Trump called DOGE stimulus checks ‘a great idea.’ But will NC residents get the $5,000?
It didn’t take long for the idea of $5,000 dividend checks from Elon Musk’s Department of Government Efficiency (DOGE) to start circulating on social media.
The idea came from James Fishback, CEO of the investment firm Azoria, who posted the details of his plan on X. The plan involves splitting up 20% of DOGE’s total savings — an estimated $2 trillion — and dividing it into $5,000 checks for each of the 79 million taxpaying households in the U.S.
Musk responded to Fishback, telling him he would “check with the President.”
Rumors took off once President Trump confirmed his support for the plan on Wednesday, Feb. 19, NBC News reported.
“A 20% dividend, so to speak, for the money that we’re saving by going after the waste, fraud and abuse and all of the other things that are happening. I think it’s a great idea,” Trump told a reporter aboard Air Force One.
Here’s how the plan would work and your likelihood of getting a check soon.
How would the plan work?
Under the plan, only net-income taxpaying households, or households that pay more in taxes than they get back, would receive the dividend checks, NBC News reported.
According to the Tax Policy Center, “most low-income households do not pay federal income taxes, typically because they owe no tax or because tax credits offset the tax they would owe.”
In his proposal, Fishback wrote that the checks would not lead to inflation because they would be funded with dollars that have already been appropriated, rather than “deficit-financed,” like the COVID stimulus checks.
The additional funds would also not lead to inflation because the people receiving them would be more likely to save it or pay off debt, instead of spend it, Fishback wrote.
When would DOGE checks be given out?
For the plan to work, it would have to clear a major hurdle to start, John Connaughton, an economics professor at UNC Charlotte, told The Charlotte Observer.
“I don’t think it would be possible without Congressional approval,” Connaughton said.
He also pointed out that checks wouldn’t be distributed anytime soon due to DOGE’s large savings goal of $2 trillion.
“It’s not something that’s going to happen next month or three months from now,” said Connaughton. “It’s contingent on DOGE meeting certain goals. If those goals aren’t met, then $5,000 is off the table.”
Connaughton suggested the $5,000 figure could be used as a negotiating tactic by Trump, and that the actual dollar amount for the checks would be lower. He also said Congress could implement some a cap on who gets the checks, similar to how households with an adjusted gross income of $150,000 were excluded from COVID stimulus checks.
“It’s probably going to be closer to two grand,” Connaughton said. “But nobody’s getting any checks this spring.”
Inspired by a story from The Ledger-Enquirer in Columbus, Georgia.
This story was originally published February 27, 2025 at 12:53 PM with the headline "Trump called DOGE stimulus checks ‘a great idea.’ But will NC residents get the $5,000?."
