Trump and Musk Explore DOGE Refund Checks: Key Information You Need in MS

• The DOGE payment proposal, advocating $5,000 checks for taxpayers, hinges on the Department of Government Efficiency achieving $2 trillion in savings.
• Proposed by Azoria CEO James Fishback, it suggests excluding low-income households that do not contribute to federal income tax.
• The DOGE agency, assigned the role of cutting government spending, has come under fire for inflated savings claims and adjusted figures.
• Congress must grant approval, while House Speaker Mike Johnson prefers reducing the deficit rather than direct payments.

President Donald Trump has indicated that his administration is considering allocating 20% of the “DOGE savings” to taxpayers. Could Mississippi residents receive a $5,000 DOGE stimulus check? Who would be eligible?

The notion that the Trump administration could distribute a share of reduced federal spending to American citizens has been proposed. However, it’s merely a theoretical concept at this stage, with one proposal aiming to prevent low-income households from benefitting.

The U.S. House of Representatives has recently passed a budget that would extend Trump’s 2017 tax cuts and outline $4.5 trillion in tax cuts over the next decade. If approved, this would also raise the debt ceiling by $4 trillion within two years and increase the deficit by approximately $3 trillion over a decade.

The national debt of the U.S. reached $35.5 trillion in the 2024 fiscal year.

To make the checks feasible, the Department of Government Efficiency would need to recover $2 trillion in savings, but Elon Musk, the department’s unofficial leader, indicated in January that this might not be achievable.

Before any checks could be disbursed, Congressional approval would be required.

Here’s what we currently understand about the timeline regarding DOGE checks.

What is DOGE?

On his first day in office, Trump issued an executive order that transformed the U.S. Digital Service, a sector of the executive branch, into the Department of Government Efficiency, officially named the U.S. DOGE Service Temporary Organization.

Musk was later designated as a “special government employee.”

Multiple Democratic state attorneys general filed lawsuits contesting Musk’s authority, arguing that his access to data and capability to make cuts to government budgets infringes the Constitution. The Appointments Clause stipulates that executive branch officers must receive Congressional approval.

Previously, Trump referred to Musk as the leader of DOGE; however, a significant change in DOGE leadership was revealed after a lawsuit filing indicated that the world’s richest man is not in charge or employed by the department but serves as a senior advisor to the president.

The judge has allowed Musk continued access to sensitive documents.

Recently, Amy Gleason was appointed as the acting DOGE administrator.

Who is Amy Gleason, the woman who actually heads DOGE?

Initially, there was speculation that Elon Musk led the agency due to his significant role in establishing the framework for Trump’s aspirations.

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Who proposed the DOGE checks?

James Fishback, CEO of Azoria investment firm, proposed the idea on Musk’s social media platform X. He suggested they should introduce a ‘DOGE Dividend’ — a tax refund check issued to every taxpayer, funded solely by a fraction of the total savings generated by DOGE.

“I will confer with the President,” Musk replied.

In a subsequent speech, Trump mentioned the potential for hundreds of billions in savings, stating, “We are contemplating distributing 20% of the DOGE savings to American citizens and another 20% towards debt repayment.”

More: Mississippi receives more federal funds than it contributes in taxes. Here’s what that funding accomplishes.

Are the DOGE cuts substantial?

Up to now, DOGE has announced significant budget cuts that have not stood up to scrutiny. Some proposed cuts were later retracted, drawing criticism from both sides of the political spectrum.

“DOGE has a rare chance to eliminate waste and inefficiency,” Nat Malkus, a researcher at the American Enterprise Institute, a conservative think tank, remarked in a blog post. “However, the haphazard performance observed thus far should raise concerns among even its most ardent supporters.”

In mid-February, the agency claimed to save taxpayers $55 billion. However, the largest accounting error on the “Wall of Receipts” inflated $8 million to $8 billion, while canceled contracts, leases, and grants actually accounted for $16.5 billion.

Musk stated they ended 89 research contracts at the Education Department, costing $881 million, but DOGE later revised this figure down to $489 million. A review from New America, a left-leaning think tank, assessed the total closer to $278 million.

As of Monday, March 3, the Wall of Receipts documented a total of $105 billion in savings, which includes canceling 13 federal real estate contracts in Mississippi. Comprehensive fact-checking of the March 2 update is still pending, and modifications were made to the real estate segment in the latest data, removing information about the type of contracts and their usage compared to previously published details.

Who might be eligible for a check?

Fishback provided a four-page “DOGE dividend” proposal, indicating that payments should only be made to households that pay taxes and exceed a defined income threshold. He developed the plan in approximately two and a half hours before submitting it to White House Chief of Staff Susie Wiles and other Trump administration officials.

“Many low-income families received transfer payments ranging from 25 to 30% of their annual income,” Fishback remarked regarding the COVID-19 pandemic stimulus checks. “This exclusively targets households that pay federal income tax, suggesting they are less likely to spend and more inclined to save a payment like the DOGE dividend.”

According to the U.S. Census Bureau, around 18% of Mississippi’s population live in poverty, with the median household income at $54,915 and the average income per person at $30,529.

The Pew Research Center estimates that most individuals with an adjusted gross income below $30,000 effectively pay no federal income tax, as refundable credits mainly benefit those with lower incomes.

Will DOGE checks reach American citizens?

Speaker of the House Mike Johnson has expressed a preference for allocating funds towards reducing the national deficit.

It remains uncertain whether Congress will consider the proposal and what the final eligibility criteria might entail.

Contributors: Mike Snider, Joey Garrison, Zachary Schermele, Dian Zhang, Greta Cross, James Powel, and Maria Francis

Bonnie Bolden is the Deep South Connect reporter for Mississippi with Gannett/USA Today. Contact her at [email protected].