H.R. 7646

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7646 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 7646

To direct the Secretary of the United States Department of the Treasury 
to refund American consumers for increased costs resulting from tariffs 
imposed without congressional authorization, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 23, 2026

Ms. Crockett introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

To direct the Secretary of the United States Department of the Treasury 
to refund American consumers for increased costs resulting from tariffs 
imposed without congressional authorization, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Payback Act''.

SEC. 2. CONGRESSIONAL FINDINGS.

Congress finds the following:
(1) In Learning Resources, Inc. v. Trump, the Supreme Court 
of the United States clarified that although the International 
Emergency Economic Powers Act authorizes the President to 
exercise certain economic authorities during a bona fide 
national emergency, that statute does not confer authority to 
impose tariffs absent clear and express congressional 
authorization; in so holding, the Court reaffirmed that article 
I, section 8 of the Constitution vests exclusively in Congress 
the power to lay and collect duties and tariffs, and that such 
legislative authority may not be exercised by the executive 
branch solely by virtue of an emergency declaration.
(2) The Constitution establishes a deliberate separation of 
powers, vesting in Congress alone the authority to lay and 
collect taxes, duties, imposts, and excises under article I, 
section 8; allowing the executive branch to unilaterally impose 
tariffs absent explicit congressional authorization would 
improperly transfer core legislative power to the Presidency, 
erode democratic accountability, and undermine the foundational 
principle that laws affecting the economic lives of Americans 
must originate with the people's elected representatives.
(3) These unlawful tariffs resulted in billions of dollars 
in collections by the Federal Government and materially 
increased the prices of goods for American consumers, 
functioning as a regressive tax that disproportionately 
burdened working families, seniors, and small businesses.
(4) American consumers bore the direct financial 
consequences of these actions through higher costs on everyday 
necessities, without meaningful notice, representation, or 
recourse, and shall be made whole through a transparent and 
congressionally directed refund process administered by the 
Federal Government.

SEC. 3. DEFINITIONS.

In this Act:
(1) Covered tariffs.--The term ``covered tariffs'' means 
any duties or fees imposed pursuant to Presidential 
proclamations or Executive orders under the International 
Emergency Economic Powers Act that were subsequently determined 
to lack congressional authorization.

SEC. 4. ESTABLISHMENT OF CONSUMER REFUND FORMULA.

(a) Not later than 120 days after enactment of this Act, the 
Secretary of the Treasury shall develop and publish a formula to 
calculate refunds to American consumers for amounts paid that were 
attributable to covered tariffs.
(b) The refund formula shall--
(1) quantify total consumer cost increases tied to covered 
tariffs using data from U.S. Customs and Border Protection, the 
Bureau of Economic Analysis, and other relevant Federal 
datasets;
(2) estimate pass-through effects from importers, 
distributors, and retailers to end consumers; and
(3) incorporate equitable adjustments based on household 
income and geographic disparities.
(c) Consultation.--In developing the formula, the Secretary shall 
consult with the Bureau of Economic Analysis, the Internal Revenue 
Service, the Federal Reserve Board, and independent economists with 
expertise in trade policy and consumer pricing.

SEC. 5. DISTRIBUTION OF REFUNDS.

(a) To the maximum extent practicable, refunds shall be issued 
automatically using existing Treasury and Internal Revenue Service 
payment systems, including direct deposit or refundable tax credits.
(b) For individuals not captured through existing systems, the 
Secretary shall establish a streamlined application process requiring 
minimal documentation.

SEC. 6. REPORT TO CONGRESS AND OVERSIGHT.

Not later than 180 days after enactment, the Secretary shall submit 
a report to Congress detailing the finalized refund formula, total 
anticipated refund obligations, and projected distribution timelines. 
The Government Accountability Office shall review the implementation of 
this Act and submit findings to Congress not later than one year after 
refunds commence.
<all>