President Donald Trump once floated the idea of sending Americans “tariff dividend checks,” but following a recent Supreme Court ruling, some Democrats argue that refunds — not dividends — should now be on the table.
On Friday, the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the measures exceeded presidential authority. The decision prompted swift reactions from Democratic leaders, who called on Trump to repay what they describe as costs borne by American families.
California Governor Gavin Newsom said the ruling validated longstanding criticisms of the policy.
“Donald Trump should return that money immediately. He has an obligation,” Newsom said. “Families were effectively taxed by these tariffs. Hundreds of billions of dollars were taken from working people, farmers, and small businesses through what has now been deemed an illegal action.”
Illinois Governor JB Pritzker echoed that sentiment, sending a letter to the president demanding refunds for families in his state.
“Your tariff taxes wreaked havoc on farmers, angered our allies, and drove up grocery prices,” Pritzker wrote. “On behalf of the people of Illinois, I demand a refund of $1,700 for every family.”
Pritzker’s office also issued an invoice billing the federal government for more than 5.1 million Illinois families, totaling over $8.6 billion. The document labeled the payment as “past due.”
Responding to the demand, White House spokesman Kush Desai dismissed the proposal, saying that if Pritzker “really cared about delivering economic relief for Illinois, he’d start with his own state government instead of chasing another headline.”
Both Newsom and Pritzker, widely viewed as potential contenders in the 2028 presidential election, have been frequent critics of Trump’s economic policies.
A recent report from Democratic members of Congress’ Joint Economic Committee estimated that American families paid an average of roughly $1,745 in tariff-related costs between February 2025 and January 2026, amounting to more than $231 billion nationwide. Separate analyses from Harvard Business School and Yale University have similarly concluded that tariff costs are largely absorbed by U.S. businesses and consumers.
Newsom’s office pointed to a Yale study suggesting tariffs cost the average family $1,751 last year.
In its ruling, the Supreme Court determined that tariffs enacted under the IEEPA — a law primarily intended for national security emergencies — went beyond the president’s legal authority. Trump criticized the decision and indicated he would explore alternative mechanisms to pursue trade measures.
Previously, Trump had highlighted revenue generated by tariffs and suggested the possibility of issuing $2,000 “tariff dividend checks” to middle- and low-income Americans. However, such payments would likely have required congressional approval. In subsequent remarks, Trump offered mixed signals regarding potential rebate plans.
With the IEEPA tariffs now invalidated, some American businesses are expected to seek reimbursement for duties already paid.
Still, uncertainty remains over whether refunds to consumers would materialize. The Supreme Court’s decision did not address the issue directly.
When asked Friday about potential refunds, Trump said, “I guess it has to get litigated for the next two years.”
Treasury Secretary Scott Bessent also downplayed the likelihood of repayments.
“I have a feeling the American people won’t see it,” Bessent said, adding that any resolution could be “dragged out for weeks, months, or years.”
