Economist Kent Smetters, faculty director of the Penn Wharton Budget Model, estimated the cost of Trump’s promised $5,000 dividend at approximately $1.35 trillion for the full adult population, or $1.15 trillion if a $400,000 household income cap is applied. The national debt crossed $40 trillion in August, and the cumulative deficit has already reached roughly $1.8 trillion to $2 trillion through the first eleven months of fiscal year 2026. Tariff revenue, which the administration has cited as a possible funding source, amounts to only about $200 billion in 2025, far short of what’s needed. Without a clear funding mechanism, the measure would be financed through borrowing and add an inflationary pressure of 0.3 to 0.5 percentage points.
Source: Read the original article
