President Donald Trump has proposed a one-time $5,000 "dividend" for every adult American, contingent on Republicans retaining control of Congress following the midterm elections. The proposal would require an estimated $1.2 trillion payout, a figure that has drawn scrutiny regarding its financing.
Economist Peter Schiff has challenged the plan, arguing that the government cannot afford the payments while the national debt is rising. Schiff noted that during the roughly 20 months of the current administration, the national debt has grown by nearly $4 trillion. He questioned how the government can declare a dividend when it has accumulated that level of debt.
Commerce Secretary Howard Lutnick has addressed the funding concerns, stating that the payments will not come from taxpayer money. Lutnick indicated that the administration intends to "earn the money" required for the payouts without relying on the deficit or taxpayer funds. He pointed to two specific potential revenue sources: the proposed Platinum Card immigration program and the government's investment in Intel Corp.
Lutnick stated that more than 100,000 people are on a waitlist for the Platinum Card, which requires a $5 million contribution to the U.S. government. He estimated this could generate approximately $500 billion. Additionally, he cited the government's holdings in Intel, noting that the value of those shares had increased by roughly $50 billion as the stock price climbed.
The proposal has also faced criticism from within the Republican Party. Florida Governor Ron DeSantis warned against borrowing another trillion-plus dollars to distribute the money, suggesting it could lead to higher inflation. White House National Economic Council Director Kevin Hassett has suggested that a reconciliation package could serve as another potential mechanism to fund the initiative.
