The program, related to the Department of Government Efficiency (DOGE), is quite different from the earlier IRS-handled stimulus checks issued during the COVID-19 pandemic.
The genesis of DOGE checks
The concept of DOGE checks was thought up by James Fishback, an advisor who suggested that savings built up through the Department of Government Efficiency, led by entrepreneur Elon Musk, be paid out to taxpayers. Fishback has suggested 20% of DOGE’s savings into the hands of American families and 20% more toward paying down the national debt. The concept has picked up steam under the Trump administration and is being contemplated.
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DOGE checks vs. pandemic stimulus payments
It is important to distinguish between proposed DOGE checks and pandemic stimulus checks. The three-tranche stimulus checks, endorsed by the Trump and Biden administrations, were designed to provide short-term fiscal stimulus to families facing economic distress due to COVID-19. The checks were intended to stimulate consumer spending and maintain circulation in the economy. But the plan was responsible for inflation in the medium and long term.
On the other hand, DOGE checks would be funded from targeted savings from the federal budget rather than direct government expenditure. The proposal is to send $5,000 checks to qualified taxpayers, backed by tighter fiscal policies that will contain inflation—something that was not so much emphasized with the pandemic stimulus checks.
Fiscal implications and legislative hurdles
DOGE would cut federal expenditure by $2 trillion by July 2026. If so, 20% of that, or some $400 billion, could be sent to 79 million taxpayers in the form of $5,000 checks. The plan requires congressional approval, and it has economic and legislative challenges. Concern has been voiced that the massive payments would raise inflation, which would cancel out the fiscal belt-tightening projected.
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Elon Musk’s involvement and the genesis of DOGE
Elon Musk’s tenure in the federal government has been marked by bold moves toward reducing government expenditure. On January 25, 2025, Musk launched what was described as a “digital coup,” seizing control of many federal agencies in an attempt to cut the federal budget by almost $2 trillion. This involved targeting agencies like Agriculture, Defense, and Education, and implementing austerity measures that involved workers being fired and office closures.
Effect on federal agencies and public services
The severe cutting of costs that DOGE has proposed has caused concern for how it will impact public services. The Social Security Administration (SSA), for instance, is facing severe budget cuts, which could result in 7,000 lost jobs and the shutdown of six regional offices. This will be felt by as many as 69 million Americans who rely on Social Security benefits, potentially delaying payments and ending telephone assistance to claims processing.
Public and political responses
The DOGE proposal has been met with both positive and negative comments. The supporters of the proposal believe that cutting government expenditure and returning the savings to citizens will alleviate financial pressure and encourage prudence in finance. According to Fishback, the economic climate at the moment, with lower energy costs and tight restraints on public expenditure, is different from the period during which the 2020 pandemic was occurring; hence, the practice is more realistic.
Critics are worried, however, about potentially damaging crucial public services and the economy as a whole. Democratic Senators Ron Wyden and Elizabeth Warren criticized the SSA suggested cuts in long-term impact and delayed benefits payments. Huge payments like the DOGE checks are also feared to trigger inflation that will erase the intended fiscal discipline.
