The proposal to issue $5,000 “DOGE dividend” stimulus checks to American taxpayers has encountered a potential setback, as recent fiscal reports indicate that the anticipated savings from the Department of Government Efficiency (DOGE) have not materialized.
Newsweek reached out to DOGE via social media for comment.
Why It Matters
This initiative, endorsed by President Donald Trump and his billionaire backer Elon Musk, aims to give taxpayers a share of government savings.
Supporters claim this could rebuild trust between taxpayers and the government, while opponents caution that it may lead to economic challenges, such as inflation and increased national debt.
What To Know
The Congressional Budget Office (CBO) reported a 5 percent increase in the federal deficit for February, with outlays growing by 7 percent compared to the same period last year.
The DOGE stimulus initiative, championed by investment firm CEO James Fishback, proposes allocating 20 percent of the department’s savings to taxpayers and another 20 percent to national debt reduction. The plan suggests that DOGE could save $2 trillion over 18 months, enabling the distribution of $400 billion among approximately 79 million taxpayers, resulting in checks of $5,000 each.
Protesters rally outside the Consumer Financial Protection Bureau (CFPB) on February 10, 2025 in Washington, D.C. Protesters rally outside the Consumer Financial Protection Bureau (CFPB) on February 10, 2025 in Washington, D.C. Anna Moneymaker/Getty Images
However, the latest CBO data challenges the feasibility of these savings. The federal government borrowed $1.1 trillion in the first five months of Fiscal Year 2025, including $308 billion in February alone.
This trend raises concerns about the effectiveness of DOGE’s cost-cutting measures and the likelihood of achieving the projected savings necessary to fund the stimulus checks.
Trump expressed interest in the DOGE dividend concept but has indicated that any stimulus checks would be contingent upon confirmed reductions in the federal deficit. Given the current fiscal trajectory, with deficits projected to remain high, the administration may hesitate to endorse the proposal without concrete evidence of significant budgetary improvements.
James Fishback, the originator of the DOGE dividend idea, remains optimistic about the proposal’s potential. In a recent interview, he stated he is “optimistic a bill is forthcoming,” highlighting ongoing discussions with policymakers.
Despite the fiscal challenges, Fishback believes that the stimulus checks could boost public interest in government efficiency efforts.
Fishback suggested that part of the estimated $2 trillion in federal spending cuts identified by DOGE be allocated to taxpayers, providing each household with a $5,000 check. The rest of the savings would go toward reducing the national debt.
Trump publicly addressed the proposal at the FII Priority conference in Miami Beach in late February, according to The New York Times.
What People Are Saying
Brendan Duke from the Center on Budget and Policy Priorities, on X, formerly Twitter: “No sign DOGE significantly cut spending or the deficit in February according to CBO. Federal outlays grew 7% compared to last year and the deficit grew 5%.”
White House press secretary Karoline Leavitt, in a statement: “Today’s CPI report shows inflation is declining and the economy is moving in the right direction under President Trump.”
What Happens Next
It is unknown when DOGE checks will start landing in Americans’ pockets.
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