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Imagine opening your mailbox to find a $2,000 “dividend” check from the government. That’s the eye-popping idea President Donald Trump is now floating — all thanks to his sweeping tariff policy.
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In a recent interview with One America News, Trump touted how much money tariffs could generate.
“They’re just starting to kick in, but ultimately, your tariffs are going to be over a trillion dollars a year,” he said. (1) That’s a big claim. Treasury Department data cited by Fox Business shows cumulative tariff collections at $214.9 billion so far in 2025. (2)
Trump says the funds would first go toward paying down the national debt. “Number one, we’re paying down debt, because people have allowed the debt to go crazy,” he said.
The U.S. national debt now stands at a staggering $37.86 trillion, but Trump insisted America can grow its way out.
“With the kind of growth we have now, the debt is very little — relatively speaking. You grow yourself out of that debt. It’s not a question of paying it. You grow yourself out,” he argued.
And then came the kicker: “We also might make a distribution to the people, almost like a dividend to the people of America,” he revealed. “We’re thinking maybe $1,000 to $2,000 — it’d be great.”
Will it happen?
It’s not the first time the idea of cutting checks from tariff revenue has surfaced. Back in July, Sen. Josh Hawley introduced a bill to send $600 tariff rebate checks to “hardworking Americans,” arguing they should share in “the wealth that Trump’s tariffs are returning to this country.” (3)
But even at that smaller $600 level, critics questioned the wisdom.
“I don’t think [a rebate] would be particularly good policy,” Alex Durante, senior economist at the Tax Foundation, told CNBC. (4) “I would prefer that the revenue was used for deficit reduction rather than just cutting checks to people.”
Others warn such payments could stoke inflation — an issue still lingering after the pandemic-era stimulus measures.
“People will go out and spend some of that money and that would further put upward pressure on prices and probably magnify inflationary effects,” said Joseph Rosenberg, senior fellow at the Urban-Brookings Tax Policy Center.
For now, Trump’s tariff “dividend” checks remain just an idea. But you don’t have to wait for Washington to deliver a windfall — savvy investors have long built their own passive income streams. Here are three simple ways to get started.
Build your own dividend stream
So what’s a dividend, anyway? In the investing world, it’s a slice of a company’s profits that gets paid back to shareholders — typically on a quarterly basis.
Owning dividend-paying stocks allows you to collect passive income without selling your shares — and it can be surprisingly satisfying. As John D. Rockefeller, one of the richest Americans in history, once said, “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”
While stock prices can rise and fall, companies with a strong track record of paying — and growing — dividends offer investors a steady cash flow. Over time, those increases can compound into a powerful income stream.
If you’d rather not pick individual stocks, dividend-focused exchange-traded funds (ETFs) offer a simple alternative. These funds hold a basket of dividend-paying companies, providing instant diversification across industries. Many also offer automatic reinvestment, allowing investors to compound their returns over time without lifting a finger.
The beauty of ETF investing is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in a dividend ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
Read more: Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
Earn rental income without becoming a landlord
Real estate is another popular way to generate recurring income. When you own a rental property and tenants pay rent, you earn a steady monthly cash flow.
It’s also a popular hedge against inflation, as property values and rental income tend to rise alongside the cost of living.
However, while real estate investing has clear benefits, being a landlord comes with its challenges. Managing a property involves finding and screening tenants, collecting rent and handling maintenance and repair requests (out of your own pocket) — and that’s assuming you can save enough for a downpayment and get a mortgage to buy the property in the first place.
The good news? These days, you don’t need to buy a property outright to reap the benefits of real estate investing. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100 — all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Let your cash hatch its own income
You don’t need a massive investment portfolio to build passive income. Even your spare cash can work harder for you — earning competitive yields instead of sitting idle.
To get started, a high-yield account, such as a Wealthfront Cash Account, can be a great place to grow your emergency funds, offering both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account can provide a base variable APY of 3.75%, but Moneywise readers can get an exclusive 0.50% boost over their first three months for a total APY of 4.25% provided by program banks on your uninvested cash. That’s over ten times the national deposit savings rate, according to the FDIC’s September report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $16 million are insured by the FDIC through program banks.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
@baldwin_daniel_ (1); Fox Business (2); Josh Hawley (3); CNBC (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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