Kevin Hassett, Director of the National Economic Council, announced that President Donald Trump's proposal to distribute $2,000 checks to Americans, funded by tariff revenue, hinges on Congressional approval. Hassett indicated that a formal proposal is expected to be presented to Congress in early 2026. Since July, Trump has suggested that these payments would be based on tariff income, recently stating on social media that a dividend of at least $2,000 per person would be allocated, excluding high-income individuals. Treasury Secretary Scott Bessent noted that the checks are likely to target households earning less than $100,000, although discussions are still in progress.

Hassett emphasized the necessity of Congressional action for the distribution of these funds, which would be processed through the tax code and require new legislation to empower the Treasury Department to issue the checks. He cited positive economic indicators, including nearly 4% growth in recent quarters, a government surplus, and a $600 billion reduction in the deficit compared to the previous year, suggesting that the economic environment may support the feasibility of such checks.

The proposed funding for these checks is to come from tariff revenue, with Hassett explaining that various revenue sources, including taxes and tariffs, influence government spending decisions made by Congress. The president has defended tariffs as a key policy, claiming they have generated new revenue and stimulated investment in U.S. manufacturing. Hassett pointed to the success of tariffs in achieving high growth, reducing the trade deficit, and decreasing imports from China, while also acknowledging the need for potential adjustments based on feedback from trading partners and companies.

Hassett mentioned interest in exempting certain items from tariffs, particularly those not intended for U.S. production, citing climate considerations. U.S. Trade Representative Jamieson Greer is reportedly leading this initiative. Additionally, Hassett expressed confidence that the Supreme Court will uphold the administration's authority to impose tariffs under federal emergency powers, a legal basis utilized to apply duties on nearly all U.S. trading partners.

In a related development, the Trump administration is forecasting the largest tax refund cycle in U.S. history for the spring of 2026. Hassett stated that many Americans could receive substantial refunds, potentially amounting to several thousand dollars. This optimism contrasts with concerns from a significant portion of the population regarding their financial situations, as a recent Fox News Poll indicated that 44% of respondents feel they are falling behind financially.

During a recent address, President Trump suggested that families could save between $11,000 and $20,000 annually due to anticipated tax changes. Hassett supported this claim, highlighting that wages for typical workers have reportedly increased by 3.7%, outpacing core inflation of 1.6%. He noted that blue-collar workers have experienced an approximate $2,000 increase in real wages this year, attributing this growth to wage increases that exceed price rises.

Despite the administration's positive outlook, public perception remains skeptical, with 74% of those surveyed rating the economy as 'not so good' or 'bad.' Hassett acknowledged these concerns but maintained a bullish perspective on economic growth, referencing a favorable November inflation report and suggesting that increased aggregate supply would help lower prices. He compared the current economic conditions to those during Trump's first term, where similar trends were observed.