WATCH: White House exploring options for $2,000 tariff rebate checks

Spread the love

The White House is exploring all of its options for sending Americans $2,000 tariff rebate checks, even as the U.S. Supreme Court considers a legal challenge to the president’s use of tariffs.

“The White House is committed to making that happen,” press secretary Karoline Leavitt said Wednesday. “We are currently exploring all legal options to get that done.”

However, Leavitt said she didn’t have a timeline for mailing the checks, something that would likely require congressional approval.

“The president made it clear that he wants to make it happen, so his team of economic advisers is looking into it,” Leavitt said. “When we have an update, we’ll provide one.”

Earlier on Wednesday, Treasury Secretary Scott Bessent told “Fox & Friends” the checks could be subject to an income cap.

“Well, there are a lot of options here that the president’s talking about a $2,000 rebate and those – that would be for families making less than, say, $100,000,” Bessent said.

During the same interview, Bessent said that no decision has been made regarding income caps.

This comes after Bessent told ABC’s “This Week” that the tariff rebate “could come in lots of forms.”

“You know, it could be just the tax decreases that we are seeing on the president’s agenda,” he said. “You know, no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans. So, you know, those are substantial deductions.”

Trump brought up the tariff rebate idea over the weekend and again on Monday.

“All money left over from the $2,000 payments made to low and middle income USA Citizens, from the massive Tariff Income pouring into our Country from foreign countries, which will be substantial, will be used to SUBSTANTIALLY PAY DOWN NATIONAL DEBT,” Trump wrote in a social media post.

Trump provided no details, but at least one group has already worked up an estimate.

The Committee for a Responsible Federal Budget said the math doesn’t work for Trump’s proposal, according to its analysis. The group said that if the payments were structured like the COVID-19 stimulus payments, the $2,000 dividend would cost about $600 billion, which is about twice as much as tariffs are expected to generate this year.

“Current tariffs have raised about $100 billion so far, and will raise about $300 billion per year in the steady state,” CRFB noted. “If paid annually, dividends would be twice as expensive as tariffs.”

CRFB also said the nation’s $38 trillion in debt must be addressed.

“Under no circumstances is the government doing enough to pay down debt, despite the claims to the contrary,” it noted.

Erica York, vice president of Federal Tax Policy at the Tax Foundation, said the proposed rebate checks would add to the nation’s debt.

“The U.S. has not actually taken care of its deficit problem, and sending out $2,000 checks to millions of Americans would make the deficit problem worse,” she wrote on X.

She also noted that Trump’s estimates of how much money tariffs will generate have varied wildly.

“Someone asked me today where the President is getting his various ‘tariff income’ numbers: $2 trillion, $3 trillion, $8 trillion, $17 trillion, and $19 trillion have all been used recently,” she wrote on X. “I honestly have no earthly idea.”

Trump’s rebate idea comes as he seeks to convince voters that he has made things more affordable for working Americans.

Trump’s Liberation Day tariffs have been challenged in federal courts as unconstitutional by some business groups and Blue states, who argue that only Congress has the authority to enact tariffs. Last Wednesday, Supreme Court justices questioned attorneys on both sides of a case challenging Trump’s tariff authority.

Twelve states, five small businesses and two Illinois-based toymakers have challenged Trump’s authority to impose tariffs under a 1977 law without Congressional approval. That law, the International Emergency Economic Powers Act, doesn’t mention the word “tariff” and has never been used to impose tariffs. Trump’s legal team argues that the law is a clear delegation of emergency power, granting the president broad authority to act in times of crisis.

The Supreme Court is expected to decide the case before the end of June, if not sooner.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families and pay down the national debt. Economists, businesses and some public companies have warned that tariffs will raise prices on a wide range of consumer products.

A Congressional Budget Office report from August estimated tariffs could bring in $4 trillion over the next decade. That CBO report came with caveats and noted that tariffs will raise consumer prices and reduce the purchasing power of U.S. families.

Earlier in his second administration, Trump and former adviser Elon Musk floated the idea of returning money to taxpayers through the Department of Government Efficiency. Musk’s DOGE initially expected to find $2 trillion in savings by cutting waste fraud and abuse. However, Musk has since left the White House and DOGE was on track to save about $150 billion as of an April cabinet meeting. Those checks never materialized.

