"Trump said on One America News television network in October that he was considering checks worth between $1,000 and $2,000. "We're going to do something, we're looking at something. No. 1, we're paying down debt. Because people have allowed the debt to go crazy," he said at the time. "We'll pay back debt, but we also might make a distribution to the people, almost like a dividend to the people of America," he added."
"Reality check: Rebates would return to consumers some of the higher prices they've paid as a result of the new tariffs - but could also worsen inflation, similar to what happened after previous rounds of government stimulus. Government-issued checks were popular for Trump in the early years of the pandemic. Is there enough money for tariff-based stimulus? Zoom in: The government generated $195 billion in tariff-related revenue in fiscal 2025, per the Treasury Department."
Proposal to use tariff revenue aims to generate trillions to pay down a $37 trillion national debt while funding at least $2,000 per person payments excluding high-income individuals. Tariff-based stimulus has been repeatedly proposed but not implemented. Tariffs contributed to higher consumer prices and generated political backlash against the party associated with them. The Supreme Court could cancel levies, creating potential obligations to refund previously collected tariffs. Tariff rebates would return some of the higher prices consumers paid but could further fuel inflation, similar to earlier stimulus effects. The Treasury reported $195 billion in tariff revenue in fiscal 2025.
Read at Axios
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