Headlines implying Americans could get $5,000 to shop under new bill are misleading

In 2022, the average American spent $72,967 in goods and services. That is a 9% increase from 2021, according to data from the Bureau of Labor and Statistics. Due to inflation and various other factors, prices have been on the rise for the average consumer.

So when headlines and social media posts claimed that under a new bill, Americans could get $5,000 to shop, it seemed too good to be true. 

The VERIFY team looked into whether  U.S. shoppers could actually receive cash to shop with the passage of new legislation. 

THE QUESTION

Does a proposed bill give Americans $5,000 to shop?

THE SOURCES

• Press release from Rep. Debbie Dingell (D-Mich.)
• X post by Rep. Ro Khanna (D-Calif.)
• Federal Trade Commission

THE ANSWER

No, a proposed bill doesn't give Americans $5,000 to shop, as headlines and social posts appear to imply.

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WHAT WE FOUND

Americans wouldn’t receive $5,000 just to shop under the Made in the USA Tax Credit Act, which was introduced in the House on Feb. 26 by Democratic congress members Ro Khanna of California and Debbie Dingell of Michigan. 

The Made in the USA Tax Credit Act would allow Americans to file for a tax credit, also known as a tax incentive, for purchasing certain products that have been made in the U.S.

The Made in the USA Tax Credit Act would allow individuals to file for a tax credit of up to $2,500, or $5,000 for couples filing jointly, according to a press release from Dingell’s office and an X post from Khanna.

In order to be eligible to receive the tax credit, the goods purchased must meet the Federal Trade Commission’s “Made in the USA” standard, the release said. Traditionally, the Commission has required that a product advertised as Made in the USA be “all or virtually all” made in the U.S., according to the FTC.

Luxury goods, tobacco products, firearms, vehicles, fuel, services, food and non-depreciable property would be disqualified from the tax credit, according to Dingell’s press release.

The bill, which has not yet passed, would only apply to any individual (other than dependents) making less than $125,000 and with less than $20,000 in investment income or couples filing jointly making less than $250,000 and with less than $40,000 in investment income, the release says. 

VERIFY reached out to Dingell and Khanna’s office for more information on what a consumer would need to provide in order to receive the tax credit if the bill passes. The bill is currently in committee.

So, we can VERIFY Americans will not be receiving $5,000 in cash for shopping. The proposed legislation is a tax credit limited to individuals who meet the qualifications.