The Trump administration outlined potential funding mechanisms for a proposed $5,000 dividend to be distributed to all US adults if Republicans maintain control of Congress following November’s midterm elections.
Commerce Secretary Howard Lutnick told NBC News that the payments would not be financed through tax revenues or deficit spending. He suggested several alternative funding sources, including tariff revenue and a planned commerce department program allowing wealthy international visitors to pay up to $5 million to extend their visas. Lutnick stated that the visa program could generate approximately $500 billion, citing a waitlist of over 100,000 potential applicants. He also referenced the government’s $8.9 billion investment in chipmaker Intel, which has appreciated significantly in market value from $20 to $100 per share.
Other administration officials offered additional proposals on financing the initiative. Kevin Hassett, director of the National Economic Council, mentioned that the White House is exploring a congressional reconciliation process to fund the program while maintaining fiscal responsibility. Vice President JD Vance similarly suggested that tariff revenues would cover costs and indicated the payments would exclude wealthy Americans.
However, obstacles to these funding proposals have emerged. The Supreme Court has ruled that revenue from Trump’s 2025 import tariffs must be returned, and a prior proposal to return $2,000 to taxpayers from tariff receipts exceeded the actual revenue collected, according to the nonpartisan Tax Foundation. The potential cost of the dividend could reach $1 trillion if distributed to all Americans.
The proposal has faced substantial criticism, particularly given that the US national debt recently exceeded $40 trillion, representing a nearly 300% increase from $10 trillion in 2008. An Associated Press poll found that only 32% of US adults approve of how the president is handling the economy, down from 40% at the start of his second term.
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