Senator Bernie Moreno, R-Ohio, plans to introduce legislation that would provide Americans with one-time $5,000 dividend checks, funded entirely by structural tariffs rather than taxpayer money. The Ohio senator told Fox News Digital that he intends to codify the proposal as soon as the upcoming midterm elections conclude, a timing strategy he linked to the potential shift in congressional power. Moreno described the tariffs as a "market access fee" that would require foreign companies selling in the United States to either manufacture domestically or pay a fee to enter the market. The revenue generated from these fees would directly fund the dividend payments.
President Donald Trump first floated the concept during the Republican midterm convention in Dallas on Wednesday night. Moreno emphasized that the funds would be restricted to domestic use, stating that the money "would be used only here in the United States" and not spent abroad. He argued that the plan would allow working Americans to share in national prosperity and provide a significant economic boost.
The potential cost of the program is estimated at $1.2 trillion. Moreno defended the expenditure as necessary relief for working families, asserting that despite recent Republican efforts to lower costs, households remain financially strained. He characterized the current situation as one where families are "underwater" and need acknowledgment of their struggles. The proposal coincides with a federal deficit that reached $40 trillion last month, creating a tension with the Republican party's traditional stance on fiscal responsibility.
House Freedom Caucus Chairman Andy Harris, R-Md., expressed support for the concept of a tax rebate for American taxpayers, though he noted that the specific size of such a rebate would require further discussion. Harris indicated that the plan would need to pass through Congress and suggested using the budget reconciliation process to bypass potential Democratic opposition in the Senate. Senate Majority Leader John Thune, R-S.D., agreed with this procedural approach, stating that the idea "smells very much like a reconciliation issue." Thune said Senate Republicans were willing to work with Trump’s team but noted that the proposal was new to them prior to Wednesday night's announcement.
Democratic leaders have sharply criticized the plan. Representative Robert Garcia, D-Calif., dismissed the proposal as unlikely to occur, citing previous unfulfilled promises by Trump regarding tariffs and other initiatives. Senate Minority Leader Chuck Schumer, D-N.Y., condemned the move on social media, calling it an attempt to bribe voters and an insult to American democracy. Schumer described the presidency as failed and broken, suggesting the proposal was a sign of political desperation.
Moreno responded to the criticism by accusing Democratic politicians of hypocrisy. He argued that while Democrats support spending tens of billions of dollars on foreign countries and wars, they oppose measures that direct money back to American workers. Moreno stated that his plan is a rejection of what he sees as a pattern of prioritizing foreign interests over domestic economic relief.