Former President Donald Trump has indicated that his administration is contemplating distributing 20% of “DOGE savings” to taxpayers. Could Mississippi residents receive a $5,000 DOGE stimulus check? Who would be eligible?
The proposition of the Trump administration providing American citizens with a share of reduced federal expenditures has been introduced. However, it’s important not to depend on this possibility.
Currently, this remains a theory, and one suggestion would prevent low-income households from receiving any benefits.
Recently, the U.S. House of Representatives approved a budget that would prolong Trump’s 2017 tax cuts, along with plans for $4.5 trillion in tax reductions over the next decade. If passed, it would also increase the debt ceiling by $4 trillion within two years and add approximately $3 trillion to the deficit over the next ten years.
As of the 2024 fiscal year, the U.S. national debt stood at $35.5 trillion.
The Department of Government Efficiency would need to recover $2 trillion in savings for the checks to be feasible, and Elon Musk, the department’s informal head, stated that achieving this might not be possible by January.
Before any checks could be distributed, Congress would need to authorize the expenditure.
Here’s what we currently know about the timeline for DOGE checks.
What is DOGE?
On his first day in office, Trump signed an executive order that effectively transformed the U.S. Digital Service, a branch of the executive, into the Department of Government Efficiency. Officially, this is referred to as the U.S. DOGE Service Temporary Organization.
Musk was subsequently made a “special government employee.”
Several Democratic state attorneys general filed lawsuits, contesting Musk’s authority and asserting that his power to access data and reduce government funding contravenes the Constitution. The Appointments Clause mandates that Congress must confirm executive branch officers.
Previously, Trump had referred to Musk as the head of DOGE, but a significant alteration in DOGE leadership was disclosed following a lawsuit filing, stating that the world’s richest man is neither in charge nor an employee of the department, but rather a senior advisor to the president.
The judge denied a motion to restrict Musk’s access to sensitive records.
Recently, Amy Gleason was appointed as the acting DOGE administrator.
Who proposed the DOGE checks?
James Fishback, CEO of the Azoria investment firm, proposed the idea on Musk’s social media platform X. He suggested announcing a “DOGE Dividend”—a tax refund check sent to every taxpayer, funded entirely by a share of the total savings generated by DOGE.
“I will consult with the President,” Musk stated.
In a subsequent speech, Trump mentioned hundreds of billions in savings and remarked, “We’re thinking about allocating 20% of the DOGE savings to American citizens and 20% toward reducing the debt.”
More: Mississippi receives more federal funding than it contributes in taxes. Here’s what that money provides.
Are DOGE cuts significant?
To date, DOGE has announced substantial cuts that have not consistently held up to factual verification. Some of these cuts have been later reversed. The agency has faced criticism from both sides of the political spectrum.
“DOGE has a unique chance to eliminate waste and inefficiencies,” wrote Nat Malkus, a researcher at the American Enterprise Institute, a conservative think tank, in a blog entry. “However, the lack of thoroughness evident thus far should raise concerns even for its staunchest supporters.”
In mid-February, the agency claimed to have saved taxpayers $55 billion. A significant accounting error on the “Wall of Receipts” mistakenly estimated $8 million as $8 billion. However, canceled contracts, real estate leases, and grants accounted for $16.5 billion in actual savings.
Musk also claimed that they terminated 89 research contracts at the Education Department costing $881 million, but DOGE later revised this figure to $489 million. An analysis from New America, a left-leaning think tank, concluded that the total was closer to $278 million.
As of March 3, the Wall of Receipts showed a total of $105 billion in savings. This includes the cancellation of 13 federal real estate contracts in Mississippi. A comprehensive fact check of the March 2 update is still pending, and adjustments were made to the real estate section in the most recent data, omitting details about the type of contracts and their usage compared to previously published data that specified the agency using the facility or land.
Who might be eligible for a check?
Fishback detailed a four-page proposal for a “DOGE dividend,” stating that it should be limited to households that pay taxes and exceed a certain income threshold. According to him, the plan was developed in approximately two and a half hours before being sent to White House Chief of Staff Susie Wiles and other Trump administration members.
“Many low-income families essentially saw transfer payments comprising 25 to 30% of their annual income,” Fishback noted regarding stimulus checks during the COVID-19 pandemic. “This will exclusively benefit households that are net payers of federal income tax, as they are less likely to spend and more likely to save a transfer payment like the DOGE dividend.”
According to the U.S. Census Bureau, about 18% of residents in Mississippi live in poverty. The median household income in the state is $54,915, while the average income per person is $30,529.
The Pew Research Center estimates that most individuals with an adjusted gross income of less than $30,000 effectively pay no federal income tax. Refundable credits mainly benefit those with lower incomes.
Will DOGE checks reach American citizens?
House Speaker Mike Johnson has expressed a preference for directing the funds toward reducing the national deficit.
It remains uncertain whether Congress will address the proposal and how the final eligibility criteria may be shaped.
Contributing: Mike Snider, Joey Garrison, Zachary Schermele, Dian Zhang, Greta Cross, James Powel and Maria Francis
Bonnie Bolden is the Deep South Connect reporter for Mississippi with Gannett/USA Today. Reach her at [email protected].
This article first appeared in the Mississippi Clarion Ledger: Trump, Musk contemplate DOGE refund checks. Here’s what you need to know in MS.
