After Elon Musk’s remarks at a rally in Wisconsin, the discussion surrounding a potential DOGE dividend check for US taxpayers has reignited. This conversation began days earlier when a businessman suggested to Musk and Donald Trump that if the federal government’s new budget-cutting strategy proved effective and saved billions, those savings should be allocated as stimulus checks for American taxpayers.
The federal government’s “super-secretary” highlighted that the authority to distribute a rebate of up to $5,000 rests with the president and Congress, linking it to the savings identified by the Department of Government Efficiency (DOGE). Musk underscored that by cutting inefficient government expenditures, inflationary pressures could decrease: “As government spending is made more efficient and reduced, the inflation tax also diminishes.”
Are new stimulus checks on the horizon? More on DOGE dividends
The concept of the DOGE dividend surfaced in February when Donald Trump indicated interest in returning a portion of federal savings to taxpayers. James Fishback, CEO of Azoria, suggested on the X platform that 20% of the savings recognized by DOGE should be allocated for direct refunds. Musk replied, “I’ll check with the president.”
In a FOX News interview, Musk disclosed that DOGE has uncovered $130 billion in savings, translating to $800 per taxpayer. Fishback, in a conversation with NewsNation, mentioned that efforts are underway on a bill to implement this initiative: “Identifying waste is just the first step. The funds need to be redistributed.” Lawmakers described these discussions as “very constructive.”
However, these would not resemble the traditional stimulus checks familiar from the pandemic, known as the “COVID check”; instead, the DOGE dividend would be funded by spending reductions.
Who would be eligible for DOGE dividends?
Fishback emphasized that only net taxpayers—households that contribute more in taxes than they receive—would benefit, excluding individuals who do not pay federal taxes. He argued that this approach would alleviate inflationary effects by emphasizing savings over immediate consumption.
As per the Pew Research Center, 40% of Americans—those with adjusted gross incomes under $40,000—do not pay federal taxes, which would limit the eligibility for this benefit. Furthermore, checks would be issued on a household basis, including Social Security beneficiaries who meet the tax requirements.
In essence, 4 out of every 10 American households would not qualify to receive these stimulus checks. Despite the initial excitement, questions linger regarding who will actually obtain the refund. Fishback insists that only net taxpayer households would qualify, though specific income thresholds have yet to be clarified. It is also uncertain whether the amount would be fixed or proportionate to annual DOGE savings.
The original proposal suggested $5,000 in a single payment for qualifying households, but, as previously noted, it remains unclear what the actual amount would be. Musk has refrained from setting timelines, though he mentioned that “there is a tremendous amount of work to be done.” Analysts caution that, without definitive legislative movement, this proposal could merely become an electoral promise.
