President Donald Trump and Elon Musk, often regarded as an unofficial leader of the Department of Government Efficiency (DOGE), have floated the idea of giving back to Americans. But does this mean financial relief for citizens in Ohio?
The proposal is being discussed as a potential way to reduce federal spending. On Wednesday, February 19, Trump mentioned that his administration was considering sending out $5,000 stimulus checks to citizens, funded by savings from the DOGE initiative, according to USA TODAY. The savings would be based on a 20% allocation of DOGE funds.
“Americans deserve a ‘DOGE Dividend’: 20% of the money that DOGE saves should be sent back to hard-working Americans as a tax refund check. It was their money in the first place,” James Fishback, CEO and co-founder of Azoria Partners, posted to X earlier in February. “Let’s do this! This is how we rebuild trust in our government,” he added.
But is this idea too good to be true? Here’s what we know so far.
Can the Government Afford $5,000 Stimulus Checks?
To afford $5,000 checks for every citizen, DOGE must first reach its savings goal. According to Elon Musk, DOGE must aim for a $2 trillion savings target in order to make the checks feasible. However, Musk believes the organization could aim for a more realistic $1 trillion, noting in a January interview, “I think we’ll try for $2 trillion. I think that’s the best-case scenario, but we may land somewhere around $1 trillion.”
If DOGE does hit this target, the plan could be a reality. Musk has expressed confidence in its potential, but meeting that $2 trillion goal remains a significant hurdle.
What Is DOGE?
DOGE is a temporary organization created under the U.S. DOGE Service, led by Elon Musk. Its mission is to “modernize federal technology and software to maximize government efficiency and productivity.” The initiative is set to end by July 4, 2026. Notably, former Republican presidential candidate Vivek Ramaswamy, who is also from Ohio, helped Musk run DOGE before turning his focus toward a campaign for Ohio governor.
Musk has claimed that DOGE will reduce federal spending by up to 30% of the $6 trillion budget, and Ramaswamy proposed laying off half of all federal workers in an effort to reduce spending.
Who Would Receive a $5,000 Stimulus Check?
The proposed stimulus checks would likely be distributed in a similar manner to the 2020 COVID stimulus payments. During the COVID-19 pandemic, qualifying individuals received $1,200 checks, and married couples received $2,400, with an additional $500 for each qualifying child under 17. Small business grants, loans, and additional unemployment payments were also issued.
Similar criteria would likely apply to the DOGE dividend, meaning people who filed taxes in the previous two years, as well as recipients of Social Security or veterans’ benefits, would likely be eligible.
What Do Economists Think About the DOGE Stimulus?
Some economists are concerned about the long-term economic impact of sending out large stimulus checks. Judge Glock, the Manhattan Institute’s director of research, raised alarms about the potential effects on the federal deficit. He worries that issuing the DOGE dividend could fuel inflation, citing an increase in consumer spending and the growing national debt.
Professor Jay Zagorsky, an economist at Boston University’s Questrom School of Business, expressed similar concerns. He warned, “If DOGE starts mailing out large checks to a large number of people, that’s going to put a significant boost to inflation—especially with Trump’s tariffs causing more expensive goods and services.”
FAQs
1. What is DOGE and why is it important?
DOGE is a government initiative created to improve federal spending efficiency by modernizing technology and software. It aims to reduce federal costs by as much as 30% and could be a key source of funding for proposed stimulus checks.
2. Who would be eligible for the $5,000 stimulus check?
Eligibility for the $5,000 stimulus check would likely mirror the criteria for the 2020 COVID payments. This means individuals who filed taxes in the past two years or receive Social Security or veterans’ benefits could qualify.
3. How would DOGE reach the $2 trillion savings target?
Elon Musk has stated that DOGE would aim for a $2 trillion savings goal. This would come from cutting unnecessary government spending, including laying off federal workers and reducing inefficiencies. However, Musk believes a more achievable target might be $1 trillion.
4. Could this proposal lead to inflation?
Many economists are concerned that sending out large stimulus checks could increase inflation, especially if it’s coupled with higher tariffs on goods. Inflation could drive up prices, making it harder for Americans to feel the benefits of the payments.
5. Is this plan realistic?
While the proposal has drawn attention, reaching the $2 trillion savings target seems ambitious. However, if successful, the DOGE dividend could provide substantial relief to American citizens, albeit with potential risks to the economy in the long run.
As the plan develops, stay tuned for updates on whether this bold idea will come to fruition or remain a speculative discussion .