Politics

Donald Trump Issues $2,000 Rebate Checks Update

Screenshot

President Donald Trump says he believes his administration could send out $2,000 “dividend” checks to Americans using money raised from tariffs, and that it might not need approval from Congress to do it.

He made the comment during a press conference on Tuesday after being asked about earlier remarks from White House economic adviser Kevin Hassett, who said the payments would depend on what Congress decides.

Trump said he does not think Congress would need to be involved, but added that the situation would become clearer over time. The White House and the Congressional Press Gallery were contacted for comment, but no response was given outside normal working hours.

Trump first talked about the idea last November, saying his administration wanted to give around $2,000 to lower- and middle-income Americans. He claimed the money would come from the “trillions of dollars” raised through tariffs.

However, he has not given clear details about who would qualify, when the money would arrive, or what legal authority would allow the payments. In a recent interview, he suggested the checks could arrive toward the end of the year.

The plan also depends on an upcoming Supreme Court decision. The court is expected to rule on whether Trump’s broad tariffs are legal. If the tariffs are ruled unlawful, the government could be forced to refund the money collected, which would directly affect whether the checks could be paid out at all.

Kevin Hassett previously said that any payments like this would need to go through Congress because lawmakers control government spending. He explained that the president would likely need to submit a proposal and wait for Congress to approve the money.

Hassett also noted that the funds would not necessarily come only from tariffs, since government revenue comes from many sources, and Congress decides how it is spent.

Despite this, Trump repeated his belief that the checks could move forward without Congress. He said the government is bringing in so much money from tariffs that it could afford to issue at least $2,000 per person while also paying down national debt. He added that there would be an income limit so higher earners would likely be excluded, and said the payment could be a “very substantial dividend” for Americans.

Some experts question whether tariff revenue would be enough. Government data shows the U.S. collected $195 billion in customs duties in the last fiscal year, with another $90 billion collected so far this year. Independent analysts estimate the total cost of the plan could range from $300 billion to $600 billion, and some warn it could significantly increase budget deficits over time.

There are also concerns about inflation. Tax experts have warned that sending out large checks could push prices higher, especially at a time when inflation remains a problem. They say pushing for both lower interest rates and higher government spending at the same time could worsen the situation.

Public opinion appears mixed but leans positive. A recent survey found that just over half of respondents support the idea of a tariff-funded rebate, including a large share of Democrats. A smaller group said they oppose it.

The next big step will be the Supreme Court’s ruling on the tariffs. That decision will likely determine whether the tariff money is secure and whether Trump’s proposed dividend checks are financially and legally possible.

Leave a Response