President Donald Trump’s proposal to send $2,000 stimulus checks to American households using revenue from tariffs has been met with pushback from key Republican lawmakers.
Despite concerns from senior Republicans, Trump has insisted the plans will go ahead, telling a U.S.-Saudi Investment Forum in Washington, D.C., on Wednesday, “We’re going to be doing a dividend—low- and middle-income people—of at least $2,000.”
It is the latest sign of divisions between the White House and the GOP-controlled Congress and may indicate Trump’s weakening authority on the Hill.
Newsweek contacted the White House for comment via email outside regular working hours.
Why It Matters
Trump’s stimulus check plan has emerged as a focal point in discussions about the cost of living, federal deficit and use of executive authority in an election cycle marked by economic concerns. Lawmakers are pushing for congressional sign-off, but the White House has indicated it is looking at ways to deliver the policy unilaterally.
The proposal’s reception in Congress and the question of its legality could affect millions of Americans and influence the midterm elections.
What To Know
On November 9, Trump wrote on Truth Social that “a dividend of at least $2000 a person (not including high-income people!) will be paid to everyone,” saying tariff revenue collected under his administration’s expanded trade policies would fund the stimulus.
He argued that tariffs had generated “trillions of dollars” for the United States and that the country had become wealthier and more financially resilient as a result.
Top Senate Republicans, however, have spoken out against the idea, favoring deficit reduction over direct payments.
“I think it would be crazy to send money to people while we have a deficit,” Republican Senator Rand Paul of Kentucky said late Tuesday.
House Budget Committee Chair Jodey Arrington said he told Treasury Secretary Scott Bessent in a Wednesday meeting that he favored tariff revenue being put toward driving down the deficit, rather than state handouts.
Trump’s initial message did not clarify who would qualify for the payment, how the checks would be distributed or the timeline for implementation.
White House representatives later indicated that the proposed payouts could take the form of tax abatements or credits, referencing deductions on tips, overtime, Social Security and auto loans passed in earlier legislation.
Bessent told ABC News, “It could be just the tax decreases that we are seeing on the president’s agenda,” but he clarified that he had not discussed direct payments with Trump.
Analysis by the Tax Foundation suggests that the federal government has collected $120 billion so far in tariff revenue, while the estimated cost of a $2,000 check for 150 million Americans could approach $300 billion.
Erica York, the vice president of federal tax policy at the think tank, has said available tariff revenue is insufficient to fund the program and called for more transparency and efficiency in the proposed policy.
The Treasury Department’s own forecasts suggest it could take years to generate enough revenue for such payments.
Lawmakers also noted that additional tariff revenue had been previously earmarked for deficit reduction and tax cut offsets.
Legal questions loom over the plan after the Supreme Court heard arguments on whether a president can unilaterally levy tariffs under the International Emergency Economic Powers Act, which could affect available tariff revenue in the future.
What People Are Saying
Republican Senator Shelley Moore Capito of West Virginia, a member of Senate leadership, told Axios: “I think it would be good to use the tariff revenues to pay down the debt and the deficit.”
Senate Majority Leader John Thune, a Republican from South Dakota, told reporters: “I think the amount of money coming in from the tariffs is considered to be substantial at this point and hopefully can be put to a useful purpose. Again, in my view, one of which would be repaying the debt.”
Republican Senator Bernie Moreno of Ohio said, “I think we should pay down the deficit.”
Republican Senator John Kennedy of Louisiana said, “I think it’s got to come through Congress.”
Republican Senator Kevin Cramer of North Dakota said of the dividend: “I’m not nuts for it.”
He added, “Lower-income Americans deserve a break. Maybe they do, but I also think that, you know, it’s got potential to be somewhat inflationary.”
Treasury Secretary Scott Bessent told ABC News, “It could be just the tax decreases that we are seeing on the president’s agenda. No tax on tips, no tax on overtime, no tax on Social Security, and deductibility on auto loans. Those are substantial deductions that are being financed in the tax bill.”
What Happens Next
The proposal faces major legislative and fiscal hurdles. Senate GOP resistance and deficit concerns make congressional passage unlikely.
Without congressional authorization, administration officials have not confirmed whether there is a clear legal pathway to distribute the checks.
The Supreme Court’s pending ruling on presidential tariff authority could limit the executive’s power to levy new tariffs and redirect resulting revenue, a development that would further complicate the viability of the $2,000 dividend plan.
Meanwhile, the White House has not provided details on payment eligibility, delivery mechanisms, or funding sources.