President Donald Trump announced on Sunday, November 9, that his administration would be working to roll out $2,000 “tariff dividends” to middle- and low-income citizens. Trump stated the funding would come from money collected through tariffs, and any remaining tariff income would be used to pay down the national debt.
Trump also claimed that income from tariffs was “reported so incorrectly,” and trillions of dollars have been collected from them. The Committee for a Responsible Federal Budget, a non-partisan organization, estimates the dividends could cost $600 billion per year if distributed annually, and the group projects tariff income to be closer to $300 billion.
The dividends would likely work similarly to stimulus checks distributed during the COVID-19 pandemic, which were based on tax return information and sent via direct deposit or paper check. Distribution would require congressional approval, and no formal documents detailing the payments have yet been made public.