Tariff Revenue Dispute Heads to Court

Billions in tariffs collected under IEEPA may not be returned to American taxpayers.

Published on Feb. 21, 2026

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The Supreme Court recently ruled that the International Emergency Economic Powers Act (IEEPA), under which the administration collected around $175 billion in tariffs, was unconstitutional. However, the court did not rule on who gets the money back, leaving that decision to the International Tax and Trade Court. According to Ray Washburne and Scott Bessent, this could lead to a drawn-out legal battle, with Bessent predicting that the American people may not see that money returned.

Why it matters

The tariffs collected under the IEEPA were a significant source of revenue for the federal government, and their return to taxpayers could have a meaningful economic impact. However, the legal dispute over who gets the money back adds uncertainty and could delay any potential refunds.

The details

During an event at the Economic Club of Dallas, Ray Washburne noted that the administration had collected about $175 billion in tariffs under the IEEPA before the court ruled it unconstitutional. Washburne asked, "But is that going to be in dispute? Like who gets it back?" Scott Bessent confirmed that the issue is in dispute, as the Supreme Court did not rule on that and pushed it back down to the International Tax and Trade Court, which could take "weeks, months, years" to resolve.

  • The Supreme Court recently ruled the IEEPA unconstitutional.
  • The administration collected around $175 billion in tariffs under the IEEPA.

The players

Ray Washburne

An attendee at the Economic Club of Dallas event.

Scott Bessent

Confirmed that the issue of who gets the $175 billion in tariffs back is in dispute and could be dragged out for a long time.

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What they’re saying

“But is that going to be in dispute? Like who gets it back?”

— Ray Washburne (democraticunderground.com)

“Yeah, it's in dispute. The Supreme Court did not rule on that today. They pushed it back down to the International Tax and Trade Court. And my sense is that could be dragged out for weeks, months, years.”

— Scott Bessent (democraticunderground.com)

“Well, that's going to be a food fight going after the $175 billion.”

— Ray Washburne (democraticunderground.com)

“I got a feeling the American people won't see it.”

— Scott Bessent (democraticunderground.com)

What’s next

The International Tax and Trade Court will now determine who gets the $175 billion in tariffs collected under the IEEPA, a process that could take a significant amount of time.

The takeaway

The legal dispute over the $175 billion in tariffs collected under the IEEPA highlights the complexities and uncertainties surrounding the return of government revenue, even after a policy has been deemed unconstitutional. This could have significant economic implications for American taxpayers.