What does Preamble of HR 7865 do?

This bill aims to provide direct refunds to taxpayers. The refunds are intended to offset increased consumer costs. These increased costs are attributed to tariffs imposed without congressional authorization.

What does SHORT TITLE. of HR 7865 do?

This bill is formally titled the American Consumer Tariff Rebate Act of 2026.

What does FINDINGS. of HR 7865 do?

This section outlines findings related to duties and tariffs. It asserts that Congress has the constitutional authority to levy duties and tariffs. Presidential actions imposing duties under the International Emergency Economic Powers Act have allegedly increased consumer prices. Estimates suggest these tariffs have resulted in approximately $231.35 billion in consumer costs. The section states Congress has a responsibility to provide restitution to taxpayers for these cost increases, prioritizing working families and excluding high-income taxpayers.

What does DEFINITIONS. of HR 7865 do?

This section defines terms used within the Act. “Covered tariffs” are defined as duties imposed via Presidential action under the International Emergency Economic Powers Act that were later found to lack congressional authorization. “Eligible return” refers to a Federal individual income tax return filed for the most recent year with available information, including returns filed as single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse. “Qualified child” is defined by reference to section 24(c) of the Internal Revenue Code of 1986. “Secretary” refers to the Secretary of the Treasury or their delegate.

What does ESTABLISHMENT OF TAXPAYER REBATE. of HR 7865 do?

This section establishes a taxpayer rebate program. The Secretary is required to provide a one-time direct payment to each 'Eligible Return'. Payments are limited to those with an adjusted gross income not exceeding $400,000. The total amount of payments made under this Act cannot exceed $231,350,000,000. A 'Base Amount' is determined to ensure the total payments equal $231,350,000,000, calculated based on filing statuses. Payment amounts vary based on filing status: single and married filing separately receive 100% of the Base Amount, head of household receive 150%, and married filing jointly/qualifying surviving spouse receive 200%.

What does CHILD BONUS FUNDED BY HIGH-INCOME EXCLUSION. of HR 7865 do?

This section establishes a Child Bonus to be paid in addition to any amount paid under section 4. The Child Bonus is $125 for each Qualified Child claimed on an Eligible Return that is not excluded under section 4(b). Funding for the Child Bonus comes from amounts not paid due to the income limitation under section 4(b). Total payments under this section and section 4 cannot exceed $231,350,000,000. If funding is insufficient, the Secretary can reduce Child Bonus payments on a pro rata basis. The Secretary will attempt to disburse the Child Bonus with the section 4 rebate payment.

What does METHOD OF DISTRIBUTION. of HR 7865 do?

Payments will be distributed automatically using information available to the Internal Revenue Service. Payments can be made via direct deposit, paper check, or prepaid debit card. A simplified filing procedure will be established for individuals who did not file a return for the most recent taxable year but were otherwise eligible.

What does ADMINISTRATION. of HR 7865 do?

This section outlines administrative procedures for implementing the Act. The Secretary is authorized to create guidance, regulations, and procedures as needed. The Secretary may round payment amounts to the nearest whole dollar or other practical increment. Rounding of payments must be implemented in a way that ensures total payments do not exceed $231,350,000,000.

What does REPORT TO CONGRESS. of HR 7865 do?

This section requires the Secretary to submit reports to Congress. The initial report is due within 90 days of enactment, with subsequent reports every 60 days until all payments are distributed. Reports must detail the number of payments issued by filing status under section 4. Reports must detail the number of returns receiving a Child Bonus and the aggregate number of Qualified Children claimed under section 5. Reports must detail the total amount disbursed under sections 4 and 5. Reports must detail the remaining unobligated balance, if any, under the $231,350,000,000 aggregate limitation.

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American Consumer Tariff Rebate Act of 2026 — HR. 7865

Last updated: 3/9/2026 · Introduced: 3/9/2026

Author: Henry Cuellar (D-TX)

TL;DR (AI)

This bill establishes a one-time direct payment to eligible taxpayers to offset increased consumer costs resulting from tariffs imposed without congressional authorization.
Payments are capped at $400,000 adjusted gross income and total $231.35 billion, with amounts varying based on filing status and a supplemental 'Child Bonus' of $125 per qualified child for eligible families.
The Internal Revenue Service will automatically distribute payments using existing data, and a simplified filing procedure will be available for those who did not previously file a return.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 7 more.

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