Donald Trump has said he does not believe Congress would need to approve his proposed $5,000 “Trump Dividend” for American adults, despite the plan potentially costing more than $1 trillion.
In an interview with CBS News Texas political reporter Jack Fink in Arlington, the US president said the payments would follow Republican victories in both chambers of Congress at the midterm elections.
“We think not,” Mr Trump said when asked whether congressional approval would be required. He added that lawmakers would support the plan if approval was needed.
Mr Trump claimed the money could be funded by revenue from tariffs and other sources, describing the payments as “a great infusion” for the US economy. He said recipients would be expected to spend the money within the United States rather than overseas.
“We don’t want to have that money spent in other countries,” he said, without setting out how the scheme would operate or identifying the legal authority for issuing the payments without legislation.
Trump Dividend plan faces questions over cost and inflation
The proposal would involve payments to about 245 million adult US citizens, putting the estimated cost at roughly $1.25 trillion. Annual tariff revenue is currently far below that figure, meaning the government could have to borrow heavily to fund the scheme.
Economists have warned that a large cash payment could increase inflation by encouraging a sharp rise in consumer spending. Critics have also questioned whether the plan would add substantially to the federal deficit.
Vice-president JD Vance has said the dividend would be aimed at the middle class and funded through tariff revenue. The administration has not provided further details on eligibility, timing or the mechanism for making the payments.
Mr Trump unveiled the idea during a speech at the Republican National Committee’s first midterm convention in Dallas, Texas. He made the payments conditional on Republicans retaining control of the House of Representatives and Senate after the November elections.
The president used the appearance to urge voters to treat the elections as a referendum on his administration, telling them to “pretend that I’m on the ballot” even though he is not standing.
He also endorsed Texas attorney general Ken Paxton in the state’s Senate race and said he would return to Texas to campaign for him. Mr Trump said his political action committee, MAGA Inc, was already spending $10 million on television advertising supporting Mr Paxton.
Mr Paxton is seeking the Republican nomination in a contest expected to put him against Democrat James Talarico. Mr Trump said he believed Republicans remained in a strong position in Texas, including among Hispanic voters, but acknowledged that turnout could be different because he himself was not on the ballot.
