A proposal to distribute $5,000 stimulus checks to tax-paying households, funded by savings from the Department of Government Efficiency (DOGE), has sparked debate in Washington.
While the proposed “DOGE Dividend” has received attention and support from some quarters, including President Donald Trump and Elon Musk, some senators are skeptical due to concerns about fiscal responsibility and the national debt.
On Friday, Newsweek emailed Senators Rand Paul, Josh Hawley, Thom Tillis, Elizabeth Warren, Bernie Sanders, and John Kennedy to request comment.
Why It Matters
The DOGE check idea has sparked a broader debate about fiscal responsibility, government efficiency, and the government’s role in managing and redistributing savings.
Under the proposal, the DOGE would use 20% of its total savings to fund a one-time $5,000 payment to each qualifying tax-paying household.
What To Know
The “DOGE Dividend” proposal, devised by investment firm CEO James Fishback, is framed as a way to compensate American taxpayers for the government’s previous inefficiencies.
However, key members of the Senate have expressed reservations. Republican Speaker Mike Johnson emphasized fiscal responsibility over political gains at the Conservative Political Action Conference (CPAC) on Thursday, citing the country’s $36 trillion debt as a source of concern.
“We have a federal debt of $36 trillion. We face a massive deficit. I believe we need to pay down the credit card. Right? “That’s what I believe we should do,” Johnson said.
Republican senators Cynthia Lummis and Ron Johnson have stated that they would prioritize a balanced budget and addressing inflation before considering dividend checks.
Lummis’ team referred Newsweek to a quote the senator gave Scripps News this week. “If there is money left over after we address inflation, debt, and deficit, it is always a good idea to return taxpayers’ money. But when we’re $36 trillion in debt, we’ve dug ourselves a deep hole,” Lummis said.
Johnson told Newsmax that any savings should first go toward balancing the budget.
“Well I’m happy to do that once we balance the budget… those savings ought to be put toward spending reductions so we can balance the budget, so we can start returning more money to the American taxpayer,” Johnson said in response.
Republican Senator Thom Tillis of North Carolina has echoed the sentiment. The senator argued that savings should be used to reduce the national debt rather than distributed as checks, telling Business Insider that “sending checks is not the smartest way to spend savings.”
Republican Senator Josh Hawley, on the other hand, told Scripps that he “[likes] the idea of returning money to the American taxpayer” but suggested that the funds be directed toward direct relief measures such as a child tax credit.
What People Are Saying
Republican Senator Cynthia Lummis’ team referred Newsweek to a quote she gave to Scripps News: “I’m very interested in eliminating the debt and deficit, as well as controlling inflation. So those would be my top priorities for saving money with DOGE.”
“If there is money left over after we address inflation, debt, and deficit, it is always a good idea to return taxpayers’ money. But when we’re $36 trillion in debt, we’ve dug ourselves a pretty big hole, so we need to start there.”
Republican Senator Ron Johnson’s team directed Newsweek to the senator’s comments on X (formerly Twitter) in response to the proposal: “I’m always happy to let the American people keep more of their hard-earned money, but DOGE savings should first go toward reducing spending so that inflation doesn’t become the silent tax robbing them of their purchasing power.”
Republican Senator Josh Hawley of Missouri told Scripps News, “I like the idea of returning money to American taxpayers. During COVID-19, Bernie Sanders and I advocated for direct taxpayer relief, so I like that model.
Whether you do it directly to everyone or use it to fund, say, a child tax credit, which would provide direct relief to every working family who works and pays payroll taxes, that would be fantastic.”
Republican Senator Thom Tillis of North Carolina told Business Insider that he has three grandchildren under the age of eight. Their fractional share of the national debt is approximately $100,000. I believe it makes sense to help pay down that debt obligation.”
Republican Speaker Mike Johnson stated at CPAC on Thursday: “Politically, that would be great for us, you know, you can send everyone a check… But, if you think about our core principles, fiscal responsibility is what conservatives do; it’s our brand.
We have a federal debt of $36 trillion. We face a massive deficit. I believe we need to pay down the credit card. Right? That’s what I think we should do.”
Representative Jasmine Crockett, a Democrat from Texas, wrote on X: “I stated that the DOGE checks were dead on arrival, and MAGA went crazy… I also mentioned that $5,000 isn’t ‘it.’ If you don’t have a job because he’s sending us into a recession that will put people out of work.
I’m sure the average person would prefer to have a steady income, but these fools are so slow that they can’t hear a single sentence.
Also, what is $5,000 when you don’t have Social Security, Medicaid, Medicare, SNAP, housing benefits, and so on?”
What Happens Next
With differing views among lawmakers and the need for congressional approval, the future of the “DOGE Dividend” is uncertain.
Fishback told Business Insider that the proposal was emailed to White House Chief of Staff Susie Wiles, but there had been no response as of Wednesday.
