The American Worker Rebate Act of 2025 is a proposed federal law aiming to send tax rebates (often described like “stimulus checks”) to many Americans, funded by tariff revenues.
As of September 2025, the bill remains in the proposal stage—important parts are known, some details are still unclear, and no payments have yet been made. This article covers full details, recent updates, benefits, eligibility, and what to expect going forward.
What Is the Bill?
- Bill number S.2475, named the American Worker Rebate Act of 2025, was introduced in the U.S. Senate on July 28, 2025 by Senator Josh Hawley (Missouri).
- It was referred to the Senate Finance Committee on that date.
- Purpose: to amend the Internal Revenue Code to provide tax rebates (or refundable credits) to eligible individuals using revenues collected from tariffs (duties on imported goods) after January 20, 2025.
Key Provisions & Payment Amounts
- Minimum Rebate Amount: At least $600 per eligible adult; similarly $600 per qualifying dependent child.
- Family of Four: That would lead to at least $2,400 (two adults + two children) under the minimum guarantee.
- Potential for More: The actual rebate per person could be higher if tariff revenues exceed current projections. The bill calculates an “applicable amount” based on dividing qualifying tariff proceeds by the number of eligible individuals and their qualifying children. Whichever is greater of the $600 minimum or this per-person share is used.
Eligibility & Income Limits
| Criteria | Detail |
|---|---|
| Who qualifies (basic eligibility) | Individuals who are not nonresident aliens, not claimed as a dependent by someone else, etc. Estate/trusts excluded. |
| Income Phase-Out Thresholds | Rebate (credit) reduced by 5% of the taxpayer’s adjusted gross income (AGI) that exceeds certain limits. Limits are: $75,000 for individual filers, $112,500 for heads of household, and $150,000 for married filing jointly. |
| Qualifying Children | Defined under the tax code (section 24(c)), essentially dependent children who meet those qualifications. They add to rebate amounts. |
Funding & Tariff Revenue
- The rebate is funded by tariff proceeds (duties on imports, including supplemental duties) collected after January 20, 2025.
- For example, revenue from tariffs in June 2025 was nearly $27-$30 billion.
- Projections suggest total tariff revenue for fiscal year 2025 could exceed $150 billion.
Implementation, Credits & Payments
- The rebate is structured as a refundable tax credit for the tax year 2025.
- There is also a mechanism for advance refunds or credits—in some cases for individuals whose first taxable year under this law begins in 2024.
- Delivery of payments: The Secretary of the Treasury may distribute refunds electronically to accounts to which a person has authorized refunds of taxes or federal payments on or after January 1, 2023.
- There are rules for identification-numbers: valid Social Security Numbers (or adoption taxpayer identification number, where applicable) are required, including for qualifying children.
Status & Timeline as of September 2025
- Bill is introduced but not passed. It has not cleared the Senate Finance Committee, nor has it gone to the House or been signed.
- No rebate payments have been made or scheduled yet. It remains a proposal.
- Because implementation depends on both legislative approval and tariff revenue forecasts, payment timing is uncertain; if passed, distributions are expected late 2025 or into 2026.
Snapshot of Key Facts (September 2025)
| Aspect | Value / Fact |
|---|---|
| Bill number | S.2475 (American Worker Rebate Act of 2025) |
| Sponsor | Senator Josh Hawley (MO) |
| Minimum rebate per adult or child | $600 each |
| Minimum for family of four | $2,400 (2 adults + 2 children) |
| Income phase-out starts at | $75,000 (single), $112,500 (head of household), $150,000 (married jointly) |
| Funding source | Tariff revenues collected after Jan 20, 2025 |
| Status | Introduced, in Senate Finance Committee; not law yet |
| Payments issued yet? | No |
| Potential timing of payments (if passed) | Late 2025 → 2026 |
The American Worker Rebate Act of 2025 represents a significant proposal to deliver $2,400 stimulus-style relief to many American families, paid for via tariff revenues instead of borrowing. As of September 2025, its core features—$600 per adult/child minimum, income thresholds, and refundable tax credit structure—are publicly known.
However, it remains just a proposal: no payments yet, and important steps like Senate Finance Committee approval, full congressional passage, or final calculations based on actual tariff collections are still pending.
For those hoping to receive these rebates, staying informed about congressional votes and watching for IRS or Treasury regulations will be key.
FAQs
When will the $2,400 stimulus (tariff rebate) checks be sent out?
As of September 2025, no payments have been issued. The bill is still under review; if passed, distribution is expected possibly in late 2025 or into 2026
What if my income is above the thresholds—can I still get something?
Yes, potentially—but your rebate will be reduced by 5% of the portion of your AGI that is above the defined threshold (e.g. $75,000 for single filers, etc.). If your AGI is very high, the rebate may be reduced significantly or possibly phased out.
Will Social Security recipients or non-filers qualify?
The bill’s eligibility rules say individuals must file a tax return and supply valid identification numbers.