Unpacking rumor that Trump is sending out $5K stimulus checks

Yahoo

a day ago

According to a rumor that spread online in late May and early June 2025, U.S. President Donald Trump would be sending out $5,000 "stimulus" checks to Americans after his administration uncovered billions of dollars in "wasted money."
The viral rumor likely stems from an investment firm CEO's proposal to send some taxpayers so-called "DOGE Dividend" checks. The original proposal for $5,000 checks was based on the assumption that DOGE would achieve $2 trillion in total savings, which is highly unlikely.
Trump has previously floated the idea of a "DOGE Dividend," but there was no proof at the time of this writing that he would send $5,000 checks to Americans. Snopes reached out to the White House for clarity but has not received a response.
In late May and early June 2025, a rumor on TikTok (archived) claimed that U.S. President Donald Trump was reportedly sending out $5,000 "stimulus" checks to Americans after his administration uncovered $50 billion in "wasted money."
"Trump is going to be sending out five grand to everybody and this is because they uncovered $50 billion … of just wasted money," the TikTok video's narrator said.
@todaynews919 #fyp #foryou #new #news ♬ original sound - todaynews919
The video's narrator later said the cost-cutting Department of Government Efficiency initiative allegedly proposed sending money it had "recovered" to the American people. The initiative, spearheaded by tech billionaire Elon Musk before his departure, works to slash government spending through layoffs and cuts to various federal programs.
Though Trump has previously floated the idea of a "DOGE Dividend," there was no proof at the time of this writing that he would send $5,000 checks to Americans. Snopes reached out to the White House to ask if the president has any plans to send such checks and is awaiting a response. Since we were not able to definitively prove or disprove this rumor, we have not put a rating on this claim.
The viral rumor likely stems from a proposal to send some taxpayers "DOGE Dividend" checks. Trump previously said he would consider such a plan, but his administration has not confirmed that it's sending any checks.
The idea for DOGE Dividend checks was originally proposed by James Fishback, the founder and CEO of the investment firm Azoria Partners, in an X post (archived) shared on Feb. 18, 2025:
Fishback's post also included a more in-depth proposal based on the assumption that DOGE would achieve $2 trillion in total savings. He suggested that the federal government take 20% of DOGE's presumed savings, or about $400 billion, and return it to approximately 79 million taxpaying households in the form of $5,000 tax refund checks called the DOGE Dividend.
Under Fishback's plan, the government would send checks only to "households that will be net payers of federal income tax," meaning those that pay more money in taxes than they get back in tax credits or refunds. That means American households that do not owe federal income tax would not qualify for the proposed payments.
In 2025, an estimated 40% of U.S. households will pay no federal individual income tax, according to the Urban-Brookings Tax Policy Center. Most of these households have lower incomes, with about 70% earning less than $75,000 and about 45% earning less than $40,000, the Tax Policy Center estimates.
On the same day that Fishback shared his proposal for the $5,000 checks, Musk replied (archived), "Will check with the president."
Trump quickly acknowledged the idea as he delivered remarks during a Saudi investors conference in Miami on Feb. 19, 2025.
"There's even under consideration a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt, because the numbers are incredible, Elon," Trump said at the conference.
A reporter also asked Trump about the plan as he flew back to Washington, D.C., aboard Air Force One that day. He said:
I love it. A 20% dividend, so to speak, for the money that we're saving by going after the waste and fraud and abuse and all the other things that are happening, I think it's a great idea.
The dividend checks would also give taxpayers "an incentive … to go out and report things to use when we can save money," Trump added.
Several weeks later, Fishback spoke further about his proposal during a March 2025 podcast appearance. He said if DOGE didn't hit the $2 trillion in projected savings, the amount of money in the dividend checks should be adjusted.
"This plan is not predestined to the $5,000 number. If the savings come in above or below that, the check will be reflected accordingly," Fishback said. "So again, if the savings are $1 trillion — which I think is awfully low — the check goes from $5,000 to $2,500."
At a town hall in Wisconsin on March 30, 2025, Musk fielded questions about the proposal, ultimately putting the responsibility of approving tax refund checks on Congress and Trump.
"It's somewhat up to the Congress and maybe the president … as to whether specific checks are cut," Musk said in response.
A search of Congress.gov did not return any results for legislation proposing "DOGE Dividend" tax refund checks. Snopes also could not find any record of Trump sharing additional details about a plan for such checks since February 2025, and we are still awaiting a response from the White House.
It's still unclear how much money DOGE might ultimately save. Musk said in October 2024 that he expected to cut "at least $2 trillion" but he later lowered that estimate to $1 trillion. However, both of those estimates were "wildly unrealistic," PolitiFact reported in June 2025.
As of June 6, 2025, DOGE's online "wall of receipts" touted an estimated $180 billion in cuts, but analyses by PolitiFact (here and here) and The New York Times found that the online ledger was riddled with errors.
X. https://x.com/j_fishback/status/1891933120313663493. Accessed 6 June 2025.
"Who Will Pay No Federal Individual Income Tax in 2025?" Tax Policy Center, 4 June 2025, taxpolicycenter.org/fiscal-facts/who-will-pay-no-federal-individual-income-tax-2025. Accessed 6 June 2025.
X. https://x.com/elonmusk/status/1891967592048611532. Accessed 6 June 2025.
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Clarke, Amelia. "Yes, Musk Said He'd Ask Trump about $5K Checks for US Taxpayers Funded by DOGE Savings." Snopes, 21 Feb. 2025, https://www.snopes.com//fact-check/musk-taxpayer-5000-refund/.
Czopek, Madison, and Amy Sherman. "Trump and Musk Public Bickering Raises More DOGE Uncertainty." @Politifact, 5 June 2025, www.politifact.com/article/2025/jun/05/elon-musk-donald-trump-doge-cuts/. Accessed 6 June 2025.
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McCullough, Caleb. "Where Do DOGE's Reported Savings Come From?" @Politifact, 21 Feb. 2025, www.politifact.com/article/2025/feb/21/doge-touts-billions-in-canceled-government-contrac/.
Fahrenthold, David A, and Jeremy Singer-Vine. "DOGE Is Far Short of Its Goal, and Still Overstating Its Progress." Nytimes.com, The New York Times, 13 Apr. 2025, www.nytimes.com/2025/04/13/us/politics/doge-contracts-savings.html. Accessed 6 June 2025.