WASHINGTON — Senate Democrats unveiled a bill Monday that would force President Trump to pay back $175 billion in tariff revenue his administration collected before the Supreme Court deemed his trade policy illegal.
“Trump’s illegal tax scheme has already done lasting damage to American families, small businesses and manufacturers who have been hammered by wave after wave of new Trump tariffs,” said Sen. Ron Wyden (D-Ore.), one of the Democrats who introduced the bill, in a statement.
“Senate Democrats will continue fighting to rein in Donald Trump’s price-hiking trade and economic policies,” Wyden added.
“A crucial first step is helping people who need it most, by putting money back in the pockets of small businesses and manufacturers as soon as possible.”
Treasury Secretary Scott Bessent had previously noted to CNN that the reimbursements are “not up to the administration, it is up to the lower court.”
The Tariff Refund Act of 2026 is being co-sponsored by Sens. Ed Markey (D-Mass.), Jeanne Shaheen (D-NH) and 19 other Senate Democrats.
The bill orders Customs and Border Protection to pay full refunds by Aug. 20 to importers affected by Trump’s tariffs under the International Emergency Economic Powers Act.
The CBP is also ordered to “prioritize the payment of refunds … to small business concerns.”
House Democrats have drafted similar legislation.
“CBP is aware of the court’s ruling and is ready to implement current and any forthcoming executive actions as directed by the president,” a CBP spokesperson said in a statement.
The high court ruled on Friday that Trump exceeded his authority by installing 10% global baseline tariffs and other duties under the International Emergency Economic Powers Act of 1977.
The 6-3 decision did not outline any rebates or refunds that the administration needed to provide, leaving that decision up to a lower court.
Senate Minority Leader Chuck Schumer (D-NY) and others are also working to block Trump’s new proposed 15% global baseline trade duties under Section 122 of the 1974 Trade Act.
Those tariffs will only last for 150 days before an act of Congress must codify them.
