Two proposed bills aim to provide rebates to help offset the rising cost of living driven by tariffs.

A new initiative from Donald Trump’s administration could result in certain U.S. households receiving payments of up to $1,200.

Many Americans are currently feeling the strain as living expenses climb amid growing economic pressures across the country.

During his second presidency, Trump introduced broad tariffs on imported goods in an effort to support domestic industries.

However, these measures have contributed to higher consumer prices. Businesses that depend on foreign supplies—such as coffee, which cannot be produced domestically in sufficient quantities—are facing increased costs and passing them on to consumers, according to the Federal Reserve Bank of New York.

More recently, tensions involving Iran have added further pressure to the global economy, including the U.S. After responding to U.S. and Israeli actions, Iran blocked the Strait of Hormuz, a critical route that handles about 20 percent of the world’s oil shipments.

As a result, oil prices have surged, causing instability across financial markets.

In response, Trump’s administration is backing a proposal that could provide $1,200 payments to eligible households.

The measure was introduced by Senator Martin Heinrich on March 12 and seeks to offer tax rebates to families affected by tariff-related price increases.

Heinrich noted that many Americans are already experiencing the impact of these tariffs in everyday expenses, including groceries and essential household items.

His proposal aims to return a portion of those added costs to consumers who are now paying more.

The bill is called the ‘Tariff Refunds for Working Families Act’, and has the support of senators including Cory Booker, Ruben Gallego, and Kirsten Gillibrand, according to a report from the Daily Express.

Trump has reportedly previously promised rebates from the tariffs of up to $2,000, however now this money could instead be given to importers.

Heinrich’s bill would work on a sliding scale based on household income, with a lower income meaning a higher payment.

This would start with $600 for individuals earning $90,000 or less, as well as a ‘head of household’ who is earning $120,000 or less.

There is also a version for married couples, where if a couple has a joint income of $180,000 or less than they could get up to $1,200 under the proposed bill.

Apart from the income-based payment there is also a proposal for families to receive an additional $600 per dependant child.

Congressman Henry Cuellar has also introduced a similar bill, and would go to taxpayers who are earning under $400,000, with additional payments for children.

The laws have currently only been proposed, yet if they are passed then people in the US could see payments coming through.