A new proposal tied to rising tariff revenue could result in direct rebate checks for millions of Americans in 2025 — raising questions about whether another round of stimulus-style payments is on the way.
Are Americans getting a stimulus check in 2025?
While no federal stimulus checks have been officially approved for 2025, former President Donald Trump has floated the idea of using tariff revenue to fund rebate payments for taxpayers. In late July, Trump told reporters the administration is “thinking about a rebate” as a way to return some of the growing tariff revenue back to the American public.
“We have so much money coming in, we’re thinking about a little rebate,” Trump said on July 25. “For people of a certain income level, it might be very nice.”
What is the Trump tariff rebate?
The proposal mirrors past stimulus efforts — but instead of pulling from general tax revenue or borrowing, this plan would use customs duties collected through new tariffs. In response to Trump’s comments, Sen. Josh Hawley (R-MO) introduced the American Worker Rebate Act of 2025, which would formalize the rebate concept.
Under the bill, eligible individuals and families could receive payments similar in structure to pandemic-era stimulus checks.
Key details of the proposed American Worker Rebate Act:
- $600 per adult and dependent child
- $2,400 total for a family of four
- Phased out for:
- Joint filers earning over $150,000
- Single filers earning over $75,000
- Larger rebates may be issued if tariff revenue exceeds projections
Why now? The tariff revenue surge
The rebate idea comes amid a surge in U.S. tariff collections. According to Treasury Department data:
- $27 billion in customs duties were collected in June 2025 — a 301% increase from June 2024
- Year-to-date, tariff revenue totals $113 billion, up 86% from the previous year
- The federal government posted a $27 billion surplus in June following a $316 billion deficit in May
An analysis from Yale’s Budget Lab estimates that Trump’s tariffs could cost U.S. households an average of $2,400 in 2025, due to price increases passed along by companies paying the duties.
Stimulus or rebate: What’s the difference?
While many Americans are familiar with stimulus checks — direct government payments to boost consumer spending and stabilize the economy — a rebate check is slightly different. It’s a partial refund, usually tied to specific revenue sources or conditions. In this case, the funds would come from tariffs.
A rebate would still put money in taxpayers’ pockets, but it’s designed as a refund rather than emergency relief.
Will the Trump rebate apply nationwide?
If passed, the American Worker Rebate Act would apply nationally — though amounts could vary based on income. Higher-income residents in states like New Jersey, where earnings often exceed national averages, may see smaller rebates. Lower- and middle-income households would likely qualify for the full amount.
What about the viral $1,702 stimulus?
Some recent headlines have caused confusion about a $1,702 “stimulus check” — but that payout is limited to Alaska residents through the state’s oil revenue program. The figure is unrelated to the proposed federal tariff rebate.
What happens next?
While no rebate checks are currently scheduled, the introduction of the American Worker Rebate Act marks the first step in formalizing Trump’s proposed plan. The bill will need to pass through Congress before any payments are approved or distributed.
Key takeaways:
- Trump is backing rebate checks funded by rising tariff revenue
- The proposed American Worker Rebate Act would offer at least $600 per person
- Eligibility and amounts are income-based
- Final approval depends on Congressional action in 2025
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