Two newly proposed bills in Congress could provide American taxpayers with hundreds or even thousands of dollars in what lawmakers are calling “tariff rebates” if they become law.
Earlier this year, the Supreme Court struck down most of President Trump’s tariffs, prompting the administration to look for ways to recover the revenue lost from that ruling. In response, officials imposed new tariffs. A White House spokesperson told the Associated Press that “President Trump will continue using tariffs to renegotiate broken trade deals, lower drug prices, and secure trillions in investments for the American people.”
If Trump’s tariff strategy proves successful, congressional Democrats warned in a study released Friday that the administration’s import taxes could cost American households an average of $2,512 in 2026. That figure represents a 44% increase from the $1,745 in tariff-related costs recorded last year.
Meanwhile, lawmakers have urged relief measures for Americans, though how those would actually work remains uncertain.
The Supreme Court’s February ruling did not explain how the roughly $175 billion collected through tariffs should be refunded to importers. Several companies have already begun efforts to recover those funds, but only a few have indicated that consumers might receive a share of that money. If officials must return the collected tariff revenue to importers, it remains unclear what funds could support tariff dividends for Americans.
Still, two new bills in Congress now propose tariff rebates for eligible taxpayers.
Last week, Congressman Henry Cuellar, the Texas Democrat pardoned by Trump in December, joined seven Senate Democrats to introduce similar bills in their respective chambers.
Cuellar’s bill calls for $231.5 billion in direct payments
Cuellar’s proposal, the American Consumer Tariff Rebate Act of 2026, would issue direct payments intended to “help offset those higher costs” caused by tariffs. The legislation proposes $231,350,000,000 in funding—roughly the amount consumers reportedly paid due to tariffs, according to the Congressional Budget Office and the Joint Economic Committee.
“Tariffs function as hidden taxes on families and create uncertainty for businesses,” Cuellar said in a press release. “When companies pay more to import goods and materials, those added costs are passed on to consumers, driving up prices on groceries, fuel and energy, vehicles and auto parts, building materials, and other everyday household items.”
These payments would apply only to taxpayers with an adjusted gross income below $400,000, and the amounts would be calculated based on how many taxpayers qualify under each filing status. Families would also receive an additional $125 for every qualifying child.
For example, the average payment for a single filer in Cuellar’s southern Texas district would be about $1,020. Heads of household could receive an average of $1,530, while married couples filing jointly could get about $2,040.
Lawmakers referred the bill to the House Committee on Ways and Means last week.
Payments up to $1,200 – or more – possible with Senate bill
A group of Democratic senators – Cory Booker and Andy Kim of New Jersey, Ruben Gallego of Arizona, Chris Van Hollen of Maryland, Chris Coons of Delaware, Kirsten Gillibrand of New York, Tammy Duckworth of Illinois, and Jack Reed of Rhode Island – have cosponsored Sen. Martin Heinrich (D-N.M.)’s Tariff Refunds for Working Families Act.
The bill would establish a tax rebate program funded by tariff revenue for Americans “who have paid increased prices for groceries and everyday essentials due to President Trump’s unlawful foreign tariffs.”
“The President may call the affordability crisis a ‘hoax,’ but working people feel it every time they pay for groceries or everyday essentials,” Heinrich said in a press release. “This bill will return the money lost to Trump’s tariffs back to the people who paid the price.”
The rebate amounts would vary depending on filing status and adjusted gross income:
Families could also receive an additional $600 for each qualifying child. This means a family of four with two working adults who file jointly and earn less than $180,000 could receive $2,400.
Lawmakers referred the bill to the Senate Committee on Finance last week.
What about other tariff rebates?
Lawmakers have made other attempts to send tariff rebates to Americans.
Last summer, Sen. Josh Hawley (R-Mo.) introduced the American Worker Rebate Act of 2025, which would provide tariff rebates of “at least $600,” with the final amounts depending on family size, filing status, and household income. For instance, a family of four could receive $2,400.
The Senate Committee on Finance received Hawley’s bill in July.
Instead of issuing direct rebates, the Trump Tariff Rebate Act, introduced by Congressman Tim Burchett (R-Tenn.) in December, proposes increasing the standard deduction for taxpayers. In a press release, Burchett said “taxes could be lowered” because of “Trump’s tariff revenue.”
Under this bill, the standard deduction for 2026 and 2027 would rise “by the tariff rebate amount.” If lawmakers added the rebate figures outlined in Burchett’s proposal to the standard deductions for tax year 2026, it would result in:
Lawmakers referred the bill to the House Committee on Ways and Means last year.