Some Tennessee residents could soon see an extra $500 in their bank accounts.
On Sept. 10, Trump announced in a White House video statement that his administration would refund $500 million to people allegedly overcharged by the Affordable Care Act's federal health insurance exchange.
Treasury Department checks, along with letters signed by Trump notifying recipients, will begin going out to more than 950,000 Americans across 30 states, an administration official said.
"For years, the Biden administration overcharged you to fund the operation of HealthCare.gov," Trump says in the letter, which USA TODAY reviewed. "That money belongs to hard-working Americans, not the Government, and now I'm returning it to you!"
The White House said the Biden administration
collected user fees from health insurance companies, which consumers covered through higher premiums, and that those premiums were higher than necessary to operate the exchange. The Trump administration has alleged that the Biden administration withheld the surplus.
The payments, distributed five weeks before the midterm elections in November, arrive at a time when Americans' concerns about high expenses and affordability pose significant political challenges for Republicans aligned with Trump as they try to maintain control of Congress.
Here is what Tennesseans need to know about the incoming checks.
Which states will get $500 checks from Trump?
Only 30 states will receive refund checks across the United States. These states do not operate their own ACA insurance plan exchanges and rely on federal exchanges administered by the Centers for Medicare & Medicaid Services, the White House said.
The 30 states are Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Hawaii, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin and Wyoming.
Americans in the other 20 states won't receive checks because their states run their own exchanges, and the federal government did not collect user fees.
Who will receive $500 checks from Trump?
The majority of recipients have incomes around 400% of the federal poverty threshold ‒ $64,000 for an individual or $132,000 for a household of four ‒ although it also includes some individuals earning between 100% and 400% of the poverty line, according to the White House.
"I am proud to return your money to you, and I will never stop fighting to put the American people first, restore affordability, protect your hard-earned money, and lower the cost of health care," Trump says in the letter. "May God bless you, and may He continue to bless the United States of America."
Previous dividend check proposals from the Trump administration
Several pieces of legislation have been introduced to bring stimulus checks before Congress for approval, but none have been approved so far during Trump's second administration.
Sen. Josh Hawley (R-Mo) introduced the American Worker Rebate Act of 2025 on July 28, 2025, which would provide at least $600 per adult and dependent child, or $2,400 for a family of four.
Rep. Henry Cuellar, a Texas Democrat, introduced the "American Consumer Tariff Rebate Act of 2026" on March 9. The bill aims to allocate $231.35 billion for rebate payments to Americans, roughly the amount consumers are estimated to have paid in tariffs, according to the Congressional Budget Office and the Joint Economic Committee.
Sen. Martin Heinrich, D-N.M., introduced the "Tariff Refunds for Working Families Act" to the Senate on March 12. According to CNBC, the rebate would pay $1,200 to joint filers making under $180,000 annually and $600 for each additional child.
Although no formal legislation was enacted, the idea of stimulus checks emerged early in the Trump administration's second term, funded by savings from budget cuts under the Department of Government Efficiency. The proposal, which echoes Trump's latest plan, was to give American taxpayers a $5,000 stimulus check from money saved under the Department of Government Efficiency, led by Elon Musk.
Trump promises $5,000 checks at Republican convention
On Sept. 9, the day before he announced the $500 ACA checks, Trump announced plans to issue $5,000 dividends to every U.S. adult if Republicans hold onto control of Congress in November.
"Because of our tremendous strength and success economically, I will issue a dividend to every adult citizen in the United States of America for $5,000," he said. "Please pretend that I'm running and get out and vote on November 3rd or sooner because in actuality I really am running."
It's not fully clear how the dividends would be paid or how much they would cost, though the president credited funds from the tariffs he has levied on imports with making it possible.
USA TODAY contributed to this report.
Jordan Green covers trending news for The Commercial Appeal and Tennessee. She can be reached at jordan.green@commercialappeal.com.
This article originally appeared on Nashville Tennessean: Trump's $500 ACA refund checks are only going to 30 states. Tennessee is one of them
