119 HR 1 EH: One Big Beautiful Bill Act
U.S. House of Representatives
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EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the One Big Beautiful Bill Act
. 2.The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Title I—Committee on Agriculture
Subtitle A—Nutrition
Sec. 10001. Thrifty food plan.
Sec. 10002. Able bodied adults without dependents work requirements.
Sec. 10003. Able bodied adults without dependents waivers.
Sec. 10004. Availability of standard utility allowances based on receipt of energy assistance.
Sec. 10005. Restrictions on internet expenses.
Sec. 10006. Matching funds requirements.
Sec. 10007. Administrative cost sharing.
Sec. 10008. General work requirement age.
Sec. 10009. National Accuracy Clearinghouse.
Sec. 10010. Quality control zero tolerance.
Sec. 10011. National education and obesity prevention grant program repealer.
Sec. 10012. Alien SNAP eligibility.
Sec. 10013. Emergency food assistance.
Subtitle B—Investment in Rural America
Sec. 10101. Safety net.
Sec. 10102. Conservation.
Sec. 10103. Supplemental Agricultural Trade Promotion program.
Sec. 10104. Research.
Sec. 10105. Secure rural schools; forestry.
Sec. 10106. Energy.
Sec. 10107. Horticulture.
Sec. 10108. Miscellaneous.
Title II—Committee on Armed Services
Sec. 20001. Enhancement of Department of Defense resources for improving the quality of life for military personnel.
Sec. 20002. Enhancement of Department of Defense resources for shipbuilding.
Sec. 20003. Enhancement of Department of Defense resources for integrated air and missile defense.
Sec. 20004. Enhancement of Department of Defense resources for munitions and defense supply chain resiliency.
Sec. 20005. Enhancement of Department of Defense resources for scaling low-cost weapons into production.
Sec. 20006. Enhancement of Department of Defense resources for improving the efficiency and cybersecurity of the Department of Defense.
Sec. 20007. Enhancement of Department of Defense resources for air superiority.
Sec. 20008. Enhancement of resources for nuclear forces.
Sec. 20009. Enhancement of Department of Defense resources to improve capabilities of United States Indo-Pacific Command.
Sec. 20010. Enhancement of Department of Defense resources for improving the readiness of the Armed Forces.
Sec. 20011. Improving Department of Defense border support and counter-drug missions.
Sec. 20012. Department of Defense oversight.
Sec. 20013. Military construction projects authorized.
Sec. 20014. Plan required.
Sec. 20015. Limitation on availability of funds.
Title III—Committee on Education and Workforce
Subtitle A—Student Eligibility
Sec. 30001. Student eligibility.
Sec. 30002. Amount of need; cost of attendance; median cost of college.
Subtitle B—Loan Limits
Sec. 30011. Loan Limits.
Subtitle C—Loan Repayment
Sec. 30021. Loan repayment.
Sec. 30022. Deferment; forbearance.
Sec. 30023. Loan rehabilitation.
Sec. 30024. Public Service Loan Forgiveness.
Sec. 30025. Student loan servicing.
Subtitle D—Pell Grants
Sec. 30031. Eligibility.
Sec. 30032. Workforce pell grants.
Sec. 30033. Pell shortfall.
Subtitle E—Accountability
Sec. 30041. Agreements with institutions.
Sec. 30042. Campus-based aid programs.
Subtitle F—Regulatory Relief
Sec. 30051. Regulatory relief.
Subtitle G—Limitation on Authority
Sec. 30061. Limitation on authority of the Secretary to propose or issue regulations and executive actions.
Title IV—Energy and Commerce
Subtitle A—Energy
Sec. 41001. Rescissions relating to certain Inflation Reduction Act programs.
Sec. 41002. Natural gas exports and imports.
Sec. 41003. Funding for Department of Energy loan guarantee expenses.
Sec. 41004. Expedited permitting.
Sec. 41005. De-risking Compensation Program.
Sec. 41006. Strategic Petroleum Reserve.
Subtitle B—Environment
Part 1—Repeals and Rescissions
Sec. 42101. Repeal and rescission relating to clean heavy-duty vehicles.
Sec. 42102. Repeal and rescission relating to grants to reduce air pollution at ports.
Sec. 42103. Repeal and rescission relating to Greenhouse Gas Reduction Fund.
Sec. 42104. Repeal and rescission relating to diesel emissions reductions.
Sec. 42105. Repeal and rescission relating to funding to address air pollution.
Sec. 42106. Repeal and rescission relating to funding to address air pollution at schools.
Sec. 42107. Repeal and rescission relating to low emissions electricity program.
Sec. 42108. Repeal and rescission relating to funding for section 211(o) of the Clean Air Act.
Sec. 42109. Repeal and rescission relating to funding for implementation of the American Innovation and Manufacturing Act.
Sec. 42110. Repeal and rescission relating to funding for enforcement technology and public information.
Sec. 42111. Repeal and rescission relating to greenhouse gas corporate reporting.
Sec. 42112. Repeal and rescission relating to environmental product declaration assistance.
Sec. 42113. Repeal of funding for methane emissions and waste reduction incentive program for petroleum and natural gas systems.
Sec. 42114. Repeal and rescission relating to greenhouse gas air pollution plans and implementation grants.
Sec. 42115. Repeal and rescission relating to Environmental Protection Agency efficient, accurate, and timely reviews.
Sec. 42116. Repeal and rescission relating to low-embodied carbon labeling for construction materials.
Sec. 42117. Repeal and rescission relating to environmental and climate justice block grants.
Part 2—Repeal of EPA rules relating to greenhouse gas and multi-pollutant emissions standards
Sec. 42201. Repeal of EPA rules relating to greenhouse gas and multi-pollutant emissions standards.
Part 3—Repeal of NHTSA rules relating to CAFE standards
Sec. 42301. Repeal of NHTSA rules relating to CAFE standards.
Subtitle C—Communications
Part 1—Spectrum Auctions
Sec. 43101. Identification and auction of spectrum.
Part 2—Artificial Intelligence and Information Technology Modernization
Sec. 43201. Artificial intelligence and information technology modernization initiative.
Subtitle D—Health
Part 1—Medicaid
Subpart A—Reducing fraud and improving enrollment processes
Sec. 44101. Moratorium on implementation of rule relating to eligibility and enrollment in Medicare Savings Programs.
Sec. 44102. Moratorium on implementation of rule relating to eligibility and enrollment for Medicaid, CHIP, and the Basic Health Program.
Sec. 44103. Ensuring appropriate address verification under the Medicaid and CHIP programs.
Sec. 44104. Modifying certain State requirements for ensuring deceased individuals do not remain enrolled.
Sec. 44105. Medicaid provider screening requirements.
Sec. 44106. Additional Medicaid provider screening requirements.
Sec. 44107. Removing good faith waiver for payment reduction related to certain erroneous excess payments under Medicaid.
Sec. 44108. Increasing frequency of eligibility redeterminations for certain individuals.
Sec. 44109. Revising home equity limit for determining eligibility for long-term care services under the Medicaid program.
Sec. 44110. Prohibiting Federal financial participation under Medicaid and CHIP for individuals without verified citizenship, nationality, or satisfactory immigration status.
Sec. 44111. Reducing expansion FMAP for certain States providing payments for health care furnished to certain individuals.
Subpart B—Preventing wasteful spending
Sec. 44121. Moratorium on implementation of rule relating to staffing standards for long-term care facilities under the Medicare and Medicaid programs.
Sec. 44122. Modifying retroactive coverage under the Medicaid and CHIP programs.
Sec. 44123. Ensuring accurate payments to pharmacies under Medicaid.
Sec. 44124. Preventing the use of abusive spread pricing in Medicaid.
Sec. 44125. Prohibiting Federal Medicaid and CHIP funding for gender transition procedures.
Sec. 44126. Federal payments to prohibited entities.
Subpart C—Stopping abusive financing practices
Sec. 44131. Sunsetting eligibility for increased FMAP for new expansion States.
Sec. 44132. Moratorium on new or increased provider taxes.
Sec. 44133. Revising payments for certain State directed payments.
Sec. 44134. Requirements regarding waiver of uniform tax requirement for Medicaid provider tax.
Sec. 44135. Requiring budget neutrality for Medicaid demonstration projects under section 1115.
Subpart D—Increasing personal accountability
Sec. 44141. Requirement for States to establish Medicaid community engagement requirements for certain individuals.
Sec. 44142. Modifying cost sharing requirements for certain expansion individuals under the Medicaid program.
Part 2—Affordable Care Act
Sec. 44201. Addressing waste, fraud, and abuse in the ACA Exchanges.
Sec. 44202. Funding cost sharing reduction payments.
Part 3—Improving Americans’ access to care
Sec. 44301. Expanding and clarifying the exclusion for orphan drugs under the Drug Price Negotiation Program.
Sec. 44302. Streamlined enrollment process for eligible out-of-state providers under Medicaid and CHIP.
Sec. 44303. Delaying DSH reductions.
Sec. 44304. Modifying update to the conversion factor under the physician fee schedule under the Medicare program.
Sec. 44305. Modernizing and Ensuring PBM Accountability.
Title V—Committee on Financial Services
Sec. 50001. Green and resilient retrofit program for multifamily family housing.
Sec. 50002. Public Company Accounting Oversight Board.
Sec. 50003. Bureau of Consumer Financial Protection.
Sec. 50004. Consumer Financial Civil Penalty Fund.
Sec. 50005. Financial Research Fund.
Title VI—Committee on Homeland Security
Sec. 60001. Border barrier system construction, invasive species, and border security facilities improvements.
Sec. 60002. U.S. Customs and Border Protection personnel and fleet vehicles.
Sec. 60003. U.S. Customs and Border Protection technology, vetting activities, and other efforts to enhance border security.
Sec. 60004. State border security reimbursement.
Sec. 60005. State and local law enforcement presidential residence protection.
Sec. 60006. State homeland security grant program.
Title VII—Committee on the Judiciary
Subtitle A—Immigration Matters
Part 1—Immigration Fees
Sec. 70001. Applicability of the immigration laws.
Sec. 70002. Asylum fee.
Sec. 70003. Employment authorization document fees.
Sec. 70004. Parole fee.
Sec. 70005. Special immigrant juvenile fee.
Sec. 70006. Temporary protected status fee.
Sec. 70007. Unaccompanied alien child sponsor fee.
Sec. 70008. Visa integrity fee.
Sec. 70009. Form I–94 fee.
Sec. 70010. Yearly asylum fee.
Sec. 70011. Fee for continuances granted in immigration court proceedings.
Sec. 70012. Fee relating to renewal and extension of employment authorization for parolees.
Sec. 70013. Fee relating to termination, renewal, and extension of employment authorization for asylum applicants.
Sec. 70014. Fee relating to renewal and extension of employment authorization for aliens granted temporary protected status.
Sec. 70015. Diversity immigrant visa fees.
Sec. 70016. EOIR fees.
Sec. 70017. ESTA fee.
Sec. 70018. Immigration user fees.
Sec. 70019. EVUS fee.
Sec. 70020. Fee for sponsor of unaccompanied alien child who fails to appear in immigration court.
Sec. 70021. Fee for aliens ordered removed in absentia.
Sec. 70022. Customs and Border Protection inadmissible alien apprehension fee.
Sec. 70023. Amendment to authority to apply for asylum.
Part 2—Use of Funds
Sec. 70100. Executive Office for Immigration Review.
Sec. 70101. Adult alien detention capacity and family residential centers.
Sec. 70102. Retention and signing bonuses for U.S. Immigration and Customs Enforcement personnel.
Sec. 70103. Hiring of additional U.S. Immigration and Customs Enforcement personnel.
Sec. 70104. U.S. Immigration and Customs Enforcement hiring capability.
Sec. 70105. Transportation and removal operations.
Sec. 70106. Information technology investments.
Sec. 70107. Facilities upgrades.
Sec. 70108. Fleet modernization.
Sec. 70109. Promoting family unity.
Sec. 70110. Funding section 287(g) of the Immigration and Nationality Act.
Sec. 70111. Compensation for incarceration of criminal aliens.
Sec. 70112. Office of the Principal Legal Advisor.
Sec. 70113. Return of aliens arriving from contiguous territory.
Sec. 70114. State and local participation in homeland security efforts.
Sec. 70115. Unaccompanied alien children capacity.
Sec. 70116. Department of Homeland Security checks for unaccompanied alien children.
Sec. 70117. Department of Health and Human Services checks for unaccompanied alien children.
Sec. 70118. Information about sponsors and adult residents of sponsor households.
Sec. 70119. Repatriation of unaccompanied alien children.
Sec. 70120. United States Secret Service.
Sec. 70121. Combating drug trafficking and illegal drug use.
Sec. 70122. Investigating and prosecuting immigration related matters.
Sec. 70123. Expedited removal for criminal aliens.
Sec. 70124. Removal of certain criminal aliens without further hearing.
Subtitle B—Regulatory Matters
Sec. 70200. Review of agency rulemaking.
Subtitle C—Other Matters
Sec. 70300. Limitation on donations made pursuant to settlement agreements to which the United States is a party.
Sec. 70301. Solicitation of orders defined.
Sec. 70302. Restriction on enforcement.
Title VIII—Committee on Natural Resources
Subtitle A—Energy and Mineral Resources
Part 1—Oil and gas
Sec. 80101. Onshore oil and gas lease sales.
Sec. 80102. Noncompetitive leasing.
Sec. 80103. Permit fees.
Sec. 80104. Permitting fee for non-Federal land.
Sec. 80105. Reinstate reasonable royalty rates.
Part 2—Geothermal
Sec. 80111. Geothermal leasing.
Sec. 80112. Geothermal royalties.
Part 3—Alaska
Sec. 80121. Coastal plain oil and gas leasing.
Part 4—Coal
Sec. 80141. Coal leasing.
Sec. 80142. Future coal leasing.
Sec. 80143. Coal royalty.
Sec. 80144. Authorization to mine Federal minerals.
Part 5—NEPA
Sec. 80151. Project sponsor opt-in fees for environmental reviews.
Sec. 80152. Rescission relating to environmental and climate data collection.
Part 6—Miscellaneous
Sec. 80161. Protest fees.
Part 7—Offshore oil and gas leasing
Sec. 80171. Mandatory offshore oil and gas lease sales.
Sec. 80172. Offshore commingling.
Sec. 80173. Limitations on amount of distributed qualified outer Continental Shelf revenues.
Part 8—Renewable energy
Sec. 80181. Renewable energy fees on Federal lands.
Sec. 80182. Renewable energy revenue sharing.
Subtitle B—Water, Wildlife, and Fisheries
Sec. 80201. Rescission of funds for investing in coastal communities and climate resilience.
Sec. 80202. Rescission of funds for facilities of National Oceanic and Atmospheric Administration and national marine sanctuaries.
Sec. 80203. Surface water storage enhancement.
Sec. 80204. Water conveyance enhancement.
Subtitle C—Federal Lands
Sec. 80301. Rescission of Forest Service Funds.
Sec. 80302. Rescission of National Park Service and Bureau of Land Management Funds.
Sec. 80303. Rescission of Bureau of Land Management and National Park Service Funds.
Sec. 80304. Rescission of National Park Service Funds.
Sec. 80305. Celebrating America’s 250th Anniversary.
Sec. 80306. Long-Term Contracts for the Forest Service.
Sec. 80307. Long-Term Contracts for the Bureau of Land Management.
Sec. 80308. Timber production for the Forest Service.
Sec. 80309. Timber Production for the Bureau of Land Management.
Title IX—Committee on Oversight and Government Reform
Sec. 90001. Elimination of the FERS annuity supplement for certain employees.
Sec. 90002. Election for at-will employment and lower FERS contributions for new Federal civil service hires.
Sec. 90003. Filing fee for Merit Systems Protection Board claims and appeals.
Sec. 90004. FEHB protection.
Title X—Committee on Transportation and Infrastructure
Sec. 100001. Coast Guard assets necessary to secure the maritime border and interdict migrants and drugs.
Sec. 100002. Vessel tonnage duties.
Sec. 100003. Registration fee on motor vehicles.
Sec. 100004. Deposit of registration fee on motor vehicles.
Sec. 100005. Motor carrier data.
Sec. 100006. IRA rescissions.
Sec. 100007. Air traffic control staffing and modernization.
Sec. 100008. John F. Kennedy Center for the Performing Arts.
Title XI—Committee on Ways and Means, The One, Big, Beautiful Bill
Sec. 110000. References to the Internal Revenue Code of 1986, etc.
Subtitle A—Make American Families and Workers Thrive Again
Part 1—Permanently Preventing Tax Hikes on American Families and Workers
Sec. 110001. Extension of modification of rates.
Sec. 110002. Extension of increased standard deduction and temporary enhancement.
Sec. 110003. Termination of deduction for personal exemptions.
Sec. 110004. Extension of increased child tax credit and temporary enhancement.
Sec. 110005. Extension of deduction for qualified business income and permanent enhancement.
Sec. 110006. Extension of increased estate and gift tax exemption amounts and permanent enhancement.
Sec. 110007. Extension of increased alternative minimum tax exemption and phase-out thresholds.
Sec. 110008. Extension of limitation on deduction for qualified residence interest.
Sec. 110009. Extension of limitation on casualty loss deduction.
Sec. 110010. Termination of miscellaneous itemized deduction.
Sec. 110011. Limitation on tax benefit of itemized deductions.
Sec. 110012. Termination of qualified bicycle commuting reimbursement exclusion.
Sec. 110013. Extension of limitation on exclusion and deduction for moving expenses.
Sec. 110014. Extension of limitation on wagering losses.
Sec. 110015. Extension of increased limitation on contributions to ABLE accounts and permanent enhancement.
Sec. 110016. Extension of savers credit allowed for ABLE contributions.
Sec. 110017. Extension of rollovers from qualified tuition programs to ABLE accounts permitted.
Sec. 110018. Extension of treatment of certain individuals performing services in the Sinai Peninsula and enhancement to include additional areas.
Sec. 110019. Extension of exclusion from gross income of student loans discharged on account of death or disability.
Part 2—Additional Tax Relief for American Families and Workers
Sec. 110101. No tax on tips.
Sec. 110102. No tax on overtime.
Sec. 110103. Enhanced deduction for seniors.
Sec. 110104. No tax on car loan interest.
Sec. 110105. Enhancement of employer-provided child care credit.
Sec. 110106. Extension and enhancement of paid family and medical leave credit.
Sec. 110107. Enhancement of adoption credit.
Sec. 110108. Recognizing Indian tribal governments for purposes of determining whether a child has special needs for purposes of the adoption credit.
Sec. 110109. Scholarship granting organizations.
Sec. 110110. Additional elementary, secondary, and home school expenses treated as qualified higher education expenses for purposes of 529 accounts.
Sec. 110111. Certain postsecondary credentialing expenses treated as qualified higher education expenses for purposes of 529 accounts.
Sec. 110112. Reinstatement of partial deduction for charitable contributions of individuals who do not elect to itemize.
Sec. 110113. Exclusion for certain employer payments of student loans under educational assistance programs made permanent and adjusted for inflation.
Sec. 110114. Extension of rules for treatment of certain disaster-related personal casualty losses.
Sec. 110115. Trump accounts.
Sec. 110116. Trump accounts contribution pilot program.
Part 3—Investing in Health of American Families and Workers
Sec. 110201. Treatment of health reimbursement arrangements integrated with individual market coverage.
Sec. 110202. Participants in CHOICE arrangement eligible for purchase of Exchange insurance under cafeteria plan.
Sec. 110203. Employer credit for CHOICE arrangement.
Sec. 110204. Individuals entitled to part A of Medicare by reason of age allowed to contribute to health savings accounts.
Sec. 110205. Treatment of direct primary care service arrangements.
Sec. 110206. Allowance of bronze and catastrophic plans in connection with health savings accounts.
Sec. 110207. On-site employee clinics.
Sec. 110208. Certain amounts paid for physical activity, fitness, and exercise treated as amounts paid for medical care.
Sec. 110209. Allow both spouses to make catch-up contributions to the same health savings account.
Sec. 110210. FSA and HRA terminations or conversions to fund HSAs.
Sec. 110211. Special rule for certain medical expenses incurred before establishment of health savings account.
Sec. 110212. Contributions permitted if spouse has health flexible spending arrangement.
Sec. 110213. Increase in health savings account contribution limitation for certain individuals.
Sec. 110214. Regulations.
Subtitle B—Make Rural America and Main Street Grow Again
Part 1—Extension of Tax Cuts and Jobs Act Reforms for Rural America and Main Street
Sec. 111001. Extension of special depreciation allowance for certain property.
Sec. 111002. Deduction of domestic research and experimental expenditures.
Sec. 111003. Modified calculation of adjusted taxable income for purposes of business interest deduction.
Sec. 111004. Extension of deduction for foreign-derived intangible income and global intangible low-taxed income.
Sec. 111005. Extension of base erosion minimum tax amount.
Sec. 111006. Exception to denial of deduction for business meals.
Part 2—Additional Tax Relief for Rural America and Main Street
Sec. 111101. Special depreciation allowance for qualified production property.
Sec. 111102. Renewal and enhancement of opportunity zones.
Sec. 111103. Increased dollar limitations for expensing of certain depreciable business assets.
Sec. 111104. Repeal of revision to de minimis rules for third party network transactions.
Sec. 111105. Increase in threshold for requiring information reporting with respect to certain payees.
Sec. 111106. Exclusion of interest on loans secured by rural or agricultural real property.
Sec. 111107. Treatment of certain qualified sound recording productions.
Sec. 111108. Modifications to low-income housing credit.
Sec. 111109. Increased gross receipts threshold for small manufacturing businesses.
Sec. 111110. Global intangible low-taxed income determined without regard to certain income derived from services performed in the Virgin Islands.
Sec. 111111. Extension and modification of clean fuel production credit.
Sec. 111112. Restoration of taxable REIT subsidiary asset test.
Part 3—Investing in the Health of Rural America and Main Street
Sec. 111201. Expanding the definition of rural emergency hospital under the Medicare program.
Subtitle C—Make America Win Again
Part 1—Working Families over Elites
Sec. 112001. Termination of previously-owned clean vehicle credit.
Sec. 112002. Termination of clean vehicle credit.
Sec. 112003. Termination of qualified commercial clean vehicles credit.
Sec. 112004. Termination of alternative fuel vehicle refueling property credit.
Sec. 112005. Termination of energy efficient home improvement credit.
Sec. 112006. Termination of residential clean energy credit.
Sec. 112007. Termination of new energy efficient home credit.
Sec. 112008. Restrictions on clean electricity production credit.
Sec. 112009. Restrictions on clean electricity investment credit.
Sec. 112010. Repeal of transferability of clean fuel production credit.
Sec. 112011. Restrictions on carbon oxide sequestration credit.
Sec. 112012. Restrictions on zero-emission nuclear power production credit.
Sec. 112013. Termination of clean hydrogen production credit.
Sec. 112014. Phase-out and restrictions on advanced manufacturing production credit.
Sec. 112015. Phase-out of credit for certain energy property.
Sec. 112016. Income from hydrogen storage, carbon capture added to qualifying income of certain publicly traded partnerships treated as corporations.
Sec. 112017. Limitation on amortization of certain sports franchises.
Sec. 112018. Limitation on individual deductions for certain State and local taxes, etc.
Sec. 112019. Excessive employee remuneration from controlled group members and allocation of deduction.
Sec. 112020. Expanding application of tax on excess compensation within tax-exempt organizations.
Sec. 112021. Modification of excise tax on investment income of certain private colleges and universities.
Sec. 112022. Increase in rate of tax on net investment income of certain private foundations.
Sec. 112023. Certain purchases of employee-owned stock disregarded for purposes of foundation tax on excess business holdings.
Sec. 112024. Unrelated business taxable income increased by amount of certain fringe benefit expenses for which deduction is disallowed.
Sec. 112025. Exclusion of research income limited to publicly available research.
Sec. 112026. Limitation on excess business losses of noncorporate taxpayers.
Sec. 112027. 1-percent floor on deduction of charitable contributions made by corporations.
Sec. 112028. Enforcement of remedies against unfair foreign taxes.
Sec. 112029. Modification of treatment of silencers.
Sec. 112030. Modifications to de minimis entry privilege for commercial shipments.
Sec. 112031. Limitation on drawback of taxes paid with respect to substituted merchandise.
Sec. 112032. Treatment of payments from partnerships to partners for property or services.
Part 2—Removing Taxpayer Benefits for Illegal Immigrants
Sec. 112101. Permitting premium tax credit only for certain individuals.
Sec. 112102. Disallowing premium tax credit during periods of Medicaid ineligibility due to alien status.
Sec. 112103. Limiting Medicare coverage of certain individuals.
Sec. 112104. Excise tax on remittance transfers.
Sec. 112105. Social security number requirement for American opportunity and lifetime learning credits.
Part 3—Preventing Fraud, Waste, and Abuse
Sec. 112201. Requiring Exchange verification of eligibility for health plan.
Sec. 112202. Disallowing premium tax credit in case of certain coverage enrolled in during special enrollment period.
Sec. 112203. Eliminating limitation on recapture of advance payment of premium tax credit.
Sec. 112204. Implementing artificial intelligence tools for purposes of reducing and recouping improper payments under Medicare.
Sec. 112205. Earned income tax credit reforms.
Sec. 112206. Task force on the termination of Direct File.
Sec. 112207. Increase in penalties for unauthorized disclosures of taxpayer information.
Sec. 112208. Restriction on regulation of contingency fees with respect to tax returns, etc.
Subtitle D—Increase in Debt Limit
Sec. 113001. Modification of limitation on the public debt.
