New Bill Seeks Refunds for Consumers Hit by Trump Tariffs

The Payback Act would direct the Treasury Department to compensate Americans for higher costs caused by the former president's tariffs.

Published on Feb. 25, 2026

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A new bill introduced in Congress would refund Americans for higher prices it says were caused by President Donald Trump's tariffs, which were later ruled illegal by the Supreme Court. The Payback Act, introduced by Democratic Representative Jasmine Crockett of Texas, would direct the U.S. Treasury to calculate and issue refunds to consumers for the increased costs they faced due to the tariffs.

Why it matters

Trump's sweeping tariffs raised prices on everyday goods, with those costs often passed on to consumers. The recent Supreme Court ruling limiting presidential authority over tariffs has opened the door for refund efforts in Congress, as the court struck down a broad set of duties imposed under emergency powers.

The details

The Payback Act would require the Treasury Department 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. A separate, parallel effort is also underway in the Senate, with Democratic senators introducing the Tariff Refund Act of 2026, which would require U.S. Customs and Border Protection to refund unlawfully collected Trump-era tariffs.

  • The Supreme Court ruling in Learning Resources, Inc. v. Trump, which reaffirmed Congress' authority over tariffs, was announced recently.
  • The Payback Act, listed as H.R.7646, has been referred to the House Committee on Ways and Means.

The players

Jasmine Crockett

Democratic Representative from Texas who introduced the Payback Act.

Donald Trump

Former U.S. President whose tariffs are the subject of the refund efforts.

Elizabeth Warren

Democratic Senator from Massachusetts who has voiced support for refunding consumers for Trump's illegal tariffs.

Jon Husted

Republican Senator from Ohio who has defended the use of tariffs to protect American workers and confront unfair trade practices.

Kush Desai

White House spokesman who criticized Democratic efforts to refund Trump-era tariffs.

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What they’re saying

“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.”

— Jasmine Crockett, Democratic Representative (Newsweek)

“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.”

— Elizabeth Warren, Democratic Senator (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.”

— Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast (Newsweek)

“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.”

— Jon Husted, Republican Senator (X)

“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.”

— Donald Trump (Newsweek)

What’s next

The Payback Act has been referred to the House Committee on Ways and Means, where it must clear before reaching the floor. Its prospects remain uncertain in the Republican-controlled House.

The takeaway

The effort to refund consumers for the higher costs caused by Trump's tariffs highlights the ongoing political and legal battles over the president's use of trade policy. While the Supreme Court has limited presidential authority, Congress is now weighing different approaches to providing relief to Americans who bore the burden of the tariffs.