Who is behind DOGE? Government lawyers evade question on DOGE leadership
During a hearing concerning DOGE’s access to records, a district judge inquired about who leads the cost-cutting initiative.
Checks from the Elon Musk-driven DOGE could soon be landing in the hands of New Yorkers, yet the ambiguity surrounding the details has raised numerous questions.
Here’s what we currently understand about the potential payments and who may be eligible to receive them.
What is a ‘DOGE dividend’?
President Donald Trump indicated he is contemplating a plan to distribute $5,000 stimulus checks to taxpayers through a ‘DOGE dividend’ during a speech last week.
This ‘DOGE dividend’ notion was initially proposed by Azoria investment firm CEO James Fishback on Musk’s social media platform X, suggesting Trump and Musk “should announce a ‘DOGE Dividend’ — a tax refund check provided to every taxpayer, funded solely by a portion of the total savings generated by DOGE.” Musk responded, “Will check with the President.”
“The figures are staggering, Elon. We’re talking millions, billions—hundreds of billions,” Trump stated in his speech. “And we’re considering giving 20% back to American citizens and 20% to reduce our debt.”
The national debt of the US reached $35.5 trillion in the 2024 fiscal year, an increase of $1.4 trillion from 2023, according to the Treasury Department. Additionally, the US debt-to-GDP ratio rose by two percentage points in fiscal year 2024 compared to 2023.
Where will the ‘DOGE dividend’ funding originate?
In last week’s speech, Trump elaborated that it would involve taking 20% of the savings attributed to Musk’s Department of Government Efficiency (DOGE) and redistributing it to American taxpayers.
What is DOGE?
The Department of Government Efficiency (DOGE), officially known as the U.S. DOGE Service Temporary Organization, is an initiative established by Trump and guided by ‘special government employee’ Musk.
The primary goal of DOGE is to cut federal expenditures, reduce regulations, and “modernize federal technology and software to enhance governmental efficiency and productivity.”
How much has DOGE saved to date?
When it was rolled out, DOGE aimed at saving up to $2 trillion annually. DOGE claims to have already achieved savings of $55 billion through government cuts; however, this figure remains unverified.
The agency has implemented severe cuts across various federal departments, notably resulting in mass layoffs. Some of the agencies affected 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 potential ‘DOGE dividend’?
While Trump did not provide additional details about the prospective ‘DOGE dividend’ or its likelihood, Fishback’s four-page proposal delineated it as a refund “allocated solely to tax-paying households” and would only be available to households exceeding a specific income threshold, unlike pandemic-related checks which were distributed “indiscriminately.”
Contrasting this with previous stimulus checks, Fishback noted that DOGE checks would not trigger inflation as they would be “entirely funded by DOGE-driven savings, unlike COVID stimulus checks which were financed by deficits.”
“Many low-income households basically received transfer payments equal to 25 to 30% of their yearly income,” Fishback remarked concerning the pandemic stimulus checks, adding, “This singularly targets households that are net-payers of federal income tax. Consequently, they have a lower tendency to spend and a higher likelihood of saving a transfer payment such as the DOGE dividend.”
The proposed refund would be sent exclusively to households classified as net-income taxpayers—individuals who contribute more in taxes than they receive back—thus, lower-income families might not qualify for this return, as reported by the news outlets. According to Pew Research Center, most Americans with an adjusted gross income under $40,000 effectively pay no federal income tax.
By definition, a dividend refers to the profit distribution by a corporation to its shareholders, whereas a refund is a payment returned to a user who has paid for something previously. In contrast, a stimulus check serves as a direct payment intended to promote spending and energize the economy by directly placing money into consumers’ hands.
Response from NY officials to recent DOGE initiatives
Following the announcement that the lease for Buffalo’s NLRB office—one of only two branches in upstate New York—was set for termination on the DOGE site, and faced with conflicting information about their job futures, Senate Minority Leader Chuck Schumer took initiative.
Schumer disclosed that he sent a letter to the NLRB’s acting General Counsel, William B. Cowen, seeking clarification about the situation and what it means for staff if the local office is shuttered.
“The Buffalo NLRB office plays a vital role in safeguarding workers’ rights throughout Upstate NY,” Schumer stated in a recent message. “The impulsive DOGE team has already put it on the chopping block, and workers are left in uncertainty about their future – we need answers promptly. It is crucial that the NLRB can continue its essential mission in Buffalo and throughout Upstate New York.”
Schumer also successfully intervened against DOGE’s efforts to remove workers from the World Trade Center Health Program, who provide care for 9/11 survivors and first responders last week.
Furthermore, Governor Kathy Hochul launched a new initiative called ‘You’re Hired’ to attract public service professionals into state positions in light of DOGE’s recent federal job cuts.
“While the federal government might say, ‘You’re fired,’ in New York we declare, ‘You’re hired.’ We value federal employees and welcome them to our New York State family regardless of their skills,” Hochul remarked. “Explore available positions by visiting ny.gov/wewantyou.”
Contributing: USA Today Network
Emily Barnes covers consumer-related matters for the USA TODAY Network’s New York Connect Team, focusing on topics related to scams and recalls. Follow her on Twitter and Instagram @byemilybarnes. Reach her at [email protected].
