Trump Proposes $2,000 Checks and 50-Year Mortgages as Economic Concerns Grow

US President Donald Trump has put forward a series of bold, and at times controversial, policy proposals in a bid to address the rising cost of living, a major concern that has begun to unsettle his Republican Party. As concerns about the economy loom large, Trump has suggested ideas ranging from $2,000 cash dividends for Americans to the introduction of 50-year mortgages.

Affordability Concerns

The cost of living has been a central issue for many Americans, particularly after the Democrats' strong performances in off-year elections last week in New Jersey, New York, and Virginia. Voter frustration over rising prices was a key factor in the results.

Despite mounting pressure, Trump has dismissed suggestions that he is facing an economic crisis of his own. Instead, he has blamed inflation on the policies of his successor, President Joe Biden. In a tense exchange with reporters, including an AFP journalist, Trump defiantly stated, "I don't want to hear about the affordability," and insisted that the rising costs were not his responsibility.

Nevertheless, Trump's base, which is heavily tied to his "Make America Great Again" (MAGA) movement, has pushed him to respond more aggressively to the issue. There are signs that both Trump and the White House are becoming increasingly aware of the potential damage the economy could cause Republicans in the 2026 US midterm elections.

In response, the White House has highlighted Trump's efforts to lower prices on essential goods like gas and eggs, and pointed to a recent deal to reduce the prices of certain weight-loss drugs. Trump himself is preparing to "ramp up" his domestic travels in the coming months to promote his economic message, a White House official told AFP.

The 79-year-old tycoon, who has long prided himself on his economic acumen, has taken to heart the famous words of Democratic strategist James Carville, who famously summed up Bill Clinton’s 1992 presidential victory with the phrase: "It's the economy, stupid!"

Dividends

One of Trump’s most striking proposals came over the weekend on social media, when he suggested giving $2,000 in cash dividends to every American. These payments would be funded by the tariffs Trump has imposed globally.

The idea is reminiscent of the stimulus checks Trump issued during the Covid-19 pandemic, but economic data suggests that any tariff-generated dividends may be some time in the making. Trump claimed that tariffs were bringing in "trillions of dollars," but according to US Treasury data, customs revenues, which include tariffs, only rose by $179 billion in the January to September period this year.

Meanwhile, the US Supreme Court is reviewing the legality of these tariffs, which could delay any such scheme.

Trump’s spokeswoman, Karoline Leavitt, stated that the White House remains "committed" to the idea of dividends and is exploring legal options to make it a reality. However, she admitted there is "no timeline" for when such payments might occur.

50-Year Mortgages

Trump’s most controversial idea, again posted on social media, involves offering homeowners the option of 50-year mortgages, as opposed to the standard 30-year terms.

"It's not even a big deal," Trump told Fox News. "All it means is you pay less per month, you pay it over a longer period of time."

This proposal has sparked anger within some parts of the MAGA movement, as it would likely result in homeowners paying more in interest over the long term.

Reports have also suggested that the idea has caused frustration among key White House staff, who were upset by Federal Housing Finance Agency Director Bill Pulte's suggestion of 50-year mortgages without proper consultation.

Healthcare

In another major policy suggestion, Trump has called for the subsidies paid by the government to health insurance companies under the Affordable Care Act (commonly known as Obamacare) to be redirected directly to Americans.

The issue of healthcare subsidies has been a contentious one, particularly during the US government's record shutdown that ended earlier this week. It is expected to remain a central focus in the upcoming midterm elections.

Trump has proposed that these direct payments would allow Americans to choose and purchase their own healthcare plans, rather than the funds going to "money-sucking insurance companies." However, Trump has provided few details on how this plan would be implemented.

While his proposals continue to generate debate, it is clear that Trump is attempting to carve out a strong economic narrative ahead of the next election cycle, using bold policy ideas to address the affordability concerns of his base.