[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7865 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 7865
To provide direct refunds to taxpayers for increased consumer costs
attributable to tariffs imposed without congressional authorization.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 9, 2026
Mr. Cuellar introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide direct refunds to taxpayers for increased consumer costs
attributable to tariffs imposed without congressional authorization.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Consumer Tariff Rebate Act
of 2026''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Article I, Section 8 of the Constitution vests
exclusively in Congress the authority to lay and collect duties
and tariffs.
(2) Duties imposed pursuant to Presidential action under
the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.) without express congressional authorization resulted
in increased consumer prices nationwide.
(3) The Congressional Budget Office and the Joint Economic
Committee have estimated that total consumer costs attributable
to such tariffs are approximately $231,350,000,000.
(4) Congress has a responsibility to provide direct
restitution to taxpayers for these unlawful cost increases, and
to prioritize working families by excluding very high-income
taxpayers and using the resulting savings to increase refunds
for taxpayers raising children.
SEC. 3. DEFINITIONS.
In this Act:
(1) Covered tariffs.--The term ``covered tariffs'' means
duties imposed pursuant to Presidential action under the
International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.) that were subsequently determined to lack congressional
authorization.
(2) Eligible return.--The term ``eligible return'' means a
Federal individual income tax return filed for the most recent
taxable year for which sufficient information is available,
including returns filed as--
(A) single;
(B) married filing jointly;
(C) married filing separately;
(D) head of household; or
(E) qualifying surviving spouse.
(3) Qualified child.--The term ``qualified child'' has the
meaning given in section 24(c) of the Internal Revenue Code of
1986.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
SEC. 4. ESTABLISHMENT OF TAXPAYER REBATE.
(a) In General.--The Secretary shall provide a one-time direct
payment to each Eligible Return in accordance with this section.
(b) Income Limitation.--No payment shall be made under this Act
with respect to any return reporting adjusted gross income exceeding
$400,000 for the most recent taxable year for which sufficient
information is available.
(c) Aggregate Limitation.--The total amount of payments made under
this Act shall not exceed $231,350,000,000.
(d) Determination of Base Amount.--
(1) The Secretary shall determine a Base Amount such that,
if payments were made under subsection (e) with respect to all
Eligible Returns (without regard to subsection (b)), the total
amount of such payments would equal $231,350,000,000.
(2) In calculating the Base Amount, the Secretary shall
calculate such amount by dividing $231,350,000,000 by the sum
of--
(A) the number of Eligible Returns filed as single;
(B) the number of Eligible Returns filed as married
filing separately;
(C) 1.5 multiplied by the number of Eligible
Returns filed as head of household; and
(D) 2 multiplied by the sum of--
(i) the number of Eligible Returns filed as
married filing jointly; and
(ii) the number of Eligible Returns filed
as qualifying surviving spouse.
(e) Payment Amounts by Filing Status.--Subject to subsection (b),
the payment for an Eligible Return shall be--
(1) in the case of a return filed as single, an amount
equal to 100 percent of the Base Amount;
(2) in the case of a return filed as married filing
separately, an amount equal to 100 percent of the Base Amount;
(3) in the case of a return filed as head of household, an
amount equal to 150 percent of the Base Amount;
(4) in the case of a return filed as married filing
jointly, an amount equal to 200 percent of the Base Amount; or
(5) in the case of a return filed as qualifying surviving
spouse, an amount equal to 200 percent of the Base Amount.
SEC. 5. CHILD BONUS FUNDED BY HIGH-INCOME EXCLUSION.
(a) In General.--In addition to any amount paid under section 4,
the Secretary shall pay a Child Bonus with respect to any Eligible
Return that--
(1) is not excluded under section 4(b); and
(2) claims one or more Qualified Children.
(b) Fixed Amount.--The Child Bonus shall be equal to $125 for each
Qualified Child claimed on such return.
(c) Funding and Cap.--
(1) Use of savings.--Amounts paid under this section shall
be paid solely from amounts not paid due to the income
limitation under section 4(b).
(2) Limitation.--Total payments under this section,
together with total payments under section 4, shall not exceed
$231,350,000,000.
(d) Proration Authority.--If the Secretary determines that the
amount available under subsection (c)(1) is insufficient to pay the
full Child Bonus amounts specified in subsection (b), the Secretary
shall reduce each Child Bonus payment on a pro rata basis so that the
aggregate limitation under section 4(c) is not exceeded.
(e) Coordination.--The Secretary shall, to the maximum extent
practicable, disburse the Child Bonus as part of the same payment as
the section 4 rebate.
SEC. 6. METHOD OF DISTRIBUTION.
(a) Automatic Distribution.--Payments shall be issued automatically
using information available to the Internal Revenue Service.
(b) Means of Payment.--Payments may be made by--
(1) direct deposit;
(2) paper check; or
(3) prepaid debit card.
(c) Non-filers.--The Secretary shall establish a simplified filing
procedure for individuals who did not file a return for the most recent
taxable year but would otherwise have been eligible to file.
SEC. 7. ADMINISTRATION.
(a) The Secretary may prescribe such guidance, regulations, and
procedures as are necessary to carry out this Act.
(b) The Secretary may round payment amounts to the nearest whole
dollar or other administratively practical increment and shall
implement such rounding in a manner that does not cause total payments
to exceed $231,350,000,000.
SEC. 8. REPORT TO CONGRESS.
Not later than 90 days after enactment, and every 60 days
thereafter until all payments are distributed, the Secretary shall
submit to Congress a report detailing--
(1) the number of payments issued by filing status under
section 4;
(2) the number of returns receiving a Child Bonus and the
aggregate number of Qualified Children claimed for purposes of
section 5;
(3) the total amount disbursed under section 4 and under
section 5; and
(4) the remaining unobligated balance, if any, under the
$231,350,000,000 aggregate limitation.
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