The upcoming exit of Elon Musk from the Department of Government Efficiency may influence the matter of stimulus checks funded by federal cost-reduction initiatives.
Musk has consistently advocated for the savings generated by his team to be issued to the public as “DOGE dividend checks.” However, with no formal legislation in place and Musk seemingly stepping back, the proposal could face delays in Congress.
Background
According to the plan, only net-payers of federal income tax (those who pay more in taxes than they receive) would be eligible. This stipulation would leave out the majority of Americans earning less than $40,000 annually, as they generally do not owe federal income taxes post-deductions and credits. Approximately 79 million households in the U.S. could receive $5,000 from the 20 percent of the $2 trillion supposed savings from DOGE by reducing spending.
Key Information
The DOGE stimulus initiative relies on substantial cuts to government spending, with anticipated savings redirected to the public. While Musk has discussed possible savings, he has also expressed skepticism about the plan’s viability, indicating that the agency may struggle to achieve sufficient savings.
James Fishback, the individual who originally proposed the concept, has stated that he intends to advance legislation shortly. Fishback characterized the proposed $5,000 checks per household as “modest but meaningful,” to be funded by an estimated $400 billion in yearly savings.
For this proposal to move forward, it would require Congressional approval, necessitating considerable political support. Although Musk has shown interest in endorsing the project, his tenure at DOGE might conclude before he can actualize it.
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In a Fox News interview on Thursday, Vice President JD Vance confirmed that DOGE will continue its work without Musk’s leadership after his departure.
“DOGE has plenty of tasks ahead, and that work will carry on post-Elon’s exit. However, Elon will still be a friend and advisor to both me and the president,” Vance noted.
This indicates that Musk may not be able to support the stimulus checks as needed to pass through a Congress deeply divided over President Donald Trump’s economic policies. His successor may also show less interest in implementing the stimulus checks, potentially leaving the plan unattended.
As a special government employee, Musk is limited to a 130-day term in his current role as head of DOGE. If his start date coincided with the beginning of Trump’s administration, this would imply that he will no longer be able to lead the department after May 30.
This situation could change if the president opts to keep Musk as a permanent official.
Public Reactions
James Fishback, the creator of the “DOGE dividend” concept, remarked: “It’s time to refund the money. The DOGE dividend should also provide an incentive for taxpayers to identify waste, fraud, and abuse within the government and align them with this government efficiency initiative.”
Looking Ahead
It remains uncertain when Musk will vacate his post as head of DOGE and who will succeed him. Vance has mentioned that Musk will maintain close advisory relations with the president.