<enum>I</enum><header>Committee on Agriculture</header>
<subtitle id="H7CFF3C2AD4BD4F0D8BA65D834C03B429"><enum>A</enum><header>Nutrition</header>
<section id="H6CFB3A3AE2FD411EA29D8EADA41264E6"><enum>10001.</enum><header>Thrifty food plan</header><text display-inline="no-display-inline">Section 3(u) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2012">7 U.S.C. 2012(u)</external-xref>) is amended to read as follows:</text> <quoted-block id="H1C50B55727F34987B7EF4D4FA15F3D5E" style="OLC"> <subsection id="H55687D00C66145558013500A811C1E08"><enum>(u)</enum> <paragraph id="HB96449D4B9DD4982A891446C5A625956" display-inline="yes-display-inline"><enum>(1)</enum><text><quote>Thrifty food plan</quote> means the diet required to feed a family of 4 persons consisting of a man and a woman 20 through 50, a child 6 through 8, and a child 9 through 11 years of age, based on relevant market baskets that shall only be changed pursuant to paragraph (3). The cost of such diet shall be the basis for uniform allotments for all households regardless of their actual composition. The Secretary shall only adjust the cost of the diet as specified in paragraphs (2) and (4).</text></paragraph>
<paragraph id="H5ACB6F9508E147DE9ACA05068ABD8979" indent="up1"><enum>(2)</enum><header>Household adjustments</header><text>The Secretary shall make household-size adjustments based on the following ratios of household size as a percentage of the maximum 4-person allotment:</text> <subparagraph id="H5388FD001C2F4FA98202EC7CBDB998F8"><enum>(A)</enum><text>For a 1-person household, 30 percent.</text></subparagraph>
<subparagraph id="HACB491F423924CB8822463CE7F5F9310"><enum>(B)</enum><text>For a 2-person household, 55 percent.</text></subparagraph> <subparagraph id="H2F60CA594B9F4BF5A35E4733C905CC2C"><enum>(C)</enum><text>For a 3-person household, 79 percent.</text></subparagraph>
<subparagraph id="HEC60CB8B9F96443184B8B174532700C2"><enum>(D)</enum><text>For a 4-person household, 100 percent.</text></subparagraph> <subparagraph id="H1ACA6E5A8ACA434695142A2025BC5A83"><enum>(E)</enum><text>For a 5-person household, 119 percent.</text></subparagraph>
<subparagraph id="HB6F2153F656D429C9ACCD53021333533"><enum>(F)</enum><text>For a 6-person household, 143 percent.</text></subparagraph> <subparagraph id="H6D63FA46076A48958384AE9C7DF0F3BA"><enum>(G)</enum><text>For a 7-person household, 158 percent.</text></subparagraph>
<subparagraph id="H21EF52B130994DB9A56EE8ADE4BF7222"><enum>(H)</enum><text>For an 8-person household, 180 percent.</text></subparagraph> <subparagraph id="H898CA9763A18410A8FBDDA8C1025FC5E"><enum>(I)</enum><text>For a 9-person household, 203 percent.</text></subparagraph>
<subparagraph id="H24089427613D4C1A8E9C13A3AE7FA88D"><enum>(J)</enum><text>For a 10-person household, 224 percent.</text></subparagraph> <subparagraph id="HA31802921AB04D28B729D30D385DBB09"><enum>(K)</enum><text>For households with more than 10 persons, such adjustment for each additional person shall be 224 percent plus the product of 21 percent and the difference in the number of persons in the household and 10.</text></subparagraph></paragraph>
<paragraph id="H8C8D6DCD4A0E4B079FF33147FA437AA2"><enum>(3)</enum><header>Reevaluation of market baskets</header>
<subparagraph id="HFDA77FBA482C4A579D57EF08F96F4F05"><enum>(A)</enum><header>Evaluation</header><text>Not earlier than October 1, 2028, and at not more frequently than 5-year intervals thereafter, the Secretary may reevaluate the market baskets of the thrifty food plan taking into consideration current food prices, food composition data, consumption patterns, and dietary guidance.</text></subparagraph> <subparagraph id="H71CBB1A394924803A2D4CD34B816A76E"><enum>(B)</enum><header>Notice</header><text>Prior to any update of the market baskets of the thrifty food plan based on a reevaluation pursuant to subparagraph (A), the methodology and results of any such revelation shall be published in the Federal Register with an opportunity for comment of not less than 60 days.</text></subparagraph>
<subparagraph id="H5506DA86896946279B7CC93AA94E30F6"><enum>(C)</enum><header>Cost neutrality</header><text>The Secretary shall not increase the cost of the thrifty food plan based on a reevaluation or update under this paragraph.</text></subparagraph></paragraph> <paragraph id="HD5AA356CC0BD4C7A868BFF11F33FEB9E"><enum>(4)</enum><header>Allowable cost adjustments</header><text display-inline="yes-display-inline">On October 1 immediately following the effective date of this paragraph and on each October 1 thereafter, the Secretary shall—</text>
<subparagraph id="HD972672CE04649C0B39E237E0CFBFF0C"><enum>(A)</enum><text>adjust the cost of the thrifty food plan to reflect changes in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, for the most recent 12-month period ending in June;</text></subparagraph> <subparagraph id="H0EE960F4E4C4401689A466D3D4EA0B9A"><enum>(B)</enum><text>make cost adjustments in the thrifty food plan for urban and rural parts of Hawaii and urban and rural parts of Alaska to reflect the cost of food in urban and rural Hawaii and urban and rural Alaska provided such cost adjustment shall not exceed the rate of increase described in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, for the most recent 12-month period ending in June; and</text></subparagraph>
<subparagraph id="H06E89E5661D140DFA1D12CC777C66A3D"><enum>(C)</enum><text>make cost adjustments in the separate thrifty food plans for Guam and the Virgin Islands of the United States to reflect the cost of food in those States, but not to exceed the cost of food in the 50 States and the District of Columbia, provided that such cost adjustment shall not exceed the rate of increase described in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, for the most recent 12-month period ending in June.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H1ED85B8829B6428BA825D53BC97B1C06"><enum>10002.</enum><header>Able bodied adults without dependents work requirements</header> <subsection id="H869650C6EA984B50B3EF3BC4F9E9EEA4"><enum>(a)</enum><text display-inline="yes-display-inline">Section 6(o)(3) of the Food and Nutrition Act of 2008 is amended to read as follows:</text>
<quoted-block id="H84EDAD6D782447B2A9ABF0A1C2ECBAF5">
<paragraph id="H7B698CA87FF44062AB142ECB5F92A21F"><enum>(3)</enum><header>Exception</header><text display-inline="yes-display-inline">Paragraph (2) shall not apply to an individual if the individual is—</text> <subparagraph id="HF10DD9043AF24E61A0D6F4AEC48695F5"><enum>(A)</enum><text display-inline="yes-display-inline">under 18 or over 65 years of age;</text></subparagraph>
<subparagraph id="HDAE3004CB1334CC8BC178D0CC1C7DAE5"><enum>(B)</enum><text>medically certified as physically or mentally unfit for employment;</text></subparagraph> <subparagraph id="HBFCE34B226AF49BF80922BC72C0529B1"><enum>(C)</enum><text>a parent or other member of a household with responsibility for a dependent child under 7 years of age;</text></subparagraph>
<subparagraph id="H853C01EFECD043209B2C571C963E4F55"><enum>(D)</enum><text>otherwise exempt under subsection (d)(2);</text></subparagraph> <subparagraph id="HE9ADAEF36667402C86C032725C54007F"><enum>(E)</enum><text>a pregnant woman;</text></subparagraph>
<subparagraph id="H53F4B49D2EFB41659203B7294FC5B97C"><enum>(F)</enum><text>currently homeless;</text></subparagraph> <subparagraph id="HB0C1A6982B4347409FF8E7274D0E79E8"><enum>(G)</enum><text>a veteran;</text></subparagraph>
<subparagraph id="H0D660A69BE1446759EA0EE4C2CE91546"><enum>(H)</enum><text>24 years of age or younger and was in foster care under the responsibility of a State on the date of attaining 18 years of age or such higher age as the State has elected under section 475(8)(B)(iii) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/675">42 U.S.C. 675(8)(B)(iii)</external-xref>); or</text></subparagraph> <subparagraph id="HAF7301FE72C8488F84A1FC50F7FCC9BB"><enum>(I)</enum><text>responsible for a dependent child 7 years of age or older and is married to, and resides with, an individual who is in compliance with the requirements of paragraph (2).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H0AFB79C167634B3A9FA66EC144F771F6"><enum>(b)</enum><header>Sunset Provision</header><text>The exceptions in subparagraphs (F) through (H) shall cease to have effect on October 1, 2030.</text></subsection></section> <section id="H6155CFC258E84DFD86278BB71AC4D049"><enum>10003.</enum><header>Able bodied adults without dependents waivers</header><text display-inline="no-display-inline">Section 6(o) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2015">7 U.S.C. 2015(o)</external-xref>) is amended—</text>
<paragraph id="H1DB878D540EA4F3094E6DE3230AD02B3"><enum>(1)</enum><text>by amending paragraph (4)(A) to read as follows:</text> <quoted-block id="H580538D8EFBD4B658D37CC3351A83A3D" style="OLC"> <subparagraph id="HBE96F87C73604B0F96E336119D5524A7"><enum>(A)</enum><header>In general</header><text>On the request of a State agency and with the support of the chief executive officer of the State, the Secretary may waive the applicability of paragraph (2) for not more than 12 consecutive months to any group of individuals in the State if the Secretary makes a determination that the county, or county-equivalent (as recognized by the Census Bureau) in which the individuals reside has an unemployment rate of over 10 percent.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="H96FA8138749F422F94D0C6F8F9C824F9"><enum>(2)</enum><text>in paragraph (6)(F) by striking <quote>8 percent</quote> and inserting <quote>1 percent</quote>.</text></paragraph></section> <section id="H4155CA9037774A269C24484556F176E2"><enum>10004.</enum><header>Availability of standard utility allowances based on receipt of energy assistance</header> <subsection id="H8E93FA54C9CC41D58AB1E3937A347D2E"><enum>(a)</enum><header>Allowance to recipients of energy assistance</header> <paragraph id="HF0DD5C47AC1048669643DB613D888EEB"><enum></enum><text>Section 5(e)(6)(C)(iv)(I) of the of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2014">7 U.S.C. 2014(e)(6)(C)(iv)(I)</external-xref>) is amended by inserting <quote>with an elderly or disabled member</quote> after <quote>households</quote>.</text></paragraph> </subsection>
<subsection id="H6931B6DC17A84CE881E055B9B7DEA0C6"><enum>(b)</enum><header>Third-party energy assistance payments</header><text>Section 5(k)(4) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2014">7 U.S.C. 2014(k)(4)</external-xref>) is amended—</text> <paragraph id="HA12A9281DAFB4D15A268AC61BC53E9E7"><enum>(1)</enum><text>in subparagraph (A) by inserting <quote>without an elderly or disabled member</quote> after <quote>household</quote> the 1st place it appears; and</text></paragraph>
<paragraph id="H9B26A10AF1104DD488AE84DB392FA2E4"><enum>(2)</enum><text>in subparagraph (B) by inserting <quote>with an elderly or disabled member</quote> after <quote>household</quote> the 1st place it appears.</text></paragraph></subsection></section> <section id="HE2F89C70E76642ED92FDBCF32A45DDF7"><enum>10005.</enum><header>Restrictions on internet expenses</header><text display-inline="no-display-inline">Section 5(e)(6) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2014">7 U.S.C. 2014(e)(6)</external-xref>) is amended by adding at the end the following: </text>
<quoted-block style="OLC" id="H71127A940BB04F2B82E1045A0540DCA9" display-inline="no-display-inline">
<subparagraph id="H13CEB1824C9D4446B0B5A7927D998448"><enum>(E)</enum><header>Restrictions on internet expenses</header><text>Service fees associated with internet connection, including, but not limited to, monthly subscriber fees (i.e., the base rate paid by the household each month in order to receive service, which may include high-speed internet), taxes and fees charged to the household by the provider that recur on regular bills, the cost of modem rentals, and fees charged by the provider for initial installation, shall not be used in computing the excess shelter expense deduction.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H1676B3AE934D4656885C1D6ED9314690"><enum>10006.</enum><header>Matching funds requirements</header> <subsection id="HB0FF34336CED40AD82CFB1E418FB620C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 4(a) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2013">7 U.S.C. 2013(a)</external-xref>) is amended—</text>
<paragraph id="HE1767A959DBA424F89056752674A52F1"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC"><enum-in-header>(a) </enum-in-header></header-in-text>Subject to</quote> and inserting the following: </text> <quoted-block style="OLC" id="HCE4C576D97004F36A87F30F5D1146663" display-inline="no-display-inline"> <subsection id="HFE4CE5767D09436D9A97697FD0CC066C"><enum>(a)</enum><header>Program</header> <paragraph id="H5346B5551EAA4AFDB9C2F025CF7B63E8"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Subject to</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="HE79AEA0F6C3D4C64B7DC86BF9D963F47"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="H45921D8A61E84B3795A41F4967D583CF" style="OLC"> <paragraph id="HE4B14ADE82924171BCCEA0C2CD27F34B" indent="up1"><enum>(2)</enum><header>Matching funds requirements</header> <subparagraph id="H3E190ADDC1BE43AFA8E553E75A154B90"><enum>(A)</enum><header>In general</header> <clause id="HA9806340242146A5812C04E9B8A9F9B2"><enum>(i)</enum><header>Federal share</header><text>Subject to subparagraph (B), the Federal share of the cost of allotments described in paragraph (1) in a fiscal year shall be—</text>
<subclause id="H0553204C9FB94F028FCF6C06DCD82420"><enum>(I)</enum><text>for each of fiscal years 2026 and 2027, 100 percent; and</text></subclause> <subclause id="H9FA59B783A76404A9BCDB3F986F17264"><enum>(II)</enum><text>for fiscal year 2028 and each fiscal year thereafter, 95 percent.</text></subclause></clause>
<clause id="H6037A1C0FD9F4A099DE006EF6403A380"><enum>(ii)</enum><header>State share</header><text display-inline="yes-display-inline">Subject to subparagraph (B), the State share of the cost of allotments described in paragraph (1) in a fiscal year shall be—</text> <subclause id="H8E1FCB3EA9714A33B6940BB382907B46"><enum>(I)</enum><text>for each of fiscal years 2026 and 2027, 0 percent; and</text></subclause>
<subclause id="HC6F8721DF2D24FF9A4A5572B85F0AD50"><enum>(II)</enum><text>for fiscal year 2028 and each fiscal year thereafter, 5 percent.</text></subclause></clause></subparagraph> <subparagraph id="HF99FD6D4F501461E8980D39648697F7D"><enum>(B)</enum><header>State quality control incentive</header><text>Beginning in fiscal year 2028, any State that has a payment error rate, as defined in section 16, for the most recent complete fiscal year for which data is available, of—</text>
<clause id="H725158F071F44FAB8AA277B65B4D86A2"><enum>(i)</enum><text>equal to or greater than 6 percent but less than 8 percent, shall have its Federal share of the cost of allotments described in paragraph (1) for the current fiscal year equal 85 percent, and its State share equal 15 percent;</text></clause> <clause id="H13D64D7F163248D3A92228A18A45E3A8"><enum>(ii)</enum><text display-inline="yes-display-inline">equal to or greater than 8 percent but less than 10 percent, shall have its Federal share of the cost of allotments described in paragraph (1) for the current fiscal year equal 80 percent, and its State share equal 20 percent; and</text></clause>
<clause id="H050EFD2BF3F64D15B6B274D1399A4DD1"><enum>(iii)</enum><text display-inline="yes-display-inline">equal to or greater than 10 percent, shall have its Federal share of the cost of allotments described in paragraph (1) for the current fiscal year equal 75 percent, and its State share equal 25 percent.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H5CCEFE5A1CEF4A8AB582CCF1C0D2490F"><enum>(b)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">The Secretary of Agriculture may not pay towards the cost of allotments described in paragraph (1) of section 4(a) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2013">7 U.S.C. 2013(a)</external-xref>), as designated by subsection (a), an amount greater than the applicable Federal share described in paragraph (2) of such section 4(a), as added by subsection (a).</text></subsection></section>
<section id="HEF5FCA9FE2C04BB2891C7F22137C0EE2"><enum>10007.</enum><header>Administrative cost sharing</header><text display-inline="no-display-inline">Section 16(a) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2025">7 U.S.C. 2025(a)</external-xref>) is amended by striking <quote>50 per centum</quote> and inserting <quote>25 percent</quote>.</text></section> <section id="HA5D49DDEAA3843B198179A064898FCE3"><enum>10008.</enum><header>General work requirement age</header><text display-inline="no-display-inline">Section 6(d) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2015">7 U.S.C. 2015(d)</external-xref>) is amended—</text>
<paragraph id="HA222B001CDB44E3286BD839AF7D96B90"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(A), in the matter preceding clause (i), by striking <quote>over the age of 15 and under the age of 60</quote> and inserting <quote>over the age of 17 and under the age of 65</quote>; and</text></paragraph> <paragraph id="H7E3876661679410FB475B63DDCDE80BC"><enum>(2)</enum><text>in paragraph (2)—</text>
<subparagraph id="HF8DE7466DFF64609923D005DEC2637DC"><enum>(A)</enum><text>by striking <quote>child under age six</quote> and inserting <quote>child under age seven</quote>; and</text></subparagraph> <subparagraph id="H15604DE5CA904CA5989C0B5355E21E55"><enum>(B)</enum><text>by striking <quote>between 1 and 6 years of age</quote> and inserting <quote>between 1 and 7 years of age</quote>. </text></subparagraph></paragraph></section>
<section id="H5EDB0E3C290F46EFB98164F882F64A3C"><enum>10009.</enum><header>National Accuracy Clearinghouse</header><text display-inline="no-display-inline">Section 11(x)(2) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2020">7 U.S.C. 2020(x)(2)</external-xref>) is amended by adding at the end the following: </text> <quoted-block style="OLC" id="H19BA35C6E992484BB62AE8E1CE003AB3" display-inline="no-display-inline"> <subparagraph id="H1A62E7F5BCE446138A22140E0450F519"><enum>(D)</enum><header>Data sharing to prevent other multiple issuances</header><text display-inline="yes-display-inline">A State agency shall use each indication of multiple issuance, or each indication that an individual receiving supplemental nutrition assistance program benefits in 1 State has applied to receive supplemental nutrition assistance program benefits in another State, to prevent multiple issuances of other Federal and State assistance program benefits that a State agency administers through the integrated eligibility system that the State uses to administer the supplemental nutrition assistance program in the State.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="HBBA02B6C287340879D020DECA9C0A8C1"><enum>10010.</enum><header>Quality control zero tolerance</header><text display-inline="no-display-inline">Section 16(c)(1)(A)(ii) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2025">7 U.S.C. 2025(c)(1)(A)(ii)</external-xref>) is amended—</text> <paragraph id="HCE60B9AEE9FC40A49151181A775AE3AE"><enum>(1)</enum><text>in subclause (I), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="HE088BA8298E4480AA15539154228D77A"><enum>(2)</enum><text>in subclause (II)—</text> <subparagraph id="HB8BEBF89629F4955BD9D9EA54662576C"><enum>(A)</enum><text>by striking <quote>fiscal year thereafter</quote> and inserting <quote>of fiscal years 2015 through 2025</quote>; and</text></subparagraph>
<subparagraph id="HCACF5B625FBF4EFABF1B4FEB240FB8D4"><enum>(B)</enum><text>by striking the period at the end and inserting <quote>; and</quote>; and </text></subparagraph></paragraph> <paragraph id="H70CD0C99E85F4FEDA1F23CBAE72F44A2"><enum>(3)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" id="H7BC53027581D45A7A5287E9F36CA0805" display-inline="no-display-inline">
<subclause id="H4EB895D6A68C422BB846F30E2855898A"><enum>(III)</enum><text display-inline="yes-display-inline">for each fiscal year thereafter, $0.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HFD819B736D1740C9BF1409394504DE5C"><enum>10011.</enum><header>National education and obesity prevention grant program repealer</header><text display-inline="no-display-inline">The Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2011">7 U.S.C. 2011 et seq.</external-xref>) is amended by striking section 28 (<external-xref legal-doc="usc" parsable-cite="usc/7/2036a">7 U.S.C. 2036a</external-xref>).</text></section>
<section id="H8E51016337D14CC9A85A79B8C760F4B0"><enum>10012.</enum><header>Alien SNAP eligibility</header><text display-inline="no-display-inline">Section 6(f) of the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2015">7 U.S.C. 2015(f)</external-xref>) is amended to read as follows: </text> <quoted-block style="OLC" id="HBC3D4FFA8DB44223ADC1F071F4A1857D" display-inline="no-display-inline"> <subsection id="H63902A697B0F4780B1564EA1C6F63FC3"><enum>(f)</enum><text display-inline="yes-display-inline">No individual who is a member of a household otherwise eligible to participate in the supplemental nutrition assistance program under this section shall be eligible to participate in the supplemental nutrition assistance program as a member of that or any other household unless he or she is—</text>
<paragraph id="H6EDF4D7AB64249B3A633EDC55CF463EB"><enum>(1)</enum><text>a resident of the United States; and</text></paragraph> <paragraph id="H0A1E86E2AD37413CA9063A62B4BCB023"><enum>(2)</enum><text>either—</text>
<subparagraph id="H039FBBBEBB0C415D960949E7D0493369"><enum>(A)</enum><text>a citizen or national of the United States;</text></subparagraph> <subparagraph id="H642997013EE546388590F3F929E819C3"><enum>(B)</enum><text display-inline="yes-display-inline">an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; </text></subparagraph>
<subparagraph id="H3990AFD2010447228E55E298B543D300"><enum>(C)</enum><text>an alien who is a citizen or national of the Republic of Cuba and who—</text> <clause id="H50B80EB26FB54CDA9CBA911DA843F868"><enum>(i)</enum><text>is the beneficiary of an approved petition under section 203(a) of the Immigration and Nationality Act;</text></clause>
<clause id="HA6358251A32E49188AD52431C2AAFA20"><enum>(ii)</enum><text>meets all eligibility requirements for an immigrant visa but for whom such a visa is not immediately available;</text></clause> <clause id="H0D0DBDFEEEFD4B33B5A7215413A55CA8"><enum>(iii)</enum><text>is not otherwise inadmissible under section 212(a) of such Act; and</text></clause>
<clause id="H001E5155B90045F1A990AD63636C59B2"><enum>(iv)</enum><text>is physically present in the United States pursuant to a grant of parole in furtherance of the commitment of the United States to the minimum level of annual legal migration of Cuban nationals to the United States specified in the U.S.-Cuba Joint Communiqué on Migration, done at New York September 9, 1994, and reaffirmed in the Cuba-United States: Joint Statement on Normalization of Migration, Building on the Agreement of September 9, 1994, done at New York May 2, 1995; or</text></clause></subparagraph> <subparagraph id="HBC5E5596F66C4DFA9A91ADE48230ABA3"><enum>(D)</enum><text display-inline="yes-display-inline">an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</text></subparagraph><continuation-text continuation-text-level="paragraph">The income (less, at State option, a pro rata share) and financial resources of the individual rendered ineligible to participate in the supplemental nutrition assistance program under this subsection shall be considered in determining the eligibility and the value of the allotment of the household of which such individual is a member.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H24F0C7D6C5934899B1900DC91836E37C" commented="no"><enum>10013.</enum><header>Emergency food assistance</header><text display-inline="no-display-inline">Section 203D(d)(5) of the Emergency Food Assistance Act of 1983 (<external-xref legal-doc="usc" parsable-cite="usc/7/7507">7 U.S.C. 7507(d)(5)</external-xref>) is amended by striking <quote>2024</quote> and inserting <quote>2031</quote>.</text></section></subtitle> <subtitle id="H436FC1EA3198472CBB28CC495B16E1EB"><enum>B</enum><header>Investment in Rural America</header> <section id="H0A9222CD0AF84CF0AA2E0317272B11F2" section-type="subsequent-section"><enum>10101.</enum><header>Safety net</header> <subsection id="H112EBAABE1E14FAFB794A657027CEE8D"><enum>(a)</enum><header>Reference price</header><text display-inline="yes-display-inline">Section 1111(19) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9011">7 U.S.C. 9011(19)</external-xref>) is amended to read as follows:</text>
<quoted-block style="OLC" id="HC4B4BCBC33F14945AECE65A1A10A132B" display-inline="no-display-inline">
<paragraph id="HB16F02A6E4B847A6BD03D4677A4F1556"><enum>(19)</enum><header>Reference price</header>
<subparagraph id="H614D8492C22F478B85F78CC408FE3808"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraphs (B) and (C), the term <quote>reference price</quote>, with respect to a covered commodity for a crop year, means the following:</text> <clause id="H30058884D8D54E2CB5F869B5F51DBF5D"><enum>(i)</enum><text display-inline="yes-display-inline">For wheat, $6.35 per bushel.</text></clause>
<clause id="H180FA368F7F84015BB3617D63A9D2C19"><enum>(ii)</enum><text>For corn, $4.10 per bushel.</text></clause> <clause id="HF8D97B19A3574562A94358F787DC0C83"><enum>(iii)</enum><text>For grain sorghum, $4.40 per bushel.</text></clause>
<clause id="HD72B61A358A34E1082B93A0DCEE935CA"><enum>(iv)</enum><text>For barley, $5.45 per bushel.</text></clause> <clause id="H9ED3D1EEF7DD488BBF2B497CCC6F7AAB"><enum>(v)</enum><text>For oats, $2.65 per bushel.</text></clause>
<clause id="H61457625CC1E44F2A582775B8A5ABE9D"><enum>(vi)</enum><text>For long grain rice, $16.90 per hundredweight.</text></clause> <clause id="HDE2BC82E6F6F401F911E71279ED1B566"><enum>(vii)</enum><text>For medium grain rice, $16.90 per hundredweight.</text></clause>
<clause id="H68F7EE3E0A064E3C9B08A63D39448DB0"><enum>(viii)</enum><text>For soybeans, $10.00 per bushel.</text></clause> <clause id="H1C55FC77BA7E46B680B307C88F55996C"><enum>(ix)</enum><text>For other oilseeds, $23.75 per hundredweight.</text></clause>
<clause id="HD5CD3E6EA9E34B8EA8BED04966B75D81"><enum>(x)</enum><text>For peanuts, $630.00 per ton.</text></clause> <clause id="HE8CDF5530C9647F5A6297289B2F6F5B3"><enum>(xi)</enum><text>For dry peas, $13.10 per hundredweight.</text></clause>
<clause id="H1EA790CD3D924BED890BDC58A29E005F"><enum>(xii)</enum><text>For lentils, $23.75 per hundredweight.</text></clause> <clause id="H66A3341677D64E1ABB33410661064492"><enum>(xiii)</enum><text>For small chickpeas, $22.65 per hundredweight.</text></clause>
