Senator Hawley Proposes $2,400 Tariff Rebate Checks for American Families

Senator Josh Hawley has introduced the American Worker Rebate Act of 2025, proposing rebate checks of up to $600 per adult and child, totaling $2,400 for a family of four, funded by the substantial tariff revenues generated under President Trump's trade policies. President Trump supports the idea, emphasizing the importance of using tariff income to benefit American families while also focusing on debt reduction. The Treasury Department reported tariff revenues nearing $150 billion for the year, with July alone bringing in about $28 billion. The rebates would be structured as refundable tax credits, with income thresholds reducing eligibility for higher earners. However, economic analysis from Yale University’s Budget Lab warns that Trump’s tariffs disproportionately burden lower-income families by targeting goods they frequently purchase, potentially exacerbating economic inequality. Critics also express concerns about the federal deficit, despite the increased tariff revenue, as the proposal still requires congressional approval to become law.