Believing it improper to continue distribution at a time when federal revenue shortage necessitated increasing the tariff, Tyler vetoed both bills, burning any remaining bridges between himself and the Whigs.[102] Congress tried again, combining the two into one bill; Tyler vetoed it again, to the dismay of many in Congress, who nevertheless failed to override the veto. As some action was necessary, Whigs in Congress, led by the House Ways and Means chairman Millard Fillmore, passed in each house (by one vote) a bill restoring tariffs to 1832 levels and ending the distribution program. Tyler signed the Tariff of 1842 on August 30, pocket vetoing a separate bill to restore distribution.[103]

New York Customs House reform
In May 1841, President Tyler appointed three private citizens to investigate fraud in the New York Customs House that supposedly took place under President Martin Van Buren. The commission was led by George Poindexter, former governor, and Mississippi U.S. Senator. The commission uncovered fraudulent activities by Jesse D. Hoyt, the New York Collector under Van Buren. 