Sen. Ron Johnson on Monday pushed back against President Trump’s proposal to issue $2,000 “tariff dividend” checks to Americans ahead of the 2026 midterm elections, arguing that the money should instead go toward reducing the federal deficit. Johnson told Fox Business Network that while he supports the concept in principle, restoring fiscal stability must come first. Pointing to the nation’s $38 trillion debt and the nearly $2 trillion average annual deficits of the past five years, he insisted tariff revenue should be used to shrink the deficit rather than fund new payments. Trump has repeatedly floated the idea of tariff-funded checks, with a recent proposal targeting Americans under about $100,000 in household income. But Johnson and other Republicans have signaled the plan is unlikely to advance in a GOP-controlled Congress, citing the projected $2 trillion deficit for the current year.
The proposal emerged as Democrats won key off-year elections in New Jersey and Virginia by emphasizing affordability, and as the Supreme Court heard arguments over Trump’s use of the International Emergency Economic Powers Act to impose broad “reciprocal” and “trafficking” tariffs. Those tariffs have become a central piece of Trump’s trade policy, generating roughly $90 billion in revenue through late September and nearly $196 billion between Sept. 30, 2024, and Aug. 31 of this year. According to the Tax Foundation’s Erica York, Trump’s proposed dividend checks would cost around $300 billion if limited to individuals earning under $100,000.
Meanwhile, Vice President JD Vance acknowledged growing skepticism surrounding the administration’s economic record, urging Americans to remain patient ahead of what he predicted would be a coming “economic boom.” He said inflation under former President Joe Biden left deep damage that would take time to reverse, even as signs of improvement emerge. Still, Vance admitted voters remain frustrated by high prices, including groceries, noting that even with egg prices falling from their peak, they remain too expensive for many households.