HouseH.R. 10759119th Congress
Tariff Relief for American Development and Employment Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10759 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10759
To establish a tariff-funded program to protect United States
manufacturers, workers, farmers, and supply chains from
disproportionate economic harm resulting from tariffs and foreign
retaliatory measures, to encourage domestic investment and reshoring,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 6, 2026
Mr. James introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a tariff-funded program to protect United States
manufacturers, workers, farmers, and supply chains from
disproportionate economic harm resulting from tariffs and foreign
retaliatory measures, to encourage domestic investment and reshoring,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tariff Relief for
American Development and Employment Act of 2026'' or the ``TRADE Act of
2026''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--TARIFF IMPACT RELIEF PROGRAM
Sec. 101. Establishment.
Sec. 102. Eligibility requirements.
Sec. 103. Types of assistance.
Sec. 104. Priority provisions.
Sec. 105. Limitation provisions.
Sec. 106. Database and audits.
Sec. 107. Sunset and evaluation.
TITLE II--TRADE FUND
Sec. 201. Establishment.
Sec. 202. Amounts.
Sec. 203. Protection of general revenues.
TITLE III--ADMINISTRATIVE PROVISIONS
Sec. 301. Report.
Sec. 302. Rule of construction.
Sec. 303. Sense of Congress.
Sec. 304. Regulations.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to preserve tariffs as an instrument of United States
trade and national-security policy;
(2) to recognize that the costs associated with tariffs and
foreign retaliation may fall disproportionately on particular
United States manufacturers, farmers, workers, industries, and
regions;
(3) to prevent otherwise competitive United States
businesses from reducing production, delaying investment,
relocating production outside the United States, or eliminating
United States jobs solely because of extraordinary tariff-
related costs;
(4) to dedicate a portion of tariff revenue to
strengthening United States productive capacity;
(5) to provide targeted, temporary assistance to United
States businesses that demonstrate actual tariff-related
economic injury;
(6) to reward businesses that maintain United States
employment, expand domestic production, reshore supply chains,
and invest in United States facilities; and
(7) to ensure that tariff relief strengthens United States
industry rather than subsidizing foreign production.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``covered tariff action'' means an increase in
a duty, tariff, or other import charge imposed by the United
States after January 20, 2025, pursuant to any provision of
Federal law, as designated by the Secretary of the Treasury;
(2) the term ``Fund'' means the Tariff Relief for American
Development and Employment Fund or TRADE Fund established by
section 201;
(3) the term ``net tariff injury'' includes--
(A) duties actually paid on inputs;
(B) losses resulting from foreign retaliatory
tariffs; and
(C) lost export sales demonstrably attributable to
retaliatory trade measures.
(4) the term ``person'' means an individual or entity;
(5) the term ``Program'' means the Tariff Impact Relief
Program established pursuant to section 101;
(6) except as otherwise provided, the term ``Secretary''
means the Secretary of Commerce; and
(7) the term ``State'' means any State of the United
States, the District of Columbia, any territory of the United
States, Puerto Rico, Guam, American Samoa, the Trust Territory
of the Pacific Islands, the Virgin Islands, and the Northern
Mariana Islands.
TITLE I--TARIFF IMPACT RELIEF PROGRAM
SEC. 101. ESTABLISHMENT.
(a) In General.--The Secretary, in consultation with the Secretary
of the Treasury and the United States Trade Representative, shall
establish and administer a program, to be known as the ``Tariff Impact
Relief Program'', to provide assistance described in section 103 to
persons that meet the eligibility requirements of section 102.
SEC. 102. ELIGIBILITY REQUIREMENTS.
(a) In General.--To receive assistance under the Program, a person
shall demonstrate to the Secretary that--
(1) the person--
(A) conducts substantial production, manufacturing,
agricultural, processing, or related productive
activity in the United States;
(B) has incurred a documented net tariff injury and
the injury is material relative to the applicant's
revenue, payroll, operating margin, capital
expenditures, or cost of production; and
(C) is in compliance with applicable Federal tax
and labor laws, as determined by the Secretary, in
consultation with the Secretary of the Treasury and the
United States Trade Representative; and
(2) assistance under the program will contribute to the
person maintaining or increasing production, employment,
investment, or productive capacity in the United States.
