Sen. Josh Hawley (R-Mo.) has introduced a bill to provide American families with tariff rebate checks, echoing a proposal previously made by President Donald Trump.
What Happened: Unveiled on Monday, Hawley's bill proposes sending tariff rebate checks of at least $600 per adult and child to American families. The bill, known as the ‘American Worker Rebate Act,’ if passed, would be structured as a refundable tax credit, with the government issuing checks this year.
The proposed bill would ensure that each adult and dependent child receives a minimum of $600. It also allows for a larger rebate per person if tariff revenue surpasses projections. The rebate would be reduced by 5% for joint filers with an adjusted gross income over $150,000, heads of household earning more than $112,500, and individual taxpayers with income above $75,000.
Although the bill has been introduced, its chances of becoming law remain uncertain. House Speaker Mike Johnson (R-La.) has previously voiced doubts about proposals involving direct payments to Americans.
Why It Matters: This move by Hawley comes after Trump, in a recent statement, hinted at the possibility of issuing rebate checks to Americans, funded by the new tariff revenue collected by his administration. Trump had also emphasized the need to pay down debt, but the idea of a rebate was under consideration.
Hawley, who previously partnered with Sen. Bernie Sanders (I-VT) on stimulus check legislation during the 2020 COVID pandemic, introduced his new bill as a nod to that earlier initiative.
The Tax Foundation estimates Trump's tariffs could generate $2.5 trillion over a decade but would raise taxes on the average U.S. household by about $1,300 this year and nearly $1,700 in 2026 due to higher prices.
Meanwhile, the U.S. Treasury has announced plans to borrow a staggering $1.007 trillion in the third quarter, a move attributed to the need to restore its cash reserves, which were depleted during the recent debt ceiling crisis. This substantial borrowing is necessary to rebuild the Treasury's cash reserves, which were depleted following the enactment of President Trump‘s tax and spending bill on July 4.
READ MORE:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
