Tariff Refunds for Working Families Act
Sponsored By: Senator Martin Heinrich
Introduced
Summary
Creates a refundable tax rebate for working families funded by tariff revenue. The bill establishes a "Working Families Refund" that pays rebates to eligible taxpayers and sets rules for eligibility, advance payments, and delivery.
Show full summary
- Families and workers: The credit pays about $600 per person, $1,200 for joint filers, plus $600 per qualifying child for the first tax year beginning in 2026. Advance refunds are treated as payments for 2025 eligibility and must be issued as rapidly as possible but not after December 31, 2027.
- U.S. possessions: Residents of territories like Puerto Rico and the Northern Mariana Islands get payments sized to match what a mirror-code system would deliver or through an approved distribution plan for non-mirror systems.
- Administration and protections: The IRS must issue rules to prevent duplicate payments, run a public awareness campaign, and use Social Security Numbers for ID with a military-spouse exception. Refunds under the credit are protected from certain federal offsets and levies.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Bigger refundable credit for families
If enacted, you would be able to claim a refundable "Working Families Refund" for the tax year beginning in 2026. The credit would be $600 per individual ($1,200 if you file jointly) plus $600 for each qualifying child. The credit would not be available to nonresident aliens, estates or trusts, or people claimed as dependents by someone else. Your allowable credit would be reduced by any advance refund you already received. You must provide valid Social Security numbers for you, your spouse on a joint return (with an Armed Forces exception), and each qualifying child.
Advance payments, delivery, and protections
If enacted, people who would have been eligible for the 2025 year would be treated as having received an advance refund equal to that credit. The Treasury would pay advances quickly and must finish sending them by December 31, 2027, and aim to refund overpayments within 40 days after enactment. The IRS could pay electronically or by check, use 2024 data (or SSA-1099/RRB-1099) if a 2025 return is missing, and must mail a notice within 15 days after payment. These payments would be protected from many federal offsets and levies. The Treasury Secretary would issue rules to prevent duplicate payments and treat missing required ID numbers as math or clerical errors. The Treasury and Social Security would run a public awareness campaign about the credit, but campaign and notice materials may not mention the Executive Office of the President or Donald J. Trump.
Payments and limits for U.S. possessions
If enacted, the Treasury would pay U.S. possessions for revenue lost or foregone because of this credit. For mirror-code possessions, Treasury would pay the loss amount based on the possession's data. For non-mirror possessions, Treasury would estimate aggregate benefits and pay only if the possession submits an approved plan to distribute the money to residents. People who get a possession credit or an approved possession payment could not also claim the federal credit under this bill.
Sponsors & CoSponsors
Sponsor
Martin Heinrich
NM • D
Cosponsors
Ruben Gallego
AZ • D
Sponsored 3/12/2026
Chris Van Hollen
MD • D
Sponsored 3/12/2026
Christopher Coons
DE • D
Sponsored 3/12/2026
Cory Booker
NJ • D
Sponsored 3/12/2026
Andy Kim
NJ • D
Sponsored 3/12/2026
Kirsten Gillibrand
NY • D
Sponsored 3/12/2026
Tammy Duckworth
IL • D
Sponsored 3/12/2026
John Reed
RI • D
Sponsored 3/12/2026
Roll Call Votes
No roll call votes available for this bill.
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