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President Donald Trump announced on Monday (November 17) that Americans might receive dividend payments funded by tariff revenues as early as next year. Speaking from the Oval Office, Trump stated that "hundreds of millions of dollars in tariff money" would be distributed as dividends by mid-2026. He suggested that $2,000 checks could be sent to low and middle-income Americans, potentially using the remaining funds to reduce the national debt. However, experts, including Erica York from the Tax Foundation, question the feasibility of this plan, noting that the Treasury Department reported only $195 billion in tariff revenue through September, significantly less than the figures cited by Trump.
York highlighted discrepancies in Trump's figures, explaining that the president's estimates might include private sector investments rather than actual tariff revenues. Furthermore, Treasury Secretary Scott Bessent mentioned on Fox News that Congress would need to approve the proposal for rebate checks, adding that the payments would target working families with an income limit.
The proposal faces potential legal challenges, as the Supreme Court is reviewing the legality of Trump's tariffs under an emergency law. Several justices have expressed concerns about the administration's reliance on this law. As reported by CNN, Bessent expressed confidence that the court would not rule against the tariffs but questioned how refunds would be managed if it did.
Despite the hurdles, Trump continues to promote the idea of tariff-funded dividends, arguing that they could provide financial relief to Americans and help lower the national debt. However, as the Tax Foundation op-ed points out, the tariffs have already increased the average tax burden on U.S. households, raising concerns about the long-term economic impact of such policies.