Overview
- Johnson urged applying tariff revenue to deficit reduction, arguing the country is not in a position to issue cash rebates.
- Treasury has collected just over $220 billion in tariff receipts, while outside estimates put $2,000 payments at roughly $326 billion or about $279 billion with an income cap near $100,000.
- Treasury Secretary Scott Bessent said the proposal targets working families, floated income limits, and suggested delivery could come through tax-code changes rather than direct checks.
- Any payout would require legislation, and think-tank analyses warn the plan faces fiscal and political hurdles, including a potential Supreme Court outcome affecting tariff authority.
- The Committee for a Responsible Federal Budget estimated a COVID-style design covering adults and children could cost about $600 billion per round, reinforcing concerns about a funding gap and long-term debt strain.