DOGE Dividend Check: 3 Key Factors To Watch That Could Decide If You Get $5,000
Written by
Marc Guberti
Edited by
Cory Dudak
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The Department of Government Efficiency (DOGE) has been working hard to cut federal spending. If the agency achieves its objectives, consumers will experience lower inflation and interest rates. However, DOGE has also floated the idea of giving taxpayers $5,000.
The idea is an easy one for taxpayers to rally around. Who wouldn’t want an extra $5,000? However, the DOGE dividend faces a few roadblocks. Some of the roadblocks are political, while others are practical. These are some of the key factors that will determine whether you receive a $5,000 dividend from DOGE or not.
Congress Can Take a While To Pass the Bill
Although DOGE has been moving quickly, that hasn’t always been true for Congress. Any stalling in the legislative branch could prolong the DOGE dividend’s deployment. However, Republicans have the majority in the House and Senate, which might increase the likelihood of getting this bill passed.
President Trump can also issue an executive order to speed up DOGE dividend payments. However, Republican lawmakers have expressed pessimism about the initiative, according to multiple news outlets. If DOGE posts substantial government reductions and gets more voters behind the dividend, Republican lawmakers may yield to the pressure. The dividend is even popular among Democrat voters, per Newsweek, potentially bolstering Republican candidates’ support in future elections.
Inflation
This isn’t the first time the government has wanted to give citizens free money. Many people received stimulus checks during the pandemic. It seemed like a great idea at the time, but it caused a significant increase in the money supply, which set the stage for record-breaking inflation in 2022.
It’s a big fear that a DOGE dividend could create a similar effect and amplify inflation. Tariffs can complicate matters and lead to short-term price hikes on various products and services. However, there are some differences between the DOGE dividend and pandemic stimulus checks.
Stimulus checks increased the money supply, but DOGE aims to do the opposite. The agency isn’t printing money out of thin air, and can only give $5,000 to each taxpayer if the team saves enough money by removing government waste. The idea behind the DOGE dividend is that the agency pays government debt and uses the remaining funds to reward taxpayers. Early signs show promise, but it will take a lot more government reductions to give every qualifying taxpayer a $5,000 check.
How Much DOGE Reduces Government Spending
Although a $5,000 DOGE dividend would be nice if the agency fulfills its objectives, it’s easier said than done. Elon Musk said on X that $5,000 is the best-case scenario. While a DOGE dividend is still possible, it may be a little less than $5,000. The DOGE website provides updates on how much the company is saving.
As of March 6, DOGE claimed to have saved taxpayers $105 billion, which comes to $652.17 per taxpayer. The website is currently updated weekly with the promise of real-time updates in the future. DOGE still has a long way to go before it can give taxpayers a $5,000 refund. However, even a smaller check would go a long way in helping Americans cover everyday expenses.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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