President Donald Trump says he may give rebate checks to some Americans using the billions of dollars the government is collecting from new tariffs.
Speaking to reporters before leaving for Scotland on July 25, Trump said, "We're thinking about a little rebate. But the big thing we want to do is pay down debt."
So far, the US has collected around $100 billion in tariff revenue, with more expected, USA Today said. The money comes from taxes placed on goods imported from other countries.
These tariffs were put in place by Trump earlier this year as part of his new trade plan. Companies like Walmart and Ford have had to pay more for products they bring into the country, and while some have kept prices the same, others may pass the cost to customers.
The White House says this could bring in as much as $300 billion a year. Treasury Secretary Scott Bessent told Fox Business that this money gives the government a chance to reduce debt or return some of it to taxpayers.
Trump suggests the government could issue rebate checks to Americans from the $106 billion in tariff revenue collected this year from Americans. Giving us back our own tax money he unilaterally increased & calling it a rebate. https://t.co/b6jB61L3qh pic.twitter.com/OKCRKL7cje
— Fly Sistah 🪷 (@Fly_Sistah) July 25, 2025
Trump Eyes Tariff Cash to Help Pay US Debt, Possibly Fund Rebates
Trump mentioned that if rebates are approved, they may go to people with certain income levels, though he didn't say exactly who would qualify.
"A little rebate for people of a certain income level might be very nice," he said.
Giving out rebate checks is not new. During the COVID-19 pandemic, the government sent three rounds of checks to help Americans deal with financial hardship.
Two came while Trump was president, and a third was sent under President Biden.
But for any new rebate plan to happen, Congress must approve it. Right now, both the House and Senate are controlled by Republicans, many of whom support Trump's plans.
A new tax and spending law signed by Trump on July 4 did not include rebate checks but did offer tax cuts to lower- and middle-income earners.
According to CBS News, one new rule gives seniors a $6,000 tax deduction, which slowly goes away for people making more than $75,000 a year ($150,000 for couples).
Trump's main goal is to use the tariff money to pay off some of the country's $36 trillion debt.
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