A new proposal aims to revive stimulus checks to give Americans more financial relief.
U.S. Sen. Josh Hawley, R-Missouri, introduced the American Worker Rebate Act in July. The plan would send rebate checks funded by revenue generated from President Trump’s tariff policies.
“Americans deserve a tax rebate after four years of Biden policies that have devastated families’ savings and livelihoods. Like President Trump proposed, my legislation would allow hard-working Americans to benefit from the wealth that Trump’s tariffs are returning to this country,” Hawley said in a statement.
For millions of Americans, the idea of direct payments from the federal government still brings memories of the pandemic-era stimulus checks that helped households navigate uncertain times. Now, a new proposal is gaining attention in Washington, D.C. that could revive the concept of stimulus-style rebates, this time linked to U.S. tariff revenues. U.S. Senator Josh Hawley of Missouri has introduced the American Worker Rebate Act, a measure that would redirect billions collected from tariffs into the hands of American families.
This proposal is being hailed by its supporters as a way to ensure that tariff revenues—currently at near-record highs—flow directly to working families rather than being absorbed by the federal budget. Opponents, however, question whether such rebates are sustainable or the most effective use of tariff income.
The debate touches on economics, trade policy, household relief, and political positioning in an election cycle. Let’s break down what the American Worker Rebate Act means, who it could benefit, and how it compares to past stimulus checks.
Background of the Proposal
Senator Josh Hawley introduced the American Worker Rebate Act in July 2025, framing it as a way to provide immediate relief for American households struggling under inflation, rising interest rates, and lingering financial pressure from recent years.
The bill proposes that revenues collected from tariffs—primarily on Chinese imports—be repurposed into direct checks for American families. Hawley argues that these revenues, which he attributes to policies initiated during the Trump administration, should return to taxpayers rather than expanding federal government programs.
Key Features of the American Worker Rebate Act
Eligibility and Amounts
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Each qualifying adult would receive a minimum of $600.
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Each dependent child would also qualify for a $600 rebate.
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A family of four could receive up to $2,400 in direct payments.
Income Limits
Payments would be reduced or phased out based on income thresholds:
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$75,000 for individuals
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$112,500 for heads of households
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$150,000 for married couples filing jointly
Potential for Larger Payments
If tariff revenues exceed projections, rebate amounts could be increased in the future.
Current Tariff Revenue Landscape
The U.S. is currently collecting nearly $30 billion per month in tariffs. Annual projections suggest that revenues could top $150 billion in 2025. This represents some of the highest tariff revenue figures in American history.
Table: Monthly and Annual U.S. Tariff Revenue Projections
| Month | Estimated Revenue (in billions) | Annualized Projection |
|---|---|---|
| January 2025 | $28.7 | $150+ |
| February 2025 | $29.3 | $150+ |
| March 2025 | $30.1 | $150+ |
| April 2025 | $29.8 | $150+ |
| May 2025 | $30.2 | $150+ |
| June 2025 | $30.5 | $150+ |
Note: Projections are rounded and subject to change based on trade flows and tariff enforcement.
Comparison to Past Stimulus Payments
Americans are no strangers to direct government payments. During the COVID-19 pandemic, three rounds of stimulus checks were distributed:
Table: Historical U.S. Stimulus Payments
| Payment Round | Date Issued | Amount per Adult | Amount per Child |
|---|---|---|---|
| First | April 2020 | Up to $1,200 | $500 |
| Second | December 2020 | Up to $600 | $600 |
| Third | March 2021 | Up to $1,400 | $1,400 |
The proposed Hawley checks would mirror the second round of pandemic stimulus in amount ($600 per adult, $600 per child), but with a key distinction: they would be funded by tariff revenues, not by federal deficit spending.
Economic and Political Motivations
Economic Relief for Families
With inflation still pressuring household budgets, Hawley’s plan seeks to provide families with immediate cash support. Rising costs of groceries, housing, and childcare remain among the top concerns for middle-income families.
Political Positioning
The proposal also draws heavily from former President Trump’s trade policies, aiming to connect financial relief to tariffs on imports, particularly from China. This positions Hawley as both a populist champion of working families and a defender of Trump-era trade strategies.
Potential Benefits of the Rebate Program
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Direct Relief: Families receive immediate cash without navigating complicated tax credits or benefits programs.
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Fair Redistribution: Revenues from tariffs—essentially a tax on foreign goods—are returned to Americans rather than kept in federal accounts.
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Flexibility: Payments could be scaled upward if tariff revenues exceed expectations.
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Political Appeal: The plan resonates with voters who previously benefited from pandemic stimulus checks.
Concerns and Criticisms
While the plan has its supporters, critics raise several concerns:
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Economic Sustainability: Tariff revenues fluctuate with trade volumes. A drop in imports could reduce the funds available for rebates.
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Inflationary Effects: Some economists argue that injecting more cash into households could further fuel inflation.
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Trade Impact: Heavy reliance on tariffs could strain U.S. trade relations and potentially raise prices for consumers.
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Political Timing: Opponents may see the proposal as politically motivated, particularly in the run-up to the 2026 election cycle.
Who Stands to Benefit the Most?
Middle- and lower-income families would be the largest beneficiaries, especially those with multiple dependents. For example:
Table: Potential Family Rebates Under the Act
| Household Type | Number of Adults | Number of Children | Total Rebate |
|---|---|---|---|
| Single adult | 1 | 0 | $600 |
| Married couple | 2 | 0 | $1,200 |
| Married couple with one child | 2 | 1 | $1,800 |
| Married couple with two children | 2 | 2 | $2,400 |
| Single parent with two children | 1 | 2 | $1,800 |
The Bigger Picture: Tariffs and American Families
Tariffs are often viewed as an indirect tax on consumers, since companies paying tariffs on imports may pass costs along in higher prices. By redirecting tariff revenues into rebates, Hawley’s plan seeks to counterbalance those costs and ensure families directly see the benefit.
However, experts remain divided on whether this redistribution fully offsets the hidden price hikes families face when buying imported goods.
Looking Ahead
If the American Worker Rebate Act gains traction in Congress, it could set a new precedent for how tariff revenues are used. Instead of funding government operations, those dollars could flow straight back to households.
Still, passage is far from guaranteed. Lawmakers will debate whether this is the best use of tariff revenue, or whether funds should instead go toward deficit reduction, infrastructure, or other national priorities.
Conclusion
The American Worker Rebate Act represents a bold attempt to revive the stimulus check model while tying it to tariff revenue streams. For American families, especially those struggling to keep up with rising costs, the promise of $600 per adult and per child could mean meaningful relief. For policymakers, the debate highlights deeper questions about trade policy, fiscal responsibility, and the role of government in providing direct financial assistance.
As the U.S. economy continues to evolve, the conversation around stimulus-style rebates will likely remain at the forefront of political and economic discourse. Whether Hawley’s plan succeeds or not, it has reignited national discussion on how to best leverage government resources to support working families.
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