Events

No events

Leave a Comment





Latest News Stories

Unions, faith leaders back bipartisan immigration reform bill

Unions, faith leaders back bipartisan immigration reform bill

By Andrew RiceThe Center Square More than 50 nonprofit advocacy organizations and 24 members of Congress from across the aisle have thrown support behind a piece of legislation calling for...
Expert: Illinois’ outdated tax law leaves homeowners, taxpayers on the hook

Expert: Illinois’ outdated tax law leaves homeowners, taxpayers on the hook

By Catrina Barker | The Center Square contributorThe Center Square (The Center Square) – Illinois remains the only state that hasn’t reformed its property tax sale system after the U.S....
Report: Biden gave away billions of tax dollars for ‘climate justice’ without public consent

Report: Biden gave away billions of tax dollars for ‘climate justice’ without public consent

By Tate MillerThe Center Square Billions of U.S. tax dollars have been used to fund climate initiatives in foreign countries without the American people’s consent, all while government officials travel...
Procedural technicalities, appeals court stymie CDL rule change

Procedural technicalities, appeals court stymie CDL rule change

By Alan WootenThe Center Square As a North Carolina congressman’s bill awaits committee action, a federal appeals court in the District of Columbia on Monday temporarily halted a rule change...
With a word, RFK Jr. triggered $40B takeover of Tylenol

With a word, RFK Jr. triggered $40B takeover of Tylenol

By Daniel Fisher | Legal NewslineThe Center Square Last year, Kenvue seemed to be in the clear over claims its popular Tylenol pain medicine caused autism. A federal judge in...
Illinois quick hits: Midway Blitz nabs nine drunk drivers; Madigan prosecutor to depart

Illinois quick hits: Midway Blitz nabs nine drunk drivers; Madigan prosecutor to depart

By Jim Talamonti | The Center SquareThe Center Square Midway Blitz nabs nine drunk drivers The Department of Homeland Security has released the names of nine foreign nationals arrested during...
Here’s how to get the $20 credit offered by YouTube TV in Disney dispute

Here’s how to get the $20 credit offered by YouTube TV in Disney dispute

By Alan WootenThe Center Square One November stalemate has movement, another does not, and neither is appetizing to American consumers. The $20 credit, however, is only with one and it...
Democrats want call program for immigrant detainees

Democrats want call program for immigrant detainees

By Andrew RiceThe Center Square Immigrants detained in facilities across the U.S. would be able to contact their lawyers and families under legislation filed by a group of congressional Democrats....
Flight troubles not likely to end when shutdown does

Flight troubles not likely to end when shutdown does

By Thérèse BoudreauxThe Center Square With Congress on track to end the ongoing government shutdown, the mass flight delays and cancellations Americans have experienced could soon abate, Transportation Secretary Sean...
Trump admin signals support for Paramount bid as Warner Bros. considers sale

Trump admin signals support for Paramount bid as Warner Bros. considers sale

By Tom JoyceThe Center Square Warner Bros. Discovery has put itself up for sale, and the Trump administration is showing signs of support for a potential merger with Paramount Skydance...

WATCH: Trump says Veterans Day is ‘Victory Day’

By Andrew RiceThe Center Square President Donald Trump on Tuesday declared Veterans Day as "Victory Day" to commemorate the ending of World Wars I and II. "Today is not only...
Lawmakers divided after federal complaint targets student mental health screening law

Lawmakers divided after federal complaint targets student mental health screening law

By Catrina Barker | The Center Square contributorThe Center Square (The Center Square) – Illinois lawmakers are responding after America First Legal (AFL) filed a federal complaint urging the U.S....
Cruz, Cornyn file bill to make federal benefit fraud a deportable offense

Cruz, Cornyn file bill to make federal benefit fraud a deportable offense

By Bethany BlankleyThe Center Square U.S. Sens. Ted Cruz and John Cornyn, both Texas Republicans, have filed a bill to make defrauding the federal government a deportable offense. The Deporting...
DHS, USCIS report record job applications under Trump administration

DHS, USCIS report record job applications under Trump administration

By Bethany BlankleyThe Center Square A record number of people are applying for jobs wanting to work for U.S. Immigration and Customs Enforcement and U.S. Citizenship and Immigration Services to...
Virginia Beach, Chesapeake rank among best cities for veterans

Virginia Beach, Chesapeake rank among best cities for veterans

By Shirleen GuerraThe Center Square If you’re a veteran living in Virginia Beach or Chesapeake, you’re already in good company. Both cities rank among the best in the country for...