Trump's $5,000 dividend plan adds $1.3 trillion to US deficit
President Trump has pledged a $5,000 dividend for all U.S. adults if Republicans hold both chambers of Congress, a move France 24 notes is likely illegal and unaffordable given that tariff revenues are currently negative and insufficient to cover the $1.4 trillion cost. Critics warn the injection of cash would further exacerbate the 3.4% inflation rate, while Democrats label the proposal as reckless and corrupt.
France 24 reports that the administration’s claim of funding the payout through tariffs is mathematically impossible, as current customs revenue would take seven years to cover the cost, a timeline complicated by recent Supreme Court rulings requiring refunds to importers. The outlet also highlights legal experts’ concerns that linking the disbursement to specific midterm election outcomes may violate federal statutes prohibiting payments in exchange for political support.
Source: France 24New reporting from GN markets/inflation (en-US) highlights that the administration’s plan to fund this check with roughly $125 billion in tariff revenue leaves a massive gap, forcing the U.S. to issue debt that could push the annual deficit to $3 trillion. Economists warn this fiscal expansion would likely spike Treasury yields and increase borrowing costs for consumers, a sentiment echoed by Florida Governor Ron DeSantis, who publicly criticized the proposal for driving up debt and inflation.
Source: GN markets/inflation (en-US)President Trump proposes a $5,000 payment to every adult American, a measure economists warn will cost $1.3 trillion and worsen inflation.
Source: GN markets/inflation (en-US)
