Are Rebates on the Way From Trump’s Tariffs? Here’s How Much Could Be Coming

We're all familiar with the variety of tariffs that President Donald Trump has imposed. In fact, between January and July 2025, the Peterson Institute for International Economics estimates that tariff revenue amounted to over $122 billion.

But recently in Washington, lawmakers have proposed a tariff rebate, which would potentially put money earned from the tariffs directly into your wallet.

So, will you be seeing a check anytime soon? Explore how to prepare yourself financially for the potential rebates.

Could Americans actually be getting tariff rebate checks?

Republican Sen. Josh Hawley proposed the American Worker Rebate Act in July 2025. Although nothing is set in stone, if this bill were to pass, it would distribute tariff rebates to Americans. Additionally, President Trump has mentioned the idea of a tariff rebate or dividend several times while in office.

We've seen payments before

This isn't the only time we've seen the federal government dole out checks. For example, a series of COVID-19 stimulus checks were distributed in 2020 and 2021.

When receiving the funds, these rebates might feel similar to the previous stimulus checks. Essentially, eligible taxpayers will get money from the government to use with no strings attached. But this time, the checks will be designed to offset the costs of tariffs instead of the pinch of pandemic finances.

How much could you receive?

The revenue from the tariffs would be used to potentially provide 'at least' $600 in tariff rebates per eligible American and dependent child. For example, a married couple with two children could receive a check tariff rebate of $2,400. Notably, these rebates would phase out for married couples making a combined $150,000 or more per year.

But the amount isn't nailed down yet.

"We also might make a distribution to the people, almost like a dividend to the people of America," President Trump also said in a recent interview. "Well, we're thinking maybe $1,000 to $2,000. That'd be great."

How likely is a rebate?

This bill is not yet law. In order for this proposed bill to become law, the government first has to reopen. After that, the House and Senate must both approve the bill. With both Senate Republicans reportedly lukewarm about the rebates and some economists warning against this course of action, it seems like this bill would face an uphill battle.

At the moment, this bill seems unlikely to pass in the near future. But if it did, you could quickly see funds hitting your bank account.

Arguments in favor

When it comes to rebate checks, they are undeniably politically popular. After all, who wouldn't want to receive some extra cash from Uncle Sam? Proponents argue that it could provide financial relief, especially for working-class families.

"Like President Trump proposed, my legislation would allow hard-working Americans to benefit from the wealth that Trump's tariffs are returning to this country," Senator Hawley said in a written statement.

Arguments against

But some economists are warning against the potential pitfalls of sending out tariff rebates.

For example, as pointed out by the Tax Foundation, "However, to the extent that tariffs do raise some revenue, with the US running persistent deficits and the cost of servicing the debt becoming more expensive in recent years due to high interest rates, it would be prudential to use that revenue for deficit reduction rather than rebates." Experts also worry that the rebates could worsen inflation.

With growing deficits under the One Big Beautiful Bill, sending out rebates instead of covering the government's obligations could pave the way for a future financial crisis.

What to do if you do get a check

It's unclear when or if tariff dividends will come our way. But, if they do, it's good to have a plan on what to do with the funds. Consider some of the best usage strategies below.

1. Pay off debt

If you have high-interest debt, using the windfall from a tariff check could help you make headway on repayment. Depending on your situation, using the hundreds or thousands of dollars to pay down your credit card balances could shave years off your debt repayment plan.

2. Top off an emergency fund

In a volatile economy, the safety net of an emergency fund becomes more important every day.

Generally, experts recommend stockpiling three to six months' worth of expenses into an emergency fund to get you through unexpected rough patches. For example, if you spend $3,000 every month, a solid emergency fund might hold between $9,000 and $18,000.

If you don't have an emergency fund or if it's underfunded, your tariff rebate could help you build financial security.

3. Splurge a little

While making progress toward big financial goals is important, it's also okay to splurge a little. For example, if you've been holding off on a particular purchase for a while, this influx of cash could help you finally make the transaction without going into debt.

Bottom line

Whether or not taxpayers receive a tariff rebate is largely out of our control, and no official decision has been made. But when it comes to taking charge of your personal finances, you don't have to wait for a windfall to move beyond living paycheck to paycheck.

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