$600 stimulus payment for adult and dependent child in US soon? What you should know

Time of India

3 days ago

Senator Josh Hawley introduced the "American Worker Rebate Act of 2025," proposing rebate checks for working Americans funded by Trump's tariffs. The plan suggests a minimum of $600 per adult and child, phasing out for higher-income couples. However, the bill faces significant hurdles, including Republican opposition, economic concerns, and potential inflationary effects, making its passage unlikely.
The bill proposes 'at least' $600 for every adult and dependent child. For example, if you're a family of four, you'd get $2,400
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Will you be getting $600 stimulus payment?
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What is $600 stimulus payment and why you won't get it?
Republican Senator Josh Hawley introduced the 'American Worker Rebate Act of 2025' — a bill that would send rebate checks to working Americans, funded by revenue from President Donald Trump's tariff policies. The proposal was expected to provide a huge financial relief to millions of people in the United States.Congress is weighing a bill that would send Americans hundreds of dollars in the form of tariff rebate checks in a bid to soften the financial blow of the administration's new tariffs. The bill proposes 'at least' $600 for every adult and dependent child. For example, if you're a family of four, you'd get $2,400. The amounts would phase out for married couples making over $150,000 a year.'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,' Hawley said in a statement.The legislation regarding tariff rebate introduced by Josh Hawley in late July 2025 must be approved by both the Senate and House of Representatives before going to the president. There are significant obstacles to its passing right now: Sen. Hawley's fellow Republicans in the Senate are less than enthusiastic about the bill, and several economists have voiced concerns that it won't provide the relief consumers are looking for amid tariffs.The bill is also facing criticism from other Republican senators, who call it a "bad idea" and "unsustainable" due to the federal cost of approximately $164 billion, according to a report in Marca. This is compounded by skepticism from several economists who doubt that the measure will provide the financial relief that consumers need. Despite the fact the President Trump has endorsed the idea, his strained relationship with Hawley makes it unlikely that they will work together to move the project forward.The project, spearheaded by Hawley, is called the "Reimbursement for American Workers Act" and consists of sending direct checks to US households funded by revenues generated from tariffs imposed on foreign products. The plan seeks to send a minimum of $600 for each adult and dependent minor. If tariff revenue exceeds projections for 2025, the bill could allow for 'a larger credit per person.'Josh Hawley's proposal to send tariff rebate checks faces insurmountable hurdles. On the one hand, the lack of enthusiasm from Republicans in Congress themselves, who have already passed a bill costing $4.1 trillion in the last decade, makes any new spending initiative unlikely.In addition, several senators, including James Lankford, Ron Johnson and Roger Marshall, have publicly opposed the idea, suggesting that the funds be used to pay down the national debt.Trump himself is open to the idea. Asked at the White House about a possible rebate for Americans from tariff revenue, he told reporters: 'We're thinking about that. We have so much money coming in, we're thinking about a little rebate.'To be fair, Trump also said the 'big thing we want to do is pay down debt' — but added that 'a little rebate for people of a certain income level might be very nice.''I don't believe a rebate would make for sound policy,' Alex Durante, senior economist at the Tax Foundation, told CNBC. 'I'd much rather see that revenue directed toward reducing the deficit than handing out checks to individuals.'Critics also caution that such payments could reignite inflationary pressures — a problem that has persisted since the pandemic-era stimulus.'Recipients are likely to spend at least part of that money, which would drive up demand, push prices higher, and potentially intensify inflation,' said Joseph Rosenberg, senior fellow at the Urban-Brookings Tax Policy Center.