<p>Treasury Secretary Scott Bessent stated that the Treasury Department is evaluating President Donald Trump’s proposal to provide adults with $5,000 checks and suggested it might be feasible to issue the payments without Congressional authorization.</p>
<p>Bessent made these comments during a testimony before the House Financial Services Committee on Tuesday, indicating that the administration is exploring methods to disburse the $5,000 payments. He also mentioned that he would collaborate with Congress to authorize the checks if necessary.</p>
<p>During a recent GOP midterm convention, Trump promised the $5,000 payments to all adults if Republicans win in November.</p>
<p>Rep. Emanuel Cleaver (D-MO) questioned Bessent on whether Trump could issue the $5,000 payments without Congress’s consent. Bessent responded, “We are currently examining that at Treasury,” and expressed a willingness to work with House Speaker Mike Johnson if needed.</p>
<p>He added, “If it becomes clear that we need congressional authority, I will meet with Speaker Johnson.” Bessent emphasized that the president’s intent to distribute the $5,000 payments is “very real.”</p>
<p>He countered claims that such payments would increase deficits, noting that the national debt has surpassed $40 trillion and confirmed his support for sending out the checks. Bessent suggested that it might be possible to do so without adding to the deficit but did not provide specific details.</p>
<p>Bessent stated, “I think putting more money in the American people’s pocket should be an objective for everyone, and I believe there are ways to do it that would not affect the deficit.” Trump characterized the checks as a “dividend” for the “tremendous economic success” of the United States, stipulating that the funds must be spent domestically.</p>
<p>The proposed dividend check would cost the Treasury approximately $1.3 trillion if every adult in the U.S. received the $5,000 payment as indicated by Trump.</p>
<p>Rep. Juan Vargas (D-CA) pressed Bessent regarding concerns about spending contributing to the national debt and deficits. Bessent reiterated, “I believe that there are ways to do it without increasing the debt or deficit.” When asked how this could be achieved, he stated that it is “in process right now” and he is not ready to discuss it.</p>
<p>Bessent added, “But at Treasury, we’ve been working on it for quite a while.” During the hearing, Rep. Jim Himes (D-CT) questioned Bessent about market interventions during Trump’s second term, including government equity stakes in private companies.</p>
<p>Himes noted, “The government now owns 39 companies,” and mentioned the imposition of tariffs as interventions in the free market. He also referenced the Treasury’s intervention in bond markets.</p>
<p>Last month, the Treasury Department attempted to intervene with buybacks to lower yields on long-term securities, although the market did not respond favorably. The Treasury announced last week that it would triple buybacks to $6 billion in longer-term debt.</p>
<p>Despite these efforts, bond yields continued to rise, with the yield on the benchmark 10-year Treasury note reaching 5% for the first time in 19 years on Monday, adding pressure on the federal government’s finances.</p>