President Trump announced a proposal on September 10 to distribute $5,000 checks to every adult American. The initiative, dubbed the Trump Dividend, is contingent on the Republican party securing control of both chambers of Congress in the upcoming November midterms.
The estimated cost of the program ranges from $1.2 trillion to $1.3 trillion. Kevin Hassett, Director of the White House National Economic Council, suggested that the plan could be implemented via a congressional reconciliation bill, which requires only a simple majority in the Senate.
Hassett proposed using tariff revenues to fund the payments. However, these revenues are projected to generate approximately $125 billion annually, covering only about one-tenth of the total cost of the dividend checks.
The proposal faces criticism regarding its inflationary impact and the sustainability of US fiscal policy, with the national debt currently trending toward $40 trillion. Previous plans for $2,000 tariff rebate checks were never realized.
