Summary#
This bill is a large, multi-topic package. Its main climate and infrastructure feature creates a new tax on greenhouse gas emissions in the Internal Revenue Code (called Subtitle L). The tax would apply to combusted fossil fuels, certain industrial process emissions, and emissions from certain manufactured products. The bill sets a starting carbon price and a schedule for annual increases, and it creates a border adjustment system for covered imported and exported goods. Revenue from the new tax would fund a new Rebuilding Infrastructure and Solutions for the Environment (RISE) Trust Fund and other programs. The bill also repeals the federal motor vehicle and aviation fuel excise taxes after 2025 and changes some clean air regulatory rules.
Beyond climate and infrastructure, the bill: establishes a National Climate Commission; authorizes grants for frequent and chronic flooding mitigation; creates worker assistance for displaced energy workers; establishes a National Bipartisan Fiscal Commission; increases National Cancer Institute appropriations for several years (the KO Cancer Act); designates a Defense Department coordinator for PFAS-impacted communities; imposes new restrictions on financial trading by House members; directs actions to combat human trafficking through financial-sector measures; requires school emergency plans and a CISA-led process to require or modify school doors; changes some voting rules for primaries and noncitizen voting requirements for states receiving federal election funds; requires a classified review of certain intelligence sharing with Ukraine; and makes several veterans and VA personnel changes.
What it means for you#
- House members would be barred from owning or trading many individual securities or derivative-based financial instruments (the bill allows certain broad funds and government bonds).
- States would get formula grants from the RISE Trust Fund and must set rules to distribute a portion to eligible low-income households (eligibility criteria are included in the bill).
- Schools that receive federal funds would need emergency response and parental notification procedures and would be subject to a CISA-led rulemaking and a later final rule about installing or modifying interior and exterior doors; the bill also authorizes federal grant funding to help carry this out.
- The National Cancer Institute would receive additional appropriations for several years under the KO Cancer Act.
- The bill creates procedures, commissions, and new program authorities that federal agencies must follow (for example, border tax adjustment rules, climate commission reporting, and PFAS coordination).
Expenses#
- The bill creates the RISE Trust Fund from amounts paid into the Treasury under the new greenhouse gas tax; 75 percent of those receipts are transferred into the RISE Trust Fund.
- For fiscal years 2027 through 2036 the bill specifies how RISE Trust Fund amounts may be allocated (as provided by appropriation Acts). Examples of percentage allocations in the bill include:
- 70% to the Highway Trust Fund
- 10% for State grants to distribute to eligible low-income households
- 4% for frequent and chronic coastal flooding mitigation and adaptation projects
- smaller percentage allocations (fractions of a percent to a few percent) to a range of programs including weatherization, Airport and Airway Trust Fund, abandoned mine reclamation, ARPA-E, carbon capture R&D, carbon removal R&D, energy storage R&D, reforestation, and conservation programs
- The KO Cancer Act section appropriates, for each of fiscal years 2026–2030, 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 for each fiscal year 2027 through 2036.
- The school door rulemaking is tied to administration under the State Homeland Security Grant Program and authorizes an additional $100,000,000 for the fiscal year in which the final rule is issued and for each of the nine fiscal years thereafter to carry out door-related activities.
- The bill repeals certain existing excise taxes (federal motor vehicle and aviation fuel taxes) effective for transactions after December 31, 2025.
- The bill includes penalty provisions for nonpayment of the greenhouse gas taxes (a penalty equal to three times the applicable tax amount for the tax year in which a person failed to comply).
- No overall, consolidated cost estimate or total spending figure is provided in the text of the bill.
Proponents' View#
No publicly available information.
Opponents' View#
No publicly available information.