Between inflation stimulus checks, unclaimed funds, IRS stimulus checks, and STAR tax relief checks, New Yorkers are finally seeing some well-deserved money return to their pockets–and now, new legislation could mean $600 rebate checks are on the way for American families.
Senator Josh Hawley introduced the American Worker Rebate Act on Monday, July 28th, that would deliver rebate checks of at least $600 per adult and child to American families. The proposed payments would come as refundable tax credits, similar to the COVID-era stimulus checks millions of Americans received, and would be funded by tariff revenue.
The legislation follows recent comments from President Donald Trump, who recently voiced support for rebate checks funded by tariff revenue. It also echoes the 2020 pandemic relief effort Hawley championed with Senator Bernie Sanders back in 2020 during the height of the pandemic.
How the $600 Payments Would Work
Under the bill, families would receive a refundable tax credit of $600 per adult and dependent child. If tariff revenues bring in more than expected, the rebate amount could grow. However, the rebate would begin to phase out by 5% for:
- Joint filers earning over $150,000
- Heads of household earning over $112,500
- Individual filers earning over $75,000
Why would this happen?
According to the U.S. Treasury Department, tariff revenue has topped $113 billion so far in fiscal year 2025, though also caused inflation to tick up slightly. The independent Tax Foundation projected that Trump’s tariffs would raise $2.5 trillion in revenue over the next decade–but could also cost the average American household $1,300 this year and $1,700 in 2026 should they remain in full effect.
Hawley’s plan is designed to redirect some of that revenue back into the hands of taxpayers, helping offset rising costs.
Hawley’s bill still has a long way to go before it becomes law. If passed, payments would be sent out this year as refundable tax credits. You can read the full bill here.
