As campaigning for the 2026 midterm elections kicks up, President Donald Trump has pledged to send every American adult $5,000 if Republicans retain control of the House and Senate this November.
Treasury Secretary Scott Bessent promises the checks will be delivered without adding to the national deficit, an economic policy Kabuki Theater, possibly paid for with visa fees.
Senate Republicans are not so sure. And they’re right to be. The Federal Reserve just hiked interest rates by a quarter of a percentage point because of persistent inflation. A new round of stimulus checks would only exacerbate this problem.
If we are to learn any lessons from 2020, it is that stimulus spending caused the inflation we are still fighting today. Short-term stimulus spending, particularly in such a broadly distributed way, can prevent upticks in unemployment, household bankruptcy, and medical and credit card debt in times of emergency. But it should be done so sparingly amid serious wars or epidemics, not for political gain.
The COVID-19 pandemic was over half a decade ago at this point, but its lingering effect on our economy remains. Grocery bills, for example, remain noticeably high after 6 years at 33%, which averages at 5.5% annually, vastly higher than the expected 2% to 3% annual inflation. From the housing market to healthcare insurance premiums, prices are up, and people are noticing. Voters consistently highlight inflation and the cost of living as the most important issues heading into the midterm elections.
While the president is right to turn his attention to the economy, stimulus checks are the wrong solution. Republicans will never beat Democrats at their own game of government handouts. No check will match the Democratic Socialists of America’s litany of “free” promises, from universal healthcare to public transit.
Rather, the president and Republicans in Congress should fix the underlying impediments to big-picture economic growth. This includes bringing regulatory stability to emerging tech markets — such as artificial intelligence and cryptocurrency — while continuing to rein in spending and excess taxation.
In recent news, tech companies and everyday people alike are increasingly seeking action on establishing a federal framework for AI regulation. Similar work for crypto is stalled, as the CLARITY Act recently failed in the Senate. Taking up negotiations on these critical pieces of legislation can bring regulatory certainty to some of the highest-growth sectors in our modern economy.
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And Republicans don’t have to stop there. They should also seek urgent action to address the impact continued involvement in Iran has had on gas prices and establish strategic carve-outs from tariffs for home construction materials and other resources for infrastructure development.
The economy is in a dire moment, and the public is demanding action. But Republicans and the president shouldn’t veer off into the inflationary policies we’ve seen the by-product of so recently. They must do the hard work to beat the DSA. And that requires serious legislating, not stimulus checks.
Sam Raus is the David Boaz Resident Writing Fellow at Young Voices. Follow him on X: @SamRaus1.