The U.S. Congress must act on the Social Security Administration’s (SSA) report as soon as possible. The Old Age and Survivor Insurance Trust Fund is in a dangerous and delicate situation. Due to the Social Security Fariness Act and the elimination of the Windfall Elimination Provision (WEP) and the Government Pension Offser (GPO) this situation is further exacerbated. Michael Ryan and the president of the National Association of Registered Social Security Analysts, Marthe Shedden, point out that although it benefits one sector of the population, another will be really affected. The U.S. is in a critical situation, and there are new challenges ahead in terms of the impact this situation will have on the Cost of Living Adjustment (COLA). Read on to learn more about the situation.
The ambitious “DOGE Dividend” proposal: all you must know about it
The ambitious “DOGE Dividend” proposal, ensuring American households a staggering $5,000 stimulus checks, got the attention form headlines and public imagination in early 2025. Spearheaded by investment CEO James Fishback and championed by then-DOGE head Elon Musk, the plan enforced to distribute 20% of savings identified by Trump’s recently created Department of Government Efficiency (DOGE).
Fishback planned a jaw-dropping $2 trillion in savings within 18 months, in theory freeing up $400 billion for direct stimulus payments. There was a catch: only households made out as net federal income taxpayers (roughly those earning over $40,000) would qualify, motivating to sidestep inflation preocupations that plagued earlier stimulus hard work.
Trump’s $5K DOGE Dividend Plan: Where’s the Money at?
Public enthusiasm surged when Musk tweeted:
“Will check with the President,” swiftly followed by President Trump’s endorsement at a Miami summit: “We’re considering giving 20% of the DOGE savings to American citizens.”
Framed as a “dividend for the American people,” the proposal leveraged potent anti-bureaucracy sentiment. A February 2025 JL Partners poll presented its appeal, showing 67% national support, taking into account 60% among Republicans. Proponents disputed it would build again trust by returning “wasted” tax dollars and incentivize citizens to report government inefficiencies.
Stimulus Checks that Faded: Savings Fall Drastically Short
The grand vision started crumbling under the weight of its own not realistic assumptions. By May 2025, DOGE’s claimed savings stood at just $170 billion – a mere prtion of the promised $2 trillion. Independent watchdog groups brought a harsher verdict, calculating net savings almost to $35 billion after accounting for $135 billion in losses from service disruptions.
Veterans faced up to the delayed healthcare appointments, disaster response capabilities dwindled, and necessary agency functions slowed. This massive shortfall turned into the promised $5,000 windfall into a theoretical $89 per household – a politically untenable pittance.
At the same time, fierce political opposition materialized. House Speaker Mike Johnson led Congressional Republicans in denouncing the checks as “fiscally irresponsible,” in specific with the national debt soaring past $36 trillion. “Our brand is fiscal responsibility. We have to pay the credit card,” Johnson insisted, demanding savings first target deficit decreasement.
The stimulus checks fluttered in the air, and slowly went away
Economists such as Jessica Riedl amplified concerns: “Sending checks would be completely irresponsible amidst $3 trillion annual deficits,” informing previously about the potential inflation reignition. Crucially, no actual legislation was ever planned previously; the bipartisan House DOGE Caucus collapsed after just two unproductive meetings.
In addtion, DOGE lacked the constitutional authority to unilaterally press deep cuts with no Congressional approval, leading to successful lawsuits that reversed important initiatives and further eroded savings.
Protected mandatory spending programs – Social Security, Medicare, and defense, constituting roughly 67% of the federal budget – were exempt from DOGE’s knife, making the initial $2 trillion target mathematically unlikley from the outset.
“It is completely impossible for DOGE to save $2 trillion,” Riedl had cautioned early on, a view later vindicated.
Adding to its sorrow, the plan lost its most powerful advocate by the time Elon Musk abruptly departed his DOGE leadership role in April 2025. His no response on the dividend afterward spoke volumes.
Are we getting any stimulus check after all?
Ultimately, taxpayers received neither the promised checks nor the substantial deficit reduction. The episode joined a long list of unfulfilled grand policy gestures, leaving behind only questions about the feasibility of such sweeping proposals and the risks of overpromising in pursuit of political capital.
Besides this, there are no new stimulus checks packs in line to be disbursed, such as those from the pandemic era, at the time when Trump and Biden sent millions of federal checks to American households in order to keep the economy grinds sustained.