California Democrat Proposes $2,000 Payments to Offset Tariff Costs

WASHINGTON, D.C. — Representative Ro Khanna, a California Democrat, is advocating for $2,000 payments to Americans earning under $100,000 to alleviate financial burdens caused by tariffs imposed by President Donald Trump. In an email to Newsweek on Thursday, Khanna stated, “Trump’s blanket tariffs are hurting American families,” suggesting that these payments are necessary to counter rising costs.

Since President Trump took office, his administration has implemented a series of tariffs aimed at reducing trade deficits and combating illegal immigration. These tariffs have led to fluctuating stock market performance and increased prices for consumer goods. According to recent reports, core prices have risen by 3.1 percent, excluding volatile categories like food and energy.

Earlier this year, Trump hinted at the possibility of rebate checks for Americans as a way to distribute income generated from tariffs. He mentioned on OAN that checks could range from “maybe $1,000 to $2,000” per person. In his recent video, Khanna highlighted the negative impact of tariffs, stating, “It has meant that all of us have higher prices for our groceries, higher prices for our housing, [and] higher cost-of-living.”

Khanna added that with the revenue generated from tariffs, “we should take this tariff revenue that has been an unfair tax and give it back to working families so that they can pay the bills.” He has also introduced a bipartisan bill with Rep. Don Bacon, a Nebraska Republican, to repeal coffee tariffs under the “No Coffee Tax Act,” unveiled earlier this month.

During the COVID-19 pandemic, Khanna previously supported stimulus checks for Americans. Similar proposals have surfaced in Congress, including the American Worker Rebate Act by Senator Josh Hawley, which seeks a $600 rebate per American. Customs duties from Trump’s tariffs have brought record revenue, with collections nearing $150 billion for the year by late July, including about $28 billion in July alone.

Treasury Secretary Steven Mnuchin indicated that customs duty revenues might surpass $500 billion annually as they continue to increase. President Trump remarked in August, “We have a lot of money coming in. It’s coming in tremendous numbers,” endorsing the concept of returning a dividend to taxpayers who have contributed significantly without receiving benefits.

Senator Hawley emphasized that Americans deserve a tax rebate following years of economic challenges under Biden’s policies. A senior official from the Department of Homeland Security praised the administration for improving economic conditions and job security for Americans.

If Khanna’s proposed legislation is introduced, it will be assigned to a committee for further consideration before a potential vote.

On Thursday, Trump reiterated the idea of a stimulus check, prompting Khanna to respond on social media, “Wasn’t this my proposal?”