• Trump announces a $2,000 dividend payment for most Americans funded by tariff revenues.
• The proposal faces skepticism regarding legal authority and funding potential.
• Eligibility likely limited to middle and lower-income individuals.
• The Supreme Court is currently reviewing the legality of Trump's tariff imposition.
• Concerns arise over the financial feasibility of meeting dividend payouts.

President Trump announced on Sunday a proposal for a $2,000 dividend for most Americans, asserting that it would be funded by revenue collected from tariffs on foreign goods. In a post on his Truth Social platform, he labeled opponents of his tariff strategy “FOOLS!” and stated, “We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion” according to latimes and indiatimes.

Although the proposal appears promising, its implementation would require congressional approval, making its execution uncertain. Treasury Secretary Scott Bessent mentioned the dividend could be structured in various forms, potentially including tax changes and exemptions. “The $2,000 dividend could come in lots of forms in lots of ways,” he said during media appearances, suggesting it might not only take the form of direct payments but also tax reductions, according to cbsnews and indiatimes.

The potential dividend has raised questions regarding eligibility, with early indications suggesting it would be limited to middle and lower-income individuals. Trump’s statements emphasize the exclusion of high-income earners from receiving the dividend, aligning with previous comments he made about providing relief primarily for the middle class, as cited in indiatimes and latimes.

Despite the cheerleading for such dividends, experts express significant doubts about both the availability of funds and legal authority behind the tariffs. For instance, Erica York from the Tax Foundation warns that providing $2,000 to around 150 million adults would require approximately $300 billion in tariff revenues, whereas recent tariffs have only produced around $120 billion thus far. Additionally, the ongoing Supreme Court case questioning the legality of the tariffs could further complicate matters, according to cbsnews and latimes.