President Donald Trump’s promise of a $5,000 “dividend” for U.S. adults, if Republicans retain control of Congress after the midterm elections, is facing questions over how the roughly $1.2 trillion payout would be financed, with economist Peter Schiff pointing to rising national debt while Commerce Secretary Howard Lutnick insists it will not come from taxpayers.
Peter Schiff Questions Trump’s $5,000 Dividend
On Friday, Trump doubled down on the proposal, saying on Truth Social that the dividend “will happen” because Americans deserve a share of the country’s economic success.
Schiff challenged that argument on X, pointing to the government’s growing debt.
“Trump claims he’s made America so much money that the government can afford to pay every adult American a $5,000 ‘dividend,” said Schiff. “But during the 20 months he’s been in office, our national debt has grown by almost $4 trillion. How do you declare a dividend when you’ve lost that much?”
Howard Lutnick Says Checks Won’t Come From Taxpayers
Lutnick said Thursday that the proposed payments would not be funded with taxpayer money.
“It’s not tax money,” Lutnick said in an interview with NBC News, adding that the administration would find ways to “earn the money” needed to make the payments without relying on the deficit or taxpayers.
He pointed to Trump’s proposed Platinum Card immigration program, which would require applicants to make a $5 million contribution to the U.S. government.
Lutnick said more than 100,000 people are on a waitlist, potentially representing about $500 billion.
He also cited the government’s investment in chipmaker Intel Corp (NASDAQ:INTC), saying its holdings had gained roughly $50 billion as the stock climbed.
Trump Dividend Faces GOP Pushback
The proposal has also drawn criticism from Republicans, including Florida Gov. Ron DeSantis.
DeSantis warned against borrowing another trillion-plus dollars to distribute the money, saying it could “lead to more inflation.”
White House National Economic Council Director Kevin Hassett, meanwhile, has suggested a reconciliation package could provide another potential funding mechanism, according to The Hill.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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