Core Points - President Trump has proposed direct payments of $2000 to low- and middle-income households, suggesting that funding would primarily come from tariff revenues [1] - The proposal is seen as an attempt to regain political momentum on economic issues ahead of the midterm elections, amid rising inflation and living costs [1] - There is a general reluctance among Republicans regarding the proposal, with many preferring to use tariff revenues to reduce federal deficits rather than stimulate consumer spending [1][2] Group 1 - The conservative Tax Foundation estimates that the proposed tariff policies could generate $158 billion in revenue by 2025 and over $2.3 trillion over the next decade [1] - Republican lawmakers, including Rep. Blake Moore and Sen. Tom Tillis, express concerns that using tariff revenues for direct payments contradicts initial intentions of using them to reduce debt [2] - Concerns are raised about the potential inflationary impact of large direct payments, as previous stimulus measures have been linked to rising prices [2][3] Group 2 - The estimated cost of providing $2000 payments to middle-income families ranges from $280 billion to $607 billion, significantly exceeding projected tariff revenue [3] - There is uncertainty regarding the legal authority of some tariffs imposed during Trump's presidency, which could further complicate revenue projections [3]