During the pandemic era, stimulus checks were a lifeline for many Americans. Now, if Elon Musk and President Donald Trump make some moves, Americans could be getting another round of payments in the mail.
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Here’s everything you need to know about the proposed “DOGE dividend” payments.
Where Did the Idea Come From?
The idea for DOGE dividend payments came not from Musk himself, but from James Fishback, CEO of Azoria, an American investment firm. On Feb. 18, Fishback uploaded a four-page document to X outlining why he believed the American people should receive a dividend payment from the Department of Government Efficiency (DOGE).
“With DOGE reportedly achieving $1 billion in savings per day, President Trump has an opportunity to work with Congress to take DOGE one step further and deliver what we at Azoria call the ‘DOGE Dividend,’ a tax refund to be sent after the expiration of DOGE in July 2026 funded exclusively with a portion of the total savings delivered by DOGE,” Fishback wrote.
He calculated that if DOGE saves a total of $2 trillion, if 20% of that were returned to every U.S. taxpayer, each person would receive $5,000.
Musk responded positively to Fishback’s proposal, tweeting back that he “will check with the President.”
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Where Does the Proposal Stand Now?
On Feb. 19, Trump said that he was seriously considering distributing a DOGE dividend to the American people.
“We’re thinking about giving 20% back to the American citizens and 20% back to pay down debt,” he said at the FII Priority summit, though he did not give further details, CBS News reported.
What Do Experts Think?
Many experts are skeptical about the feasibility of these $5,000 payments.
“It is completely impossible for DOGE to save $2 trillion,” Jessica Reidl, an economist and senior fellow at the Manhattan Institute, told CBS. “Two-thirds of the $7 trillion federal budget goes to Social Security, Medicare, defense, veterans and interest on the debt — all of which has been taken off the table by President Trump.
“Saving $2 trillion would require eliminating nearly every remaining federal program,” she continued. “DOGE has no legal or constitutional authority to cut this spending; Congress must pass a law and that will not happen.”
Alex Nowrasteh, vice president for economic and social policy studies at the Cato Institute, also told CBS that DOGE’s plan to save $2 trillion is “very unrealistic.”
“I’d love to see it, but I think that is unrealistic, especially in the first year, and certainly unrealistic without Congress getting involved,” he said.
Other experts note that even if sending a DOGE dividend was possible, this would exacerbate inflation.
“Sending out such checks would effectively be a form of economic stimulus, which could raise inflation,” wrote Lauren Hirsch, a reporter who covers Wall Street for The New York Times. “That probably won’t sit well with the markets or with Republican lawmakers, who would have to approve such payouts in the first place.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Could You Be Getting a $5K DOGE Dividend Payment From Elon Musk?
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