Kevin Hassett, Director of the National Economic Council (NEC), suggested that President Donald Trump‘s plan to use tariff revenue to fund $2,000 stimulus checks for Americans would require congressional approval.

Improved Economy Boosts Stimulus Prospects

Hassett, one of Trump’s nominees for the Federal Reserve Chair role, during an appearance on “Face the Nation with Margaret Brennan,” on Sunday, revealed that the President might present the proposal to Congress in the new year. The funds would be distributed through the tax code, necessitating new legislation for the Treasury Department to issue the checks. Hassett also stated that the stimulus could be funded by tariff revenue but stressed that Congress ultimately decides how government revenues are spent.

He highlighted the positive economic developments since July, suggesting that these could make the stimulus checks “more possible.” Hassett said that while he wasn’t “so sure” over the summer about whether there was room for such a payment, he is now “pretty sure” that there is.

He also mentioned the success of the tariffs imposed this year, citing significant growth, a decrease in the trade deficit, and reduced imports from China. However, he acknowledged the need for potential adjustments, particularly for goods not feasibly produced in the U.S.

When asked about the ongoing Supreme Court case regarding the President’s authority to unilaterally impose tariffs under a federal emergency powers law, Hassett expressed confidence in the administration’s position. However, he stated that it is “pretty unlikely” for the court to order “widespread refunds” to the companies.

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Tariff Revenue Falls As Stimulus Plan Debated

The proposal to fund stimulus checks using tariff revenue comes amid a decline in tariff collections. In November, the U.S. government collected $30.75 billion in customs duties, down from $31.35 billion in October, marking the first month-over-month decrease since the tariffs were imposed in April.

Despite this, U.S. Treasury Secretary Scott Bessent has expressed confidence in the administration’s ability to maintain its tariff policies, regardless of the Supreme Court’s decision in an ongoing case. Bessent said on Fox News last month that the checks would likely be targeted at households earning under $100,000, adding that the idea was still under discussion.

Earlier, an analysis from the Tax Foundation revealed that Trump’s proposal to fund $2,000 “tariff dividend” checks for American households using revenue from his new import tariffs faced a significant arithmetic gap, with estimated costs vastly outpacing revenues by hundreds of billions of dollars. The CRFB estimates the plan would cost about $600 billion a year, roughly double the revenue expected from Trump's new tariffs.

Meanwhile, Hassett said that if Trump appointed him as Fed chair, the president’s opinions would likely have little influence on interest rate decisions.

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