Commerce Secretary Howard Lutnick says Donald Trump’s proposed $5,000 dividend for all US adults would not be paid from tax revenue or the federal deficit. Trump has tied the payment to Republicans maintaining control of Congress in November’s elections, and the proposal could cost as much as $1tn if paid to all Americans.
Trump has suggested tariff revenue could help fund the one-time, tax-free payment, while administration officials have floated other possible sources. No final funding plan for the dividend was identified in the statements described.
Officials point to new revenue and investments
Lutnick told NBC News that a planned Commerce Department program could charge wealthy visitors up to $5m to extend their US visas. He said more than 100,000 people were on a waitlist and estimated the program could raise $500bn.
Lutnick also cited the government’s $8.9bn investment in Intel, saying the company’s share price had risen from $20 to $100. He presented the investment’s increase in market value as another possible source of money for the payments.
Tariff funding faces legal and budget questions
Trump has linked the dividend partly to tariff revenue, and Vice-President JD Vance has said tariff receipts could cover the cost while suggesting wealthy Americans would not receive payments. The US supreme court has ruled that revenue from Trump’s 2025 “liberation day” import tariffs must be returned.
Kevin Hassett, director of the National Economic Council, said the White House was considering a congressional “reconciliation process” to fund the program. The nonpartisan Tax Foundation previously said a separate proposal to return $2,000 to taxpayers from tariff receipts exceeded the revenue collected.
The proposal comes amid economic criticism
Trump announced the dividend at a Republican midterm convention rally in Dallas, Texas, comparing it with a one-time, tax-free $1,776 “Warrior Dividend” approved for about 1.45 million US military service members last year. Read the context: Examining Trump’s attempts to impact the 2026 midterm election outcomes.
The proposal has drawn criticism as US national debt recently passed $40tn, compared with $10tn in 2008. An Associated Press poll found that 32% of US adults approved of Trump’s handling of the economy, down from 40% at the start of his second term.
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