Bessent: ACA Funding Redirection Plans Not Yet Formalized | AM 740 KVOR

White House Yet to Submit Formal Proposal for Trump’s Tariff Revenue Idea, Says Treasury Secretary

Scott Bessent, the Treasury Secretary, denied on Sunday that the White House has a formal proposal to distribute federal funds, derived from tariffs on foreign goods, to health insurance companies under the Affordable Care Act (ACA), even though President Donald Trump had hinted at such a plan in a recent social media post.

“There is no formal proposal as of yet, but I have observed Democrats often attaching misleading titles like the Affordable Care Act or the Inflation Reduction Act to their bills, with the reality of their effects being quite the opposite,” stated Bessent during his appearance on ABC News’ “This Week.”

Bessent further added, “Take the Affordable Care Act for instance, it has become anything but affordable, and the Inflation Reduction Act resulted in triggering the highest inflation in the last five decades.”

Government Reopening Precedes Any Action

Bessent also shared that despite Trump’s ideas gaining traction on Truth Social, the government would need to be reopened before any moves could be made. He firmly stated, “Negotiations with the Democrats will not take place until the government is back in operation. It is straightforward — reopen the government, and we can start our discussions.”

In a post on Truth Social, Trump suggested on Sunday that tariffs on foreign goods could yield “a dividend of at least $2,000 a person (excluding high-income individuals),” which would be disbursed to everyone. He began his post by declaring, “People opposing Tariffs are FOOLS!”

Tariffs and Trade Rebalance

Responding to Trump’s remarks, Bessent said that while tariffs initially resulted in a spike in government revenue, the long-term aim is to “rebalance trade” by reviving U.S. manufacturing. He believed such a rearrangement would eventually decrease tariff revenue but increase tax receipts. He explained, “It’s not about accumulating revenue. It’s about achieving balance.”

When prodded about Trump’s “dividend” idea, Bessent shared that he had not discussed it with the president but hinted that it could take a variety of forms. “The $2,000 dividend could be realized through a multitude of channels,” he suggested, adding it could take shape through tax relief measures like Trump’s proposed elimination of taxes on tips and overtime pay.

Trump’s Tariff Policy in Court

Last week, the Trump administration defended its tariff policy before the Supreme Court, asserting the president’s legal authority to impose tariffs on foreign goods. Critics, however, argue that the tariffs function as a tax on American businesses and consumers and that Trump has overstepped Congress’s constitutional power to tax.

For more information, click here to read more at Newsmax.com.