Elon Musk’s impending departure from the Department of Government Efficiency could impact the issue of stimulus checks funded through federal cost-cutting measures.
Musk has repeatedly pushed for the savings made by his team to be given to the public in the form of “DOGE dividend checks,” but with no formal legislation introduced, and Musk appearing to stepping back, the policy could stall in Congress.
The Context
Under the plan, net-payers of federal income tax (individuals who pay more in taxes than they receive) would qualify. This requirement would exclude most Americans earning under $40,000 per year, as they typically do not owe federal income taxes after deductions and credits. About 79 million households in the U.S. would receive $5,000 from the 20 percent of the $2 trillion DOGE plans to save by cutting spending.
What To Know
The DOGE stimulus proposal hinges on massive government spending cuts, with projected savings redirected to the public. While Musk has spoken about potential savings, he has also cast doubt on the plan’s feasibility, saying that the agency may not be able to save enough money.
James Fishback, who first proposed the idea, has said the goal is to bring legislation forward soon. Fishback described the proposed $5,000 per household check as “modest but meaningful,” funded by a projected $400 billion in annual savings.
The checks would require approval from Congress, which would require a significant amount of political capital. And while Musk has indicated that he wants to support the project, his time at DOGE may end before he can see it through.
File photo: Elon Musk listens during a cabinet meeting held by U.S. President Donald Trump at the White House on March 24, 2025 in Washington, D.C. File photo: Elon Musk listens during a cabinet meeting held by U.S. President Donald Trump at the White House on March 24, 2025 in Washington, D.C. Getty Images
In a Fox News interview on Thursday, Vice President JD Vance confirmed that DOGE would continue working without Musk’s leadership once he stepped down.
“DOGE has got a lot of work to do, and, yeah, that work is going to continue after Elon leaves. But, fundamentally, Elon is going to remain a friend and an adviser of both me and the president,” Vance said.
This means that Musk may not be in a position to back the stimulus checks in the way it would need to pass a Congress deeply divided by President Donald Trump’s economic policy. Musk’s successor may also be less interested in delivering the stimulus checks, and leave the plan by the wayside.
As a special government employee, Musk is under a 130-day time limit in his current role as DOGE lead. Assuming that the start date for Musk’s position was the first day of Trump’s administration, this would mean that he is no longer able to lead the department on May 30.
This could be changed if the president decides to employ Musk as a permanent official.
What People Are Saying
James Fishback, who invented the idea of a “DOGE dividend,” said: “It’s time to refund the money. It’s also time for the DOGE dividend to give an incentive to taxpayers to call out waste, fraud and abuse in the government and to get them on board with this government efficiency movement.”
What Happens Next
It is not yet confirmed when Musk will depart from his position as the head of DOGE, or who will lead the agency afterward. Vance has said that Musk will continue to advise the president closely.
