Tariff Revenue Used to Secure Tomorrow Act; TRUST Act
Summary
H.R. 5153, the Tariff Revenue Used to Secure Tomorrow Act (TRUST Act), proposes establishing a Tariff Trust Fund within the Treasury. This fund would receive tariff revenues exceeding those collected in fiscal year 2025, provided the US maintains a budget deficit in fiscal years 2026 and beyond.
The funds deposited would then be transferred to the Treasury's general fund and used exclusively for deficit reduction.
The Act aims to address the national debt by leveraging increased tariff revenues during periods of budget deficits.
Expected Effects
If enacted, the TRUST Act would create a mechanism to channel excess tariff revenue towards reducing the national debt. This could lead to a decrease in the budget deficit, potentially improving the nation's fiscal health.
However, the actual impact depends on the level of tariff revenues collected and the government's overall fiscal policy.
Potential Benefits
- Potentially reduces the national debt by allocating excess tariff revenues to deficit reduction.
- Could improve the nation's fiscal health and stability.
- Provides a dedicated funding source for deficit reduction, promoting fiscal responsibility.
- May lead to lower interest rates on government borrowing in the long term.
- Could free up resources for other government programs by reducing debt servicing costs.
Most Benefited Areas:
Potential Disadvantages
- Relies on the continuation of budget deficits to trigger the fund's operation.
- The amount of deficit reduction depends on tariff revenue, which can fluctuate.
- May incentivize increased tariffs to generate more revenue for the fund.
- The funds are not directed to specific programs or needs, only general deficit reduction.
- Potential for unintended consequences if tariff policies are altered to maximize fund contributions.
Constitutional Alignment
The bill aligns with the constitutional power of Congress to levy taxes and duties, as outlined in Article I, Section 8. The establishment of a trust fund and the allocation of funds for deficit reduction fall within Congress's authority to manage the nation's finances.
However, the bill's reliance on tariff revenue could raise concerns about potential impacts on international trade and the overall economy, which are also subject to constitutional considerations.
The bill does not appear to infringe on any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).