(b) ``Keep It in America'' Requirements.--To receive assistance
under the program, a person shall agree to--
(1) maintain substantially all production receiving the
assistance in the United States;
(2) not use the assistance to finance the relocation of
United States production to a foreign country;
(3) maintain employment at domestic facilities, subject to
reasonable exceptions for ordinary business fluctuations;
(4) use the assistance for working capital, payroll,
domestic capital investment, domestic sourcing, worker
training, productivity improvements, or other eligible domestic
purposes;
(5) disclose material relocations of production outside the
United States; and
(6) repay the assistance, in whole or in part, if the
person materially violates any of the requirements of
paragraphs (1) through (5).
SEC. 103. TYPES OF ASSISTANCE.
(a) Refundable Tariff Impact Credit.--
(1) In general.--Assistance may be provided in the form of
a refundable credit for net tariff injuries that are a result
of covered tariff actions.
(2) Limitation.--The amount of assistance provided under
this subsection for a net tariff injury, in addition to other
assistance provided for the same net tariff injury, may be
provided up to the full amount of the person's documented net
tariff injury, subject to section 105(b) and availability of
funds.
(b) Tariff Working-Capital Loans.--
(1) In general.--Assistance may be provided in the form of
low-interest loans to persons experiencing short-term liquidity
constraints attributable to--
(A) tariffs on manufacturing inputs;
(B) retaliatory foreign tariffs;
(C) supply-chain disruptions caused by covered
tariff actions; or
(D) extraordinary inventory, sourcing, or
production-transition costs caused by covered tariff
actions.
(2) Other terms and conditions.--A loan authorized under
this subsection shall--
(A) have a term of not more than 10 years;
(B) carry an interest rate sufficient to provide
for the Federal Government's cost of funds and expected
program losses;
(C) permit accelerated repayment without penalty;
and
(D) receive priority consideration for persons who
are small- and medium-sized manufacturers.
(c) American Investment Credit.--Assistance may be provided for
investments that--
(1) establish or expand production in the United States;
(2) reshore production or critical supply chains;
(3) substitute United States-made inputs for tariff-
affected foreign inputs;
(4) expand domestic production of critical minerals,
metals, components, machine tools, semiconductors, vehicles,
defense products, pharmaceuticals, agricultural products, or
other strategically important goods;
(5) modernize United States manufacturing facilities; or
(6) train or retain United States workers necessary for
such production.
(d) Rapid Relief for Critical Employers.--
(1) In general.--The Secretary may provide assistance in
the form of emergency bridge financing if a tariff-related
liquidity crisis creates an imminent risk of--
(A) closure of a United States manufacturing
facility;
(B) substantial layoffs;
(C) interruption of a critical domestic supply
chain; or
(D) loss of productive capacity important to
economic or national security.
(2) Audit and recapture.--Assistance provided under this
subsection shall be subject to auditing and recapture
requirements.
SEC. 104. PRIORITY PROVISIONS.
(a) Tariff Exposure Formula.--
(1) In general.--The Secretary shall provide assistance
under the Program to persons according to demonstrated economic
exposure rather than geographic or political considerations.
(2) Considerations.--In providing assistance under the
Program, the Secretary shall, with respect to a person,
consider--
(A) tariffs actually paid;
(B) exposure to foreign retaliatory tariffs;
(C) dependence upon integrated international supply
chains;
(D) tariff-related increases in production costs;
(E) the number of United States jobs at risk;
(F) the economic importance of the affected
facility to the surrounding community;
(G) the difficulty of obtaining economically viable
domestic substitutes in the short term;
(H) the applicant's plans to increase domestic
sourcing or production; and
(I) whether tariff costs threaten the
competitiveness of United States-made products against
finished foreign goods.
(b) Regional Concentration.--In providing assistance under the
Program, the Secretary may take into account whether tariff-related
economic injury is disproportionately concentrated within a State,
region, industrial corridor, or labor market.
