Why Republicans oppose Trump's plan to send $2,000 tariff-funded cheques

US President Donald Trump wants to send $2,000 tariff-funded cheques to Americans in 2026, but he must first convince Congress, and many Republicans are signalling they are unconvinced.

Senior Republicans say limited tariff revenue should prioritise reducing the ballooning deficit and national debt rather than funding rebate cheques, creating a major hurdle for Trump’s proposal.

"We're facing a deficit this year around $2 trillion," Business Insider quoted Senator Ron Johnson of Wisconsin as saying. "I think whatever revenue we get, from whatever source, ought to go to try and bring down those deficits."

Many lawmakers emphasise debt reduction as the more urgent priority. "I mean, everybody's got their own idea," Rep. Andy Biggs of Arizona told BI. "I would prefer we reduce the overall tax rate, and make that permanent."

"You know, my focus would clearly be paying down the $38 trillion of the debt," Senator Rick Scott of Florida told Business Insider. "But I have to see what he proposes."

Trump first floated versions of the idea early in his second term, including so-called "DOGE Dividends". By August, he publicly entertained tariff rebates, saying, "We're thinking about that, actually."

In recent weeks, he has repeatedly pushed the concept in public remarks and on Truth Social, indicating a possible mid-2026 rollout.

That specificity has encouraged supporters like Senator Josh Hawley, who introduced a tariff rebate bill for lower-income Americans in August. "This is my pet idea," he said. "I just think it's a terrific way to give relief to working people." 

Some Republicans have softened their rhetoric. In February, House Speaker Mike Johnson emphasised debt reduction, but this month he told Fox Business, "Well, I think there's some merit to it… we'll have to figure that out."

Still, several lawmakers remain firmly opposed. Sen. Bernie Moreno of Ohio reaffirmed his stance, "I think we should pay down the deficit."

Economists warn stimulus-style cheques could add inflationary pressure. That presents political risk for Republicans who previously criticised pandemic-era support payments.

"Republicans have spent five years railing against the Biden administration for cutting people checks and sparking inflation," Scott Lincicome of the libertarian Cato Institute told Business Insider. "Now in power, they're going to start cutting people checks and maybe sparking inflation?"

Republicans may explore ways to meet Trump’s demands without creating a costly tariff rebate programme.

"There are ways that they could maybe spin this," Lincicome said, suggesting the administration could rebrand expected tax refunds from the “Big Beautiful Bill” as tariff rebates. "You know, have a big press conference and some really nice poster board, that makes it look like they're actually giving people tariff rebates, when in reality, it's just One Big Beautiful Bill tax cuts."