Introduction:
The promise of government stimulus checks has once again captured the public's attention, this time intertwined with the intriguing concept of "DOGE dividends." Fueled by social media discussions and political rhetoric, the notion of receiving stimulus payments linked to the savings generated by the Department of Government Efficiency (DOGE) has sparked both excitement and skepticism. This article aims to dissect the realities of this potential initiative, and answer three key questions, particularly as it relates to the residents of the Commonwealth of the Northern Mariana Islands (CNMI), Guam, the Federated States of Micronesia (FSM), and American Samoa.
The article will address:
1) Will these island territories receive the DOGE rebate?;
2) Given the long history of misuse and mismanagement of federal funds, should DOGE conduct an audit of the CNMI?; and 3) Why and how could a combination of Trump and DOGE implement meaningful reforms, potentially even "cleaning up" the CNMI overnight?
The DOGE Stimulus Check: A Closer Look:
The genesis of the "DOGE stimulus check" idea can be traced back to discussions on social media platform X (formerly Twitter), where Elon Musk reportedly suggested exploring the concept with former President Donald Trump. Trump has subsequently addressed the idea publicly, stating that he and his advisors are considering using 20% of DOGE's purported savings to pay down the national debt, and potentially another 20% to be given back to American citizens.
However, it's crucial to temper any immediate expectations. The implementation of such a stimulus check faces significant hurdles. One major obstacle is the sheer amount of savings required to make the stimulus feasible: a staggering $2 trillion, a figure that Musk himself has deemed potentially unattainable.
What is DOGE? Unpacking the Department of Government Efficiency
Before diving deeper into the potential benefits of DOGE checks, it is important to better understand what DOGE is. It is the Department of Government Efficiency which is mainly focused on finding ways to cut spending and regulations. The name refers to a cryptocurrency called dogecoin.
Musk was named the head of the organization by Trump shortly after he won the election. Trump made the department official with an executive action on his first day in office. Recent court filings have called into question Musk's role with DOGE, stating that Musk is a "senior advisor to the president" rather than leader of DOGE. The court filings also stated that the department is distinct and separate from the White House.
Trump's Statements and the Path to Reality:
Trump's public statements regarding the "DOGE dividend" have added fuel to the fire. He stated during the FII PRIORITY Summit in Miami Beach last week: "We're considering giving 20% of the DOGE savings to American citizens and 20% to paying down the debt". He later reiterated the idea on Air Force One, calling it "an incentive for the taxpayer to go out and report things to us where we can save money."
Despite these pronouncements, the reality remains that no stimulus checks from DOGE savings have been formally approved by Congress, a necessary step for any such payments. Currently, there is no set timeline for payments. Even Musk has acknowledged the difficulty in achieving the necessary savings. He said, "Musk has also indicated that it may not be possible to save the required amount to make the stimulus checks possible. If it does happen, it could take longer than expected."
Resistance in Congress:
Congressional response to the "DOGE dividend" has been far from uniformly enthusiastic. Speaker of the House Mike Johnson has expressed skepticism, suggesting the money should be used to reduce the national debt instead. Other Republican Senators, including Ron Johnson, Cynthia Lummis, Thom Tillis, and Rand Paul, have echoed this sentiment. Senator Ted Cruz has requested more details on the plan, while Senator Josh Hawley has indicated a preference for savings to be passed on through the child tax credit.
The Unique Circumstances of CNMI, Guam, FSM, and American Samoa:
Understanding the economic landscape of these territories is crucial to assessing the potential impact of any stimulus program.
CNMI: Dependent on tourism, faces infrastructure and workforce development challenges.
Guam: Strategic military location, reliant on the government sector and tourism, confronts infrastructure issues.
FSM: Relies on U.S. assistance, fishing, and agriculture, grapples with geographic isolation and climate change.
American Samoa: Dependent on tuna canning and U.S. government assistance, faces remoteness and limited opportunities.
Given these unique economic profiles and the ongoing struggles faced by these territories, the allure of additional financial assistance is understandable.
The $1,400 IRS Stimulus Checks: A Tangible Reality
While the future of the "DOGE stimulus check" remains uncertain, there is a more immediate development that could benefit residents of Guam and CNMI. The IRS is set to distribute $2.4 billion in "special payments" to approximately 1 million individuals across the United States who missed out on previous federal stimulus payments during the pandemic.
These payments are tied to the "recovery rebate credit," a measure designed to compensate those who did not receive the full stimulus amounts they were entitled to in 2020 and 2021. The IRS has identified eligible individuals by reviewing tax return data, and payments will be issued automatically. IRS Commissioner Danny Werfel stated, "To minimize headaches and get this money to eligible taxpayers, we're making these payments automatic."
Guam and CNMI: How the "Mirror Tax System" Impacts Distribution:
Guam and CNMI operate under a "mirror tax system," where federal stimulus funds are distributed locally by their respective tax agencies. During the pandemic, this system experienced delays and administrative challenges, leaving some eligible residents without payments.
For residents of Guam or CNMI who believe they missed out on stimulus payments, the following steps are recommended:
Eligibility: Ensure you filed your 2020 or 2021 tax returns.
