Understanding Trump’s December 2025 Stimulus Proposal
As December 2025 progresses, many Americans are searching for clarity regarding potential stimulus payments. While rumors have been circulating, Congress has not authorized any new federal stimulus checks, and the IRS has not issued official plans for deposits.
The Background: Recovery Rebate Program
The last federal stimulus payments were issued as part of the Recovery Rebate Credit, which concluded in early 2025. Eligible taxpayers received up to $1,400, and no applications were necessary for recipients. This program officially ended after the tax filing deadline on April 15, 2025, and no extensions were provided.
Trump’s December Proposal
On December 2, 2025, former President Donald Trump proposed a $2,000 tariff dividend for middle- and low-income Americans. According to Trump, the plan would use revenues generated from tariffs to fund these payments. He claimed this initiative could make the upcoming tax refund season “the largest ever.” High-income earners would not qualify under the proposal.
The proposal aligns with the American Worker Rebate Act of 2025, which is stalled in Congress. This bill, if passed, would provide $600 per adult and an additional $600 per dependent child. For instance, a family of four could receive up to $2,400 under certain income thresholds. However, without Congressional approval, the IRS lacks the authority to act.
Expert Reactions and Questions
While the proposal sounds appealing, many budget analysts and legal experts remain skeptical. Erica York from the Tax Foundation stated that the “numbers don’t add up,” casting doubt on the feasibility of financing these payments through tariffs.
Treasury Secretary Scott Bessent also expressed surprise about the announcement. While he confirmed the administration’s commitment to providing relief for Americans earning $100,000 or less, he suggested that funding might come through tax cuts rather than direct payments.
IRS Warnings Against Scammers
The IRS has issued warnings about a rise in online scams targeting individuals awaiting potential stimulus payments. Fraudulent messages claiming, “Claim your December stimulus now,” often request sensitive information like social security numbers or bank details through emails and texts. It is crucial to always verify official updates from IRS.gov.
What Lies Ahead
For now, there are no confirmed timelines for the American Worker Rebate Act or Trump’s tariff proposal. In a best-case scenario, any payments would likely come in mid-2026, depending on legislative approval.
Looking to Stay Financially Secure?
Financial uncertainty can feel overwhelming, especially during times like this. Planning ahead is crucial. Consider exploring high-yield savings accounts or investment tools to protect your financial future. For those looking to invest, platforms like Merrill Edge offer easy ways to begin investing in stocks, bonds, and mutual funds.