<clause id="H83E70D4FC6F143CC997E7886EEEAD2CC"><enum>(xiv)</enum><text>For large chickpeas, $25.65 per hundredweight.</text></clause> <clause id="H94C84D96B6C04AB28F7737AEA812F0A3"><enum>(xv)</enum><text>For seed cotton, $0.42 per pound.</text></clause></subparagraph>
<subparagraph id="H6E3DDCC316CD418690BF731573EB6D37"><enum>(B)</enum><header>Effectiveness</header><text display-inline="yes-display-inline">Effective beginning with the 2031 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price in the previous crop year multiplied by 1.005.</text></subparagraph> <subparagraph id="H2FDC04D762BD4B56A14AF95B13796A61"><enum>(C)</enum><header>Limitation</header><text display-inline="yes-display-inline">In no case shall a reference price for a covered commodity exceed 115 percent of the reference price for such covered commodity listed in subparagraph (A).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF42C104E9BFE4AFFB8CBE3474785846A"><enum>(b)</enum><header>Base acres</header><text display-inline="yes-display-inline">Section 1112 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9012">7 U.S.C. 9012</external-xref>) is amended—</text> <paragraph id="HF4EE1974102A43EB9C2CB930FF5B061D"><enum>(1)</enum><text>in subsection (d)(3)(A), by striking <quote>2023</quote> and inserting <quote>2031</quote>; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H523D3CD7627E469E8FBFEE3D15D148A5"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H52A570109676482C9DFAE33264B9F3FD"> <subsection id="H27DEA7CA75A848179D6A1F2C22597A58"><enum>(e)</enum><header>Additional base acres</header> <paragraph id="HD1E5FBA87B9E4527B3B903EE44708F55"><enum>(1)</enum><header>In general</header><text>As soon as practicable after the date of enactment of this subsection, and notwithstanding subsection (a), the Secretary shall provide notice to owners of eligible farms pursuant to paragraph (4) and allocate to those eligible farms a total of not more than an additional 30,000,000 base acres in the manner provided in this subsection.</text></paragraph>
<paragraph id="H6182463E551D464AA87954B4927B9C8E" commented="no"><enum>(2)</enum><header>Content of notice</header><text>The notice under paragraph (1) shall include the following:</text> <subparagraph id="HE0C0D6B8977A4DF1AB27003E23812E1A" commented="no"><enum>(A)</enum><text>Information that the allocation is occurring.</text></subparagraph>
<subparagraph id="H1495873EB94441A48D533497ECD9258A" commented="no"><enum>(B)</enum><text>Information regarding the eligibility of the farm for an allocation of base acres under paragraph (4).</text></subparagraph> <subparagraph id="H054562945613477DB5F3AB93F7C3C11B" commented="no"><enum>(C)</enum><text>Information regarding how an owner may appeal a determination of ineligibility for an allocation of base acres under paragraph (4) through an appeals process established by the Secretary.</text></subparagraph></paragraph>
<paragraph id="H25DE9F44430A41B8BB3788C4B578B961"><enum>(3)</enum><header>Opt-out</header><text>An owner of a farm that is eligible to receive an allocation of base acres may elect to not receive that allocation by notifying the Secretary.</text></paragraph> <paragraph id="H558057A33C3E4AF5B9181641E02A576B"><enum>(4)</enum><header>Eligibility</header> <subparagraph id="HD0CA26C190774AF4959F1E64798AE962"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (D), effective beginning with the 2026 crop year, a farm is eligible to receive an allocation of base acres if, with respect to the farm, the amount described in subparagraph (B) exceeds the amount described in subparagraph (C).</text></subparagraph>
<subparagraph id="H8980F3B50A7349B1B073F99C8D39766B"><enum>(B)</enum><header>5-year average sum</header><text>The amount described in this subparagraph, with respect to a farm, is the sum of—</text> <clause id="H5403D5434AB84100A17784DB5875FFF4"><enum>(i)</enum><text>the 5-year average of—</text>
<subclause id="H28C1F2202AE542AEBD8C550A94260DEA"><enum>(I)</enum><text>the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage or other similar purposes for the 2019 through 2023 crop years; and</text></subclause> <subclause id="H5AB26FFD842945AFA07568EDEF4C7A7D"><enum>(II)</enum><text>any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; plus</text></subclause></clause>
<clause id="H0F7001E2F406498290CDEB609A66EA53"><enum>(ii)</enum><text>the lesser of—</text> <subclause id="HD67102DC526140EBB54FAEE936DA2B77"><enum>(I)</enum><text>15 percent of the total acres on the farm; and</text></subclause>
<subclause id="HB688388B054F456084FC82664471AD8E"><enum>(II)</enum><text>the 5-year average of—</text> <item id="H063BDD818E1E4A2F821FAED76E7531C3"><enum>(aa)</enum><text>the acreage planted on the farm to eligible noncovered commodities for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and</text></item>
<item id="H3C2854198AD64A74A7F011AD663562FF"><enum>(bb)</enum><text>any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to eligible noncovered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary.</text></item></subclause></clause></subparagraph> <subparagraph id="H49CF4E7EDAFC4A10961576014CB594F9"><enum>(C)</enum><header>Total number of base acres for covered commodities</header><text>The amount described in this subparagraph, with respect to a farm, is the total number of base acres for covered commodities on the farm (excluding unassigned crop base), as in effect on September 30, 2024.</text></subparagraph>
<subparagraph id="HCB4A0ABFD9BF42FE897652379E87E180"><enum>(D)</enum><header>Effect of no recent plantings of covered commodities</header><text>In the case of a farm for which the amount determined under clause (i) of subparagraph (B) is equal to zero, that farm shall be ineligible to receive an allocation of base acres under this subsection.</text></subparagraph> <subparagraph id="H615A5A5DC2F64B1ABAD864B6D37460C0"><enum>(E)</enum><header>Acreage planted on the farm to eligible noncovered commodities defined</header><text>In this paragraph, the term <term>acreage planted on the farm to eligible noncovered commodities</term> means acreage planted on a farm to commodities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fallow), as determined by the Secretary.</text></subparagraph></paragraph>
<paragraph id="H1DD8091652FD4766902E6343C6C42063"><enum>(5)</enum><header>Number of base acres</header><text>Subject to paragraphs (4) and (7), the number of base acres allocated to an eligible farm shall—</text> <subparagraph id="H756B64A2C68D40F3A3F69DCBDB3AB5B0"><enum>(A)</enum><text>be equal to the difference obtained by subtracting the amount determined under subparagraph (C) of paragraph (4) from the amount determined under subparagraph (B) of that paragraph; and</text></subparagraph>
<subparagraph id="H6F3A31AD62BC4A898B0FC516BCE0A30D"><enum>(B)</enum><text>include unassigned crop base.</text></subparagraph></paragraph> <paragraph id="H918332E78A2E4708B2F789824A19F291"><enum>(6)</enum><header>Allocation of acres</header> <subparagraph id="H004CD46A7BE04CAB8CFE41ECDBF64DBE"><enum>(A)</enum><header>Allocation</header><text>The Secretary shall allocate the number of base acres under paragraph (5) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years.</text></subparagraph>
<subparagraph id="H93613D773A524615A07D2D452A23E391"><enum>(B)</enum><header>Allocation formula</header><text>The allocation of additional base acres for covered commodities shall be in proportion to the ratio of—</text> <clause id="HC2304A8252D944E2ADE90EEDE0EFA047"><enum>(i)</enum><text>the 5-year average of—</text>
<subclause id="HA64390738D60427295CB381EB33A9E7E"><enum>(I)</enum><text>the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and</text></subclause> <subclause id="HBFFB573A2D2B46E9A68C24B114E9DB21"><enum>(II)</enum><text>any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to</text></subclause></clause>
<clause id="HA291A8C2A2F144BA969EABCB0732D4B9"><enum>(ii)</enum><text>the 5-year average determined under paragraph (4)(B)(i).</text></clause></subparagraph> <subparagraph id="HC4565D92C8D541A8B6617AF888D236BB"><enum>(C)</enum><header>Inclusion of all 5 years in average</header><text>For the purpose of determining a 5-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted.</text></subparagraph>
<subparagraph id="H69938DE023D74CECB164944EEAE0109E"><enum>(D)</enum><header>Treatment of multiple planting or prevented planting</header><text>For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2019 through 2023 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the covered commodity to be used for that crop year in determining the 5-year average, but may not include both the initial covered commodity and the subsequent covered commodity.</text></subparagraph> <subparagraph id="HA866A4D0093D4BDBB7C77F063BAF1ACD"><enum>(E)</enum><header>Limitation</header><text>The allocation of additional base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres for the farm in excess of the total number of acres on the farm.</text></subparagraph></paragraph>
<paragraph id="H745FB4EAC97F440BA191A0699D451851"><enum>(7)</enum><header>Reduction by the Secretary</header><text>In carrying out this subsection, if the total number of eligible acres allocated to base acres across all farms in the United States under this subsection would exceed 30,000,000 acres, the Secretary shall apply an across-the-board, pro-rata reduction to the number of eligible acres to ensure the number of allocated base acres under this subsection is equal to 30,000,000 acres.</text></paragraph> <paragraph id="H6755C70D249A424584E8BFB06EEE8966"><enum>(8)</enum><header>Payment yield</header><text>Beginning with crop year 2026, for the purpose of making price loss coverage payments under section 1116, the Secretary shall establish payment yields to base acres allocated under this subsection equal to—</text>
<subparagraph id="H2B0B3A052DFA409BAD9180867746525E"><enum>(A)</enum><text>the payment yield established on the farm for the applicable covered commodity; and</text></subparagraph> <subparagraph id="HF6ABEC56AACA4A7683C428F4EBCB609D"><enum>(B)</enum><text>if no such payment yield for the applicable covered commodity exists, a payment yield—</text>
<clause id="H9FEA60B0908C40AFADAC8EADE6517D10"><enum>(i)</enum><text>equal to the average payment yield for the covered commodity for the county in which the farm is situated; or</text></clause> <clause id="H2706FA7A14D7423A8EFAD83E941DCE70"><enum>(ii)</enum><text>determined pursuant to section 1113(c).</text></clause></subparagraph></paragraph>
<paragraph id="H0DE568FEB4CA43DAA03E2E71FDD9BFB8"><enum>(9)</enum><header>Treatment of new owners</header><text>In the case of a farm for which the owner on the date of enactment of this subsection was not the owner for the 2019 through 2023 crop years, the Secretary shall use the planting history of the prior owner or owners of that farm for purposes of determining—</text> <subparagraph id="H05042C5931654D6A908D68FA84B3E0E4"><enum>(A)</enum><text>eligibility under paragraph (4);</text></subparagraph>
<subparagraph id="HB4A09EBB57214108B35597919435002A"><enum>(B)</enum><text>eligible acres under paragraph (5); and</text></subparagraph> <subparagraph id="HB7DA11D210FE4466975A0745029BDC7F"><enum>(C)</enum><text>the allocation of acres under paragraph (6).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HBCB48EBF9E74480BB619ABFE00F6004C"><enum>(c)</enum><header>Producer election</header><text display-inline="yes-display-inline">Section 1115 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9015">7 U.S.C. 9015</external-xref>) is amended—</text> <paragraph id="H0F666BAB12A34D219435DEDAB081205F"><enum>(1)</enum><text>in subsection (a), in the matter preceding paragraph (1) by striking <quote>2023</quote> and inserting <quote>2031</quote>; and</text></paragraph>
<paragraph id="HDEE37B8C8587449D92CBDA5E9BDA0E57"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H1AAB1057E3A44EB29135D915C2EA000D"><enum>(A)</enum><text>in the matter preceding paragraph (1), by striking <quote>2014 crop year or the 2019 crop year, as applicable</quote> and inserting <quote>2014 crop year, 2019 crop year, or 2026 crop year, as applicable</quote>;</text></subparagraph>
<subparagraph id="HC88C4880A0F04CF3AA77DAA2200AA57A"><enum>(B)</enum><text>in paragraph (1), by striking <quote>2014 crop year or the 2019 crop year, as applicable,</quote> and inserting <quote>2014 crop year, 2019 crop year, or 2026 crop year, as applicable,</quote>; and</text></subparagraph> <subparagraph id="HBC2AB1F30D4D45B282F4D11C5D327D0C"><enum>(C)</enum><text>in paragraph (2)—</text>
<clause id="H6774611AD9D94F8C8882FF83DCB9C809"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text></clause> <clause id="H2150332C6FB2488F839BFE7DE5DFC3A3"><enum>(ii)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text></clause>
<clause id="H502B8E978FA743D7AD733CD9986D357A"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HCBD737F15A3D4E9E8E58901A4B78BE8D"> <subparagraph id="H0692BF9DE06A4681A4A6AD60229C2E14"><enum>(C)</enum><text>the same coverage for each covered commodity on the farm for the 2026 through 2031 crop years as was applicable for the 2024 crop year.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph></subsection>
<subsection id="H2D649F11936C45A3BF20A5029FFD9D18"><enum>(d)</enum><header>Price loss coverage</header><text display-inline="yes-display-inline">Section 1116 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9016">7 U.S.C. 9016</external-xref>) is amended—</text> <paragraph id="HD7569E393CC548E299B32895B1243B6C"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(2), in the matter preceding subparagraph (A), by striking <quote>2023</quote> and inserting <quote>2031</quote>; </text></paragraph>
<paragraph id="H46278EAA1B8F4459A334311809F22BC8"><enum>(2)</enum><text>in subsection (c)(1)(B)—</text> <subparagraph id="H9EDFE525700843D7A136AD7217F9F8EC"><enum>(A)</enum><text>in the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">2023</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">2031</header-in-text></quote>; and</text></subparagraph>
<subparagraph id="H282A2D4ACA02425F9B47ECCF01E9F0DF"><enum>(B)</enum><text>in the matter preceding clause (i), by striking <quote>2023</quote> and inserting <quote>2031</quote>;</text></subparagraph></paragraph> <paragraph id="H50A76A2908CB433384CF10B3A36F92D8"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (d), by striking <quote>2025</quote> and inserting <quote>2031</quote>; and </text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H44D9FF2FC3DD44098E00BB532DB8DD05"><enum>(4)</enum><text>in subsection (g), by striking <quote>2012 through 2016</quote> each place it appears and inserting <quote>2017 through 2021</quote>.</text></paragraph></subsection> <subsection id="H71136341CA644BB780DD942231FA8162"><enum>(e)</enum><header>Agriculture risk coverage</header><text>Section 1117 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9017">7 U.S.C. 9017</external-xref>) is amended—</text>
<paragraph id="H48865EB07E594018A39096835DF7ED13" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text>in subsection (a), in the matter preceding paragraph (1), by striking <quote>2023</quote> and inserting <quote>2031</quote>;</text></paragraph> <paragraph id="HF4BF835B87E847D29F87C981A1C6A772"><enum>(2)</enum><text>in subsection (c)—</text>
<subparagraph id="H100817111BB44C209BADD4C3F6C0A4BC" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting <quote>for each of the 2014 through 2024 crop years and 90 percent of the benchmark revenue for each of the 2025 through 2031 crop years</quote> before the period at the end;</text></subparagraph> <subparagraph id="HAF27FD21830541C9867A9A19882CA163" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>by striking <quote>2023</quote> each place it appears and inserting <quote>2031</quote>; and</text></subparagraph>
<subparagraph id="H75730C2C6417497C91163EAD716F4E53" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text>in paragraph (4)(B), in the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">2023</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">2031</header-in-text></quote>;</text></subparagraph></paragraph> <paragraph id="H684CAC7A66104EC6A8B9BC85B215A452" display-inline="no-display-inline"><enum>(3)</enum><text>by amending subsection (d)(1)(B) to read as follows:</text>
<quoted-block style="OLC" id="HBEC88B060FB04C3DA5324E81EFCA6174">
<subparagraph id="H84B74D5C03134BC784E4A730F848FCEF"><enum>(B)</enum>
<clause id="H47F9A199898745AEB1607A15D7ABEF13" display-inline="yes-display-inline"><enum>(i)</enum><text>for each of the crop years 2014 through 2024, 10 percent of the benchmark revenue for the crop year applicable under subsection (c); and</text></clause> <clause id="HCDC0A1CAB8304B3E922B21E11843C3E8" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">for each of the crop years 2025<italic></italic> through 2031, 12.5 percent of the benchmark revenue for the crop year applicable under subsection (c).</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="H2EDE9418B7544AA78B45C97CFCC5F8A6"><enum>(4)</enum><text>in subsections (e), (g)(5), and (i)(5), by striking <quote>2023</quote> each place it appears and inserting <quote>2031</quote>. </text></paragraph></subsection> <subsection id="H5F9357F9CF0D4E24B2C48CCCD9BAB1F5"><enum>(f)</enum><header>Equitable treatment of certain entities</header> <paragraph id="HB6286227F78B468890518449939B980D"><enum>(1)</enum><header>In general</header><text>Section 1001 of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/7/1308">7 U.S.C. 1308</external-xref>) is amended—</text>
<subparagraph id="H444D6E2F569F45AA8BC70C089F145DC0" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)—</text> <clause id="H080E8A0801A240508E21B129E5267971" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">by redesignating paragraph (5) as paragraph (6); and</text></clause>
<clause id="HEF417F9E84FD4B3FB959A1AC3BE3A92A" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting after paragraph (4) the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H6F9091880FCF45B9AF129D358629701C"> <paragraph id="HE6C710FA73B74F02BD1DAAE9C446E33A"><enum>(5)</enum><header>Qualified pass-through entity</header><text>The term <term>qualified pass-through entity</term> means—</text>
<subparagraph id="H2ED4C535291348E8865B144F09B9D7A2"><enum>(A)</enum><text>a partnership (within the meaning of subchapter K of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986);</text></subparagraph> <subparagraph id="HD2563C7384564238B81F9EC63632F2AD"><enum>(B)</enum><text>an S corporation (as defined in section 1361 of that Code);</text></subparagraph>
<subparagraph id="HDC8F53AC621441D79789ACE3370BE2E0"><enum>(C)</enum><text>a limited liability company that does not affirmatively elect to be treated as a corporation; and</text></subparagraph> <subparagraph id="H53DEC74E6D8340A49B2EBBCE70E57BAB"><enum>(D)</enum><text>a joint venture or general partnership.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="H968A5B1CD023406B8D7ED19DB9C57985"><enum>(B)</enum><text>in subsections (b) and (c), by striking <quote>except a joint venture or general partnership</quote> each place it appears and inserting <quote>except a qualified pass-through entity</quote>; and</text></subparagraph> <subparagraph id="H22A91C8B8B4646C6B02AB3B951AE0483" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text>in subsection (d), by striking <quote>subtitle B</quote> and all that follows through the end and inserting <quote>title I of the Agricultural Act of 2014.</quote>.</text></subparagraph></paragraph>
<paragraph id="HC16E7CDA625047F882AA0ACCFE8A5A55"><enum>(2)</enum><header>Attribution of payments</header><text>Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/7/1308">7 U.S.C. 1308(e)(3)(B)(ii)</external-xref>) is amended—</text> <subparagraph id="H659C4FAE82704CE58AAE446820E6EDAE"><enum>(A)</enum><text>in the clause heading, by striking <quote><header-in-text style="OLC" level="clause">joint ventures and general partnerships</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="clause">qualified pass-through entities</header-in-text></quote>;</text></subparagraph>
<subparagraph id="H53A33D42AFA24F0D9F882C972E3BC310"><enum>(B)</enum><text>by striking <quote>a joint venture or a general partnership</quote> and inserting <quote>a qualified pass-through entity</quote>;</text></subparagraph> <subparagraph id="HB8DC198DDA0649DDABEBDAE7F07D0D3C"><enum>(C)</enum><text>by striking <quote>joint ventures and general partnerships</quote> and inserting <quote>qualified pass-through entities</quote>; and</text></subparagraph>
<subparagraph id="H6EEF894D3DC9446B9B334911D315D20B"><enum>(D)</enum><text>by striking <quote>the joint venture or general partnership</quote> and inserting <quote>the qualified pass-through entity</quote>.</text></subparagraph></paragraph> <paragraph id="HFE8E0A5C6B7B42E0B4DA40AC9DDD4BE2" commented="no"><enum>(3)</enum><header>Persons actively engaged in farming</header><text>Section 1001A(b)(2) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/7/1308-1">7 U.S.C. 1308–1(b)(2)</external-xref>) is amended—</text>
<subparagraph id="H70E95264E2F64B548DBDABDFDA9F463E" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraphs (A) and (B), by striking <quote>in a general partnership, a participant in a joint venture</quote> each place it appears and inserting <quote>a qualified pass-through entity</quote>; and</text></subparagraph> <subparagraph id="HAF367FA098A44347A99A0576FDA3939B" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking <quote>a general partnership, joint venture, or similar entity</quote> and inserting <quote>a qualified pass-through entity or a similar entity</quote>.</text></subparagraph></paragraph>
<paragraph id="H9B08C327295D4E93872F138E44853F12" commented="no"><enum>(4)</enum><header>Joint and several liability</header><text>Section 1001B(d) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/7/1308-2">7 U.S.C. 1308–2(d)</external-xref>) is amended by striking <quote>partnerships and joint ventures</quote> and inserting <quote>qualified pass-through entities</quote>.</text></paragraph> <paragraph id="H372616473FD54057B6D6CA8DBAC35E42"><enum>(5)</enum><header>Exclusion from AGI calculation</header><text>Section 1001D(d) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(d)) is amended by striking <quote>, general partnership, or joint venture</quote> each place it appears.</text></paragraph></subsection>
<subsection id="HBB54244ACE044B55BA778A779FBD5049" commented="no" display-inline="no-display-inline"><enum>(g)</enum><header>Payment limitations</header><text>Section 1001 of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/7/1308">7 U.S.C. 1308</external-xref>) is amended—</text> <paragraph id="H9697339C7D5743D089407C6CAD297964"><enum>(1)</enum><text>in subsection (b)—</text>
<subparagraph id="H2B2FDC47C62D42EB95E6E19AD93D27B3" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>The</quote> and inserting <quote>Subject to subsection (i), the</quote>; and </text></subparagraph> <subparagraph id="HAA80A72B541A4A8D8CE096C52BC5FCB0" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>$125,000</quote> and inserting <quote>$155,000</quote>;</text></subparagraph></paragraph>
<paragraph id="HE088EDEAE8394DED8A68A73B5915C7BD"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H884E6F9C695743ABAF5CDF9F7C899DE6" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>The</quote> and inserting <quote>Subject to subsection (i), the</quote>; and </text></subparagraph>
<subparagraph id="H24994F29F33E458E9C2AAD2F749BF253" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>$125,000</quote> and inserting <quote>$155,000</quote>; and</text></subparagraph></paragraph> <paragraph id="H09D04F2D7ECB44F699E6C670E5F3CF20"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H75B9ABB353BB4ABDB8F5BAFC37E5AA37">
<subsection id="H99730B521E224E16B191E73E0E05F181"><enum>(i)</enum><header>Adjustment</header><text>For the 2025 crop year and each crop year thereafter, the Secretary shall annually adjust the amounts described in subsections (b) and (c) for inflation based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H5C76D0FD6D7345339EE50A4EC6398497" commented="no" display-inline="no-display-inline"><enum>(h)</enum><header display-inline="yes-display-inline">Adjusted gross income limitation</header><text>Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended—</text>
<paragraph id="HB80D702E1DB7464BBC9970F8A32CC1C6"><enum>(1)</enum><text>in paragraph (1), by striking <quote>paragraph (3)</quote> and inserting <quote>paragraphs (3) and (4)</quote>; and</text></paragraph> <paragraph id="H549CD49C03F6444E997D95F976261AC5"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H42CD00C0C15C4CA5A0D6A14AC91BE456">
<paragraph id="HD88FB5E3909F4C719A9E1C7D365F4C46"><enum>(4)</enum><header>Exception for certain operations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3DDDD566957244E8A3A9EBD10E77BFDB"><enum>(A)</enum><header display-inline="yes-display-inline">Definitions</header><text>In this paragraph:</text> <clause id="H11F272EDE29C4C2D926BB1C4911C5B29"><enum>(i)</enum><header>Excepted payment or benefit</header><text>The term <term>excepted payment or benefit</term> means—</text>
<subclause id="H63C6DFE548894D65B263C2A44EC025B0"><enum>(I)</enum><text>a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9081">7 U.S.C. 9081 et seq.</external-xref>);</text></subclause> <subclause id="HE8D58FDFCEC943EEBBE0701C005EC65F"><enum>(II)</enum><text>a payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/7/7333">7 U.S.C. 7333</external-xref>); and</text></subclause>
<subclause id="H8CCA0372281C4FBFA1C3E599031EF793"><enum>(III)</enum><text>a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024.</text></subclause></clause> <clause commented="no" display-inline="no-display-inline" id="H5D29079C54F64E81A9DE97276150CB34"><enum>(ii)</enum><header>Farming, ranching, or silviculture activities</header><text display-inline="yes-display-inline">The term <term>farming, ranching, or silviculture activities</term> includes agritourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment by a person or legal entity that owns such equipment, and other agriculture-related activities, as determined by the Secretary.</text></clause></subparagraph>
<subparagraph id="H8866DBC7CDBC488B9A55D0227CE4E363"><enum>(B)</enum><header>Exception</header><text>In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H6296F79A02D94144BD7DBA8616EEA7D7" commented="no"><enum>(i)</enum><header>Marketing loans</header> <paragraph id="H8024C0C6C2C64C32BDB573562E92C861" commented="no" display-inline="no-display-inline"><enum>(1)</enum><header>Availability of nonrecourse marketing assistance loans for loan commodities</header><text display-inline="yes-display-inline">Section 1201(b)(1) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9031">7 U.S.C. 9031(b)(1)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></paragraph>
