U.S. Treasury Secretary Scott Bessent provided an update on former President Donald Trump’s proposal to distribute $2,000 stimulus checks funded by revenues from tariffs implemented during his administration. The statement came during a television interview discussing potential mechanisms for implementing the initiative.
Bessent indicated that the revenue generated by the trade tariffs could reach taxpayers through various means, without confirming a specific plan or timeline for direct payments.
From DOGE to Cash: Evolution Trump’s Stimulus Check Proposals
In his interview with ABC News, the Treasury Secretary acknowledged that he has not had recent discussions with Trump on the specific issue of stimulus checks. Instead, he emphasized that the economic benefit for citizens could materialize through the tax cuts already enacted in the legislation known as the One Big Beautiful Bill Act (OBBBA).
Bessent listed a series of tax relief measures that, in his opinion, constitute a form of financial relief for Americans. “It could simply be the tax cuts we’re seeing on the president’s agenda. You know, no tip tax, no overtime tax, no Social Security tax, the deductibility of auto loans,” Bessent stated in response to questions from host George Stephanopoulos. “So, you know, those are substantial deductions that, you know, are being funded in the tax bill.”
$2,000 Stimulus Check: Funding Source’s Already Being Used
There have been few formal announcements from the administration regarding whether and how Trump’s stimulus checks will be distributed. This official silence has generated skepticism among some analysts and lawmakers, who recall the previous abandonment of a similar proposal involving dividends linked to the DOGE digital currency.
The main concerns revolve around whether the costs of this new initiative would exceed actual tariff revenues and the legal uncertainty surrounding the tariffs themselves, whose ultimate fate is currently being deliberated by the U.S. Supreme Court.
The Idea of the President: Stimulus Checks Again
Trump unveiled his idea for a tariff rebate in a series of posts on his platform, Truth Social. The former president staunchly defended the trade tariffs after significant questions about their legality were raised during a Supreme Court hearing the previous Wednesday.
In his writings, Trump attacked critics of his trade policy and listed what he considers his administration’s economic achievements.
The president called critics of the policy “fools” and claimed that the United States is “bringing in trillions of dollars” thanks to the tariffs, before declaring that a $2,000 dividend would be paid to every American except for “high-income earners.” The specific definition of what constitutes a high income in this context has not been detailed by the former president or his team.
According to the latest monthly report published by the Treasury Department, the United States collected approximately $195 billion in tariffs during Fiscal Year 2025. Long-term projections vary significantly among different institutions. The Yale Budget Lab estimates that tariffs could generate around $2.5 trillion over a ten-year period, while the Congressional Budget Office predicts they could raise $3.3 trillion for the period 2025-2035.
