A group of 22 U.S. Senate Democrats has introduced a new bill in the United States Senate that would require the federal government to refund all tariff money collected under President Donald Trump’s tariff policies that the U.S. Supreme Court ruled were illegal. This bill aims to give back billions of dollars to American businesses and importers, especially smaller companies that were affected by the tariffs.

The tariffs at the centre of this legislation were part of Trump’s trade policy and were imposed under the International Emergency Economic Powers Act (IEEPA). The Supreme Court struck down these tariffs in a major decision, saying the president did not have the authority to impose them under that law. However, the Supreme Court did not say how tax refunds should be handled. Because of this, the Democrats’ bill sets out clear instructions for how refunds should be processed.

Under the proposal, the U.S. Customs and Border Protection (CBP) — the agency that collects tariffs at U.S. ports — would be ordered to refund all tariff money collected under the invalidated law, even if those duties were already declared final or “liquidated.” This must happen within 180 days of the bill becoming law. The bill also requires that refunds include interest on the amount paid.

The legislation would make small businesses a priority when processing these refunds. This is notable because smaller companies often have fewer resources and less legal expertise to pursue claims on their own, compared with large corporations.

Among the bill’s co-sponsors are Senate Minority Leader Chuck Schumer and committee leaders such as Ron Wyden (Finance Committee), Edward Markey (Small Business Committee) and Jeanne Shaheen (Foreign Relations Committee). These senators represent different regions of the United States but have joined together to push this legislation.

Senator Ron Wyden spoke about the bill in a public statement. He said:

“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 into the pockets of small businesses and manufacturers as soon as possible.”

This quote highlights the Democrats’ view that the tariff policies were not only illegal but also placed financial burdens on everyday businesses and workers. They argue that passing this bill would help lessen that burden.

While Democrats are pushing the bill in the Senate, Republican leaders are more cautious. A spokesperson for Senate Majority Leader John Thune of South Dakota declined to comment on whether the Senate would actually debate or vote on the measure. This suggests the bill might face challenges in moving forward.

In the House of Representatives, which is controlled by Republicans, Speaker Mike Johnson told reporters that the House would not take up the question of tariff refunds at this time. He said, “The White House is going to sort that out, and we have to give them the time and space to do it. This is an unprecedented event, of course, so there’s no playbook to follow. I think they’ve (the White House) got good arguments on their side, and we’ll see how it shakes out. That’s not something that really involves the House at this point.”

The White House itself has not yet formally responded to the proposed legislation. However, U.S. Treasury Secretary Scott Bessent commented on how refunds might proceed. He told CNN that the Treasury Department would “follow what they [the courts] decide, but it can take weeks or months until we hear from them.” This suggests the administration expects the legal process around refund decisions to continue in the lower courts.

Importantly, Customs and Border Protection is scheduled to stop collecting IEEPA-based tariffs at 12:01 a.m. EST on Tuesday following the Supreme Court’s decision. Estimates from economic research groups suggest that more than $175 billion of tariff revenue may be at stake for refunds.

Overall, this bill, introduced by Senate Democrats, seeks to force the federal government to return tariff money that was collected under laws the Supreme Court said were unconstitutional. It outlines a specific process and timeline for refunds, emphasises small-business priorities, and includes co-sponsors from across Democratic leadership. However, Republican leadership and the White House have yet to embrace or respond to the proposal fully.