Sen. Josh Hawley (R-MO) unveiled a bill this week that would offer tax rebates to “hard-working” Americans and their families using revenue attained from tariffs championed by President Donald Trump.
The legislation, called the American Worker Rebate Act of 2025, aims to amend the Internal Revenue Code of 1986 and provides credits of at least $600 to each qualifying adult and child starting this year, with potential increases if collections beat projections.
Modeled after the 2020 stimulus payments, the bill proposes decreasing rebates for those who earn more than a certain amount of money. Specifically, the credits shrink by 5% for adjusted gross income above $150,000 for joint filers, $112,500 for heads of household, or $75,000 for other taxpayers.
Hawley introduced the legislation after Trump suggested last week that his administration was considering the prospect of rebates, citing revenue the United States is taking in from tariffs.
“We have so much money coming in, we’re thinking about a little rebate, but the big thing we want to do is pay down debt. We’re thinking about a rebate,” Trump said to a reporter outside the White House.
Tariffs led to concerns about inflation, but revenues from the levies issued by Trump exceeded the expectations of “experts” and brought in more than $100 billion over the first six months of his second term, The Daily Wire reported last week.
“Americans deserve a tax rebate after four years of Biden policies that have devastated families’ savings and livelihoods,” Hawley said in a statement. “Like President Trump proposed, my legislation would allow hard-working Americans to benefit from the wealth that Trump’s tariffs are returning to this country.”
Trump has struck a number of framework agreements since announcing “Liberation Day” tariffs as part of a bid to get other countries to negotiate trade deals and establish more favorable terms for the United States.
On Sunday, Trump announced what he called “the biggest of all the deals,” in which the European Union agreed to invest hundreds of billions of dollars in the United States, open up its member nations to trade with America, and settle on a 15% tariff rate on many imports from the bloc.