Economist Skeptical of Trump's Cash Promises, Citing Lack of Authority
Former CBO Director Douglas Holz-Eakin argues that Trump's proposed checks, including $5,000 for every American, are unlikely to materialize due to fiscal and procedural hurdles.
Donald Trump's recent pledges to send checks to Americans are unlikely to be fulfilled, mirroring past unfulfilled promises, according to Douglas Holz-Eakin, president of the fiscal policy think tank American Action Forum.
"So the president has promised a lot of checks, the most recent being $5,000 to every American if Republicans hold on to the House and Senate. We ever going to see these? Well, I don't think so," Holz-Eakin, who previously served as director of the Congressional Budget Office, told Fox News Digital.
Holz-Eakin expressed doubt about the feasibility of these proposals, referencing similar past promises. He noted that the proposed "DOGE checks" and checks tied to tariffs were unrealistic. "And the tariff checks were never that realistic because [Trump] didn't have the authority to issue the checks, and that's actually true of all of these promises," Holz-Eakin stated.
He also cast doubt on the recently proposed plan to provide $9,000 checks to stay-at-home mothers for childcare, suggesting that while there are pathways to such support, it will be challenging to implement. "So, I would be skeptical that any of these checks are gonna be in your mailbox very soon."
Holz-Eakin drew a parallel between the fiscal approaches of the Trump and Biden administrations, stating, "I think we've seen two successive administrations get themselves in the following position: inflation is too high and wages aren't keeping up with it. Well, that's failing at the American dream."
He emphasized that controlling inflation is the critical first step toward economic stability and expressed support for the Federal Reserve's actions to achieve this goal. The Federal Open Market Committee recently raised interest rates for the first time in three years, signaling potential further increases to combat elevated inflation.
Holz-Eakin identified policy decisions from the Trump administration as headwinds to economic growth. "The first headwinds were tariffs, second headwinds were the the oil prices and fight with Iran, and we need to get past those battles and, and let the economy just go, and ... that would be a better environment for the families," he said.
Concerns about the nation's fiscal direction were also raised. "We're $41 trillion in debt. The deficit is $2 trillion every year and it's getting larger," Holz-Eakin observed. He advocated for a return to "old school conservative" principles, including getting the debt under control and reducing spending without raising taxes, as a means to address the current fiscal challenges. He noted that current fiscal policy "doesn't add up."