TRUST Act

Bill Number

H.R. 5153

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Economics and Public Finance

Status

Introduced

Latest Action

2025-09-04: Referred to the House Committee on Ways and Means.

Last Updated

2026-03-11T00:49:10Z

AI-Generated Summary

Purpose of the Legislation

The Tariff Revenue Used to Secure Tomorrow Act (TRUST Act) aims to create a dedicated fund in the U.S. Treasury to capture excess revenue from tariffs (import duties) and direct it exclusively toward reducing the federal budget deficit, particularly in years following fiscal years with ongoing deficits.

Key Provisions

• Establishment of the Fund: Creates the "Tariff Trust Fund" within the U.S. Treasury.
• Deposit Conditions:
• Applies if the U.S. has a budget deficit in fiscal year (FY) 2026 and continues to have one in the following fiscal year.
• Excess tariff revenues collected in that subsequent fiscal year—amounts above what was collected in FY 2025—are deposited into the Fund, overriding other laws on how such revenues are handled.
• Use of Funds: All amounts in the Fund are transferred to the Treasury's general fund and can only be used for reducing the budget deficit.
• Effective Date: Takes effect upon enactment, with deposits starting for tariffs collected on or after October 1, 2025 (the start of FY 2026).

Significant Changes to Existing Law

• Introduces a new, dedicated mechanism for handling tariff revenues, diverting excess collections from their usual allocation (which typically goes to the general fund for broad spending) to a deficit-specific fund.
• Ties tariff revenue deposits to the presence of consecutive budget deficits starting in FY 2026, creating a conditional fiscal tool not previously specified in tariff or budget laws.
• Overrides general provisions on revenue disposition, ensuring excess tariffs are ring-fenced for deficit reduction only.

Potential Impacts

• On Government Agencies: The U.S. Treasury and Office of Management and Budget may need to track and report tariff collections more precisely against FY 2025 baselines; could modestly aid in long-term deficit control if tariffs increase, potentially easing pressure on other federal borrowing or spending cuts.
• On Citizens: Indirect effects through economic ripple from tariffs, such as higher costs for imported goods (e.g., consumer products), which could raise prices for everyday items; benefits taxpayers via targeted deficit reduction, possibly stabilizing national debt over time.
• On International Relations: May incentivize higher tariffs on imports, potentially straining trade ties with exporting countries (e.g., leading to retaliatory measures or negotiations under trade agreements like USMCA or WTO rules).

Main Stakeholders Affected

• U.S. Government Entities: Treasury Department (manages the Fund), Congress (oversees budgeting and tariff policies), and federal agencies reliant on general fund revenues.
• Businesses and Importers: Companies importing goods, who pay tariffs and could face increased costs if revenues exceed baselines, affecting supply chains in sectors like manufacturing, agriculture, and retail.
• Taxpayers and the Public: All U.S. citizens and residents, as deficit reduction could influence future taxes, interest rates, and economic stability.
• Foreign Governments and Exporters: Trading partners whose exports to the U.S. are subject to tariffs, potentially impacting global trade volumes.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces Congress's constitutional authority under Article I to impose duties (tariffs) and control appropriations, but introduces a novel "trust fund" structure that could face challenges if seen as restricting executive discretion in revenue handling; aligns with existing customs laws (e.g., under Title 19 of the U.S. Code) but adds deficit-specific conditions.
• Constitutional: No direct conflicts, as it operates within Congress's taxing and spending powers, though it could indirectly influence separation of powers by linking trade policy (often executive-led) to fiscal outcomes.
• Political: Positions tariffs as a deficit-reduction tool, which may appeal to fiscal conservatives or protectionist policymakers but could spark debate over trade-offs between revenue gains and economic costs; as an introduced bill (H.R. 5153, 119th Congress), its passage would signal a shift toward using trade policy for domestic fiscal goals, potentially influencing future budget negotiations.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moran, Nathaniel [R-TX-1]

Recent Actions

• 2025-09-04: Referred to the House Committee on Ways and Means.
• 2025-09-04: Introduced in House
• 2025-09-04: Introduced in House

Bill Versions

• Tariff Revenue Used to Secure Tomorrow Act — issued 2025-09-04 — PDF (2 pages)