White House economic adviser Kevin Hassett has defended Donald Trump’s proposal to give every adult American a $5,000 payment, arguing that the plan could be carried out responsibly despite concerns over its impact on government borrowing.
Mr Hassett, director of the National Economic Council, said in a Bloomberg Television interview that the proposal was serious and could be advanced through a reconciliation bill, allowing Republicans to pass tax and spending legislation without Democratic support.
He said the wealth being generated in the United States meant the administration believed more money should be returned to the public. However, he acknowledged that the details, including how the payments would be funded, would have to be negotiated with Congress.
Trump’s $5,000 checks proposal
Mr Trump unveiled the idea at a Republican convention in Dallas on Wednesday, promising a so-called “Trump dividend” if Republicans retain control of both the House of Representatives and the Senate in the November midterm elections.
The White House has described the proposed payment as a $5,000 cash dividend for every adult US citizen. The administration said it would be made possible by the strength of the American economy and indicated that recipients would be expected to spend the money in the United States.
The scale of the proposal would make it one of the largest direct-payment programmes in US history. Estimates from independent analysts put the cost at more than $1 trillion, depending on the number of eligible recipients and whether higher earners were excluded.
The plan has prompted questions over whether the president could authorise such payments without congressional approval. Mr Trump has suggested that approval may not be necessary, while lawmakers and budget experts have said Congress controls federal spending.
Mr Hassett dismissed concerns that the payments would necessarily worsen the government’s finances, but did not identify a firm source of funding. He said the administration had several possible routes available and that the final structure would be decided through negotiations with legislators.
Vice-President JD Vance has appeared to qualify the proposal by describing it as a dividend for American workers, potentially narrowing the group of people who would receive it compared with Mr Trump’s original pledge to every adult citizen.
Republican Senator Bernie Moreno has said he would prepare legislation to introduce the payment after the election. But senior Republicans have so far offered limited public backing, while economists have warned that injecting more than $1 trillion into the economy could increase inflation, borrowing costs and the national debt.
