Will Americans Receive a 2025 Stimulus Check Thanks to DOGE’s Savings?
President Donald Trump’s new Department of Government Efficiency (DOGE), aimed at cutting federal spending, has sparked speculation among Americans about the possibility of a stimulus check funded by these savings.
Why It Matters
Under the leadership of Tesla’s Elon Musk, DOGE has proposed mass layoffs in the federal government as a way to cut $2 trillion annually from U.S. agency budgets. As Americans haven't received large-scale stimulus checks since 2021, some are hopeful that the funds saved through DOGE's efforts could lead to future payments.
What to Know
Online discussions have erupted, with many urging DOGE to distribute stimulus checks, with one viral TikTok suggesting taxpayers could receive as much as $8,000 from the department's savings. CEO of Azoria investment firm, James Fishback, also voiced his support for returning DOGE’s savings to taxpayers, calling it a "DOGE Dividend."
Fishback posted on X, stating: “American taxpayers deserve a 'DOGE Dividend'—20% of the money saved by DOGE should go back to hardworking Americans as a tax refund.” He estimated that with $2 trillion in savings and 78 million taxpaying households, this could equate to a $5,000 refund per household.
How Much Money Has DOGE Saved So Far?
As of Tuesday, DOGE's savings tracker showed $55 billion saved from federal cuts, particularly targeting agencies like the United States Agency for International Development, which saw a $420.14 million funding reduction.
Other significant cuts are planned for the Food and Drug Administration, the National Institutes of Health, and the Centers for Disease Control and Prevention. Musk has also emphasized tackling fraud in Social Security, joking about a "vampire" issue in the system.
Will Americans Get a Refund Check from DOGE’s Savings?
So far, there’s been no indication that the savings from DOGE’s cuts will lead to stimulus checks for Americans. The $2 trillion in annual savings is likely to be used to reduce the national debt and potentially fund future tax cuts.
What Experts Are Saying
Alex Beene, a financial literacy instructor at the University of Tennessee, commented to Newsweek: "Although a stimulus check could be seen as a gesture of goodwill, the likelihood is low. Even with the potential savings, stimulus checks are costly, and the government is already deeply in debt without a pandemic-level emergency to justify them."
Kevin Thompson, CEO of 9i Capital, added: "Pumping more money into the economy would worsen inflation. It would be like offering a donut to someone with diabetes—it’s not a good solution."
Finance expert Michael Ryan described DOGE’s savings as akin to finding small errors in billing: "It means we’re borrowing slightly less, not that we have extra funds to distribute. It's like finding a coupon when our credit cards are maxed out—it’s great, but we’re still in debt."
What’s Next?
Thompson suggested that the Trump administration will focus on reducing spending, not increasing it with stimulus checks. "Any savings will likely go toward extending the Tax Cuts and Jobs Act (TCJA), which would cost $4.5 trillion to maintain," he said, predicting that any budget adjustments would aim to offset future liabilities rather than fund direct payments.
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