More government cheques? That’s the buzz after new legislation was introduced in Congress—the American Worker Rebate Act of 2025—which promises Americans $600 cheques paid for with revenues generated from tariffs.
The scheme, proposed by Sen. Josh Hawley (R-Missouri) and coming after a recommendation by former President Donald Trump, is to return some of the record-breaking tariff monies to taxpayers. The cheques would work in much the same way as stimulus cheques that have been sent out under the COVID-19 pandemic, with one major difference: these would be financed by tariff revenues rather than new government spending.
But before you start deciding how to spend that $600, here’s something you might want to know—the bill has high political and economic hurdles to clear. Most analysts predict it will never become law.
The origins of the rebate idea
The concept coalesced after Trump, in a press conversation on July 25, tossed around the idea of returning some tariff revenue to the public.
“We have so much money coming in,” Trump said, referring to tariffs on imported goods. “We’re thinking about a little rebate to individuals of a certain income level… But the big thing we want to do is pay down debt.”
The statement was widely covered, and within just three days, Sen. Hawley introduced the American Worker Rebate Act in the Senate.
How the Plan Would Work Under Hawley’s bill:
- $600 to all adults and dependent children.
- A family of four might get $2,400.
Payment would begin to taper off for individuals making more than $75,000 and couples making more than $150,000, decreasing 5% for income over those levels.
If tariff revenues are greater than expected, rebates can be larger.
Hawley introduced the bill as a way to “allow hard-working Americans to benefit from the wealth Trump’s tariffs are bringing back into this country” and as retaliation after what he describes as “four years of Biden policies” that hurt family budgets.
Tariffs: The hidden price tag
The plan comes as U.S. tariff income is booming.
In June 2025, the government collected about $27 billion in customs duties — up from $23 billion in May and more than triple the amount collected in June 2024. Over the past year, tariff collections have totaled $113 billion, an 86% increase.
But here’s the thing: tariffs are not “free money”. Economists point out that American businesses and consumers — not foreign governments—ultimately pay for these costs, as businesses tend to pass them on in the form of higher prices.
According to The Budget Lab at Yale, Trump’s tariffs could cost U.S. households an average of $2,400 in 2025 through price increases. In other words, your $600 check might not even cover the extra costs you’ve already paid because of tariffs.
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Rebate vs. Stimulus Check: What’s the difference?
At first glance, this might sound like another COVID-era stimulus check. But the two are not quite the same:
- Rebate: A refund of money you’ve already spent — in this case, through higher prices caused by tariffs. Think of it like getting some of your own money back after a store overcharges you.
- Stimulus Check: A government payment designed to inject new money into the economy and encourage spending.
This is pedantic-sounding, but it has bearing because rebates don’t always benefit the economy as much as stimulus checks do. They’re closer to half-reimbursement than to economic kickstarting.
Will it actually pass?
Reality check time: this bill probably won’t pass.
First, Congress is bitterly divided on spending priorities. Many lawmakers—some of them Republicans — insist that any new revenue be applied to reduce the nation’s debt, not to write cheques.
The Tax Foundation, an independent think tank, went even further in criticising the idea as “fiscally irresponsible” and warning of inflation.
“Tariffs are a poor way to raise revenue overall,” the group said. “The revenue that is raised should be directed to deficit reduction, not rebates.”
Add the possibility that rebates could be blasted as an election-year giveaway, and the political landscape becomes even tougher.
The economic critics
Economists also question whether the cheques would make much difference to struggling families.
Yes, $600 might buy groceries or a month of utilities. But because tariffs themselves jack up the cost of imported goods — from computers to apparel — gains could be wiped out by inflation in a snap.
“It’s like paying someone with their own money,” quipped one analyst.
Why the idea still matters politically
Even if it fails, the American Worker Rebate Act is significant politically. It puts tariffs — and where they end up in Americans’ pockets — back on the political agenda. It also allows politicians like Hawley and Trump to position themselves as giving money straight back to voters, which resonates with many working- and middle-class families.
In a very literal sense, the bill is at once a policy concept and a campaign pledge.
What this means to you
Meanwhile, Americans shouldn’t expect to receive a $600 rebate check anytime in the near future. Even if the bill gains traction, it would still need to go through the Senate, the House, and the President’s office—something that may take months and is as good as certain to be met with intense opposition.
However, the controversy over it puts in stark relief one basic reality: tariffs are not merely a weapon of trade policy. They’re a covert tax paid by consumers ultimately — and whether that money should be repaid, used in the service of paying down debt, or expended on other purposes is a debate just getting started.
