DOGE Dividends and Trump's Crypto Strategy: What You Need to Know

The idea of sending $5,000 dividend checks to American households is making waves, with support from President Donald Trump as part of efforts to cut federal spending, but here’s why it won’t work.

This plan is championed by a new initiative called the Department of Government Efficiency (DOGE), which aims to reduce wasteful government expenditure and is run by Elon Musk, the world’s richest man.

However, questions remain about whether this ambitious plan can become a reality or if it’s just a political statement without the necessary groundwork and it seems as though it’s leaning towards the latter.

DOGE, led by an unelected billionaire, has set its sights on saving billions through a thorough review of federal contracts and spending in a bid to free up resources, as part of a broader attempt to streamline government and cut down on unnecessary programs.

However, DOGE’s actions have raised concerns, such as the controversial cancellation of Ebola prevention programs and the reshaping of international aid through the reduction of USAID’s workforce potentially damaging United States influence and interests around the globe.

Republicans claim these cuts are presented as part of a larger strategy to save money and fund tax refunds but experts remain cautious about the real impact and the logistics of executing such a proposal.

President Trump has expressed his enthusiasm for the DOGE initiative, but many wonder whether the savings will be substantial enough to justify sending $5000 checks to households and whether this is simply more political narrative positioning from the 78-year-old.

Why DOGE’s dividends won’t work

Even if DOGE can identify enough savings, the $5,000 checks will face several hurdles, the first of which is dealing with the challenge economic reality with $2 trillion needed for the program to be viable.

In January, Musk said that this goal was optimistic by calling it a “best case outcome,” and referring to then $2tn target being “overage”, thus suggesting DOGE will be happy with a far lower number than the ambitious aim.

That means the $5000 number itself is already poised to plunge. Additionally, DOGE reportedly saved $55 billion during the first month of Trump’s presidency and the initiative would need to save more than $110 billion each month to meet its target.

So it’s already chasing to catch up and available options to cut money down further will only begin to dry up and run out too, adding to the long odds of Americans ever seeing the $5000 check.

Another significant challenge is political: any direct payments to the American public would require approval from Congress and many Republican lawmakers remain hesitant, despite the backing of Trump and other White House officials.

Additionally, inflation is still a key concern and injecting $400 billion into the economy through direct payments will further fuel consumer price hikes.

Why you may not even get a check anyway even if DOGE works

The proposal to send $5,000 checks to Americans is based on the goal of cutting $2 trillion dollars in federal spending, although Musk himself has already admitted the true target is around $1 trillion.

According to the plan, 20% of those savings, which is approximately around about $400 billion, could be used to fund the checks to go directly to over 79 million taxpaying households in the United States.

However, this rebate would not be extended to all Americans. Only households that are “net payers of federal income tax” would qualify, meaning people who pay more in taxes than they receive back in refunds.

This excludes many lower-income households, as data from the Pew Research Center suggests that individuals earning less than $40,000 per year typically do not pay federal income taxes and won’t be eligible.

However, James Fishback, CEO of investment firm Azoria, clarified that there’s no minimum income requirement, but Americans must file a federal tax return to receive the dividend.

The exact mechanics of how this would work, however, remain unclear.