Tariff rebate checks off the table: Here’s where the revenue is going instead

The government has ended tariff rebate checks, redirecting billions in collected revenue. Instead of direct payouts to Americans, funds will support debt reduction, infrastructure projects, and national economic priorities.

(Credit: CNET)

Tariff rebate checks removed: Many people in the U.S. had hopes that tariff rebate checks might come their way this year, but that dream has now been shut down. Treasury Secretary Scott Bessent made it clear this week that all the money coming from tariffs will not go back to households. Instead, it will be used to bring down the national debt, which he says is a much bigger priority.

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At one point, there was a lot of talk around something called the American Worker Rebate Act. That plan promised payments of $600 for adults and $2,400 for families. But now, those ideas are no longer on the table. Even the IRS has said they are not working on any rebate programs.

Tariff Money Rising

Bessent explained that the U.S. has already collected $150 billion in customs duties as of August 2025, and that number could climb past $300 billion before the year ends. He said collections have grown “substantially” beyond what they expected, but instead of sending checks to people, the administration wants to focus on debt. “We are laser-focused on fiscal responsibility,” he told CNBC.

The government believes that lowering the debt will help relieve financial pressure in the long run, even though many citizens right now are struggling with the cost of living crisis. At the same time, the U.S. and China agreed to extend their tariff truce for another 90 days, something Bessent said is “working pretty well.” China still brings in the biggest share of tariff money, keeping trade talks steady and cash flowing into America’s accounts.

A divided Congress

Not everyone agrees with this plan. Some lawmakers, like Senator Josh Hawley, argue that rebates would be better to give direct relief to families. But most Republican senators are standing behind Bessent’s plan to target the national debt instead of mailing out checks.

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A four-part strategy for the U.S.

Bessent outlined a plan composed by four different categories in order to stabilize the American economy. The plan includes:

Trade revenue increasement
Balanced economic expansion
Reduced borrowing interests
Market innovation and adaptation

Farheen Ashraf

Farheen Ashraf is a History graduate. She writes on a variety of topics, including business, entertainment, laws, poetry, stories, travel, and more. Her passion for writing has led her to explore a variety of genres.