<paragraph id="HB3CF6A7F384145B18947B8CD54B11674" commented="no"><enum>(2)</enum><header>Loan rates for nonrecourse marketing assistance loans</header><text display-inline="yes-display-inline">Section 1202 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9032">7 U.S.C. 9032</external-xref>) is amended—</text> <subparagraph id="H5A6AAD467A6A44E2979D9DA4B81DE085"><enum>(A)</enum><text>in subsection (b)—</text>
<clause id="HA4C2FB3634734ED288D6F82EF3E6E468" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">in the subsection heading, by striking <quote><header-in-text style="OLC" level="subsection">2023</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="subsection">2025</header-in-text></quote>; and</text></clause> <clause id="HA02EA0EBCA1B4665BAC41C5B20CFD378"><enum>(ii)</enum><text>in the matter preceding paragraph (1), by striking <quote>2023</quote> and inserting <quote>2025</quote>;</text></clause></subparagraph>
<subparagraph id="H48956A968E504C7B8D8820A15290A672"><enum>(B)</enum><text>by redesignating subsections (c) and (d) as subsections (d) and (e), respectively;</text></subparagraph> <subparagraph id="HFE945B46EAA8443494B07C7748A98509"><enum>(C)</enum><text>by inserting after subsection (b) the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HA789679EE02947D9AD44A263B66ADFAF">
<subsection id="HB39C889E10414679B7C168BAD84306CE"><enum>(c)</enum><header>2026 through 2031 crop years</header><text>For purposes of each of the 2026 through 2031 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:</text> <paragraph id="HE7CA6EA2E0FE421FA88F9AE090DAD913"><enum>(1)</enum><text>In the case of wheat, $3.72 per bushel.</text></paragraph>
<paragraph id="H686604A4015C4965B7E9356C4783F777"><enum>(2)</enum><text>In the case of corn, $2.42 per bushel.</text></paragraph> <paragraph id="H86EBD3EF274E4E85A00F87F655AB8600"><enum>(3)</enum><text>In the case of grain sorghum, $2.42 per bushel.</text></paragraph>
<paragraph id="H268539C3971E40139CF94582EC7EC8D0"><enum>(4)</enum><text>In the case of barley, $2.75 per bushel.</text></paragraph> <paragraph id="H00EC26CE4F2F44D6A70305EEF0E373EF"><enum>(5)</enum><text>In the case of oats, $2.20 per bushel.</text></paragraph>
<paragraph id="H40F4AD8D30DC4EA882001B22EC25E33A"><enum>(6)</enum><text>In the case of upland cotton, $0.55 per pound.</text></paragraph> <paragraph id="H427B12624C094A62AC95543F4C54C316"><enum>(7)</enum><text>In the case of extra long staple cotton, $1.00 per pound.</text></paragraph>
<paragraph id="HAEFA10A1B5CF498EB79B391C9F28E49C"><enum>(8)</enum><text>In the case of long grain rice, $7.70 per hundredweight.</text></paragraph> <paragraph id="H7BDD2D316B8C423CB08DD23E548996A8"><enum>(9)</enum><text>In the case of medium grain rice, $7.70 per hundredweight.</text></paragraph>
<paragraph id="HCC95BCF89B4544EAAB7C72D5D189CEAC"><enum>(10)</enum><text>In the case of soybeans, $6.82 per bushel.</text></paragraph> <paragraph id="H48031A9461A94FC8A58F4D288A550530"><enum>(11)</enum><text>In the case of other oilseeds, $11.10 per hundredweight for each of the following kinds of oilseeds:</text>
<subparagraph id="H5F688CC4DAAB4113AE71199473252416"><enum>(A)</enum><text>Sunflower seed.</text></subparagraph> <subparagraph id="HB4F40D3EED27491189009724F8167EC2"><enum>(B)</enum><text>Rapeseed.</text></subparagraph>
<subparagraph id="HC24BD318320B49E188CCF6A24546CD03"><enum>(C)</enum><text>Canola.</text></subparagraph> <subparagraph id="HE19F33011BE4451FA74A5F5B8E5FD618"><enum>(D)</enum><text>Safflower.</text></subparagraph>
<subparagraph id="H2707BA17FDBD4A289849E2556B7837AE"><enum>(E)</enum><text>Flaxseed.</text></subparagraph> <subparagraph id="HED016E758E1645FEB0CB8FAA36965D10"><enum>(F)</enum><text>Mustard seed.</text></subparagraph>
<subparagraph id="HE3A30AA18D624F9A80C1A8B714723116"><enum>(G)</enum><text>Crambe.</text></subparagraph> <subparagraph id="HBD74E52C41284E388CF4573331492078"><enum>(H)</enum><text>Sesame seed.</text></subparagraph>
<subparagraph id="H8E20B013C93447B99E85D3FCFD8D93F0"><enum>(I)</enum><text>Other oilseeds designated by the Secretary.</text></subparagraph></paragraph> <paragraph id="H8BB0896506D84A29B14F91C8E1770844"><enum>(12)</enum><text>In the case of dry peas, $6.87 per hundredweight.</text></paragraph>
<paragraph id="H638568E35C1149D6BC7735FEAEEF71D8"><enum>(13)</enum><text>In the case of lentils, $14.30 per hundredweight.</text></paragraph> <paragraph id="HFB213B17B3B9457D85ABC2D580E2AC65"><enum>(14)</enum><text>In the case of small chickpeas, $11.00 per hundredweight.</text></paragraph>
<paragraph id="HCC2EFF884BE74FF4A8E3B31693ECDECB"><enum>(15)</enum><text>In the case of large chickpeas, $15.40 per hundredweight.</text></paragraph> <paragraph id="H18DD370F0D7640D58EB63C56E7197128"><enum>(16)</enum><text>In the case of graded wool, $1.60 per pound.</text></paragraph>
<paragraph id="HA89AD3BA1E6D4444AB0B36951212AFAD"><enum>(17)</enum><text>In the case of nongraded wool, $0.55 per pound.</text></paragraph> <paragraph id="H47C804896D7D442F91779368D242CF84"><enum>(18)</enum><text>In the case of mohair, $5.00 per pound.</text></paragraph>
<paragraph id="H79171014A4E844F79410F93EAAF0D447"><enum>(19)</enum><text>In the case of honey, $1.50 per pound.</text></paragraph> <paragraph id="HB1639687E9904E57B84C2F82A44E5032"><enum>(20)</enum><text>In the case of peanuts, $390 per ton.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H6FFD5E2901B0416D896E49089330165E"><enum>(D)</enum><text>in subsection (d) (as so redesignated), by striking <quote>(a)(11) and (b)(11)</quote> and inserting <quote>(a)(11), (b)(11), and (c)(11)</quote>; and</text></subparagraph> <subparagraph id="HD7D12B6A5CD449D8A2C6D67C2A0A1770"><enum>(E)</enum><text>by amending subsection (e) (as so redesignated) to read as follows: </text>
<quoted-block style="OLC" id="H2C2E709543664D4CA0F6345B65F510C1" display-inline="no-display-inline">
<subsection id="HA6067AE9DC1949A494B2EF9FD6991C64"><enum>(e)</enum><header>Special rule for seed cotton and corn</header>
<paragraph id="H99A53EF304C340C8BA6C036796728F87"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 1116(b)(2) and paragraphs (1)(B)(ii) and (2)(A)(ii)(II) of section 1117(b), the loan rate shall be deemed to equal—</text> <subparagraph id="HBF89F3CA65BC4A80A257F0BBD124234B"><enum>(A)</enum><text>for seed cotton, $0.30 per pound; and</text></subparagraph>
<subparagraph id="H486BA35AC44544BFA8C984CAF62412A1"><enum>(B)</enum><text>for corn, $3.30 per bushel.</text></subparagraph></paragraph> <paragraph id="H764409E93ACF45F6A78597ED1E7BD6E8"><enum>(2)</enum><header>Effect</header><text display-inline="yes-display-inline">Nothing in this subsection authorizes any nonrecourse marketing assistance loan under this subtitle for seed cotton.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H0B69EF0BB4994626935882022536EE9F" commented="no"><enum>(3)</enum><header>Payment of cotton storage costs</header><text display-inline="yes-display-inline">Section 1204(g) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9034">7 U.S.C. 9034(g)</external-xref>) is amended—</text> <subparagraph id="H6E02F12A6016423EA6529D484B367A30" commented="no"><enum>(A)</enum><text>by striking <quote>Effective</quote> and inserting the following:</text>
<quoted-block id="H61787E4CABE04859BE1B4292A7E8F8D1" style="OLC">
<paragraph id="H10B1E95F3FDC4AFFA2D4B02EFB009DF4" commented="no"><enum>(1)</enum><header>Crop years 2014 through 2025</header><text>Effective</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H0521BD2ECFE94AEB8137AEF3B2AD1D50" commented="no"><enum>(B)</enum><text>in paragraph (1) (as so designated), by striking <quote>2023</quote> and inserting <quote>2025</quote>; and </text></subparagraph>
<subparagraph id="H2D8C829A3E9248CA974250999F412789" commented="no"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block id="H5DDB4423BCC1452DBEFAE2E2E106A30F" display-inline="no-display-inline" style="OLC"> <paragraph id="H5A0A3CCD0ED04BC293D16D1C6603CC47" commented="no"><enum>(2)</enum><header>Payment of cotton storage costs</header><text>Effective for each of the 2026 through 2031 crop years, the Secretary shall make cotton storage payments for upland cotton and extra long staple cotton available in the same manner as the Secretary provided storage payments for the 2006 crop of upland cotton, except that the payment rate shall be equal to the lesser of—</text>
<subparagraph id="HE8D2D47EAD164F3997275FE9C8702816" commented="no"><enum>(A)</enum><text>the submitted tariff rate for the current marketing year; and</text></subparagraph> <subparagraph id="HB7FAA070E4624224966174264D295339" commented="no"><enum>(B)</enum><text>in the case of storage in—</text>
<clause id="H7E18623D8B2247509A0327A6C978CA4D" commented="no"><enum>(i)</enum><text>California or Arizona, a payment rate of $4.90; and</text></clause> <clause id="H36AC5199E23C464FB4608D164B95DCFA" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>any other State, a payment rate of $3.00.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H2101E2A2F25F4B4EB4C96B97FCFC977F" commented="no"><enum>(4)</enum><header>Loan deficiency payments</header>
<subparagraph id="H081C7E9CB8E6439585AB70F9603DF933" commented="no"><enum>(A)</enum><header>Continuation</header><text>Section 1205(a)(2)(B) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9035">7 U.S.C. 9035(a)(2)(B)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></subparagraph> <subparagraph id="HE9DB0096E8F94ADF8006F7DC03E29CD1" commented="no"><enum>(B)</enum><header>Payments in lieu of LDPs</header><text>Section 1206 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9036">7 U.S.C. 9036</external-xref>) is amended, in subsections (a) and (d), by striking <quote>2023</quote> each place it appears and inserting <quote>2031</quote>. </text></subparagraph></paragraph>
<paragraph id="HDDE0CBBE6F854454B9816AD23FCE3F80" commented="no" display-inline="no-display-inline"><enum>(5)</enum><header>Special competitive provisions for extra long staple cotton</header><text display-inline="yes-display-inline">Section 1208(a) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9038">7 U.S.C. 9038(a)</external-xref>) is amended, in the matter preceding paragraph (1), by striking <quote>2026</quote> and inserting <quote>2032</quote>.</text></paragraph> <paragraph id="HD5240897CFBF4852BDA33DDB52D518DB" commented="no" display-inline="no-display-inline"><enum>(6)</enum><header>Availability of recourse loans</header><text display-inline="yes-display-inline">Section 1209 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9039">7 U.S.C. 9039</external-xref>) is amended, in subsections (a)(2), (b), and (c), by striking <quote>2023</quote> each place it appears and inserting <quote>2031</quote>. </text></paragraph></subsection>
<subsection id="H3DD73BEB227749C98A85EFC10196D195"><enum>(j)</enum><header>Repayment of marketing loans</header><text>Section 1204 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9034">7 U.S.C. 9034</external-xref>) is amended—</text> <paragraph id="H54B9FAF288E240769AA958FD144159F2" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text>in subsection (b)—</text>
<subparagraph id="H4E2831E1619C46C8806C5E7B5A9BE009" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text>by redesignating paragraph (1) as subparagraph (A) and indenting appropriately;</text></subparagraph> <subparagraph id="H93ADA7939203497BB97279D218A6EBE5" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>in the matter preceding subparagraph (A) (as so redesignated), by striking <quote>The Secretary</quote> and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H97B8FBDB62274CC097ECAC5DD4149D3C">
<paragraph commented="no" display-inline="no-display-inline" id="H5E76BF409E0C41A1B49C3FCB27CFD079"><enum>(1)</enum><header>In general</header><text>The Secretary</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H1E7B2C8D82384CF8AB54B66B90263B96" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text>by striking paragraph (2) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HDEE0F9E6D96F4663ADA4480814DDDC72">
<subparagraph commented="no" display-inline="no-display-inline" id="HE04B3351A3BD4278A2CBA875D72C8FB4"><enum>(B)</enum>
<clause commented="no" display-inline="yes-display-inline" id="H3E8E42D22BBC4D7BAAC1DB30B8300849"><enum>(i)</enum><text>in the case of long grain rice and medium grain rice, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section; or</text></clause> <clause commented="no" display-inline="no-display-inline" id="H0DFE7C1F41084CAF8762745036D37B52" indent="up1"><enum>(ii)</enum><text>in the case of upland cotton, the lowest prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the day on which the producer repays the marketing assistance loan.</text></clause></subparagraph>
<paragraph commented="no" display-inline="no-display-inline" id="H14639667F3E740C4A8A70B71C323F8F8"><enum>(2)</enum><header>Refund for upland cotton</header><text display-inline="yes-display-inline">In the case of a repayment for a marketing assistance loan for upland cotton at a rate described in paragraph (1)(B)(ii), the Secretary shall provide to the producer a refund (if any) in an amount equal to the difference between the lowest prevailing world market price described in that paragraph and the repayment amount.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H42050CA8C51D441ABB44275E488DC6CC" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text>in subsection (c)—</text>
<subparagraph id="HF4820963A2A14C018F536B27016B5AAB" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">by striking the period at the end and inserting <quote>; and</quote>;</text></subparagraph> <subparagraph id="H0AC1E52DE8A04955BA669F234918B99D" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>by striking <quote>at the loan rate</quote> and inserting the following: </text>
<quoted-block style="OLC" display-inline="yes-display-inline" id="H0C765D2ED59C484DAB9689F5C12C5BEE"><text>at a rate that is the lesser of—</text> <paragraph commented="no" display-inline="no-display-inline" id="H3A325254A1764E0D90DB277A3CA4A7E0"><enum>(1)</enum><text>the loan rate</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HCCD323A890534C2DB544948C89AC48E3" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H4348DCDE03BC45ECA2B2D20BB9C504C2"> <paragraph commented="no" display-inline="no-display-inline" id="H7945FCF33CF8412385BF2C37A8D6CDDB"><enum>(2)</enum><text display-inline="yes-display-inline">the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H4D1210401B1E40A18B2D4458C4D63DFE" commented="no" display-inline="no-display-inline"><enum>(3)</enum><text>in subsection (d)—</text> <subparagraph id="H4E3A3E4ECF30468F8AD943ECB628BD82" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text>in paragraph (1), by striking <quote>and medium grain rice</quote> and inserting <quote>medium grain rice, and extra long staple cotton</quote>;</text></subparagraph>
<subparagraph id="HD6AC181D59D844FDB02F8F425FC767DA" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;</text></subparagraph> <subparagraph id="H534EA42169804E60ABF502F3414454C5" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text>in the matter preceding subparagraph (A) (as so redesignated), by striking <quote>For purposes</quote> and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HC53382E7139447F98E1DC0BEB5F3CEE6">
<paragraph commented="no" display-inline="no-display-inline" id="H0C80FA037E6940A39EE3BC84C7145D71"><enum>(1)</enum><header>In general</header><text>For purposes</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H7777B1B38996427783182298CFBE0B9A" commented="no" display-inline="no-display-inline"><enum>(D)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HCA5803E91F8C4568B89E7C0CC21386E6">
<paragraph commented="no" display-inline="no-display-inline" id="HFBD06797D20F41D9BE4E0AFB02B301F3"><enum>(2)</enum><header>Upland cotton</header><text>In the case of upland cotton, for any period when price quotations for Middling (M) 1<fraction>3/32</fraction>-inch cotton are available, the formula under paragraph (1)(A) shall be based on the average of the 3 lowest-priced growths that are quoted.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H5A41C55DA49E4FCF8296E7652A92E03B"><enum>(4)</enum><text>in subsection (e)—</text>
<subparagraph id="H879FE12FA5BA40E69A6229101423C0BC" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in the subsection heading, by inserting <quote><header-in-text style="OLC" level="subsection">extra long staple cotton,</header-in-text></quote> after <quote><header-in-text style="OLC" level="subsection">Upland cotton,</header-in-text></quote>;</text></subparagraph> <subparagraph id="HAA50640B51E1403F82FA250CA2AB9061" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>in paragraph (2)—</text>
<clause id="H6286EF4109634FC3B911B89AF2E601D8" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">Cotton</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Upland Cotton</header-in-text></quote>; and</text></clause> <clause id="H9EE1A909B0554717B7CEC25EB3C5F346" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>in subparagraph (B), in the matter preceding clause (i), by striking <quote>2024</quote> and inserting <quote>2032</quote>;</text></clause></subparagraph>
<subparagraph id="H414021293A214D58BD79D537C5B08E0A" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text>by redesignating paragraph (3) as paragraph (4); and</text></subparagraph> <subparagraph id="H1D462D75F26947EC9799238C3A7320FD" commented="no" display-inline="no-display-inline"><enum>(D)</enum><text>by inserting after paragraph (2) the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HB8CAF39C094D4E269992833284A9756B">
<paragraph id="H1A81A9E08CCE43E7A3BD06D768DDB9A4"><enum>(3)</enum><header>Extra long staple cotton</header><text>The prevailing world market price for extra long staple cotton determined under subsection (d)—</text> <subparagraph id="HC951EB8128B54BA3ADA066693A35CC63"><enum>(A)</enum><text>shall be adjusted to United States quality and location, with the adjustment to include the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and</text></subparagraph>
<subparagraph id="H2A126527BD394347A1549AF2E1F69C15"><enum>(B)</enum><text>may be further adjusted, during the period beginning on the date of enactment of this paragraph and ending on July 31, 2032, if the Secretary determines the adjustment is necessary—</text> <clause id="H050EE8A650D448CC86C503F0C75B21EF"><enum>(i)</enum><text>to minimize potential loan forfeitures;</text></clause>
<clause id="HFF78F5DD47634CA2AD62C55C33B3A020"><enum>(ii)</enum><text>to minimize the accumulation of stocks of extra long staple cotton by the Federal Government;</text></clause> <clause id="HE4E0B949355A40BD812466630F5D406D"><enum>(iii)</enum><text>to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively; and</text></clause>
<clause id="H87F46832871549618088C9FCD0FCAA42"><enum>(iv)</enum><text>to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if—</text> <subclause id="HF373BBCCFF794C74A151672212801C2E"><enum>(I)</enum><text>there are insufficient current-crop price quotations; and</text></subclause>
<subclause id="H8DD9226E3D2F4D9A9C053225D9F8E1D4"><enum>(II)</enum><text>the forward-crop price quotation is the lowest such quotation available.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection> <subsection id="H2A6058CF72A04DD08977942E8577CE0D"><enum>(k)</enum><header>Economic adjustment assistance for textile mills</header><text>Section 1207(c) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9037">7 U.S.C. 9037(c)</external-xref>) is amended by striking paragraph (2) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H81C816D8FC084C4F8092BA40162D7E50">
<paragraph id="H30F84D445B4740F08CA95F202B4046A1"><enum>(2)</enum><header>Value of assistance</header><text>The value of the assistance provided under paragraph (1) shall be—</text> <subparagraph id="HE328C99B06C8486089863F71C016DC7D"><enum>(A)</enum><text>for the period beginning on August 1, 2013, and ending on July 31, 2025, 3 cents per pound; and</text></subparagraph>
<subparagraph id="HF62310E032BF4C74A2FC46FE51506EF9"><enum>(B)</enum><text>beginning on August 1, 2025, 5 cents per pound.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H37A65B3988E44500910B3161F7FB7641" commented="no" display-inline="no-display-inline"><enum>(l)</enum><header>Sugar program updates</header> <paragraph id="HC9C9450014F948CCB6409858BBDA692E" commented="no"><enum>(1)</enum><header>Loan rate modifications</header><text display-inline="yes-display-inline">Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/7/7272">7 U.S.C. 7272</external-xref>) is amended—</text>
<subparagraph id="H48415FEDDD1E447D98E3CA29D3380549" commented="no"><enum>(A)</enum><text>in subsection (a)—</text> <clause id="HB6A32AD45C954276BD5822546B1D01BC" commented="no"><enum>(i)</enum><text>in paragraph (4), by striking <quote>and</quote> at the end;</text></clause>
<clause id="H4F9257A4B2DA421D8EBDA6CB13696ECD" commented="no"><enum>(ii)</enum><text>in paragraph (5), by striking <quote>2023 crop years.</quote> and inserting <quote>2024 crop years; and</quote>; and </text></clause> <clause id="H6549707A69BE46969DFD02EAB4D64FE8" commented="no"><enum>(iii)</enum><text>by adding at the end the following:</text>
<quoted-block id="H47FBA0B8BF2743C985B39F390676878E" style="OLC">
<paragraph id="H61FF3EE26EB8410B8AA33959322F42E2" commented="no"><enum>(6)</enum><text>24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="HD60D1FD0A22846A99ADC49CB682CC658" commented="no"><enum>(B)</enum><text>in subsection (b)—</text>
<clause id="HB0AB12AC0CC348DAA6BC9DD7D3A2B477" commented="no"><enum>(i)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end;</text></clause> <clause id="H10886C459F6249FBA121CE5134279787" commented="no"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>2023 crop years.</quote> and inserting <quote>2024 crop years; and</quote>; and </text></clause>
<clause id="H6456F9124BDE42F78184236BD06B03F3" commented="no"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block id="H75F0089EEA1641DEAF544944A3AF6993" style="OLC"> <paragraph id="H5D69E6B39BF14197BE26C1A508009588" commented="no"><enum>(3)</enum><text>a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="HCEDD2AB279934E1B9133F47C1F3BE0C0" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text>in subsection (i), by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></subparagraph></paragraph> <paragraph id="H9C4BF85FA3BE47FBA1914A2A059F97F8" commented="no"><enum>(2)</enum><header>Adjustments to Commodity Credit Corporation storage rates</header><text display-inline="yes-display-inline">Section 167 of the Federal Agriculture Improvement and Reform Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/7/7287">7 U.S.C. 7287</external-xref>) is amended—</text>
<subparagraph id="H21FFAC6AD7BD4A33A8A9125C845A990F" commented="no"><enum>(A)</enum><text>by striking subsection (a) and inserting the following:</text> <quoted-block style="OLC" id="H9824F3466D3B4C87AFCDAD88B927BE4F"> <subsection id="H194C6153F6484CF6AD25230CA7D452BB" commented="no"><enum>(a)</enum><header>In general</header><text>The Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than—</text>
<paragraph id="H8FE0B50EB4AC43608FFA2852418476AB" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of refined sugar, 34 cents per hundredweight per month; and</text></paragraph> <paragraph id="H6011025BDA2D48B2941826081403B7A8" commented="no"><enum>(2)</enum><text>in the case of raw cane sugar, 27 cents per hundredweight per month.</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H7A8E7650286445FC8B0658192620DEEE" commented="no"><enum>(B)</enum><text>in subsection (b)—</text> <clause id="H1DE2EFA32EA14052B5E5AE1F9D6D404E" commented="no"><enum>(i)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Subsequent</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Prior</header-in-text></quote>; and</text></clause>
<clause id="H950D7964313246F0AEEB3222FF194C9E" commented="no"><enum>(ii)</enum><text>by striking <quote>and subsequent</quote> and inserting <quote>through 2024</quote>. </text></clause></subparagraph></paragraph> <paragraph id="H98EC086896184251B41F464667883205" commented="no"><enum>(3)</enum><header>Modernizing beet sugar allotments</header> <subparagraph id="HE824EBAE88D24A5D957150554F93A703" commented="no"><enum>(A)</enum><header>Sugar estimates</header><text>Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/7/1359bb">7 U.S.C. 1359bb(a)(1)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></subparagraph>
<subparagraph id="H0BF133217D1D4D3884724A431ED38995" commented="no"><enum>(B)</enum><header>Allocation to processors</header><text display-inline="yes-display-inline">Section 359c(g)(2) of the Agricultural Adjustment Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/7/1359cc">7 U.S.C. 1359cc(g)(2)</external-xref>) is amended—</text> <clause id="H59CC40C38B90486EB32ADE4B1A35F6C3" commented="no"><enum>(i)</enum><text>by striking <quote>In the case</quote> and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HD1F0FDA7DB014212916261DBE70EF125">
<subparagraph commented="no" display-inline="no-display-inline" id="H5636AA0A50514BE3A55D7A9A092D722E"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), in the case</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="HAEADF7AE4C7B4B7BBF4428EC0B0E5F3F" commented="no"><enum>(ii)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="HCE8C59DCB6A942F9B477AC469551312F" display-inline="no-display-inline">
<subparagraph id="H23933CCCA8334C51894A93B561F24F47" commented="no"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">If the Secretary makes an upward adjustment under paragraph (1)(A), in adjusting allocations among beet sugar processors, the Secretary shall give priority to beet sugar processors with available sugar.</text></subparagraph><after-quoted-block>. </after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="HE2287AD4345C4A2C9D9F2332DC530007" commented="no"><enum>(C)</enum><header>Timing of reassignment</header><text display-inline="yes-display-inline">Section 359e(b)(2) of the Agricultural Adjustment Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/7/1359ee">7 U.S.C. 1359ee(b)(2)</external-xref>) is amended—</text>
<clause id="HE4A8FD9B6D53428DACC6100A38AEA0A7" commented="no"><enum>(i)</enum><text>by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and indenting appropriately;</text></clause> <clause id="H87A7968D76C645E6906455892EAA86FC" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>in the matter preceding clause (i) (as so redesignated), by striking <quote>If the Secretary determines that a sugar beet processor who has been allocated a share of the beet sugar allotment will be unable to market that allocation</quote> and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H604F18432C574F0782D93BF2C49C8CD8">
