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Trump vows $5,000 to every adult US citizen if Republicans keep Congress

The proposed Trump Dividend could cost about $1.35 trillion, would require congressional approval and has yet to get a detailed funding plan

Trump vows $5,000 to every adult US citizen if Republicans keep Congress
[Source photo: File]

US President Donald Trump has promised a $5,000 payment to every adult US citizen if Republicans retain control of both the House and Senate in November’s midterm elections, tying a potentially enormous federal expenditure to the outcome of the vote.

Trump announced what he called the “Trump Dividend” on Wednesday, 9 September, during the Republican Party’s midterm convention in Dallas.

“If the Republicans win, you win with us and you get $5,000,” Trump said. He stipulated that the money would have to be spent in the United States.

Trump provided no detailed funding mechanism, income limits or legislative structure for the proposal. Reuters estimated that paying $5,000 broadly to US adults could cost about $1.35 trillion.

Within an hour of Trump’s announcement, Vice President J.D. Vance suggested the proposal could be narrower than the president had indicated, saying wealthy Americans might not receive the payment. Vance also suggested tariff revenue could help finance the plan.

That would still leave a large funding gap. AP reported that the potential cost of the payments would far exceed US tariff revenue, even before a Supreme Court ruling last year struck down much of Trump’s tariff program. The White House did not provide further details when asked about the proposal.

Any payment program on that scale would also require congressional action. The US Constitution bars money from being drawn from the Treasury without an appropriation made by law, meaning the president cannot independently authorize payments of this size without funding approved by Congress.

At least one Republican senator has already said he plans to move legislation if the party wins.

Ohio Sen. Bernie Moreno said late Wednesday that he would prepare a bill so the Trump Dividend could be taken up immediately after the 3 November election if Republicans prevailed. No legislation setting out eligibility, financing or payment mechanics had been introduced when Trump announced the proposal.

The pledge also prompted questions over whether making a government payment contingent on an election result could run afoul of election laws.

John Day, a New Mexico attorney, told AP that the proposal would not amount to paying individuals for their votes because the money, as Trump described it, would be available regardless of whether a person voted or whom they supported.

“This is a campaign promise,” Day said.

The fiscal implications would nevertheless be substantial.

The US national debt crossed $40 trillion in August. The Committee for a Responsible Federal Budget said the 12-month rolling federal deficit stood at about $1.8 trillion in August, based on Congressional Budget Office estimates.

Adding a payment program costing more than $1 trillion without corresponding spending cuts or additional revenue would therefore require substantially more federal borrowing.

The proposal also comes as government borrowing costs are elevated. The yield on the benchmark 10-year Treasury note reached about 4.8% Wednesday, its highest level in nearly three years, amid broader concern about US borrowing and inflation. Bond markets showed little immediate reaction to Trump’s announcement.

Additional fiscal stimulus could also revive inflation concerns at a time when higher oil prices are adding to pressure on household costs. Brent crude moved back above $100 a barrel this week as the continuing US-Iran conflict disrupted oil flows through the Strait of Hormuz.

Trump presented the proposed dividend as something the US could afford because of what he described as the strength of the economy, comparing the payment with a cash distribution made by a successful company.

The pledge comes less than two months before the 3 November midterms, when Republicans are trying to defend their control of Congress. The election will determine whether Trump retains Republican majorities capable of advancing his agenda during the final two years of his term.

Republicans hold a narrow House majority, while the Senate has also become increasingly competitive. Reuters reported that some Republican strategists gathered in Dallas privately expected the party to lose the House and viewed control of the Senate as much less certain than earlier in the election cycle.

Trump sought to make himself the center of the campaign during his nearly two-hour Dallas speech, urging supporters to treat the midterms almost as if he were again on the ballot.

The strategy carries risks. Several Republicans in competitive races stayed away from the Dallas gathering as the party confronts voter concerns over inflation, higher energy prices and the continuing war with Iran.

Trump has floated direct payments before. Earlier this year, he proposed a $2,000 dividend. Last year, members of the US military received $1,776 payments that Trump called a “warrior dividend.” The $5,000 proposal is considerably larger and differs in one significant respect because Trump explicitly made it conditional on Republicans retaining both chambers of Congress.

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