President Trump announced on Sunday that his administration plans to distribute at least $2,000 to each American, funded by revenue from tariffs. This announcement was made on his Truth Social platform, where he emphasized that the payment would exclude high-income earners. Trump also criticized those who oppose the tariffs, labeling them as “FOOLS!”

For this proposed distribution to occur, it would likely require approval from Congress. Earlier this year, Senator Josh Hawley, a Republican from Missouri, put forward a bill to provide $600 rebates from tariff revenue to most Americans and their dependent children.

Hawley highlighted the intent of his proposal by stating, “My legislation is designed to ensure that hard-working Americans share in the wealth that Trump’s tariffs are bringing back to our country.”

The concept of ‘tariff rebates’ raises questions about how such a system would operate and its potential impact on the U.S. economy and individual Americans.

Treasury Secretary Scott Bessent, though, told CNBC in August that the administration’s priority is paying down the $38.12 trillion national debt using the tariff revenue.

On Sunday, Trump also said that the administration would pay down the “ENORMOUS” debt using tariff revenue. 

The Hill has reached out to the White House for clarification on the president’s plan.

Through the first three quarters of this year, the Treasury Department collected $195 billion from tariff duties, according to its September statement. 

But as of Oct. 17, consumers are facing an average effective tariff rate of 18 percent, the highest since 1934, according to the Yale Budget Lab. After the president imposed sweeping tariffs on trading partners around the world in April, firms have passed on some tariff costs to customers.