Could $5,000 DOGE stimulus checks happen? Here’s what we know.
The prospect of $5,000 stimulus checks stemming from the Trump administration’s initiative to reduce federal expenditure has been suggested, but is it feasible?
Americans continue to discuss the chance of a DOGE dividend, a sort of stimulus payment. But is it truly in the works?
Billionaire businessman Elon Musk, who leads the newly established Department of Government Efficiency focused on cutting federal spending, mentioned he would consult U.S. President Donald Trump regarding this possibility.
The concept for DOGE stimulus checks was proposed to Musk in February by “anti-woke” investor James Fishback, CEO and co-founder of Azoria Partners. Trump has since publicly acknowledged the idea of dividend checks, revealing that he and his advisors considered allocating 20% of savings towards debt repayment and channeling another 20% back to citizens.
However, don’t expect to receive a check from the government just yet.
To make the stimulus checks a reality, approximately $2 trillion in cuts might be required. Musk has previously remarked that this may be an unrealistic target.
Here’s what you need to know about DOGE, including details about the stimulus check, responses from lawmakers, and the claimed savings by the department.
What is DOGE?
Since its inception, DOGE has aimed to reduce federal-level spending, leading to numerous layoffs and buyouts across various government sectors.
Recent court documents have challenged Musk’s role with DOGE, asserting that he is a senior adviser to Trump rather than the head of DOGE. These filings also indicate that the department is independent from the White House.
The White House announced on Tuesday that Amy Gleason, a former U.S. Digital Service official, is the acting administrator of DOGE.
What are NJ lawmakers saying about DOGE?
Senator Cory Booker (D-NJ) has consistently criticized DOGE and Elon Musk publicly.
In February, Booker remarked on X that Musk was “demonstrating abjectly dangerous incompetence,” referencing various headlines regarding DOGE-related firings and miscalculated savings.
“This initiative was never about government efficiency — it’s about dismantling it,” Booker stated on February 18.
Senator Andy Kim (R-NJ) has voiced criticism toward Musk and Trump’s decisions, particularly concerning the dismissal of USAID employees and the effects of DOGE-related budget cuts on veterans and their services.
A Republican lawmaker from New Jersey has also expressed apprehension about the issue.
“My concern is that we use a scalpel … and not a sledgehammer,” Rep. Jeff Van Drew (R-NJ) mentioned to the Washington Post. “We must be cautious that we are cutting areas that do not adversely affect everyday people.”
What is the DOGE stimulus check?
Fishback detailed the $2 trillion of suggested DOGE savings among 78 million taxpaying households, proposing the $5,000 check amount.
“American taxpayers are entitled to a ‘DOGE Dividend’: 20% of the money that DOGE saves should be returned to hardworking Americans as a tax refund. It was their money to begin with,” Fishback tweeted on February 14.
In a CNN discussion about the potential dividend, Fishback remarked that a check of up to $5,000 could “motivate Americans to report waste, fraud, and abuse in their own communities. Why? Because the more DOGE saves, the larger their checks will be.”
In financial terms, a dividend is a profit distribution by a corporation to its shareholders, while a refund refers to a payment returned to a user who paid for something previously. On the other hand, a stimulus check is a direct payment intended to promote spending and invigorate the economy by providing cash directly to consumers.
“I think it’s fantastic. A 20% dividend, so to speak, for the savings we achieve by addressing waste, fraud, and abuse,” Trump stated about the proposal, as reported by the Associated Press.
Trump also mentioned that this dividend would serve as “an incentive for taxpayers to report any areas where we can save money.”
How do you qualify for the DOGE stimulus check?
As discussions around the DOGE payout are still ongoing, the specific criteria to qualify for a check, if the proposal moves through Congress, remain unclear.
Fishback’s four-page outline for the “DOGE dividend” described it as a refund intended for “tax-paying households only.”
Pointing out that this differs from previous stimulus payments, he stated that DOGE checks would not contribute to inflation as they would be “funded solely through savings generated by DOGE, unlike COVID stimulus checks, which were financed through deficit spending.”
The proposed refund would only be sent to households that are net-income taxpayers — individuals who owe more in taxes than they receive back — with lower-income Americans potentially ineligible for the return, according to reports. The Pew Research Center indicates that most individuals with an adjusted gross income below $40,000 effectively pay no federal income tax.
Contributors: Fernando Cervantes Jr., Greta Cross, Joey Garrison, Jessica Guynn, Nick Penzenstadler and James Powel.
