President Trump is preparing a bold initiative to send $2,000 rebate checks to millions of Americans, utilizing revenue generated from tariffs. National Economic Council Director Kevin Hassett confirmed that the White House expects to submit a formal proposal to Congress in the new year. Although the administration aims to fund the initiative with tariff proceeds, Hassett clarified that lawmakers must ultimately pass legislation to authorize the appropriation.

Treasury Secretary Scott Bessent has suggested the payments would likely target households earning less than $100,000. Hassett argued that the country’s current financial position supports the expenditure, citing nearly 4 percent economic growth and a $600 billion reduction in the deficit compared to last year. He stated that while he previously doubted the fiscal space for such checks, recent monthly surpluses have changed his perspective.

Not everyone supports the idea. Republican Senator Ron Johnson has warned that the United States cannot afford the proposal, while Senator Josh Hawley has countered with his own legislation offering smaller $600 rebates. The push for payments comes as the Treasury Department reports collecting $195 billion in tariff duties through the first three quarters of the year.

However, these policies have raised the average effective tariff rate for consumers to 16.8 percent, the highest level since 1934. Consequently, U.S. Trade Representative Jamieson Greer is leading a review to consider exempting certain goods not manufactured domestically. Meanwhile, the administration remains confident the Supreme Court will uphold the President’s legal authority to impose these levies.