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Bill Instructs Trump Administration to Prioritize Small Businesses; Requires Full Refund of Illegal Trump Tariffs in 180 Days

February 25, 2026 - Washington, D.C. – U.S. Senator Adam Schiff (D-Calif.) has joined Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), Small Business Committee Ranking Member Edward J. Markey (D-Mass.), and Foreign Relations Committee Ranking Member Jeanne Shaheen (D-N.H.), in releasing legislation to require full refunds of Trump’s illegal tariffs, after they were struck down by the U.S. Supreme Court on Friday by a 6-3 vote. 

To date, the Trump administration has collected an estimated $175 billion in illegal tariff revenue, raising taxes on products from nearly every country on earth, and jacking up prices for American families. The Tariff Refund Act of 2026 will require the full refund, with interest, of those funds. 

“A president who campaigned on lowering prices instead pushed them higher with illegal tariffs. Last week, the Supreme Court reaffirmed that President Trump unlawfully taxed Americans to the tune of $175 billion, needlessly inflicting harm on countless American families and businesses in the process. As we fight against Trump’s plan to double down on tariffs, it’s crucial that small businesses and Americans get their hard-earned money back,” said Senator Schiff.  

“Trump’s illegal tax scheme has already done lasting damage to American families, small businesses and manufacturers who have been hammered by wave after wave of new Trump tariffs,” said Senator Wyden. “Senate Democrats will continue fighting to rein in Donald Trump’s price-hiking trade and economic policies. A crucial first step is helping people who need it most, by putting money back in the pockets of small businesses and manufacturers as soon as possible.” 

“Trump’s illegal tariff taxes cost small businesses, consumers, and families up to $175 billion. That money must be repaid immediately. For small businesses with little to no resources, this refund process can be extremely difficult and time consuming,” said Senator Markey. “That is why I am proud to introduce the Tariff Refund Act with Senators Wyden and Shaheen. Our bill would require the tariffs to be refunded and level the playing field—putting small importers and small businesses first in the refund process and eliminating needless administrative barriers. It’s Main Street and working families that paid Trump’s tariff taxes, and we must ensure they get their money back—not big corporations.” 

“President Trump’s reckless and chaotic tariffs have only caused uncertainty and pain—raising prices on consumers and businesses when they can least afford it,” said Senator Shaheen. “Now that the Supreme Court has made it clear that the President did not have the authority to unilaterally impose sweeping emergency tariffs, it’s critical that American families and small businesses get the relief they need. That starts by President Trump refunding the illegally collected tariff taxes that Americans were forced to pay.” 

In addition to Schiff, the bill is co-sponsored by Senators Chuck Schumer (D-N.Y.), Ben Ray Luján (D-N.M.), Mazie Hirono (D-Hawai’i), Chris Coons (D-Del.), John Hickenlooper (D-Colo.), Angus King (I-Maine), Angela Alsobrooks (D-Md.), Andy Kim (D-N.J.), Maria Cantwell (D-Wash.), Jacky Rosen (D-Nev.), Dick Durbin (D-Ill.), Tim Kaine (D-Va.), Alex Padilla (D-Calif.), Mark Warner (D-Va.), Richard Blumenthal (D-Conn.), Patty Murray (D-Wash.), Chris Van Hollen (D-Md.), and Michael Bennet (D-Colo.). 

The Trump administration previously recognized that it must refund, with interest, any duties determined to have been unlawfully collected. However, it is unclear what timeline, process, or other guidelines the administration would follow to provide refunds—and the lack of a clear, accessible process would necessarily advantage large importers with resources to dedicate to outside counsel and consultants.  

The Tariff Refund Act of 2026 would ensure that U.S. Customs and Border Protection (CBP) completes the payment of refunds quickly and prioritizes the interests of small businesses in that process. Importantly, the bill would ensure that importers are not required to take costly administrative steps in order to receive a refund of the tariffs unlawfully collected by the Administration. The bill also directs CBP to coordinate with the Small Business Administration (SBA) to provide information and technical support. Finally, the bill’s reporting requirements would provide Congress, which has constitutional authority over trade and tariffs, with proper oversight over the refund payment process.  

What the bill does: 

• Requires CBP to pay refunds of all tariffs that were unlawfully imposed by the President under IEEPA and paid by importers—even if the importation has already been finalized and closed (“liquidated”) by CBP. 

o    Sets a deadline of 180 days after enactment for CBP to process all refunds. 

o    Requires CBP to pay interest on the refunded amount. 

• Directs CBP to prioritize small businesses when paying refunds and to coordinate with the SBA to provide key information on the refund process to small businesses. 
• Requires CBP to report every 30 days to relevant congressional committees on the status of refunds until CBP has completed the payment of all refunds. 
• Directs CBP to issue guidance on how to address duty drawback claims. 
• Expresses the Sense of Congress that importers, wholesalers, and large corporations should pass on those refunds to their customers. 

Background: Senator Schiff has repeatedly called for investigations into whether Trump administration officials engaged in insider trading or illegal financial transactions linked to Trump’s on-again and off-again tariff policy. Schiff also released a statement in response to the Supreme Court ruling that the Trump-Vance administration overstepped emergency powers by illegally imposing tariffs against nearly every country in the world without congressional approval. 

The full text of the bill is available here. 

Source: Senator Adam Schiff