UPDATE: The Trump administration has reaffirmed its commitment to sending $2,000 checks to Americans funded by tariff revenue, a plan that could significantly impact millions. White House Press Secretary Karoline Leavitt announced just moments ago that President Donald Trump is “committed” to the proposal and is exploring implementation strategies.
This urgent announcement follows Trump’s recent social media posts where he promised checks for every American, excluding “high-income people.” Leavitt emphasized during today’s press briefing, “The White House is exploring the legal options of how we get that done.” However, specific implementation details remain unclear.
Kevin Hassett, Director of the National Economic Council, further confirmed that legislative approval from Congress is necessary. “It’s something that will require legislation, but if you look at how much tariff revenue has been coming in, then there would actually be enough room to cover those checks,” he stated, highlighting the complexities of financing such payments.
Critics point out that while Trump claims “trillions of dollars” from tariffs, experts like John Ricco from Yale University estimate actual revenue to be closer to $200 billion to $300 billion annually. This raises concerns, as a full rollout of $2,000 checks to all Americans, including children, could total an estimated $600 billion.
“It’s clear that the revenue coming in would not be adequate,” Ricco remarked, sparking debate over the feasibility of the plan.
Meanwhile, Treasury Secretary Scott Bessent appeared taken aback by the announcement during an ABC News interview, suggesting that any rebate might actually come in the form of tax cuts rather than direct payments. “It could be just the tax decreases that we are seeing on the president’s agenda,” he explained, indicating a divergence in messaging from the administration.
As of September 30, the federal government reported generating $195 billion in tariff revenue. However, significant political hurdles remain, as many Republican senators have criticized the proposal, labeling it a “bad idea” and advocating for using tariff revenue to reduce national debt instead.
In July, Senator Josh Hawley introduced the American Worker Rebate Act, aiming to facilitate stimulus checks, but the proposal has struggled to gain traction among his peers. The lack of consensus raises questions about the viability of Trump’s plan.
This latest push for checks comes as the Supreme Court deliberates on the legality of Trump’s tariffs. Just last week, justices expressed skepticism regarding the administration’s claims of broad emergency powers to impose tariffs without Congressional approval. If the court rules against the tariffs, the administration may face the prospect of refunding importers instead of distributing checks.
Rumors of a new IRS direct deposit “stimulus” payment have circulated online recently, but the IRS has confirmed these claims are false. The last federal stimulus checks were issued in 2021, and the agency has warned the public about falling victim to “stimulus check” scams.
As the situation develops, the nation is on high alert for the next steps in this contentious proposal. Will Congress approve the necessary legislation? Can Trump secure enough support to turn this plan into reality? Stay tuned for updates as this story unfolds.
