Donald Trump announced a pledge to provide $5,000 to every American adult, contingent on Republicans retaining control of the House and Senate in the upcoming November elections. This promise was made during his speech last Wednesday at the Republican midterm convention.
The proposed payment plan is estimated to cost $1.2tn, based on approximately 240 million adults in the US. This figure is reportedly more than the Pentagon's budget and nearly matches what the US is projected to spend on Medicare this year.
The proposal has drawn criticism from various figures, including some Republicans. Joe Lonsdale, a tech billionaire and Republican donor, expressed strong opposition, while Representative Bob Good of Virginia described it as a "socialist vote-buying scheme."
Concerns have also been raised regarding the potential economic impact. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, warned that the plan could exacerbate the deficit, increase inflation, and drive up borrowing costs. Kenneth Rogoff, a Harvard economics professor, suggested it could worsen the US's deficit and increase the likelihood of a debt crisis.
Administration officials, including JD Vance and Commerce Secretary Howard Lutnick, have claimed the $1.2tn would not come from taxpayers or deficit spending, suggesting sources like tariff revenues and investments in companies.