This week, Elon Musk mentioned he would “check” with President Donald Trump regarding the possibility of distributing $5,000 “DOGE dividend” payments to American households from potential savings achieved by the Department of Government Efficiency. While this concept mirrors past economic stimulus initiatives, don’t hold your breath for these checks to arrive anytime soon.
Musk, who has been rapidly engaging with federal agencies at the president’s request, responded to a post on X (formerly Twitter) Tuesday night, suggesting that the US government should share some of the anticipated savings from his recent budget cuts with taxpayers, akin to previous stimulus payments.
“Will check with the President,” Musk stated.
Economic stimulus checks have been utilized by the US government multiple times throughout the years, especially during the Trump and Biden administrations as a response to the economic impact of the COVID-19 pandemic. In 2020, Trump enacted the CARES Act, which allocated $300 billion for one-time stimulus payments, allowing most adults to receive a check of $1,200. A year later, President Joe Biden endorsed the American Rescue Plan Act, which provided eligible adults with stimulus payments of up to $1,400.
At a press event on Wednesday, Trump mentioned that the concept was under review, indicating that a portion of the potential savings could be used for reducing the national debt.
“There’s even a new idea under consideration where we allocate 20% of the DOGE savings to American citizens, with another 20% directed towards debt reduction, as the figures are impressive,” Trump remarked.
However, these proposals remain speculative and hinge on the successful implementation of Trump and Musk’s cost-reduction strategies, which many economists and Democratic lawmakers argue may jeopardize crucial programs that Americans depend upon. For further details on this stimulus proposition, continue reading.
What is DOGE?
The Department of Government Efficiency, or DOGE, is an initiative of the second Trump administration led by Musk to implement significant and sweeping reductions in federal spending. The stated goal is to decrease federal expenditure and, as the name indicates, enhance efficiency. Musk initially aimed for this effort to cut approximately $2 trillion in spending.
However, the reductions enacted thus far have sparked controversy and drawn considerable criticism, including mass layoffs at agencies such as USAID and halting regulatory practices at the Consumer Financial Protection Bureau. Detractors assert that the true aim of DOGE is not merely to cut spending but to accumulate power and foster chaos. Notably, DOGE is not an official federal department, and numerous actions undertaken thus far have faced legal challenges, exemplified by Project Democracy.
Why is the proposed stimulus check $5,000?
The proposal Musk responded to originated from James Fishback, CEO of the Azoria investment firm, who is a vocal advocate of both Musk and Trump’s political views. Fishback shared on X, Musk’s social media platform, his own plan to redistribute savings from Musk’s governmental budget reductions to the American populace.
Fishback derived the $5,000 per household figure by calculating 20% of the $2 trillion savings target of DOGE, equating to $400 billion, and dividing it among the “79 million US households liable for federal income tax,” which he claimed would be eligible for this hypothetical payment.
Thus, based on Fishback’s calculations, a $5,000 check would only be conceivable under the most favorable conditions regarding DOGE cuts, which seems improbable given the challenges associated with achieving $2 trillion in reductions. Musk later adjusted this estimate, proposing that $1 trillion might be more realistic, which would reduce the check’s value to $2,500. Currently, DOGE’s website indicates savings of approximately $55 billion, although this figure has been disputed.
When would these checks be issued?
The timeline for these checks is as uncertain as other elements of this proposal. Fishback’s plan suggests a general target of “July 2026” for the payments, coinciding with July 4, 2026, when the DOGE initiative is purported to conclude. Actual issuance of stimulus payments would necessitate formal legislation to be drafted and passed, making specifics unclear at this point. Furthermore, it is possible for DOGE to extend its operations beyond that deadline.
