Talks of new stimulus checks have resurfaced in Washington, with two separate efforts potentially putting cash back in Americans’ pockets. One is a tariff rebate program backed by President Donald Trump; the other, a separate $1,390 IRS relief payment aimed at helping lower- and middle-income households.
Trump floats a rebate check — the “tariff refund”
In late July, President Trump publicly floated the idea of using soaring tariff revenue to send rebate checks to taxpayers.
“We’re thinking about a little rebate,” Trump said on July 25. “A little rebate for people of a certain income level might be very nice.”
According to USA TODAY NETWORK reporting by Maria Francis, Trump emphasized that the government was collecting significant sums from tariffs — $113 billion so far in 2025, a figure up 86% year-over-year.
The rebate idea would function similarly to a stimulus check but technically counts as a partial refund from tariff collections, aimed at helping consumers offset rising prices.
What is the American Worker Rebate Act of 2025?
Days after Trump’s comments, Sen. Josh Hawley (R-MO) introduced the American Worker Rebate Act of 2025, proposing direct payments to families:
- $600 per adult and dependent
- $2,400 for a family of four
The benefit would phase out at:
- $150,000+ for joint filers
- $75,000+ for single filers
According to an analysis from The Budget Lab at Yale, Trump’s tariffs may cost U.S. households an average of $2,400 in 2025 via increased consumer prices. If tariff collections exceed expectations, Hawley’s bill includes provisions to expand rebate amounts.
IRS $1,390 stimulus check: What we know
Separately, the Internal Revenue Service (IRS) is preparing to issue $1,390 tax-free stimulus checks to qualifying households later this year. These payments are part of a federal effort to alleviate living costs, especially for Americans hit hardest by inflation.
Eligibility includes:
- Single filers earning up to $75,000
- Joint filers earning up to $150,000
- Heads of household earning up to $112,500
- Federal benefits recipients, including SSDI, SSI, and VA
- Families with dependents may receive additional amounts
(Source: The Mirror, Hindustan Times News)
These checks are tax-free and do not impact eligibility for benefits like Medicaid, SNAP, or housing assistance.
How will the payments be delivered?
- Direct deposit if IRS/Social Security has your banking info
- Paper checks mailed to those without direct deposit
- Prepaid EIP debit cards for some recipients
When will payments go out?
While the IRS has not announced an official release date, payments are expected to begin in mid-2025, possibly within weeks.
What’s the difference between a stimulus check and a rebate?
- A stimulus check is a direct government payment intended to boost spending during economic downturns.
- A rebate check, like Trump’s proposal, is a partial refund of government-collected funds (in this case, from tariffs) that aims to compensate for rising costs.
Both options are being pursued simultaneously in different branches of government, and it remains unclear whether either — or both — will be enacted.
Political debate heats up
While the Trump administration insists the rebate is “additive” and won’t impact Social Security, critics argue it could signal a backdoor effort to shift public retirement support.
“Trump and his government want to privatize Social Security,” said Senate Minority Leader Chuck Schumer, reacting to comments from Treasury Secretary Scott Bessent, who said the rebate idea could be a “game-changer” for retirement.
The White House and Treasury have since clarified: Trump accounts and rebates would supplement, not replace, Social Security.
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.