Could $5,000 DOGE stimulus checks happen? Here’s what we know.
There has been discussion about $5,000 stimulus checks linked to the Trump administration’s plans for federal spending reductions, but the actual implementation remains uncertain.
- The Trump administration is contemplating the issuance of “DOGE Dividend” checks to taxpayers funded by savings found in the Department of Government Efficiency (DOGE).
- This proposal from Azoria investment firm CEO James Fishback recommends excluding low-income households that do not pay federal income tax.
- Approval from Congress would be necessary before any payments could be disbursed, and House Speaker Mike Johnson has indicated a preference for using these funds to lower the national deficit.
- The practicality of the DOGE checks and their impact on taxpayers remain unclear.
President Donald Trump has stated that his administration is considering distributing 20% of “DOGE savings” back to taxpayers. Could residents in Mississippi receive a $5,000 DOGE stimulus check? Who qualifies?
The notion that the Trump administration might issue American citizens a portion of cut federal spending is in discussion. However, it’s still just a proposal.
Currently, it’s theoretical, and one suggested framework would prevent low-income households from benefiting.
The U.S. House of Representatives has approved a budget that would extend Trump’s 2017 tax cuts and outlines a plan for $4.5 trillion in tax reductions over the next decade. If passed, it would also increase the debt ceiling by $4 trillion in two years and add roughly $3 trillion to the deficit over ten years.
The U.S. national debt is projected to be $35.5 trillion in the 2024 fiscal period.
For the checks to be viable, the Department of Government Efficiency would need to secure $2 trillion in savings; however, the department’s unofficial leader, Elon Musk, stated this might not be feasible back in January.
Before issuing any checks, Congressional approval for the expenditure would be required.
Here’s what we know about the timeline for DOGE checks so far.
What is DOGE?
On his first day in office, Trump signed an executive order renaming the U.S. Digital Service, a segment of the executive branch, to the Department of Government Efficiency, technically referred to as the U.S. DOGE Service Temporary Organization.
Later, Musk was designated as a “special government employee.”
Several Democratic state attorneys general filed lawsuits contesting Musk’s authority, arguing that his ability to access government data and cut funds breaches the Constitution. The Appointments Clause mandates that Congress must approve executive branch officials.
Trump has previously referred to Musk as the DOGE head, but a significant shift in DOGE leadership was declared after a court filing indicated that the world’s richest individual is neither in charge nor an employee of the department, instead serving as a senior advisor to the president.
The judge declined to restrict Musk’s access to sensitive records.
Amy Gleason has recently been appointed as the acting DOGE administrator.
However, last week in a congressional address, Trump referred to the DOGE team as a “group of very intelligent, mostly young people, led by Elon.”
Who is Amy Gleason, the woman who actually heads DOGE?
It was initially thought that Elon Musk was leading the agency as he was key in establishing its framework.
Scripps News
Who proposed the DOGE checks?
James Fishback, the CEO of Azoria investment firm, suggested the idea on Musk’s social media platform X, proposing they “should announce a ‘DOGE Dividend’ — a tax refund check sent to every taxpayer, funded exclusively with a portion of the total savings delivered by DOGE.”
“I’ll check with the President,” Musk responded.
In a subsequent address, Trump mentioned savings in the hundreds of billions and mentioned, “We’re considering allocating 20% of the DOGE savings to American citizens and 20% to addressing the debt.”
Do DOGE cuts accumulate?
So far, DOGE has announced significant cuts, some of which have not survived scrutiny. Many have been reversed. This has drawn criticisms from both political camps.
“DOGE has a unique opportunity to eliminate waste and inefficiency,” said Nat Malkus, a researcher with the American Enterprise Institute, a conservative think tank. “However, the careless work displayed thus far should raise concerns among even its most ardent defenders.”
In mid-February, the agency declared $55 billion in taxpayer savings. The biggest accounting error on the “Wall of Receipts” inflated a discrepancy from $8 million to $8 billion. However, canceled contracts, real estate leases, and grants accounted for $16.5 billion.
Musk stated they also terminated 89 research contracts with the Education Department, valued at $881 million. Later, DOGE revised this number to $489 million. A report from New America, a progressive think tank, estimated the total closer to $278 million.
As of the latest update on March 5, the Wall of Receipts displayed $105 billion in total savings, including the cancellation of 13 federal real estate contracts in Mississippi. (Another list previously posted and later removed from the internet by the General Services Administration also included two Mississippi federal properties. There are about 440 properties the Trump administration plans to sell or otherwise monetize.)
Who could qualify for a check?
Fishback distributed a four-page proposal for the “DOGE dividend,” advocating that it should only be available to households that pay taxes and earn above a designated income level. He indicated that the draft was developed in about two and a half hours before being sent to White House Chief of Staff Susie Wiles and other Trump administration officials.
“Many lower-income households received transfer payments that amounted to 25% to 30% of their annual income,” Fishback said about the COVID-19 pandemic stimulus checks. “This specifically targets households that are net contributors to federal income tax, meaning they tend to save transfer payments like the DOGE dividend rather than spend them.”
The U.S. Census Bureau reports approximately 18% of Mississippi’s population lives in poverty. The median household income in the state stands at $54,915, while the average individual income is $30,529.
The Pew Research Center suggests that most individuals with an adjusted gross income below $30,000 pay no federal income tax effectively. Refundable credits are mainly beneficial to those with lower incomes.
Trump supports sending payments to Americans from DOGE savings.
President Trump endorsed the proposal to Elon Musk about potentially sending checks of up to $5,000 to Americans if DOGE is successful in reducing federal costs.
Scripps News
Could DOGE checks reach American citizens?
Congress must approve the proposed spending before any checks are issued.
House Speaker Mike Johnson has expressed a preference for channeling the funds toward reducing the national deficit.
The likelihood of Congress embracing the proposal and what the final requirements may look like is still uncertain.
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 at Gannett/USA Today. You can reach her at [email protected].
