2/23/26 — Senate Democrats Introduce Legislation to Force Rapid IEEPA Tariff Refunds

On February 23, 2026, Senate Finance Committee Ranking Member Ron Wyden (D-OR), along with Senators Edward Markey (D-MA) and Jeanne Shaheen (D-NH), introduced the Tariff Refund Act of 2026 -- legislation that would require U.S. Customs and Border Protection (CBP) to refund all IEEPA tariffs within 180 days of enactment, following the Supreme Court's 6-3 ruling in Learning Resources, Inc. v. Trump striking down those tariffs as unlawful.

The bill was co-sponsored by 19 additional Senate Democrats, including Minority Leader Chuck Schumer. It would require CBP to pay interest on all refunded amounts and to prioritize small businesses in the refund process. CBP would also be required to coordinate with the Small Business Administration to provide guidance and technical support to small importers navigating the refund process.

Importantly, the bill appears to cover all IEEPA tariffs, including those on entries that have already been finalized and closed ("liquidated") by CBP. The Supreme Court's ruling did not explicitly order refunds, leaving open significant questions about timing and process. Treasury Secretary Scott Bessent acknowledged the uncertainty, noting that the Administration would follow court guidance but that refunds could take weeks or months to sort out. President Trump, speaking unkindly of the Supreme Court decision, lamented last Friday that years of additional litigation might be required.

The bill would also impose transparency requirements, directing CBP to report to Congress every 30 days on the status of refunds until all payments are complete. The legislation further expressed the sense of Congress that importers, wholesalers, and large corporations should pass such refunds onward to their customers.

The Tariff Refund Act of 2026 faces an uncertain path in a Republican-controlled Senate; however, its introduction signals that Congress is actively monitoring the refund process, and creates political pressure on the Administration to establish a clear, accessible refund mechanism.

Importers with IEEPA tariff exposure should not wait for legislation to pass before taking protective legal action, as protest deadlines and liquidation timelines continue to run regardless of the legislative outlook.