<subparagraph commented="no" display-inline="no-display-inline" id="H0E933FB9ECC14B499A1837C62D0132E9"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If the Secretary determines that a sugar beet processor who has been allocated a share of the beet sugar allotment for the crop year will be unable to market that allocation</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="HFFD1D5207B414D5783372ACBE86D4A1E" commented="no"><enum>(iii)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H3AA61EA4867E4F0EBD2187C2E6F9644F" display-inline="no-display-inline">
<subparagraph id="H303A98DB54DA4F2A99ABD12DF6B098EF" commented="no"><enum>(B)</enum><header>Timing</header><text display-inline="yes-display-inline">In carrying out subparagraph (A), the Secretary shall—</text> <clause id="H205B9BB0F43649B9B204DABF5BA657C8" commented="no"><enum>(i)</enum><text>make an initial determination following the publication of the World Agricultural Supply and Demand Estimates (in this subparagraph referred to as <quote>WASDE</quote>) approved by the World Agricultural Outlook Board for the month of January that is applicable to the crop year for which a determination under subparagraph (A) is made; and</text></clause>
<clause id="H1C3A65E28CCE44FFBCC0B8212F076681" commented="no"><enum>(ii)</enum><text>provide for an initial reassignment under subparagraph (A)(i) not later than 30 days after the date of the announcement of such WASDE.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="H7B8D0D666AC143F5865A1F43F7574864" commented="no"><enum>(4)</enum><header>Reallocations of tariff-rate quota shortfall</header><text display-inline="yes-display-inline">Section 359k of the Agricultural Adjustment Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/7/1359kk">7 U.S.C. 1359kk</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H7BFD12945FDA406591AFAD5E24671058">
<subsection id="H10C4227001D444B6BF3206FD238D9B35" commented="no"><enum>(c)</enum><header>Reallocation</header>
<paragraph id="H68DDC3B249F3483289EB0D9C5817266C" commented="no"><enum>(1)</enum><header>Initial reallocation</header><text display-inline="yes-display-inline">Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the Secretary shall—</text> <subparagraph id="HFA380412E5BC4BEDBB0D765BC66E2152" commented="no"><enum>(A)</enum><text>determine which countries do not intend to fulfill their allocation for the quota year; and</text></subparagraph>
<subparagraph id="H413ED97DAEBD4C9FA260F9D9DA97D087" commented="no"><enum>(B)</enum><text>reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable. </text></subparagraph></paragraph> <paragraph id="H548C079967A8497C8D28021CA3BAE656" commented="no"><enum>(2)</enum><header>Subsequent reallocation</header><text>Subject to paragraph (3), not later than March 1 of a quota year, the Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H537515AB6DB04D2BB1FB863E0C849E30"><enum>(3)</enum><header>Cessation of effectiveness</header><text display-inline="yes-display-inline">Paragraphs (1) and (2) shall cease to be in effect if—</text> <subparagraph id="H82A09918260344E3986A372FA8B73CBB" commented="no"><enum>(A)</enum><text>the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and </text></subparagraph>
<subparagraph id="H8C371002D9514202B9EB8E529A8A4228" commented="no"><enum>(B)</enum><text>no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (<external-xref legal-doc="usc" parsable-cite="usc/19/1671">19 U.S.C. 1671 et seq.</external-xref>) is in effect with respect to sugar from Mexico. </text></subparagraph></paragraph></subsection> <subsection id="HA5CCC0E75E3C4051A22AEB5ABE46B4D8" commented="no"><enum>(d)</enum><header>Refined sugar</header> <paragraph id="H1309172C796741848BB0EF2D290DAC0C" commented="no"><enum>(1)</enum><header>Definition of domestic sugar industry</header><text display-inline="yes-display-inline">In this subsection, the term <term>domestic sugar industry</term> means domestic—</text>
<subparagraph id="HE15B028F5FF847D5B270255AEB17FAC8" commented="no"><enum>(A)</enum><text>sugar beet producers and processors;</text></subparagraph> <subparagraph id="H55883F1F0A0D45B498E69BA3E311BA23" commented="no"><enum>(B)</enum><text>producers and processors of sugar cane; and</text></subparagraph>
<subparagraph id="HBD3D486BFECA4263A426C6E01EE52E7E" commented="no"><enum>(C)</enum><text>refiners of raw cane sugar.</text></subparagraph></paragraph> <paragraph id="H30387007167E4BEFA2668697E1ADD963" commented="no"><enum>(2)</enum><header>Study required</header> <subparagraph id="H733F734ED49A4CED842FF7EA46DEC14B" commented="no"><enum>(A)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this subsection, the Secretary shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate.</text></subparagraph>
<subparagraph id="H58455FDBE0B7410EB0E9EEEA91EDA682" commented="no"><enum>(B)</enum><header>Elements</header><text>In conducting the study under subparagraph (A), the Secretary shall examine the following:</text> <clause id="HB162C8C553184A60837B3EAE4E313A1E" commented="no"><enum>(i)</enum><text>The need for—</text>
<subclause id="H06A8B8FBC39D4ACFBDDAF0B7EE0C1308" commented="no"><enum>(I)</enum><text>defining <quote>refined sugar</quote> as having a minimum polarization of 99.8 degrees or higher;</text></subclause> <subclause id="H3BD251050D0649138D94F44A58547787" commented="no"><enum>(II)</enum><text>establishing a standard for color- or reflectance-based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis;</text></subclause>
<subclause id="H0F92775FD7FD42CA92A6727F3D5C9A87" commented="no"><enum>(III)</enum><text>prescribing specifications for packaging type for refined sugar;</text></subclause> <subclause id="H5D9394AD66B243578322599F4C327DC3" commented="no"><enum>(IV)</enum><text>prescribing specifications for transportation modes for refined sugar;</text></subclause>
<subclause id="H7B7FBF796E3840E184A5EB96F3AE0CFE" commented="no"><enum>(V)</enum><text>requiring affidavits or other evidence that sugar imported as refined sugar will not undergo further refining in the United States;</text></subclause> <subclause id="HA799536B70EF49B58FD7B834557169D1" commented="no"><enum>(VI)</enum><text>prescribing appropriate terms and conditions to avoid unlawful sugar imports; and</text></subclause>
<subclause id="H3A5422280C7846B6B854AD2B20E9B9F1" commented="no"><enum>(VII)</enum><text>establishing other definitions, terms and conditions, or other requirements.</text></subclause></clause> <clause id="H246EFDE8C5E646EABCEBA8DF188EC5C7" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">The potential impact of modifications described in each of subclauses (I) through (VII) of clause (i) on the domestic sugar industry.</text></clause>
<clause id="HEE4FB15893674592A9ECEB02595D5357" commented="no"><enum>(iii)</enum><text>Whether, based on the needs described in clause (i) and the impact described in clause (ii), the establishment of additional terms and conditions is appropriate.</text></clause></subparagraph> <subparagraph id="H23EDBC597B4F4A81BFBFCC24E00F8340" commented="no"><enum>(C)</enum><header>Consultation</header><text>In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry and users of refined sugar.</text></subparagraph>
<subparagraph id="H531F103AE9224528A52B8BA7E3D8D6E7" commented="no"><enum>(D)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A).</text></subparagraph></paragraph> <paragraph id="H73FA9AEFC0FB4C6A944AF624688B05E5" commented="no"><enum>(3)</enum><header>Establishment of additional terms and conditions permitted</header> <subparagraph id="H1DC50AA7CA204956B0E803B43A727457" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Based on the findings in the report submitted under paragraph (2)(D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate.</text></subparagraph>
<subparagraph id="H46566F86B5554F4B9FD264548CA6F478" commented="no"><enum>(B)</enum><header>Promulgation of regulations</header><text>The Secretary may issue regulations under subparagraph (A) if the regulations—</text> <clause id="H72DEF0FD67A842CA8ECD371C042482BD" commented="no"><enum>(i)</enum><text>do not have an adverse impact on the domestic sugar industry; and</text></clause>
<clause id="HCF67C28265454D168CBD2AF416CF32DB" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">are consistent with the requirements of this part, section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/7/7272">7 U.S.C. 7272</external-xref>), and obligations under international trade agreements that have been approved by Congress.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H992D1AF9F39F457197C3374D9ADF499A" commented="no"><enum>(5)</enum><header>Clarification of tariff-rate quota adjustments</header><text display-inline="yes-display-inline">Section 359k(b)(1) of the Agricultural Adjustment Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/7/1359kk">7 U.S.C. 1359kk(b)(1)</external-xref>) is amended, in the matter preceding subparagraph (A), by striking <quote>if there is an</quote> and inserting <quote>for the sole purpose of responding directly to an</quote></text></paragraph>
<paragraph id="HD3D199244CDD42F28710078835DAD169"><enum>(6)</enum><header>Period of effectiveness</header><text display-inline="yes-display-inline">Section 359l(a) of the Agricultural Adjustment Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/7/1359ll">7 U.S.C. 1359ll(a)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></paragraph></subsection> <subsection id="HB338E40ADD004EA0B01884FCFBC9D1D5"><enum>(m)</enum><header>Dairy policy updates</header> <paragraph id="H32EB03D8F03B4ABDBD7CAB42DDF66DFC"><enum>(1)</enum><header>Dairy margin coverage production history</header> <subparagraph id="H1047E22B1D2B49EA8124C81571A04AB2"><enum>(A)</enum><header>Definition</header><text>Section 1401(8) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9051">7 U.S.C. 9051(8)</external-xref>) is amended by striking <quote>when the participating dairy operation first registers to participate in dairy margin coverage</quote>.</text></subparagraph>
<subparagraph id="HE690D4E18EC44B83823CEB07A1E4DAD8"><enum>(B)</enum><header>Production history of participating dairy operations</header><text>Section 1405 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9055">7 U.S.C. 9055</external-xref>) is amended—</text> <clause id="HAF17879D436A48DCAAF17FE007A0AA5D"><enum>(i)</enum><text>by amending subsection (a) to read as follows:</text>
<quoted-block style="OLC" id="HEA55C133F21F44C687389618184D5FC7">
<subsection id="HD2A8D85DA4904BDEA51DA6805B5A3220"><enum>(a)</enum><header>Production history</header><text>Except as provided in subsection (b), the production history of a dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2021, 2022, or 2023 calendar years.</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="H62B164FCF6BB48AE8679D41C1AB07A1E"><enum>(ii)</enum><text>by amending subsection (b) to read as follows:</text>
<quoted-block style="OLC" id="HD4E54132E4ED492496900C37B98F0DE6" display-inline="no-display-inline">
<subsection id="H5F418A6BF44343109764FDD620A1885D"><enum>(b)</enum><header>Election by new dairy operations</header><text display-inline="yes-display-inline">In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation:</text> <paragraph id="HA0C7AC73C8494DF99CD05C7C04E7734D"><enum>(1)</enum><text display-inline="yes-display-inline">The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount. </text></paragraph>
<paragraph id="HF1AD958654F44201A81B7BA66A50D24A"><enum>(2)</enum><text display-inline="yes-display-inline">An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary. </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="HD0B301375ED3433C8D62DE6CDA88AC89"><enum>(2)</enum><header>Dairy margin coverage payments</header><text display-inline="yes-display-inline">Section 1406(a)(1)(C) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9056">7 U.S.C. 9056(a)(1)(C)</external-xref>) is amended by striking <quote>5,000,000</quote> and inserting <quote>6,000,000</quote> each place it appears. </text></paragraph>
<paragraph id="H60DF68D6F3B74098A5EE954939234DEB" display-inline="no-display-inline"><enum>(3)</enum><header>Premiums for dairy margins</header>
<subparagraph id="HFA5BE3DA7CD744B2A16B75B247604024"><enum>(A)</enum><header>Tier I</header><text>Section 1407(b) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9057">7 U.S.C. 9057(b)</external-xref>) is amended—</text> <clause id="H1A51AA6856A14BCC952520DCA4BB106D"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">5,000,000</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">6,000,000</header-in-text></quote>; and</text></clause>
<clause id="HA89B24547B0A4A97908A28F64C45E519"><enum>(ii)</enum><text>in paragraph (1), by striking <quote>5,000,000</quote> and inserting <quote>6,000,000</quote>.</text></clause></subparagraph> <subparagraph id="H86AFEB279DFF4D04A30D3EC008EAF40F"><enum>(B)</enum><header>Tier II</header><text>Section 1407(c) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9057">7 U.S.C. 9057(c)</external-xref>) is amended—</text>
<clause id="H0ECFB48AB7BA4895B3874E82142B63D1"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">5,000,000</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">6,000,000</header-in-text></quote>; and</text></clause> <clause id="HB128FF1D0AAD47B3AD5C7509D0C4636C"><enum>(ii)</enum><text>in paragraph (1), by striking <quote>5,000,000</quote> and inserting <quote>6,000,000</quote>.</text></clause></subparagraph>
<subparagraph id="HE6AD22059DEE4D488FCFF234CD37F228"><enum>(C)</enum><header>Premium discounts</header><text display-inline="yes-display-inline">Section 1407(g) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9057">7 U.S.C. 9057(g)</external-xref>) is amended—</text> <clause id="H1E1397744CDE430EBDDFCECEFFCEB8F5"><enum>(i)</enum><text>in paragraph (1)—</text>
<subclause id="H7CC7A9F68119407CB20EF3B037E0F25F"><enum>(I)</enum><text>by striking <quote>2019 through 2023</quote> and inserting <quote>2026 through 2031</quote>; and</text></subclause> <subclause id="HDB9549EC269E4ACA900B0D00F3CF4F2D"><enum>(II)</enum><text>by striking <quote>January 2019</quote> and inserting <quote>January 2026</quote>; and</text></subclause></clause>
<clause id="H3D4E3682E97144B5A1B8C863DE8BF374"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>2023</quote> each place it appears and inserting <quote>2031</quote>.</text></clause></subparagraph></paragraph> <paragraph id="H666071681BBA49118524979F4ADFCD68"><enum>(4)</enum><header>Duration</header><text display-inline="yes-display-inline">Section 1409 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9059">7 U.S.C. 9059</external-xref>) is amended by striking <quote>2025</quote> and inserting <quote>2031</quote>.</text></paragraph></subsection>
<subsection id="H0525D425DF764B2EA3DA7C67FF37D5CB"><enum>(n)</enum><header>Suspension of permanent price support authority</header><text display-inline="yes-display-inline">Section 1602 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9092">7 U.S.C. 9092</external-xref>) is amended by striking <quote>2023</quote> each place it appears and inserting <quote>2031</quote>.</text></subsection> <subsection id="HEA37E1D9FFED475F8B667CE9E86DE610"><enum>(o)</enum><header>Implementation</header><text>Section 1614(c) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9097">7 U.S.C. 9097(c)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H833FDF93EC28483CAF12F71266CE5784">
<paragraph id="HF7932DCAB291407AABEFF6D1C7E32C14"><enum>(5)</enum><header>Fiscal year 2025 reconciliation</header><text display-inline="yes-display-inline"><italic></italic>The Secretary shall make available to the Farm Service Agency to carry out section 10101 of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14</quote>, and the amendments made by that section, $50,000,000, to remain available until expended, of which—</text> <subparagraph id="H709F31C4912342B1A167E58756E6E013"><enum>(A)</enum><text>not less than $5,000,000 shall be used to carry out paragraphs (3) and (4) of subsection (b); </text></subparagraph>
<subparagraph id="H49230C59E9164EDA82C99A281E4D2D86"><enum>(B)</enum><text>$3,000,000 shall be used for activities described in paragraph (3)(A) of this subsection;</text></subparagraph> <subparagraph id="HF02E7A80EAF84A74B86047E9BA9EE031"><enum>(C)</enum><text>$3,000,000 shall be used for activities described in paragraph (3)(B) of this subsection; and</text></subparagraph>
<subparagraph id="HCE33202196D248618006D239F153AFB2"><enum>(D)</enum><text display-inline="yes-display-inline">$10,000,000 shall be used to—</text> <clause id="HBE564E1E27184BBCA8706C9F90B3D00F"><enum>(i)</enum><text>carry out mandatory surveys of dairy production cost and product yield information to be reported by manufacturers required to report under section 273 of the Agricultural Marketing Act of 1946 (<external-xref legal-doc="usc" parsable-cite="usc/7/1637b">7 U.S.C. 1637b</external-xref>), for all products processed in the same facility or facilities; and</text></clause>
<clause id="HE55F7C191DBE42A8B971EA5A983204AC"><enum>(ii)</enum><text>publish the results of such surveys biennially.</text></clause></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="H086C6FCE936245FB8E0D01D574848595" display-inline="no-display-inline"><enum>(p)</enum><header>Livestock safety net updates</header> <paragraph id="H2DF7235301D040A0BD30BCCF6A449F37" display-inline="no-display-inline"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1501(b) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9081">7 U.S.C. 9081(b)</external-xref>) is amended—</text>
<subparagraph id="HF07C20C003AC490D996DDF88F804EA1C"><enum>(A)</enum><text>by amending paragraph (2) to read as follows:</text> <quoted-block style="OLC" id="H9D0F12321E954AF2B2F2544D7A17BF5B" display-inline="no-display-inline"> <paragraph id="HDD5780D643724CBDA0966AA59D2C2502" commented="no"><enum>(2)</enum><header>Payment rates</header> <subparagraph id="H08994A2AD3EB4431971F050A9F143E3F" commented="no"><enum>(A)</enum><header>Losses due to predation</header><text display-inline="yes-display-inline">Indemnity payments to an eligible producer on a farm under paragraph (1)(A) shall be made at a rate of 100 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary.</text></subparagraph>
<subparagraph id="HD88A3753083848DC848E4546EC4A5994" commented="no"><enum>(B)</enum><header>Losses due to adverse weather or disease</header><text display-inline="yes-display-inline">Indemnity payments to an eligible producer on a farm under subparagraph (B) or (C) of paragraph (1) shall be made at a rate of 75 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary.</text></subparagraph> <subparagraph id="H73451ECB367548CDADB7EDAB63489B63"><enum>(C)</enum><header>Determination of market value</header><text display-inline="yes-display-inline">In determining the market value described in subparagraphs (A) and (B), the Secretary may consider the ability of eligible producers to document regional price premiums for affected livestock that exceed the national average market price for those livestock.</text></subparagraph>
<subparagraph id="HCEC3F63EC27C49A680024044857E646F" commented="no"><enum>(D)</enum><header>Applicable date defined</header><text>In this paragraph, the term <term>applicable date</term> means, with respect to livestock, as applicable—</text> <clause id="HDD739641244A44968494ECB34E0902C0" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the day before the date of death of the livestock; or</text></clause>
<clause id="HC59EED53204B47CA8B96D42E20C6E029" commented="no"><enum>(ii)</enum><text>the day before the date of the event that caused the harm to the livestock that resulted in a reduced sale price.</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H8763251C007A44C8B595B09EE3F71C38"><enum>(B)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H5EFEBBA937CE4A86AE2D381A5FFBB21D" display-inline="no-display-inline">
<paragraph id="HB5D8CDB57F13413887CE7C230C981BC8"><enum>(5)</enum><header>Additional payment for unborn livestock</header>
<subparagraph id="HB8115EC0B9144E9E95BF3576944A8F35"><enum>(A)</enum><header>In general</header><text>In the case of unborn livestock death losses incurred on or after January 1, 2024, the Secretary shall make an additional payment to eligible producers on farms that have incurred such losses in excess of the normal mortality due to a condition specified in paragraph (1).</text></subparagraph> <subparagraph id="H026DA0D7610440A188B4BFE84CD48301" commented="no"><enum>(B)</enum><header>Payment rate</header><text>Additional payments under subparagraph (A) shall be made at a rate—</text>
<clause id="HEC8D726B376D4771B15CF56027050A07"><enum>(i)</enum><text>determined by the Secretary; and</text></clause> <clause id="HF86CCDD698CC4F0597B3877D3294ACF8"><enum>(ii)</enum><text>less than or equal to 85 percent of the payment rate established with respect to the lowest weight class of the livestock, as determined by the Secretary, acting through the Administrator of the Farm Service Agency.</text></clause></subparagraph>
<subparagraph id="H88553C7BA1F447D2B303B9046C8076BE"><enum>(C)</enum><header>Payment amount</header><text>The amount of a payment to an eligible producer that has incurred unborn livestock death losses shall be equal to the payment rate determined under subparagraph (B) multiplied, in the case of livestock described in—</text> <clause id="H5E7DD2D402044618B268C7E547E207B3"><enum>(i)</enum><text>subparagraph (A), (B), or (F) of subsection (a)(4), by 1;</text></clause>
<clause id="HAE42E7CCD80749809D4270ACE22D2DC6"><enum>(ii)</enum><text>subparagraph (D) of such subsection, by 2; </text></clause> <clause id="H3A753D1153024823A32BB0442BFB03B3"><enum>(iii)</enum><text>subparagraph (E) of such subsection, by 12; and</text></clause>
<clause id="H94EDAA4339FE40388BD2C6E87754204E"><enum>(iv)</enum><text display-inline="yes-display-inline">subparagraph (G) of such subsection, by the average number of birthed animals (for one gestation cycle) for the species of each such livestock, as determined by the Secretary.</text></clause></subparagraph> <subparagraph id="HFA726FB9301544C99C8B6D304D85DDC4"><enum>(D)</enum><header>Unborn livestock death losses defined</header><text>In this paragraph, the term <term>unborn livestock death losses</term> means losses of any livestock described in subparagraph (A), (B), (D), (E), (F), or (G) of subsection (a)(4) that was gestating on the date of the death of the livestock.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H9DFC4631A8D74798AFC3F1C647CA5C69"><enum>(2)</enum><header>Livestock forage disaster program</header><text>Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9081">7 U.S.C. 9081(c)(3)(D)(ii)(I)</external-xref>) is amended—</text> <subparagraph id="H105D86AF0DB74A49B243C89F221D1245" commented="no"><enum>(A)</enum><text>by striking <quote>1 monthly payment</quote> and inserting <quote>2 monthly payments</quote>; and</text></subparagraph>
<subparagraph id="HAA862F8C96F94E4B8912E4989623061C" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>by striking <quote>county for at least 8 consecutive</quote> and inserting the following: </text> <quoted-block style="OLC" display-inline="yes-display-inline" id="H723D10E8EC3D495DB97753C61226C06A"><text>county for not less than—</text>
<item id="H2D47E0A23901405EAF02502DC78D94AD" commented="no"><enum>(aa)</enum><text>4 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B); or</text></item> <item commented="no" display-inline="no-display-inline" id="HE5CDE9B46A944DA389B9C41A6042BBFD"><enum>(bb)</enum><text display-inline="yes-display-inline">any of the 7 of the previous 8 consecutive</text></item><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HBBB11A47944B45D8B437BCC65B67384D"><enum>(3)</enum><header>Emergency assistance for livestock, honey bees, and farm-raised fish</header><text display-inline="yes-display-inline">Section 1501(d) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9081">7 U.S.C. 9081(d)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H915ADA6F42314EF79CA6C7DD944F3D7C"> <paragraph id="HC7E18246578A4DBF96E361CFA595F1DD" commented="no"><enum>(5)</enum><header>Assistance for losses due to bird depredation</header> <subparagraph commented="no" display-inline="no-display-inline" id="H732A0A3185BF4D14BE5984C787DD5CE6"><enum>(A)</enum><header>Payments</header><text>Eligible producers on a farm of farm-raised fish, including fish grown as food for human consumption, shall be eligible to receive payments under this subsection to aid in the reduction of losses due to piscivorous birds.</text></subparagraph>
<subparagraph id="H2C25E1AEB7194144BE3CFA2710E1B861" commented="no"><enum>(B)</enum><header>Payment rate</header>
<clause id="HBDCB16D7A34F4C2CB48444E9BC76D9DF" commented="no"><enum>(i)</enum><header>In general</header><text>The payment rate for payments under subparagraph (B) shall be determined by the Secretary, taking into account—</text> <subclause id="H8E6CB16D32584C79A337DA81782F1DDF" commented="no"><enum>(I)</enum><text>costs associated with the deterrence of piscivorous birds;</text></subclause>
<subclause id="H1E11E746841E4759B17630DDBF216CD3" commented="no"><enum>(II)</enum><text>the value of lost fish and revenue due to bird depredation; and</text></subclause> <subclause id="HF99AEE3AA6534E988CCDE1B99ED7777F" commented="no"><enum>(III)</enum><text>costs associated with disease loss from bird depredation.</text></subclause></clause>
<clause id="H2FC90CAEA8AB41059811CFB9B4383C7F" commented="no"><enum>(ii)</enum><header>Minimum rate</header><text>The payment rate for payments under subparagraph (B) shall be not less than $600 per acre of farm-raised fish.</text></clause></subparagraph> <subparagraph id="H7D38829B0B0D4D7AB99B672DA5EEA009" commented="no"><enum>(C)</enum><header>Payment amount</header><text>The amount of a payment under subparagraph (B) shall be the product obtained by multiplying—</text>
<clause id="H6C42FB8FC17A4ED584644E7007558330" commented="no"><enum>(i)</enum><text>the applicable payment rate under subparagraph (C); and</text></clause> <clause id="H1AD1A21670E348B78645FC87C986B56A" commented="no"><enum>(ii)</enum><text>85 percent of the total number of acres of farm-raised fish farms that the eligible producer has in production for the calendar year.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HE9C53DFEA7A3445CADE987A2F1B49CB1" commented="no" display-inline="no-display-inline"><enum>(4)</enum><header>Tree assistance program</header><text>Section 1501(e) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9081">7 U.S.C. 9081(e)</external-xref>) is amended—</text> <subparagraph id="HF9E15357B11C49F19D3B24E1E3BDAFEF" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2)(B), by striking <quote>15 percent (adjusted for normal mortality)</quote> and inserting <quote>normal mortality</quote>; and</text></subparagraph>
