Senator Martin Heinrich of New Mexico is leading a new legislative push aimed at refunding Americans for higher prices caused by tariffs imposed by President Donald Trump’s administration—tariffs that courts, including the Supreme Court, have ruled were unlawful.
The proposal, introduced by a group of Senate Democrats, would create a new tax rebate program designed to return tariff revenue directly to working- and middle‑income households that shouldered the cost of higher grocery bills and everyday essentials.
The bill, titled the Tariff Refunds for Working Families Act, comes amid rising concerns about affordability, as food, consumer goods, and household items remain costly for many Americans.
Heinrich’s Response to ‘Unlawful’ Tariffs
Heinrich and his Democratic colleagues said in a press release that the legislation is a direct response to court decisions that overturned a broad swath of Trump’s tariffs. In February, the Supreme Court ruled that Trump improperly used emergency powers under the International Emergency Economic Powers Act to impose some of his most sweeping tariffs, finding that the authority to levy such taxes rests with Congress.
According to the senators backing the bill, those tariffs increased costs for consumers as importers passed higher prices on to households.
A report from the U.S. Congress Joint Economic Committee cited in the press release found that American families have paid more than $1,700 on average because of the tariffs, with New Mexico families paying roughly $1,355 each.
“The President may call the affordability crisis a ‘hoax,’ but working people feel it every time they pay for groceries or everyday essentials. This bill will return the money lost to Trump’s tariffs back to the people who paid the price,” Heinrich said, arguing that the revenue collected from the tariffs should go back to the families who absorbed the higher costs rather than remain with the federal government.
How the Refund Program Would Work
The Tariff Refunds for Working Families Act would establish a “Working Families Refund,” structured as a tax rebate delivered through the Internal Revenue Service.
Under the proposal, eligible taxpayers would receive:
$600 for single filers earning $90,000 or less,$600 for heads of household earning $120,000 or less,$1,200 for married couples filing jointly earning $180,000 or less, andAn additional $600 for each dependent child.
In practical terms, a family of four with two dependent children earning less than $180,000 annually could receive a total rebate of $2,400.
Supporters say the income thresholds are designed to target households more likely to have felt the price pressure from tariffs on consumer goods, while excluding higher earners.
Funding for the rebates would come from tariff revenue already collected, which lawmakers estimate totals more than $160 billion nationwide, according to Public Now.
Next Steps
The legislation is co‑sponsored by several Senate Democrats, including Ruben Gallego of Arizona, Chris Van Hollen of Maryland, Cory Booker of New Jersey, Kirsten Gillibrand of New York, Tammy Duckworth of Illinois, and others.
Supporters say the rebate taps existing revenue rather than creating new costs, making it a straightforward way to provide relief without increasing the deficit.