Summary#
This bill is a large, multi-topic measure. Major parts include a nationwide tax on greenhouse gas emissions from fossil fuels, industrial processes, and some product uses; a border tax adjustment for certain imported and exported manufactured goods; creation of a RISE Trust Fund to distribute most revenue to infrastructure and climate programs; repeal of certain federal motor vehicle and aviation fuel excise taxes; and multiple other provisions.
Other parts of the bill set rules and spending for many topics. It creates a National Climate Commission, directs money for research and carbon removal programs, and funds grants to states and low-income households. It creates a program to help displaced energy workers, and it allows grants for frequent and chronic flooding mitigation projects. The bill also: increases National Cancer Institute funding for several years; designates a Defense Department coordinator for PFAS-impacted communities; creates a National Bipartisan Fiscal Commission with expedited congressional consideration of its recommendations; prohibits Members of the House from owning or trading certain financial derivatives; authorizes a strong sanctions package and trade duties related to Russia; requires a rulemaking and new security standards for school doors with related grant funds; sets rules about unaffiliated and noncitizen voting in primaries and election funding conditions; and makes changes to certain tax credits and energy-related programs.
The bill includes detailed definitions, deadlines for rulemaking or reports, and many procedural and administrative provisions. Many provisions take effect after December 31, 2025, or after rules and regulations are published.
What it means for you#
- Producers and importers of fossil fuels would pay a tax based on carbon dioxide equivalent emissions. The initial rate specified is $35 per metric ton in 2027 and the rate would rise each year as described in the bill.
- Certain industrial facilities and some manufactured products would also be taxed on greenhouse gas emissions. The bill sets criteria for which industries and products are covered and for periodic review of those lists.
- The bill creates a border tax adjustment system that can apply taxes to imported covered goods and rebate taxes on exports for eligible U.S. industries. The President may exempt or suspend those adjustments in some cases.
- Revenue from the greenhouse gas tax is directed largely into a Rebuilding Infrastructure and Solutions for the Environment (RISE) Trust Fund. The Trust Fund then distributes specified percentages to programs such as the Highway Trust Fund, airport and airway programs, state grants for low-income households, research programs, and flood mitigation projects.
- Federal motor vehicle and aviation fuel excise taxes in a specified part of the tax code are repealed for transactions after December 31, 2025.
- The bill provides additional appropriations to the National Cancer Institute for fiscal years 2026–2030 equal to 25 percent of the NCI’s FY2024 appropriation each year.
- The Department of Defense must designate a coordinator to engage with communities affected by PFAS contamination. The Department of Homeland Security’s CISA must lead a rulemaking process on reinforced interior and exterior school doors and related grants are authorized.
- The bill creates commissions and reporting requirements (for climate goals and fiscal recommendations) and sets procedures for congressional consideration of commission proposals.
- The bill contains a large sanctions and trade-title targeting entities affiliated with the Russian Federation, including blocking property, visa bans, prohibitions on certain financial transactions, limits on investment and energy exports to Russia, bans on importing uranium from Russia, and authority to raise duties on goods and services to specified high rates.
Expenses#
- The bill directs that 75 percent of amounts paid into the Treasury under the new greenhouse gas subtitle be appropriated and transferred to the RISE Trust Fund.
- Allocations from the RISE Trust Fund (percentages of the fund each fiscal year for 2027 through 2036) are specified in the bill, including: 70% to the Highway Trust Fund; 10% for State grants to distribute to eligible low-income households; and smaller percentages to programs for weatherization, displaced energy workers, airport and airway trust, abandoned mine reclamation, coastal flooding mitigation, ARPA-E, carbon capture and removal research, reforestation, conservation programs, and others. (The bill lists many line items with exact percentages.)
- The bill repeals certain federal motor vehicle and aviation fuel taxes for transactions after December 31, 2025, but does not state a net revenue estimate in the text.
- For cancer research, the bill appropriates, for each fiscal year 2026 through 2030, an amount equal to 25 percent of the total amount appropriated to the National Cancer Institute for fiscal year 2024, to remain available until expended.
- The National Climate Commission is authorized $5,000,000 per year for fiscal years 2027 through 2036.
- The SAFER Schools title authorizes an additional $100,000,000 for the Homeland Security Grant Program in the fiscal year the final rule is issued and for each of the nine fiscal years thereafter.
- The bill specifies many other program authorities and eligibility rules but does not provide a single total cost or net revenue figure. No publicly available information on the bill’s overall fiscal impact or total expected revenue is contained in the bill text.
Proponents' View#
The bill text includes findings and program descriptions that state its purposes. Supporters, according to the bill text, aim to: fund and rebuild roads, bridges, airports, and transit; address chronic infrastructure shortfalls; reduce greenhouse gas emissions through a market-based tax and related measures while protecting domestic industries from carbon leakage; invest in research and technologies such as carbon capture and removal; assist workers and communities affected by energy transitions; strengthen school security; increase cancer research funding; improve outreach to communities affected by PFAS from defense activities; and provide tools to pressure and punish actors affiliated with the Russian Federation through sanctions and trade measures.
Opponents' View#
No publicly available information.