<subparagraph id="H46F97779DDD141D9833CB6C4B305427D" commented="no"><enum>(B)</enum><text>in paragraph (3)—</text> <clause id="H96E0FDA05035423991E0925D5EFD4513" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A)(i), by striking <quote>15 percent mortality (adjusted for normal mortality)</quote> and inserting <quote>normal mortality</quote>; and</text></clause>
<clause id="HCDBD538364C64340B7F5E3B80585DA2F" commented="no"><enum>(ii)</enum><text>in subparagraph (B)—</text> <subclause id="H77EBF4079DE9487A95267A3B82D7928B" commented="no"><enum>(I)</enum><text>by striking <quote>50</quote> and inserting <quote>65</quote>; and</text></subclause>
<subclause id="H764AC460075C4F2B85CFC095101B39DE" commented="no"><enum>(II)</enum><text>by striking <quote>15 percent damage or mortality (adjusted for normal tree damage and mortality)</quote> and inserting <quote>normal tree damage or mortality</quote>.</text></subclause></clause></subparagraph></paragraph></subsection> <subsection id="HAB812EE3617B4740AF0FDBC8FAC04494" display-inline="no-display-inline"><enum>(q)</enum><header>Emergency assistance for honeybees</header><text>In determining honeybee colony losses eligible for assistance under section 1501(d) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/9081">7 U.S.C. 9081(d)</external-xref>), the Secretary shall utilize a normal mortality rate of 15 percent.</text></subsection>
<subsection id="H1EFF46149FDB4324905C81822AD35757" display-inline="no-display-inline"><enum>(r)</enum><header>Beginning farmer and rancher benefit</header>
<paragraph id="H127FD10989E24DAEBAD0A884A528143B"><enum>(1)</enum><header>Definitions</header>
<subparagraph id="H2A0B94080B904883A058642729C06706"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Section 502(b) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1502">7 U.S.C. 1502(b)</external-xref>) is amended in paragraph (3), by striking <quote>5</quote> and inserting <quote>10</quote>.</text></subparagraph> <subparagraph id="H6C6D8872305442B89F59176BFB70EF6D"><enum>(B)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 522(c)(7) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1522">7 U.S.C. 1522(c)(7)</external-xref>) is amended by striking subparagraph (F).</text></subparagraph></paragraph>
<paragraph id="H39ABB589B795491FA787371285178634"><enum>(2)</enum><header>Increase in assistance</header><text display-inline="yes-display-inline">Section 508(e) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1508">7 U.S.C. 1508(e)</external-xref>) is amended by adding at the end the following paragraph:</text> <quoted-block style="OLC" id="HC7A6ED6DF626442D9CAA2304C66DCE9A" display-inline="no-display-inline"> <paragraph id="H71F80CFAE69049CEAAFD0B6147526529"><enum>(9)</enum><header>Additional support</header> <subparagraph id="H799F1C7DE7F14A30A8E8ACAF89AB71F9"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this subsection regarding payment of a portion of premiums, a beginning farmer or rancher shall receive premium assistance that is—</text>
<clause id="HCE2091FE7D434783851172AD90446233"><enum>(i)</enum><text>the number of percentage points specified in subparagraph (B) greater than the premium assistance that would otherwise be available under paragraphs (2) (except for subparagraph (A) of that paragraph), (5), (6), and (7) for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher; plus</text></clause> <clause id="H0FFEEC8B558348B5B02046446A3E48D1"><enum>(ii)</enum><text display-inline="yes-display-inline">any increase otherwise made available under this subsection.</text></clause></subparagraph>
<subparagraph id="HDBD056AE70ED45D1B546D45C565A081C"><enum>(B)</enum><header>Percentage points adjustments</header><text display-inline="yes-display-inline">The percentage points referred to in subparagraph (A)(i) are the following:</text> <clause id="H285B35E722154073A72B9082A5A1CBF5"><enum>(i)</enum><text display-inline="yes-display-inline">For each of the first and second reinsurance years that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 5 percentage points.</text></clause>
<clause id="H94B58A9771274AA1A79B703CD57FAC28"><enum>(ii)</enum><text>For the third reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 3 percentage points.</text></clause> <clause id="H5F1A4931D2DE4B81AC39BEFC8FA87150"><enum>(iii)</enum><text>For the fourth reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 1 percentage point.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H2E1B56F93EE04334B0BAC185EC6ED65C" commented="no" display-inline="no-display-inline"><enum>(s)</enum><header>Area-based crop insurance coverage and affordability</header>
<paragraph id="HF5F95461EEB04B3F83601A4DCCF61CBB"><enum>(1)</enum><header>Coverage level</header><text>Section 508(c)(4) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1508">7 U.S.C. 1508(c)(4)</external-xref>) is amended—</text> <subparagraph id="HBA29222BE7794799ABE0C7BF4E3C4D61"><enum>(A)</enum><text display-inline="yes-display-inline">by amending subparagraph (A)(ii) to read as follows:</text>
<quoted-block style="OLC" id="H1C3336195A8F4BCDAE0DD80B782D69B8" display-inline="no-display-inline">
<clause id="HA0E85E7BB9BF4BD292DF1D2C1E7C28BF"><enum>(ii)</enum><text display-inline="yes-display-inline">may be purchased at any level not to exceed—</text> <subclause id="H5D2BE54E164F49289EA89FFE40892400"><enum>(I)</enum><text>in the case of the individual yield or revenue coverage, 85 percent;</text></subclause>
<subclause id="H70F13D3033BD40E0AB21748B66B3589A"><enum>(II)</enum><text>in the case of individual yield or revenue coverage aggregated across multiple commodities, 90 percent; and</text></subclause> <subclause id="HB3FCA6980F1046FDBCCC4FFDF6C670E4"><enum>(III)</enum><text>in the case of area yield or revenue coverage (as determined by the Corporation), 95 percent.</text></subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HDFE897AB570A4FFABD8C6E1C4E18AEBE"><enum>(B)</enum><text>in subparagraph (C)—</text> <clause id="H680F815E58D84277A068CD08581A7F70"><enum>(i)</enum><text>in clause (ii), by striking <quote>14</quote> and inserting <quote>10</quote>; and</text></clause>
<clause id="HBA851A42A8CC4D9FB072C7DC793BF82A"><enum>(ii)</enum><text>in clause (iii)(I), by striking <quote>86</quote> and inserting <quote>90</quote>.</text></clause></subparagraph></paragraph> <paragraph id="H14AECE3924D240C483B9DD4FC224CBC7"><enum>(2)</enum><header>Premium cost share</header><text>Section 508(e)(2)(H)(i) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1508">7 U.S.C. 1508(e)(2)(H)(i)</external-xref>) is amended by striking <quote>65</quote> and inserting <quote>80</quote>.</text></paragraph></subsection>
<subsection id="H692582F55AA94945A3A2D15E8FA5788E"><enum>(t)</enum><header>Premium support</header><text>Section 508(e)(2) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1508">7 U.S.C. 1508(e)(2)</external-xref>) is amended—</text> <paragraph id="H7168902A6BD741639EE2890533847FAA"><enum>(1)</enum><text>in subparagraph (C)(i), by striking <quote>64</quote> and inserting <quote>69</quote>;</text></paragraph>
<paragraph id="HED7909CA02A046A5BE15E633D73C8676"><enum>(2)</enum><text>in subparagraph (D)(i), by striking <quote>59</quote> and inserting <quote>64</quote>;</text></paragraph> <paragraph id="HCBC20CCB2DF84B75BD55413A7F98EED1"><enum>(3)</enum><text>in subparagraph (E)(i), by striking <quote>55</quote> and inserting <quote>60</quote>;</text></paragraph>
<paragraph id="HA7CFCC5D942846139E55A77C2C2FF4BB"><enum>(4)</enum><text>in subparagraph (F)(i), by striking <quote>48</quote> and inserting <quote>51</quote>; and</text></paragraph> <paragraph id="H3C86583826B44C7C8AAAC5E4D0AFEDE5"><enum>(5)</enum><text>in subparagraph (G)(i), by striking <quote>38</quote> and inserting <quote>41</quote>.</text></paragraph></subsection>
<subsection id="H332DD31CA0334D44850921C7919E77FB"><enum>(u)</enum><header>Administrative and operating expense adjustments</header><text display-inline="yes-display-inline">Section 508(k) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1508">7 U.S.C. 1508(k)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H34320C94537C48EF9B2D27CC2BD14A6B"> <paragraph id="H996B02941F8741AAB314B681F38AFD00"><enum>(10)</enum><header>Additional expenses</header> <subparagraph id="H6FA20E528B364951A80B75FB0EB65F30"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Beginning with the 2026 reinsurance year and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts.</text></subparagraph>
<subparagraph id="H2FEB95C9484F43ACB443E397E09CD25B"><enum>(B)</enum><header>Payment amount</header><text>In the case of an eligible contract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium.</text></subparagraph> <subparagraph id="HB01E1CE23DD849CAAC64C402748A035A"><enum>(C)</enum><header>Definitions</header><text>In this paragraph:</text>
<clause id="H127CE9AEDB6648338065FFAB3C986094"><enum>(i)</enum><header>Eligible state</header><text>The term <term>eligible State</term> means a State—</text> <subclause id="H5BCF55E9F13C4413A329A5E888715B5B"><enum>(I)</enum><text>identified in State Group 2 or State Group 3 (as defined in the Standard Reinsurance Agreement for reinsurance year 2026); and</text></subclause>
<subclause id="HEEE296C1A07640CA8D69F5F3CD6BCEE3"><enum>(II)</enum><text>in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers.</text></subclause></clause> <clause id="H550CFEFF76794CD381F597610293A9BD"><enum>(ii)</enum><header>Eligible contracts</header><text>The term <term>eligible contract</term>—</text>
<subclause id="HD2F038D65FB24D8388298E20F2D36E39"><enum>(I)</enum><text>means a crop insurance contract entered into by an approved insurance provider in an eligible State; and</text></subclause> <subclause id="H8F354D973446407AB739D7B66F871E2E"><enum>(II)</enum><text>does not include a contract for—</text>
<item id="H8C373D78D6A9496AA88D381E35B812FC"><enum>(aa)</enum><text>catastrophic risk protection under subsection (b);</text></item> <item id="H8651B89A1FF44C918ED60A28FB518B1E"><enum>(bb)</enum><text>an area-based plan of insurance or similar plan of insurance, as determined by the Corporation; or</text></item>
<item id="HAD501E144F1C472A93CC84971F030705"><enum>(cc)</enum><text>a policy under which an approved insurance provider does not incur loss adjustment expenses, as determined by the Corporation.</text></item></subclause></clause></subparagraph></paragraph> <paragraph id="H487DA480CA2346DBB58915B63DE3ADD3"><enum>(11)</enum><header>Specialty crops</header> <subparagraph id="HE0790D9EB9CF4F878424DC729F8CD7F1"><enum>(A)</enum><header>Minimum reimbursement</header><text display-inline="yes-display-inline">Beginning with the 2026 reinsurance year and for each reinsurance year thereafter, the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of title I of the Specialty Crops Competitiveness Act of 2004 (<external-xref legal-doc="usc" parsable-cite="usc/7/1621">7 U.S.C. 1621</external-xref> note) shall be equal to or greater than the percent that is the greater of the following:</text>
<clause id="H3EEFDAC67B224072A34F6F3F6158C778"><enum>(i)</enum><text>17 percent of the premium used to define loss ratio.</text></clause> <clause id="H17AED0955F484774B39F1A75BE4491BE"><enum>(ii)</enum><text>The percent of the premium used to define loss ratio that is otherwise applicable for the reinsurance year under the terms of the Standard Reinsurance Agreement in effect for the reinsurance year.</text></clause></subparagraph>
<subparagraph id="HBBDEE634117C41129EDBD1275F4502BE"><enum>(B)</enum><header>Other contracts</header><text display-inline="yes-display-inline">In carrying out subparagraph (A), the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses with respect to contracts covering agricultural commodities that are not subject to such subparagraph.</text></subparagraph> <subparagraph id="H4B4DD337D57D4B0DA7EC05F91F384D39"><enum>(C)</enum><header>Administration</header><text display-inline="yes-display-inline">The requirements of this paragraph and the adjustments made pursuant to this paragraph shall not be considered a renegotiation under paragraph (8)(A).</text></subparagraph></paragraph>
<paragraph id="H4A292D9B46544473B21490500751E17F"><enum>(12)</enum><header>A&O inflation adjustment</header>
<subparagraph id="HC316BCC384B84F38A25AB6AA6DE82D0D"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), for the 2026 reinsurance year, and each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure included in Risk Management Agency Bulletin numbered MGR–10–007 and dated June 30, 2010.</text></subparagraph> <subparagraph id="H6C461FBCF5FD4A1E97EA47851299210A"><enum>(B)</enum><header>Special rule for 2026 reinsurance year</header><text>The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.</text></subparagraph>
<subparagraph id="H902160FA5261442FA3E5DBA70104598E"><enum>(C)</enum><header>Administration</header><text>An increase under subparagraph (A)—</text> <clause id="H86516FD0AF5941AEB71A7B67B4A7DDB8"><enum>(i)</enum><text>shall apply with respect to all contracts covering agricultural commodities that were subject to an increase during the period of the 2011 through 2015 reinsurance years under the enclosure referred to in that subparagraph; and</text></clause>
<clause id="H2315897373444193A8B69EE3F056ADF9"><enum>(ii)</enum><text>shall not be considered to be a renegotiation of the Standard Reinsurance Agreement for purposes of paragraph (8)(A).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H53E8318E1A6F437392DC56729E85611E"><enum>(v)</enum><header>Program compliance and integrity</header><text>Section 515(l)(2) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1515">7 U.S.C. 1515(l)(2)</external-xref>) is amended by striking <quote>than</quote> and all that follows through the period at the end and inserting the following:</text>
<quoted-block style="OLC" id="H7CC164BBCEE9401D868D34AE81BFB24B" display-inline="yes-display-inline"><text display-inline="yes-display-inline">than—</text> <subparagraph id="H615191007F7F4E84BF3BCF7A35E62011"><enum>(A)</enum><text display-inline="yes-display-inline">$4,000,000 for each of fiscal years 2009 through 2025; and</text></subparagraph>
<subparagraph id="H229C212B9CFE4775A8E7AF338FEAEA5C"><enum>(B)</enum><text>$6,000,000 for fiscal year 2026 and each subsequent fiscal year.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4C862E26505E4BACA7D66E8E7EB1CBE4" display-inline="no-display-inline"><enum>(w)</enum><header>Reviews, compliance, and integrity</header><text>Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1516">7 U.S.C. 1516(b)(2)(C)(i)</external-xref>) is amended by striking <quote>each fiscal year</quote> and inserting <quote>each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter</quote>.</text></subsection>
<subsection id="H49C1AE367F6149E68F8A5672894BC6CB" commented="no" display-inline="no-display-inline"><enum>(x)</enum><header>Poultry insurance pilot program</header><text>Section 523 of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1523">7 U.S.C. 1523</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H2D90CE5616984FFA807B706B65409892"> <subsection id="HEFA3057A513C4E14958796B808C0E90E"><enum>(j)</enum><header>Poultry insurance pilot program</header> <paragraph id="H127D7C05EB7140F889E5FCE1A181DC3E"><enum>(1)</enum><header>In general</header><text>Notwithstanding subsection (a)(2), the Corporation shall establish a pilot program under which contract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme weather-related risk resulting in increased utility costs (including costs of natural gas, propane, electricity, water, and other appropriate costs, as determined by the Corporation) associated with poultry production.</text></paragraph>
<paragraph id="HC0B3E6B952CE4E81BCE2A5FCF427363F"><enum>(2)</enum><header>Stakeholder engagement</header><text>The Corporation shall engage with poultry industry stakeholders in establishing the pilot program under paragraph (1).</text></paragraph> <paragraph id="HDDD077AA707243FF99D6AE567192B088" commented="no" display-inline="no-display-inline"><enum>(3)</enum><header display-inline="yes-display-inline">Location</header><text display-inline="yes-display-inline">The pilot program established under paragraph (1) shall be conducted in a sufficient number of counties to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers in the top poultry producing States, including Alabama, Arkansas, and Mississippi, as determined by the Corporation. </text></paragraph>
<paragraph id="H8DB9FF47484840DE853312F936240609"><enum>(4)</enum><header>Approval of policy or plan</header><text>Notwithstanding section 508(l), the Board shall approve a policy or plan of insurance based on the pilot program under paragraph (1)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H7259E4D432B24C648701451358671CE2"><enum>(A)</enum><text display-inline="yes-display-inline">in accordance with section 508(h); and</text></subparagraph>
<subparagraph id="H15D66D8AEB4C4179AAEBBF23B0B10C7D"><enum>(B)</enum><text>not later than 24 months after the date of enactment of this subsection.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HE2C08BE767804F939D1CF7ACD34A476F"><enum>10102.</enum><header>Conservation</header> <subsection id="H1352A1CDEA784500AEADD87C833878EE" commented="no"><enum>(a)</enum><header>Grassroots source water protection program</header><text>Section 1240O(b) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839bb-2">16 U.S.C. 3839bb–2(b)</external-xref>) is amended—</text>
<paragraph id="HF79A5451F16047F6934EED935C961249" commented="no"><enum>(1)</enum><text>in paragraph (1), by striking <quote>2023</quote> and inserting <quote>2031</quote>; and</text></paragraph> <paragraph id="H39E08CC81F6F4D3D9DD3C5E056066142" commented="no"><enum>(2)</enum><text>in paragraph (3)—</text>
<subparagraph id="H23305494F1E945229C673BCEC0B5AD32" commented="no"><enum>(A)</enum><text>in subparagraph (A), by striking the <quote>and</quote> at the end;</text></subparagraph> <subparagraph id="HF7AB9846F9184C14A73F346F9AE29E99" commented="no"><enum>(B)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph>
<subparagraph id="HBC762B998128476CA71B9B7A8D3EA629" commented="no"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H076A45E6CB4C46AC9F77F5D5BBB03191" display-inline="no-display-inline"> <subparagraph id="HEE620C928D5E496986387B5CAFE1FEC7" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">$1,000,000 beginning in fiscal year 2026, to remain available until expended.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="HD142E878D6D040AC91103E0C7C8F6938" commented="no"><enum>(b)</enum><header>Voluntary public access and habitat incentive program</header><text display-inline="yes-display-inline">Section 1240R(f)(1) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839bb-5">16 U.S.C. 3839bb–5(f)(1)</external-xref>) is amended—</text> <paragraph id="H8960406A57F145ADA68ACF160667A8C0" commented="no"><enum>(1)</enum><text>by striking the <quote>and</quote> after <quote>2023,</quote>; and</text></paragraph>
<paragraph id="HED79C5316516473CAA138F11C1BD75B0" commented="no"><enum>(2)</enum><text>by inserting <quote>, and $10,000,000 for each of fiscal years 2025 through 2031</quote> before the period at the end.</text></paragraph></subsection> <subsection id="H44F4A0233DCC4D03992391514A8EDF56" commented="no"><enum>(c)</enum><header>Feral swine eradication and control pilot program</header><text display-inline="yes-display-inline">Section 2408(g)(1) of the Agriculture Improvement Act of 2018 (<external-xref legal-doc="usc" parsable-cite="usc/7/8351">7 U.S.C. 8351</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/115/334">Public Law 115–334</external-xref>) is amended—</text>
<paragraph id="H0908FE50D1C94E93AA9BE6442101C085" commented="no"><enum>(1)</enum><text>by striking <quote>and</quote> and inserting a comma; and</text></paragraph> <paragraph id="H4D039B7729AE40208062E44CA608E402" commented="no"><enum>(2)</enum><text>by inserting <quote>, and $15,000,000 for each of fiscal years 2025 through 2031</quote> before the period at the end.</text></paragraph></subsection>
<subsection id="H8A729472975D47EBBB4AE6415B18691E"><enum>(d)</enum><header>Funding</header>
<paragraph id="H77235D4F3D1F4055A683C2C031DE97CF"><enum>(1)</enum><header>In general</header><text>Section 1241(a) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3841">16 U.S.C. 3841(a)</external-xref>) is amended—</text> <subparagraph id="H7545B20550CB4220893A92FFAC2406A8"><enum>(A)</enum><text>in paragraph (2), by striking subparagraphs (A) through (F) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HAF093EAA213F4B00B5F8460BD5C0B59E">
<subparagraph id="HA67610951CB24372992C0C6D78BD60DF"><enum>(A)</enum><text>$625,000,000 for fiscal year 2026;</text></subparagraph> <subparagraph id="HBB15E360651A4150A79E1225BE8169F2"><enum>(B)</enum><text>$650,000,000 for fiscal year 2027;</text></subparagraph>
<subparagraph id="H8A49858403D8490B848D17307C520986"><enum>(C)</enum><text>$675,000,000 for fiscal year 2028;</text></subparagraph> <subparagraph id="H2C401165DC944E9099CC8371A1E65461"><enum>(D)</enum><text>$700,000,000 for fiscal year 2029;</text></subparagraph>
<subparagraph id="HCA44F93BDD8346CBBC0015BDCC0062F1"><enum>(E)</enum><text>$700,000,000 for fiscal year 2030; and</text></subparagraph> <subparagraph id="H596AD87F746F46B9AF0C972A6AD13E75"><enum>(F)</enum><text>$700,000,000 for fiscal year 2031.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HF42AC65056544A248DC4D74354F5FF6F"><enum>(B)</enum><text>in paragraph (3)—</text> <clause id="H503977B005734FA2BF7FB77B3FF0F281"><enum>(i)</enum><text>in subparagraph (A), by striking clauses (i) through (v) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H1C9B1730BB6C44A9A29017CC56B8174D">
<clause id="HF0978E29E9D447489383AC329A82C4FA"><enum>(i)</enum><text>$2,655,000,000 for fiscal year 2026;</text></clause> <clause id="H6C7107FB80764B16BB27347D5116CE91"><enum>(ii)</enum><text>$2,855,000,000 for fiscal year 2027;</text></clause>
<clause id="H20EC599A610E405EB067AB593FB42641"><enum>(iii)</enum><text>$3,255,000,000 for fiscal year 2028;</text></clause> <clause id="H74DA40E032CA4544A491BA6180658A22"><enum>(iv)</enum><text>$3,255,000,000 for fiscal year 2029;</text></clause>
<clause id="H926712454A7F40F68E002AB2C9D62B2C"><enum>(v)</enum><text>$3,255,000,000 for fiscal year 2030; and</text></clause> <clause id="H18539725379141CA9B0BA696AEA21C38"><enum>(vi)</enum><text>$3,255,000,000 for fiscal year 2031; and</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause>
<clause id="HF7F47527FBF44D5487D1F06ADDB21523"><enum>(ii)</enum><text>in subparagraph (B), by striking clauses (i) through (v) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H9AD354751BB24430BB1A49B8FC48D326"> <clause id="H7A7E1F481C0441F2B09E698CB43128DE"><enum>(i)</enum><text>$1,300,000,000 for fiscal year 2026;</text></clause>
<clause id="HBE5874184124431FB3E8AA50E1D96853"><enum>(ii)</enum><text>$1,325,000,000 for fiscal year 2027;</text></clause> <clause id="H7BDF017EBEFE427692BCAC9874622EBB"><enum>(iii)</enum><text>$1,350,000,000 for fiscal year 2028;</text></clause>
<clause id="H87D21FA660FA4011985E499A9EFDBF94"><enum>(iv)</enum><text>$1,375,000,000 for fiscal year 2029;</text></clause> <clause id="HA40D68E6E5EC49C6A3379205A70FDB1E"><enum>(v)</enum><text>$1,375,000,000 for fiscal year 2030; and</text></clause>
<clause id="H4AFD7E260B224E6CA8F785F1837CB857"><enum>(vi)</enum><text>$1,375,000,000 for fiscal year 2031.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="HFA773B18991B41BA9A30BD5ED2FBE0D4"><enum>(2)</enum><header>Regional conservation partnership program</header><text>Section 1271D of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3871d">16 U.S.C. 3871d</external-xref>) is amended by striking subsection (a) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HD8A279D91FFE4473AAAACD8C8D856510">
<subsection id="HF5572DA1B56A4DFCA7FA89D25498FD84"><enum>(a)</enum><header>Availability of funding</header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out the program, to the maximum extent practicable—</text> <paragraph id="H073BB40809754F128F9586509DF38FA6"><enum>(1)</enum><text>$425,000,000 for fiscal year 2026;</text></paragraph>
<paragraph id="H4881053A982343FEB80C08358D6C5CB0"><enum>(2)</enum><text>$450,000,000 for fiscal year 2027;</text></paragraph> <paragraph id="HB3F5ADCD91EF40EAAE3967107FC7EFB9"><enum>(3)</enum><text>$450,000,000 for fiscal year 2028;</text></paragraph>
<paragraph id="H4F16B8C1D33D49CFA337CBB7F81E9435"><enum>(4)</enum><text>$450,000,000 for fiscal year 2029;</text></paragraph> <paragraph id="HE4258DD2E5674A47855FD4AA90F22CBB"><enum>(5)</enum><text>$450,000,000 for fiscal year 2030; and</text></paragraph>
<paragraph id="HFAD5E708EDC94E6BAD89027A15280E0E"><enum>(6)</enum><text>$450,000,000 for fiscal year 2031.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HA1D12E0D76EE461EB31DB3D99B544C14" display-inline="no-display-inline"><enum>(3)</enum><header>Watershed Protection and Flood Prevention</header><text>Section 15 of the Watershed Protection and Flood Prevention Act (<external-xref legal-doc="usc" parsable-cite="usc/16/1012a">16 U.S.C. 1012a</external-xref>) is amended—</text>
<subparagraph id="H853462982A9345A3BBD8D9137D404A41"><enum>(A)</enum><text>by striking <quote>$50,000,000 for fiscal year 2019</quote> and inserting <quote>$150,000,000 for fiscal year 2026</quote>; and</text></subparagraph> <subparagraph id="HCBF5313D8B3D48FBAC53096761DB35B0"><enum>(B)</enum><text>by inserting <quote>, to remain available until expended</quote> before the period at the end.</text></subparagraph></paragraph>
<paragraph id="H382076DD147A4FB6A570DA5B5BB45759"><enum>(4)</enum><header>Rescission</header><text>The unobligated balances of amounts appropriated by section 21001(a) of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (136 Stat. 2015) are rescinded. </text></paragraph></subsection></section> <section id="HA1B1E51C94A34B1CB47DE595DA5D8AB3" section-type="subsequent-section"><enum>10103.</enum><header>Supplemental Agricultural Trade Promotion program</header> <subsection id="HBEDFA83CBBD9462A84AE18FC935EF40A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall conduct a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for United States agricultural commodities.</text></subsection>
<subsection id="HAE964BFE419B4F90A33FFA87E3488A18"><enum>(b)</enum><header>Funding</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $285,000,000 for fiscal year 2027 and each fiscal year thereafter.</text></subsection></section> <section id="H6AE9935D82AE4CA4A5D264E7B1892496"><enum>10104.</enum><header>Research</header> <subsection id="HA45B66D2B1BD497FAFB405C48582B976"><enum>(a)</enum><header>Urban, indoor, and other emerging agricultural production research, education, and extension initiative</header><text>Section 1672E(d)(1)(B) of the Food, Agriculture, Conservation, and Trade Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/7/5925g">7 U.S.C. 5925g(d)(1)(B)</external-xref>) is amended by striking <quote>fiscal year 2024, to remain available until expended</quote> and inserting <quote>each of fiscal years 2024 through 2031</quote>.</text></subsection>
