Billionaire Elon Musk’s Department of Government Efficiency has made significant commitments to reduce what he describes as wasteful and unnecessary government expenses. Alongside President Donald Trump, he has discussed the possibility of allocating those savings to taxpayers via broad stimulus checks.
James Fishback, CEO of the investment firm Azoria Partners and a self-styled “anti-woke” investor, initially proposed the concept on X back in February, suggesting $5,000 payments for taxpayers. Musk replied to the tweet, stating: “Will check with the President.” The following day, Trump indicated he was exploring potential stimulus checks.
Since then, Trump has mentioned the idea multiple times during public speeches.
But how feasible is this actually? Here’s what we currently know.
How did the last round of stimulus checks function?
In 2020, Trump signed a $2 trillion bipartisan stimulus package in response to the adverse effects of the COVID-19 pandemic. This package provided stimulus checks, or Economic Impact Payments, ranging from $1,200 to $2,400 based on marital tax status, with an additional $500 for each eligible child.
The first round of payments was distributed in April 2020, followed by a second batch in December 2020. In 2021, under President Joe Biden, a third round of payments was issued as part of the American Rescue Plan.
What needs to happen for a DOGE stimulus check to become a reality?
Primarily, funding would be required. For DOGE to distribute “20% of DOGE savings” to citizens, it must indeed save $2 trillion.
The possibility of achieving that target is uncertain; even Musk has suggested it may not be realistic, referring to the target as a “best-case outcome” in January.
“I think if we target $2 trillion, we have a good chance of reaching $1 trillion,” Musk stated.
Subsequently, Congress would need to approve a plan to disperse the funds to taxpayers, which currently appears challenging.
When asked about the DOGE proposal last month, House Speaker Mike Johnson reportedly reacted with skepticism, according to USA Today.
“Well, look. I mean, politically that would be great for us, you know, it gives everybody a check,” Johnson (R., La.) conveyed to Newsmax host Rob Finnerty during the Conservative Political Action Conference (CPAC). “But if you consider our core principles, fiscal responsibility is integral to our identity as conservatives. We have a $36 trillion federal debt and a significant deficit to address. We need to pay down the credit card, right?”
Elaine Kamarck, a senior fellow in governance studies at the Brookings Institution, informed the Associated Press that DOGE will not generate sufficient savings to distribute checks that are “big enough” to create inflation. She labeled the notion of a DOGE dividend as “absurd.”
The nearly 40% of contracts DOGE has terminated thus far is unlikely to yield meaningful government savings, raising doubts about DOGE’s efficacy, as reported by Newsweek.
According to DOGE’s own reporting, the agency’s website claims it has saved $115 billion, suggesting American taxpayers would receive only about $142 each if checks were issued today. A Congressional Budget Office report indicates that the federal deficit was 5% higher in February compared to the same period last year.
Who would qualify for a DOGE stimulus check?
Fishback, the investor who proposed the idea, indicated that the plan would issue $5,000 checks to approximately 79 million American households.
Further details on the proposal remain scarce.
What’s the latest on a DOGE stimulus check?
On Wednesday, Newsweek reported that Fishback mentioned legislation is “coming very soon” for a stimulus package.
“I have ongoing discussions with individuals in the administration, and I’ve been in talks with members of [Capitol] Hill. Last week, I spoke with six U.S. senators and will continue those discussions to gather feedback,” Fishback stated. “The response has been overwhelmingly positive. The next step involves a bill, which will be forthcoming very soon.”
Although the stimulus package has faced opposition from GOP lawmakers, including Johnson, Fishback remains hopeful. He conveyed to Newsweek that he understands Johnson’s concerns but believes the stimulus checks could help restore taxpayer confidence.
Nonetheless, it remains uncertain whether Fishback’s proposal will eventually be proposed as a bill in Congress. If it does progress, it would require legislative approval. Consequently, the earliest potential timeline for payouts might be the summer of 2026, as per Newsweek.
