Lawmakers in the United States are advancing a proposal that could deliver up to $1,200 in tariff-related refund checks to eligible households, as pressure mounts to ease the financial strain caused by rising prices.
The move follows a major ruling by the US Supreme Court, which struck down much of Donald Trump’s tariff policy. In response, the administration has been working on plans to return roughly $166 billion in tariff revenue to importers who directly paid the duties. However, lawmakers say everyday Americans also deserve relief, as they ultimately absorbed higher costs.
Why a new rebate is being proposed
Senator Martin Heinrich introduced the “Tariff Refunds for Working Families Act,” aimed at compensating consumers impacted by tariff-driven price increases.
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“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 statement. He added that the legislation seeks to return money “back to the people who paid the price.”
{{/usCountry}}“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 statement. He added that the legislation seeks to return money “back to the people who paid the price.”
{{/usCountry}}Economic data has supported the claim that consumers bore much of the burden. A study by the Federal Reserve Bank of New York found that “the bulk” of tariff costs fell on US firms and households, while estimates suggest families have paid an average of $1,745 due to tariffs.
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Who could qualify for payments?
Under the proposed plan, refund amounts would depend on income:
- Up to $600 for individuals earning $90,000 or less
- $600 for heads of household earning up to $120,000
- Up to $1,200 for married couples filing jointly earning $180,000 or less
Families would also be eligible for an additional $600 per dependent child. The bill specifies that the payments would not include the president’s name, unlike previous stimulus checks.
Other proposals and what’s next
A separate proposal from Henry Cuellar also seeks to provide relief, with payments tied to income below $400,000 and additional support per child.
Both measures remain under consideration and would require approval from Congress before becoming law.