<subsection id="H7BAB73E06A8A45D18CEDFFA60C2A425C"><enum>(b)</enum><header>Foundation for food and agriculture research</header><text>Section 7601(g)(1)(A) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/5939">7 U.S.C. 5939(g)(1)(A)</external-xref>) is amended adding at the end the following:</text> <quoted-block style="OLC" id="H51B8431CFD914E3297CA9FBC491647AD" display-inline="no-display-inline"> <clause id="HFFF945489DD64524BECFD7032DB26A3D"><enum>(iv)</enum><header>Further funding</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the Foundation to carry out this section, to remain available until expended, not later than 30 days after the date of enactment of this clause, $37,000,000.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HDDB200B7879E4A4BB39B8F96BCB7B7F6" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Scholarships for students at 1890 Institutions</header><text>Section 1446 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/7/3222a">7 U.S.C. 3222a</external-xref>) is amended—</text> <paragraph id="HA0017D8226134BFFBB40D098E3B6D4CF"><enum>(1)</enum><text>in subsection (a)—</text>
<subparagraph id="HF31E43EB80194629831F7AA5AD452C60"><enum>(A)</enum><text>by striking paragraph (3); and</text></subparagraph> <subparagraph id="HB3DC3DE4E44744B0AA600E4EC7947CAA"><enum>(B)</enum><text>by redesignating paragraph (4) as paragraph (3); and </text></subparagraph></paragraph>
<paragraph id="H1FC00C83F31F490492C9FFCBEBC70B31"><enum>(2)</enum><text>in subsection (b), by amending paragraph (1) to read as follows:</text> <quoted-block style="OLC" id="HD32111DEF08F4AE09F22186B86BB303F" display-inline="no-display-inline"> <paragraph id="H5F6A0BF3E6CE4192966DF0EE1C06F496"><enum>(1)</enum><header>Mandatory funding</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $60,000,000 for fiscal year 2026, to remain available until expended.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H5D23092844AC448DA4737B005B19A93C" display-inline="no-display-inline"><enum>(d)</enum><header>Assistive technology program for farmers with disabilities</header><text>Section 1680(c) of the Food, Agriculture, Conservation, and Trade Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/7/5933">7 U.S.C. 5933(c)</external-xref>) is amended—</text> <paragraph id="H40E9F6CDA7BC4C3691F298C37893C26D" display-inline="no-display-inline"><enum>(1)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Authorization of Appropriations</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Funding</header-in-text></quote>;</text></paragraph>
<paragraph id="H240E9631238A4693907A235177724F81"><enum>(2)</enum><text>by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and</text></paragraph> <paragraph id="HBB5154E6B3654A54B76CBB707ADCCFE2"><enum>(3)</enum><text>by inserting before paragraph (2), as so redesignated, the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H16CC24987F684C01BFEDED29B1E548EF">
<paragraph id="HF73AFEFA5D6D4562AF840CFB20C2AFCA"><enum>(1)</enum><header>Mandatory funding</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $8,000,000, to remain available until expended.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H2F26E1B402C345998EFC99EB7D2F865A"><enum>(4)</enum><text>in paragraph (2), as so redesignated—</text>
<subparagraph id="HBFF4ECCF919148AC8651ADC27CF9AF11"><enum>(A)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">In general</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Authorization of appropriations</header-in-text></quote>; and</text></subparagraph> <subparagraph id="H09A90873F3DA44ACB518E4344E2269EF"><enum>(B)</enum><text>by striking <quote>Subject to paragraph (2)</quote> and inserting <quote>Subject to paragraph (3)</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H0F125667663943738A32D59BAFA1E239" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Specialty crop research initiative</header><text>Section 412(k)(1)(B) of the Agricultural Research, Extension, and Education Reform Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/7/7632">7 U.S.C. 7632(k)(1)(B)</external-xref>) is amended by striking <quote>section $80,000,000 for fiscal year 2014</quote> and inserting the following: </text> <quoted-block style="OLC" id="H9A8EAD22DEEA4A13B3B1C79C045A121A" display-inline="yes-display-inline"><text display-inline="yes-display-inline">section—</text>
<clause id="H6E1A28841E194B61BD47EEF39A869F7E"><enum>(i)</enum><text display-inline="yes-display-inline">$80,000,000 for each of fiscal years 2014 through 2025; and</text></clause> <clause id="HD743D62408304DFCB31CC4E4F8A99CAB"><enum>(ii)</enum><text display-inline="yes-display-inline">$175,000,000 for fiscal year 2026</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA0AA2D99632845D6A14BFEFB12CA6520" commented="no" display-inline="no-display-inline"><enum>(f)</enum><header>Research Facilities Act</header><text>Section 6 of the Research Facilities Act (<external-xref legal-doc="usc" parsable-cite="usc/7/390d">7 U.S.C. 390d</external-xref>) is amended—</text> <paragraph id="HCB3415944E004D5C980839BE2FE24F4D"><enum>(1)</enum><text>in the section heading by striking <quote><header-in-text level="section" style="OLC">Authorization of appropriations</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">Funding</header-in-text></quote>; and</text></paragraph>
<paragraph id="H3FDD09D8DD2F4053BACE64DE63D6DCB0" commented="no"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="HB0D064CB8BFD4DD487755F5D2A674685"><enum>(A)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC"><enum-in-header>(a) </enum-in-header>In general.—</header-in-text>Subject to</quote> and inserting the following: </text>
<quoted-block style="OLC" id="HFA588F43D3AE41DBA6CDCCA30AF273C6" display-inline="no-display-inline">
<subsection id="H8790BBA02B4A4A4E88D4AC8D901C8D58" commented="no"><enum>(a)</enum><header>In general</header>
<paragraph id="HC4D02C39853D4781B78FA7D329CE2B7E" commented="no"><enum>(1)</enum><header>Authorization of appropriations</header><text>Subject to</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H591BEBAD36FB472C8EC7DF70936835A4"><enum>(B)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" id="H418B74FFFC974051BF60031C7EA0AA4F" display-inline="no-display-inline">
<paragraph id="H2EA51DC2EF874F7BB9194BD1BB9BAEBF"><enum>(2)</enum><header>Mandatory funding</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out the competitive grant program under section 4, $125,000,000 for each fiscal year beginning with fiscal year 2026.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection></section> <section id="HB64690F4F7E74D4C90421DD81B3FC950" section-type="subsequent-section" display-inline="no-display-inline"><enum>10105.</enum><header>Secure rural schools; forestry</header> <subsection id="HF06FBFBCF2BB47BDBF2E134906940618" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>Extension of certain provisions of Secure Rural Schools and Community Self-Determination Act of 2000</header> <paragraph id="H7253C4D86614445B9943203B8301C87B" commented="no" display-inline="no-display-inline"><enum>(1)</enum><header> Secure payments for States and counties containing Federal land</header> <subparagraph id="H730ADE0EC8454553AC6875B6C3222FF7" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header>Secure payments</header><text display-inline="yes-display-inline">Section 101 of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7111">16 U.S.C. 7111</external-xref>) is amended—</text>
<clause id="HCDDE4C26FE5242B2ADA2EA8D287341DD" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">in subsections (a) and (b), by striking <quote>2023</quote> each place it appears and inserting <quote>2026</quote>; and</text></clause> <clause id="H12A86C641840481585509589523670E0" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HB2765B89ADBA4493942E766820CAC0FB">
<subsection commented="no" display-inline="no-display-inline" id="HC2C73A268F3648F9879FA48284C58162"><enum>(e)</enum><header display-inline="yes-display-inline">Special rule for fiscal year 2024 payments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0BD0AA272E4A4FAA89BE14E396DF1950"><enum>(1)</enum><header>State payment</header><text>If an eligible county in a State that will receive a share of the State payment for fiscal year 2024 has already received, or will receive, a share of the 25-percent payment for fiscal year 2024 distributed to the State before the date of enactment of this subsection—</text> <subparagraph id="H0474E447A92C4A46863AAA1F7E8A194F"><enum>(A)</enum><text display-inline="yes-display-inline">if the amount of the State payment exceeds the amount of the 25-percent payment, the amount of the State payment shall be reduced by the amount of the share of the eligible county of the 25-percent payment; or</text></subparagraph>
<subparagraph id="H791EA57F4E134D7AB496324A09BD8AFD"><enum>(B)</enum><text>if the amount of the State payment is less than or equal to the amount of the 25-percent payment, the eligible county—</text> <clause id="H9116AC198F6B45C096C64379B14B6376"><enum>(i)</enum><text>may retain the amount of the share of the eligible county of the 25-percent payment; and</text></clause>
<clause id="H466B7B00F75F48D68D5348A159A9D3A1"><enum>(ii)</enum><text>if so retained, such amount shall be treated as if it were received by the county as a State payment for purposes of this Act.</text></clause></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H556599C4AC3A4D5AA86603548CB8BAF8"><enum>(2)</enum><header>County payment</header><text>If an eligible county that will receive a county payment for fiscal year 2024 has already received a 50-percent payment for fiscal year 2024—</text>
<subparagraph id="H65B5EAC7BC2D4229A55296F6E13B0D7E"><enum>(A)</enum><text>if the amount of the county payment exceeds the amount of the 50-percent payment, the amount of the county payment shall be reduced by the amount of the 50-percent payment; or</text></subparagraph> <subparagraph id="H0AE45A7D113643CDB6BE3528ABBA2446"><enum>(B)</enum><text>if the amount of the county payment is less than or equal to the amount of the 50-percent payment, the eligible county—</text>
<clause id="H1C5048BA74DF478E9492C14F74BAF9EB"><enum>(i)</enum><text>may retain the amount of the 50-percent payment; and</text></clause> <clause id="H4AF4617B80B24D3CBA5316AA807769B7"><enum>(ii)</enum><text>if so retained, such amount shall be treated as if it were received as a county payment for purposes of this Act.</text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HDAD3966FEC794C78A8E0C67C1DF4729A"><enum>(3)</enum><header>Timely payment</header><text>Not later than 90 days after the date of enactment of this subsection, the Secretary of the Treasury shall make all payments under this title for fiscal year 2024.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="H41CC0FD99142447B8FA8E67B0C9505F2" commented="no" display-inline="no-display-inline"><enum>(B)</enum><header>Distribution of payments to eligible counties</header><text>Section 103(d)(2) of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7113">16 U.S.C. 7113(d)(2)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2026</quote>.</text></subparagraph></paragraph>
<paragraph id="H6FBCF33900EA404787013F2796887677" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Payments to States and counties</header><text>Section 102 of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7112">16 U.S.C. 7112</external-xref>) is amended—</text> <subparagraph id="H1700A4AB754646A4BF348D04847F2BB1" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<clause id="H5FC3A5F836034D918D38DCB073795933" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (1), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H3271F1A20C1641B092F5DDFC338AF366"> <subparagraph commented="no" display-inline="no-display-inline" id="H2815402B5B854265A8108DE913952ED2"><enum>(E)</enum><header>Payments for each of fiscal years 2024 and 2025</header><text>The election otherwise required by subparagraph (A) shall not apply for each of fiscal years 2024 and 2025.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause>
<clause id="H44755DF802E54262A9D5699C6EB43AEE" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>in paragraph (2), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HC3B3FEEC8C424B3793B3E52BBE1902DB"> <subparagraph commented="no" display-inline="no-display-inline" id="HFF18D59C1DB14FDCAAF2360875E26E17"><enum>(C)</enum><header>Fiscal years 2024 and 2025</header><text>The election described in paragraph (1)(A) applicable to a county in fiscal year 2023 shall be effective for each of fiscal years 2024 and 2025.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="H9D1FC7CF021D491292BF957A5DF7442A" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>in subsection (d)—</text> <clause id="HE36D93F068F843248F0B1DB498BDFD4A" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (1), by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HBC911774C57D4F1E9AADD776D87BBF03">
<subparagraph commented="no" display-inline="no-display-inline" id="H512C74CB9567485481DCC2472D6A1384"><enum>(G)</enum><header>Payments for each of fiscal years 2024 and 2025</header><text>The election made by an eligible county under subparagraph (B), (C), or (D) for fiscal year 2023, or deemed to be made by the county under paragraph (3)(B) for that fiscal year, shall be effective for each of fiscal years 2024 and 2025.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="HAABB48549B8C4260BBE9381189CF9F84" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>in paragraph (3), by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H96E42FF8723B4E318F2E78A92D4B312B">
<subparagraph commented="no" display-inline="no-display-inline" id="H32C7915F815F4DBAADA1121D074BAC86"><enum>(E)</enum><header>Payments for each of fiscal years 2024 and 2025</header><text>This paragraph does not apply for each of fiscal years 2024 and 2025.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="H0772AC4CE401494087424DB980ED60BC" commented="no" display-inline="no-display-inline"><enum>(3)</enum><header>Extension of authority to conduct special projects on Federal land</header> <subparagraph id="H937F918C7D0741A1A52C8B0321BA8258" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header>Committee on composition waiver authority</header><text display-inline="yes-display-inline">Section 205(d)(6)(C) of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7125">16 U.S.C. 7125(d)(6)(C)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2026</quote>.</text></subparagraph>
<subparagraph id="H25C9BB92261B46F5B0AF5CBB1F4AA64B"><enum>(B)</enum><header>Extension of authority</header><text>Section 208 of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7128">16 U.S.C. 7128</external-xref>) is amended—</text> <clause id="H0C70CD42D2AE4172848BBE3242012B55" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>2025</quote> and inserting <quote>2028</quote>; and</text></clause>
<clause id="HC9DD1A97348E4E429851BD76D1B11B53" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text display-inline="yes-display-inline">in subsection (b), by striking <quote>2026</quote> and inserting <quote>2029</quote>.</text></clause></subparagraph></paragraph> <paragraph id="H84369CBB0B5343FAB033F63FC9078F28" commented="no" display-inline="no-display-inline"><enum>(4)</enum><header>Extension of Authority to expend county funds</header><text display-inline="yes-display-inline">Section 305 of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7144">16 U.S.C. 7144</external-xref>) is amended—</text>
<subparagraph id="H2E9221519A0E4E70AB9F457E0EE3F706" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>2025</quote> and inserting <quote>2028</quote>; and</text></subparagraph> <subparagraph id="HEF498F435D9C4848974FE6ACB213CE43" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (b), by striking <quote>2026</quote> and inserting <quote>2029</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H180F315B034947E192A3586C649BEE04" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header>Resource advisory committee pilot program extension</header><text>Section 205(g) of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7125">16 U.S.C. 7125(g)</external-xref>) is amended—</text> <paragraph id="H0125DD4C74714C2C8BF741F88967EBEC" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking <quote>2023</quote> and inserting <quote>2026</quote>; and</text></paragraph>
<paragraph id="H233B2A21E8D549EDA8292F93FE5E991B" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (6).</text></paragraph></subsection> <subsection id="H0E9D8F32414548739425B79417C7F307" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Technical corrections</header> <paragraph id="H055CCCC3A25943D186596CEDEA603736" commented="no" display-inline="no-display-inline"><enum>(1)</enum><header>Resource advisory committees</header><text>Section 205 of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7125">16 U.S.C. 7125</external-xref>) is amended—</text>
<subparagraph id="H40BEDC8AC9EA4E7F89A2E03C6F2DDBFB" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (c)—</text> <clause id="H313E055A6FF74FC09905CC810A626ABF" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>concerned,</quote> and inserting <quote>concerned</quote>; and</text></clause>
<clause id="H51C6B52BC13541C497F14B67658F3E8E" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking <quote>the date of the enactment of this Act</quote> and inserting <quote>October 3, 2008</quote>; and</text></clause></subparagraph> <subparagraph id="HAE4E3FF5999D454AA517AC44BE2C8E79" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (d)(4), by striking <quote>to extent</quote> and inserting <quote>to the extent</quote>.</text></subparagraph></paragraph>
<paragraph id="H2CCBF6AF164647AC898C629D2C32AC0E"><enum>(2)</enum><header>Use of project funds</header><text>Section 206(b)(2) of the Secure Rural Schools and Community Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/7126">16 U.S.C. 7126(b)(2)</external-xref>) is amended by striking <quote>concerned,</quote> and inserting <quote>concerned</quote>.</text></paragraph></subsection> <subsection id="H1596F8C030F64BB5B787543048B1CB7C"><enum>(d)</enum><header>Rescissions</header> <paragraph id="H09972C7529CC4A29B448BAC1B1AAEB05"><enum>(1)</enum><header>Competitive grants for non-Federal forest landowners</header><text display-inline="yes-display-inline">All of the unobligated balances of the funds made available under each of paragraphs (1) through (4) of section 23002(a) of subtitle D of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> are rescinded.</text></paragraph>
<paragraph id="H766F722EEBE94D98A30CB3AA829AC1B4"><enum>(2)</enum><header>State and private forestry conservation programs</header><text display-inline="yes-display-inline">Of the unobligated balances available under section 23003(a)(1) of subtitle D of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref>, $100,719,676 are rescinded.</text></paragraph></subsection></section> <section id="H61B66B45465A46D5BAC64081B1DC0945"><enum>10106.</enum><header>Energy</header><text display-inline="no-display-inline">Section 9005(g)(1)(F) of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/8105">7 U.S.C. 8105(g)(1)(F)</external-xref>) is amended by striking <quote>2024</quote> and inserting <quote>2031</quote>.</text> </section>
<section id="H5C8379DCFC93410D9B0D005B65DBAE96" commented="no"><enum>10107.</enum><header>Horticulture</header>
<subsection id="H66BBB036CA574DD292A1C58BC52C1C20" display-inline="no-display-inline" commented="no"><enum>(a)</enum><header>Plant pest and disease management and disaster prevention</header><text>Section 420(f) of the Plant Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7721">7 U.S.C. 7721</external-xref>) is amended—</text> <paragraph id="H77FA65E001334BB7A185B54BB468595A" commented="no"><enum>(1)</enum><text>in paragraph (5), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="H9B54F2FC019447AEB01FD2E2B378FCE9" commented="no"><enum>(2)</enum><text>by redesignating paragraph (6) as paragraph (7);</text></paragraph> <paragraph id="HB43476B15FD647F18E05AA751DB926C8" commented="no"><enum>(3)</enum><text>by inserting after paragraph (5) the following: </text>
<quoted-block style="OLC" id="H43E358E1407A4D57983278DE4FAACB68" display-inline="no-display-inline">
<paragraph id="H70487009DF6B4B178A90B8A843D14EB5" commented="no"><enum>(6)</enum><text display-inline="yes-display-inline">$75,000,000 for each of fiscal years 2018 through 2025; and</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H3872A5E1C25443B08A720C994741EF11" commented="no"><enum>(4)</enum><text>in paragraph (7) (as so redesignated), by striking <quote>$75,000,000 for fiscal year 2018</quote> and inserting <quote>$90,000,000 for fiscal year 2026</quote>.</text></paragraph></subsection>
<subsection id="H87495408E5B4427381B3085CA74CC5A9" display-inline="no-display-inline" commented="no"><enum>(b)</enum><header>Specialty crop block grants</header><text>Section 101(l)(1) of the Specialty Crops Competitiveness Act of 2004 (<external-xref legal-doc="usc" parsable-cite="usc/7/1621">7 U.S.C. 1621</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/108/465">Public Law 108–465</external-xref>) is amended—</text> <paragraph id="H4C1699A28BE747AEB2B4128C1C4A98FD" commented="no"><enum>(1)</enum><text>in subparagraph (D), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="H022CD08A58654ED08B0D46AE5118CBDD" commented="no"><enum>(2)</enum><text>by redesignating subparagraph (E) as subparagraph (F);</text></paragraph> <paragraph id="H63EE0512DDB647EBACE4496D7787B661" commented="no"><enum>(3)</enum><text>by inserting after subparagraph (D) the following: </text>
<quoted-block style="OLC" id="HA17011C6DCF5403EAAE46B4C316188E0" display-inline="no-display-inline">
<subparagraph id="HEAFC6DFE6FD14855A8D5BCF67B1AA5C5" commented="no"><enum>(E)</enum><text display-inline="yes-display-inline">$85,000,000 for each of fiscal years 2018 through 2025<italic></italic>; and</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H7AD980D9FE834504B712FEFAB1327EE7" commented="no"><enum>(4)</enum><text>in subparagraph (F) (as so redesignated), by striking <quote>$85,000,000 for fiscal year 2018</quote> and inserting <quote>$100,000,000 for fiscal year 2026</quote>. </text>
<quoted-block style="OLC" id="H4A48000F5A314B4C97A65F85207E6AB3" display-inline="no-display-inline"><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H7EB3D3CF3C4F433698B0CFD3EAB0C928" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Organic production and market data initiative</header><text>Section 7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/5925c">7 U.S.C. 5925c(d)(1)</external-xref>) is amended—</text> <paragraph id="H871E13D7577D4FAC9A30261CB31A4346" commented="no"><enum>(1)</enum><text>in subparagraph (B), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="HBA8D6F4CEAEA45849979CC8B55540DDB" commented="no"><enum>(2)</enum><text>in subparagraph (C), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph> <paragraph id="H7787B603617A469C8475F581F41BE8D5" commented="no"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block id="HA55355A4D9524FB3A53F631D190236FC" style="OLC">
<subparagraph id="HAB4743053FDD4FF6B6A66E9C901C057D" commented="no"><enum>(D)</enum><text>$10,000,000 for the period of fiscal years 2026 through 2031.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HBB31405D0DA84795995EE2CF9FB71666" display-inline="no-display-inline" commented="no"><enum>(d)</enum><header>Modernization and improvement of international trade technology systems and data collection funding</header><text>Section 2123(c)(4) of the Organic Foods Production Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/7/6522">7 U.S.C. 6522(c)(4)</external-xref>) is amended, in the matter preceding subparagraph (A), by striking <quote>and $1,000,000 for fiscal year 2024</quote> and inserting <quote>, $1,000,000 for fiscal years 2024 and 2025, and $5,000,000 for fiscal year 2026</quote>. </text></subsection>
<subsection id="H9BFD6A73BD214B5C8DB88F1EC862CC3D" display-inline="no-display-inline" commented="no"><enum>(e)</enum><header>National organic certification cost-share program</header><text>Section 10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/6523">7 U.S.C. 6523(d)(1)(C)</external-xref>) is amended by striking <quote>for each of fiscal years 2022 through 2024</quote> and inserting <quote>for each of fiscal years 2022 through 2031</quote>.</text></subsection> <subsection id="HB920ECD202A44B1C845089D7735E210F" display-inline="no-display-inline" commented="no"><enum>(f)</enum><header>Multiple crop and pesticide use survey</header><text>Section 10109(c)(1) of the Agriculture Improvement Act of 2018 (<external-xref legal-doc="public-law" parsable-cite="pl/115/334">Public Law 115–334</external-xref>; 132 Stat. 4906) is amended to read as follows:</text>
<quoted-block style="OLC" id="H185263AC57D049FBB4C5C459F2DABFE7" display-inline="no-display-inline">
<paragraph id="HB3AF13BB7AF14E53B67B63FC16A53DE6" commented="no"><enum>(1)</enum><header>Mandatory funding</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section—</text> <subparagraph id="HE045BA7E99C24070814E35FCAC302CF8" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">$500,000 for fiscal year 2019, to remain available until expended;</text></subparagraph>
<subparagraph id="HD889487235494ED6BD86E1972B842E5D" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">$100,000 for fiscal year 2024, to remain available until expended; and</text></subparagraph> <subparagraph id="H00FC0A85FCCC424F887A9642A527BDB0" commented="no"><enum>(C)</enum><text>$5,000,000 for fiscal year 2026, to remain available until expended.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="H76A593B476A74437B53F51DBBC39CB1E" commented="no"><enum>10108.</enum><header>Miscellaneous</header>
<subsection id="HBAACC8B7FB284114A5551509AC487135"><enum>(a)</enum><header>Animal Disease Prevention and Management</header><text display-inline="yes-display-inline">Section 10409A(d)(1) of the Animal Health Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/7/8308a">7 U.S.C. 8308a(d)(1)</external-xref>) is amended to read as follows: </text> <quoted-block style="OLC" id="H0C035ABA2D0B43079FC848A994289095" display-inline="no-display-inline"> <paragraph id="H7D2B900C04B541E6AD92EBAAF1C0E27C"><enum>(1)</enum><header>Mandatory funding</header> <subparagraph id="H3BC8EFE9F584460D8D9E1205030B11CB"><enum>(A)</enum><header>Fiscal years <enum-in-header>2023</enum-in-header> through <enum-in-header>2025</enum-in-header></header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $30,000,000 for each of fiscal years 2023 through 2025, of which not less than $18,000,000 shall be made available for each of those fiscal years to carry out subsection (b). </text></subparagraph>
