President Trump has announced plans to issue dividend checks of $2,000 to American households earning less than $100,000 annually, drawing from revenue generated by tariffs. However, current tariff-related revenue stands at $195 billion, insufficient to cover the estimated $300 billion cost of the initiative, according to a report.

The Treasury Department forecasts $3 trillion in tariff revenue over the next decade, which could be used to fund the dividend payments. This would add to the federal debt, currently exceeding $38 trillion, as noted by the department.

Treasury Secretary Scott Bessent expressed skepticism about the feasibility of the plan, suggesting it might refer to tax savings from Trump’s One Big Beautiful Bill legislation. White House press secretary Karoline Leavitt emphasized the administration’s commitment to executing the proposal, stating that economic advisers are exploring options.

The policy would reach approximately 150 million Americans, with Erica York, a policy expert at the Tax Foundation, highlighting the potential scale of the initiative. The plan remains under development, with no details provided on how eligibility criteria or implementation would function.