When the Department of Government Efficiency (DOGE) was announced, it raised a lot of questions. Some Americans see it as a way to eliminate wasteful spending and improve government operations, while others worry that it could lead to cuts in vital programs.
More recently, Elon Musk floated the idea of sending part of the government savings as stimulus checks to taxpayers. What does this mean for everyday Americans? Could federal programs like Medicaid, housing assistance, or food aid be affected? While no official checks or cuts to benefit programs have been announced, some say DOGE’s recommendations could shape future policy. So, how did DOGE come to be, and what exactly is it meant to do? Let’s take a closer look.
The Department of Government Efficiency (DOGE) was created on January 20, 2025, through an executive order by President Trump. Despite its name, DOGE is not a federal agency but a Presidential Advisory Commission (PAC).
This means it cannot directly implement policies, cut funding, or restructure government programs. Still, it can provide recommendations to the White House on how to improve efficiency and reduce waste.
According to the executive order, DOGE was created to “modernize Federal technology and software to maximize governmental efficiency and productivity.” However, some of its supporters have a broader vision. CBS News reports that DOGE is also expected to “slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
What are DOGE Dividends?
The idea of a “DOGE Dividend” was first floated on social media platform X by Azoria investment firm CEO James Fishback. Elon Musk got wind of it and spoke to President Trump, who has publicly voiced his support for the idea.
While nothing is set in stone, President Trump stated that he’d be in favor of dividing 20% of DOGE’s total savings among eligible taxpayers as a refund check. While there has been some dispute over DOGE’s actual savings so far, the PAC’s initial goal of $2 trillion in savings could potentially lead to dividend checks of up to $5,000/household.
However, a report by USA Today found that the DOGE website “published misleading information about how much money it has saved, including a nearly $8 billion error.” It remains to be seen whether there will be an official launch for any kind of “DOGE Dividend” plan.
Who is Leading DOGE?
DOGE has gained attention largely due to high-profile figures involved in its leadership. Elon Musk is a key figure in the commission, and he is expected to work with the Office of Management and Budget (OMB) to analyze spending and address what Trump has called ‘massive waste and fraud’ in government programs. (BBC)
Vivek Ramaswamy, another prominent supporter and former co-chair, has suggested DOGE could go even further, stating that entire federal agencies may need to be eliminated to improve efficiency and reduce spending (Reuters). These statements have led to speculation that DOGE’s recommendations could shape broader government restructuring efforts.
In addition to Musk and Ramaswamy, other business leaders and policy experts are expected to contribute to DOGE’s findings. While no specific agencies have been named for elimination, Ramaswamy has hinted that certain regulatory bodies, such as the Consumer Financial Protection Bureau (CFPB), could be in the crosshairs (Reuters).
How Much Power Does DOGE Have?
Although DOGE has been associated with ambitious proposals, its actual power is limited. Reuters clarifies, “The committee, despite its name, is not a department and has limited official power to carry out any reorganization, let alone the sweeping cuts proposed by Musk and Ramaswamy.”
Supporters argue that DOGE could help streamline outdated government systems, reduce waste, and improve overall efficiency. Critics worry its recommendations could lead to major budget cuts affecting essential services. Some policy analysts suggest that even if DOGE’s recommendations do not result in immediate changes, they could influence future executive orders or legislative decisions.
For example, recent actions under DOGE’s guidance have led to significant workforce reductions in several federal agencies. For instance, the Centers for Disease Control and Prevention (CDC) is set to lose nearly 1,300 probationary workers.
Additionally, according to the New York Times, the administration has initiated plans to dismantle certain federal agencies, affecting approximately 8,800 positions. This includes around 280 roles related to Diversity, Equity, and Inclusion (DEI). Operations have also been suspended for about 1,700 Consumer Financial Protection Bureau (CFPB) employees. These layoffs are part of a broader strategy to downsize the federal government, with directives issued to lay off probationary employees across multiple agencies.
So, what else is DOGE aiming to change, and how could it impact Americans? Next, we’ll explore DOGE’s goals and its potential effects on federal programs.
