Former President Donald Trump and Elon Musk, who has informally taken on the role of leading the Department of Government Efficiency, have put forward a proposal aimed at giving back to the American populace.
This initiative has been explored as a strategy to cut down on federal expenditures. On Wednesday, February 19, Trump indicated that his administration is contemplating returning 20% of DOGE savings to citizens, as reported by USA TODAY. These savings would manifest as $5,000 stimulus checks.
“Americans are entitled to a ‘DOGE Dividend’: 20% of the money saved by DOGE should be returned to diligent Americans as a tax refund. It originally belonged to them,” stated James Fishback, CEO and co-founder of Azoria Partners, on X on February 14. “@Elon Musk, let’s make this happen! This is a way to restore faith in our government.”
However, one has to wonder if this concept is perhaps too optimistic. Here’s what we can gather.
Can the government realistically distribute DOGE savings to citizens?
In order to provide $5,000 stimulus checks to citizens, DOGE must first achieve its goal of $2 trillion in savings, making such an initiative financially viable. During a January conversation with political strategist Mark Penn, Musk suggested that DOGE might be more likely to target a $1 trillion reduction instead.
“I think we should aim for $2 trillion. It’s the best-case scenario,” he said. “However, I believe we need some leeway. By striving for $2 trillion, we may successfully reach $1 trillion.”
What is DOGE?
DOGE is a temporary organization under the U.S. DOGE Service that was established by Elon Musk to “modernize federal technology and software to enhance government efficiency and productivity.” This initiative is set to conclude on July 4, 2026. Musk claims that DOGE aims to cut 30% of spending from the $6 trillion federal budget.
Elon Musk listens to U.S. President Donald Trump speak in the Oval Office of the White House in Washington, D.C., U.S., February 11, 2025.
Who would qualify for a $5,000 stimulus check?
During the stimulus rollout in the 2020 COVID pandemic, payments were made to individuals who filed taxes for the previous two years or received benefits from Social Security or veterans’ programs. This package included $1,200 checks for eligible individuals and $2,400 for most married couples filing jointly, along with $500 per qualifying child under 17. Additionally, loans and grants for small businesses, as well as extra weekly unemployment benefits, were provided to those who qualified.
What are economists saying about the checks?
Judge Glock, the director of research at the Manhattan Institute, is apprehensive that the dividend could lead to an increase in the deficit and spur immediate consumer spending, potentially resulting in inflation. He opines that the funds should instead be allocated to mitigate the $1 trillion budget deficit and taxation. Boston University Questrom School of Business Professor Jay Zagorsky shares concerns about inflation as well, noting that if DOGE begins issuing “large checks to a significant number of people, that could substantially elevate inflation, especially since Trump’s policies on tariffs are raising the costs of goods and services.”
FILE PHOTO: Elon Musk speaks next to U.S. President Donald Trump (not pictured) in the Oval Office of the White House in Washington, D.C., U.S., February 11, 2025. REUTERS/Kevin Lamarque//File Photo
Nina Tran covers trending topics for The Greenville News. Reach her via email at ntran@gannett.com.
This article originally appeared in Asheville Citizen Times: Will $5,000 DOGE checks be issued to residents in North Carolina and across the U.S.?
