Lutnick Says Trump’s $5,000 Checks Would Not Use Taxpayer Funds/ TezzBuzz/ WASHINGTON/ J. Mansour/ Commerce Secretary Howard Lutnick said President Donald Trump’s proposed $5,000 payments would not be financed through taxes or deficit spending. Lutnick cited potential revenue from a proposed immigration program and gains from the government’s Intel investment. The proposal could cost more than $1 trillion and would generally require authorization from Congress.
Quick Look
- Trump has proposed a $5,000 “dividend” for American adults.
- The payments are conditional on Republicans retaining both chambers of Congress.
- Lutnick said the plan would not use taxpayer funds or increase the deficit.
- He cited potential revenue from the proposed Trump Platinum Card.
- Lutnick said more than 100,000 people were on the program’s waiting list.
- He also cited gains from the federal government’s investment in Intel.
- Neither Trump nor Lutnick provided a complete funding or implementation plan.
- Congress ordinarily must authorize federal spending.
Deep Look
Lutnick says payments would not use tax revenue
Commerce Secretary Howard Lutnick said President Donald Trump’s promised $5,000 “dividend” for American adults would not be financed with taxpayer money.
“It’s not tax money,” Lutnick told NBC News during an interview at the National September 11 Memorial & Museum in New York.
Lutnick claimed the administration could “earn the money that Donald Trump wants to pay out, not from the deficit, and not from taxpayers.”
Trump introduced the proposed payments at the Republican midterm convention in Dallas. He said his administration would distribute the money if Republicans retain control of the House and Senate in the November elections.
“Together we’re going to deliver that plan and we’re going to pay that money to the Americans, and not from taxpayer money,” Lutnick said.
Trump tied payments to Republican victories
Trump described the proposed payment as a “dividend” and said it would reward American adults if Republicans maintain their congressional majorities.
The president has not released legislation or a comprehensive plan explaining eligibility, timing, administration or the proposal’s total funding.
Estimates based on the number of American adults suggest that $5,000 payments could cost between $1.2 trillion and $1.3 trilliondepending on eligibility rules. Independent analyses indicate that Congress would generally need to authorize such spending.
Lutnick cites proposed Platinum Card revenue
As one potential funding source, Lutnick pointed to the Trump Platinum Card, a planned Commerce Department immigration program for wealthy applicants.
According to Lutnick, participants would pay $5 million to extend their U.S. visas for an additional 270 days.
“We have a waitlist of more than 100,000 people who want to come,” said Lutnick. “That’s $500 billion dollars.”
The calculation assumes that every person identified by Lutnick pays the full $5 million. The administration has not established that all prospective participants will complete the program or that Congress has authorized its revenue to finance direct payments.
Even if the program generated $500 billion, that amount would cover less than half the estimated cost of distributing $5,000 to every American adult.
Intel investment presented as another funding source
Lutnick also cited the federal government’s investment in chipmaker Intel as an example of how the administration could generate money.
“Everybody knows we got just about 500 million shares, and the stock was $20, and now it’s $100, so we’re up $50 billion.”
His statement describes an increase in the estimated value of the government’s holdings rather than cash that has already been realized through a sale. Any use of federal investment proceeds for direct payments would also be subject to federal budgeting and spending requirements.
Even when government revenue comes from fees, investments or asset sales rather than income taxes, it generally becomes federal money. Congress holds constitutional authority over federal expenditures, making legislative approval a central issue for the proposed dividend.
Funding and inflation questions remain
Trump has said he does not believe congressional approval would be necessary, but he has not explained what legal authority would permit the executive branch to distribute more than $1 trillion without an appropriation.
Some Republican lawmakers have supported preparing legislation for the proposalwhile others have questioned its potential effects on federal debt and inflation.
Economists have warned that placing such a large amount of money into the economy could increase consumer demand and intensify inflation. The United States is already running a substantial annual budget deficit, and the national debt has exceeded $40 trillion.
Lutnick’s comments offer possible revenue sources, but they do not yet amount to a complete financing plan covering the estimated cost of the proposed payments.
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