Senator Josh Hawley of Missouri has introduced new legislation aimed at distributing tariff rebate checks to American households, a move inspired by recent remarks from President Donald Trump about using tariff revenues to give back to the public. The proposal, titled the American Worker Rebate Act of 2025, would send direct payments to U.S. families in a manner similar to the pandemic-era stimulus checks. According to Hawley, the legislation guarantees a minimum payment of $600 for each adult and each dependent child, amounting to $2,400 for a family of four, with the potential for larger checks if tariff revenue exceeds government estimates. Payments would gradually phase out for higher-income earners, beginning at $150,000 for joint filers and $75,000 for single filers.
Hawley emphasized that the purpose of the plan is to ensure American families see direct benefits from the tariffs that, according to the administration, are bringing in additional funds to the U.S. Treasury. The Treasury recently reported that in June alone, tariff collections reached about $27 billion, a sharp increase from $23 billion in May and more than triple the amount collected during the same month in 2024. However, critics, including some fiscal policy analysts, argue that rebate checks could worsen the federal budget deficit and may also add to inflationary pressures. They point out that tariffs often lead to higher costs for consumers and businesses, and rebate payments could prompt increased spending that pushes prices up even further. While President Trump has expressed support for the concept, the bill’s path through Congress remains uncertain, especially among budget-conscious Republicans wary of adding new expenditures at a time when a recent tax-and-spending package is projected to increase the deficit by trillions over the next decade.