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Donald Trump's 'only condition' for $5,000 payments to every American

The US president's US$1.35 trillion pledge raises a number of questions, and he has not specified where the money would come from.

Man in a dark suit and blue tie speaks at a podium bearing the presidential seal, with US flags visible among the crowd in the background.
US President Donald Trump gave a 105-minute address at the Republican convention dubbed 'Trumpapalooza' in Dallas on Thursday. Source: AAP / Tony Gutierrez / AP

5 min read

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Source: Reuters



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In brief

  • US President Donald Trump has promised to pay every American adult US$5,000 should Republicans win the midterms.
  • The promise came during a lengthy speech to supporters at the Republican midterm convention in Dallas, Texas.

President Donald Trump said on Thursday he would pay every US adult a US$5,000 ($6,926) "Trump dividend" if Republicans retain control of Congress in November's midterm election, an extraordinary attempt to persuade voters to back his party.

"If the Republicans win, you win with us, and you get $5,000. It will be called the Trump dividend," he told the Republican midterm convention audience in Dallas, Texas.

Trump likened the payments to a corporation's distributions to shareholders, citing "our tremendous strength and success economically".

He did not say where the money would come from — with the theoretical bill likely topping US$1.35 trillion ($1.85 trillion) — citing only that "our country is making so much money".

It was also unclear how the payments would work or whether they would be legal.

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The promise would require congressional approval, and would further exacerbate the country’s nearly US$1.8 trillion annual budget deficit and concerns about inflation.

The payment would also come with a catch — Trump was clear he only wanted US citizens spending their prospective windfalls at home.

"But the only condition on the payment of this dividend that we’re going to be making … is that it must be spent in the United States of America," Trump told the convention crowd.

"We don’t want you going to Canada to spend the money. We don't want you going to China, to Germany. We got to spend the money in the United States of America."

Trump did not say how he and his administration would ensure the funds were only spent in the US.

During a primetime address that lasted an hour and 45 minutes, Trump boasted of completing "the greatest two years in the history of the presidency", putting himself squarely at the centre of the election despite his deepening unpopularity.

But it was not clear whether his campaign-style speech would appeal to the critical swing voters who opinion polls show have drifted away from Trump's party, amid growing dissatisfaction with the cost of living and the war on Iran.

"We hand America's future to the radical left Democrats, and our nation will spend the next decade just getting back on its feet," he said. "Vote Republicans, and we will leave the world in our dust for generations to come."

Within an hour, vice president JD Vance appeared to try to walk back Trump’s proposal — at least in part — by suggesting the dividend payments would not go to the wealthy. Vance suggested it could be paid for by US tariff revenues, though the suggested payment dwarfs what the US has taken in through the protectionist measures.

The US Congress would need to approve or otherwise acquiesce to the payment. The sum would far exceed US tariff revenues even before the Supreme Court tossed much of the president’s tariff program last year.

The national debt last month topped US$40 trillion ($55 million) for the first time.

Trump has frequently lamented that, during the modern era, the sitting president's party almost always loses seats in Congress during the midterms, and he has looked for unorthodox ways to defy the trend, including this week's convention.

"We’re going to change that,” Trump said. “There’s no reason for it."

New Mexico-based lawyer John Day said Trump's proposal would have to be approved by Congress, but it would be legal because the payment would go to everyone regardless of how they voted, or whether they voted at all.

"This is a campaign promise," Day said. "It’s not a payment to individuals to try to get them to vote in a particular way."

In search of a 'Trumpapalooza' poll bump

The two-day Dallas gathering, where Trump will also deliver the closing remarks on Friday after Vance's keynote address, underscores the extent to which Republicans' fortunes are tethered to Trump and serves as a showcase for their strategy ahead of the 3 November midterm elections.

The event was so centred on Trump that Republican National Committee chairman Joe Gruters informally dubbed it "Trumpapalooza," a nod to the popular Lollapalooza music festival.

The focus on Trump amounts to a risky bet that he can mobilise the voters who carried him to the presidency two years ago, despite public polls showing his approval ratings have hit an all-time low. Trump vowed to pay multiple visits to battleground states and districts in the eight weeks until election day.

"I'm asking you to pretend that I'm on the ballot," Trump said, a line that may have pleased Democratic campaign strategists just as much as MAGA voters.

Though Trump insisted the 21,000-seat arena was "packed", the upper sections remained largely empty during his speech capping Thursday's program.

— With reporting from Associated Press and Agence France-Presse.


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