Bessent: Trump’s $2,000 Tariff Check Proposal Needs New Legislation
Treasury Secretary Scott Bessent has clarified that President Donald Trump’s proposed $2,000 tariff “dividend” will need new legislation from Congress. This comes after Trump indicated the payments could be distributed sometime next year.
Legislative Requirements for Tariff Dividend
During an interview on Fox Business’s “Sunday Morning Futures,” Bessent emphasized that realization of Trump’s tariff dividend depends on legislative approval. He mentioned, “we need legislation for that,” indicating a cautious approach toward the proposed payments.
Details of the Proposal
Trump stated that the $2,000 payments would target working families, although specifics regarding income limits were not provided. He claimed that the U.S. has accrued substantial revenue from tariffs, which would facilitate the dividend payouts.
- Trump has indicated a timeline for payments as “sometime next year.”
- He repeated his assertion of “taking in a lot of money from tariffs” to support the payments.
- There has been no clear outline of where legislative support will come from.
Controversy Surrounding the Proposal
The proposal has faced skepticism, particularly after recent Supreme Court deliberations raised questions about Trump’s authority in imposing tariffs. Only Congress holds the power to allocate federal funds, and it remains uncertain how the payments would be structured.
Potential Forms of Payments
Bessent noted that the payments might take various forms, including potential tax cuts tied to Trump’s policy initiatives. This ambiguity adds to the uncertainty surrounding the implementation of the dividend.
Context of the Proposal
Adding complexity to the discussion, around $100 billion of the tariff revenue is currently under judicial review. This figure represents about half of the total revenue gathered from the tariffs.
In February, Trump floated a separate proposal to distribute 20% of savings from Department of Government Efficiency cuts to citizens, but that initiative also did not materialize.
Conclusion
The implementation of Trump’s $2,000 tariff dividend proposal is contingent on Congressional action. Bessent’s remarks underline the legislative hurdles that may impact the distribution of these proposed payments.
