We Americans have a fondness for stimulus checks… and who can blame us? Each time they were issued, they sparked movements and revitalized the economy, notably during the first term of President Donald Trump amid the Covid-19 pandemic. Millions of households appreciated these payments that arrived during challenging times and, thankfully, continued under Joe Biden’s administration.
Recently, rumors have circulated about potential stimulus checks to be distributed by the Department of Government Efficiency (DOGE), led by billionaire entrepreneur Elon Musk. These are called “DOGE dividends,” an initiative proposed by James Fishback, CEO of Azoria Partners, aiming to redistribute 20% of the savings generated by DOGE into $5,000 stimulus checks for qualifying households.
What are DOGE dividends and how would these stimulus checks be funded?
The initial goal of DOGE was to reduce $2 trillion in government spending, with plans to return $400 billion of those savings to the 79 million households that pay net federal taxes, excluding many low-income Americans not paying federal taxes. However, recent estimates have lowered the expected savings, bringing into question the feasibility of the plan.
Musk has shown interest in this proposal and communicated with Fishback via his social network X that he would discuss it with President Trump. Nonetheless, no further comments from Musk have surfaced since then, with his last notable update in April 2025, when he revised DOGE savings projections to $150 billion for the upcoming fiscal year, which could impact the amount of the potential checks.
Who would be eligible for DOGE dividend checks: Income thresholds
Recent research suggests that lower and moderate-income households often receive more in tax credits than they contribute in federal taxes, as highlighted by the Tax Foundation: their study indicates that the lowest 50% of earners in the US account for roughly 3% of the total income taxes collected by the Internal Revenue Service (IRS).
Additionally, an analysis by the Pew Research Center revealed that taxpayers earning less than $40,000 typically receive more in tax credits than they pay in taxes, resulting in a favorable financial position regarding the American tax system.
In summary, these statistics suggest that households within the mentioned income brackets may not be included in the distribution of DOGE dividends, given that it redistributes surplus funds saved by the federal government through DOGE, thereby excluding lower-income households in the context of tax refunds.
Fishback has made efforts to assure Americans, strongly stating that the distribution of DOGE dividends would not lead to inflation, since it would not be financed through monetary issuance (unlike the pandemic stimulus checks), but rather funded by the savings Musk achieves through the DOGE.
Joseph Camberato, CEO of National Business Capital, disagrees with Fishback’s view: “We all witnessed the aftermath of the government distributing stimulus checks during COVID. The impact would be less significant this time as it’s a one-time payment rather than a steady influx of funds; however, it would still inject additional money into the economy, which tends to drive prices upward.”
