Key facts
- Palantir cofounder Joe Lonsdale called Donald Trump's $5,000 dividend proposal a 'bribe'.
- Lonsdale, a GOP donor who endorsed Trump, invoked the phrase 'bread and circuses' to describe the proposal.
- Trump unveiled the proposal at the Republican Party's midterm convention.
- The estimated cost of the dividend would exceed US tariff revenues.
- House Speaker Mike Johnson previously stated that congressional approval would be needed for such checks.
Palantir cofounder Joe Lonsdale has criticized Donald Trump's recent proposal to send $5,000 checks to adult US citizens if Republicans win control of Congress in the upcoming midterms. Lonsdale, a significant Republican donor who endorsed Trump for the 2024 election, described the idea as a "bread and circus bribe," referencing the Roman phrase used to describe appeasing the masses with food and entertainment.
Trump unveiled the proposal during the Republican Party's midterm convention, aiming to boost the party's prospects. However, Lonsdale questioned the feasibility and scale of the plan, asking why the amount couldn't be higher if the administration could simply print money. A White House spokesperson did not immediately respond to a request for comment.
Vice President JD Vance suggested that tariff revenues could potentially fund the dividend, but the estimated cost of over $1 trillion far exceeds current US tariff collections. The Treasury Department reported collecting approximately $194.9 billion in tariffs in fiscal year 2025 and $154.5 billion in the current fiscal year. Additionally, the US has paid out $100 billion in tariff refunds following a Supreme Court ruling that found Trump had overstepped his authority.
Congressional Democrats also voiced skepticism. Representative Robert Garcia of Texas, the top Democrat on the House Oversight Committee, stated that Americans are more concerned with lowering the costs of gas and groceries and expanding healthcare access, rather than the proposed dividend.