Yang Backs Trump's Direct Payment Plan

Andrew Yang, who made universal basic income a centerpiece of his 2020 Democratic presidential campaign, is now throwing his support behind President Donald Trump's proposal to send Americans $2,000 checks funded by tariff revenue. It's an unexpected political alliance, but Yang sees it as fundamentally aligned with his economic philosophy.

Speaking with Fox News over the weekend, Yang made his case: "Democrats in theory should be all for anything that helps the working class of this country," he said. Anything that puts buying power into the hands of average Americans is a "huge win," and Democrats should "get onboard" Trump's plan.

Yang's reasoning is straightforward. He believes the money would flow directly into local businesses and help keep the economy humming along. He's long argued that capitalism functions far better when people actually have money to spend—a point that seems obvious but often gets lost in policy debates.

The funding source doesn't particularly bother Yang either. While his own UBI proposal relied on taxing companies that use artificial intelligence to boost productivity while shrinking their workforces, he thinks the underlying idea of direct payments is sound regardless of where the money comes from.

The Tariff Dividend Controversy

Trump recently announced his administration would start issuing these $2,000 "tariff dividend" checks by mid-2026 or later. The timing coincides with serious economic headwinds. Budget analysts have criticized the proposal for its potential to balloon federal deficits by up to $600 billion, while economists are warning about a "serious affordability crisis" driven by Trump's tariffs and immigration restrictions, both of which are fueling inflation.

So we've got a curious situation: Trump wants to send people checks to help with affordability problems that his own tariff policies are creating. It's economic policy as a circular loop.

Republicans Aren't Convinced

Even within Trump's own party, the proposal is meeting resistance. Majority Leader John Thune (R-S.D.) argued that rising tariff revenues should instead go toward reducing the national debt. Sen. Bernie Moreno (R-Ohio) echoed similar concerns, saying the focus should be on paying down the deficit.

Treasury Secretary Bessent acknowledged the political reality: Trump's plan would require congressional approval. He also noted that a tariff dividend could take various forms beyond direct checks—eliminating taxes on tips, overtime, or Social Security benefits, or permitting auto loan deductions.

Yang's endorsement represents an interesting political realignment. The former Democratic candidate is willing to support a Trump policy because he believes it serves working families, regardless of the partisan source. Whether Democrats follow his advice to "get onboard" remains to be seen, especially as they navigate the tension between supporting direct aid and opposing Trump's broader economic agenda.