Trump's Proposal for Stimulus Checks: Using Tariff Funds to Support American Families

Former President Donald Trump has recently talked about the idea of sending stimulus checks to people in the United States. These payments could range from $1,000 to $2,000 each.

The unique part of this plan is that the money wouldn’t come from the government borrowing more money. Instead, Trump suggests using billions of dollars the U.S. has collected from taxes on goods imported from other countries, known as tariffs.

Trump says his administration is making efforts to reduce the national debt. Still, he is thinking about using this tariff money to send direct payments to Americans, calling it almost like a “dividend” or bonus.

This idea has come up before—for example, earlier in the year there was talk of sending $5,000 checks, but that plan didn’t happen.
 

Is Trump’s Proposal Possible?

For this plan to work, it relies on the large amount of tariff money the government has received. In 2025 alone, the U.S. Treasury reports that over $214.9 billion was collected from import taxes.

However, there’s a complication: The Supreme Court is reviewing whether the current tariffs were set up legally. If the Court decides against the tariffs, it could stop this source of money from being used for stimulus checks.
 

Trump’s Comments on the Proposal

In a recent interview, Trump said the idea is being “studied.” He explained that while paying down the national debt is a goal, there is also a possibility of giving people direct payments from tariff revenue.

“We’re thinking maybe $1,000 to $2,000; that would be great,” Trump said.
 

Where Would the Money Come From?

Trump’s proposal uses funds collected from import taxes charged to a number of countries. He thinks this plan is possible and could help millions of Americans by providing extra money.
 

Other Proposals Earlier in the Year

This is not the first time such an idea has been suggested. Earlier in 2025, Elon Musk—then leading the Department of Government Efficiency—talked about sending $5,000 checks.

That plan was not carried out, and Musk left his government position afterwards.
 

How Stimulus Checks Can Help Individuals

If President Trump’s proposed stimulus checks become available, many Americans could benefit in several ways. These direct payments could be used to cover everyday expenses, build up savings, or pay down debt. One important use for the extra money is to help pay off auto loans.

For people who have car loans, receiving $1,000 to $2,000 could ease the burden of monthly payments or even pay down a significant part of their remaining balance.

This extra financial help would make it easier for families and individuals to manage their budgets and avoid falling behind on their car payments. Reducing or clearing auto loan debt means less stress and more financial flexibility for many households.

Overall, receiving a stimulus check could help people feel more secure about their finances, handle urgent needs, or make progress toward paying off loans and other debts.

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