Bessent Says Trump’s $2,000 Tariff Dividend May Be Limited to Middle-Class Families
Treasury Secretary Scott Bessent confirmed Wednesday that discussions are underway in the Trump administration about setting income limits for the president’s proposed $2,000 tariff dividend, potentially restricting the payments to households earning under six figures.
“Well, there are a lot of options here that the president’s talking about a $2,000 rebate and those — that would be for families making less than, say, $100,000,” Bessent said on Fox & Friends. When asked whether the administration had finalized that threshold, he clarified, “We haven’t. It’s in discussion.”
The idea of a tariff-funded dividend gained traction after President Trump, still facing legal scrutiny over his “reciprocal tariffs,” floated the $2,000 proposal following a tense Supreme Court hearing last week. While the president has continued to tout the plan as a way to return tariff proceeds directly to Americans, he has yet to outline the mechanics of how such payments would be distributed.
Bessent elaborated on ABC’s This Week that the initiative “could come in lots of forms” and “could be just the tax decreases that we are seeing,” referencing the tax cuts included in the One Big Beautiful Bill Act signed earlier this year. He emphasized that the administration’s tax measures have already led to “no tax on tips, overtime, Social Security, and the big refunds you’re going to see are a result of that.”
The Treasury secretary also highlighted a lesser-known element of the new tax law — “Trump accounts” — automatic savings accounts the government will create for all minors between 2025 and 2028, seeded with a one-time $1,000 deposit.
The $2,000 dividend plan has drawn widespread attention and skepticism. On Sunday, Trump hinted at the idea again, posting, “a dividend of at least $2000 a person (not including high income people!) will be paid to everyone.” But such a sweeping initiative would require congressional approval, something far from guaranteed.
“It’ll never pass,” said Sen. Bernie Moreno of Ohio, who was backed by Vice President JD Vance in his Senate race. “We have a $37 trillion debt.”
Funding remains a major hurdle. The tariffs enacted under Trump’s authority via the International Emergency Economic Powers Act — currently being reviewed by the Supreme Court — have generated only about $90 billion since they were implemented, according to U.S. Customs and Border Protection data through September 23.
For comparison, pandemic-era stimulus proposals that included $2,000 checks were estimated to cost approximately $464 billion. Even if the payments were restricted to individuals earning less than $100,000, the plan would still carry a roughly $300 billion price tag, according to Erica York, vice president of federal tax policy at the Tax Foundation.
Complicating matters further is the possibility that a Supreme Court ruling could force the administration to refund importers if the justices strike down Trump’s use of IEEPA tariffs.
Data from U.S. Customs and Border Protection shows that total tariffs collected — including those outside IEEPA authority — amounted to $195.9 billion in fiscal year 2025 as of August 31. Because tariff rates have fluctuated throughout the year as part of Trump’s ongoing negotiations with trade partners, that figure could rise substantially in fiscal year 2026.
The debate over the proposed dividend comes amid mounting voter anxiety over living costs, an issue that played a decisive role in last week’s Democratic victories in several state elections.
“We inherited this affordability mess. It was the worst inflation, 40, 50 years,” Bessent said. “Imagine two lines. There is the inflation line; we’ve got that under control. It’s leveled out. That is going to start turning down.”
He continued, “And there’s the income line, which under Biden, because so many of the jobs were government jobs, you can’t get real wage growth from a government job, real wages are going to increase.”
{Matzav.com}
