Federal officials are weighing a plan to send Americans stimulus checks worth between $1,000 and $2,000, funded by money collected from import tariffs.

Fox News reports that the proposal resembles a previous idea discussed earlier this year when Elon Musk led the Department of Government Efficiency, known as DOGE. At the time, he and government officials considered using federal savings to issue $5,000 checks, but that plan was never implemented.

Officials described the plan as “a distribution to the people, almost like a dividend to the people of America.” However, it is unclear where these funds will come from, considering the administration's efforts to chip away at the country’s $37 trillion debt.

According to Treasury data, the U.S. collected $31.3 billion in tariff revenue in September—slightly below the August record. For 2025 so far, the total stands at $214.9 billion.

Economists caution that while tariffs can raise federal revenue, they often raise prices for consumers as well. Import taxes are paid by U.S. businesses, which frequently pass those costs down to customers. In recent months, prices for household goods have risen more sharply. For example, the price index of core goods rose 0.3 percent in August. Meanwhile, housing and shelter costs have become a bigger driver of consumer price increases.

The proposal has sparked debate among policymakers about whether using tariff funds for direct payments is an effective way to help households manage rising costs.

Some analysts argue that using tariff revenue for direct payments is politically appealing but warn that it may undercut broader inflationary pressures if costs continue climbing.