Around 150 million Americans could see $2,000 rebates under the Trump administration if the president’s proposed dividends are passed.
Trump has suggested a $2,000 direct payment as a way to give back to Americans after the widespread tariffs he implemented on imports.
“A dividend of at least $2000 a person (not including high income people!) will be paid to everyone,” Trump wrote Sunday on Truth Social.
Why It Matters
As tariffs often end up raising prices for everyday Americans, the $2,000 dividends could be a welcome relief to many low to moderate income Americans who have experienced inflation.
While Trump and Treasury Secretary Scott Bessent have been in talks over the dividends courtesy of tariff revenue, Congressional approval would be needed to get the money into the hands of the American people.
What To Know
Since Bessent said that the dividends would be available to families making under $100,000, that translates to roughly 150 million people who would be eligible for the $2,000 payments.
“At $2k each, you’re looking at a $300 billion price tag,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
“The problem? Tariff revenue doesn’t come close. Even with record customs duties around $195 billion gross, the actual net money available is closer to $90 billion after legal challenges and tax offsets. That’s a $200 billion hole.”
The tariff rebates could work similarly to how the COVID-19 stimulus checks did during the pandemic but specifically funded by the money collected by U.S. importers as a result of Trump’s tariffs.
During the coronavirus, more than 476 million payments totaling $814 billion in financial relief went to households impacted by the pandemic, according to the Pandemic Oversight organization. For each stimulus round, that translated to an average of a little over 160 million people receiving payments.
So far, the Trump administration has collected more than $220 billion in tariff revenue, according to the Treasury Department. It’s predicted that $2,000 stimulus checks would cost the U.S. roughly $326 billion, a CNN estimate said.
What People Are Saying
Treasury Secretary Scott Bessent told Fox News: “You know, it could be just the tax decreases that we are seeing on the president’s agenda. You know, no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans.”
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: “Tariffs are essentially a tax Americans pay at the checkout counter. So while a $2,000 check might sound good, tariffs on imports drive up prices on everything from groceries to clothes. Part of that ‘dividend’ gets clawed back through higher costs.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “A lot of people are assuming this will look like the pandemic-era stimulus, but I don’t see that as being the case.
“If anything does pass, it will be symbolic. Hard checks aren’t happening. That goes directly against the Republican agenda of debt reduction, and they’re not going to reverse that stance with a new round of payments. Long term, this isn’t another COVID-style injection of cash into the economy. It’s more of a policy adjustment than a true stimulus.”
What Happens Next
Ryan said the dividend likely won’t come to fruition soon because Congress has not passed any law to authorize it.
“Officials are already floating alternatives like tax breaks on tips instead of actual checks, which is politically easier,” Ryan said.
“If it does happen: You’d likely see a short-term bump in spending and a real squeeze on inflation. But tariffs themselves push prices up and slow productivity, so it’s not a sustainable growth strategy.”
