Overview

• Sen. Josh Hawley introduced legislation on July 28 to provide tariff rebate checks of at least $600 per household member structured as a refundable tax credit.
• The bill would draw on surplus customs duty revenue that has topped $100 billion in the current fiscal year and is forecast to reach $300 billion annually.
• President Trump said on July 25 that he was “thinking about a little rebate” from tariff proceeds but has yet to outline income thresholds or eligibility rules.
• Tariff-funded rebates require congressional approval, passage through both chambers, and the president’s signature before any payments can be issued.
• The proposal intensifies the debate over directing tariff income toward direct relief versus using the revenue to reduce the federal debt and mitigate inflationary pressures.