The plan to distribute $5,000 “DOGE dividend” stimulus payments to American taxpayers is facing a potential obstacle, as recent financial reports suggest that the expected savings from the Department of Government Efficiency (DOGE) have not been realized.
Newsweek contacted DOGE through social media for their response.
Relevance of the Initiative
Supported by President Donald Trump and billionaire Elon Musk, this initiative seeks to share government savings with taxpayers.
Proponents argue that it could help restore trust between the government and the public, while detractors warn it might cause economic issues like inflation and rising national debt.
Key Information
The Congressional Budget Office (CBO) has reported a 5 percent rise in the federal deficit for February, with expenditures increasing by 7 percent compared to the same time last year.
This stimulus proposal, led by CEO James Fishback of an investment firm, suggests allocating 20 percent of the department’s savings to taxpayers and another 20 percent toward national debt repayment. The initiative claims DOGE could save $2 trillion over the next 18 months, allowing for $400 billion to be distributed among about 79 million taxpayers, yielding $5,000 checks each.
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However, recent data from the CBO raises doubts about the feasibility of these anticipated savings. The federal government borrowed $1.1 trillion in the first five months of Fiscal Year 2025, including $308 billion in February alone.
This trajectory raises questions regarding the effectiveness of DOGE’s cost-control initiatives and the potential to realize the estimated savings needed to finance the stimulus checks.
Trump has shown interest in the DOGE dividend idea but stated that any stimulus payments would depend on verified reductions in the federal deficit. Given the current financial path, wherein deficits are expected to stay elevated, the administration might be reluctant to support the proposal without clear evidence of substantial budget improvement.
James Fishback, who proposed the DOGE dividend plan, remains hopeful about the initiative’s prospects. In a recent interview, he expressed his belief that “a bill is forthcoming,” emphasizing ongoing dialogues with lawmakers.
Despite the financial hurdles, Fishback is convinced that the stimulus checks could enhance public interest in governmental efficiency efforts.
Fishback suggested that a portion of the projected $2 trillion in federal spending cuts identified by DOGE could be given back to taxpayers, issuing $5,000 checks to each household, while the remainder would be used to tackle the national debt.
Trump brought attention to the proposal at the FII Priority conference in Miami Beach in late February, according to The New York Times.
Public Reactions
Brendan Duke from the Center on Budget and Policy Priorities, on X, formerly Twitter: “No signs indicate DOGE made significant cuts to spending or the deficit in February according to the CBO. Federal outlays increased by 7% relative to last year, and the deficit rose by 5%.”
White House press secretary Karoline Leavitt, in a statement: “Today’s CPI report shows that inflation is receding, and the economy is advancing positively under President Trump.”
Future Steps
It remains uncertain when DOGE checks will start being issued to American taxpayers.
