Summarize this content to 2000 words in 6 paragraphs A proposal to distribute $5,000 stimulus checks to tax-paying households, financed by savings from the Department of Government Efficiency (DOGE), has been stirring debate in Washington.While the proposed “DOGE Dividend” has garnered attention and support from certain quarters, including from President Donald Trump and Elon Musk, it faces skepticism from some senators concerned about fiscal responsibility and the national debt.Newsweek reached out to Senators Rand Paul, Josh Hawley, Thom Tillis, Elizabeth Warren, Bernie Sanders and John Kennedy for comment via email on Friday.Why It MattersThe DOGE check idea has sparked a broader discussion about fiscal responsibility, government efficiency and the role of government in managing and redistributing savings.Under the proposal, 20 percent of the total savings accrued by the DOGE would be allocated to fund a one-time payment of $5,000 to each qualifying tax-paying household.
Sen. Josh Hawley (R-MO) questions acting U.S. Secret Service Director Ronald Rowe Jr. and Deputy Federal Bureau of Investigation Director Paul Abbate during a joint hearing on July 30, 2024 in Washington, DC.
Sen. Josh Hawley (R-MO) questions acting U.S. Secret Service Director Ronald Rowe Jr. and Deputy Federal Bureau of Investigation Director Paul Abbate during a joint hearing on July 30, 2024 in Washington, DC.
Chip Somodevilla/Getty Images
What To KnowThe “DOGE Dividend” proposal, thought up by investment firm CEO James Fishback, has been framed as a means to reward American taxpayers for the government’s past inefficiencies.However, key voices in the Senate have expressed reservations. Republican Speaker Mike Johnson emphasized the importance of fiscal responsibility over political gains at the Conservative Political Action Conference (CPAC) on Thursday, citing the nation’s $36 trillion debt as a reason for concern.”We have a $36 trillion federal debt. We have a giant deficit that we’re contending with. I think we need to pay down the credit card. Right? That’s what I think we need to do,” Johnson said.Republican senators Cynthia Lummis and Ron Johnson have mentioned prioritizing a balanced budget and addressing inflation before considering dividend checks.Lummis’ team pointed Newsweek to a quote the senator told Scripps News this week. “If there’s money left after we address inflation, and the debt, and the deficit, it’s always a good idea to send taxpayers their money back. But when we’re $36 trillion in debt, we’ve dug ourselves a pretty big hole,” Lummis said.Johnson told Newsmax that any savings should first contribute to 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.Republican Senator Thom Tillis of North Carolina has echoed this sentiment. The senator suggested that savings should be used to drive down the national debt, not distributed as checks—telling Business Insider that “sending checks is not the smartest way to spend savings.”On the other hand, Republican Senator Josh Hawley told Scripps he “[likes] the idea of returning money to the American taxpayer” but suggested channeling the funds toward direct relief measures like a child tax credit could be a beneficial approach. DOGE Stimulus Check Creator Defends Plan Against Inflation FearsWhat People Are SayingRepublican Senator Cynthia Lummis’ team pointed Newsweek to a quote the senator gave to Scripps News: “I’m very interested in eliminating the debt and the deficit, as well as getting inflation under control. So those would be my top priorities for the savings associated with DOGE.””If there’s money left after we address inflation, and the debt, and the deficit, it’s always a good idea to send taxpayers their money back. But when we’re $36 trillion in debt, we’ve dug ourselves a pretty big hole, so we need to address that first.”Republican Senator Ron Johnson’s team pointed Newsweek to the senator’s statements 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 the American taxpayer. Bernie Sanders and I sponsored direct relief for taxpayers during COVID, so I like that model. Whether you do that direct to every person or whether you use it to fund, for instance, a child tax credit, which would be direct relief to every working family, if they work and pay payroll taxes, that would be great.”Republican Senator Thom Tillis of North Carolina told Business Insider: “I have three grandchildren, all under the age of eight years old. Their fractional share of the national debt is about $100,000. I think maybe it makes sense to help pay down that debt obligation.”Republican Speaker Mike Johnson said at the CPAC Thursday: “Politically that would be great for us, you know, you can send everybody a check… But if you think about our core principles, right, fiscal responsibility is what we do as conservatives, that’s our brand. We have a $36 trillion federal debt. We have a giant deficit that we’re contending with. I think we need to pay down the credit card. Right? That’s what I think we need to do.”Representative Jasmine Crockett, a Democrat from Texas, wrote on X: “I said that the DOGE checks were dead on arrival and MAGA went crazy… I also pointed out that 5k ain’t ‘it.’ If you don’t have a job because he’s sending us into a recession where people are gonna be outta work. I’m sure the average person would rather have an actual consistent income, but these fools are so slow that they can’t listen to an entire sentence.Also what is 5k when you don’t have any social security, Medicaid, Medicare, SNAP, housing benefits, and the list goes on?”What Happens NextWith varying opinions among lawmakers and the need for congressional approval, the future of the “DOGE Dividend” remains uncertain.Fishback told Business Insider that the proposal has been emailed to White House Chief of Staff Susie Wiles, though there was no response as of Wednesday.
