Billionaire entrepreneur Mark Cuban has proposed that the Trump administration's expansion of health savings account (HSA) contributions constitutes a form of universal basic income (UBI), albeit one that went largely unnoticed by the public and media. Cuban recently expressed this viewpoint in a post on the social media platform X (formerly Twitter), where he highlighted the financial mechanism involved and its implications for lower-income Americans.
Specifically, Cuban referenced that eligible individuals under the Trump-era provisions could receive up to $3,000 annually in HSA contributions that are tax-advantaged. While these funds are intended for healthcare expenses, Cuban pointed out that if the money is used for non-medical purposes, it incurs a 20% penalty. Nonetheless, he emphasizes that this penalty still leaves recipients with roughly $200 per month in accessible cash. This liquidity element is why he considers the program functionally akin to a universal basic income for many low-income individuals, including those earning below the standard deduction threshold or with zero tax liability due to child tax credits.
As Cuban put it, "I think it’s interesting that the [Trump] administration offered a UBI program, hidden behind direct HSA contributions, and no one noticed." He further described this structure as a "soft safety net" for lower-income populations, providing financial support that resembles UBI even though it is not officially classified as such. He concluded with a note of surprise, stating, "I never thought we would see a UBI proposal. But here we are!"
Despite his overall endorsement of the approach from a financial assistance perspective, Cuban expressed reservations about the efficacy of using HSA contributions as a healthcare funding mechanism. He critiqued the policy on the grounds that "too little will actually be spent on healthcare," implying that recipients might divert funds away from intended medical purposes.
This interpretation and label of the HSA program as a form of UBI has sparked controversy and debate among commentators and political figures. For instance, 2024 Libertarian presidential candidate Lars Mapstead challenged Cuban's view, emphasizing that the government does not directly deposit $3,000 into accounts on individuals' behalf. According to Mapstead, the funds in HSAs typically originate from individuals or their employers, not from new government expenditures. He argued that describing the program as UBI misleadingly suggests fresh public spending when none is occurring and characterized the notion of receiving $200 monthly as an "$200/month framing" that misrepresents the reality.
Other critics noted that the HSA structure excludes a significant portion of the population, with around 40% of Americans ineligible for participation. One commentator described the arrangement as "reverse welfare for the comfortable," suggesting that it disproportionately benefits those already in relatively stable financial positions. Cuban responded in disagreement to this characterization, succinctly stating, "Wrong."
Additional skepticism came from John Asghar, a spine surgeon, who highlighted several practical constraints of the HSA program. He pointed out that eligibility criteria limit who can participate, contribution caps remain low, and enrollment requires a qualifying health insurance plan. Moreover, funds must be contributed in advance, and withdrawals for non-medical expenses trigger both taxes and a 20% penalty, reducing the incentive and accessibility for using the money like cash on hand.
Despite the criticisms and detailed challenges laying out why some regard the HSA contributions as non-comparable to a traditional UBI program, Cuban stood firm in his position, reiterating, "It is UBI. Just because they didn't know it could UBI, doesn't mean it's not UBI." He supported his argument by citing a PBS NewsHour segment that discussed the Republican approach to HSAs as an alternative to the Affordable Care Act (ACA). The segment explained that the plan shifts healthcare subsidies away from insurers and toward individuals by placing funds directly into HSAs, thereby granting individuals increased control over how they allocate their healthcare dollars.
The PBS NewsHour report also presented the Republican rationale that this policy aims to foster competition and reduce costs by transferring control from the government to individuals. Conversely, it noted critics' concerns that such a policy might destabilize the ACA marketplace and fail to address systemic issues within the U.S. healthcare system.
Clarifying his stance on HSAs, Cuban emphasized that he is not entirely opposed to them. Rather, his objection centers on the inefficiency and potential misuse of taxpayer funds when contributions intended for healthcare are unlikely to be spent on medical needs. He stated, "I’m opposed to taxpayers writing checks to help with healthcare costs, that won’t be used for healthcare."
When asked about his broader perspective on universal basic income, Cuban expressed explicit support for UBI directed at caregivers. He remarked, "I’m all for it for caretakers, taking care of parents or ill relatives," signaling his recognition of the societal value and burdens borne by those providing unpaid care.