The US Debt Clock claims that the Department of Government Efficiency (DOGE) has found approximately $120 billion in savings. Treasury Secretary Scott Bessent estimated that the Elon Musk-headed task force has saved taxpayers more than $50 billion in one month. Legacy media outlets claim these figures are exaggerated and that the tally so far is much less. Whatever the numbers are, the new administration proposes to pass the savings along to US taxpayers by handing out DOGE dividend checks. But is this a wise use of the money for a debt-laden government?
In a Feb. 18 memo shared on the social media platform X, James Fishback, CEO of the investment firm Azoria, suggested that President Donald Trump and billionaire Elon Musk should announce tax refund checks – funded entirely with a portion of the savings delivered by DOGE – and issue them to every taxpayer. The recommended sum was $5,000, with a July 2026 due date, for 79 million households.
The SpaceX and Tesla Motors executive appeared to endorse the idea of a DOGE dividend, replying on the website that he “will check with the President.” Musk ostensibly did, and President Trump appears to favor the concept. Speaking to an investment conference in Miami a day later, Trump said the US government would “give 20% of the DOGE savings to American citizens, and 20% goes to paying down debt.”
Stephen Miller, the deputy White House Chief of Staff, explained how it would work. “Well, the way that it works is when you achieve savings, you can either return it to the taxpayers, you can return it to our debtors, or it can be cycled into next year’s budget,” Miller said at a Feb. 19 press briefing. “So, in other words, you can just transfer it into the next fiscal window and then lower the overall spending level.”
Proponents assert that a DOGE-driven stimulus check would be money returned to the American people, serving as a form of restitution for all the years that politicians and bureaucrats have abused and wasted taxpayer resources. This sounds good on paper, but the reality is slightly different.
The United States is still paying dearly for the last few rounds of pandemic-era free money. During the public health crisis, qualifying individuals received $1,200 in March 2020, $600 in December 2020, and $1,400 in March 2021. Estimates vary, but the most commonly cited paper comes from the Federal Reserve Bank of St. Louis, which determined the stimulus contributed nearly 3% of the 7.9% annual inflation rate posted in February 2022. The reason was simple enough: Too much money chasing too few goods.
Fast forward to early 2025, and the United States has yet to vanquish this inflation from the economy.
However, supporters argue this plan would not be inflationary for several reasons. First, DOGE dividend checks would be funded exclusively with DOGE-fueled savings rather than financed through budget deficits. Second, the recipients would save the funds rather than spend the cash injection, meaning there would be a productive use of the money. Finally, it would incentivize millions to return to the labor force, effectively contributing to society rather than sitting at home.
Meanwhile, the price tag for this endeavor is projected to be $400 billion, close to half of Uncle Sam’s annual interest payments. This is a crucial number, mainly because Musk has averred that DOGE could help cut the federal deficit in half from the current $2 trillion. So, even if the administration accomplished this lofty goal, the US government is still maintaining a negative cash flow. These public policy pursuits require the nation’s capital to swim in an ocean of green ink rather than a sizable budget gap, a $36 trillion national debt, and $200 trillion in unfunded obligations.
Remember when Rep. Nancy Pelosi (D-CA) declared that companies giving raises, bonuses, and benefits to workers following the Tax Cuts and Jobs Act were crumbs? Well, another progressive lawmaker is having a Pelosi moment. Rep. Jasmine Crockett (D-TX) recently suggested that the US government is “not in the business of giving out money” and that $5,000 would do little for the American people.
This is absurd because the United States has been in the business of doling out free cash to foreign governments, terrorist groups, and illegal immigrants for decades. Plus, who can forget about the crisis-era stimulus checks? Additionally, $5,000 would help many households pay off their credit card debt or ensure the light bill is paid for the remainder of the year, so this is no small change.
Still, despite the political impulse to throw bags of DOGE dividend checks in the mailbox, the Trump administration may need to remember that it was elected to be fiscally responsible.