Nearly one million Americans are set to receive $500 refund checks from the US government as part of a new initiative announced by President Donald Trump.

The Treasury Department is expected to send payments to more than 950,000 people across 30 states. Recipients will also receive a letter signed by Trump explaining the payment.

Why is Trump sending $500 checks?

The White House says the payments are meant to return excess fees collected through the Affordable Care Act’s federal insurance exchange.

The Trump administration claims that exchange user fees were passed on to consumers through higher insurance premiums and that more money was collected than was needed to operate the federal marketplace.

The administration says the refunds are intended for people who paid the full cost of their ACA coverage without receiving premium assistance.

However, the characterization of the funds as money overcharged by the Biden administration has been challenged. Healthcare policy experts cited by AP questioned whether the surplus necessarily came from the Biden years, noting that some of the relevant fees may have been collected during Trump’s first term.

Who will receive the $500 payment?

The refunds are being sent to eligible ACA enrollees in 30 states that use the federally facilitated marketplace through HealthCare.gov.

The 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.

People in states that operate their own ACA marketplaces are not included in this program because the federal government did not collect the relevant exchange fees from those state-run exchanges.

How much money will Americans receive?

Eligible recipients will receive a one-time payment of $500 per person.

According to the White House, most recipients earn around 400% of the federal poverty level. That is approximately $64,000 for an individual or $132,000 for a family of four, although the eligibility pool also includes some people between 100% and 400% of the federal poverty level.

Recipients have already been identified and are not required to submit a new application for the refund.

When will the checks be sent?

The Trump administration announced the program on September 10, saying payments would begin within weeks.

Treasury Department payments are now beginning to go out, with more than 950,000 Americans across the 30 eligible states expected to receive the refunds.

The payments come shortly before the November 2026 midterm elections. The administration has presented the refunds as part of its efforts to address healthcare affordability.

The $500 refunds are separate from Trump’s previously proposed $5,000 payment to Americans, which he has discussed in connection with Republicans retaining control of Congress.