Trump Recounts Discussion with OMB Director on Tariff Refunds During Cabinet Meeting

By Staff Reporter

*Published: March 26, 2026*

During a Cabinet meeting on Thursday, President Donald Trump recounted a conversation with Russell Vought, director of the Office of Management and Budget, regarding a court order related to tariff refunds. Trump stated: “I spoke with Russell Vought. I said, ‘Russell, don’t send them any money.’ He said, ‘But we have a court order that we have to.’ Can you believe it? … Justice Roberts doesn’t like when I say it, but the judges are really hurting this country.”

The remarks referred to a ruling by the Court of International Trade requiring the Trump administration to refund duties collected on certain imported goods, plus interest. This order followed a Supreme Court decision that deemed tariffs imposed by Trump early in his second term—under the International Emergency Economic Powers Act (IEEPA)—unconstitutional. In response to the Supreme Court ruling, U.S. Customs and Border Protection (CBP) ceased collecting the tariffs, and the administration terminated the IEEPA-based measures, according to official government statements and court filings.

Trump has previously indicated that the administration might pursue further litigation regarding the refunds, stating, “We’ll end up being in court for the next five years.” The outstanding refunds are estimated to total amounts that accrue approximately $700 million per month in interest, based on calculations from affected companies and court documents. Studies, including those from economic research firms, have indicated that tariff costs were passed on to U.S. consumers during the period the duties were in effect.

Administration officials have cited technical challenges in processing the refunds, including data management and verification requirements, as reasons for delays. The Court of International Trade ruling specified procedures for issuing payments to qualifying importers in states including Minnesota and California, among others.

In the same Cabinet meeting, Trump addressed other topics, including proposed changes to White House facilities. The New York Times reported on Thursday that Trump suggested converting the White House Treaty Room—historically used for diplomatic meetings with ambassadors and foreign dignitaries since the presidency of Ulysses S. Grant through George W. Bush—into a guest bedroom with an attached bathroom. The proposal was raised on February 6 during a tour for members of the Committee for the Preservation of the White House and the Commission of Fine Arts.

White House spokesperson Davis Ingle responded to the report, stating: “President Trump is the builder-in-chief with an extraordinary eye for detail and design, and his bold vision will be imprinted upon the fabric of America and be felt by generations to come. His successes will continue to give the White House the glory it deserves.”

This idea aligns with other renovation projects undertaken during Trump's tenure. Previous changes included modifications to the Rose Garden, additions of gold accents in areas such as the Oval Office, and preparations in the East Wing for a proposed 90,000-square-foot ballroom. Trump has described himself as a builder experienced in large-scale projects from his pre-presidential career in real estate.

Separately, the State Department has reallocated $1.2 billion in foreign aid funds to support the Board of Peace, an international initiative ratified on January 22, 2026, with 22 member states, according to State Department announcements and diplomatic records. Semafor first reported the reallocation on Thursday, noting that the funds came from $1 billion in international disaster assistance, $200 million from peacekeeping operations, and $50 million from contributions to international organizations.

The Board of Peace was established as a multilateral effort to promote stability in regions including Gaza, with Trump announcing a total U.S. commitment of $10 billion, which he described as “a very small number when you look at that compared to the cost of war.” Countries seeking permanent membership are required to contribute $1 billion each, per the board's framework. As of the latest disclosures, the board has not yet transferred funds to Gaza or detailed specific spending plans for peace promotion activities.

The reallocation occurred without direct congressional approval, amid a partial government shutdown, drawing criticism from Democrats. Senator Catherine Cortez Masto (D-Nev.) introduced legislation on Thursday to redirect $1 billion from the Board of Peace to the Low-Income Home Energy Assistance Program, citing rising energy costs. In a statement, Cortez Masto said: “Instead of giving President Trump a $1 billion blank check to fund a ‘Board of Peace’ that has offered no transparency about how it is investing its money, let’s focus on helping American families afford their monthly power bill.”

Democratic opposition to the Board of Peace has been ongoing since its ratification, with critics questioning the diversion of aid funds during domestic fiscal constraints. Supporters, including administration officials, argue it advances U.S. interests in global stability.

Sources familiar with White House discussions told Zeteo that President Trump has expressed frustration with Vice President JD Vance and Director of National Intelligence Tulsi Gabbard over their public statements on Middle East policy. The anonymous sources described Trump's comments as “snide” and “annoyed,” noting surprise given the generally aligned relationship between Trump and Vance.

Vance has sought to highlight differences on foreign interventions, following leaks suggesting his skepticism toward certain military actions. Gabbard, during a Senate Intelligence Committee appearance earlier this month, did not endorse White House assessments of threats from Iran. Both have historically voiced reservations about U.S. involvement in Middle East conflicts.

