DOGE may have good news. The last time the federal government released widespread stimulus checks was during the COVID-19 pandemic to help eligible individuals cope with the financial implications that came with the pandemic, such as increased cost-of-living, widespread job loss and retrenchment, as well as families’ breadwinners passing away due to the virus. Now, a new federal stimulus check is rumored to be considered by the Trump Administration. The check is related to the federal spending savings the new Department of Government Efficiency (DOGE) has made.
What is DOGE?
DOGE is an external advisory body headed by Tesla CEO Elon Musk. While in the name, DOGE is not an official department of the US federal government but is an external body who has been created and brought onboard by the Trump Administration for an 18-month contract. The role of the new agency is to make recommendations to the administration on how to reduce unnecessary government spending.
Initially, DOGE had an overarching goal of saving $2 trillion in federal spending. However, this has since been reduced to $150 billion. The federal government has a $7 trillion budget. So far, to achieve this savings goal, DOGE has made widespread budget cuts and reduced staff numbers across departments in the federal government. Most notably, the agency has made cuts to Medicaid and USAID, which were met with controversy.
A $5,000 stimulus payment from DOGE faces a new change
James Fishback, Founder and CEO of investment firm Azoria, has suggested in an interview with Chris Cuomo back in April that, should the savings target be met by DOGE, the federal government may distribute 20% of these savings to the general public in the form of stimulus payments. Originally, with the $2 trillion savings goal, this would have amounted to a stimulus payment of $5,000. However, with the new revised goal, this payment would be between $800 to $1,000 for taxpayers.
While there has been no confirmation from the white house if such a payment is in the works, DOGE is far from reaching their new goal of $150 billion in savings, a condition which would need to be met for the payment to happen. While DOGE claims that they have already saved $165 billion, reporters have noted that these numbers are not accurate, with the actual numbers looking more like $15 billion.
“Even assuming that the website’s stated savings have become twice as accurate as they were in February, annual savings would reach perhaps $15 billion, or 0.2 percent of federal spending,” describes Jessica Riedl for The Atlantic
Requirements to receive the DOGE stimulus payment
Assuming that DOGE can achieve their savings target by the time their contract ends in July of next year, there would most likely be eligibility requirements to receive the stimulus payment. The following criteria may need to be met to be eligible for the DOGE stimulus payment:
- The household of the taxpayer must show positive net tax payments.
- Payments would be issued per household, not per individual. This is relevant for married individuals who both file
- Ig you are a Social Security recipient, you may be able to qualify if you meet the income thresholds.
- You would not need to apply to receive the payment, as eligibility would be determined through IRS filings.
While the prospect of such a stimulus payment is exciting for taxpayers, it is important to remember that none of this has been confirmed by a federal source, and DOGE is far from reaching their savings targets if confirmed numbers are to be believed. While saving money may be on many taxpayers’ minds, it is important to look for other methods to increase your income beyond the prospect of federal stimulus payments, which would only be a one-time payment.
