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President Donald Trump has backed a proposal to provide American families with rebate checks funded by tariff revenue. The American Worker Rebate Act of 2025, introduced by Senator Josh Hawley, aims to deliver at least $600 per adult and dependent child, totaling $2,400 for a family of four. This proposal comes amid concerns over rising costs due to tariffs imposed on imported goods.
The plan is designed to redistribute some of the wealth generated from tariffs, which have brought in significant revenue under President Trump's trade policies. In June 2025 alone, tariff revenue reached approximately $27 billion, marking a substantial increase from the previous year. If the bill passes, rebates would be structured as refundable tax credits tied to the 2025 tax year, potentially starting later this year or in 2026.
However, the proposal faces challenges, particularly from those concerned about its impact on the federal budget deficit. Critics argue that while tariff revenue has increased, the federal deficit remains significant. The Congressional Budget Office projects that recent tax-and-spending legislation could add $3.4 trillion to the deficit over the next decade.
Despite these concerns, President Trump has expressed support for the rebate, stating, "We have so much money coming in from tariffs that a little rebate for people of a certain income level might be very nice."
Eligibility for the rebate would depend on income, with reductions for joint filers earning over $150,000 and single filers making more than $75,000.
The bill is still in the proposal stage and requires congressional approval to become law. If enacted, it could provide financial relief to American families facing higher prices due to tariffs.