A Republican senator is pushing back on former President Donald Trump’s proposal to send $2,000 “tariff dividend” checks to Americans, warning the plan would place too much strain on the federal budget.
Wisconsin Senator Ron Johnson argued that, despite the appeal of rebate checks funded by tariff revenue, the federal government is in no position to afford them.
“Look, we can’t afford it. I wish we were in a position to return the American public their money, but we’re not,” Johnson told Fox Business’s Maria Bartiromo.
Why It Matters
Tariffs have contributed to higher prices on many everyday goods, and $2,000 checks could offer welcome relief to low- and moderate-income Americans struggling with inflation.
Trump and Treasury Secretary Scott Bessent have discussed using tariff revenue to fund these dividends, but Congress would still need to approve any such rebate program.
Johnson, however, pointed to the scale of the federal deficit as a major obstacle. He said the U.S. is facing a roughly $2 trillion deficit this year and cannot responsibly add hundreds of billions of dollars in new outflows, even if some of it is offset by tariff income.
“President Trump had deficits about $800 billion. Obama, in his last four years, $550 billion a year. Now we’re $2 trillion? Completely unacceptable. We have to start focusing on that and doing something about it,” Johnson said.
What To Know
According to the Treasury Department, the Trump administration has collected more than $220 billion in tariff revenue. But estimates suggest $2,000 checks would be far more expensive. Based on a CNN calculation, such a program could cost roughly $326 billion.
Trump first floated the “tariff dividend” idea in August, saying, “We’re taking in so much money that we may very well make a dividend to the people of America.”
What People Are Saying
Trump has continued to publicly champion the proposal. On Truth Social, he wrote: “People that are against Tariffs are FOOLS! A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.”
Treasury Secretary Scott Bessent suggested the administration is also considering broader tax relief alongside the proposed checks. Speaking to Fox News, he said: “You know, it could be just the tax decreases that we are seeing on the president’s agenda. You know, no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek that Johnson’s stance reflects a wider concern in Washington about mounting federal debt.
“There should be no surprise by these comments as they reflect a growing sentiment on both sides of the political aisle for tackling the ballooning national debt,” Beene said. “Assuming the tariffs hold legally, the additional revenue could go some way to filling in the growing deficit the federal government has to contend with each year.”
What Happens Next
Even if taxpayers would see short-term benefits from $2,000 checks, Beene cautioned that the long-term consequences for the national balance sheet could be negative.
“Diverting that revenue into checks for some taxpayers may sound good in the short term, but it could add to continuing budgetary strain in the long term,” he said.
For now, Trump’s proposal remains just that — an idea that would require Congressional approval, and one that faces skepticism from lawmakers concerned about deepening the federal deficit.
