Congressional Action Key to Tariff-Funded Checks
Kevin Hassett, the Director of the White House National Economic Council, recently affirmed that President Donald Trump's proposal to issue $2,000 tariff-funded checks to Americans hinges entirely on congressional approval. Hassett indicated that while the administration is exploring the feasibility, new legislation would be required to authorize such payments.
Speaking on 'Face the Nation with Margaret Brennan' on December 21, 2025, Hassett stated, 'I would expect that in the new year, the president will bring forth a proposal to Congress to make that happen.' He emphasized that Congress would need to pass legislation allowing the Treasury Department to distribute the checks, as any such payment would constitute an appropriation.
Details of the Proposed Payments
President Trump has repeatedly floated the idea of these direct payments, suggesting they would be funded by revenue generated from tariffs on imported goods. The proposed checks, amounting to at least $2,000 per person, are intended for low- and middle-income Americans, with an income cap likely around $100,000 per year for individuals or families.
While the President initially suggested the checks could be distributed in the 'new year,' other White House officials, including Treasury Secretary Scott Bessent, have indicated a potential timeline for distribution around mid-2026, pending legislative action.
Challenges and Congressional Debate
The path to implementing these tariff-funded checks faces significant hurdles in Congress. Many lawmakers, particularly some Republicans, have expressed skepticism about the plan. Concerns have been raised regarding the financial sustainability of the proposal, with budget experts questioning whether tariff revenues would be sufficient to cover the estimated costs.
Estimates suggest that distributing $2,000 checks to eligible Americans could cost between $280 billion and $600 billion, depending on eligibility criteria. In contrast, tariff revenues for fiscal year 2025 were reported at approximately $195 billion, with projections for the next fiscal year ranging from $158 billion to $217 billion. This discrepancy highlights a potential funding gap.
Furthermore, some members of Congress argue that tariff revenues should instead be directed towards reducing the national debt, which currently stands at approximately $38 trillion. The legality of President Trump's tariffs themselves is also under scrutiny, with the Supreme Court currently reviewing challenges to the administration's authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA).
Outlook for the Proposal
Despite the challenges, Hassett expressed optimism about the proposal, citing positive economic news. However, the ultimate realization of the $2,000 tariff checks remains contingent on a complex interplay of legislative approval, financial viability, and ongoing legal considerations. The White House continues to study the matter and prepare a formal proposal for Congress.
5 Comments
Leonardo
The concept of returning tariff revenues to taxpayers has merit, offering a potential economic stimulus. However, relying solely on these revenues seems unsustainable given the projected costs and the ongoing legal challenges to the tariffs themselves.
Raphael
Using tariff money to help citizens? Brilliant! That's how it should be.
Leonardo
This is just a pre-election stunt. It's not fiscally responsible.
Donatello
It's good that the administration is looking for ways to support low and middle-income Americans. Yet, pushing through such a large program without clear congressional consensus and a robust funding mechanism just creates more political division and uncertainty.
Leonardo
Focus on the national debt, not more spending! This is ridiculous.