Musk considers sending all Americans $5,000 checks using DOGE savings

Tesla CEO Elon Musk has suggested he will discuss a proposal with President Donald Trump that could see millions of Americans receive a $5,000 tax refund check. The idea, known as the “DOGE Dividend,” would be funded by cost savings from the Musk-founded Department of Government Efficiency (DOGE).

The plan was first pitched by James Fishback, CEO of investment firm Azoria, also reported to be an outside adviser to DOGE. Back in January, the 29-year-old CEO told NBC he was willing to take co-founder Vivek Ramaswamy’s position in the department, after the latter left his post to pursue a political path.

Fishback shared the DOGE dividend idea on social media last Friday, calling for a tax refund check to be issued after the office’s mandate expires in July 2026. He claimed the checks would be funded entirely by a portion of the agency’s projected savings. 

President Trump and @ElonMusk should announce a ‘DOGE Dividend’—a tax refund check sent to every taxpayer, funded exclusively with a portion of the total savings delivered by DOGE. 🧵 pic.twitter.com/p5AZZj3Ttc

— James Fishback (@j_fishback) February 18, 2025

The Azoria head continued promoting the proposal on Tuesday, tagging Musk in his X post. Musk responded, saying he would “check with the president.” Later, Elon tempered growing expectations, adding that the decision ultimately rests with Trump.

Musk hints at DOGE giving taxpayers relief

If approved, the proposal would distribute a total of approximately $400 billion, covering 79 million households, roughly 60% of all US households. Analysts from the Kobeissi Letter pointed out that the figure represents 20% of DOGE’s projected savings by 2026. 

According to the Tax Policy Center, around 40% of tax filers in the US are considering non-payment, which proponents of the dividend argue makes the plan a way to “right the wrong done to the taxpayer.” 

Despite its potential benefits, critics are wary of past stimulus efforts, such as the nearly $4 trillion in pandemic relief distributed by the US government during the COVID-19 outbreak, contributed to long-term inflation. 

The Kobeissi Letter surmises that while the DOGE Dividend differs from traditional stimulus checks since it would be funded through savings rather than deficit spending, it could still lead to a modest rise in inflation.

Since its inception, DOGE has reportedly saved around $55 billion in taxpayer funds through roughly 1,200 cost-cutting initiatives. That translates to approximately $360 per taxpayer. While the savings mark less than 3% of the government expenditure watchdog’s $2 trillion goal, GOP leaders and Americans see it as solid progress for the agency’s first month.

Legal challenges to DOGE’s authority

Musk’s expanding influence in government cost-cutting has also drawn legal scrutiny. A federal judge recently denied a request from 14 states to issue a temporary restraining order against DOGE. The states sought to block the agency from accessing federal data and firing government employees.

US District Judge Tanya Chutkan ruled against the request, stating the states failed to demonstrate imminent or irreparable harm to US citizens. However, she acknowledged concerns about Musk’s authority over the agency, describing DOGE as an entity that was neither created by Congress nor subject to congressional oversight. 

Liberals propound that much of the federal budget is rigidly allocated, and it is difficult for DOGE to redirect funds or implement large-scale cuts without legislative approval.

“Even to move stuff around in the various accounts in a particular department or agency will often require a reprogramming,” a Democratic lawmaker told Washington-based publication NOTUS. “That sometimes involves congressional assent.”

According to one official from Inside the Office of Personnel Management (OPM), the agency appears focused on cutting costs wherever possible without a clear plan for where the appropriate funds ultimately go.

“It does not seem like they have gotten that far. They do not appear to be considering the consequences of what they are doing as a whole.”

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