Lawmakers in Congress introduced a bill this week directing the federal government to issue refund checks to Americans. This is intended to offset higher prices linked to President Donald Trump’s tariff policies. Key tariffs were ruled unlawful by the U.S. Supreme Court.
The proposal, called the Payback Act, was introduced by Democratic Representative Jasmine Crockett of Texas. It requires the U.S. Treasury Department to calculate and return money related to increased consumer costs that the bill claims resulted from tariffs later declared illegal by the courts.
The Supreme Court affirmed in February that Trump exceeded his authority when he used the International Emergency Economic Powers Act to impose sweeping tariffs on imports in 2025. This decision effectively struck down much of his emergency tariff program. Although the court ruled the tariffs illegal, it did not specify how refunds should be managed, creating a gap that Crockett’s bill aims to address.
The Payback Act would require the Treasury to determine and issue refunds to individuals, families, and businesses that can prove they paid higher costs linked to the now-invalidated tariffs. Crockett stated that the legislation aims to return money to consumers who absorbed price increases for goods ranging from electronics to household items.
Some believe the bill would provide relief to households and small businesses that faced higher prices at the checkout because of the tariffs. Analysis from independent models suggests the government might owe over $175 billion in tariff collections, creating a big pool for refunds.
Trump illegally jacked up costs on the American people. The Payback Act says: run us our money back. pic.twitter.com/tJOCjBiuwD
— Congresswoman Jasmine Crockett (@RepJasmine) February 23, 2026
State leaders cheered the SCOTUS decision and similar requests. New York Governor Kathy Hochul sent a formal request to the Trump administration this week, asking for a $13.5 billion refund, stating that tariffs have burdened families and small businesses in her state. Governors from Illinois and California have made related demands, showing the political pressure rising nationwide for some form of reimbursement.
Senate Democrats introduced a different bill calling for the government to fully refund over $175 billion in tariff revenues, including interest, and to prioritize returns to small businesses and manufacturers. This proposal, led by Senators Ron Wyden, Ed Markey, and Jeanne Shaheen, would require U.S. Customs and Border Protection to issue refunds within 180 days if it passes.
Treasury officials indicated that the administration expects lower courts to define the details of any refund process. This creates uncertainty about how soon Americans might get payments. Treasury Secretary Scott Bessent told reporters that the Supreme Court’s decision did not itself mandate refunds and that further legal disputes will likely determine how and when money could be returned.
Business groups and importers are also seeking legal ways to recover tariff costs. An increasing number of companies, including major brands like L’Oréal and Dyson, have sued the federal government in the U.S. Court of International Trade for refunds of tariffs paid under the now-invalidated policy. FedEx recently filed its own lawsuit, highlighting the widespread legal pressure on the issue.
Calculating exact individual or household losses will certainly be a complex task. Tariffs impact a wide range of goods, and price changes often spread through supply chains. Some consumers might not see direct relief even if refunds are required, and legal battles over how to calculate refunds and who qualifies could last for years.
The Payback Act has an uncertain path through a divided Congress. House Republican leaders have not shown support, despite taking a beating in the polls over the rising cost of living.
