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By G. A. McNeeley
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February 24, 2026 (Washington D.C.) -- Three Senate Democrats released legislation on Monday, February 23 that would mandate refunds of tariffs paid under President Donald Trump's higher duties that The Supreme Court struck down on Friday, February 20, according to CNBC.
The legislation, led by Senator Ron Wyden (D-Oregon), Senator Jeanne Shaheen (D-New Hampshire), and Senator Ed Markey (D-Massachusetts) follows the Supreme Court's 6-3 decision that ruled against a majority of Trump's tariffs.
"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," Wyden said in a statement, according to CNBC.
What Else Are These Senate Democrats Asking For?
"Senate Democrats will continue fighting to rein in Donald Trump's price-hiking trade and economic policies,” Wyden added, according to CNBC. “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.”
The Senate bill would also require Customs and Border Protection (CBP) to pay refunds of all tariffs imposed by Trump's usage of the International Emergency Economic Powers Act (IEEPA).
CNBC added that CBP would have 180 days after enactment to process all refunds with interest, and to prioritize payments to small businesses when possible. It also directs importers, wholesalers and large corporations to pass those refunds on to their customers.
"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," Shaheen said in a statement, according to CNBC. "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."
What Are Two House Democrats Asking For?
MS NOW reported that on Friday, February 20, a pair of House Democrats offered their own measure to address the refund issue, putting CBP on an even tighter leash than the Senate’s proposed legislation.
Under the bill proposed by Representative Steven Horsford (D-Nevada) and Representative Janelle Bynum (D-Oregon), CBP would only have 90 days to reimburse businesses. Their bill also says importers shouldn’t have to formally submit an application to get a refund.
“When the government takes money without proper authority, it doesn’t get to keep it,” Horsford said in a statement, according to MS NOW. “It’s time to return the money and begin repairing the damage by this reckless trade policy.”
Horsford’s team also indicated that if House Republican leadership doesn’t allow for the consideration of his bill, he’s weighing options to force their hand, such as potentially pursuing a discharge petition.
What Has Trump Been Trying to Do Since?
The BBC reported that in the aftermath of The Supreme Court’s ruling on Friday, February 20, Trump issued a proclamation to impose a 10% global tariff on almost all imports to the U.S. under a never-used law known as Section 122.
However, on Saturday, February 21, in a Truth Social post, Trump said he would increase the global tariffs from 10% to 15%. Additionally, Section 122 gives him the power to put in place tariffs of up to 15% for 150 days, at which point Congress must step in.
The BBC added that there’s a possibility Trump could work around lawmakers. Section 122 doesn’t expressly prohibit the president from allowing the tariffs to lapse after 150 days, and then declaring a new emergency to bring them back, according to the right-leaning think tank known as The Cato Institute.
Trump is using Section 122 "to address fundamental international payments problems" and rebalance American trade, according to The White House, while also investigating whether he can impose tariffs under Section 301 of the Trade Act of 1974.
The BBC reported that the law allows the U.S. Trade Representative to investigate countries' trade practices, and then they can impose tariffs when it finds practices are "discriminatory" or "unfair.”
The administration can continue to impose tariffs under Section 232 of the Trade Expansion Act of 1962, which allows the administration to levy taxes on imports that threaten national security, but only after an investigation, which means they take time to impose.
The BBC added that Treasury Secretary Scott Bessent said that combining Section 122 tariffs with enhanced Section 232 and Section 301 tariffs "will result in virtually unchanged tariff revenue in 2026,” which would essentially make up for the loss of the IEEPA tariffs.
What Have California Leaders Been Saying?
“These tariffs were nothing more than an illegal cash grab that drove up prices and hurt working families, so you could wreck longstanding alliances and extort them,” Governor Gavin Newsom said in a statement, on Friday, February 20, according to KQED. “Every dollar unlawfully taken must be refunded immediately — with interest. Cough up!”
During a press conference on Friday, February 20, Attorney General Rob Bonta said those seeking claims could attempt to go through The Court of International Trade.
“California is going to remain vigilant as the refund process moves forward to ensure that businesses harmed by these illegal tariffs receive the relief that they’re owed,” Bonta added, according to KQED.
Meanwhile, officials at the Port of Oakland, one of the biggest import and export hubs on the West Coast, took a more cautious view of The Supreme Court’s ruling.
“We expect this will not be the final word on trade and tariffs,” Bryan Brandes, maritime director at the Port of Oakland, said, according to KQED. “Our trade community seeks stability and certainty, as increased volume at the Port of Oakland means increased prosperity across the region.”
What Has Everyone Else Been Saying?
The Hill reported that Senate Minority Leader Chuck Schumer (D-New York) said on Monday, February 23, that Democrats would attempt to block Trump’s plan to establish a new 15% global tariff rate under Section 122 of the Trade Act of 1974.
“Donald Trump’s 15% global tariffs will continue to raise prices and make life unaffordable for millions of Americans,” Schumer said in a statement, according to The Hill. “Senate Democrats will continue to fight back against Trump’s tariff tax, and will block any attempt to extend these harmful tariffs when they expire this summer.”
The Guardian reported that Trump also previously claimed that refunds would drive up U.S. government debt and hurt the economy. On Friday, February 20, he told reporters at a briefing that the refund process could be finished after he leaves The White House.
“I guess it has to get litigated for the next two years,” Trump said, according to The Guardian. However, he later amended his own timeline by saying that “we’ll end up being in court for the next five years.”
The Guardian added that Treasury Secretary Scott Bessent told CNN on Sunday, February 22, that it’s “bad framing” to raise the question of refunds, because The Supreme Court’s ruling didn’t address the issue. The administration’s position is that any refunds would be decided by lawsuits winding their way through the legal system.
“It is not up to the administration,” Bessent said, according to The Guardian. “It is up to the lower court,” he continued, also adding that he would “wait” for a court opinion on refunds.
Sources:
https://www.cnbc.com/amp/2026/02/23/congress-democrats-trump-tariffs.html
https://www.bbc.com/news/articles/c8r1e327z46o
https://thehill.com/homenews/senate/5751002-senate-democrats-trump-tariff-refunds/
https://www.theguardian.com/us-news/2026/feb/23/senate-democrats-tariffs-refund-bill
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