[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7646 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7646

To direct the Secretary of the United States Department of the Treasury 
to refund American consumers for increased costs resulting from tariffs 
  imposed without congressional authorization, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 2026

 Ms. Crockett introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To direct the Secretary of the United States Department of the Treasury 
to refund American consumers for increased costs resulting from tariffs 
  imposed without congressional authorization, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Payback Act''.

SEC. 2. CONGRESSIONAL FINDINGS.

    Congress finds the following:
            (1) In Learning Resources, Inc. v. Trump, the Supreme Court 
        of the United States clarified that although the International 
        Emergency Economic Powers Act authorizes the President to 
        exercise certain economic authorities during a bona fide 
        national emergency, that statute does not confer authority to 
        impose tariffs absent clear and express congressional 
        authorization; in so holding, the Court reaffirmed that article 
        I, section 8 of the Constitution vests exclusively in Congress 
        the power to lay and collect duties and tariffs, and that such 
        legislative authority may not be exercised by the executive 
        branch solely by virtue of an emergency declaration.
            (2) The Constitution establishes a deliberate separation of 
        powers, vesting in Congress alone the authority to lay and 
        collect taxes, duties, imposts, and excises under article I, 
        section 8; allowing the executive branch to unilaterally impose 
        tariffs absent explicit congressional authorization would 
        improperly transfer core legislative power to the Presidency, 
        erode democratic accountability, and undermine the foundational 
        principle that laws affecting the economic lives of Americans 
        must originate with the people's elected representatives.
            (3) These unlawful tariffs resulted in billions of dollars 
        in collections by the Federal Government and materially 
        increased the prices of goods for American consumers, 
        functioning as a regressive tax that disproportionately 
        burdened working families, seniors, and small businesses.
            (4) American consumers bore the direct financial 
        consequences of these actions through higher costs on everyday 
        necessities, without meaningful notice, representation, or 
        recourse, and shall be made whole through a transparent and 
        congressionally directed refund process administered by the 
        Federal Government.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Covered tariffs.--The term ``covered tariffs'' means 
        any duties or fees imposed pursuant to Presidential 
        proclamations or Executive orders under the International 
        Emergency Economic Powers Act that were subsequently determined 
        to lack congressional authorization.

SEC. 4. ESTABLISHMENT OF CONSUMER REFUND FORMULA.

    (a) Not later than 120 days after enactment of this Act, the 
Secretary of the Treasury shall develop and publish a formula to 
calculate refunds to American consumers for amounts paid that were 
attributable to covered tariffs.
    (b) The refund formula shall--
            (1) quantify total consumer cost increases tied to covered 
        tariffs using data from U.S. Customs and Border Protection, the 
        Bureau of Economic Analysis, and other relevant Federal 
        datasets;
            (2) estimate pass-through effects from importers, 
        distributors, and retailers to end consumers; and
            (3) incorporate equitable adjustments based on household 
        income and geographic disparities.
    (c) Consultation.--In developing the formula, the Secretary shall 
consult with the Bureau of Economic Analysis, the Internal Revenue 
Service, the Federal Reserve Board, and independent economists with 
expertise in trade policy and consumer pricing.

SEC. 5. DISTRIBUTION OF REFUNDS.

    (a) To the maximum extent practicable, refunds shall be issued 
automatically using existing Treasury and Internal Revenue Service 
payment systems, including direct deposit or refundable tax credits.
    (b) For individuals not captured through existing systems, the 
Secretary shall establish a streamlined application process requiring 
minimal documentation.

SEC. 6. REPORT TO CONGRESS AND OVERSIGHT.

    Not later than 180 days after enactment, the Secretary shall submit 
a report to Congress detailing the finalized refund formula, total 
anticipated refund obligations, and projected distribution timelines. 
The Government Accountability Office shall review the implementation of 
this Act and submit findings to Congress not later than one year after 
refunds commence.
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