Many Americans wonder whether they will receive a $5,000 dividend check from the Department of Government Efficiency (DOGE). Here’s an update on the status of this proposed stimulus and who might qualify if it becomes a reality.
Trump’s interest in the DOGE dividend
During a recent speech, President Donald Trump expressed interest in issuing $5,000 stimulus checks as part of a ‘DOGE dividend.’ This plan would involve returning 20% of the savings identified by DOGE to American taxpayers.
DOGE, which stands for the Department of Government Efficiency, is an initiative led by Elon Musk. Its goal is to reduce federal spending, cut waste, and modernize government operations. Trump credited DOGE with uncovering significant financial inefficiencies and suggested a portion of those savings could go back to the public.
“The numbers are incredible, Elon. So many millions, billions—hundreds of billions,” Trump said. “And we’re thinking about giving 20% back to the American citizens and 20% down to pay back our debt.”
Origin of the ‘DOGE dividend’
The idea for the ‘DOGE Dividend’ was initially proposed by James Fishback, CEO of Azoria investment firm. Fishback suggested on Musk’s social media platform X that Trump and Musk should announce a tax refund check funded entirely by DOGE’s savings.
Musk responded, “Will check with the President.”
Fishback later told NewsNation he was optimistic that a bill would be introduced to make Trump’s vision for the DOGE dividend a reality. “It isn’t just enough to identify waste, fraud, and abuse. We have to refund taxpayers when their money was wasted and misused,” he said.
How would the DOGE dividend work?
While Trump has not provided further details, Fishback released a four-page proposal outlining how the dividend would function. Unlike previous stimulus checks, the DOGE dividend would not be deficit-financed. Instead, it would be funded entirely by the savings generated by DOGE.
One major difference between the DOGE dividend and past stimulus programs is eligibility. Fishback emphasized that payments would only go to tax-paying households. During the pandemic, stimulus checks were sent out broadly, including to low-income households that don’t pay federal income taxes. The DOGE dividend would specifically target households that are net payers of federal income tax.
“A lot of low-income households essentially saw transfer payments of 25 to 30% of their annual income during the pandemic,” Fishback said. “This exclusively goes to households that are net-payers of federal income tax, meaning they have a lower propensity to spend and a higher propensity to save.”
Who would qualify?
The proposed plan would exclude lower-income Americans who do not pay more in taxes than they receive in government benefits. According to the Pew Research Center, most Americans with an adjusted gross income below $40,000 effectively pay no federal income tax.
While details on income thresholds remain unclear, the plan appears to favor middle- and high-income earners who contribute more in federal taxes than they receive in deductions or credits.
“I’m honored to have the president’s support, but the plan is very simple,” Fishback said. “DOGE is going to save X amount of money over the next couple of years. Let’s take 20% of that and send it right back to the hard-working taxpayers who sent it to D.C. in the first place.”
Stimulus, refund, or dividend?
The term ‘dividend’ typically refers to a corporation distributing profits to shareholders. A refund is money returned to someone who overpaid. A stimulus check, by contrast, is intended to encourage spending and boost the economy.
The DOGE dividend proposal, however, blends these concepts. While structured as a refund, it functions similarly to a dividend, redistributing government savings to those who contribute the most in taxes.
What is DOGE?
The Department of Government Efficiency (DOGE), officially called the U.S. DOGE Service Temporary Organization, was created by Trump and is led by Musk as a ‘special government employee.’
DOGE’s mission is to cut federal spending, reduce regulations, and modernize government technology to improve efficiency. When it was introduced, Trump claimed DOGE could save as much as $2 trillion annually. So far, DOGE has reported savings of $105 billion.
Will the DOGE dividend happen?
As of now, Trump has not confirmed whether the DOGE dividend will be officially proposed or enacted. While Fishback has met with lawmakers and described the discussions as “very productive,” no formal legislation has been introduced.
For now, the $5,000 DOGE dividend remains a concept rather than an approved plan. Taxpayers eager for updates should stay tuned for further announcements from Trump and Musk.
