Taxes wouldn’t fund $5,000 Trump ‘dividend’ if Republicans win midterms, says commerce secretary | Trump administration
US politics | The Guardian — 2026-09-12 09:38:00 — www.theguardian.com
Trump Touts $5,000 “Dividend” for Americans, Faces Scrutiny Over Funding Claims
Donald Trump has promised a $5,000 “dividend” payment to every US adult if Republicans maintain control of Congress in November’s elections, asserting that the money would not come from US tax revenues. Speaking at a Republican midterm convention rally in Dallas, Trump said he would issue the dividends “because of our tremendous strength and success economically,” and compared the proposal to a previous one-time, tax-free $1,776 “Warrior Dividend” for military service members.
Trump suggested the $1 trillion plan could be funded in part by tariff revenue, telling the crowd, “If the Republicans win, you win with us, and you get $5,000,” and branding the payment “the Trump dividend.” However, the proposal has drawn widespread criticism, especially as the US national debt recently surpassed $40 trillion, nearly quadrupling since 2008.
Dubious Funding Sources and Fact-Check Concerns
Administration officials, including Commerce Secretary Howard Lutnick, have echoed Trump’s claim that the payments would not be sourced from taxpayers or the deficit. Lutnick floated the idea of raising funds by charging wealthy visitors up to $5 million to extend their visas, estimating this could generate $500 billion. He also pointed to the government’s investment in chipmaker Intel, which has appreciated significantly in market value.
Despite these assertions, the feasibility of Trump’s funding plan is highly questionable. The Supreme Court has ruled that revenue from Trump’s “liberation day” 2025 import tariffs must be returned, and a previous proposal to return $2,000 to taxpayers from tariff receipts exceeded the actual revenue raised, according to the nonpartisan Tax Foundation. This casts doubt on Trump’s repeated suggestion that tariffs could cover the cost of the $5,000 dividend.
Public Skepticism and Economic Realities
Trump’s proposal comes as public approval of his handling of the economy has declined, with a recent Associated Press poll showing only 32% of US adults expressing support, down from 40% at the start of his second term. Critics argue that the plan is not only fiscally unrealistic but also misleading, given the immense scale of the national debt and the lack of viable, non-taxpayer funding sources.
Conclusion
While Trump continues to promote the $5,000 “Trump dividend” as a reward for Republican electoral success, fact-checks and legal rulings challenge the credibility of his funding claims. The proposal highlights ongoing concerns about the accuracy of Trump’s economic promises and the potential consequences for the nation’s fiscal health. As the debate continues, Americans are left to weigh campaign rhetoric against economic realities.
Source: https://www.theguardian.com/us-news/2026/sep/12/trump-midterm-dividend-funding