Summary#
This bill is a large, multi-topic package. Its main piece creates a new federal tax on greenhouse gas emissions from combusted fossil fuels, some industrial processes, and certain product uses. It sets annual tax rates starting in 2027, requires rules for calculating emissions, and allows refunds or credits in limited cases (for state payments, carbon capture, or products that reduce emissions). The bill adds a border tax adjustment for certain imported and exported goods. Revenues from the new tax are directed largely into a new Rebuilding Infrastructure and Solutions for the Environment (RISE) Trust Fund and then distributed by formula to highway, airport, coastal resilience, energy research, state grants to low-income households, and other programs. The bill also repeals some existing federal motor vehicle and aviation fuel excise taxes.
Beyond the climate and revenue provisions, the bill includes many other measures: increased National Cancer Institute funding for several years; a Department of Defense coordinator for PFAS-impacted communities; a National Bipartisan Fiscal Commission to propose deficit and debt legislation; restrictions on certain financial trading by House members; measures to strengthen financial-sector efforts to combat money laundering tied to human trafficking; new school door standards and funding for upgrades; requirements to allow unaffiliated voters to vote in primaries and to bar noncitizens from voting; an intelligence-sharing review related to Ukraine; changes to veterans' benefits for ALS; and other administrative and program changes across departments.
What it means for you#
- Energy and industry: The bill imposes a new per-ton tax on greenhouse gas emissions from fuels, some industrial facilities, and certain products. The tax starts with specified rates in 2027 and rises each year. The bill requires rules to calculate taxable emissions and sets where the tax is collected.
- Households: The bill creates state grants from the RISE Trust Fund to give money to eligible low-income households. States must tell the Treasury how they will distribute those grants.
- Infrastructure and local projects: Most revenues (as the bill directs) go to infrastructure funds, including highways, airports, coastal flooding mitigation, and research programs. Eligible local governments, tribes, and states can apply for grants for flood resilience projects.
- Health and research: The National Cancer Institute would receive additional appropriations each year from 2026 through 2030 equal to 25 percent of the NCI’s 2024 appropriation for cancer research.
- Schools and safety: The bill requires a CISA-led rulemaking on reinforced interior and exterior doors in primary and secondary schools, followed by a final rule and authorizes additional grant funding for states to carry out door upgrades.
- Other rules: Members of the House would be restricted from owning or trading many “covered financial instruments.” The bill creates new offices, studies, and reporting requirements in areas such as PFAS cleanup, human trafficking, and fiscal policy.
Expenses#
- The bill directs portions of revenues from the greenhouse gas tax into a new RISE Trust Fund. Seventy-five percent of amounts paid into the Treasury under the new subtitle are transferred to the RISE Trust Fund.
- The bill specifies percentage allocations from the RISE Trust Fund for fiscal years 2027–2036, including: 70% to the Highway Trust Fund; 10% for State grants to assist low-income households; 4% for frequent and chronic coastal flooding mitigation and adaptation projects; smaller shares for airport and airway trust funds, abandoned mine reclamation, Advanced Research Projects Agency–Energy, carbon capture and removal research, reforestation, conservation programs, and other specified programs.
- The Knock Out (KO) Cancer Act portion appropriates, for each of fiscal years 2026 through 2030, an amount equal to 25% of the total amount appropriated to the National Cancer Institute for fiscal year 2024. The bill states these amounts are in addition to other NCI funding.
- The National Climate Commission is authorized $5,000,000 per year for fiscal years 2027 through 2036.
- The SAFER Schools Act portion authorizes an additional $100,000,000 for the State Homeland Security Grant Program in the fiscal year the final school-door rule is issued and for each of the nine fiscal years thereafter.
- The bill repeals the federal motor vehicle and aviation fuel excise taxes for transactions after December 31, 2025.
- The bill contains many other program authorizations, rulemaking deadlines, and reporting requirements; it does not provide a single total dollar estimate in the text.
Proponents' View#
The bill's findings and purpose language state that proponents see an urgent need to maintain and modernize roads, bridges, airports, and urban transport; to address growing extreme weather and climate risks; and to fund infrastructure and research through an emissions-based market mechanism. Proponents frame the greenhouse gas tax and border adjustments as tools to reduce emissions while providing revenue for infrastructure and climate resilience. The bill also expresses support for boosting cancer research funding, improving outreach and remediation for PFAS-affected defense communities, strengthening financial-sector efforts against human trafficking, improving school safety through door upgrades, expanding primary access for unaffiliated voters, and strengthening fiscal oversight through a bipartisan commission.
Opponents' View#
No publicly available information.