President Donald Trump has floated the idea of issuing rebates funded by worldwide tariffs, sparking renewed debate over the return of stimulus checks. The concept emerged following significant tariff revenues reported earlier this year, though few specifics have been made public.
According to USA Today, Trump briefly mentioned the possibility of a rebate during comments in late July, but no formal policy details were released at that time. In response, a new bill has been introduced in Congress, aiming to define the structure and potential distribution of these payments. So far, the scope, timeline, and eligibility for stimulus checks remain unclear.
New Tariffs Raise $100 Billion, Rebate Floated as Possibility
On July 25, ahead of a scheduled trip to Scotland to discuss a potential trade agreement with the United Kingdom, Trump hinted at a potential rebate tied to new global tariffs introduced earlier this year.
We have so much money coming in, we’re thinking about a little rebate – Trump said.
These tariffs, officially announced on April 2, have already generated over $100 billion, according to the White House. Trump has not shared specific rebate details but mentioned that they would apply to Americans below certain income thresholds. Approval from Congress would be required to implement any such rebate.
Hawley Introduces the American Worker Rebate Act of 2025
In response to Trump’s remarks, Senator Josh Hawley of Missouri introduced the American Worker Rebate Act of 2025. The bill proposes direct payments of at least $600 per individual, with a maximum of $2,400 for a family of four.
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 news release.
If tariff revenues exceed 2025 projections, the law includes provisions to increase the size of these payments. This effort echoes previous rounds of stimulus checks, like those issued during the COVID-19 pandemic.
Treasury Forecasts and Economic Trade-Offs
U.S. Treasury Secretary Scott Bessent has estimated that tariff revenue could hit $300 billion annually. While this would significantly increase federal income, economists warn of negative consequences. Without favorable trade deals with major partners like Canada and Mexico, consumers could face higher prices, reduced purchasing power, and inflationary pressure.
Hawley’s legislation includes income phase-outs: joint filers with adjusted gross incomes above $150,000 and individuals earning over $75,000 would see their rebate reduced by 5%. These thresholds mirror the structure of previous stimulus checks while shifting the funding source to tariff-generated revenue rather than government borrowing.
Mixed Response in Congress and Budgetary Concerns
The legislation has been formally referred to the Senate Finance Committee. To become law, it must pass both chambers of Congress before the end of the current congressional calendar. If not, it will need to be reintroduced in a future session.
Many lawmakers remain skeptical, particularly among Republicans focused on fiscal restraint. Senator Ron Johnson of Wisconsin voiced strong opposition:
People love spending money and granting new tax cuts when we can’t afford it. We’re $37 trillion in debt and running $2 trillion a year deficits – some time, this madness just has to end.
The cost comparison is particularly relevant as the stimulus checks distributed during the COVID-19 pandemic cost the government an estimated $164 billion. Issuing new rebates would divert a substantial portion of tariff revenue back to taxpayers at a time when Trump has stressed the need to reduce the deficit.
The big thing we want to do is pay down debt – Trump said in July.
But we’re thinking about rebates.
How Rebates Differ From Stimulus Checks
While often discussed in the same context, tax rebates and stimulus checks are structurally different. A rebate is typically a refund on taxes already paid, issued mid-year or at filing. A stimulus check, in contrast, is a direct cash payment from the federal government, meant to stimulate economic activity during downturns or periods of financial stress.
Hawley’s bill blurs that distinction slightly by structuring the rebate to function like a stimulus check, though its funding comes from tariff revenue rather than deficit-financed relief programs.
