President Donald Trump has launched a new initiative called the Department of Government Efficiency (DOGE), which aims to reduce federal expenditures, leading many Americans to wonder if this could result in a stimulus check from the savings generated.
Importance of the Initiative
Overseen by Tesla CEO Elon Musk, DOGE is pushing for significant layoffs in the federal workforce to achieve an annual reduction of $2 trillion from the budgets of major U.S. agencies.
With no significant stimulus payments made since 2021, numerous citizens are optimistic that the savings created by DOGE might open the door for new payments to be sent to Americans.
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Essential Points to Note
A growing number of Americans are urging DOGE to distribute stimulus checks, with a popular TikTok suggesting that taxpayers might receive as much as $8,000 due to the department’s budgetary cuts.
James Fishback, CEO of the investment firm Azoria, stated on X that a portion of the savings from DOGE should be returned to taxpayers as a ‘DOGE Dividend.’
“American taxpayers merit a ‘DOGE Dividend’: 20% of DOGE’s savings should be refunded to hardworking Americans as a tax rebate,” Fishback posted on social media. “It’s their money originally! With $2 trillion in DOGE savings and 78 million taxpaying households, this could amount to $5,000 per household, with the rest used to tackle the national debt. @ElonMusk, let’s turn this into reality! This is how we restore trust in our government.”
Current Savings Achieved by DOGE
As of Tuesday, the live DOGE tracker has reported that $55 billion has already been saved through Musk’s proposed reductions.
The most substantial cuts have been made to the federal workforce, particularly affecting agencies such as the United States Agency for International Development, which saw a funding decrease of $420.14 million according to Polymarket.
Further significant reductions are expected for the Food and Drug Administration, National Institutes of Health, and the Centers for Disease Control and Prevention.
Musk has also voiced his intention to address Social Security fraud, posting on X: “According to the Social Security database, here are the numbers of individuals in each age group with the death field marked as FALSE! Perhaps ‘Twilight’ is real, leading to many vampires collecting Social Security.”
Additionally, Trump has ordered all federal employees to return to their offices and has established a hiring freeze within the federal government.
Will Americans Receive Refund Checks from DOGE’s Savings?
At present, there is no indication that the budget cuts from DOGE will result in refund checks for the American public.
The targeted $2 trillion in savings is likely to be allocated towards diminishing the national debt and potentially implementing tax reductions.
Reactions from the Public
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek: “While future stimulus checks aren’t impossible—potentially as a goodwill gesture reflecting the savings from these cuts—the reality is that the chances of checks being issued seem quite slim. Even with any potential savings from recent cuts, stimulus checks represent a costly initiative for a government already burdened by debt, and not facing a pandemic-level crisis. Lawmakers are likely to consider new proposals like tax reductions and relaxing certain restrictions on government benefits instead of solely relying on stimulus checks to assist Americans.”
Kevin Thompson, a finance expert and founder/CEO of 9i Capital, shared his thoughts with Newsweek about the possibility of another stimulus check under DOGE: “Absolutely not—and such a move wouldn’t aid the economy. If people found inflation problematic last year and prices remain high, imagine the fallout from injecting more money into the economy. It would be like giving a donut to someone managing diabetes—not a sensible decision.”
Michael Ryan, a finance expert and founder of MichaelRyanMoney.com, expressed his views to Newsweek: “DOGE’s identification of waste is more analogous to finding billing discrepancies. It demonstrates a modest reduction in our borrowing, not that we suddenly have extra funds available for distribution. When DOGE claims it has ‘saved’ $55 billion by identifying fraud and waste, it’s akin to discovering a coupon while maxed out on credit cards. Sure, it’s beneficial to spend less, but it doesn’t mean the grocery store is going to hand us cash back—we’re still in debt.”
Looking Forward
Thompson pointed out that the Trump administration is focusing on reducing expenditures rather than introducing additional stimulus checks.
“Any changes to the budget will most likely aim at extending the Tax Cuts and Jobs Act (TCJA), which would require $4.5 trillion to maintain those advantages. I forecast that policymakers will use any savings to support the extension of the TCJA, thus balancing future liabilities.”