(c) No State Quotas.--Nothing in this section may be construed to
establish an entitlement or predetermined allocation for any State.
(d) Integrated North American Supply Chains.--
(1) In general.--In evaluating a net tariff injury of a
person, the Secretary shall, for persons with manufacturing
operating within highly integrated North American supply
chains--
(A) evaluate cumulative tariff costs incurred
during the production process;
(B) avoid treating repeated border crossings of
substantially the same intermediate good as separate
economic benefits to the person;
(C) prioritize investments that reduce unnecessary
cross-border exposure while preserving economically
efficient United States production; and
(D) recognize domestic value added and United
States employment when determining eligibility.
(2) Rule of construction.--Nothing in this section may be
construed to supersede the United States-Mexico-Canada
Agreement or applicable rules of origin.
(e) Small- and Medium-Sized Firms.--
(1) In general.--In providing assistance under the Program,
the Secretary shall ensure that not less than 35 percent of
assistance provided annually is provided to persons described
in paragraph (2).
(2) Persons described.--Persons described in this paragraph
are--
(A) small enterprises, which shall mean a business
that qualifies as a small business concern under
section 3(a) of the Small Business Act (SBA) and the
SBA size standard for its primary industry; and
(B) medium-sized enterprises, which shall mean a
business that exceeds that industry's SBA numerical
size standard but does not exceed twice that standard.
For each type of enterprise described in subparagraphs (A),
(B), and (C), size shall be measured using the applicable
employee or annual-receipts test, including affiliates.
(3) Terms and conditions.--The Secretary shall, with
respect to small- and medium-sized United States manufacturers,
agricultural producers, processors, and suppliers that apply
for assistance under the Program, establish--
(A) an expedited application process;
(B) simplified documentation requirements;
(C) technical assistance;
(D) a 30-day target for decisions on complete
applications involving acute working-capital needs; and
(E) reasonable safeguards preventing large
enterprises (which shall mean a business that exceeds
twice that industry's SBA numerical size standard) from
routing applications through subsidiaries solely to
obtain small-business preferences.
(f) American Worker Protection.--In providing assistance under the
Program, priority shall be given to applicants that--
(1) retain United States workers;
(2) avoid tariff-related layoffs;
(3) increase wages or workforce training;
(4) establish apprenticeships or other skills-based
training programs;
(5) expand production at existing United States facilities;
or
(6) create new United States manufacturing jobs.
SEC. 105. LIMITATION PROVISIONS.
(a) Anti-Abuse Provisions.--
(1) In general.--No assistance under the Program may be
used for--
(A) stock buybacks;
(B) dividends or other capital distributions;
(C) increases in executive compensation;
(D) acquisition of a competing business unless the
Secretary determines the transaction materially expands
United States productive capacity;
(E) relocation of United States production
overseas;
(F) reimbursement of tariff costs already
reimbursed through drawback, refund, insurance, another
Federal program, or another party; or
(G) subsidization of imports where a reasonably
available and commercially competitive United States
substitute exists, except during a reasonable
transition period.
(2) Recapture provisions.--In carrying out the Program, the
Secretary shall establish recapture provisions for fraud,
material misrepresentation, and violations of the domestic-
production requirements of this title.
(b) No Windfalls.--
(1) In general.--Assistance under the Program shall be
limited to net economic injury of a person.
(2) Calculation of net economic injury.--In calculating the
net economic injury of a person under paragraph (1), the
Secretary shall--
(A) account for tariff costs passed through to
customers;
(B) tariff refunds or drawbacks;
(C) insurance proceeds;
(D) assistance received from other Federal
programs; and
(E) other recoveries that compensate the person for
the same injury.
(3) Other terms and conditions.--No person may recover more
than the full amount of the person's documented net tariff
injury under the Program.
SEC. 106. DATABASE AND AUDITS.
