President Donald Trump’s proposal to provide $5,000 to every U.S. adult could worsen inflation and significantly increase the federal deficit, economists told CBS News.
Vice President JD Vance said the payments would be funded through tariff revenue and targeted toward middle-class Americans. However, Tax Foundation economist Erica York estimated that current tariff collections of roughly $125 billion annually would cover only a fraction of the estimated $1.25 trillion cost.
Higher federal borrowing could further unsettle Treasury markets and raise interest rates on mortgages, auto loans and other consumer debt, according to experts cited by CBS News.
The White House defended Trump’s record, while some economists questioned whether Congress would support the proposal. Trump has also said lawmakers may not need to approve the payments.
Related Tweet:
US President Donald Trump says his proposed $5,000 dividend checks likely won’t need congressional approval, citing trillions of dollars collected from tariffs and other sources and adding that the money must be spent in the United States. pic.twitter.com/Yzd63YC5Nc
— Al Arabiya English (@AlArabiya_Eng) September 11, 2026
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