Key facts
- Donald Trump pledged to pay every adult American $5,000 if Republicans win control of Congress in the Nov. 3 midterm elections.
- The proposed $5,000 payment would be called the 'Trump dividend' and must be spent in the U.S.
- The White House stated the dividend is possible due to "unleashed trillions in new private investment" and reduced government waste.
- Experts estimate the dividend would cost $1.2 trillion and require congressional approval.
- The White House also announced $500 "Obamacare refunds" for nearly 1 million people in 30 states, expected to be sent in October.
- Critics called the $5,000 dividend a "political bribe" and a "socialist vote-buying scheme."
President Donald Trump announced a pledge to distribute $5,000 to every adult American if Republicans secure victories in the upcoming midterm elections. The announcement was made during the Republican Party's midterm convention in Dallas.
Trump referred to the proposed payment as the "Trump dividend" and stated it would need to be spent within the U.S., attributing its feasibility to the "tremendous strength and success" of the American economy. However, he did not provide details on the funding mechanism or the total cost of the initiative. A White House press release suggested the dividend could be financed through "unleashed trillions in new private investment" and reductions in government waste.
Experts estimate the cost of such a program at $1.2 trillion, noting that congressional approval would be necessary. Senator Bernie Moreno, R-Ohio, indicated he would draft legislation to support the dividend, while Senate Majority Leader John Thune expressed that the matter would be considered if it reached the Senate.
The proposal drew sharp criticism from Democrats, with Representative Jamie Raskin calling it a "political bribe" and Representative Dan Goldman labeling it "corrupt and blatantly illegal." Some Republicans also voiced concerns; Florida Governor Ron DeSantis warned of potential increases in debt and inflation, and former Representative Bob Good characterized the checks as a "socialist vote-buying scheme."
Senator Susan Collins commented that the dividend, based on available details, would likely lack an income cap and be exceedingly expensive, suggesting that tax and spending decisions should not appear tied to election outcomes.
Separately, the White House announced plans to issue $500 "Obamacare refunds" to approximately 1 million individuals in 30 states. These refunds are reportedly due to excess fees collected through Healthcare.gov, the federal marketplace for Affordable Care Act coverage, which the administration claims were passed on to consumers via higher premiums. These checks are anticipated to be distributed in October.