As Donald Trump returns to the White House in January 2025, people are talking about his economic policies again, especially the possibility of another round of stimulus checks.
While social media is buzzing with rumours of future payments, the reality is more complicated. Here’s what you need to know about expecting another stimulus check under Trump’s leadership.
Stimulus Checks During Trump’s First Term
During his first term, Donald Trump signed two rounds of stimulus payments to help people affected by the COVID-19 pandemic:
- First Round: Up to $1,200 per eligible individual (March 2020).
- Second Round: Up to $600 per eligible individual (December 2020).
These payments were part of bipartisan laws passed by Congress and signed by Trump. A third round, up to $1,400 per person, was sent out later under President Biden in 2021 through the American Rescue Plan Act.
Current Economic Landscape
The economic situation that called for stimulus checks during Trump’s first term was unique. The pandemic led to widespread job losses and high unemployment, which required quick government action. However, today’s economic climate is very different:
- Inflation Concerns: Inflation is still a major problem, and the Federal Reserve is trying to keep it around 2%. Economists warn that giving out more cash could push inflation up again.
- Stable Job Market: Unemployment rates are much lower than during the peak of the pandemic, so there is less need for widespread financial help.
- Political Focus: The Republican-controlled Congress is more focused on tax reforms and spending cuts instead of direct cash payments.
Can a President Unilaterally Issue Stimulus Checks?
It’s essential to know that a president cannot decide to issue stimulus checks on their own. Such payments must be approved by Congress through new laws.
While Trump signed earlier stimulus bills, they were mainly the result of bipartisan agreements in Congress. Right now, there is no new legislation proposing more stimulus payments.
Trump’s Economic Agenda for His Second Term
Donald Trump’s promises and economic plans for his second term don’t include giving direct stimulus payments. Instead, he focuses on:
- Tax Cuts: Extending and expanding the 2017 Tax Cuts and Jobs Act to lower taxes for people and businesses.
- Government Spending Reductions: Reducing federal spending and addressing the national debt.
- Tariff Policies: Introducing new tariffs on imports to encourage domestic production.
These priorities indicate a shift away from financial aid programs like stimulus checks.
Social Media Rumors vs. Reality
Rumors about a possible $2,000 stimulus check are circulating on platforms like TikTok and X (formerly Twitter). However, these claims have no official support:
- The IRS has stated that no new stimulus payments are planned.
- Trump has not mentioned any promise to issue stimulus checks during his campaign or transition period.
- Experts warn against trusting financial information from social media, as these rumors often come from misinformation or scams.
What Experts Say
Economists believe the chances of another round of stimulus checks under Trump’s leadership are low:
- Legislative Challenges: With Republicans in charge of both chambers of Congress, there is little interest in more federal spending on direct payments.
- Inflation Risks: Policymakers are cautious about any actions that could increase consumer spending and worsen inflation.
- Economic Stability: Current economic signs do not indicate an urgent need for immediate financial help.