It doesn’t matter to him that his plan would cost more than a trillion dollars. The offer was made in a speech at the party’s first-ever convention in the middle of a US presidential term and is to be called the Trump Dividend. The proposal, no doubt, would require congressional approval. Vice President JD Vance indicated that tariff revenue could help fund the proposal.
Tamil Nadu’s Welfare Model Goes Global
Meanwhile, Indian politicians, especially those in Tamil Nadu must be sporting a broad grin over this proposal. After all, Tamil Nadu was the pioneer in the art of rolling out direct benefit schemes targeted mainly at the voter constituency. The welfare-focused approach later gained popularity in other parts of India. Political parties are now offering a range of benefits, including subsidised electricity, water, free public transport, farm loan waivers, laptops and direct cash transfers.
From Rice to Laptops
A trip down memory lane will reveal how this model came into being. In 1967, DMK founder C N Annadurai promised subsidised rice through the public distribution system. The scheme was implemented after the DMK came to power but later scaled back due to financial constraints. In 2006, M Karunanidhi promised free colour televisions, subsidised rice and gas stoves. By 2011, the DMK and AIADMK were competing with promises of mixers, grinders, fans, laptops and other welfare benefits.
According to a report by Crisil, 17 of 28 states and a union territory (NCT Delhi) are providing monthly cash transfers this fiscal, up from just four in 2019. The report notes that such transfers, alongside central welfare measures, can support household consumption amid inflation risks from high energy prices and El Niño. Key central benefits include free foodgrain, PM-Kisan cash transfers to farmers and rural employment under the VB-G RAM G scheme. However, the growing fiscal burden is raising concerns. State gross market borrowings rose 15.2 per cent to Rs 12.4 lakh crore in fiscal 2026. Twelve states offering cash transfers recorded double-digit growth in market borrowing.
A Promise Yet to Materialise
Trumps payout is the fourth time a promise is being made. However, none have been paid out earlier. In 2025, Trump and Elon Musk discussed a USD 5000 DOGE dividend using savings generated through the Department of Government Efficiency. Later, Trump suggested using revenue from new tariffs to provide USD 2000 rebate cheques to middle- and lower-income Americans. Then the administration also backed a plan to deposit between USD 1000 and USD 1500 annually into Americans’ Health Savings Accounts. The proposal failed to materialise after Congress did not pass the legislation.
“Imitation is the sincerest of flattery,” said Charles Caleb Colton, an English cleric and writer. Well, Trump’s offer to the Americans is a flattering tribute to the original innovators of welfare politics.
