A new proposal has emerged on Capitol Hill that may remind you about the COVID-19 stimulus checks from a few years ago. This time, it is rooted in the significant revenue generated by President Donald Trump's tariffs rather than a global health emergency.
Republican Sen. Josh Hawley of Missouri has introduced the American Worker Rebate Act, advocating for a share of the record tariff revenue to go directly to the American people.
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In June, the federal government reported a record $27 billion generated from tariffs, a stark increase from the $4 billion collected during the same time last year. Hawley, meanwhile, thinks the American people deserve a cut.
His proposal suggests that $600 per adult and child should be deposited by the Treasury Department into qualifying bank accounts. To be eligible, individuals must earn under $75,000 per year, and couples filing jointly must make under $150,000.
Those with higher incomes would receive a reduced payout. The amount, however, could potentially rise if tariff revenues continue to soar.
Currently, the legislation is still in its introductory phase, and with the House of Representatives out of session until early September, formal action is not anticipated anytime soon.
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While some fiscal conservatives argue that the newfound tariff revenue should be directed towards paying down the national debt or funding President Trump's "one big, beautiful bill," the administration has shown some interest in providing rebate checks.
It's essential to keep in mind that many economists warn the impact of tariffs could be felt by consumers through increased prices on imported goods. Although inflation ticked up slightly in June, it does still remain below 3%.
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