What does Preamble of HR 7646 do?

This bill, formally titled '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,' aims to provide refunds to American consumers. The bill directs the Secretary of the Treasury to issue refunds related to increased costs. The refunds are specifically tied to tariffs imposed without congressional authorization.

What does SHORT TITLE. of HR 7646 do?

This Act is formally titled the Payback Act.

What does CONGRESSIONAL FINDINGS. of HR 7646 do?

This section outlines congressional findings regarding tariffs imposed by the executive branch. The Supreme Court case Learning Resources, Inc. v. Trump clarified that the International Emergency Economic Powers Act does not authorize the President to impose tariffs without congressional authorization. Congress asserts that allowing the executive branch to unilaterally impose tariffs would violate the separation of powers and transfer legislative authority to the Presidency. The unlawful tariffs resulted in billions of dollars in collections and increased prices for American consumers, disproportionately affecting working families, seniors, and small businesses. Consumers bore the financial consequences of these tariffs without notice, representation, or recourse, and should receive a refund through a congressionally directed process.

What does DEFINITIONS. of HR 7646 do?

This section defines terms used within the Act. “Covered tariffs” are defined as duties or fees imposed through Presidential proclamations or Executive orders under the International Emergency Economic Powers Act. These tariffs must have been subsequently determined to lack congressional authorization to qualify as 'covered tariffs'.

What does ESTABLISHMENT OF CONSUMER REFUND FORMULA. of HR 7646 do?

This section establishes a consumer refund formula to calculate refunds for amounts paid attributable to covered tariffs. The Secretary of the Treasury must develop and publish this formula within 120 days of the Act's enactment. The formula will quantify consumer cost increases using data from U.S. Customs and Border Protection, the Bureau of Economic Analysis, and other Federal datasets. It will also estimate pass-through effects from importers, distributors, and retailers to end consumers. The formula will incorporate adjustments based on household income and geographic disparities. The Secretary must consult with the Bureau of Economic Analysis, the Internal Revenue Service, the Federal Reserve Board, and independent economists during development.

What does DISTRIBUTION OF REFUNDS. of HR 7646 do?

This section concerns the distribution of refunds. Refunds should be issued automatically using existing Treasury and IRS payment systems. Direct deposit and refundable tax credits are examples of acceptable payment methods. A streamlined application process will be established for individuals not captured through existing systems. This process will require minimal documentation.

What does REPORT TO CONGRESS AND OVERSIGHT. of HR 7646 do?

This section requires the Secretary to submit a report to Congress within 180 days of enactment. The report must detail the finalized refund formula, total anticipated refund obligations, and projected distribution timelines. The Government Accountability Office (GAO) will review the implementation of this Act. The GAO's findings are to be submitted to Congress within one year after refunds commence.

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Payback Act — HR. 7646

Last updated: 2/23/2026 · Introduced: 2/23/2026

Author: Jasmine Crockett (D-TX)

TL;DR (AI)

This bill directs the Secretary of the Treasury to refund American consumers for increased costs resulting from tariffs imposed without congressional authorization.
The bill establishes a formula, to be developed within 120 days, to calculate consumer cost increases attributable to these 'covered tariffs,' using data from various federal agencies and adjusting for income and geographic disparities.
Refunds will be distributed automatically through existing Treasury and IRS systems, with a streamlined application process for those not captured by those systems.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 5 more.

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