Critics Slam Hawley's Plan for Tariff Rebate
In a bid to provide financial relief to American households amid rising inflation and economic concerns, Senator Josh Hawley has introduced the American Worker Rebate Act. The legislation, proposed in late July 2025, aims to distribute a portion of the tariffs imposed during the Trump administration back to American workers through $600 tariff rebate checks per eligible adult and dependent child.
The bill, which includes income limits to phase out rebates for higher earners and provisions to increase payments if tariff revenues exceed current projections, has garnered support from President Trump. However, the proposal is facing opposition from fellow Republicans due to concerns about the country's large deficits and potential for inflation.
Senator Hawley argues that the politics would be in favor of Republicans if the bill passes. He has offered numerous pieces of legislation this year to reshape his party, with mixed results. However, some GOP senators, including those who generally align with Hawley on tariffs, have stated they cannot support the proposal due to the country's large deficits and potential for inflation.
Senator Ron Johnson, for instance, opposes the tariff rebate checks, stating that the country is $37 trillion in debt and running $2 trillion a year deficits. Senator Rick Scott, while more charitable, also opposes the tariff rebate checks, stating that balancing the budget should be prioritized first.
Meanwhile, Senator Bernie Moreno, R-Ohio, argues that the checks would drive up prices for working-class people. These concerns echo those of some economists who worry that rebating tariff revenue could exacerbate inflation rather than help the deficit.
The American Worker Rebate Act builds on direct payment models used during the 2020 COVID-19 relief efforts. Tariff revenue hit record highs recently, with nearly $30 billion generated in June 2025 alone. The bill's idea originated from President Donald Trump.
As of early August 2025, the bill is still under public discussion but has not yet been enacted into law. Meanwhile, on Wednesday, Hawley's stock-trading ban is scheduled to get a committee vote. The tariff rebate checks, as of now, are not attracting much support in the GOP.
Sources:
- The Hill
- Senator Hawley’s official website
- Kiplinger
- The ongoing debate in the Senate regarding the American Worker Rebate Act is marked by disagreements on policy-and-legislation, with some Republicans expressing concerns about the country's large deficits and potential for inflation, particularly in relation to war-and-conflicts and general-news.
- Though Senator Josh Hawley argues that the politics of the American Worker Rebate Act would benefit his party, the proposal is facing opposition from within his own party, with senators like Ron Johnson and Rick Scott expressing reservations about the bill's impact on the budget deficit and potential for inflation.
