Ex-CBO Chief Holtz-Eakin Doubts Trump's $5,000 Dividend Checks

September 21, 2026 at 07:30 AM2 min

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Former Congressional Budget Office Director Douglas Holtz-Eakin cast doubt on President Donald Trump's promise to send $5,000 to every U.S. adult if Republicans retain control of Congress. Holtz-Eakin told Fox News Digital that earlier DOGE and tariff-dividend plans were unrealistic too. The proposal could cost about $1.35 trillion, according to Reuters.

Key Facts

Douglas Holtz-Eakin, former CBO director, said he does not think Americans will see the $5,000 checks Trump promised.
Reuters estimated the 'Trump dividend' proposal could cost about $1.35 trillion.
House Speaker Mike Johnson said Congress would have to authorize the payments.
The Federal Reserve raised its target rate by 25 basis points to 3.75%-4% on Wednesday, citing elevated inflation.
CBO estimated the federal deficit reached $2 trillion through the first 11 months of fiscal 2026.

Holtz-Eakin's Skepticism

Douglas Holtz-Eakin, now president of the American Action Forum, told Fox News Digital on Thursday that he does not think the checks will be sent. He said the DOGE checks were never realistic because DOGE was never going to save that much money. Holtz-Eakin also dismissed the tariff-dividend proposal, saying Trump lacked the authority to issue the checks. He said he would be skeptical that any of these checks are going to be in your mailbox very soon.

Fiscal and Inflation Concerns

The CBO estimated the federal deficit reached $2 trillion through the first 11 months of fiscal 2026. Its February baseline projected a $1.9 trillion full-year deficit and debt held by the public equal to 101% of GDP. The Federal Reserve raised its target rate by 25 basis points Wednesday to 3.75%-4%, saying inflation remains elevated. Holtz-Eakin said policymakers should support the Fed's effort to restore price stability rather than lean on new cash payments. He called for an old-school conservative approach centered on controlling debt, spending less and avoiding tax increases.