Martin Heinrich bill would give tax rebate for tariffs
Sen. Sen., ranking member of the Legislative Branch subcommittee of the Senate Appropriations Committee. Martin Heinrich (D-NM) delivers the opening statement during a hearing at the Dirksen Senate Office Building on Capitol Hill on April 29, 2025 in Washington, DC.
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Sen. Martin Heinrich, D-N.M., introduced a bill Thursday to create a new tax break for individuals and families affected by the cost of President Donald Trump’s now-repealed “reciprocal tariffs.”
The bill, called the “Tariff Rebates for Working Families Act” and shared exclusively with CNBC, is part of Democrats’ growing efforts to capitalize on Trump’s tariff agenda ahead of the 2026 midterm elections. Polls show taxes are becoming increasingly unpopular, with economically anxious voters voicing concerns about affordability as Democrats race to wrest control of Congress from Republicans.
“The President may call the economic crisis a ‘hoax,’ but working people feel it every time they pay for groceries or daily needs,” Heinrich said in a statement. he said. “This bill would give the money lost because of Trump’s tariffs back to the people who paid for it.”
Fifty-five percent of voters recently NBC News poll He said Trump’s tariffs are hurting the economy. Only 33 percent said tariffs helped the economy. In this poll, Democrats were ahead by 6 points in the congressional vote, and it was revealed that 62 percent of voters disapprove of Trump’s fight against inflation and the cost of living.
According to economists, the tariffs had an inflationary effect on the economy.
In a 6-3 decision on February 20, the Supreme Court overturned a broad swath of Trump’s tariffs, finding that Trump improperly invoked the International Emergency Economic Powers Act to impose the centerpiece of his economic agenda.
Courts are considering how to reimburse importers for the billions of dollars in tariff revenue they paid to the federal government.
retail warehouse giant costcoone of hundreds of companies suing for refunds, was sued Wednesday with a class action complaint seeking refunds for customers who purchased products subject to tariffs.
Trump on Wednesday changed his tactic of keeping higher tariffs in place and launched investigations into key trading partners including China, Mexico and the EU under Section 301 of the 1974 Trade Act.
Heinrich’s bill would use $166 billion collected from tariffs to fund the new reduction. The rebate will pay $1,200 to joint applicants who earn less than $180,000 annually. The head of household earning less than $120,000 will receive $600. Single filers making less than $90,000 will also receive a $600 discount. An additional $600 will be paid for each dependent child.
That means a family of four making less than $180,000 would receive a rebate worth $2,400.
Sen. Josh Hawley, R-Mo., introduced in July Legislation similar to Heinrich’s Requiring reimbursement of higher tariff costs to individuals and families.
Heinrich’s legislation would tie reimbursement conceptually, but not in a binding way, to tariff revenue; This means refunds can still be issued to importers who paid tariffs collected by the federal government. Still, Heinrich said tariff rebates should go to families paying higher costs rather than big companies.
“President Trump’s illegal tariffs cost New Mexico families an average of $1,355,” he said. “This money belongs to working families, not the CEOs of Walmart, Amazon or any other large corporation.”
The bill would also ban Trump’s name from appearing on checks sent for rebates. Trump famously included his name in Covid-19 economic stimulus checks.
Heinrich, the top Democrat on the Senate Energy and Natural Resources Committee, recently made several splashy endorsements for Senate candidates ahead of the midterm elections and scuttled Senate Minority Leader Chuck Schumer’s pick. Introducing legislation that would highlight the costs of tariffs could be a political sticking point for him this year.
He supported oyster farmer and veteran Graham Platner in Maine and state Sen. Mallory McMorrow in Michigan over Schumer’s pick for Gov. Janet Mills. McMorrow said Schumer would not take the leadership seat if elected.
Heinrich also sponsored a number of other bills that would restrict Trump’s tariff authority.
The bill was introduced by Sens. Ruben Gallego, D-Ariz., and Chris Van Hollen, D-Md. and Chris Coons, D-Del.
Correction: Chuck Schumer is the Senate minority leader. Its title was misspelled in an earlier version.
