Sen. Ron Johnson of Wisconsin turned down President Trump’s plan to hand out $2,000 “tariff dividend” checks to Americans ahead of the 2026 midterms, saying the money should instead help trim the federal deficit.
Johnson had praised the idea a few days earlier on Fox Business Network’s “Mornings With Maria,” but he made it clear that getting the country’s finances back on track is a higher priority.
“We’re $38 trillion in debt,” he said. “We’ve averaged $1.89 trillion deficits over the last five years, and in the next ten, projected deficits total about $26 trillion.”
“We’ve got to tackle the deficit problem. We’re running out of time. People keep singing while the country’s drowning. If tariffs bring in more revenue, that cash should go straight into paying down the debt.”
Trump has repeatedly floated the idea of giving duty refunds to average Americans. Earlier this month, he suggested sending so‑called checks to folks earning below a certain threshold, and Treasury Secretary Scott Bessent pointed out that the payments could reach $100,000 a year for families.
The proposal would need Republican‑controlled Congress to approve it, and many GOP lawmakers, including Johnson, have signaled that the idea is still a long way from reality.
“We simply can’t afford it,” Johnson said again on Monday. “I wish we could give the public their money back, but that isn’t the case right now. We’re already looking at a $2 trillion deficit this year.”
“At the height of the pandemic, President Trump ran deficits of about $800 billion. President Obama’s final four years averaged $550 billion a year. Now we’re at $2 trillion – that’s completely unacceptable, and we need to focus on fixing it.”
Trump’s “tariff dividend” suggestion followed a string of Democratic victories in off‑year races in New Jersey and Virginia, where the campaign platform centered on making life affordable. It also came a day after oral arguments were heard before the Supreme Court regarding Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose wide‑ranging “reciprocal” and “trafficking” duties on many countries.
IEEPA tariffs form the backbone of Trump’s protectionist agenda and have generated roughly $90 billion in revenue since they were enacted, according to United States Customs and Border Protection data. Between September 30, 2024, and August 31, 2025, the U.S. collected $195.9 billion in levy revenue.
If the government were to limit the $2,000 dividend to individuals earning less than $100,000, the cost would come to about $300 billion, according to an estimate by Erica York, vice president of federal tax policy at the Tax Foundation.
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