savings identified by DOGE. This agency has been tasked by the president to reduce federal spending and eliminate alleged fraud and waste.
Key Details
Last week, James Fishback, CEO of the Azoria investment firm, proposed compensating American taxpayers for “the flagrant misuse and abuse of their hard-earned tax dollars uncovered by DOGE.”
In his four-page proposal, Fishback stated that issuing $5,000 checks directly to American taxpayers would “restore public confidence between taxpayers and their government, honoring this social contract and enhancing tax morale.”
He projected that the total cost would be approximately $400 billion, which is a significant portion of the $2 trillion savings target Musk outlined earlier this year, an amount that DOGE has yet to approach.
As a result, concerns about the affordability of these checks have arisen, with some Republicans voicing skepticism about the proposal.
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Feasibility of DOGE Checks
DOGE has created a “wall of receipts” on its website to demonstrate transparency, showcasing over 1,100 canceled government contracts. Newsweek has examined this data and identified nearly $7.2 billion in savings thus far—merely 1.8% of the sum needed. According to DOGE, this list represents 20% of total savings so far, attributed to delays in government reporting that can slow updates.
Last week, DOGE reported a discovery of $55 billion in savings. If accurate, this still accounts for only 13.75% of the required $400 billion. Newsweek has reached out to DOGE for further comments via email.
Fishback’s proposal suggests that the checks would be distributed in mid-2026, allowing DOGE more than a year to procure the necessary savings to fund the initiative. However, the extensive savings required raises concerns about feasibility.
“The $5,000 DOGE Dividend proposal is an ambitious vision, but as someone who has navigated the complexities of balancing government budgets, it is evident that the mathematics and reality simply do not align,” stated George Carrillo, CEO of the Hispanic Construction Council and former Oregon state government official, in an interview. “To finance a $5,000 payment for each eligible household would necessitate $395 billion. This figure is exponentially higher than the resources Musk claims to have secured.”
Inflation Concerns
There are apprehensions regarding the potential inflationary effects of such payments. Michael Martin, vice president of market strategy at TradingBlock, emphasized that while achieving savings may be possible, “a more critical question is whether these checks would ultimately benefit Americans and the economy as a whole.”
“What effect would a massive infusion of cash into the economy have on ongoing stubbornly high inflation? It would likely escalate costs,” he cautioned.
Direct payments to households during the COVID-19 pandemic reportedly contributed to inflation. During Trump’s presidency, two rounds of COVID-related stimulus checks were issued, which the Federal Reserve stated contributed “to a rise in inflation of approximately 2.5 percentage points.”
“Our findings indicate that fiscal stimulus enhanced consumer demand for goods without significantly impacting production, leading to increased excess demand pressures in certain markets,” read a Federal Reserve Board report. “Consequently, fiscal measures contributed to price pressures.”
Preston Brashers, a research fellow in tax policy at the conservative think tank the Heritage Foundation, also expressed concerns about inflation. He tweeted, “I appreciate DOGE’s initiatives, but this is misguided. There’s no necessity for ‘dividend checks.’ The dividend from reducing spending is that it brings inflation under control. However, if the government distributes stimulus checks, inflation will rebound fiercely.”
In his proposal, Fishback asserted that DOGE checks would not be inflationary as they would be “exclusively funded by DOGE-driven savings, as opposed to COVID stimulus checks which relied on deficit financing.”
Addressing the Deficit
The proposal to utilize some of the DOGE savings for direct payments has upset even Trump’s staunchest supporters.
“Politically, it would be fantastic for us; sending out checks to everyone,” stated House Speaker Mike Johnson at the Conservative Political Action Conference (CPAC) in Maryland last week. “Yet, if we adhere to our core principles, fiscal responsibility defines us as conservatives, it’s our brand.”
He contended that all savings should be allocated towards lowering the “$36 trillion federal debt.”
“We have a substantial deficit,” he remarked. “I believe we need to pay down the credit card, right?”
Thomas J. Cryan, an attorney and author of the new book Disrupting Taxes, indicated that while it is “difficult to ascertain the accuracy of DOGE’s reported savings,” the “Treasury Department may have a fiduciary responsibility to utilize those savings to lessen the $36+ trillion national debt.”
Public Sentiment
James Fishback, in his proposal: “When a breach of such magnitude occurs in the private sector, the counterparty typically reimburses the customer for failing to fulfill their commitments. It’s time for the federal government to do the same by returning funds to taxpayers based on the findings of DOGE.”
George Carrillo told Newsweek: “Despite its superficial allure, this proposal risks sacrificing long-term societal welfare for short-term political gain. That check may seem like success at the moment, but when it results in weakened federal services, greater deficits, and compromised health and safety, the repercussions become starkly evident. Americans merit policies that harmonize ambition with sustainability, rather than flashy promises anchored in fiscal irresponsibility.”
Joseph Camberato, CEO at National Business Capital, told Newsweek: “I see where the concept originates, but distributing $5,000 checks is not the best approach. Just because we have saved some money doesn’t imply we should start handing it out. As the old saying goes: you can provide a man with a fish, or you can teach him to fish. If we are prudent, we should reinvest those funds into initiatives that generate long-term value, such as innovation, infrastructure, and businesses that promote wealth creation across all strata.”
Next Steps
According to Cryan, any dividend payment to American taxpayers would necessitate congressional action.
“DOGE does not possess the constitutional authority to issue a Dividend Payment to the American populace; neither does the President have this authority. The power of the purse resides with Congress,” he elaborated. “Consequently, such a payment would require legislation.”
