If you’ve been missing those pandemic-era stimulus checks, you might be in for some good news. In 2025, a new proposal — officially called the American Worker Rebate Act — is making waves in Washington, D.C. It’s not a done deal yet, but if passed, it could put at least $600 in the pocket of every eligible adult and dependent child in America. And unlike past relief payments, this one’s coming from a different source: tariff revenue, not borrowed money.
The bill, introduced in July 2025 by Senator Josh Hawley (R-MO) and supported in concept by former President Donald Trump, is pitched as a way to give American families a slice of the billions collected in import tariffs. Think of it like Uncle Sam saying, “Hey, those taxes we slapped on imports? Here’s your cut.”
Stimulus Checks Are Back in 2025
| Category | Details |
|---|---|
| Proposed Amount | $600 per adult and $600 per dependent child |
| Example Payout | Family of 4 could get $2,400 |
| Income Limits | Phase-out begins at $75,000 (single) / $150,000 (joint) |
| Funding Source | U.S. tariff revenue — $113B collected FY2025 |
| Bill Status | Proposed, not yet passed — Congress returns after Labor Day 2025 |
| Estimated Cost | $150B–$164B annually |
| Official Info | Read the bill on Congress.gov |
The American Worker Rebate Act could bring back stimulus-style checks in 2025 — this time funded by tariffs, not debt. For some, it’s a much-needed financial boost; for others, it’s a political gimmick. Either way, staying informed and prepared means you’ll be ready to act if those checks start rolling. Whether you save it, spend it, or use it to pay down debt, every bit helps when it comes to your wallet.
A Quick History of Stimulus Payments in America
This isn’t the first time the U.S. has mailed out checks to give the economy a boost:
- 2001 & 2008: Tax rebate checks to offset recessions.
- 2020–2021: CARES Act & American Rescue Plan stimulus payments — up to $1,400 per person.
- Now in 2025: Proposed tariff-funded rebate.
The big difference this time? Instead of borrowing money (which increases the national debt), the American Worker Rebate Act uses revenue already collected from tariffs on imported goods.
Who Would Qualify?
Here’s the eligibility breakdown based on the bill’s current text and public statements:
- Adults: $600 each, as long as income is under $75,000 (single) or $150,000 (joint).
- Dependents: $600 each — so children and possibly qualifying adult dependents.
- Phase-Out: Payments shrink for higher earners until they disappear entirely.
Example:
- Single mom with two kids earning $60,000 → $1,800 total.
- Married couple with two kids earning $120,000 → $2,400 total.
- Single worker earning $85,000 → likely reduced payment or none.
Why Tariff Money?
Tariffs are taxes on imported goods. Businesses pay them, but the costs often get passed to consumers. By returning part of this revenue, the Act aims to offset some of that burden.
In Fiscal Year 2025, tariff revenue hit $113 billion, with a record $27 billion in June alone. That’s a big enough pie to give every eligible American a decent slice.
Expert Opinions — Love It or Hate It?
Supporters say it’s common sense:
“If American workers are shouldering higher prices from tariffs, they should see direct relief,” argues Sen. Hawley.
Critics warn it’s fiscally risky:
“Even without borrowing, $150+ billion in annual rebates could fuel inflation and divert funds from other priorities,” says Douglas Holtz-Eakin, former Congressional Budget Office director.
Some economists suggest simply cutting tariffs instead of redistributing them.
American Worker Rebate Act vs. COVID-19 Stimulus Checks
| Feature | American Worker Rebate Act (Proposed 2025) | COVID-19 Stimulus Checks (2020-2021) |
| Funding Source | Revenue from tariffs on foreign goods | Government borrowing and federal funds |
| Payment Amount | Minimum of $600 per adult and dependent child | Varied from $1,200 to $1,400 per person |
| Primary Goal | Offset costs of tariffs and boost the economy | Provide emergency relief during the pandemic |
| Eligibility | Phased out for higher earners ($75k single/$150k joint) | Phased out for higher earners (similar thresholds) |
Real-Life Impact — What $600 Means in 2025
Prices are still higher than they were pre-pandemic, so $600 won’t buy what it used to — but it’s not nothing.
- Groceries: Roughly 3–4 weeks for a small family.
- Utilities: About 3 months’ worth for many households.
- Travel: A round-trip flight for two to Florida or Las Vegas.
- Debt: Could cover an extra student loan or credit card payment.
In high-cost states like California or New York, it might feel like a drop in the bucket. But in lower-cost states, it could stretch much further.
Top 3 Myths About the 2025 Rebate Checks
Myth #1: This is a guaranteed check coming soon.
- Fact: The American Worker Rebate Act is still a proposed bill. It must be passed by Congress and signed into law before any payments can be distributed.
Myth #2: Everyone will get the same amount of money.
- Fact: The payments are designed to have income-based limits. Just like previous stimulus checks, the amount you receive may be reduced or eliminated if your income is above a certain threshold.
Myth #3: These checks are a new kind of “stimulus.”
- Fact: While it functions similarly, the funding source is different. These are technically “tariff rebates,” a new approach that uses money collected from trade taxes rather than being a broad economic stimulus package.
How Would It Work?
If passed, the IRS would likely send payments via:
- Direct Deposit — Fastest, straight into your bank account.
- Paper Check — Mailed to your home.
- Prepaid Debit Card — Used during previous stimulus rounds.
Likely Timeline:
- September 2025 — Debate resumes in Congress.
- Late 2025 — Possible vote and approval.
- Early 2026 — Payments sent, possibly retroactive for 2025.
Action Plan to Get Ready
Even though it’s not law yet, you can prepare now:
- File Your Taxes — Even if you earn little, file to ensure eligibility.
- Update IRS Info — Check your mailing address and direct deposit info at IRS.gov.
- Stay Informed — Use Congress.gov’s tracker to follow the bill.
- Avoid Scams — The IRS never calls, texts, or emails asking for banking info.
- Budget Smart — If this money comes through, have a plan: save, invest, or pay down debt.
The Risks and Unknowns
Like any proposal, there’s no guarantee this will pass — and even if it does, the amount or eligibility rules could change.
Possible pitfalls:
- Political gridlock delaying a vote.
- Economic shifts making lawmakers rethink.
- Inflation worries slowing support.
FAQs
1. Is the American Worker Rebate Act already law?
No. Congress must pass it first.
2. How much will I get?
$600 per eligible adult and dependent child, subject to income limits.
3. Will it be taxable?
No, it’s a refundable tax credit — not taxable income.
4. Do I need to apply?
Probably not — the IRS will use your most recent tax return.
5. When could payments arrive?
If passed this year, possibly late 2025 or early 2026.
