House Speaker Mike Johnson stated that President Donald Trump's proposal to distribute $5,000 to every American adult would require congressional approval.
Trump announced the "Trump Dividend" at the Republican Party's midterm convention, suggesting it would be implemented if the GOP retains control of the House and Senate in the upcoming November election. While Trump later indicated to CBS News Texas that congressional authorization might not be necessary and did not explain how such a large sum could be disbursed without legislative action, Johnson clarified the need for Congress to act.
"I would assume, yes, he'd need Congress to act, and that's a creative idea," Johnson said Sunday on CNN's "State of the Union" and NBC's "Meet the Press." He added that he would work to advance the proposal despite the narrow Republican majority in the House.
"He's the big idea’s president. We're going to try to implement everything we can," Johnson said. "I commit that Congress will work through it and find consensus on that like they have to do everything else."
The proposed payments could cost upwards of $1 trillion, potentially straining the nation's annual budget deficit and exacerbating inflation concerns. This comes at a time when the economy faces persistent inflation and rising interest rates.
Trump has argued that the payments would be feasible due to a strong economy. However, consumer sentiment remains subdued, influenced by rising gasoline prices and wages that have struggled to keep pace with inflation. While attending a golf tournament in Ireland, Trump reiterated his belief that the economy could easily handle the payments, stating, "We can easily handle that because we're taking in so much money. We've never done better."
According to an Associated Press-NORC Center for Public Affairs Research poll from July, approximately one-third of U.S. adults approve of Trump's handling of the presidency, a slight decrease from June. Majorities also disapprove of his management of the economy and immigration, key issues from his 2024 election platform. Trump has recently expressed optimism that gas prices will decline, though he has not indicated any immediate resolution to conflicts impacting the Strait of Hormuz.