If you’ve been hoping for another stimulus check since the last Covid relief payments back in 2021, there might be some good news for you.
Sen. Josh Hawley (R-Mo.) has put forward a bill proposing a “custom rebate” aimed at helping “hard-working Americans” benefit from the wealth generated by tariffs imposed during the Trump administration.
According to reports, these rebates would resemble the payments distributed after Congress passed the CARES Act in 2020, which provided direct payments of $1,200 for adults and $500 for dependent children.
However, these rebates differ in that they would help to mitigate the higher prices consumers face due to customs duties. Hawley noted that the United States has generated around $30 billion in tariff revenue as of June, with projections suggesting that this could surpass $150 billion this year.
That said, the proposed individual payments would be smaller than previous stimulus checks.
What’s the rebate amount for customs duties?
Each adult, as well as each dependent child, would receive “at least $600.” For instance, a couple without children could qualify for a total rebate of at least $1,200, while a family of four might receive around $2,400.
There’s potential for these payments to increase if actual revenues surpass current projections for 2025, according to a press release from Hawley’s office outlining the bill.
However, payments would decrease based on household income. The text of the bill specifies that rebates would be reduced according to the taxpayer’s filing status and adjusted gross income, with thresholds set at $150,000 for joint filers, $112,500 for heads of household, and $75,000 for individual filers.
Who qualifies for the rebate?
Hawley’s bill clearly states who is ineligible, focusing on groups like “non-resident alien individuals” and those who can claim taxes from another taxpayer, including real estate or trusts.
Similar to the Covid stimulus checks, your latest tax returns may determine both your eligibility and the amount you’d receive.
When might the customs rebate be issued?
It’s still too early to say, as the bill needs to make its way through Congress.
Former President Donald Trump has expressed support for the initiative, mentioning recently that the U.S. is seeing “a lot of money coming in” from tariffs, and they’re considering offering some form of rebate.
He added, “A little rebate for people at a certain income level might be very good,” but emphasized the priority of paying down the national debt.
As of Tuesday, the federal deficit stood around $36.7 trillion. If you’re interested in contributing to efforts to reduce this debt, there’s an option to do so via Venmo, through a program called “Gifts to Reduce Public Debt.”
