Turning Tariffs into Debt Reduction: Rep. Moran’s Innovative Approach

In a bold legislative move addressing America’s mounting national debt crisis, Texas Representative Nathaniel Moran has introduced the Tariff Revenue Used to Secure Tomorrow (TRUST) Act. This groundbreaking proposal aims to redirect the recent surge in tariff revenue directly toward paying down America’s staggering $37.4 trillion national debt. As tariff collections reach historic highs under the Trump administration, Moran’s legislation offers a practical solution to one of America’s most pressing financial challenges by creating a dedicated mechanism to ensure these unexpected windfalls benefit future generations rather than disappearing into general government spending.

The TRUST Act would establish a specialized Tariff Trust Fund within the Treasury Department, functioning as a financial firewall between tariff revenues and congressional spending habits. Beginning in fiscal year 2026, any tariff revenue exceeding the 2025 baseline would automatically flow into this dedicated fund. The legislation includes strict guardrails ensuring these funds can only be used for one purpose: reducing the federal deficit when the government is operating 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 explained to Fox News Digital. “That short-term success has produced record-high revenues, and now we need to make sure Washington doesn’t squander them.” His legislation represents a pragmatic approach to ensuring these unexpected revenues serve America’s long-term financial interests rather than enabling additional government expenditures.

The timing of Moran’s proposal coincides with an unprecedented surge in tariff collections that has caught the attention of fiscal conservatives and debt hawks alike. August 2025 saw more than $31 billion in tariff revenue flow into federal coffers—the highest monthly total of the year. The cumulative tariff revenue for 2025 has already reached an impressive $183.6 billion according to Treasury Department data. The monthly increases have been dramatic and consistent: from $17.4 billion in April to $23.9 billion in May, climbing to $28 billion in June, and reaching $29 billion in July. At this remarkable pace, the government could collect in just four to five months what it previously collected in an entire year. For comparison, at this same point in fiscal year 2024, tariff revenues stood at just $86.5 billion—less than half the current amount. This extraordinary revenue stream presents a rare opportunity to make meaningful progress against the national debt without raising taxes or cutting essential programs.

The legislative proposal emerges against a complex legal backdrop regarding presidential tariff authority. A recent federal appeals court ruling determined that President Trump had exceeded his authority by using emergency powers to implement broad global tariffs, asserting that such powers properly belong to Congress or must follow established trade policy frameworks. However, this ruling doesn’t affect tariffs imposed through other legal authorities, such as Trump’s duties on steel and aluminum imports. Attorney General Pam Bondi has announced plans to appeal the decision to the Supreme Court, and the court has allowed the current tariffs to remain in place through October 14. This legal uncertainty highlights the importance of establishing clear congressional direction for how these revenues should be handled, regardless of which specific tariffs ultimately remain in place.

Treasury Secretary Scott Bessent has previously indicated support for applying a portion of tariff revenue toward reducing the national debt, which now approaches $37.4 trillion. Bessent has suggested these tariffs could generate more than $500 billion for the federal government—a significant sum that could make measurable progress against America’s debt obligations if properly directed. While tariffs are technically paid by U.S. businesses importing goods, economists generally agree that much of this cost is passed along to consumers through higher prices. This reality makes it especially important that these revenues benefit the American public in meaningful ways rather than simply expanding government spending. “Complacency is no longer an option,” Moran emphasized in his statement introducing the legislation. “We must act with urgency and begin to bring down our national debt immediately.”

The TRUST Act represents a rare opportunity for bipartisan cooperation on fiscal responsibility. Rather than debating whether tariffs themselves are good policy, Moran’s legislation sidesteps that contentious question and focuses instead on ensuring that whatever tariff revenue does materialize is put toward an objective that benefits all Americans: reducing the crushing debt burden that threatens future prosperity. By creating a dedicated mechanism that automatically directs these funds toward debt reduction, the legislation could help overcome the political inertia that has allowed the national debt to balloon for decades. Whether one views tariffs as essential to restoring American manufacturing or as taxes that increase consumer costs, channeling these revenues toward addressing America’s fiscal imbalance offers a pragmatic compromise that serves the long-term national interest while acknowledging the reality of today’s trade policies.