U.S. lawmakers are advancing a proposal that could provide up to $1,200 in funding tariffRefund checks are being issued to eligible households as pressure mounts to ease the financial stress caused by rising prices.
The move follows a major court ruling United States Supreme Courtwhich knocks out most Donald Trumptariff policy. In response, the government has been developing plans to return about $166 billion in tariff revenue to importers who paid duties directly. However, lawmakers said ordinary Americans also deserve relief because they end up bearing the higher costs.
Why new rebates are proposed
Senator Martin Heinrich introduced the Working Families Tariff Refund Act, which would aim to compensate consumers affected by tariff-driven price increases.
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“The president may call the affordability crisis a ‘hoax,’ but working-class people are feeling it every time they buy groceries or daily necessities,” Heinrich said in a statement, adding that the legislation aims to return money “to the people who paid for it.”
Economic data supports the argument that consumers are shouldering much of the burden. A study by the Federal Reserve Bank of New York found that “the majority” of the tariff costs fell on U.S. businesses and households, with households estimated to have paid an average of $1,745 in tariffs.
Also read: Why Trump’s tariffs were struck down by the U.S. Supreme Court: Four explanations
Who is eligible for payment?
Under the proposed plan, the refund amount would depend on income:
- Up to $600 for individuals earning $90,000 or less
- Heads of household earning up to $120,000 will receive $600
- Up to $1,200 for married couples filing jointly with income of $180,000 or less
Families are also eligible for an additional $600 per dependent child. The bill stipulates that, unlike previous stimulus checks, the payments will not include the president’s name.
Other suggestions and next steps
Another proposal from Henry Cuellar also seeks to provide relief, with payments tied to incomes below $400,000 and additional support for each child.
Both measures are still under consideration and will need congressional approval to become law.
