Who qualifies as 'high income' and won't receive Donald Trump's $2,000 checks he promised to almost all Americans?

President Donald Trump has sparked nationwide debate since announcing plans for a $2,000 “dividend” that he said would be distributed to Americans using money generated from tariffs.

Posting the proposal on social media, Trump said the payout would apply to “everyone” except high-income earners. He did not explain how the payments would work or who exactly would qualify.

Treasury Secretary Walks Back the Announcement

Not long after Trump’s declaration, Treasury Secretary Scott Bessent cast immediate doubt on whether new checks were coming at all.

Speaking on ABC News' This Week, Bessent suggested the president’s comments might instead refer to tax savings already included in Trump’s major domestic spending package, One Big Beautiful Bill.

Bessent said the so-called dividend could appear “in lots of forms,” emphasizing that he had not discussed the idea with Trump directly. He pointed to reductions on taxes for tips, overtime, Social Security, and auto loan interest as possible sources of household savings.

What the Tariff Dividend Would Look Like

Although Trump compared the concept to tariff-funded payouts, the idea closely mirrors stimulus checks issued during the pandemic, two of which were approved under his administration. Those payments totaled up to $3,200 per filer and additional money per child.

Credit: Mike Stobe / Getty Images.

Traditionally, a dividend refers to a payment made to shareholders from a company’s profit. Trump’s version would instead rely on revenue generated by his expansive tariff regime. However, that approach triggered immediate questions about legal authority and financial feasibility.

Who Might Qualify for the $2,000 Payment?

Trump’s brief message only said that high-income earners would be excluded. Pandemic stimulus payments phased out for individuals earning above $75,000 and couples making more than $150,000, but it’s unclear whether the same model would apply here.

The median U.S. household income sat at $83,730 last year, meaning roughly half of American families would fall below that threshold, according to ABC News.

Economists quickly noted that existing tariff revenues appear insufficient to fund the sweeping payouts Trump hinted at.

The federal government collected about $195 billion in tariffs as of September 30, according to Treasury data. But if the proposed dividend applied to roughly 150 million Americans earning under $100,000, the cost would approach $300 billion.

Tax Foundation economist Erica York estimated that after accounting for Trump’s new tariff measures and their budgetary impact, net tariff revenue might be closer to $90 billion – far below the amount required for such payments.

Legal Questions Loom Over Tariff Authority

The confusion surrounding the proposal arrives as the Supreme Court considers whether the president has the constitutional power to impose tariffs without congressional approval. Solicitor General John Sauer argued that the revenue produced by tariffs is “incidental” and not an attempt to bypass Congress’ taxing authority.

But depending on how the justices rule, the White House may have to refund tens of billions of dollars to importers, further shrinking available tariff funds.

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Could Future Revenue Cover the Payouts?

In theory, the administration could promise the $2,000 dividend using projected tariff revenue. Treasury forecasts suggest tariffs could generate as much as $3 trillion over the next decade. However, using future revenue would add to the federal deficit, which already exceeds $38 trillion.

For now, the proposal remains unclear – with Trump promising checks and his Treasury Secretary signaling something far less direct.

Featured image credit: Brandon Bell / Getty Images.