Beyond the legal questions surrounding the proposal, critics have raised concerns about its financial viability, particularly given the growing national debt—partly driven by the conflict in Iran.
With nearly 270 million American adults, a $5,000 payment to each would cost the government an estimated $1.3 trillion.
Trump provided no specifics on how such payments would be financed during his address.
While Congress holds the authority to appropriate federal spending, the president made no indication that he intended to seek legislative approval for the proposed disbursements. It appears highly improbable that such an enormous sum could be authorized through a presidential executive order.
Erica York, a senior economist at the Washington, D.C.-based Tax Foundation, told the BBC that she would be “extremely surprised” if Congress approved any such proposal.
“This would be one of the worst ways to deploy $1.3 trillion,” she stated.
“We’re on a very unsustainable trajectory, with deficits projected to continue climbing,” York added.
In a subsequent interview with Fox News following Trump’s speech, Vance suggested that the payments could potentially be funded through revenue generated from tariffs.
However, tariff receipts to date fall well short of the amount required to cover the cost of Trump’s $5,000 cheque proposal.
The president also told the Republican convention that the funds would need to be spent within the United States, though it remains unclear how that requirement would be enforced or monitored.
According to the Bipartisan Policy Center, the US has collected approximately $475 billion (£203 billion) in tariff and excise tax revenue since the start of 2025.
However, more than $100 billion (£74 billion) has been refunded after the Supreme Court struck down numerous tariffs earlier this year.
When asked how the payouts could realistically be implemented, the White House said in a statement to the BBC: “The doomers and naysayers have consistently doubted President Trump.”
“With the continued support of the American people, President Trump will keep delivering real results,” added spokesman Davis Ingle.
Also Read
- Havelsan and Egyptian AOI Sign Sales Agreement for Jointly Developed Hamza-1 Drone
- FamilyMart Launches First Store in Hanoi as It Targets 300 Vietnamese Locations
- Generic Drug Makers Seen as Key to Bridging Africa’s Medicine Access Gap, New Report Finds
- Fire aboard cargo ship undergoing repairs at busy Chinese port leaves 25 people dead, five more injured