Trump says he will give every US adult $5,000 if GOP wins in mid-terms; his aide reveals how
US Commerce Secretary Howard Lutnick has said Donald Trump’s proposed USD 5,000 “dividend” for American adults would not be funded through tax revenue amid questions over how the plan would be financed.According to The Guardian, Trump has proposed the one-time payment if Republicans retain control of both chambers of Congress in November’s midterm elections. Trump announced the plan at a Republican convention rally in Dallas, Texas, but did not provide details on how the payments would be funded.
Where will the $5,000 come from?
Speaking to NBC News, Lutnick said: “It’s not tax money”. He added the administration could “earn the money that Donald Trump wants to pay out, not from the deficit and not from taxpayers”.He pointed to possible revenue from a planned Commerce Department programme that could charge wealthy foreign visitors up to USD 5 million to extend their US visas.Lutnick said more than 100,000 people were on a waitlist and estimated the programme could generate about USD 500 billion.He also cited the government’s USD 8.9 billion investment in chipmaker Intel, saying the company’s share price had risen significantly since the investment.
Trump’s ‘dividend’ plan
Trump announced the proposed payout during a speech at the Republican midterm convention, saying every adult citizen would receive USD 5,000 if Republicans won the House of Representatives and Senate.“If the Republicans win the House of Representatives and the United States Senate, both of them,” Trump said, “I will issue a dividend to every adult citizen in the United States of America for $5,000.”He said the money would have to be spent in the US, telling supporters: “We don’t want you going to Canada to spend the money.”Trump also suggested that tariff revenue could help fund the payments. Vice-President JD Vance has backed that possibility, describing the proposed payment as a dividend for American workers.
$1.3 trillion question
The proposal could carry a huge price tag. With nearly 270 million adults in the US, a $5,000 payment to every adult would cost roughly USD 1.3 trillion.The plan has therefore raised questions over whether it is financially and legally feasible, particularly as the US national debt has crossed USD 40 trillion.White House officials have floated different ways of funding the proposal. National Economic Council director Kevin Hassett said the administration was considering a congressional “reconciliation process” and argued that the plan could be implemented in a “fiscally responsible way”.
Tariff revenue under question
Vance has suggested that the money raised through Trump’s tariffs could be used to finance the payments. However, questions remain over whether tariff revenue would be sufficient.The US Supreme Court has ruled that revenue from Trump’s “Liberation Day” tariffs must be returned. Trump had also previously proposed USD 2,000 payments to taxpayers funded by tariff receipts, but those payments were never introduced.The Tax Foundation has said an earlier USD 2,000 tariff-funded proposal would have cost more than the tariff revenue generated.
Election-year promise
Trump’s latest proposal comes ahead of the November midterm elections, where Republicans are seeking to maintain control of Congress.An Associated Press poll recently found that just 32 per cent of US adults approved of Trump’s handling of the economy, down from 40 per cent at the start of his second term.The proposed USD 5,000 payment has drawn criticism from Democrats, who have called it an “empty promise”, while others have questioned how the programme could be implemented.
