Payback Act

Refunds for unlawful presidential tariffs

If enacted, the Treasury would refund consumers for higher costs tied to certain tariffs later found to lack congressional authorization. "Covered tariffs" would mean duties imposed by presidential proclamations or executive orders under the International Emergency Economic Powers Act that courts later ruled unauthorized. Within 120 days, Treasury would publish a formula using CBP, BEA, and other data to estimate how much import costs were passed to shoppers and to add income and geographic adjustments. Treasury would try to issue payments automatically through direct deposit or refundable tax credits and would create a simple application for people not in existing IRS or Treasury payment systems. Treasury must report to Congress within 180 days about the formula, expected total refunds, and timing, and the GAO would review implementation and report within one year after refunds begin.