The idea of giving $5,000 to households that pay taxes, known as the “DOGE Dividend,” is still in the discussion stage and has not yet moved forward in Congress.
The project is promoted by the Department of Government Efficiency (DOGE), led by Elon Musk, with support from Donald Trump. The plan aims to redistribute 20% of federal savings, but recent tax reports are raising doubts about its feasibility.
How Would the DOGE Dividend Work?
James Fishback, CEO of Azoria, came up with a plan based on federal savings. He proposed that if the federal government saved $2 trillion in the next 18 months, $400 billion of those savings could be used to send $5,000 checks to 79 million households.
Both Trump and Musk have expressed interest in this idea, though neither has made a formal commitment to it yet.
Elon Musk shared on X (formerly Twitter) that he would discuss the idea with the president, according to various media outlets.
Is the DOGE Dividend Moving Forward?
As of now, no bill has been presented to Congress, which is a crucial step for any new law to be approved. On April 8, 2025, sources inside Congress said that there has been no significant progress on the proposal.
Fishback continues to push for dialogue with legislators, but reports from the Congressional Budget Office (CBO) show a rising federal deficit, which adds doubts about the program’s financial feasibility.
The CBO reported a 5% increase in the deficit in February 2025, making it harder to find savings. While Fishback remains hopeful on social media, political analysts believe that the DOGE Dividend is unlikely to happen before 2026, due to the complexity of the budget.
Who Would Qualify for the DOGE Dividend?
The proposed eligibility rules have sparked controversy. The program is designed for net taxpayers, meaning only households that pay more in taxes than they receive in benefits would qualify.
This would exclude many Americans, especially those with low incomes. According to the Pew Research Center, about 35% of households with incomes under $40,000 would not qualify. Some see this as unfair, while supporters argue that it targets those who “finance the system” through their taxes.
There are also other eligibility requirements, such as excluding undocumented immigrants and only allowing households, not individuals, to qualify.
This means that Social Security beneficiaries would need to meet these conditions as well. Some political leaders, like House Speaker Mike Johnson, suggest that the savings should be used to reduce the national deficit instead of going towards direct payments to households.
From April 8-10, 2025, updates show that the negotiations are still stuck in a deadlock. Posts on social media claiming legislative progress have not been confirmed, and experts believe these claims are either misinformation or speculative, especially with elections coming up.
How Are These Stimulus Checks Different from COVID-19 Stimulus Payments?
While the goal of the DOGE Dividend is similar to the COVID-era stimulus checks—to inject money into state and city economies—there are some key differences in how these programs would be funded.
Unlike the COVID-19 stimulus checks, which were financed through debt, the DOGE Dividend would be funded by spending cuts. Fishback believes this approach would avoid creating inflationary pressure. However, economists cited by Forbes warn that injecting $400 billion into the economy could lead to higher demand, which might drive up prices.