US President Donald Trump said the American government will send a one-off payment of $90 to more than 20 million elderly citizens enrolled in the Medicare health insurance programme.
The decision is intended to help cover monthly costs for health insurance premiums, Reuters reports.
The funds will be allocated from the Medicare Improvement Fund, to which Congress previously directed $2bn. The White House website said that most pensioners will receive the money via direct bank transfer as early as the beginning of October. Those without a linked bank account will be sent paper cheques by post to the address registered in the system.
The announcement is Trump’s latest financial pledge ahead of the November US midterm elections. At present, the Republican Party holds a narrow majority in the Senate and the House of Representatives. At the same time, Trump’s approval ratings remain low amid voters’ concerns about the high cost of living.
- Previously, Trump proposed paying $5,000 to every adult US citizen if Republicans retained control of Congress, but analysts and economists were sceptical about the idea.
- In addition, the administration is separately sending $500 to nearly one million Americans as compensation for excessive fees charged when purchasing health insurance under the Affordable Care Act programme.