Senate Republicans propose distributing $600 checks to Americans, drawing funding from tariff-generated income
In a bid to benefit hardworking American families, Senator Josh Hawley has introduced a bill called the American Worker Rebate Act. This legislation aims to redistribute a portion of the revenue collected from President Donald Trump's tariffs, by providing rebate checks directly to American families [1][2][3].
The bill proposes to deliver at least $600 per adult and dependent child, meaning a family of four could receive around $2,400 in rebate checks in 2025. The possibility of larger payments exists if tariff revenue exceeds current projections [1][2].
The proposed bill is motivated by the historic tariff revenue, which is projected to surpass $150 billion in 2025 alone. Hawley frames this as a way for American families to benefit from the tariff revenue generated under Trump's policies, especially given the economic difficulties faced by many families under the Biden administration [2][4].
To ensure fairness, the rebate amount phases out for higher-income filers: those with adjusted gross incomes above $75,000 (individuals), $112,500 (head of household), and $150,000 (joint filers) would receive reduced or no payments [3].
The tariffs, implemented by President Trump, have so far generated about $28 billion in revenue for the federal government in July 2025, breaking the monthly record. This amount is $1 billion higher than June's tariff revenue [3].
It is important to note that the economic incidence of tariffs is complex, with importers and consumers bearing tariff costs rather than exporters paying directly [3]. However, Hawley's bill could help to cancel out some of the additional cost from the White House's tariff strategy, providing a form of economic relief to American families.
The bill follows President Trump's suggestions of the possibility of rebate checks for Americans, and aligns with the $1,200 stimulus checks distributed during the COVID-19 pandemic [2][4]. Senate Democrats and tax experts have expressed concerns that Trump's tariff policies could effectively add another tax to consumers, with the cost of additional duties on goods typically being shouldered by consumers [3].
References: [1] Hawley, Josh. "American Worker Rebate Act." Senate.gov, www.hawley.senate.gov/american-worker-rebate-act. [2] Hawley, Josh. "Statement on the American Worker Rebate Act." Twitter, 18 July 2025, twitter.com/HawleyMO/status/1678506824466390016. [3] Cohen, David. "Sen. Josh Hawley Proposes Tariff Rebate Checks for American Families." The Hill, 19 July 2025, thehill.com/policy/economy/3692553-sen-josh-hawley-proposes-tariff-rebate-checks-for-american-families. [4] "Hawley Proposes Tariff Rebate Checks for Families." CNBC, 19 July 2025, www.cnbc.com/2025/07/19/hawley-proposes-tariff-rebate-checks-for-families.html.
- The American Worker Rebate Act, proposed by Senator Josh Hawley, seeks to distribute a portion of the revenue collected from President Donald Trump's tariffs to American families, aiming to provide at least $600 per adult and dependent child.
- The tariff revenue is projected to surpass $150 billion in 2025, and Hawley's bill suggests that a family of four could receive around $2,400 in rebate checks under this legislation.
- To provide economic relief, the bill proposes a phase-out of rebate amounts for higher-income filers, with those earning above $75,000, $112,500, and $150,000 for individuals, head of household, and joint filers, respectively, receiving reduced or no payments.
- The tariffs, implemented by President Trump, have generated about $28 billion in revenue for the federal government in July 2025, setting a new monthly record.
- The proposed bill aligns with the $1,200 stimulus checks distributed during the COVID-19 pandemic and follows President Trump's earlier suggestions of rebate checks for Americans, aiming to help families deal with the economic difficulties faced under the Biden administration.
