Lately, many people on social media have been talking about stimulus checks and a new idea called “DOGE dividends.” While most Americans know about stimulus checks, which were used during the COVID-19 pandemic to support people financially, DOGE dividends are something new. This fresh proposal could bring thousands of dollars to American families—if it moves forward.
Let’s break down what DOGE dividends are, who could get them, and how much money might actually be sent out.
What Are DOGE Dividends?
The DOGE dividends plan is connected to the Department of Government Efficiency (DOGE), which was created on January 20, 2025, during the second term of Donald Trump. The department is being led by Elon Musk and Vivek Ramaswamy. The main goal of DOGE is to reduce government spending and save money through efficiency.
The idea of dividends was suggested by James Fishback, a CEO of an investment company. He proposed that 20% of the savings from DOGE’s cost-cutting should be returned to taxpayers in the form of $5,000 checks per household.
How Much Money Could Be Given?
If the DOGE department manages to save $2 trillion in 18 months, then 20% of that—around $400 billion— would be shared among eligible households. This would mean roughly 79 million families could receive a stimulus-style payment of $5,000 each.
However, experts say the actual amount could be much lower, depending on the real savings. If the savings are smaller, the check might only be $1,250 to $2,500 per eligible family.
Who Could Qualify for DOGE Dividends?
One important point is that not every family will be eligible. The plan only includes “net payers” of federal income tax—meaning families who pay more in taxes than they receive in government benefits.
This rule would exclude many low-income families, especially those earning less than $40,000 per year. That’s because such families usually pay little or no federal income tax after deductions and credits. In fact, many low-income households get more back in tax refunds than they pay.
So, who would likely qualify? Households in the top 60% of income earners, usually making over $47,000 per year, would have a better chance of receiving these payments.
Supporters of this plan believe giving the money to higher earners would help avoid inflation, because low-income families often spend money quickly, which could raise prices in the market.
Is This Like the COVID-19 Stimulus Checks?
In some ways, yes. Just like the COVID-19 stimulus checks during Trump and Biden’s time, these DOGE dividends aim to send direct payments to Americans. However, this plan is more limited—only people who meet the income and tax rules would receive money.
Others have compared this to Alaska’s Permanent Fund Dividend, where the state gives money to residents from oil revenues every year.
Still, there is no guarantee that the full $5,000 will be given. Some lawmakers are pushing for different uses of the savings, like increasing the Child Tax Credit instead.
What Are Politicians Saying?
Some public figures are supporting the idea, while others are being careful. For example:
- Donald Trump has spoken in favour of the plan in his speeches.
- Elon Musk has shown interest, though he hasn’t made any official statements.
- Senator Josh Hawley likes the idea but wants to use the money for children’s tax credits.
- Senator Ted Cruz says more details are needed.
- House Speaker Mike Johnson is unsure, saying it may not be financially responsible.
The idea of DOGE dividends sounds exciting for many American families, especially with talk of receiving $5,000 checks. But it’s still just a proposal. Whether it becomes real or not depends on how much money the government saves and what lawmakers decide to do with those savings.
If the plan moves forward, only families who pay federal income taxes and earn over a certain amount would benefit. For now, it’s important to stay updated as the government gives more details in the coming months.