California Gov. Gavin Newsom (D) has a counteroffer for President Donald Trump: before Washington starts handing out $5,000 checks, maybe it should settle up on the gas bill.
Newsom took to X on Thursday to torch Trump's proposed $5,000 "dividend," which would go to every adult American if Republicans keep control of Congress in the November midterm elections.
"Donald Trump's idea to buy your vote with $5,000 checks is another pathetic scheme from a pathetic man," Newsom said.
His alternative? Republicans should reimburse Americans for more than $108 billion in additional gasoline and diesel costs that Newsom attributes to the Iran war.
The Receipts Behind Newsom's Number
This week, the Wall Street Journal reported that U.S. consumers have collectively spent about $107 billion more on gasoline and diesel than they would have without the conflicts, citing estimates from Brown University's Climate Solutions Lab.
The estimate covers the period since the Iran war began on Feb. 28 and compares actual gasoline and diesel prices with a counterfactual estimate of what prices would have been without the conflict. The analysis also incorporates disruptions associated with the Russia-Ukraine war.
Where Would Trump's $5,000 Checks Come From?
Trump has described the proposed payment as a dividend generated by the strength of the U.S. economy. During the Republican Party's midterm convention in Dallas, Trump said the plan would provide $5,000 to every adult American if Republicans retain control of both chambers of Congress in November.
Commerce Secretary Howard Lutnick has said the payments would not come from taxpayer money or the federal deficit. "It's not tax money," Lutnick told NBC News, adding that the administration would "earn the money" needed to make the payments.
Meanwhile, economist Peter Schiff has questioned how the government could afford the payments while the national debt continues to rise.
The proposal would require congressional approval, according to House Speaker Mike Johnson (R-La.), the Associated Press reported earlier this week.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
