Findings

Congress finds the following: (1)President Trump’s tariffs imposed under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA) in many sectors raised prices for consumers and imposed additional costs on businesses. (2)Research has shown that consumers have shouldered up to 96 percent of the burden of the IEEPA tariffs, meaning companies have passed the increased costs in their supply chains due to tariffs on to consumers in the form of higher prices. (3) Given the Supreme Court’s holding in Learning Resources, Inc. v. Trump that the tariffs imposed by President Trump under IEEPA are unlawful, the Administration must ensure that consumers, not just large corporations, are the ones who receive relief from the costs of these tariffs. (4)As consideration of refunding tariffs paid due to the President’s policies is undertaken by the Administration and the courts, priority should be given to ensuring that final consumers of products subject to tariffs obtain relief. It is unlikely that large corporations will pass on to consumers the benefit of any tariff refunds they receive without specific stipulations to that effect. (5)Therefore, the Secretary of the Treasury, the Commissioner of U.S. Customs and Border Protection, and the head of any other relevant Federal agency should rapidly draft and implement rules to ensure tariff refunds are returned directly to consumers in the form of price reductions or rebates.

Tariff refund program

(a)

Establishment

Not later than 30 days after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Commissioner of U.S. Customs and Border Protection, shall promulgate such regulations as may be necessary to carry out a program by which covered importers may receive refunds in the amount the Secretary determines such covered importers paid the United States in tariffs or other duties imposed through the assertion of authorities provided by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) and invalidated by the Supreme Court in Learning Resources, Inc. v. Trump on February 20, 2026. (b)

Application requirements

In applying for a refund under the regulations promulgated pursuant to this section, a covered importer shall— (1)set forth in the application the steps such covered importer intends to take to lower the prices paid by their customers for goods formerly subject to such tariffs, in full proportion to the refund applied to be received with respect to such goods; and (2)demonstrate, to the extent practicable— (A)that such reductions in prices are targeted towards essential consumer goods; (B)to the extent that the covered importer does not trade in essential consumer goods, that the covered importer has implemented other means by which prior customers of the importer can receive rebates or refunds on prospective purchases commensurate with the amount refunded; or (C)that the covered importer did not increase customer prices due to the imposition of the tariffs described in subsection (a) and instead absorbed that cost directly. (c)

Prioritization

The Secretary shall prioritize the payment of refunds described in subsection (a) to— (1)covered importers that credibly demonstrate, as described in subsection (b)(2)(A), that in anticipation of receiving such refunds the covered importer has reduced prices for essential consumer goods; and (2)covered importers that credibly demonstrate, as described in subsection (b)(2)(B), that in anticipation of receiving such refunds the covered importer has created a mechanism for prior consumers to receive rebates on prospective purchases. (d)

Prohibition

No covered importer may conduct stock buybacks or distribute dividends unless the covered importer certifies to the Secretary of the Treasury that the covered importer has completed the steps to lower prices for consumers described in subsection (b)(1). (e)

Consultation

In carrying out the regulations promulgated pursuant to this section, the Secretary of the Treasury shall consult as appropriate with the heads of other relevant Federal departments and agencies. (f)

Deadline for refunds

(1)

In general

The Secretary of the Treasury, in coordination with the heads of other relevant Federal departments and agencies, as appropriate, shall take such steps as may be necessary to ensure that all tariffs and other duties described in subsection (a) are refunded not later than 180 days after the date of the enactment of this Act, except to the extent that covered importers are unable to meet the applicable requirements of the program established by such subsection. (2)

Voluntary price reduction

Nothing in this subsection may be construed to prohibit or limit any importer that paid any amount in tariffs or other duties described in subsection (a) from voluntarily lowering prices in the manner described in subsection (b)(1). (g)

Definitions

In this Act: (1)The term covered importer means an entity that paid $5,000,000 or more in tariffs or other duties described in subsection (a) as of February 19, 2026, other than any such entity whose ultimate parent entity earned less than $10,000,000 in revenue in calendar year 2025. (2)The term essential consumer goods means— (A)infant formula and infant and toddler food goods; (B)diapers and essential infant clothing and safety products; (C)hygiene and health care products; (D)foodstuffs eligible to be purchased with supplemental nutrition assistance program benefits, as identified by the Secretary of Agriculture; (E)basic clothing items, including shoes; (F)children’s toys and sporting goods with a manufacturer’s suggested retail price of less than $50; and (G)such other consumer goods as the Secretary of the Treasury determines appropriate.