Andrew Yang, the former Democratic presidential nominee, has thrown his support behind President Donald Trump‘s proposal to provide direct financial aid to Americans.
Yang Supports Direct Payouts
Yang, who is known for his advocacy of universal basic income (UBI), endorsed Trump’s plan to distribute money directly to citizens. He expressed this during an interview with Fox News on Saturday.
“Democrats in theory should be all for anything that helps the working class of this country,” Yang said during the interview, adding that anything that puts buying power into the hands of the average Americans is a “huge win.”
He said that Democrats should “get onboard” Trump’s plan.
Yang said that the money would flow directly into local businesses and help keep the economy strong, adding that he often argued capitalism functions far better when people have money to spend.
He added that he believed the idea was sound regardless of the funding source, noting that his own UBI proposal was based on taxing companies that use artificial intelligence to boost productivity while reducing their workforces.
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Tariff Dividends An Affordability Fix?
Yang’s endorsement of Trump’s plan comes at a time when the U.S. economy is facing significant challenges. Trump recently announced that his administration would start issuing $2,000 “tariff dividend” checks to Americans by mid-2026 or later, a move that has been met with criticism from budget analysts for its potential impact on federal deficits, which could be up to $600 billion.
At the same time, economists have warned of a “serious affordability crisis” due to Trump’s tariffs and immigration restrictions, which are fueling inflation.
GOP Skeptical of Trump’s Plan
Meanwhile, several Republican lawmakers expressed skepticism about the proposal. Majority Leader John Thune (R-S.D.) argued that rising tariff revenues should instead go toward reducing the national debt, while Sen. Bernie Moreno (R-Ohio) similarly said the focus should be on paying down the deficit.
Treasury Secretary Bessent also acknowledged that Trump's plan would require congressional approval and noted that a tariff dividend could take various forms, such as eliminating taxes on tips, overtime, or Social Security, or permitting auto loan deductions.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
