Key facts
- US Commerce Secretary Howard Lutnick said Donald Trump's proposed $5,000 "dividend" would not be funded by tax revenues.
- Trump suggested the "Trump dividend" could be funded in part by tariff revenue.
- Lutnick indicated some funds could come from charging wealthy visitors to extend visas, estimating $500 billion in potential revenue.
- Kevin Hassett mentioned a congressional reconciliation process as a potential funding path.
- The US national debt has surpassed $40 trillion.
- An Associated Press poll found 32% of US adults approve of Trump's handling of the economy.
US Commerce Secretary Howard Lutnick stated that Donald Trump's proposal to issue a $5,000 "dividend" to all US adults, contingent on Republicans maintaining control of Congress in the upcoming midterm elections, would not be funded by tax revenues or the national deficit. Lutnick indicated in an interview with NBC News that the administration could "earn the money" through other means.
Trump announced the "Trump dividend" at a rally in Dallas, Texas, comparing it to a "Warrior Dividend" for military service members. The proposal, which could cost up to $1 trillion, has faced criticism given the US national debt exceeding $40 trillion.
Lutnick suggested that a portion of the funds could come from a planned program to charge wealthy visitors for visa extensions, estimating this could generate $500 billion. He also pointed to the appreciation of a government investment in chipmaker Intel as a potential source of funds.
Other administration officials have also weighed in on potential funding mechanisms. Kevin Hassett, director of the National Economic Council, told Bloomberg TV that a congressional reconciliation process is being considered, emphasizing that there are "multiple paths to getting it done" in a "fiscally responsible way."
JD Vance has also proposed using tariff revenues to cover the dividend costs, specifying that payments would not be made to wealthy Americans. However, the Supreme Court has ruled against Trump's "liberation day" import tariffs, and previous proposals to return tariff revenue to taxpayers have reportedly exceeded actual revenue raised, according to the Tax Foundation.
Trump's dividend proposal comes as a recent Associated Press poll indicates that only 32% of US adults approve of his handling of the economy.