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Is Trump's $5,000 'dividend' legal and how would it work?
The plan would cost about $1.2 trillion and faces questions over funding and legality, while Democrats call it an empty promise.
- On Wednesday, President Donald Trump proposed a $5,000 'Trump dividend' payment at the Republican National Midterm Convention in Dallas, Texas, contingent on Republicans retaining control of the House and the Senate in November.
- The proposed $1.2 trillion payment to about 240 million Americans far exceeds the CBO's $167 billion in current fiscal revenue. Vice President JD Vance suggested funding via tariff revenue, though Democrats labeled it an 'empty promise.'
- Republicans control both chambers by narrow margins, but Democrats would likely block legislation in the Senate, where a supermajority of 60 votes is required. Republicans could invoke a complex budget process to bypass opposition.
- Legal experts question whether the pledge stands up, yet the Supreme Court ruled in a 1982 case involving a Kentucky official that campaign promises are legal. Challenging the dividend in court would prove difficult for voters.
- Yields on 10-year Treasury bonds ticked up to 4.91% on Thursday as investors assessed the proposal. Economists warn the massive influx of debt, combined with revived inflation fears, could drive borrowing costs higher and worsen the government's budget gap.
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8 Articles
8 Articles
Promises of cash gifts are common. But they are rarely fulfilled. US President Donald Trump's latest promise of $5,000 in dividends to the people is criticized and rejected.
·Stockholm, Sweden
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Explainer: Is Trump's $5,000 'dividend' legal and how would it work?
President Donald Trump on Wednesday proposed a $5,000 Trump dividend payment to U.S. adults if his Republicans retain control of the House of Representatives and the Senate in the November 3 midterm elections.
·London, United Kingdom
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Total News Sources8
Leaning Left0Leaning Right2Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
C 67%
R 33%
Factuality
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