Trump pledges a $5,000 ‘dividend’ to all US adults if the GOP wins the midterms

President Donald Trump has announced a plan to provide a $5,000 "dividend" to every adult citizen in the United States if Republicans maintain control of Congress during the upcoming midterms. The proposed payout, which would far exceed the amount distributed during the Covid pandemic, is expected to significantly increase the federal deficit.

During his speech at the Republican's midterm convention in Dallas, Trump pledged the generous dividend, stating it would only go to U.S. citizens and have to be spent within the country. The president compared the plan to his earlier proposal of a $1,776 dividend for military members, although that amount was actually a housing stipend approved by Congress.

The potential cost of the dividend is estimated to be around $1.2 trillion, based on the U.S. Census Bureau's estimate of 240 million adult citizens in the country. Critics, including a GOP operative and Republican Rep. Chip Roy, have expressed skepticism about the financing of such a plan, estimating it could cost over $1 trillion.

If implemented, the dividend could worsen inflation by boosting consumer spending and contribute to higher borrowing costs for the U.S. government, already on the rise due to concerns about the growing federal debt. Trump's plan coincides with a decline in his approval ratings as his war in Iran has lost support.