Republican lawmakers are pushing back on President Trump’s idea of $2,000 tariff checks – raising concerns about the risks to inflation, national debt and the need for congressional approval.
Trump has vowed to issue the payments to most Americans sometime before the 2026 midterms, using revenue from his massive slew of tariffs.
“We’re going to be doing a dividend to the people, low- and middle-, moderate-income people, of at least $2,000,” he said Wednesday.
But as national debt surpasses $37 trillion and nears a record high, Republicans are questioning why tariff revenue would be used for stimulus payments instead of paying down the debt.
“I thought we were using the tariffs to retire the debt,” Sen. Thom Tillis (R-NC) told The Wall Street Journal. “This would seem to be counter to that original sell job.”
Ninety state officials sent a letter to Trump and members of Congress on Thursday urging them to approve a plan by next July to balance the budget, The Post exclusively reported.
Many are concerned the checks – which would pump hundreds of billions of dollars into the US economy – could worsen inflation the same way Biden-era COVID stimulus payments did.
Treasury Secretary Scott Bessent has tried to throw cold water on the idea – most recently suggesting that recipients set the money aside in “Trump accounts” for kids instead of spending it.
When asked how the administration plans to prevent stimulus-driven inflation, Bessent told Fox News on Tuesday: “Maybe we could persuade Americans to save that, because one of the things that’s going to happen next year” is the start of “Trump accounts” for kids.
Trump’s “big, beautiful bill” includes a new class of investment accounts for children born between 2025 and 2028, which will get $1,000 each from the US Treasury. Parents can contribute another $5,000 per year.
There’s also the question of how the country could afford the $2,000 checks. The payout would cost as much as $600 billion – twice the revenue expected from tariffs, according to the Committee for a Responsible Federal Budget.
Some GOP lawmakers argued the tariff revenue would be better spent on new healthcare policies, as Obamacare tax credits are slated to expire Dec. 31.
The White House did not immediately respond to The Post’s request for comment.
Trump has been touting his economic agenda and looking for ways to address concerns around the high cost of living following blue election wins earlier this month, including socialist New York City Mayor-elect Zohran Mamdani’s.
But GOPers are concerned the stimulus checks could spike inflation – a move that ultimately tanked Biden’s approval ratings.
“I don’t like tariffs for revenue, but if you have the revenue, we should be able to pay down the deficits,” Rep. Blake Moore (R-Utah), a member of the House Budget Committee, told The Journal.
“That is a top priority for me on what that revenue should be used for.”
Budget Committee Chairman Jodey Arrington (R-Texas) told The Journal that reducing the budget deficit would help lower prices and interest rates, ultimately serving as a “dividend” to future generations.
Rep. Greg Murphy (R-NC) said he would consider proposals for sending checks to people who need it, but doubled down on the threat posed by the national debt.
Sen. Roger Marshall (R-Kan.) said he would rather use the revenue “to fund a reinsurance pool, use it for [health savings accounts] to help drive down the cost of healthcare and premiums for patients” as Republicans review proposals to change the Affordable Care Act.
It’s also unclear whether the Trump administration will be able to clinch congressional approval for the checks.
Sen. Ron Wyden (D-Ore.) said he is not sure what the president is actually proposing, citing varying accounts from different members of the administration.
“They’re all over the map,” he told The Journal.
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