Vance is scheduled to travel to Islamabad this weekend for talks aimed at regional de-escalation, according to reports. White House spokesperson Davis Ingle addressed the matter, stating: “President Trump’s Peace through Strength foreign policy is a tried-and-true approach that keeps America safe and deters global threats. DNI Gabbard is an important member of the President’s team and her work continues to serve him and this country well.” The spokesperson added that Trump's relationship with Vance remains positive.

During the Cabinet meeting, Trump also discussed developments in U.S.-Iran relations. On Tuesday, he mentioned that Iran had provided the U.S. with “a very big present worth a tremendous amount of money” without specifying details at the time. On Thursday, Trump elaborated to reporters, asking special envoy Steve Witkoff for permission before revealing: “[Iran] said … ‘We are going to let you have eight boats of oil.’ Eight boats. Eight big boats of oil.”

Trump described watching the vessels—Pakistani-flagged—transiting the Strait of Hormuz on Fox News, adding that Iran later apologized for prior statements and promised two additional boats. Witkoff replied, “You can do anything you want, sir.” Trump joked to Witkoff, “I hope I haven’t screwed up your negotiations.”

Iran has denied engaging in direct negotiations with the U.S. Pakistan has been involved in mediation efforts between the two nations. Global oil markets have experienced volatility in recent weeks, influenced by regional tensions, though specific impacts on U.S. gas prices remain subject to ongoing economic analysis.

In other news related to congressional Democrats, Florida Representative Sheila Cherfilus-McCormick faces allegations of misusing $5 million from the Federal Emergency Management Agency (FEMA) for her 2021 campaign. The House Ethics Committee is scheduled to discuss the matter on Thursday, following a resolution by Representative Greg Steube (R-Fla.) to expel her after the investigation concludes.

Anonymous sources told The Hill that Cherfilus-McCormick requested a presidential pardon from Trump at the White House Christmas party in December. Cherfilus-McCormick has described the allegations as a politically motivated attack by the Trump administration. House Minority Leader Hakeem Jeffries (D-N.Y.) has stated that she “is entitled to the presumption of innocence like every other American.”

Representative Stephen Lynch (D-Mass.) commented to The Hill on the challenges of maintaining bipartisan standards in ethics proceedings: “How do you maintain your integrity and objectivity—you’re sitting as a judge now—so how do you maintain that credibility if you’re going to treat Democrats better than Republicans? That’s tough to ex—”

The committee's proceedings are expected to review evidence gathered during the investigation, with outcomes potentially affecting Cherfilus-McCormick's status in the House.

These developments come amid broader discussions on executive authority, judicial rulings, and foreign policy initiatives. The tariff refund process, for instance, stems from a series of legal challenges beginning in 2025, when importers in multiple states sued over duties on steel, aluminum, and other goods. The Supreme Court's decision in early 2026 invalidated the IEEPA justification, prompting the administration's compliance through termination of collections. However, the refund mechanism involves reconciling billions in payments across thousands of entries, a process CBP has described as logistically complex due to legacy systems and verification needs.

On the White House renovations, historical precedents exist for presidential modifications. Past occupants, from Theodore Roosevelt to Barack Obama, have altered interiors for functional or aesthetic reasons. Trump's projects, including the Rose Garden redesign in 2020—later partially reversed—and proposed expansions, reflect his background in construction. The East Wing ballroom plan, if realized, would be among the largest additions since the Truman reconstruction in the 1940s.

The Board of Peace initiative builds on Trump's prior Middle East efforts, such as the Abraham Accords. Its 22 members include nations from Europe, Asia, and the Middle East, with Gaza stabilization as a focus area. The $1.25 billion total U.S. allocation (including prior commitments) represents a fraction of annual foreign aid budgets exceeding $50 billion. Critics like Senator Cortez Masto highlight opportunity costs for domestic programs, while proponents cite potential long-term savings from conflict prevention.

Regarding internal White House dynamics, Vance's upcoming trip to Pakistan follows diplomatic channels established post-2025 elections. Gabbard's role as DNI emphasizes her military background and non-interventionist views, which she has articulated in past congressional testimony.

Trump's oil tanker revelation underscores backchannel communications amid sanctions and tensions. The Strait of Hormuz remains a critical chokepoint, with over 20% of global oil transiting daily. Pakistani-flagged vessels have been used in regional shipping, and any transfers would require verification under U.S. sanctions regimes.

The Cherfilus-McCormick case highlights ongoing ethics scrutiny in Congress. Similar investigations have targeted members from both parties, with expulsions rare—last occurring in 2002. FEMA funds are subject to strict audits, and the alleged diversion involves campaign finance reporting discrepancies.

Throughout the Cabinet meeting, Trump fielded questions on various fronts, maintaining his characteristic direct style. Reports of him appearing fatigued or dozing briefly circulated on social media, based on video clips, though White House officials denied any such occurrence, attributing pauses to listening attentively. These vignettes reflect the high-stakes environment of the administration's second term.

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