Americans are struggling because prices are high, inflation is rising, and tariffs made many goods more expensive, so lawmakers are looking at giving direct cash help. The Supreme Court gave a 6-3 ruling that overturned most of tariffs from Donald Trump, meaning many of those tariffs were not valid.

After the ruling, the Trump administration started planning to return about $166 billion in tariffs, plus interest, to U.S. importers who paid them. Importers paid the tariffs directly, but businesses increased prices, so regular consumers also ended up paying more for goods, as stated by Daily Express.

Higher prices from tariffs

On March 12, Senator Martin Heinrich proposed a new bill to give tax rebates to families affected by higher costs due to tariffs. Heinrich said people feel the affordability crisis when buying groceries and essentials, and his bill would return money to those who paid higher prices. A report by the Federal Reserve Bank of New York said most tariff costs were passed on to U.S. businesses and consumers.

Research from the Joint Economic Committee found American families have already paid about $1,745 in tariff-related costs. Heinrich’s bill is called the “Tariff Refunds for Working Families Act” and could give up to $1,200 to eligible Americans, as per the report by Daily Express. The bill is supported by several senators including Cory Booker, Kirsten Gillibrand, and Ruben Gallego.

Who may get $1,200

Trump earlier promised $2,000 tariff rebate checks using tariff money, but now that money may instead go back to importers. The new proposal gives different refund amounts based on income levels. Individuals earning $90,000 or less may get $600. Heads of household earning $120,000 or less may also get $600. Married couples filing jointly earning $180,000 or less may get up to $1,200 Families could also receive an extra $600 for each dependent child.

Extra money for children

The bill says Trump’s name cannot appear on the checks, unlike COVID-19 stimulus payments. Another similar bill was introduced by Congressman Henry Cuellar called the “American Consumer Tariff Rebate Act of 2026”, as per the report by Daily Express. Cuellar’s plan would also send direct payments to help cover higher prices caused by tariffs. His proposal would use about $231.35 billion for refunds, matching what consumers paid in tariffs.

Payments in Cuellar’s bill would only go to taxpayers earning under $400,000. That plan would also give an extra $125 per qualifying child. Millions of Americans could receive up to $1,200 — plus extra for kids — if one of these tariff refund bills becomes law.

FAQs

Q1. Who can get the $1,200 tariff refund check?

Eligible individuals earning up to $90,000 or couples earning up to $180,000 may receive payments under the proposal by Martin Heinrich.

Q2. Why are tariff refund checks being proposed?

Lawmakers want to return money to consumers after tariffs introduced during Donald Trump increased prices on everyday goods.