Sponsors
The bill would provide targeted, largely automatic refunds to households and businesses harmed by certain tariffs and restore Congressional control over tariff policy, but it creates substantial administrative costs, legal uncertainty, fraud/estimation risks, and could limit executive flexibility in emergencies.
Low- and middle-income households (and other consumers) would receive direct refunds to offset tariff-driven price increases, reducing out-of-pocket costs for imported goods.
Refunds would be issued quickly and with low friction through automatic direct deposit or refundable tax credits, and a streamlined application for those without IRS/bank records would simplify access.
Refund calculations would be data-driven and targeted (adjusted by household income and geography using Customs/BEA/IRS/Fed data and independent analysis), focusing relief on those hit hardest.
Taxpayers would face higher federal administrative and implementation costs (IT, staffing, processing) to calculate, verify, and distribute refunds and to produce required reports.
Defining 'covered tariffs' and eligibility could trigger legal disputes and litigation, delaying payments and raising legal costs for businesses and the government.
Estimating tariff pass-through to consumers is methodologically difficult and may misattribute costs, causing some households or businesses to be over- or under-compensated.
Based on analysis of 6 sections of legislative text.
Directs Treasury to calculate and distribute refunds to U.S. consumers for amounts they paid because presidential tariffs were later found unauthorized.
Introduced February 23, 2026 by Jasmine Crockett · Last progress February 23, 2026
Requires the Treasury Department to create a formula and issue refunds to U.S. consumers for amounts they paid that were attributable to presidential tariffs later found to lack congressional authorization. The Treasury must publish the refund formula within 120 days, consult federal agencies and economists, issue refunds automatically where possible (using Treasury/IRS systems), offer a streamlined application for others, and report projected costs and timelines to Congress; GAO must review implementation after refunds begin.