Sen. Rand Paul, the Kentucky Republican known for his fiscal‑hawk stance, told Fox News Digital on Thursday that the federal government’s soaring $40 trillion debt is “out of control” and that both parties have failed to curb spending. Paul’s comments come as President Trump recently floated a proposal at the Republican midterm convention in Dallas, Texas, to issue a $5,000 payment to every American adult if Republicans win both chambers of Congress in the upcoming midterms. The president called the idea the “Trump dividend.”
Paul’s fiscal concerns
Paul warned that the nation is “running $2 trillion short” and said he cannot imagine giving out money while the budget is in deficit. He explained that the debt not only threatens future financial stability but also erodes the purchasing power of everyday Americans, “stealing the value” of their earnings.
“It is literally out of control,” Paul said, adding that both parties are reluctant to tell the public that some government programs would need to be reduced to balance the books.
Proposed spending cuts
To address the fiscal imbalance, Paul outlined a five‑year plan that would cut federal spending by about 6 % annually, a shift from his earlier “one‑penny” proposal of a 1 % cut. He said the plan would rely on economic growth to increase revenue, allowing the budget to balance without eliminating all programs. While Social Security would be protected, Paul suggested that Medicare could be trimmed by 6 % without cutting health benefits, citing waste and fraud in the program and proposing means‑testing as a tool for further savings.
Trump’s dividend rationale
President Trump introduced the $5,000 dividend as a way to put money directly into the hands of Americans, arguing that it would boost consumer confidence and stimulate the economy ahead of the midterm elections. The administration has not yet provided a detailed funding source for the proposal, and a White House comment request went unanswered.
Political implications
Paul, who ran for president in 2016 and is reportedly weighing a 2028 bid, emphasized the need for a Republican candidate who supports free‑market principles, international trade, and limited government. “I’d say we’re 50‑50,” he said about a potential run, adding that he does not want “four populists” competing for the nomination.
He warned that the dividend proposal could set a dangerous precedent of spending money the government does not have, further inflating the debt and burdening future generations.
Looking ahead
As the midterm elections approach, the debate over fiscal responsibility versus direct cash payments is likely to intensify. Paul’s warning underscores a broader concern among some conservatives that unchecked deficit spending could undermine the nation’s economic foundation, while the Trump administration continues to promote policies it believes will energize voters and spur growth.
Original reporting: Fox News (HLL/CB) — read the source article.
