Elon Musk Considers Distributing $5,000 to Every American from DOGE Profits — Here’s What You Need to Know

Are we talking about real cheques or just reality checks? That’s the query at hand. The notion of distributing so-called “DOGE Dividends” to everyday Americans, proposed by passionate DOGE supporter James Fishback, garnered significant attention after he tagged Elon Musk on Twitter (now X).

Elon Musk chimed in with a response that certainly stirred the pot: “Will check with the President.” This comment fueled speculation around the idea of 79 million Americans receiving cheques amounting to $5,000, stemmed from DOGE’s alleged $55 billion savings for the federal government.

The full picture, however, remains murky.

‘DOGE Dividends’ for Every American?

James Fishback, the CEO of investment firm Azoria and reportedly an external adviser to DOGE, floated the ‘DOGE Dividend’ concept on X. In an extensive post, he proposed a “tax refund check” of roughly $5,000 to be dispatched to “tax-paying” American households after DOGE’s expiration in July 2026.

He asserted that a fraction of DOGE’s total savings, estimated by Elon Musk to be $2 trillion, could cover this payout. This figure was challenging to verify, and Musk later retracted it after being questioned.

Nonetheless, Fishback indicated that 20 percent of DOGE’s projected $2 trillion in savings could be allocated for distribution to approximately 79 million tax-paying households, translating to around $5,000 per household.

Musk responded to Fishback’s suggestion, stating he “will check with the president.”

DOGE Claims Over $55 Billion in Savings — What’s the Reality?

The official DOGE website claims that under Elon Musk’s leadership, a newly established department has purportedly saved about $55 billion, referring to measures such as fraud detection, contract cancellations, asset liquidations, and workforce reductions.

Last updated on February 17, the site mentioned that DOGE is endeavoring to present “all this data” in a manner that is “digestible and fully transparent.”

Nonetheless, while DOGE asserts $55 billion in federal savings, investigations by the New York Times and Washington Post have found inconsistencies in the reported data and claimed figures.

Doubts Surrounding DOGE’s Claims of Savings

The Washington Post reported that it calculated all the figures provided and arrived at an annual total of approximately $6 billion. The report highlighted that the information given must be taken at face value due to a lack of supporting documentation. It also pointed out that most “savings” were derived from cuts in Diversity, Equality, and Inclusion (DEI) and climate change programs.

The New York Times mentioned that DOGE stated it saved $16 billion by cancelling several government contracts, including an $8 billion deal with Immigration and Customs Enforcement (ICE). However, an actual review revealed that this contract was merely worth $8 million, not $8 billion. Furthermore, only $2.5 million has been utilized over the past two-and-a-half years, and the contract is set to expire in 2027.

It cited DOGE’s own documents allocating the contract for providing “program and technical support services” to the Office of Diversity and Civil Rights at ICE.

$5,000 Cheques to Americans — Feasibility or Political Ploy?

According to Politico, budget analysts warned that any “rebate” initiative is unlikely to proceed without Congressional backing. They mentioned that many legislators may prefer utilizing those funds elsewhere, such as for debt reduction or funding Donald Trump’s tax extensions.

F Stevens Redburn, a public policy educator at George Washington University and a former official at both the US Office of Management and Budget (OMB) and Congressional Budget Office (CBO), indicated that any decision would require passage through both offices and the US Treasury before being enacted.

“If [the DOGE dividend proposal] holds true, one must ascertain how to evaluate and compile the amounts saved and allocate them to an appropriate account. Both OMB and CBO would review that information, and then Treasury would record the figures. Even with measurable savings, Congress would still have to authorize the repayment to taxpayers and decide on a distribution method,” he explained.

Redburn also noted the existing questions and legal issues surrounding the legitimacy of DOGE, suggesting that it could face shutdown if a judge finds against it.

Importantly, the concept of issuing cheques to taxpayers is not entirely unfeasible. During the COVID-19 pandemic, Donald Trump issued government stimulus checks to millions of eligible Americans, which Joe Biden later continued.

However, amidst the ongoing informal discussions regarding distributing DOGE’s “targeted” funds to the public, the practicality of issuing cheques based on savings that have yet to materialize is still to be determined.