Sen. Ted Cruz (R-Texas) signaled conditional support for President Trump's proposal to send $5,000 dividend payments to American adults, but with a key caveat: the payments must be structured as tax refunds for people who work and pay taxes.
In an interview with Fox News's Jesse Watters, Cruz said his backing "depends on how it's structured." He elaborated: "I would like to see it structured as a tax refund. I would be all for structuring it as a tax refund."
The Texas Republican, a prominent conservative voice in the Senate GOP conference, stressed the importance of rewarding work. "But I think we should be incentivizing work. I don't think we should be paying people that are not working," he argued.
Trump unveiled the dividend plan at the GOP midterm convention in Dallas, framing it as a way to put money back in Americans' pockets. The proposal has drawn criticism from both moderate and conservative Republicans. Sen. Susan Collins (R-Maine), chair of the Senate Appropriations Committee, warned that the plan would be "extraordinarily costly," noting that the proposed $5,000 dividend appears to have no income cap.
Paying $5,000 to nearly 270 million American adults would cost more than $1 trillion, adding to the national debt, which recently surpassed $40 trillion. That fiscal reality has made some Republicans wary, even as they embrace the political appeal of direct payments.
Senate Majority Leader John Thune (R-S.D.) has defended the idea of returning money to taxpayers but stopped short of committing to a floor vote. In a recent Fox News interview, Thune responded to a question about whether Senate Republicans would pass the proposal with: "Well, that's a good question. We'll cross that bridge when we come to it."
The proposal has also sparked debate among conservatives, with some, like Rep. Chip Roy (R-Texas), calling it "soul-sucking" and inflationary. Others, including Florida Gov. Ron DeSantis, have slammed the plan as fiscally irresponsible. Meanwhile, Vice President Vance's separate proposal for $9,000 parent payments has split conservatives along similar lines.
Cruz's stance aligns with the growing conservative push to tie government benefits to work requirements, a theme that has gained traction in GOP policy circles. His support, if the plan is structured as a tax refund, could provide a bridge between Trump's populist pitch and fiscal hawks in the party.
As the midterm elections approach, the debate over the dividend plan is likely to intensify, with Republicans weighing its electoral appeal against its long-term fiscal consequences.
