California Gov. Gavin Newsom (D) is pushing back against President Donald Trump’s proposed $5,000 “dividend,” arguing that Americans should first be compensated for billions in additional fuel costs tied to the Iran conflict.
Newsom Targets Trump’s $5,000 Dividend
On Thursday, Newsom took to X to criticize Trump’s proposal, which would give every adult American $5,000 if Republicans retain control of Congress in the November midterm elections.
“Donald Trump’s idea to buy your vote with $5,000 checks is another pathetic scheme from a pathetic man,” Newsom said.
He added that Republicans should instead reimburse Americans for more than $108 billion in additional gasoline and diesel costs that Newsom attributes to the Iran war.
Americans Face $107 Billion in Extra Fuel Costs
This week, the Wall Street Journal reported that U.S. consumers have collectively spent about $107 billion more on gasoline and diesel than they would have without the conflicts, citing estimates from Brown University’s Climate Solutions Lab.
The estimate covers the period since the Iran war began on Feb. 28 and compares actual gasoline and diesel prices with a counterfactual estimate of what prices would have been without the conflict. The analysis also incorporates disruptions associated with the Russia-Ukraine war.
How Trump’s $5,000 Checks Would Be Funded
Trump has described the proposed payment as a dividend generated by the strength of the U.S. economy. During the Republican Party’s midterm convention in Dallas, Trump said that the plan would provide $5,000 to every adult American if Republicans retain control of both chambers of Congress in November.
Commerce Secretary Howard Lutnick has said the payments would not come from taxpayer money or the federal deficit. “It’s not tax money,” Lutnick told NBC News, adding that the administration would “earn the money” needed to make the payments.
Meanwhile, Economist Peter Schiff has questioned how the government could afford the payments while the national debt continues to rise.
The proposal would require congressional approval, according to House Speaker Mike Johnson (R-La.), the Associated Press reported earlier this week.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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