Monday, September 28, 2026

Trump’s tariff checks: $5,000 cash promise debunked, economist says

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President Trump’s $5,000 pledge to every American if Republicans keep Congress is unlikely to become reality, according to economist Douglas Holz-Eakin. Holz-Eakin, president of the American Action Forum and former CBO director, warned the checks will not appear in mailboxes soon.

Trump’s $5,000 Dividend Proposal

Holz-Eakin told Fox News Digital that Trump lacks the authority to issue the checks and that similar promises have never materialized. He added that the proposal is unrealistic and will not materialize.

Fed Raises Rates

The Federal Reserve increased interest rates for the first time in three years and signaled further hikes may follow. This comes despite Trump’s call for lower rates to ease loan burdens on households.

National Debt Grows

Holz-Eakin noted the U.S. debt has topped $40 trillion and the annual deficit stands at $2 trillion, making the fiscal trajectory unsustainable. The growing debt burden threatens long‑term economic stability.

Headwinds Cited

He said tariffs, volatile oil prices, and the Iran confrontation are the main headwinds pressuring the middle class and driving up grocery costs. These factors together are squeezing household budgets across the nation.

Call for Fiscal Discipline

He urged a return to “old‑school” conservative spending restraint, cutting waste and avoiding new taxes to bring debt under control. Such a shift would restore confidence and improve the economy for families.

Fox News Digital did not receive a comment from the White House before publication.

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