A new stimulus payment of $5,000 is still under discussion in the United States Congress. This payment is part of a proposal linked to the savings made through a campaign aimed at reducing government spending.
The campaign was led by the Department of Government Efficiency (DOGE), a new department under the Trump administration. While DOGE’s actions have reportedly saved nearly $2 trillion in federal spending, there’s no clear confirmation yet on whether this money will be distributed to Americans.
What Is the DOGE Initiative?
The Department of Government Efficiency (DOGE) was created to reduce bureaucracy and unnecessary government spending. The plan was to save taxpayer money and potentially return some of these savings back to the public in the form of a stimulus payment. The amount being discussed is a one-time payment of $5,000 per eligible household.
However, even though the savings are real, the idea of handing out payments is still just a proposal. Congress has not yet approved this plan, and there’s no final decision on when, or if, the checks will be sent.
Why Has the Payment Been Delayed?
Even with a massive projected savings of $2 trillion, the campaign promise of issuing stimulus payments has not yet become a reality. Many Americans are wondering why the money hasn’t reached them. The answer is simple: the plan still needs approval from Congress.
There are also debates about how the money should be used. Some lawmakers suggest using the funds for other national needs, such as healthcare or infrastructure, instead of direct payments. Until Congress agrees on the final use of the money, the payments will remain on hold.
Who Would Be Eligible for the DOGE Payment?
The proposed DOGE stimulus check would not go to all Americans. According to James Fishback, CEO of the investment firm Azoria and a key supporter of the plan, only households with a positive net income would qualify. This means the government would only send payments to people who pay more in federal taxes than they receive in credits or benefits.
In simple terms, if you earn enough to pay federal income taxes, you might qualify. But if your income is low and you usually receive tax credits or refunds from the government, you would likely not be eligible.
The Tax Foundation explains this clearly: people with low or moderate incomes often receive more in tax credits than they pay in taxes. For example, many households earning less than $40,000 do not pay any federal income tax at all. This is why the bottom 50% of income earners in the U.S. only contribute about 3% of total federal income taxes.
Why Low-Income Earners May Not Receive the Payment
While the idea of a stimulus check usually brings hope to lower-income groups, this particular plan focuses on taxpayers who contribute more than they receive.
That’s why most Americans earning under $40,000 annually would not qualify for the DOGE payment. The logic behind this is that the payment is seen as a form of “dividend” for those who help fund the government, rather than traditional financial aid for those in need.