A new bill introduced in Congress would refund Americans for higher prices it says were caused by President Donald Trump’s tariffs, ruled illegal by the Supreme Court.
Newsweek contacted the White House via email early Wednesday morning ET for a response to this latest bill.
Why It Matters
Trump’s sweeping tariffs raised prices on everyday goods, costs often passed on to consumers.
A recent Supreme Court ruling limiting presidential authority over tariffs has opened the door to refund efforts in Congress.
What To Know
Democratic Representative Jasmine Crockett of Texas has introduced the Payback Act, legislation that would direct the U.S. Treasury to refund Americans for higher costs that the bill says were caused by U.S. tariffs imposed by Trump that were later ruled unlawful.
The bill follows a Supreme Court decision in Learning Resources, Inc. v. Trump, which reaffirmed that the Constitution gives Congress—not the president—the authority to impose tariffs.
It struck down a broad set of duties imposed under emergency powers.
Trump called the decision “a disgrace” shortly after the ruling was announced.
Under Crockett’s Payback Act, listed as H.R.7646 on the Congress website, the Treasury Department would be required to develop a transparent formula to calculate refunds tied to the increased prices consumers paid because of the tariffs.
Payments would be issued using existing Treasury systems, and the department would be required to report to Congress on how the refunds are carried out.
The proposal comes amid growing pressure to return money collected through the tariffs.
While the Supreme Court invalidated the duties themselves, it did not order refunds, leaving Congress to decide whether and how repayments should be made.
A separate, parallel effort is also underway in the Senate.
Democratic senators have introduced the Tariff Refund Act of 2026, which would require U.S. Customs and Border Protection to refund unlawfully collected Trump‑era tariffs—potentially with interest—though the bill does not mandate that large companies pass those refunds on to consumers.
The White House pushed back on that effort, with spokesman Kush Desai criticizing the proposal on Monday, telling CNBC: “President Trump used tariffs to actually deliver where Democrats could only talk, so naturally Democrats are rolling up their sleeves to undermine President Trump and the American people—pathetic but unsurprising.”
Supporters of refund legislation argue that consumers ultimately bore the cost of the tariffs through higher prices on goods ranging from groceries to household items.
The competing proposals reflect different approaches to addressing that burden following the court’s ruling.
What People Are Saying
Crockett said: “These illegal tariffs drove up costs for American families. If Americans were forced to pay higher prices because of executive overreach, then Americans deserve to be paid back. It’s that simple.”
Democratic Senator Elizabeth Warren of Massachusetts wrote on Saturday: “When someone illegally takes your money, that’s called stealing. Donald Trump stole your money with his illegal tariffs—and you paid higher prices on everything from housing to groceries. It’s time for Trump to pay up and give back your money.”
Of Democratic refund demands, Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “This is politics 101, and there is less than a zero-chance people will receive rebates for the tariffs they have paid. A repayment of the tariffs back to the US citizenry would not only materially impact the budgets but also increase inflationary pressures.”
Republican Senator Jon Husted of Ohio wrote on X on Friday: “Tariffs are an important tool for protecting American workers and confronting unfair trade practices. Today, the Supreme Court has spoken. In America, we respect the rule of law even when we disagree with it. I look forward to working with the President, his administration, and my colleagues in the Senate to continue supporting America-First trade policies, prioritizing American consumers and job creators, and pushing back on adversaries like China.”
Trump said: “The Supreme Court’s ruling on tariffs is deeply disappointing, and I’m ashamed of certain members of the court — absolutely ashamed—for not having the courage to do what’s right for our country.”
What Happens Next
The Payback Act has been referred to the House Committee on Ways and Means.
It must clear the tax‑writing panel before reaching the floor, though its prospects remain uncertain in a Republican‑controlled House.
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