DOGE stimulus checks: Johnson side-steps question on Trump plan, says US has ‘giant deficit’

Speaker Mike Johnson Opposes Stimulus Checks, Prioritizes National Debt Reduction

Speaker Mike Johnson, a Republican from Louisiana, has expressed his opposition to a proposal that would send stimulus checks to Americans using the savings generated by the Department of Government Efficiency (DOGE). Johnson, speaking at the Conservative Political Action Conference (CPAC) on Thursday, emphasized that while politically popular, such a move would contradict core conservative principles of fiscal responsibility. He argued that the funds would be better allocated toward reducing the nation’s staggering $36 trillion federal debt.

Johnson highlighted the gravity of the situation by referencing the federal deficit, which currently stands at over $838 billion for the fiscal year 2025, according to the Bipartisan Policy Center. He stressed the importance of addressing this financial burden, stating, “I think we need to pay down the credit card. That’s what I think we need to do.” His comments come amid a broader debate over how to utilize the savings generated by DOGE, which is led by billionaire Elon Musk.

President Trump Floats Stimulus Check Proposal

The discussion surrounding stimulus checks gained momentum after President Donald Trump suggested considering a plan to return 20% of DOGE-led savings to U.S. taxpayers. During a speech at the FII Priority Summit in Miami on Wednesday, Trump hinted at the proposal, which was initially floated by Azoria investment firm CEO James Fishback. Elon Musk, who is at the helm of DOGE, later stated on X (formerly Twitter) that he would “check with the president” regarding the idea.

DOGE, under Musk’s leadership, has been tasked with cutting federal spending by $2 trillion, a goal that aligns with the broader conservative agenda of reducing government waste. However, Johnson’s remarks at CPAC indicate a divide within the Republican Party over how to allocate these savings. While some may view stimulus checks as a way to bolster public support, Johnson and other fiscal conservatives argue that prioritizing debt reduction is more aligned with their values.

Warning of Historic Tax Increases if Trump’s Tax Cuts Expire

In addition to his comments on stimulus checks, Johnson also warned of a potential “largest tax increase in U.S. history” if President Trump’s 2017 Tax Cuts and Jobs Act (TCJA) is not extended before its provisions expire at the end of this year. The TCJA, a hallmark of Trump’s first term, lowered corporate and individual tax rates, among other changes. Allowing these cuts to expire could result in significant tax hikes for Americans across all income brackets.

Johnson’s remarks underscore the urgency with which Congressional Republicans are approaching the issue. They are currently working to extend the tax cuts as part of a larger budget reconciliation bill that also includes priorities on defense and border security. The reconciliation process, which allows the party in power to pass legislation with a simple majority in both the House and Senate, is seen as a crucial tool for advancing these goals without Democratic support.

Budget Reconciliation and the Path Forward

Speaker Johnson acknowledged the challenges of advancing this ambitious agenda, particularly in the House, where Republicans hold a narrow majority. “I have one vote for much of this,” he said, highlighting the precarious balance of power. Despite these challenges, Johnson expressed optimism about the potential for success, describing the upcoming bill as “big and beautiful.”

The bill, which could cost upwards of $4.5 trillion to extend the tax cuts alone, is expected to include a wide range of provisions aimed at curbing government spending, reducing regulatory burdens, and streamlining the bureaucracy. Johnson emphasized that while the details are still being finalized, the legislation will be comprehensive in scope, reflecting the need to act decisively in addressing America’s fiscal and regulatory challenges.

In summary, while the idea of stimulus checks may resonate with many Americans, Speaker Mike Johnson and other conservatives are prioritizing fiscal responsibility and debt reduction. The debate over how to allocate savings from DOGE reflects broader tensions within the Republican Party about balancing political expediency with long-term economic stability. As the deadline for extending Trump’s tax cuts approaches, the stakes are high, and the path forward remains uncertain.