- President Donald Trump is contemplating the distribution of $5,000 stimulus checks to U.S. taxpayers funded by savings derived from DOGE.
- Experts express doubts that DOGE, the Department of Government Efficiency, can identify sufficient savings to justify such payouts.
- Reports indicate that DOGE has not achieved its estimated $55 billion savings target and is unlikely to meet its ambitious $2 trillion goal.
Should Indiana taxpayers anticipate a $5,000 bonus thanks to Donald Trump and Elon Musk?
Trump is considering the idea based on comments made last week regarding returning DOGE savings to American citizens as a form of stimulus or “DOGE dividend” check.
However, Hoosiers might want to resist the temptation to splurge just yet. The DOGE initiative, or Department of Government Efficiency, must ideally reach its $2 trillion savings target for such a distribution to be feasible; a feat Elon Musk himself suggested might be unattainable back in January.
While Trump has publicly endorsed the concept, not everyone appears to agree.
Speaker of the House Mike Johnson expressed skepticism about the proposal during remarks on Thursday, implying that focusing on reducing the national debt would be a more prudent approach. Ultimately, any disbursement of funds to taxpayers would require Congressional approval.
Here’s what you need to know about the potential DOGE dividend check.
What is DOGE?
The Department of Government Efficiency, formally known as the U.S. DOGE Service Temporary Organization, is an initiative set forth by Trump to identify and implement reductions in government spending and regulation.
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What is the origin of the $5,000 DOGE stimulus checks proposal?
James Fishback, a prominent “anti-woke” investor and CEO of Azoria Partners, proposed the concept on X on February 14, advocating for $5,000 checks based on the supposed $2 trillion savings from DOGE, with the remainder allocated for national debt reduction.
Fishback stated, “American taxpayers deserve a ‘DOGE Dividend’: 20% of the funds saved by DOGE should be refunded to hardworking Americans as a tax check since it originally belonged to them.”
He further added, “@ElonMusk, let’s make this happen! This is how we restore trust in our government.”
During a CNN discussion on Saturday, Fishback noted that a potential check of up to $5,000 would incentivize Americans to report waste, fraud, and abuse in their communities, suggesting that the higher the savings achieved by DOGE, the bigger their checks would be.
What is Elon Musk’s stance on $5,000 DOGE stimulus checks?
In response to Fishback’s proposal on X, Musk replied, “I will verify with the President.”
What does the economic outlook for Indiana look like ahead of potential $5,000 checks?
In summary, Indiana’s economic growth is anticipated to decelerate in 2025, mirroring trends in the broader U.S. economy. An economic forecast released in December by the Indiana State Budget Agency suggests that the U.S. economy is shifting from above its potential to below, influenced by tightened federal spending and loan practices.
The state’s economy might also suffer due to Trump’s forthcoming policies regarding elevated tariffs, reduced immigration, and a possible rise in inflation.
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Despite the forecast presenting Indiana’s economy as “favorable” due to workforce growth, anticipated higher tariffs could negatively affect key sectors, notably pharmaceuticals, automotive, machinery, and agriculture.
A decline in immigration and related deportation efforts might further hinder growth in Indiana’s manufacturing, construction, and agricultural sectors.
How would the $5,000 stimulus checks be implemented? Who would qualify?
In 2020, Congress approved – and President Trump endorsed – a $2 trillion bipartisan stimulus to address the economic challenges caused by the COVID-19 pandemic. This package included $1,200 checks for eligible individuals, $2,400 for most married couples filing jointly, along with an additional $500 for each qualifying child under 17.
These stimulus payments were dispatched to those who had filed tax returns in the preceding couple of years or who received Social Security or veterans’ benefits. The package also financed small business loans and grants, in addition to enhanced weekly unemployment benefits.
What has President Trump stated regarding DOGE dividend checks?
Trump mentioned the potential distribution of DOGE dividends on two occasions last Wednesday. “We’re reviewing the possibility of distributing 20% of DOGE savings to American citizens, with another 20% directed to debt reduction,” Trump said at the Saudi-sponsored FII PRIORITY Summit in Miami Beach on Wednesday.
Subsequently, on Air Force One, he replied to a question regarding the proposal, stating, “I support it. A 20% dividend, to reflect the savings we achieve by targeting waste, fraud, and abuse and other issues,” as per an Associated Press video.
Trump elaborated that the dividend would act as an “incentive for taxpayers to report instances where we can save money.”
What is House Speaker Mike Johnson’s perspective on DOGE dividend checks?
House Speaker Mike Johnson did not seem supportive of the DOGE dividend concept during his comments on Thursday at the 2025 Conservative Political Action Conference.
He answered skeptically, expressing, “Politically, this could be advantageous for us, as everyone receives a check. Yet, if we consider our foundational principles, fiscal responsibility is integral to our conservative identity. With a $36 trillion federal debt and a substantial deficit to manage, we should prioritize paying down that ‘credit card’.”
What are economists’ views on $5,000 stimulus checks?
Most experts who have weighed in so far express reservations regarding a DOGE dividend.
Judge Glock, director of research at the Manhattan Institute, remarked, “This would elevate the deficit, elevate immediate consumer spending, and provoke inflationary repercussions, countering our current economic needs,” during an interview with Scripps News.
Glock believes the funds would be better allocated toward mitigating the $1 trillion annual budget deficit and potentially lowering taxes.
Could DOGE stimulus checks trigger inflation?
A significant concern regarding stimulus checks is inflation. Jay Zagorsky, a professor at Boston University’s Questrom School of Business, noted that if DOGE starts distributing substantial checks to many individuals, it would markedly contribute to inflation, especially given that Trump’s policies may increase the costs of goods and services.
Conversely, Kevin Hassett, Trump’s director of the National Economic Council, asserted during a press briefing that the proposed checks wouldn’t induce inflation since the government had already forecasted the expenditure.
“If government refrains from spending and returns funds to the populace, should they spend it all, the situation remains neutral,” he explained to financial site Investopedia. “However, they are likely to save a considerable portion of it, thus reducing inflation.”
Nonetheless, this discussion may be largely theoretical, as DOGE is expected to struggle in reaching its ambitious $2 trillion savings target, Zagorsky pointed out. “I’m just not convinced that the savings will materialize,” he added.
Is DOGE providing savings to American taxpayers?
Recently, Musk claimed that DOGE had saved taxpayers $55 billion; however, a mistake in reporting an $8 million contract cancellation as an $8 billion savings led to a revised estimate of approximately $16.5 billion.
Elaine Kamarck, a senior fellow at the Brookings Institution, indicated that DOGE would not yield enough savings to justify issuing checks “substantial enough” to trigger inflation. She described the concept of a DOGE dividend as “absurd.”
“There isn’t sufficient funding, especially not enough to provide meaningful contributions to taxpayers,” Kamarck stated. She noted that Musk’s assertions should be taken skeptically.
Gulf of America:MapQuest has opened the floor for people to rename the Gulf of America to include comedic options such as ‘Gulf of Fragile Masculinity.’
Contributions from: Fernando Cervantes Jr., Greta Cross, Joey Garrison, Jessica Guynn, Nick Penzenstadler, and James Powel.
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John Tufts covers trending news for IndyStar and Midwest Connect. Please reach out with news tips at JTufts@Gannett.com. You can find him on BlueSky at JohnWritesStuff.
