Millions of Americans could soon see a fresh round of stimulus checks if a new proposal in Congress moves forward. The plan, introduced in July under the American Worker Rebate Act by U.S. Senator Josh Hawley (R-Missouri), seeks to deliver rebate payments funded by tariff revenues.
If passed, eligible families could receive as much as $2,400 through direct deposit, echoing the financial aid that helped households during the COVID-19 pandemic. Here’s a breakdown of what’s being proposed, who might qualify, and what this could mean for American taxpayers.
Details of the New Stimulus Proposal
The American Worker Rebate Act is modeled after earlier pandemic stimulus efforts but ties the funding directly to tariff revenues generated from imports. According to Hawley:
- Each adult taxpayer would receive at least $600.
- Each dependent child would also qualify for $600.
- A family of four could collect up to $2,400 in total.
Hawley argued that tariff revenue should directly benefit working Americans, saying it would help offset years of inflation and savings losses.
Income Limits and Eligibility
Just like past stimulus programs, income caps are part of the proposal to ensure payments are targeted.
| Filing Status | Income Limit Before Phaseout Begins | Impact |
|---|---|---|
| Single Filers | $75,000 | Full payment if at or below this level |
| Heads of Household | $112,500 | Reduced payments if above limit |
| Married Filing Jointly | $150,000 | Phaseouts begin above this income |
| Dependents | $600 per child | Added on top of adult rebates |
Households above the income thresholds would see reduced or no payments, ensuring funds are directed toward low- and middle-income families.
How It Would Be Funded
Unlike the pandemic relief packages funded by federal borrowing, this proposal relies on tariff revenues.
- The U.S. is currently collecting $30 billion per month in tariffs.
- Projections show tariff revenue could exceed $150 billion in 2025.
- If revenues rise above expectations, Hawley noted that larger rebates could be possible in the future.
This unique funding source is meant to ensure that Americans directly benefit from trade policies without adding to the federal deficit.
Historical Context: Past Stimulus Checks
The new proposal builds on lessons from previous stimulus efforts:
- April 2020: Up to $1,200 per adult and $500 per child.
- December 2020: $600 per person.
- March 2021: $1,400 per individual.
Those payments provided critical relief during the COVID-19 pandemic, and Hawley’s plan aims to replicate their impact—though at a smaller scale per person—using tariff revenue instead of emergency spending.
Why It Matters
- Families in need: Rising costs of living continue to stretch household budgets. A rebate of up to $2,400 could provide timely relief.
- Political context: The plan reflects ongoing debates in Washington about how to use tariff revenue and whether direct payments remain a viable support strategy.
- Economic impact: Additional cash could stimulate consumer spending and help stabilize household finances.
What’s Next
The proposal is not yet law. It must pass both chambers of Congress and be signed by the president before checks can be issued. While there is precedent—Trump had floated tariff-funded rebates during his administration—no official timeline has been set for passage.
For now, Americans should watch closely, as the idea of a $2,400 stimulus boost could become a central issue in upcoming fiscal and political negotiations.
The proposed American Worker Rebate Act could deliver a meaningful stimulus boost to millions of Americans, providing up to $2,400 per family through direct deposits.
With tariff revenues at record levels, the funding mechanism is in place—what remains uncertain is whether lawmakers will unite behind the plan.
As Congress debates, households should stay informed. Whether it’s $600 per individual or a maximum of $2,400 per family, this proposal could offer much-needed relief at a time when many Americans are still coping with high costs and economic uncertainty.
FAQs
Who would qualify for the $2,400 stimulus?
Adults earning up to $75,000 (or couples earning up to $150,000) would qualify, plus $600 per dependent child.
How is this different from past stimulus checks?
Unlike COVID stimulus payments, this plan would be funded by tariff revenue rather than federal borrowing.
When will payments be issued if the plan passes?
No specific date is set yet. The proposal must first pass Congress before the IRS and Treasury Department can distribute payments.