After President Trump told reporters on the 25th that he was considering issuing rebate checks to taxpayers from tariff revenue, Republican Senator Josh Hawley of Missouri introduced a bill on the 28th to provide at least $600 per adult and child in every household, similar to the stimulus checks the government provided during the COVID-19 pandemic.
After NBC News reported that Trump was considering issuing rebate checks, Hawley pledged to draft a bill. In a statement accompanying the bill’s submission, Hawley said the bill would allow hardworking Americans to benefit from the wealth Trump’s tariff policies have brought to the United States.
Hawley co-sponsored an economic stimulus bill with senior independent Vermont Senator Bernie Sanders in 2020 during the COVID-19 pandemic, which provided checks to every eligible citizen. This bill follows the same model, but instead of direct cash payments, it would be in the form of a refundable tax credit, intended to benefit those who work and file their taxes.
If the bill is passed by Congress and signed by Trump, it could be distributed this year. The bill will ensure that every adult and their dependent children receive a minimum of $600, with higher rebates per person if tariff revenue exceeds expectations.
Rebates will be reduced by 5% for joint filers with adjusted gross incomes exceeding $150,000, heads of households with incomes exceeding $112,500, and individual taxpayers with incomes exceeding $75,000.
The Treasury Department announced in early July that tariffs totaled approximately $27 billion in June, an increase of approximately $4 billion from May. However, Trump’s large-scale tariffs are beginning to take a toll on the US economy, with inflation already rising in June.
The nonpartisan Tax Foundation predicts that Trump’s tariffs will increase taxes by $2.5 trillion over the next decade. However, if these tariffs remain fully implemented, prices will rise, with American families paying about $1,300 more in taxes this year and nearly $1,700 by 2026.
However, NBC reports suggest that Hawley’s tax rebate bill will be difficult to implement. This year, Trump considered distributing 20% of the $2 trillion saved by the Department of Government Efficiency (DOGE) federal downsizing plan directly to taxpayers. However, by the time Musk left, the $2 trillion target had not been reached, and House Speaker Johnson also poured cold water on the idea.
