If you are feeling the pinch from higher prices, there is some talk in Washington that might catch your attention. Lawmakers are debating a plan that could send direct “rebate” checks to millions of Americans. Depending on your household size, the payment could be as much as $2,400 for a family of four. The proposal is called the American Workers Rebate Act, and while it is far from becoming law, it is already sparking conversations about who would qualify and how it would work.
What is the american workers rebate act
The American Workers Rebate Act is a bill introduced in late July 2025 by Republican Senator Josh Hawley of Missouri. The main goal is to put cash directly into the hands of Americans to help offset the financial strain caused by tariffs and rising costs.
Here is how the plan is set up:
- At least $600 for every adult and every dependent child.
- A family of four could receive up to $2,400.
- Payments would start to phase out for households earning over $150,000 a year.
Senator Hawley has compared this to pandemic-era stimulus checks, saying it is a way to give people some relief in a tough economy.
Read more:
Who would qualify for the rebate checks
Eligibility would mainly depend on household income and family size. Based on the proposal:
- Single adults earning less than $150,000 would get the full payment.
- Married couples filing jointly with incomes under $150,000 would also qualify.
- Families with dependent children could receive an additional $600 per child.
If your income is above the limit, the payment would be reduced or eliminated entirely.
Why the bill was introduced now
The push for this bill is tied in part to the impact of tariffs from the Trump administration’s trade policies. These tariffs have led to higher costs on imported goods, which many families feel when they shop for everyday items.
Senator Hawley has argued that working families should not have to bear the brunt of these economic changes. The checks, he says, would act as a “rebate” to help even things out.
Read more:
What are the chances of the plan becoming law
This is where things get complicated. For the American Workers Rebate Act to pass, it would need approval from both the Senate and the House of Representatives. Right now, the odds are not looking very strong.
NBC has reported that many of Senator Hawley’s fellow Republicans have concerns about the bill, particularly over its cost and long-term economic impact. Several economists question whether it would have the intended effect, saying it might offer only temporary relief without addressing the deeper causes of inflation and higher costs.
How this compares to guaranteed income programs
Some people compare this plan to the Guaranteed Income or Universal Basic Income programs, which have gained attention recently. The big difference between the two is that the American Workers Rebate Act would be a one-time payment, not an ongoing monthly benefit.
Additionally, Guaranteed Income programs are meant for lower-income residents—no other conditions are required to qualify. Supporters say it helps reduce poverty and encourages spending in local economies. Opponents argue it is too costly and could discourage work if expanded nationwide.
Read more:
Other relief efforts happening right now
Even if the American Workers Rebate Act does not pass, there are still smaller-scale relief programs happening in some states. For example:
- New York, Georgia, and Alaska are already sending out new stimulus-style payments to help with inflation and the cost of living.
- Alaska has had its own version of annual payments to residents since the 1970s, funded by oil revenue.
For families who are currently struggling to cover essentials, any form of direct payment or support—whether federal or state—can make a difference in their life, even if it is temporary.
