Former President Donald Trump announced a proposal to distribute $2,000 “dividend” payments to Americans using tariff revenue as the funding source. He shared the idea on social media with a forceful endorsement of tariffs, presenting the plan as a direct benefit to the public. His message sparked discussion both inside and outside the administration, as many sought clarity on how such a program would function.Despite uncertainties, the White House expressed firm support for pursuing the idea. Press secretary Karoline Leavitt stated that Trump remained committed to the proposal, although she did not provide specific details on qualifications or distribution methods. She added that his economic advisers were actively reviewing possible approaches.Treasury Secretary Scott Bessent, however, offered a more cautious perspective. He noted that the payments might not come as direct checks and suggested they could take alternative forms, such as tax reductions on tips, overtime, Social Security benefits, or auto loan interest. These changes, he said, were part of broader tax measures under consideration.
Bessent also acknowledged that he had not discussed the plan directly with Trump, adding to public uncertainty. Trump’s social media announcement did not clarify eligibility criteria or timing. Analysts pointed out that if eligibility resembled previous stimulus thresholds, up to 150 million Americans might qualify, placing the estimated cost near $300 billion.
Funding remains a significant challenge. Tariff revenue totaled $195 billion through the end of September, far below the amount needed to fund large-scale payments. To close the gap, the administration might rely on projected future tariff income.
The Treasury Department estimates $3 trillion in tariff revenue over the next decade, but using future funds would increase the national debt, already exceeding $38 trillion. Meanwhile, new tariffs are scheduled, including steep increases on cabinets and certain pharmaceuticals. Some economists have questioned whether tariff revenue alone could sustain the proposed payments.
