Sen. Martin Heinrich (D-NM) sits on a Monarch MK-V electric tractor during an event showcasing a variety of electric trucks near the Capitol on June 7, 2023 in Washington, DC.
Drew Angerer | Getty Images
Sen. Martin Heinrich (D.M.) introduced legislation Thursday that would create new tax rebates for individuals and families hurt by the costs of President Donald Trump’s repealed reciprocal tariffs.
The bill, called the “Tariff Refunds for Working Families Act” and shared exclusively with CNBC, is part of a growing Democratic effort to capitalize on President Trump’s tariff policies in the run-up to the 2026 midterm elections. Polls show the levy’s unpopularity is growing as economically anxious voters express concerns about affordability as Democrats scramble to wrest control of Congress from Republicans.
“The president may call the affordability crisis a ‘hoax,’ but working people feel it every time they pay for groceries and groceries,” Heinrich said in a statement. “This bill would restore money lost due to President Trump’s tariffs to the people who paid the price.”
In a recent NBC News poll, 55% of voters said President Trump’s tariffs are having a negative impact on the economy. Only 33% said tariffs helped the economy. The poll also found that Democrats have a 6-point lead in Congress, and that 62% of voters disapprove of President Trump’s efforts to address inflation and the cost of living.
Economists say the tariffs have an inflationary impact on the economy.
In a 6-3 decision on February 20, the Supreme Court overturned broad portions of President Trump’s tariffs, finding that the president had wrongfully invoked the International Emergency Economic Powers Act to impose the most important part of his economic policy.
Courts are considering how to repay billions of dollars in customs revenue that importers have paid to the federal government.
Major retail warehouse costcoThe company itself, one of hundreds of companies suing for refunds, was sued Wednesday in a potential class action lawsuit seeking refunds for customers who purchased products subject to the tariffs.
President Trump on Wednesday shifted tactics to maintaining high tariffs and launched investigations under Section 301 of the Trade Act of 1974 against major trading partners, including China, Mexico and the European Union.
Mr. Heinrich’s bill would use the $166 billion raised by tariffs to fund new rebates. The rebate would provide $1,200 to joint filers with annual incomes of less than $180,000. Heads of households with incomes under $120,000 would receive $600. Individual filers with incomes below $90,000 will also receive a $600 rebate. An additional $600 would be paid for each dependent child.
That means a family of four with incomes under $180,000 who file jointly would receive a rebate worth $2,400.
In July, Sen. Josh Hawley (R-Missouri) introduced a bill similar to Heinrich’s that would force individuals and families to reimburse themselves for high tariff costs.
Mr. Heinrich’s bill conceptually, but not in a binding manner, ties the refunds to customs revenue, meaning importers who paid the duties collected by the federal government could still receive refunds. Still, Heinrich said duty refunds should go to households who have paid higher costs, not large companies.
“President Trump’s illegal tariffs cost New Mexico families an average of $1,355,” he said. “This is money that belongs to working families, not the CEOs of Walmart or Amazon or other big companies.”
The bill would also ban Trump’s name from appearing on checks sent for kickbacks. President Trump famously put his name on the coronavirus stimulus checks.
Mr. Heinrich, the top Democrat on the Senate Energy and Natural Resources Committee, has recently ostentatiously endorsed Senate candidates ahead of the midterm elections and opposed the selection of Senate Majority Leader Chuck Schumer. Introducing legislation highlighting the costs of tariffs could be a political hot topic for him this year.
He endorsed Graham Platner, a veteran oyster farmer from Maine, and state Sen. Mallory McMorrow of Michigan against Schumer’s choice for Gov. Janet Mills. McMorrow said he would not support Schumer as a leadership candidate if he were elected.
Heinrich has also proposed a number of other bills that would curtail President Trump’s tariff powers.
The bill is also joined by Sen. Ruben Gallego (D-Ariz.), Sen. Chris Van Hollen (D-Md.), and Rep. Chris Coons (D-Delta).
