(MENAFN- Live Mint) US President Donald Trump made a big announcement on his Truth Social account on Sunday, claiming that Americans will be receiving money directly sourced from tariff revenues.

Posting on the social media platform, he announced a dividend of at least $2,000 per person in the United States. He also criticised those opposing tariffs by calling them“FOOLS!”

“People that are against Tariffs are FOOLS!... A dividend of at least $2000 a person (not including high income people!) will be paid to everyone,” he wrote.

Donald Trump later told USA Today that a $2,000 dividend will be given to each low- and middle-income American, and the remaining tariffs will be utilised by the government to lower its debt, referring to debt as a“national security thing.”

All you need to know about Donald Trump's $2,000 dividend plan

The president proposed the idea, just five days after his Republican Party lost elections in Virginia, New Jersey, and elsewhere, largely due to voter discontent with his economic stewardship, specifically the high cost of living.

The announcement also coincides with a time when Trump's tariffs are facing scrutiny by the US Supreme Court over their legality. On Wednesday, the apex court raised serious doubts about the legitimacy of those tariffs.

Details about the plan remain scarce. Here's what we know so far about Donald Trump's $2,000 dividend plan

- The US administration will give $2,000 each only to the middle-income and lower-income citizens of the United States.

- Even though the administration has not yet announced the structure of the dividend, US Treasury Secretary Scott Bessant said it could be delivered in the form of tax decreases. He also added that the structure could include no tax on tips, no tax on overtime, no tax on Social Security, and deductibility on auto loans.

- The Committee for a Responsible Federal Budget estimates that issuing $2,000 checks as tariff rebates would cost the US government $600 billion annually. However, tariff revenues are projected to generate only about half that amount, USA Daily reported.

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- The dividend from tariff revenues would still require Congressional approval, even though Trump is promoting it as a direct benefit to American households.

- The Trump administration has not yet given a rollout date for the plan.

- Donald Trump had suggested a dividend payout for middle-income and lower-income people back in August as well, Reuters reported.

- The rationale behind the dividend plan is that tariff collections are becoming large enough to support such a payout, as well as broader national goals, Trump said in a social media post.

Also Read | How much will Trump's tariff dividend cost the US government?

- This isn't the first time Trump has announced such financial benefits. He had previously suggested transferring money saved through cuts initiated by the Department of Government Efficiency (DOGE) to Americans. However, nothing came of that announcement.

- Most importantly, the president is not in charge of directly issuing financial rewards to people. The 'power of the purse' solely lies with Congress.

- Earlier this year, Republican Senator Josh Hawley sent a proposal to the Senate Finance Committee about issuing $600 per person, but that didn't go any further. So, analysts caution that Americans shouldn't get their hopes too high about receiving a $2,000 payout anytime soon, the USA Daily report said.

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