This bill creates a Debt Reduction Fund in the U.S. Treasury. Starting 100 days after the bill becomes law, each fiscal quarter the Secretary of the Treasury must deposit into the Fund: (1) 25% of the total revenue generated by each onshore and offshore federal oil and gas lease sale conducted under the Mineral Leasing Act, the Mineral Leasing Act for Acquired Lands, or the Outer Continental Shelf Lands Act during the preceding fiscal quarter; and (2) 25% of the total revenue generated by activities associated with Executive Order 14141 (relating to advancing United States leadership in artificial intelligence infrastructure). "Total revenue" means bonus bids collected at lease sales and royalties, rental payments, and fees accrued over the life of the lease that were disbursed to the Treasury as miscellaneous receipts. Amounts deposited in the Fund must be used solely to reduce the principal of the Federal debt by redeeming outstanding Treasury securities held by the public or other debt instruments, and that redemption must occur not later than the last day of each fiscal quarter. The Secretary must report to Congress within one year of enactment and then quarterly, listing the securities redeemed and the associated reduction in total Federal debt.
The bill directs a portion of certain federal oil and gas lease revenues and revenues tied to specified AI infrastructure activities into a special fund that is used only to pay down federal debt. It does not change who pays lease bonuses, royalties, rents, or fees in the bill text. It does not change tax rates, direct federal spending programs, or the legal terms of leasing in the text of the bill. The program begins 100 days after enactment. No publicly available information on how large the deposits will be or how this will affect interest rates, taxes, federal services, or lease activity.
The bill requires deposits equal to 25% of specified revenues each fiscal quarter into the Debt Reduction Fund. Those deposits must be applied to reduce federal debt principal. The bill text does not include estimates of total amounts, projected debt reductions, or any administrative costs to run the Fund. No publicly available information on estimated fiscal savings or broader budget impacts beyond the deposit and redemption instructions.
No publicly available information.
No publicly available information.