Texas Congressman Proposes Tariff Plan to Address National Debt

Feature and Cover Texas Congressman Proposes Tariff Plan to Address National Debt

Texas Congressman Nathaniel Moran has proposed new legislation to direct surplus tariff revenues into a trust fund dedicated to reducing the national debt, which currently stands at $37 trillion.

Texas Representative Nathaniel Moran is introducing a novel approach to tackling the United States’ national debt by leveraging tariff revenues. His proposed legislation, known as the Tariff Revenue Used to Secure Tomorrow (TRUST) Act, aims to funnel billions in new trade revenues into a dedicated trust fund focused solely on reducing the country’s staggering $37 trillion national debt.

The TRUST Act would create a special account at the Treasury Department, termed the Tariff Trust Fund. Beginning in fiscal year 2026, any tariff revenue collected above the baseline level established in 2025 would automatically be allocated to this fund. By law, these funds would be restricted to one purpose: reducing the federal deficit whenever the government finds itself in the red.

“President Trump’s bold use of tariffs has already proven effective in bringing foreign nations back to the negotiating table and securing better trade deals for America,” Moran stated in an interview with Fox News Digital. “That short-term success has produced record-high revenues, and now we need to make sure Washington doesn’t squander them.” He emphasized that the TRUST Act ensures these funds are directed where they are most needed—toward alleviating the national debt and safeguarding the financial future of the nation.

Moran’s initiative comes on the heels of a significant increase in tariff revenues, with the U.S. collecting over $31 billion in August alone, marking the highest monthly total for 2025 to date. According to data from the Treasury Department, total tariff revenue for the year has surpassed $183.6 billion as of August 29.

The rise in tariff revenues has been notable, increasing from $17.4 billion in April to $23.9 billion in May, and further climbing to $28 billion in June and $29 billion in July. If this trend continues, the U.S. could potentially collect as much tariff revenue in just four to five months as it did during the entirety of the previous year. In comparison, tariff revenues at this point in fiscal year 2024 stood at $86.5 billion.

This surge in revenue coincides with a recent federal appeals court ruling that determined President Donald Trump overstepped his authority by using emergency powers to impose extensive global tariffs. The court’s decision, issued on August 29, clarified that the power to set such tariffs resides with Congress or within existing trade policy frameworks. However, the ruling does not affect tariffs imposed under other legal authorities, including Trump’s tariffs on steel and aluminum imports.

Attorney General Pam Bondi has announced that the Justice Department plans to appeal this decision to the Supreme Court, while the court has allowed the tariffs to remain in place until October 14.

Treasury Secretary Scott Bessent previously indicated that the Trump administration could allocate a portion of the tariff revenue toward reducing the national debt. As of September 3, the national debt had reached approximately $37.4 trillion, a figure that has intensified discussions in Washington regarding government spending, taxation, and measures to control the growing deficit.

“Complacency is no longer an option. We must act with urgency and begin to bring down our national debt immediately,” Moran added in his statement.

Bessent has also suggested that tariffs could generate more than $500 billion in revenue for the federal government. While U.S. businesses are responsible for paying these import taxes, the economic burden often shifts to consumers, as companies typically raise prices to offset the costs.

Source: Original article

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