On July 29, 2025, Senator Josh Hawley (R-Mo.) introduced the American Worker Rebate Act, a bill to distribute at least $600 to eligible American adults and dependent children using revenue from President Donald Trump’s tariffs. The legislation, inspired by Trump’s suggestion of a “little rebate” for lower-income Americans, aims to offset rising costs from tariffs, which generated $27 billion in June alone, a 301% increase from 2024. A family of four could receive $2,400, with potential for larger payouts if tariff revenue exceeds the projected $150 billion for 2025. The rebate, structured as a refundable tax credit, would phase out for joint filers earning over $150,000, heads of households above $112,500, and individuals exceeding $75,000, reducing payments by 5%.
Modeled after the 2020 CARES Act’s $1,200 stimulus checks, the bill has sparked debate. Supporters, including Hawley, argue it returns wealth to Americans hit by Biden-era economic policies. Critics, like Senator Rand Paul, call it “ridiculous” amid a $37 trillion national debt, warning that the $141 billion cost could fuel inflation, as seen with 2020-2021 stimulus checks contributing to a 9% peak in 2022. The Tax Foundation estimates Trump’s tariffs could raise household costs by $1,300 in 2025. Despite Republican majorities, House Speaker Mike Johnson’s skepticism, after rejecting a similar DOGE dividend, suggests challenges ahead. The bill awaits Senate Finance Committee review, with no co-sponsors yet.
