Trump Promises $5,000 for Every American: Total Cost Hits $1.4 Trillion, Tariffs Alone Would Take 7 Years

Former U.S. President Donald Trump has promised to give every adult American $5,000 (approximately NT$160,000) if the Republican Party maintains control of both chambers of Congress after the November midterm elections, sparking questions about legality, cost, funding sources, and potential inflationary effects. Below is a Q&A compiled by AFP.

Trump's $5,000 Handout FAQ 1: Is it legal?

Federal law prohibits offering money in exchange for votes, and there are restrictions on using federal funds to provide benefits in return for political support. Trump's proposal may appear to circumvent these bans, as it resembles a campaign promise applicable to all U.S. adults regardless of whom they vote for. However, any such disbursement requires congressional authorization; the U.S. Constitution prohibits the president from spending treasury funds without legislative approval. Trump told CBS News Texas that he believes Congress would not need to approve the payments, though he did not provide details. Trump has made similar promises in the past that were never fulfilled, including distributing $2,000 checks funded by tariff revenues and $5,000 checks financed by drastically reducing federal government positions.

Trump's $5,000 Handout FAQ 2: How much would it cost?

According to data from the Congressional Budget Office (CBO), the U.S. adult population (aged 18 and over) is approximately 276.8 million. Paying $5,000 to each person would total $1.384 trillion. Trump stated the recipients would be 'every American.' If limited to U.S. citizens, the cost would be approximately $1.27 trillion. During the COVID-19 pandemic, Congress-approved payments were restricted to taxpayers meeting income eligibility and their dependents; adopting such a narrower distribution method would further reduce costs. Federal oversight data show that the three rounds of pandemic relief checks approved in 2020 and 2021 totaled approximately $814 billion.

Trump's $5,000 Handout FAQ 3: Would it worsen inflation?

Almost certainly yes. This poses a major challenge for Trump, especially amid voter dissatisfaction over rising living costs. Economists sometimes refer to direct cash payments like this as 'helicopter money'—a term describing central banks distributing money unconditionally to lift economies out of deflation, the opposite of the inflationary pressures the U.S. currently faces. The U.S. consumer price index has risen 3.4% year-on-year, well above the Federal Reserve's 2% long-term target. Putting approximately $1.27 trillion into consumers' hands would stimulate demand and could further drive up prices. Research from the Federal Reserve Bank of St. Louis estimates that fiscal stimulus measures during the pandemic, including support for businesses, increased U.S. inflation by about 2.6 percentage points.

Trump's $5,000 Handout FAQ 4: Can tariff revenues fund Trump's new promise?

Not in the short term. U.S. tariff revenue reached a record $195 billion in the 2025 fiscal year, meaning the $1.4 trillion payout would consume about seven years' worth of tariff income from Trump's trade policies. Moreover, in February, the U.S. Supreme Court overturned several of Trump's tariff measures, forcing the Treasury Department to refund importers with interest, resulting in negative net tariff revenue from May to July. The right-leaning think tank Tax Foundation estimates that even including existing tariff revenues, a one-time payment plan exceeding $1 trillion would inflate the deficit to nearly $3 trillion.

Trump's $5,000 Handout FAQ 5: 'Corruption' and 'Recklessness'?

Trump's proposal has drawn fierce criticism from Democrats. Gavin Newsom, governor of California and a potential Democratic presidential candidate in 2028, condemned the promise as coming from 'the most corrupt occupant of the White House in history.' Newsom posted on X: 'Trump wages war, makes people poorer and sicker, and now wants to buy votes with $5,000 of taxpayers' hard-earned money.' Jamie Raskin, a Democratic U.S. Representative from Maryland, called the promise the latest move in an 'extremely reckless and dysfunctional presidency.' Raskin said, 'After increasing the national debt by trillions and pushing it above $40 trillion to unprecedented levels, Trump is now proposing a political bribe—what he calls the 'Trump Bonus'—of $5,000 per person, conditional on us electing Republicans to control Congress.' (Translation: Lu Ying-tzu)