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By Jordan King
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President Donald Trump has said he believes his administration can issue $2,000 “dividend” rebate checks funded by tariff revenue without needing congressional approval.
“I don't think we would have to go to Congress now, but, you know, we'll find out,” Trump said at a press conference on Tuesday, when a reporter asked about White House economic adviser Kevin Hassett saying the payments would “depend on what happens with Congress.”
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Newsweek contacted the White House and the Congressional Press Gallery via email outside of normal working hours, for comment.
Why It Matters
In early November last year, Trump said his administration planned to issue a dividend of about $2,000 to lower- and middle-income Americans, funded by the "trillions of dollars" his tariffs were generating.
The president has provided few specifics on timing, eligibility and legal authority for the proposed $2,000 tariff-funded payments, but said in a recent interview with The New York Times that he expects the payments to arrive “toward the end of the year.”
The Supreme Court is expected to rule on whether Trump’s sweeping tariffs are lawful, a decision that could require refunds of tariff revenue and directly affect the feasibility of issuing any checks
What To Know
Hassett, director of the National Economic Council, said in December that any checks would require a proposal to Congress and would ultimately depend on appropriations, emphasizing Congress’ power of the purse.
"I would expect that in the new year, the president will bring forth a proposal to Congress to make that happen," he told CBS News’ Face the Nation with Margaret Brennan.
But Trump said he thinks the payment may be able to go ahead without Congress on Tuesday.
He repeated what he has already said about these payments being funded by tariffs when he said: “The reason we're even talking about it is that we have so much money coming in from tariffs that we'll be able to issue at least a $2,000 dividend and also pay down debt for the country.”
Trump said that the administration would set an income limit “where it made sense,” but added: “We will be able to make a very substantial dividend to the people of our country.”
There are doubts that the amount of money brought in through tariffs will be enough to fund $2,000 dividends—even when excluding affluent Americans.
The U.S. collected $195 billion in customs duties in the fiscal year that ended September 30, with an additional $90 billion collected so far this year, according to data from the Treasury Department.
An analysis by the nonpartisan Committee for a Responsible Federal Budget estimated that the idea could carry a price tag of about $600 billion, while increasing deficits by "$6 trillion over 10 years." Meanwhile, the Tax Foundation's Erica York previously told Newsweek this "would cost in the order of $300 billion or more."
Hassett said in his interview with CBS News that the payments may not come exclusively from tariff revenue.
“It could come from tariff revenue, but in the end, you know, we get taxes, we get tariffs, we get revenue from lots of places, and then Congress decides how to spend those monies,” he said. “That's an appropriation. And so this would have to be money that would be an appropriation.”
The idea has gathered strong support among the U.S. public, according to a Daily Mail survey of 1,000 registered voters, who were fielded between December 20 and 21.
Some 52 percent said they were in favor of a tariff rebate, including 44 percent of Democrats, while only 20 percent oppose the idea.
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What People Are Saying
**White House economic adviser Kevin Hassett told CBS News: “**I think that most of the tariffs that we've passed this year have proven their mettle. We've got still-high growth, which people said we couldn't if we had tariffs. We have reduction in the deficit.”
White House press secretary Karoline Leavitt said in a November news briefing: "The White House is committed to making [the tariff dividend] happen. Yes. And we are currently exploring all legal options to get that done. I don't have a timeline for you or any further details, but I can confirm for you that the president made it clear he wants to make it happen."
Erica York, vice president of federal tax policy at the Tax Foundation, told Newsweek in November: “Sending out checks to Americans is a recipe for higher inflation at a time when inflation is still stubbornly too high.
“The president is pushing the Federal Reserve to cut interest rates, while he is also now pushing for higher spending—those two policies in combination would seriously threaten a return of higher inflation,” she added.
What Happens Next
The Supreme Court is expected to issue a ruling on the legality of Trump’s tariffs after hearing arguments, which could determine whether tariff receipts would have to be refunded and whether any dividend plan has sufficient funding.
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