Senator Martin Heinrich (D-NM), ranking member of the Legislative Branch Subcommittee of the Senate Appropriations Committee, delivers opening remarks during a hearing in the Dirksen Senate Office Building on Capitol Hill on April 29, 2025 in Washington, DC.
Chip Somodevilla | getty images
Senator Martin Heinrich, D-N.M., introduced a bill Thursday to create a new tax break for individuals and families impacted by the costs of President Donald Trump’s now-defunct “reciprocating tariffs.”
The bill, dubbed the “Tariff Refunds for Working Families Act” and shared exclusively with CNBC, is part of a growing effort by Democrats to capitalize on Trump’s tariff agenda ahead of the 2026 midterm elections. Polls indicate the levy has become increasingly unpopular, with economically concerned voters raising concerns about affordability as Democrats race 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 or everyday essentials,” Heinrich said in a statement. “This bill will return the money lost from Trump’s tariffs back to those who paid the price.”
Fifty-five percent of voters recently nbc news poll Said that Trump’s tariffs have harmed the economy. Only 33% said the tariffs helped the economy. That survey led Democrats by 6 points on the congressional ballot, which also found that 62% of voters disapproved of Trump’s handling of inflation and the cost of living.
According to economists, the tariffs have had an inflationary impact on the economy.
The Supreme Court overturned a wide range of Trump’s tariffs in a 6-3 decision on February 20, finding that he improperly invoked the International Emergency Economic Powers Act to implement the most prominent part of his economic agenda.
Courts are considering how to repay importers billions of dollars in tariff revenues paid to the federal government.
retail warehouse giant costcoThe lawsuit, one of hundreds of companies suing for refunds, was filed Wednesday in a class-action complaint seeking refunds for customers who purchased products subject to the tariffs.
Trump on Wednesday changed his strategy of maintaining high tariffs by launching investigations into major trading partners including China, Mexico and the European Union under Section 301 of the Trade Act of 1974.
Heinrich’s bill would use the $166 billion collected by the tariffs to finance the new exemptions. This exemption will pay $1,200 annually to joint filers making less than $180,000. Head of household filers making less than $120,000 will receive $600. Single filers making less than $90,000 will also get a $600 rebate. An additional $600 will be paid for each dependent child.
That means a family of four filing jointly who earns less than $180,000 will get a rebate of $2,400.
Sen. Josh Hawley, R-Mo., introduced in July heinrich’s law Forcing individuals and families to seek refunds for higher tariff costs.
Heinrich’s legislation would tie refunds to tariff revenues conceptually rather than in a binding manner, meaning refunds could still be paid to importers who paid tariffs collected by the federal government. Nevertheless, Heinrich said tariff refunds should be given to families who have paid higher costs, rather than to large corporations.
“President Trump’s illegal tariffs have cost New Mexico households an average of $1,355,” he said. “This money belongs to working families – not the CEOs of Walmart or Amazon or any other major corporation.”
The bill would also ban Trump’s name from being included 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, has recently made a number of glowing endorsements for Senate candidates ahead of the midterms — sidestepping the likes of Senate Minority Leader Chuck Schumer. Introducing legislation to highlight the costs of tariffs could be a political talking point for him this year.
He endorsed Graham Plattner, an oyster farmer and veteran in Maine, along with State Senator Mallory McMorrow of Michigan, Schumer’s choice to replace Governor Janet Mills. McMorrow said she would not support Schumer as leader if he was elected.
Heinrich has also sponsored several other bills that would reduce Trump’s tariff authority.
He is joined on the bill by Sens. Ruben Gallego, D-Ariz., Chris Van Hollen, D-Md., and Chris Coons, D-Del.
Correction: Chuck Schumer is the Senate Minority Leader. An earlier version misstated his title.