September 17, 2026
Mr. Khanna (for himself, Mr. García of Illinois, Mrs. Watson Coleman, Ms. Hoyle of Oregon, and Ms. Jayapal) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, 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
To provide payments to United States taxpayers and dependents to compensate for the costs of the Iran war, 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
This Act may be cited as the Illegal War Refund Act
.
Sec. 2. Payments to U.S. taxpayers and dependents for costs of Iran war
(a) Calculation
Not later than October 15 of fiscal year 2027 and each fiscal year thereafter, the Director of the Office of Management and Budget shall calculate the total economic costs (expressed as a single dollar amount) to United States taxpayers during the preceding fiscal year as a result of the Iran war, including the costs of negative impacts attributed to increased interest rates and the costs of increases in fuel prices, food prices, and inflation.
(b) Transfer of funds
(1) In general
On the date the Director makes the calculation under subsection (a), there are hereby transferred to the Secretary of the Treasury, from the total amount of unobligated funds available to the Department of Defense, an amount equal to the dollar amount of such calculation for purposes of making payments under subsection (c).
(2) Amount
Such funds shall be transferred from each account (excluding any accounts relating to military personnel, military construction, or the Defense Health Program) on a prorated basis and in a uniform percentage necessary to achieve a transfer of funds equaling such calculation.
(c) Payments
(1) In general
Not later than October 30 of any fiscal year beginning with fiscal year 2027, the Secretary of the Treasury shall make payments to—
(A)
any individual (other than a nonresident alien individual or an estate or trust) who filed a tax return for the taxable year ending during the preceding fiscal year; and
(B)
any dependent (as that term is defined in section 152 of the Internal Revenue Code of 1986) of such taxpayer.
(2) Amount; limitation
Each payment under paragraph (1) shall be in an equal amount and in such form and manner as the Secretary deems appropriate, except that any letter, check, or other document related to the payment may not bear the name, signature, or likeness of any elected official.