Donald Trump's proposal to issue a $5,000 "dividend" to all US adults, contingent on Republicans maintaining control of Congress in November's elections, would not be funded by US tax revenues, according to US Commerce Secretary Howard Lutnick.
Lutnick stated in an interview with NBC News that the administration could "earn the money that Donald Trump wants to pay out, not from the deficit and not from taxpayers." Trump had previously suggested the dividend, which could cost up to $1tn, could partly come from tariff revenue.
Among the funding ideas, Lutnick cited a planned Commerce Department program that would charge wealthy visitors to the US up to $5m to extend their visas. He calculated this could raise $500bn. Other administration officials, including Kevin Hassett, director of the National Economic Council, have also suggested a "reconciliation process" in Congress to fund the program.
However, the proposal has faced criticism, particularly as the US national debt recently exceeded $40tn. The Supreme Court has also ruled that revenue from Trump's 2025 import tariffs must be returned, and a previous proposal to return $2,000 to taxpayers from tariff receipts exceeded the revenue raised, according to the nonpartisan Tax Foundation.