Sen. Johnson Breaks With Trump Over Proposal for $2,000 Tariff-Funded Checks

Sen. Ron Johnson signaled on Monday that he is not on board with President Trump’s proposal to send $2,000 “tariff dividend” checks to Americans ahead of the 2026 midterm elections, arguing that any new tariff revenue should instead be used to confront the nation’s staggering federal deficit.

Johnson, a Wisconsin Republican known for his fiscal hawkishness, told Fox Business Network’s “Mornings With Maria” that while he understands the appeal of returning money to the public, the federal government’s financial situation is too fragile for such a move.

“We’re $38 trillion in debt,” Johnson said, laying out the scale of the problem. “Over the past five years, we’ve averaged nearly two trillion dollars in deficits. And the projection for the next decade is another $26 trillion.”
He added that lawmakers cannot continue ignoring the warning signs: “We are operating on borrowed time.”

In Johnson’s view, any new revenue Washington collects through tariffs should go straight toward deficit reduction, not toward a new round of payments to households. “If these tariffs are bringing in revenue, that ought to be applied to reducing the deficit. We have to address this problem now,” he said.

A Clash Over Tariff Revenue

President Trump has increasingly floated the idea of sending out checks funded entirely by tariff money — a concept he first teased during the 2024 campaign and has continued to promote since returning to office. Earlier this month, he said he favored $2,000 payments for lower- and middle-income Americans, with Treasury Secretary Scott Bessent indicating that the income cutoff would likely be around $100,000 for families.

Such payments would require congressional approval, and Johnson’s comments underscore the challenge the administration faces inside a Republican-controlled Capitol. Johnson is not alone: several GOP lawmakers have expressed skepticism about launching a new round of payments at a time when deficits remain historically high.

“We can’t afford it,” Johnson said bluntly. “I wish we were in a position to return money to the American people, but we’re not. We’re staring at another $2 trillion deficit this year alone.”

He contrasted the current situation with earlier administrations, noting that pre-pandemic deficits under Trump averaged around $800 billion, while President Barack Obama’s final years saw yearly deficits of roughly $550 billion. “Now we’re at two trillion? It’s completely unacceptable,” Johnson said.

Tariffs at the Center of Trump’s Economic Strategy

The debate comes as the administration continues to rely heavily on tariffs as a revenue source and as leverage in trade negotiations. Trump has used the International Emergency Economic Powers Act (IEEPA) to impose a series of broad tariffs — including so-called “reciprocal” tariffs — on dozens of countries. These measures have become a cornerstone of his trade agenda.

According to federal data, IEEPA tariffs generated roughly $90 billion in revenue through late September. More recent figures show that between September 30, 2024 and August 31 of this year, the U.S. collected almost $196 billion in tariff income — a number the administration points to as evidence that tariffs are delivering results.

However, turning those revenues into direct payments to households would come at a steep cost. Erica York, a tax policy expert at the Tax Foundation, estimated that Trump’s proposed dividend checks could total around $300 billion if limited to taxpayers earning under $100,000.

Vance Calls for Patience on Economic Turnaround

As debate over the dividend plan continues, Vice President JD Vance has tried to reassure voters that the administration is still committed to lowering everyday costs — a key issue heading into the midterms. Speaking at a Breitbart News event last week, Vance acknowledged that many Americans remain frustrated by affordability challenges that intensified during the Biden years.

“We get it and we hear you, and we know there’s a lot of work to do,” Vance said, noting that inflation-strained households have not yet felt the full effect of the administration’s policies. He predicted an eventual “economic boom,” but stressed that recovery takes time.

Vance also pointed to the price of basic goods — including groceries — as a major sticking point for families. At one point, he even undercut one of Trump’s most frequently touted indicators of economic improvement: a recent drop in egg prices. While egg prices have fallen from their highs, Vance said many families still find them too expensive.

“For a family that’s just trying to get by, seeing eggs rise from two dollars a dozen to eight dollars, and then drop only to six-fifty — that still feels like a huge burden,” he said.

A Message Still in Flux

The debate over tariff payments and economic messaging comes at a politically sensitive time for the White House. Republicans are still absorbing losses in traditionally Democratic New Jersey and Virginia, where affordability was a leading issue for voters.

As Trump leans into tariffs as both a policy tool and a funding source, he faces resistance from within his own party — particularly from lawmakers like Johnson who argue that the country’s fiscal health must come first.

For now, the “tariff dividend” proposal remains little more than a talking point, and with key Republicans signaling opposition, it may struggle to advance beyond that.