U.S. Senator Josh Hawley (R-Mo.) introduced the American Worker Rebate Act on Monday, a bill designed to provide tariff rebate checks of at least $600 to every eligible American adult and dependent child.
The legislation, inspired by President Donald Trump’s recent comments supporting tariff-funded rebates, aims to return revenue generated from Trump’s trade policies directly to working families, mirroring the structure of COVID-era stimulus checks.
Hawley’s proposal follows President Trump’s statement on July 25, 2025, where he expressed interest in using the record-breaking tariff revenue—reportedly over $100 billion in the first half of 2025, including $27 billion in June alone—to fund rebates for Americans.
“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.
The senator, who previously collaborated with Sen. Bernie Sanders (I-Vt.) on stimulus check legislation in 2020, emphasized the need for immediate tax relief for working families.
The American Worker Rebate Act structures the rebates as a refundable tax credit, ensuring checks could be distributed as early as this year if the bill passes Congress and is signed into law by President Trump.
Key features of the legislation include:
- A minimum payment of $600 per adult and dependent child, meaning a family of four could receive at least $2,400.
- Provisions for larger rebates if tariff revenue exceeds projections, with estimates suggesting up to $150 billion in 2025 alone.
- Income-based phase-outs, reducing the rebate by 5% for individuals earning over $75,000, heads of households earning over $112,500, and joint filers earning over $150,000.
The bill draws on the success of the 2020 stimulus checks, which Hawley co-authored with Sanders, to provide financial relief during economic hardship.
“Americans deserve a tax rebate after four years of Biden policies that have devastated families’ savings and livelihoods,” Hawley stated, highlighting the bill’s goal to offset potential price increases linked to tariffs.
Economic Context and Challenges
The Treasury Department reported a significant uptick in customs duties, with June 2025 alone generating $27 billion, a $4 billion increase from May.
The Tax Foundation projects that Trump’s tariffs could yield $2.5 trillion over the next decade but warns of higher consumer prices, estimating an effective tax increase of $1,300 per household in 2025 and $1,700 in 2026.
Critics argue that rebates could exacerbate inflation, as seen with the 2020 and 2021 stimulus checks, which contributed to a 41-year inflation high of over 9% in June 2022, according to the Federal Reserve Bank of St. Louis.
Despite these concerns, Hawley’s bill aims to mitigate the financial burden of tariffs on American families while capitalizing on the revenue windfall.
The legislation aligns with Trump’s vision of redistributing tariff proceeds, though the president has also emphasized using the funds to reduce the national debt, currently exceeding $36 trillion.
Legislative Hurdles Ahead
The American Worker Rebate Act faces significant obstacles in Congress.
House Speaker Mike Johnson (R-La.) previously dismissed a similar proposal for “DOGE dividend” checks tied to savings from the Department of Government Efficiency, which fell short of projected $2 trillion in savings.
Johnson’s skepticism and the departure of Elon Musk from the Trump administration in May 2025 could complicate the bill’s path forward.
Additionally, bipartisan efforts to curb Trump’s tariff authority, such as the Trade Review Act of 2025, indicate congressional unease with the economic impacts of the tariffs.
For the bill to become law, it must pass both the House and Senate, where Republican majorities may ease its progress but are not guaranteed to secure its approval.
Economists remain divided on the rebates’ impact, with some, like Joseph Brusuelas of RSM US, suggesting they implicitly acknowledge tariffs’ inflationary effects on consumers.
Hawley’s American Worker Rebate Act represents a bold effort to channel tariff revenue into direct financial relief for Americans, echoing the populist appeal of his earlier stimulus collaboration with Sanders.
As the bill navigates Congress, its success will hinge on balancing economic stimulus with concerns over inflation and deficit growth.
For now, it stands as a testament to Hawley’s commitment to working-class families and Trump’s trade-driven economic agenda.
Also Read: Economists Now Say Prices Will Continue To Rise, “This Is Just The Beginning”
Visit the Homepage for our extensive library of news, or read news for you below.
About The Author
