Senate Democrats would ideally end their government shutdown quickly, vote to reopen the government, and fund troop paychecks and nutrition assistance for women and children. Similarly, it would be preferable if President Donald Trump ended his tariff battle so farmers would not need a bailout. But no matter how these underlying issues are resolved, what should not happen is that tariff revenues be used as a slush fund for Trump administration priorities without congressional approval.
Setting aside other economic effects from Trump’s tariffs, the Treasury Department has collected $118 billion more in customs duties so far this year than last year. It is estimated that Trump’s tariffs will raise $180 billion by the end of the year. This has reduced overall federal deficits for the first time in decades.
But deficit reduction achieved by tariffs is possible only because increased revenue is not spent. Trump, however, is looking to spend tariff revenue on various domestic priorities and trying to do so without approval from Congress.
EDITORIAL: TRUMP’S RIGHTEOUS FIGHT AGAINST A UN CARBON TAX
Farmers, particularly soybean farmers, face tens of billions of dollars in losses because they have lost markets, and fertilizer and farm equipment now cost more. Trump has repeatedly promised farmers bailouts using tariff revenues, and his administration bailed out farmers during his first term when he started a similar but smaller trade war against China. But the funds from that bailout came from the authorized Commodity Credit Corporation, which currently does not have sufficient funds to meet the payments Trump is considering.
Separately, Vice President JD Vance says Trump will continue to pay members of the armed services despite the government shutdown, also with tariff revenue. “The tariffs have also given us a little bit of financial flexibility so that we can keep on as many essential services as possible, including, most importantly, paying the troops,” Vance said Sunday. So far, the Office of Management and Budget has tapped military research and development funding to keep military paychecks in the mail, but those funds are running low.
White House press secretary Karoline Leavitt has said that tariff revenues could also fund the Special Supplemental Nutrition Program for Women, Infants, and Children during the government shutdown. “The Democrats are so cruel in their continual votes to shut down the government that they forced the WIC program for the most vulnerable women and children to run out this week,” Leavitt told reporters. “Thankfully, President Trump and the White House have identified a creative solution to transfer resources from Section 232 tariff revenue to this critical program.”
These “creative solutions” are illegal. Tariff revenue flows directly to the Treasury just like income tax revenue. It is not siphoned off into some special account that presidents can spend however they see fit. Trump may have a strong constitutional case in which he is allowed to impound congressionally authorized spending that he believes is unnecessary or wasteful, but he has no legal authority to spend money beyond what Congress has appropriated. Congress has not appropriated money for farmer bailouts, or, thanks to the shutdown, for troops and women with children.
EDITORIAL: TRUMP DEFTLY HOLDS ISRAEL CEASEFIRE TOGETHER
The Trump administration has every right to score political points by attributing blame properly to the Democratic Party for the shutdown, and can say Democrats could reopen the government, pay the troops, and feed needy women and children anytime they want by voting for the clean continuing resolution that Senate Majority Leader John Thune (R-SD) has brought to the floor more than 10 times. Democrats have voted it down every time.
But what the Trump administration cannot do is use tariff revenue, revenues that lower the federal deficit, as a slush fund.
