Trump Still Pushing for Tariff-Funded Stimulus Checks Despite Growing Skepticism in Congress

Former President Donald Trump is continuing to advance his plan to send Americans tariff-funded stimulus checks, even as uncertainty grows over whether Congress will ultimately support the proposal. The idea—centered on issuing a $2,000 “rebate” to eligible taxpayers—has drawn both attention and criticism from lawmakers, particularly within his own party.

Commerce Secretary Howard Lutnick reiterated the administration’s commitment to the proposal during a Fox News interview on Monday, emphasizing that the plan remains a high priority.

“The president’s got that on his desk. I know that’s something he wants to achieve. His legislative team will figure out the best way to do it,” Lutnick said, noting that the White House is still evaluating the most feasible legislative path forward. According to administration officials, passage would require congressional approval, likely through a reconciliation bill similar to the “One Big, Beautiful Bill” Act enacted earlier this year.

The idea of returning tariff revenue to Americans first surfaced earlier this month, when Trump promoted the concept on social media as a type of “dividend” derived from his broader tariff strategy. The proposed payments would begin in 2026 and be targeted toward low- and middle-income earners—potentially capped at annual incomes of $100,000 or less. Supporters within Trump’s circle argue that this approach would directly redistribute tariff funds back to the people most affected by rising import costs.

Growing Republican Resistance

However, the proposal is already facing pushback from key Republican figures on Capitol Hill, many of whom say the funds should be used more responsibly given the country’s worsening fiscal outlook.

House Budget Committee Chairman Jodey Arrington, a Texas Republican, argued that tariff revenues should be directed toward reducing the nation’s ballooning $38 trillion debt rather than being paid out as stimulus checks. Speaking to Bloomberg News, Arrington warned that using tariff income for rebate payments risks worsening long-term financial pressures.

Several GOP senators have echoed this sentiment. Wisconsin Sen. Ron Johnson voiced strong reservations, citing the nearly $2 trillion federal deficit as a major barrier to supporting the plan.

“If we’re bringing in revenue through the tariffs, that ought to be applied to reduce the deficit, not just to making cash payments to Americans,” Johnson told Fox News. “We can’t afford it. I wish we were in a position to return the American public their money, but we’re not.”

Other lawmakers have raised concerns that the proposal could set a precedent for using tariff income—traditionally a tool of trade policy—as a vehicle for direct government spending, adding another layer of complexity to an already strained federal budget.

Trump Doubles Down on Tariff Strategy

Despite the mounting criticism, Trump continues to strongly defend his tariff policies, portraying them as a powerful revenue engine that will ultimately benefit the American public. On his Truth Social platform, he argued that the U.S. is entering a new phase in which more businesses will soon be required to pay tariffs as existing inventories begin to dwindle, which he believes will significantly boost federal revenue.

“Soon, tariffs will be paid on everything they apply to, without avoidance, and the amounts payable to the USA will SKYROCKET—over and above the already historic levels of dollars received,” Trump wrote. “These payments will be RECORD SETTING, and put our Nation on a new and unprecedented course.”

Supporters say increasing tariff revenue could theoretically offset the cost of the rebate checks. Critics counter that higher tariffs ultimately raise prices for consumers and could place additional strain on the economy.

For now, the plan remains in flux, with its fate likely hinging on whether Trump’s team can convince skeptical lawmakers that tariff-funded checks are both financially viable and politically defensible. As Congress debates funding priorities amid record deficits, the idea of sending out another round of payments—even with a new funding mechanism—faces an uphill climb.