Recent developments have introduced two significant financial proposals: a one-time Social Security payment averaging $6,710 and a proposed $5,000 "DOGE Dividend" stimulus check.
Here's an overview of each:
$6,000 Social Security Bonus
The Social Security Fairness Act, enacted earlier this year, eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions previously reduced or eliminated Social Security benefits for over 3.2 million individuals receiving pensions from non-Social Security-covered work, such as certain teachers, firefighters, police officers, federal employees under the Civil Service Retirement System, and individuals with foreign social security system coverage. With the removal of WEP and GPO, affected beneficiaries are receiving retroactive payments averaging $6,710, covering increases back to January 2024. These payments are being deposited into bank accounts that the Social Security Administration has on file, with distribution expected by the end of March 2025.
$5,000 DOGE Dividend Checks
The "DOGE Dividend" is a proposed stimulus initiative linked to the Department of Government Efficiency (DOGE), led by Elon Musk. The concept, introduced by James Fishback, CEO of Azoria, suggests that 20% of the savings achieved by DOGE be redistributed to taxpayers as a one-time $5,000 check. The proposal assumes DOGE will identify $2 trillion in federal spending cuts by July 2026, with 20% of these savings, approximately $400 billion, allocated for the dividends. Eligibility would require individuals to have filed a federal tax return, but there is no minimum income requirement.
However, several factors affect the feasibility of this proposal:
Savings Target: As of now, DOGE has reported savings of $55 billion, with detailed accounts totaling approximately $8.6 billion. Achieving the $2 trillion target remains uncertain.
Inflation Concerns: Experts caution that distributing such dividends could exacerbate inflation, similar to effects observed with previous stimulus payments.
Congressional Approval: Implementing the DOGE Dividend requires legislative approval. Some lawmakers advocate using any savings to reduce national debt rather than issuing direct payments.
James Fishback's Perspective
James Fishback has been an active proponent of the DOGE Dividend. In a recent interview, he emphasized that the checks would be funded exclusively through DOGE's savings, aiming to return a portion of the government's efficiency gains directly to taxpayers.
While the Social Security bonuses are currently being disbursed to eligible individuals, the DOGE Dividend remains a proposal under consideration, with its implementation contingent upon meeting savings targets and obtaining necessary legislative approvals.
Social Security Recipients to Receive Retroactive Payments by March 2025—Here’s What You Need to Know
The Social Security Administration (SSA) has begun issuing retroactive payments to beneficiaries affected by the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) under the Social Security Fairness Act. These one-time payments, covering increases back to January 2024, are being deposited into recipients' bank accounts on file with the SSA. The distribution started on February 24, 2025, and most beneficiaries can expect to receive their payments by the end of March 2025.
The SSA is expediting these payments, with many beneficiaries receiving their retroactive amounts before official notices arrive by mail. Beneficiaries are advised to wait until April before inquiring about the status of their retroactive payments, as processing will continue incrementally throughout March.
Increased monthly benefits, reflecting the repeal of WEP and GPO, will commence in April 2025, covering benefits for March 2025. Since Social Security benefits are paid one month in arrears, the first increased payments will be received in April.
Beneficiaries do not need to take any action to receive these payments, provided their mailing address and direct deposit information are up to date with the SSA. Those who have not applied for Social Security benefits due to WEP or GPO may need to file an application. The SSA has established a streamlined process for new applicants, which can be accessed online or by calling their toll-free number.
For detailed information on the payment schedule and updates, beneficiaries can refer to the SSA's official announcements.