Washington, D.C. — Commerce Secretary Howard Lutnick says President Donald Trump’s proposed $5,000 “Trump Dividend” would not be financed with taxpayer money, as administration officials continue offering different ideas for how the costly proposal could be funded.
“It’s not tax money,” Lutnick told NBC News, saying the administration could raise money through other government programs rather than increasing the deficit. Among the possibilities he cited was a proposed program charging wealthy foreign nationals as much as $5 million to extend their visas. Lutnick said a waiting list of more than 100,000 people could potentially generate hundreds of billions of dollars, though that program has not yet produced funding for the dividend.
Trump announced the $5,000 payment at the Republican midterm convention in Dallas, promising it to adult U.S. citizens if Republicans maintain control of Congress.
Other administration officials have floated different funding approaches. National Economic Council Director Kevin Hassett has discussed using congressional budget reconciliation, while Vice President JD Vance has suggested tariff revenue and possibly limiting payments to lower- and middle-income Americans.
The funding challenge remains substantial. The Tax Foundation estimates an unrestricted $5,000 payment to roughly 250 million adults would cost about $1.25 trillion, while Trump’s newer tariffs are projected to generate roughly $125 billion in net federal revenue in 2027.
Regardless of whether the money comes from tariffs, visa fees or investment gains, federal spending generally still requires congressional authorization. The Government Accountability Office notes that money cannot be paid from the Treasury without an appropriation enacted by Congress.
Sources
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