The prospect of a new stimulus check in 2025 has gained traction after President Donald Trump proposed using tariff revenues to ease economic burdens for Americans. On July 25, Trump floated the idea of a tariff rebate, noting the significant funds flowing into the government from import tariffs. Days later, Missouri Republican Senator Josh Hawley introduced the American Worker Rebate Act of 2025, a bill that could distribute checks of at least $600 per adult and dependent child, totaling up to $2,400 for a family of four. The proposal, still awaiting Congressional approval, aims to return a portion of tariff revenue to taxpayers but raises questions about eligibility, timelines, and tracking payments. The bill has sparked debate, with support from some Republicans but criticism from economists warning of potential inflationary impacts.
The proposal comes as tariff collections soar, reaching $27 billion in June 2025 alone, according to the U.S. Treasury Department. The goal is to offset the rising cost of goods caused by tariffs, which, per a Yale Budget Lab analysis, could cost U.S. households about $2,400 in 2025 due to higher prices on imported goods.
- What is the American Worker Rebate Act? A legislative proposal to use tariff revenue for direct payments to taxpayers.
- Who may benefit? Taxpayers with adjusted gross income up to $75,000 (individuals) or $150,000 (couples).
- When could checks arrive? No confirmed date yet, as the bill awaits Congressional approval.
The discussion around the bill reflects the challenge of balancing financial relief with fiscal priorities, such as reducing the national debt, as emphasized by Trump.
Details of the American Worker Rebate Act
Introduced by Senator Josh Hawley on July 28, the American Worker Rebate Act of 2025 proposes using tariff revenues to send direct payments to American workers. The bill sets a minimum payment of $600 per adult and dependent child, equating to $2,400 for a family of four. If tariff collections exceed projections, the payment amounts could increase, providing greater financial relief.
Eligibility for the checks follows specific criteria:
- Income limits: Benefits phase out by 5% for individuals earning over $75,000 or couples over $150,000.
- Exclusions: Nonresident aliens, dependents claimed on another’s return, and trusts are ineligible.
- Identification: A valid Social Security number or adoption taxpayer ID is required.
The bill is in its early stages, referred to the Senate Finance Committee. Approval hinges on support from both the Senate and House of Representatives, which could be challenging as some Republicans, like Senator Ron Johnson, prioritize using tariff revenue to reduce the national debt, which exceeds $36 trillion.
The legislation stipulates that payments must be distributed by December 31, 2026. To expedite delivery, the Treasury may use electronic deposits to accounts already on file for tax refunds.
How tariff rebates work
Unlike the pandemic-era stimulus checks aimed at boosting consumer spending, the American Worker Rebate Act proposes a tariff rebate, a partial refund of government revenue from import tariffs. The intent is to mitigate the impact of higher prices on imported goods, which experts say could increase consumer costs.
- Funding source: Tariffs have generated $113 billion in 2025 so far, with projections of up to $300 billion annually.
- Distribution: Direct payments, similar to stimulus checks, but funded by tariffs, not deficits.
- Expected impact: Financial relief for middle- and low-income families hit by rising prices.
While the proposal aims to return money to taxpayers, economists caution that the checks may not fully offset long-term price increases, especially if tariffs continue to drive inflation. Kevin Thompson, CEO of 9i Capital Group, described the rebate as a “small tax refund” with limited impact against rising costs of essential goods.
Eligibility and criteria for the checks
Eligibility for the American Worker Rebate Act is based on clear tax criteria. Individuals with an adjusted gross income (AGI) of up to $75,000 and couples up to $150,000 will receive the full rebate. For incomes above these thresholds, payments decrease by 5% per additional income bracket. For example, a couple with an AGI of $160,000 would see their rebate reduced by $500.
Additional requirements include:
- Documentation: A valid Social Security number for each beneficiary, including dependent children.
- Military exceptions: Spouses of Armed Forces members may be exempt from certain ID requirements.
- Validation timeline: 2024 or 2023 tax data may be used if 2025 returns are unavailable.
The IRS will verify eligibility and process payments, leveraging systems used during the pandemic stimulus checks.
How to track your potential check
While the American Worker Rebate Act awaits approval, the IRS has tools to track tax refunds that could be adapted for these payments. The “Where’s My Refund” tool on the IRS website allows users to check refund status within 24 hours of e-filing a return. To use it, you need:
- Required information: Social Security number, filing status (single, married, head of household), and exact refund amount.
- Daily updates: The system refreshes once daily, typically overnight.
- Possible statuses: Return received, refund approved, or refund sent.
For direct deposits, funds can arrive within days of IRS approval. Mailed checks may take six to eight weeks. The IRS also provides a helpline, 800-829-1954, for refund inquiries.
Other financial relief options in 2025
Beyond the American Worker Rebate Act, several states are offering inflation relief checks. New York, for instance, is distributing one-time payments of $200 for individuals earning up to $75,000 and $400 for couples up to $150,000 to offset higher sales taxes due to inflation. Pennsylvania, Georgia, and Colorado have similar programs with varying criteria.
- New York: Payments of $200 to $400 based on income.
- Pennsylvania: Rebates for homeowners, focused on tax relief.
- Georgia and Colorado: Refund programs for taxpayers, adjusted by income.
These state programs are already active, with online portals like Delaware’s Division of Taxation for tracking status.
Political and economic debate
The American Worker Rebate Act faces hurdles in Congress. While Republican majorities in the House and Senate align with Trump’s agenda, some resistance persists. Senator Ron Johnson argues that reducing the $36 trillion national debt should take precedence. Economists also warn that tariffs, which fueled a 2.6% inflation rate in June 2025 per the U.S. Commerce Department, could negate the benefits of the rebates.
Supporters like Hawley counter that the checks directly aid middle- and low-income families impacted by tariff-driven price hikes. The record $150 billion in tariff revenue in 2025 bolsters the proposal’s financial feasibility, but its passage depends on political negotiations.
Guidance for taxpayers
Taxpayers hoping for American Worker Rebate Act checks should monitor legislative progress. If approved, the IRS will likely use existing systems to process payments, with notifications sent via mail or email. To prepare, taxpayers should:
- Keep tax filings updated: 2023 or 2024 data may determine eligibility.
- Verify banking details: Direct deposits speed up delivery.
- Check with the IRS: The official website and helpline provide reliable updates.
Rumors of $2,000 stimulus checks or $5,000 “DOGE dividends” lack official confirmation and should be approached cautiously.
