Additional Coverage:
- GOP lawmaker has an update on $2,000 stimulus checks — and it’s not good news for Americans (marketrealist.com)
Stimulus Check Dreams Dashed? GOP Lawmaker Suggests Americans Forget About $2,000 Payouts
**Washington D.C. ** – For many Americans hoping for a $2,000 stimulus check from the White House, the latest update from Capitol Hill delivers a dose of disappointing news.
Rep. Jodey Arrington (R-TX) recently indicated that these promised payouts are likely a non-starter, at least for the foreseeable future.
The prospect of these stimulus checks was tied to the revenue generated by the Trump administration’s tariff policies, which have been a point of contention and a subject of recent legal challenges. While the tariffs themselves might have stirred global trade, the president had suggested a portion of the proceeds would directly benefit American households. However, a recent Supreme Court ruling appears to have complicated this plan.
When questioned about the fate of the checks, Arrington was direct, stating, “I think so for now at least. It will be litigated…we’re going to live with whatever the courts decide.” This suggests that any immediate relief in the form of a $2,000 check is off the table as legal battles unfold.
Despite the setback for stimulus checks, Arrington expressed optimism regarding the future of the administration’s tariff policies. He confirmed that the current 15% tariff structure would remain in place while the matter is heard in an international trade court in New York. The President’s team is reportedly working to resolve the issue as swiftly as possible.
Arrington elaborated on the administration’s long-term strategy for tariffs, particularly those implemented under Section 301 of the Trade Act. “There is a process with the 301 tariffs as part of the Trade Act to put in place basically the same tariff regime for the same purposes and same motivation, which is to address the unfair trade practices and those issues of National Security,” he explained. He believes that the current temporary Section 122 tariffs, which allow for up to 15% for 150 days, will eventually “snap back to that initial regime with a more permanent 301 tariff status.”
Making these tariffs permanent would not necessarily require court intervention, Arrington noted. With a simple majority in the Senate, which Republicans currently hold, such a move could be enacted. He referred to this legislative path as the “most efficient tool” available, hinting at potential future actions from his party.
While acknowledging that bipartisan support would be beneficial, especially given the national security implications, Arrington conceded that securing Democratic votes might be challenging in the lead-up to the Midterm elections. Echoing the President’s stance, the Texas Republican maintained that the tariffs have injected billions of dollars into the country and are actively working to reduce the trade deficit.
The news regarding the stimulus checks is likely to disappoint many who were banking on the promised funds. Arrington’s assessment aligns with sentiments from various financial experts.
Stephen Kates, a financial analyst at Bankrate, told CNBC that the “tariff dividends were a long shot from the beginning.” He added, “Given the White House’s lack of authority to unilaterally issue stimulus checks to Americans, the idea was largely aspirational,” making the current Supreme Court order a final nail in the coffin for the proposal.