Treasury Secretary Scott Bessent said he's supportive of a plan floated by President Donald Trump to send $5,000 checks to American adults if Republicans retain their majorities in Congress, downplaying concerns about the potential cost.
"I believe there are ways to do it that would not affect the deficit," Bessent told lawmakers Tuesday in response to questions about the plan, at a time of growing concerns in financial markets about the government's swollen debt load.
Bessent didn't provide details about how the cost would be offset, though he said the Treasury had been working on the plan for "quite awhile." He said that he would work with House Speaker Mike Johnson on the proposal if the administration were to need authorization from Congress, as even some Republican lawmakers have suggested.
"Putting more money in the American people's pocket should be an objective for everyone," Bessent said, calling the president's intent "very real."
Bessent's testimony comes a little less than a week after Trump promised the dividend payments. The proposal is projected to cost more than $1 trillion, and the U.S. is on track to spend
Trump said "a lot of people think I don't even need congressional approval" during an interview last week.
Republican Senate Majority Leader John Thune said separately on Tuesday to reporters at the Capitol that what's happening in financial markets and with U.S. debt is "really concerning."
The 10-year U.S. Treasury yield rose above 5% on Tuesday to the highest in almost two decades, the latest milestone in a bruising global bond selloff driven by booming capital investment and soaring energy prices that are exacerbating inflation.
Asked about the $5,000 checks, Thune said, "We have to be really circumspect and wise about decisions on how we spend money, and obviously look for ways to try and slow the rate of growth in government spending."
Congressional Republicans
U.S. debt hit $40 trillion last month, raising broader concerns about the country's longer-term fiscal situation.
