Elon Musk’s DOGE Stimulus Check Proposal Encounters GOP Opposition

A plan to distribute stimulus checks to American families using funds saved by the Department of Government Efficiency (DOGE) faces pushback from Republican Speaker Mike Johnson.

Newsweek has reached out to the White House via email for comments.

Significance

Former President Donald Trump has indicated that he is contemplating sending 20 percent of the savings identified by the Department of Government Efficiency (DOGE) directly to American citizens. Conservative groups have raised alarms about the inflationary effects that such dividends could trigger.

Key Information

This week, James Fishback, CEO of the Azoria investment firm, recommended that the government provide compensation to American taxpayers for “the significant mismanagement and misuse of their hard-earned tax dollars uncovered by DOGE.”

His proposal received favorable reactions from unofficial DOGE leader Elon Musk and Trump, both of whom expressed willingness to consider the concept.

In a four-page proposal posted on X, formerly Twitter, Fishback suggested that issuing $5,000 checks to American taxpayers would “help restore public confidence between taxpayers and their government, uphold the social contract, and enhance tax morale.”

However, Speaker of the House Mike Johnson has dismissed the concept.

“While it would be politically advantageous to issue checks to everyone, we need to think about our core principles; fiscal responsibility is fundamental to our conservative identity,” Johnson stated at the Conservative Political Action Conference (CPAC) this week. “Currently, we face a $36 trillion federal debt and a substantial deficit. We should focus on reducing this debt.”

Florida’s CFO Jimmy Patronis, a supporter of Trump, also voiced his disapproval of the DOGE dividend distributions. In an interview with CNBC, he remarked, “If that means a $5,000 check, that’s concerning to me.”

Preston Brashers, a tax policy research fellow at the conservative think tank The Heritage Foundation, warned that “issuing stimulus checks would lead to a significant inflation spike.”

“I appreciate what DOGE is aiming for, but this idea is misguided. There’s no requirement to distribute ‘dividend checks.’ The real dividend we benefit from is cutting down on spending, which helps control inflation,” he tweeted.

Fishback argues that his proposal for DOGE checks wouldn’t drive inflation since it would be “funded solely through savings generated by DOGE.”

He further explained that the dividends would only go to tax-paying households, who are likely to save (rather than spend) the extra dollar.

DOGE’s mission involves slashing federal expenditures and identifying alleged fraud and waste, claiming it has already saved billions since launching audits of government agencies—despite facing significant opposition and legal challenges.

Public Opinions

On the same day at the FII Priority Summit in Miami Beach, former President Trump stated: “The figures are astounding, Elon. We’re talking billions, truly, hundreds of billions. We’re considering returning 20 percent to American citizens and using another 20 percent to reduce the debt.”

In his proposal, James Fishback said: “When a breach of this scale occurs in the private sector, it’s common for the affected party to at least receive a refund. It’s high time for the federal government to follow suit, refunding money back to taxpayers for what DOGE has highlighted.”

Elon Musk, speaking at CPAC on February 20 about the proposed DOGE dividends stated: “It’s resources that are redirected away from destructive forces in the nation and organizations that oppose you, towards you. That’s fantastic.”

Alex Beene, a financial literacy educator at the University of Tennessee at Martin, told Newsweek: “Even considering the potential savings from recent budget cuts, stimulus checks are an exceedingly expensive initiative for a government already mired in debt and facing no pressing emergency to undertake such measures. I anticipate legislators will seek alternative approaches like tax cuts and reduced restrictions on specific government benefit programs to assist Americans, rather than solely relying on stimulus checks.”

Future Implications

Any proposed payment, referred to as the “DOGE Dividend” check, would need congressional approval before issuance. According to Fishback’s proposal, if authorized, these payments could reach American families in 2026.