Posted by As of July 28, 2025, the cumulative tariff collection for the year stands at $125.6 billion, a 130.9% increase compared to the same time last year. So, what happens to that money? It has been going into a general fund, which is managed by the Federal Reserve. The fund is like a checking account used to pay government expenses. Trump has suggested using the money to pay down government debt and sending rebate checks to Americans. Republican Sen. Josh Hawley has introduced a bill that would give $600 to eligible Americans. During the pandemic, the government sent out several stimulus checks. Round one was $1200, round two was $600, and round three was $1400. Not everyone got 3 checks. One required that you had to be an essential worker during the pandemic.
Since this is supposed to be a democracy, my suggestion is to let each taxpayer decide how to use their share of the rebate. Give us 3 options: Receive a $600 rebate, use the rebate to pay down the national debt, or put the money into the Social Security fund. I read the comments on a video that was posted about the rebate and the majority of people said that they wanted the rebate. Of course, the video did not give people the choice of how to use the rebate, only if they wanted one. Since I am close to applying for SS, I would choose to have my rebate added to that fund. I think a lot of older taxpayers would feel the same way. Middle-aged taxpayers might feel that it is more important to reduce the national debt, while younger folks who are just starting a career and a family would want to receive the rebate.