The American Tariff Rebate Act creates a one-time federal tax credit for 2026 designed to provide financial relief to American taxpayers and U.S. territories. Eligible individuals will receive $2,000 per person ($4,000 for joint filers) plus $600 per dependent, with an advance payment distributed electronically by the IRS by December 31, 2026, and the amount offset against 2026 tax liability. The bill allocates $1.479 billion in fiscal year 2026 funding to the IRS and Treasury agencies to administer the program, with money remaining available through 2027-2028. Puerto Rico and other U.S. territories will receive compensation for tax revenue losses from the credit, capped at $500,000 per territory or $10 million for Puerto Rico. To help fund the program, the legislation eliminates $91.55 billion in previously appropriated but unspent immigration enforcement funds, including money designated for border infrastructure and detention capacity.