New ‘tariff rebates’ worth hundreds – or thousands – proposed: How would they work?

(NEXSTAR) – Two new bills have been introduced in Congress that, if passed, could give American taxpayers hundreds or thousands of dollars in so-called “tariff rebates.”

Earlier this year, the Supreme Court struck down the bulk of President Trump’s tariffs, leaving the administration to try and replace the lost revenue from that decision. New tariffs have been imposed, and 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 efforts succeed, congressional Democrats warned in a study out Friday, the administration’s import taxes will cost American households an average of $2,512 in 2026, up 44% from $1,745 in tariff costs last year.

Lawmakers, meanwhile, have called for relief for Americans, but it’s unclear how that would work.

The Supreme Court’s February decision did not give any guidance as to how the roughly $175 billion collected through tariffs would be refunded to importers. Several companies are already working to get those refunds, but only a few have said consumers have the chance to receive a portion of that money. If the collected tariff revenue has to be returned to importers, it’s unclear what money could or would fund tariff dividends to Americans. 

However, two new bills in Congress are now calling for tariff rebates for qualifying taxpayers.

Last week, Congressman Henry Cuellar, the Texas Democrat pardoned by Trump in December, and seven Senate Democrats introduced similar bills in their respective chambers.

Cuellar’s bill calls for $231.5 billion in direct payments

Cuellar’s bill, the “American Consumer Tariff Rebate Act of 2026,” would send direct payments to “help offset those higher costs” from tariffs. The bill calls for $231,350,000,000 – roughly how much consumers are said to have paid due to tariffs, according to the Congressional Budget Office and the Joint Economic Committee – to fund the payments.

“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 only be for taxpayers with an adjusted gross income below $400,000, and would be calculated based on how many taxpayers per filing status qualify. There would be an additional $125 for each qualifying child.

The average payment for a single-filer in Cuellar’s southern Texas district, for example, would be about $1,020. Heads of household could receive, on average, $1,530, while those who are married filing jointly could get $2,040.

The bill was referred 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 make a tax rebate program, funded by tariff revenue, for those “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 size of the rebates would vary based on filing status and adjusted gross income:

$600 for single filers making $90,000 or less,

$600 for heads of household making $120,000 or less,

$1,200 for joint filers making $180,000 or less.

There would be an additional $600 available for each qualifying child. That means a family of four with two working adults who file jointly and make less than $180,000 could receive $2,400.

The bill was referred to the Senate Committee on Finance last week.

What about other tariff rebates?

There have been other attempts to send Americans tariff rebates.

Last summer, Sen. Josh Hawley (R-Mo.) introduced the “American Worker Rebate Act of 2025” that would send out tariff rebates of “at least $600,” with variations based on family size, filing status, and household income. A family of four could, for example, receive $2,400.

Hawley’s bill was referred to the Senate Committee on Finance in July.

Rather than sending rebates directly, the “Trump Tariff Rebate Act,” introduced by Congressman Tim Burchett (R-Tenn.) in December, would increase the standard deduction for taxpayers. In a press release, Burchett said “taxes could be lowered” because of “Trump’s tariff revenue.”

Under the bill, the standard deduction for 2026 and 2027 would be increased “by the tariff rebate amount.” If the rebate amounts outlined in Burchett’s bill were added to the standard deductions for tax year 2026, that would mean:

A $4,000 increase for joint filers and surviving spouses to $36,200,

A $3,000 increase for heads of household to $27,150,

$2,000 for all other Americans to $18,100.

The bill was referred to the House Committee on Ways and Means last year.

The Associated Press contributed to this report.

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