Sen. Martin Heinrich (D-NM) sits in a Monarch MK-V Electric Tractor during an event showcasing various electric trucks near Capitol Hill on June 7, 2023 in Washington, DC.
Drew Angerer | Getty Images
Sen. Martin Heinrich, D-N.M., introduced a bill Thursday to create a new tax rebate for individuals and families hit by the cost of President Donald Trump’s now-defunct reciprocal tariffs.
The bill, dubbed the “Tariff Refunds for Working Families Act” and shared exclusively with CNBC, is part of the escalating effort by Democrats to capitalize on Trump’s tariff agenda ahead of the 2026 midterm elections. Polls indicate the levies have become increasingly unpopular, with economically anxious voters expressing concern about affordability as Democrats vie to rip control of Congress away from Republicans.
“The President may call the affordability crisis a ‘hoax,’ but working people feel it every time they pay for groceries or everyday essentials,” Heinrich said in a statement. “This bill will return the money lost to Trump’s tariffs back to the people who paid the price.”
Fifty-five percent of voters in a recent NBC News poll said Trump’s tariffs have hurt the economy. Only 33% said the tariffs helped the economy. Democrats led the congressional ballot by six points in that poll, which also found 62% of voters disapproving of Trump’s handling of inflation and the cost of living.
Tariffs have had an inflationary impact on the economy, according to economists.
The Supreme Court, in a 6-3 ruling Feb. 20, overturned a wide swath of Trump’s tariffs, finding he improperly invoked the International Emergency Economic Powers Act to impose the most prominent piece of his economic agenda.
Courts are weighing how to pay back importers the billions of dollars in tariff revenues they paid to the federal government.
The retail warehouse giant Costco, one of hundreds of companies suing for refunds, on Wednesday was itself sued in a would-be class action complaint seeking refunds for customers who bought products subject to tariffs.
Trump on Wednesday shifted tactics on keeping higher tariffs in place, launching investigations into key trading partners including China, Mexico and the EU under Section 301 of the Trade Act of 1974.
Heinrich’s bill would tap the $166 billion collected by the tariffs to fund the new rebate. The rebate would pay joint filers making under $180,000 annually $1,200. Head of household filers making less than $120,000 would receive $600. Single filers making less than $90,000 would also receive a $600 rebate. An additional $600 would be paid for each dependent child.
That means a family of four filing jointly that makes less than $180,000 would receive a rebate worth $2,400.
Sen. Josh Hawley, R-Mo., in July introduced legislation similar to Heinrich’s to compel refunds for higher tariffs costs to individuals and families.
Heinrich’s legislation would link the refund to the tariff revenue conceptually rather than in a binding fashion, meaning refunds could still be paid out to importers who paid the tariffs collected by the federal government. Even so, Heinrich said tariff refunds should go to families who paid higher costs rather than large corporations.
“President Trump’s illegal tariffs have 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 any other big corporation.”
The bill would also prohibit checks sent out for the rebate from including Trump’s name. Trump famously included his name on Covid-19 economic stimulus checks.
Heinrich, the top Democrat on the Senate Energy and Natural Resources Committee, has recently made several splashy endorsements of Senate candidates ahead of the midterms — bucking Senate Majority Leader Chuck Schumer’s picks. Introducing legislation to highlight the tariffs’ costs can be a political talking point for him this year.
He endorsed oyster farmer and veteran Graham Platner in Maine over Schumer’s choice of Gov. Janet Mills, along with the state Sen. Mallory McMorrow in Michigan. McMorrow said she won’t support Schumer for leader if she’s elected.
Heinrich has also sponsored a number of other bills that would pare back Trump’s tariff authority.
He’s joined on the bill by Sens. Ruben Gallego, D-Ariz., Chris Van Hollen, D-Md., and Chris Coons, D-Del.