New York Gov. Kathy Hochul sent a letter to U.S. Treasury Secretary Scott Bessent on Feb. 26 demanding that the federal government refund approximately $13.5 billion in tariff payments to New Yorkers following a Supreme Court ruling that struck down President Donald Trump’s tariff policies as unlawful.
Hochul called on the Treasury Department to coordinate with other federal agencies and “immediately formulate and implement a plan to refund all tariff proceeds.”
The Democratic governor cited estimates from the Budget Lab at Yale showing that the average New York state household has faced roughly $1,751 in added costs since the tariffs were enacted in 2025.
“The Supreme Court has now said these tariffs are flat out illegal,” Hochul said on Feb. 26 during a visit to VOS Selections, a small business in New York City whose owner, Victor Schwartz, was a plaintiff in the lawsuit that led to the Supreme Court decision.
“It was done in violation of law. New Yorkers have paid more than they should have under an illegal scheme that the Supreme Court has now struck down.”
In her letter to Bessent, Hochul said the tariffs had driven up prices on everyday goods, raised supply and equipment costs for small businesses, and added uncertainty for the state’s farming industry.
“Having unlawfully seized billions of dollars from American people and businesses, the federal government should now do the right thing: give it back,” she wrote.
The governor said the $13.5 billion refund would cover household costs and would be separate from claims individual businesses may file.
“Small businesses already pay a lot in federal and state taxes,” Hochul said. “And now to have this extra tariff thrown on them and their customers is just a kick in the teeth and they don’t deserve that.”
Trump imposed varying tariffs on most of the world’s countries on what he called “Liberation Day” shortly after returning to the White House last year.
The move drew legal challenges from businesses and some states, culminating in the Supreme Court ruling last week that the tariffs imposed under the International Emergency Economic Powers Act were unlawful.
Hochul joins Illinois Gov. JB Pritzker and California Gov. Gavin Newsom, who last week called on the administration to issue refunds following the court ruling.
The White House dismissed the refund demands.
“President Trump used tariffs to actually deliver where Democrats could only talk, so naturally Democrats are resorting to gathering more meaningless popcorn headlines—pathetic but unsurprising,” White House spokesman Kush Desai said in a statement.
Penn Wharton Budget Model economists have estimated that more than $175 billion in U.S. tariff collections are subject to potential refunds nationwide. Bessent has said the issue of tariff refunds will be addressed by the lower courts.
Reuters contributed to this report.
Prior to the SCOTUS decision, the tariffs weren’t illegal. When the 21st Amendment was passed, people who were in jail for violating Prohibition weren’t all released. There should be no refunds.
And even if there were refunds, they would go to the people who paid them; i.e., the importers, not the buyers who paid higher prices as a result. I doubt Hochul is that economically illiterate—but she’s counting on her constituents and the rest of us being.
Just like if my governor makes rape Legal, and 3 years ago i got jailed for raping, HIS NEW law, doesn’t mean i didn’t BREAK the law way back when…
Of course the idea..er…scheme is for The State to collect the cash. The End.
“President Trump used tariffs to actually deliver where Democrats could only talk, so naturally Democrats are resorting to gathering more meaningless popcorn headlines—pathetic but unsurprising,” White House spokesman Kush Desai said in a statement.
Don’t hold your breath Hochel. The president was well within his rights to implement tariffs as he saw fit, until the SC ruled otherwise.
And even today, imposing tariffs is not illegal. The Supreme Court only ruled that using the section of law that Trump used was illegal. There are many other sections of law that give the president the power to impose tariffs.
Correct, and he has used those other laws to increase the tariffs! Further Trump won’t be pay what Hochul wants…. Her taxpayers will be paying it! All very very stupid to say the least!