A new congressional proposal could send $600 tariff rebate payments to millions of Americans later this year or in early 2026. Here’s a complete, up‑to‑date breakdown of eligibility, funding, timing, and possible total amounts.
What Is the Legislation?
Senator Josh Hawley (R‑Mo.) introduced the American Worker Rebate Act in mid‑2025. It would repurpose record-breaking tariff revenues to issue tax rebate checks of at least $600 per adult or eligible dependent .
Former President Donald Trump has expressed support for the plan, stating, “We’re thinking about a little rebate” funded by incoming tariff money.
How Much Money & Who Qualifies?
| Factor | Details |
|---|---|
| Payment amount | Minimum $600 per person (adult or qualifying child) |
| Family max (4 members) | At least $2,400 total |
| Higher payments | Potentially larger if tariff revenue exceeds $150 bn estimate |
| Income phase‑out | Begins at $75,000 for individuals, $150,000 for joint filers; heads of household phased at $112,500 |
| Funding source | Tariffs—$27 bn collected in June; over $113 bn so far in fiscal 2025 |
Timing & Legislative Outlook
- Rebate amounts are structured as refundable tax credits tied to the 2025 tax year.
- If passed, payments could begin as early as late 2025 or early 2026.
- The legislation still requires Congressional approval, with mixed reactions even among Republicans. Critics cite high federal deficit (≈ $1.4 trn) and debt (~$37 trn) as fiscal concerns.
Support vs. Criticism
- Supporters argue it returns surplus tariff wealth to working‑class households and mirrors past pandemic stimulus parameters .
- Critics (including GOP senators like Rand Paul, Ron Johnson) argue rebates exacerbate the national debt and say tariff revenues should be used to pay down the deficit, not fund new spending. They also warn of inflationary impact due to tariffs passed on to consumers .
The proposed $600 stimulus‑style rebate represents a politically charged effort to deliver direct payments to eligible Americans using tariff revenues.
While each eligible person—including dependent children—stands to receive at least $600, critical votes still lie ahead in Congress.
The payments could begin in late 2025 or early 2026, but the bill’s success hinges on overcoming fiscal concerns and intra‑party resistance.
FAQs
Who is eligible for the $600 rebate?
Individuals earning up to $75,000, heads of household up to $112,500, and joint filers up to $150,000. Phase‑out begins above those thresholds; rebate applies per adult and dependent child
When would the payments arrive?
If the bill passes, payments—issued as refundable tax credits—could be paid out in late 2025 or early 2026, tied to the 2025 tax year
Is the plan fully funded?
Funding comes from tariff revenues already collected (over $113 bn in 2025 fiscal year to date), not via borrowing. Critics argue, though, that overall government deficits (~$1.4 trn) remain too high to justify new payments.