Coordination: Contact your local tax agency to verify your tax information was shared with the IRS.
IRS Notifications: Expect a letter from the IRS detailing your eligibility and payment information.
Payment Timeline: The IRS has stated that payments would be issued starting in December 2024, with most recipients receiving their funds by late January 2025.
DOGE and the Doge Coin Confusion:
The similarity between the name of the Department of Government Efficiency, DOGE, and the crytocurrency Dogecoin is something to think about. Musk has been an advocate of Dogecoin. This association creates opportunities for both education and misinformation.
Question 1: Will the People of the CNMI, Guam, American Samoa, and FSM Get the DOGE Rebate?
The most honest answer, based on available information, is: Highly unlikely in the immediate future. While Trump has expressed interest, the initiative faces significant hurdles.
Congressional Approval: The biggest obstacle is the need for Congressional approval. Given the skepticism already expressed by key members of Congress, securing this approval will be an uphill battle.
Savings Target: DOGE needs to achieve massive savings ($2 trillion) to make the rebates feasible, a target that even Elon Musk seems to doubt.
Lack of a Concrete Plan: There is currently no defined plan for how these rebates would be distributed, what eligibility requirements would be, or when payments could potentially begin.
Territorial Status: The logistical and legal challenges of distributing rebates in US territories and a nation in free association with the US (FSM) add further complexity.
Therefore, while it's not impossible, residents of these territories should not rely on the "DOGE dividend" as a realistic source of immediate financial relief.
Question 2: With All the Graft, Fraud, Transference and Abuse of Federal Funds, and Mismanagement; Should DOGE Audit the CNMI?
Yes, a comprehensive audit of the CNMI's use of federal funds is absolutely warranted and urgently needed.
The CNMI has a long and troubling history of financial mismanagement, corruption, and the abuse of federal funds. News reports, government audits, and even legal proceedings have highlighted a pattern of irregularities and questionable practices. An independent and thorough audit by DOGE, or a similar federal entity, could:
Uncover the Extent of the Problem: Determine the true scope of the mismanagement and identify specific instances of fraud and abuse.
Identify Systemic Weaknesses: Reveal the underlying weaknesses in the CNMI's financial management systems and internal controls that allow corruption to flourish.
Recommend Corrective Actions: Provide concrete recommendations for improving financial management practices, strengthening internal controls, and enhancing transparency and accountability.
Provide Legal Basis for Prosecution: With proper legal follow up to the audit, it would create a legal basis for prosecutions related to those abuses of power and funds.
Such an audit would not only benefit the CNMI by promoting greater accountability and efficiency but would also safeguard taxpayer dollars and ensure that federal funds are used for their intended purpose. It would serve as a crucial step towards restoring public trust and creating a more sustainable and prosperous future for the CNMI.
Question 3: Why and How Could Trump and DOGE Clean Up the CNMI Overnight?
While the notion of an "overnight" cleanup may be an oversimplification, a concerted effort by a Trump administration, leveraging the resources and authority of DOGE, could initiate significant and rapid improvements in the CNMI through a combination of these factors. These are all potential factors given the current political climate and potential changes in leadership and policies:
Political Will and Focus: A Trump administration, known for its assertive approach, could prioritize addressing the issues in the CNMI and allocate the necessary resources. Trump’s personal interest in Dogecoin might translate into a direct focus on making DOGE a functional reform entity.
Executive Orders and Directives: The President could issue executive orders and directives to streamline federal oversight, empower federal agencies to intervene in cases of corruption, and impose stricter accountability measures on CNMI officials.
DOGE's Auditing and Oversight Authority: DOGE could be given expanded authority to conduct audits, investigations, and implement financial reforms in the CNMI. By cutting unnecessary costs and streamlining the CNMI government.
Targeted Funding and Conditional Assistance: Federal funding could be tied to specific performance metrics and compliance requirements, incentivizing the CNMI government to implement reforms and improve its financial management practices. Funds would be awarded and withheld depending on the metrics and milestones met.
Increased Federal Law Enforcement Presence: A greater federal law enforcement presence could deter corruption and ensure that those who engage in illegal activities are brought to justice. DOJ could have the needed assistance to make the prosecutions a reality.
Public Awareness and Transparency: A Trump administration could use its bully pulpit to raise public awareness about corruption and mismanagement in the CNMI, creating pressure on local officials to take action. Furthermore, any changes, actions and audits would be transparent to the public.
Conclusion:
The "DOGE dividend" for CNMI, Guam, American Samoa, and FSM remains a distant and uncertain prospect. However, the situation in the CNMI, particularly with its ongoing challenges related to corruption and financial mismanagement, demands immediate attention. A comprehensive federal audit, empowered by executive action and backed by the political will of a Trump administration, could be a powerful catalyst for reform. While the promise of an "overnight" transformation may be overly optimistic, a determined and focused effort could set the CNMI on a path toward greater accountability, transparency, and ultimately, a more prosperous future. However, achieving lasting change requires sustained commitment and a collaborative approach involving federal, territorial, and local stakeholders working together to build a stronger and more resilient CNMI for the future.
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