(a) In General.--The Secretary shall maintain a publicly accessible
database for the Program in order to identify--
(1) each recipient of assistance;
(2) the amount and form of assistance;
(3) the recipient's industry and State;
(4) the general nature of the net tariff injury;
(5) domestic employment commitments associated with the
assistance; and
(6) repayments or recaptures of the assistance.
(b) Protection of Proprietary Business Information and Trade
Secrets.--The database required by subsection (a) shall protect
proprietary business information and trade secrets.
(c) Audits.--The Inspector General of the Department of Commerce
shall conduct periodic audits of the Program.
SEC. 107. SUNSET AND EVALUATION.
(a) Sunset.--
(1) In general.--The authority to approve assistance under
the Program shall terminate on the date that is five years
after the date of the enactment of this Act, unless
reauthorized by Congress.
(2) Exception.--The provisions of paragraph (1) shall not
apply with respect to assistance under the Program provided
before the date described in paragraph (1), including loans,
repayment obligations, audits, and recapture authorities.
(b) Evaluation.--Not later than four years after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit to Congress an evaluation of the effectiveness of the
Program, including--
(1) the effect of the Program on employment and investment
in the United States;
(2) the fiscal impact of the Program;
(3) the extent to which assistance under the Program
prevented offshoring or fraud or improper payments; and
(4) whether the Program should be reauthorized, modified,
or terminated.
TITLE II--TRADE FUND
SEC. 201. ESTABLISHMENT.
There is established in the Treasury of the United States a fund to
be known as the ``Tariff Relief for American Development and Employment
Fund'' or ``TRADE Fund''.
SEC. 202. AMOUNTS.
(a) In General.--For each fiscal year, amounts from net additional
customs duties attributable to covered tariff actions, after refunds,
drawbacks, and administrative adjustments, shall be made available to
the Fund in such amounts as are necessary to provide assistance for
documented net tariff injury under title I, subject to the availability
of such receipts and applicable appropriations law.
(b) Availability.--Amounts made available to the Fund shall remain
available until expended.
SEC. 203. PROTECTION OF GENERAL REVENUES.
(a) In General.--Assistance provided under the Program shall be
financed from tariff revenues.
(b) Rule of Construction.--Nothing in this Act may be construed to
limit otherwise eligible relief to an arbitrary percentage of tariff
collections when sufficient tariff revenues are available.
TITLE III--ADMINISTRATIVE PROVISIONS
SEC. 301. REPORT.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and annually thereafter, the Secretary, in
consultation with the United States International Trade Commission,
shall submit to Congress a report on the implementation of the Program,
including--
(1) identifying tariff revenues collected;
(2) industries and regions bearing significant tariff
costs;
(3) effects of foreign retaliation;
(4) jobs maintained or created through assistance;
(5) domestic investment supported;
(6) supply chains reshored or diversified;
(7) changes in domestic productive capacity; and
(8) recommendations for improving the competitiveness of
United States industry.
(b) Matters To Be Included.--The report required by this section
shall include State-level data to the greatest extent practicable.
(c) Reference.--The report required by this section may be referred
to as the ``National Tariff Impact Report''.
SEC. 302. RULE OF CONSTRUCTION.
Nothing in this Act may be construed to--
(1) limit the authority of the President or Congress to--
(A) impose, modify, negotiate, or remove tariffs
under otherwise applicable law;
(B) require the removal or reduction of a tariff;
or
(C) create a private right to challenge a tariff;
or
(2) affect the authority of the United States Trade
Representative in international trade negotiations.
SEC. 303. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) tariffs should remain available to provide leverage
against unfair foreign trade practices, but United States
manufacturers and workers should not be required to finance a
trade dispute alone; and
(2) tariff policy should strengthen United States
productive capacity, and revenues generated by tariffs should,
where appropriate, help United States businesses and workers
withstand short-term economic disruption while they invest,
adapt, reshore, and compete.
SEC. 304. REGULATIONS.
Not later than 120 days after the date of the enactment of this
Act, the Secretary and the Secretary of the Treasury shall issue such
regulations as may be necessary to implement this Act, including
regulations to ensure a coordinated application process for the Program
to minimize administrative burdens and duplicative filings.
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