Key facts
- Donald Trump promised a $5,000 "Trump dividend" to every adult US citizen if Republicans win control of Congress in the midterms.
- The proposal was made at the 2026 Republican National Convention in Dallas.
- The cost of the proposal is estimated to be around $1.2 trillion to $1.35 trillion in one year.
- Skepticism has been raised by Republican Representative Chip Roy and economist Peter Schiff regarding the funding and feasibility.
- California Governor Gavin Newsom and the Democratic National Committee condemned the proposal.
- Vice President JD Vance suggested the payment might be means-tested.
Donald Trump pledged to give every adult US citizen a $5,000 "Trump dividend" if Republicans win control of Congress in the upcoming midterm elections. Speaking at the Republican National Convention in Dallas, Trump stated the dividend would have to be spent in the US and would be akin to a company distributing cash to its shareholders.
The proposal has drawn immediate criticism and skepticism regarding its cost and funding mechanisms. The Committee for a Responsible Federal Budget estimated the plan would cost approximately $1.2 trillion in one year, leading to a significant spike in the deficit and potentially inflation. California Governor Gavin Newsom called it "taxpayer-funded blood money," while the Democratic National Committee labeled it an "empty promise."
Economist Peter Schiff noted that bond investors were already reacting negatively to the proposal, leading to increased Treasury yields. Some Republicans also expressed reservations. Representative Chip Roy questioned the funding plan, and Vice President JD Vance suggested the payment might be means-tested, indicating it may not go to wealthy individuals. The Bipartisan Policy Center calculated that it would take nearly five years of current tariff revenue to cover the cost of such payments.