Weeks after the concept was first proposed, uncertainty still looms over when or if Americans will receive the anticipated $5,000 dividend payments from the Department of Government Efficiency (DOGE), led by Elon Musk.
The suggested stimulus checks aim to redistribute some of the government savings accumulated by DOGE back to taxpayers, but not everyone will be eligible for the $5,000 payment that President Donald Trump has supported.
So, are DOGE checks truly on the horizon? Who stands to benefit? Here’s what you should be aware of.
Who qualifies for DOGE checks? Lower-income Americans may be excluded
As per the initial proposal from James Fishback, CEO of Azoria investment firm, DOGE intends to disburse payments only to households above a specific income threshold that are classified as “net-income taxpayers” (those who pay more in taxes than they receive back), which means lower-income Americans could miss out, according to USA TODAY.
“Many low-income families essentially received transfer payments amounting to 25 to 30% of their annual income,” Fishback noted concerning the pandemic stimulus checks, further stating, “This specifically targets households that are net-payers of federal income tax, signifying that they are likely to save rather than spend a transfer payment like the DOGE dividend.”
When will DOGE checks be distributed? A long wait ahead
Taxpayers might face a lengthy delay before the DOGE stimulus checks are released. For the $5,000 payments to reach Americans, DOGE must first achieve its substantial savings target of $2 trillion, and any potential checks must receive Congressional approval before distribution.
DOGE claims it has saved over $100 billion by cutting federal jobs and reducing expenditures, and is still evaluating the feasibility of the $5,000 payouts.
Are DOGE checks a viable solution? Economists express concerns
Numerous economists argue that DOGE stimulus checks could be detrimental, potentially exacerbating inflation, and suggest that the funds would be better allocated toward reducing the budget deficit and lowering taxes, as reported by the Arizona Republic.
“This would increase the deficit, boost immediate consumer expenditure, and lead to inflationary consequences, which we are trying to avoid at this moment,” stated Judge Glock, research director at the Manhattan Institute, in an interview with Scripps News.
Inflation remains another significant concern. If DOGE begins “issuing large checks to numerous individuals, that will significantly drive up inflation, especially considering that Trump is imposing tariffs, leading to higher prices for goods and services,” remarked Jay Zagorsky, a professor at Boston University’s Questrom School of Business, speaking to CBS News.
Contrarily, Kevin Hassett, Trump’s director of the National Economic Council, suggested during a press briefing in February that the checks would not be inflationary since the government had already intended to allocate the funds. Fishback has expressed a similar view in recent interviews.
“If we refrain from spending government funds and return it to the citizens, if they use all of it, then the net effect is neutral,” he remarked, according to financial news site Investopedia. “However, they will likely save a considerable portion, thus helping to reduce inflation.”
According to Elaine Kamarck, a senior fellow in governance studies at the Brookings Institution, DOGE lacks sufficient savings to provide checks that would be substantial enough to impact inflation negatively. She characterized the notion of a DOGE dividend as “absurd.”
“There isn’t enough money available, certainly not enough to make a significant return to taxpayers,” Kamarck stated, referencing her experience working with Vice President Al Gore to minimize governmental waste during the Clinton administration. “He just makes statements,” she said, alluding to Musk.
This article originally appeared on Cincinnati Enquirer: When are DOGE checks coming? Why some experts say they’re a bad idea
