GOP Senator Says Trump’s $5,000 Checks Are ‘Absolutely Inflationary’ - Newsweek

Senator Bill Cassidy, a Louisiana Republican, has become one of the most outspoken critics within his own party of President Donald Trump's proposal to send $5,000 checks to American adults if Republicans maintain control of Congress in the November midterms, calling the idea "absolutely inflationary."

Cassidy made the comments during an appearance on CBS News' Face the Nation on Sunday, a week after House Speaker Mike Johnson, also a Louisiana Republican, declined to guarantee Americans would actually receive the payments despite Trump's public pledge.

Newsweek reached out to the White House for comment on Sunday.

Trump unveiled the proposal during the Republican National Committee's midterm convention in Dallas, saying every adult U.S. citizen would receive a $5,000 "dividend" if Republicans retain congressional control.

"Because of our tremendous strength and success economically, I will issue a dividend to every adult citizen in the United States of America for $5,000," Trump said. "Very much like a successful company will do a cash distribution to its shareholders."

The promise raised questions about how the payments would be funded and whether Congress would approve them. While Democrats have criticized the plan, Cassidy's comments are notable because they come from a Republican senator and echo concerns that some fiscal conservatives have raised about government spending, inflation and the national debt.

On Sunday, Face the Nation moderator Margaret Brennan noted that the United States has roughly $40 trillion in debt and asked Cassidy whether the proposal would be inflationary, even if the administration found a way to distribute the money without direct congressional appropriations.

"It's absolutely inflationary," Cassidy replied, who added that conservatives would likely have opposed the idea had it come from a Democratic administration.

"If Joe Biden had proposed that, conservatives would have been all against it," the senator said.

Cassidy, one of seven Republican senators who voted to convict Trump after the January 6, 2021, U.S. Capitol riot, has had a strained relationship with the president. Trump backed efforts to unseat him in this year's primary, with Cassidy ultimately losing his reelection bid; he will leave the Senate in January

Cassidy argued that borrowing money for such a program could ultimately increase costs for consumers by pushing up borrowing rates.

"If the government borrows money, it's going to drive up how much somebody pays for their mortgage, for their car note, perhaps for their credit card," he said, adding that higher borrowing costs would make major purchases less affordable for Americans already struggling with rising expenses.

"For that family struggling to buy their first home or to refinance a home or to buy a car, it becomes that much more out of reach to you," Cassidy said.

Rather than issuing direct payments, Cassidy argued that reducing the national debt would provide greater long-term economic benefits.

"We need to actually pay attention to our national debt," he said. "If we can control our debt, that will be a stimulus to somebody. That will help them be able to afford life better."

Cassidy's comments go further than those made by Johnson last week.

During an appearance on NBC News' Meet the Press, the House speaker repeatedly declined to guarantee Americans would receive the payments, even after moderator Kristen Welker noted that Trump had already promised them.

"I commit that Congress will work through it and find consensus on that like they have to do everything else," Johnson said.

When pressed again on whether Americans could count on receiving the money, Johnson said he would continue working with the president but stopped short of endorsing Trump's guarantee.

Johnson's hesitation was significant because Congress would ultimately have to approve any nationwide payment program.

The speaker's comments prompted criticism from former Transportation Secretary Pete Buttigieg, who worked in the Biden administration, argued on the same program that Johnson's reluctance to fully embrace the proposal suggested it was unlikely to become reality.

However, Senator Bernie Moreno, an Ohio Republican, posted on X earlier this month that he would get a bill ready so that if Republicans win in the midterms, they can pass the Trump Dividend "immediately."

One of the central questions surrounding Trump's proposal remains how the checks would be financed.

The president has linked the idea to the country's economic performance, while administration officials have offered varying explanations.

Vice President JD Vance told Fox News that the money for the checks would at least partially come from the tariffs, which have "generated a lot of revenue." He said it's not "controversial" and is a way of showing the American people that if they keep working with Trump and give his party the ability to stay in power, that will benefit them.

Commerce Secretary Howard Lutnick said last week that the proposed payments would not come from taxpayers or add to the deficit, pointing in part to the administration's yet-to-launch Trump Platinum Card program. Lutnick told NBC News that more than 100,000 people were already on a waiting list for the program.

"We have a waitlist of more than 100,000 people who want to come," Lutnick said. "That's $500 billion."

National Economic Council Director Kevin Hassett has said the dividend could be advanced through a congressional budget reconciliation package.

In a previous statement to Newsweek responding to questions about how the payments would be funded, White House spokesperson Davis Ingle defended the proposal.

"The doomers and naysayers have consistently doubted President Trump: when he pledged to create the historic Trump Accounts, lowered prescription prices with Most Favored Nations, secured the border with no crossings, cleaned up our streets, ended taxes on tips, grew real wages, renegotiated broken trade deals, and reshored key manufacturing back to the United States," Ingle said.

He added: "President Trump has consistently proven his doubters wrong, drawing a clear contrast with the Democrats' record of historic inflation, unfettered illegal immigration, skyrocketing crime, and weakness on the world stage. With the continued support of the American people, President Trump will keep delivering real results."

Trump has continued to defend the plan, saying the U.S. is taking in substantial revenue and could afford the payments if Republicans maintain their congressional majorities.

Cassidy is not the first conservative to raise concerns.

Representative Thomas Massie of Kentucky has warned about possible inflationary effects, while former Representative Marjorie Taylor Greene of Georgia questioned whether Republicans should support what she characterized as a massive government giveaway. Senator Susan Collins of Maine has also expressed concern about tying spending proposals to election outcomes, and Representative Ralph Norman of South Carolina has said he wants a clearer explanation of how the program would be financed.

Democrats have been even more critical. Senate Minority Leader Chuck Schumer of New York accused Trump of trying to "bribe the American people for their votes," while California Governor Gavin Newsom argued the proposal amounted to an attempt to "buy your vote with $5,000."

Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.

Contact Newsweek editors for this story: Steve Mollman and Anthony Murray.