Senator John Hickenlooper and 21 Senate colleagues introduced the Tariff Refund Act of 2026 this week, a bill that would require the Trump administration to fully refund, with interest, tariffs the Supreme Court has ruled were collected illegally.
The bill follows a 6-3 Supreme Court ruling that struck down a set of tariffs the administration imposed without specific congressional authorization. Sponsors of the legislation, including Senators Mark Warner and Tim Kaine of Virginia, estimate the federal government has collected roughly $175 billion in tariff revenue under the rules the court invalidated. The bill’s text was released by the Senate Finance Committee and co-sponsors from both parties.
Under the bill, U.S. Customs and Border Protection would be directed to process refunds without requiring importers, particularly small businesses, to take costly administrative steps to recover the money. The legislation also directs CBP to coordinate with the Small Business Administration to provide technical support to companies seeking refunds, and it sets reporting requirements meant to give Congress oversight of how quickly the payments go out.
What happens next for the bill?
The Tariff Refund Act was referred to the Senate Finance Committee, where it will need to clear committee before reaching the floor. A companion measure in the House, the American Consumer Tariff Rebate Act of 2026, was introduced separately by Representative Henry Cuellar of Texas. Neither bill has been scheduled for a committee vote as of this week, and the Trump administration has not issued a formal response to either proposal.
Sponsors argue the refunds would provide relief to businesses and consumers who absorbed higher costs while the tariffs were in effect. Analysts cited in coverage of the bill’s rollout estimated that a typical American family paid several thousand dollars more over the life of the tariffs, though estimates vary by region and household spending patterns. Administration officials have previously signaled they may seek alternative legal authority to reimpose similar tariffs even if the refund legislation advances.
Treasury Secretary Scott Bessent has resisted characterizing the situation as owing refunds directly to consumers, saying in earlier remarks that “the American people won’t see” the disputed revenue and dismissing questions about broad refunds as “bad framing.” Customs and Border Protection has already processed some claims through an online portal it launched earlier this year, known as CAPE, which the agency said had accepted more than $85 billion in potential and certified refund claims, including roughly $20.6 billion forwarded to the Treasury Department for disbursement as of late May. The bill’s sponsors say a formal legislative mandate is still needed to guarantee refunds move forward on a fixed timeline.
Sources: Senator John Hickenlooper · Senator Tim Kaine · Congress.gov
