US President Donald Trump has revived his proposal to give $2,000 payments to Americans, arguing that robust tariff revenues could finance the move, and suggesting it might not require lawmakers’ approval. Speaking to reporters, Trump maintained that collections from import duties have been strong enough to consider direct financial relief for citizens, while also allocating funds toward lowering the country’s debt burden.
When asked whether Congress would need to sign off on the payments, he said, “I don't think we would have to go to Congress, but, you know, we'll find out.”
He further stressed the scale of tariff inflows, stating, “The reason we're even talking about it is that we have so much money coming in from tariffs that we'll be able to issue at least a $2,000 dividend and also pay down debt for the country.”
Supreme Court Ruling Complicates The Plan
The renewed push comes on the heels of a major Supreme Court decision that curtailed the administration’s tariff authority. In the case of Learning Resources, Inc. vsTrump, the court ruled 6-3 that the president overstepped his authority under the International Emergency Economic Powers Act (IEEPA) by imposing sweeping tariffs.
The verdict struck down measures enacted under that statute, including the administration’s so-called “Liberation Day” tariffs, according to a Forbes report. The ruling has cast uncertainty over the feasibility of the proposed “tariff dividend.”
Writing for the majority, Chief Justice John Roberts concluded that the tariffs exceeded limits set by federal law, marking a significant judicial check on the president’s trade strategy.
The financial fallout from the ruling could be considerable. Economists at the Penn-Wharton Budget Model estimate that more than $175 billion in tariff revenues may now be subject to refunds, as reported by Reuters. Such a development could materially affect the funding pool Trump has cited for the proposed payouts.
Despite the legal setback, Trump signalled he would recalibrate rather than retreat. After criticising the six justices who ruled against him, he announced on Truth Social that tariff rates would be adjusted “to the fully allowed, and legally tested, 15 per cent level” under Section 122 of the Trade Act, which permits duties to address “large and serious United States balance-of-payments deficits.”
Questions Over Affordability And Authority
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