This week, Elon Musk mentioned he might “check” with President Donald Trump regarding the possibility of sending $5,000 “DOGE dividend” payments to American families from potential savings identified by the Department of Government Efficiency, reminiscent of past economic stimulus payments. However, should you really anticipate seeing such checks soon? The answer might be no.
The CEO of Tesla and SpaceX, who has been rapidly navigating federal agencies at Trump’s direction, responded on X to a suggestion that the federal government share some of the savings from his recent spending cuts with taxpayers via tax refund checks, akin to previous stimulus aids. “Will check with the President,” Musk replied.
Stimulus checks have been a tool employed by the US government over the years, including recent initiatives by the Trump and Biden administrations to counter the economic effects of the coronavirus pandemic. In 2020, Trump enacted the Cares Act, which allocated $300 billion for one-time stimulus checks, with most adults receiving $1,200. The following year, Joe Biden’s administration approved the American Rescue Plan Act, granting eligible adults up to $1,400 in stimulus payments.
During a press event on Wednesday, Trump indicated that the idea is currently being considered, adding that another portion of the possible savings would be aimed at reducing the national debt. “There’s even under consideration a new concept where we give 20% of the DOGE savings to American citizens, and 20% goes to paying down debt, because the numbers are incredible,” Trump stated.
However, these notions remain speculative and hinge on the outcomes of Trump and Musk’s plans for cost reduction meeting their targets, something many economists and Democratic lawmakers have warned could only occur at the expense of crucial programs relied on by millions. For further information on this stimulus concept, keep reading.
DOGE, or the Department of Government Efficiency, is a project initiated during the second Trump administration, led by Musk, aimed at executing significant cuts within the federal government. Its purported goal is to reduce federal spending and, as the name suggests, enhance efficiency. Musk initially stated the target for this initiative was to achieve approximately $2 trillion in savings.
Nonetheless, the cuts implemented thus far have sparked controversy and backlash, with widespread criticism directed at mass layoffs occurring in agencies like USAID and the halting of regulatory measures at the Consumer Financial Protection Bureau. Detractors argue that the real motive behind DOGE is to centralize power and instigate disorder. Notably, despite its title, it is not an officially recognized branch of the US government, and many of its actions have faced legal challenges from critics, as evidenced by Project Democracy.
