Trump rebate checks: What we know about the president’s new scheme to provide direct payments to taxpayers

President Trump announced on Friday that he is considering issuing rebate checks to Americans, funded by the billions of dollars in tariff revenue collected under his administration. While emphasizing that reducing the national debt (now over $36 trillion) is a key priority, Trump said the rebates could be directed at “people of a certain income level,” though he did not specify what the income threshold would be.

What to know about Trump’s potential rebate checks

The U.S. government has collected approximately $100 billion in tariff revenue this year, and Treasury Secretary Scott Bessent has projected that amount could grow to $300 billion annually. These tariffs are paid by American importers and manufacturers who bring in goods from abroad, and while some companies have absorbed the higher costs, recent inflation data suggest these expenses are beginning to reach consumers.

This is not the first time Trump has floated the idea of rebate payments. In February, he suggested using 20% of the savings from Elon Musk’s cost-cutting initiative, the Department of Government Efficiency (DOGE), to fund direct checks to taxpayers. A precedent exists for such payments: three rounds of rebate checks were issued during the COVID-19 pandemic - two under Trump and one under President Biden - to offset the economic impact of the crisis.

For any new rebates to be implemented, however, congressional approval would be required to authorize the Treasury Department to distribute funds through the tax code. Although a major tax and spending bill, the One Big Beautiful Bill Act, was recently signed into law on July 4, it does not include a rebate provision. The legislation does, however, provide several new tax cuts, including a $6,000 deduction for senior citizens, which phases out for single filers earning over $75,000 and married couples earning over $150,000.

In short, while the rebate proposal is being explored, it’s still speculative and would face legislative hurdles.

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