WASHINGTON (TNND) — House Speaker Mike Johnson, R-La., expressed reservations on Thursday about fully endorsing the idea of sending stimulus checks to Americans, funded by savings from the Department of Government Efficiency (DOGE).
During an interview at the Conservative Political Action Conference in Washington, D.C., Johnson was asked to clarify how these “DOGE stimulus checks” would function. Earlier in the week, President Donald Trump indicated that his administration was considering giving 20% of DOGE’s savings back to taxpayers, while using another 20% to tackle the national debt.
“Well, look, I mean, politically, that would be great for us,” Johnson stated. “But if we think about our core principles, right? Fiscal responsibility is what we stand for as conservatives.”
“And we are facing a $36 trillion federal debt. We have a massive deficit to address,” the speaker continued. “I believe we need to pay down the credit card.”
The proposal for the checks seemingly originated from a conversation on social media between DOGE leader Elon Musk and James Fishback, CEO of investment firm Azoria. Fishback shared a post on X on Tuesday outlining a plan to issue checks worth over $5,000 to taxpayers next year, utilizing funds that DOGE helped save for the federal government.
In his outline, the CEO mentioned the idea as a “DOGE dividend.”
“Will check with the President,” Musk responded to the post.
READ MORE | White House outlines plans for distribution of DOGE checks amid Congressional negotiations
One section of Fishback’s outline poses the question, “Question 2: ‘Won’t the DOGE Dividend increase the deficit?'” The answer provided states, “No, for two reasons.”
The first reason, according to Fishback, is that the “DOGE dividend” relies on spending cuts, characterizing it as a “tax refund.” The second reason is that the dividend could “actually boost tax receipts by enhancing tax morale and rebuilding trust between taxpayers and their government,” as per the outline.
However, several economists have advised caution. Jessica Reidl, an economic policy expert at the right-leaning Manhattan Institute, told CBS MoneyWatch that it is “completely impossible for DOGE to save $2 trillion,” a figure Musk previously claimed his presidential advisory committee was targeting.
“Achieving $2 trillion in savings would entail eliminating nearly all remaining federal programs,” Reidl asserted. “DOGE lacks the legal or constitutional authority to implement these spending cuts; only Congress can pass such laws, and that is unlikely.”
As reported on its website Monday, DOGE claimed that the presidential advisory committee has already saved the federal government an estimated $55 billion. These savings reportedly encompass various areas, including “fraud detection/deletion,” “contract/lease cancellations,” and “workforce reductions.”
