American Tariff Rebate Act
Sponsored By: Representative Foushee, Valerie P. [D-NC-4]
Introduced
Summary
A new consumer tax credit called the American Tariff Rebate would give most taxpayers a one-time credit and allow limited advance refunds. The measure also trims the estate and gift tax exemption and rescinds large previously allocated border funds.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 3 costs, 1 mixed.
Lower estate and gift exemption
If enacted, the bill would cut the unified estate and gift tax exemption from $15,000,000 to $10,000,000. That would raise estate or gift tax exposure for estates and gifts above the new $10,000,000 level. The amendment is to take effect as if included in the referenced Public Law provision.
Cancel border and detention funding
If enacted, the bill would permanently rescind $46.55 billion in unobligated border infrastructure funds and $45.0 billion in unobligated detention funds from a prior law. These rescissions would remove planned federal money for border walls and detention capacity.
One-time household tariff rebate
If enacted, this would create a consumer tax credit for the first tax year starting in 2026. The credit would be $2,000 for singles or $4,000 for joint filers, plus $600 per dependent with a valid ID. The credit phases out above $75,000 (single), $150,000 (joint), and $112,500 (head of household). The bill would allow limited advance refunds tied to 2025, but any advance would reduce the 2026 credit and no advances are allowed after December 31, 2026. The Treasury and Social Security would run a public outreach campaign. The bill would fund IRS systems and payments with about $1.46 billion, $7 million for the Bureau of the Fiscal Service, and $8 million for TIGTA. Residents of U.S. possessions could get possession payments instead, but cannot get both possession and federal credits. The IRS could correct credit mistakes faster, and credits would be protected from many federal offsets or levies.
Repeal of prior reduced tax rates
If enacted, the bill would repeal a subsection of the tax code that extended reduced tax rates. People who used those reduced rates could pay more tax because the lowered-rate rule would be removed. The change is to take effect as if included in the referenced Public Law provision.
Sponsors & CoSponsors
Sponsor
Foushee, Valerie P. [D-NC-4]
NC • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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