Commerce Secretary Defends Trump’s $5,000 Giveaway to Adults, Claims No Taxes Needed
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Commerce Secretary Howard Lutnick told NBC News that Trump’s proposed $5,000 payment to every U.S. adult would be funded by non-tax sources like visa fees, not the federal budget.
Commerce Secretary Howard Lutnick told NBC News that the $5,000 payment to every U.S. adult, a populist move promoted by President Donald Trump, would not come from tax revenues. Instead, Lutnick claimed the administration could 'earn the money that Donald Trump wants to pay out, not from the deficit and not from taxpayers.'
Trump, at a Republican midterm rally in Dallas, branded the payment as a 'Trump dividend,' suggesting it could be financed in part by tariff revenues—ignoring the regressive impact tariffs have on working people. The proposal, which could cost up to $1 trillion if applied to all adults, has drawn criticism as the national debt recently soared past $40 trillion, a crisis exacerbated by years of tax cuts for the wealthy and corporate giveaways.
Lutnick pointed to a Commerce Department scheme to charge wealthy visitors up to $5 million for extended visas, claiming it could generate $500 billion based on a waitlist of over 100,000 applicants. He also cited the $8.9 billion federal investment in Intel, whose market value has increased since the purchase—yet another example of public funds boosting private profits.
Other administration officials have floated additional financing ideas. National Economic Council director Kevin Hassett said the White House is exploring a congressional reconciliation process to fund the payments, describing the approach as 'fiscally responsible'—a claim many progressives view with skepticism, given the administration’s track record. Senator JD Vance has also suggested tariff receipts could cover the cost, noting that the payments would be targeted away from high-income households, though the details remain vague and the wealthy often find ways around such measures.
Legal constraints persist; the Supreme Court has ruled that revenue from certain import tariffs must be returned to the Treasury, and a previous proposal to return $2,000 per taxpayer from tariff receipts exceeded the actual revenue collected, according to the Tax Foundation. Once again, the administration’s promises appear to be built on shaky ground, prioritizing political theater over real solutions for working families.