Who is in charge of DOGE? Government attorneys avoid answering DOGE leadership query
During a hearing regarding DOGE’s record access, a district judge questioned lawyers about who oversees the cost-reduction initiative.
Checks from the DOGE initiative led by Elon Musk might benefit New Yorkers, but the vagueness surrounding the details has left many with more inquiries than clarity.
Here’s a summary of what we currently know regarding the potential payments and who may be eligible to receive them.
What is a ‘DOGE dividend’?
During a recent speech, President Donald Trump mentioned he is contemplating a plan to distribute $5,000 stimulus payments to taxpayers under the label of a ‘DOGE dividend’.
The concept of a ‘DOGE dividend’ was previously proposed by James Fishback, the CEO of Azoria investment firm, on Musk’s social platform X, suggesting that Trump and Musk “should introduce a ‘DOGE Dividend’ — a tax reimbursement sent to every taxpayer, solely funded by a portion of the total savings achieved through DOGE.” Musk responded, “Will check with the President.”
“The figures are astonishing, Elon. Countless millions, to billions — hundreds of billions,” Trump remarked in his address. “We are considering returning 20% to the American people, and allocating another 20% to reduce our debt.”
According to the Treasury Department, the U.S. national debt reached $35.5 trillion for the fiscal year 2024, a $1.4 trillion increase from 2023, while the debt-to-GDP ratio rose by two percentage points between fiscal years 2023 and 2024.
Where would the ‘DOGE dividend’ funds originate?
In his recent address, Trump clarified that the funds would be derived from 20% of the savings identified by Musk’s Department of Government Efficiency (DOGE) and returned to American citizens.
What is DOGE?
The Department of Government Efficiency (DOGE), formally known as the U.S. DOGE Service Temporary Organization, is an initiative established by Trump and led by ‘special government employee’ Musk.
The mission of DOGE is to reduce federal expenditure, simplify regulations, and “modernize federal technology and software to enhance government efficiency and productivity.”
How much has DOGE saved?
When it was launched, DOGE aimed to save up to $2 trillion annually. It claims to have saved $55 billion in government cuts up to now, although this figure remains unverified.
The agency has implemented significant cuts across various federal agencies, including mass dismissals of federal employees. Agencies that have faced cuts include the United States Agency for International Development (USAID), the Department of Education, the National Institutes of Health, the Centers for Disease Control and Prevention, and the Consumer Financial Protection Bureau.
Will you qualify for a possible ‘DOGE dividend’?
While Trump did not provide additional details on the potential ‘DOGE dividend’ or its certainty, Fishback’s four-page proposal indicated that it would be a refund “given only to tax-paying households” and would target households above a specific income level, differing from pandemic-era checks that were distributed “without discrimination.”
Fishback highlighted that DOGE payments would not contribute to inflation as they would be “exclusively funded by DOGE-driven savings, unlike COVID stimulus checks, which were financed through deficits.”
“During the pandemic, many low-income households effectively received transfer payments amounting to 25 to 30% of their annual income,” Fishback remarked, adding, “This payment is solely intended for households that are net-payers of federal income tax, indicating they have a lower likelihood of spending and a higher likelihood of saving a transfer payment like the DOGE dividend.”
The prospective refund would only go to households categorized as net-income taxpayers — individuals who pay more in taxes than they receive in refunds — with lower-income Americans not qualifying for the return, according to media reports. The Pew Research Center states that most Americans with an adjusted gross income below $40,000 effectively pay no federal income tax.
A dividend typically represents a share of profits distributed by a corporation to its shareholders, while a refund refers to a return payment to a user who previously paid for a service or product. In contrast, a stimulus check provides direct payments to spur spending and energize the economy by distributing money directly to consumers.
How NY officials are responding to recent DOGE initiatives
Following the discovery by staff at Buffalo’s National Labor Relations Board (NLRB) — one of just two offices in upstate New York — that their lease was set for termination on the DOGE website, Senate Minority Leader Chuck Schumer took action.
Schumer revealed that he sent a letter to the NLRB’s acting General Counsel William B. Cowen on Tuesday seeking clarification about their job status and the future operations of the local office in the event of its closure.
“The Buffalo NLRB office is essential for protecting workers’ rights across Upstate NY,” Schumer stated. “The hastily made DOGE decisions have already placed this office in jeopardy, leaving workers uncertain about their future — we demand immediate answers. It is imperative that the NLRB continues its critical mission of safeguarding labor rights in Buffalo and throughout Upstate New York.”
Schumer also successfully fought against DOGE’s decision to remove World Trade Center Health Program workers responsible for the care of 9/11 survivors and first responders last week.
Additionally, Governor Kathy Hochul announced a new ‘You’re Hired’ campaign to attract public service workers into state roles in response to DOGE’s recent layoffs in the federal government.
“While the federal government may say, ‘You’re fired,’ here in New York, we assert, ‘You’re hired.’ We hold federal workers in high regard,” Hochul stated. “Regardless of your expertise, we appreciate public service … Join the New York State family.”
Individuals interested in exploring job opportunities can visit ny.gov/wewantyou.
Contributing: USA Today Network
Emily Barnes covers consumer issues for the USA TODAY Network’s New York Connect Team, with a focus on scams and recall news. Follow her on Twitter and Instagram @byemilybarnes. Reach out at [email protected].