<subparagraph id="HD4FF4A1C0C54479899AF36C0D3662D57"><enum>(B)</enum><header>Fiscal years <enum-in-header>2026</enum-in-header> through <enum-in-header></enum-in-header>2030</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $233,000,000 for each of fiscal years 2026 through 2030, of which—</text> <clause id="H76A4A81C356940A7884F7E1E2D450D57"><enum>(i)</enum><text>not less than $10,000,000 shall be made available for each such fiscal year to carry out subsection (a);</text></clause>
<clause id="HF8AE086A0D604E3891C404B49105A3FC"><enum>(ii)</enum><text>not less than $70,000,000 shall be made available for each such fiscal year to carry out subsection (b); and</text></clause> <clause id="H497C8C8B679D43C184A46F30EFD305F3"><enum>(iii)</enum><text>not less than $153,000,000 shall be made available for each such fiscal year to carry out subsection (c).</text></clause></subparagraph>
<subparagraph id="H7FD3E2EC22A74818800049B9B21D3085"><enum>(C)</enum><header>Subsequent fiscal years</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $75,000,000 for fiscal year 2031 and each fiscal year thereafter, of which not less than $45,000,000 shall be made available for each of those fiscal years to carry out subsection (b).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9EFE9AFDAF7840B5AF6FF1F5BB90FE4E" display-inline="no-display-inline" commented="no"><enum>(b)</enum><header>Sheep production and marketing grant program</header><text>Section 209(c) of the Agricultural Marketing Act of 1946 (<external-xref legal-doc="usc" parsable-cite="usc/7/1627a">7 U.S.C. 1627a(c)</external-xref>) is amended—</text>
<paragraph id="H3358C65BF0D64BD3B5459151AF64F94A" commented="no"><enum>(1)</enum><text>by striking <quote>$2,000,000 for fiscal year 2019, and</quote>; and</text></paragraph> <paragraph id="H65FB58671E504FCC8C14A3E8B382212E" commented="no"><enum>(2)</enum><text>by inserting <quote>and $3,000,000 for fiscal year 2026</quote> after <quote>fiscal year 2024</quote>.</text></paragraph></subsection>
<subsection id="HA0C0AECD1FD948EE9BF5622D9555331D" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Miscellaneous trust funds</header>
<paragraph id="H6AA644693A4C430EBE89605BE02A5089" commented="no"><enum>(1)</enum><header>Pima agriculture cotton trust fund</header><text display-inline="yes-display-inline">Section 12314 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/2101">7 U.S.C. 2101</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/113/79">Public Law 113–79</external-xref>) is amended—</text> <subparagraph id="H2A1F8BBFE754445AB288E5D2E43C3D87" commented="no"><enum>(A)</enum><text>in subsection (b), in the matter preceding paragraph (1), by striking <quote>2024</quote> and inserting <quote>2031</quote>; and</text></subparagraph>
<subparagraph id="H9730E990DAAF48F886063A938CF92568" commented="no"><enum>(B)</enum><text>in subsection (h), by striking <quote>2024</quote> and inserting <quote>2031</quote>.</text></subparagraph></paragraph> <paragraph id="HD5182C76ED51405AA9698870FA616C1E" commented="no"><enum>(2)</enum><header>Agriculture wool apparel manufacturers trust fund</header><text>Section 12315 of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/7101">7 U.S.C. 7101</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/113/79">Public Law 113–79</external-xref>) is amended by striking <quote>2024</quote> each place it appears and inserting <quote>2031</quote>.</text></paragraph>
<paragraph id="HC7FD7600B81244568D931CCB57723810" commented="no"><enum>(3)</enum><header>Wool research and promotion</header><text>Section 12316(a) of the Agricultural Act of 2014 (<external-xref legal-doc="usc" parsable-cite="usc/7/7101">7 U.S.C. 7101</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/113/79">Public Law 113–79</external-xref>) is amended by striking <quote>2024</quote> and inserting <quote>2031</quote>.</text></paragraph> <paragraph id="HE83E417BF53B4FFA951C97A55AF62317" commented="no"><enum>(4)</enum><header>Emergency citrus disease research and development trust fund</header><text>Section 12605(d) of the Agriculture Improvement Act of 2018 (<external-xref legal-doc="usc" parsable-cite="usc/7/7632">7 U.S.C. 7632</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/115/334">Public Law 115–334</external-xref>) is amended by striking <quote>2024</quote> and inserting <quote>2031</quote>.</text></paragraph></subsection></section></subtitle>
<enum>II</enum><header>Committee on Armed Services</header>
<section id="HF6AA03039EC84903953A2CAC9FD6AFE3"><enum>20001.</enum><header>Enhancement of Department of Defense resources for improving the quality of life for military personnel</header>
<subsection id="H3ACA629E898D4DE6A3B1D5BA8F12CB08"><enum>(a)</enum><header>Appropriations</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text> <paragraph id="HE6B61ECA9AD64B819DF66BB21E85A776"><enum>(1)</enum><text>$230,480,000 for restoration and modernization costs under the Marine Corps Barracks 2030 initiative;</text></paragraph>
<paragraph id="H2979E72B9ADC4A0B9D177DF204C707BD"><enum>(2)</enum><text>$119,000,000 for base operating support costs for the Marine Corps;</text></paragraph> <paragraph id="HD7A83FA62764494583B752049B5815FD"><enum>(3)</enum><text display-inline="yes-display-inline">$1,000,000,000 for Army, Navy, Air Force, and Space Force sustainment, restoration, and modernizations of military unaccompanied housing;</text></paragraph>
<paragraph id="H1843409226E94ED9B0F7D1CE4FE06136" commented="no"><enum>(4)</enum><text>$2,000,000,000 for the Defense Health Program;</text></paragraph> <paragraph id="H974B20B2FF66424D90808B392F98E2CF"><enum>(5)</enum><text display-inline="yes-display-inline">$2,900,000,000 to supplement the basic allowance for housing payable to members of the Armed Forces, notwithstanding section 403 of title 37, United States Code;</text></paragraph>
<paragraph id="H3356E7F7DC014B8CBBCEF4CCD2733345"><enum>(6)</enum><text>$50,000,000 for bonuses, special pays, and incentive pays for members of the Armed Forces pursuant to titles 10 and 37, United States Code;</text></paragraph> <paragraph id="HFFCC7A6CD27B4328875C1A07BAABCD2B"><enum>(7)</enum><text display-inline="yes-display-inline">$10,000,000 for the Defense Activity for Non-Traditional Education Support’s Online Academic Skills Course program for members of the Armed Forces;</text></paragraph>
<paragraph id="HD765BF0BE2294636AF8B14BD3734D27E"><enum>(8)</enum><text display-inline="yes-display-inline">$100,000,000 for tuition assistance for members of the Armed Forces pursuant to title 10, United States Code;</text></paragraph> <paragraph id="HEBA9BDCBFA914EBFAB43D1687E6133DB"><enum>(9)</enum><text display-inline="yes-display-inline">$100,000,000 for child care fee assistance for members of the Armed Forces under part II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/88">chapter 88</external-xref> of title 10, United States Code;</text></paragraph>
<paragraph id="HC9BBC9E018C74927814D4A77E63F001E"><enum>(10)</enum><text>$590,000,000 to increase the Temporary Lodging Expense Allowance under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/37/8">chapter 8</external-xref> of title 37, United States Code, to 21 days;</text></paragraph> <paragraph id="H8F350FADFC144104B009BF9A10B0D677"><enum>(11)</enum><text display-inline="yes-display-inline">$100,000,000 for Department of Defense Impact Aid payments to local educational agencies under section 2008 of title 10, United States Code;</text></paragraph>
<paragraph id="HCAF1149582D34AC8BCA0EBB7F45717AF"><enum>(12)</enum><text>$10,000,000 for military spouse professional licensure under section 1784 of title 10, United States Code;</text></paragraph> <paragraph id="H5B0F4E331CB14FF3821499D278AF758C"><enum>(13)</enum><text>$6,000,000 for Armed Forces Retirement Home facilities; and</text></paragraph>
<paragraph id="H433A8C8A54F64BED9806BA0DD3DC219D"><enum>(14)</enum><text>$100,000,000 for the Defense Community Infrastructure Program.</text></paragraph></subsection> <subsection id="H72E6C91BF41540009C9A2E7708A10635"><enum>(b)</enum><header>Temporary increase in percentage of value of authorized investment in certain privatized military housing projects</header> <paragraph id="HA4A3F449561F42D7B63577D288F51526"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">During the period beginning on the date of the enactment of this section and ending on September 30, 2029, the Secretary concerned shall apply—</text>
<subparagraph id="H509D314D24034877924C16D3090D39DD"><enum>(A)</enum><text>paragraph (1) of subsection (c) of section 2875 of title 10, United States Code, by substituting <quote>60 percent</quote> for <quote>33<fraction> 1/3</fraction> percent</quote>; and</text></subparagraph> <subparagraph id="H5D06D55576B04018B395AD4ADE984B7A"><enum>(B)</enum><text>paragraph (2) of such subsection by substituting <quote>60 percent</quote> for <quote>45 percent</quote>.</text></subparagraph></paragraph>
<paragraph id="HB9D4F74CB64A4768A0F0A106C96F574A"><enum>(2)</enum><header>Secretary concerned defined</header><text>In this subsection, the term <quote>Secretary concerned</quote> has the meaning given such term in section 101 of title 10, United States Code.</text></paragraph></subsection> <subsection id="H31DFC13E703A49F2A490884B32AF86C7"><enum>(c)</enum><header>Temporary authority for acquisition or construction of privatized military unaccompanied housing</header><text>Section 2881a of title 10, United States Code, is amended—</text>
<paragraph id="H2BB8D3A3806A43D382E58F6751FD2649"><enum>(1)</enum><text>by striking the heading and inserting <quote><header-in-text level="section" style="USC">Temporary authority for acquisition or construction of privatized military unaccompanied housing</header-in-text></quote>;</text></paragraph> <paragraph id="H71568EBF928442E69FEAFE66970B3808"><enum>(2)</enum><text>by striking <quote>Secretary of the Navy</quote> each place it appears and inserting <quote>Secretary concerned</quote>;</text></paragraph>
<paragraph id="H22BA3B96921B4FE2B2103092102E0ED5"><enum>(3)</enum><text>by striking <quote>under the pilot projects</quote> each place it appears and inserting <quote>pursuant to this section</quote>;</text></paragraph> <paragraph id="H4181E240FDEE49DDB6CD24661815A897"><enum>(4)</enum><text>in subsection (a)—</text>
<subparagraph id="HE637FC8C96534A60AAD7598B0FC200CF"><enum>(A)</enum><text>by striking the heading and inserting <quote><header-in-text level="subsection" style="USC">In general</header-in-text></quote>; and</text></subparagraph> <subparagraph id="HEAF489C1F392475A919B6C8B46B8F380" commented="no"><enum>(B)</enum><text>by striking <quote>carry out not more than three pilot projects under the authority of this section or another provision of this subchapter to use the private sector</quote> and inserting <quote>use the authority under this subchapter to enter into contracts with appropriate private sector entities</quote>;</text></subparagraph></paragraph>
<paragraph id="HD313D263C8C74052A9BA1D3D3C1F691E"><enum>(5)</enum><text>in subsection (c), by striking <quote>privatized housing</quote> and inserting <quote>privatized housing units</quote>;</text></paragraph> <paragraph id="H190D1BA1E3A14805B0AA404EE7CD9E5E"><enum>(6)</enum><text>by redesignating subsection (f) as subsection (e); and</text></paragraph>
<paragraph id="HC729F791ED6A47B2BE7CEDD56A9158D2"><enum>(7)</enum><text>in subsection (e) (as so redesignated)—</text> <subparagraph id="H4EE4273E2D7742DF9AAD309FA182B7C6"><enum>(A)</enum><text>by striking <quote>under the pilot programs</quote> and inserting <quote>under this section</quote>; and</text></subparagraph>
<subparagraph id="HBA04BCF405374EABB0AF387DD518B7A1"><enum>(B)</enum><text>by striking <quote>September 30, 2009</quote> and inserting <quote>September 30, 2029</quote>. </text></subparagraph></paragraph></subsection></section> <section id="H17F0216BA15B4930AE190320A4933219"><enum>20002.</enum><header>Enhancement of Department of Defense resources for shipbuilding</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="H97CA278B1BC0473D878A440136FF20BD"><enum>(1)</enum><text>$250,000,000 for the expansion of accelerated Training in Defense Manufacturing program;</text></paragraph> <paragraph id="H9A86FFA06F9D45A88C406E998282088B"><enum>(2)</enum><text>$250,000,000 for United States production of turbine generators for shipbuilding industrial base;</text></paragraph>
<paragraph id="H98B78CF2F5FF4C18B0B1045B54CE7348"><enum>(3)</enum><text>$450,000,000 for United States additive manufacturing for wire production and machining capacity for shipbuilding industrial base;</text></paragraph> <paragraph id="HF1349D07290E464D9F7A8A3A316E2640"><enum>(4)</enum><text>$492,000,000 for next-generation shipbuilding techniques;</text></paragraph>
<paragraph id="H53173EF10D4A49F98DE3BEEB89F73FD4"><enum>(5)</enum><text>$85,000,000 for United States-made steel plate for shipbuilding industrial base;</text></paragraph> <paragraph id="HCA8456D8A0A8413D86949B60C8248D98"><enum>(6)</enum><text>$50,000,000 for machining capacity for naval propellers for shipbuilding industrial base;</text></paragraph>
<paragraph id="HD41B39441B784175942C363E4C9C3CDA"><enum>(7)</enum><text>$110,000,000 for rolled steel and fabrication facility for shipbuilding industrial base;</text></paragraph> <paragraph id="H12CA249B66C541F5B9A7D4152C3B226D"><enum>(8)</enum><text display-inline="yes-display-inline">$400,000,000 for expansion of collaborative campus for naval shipbuilding; </text></paragraph>
<paragraph id="H3118745C759740F9B1EEC0631FB08543"><enum>(9)</enum><text>$450,000,000 for application of autonomy and artificial intelligence to naval shipbuilding;</text></paragraph> <paragraph id="H23130C21164B4E8B985DC2D5E2E3880E"><enum>(10)</enum><text>$500,000,000 for the adoption of advanced manufacturing techniques in the shipbuilding industrial base; </text></paragraph>
<paragraph id="HCE80927F4B0B4622B8E41F2490524EEC"><enum>(11)</enum><text>$500,000,000 for additional dry-dock capability; </text></paragraph> <paragraph id="H47DECDD602AF4554ADB8F99515FD1127"><enum>(12)</enum><text>$50,000,000 for the expansion of cold spray repair technologies; </text></paragraph>
<paragraph id="H544762CCEAC740988DFB888C9573C5A1"><enum>(13)</enum><text>$450,000,000 for additional maritime industrial workforce development programs; </text></paragraph> <paragraph id="HC1438E4F89594945A8204992CDD536BB"><enum>(14)</enum><text>$750,000,000 for additional supplier development across the naval shipbuilding industrial base; </text></paragraph>
<paragraph id="H8BB2949F34CC45A990699D452B7752B9"><enum>(15)</enum><text>$250,000,000 for additional advanced manufacturing processes across the naval shipbuilding industrial base;</text></paragraph> <paragraph id="HAC0D2F6DCAFE4D7A9BC97650BE8FA51E"><enum>(16)</enum><text>$4,600,000,000 for a second Virginia-class submarine in fiscal year 2026;</text></paragraph>
<paragraph id="HA9F630284CAF470E989E37CE406FFCC8"><enum>(17)</enum><text>$5,400,000,000 for two additional Guided Missile Destroyer (DDG) ships;</text></paragraph> <paragraph id="H907811CD7B494F46B4BA60A2D126F88B"><enum>(18)</enum><text>$160,000,000 for advanced procurement for Landing Ship Medium;</text></paragraph>
<paragraph id="H90C8B3823348459785BCF6BBF4B4B509"><enum>(19)</enum><text>$1,803,941,000 for procurement of Landing Ship Medium;</text></paragraph> <paragraph id="H6077ABDB61794E13AE092EF6C7A698BC"><enum>(20)</enum><text>$295,000,000 for development of a second Landing Craft Utility shipyard and production of additional Landing Craft Utility;</text></paragraph>
<paragraph id="H763C0BD978AD439C999C544BDE046980"><enum>(21)</enum><text display-inline="yes-display-inline">$100,000,000 for the procurement of commercial logistics ships;</text></paragraph> <paragraph id="H3192C79E4665435B8887A90519FB1E45"><enum>(22)</enum><text display-inline="yes-display-inline">$600,000,000 for the lease or purchase of new ships through the National Defense Sealift Fund;</text></paragraph>
<paragraph id="H6C06D89E76A443B1999423AA8592E2BA"><enum>(23)</enum><text display-inline="yes-display-inline">$2,725,000,000 for the procurement of T-AO oilers;</text></paragraph> <paragraph id="HD0E9841D18324C09ACE94F18F5B3A141"><enum>(24)</enum><text>$500,000,000 for cost-to-complete for rescue and salvage ships;</text></paragraph>
<paragraph id="H5BCBC4BFC33E4BAC8EEE4A818A464627"><enum>(25)</enum><text>$300,000,000 for production of ship-to-shore connectors;</text></paragraph> <paragraph id="H299161B57DE84ADEA46897C66E8BF129"><enum>(26)</enum><text>$695,000,000 for the implementation of a multi-ship amphibious warship contract;</text></paragraph>
<paragraph id="HDE4088AE794840B89DDFE43A4F2C2B55"><enum>(27)</enum><text>$80,000,000 for accelerated development of vertical launch system reloading at sea;</text></paragraph> <paragraph id="H0770712D785D41D3910AB47CF2BEC66C"><enum>(28)</enum><text>$250,000,000 for expansion of Navy corrosion control programs;</text></paragraph>
<paragraph id="H0285BED2C52243EAB1244564C54C4A99"><enum>(29)</enum><text>$159,000,000 for leasing of ships for Marine Corps operations;</text></paragraph> <paragraph id="H8F232F2F9B134439ADA846BA5BB67EF9"><enum>(30)</enum><text>$1,534,000,000 for expansion of small unmanned surface vessel production;</text></paragraph>
<paragraph id="H808B3343C0E44BD18C73E367207819D5"><enum>(31)</enum><text display-inline="yes-display-inline">$1,800,000,000 for expansion of medium unmanned surface vessel production;</text></paragraph> <paragraph id="HFB2D05621A944309A7DF5D35D3C95E47"><enum>(32)</enum><text>$1,300,000,000 for expansion of unmanned underwater vehicle production;</text></paragraph>
<paragraph id="HBAFC3197E1D24FA589DCC77736341CE4"><enum>(33)</enum><text>$188,360,000 for the development and testing of maritime robotic autonomous systems and enabling technologies;</text></paragraph> <paragraph id="HE2325F92EB9A477491DC2925E5CCFA82"><enum>(34)</enum><text>$174,000,000 for the development of a Test Resource Management Center robotic autonomous systems proving ground;</text></paragraph>
<paragraph id="H571589B3EE0C4B388EBC448392600282"><enum>(35)</enum><text display-inline="yes-display-inline">$250,000,000 for the development, production, and integration of wave-powered unmanned underwater vehicles;</text></paragraph> <paragraph id="H543126826A0F462B9A6B79D20410F0B1"><enum>(36)</enum><text>$2,100,000,000 for San Antonio-class Amphibious Transport Dock (LPD); and</text></paragraph>
<paragraph id="H9B00C63F1DF549C49985C13E770338EC"><enum>(37)</enum><text>$3,700,000,000 for America-class Amphibious Assault Ship (LHA).</text></paragraph></section> <section id="H4DE1FA729DD24436872237856EF9D728"><enum>20003.</enum><header>Enhancement of Department of Defense resources for integrated air and missile defense</header> <subsection id="HC9E92AD51744453880598ECA8C554B2E"><enum>(a)</enum><header>Next generation missile defense technologies</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="HEC966F0CA1C04FDB949CF2D1F0496D14"><enum>(1)</enum><text>$183,000,000 for Missile Defense Agency special programs;</text></paragraph> <paragraph id="H02D25DDEF5854A35BB019CA40C5AA44E"><enum>(2)</enum><text>$250,000,000 for development and testing of directed energy capabilities by the Under Secretary for Research and Engineering;</text></paragraph>
<paragraph id="HA4FC34BA5F204C7CA4C1DD9A2531DC77"><enum>(3)</enum><text>$300,000,000 for classified military space superiority programs run by the Strategic Capabilities Office;</text></paragraph> <paragraph id="H05CEBA753AEB4AE5A8283C5910419677"><enum>(4)</enum><text>$500,000,000 for national security space launch infrastructure;</text></paragraph>
<paragraph id="HE2C6D79103CE48CD97E968EEB74CE64F"><enum>(5)</enum><text>$2,000,000,000 for air moving target indicator military satellites;</text></paragraph> <paragraph id="HFAC94C0E927C443C9AA097CB38253BE5"><enum>(6)</enum><text>$400,000,000 for expansion of Multi-Service Advanced Capability Hypersonic Test Bed program;</text></paragraph>
<paragraph id="HE4C2EB26DAC246C890238E296002AB37"><enum>(7)</enum><text>$5,600,000,000 for development of space-based and boost phase intercept capabilities;</text></paragraph> <paragraph id="HCC66F58664D540DBAD4EA9065BD2DDA4"><enum>(8)</enum><text display-inline="yes-display-inline">$2,400,000,000 for the development of military non-kinetic missile defense effects; and</text></paragraph>
<paragraph id="H989DDA3880824988BA0B1F80FAE6607C"><enum>(9)</enum><text display-inline="yes-display-inline">$7,200,000,000 for the development, procurement, and integration of military space-based sensors.</text></paragraph></subsection> <subsection id="H0097DB287C144B7CB862E7BA95CA4A79"><enum>(b)</enum><header>Layered homeland defense</header><text>In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="H0A0B0FCB87FA456C8DD72B8E82C21838"><enum>(1)</enum><text>$2,200,000,000 for acceleration of hypersonic defense systems;</text></paragraph> <paragraph id="HD03480E815814453BDC40DA05AF90193"><enum>(2)</enum><text>$800,000,000 for accelerated development and deployment of next-generation intercontinental ballistic missile defense systems;</text></paragraph>
<paragraph id="H43715B5ECABC41C39E6B397488DE33EF"><enum>(3)</enum><text display-inline="yes-display-inline">$408,000,000 for Army space and strategic missile test range infrastructure restoration and modernization in the United States Indo-Pacific Command area of operations west of the international dateline;</text></paragraph> <paragraph id="HE89E16055B4A4E4DA31F6E909B5BD5A0"><enum>(4)</enum><text>$1,975,000,000 for improved ground-based missile defense radars; and</text></paragraph>
<paragraph id="H341E24683631427EB15BFAD1EAD41B3D"><enum>(5)</enum><text>$530,000,000 for the design and construction of Missile Defense Agency missile instrumentation range safety ship.</text></paragraph></subsection></section> <section id="H21D3C78C8A0B4B7985E0669A2D442DE8"><enum>20004.</enum><header>Enhancement of Department of Defense resources for munitions and defense supply chain resiliency</header> <subsection id="H0DC829971A79474589D5B20592765954"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="H122C18D2E8584442A90D42236F5300A8"><enum>(1)</enum><text>$400,000,000 for the development, production, and integration of Navy and Air Force long-range anti-ship missiles;</text></paragraph> <paragraph id="H371BF21FC10E467CAEF02A3332510ABF"><enum>(2)</enum><text display-inline="yes-display-inline">$380,000,000 for production capacity expansion for Navy and Air Force long-range anti-ship missiles;</text></paragraph>
<paragraph id="H6F2F50220D234239B3E034E280B3750D"><enum>(3)</enum><text display-inline="yes-display-inline">$490,000,000 for the development, production, and integration of Navy and Air Force long-range air-to-surface missiles;</text></paragraph> <paragraph id="HF6A613FF67AE4A018A37825514984DB9"><enum>(4)</enum><text>$94,000,000 for the development, production, and integration of alternative Navy and Air Force long-range air-to-surface missiles;</text></paragraph>
<paragraph id="HCB483891A2FA49E7982E99F178D48E44"><enum>(5)</enum><text>$630,000,000 for the development, production, and integration of long-range Navy air defense and anti-ship missiles;</text></paragraph> <paragraph id="H10BB589A230F4F67B9062C68598E05A2"><enum>(6)</enum><text>$688,000,000 for the development, production, and integration of long-range multi-service cruise missiles;</text></paragraph>
<paragraph id="H9AE154B93494429086FDCA760F92F9C5"><enum>(7)</enum><text>$250,000,000 for production capacity expansion and supplier base strengthening of long-range multi-service cruise missiles;</text></paragraph> <paragraph id="H2CB8C37AC5C840349E86B521F321EE33"><enum>(8)</enum><text>$70,000,000 for the development, production, and integration of short-range Navy and Marine Corps anti-ship missiles;</text></paragraph>
<paragraph id="H0A197B820E074AAD8C08DCA92EEB07C4"><enum>(9)</enum><text>$100,000,000 for the development of an anti-ship seeker for short-range Army ballistic missiles;</text></paragraph> <paragraph id="H641AEC11E6A74D67B7FB6BEC206649BB"><enum>(10)</enum><text>$175,000,000 for production capacity expansion for next-generation Army medium-range ballistic missiles;</text></paragraph>
<paragraph id="H6B010C49B6754F8BB3745262CCBE9E50"><enum>(11)</enum><text display-inline="yes-display-inline">$50,000,000 for the mitigation of diminishing manufacturing sources for medium-range air-to-air missiles; </text></paragraph> <paragraph id="HBB8B4F9E70DA4DC69B6625C30EE117BC"><enum>(12)</enum><text display-inline="yes-display-inline">$250,000,000 for the procurement of medium-range air-to-air missiles; </text></paragraph>
<paragraph id="HE44A131B53E84170BAA7370CCB19DABF"><enum>(13)</enum><text>$225,000,000 for the expansion of production capacity for medium-range air-to-air missiles; </text></paragraph> <paragraph id="HE87FF60FB1C14221B6F84EA12139430E"><enum>(14)</enum><text>$50,000,000 for the development of second sources for components of short-range air-to-air missiles; </text></paragraph>
<paragraph id="H3B467E4A6B77476BAF019E92E7FFA147"><enum>(15)</enum><text>$325,000,000 for production capacity improvements for air-launched anti-radiation missiles;</text></paragraph> <paragraph id="H1E907B394C7647748309D30D05769705"><enum>(16)</enum><text>$50,000,000 for the accelerated development of Army next-generation medium-range anti-ship ballistic missiles;</text></paragraph>
<paragraph id="HEC01F8D375D042E6A538DEA1B10A390D"><enum>(17)</enum><text>$114,000,000 for the production of Army next-generation medium-range ballistic missiles;</text></paragraph> <paragraph id="H112D4330CB8D416A98E794691B6A0D99"><enum>(18)</enum><text>$300,000,000 for the production of Army medium-range ballistic missiles;</text></paragraph>
<paragraph id="HA58E1555B359405D821A9481CAAD245F"><enum>(19)</enum><text>$85,000,000 for the accelerated development of Army long-range ballistic missiles;</text></paragraph> <paragraph id="HC22AC85539CE467090FB83ADD541CEA0"><enum>(20)</enum><text>$400,000,000 for the production of heavyweight torpedoes;</text></paragraph>
<paragraph id="H179D9B19647A426C99DCBCBF8241FE74"><enum>(21)</enum><text>$200,000,000 for the development, procurement, and integration of commercial heavyweight torpedoes;</text></paragraph> <paragraph id="H5CA6822EA24A469EAB5C178C84A94562"><enum>(22)</enum><text>$70,000,000 for the improvement of heavyweight torpedo maintenance activities;</text></paragraph>
<paragraph id="HF8CA566B7C1B419F9204CB7815C7D110"><enum>(23)</enum><text display-inline="yes-display-inline">$200,000,000 for the production of lightweight torpedoes;</text></paragraph> <paragraph id="H85BABCDA301A4D70A9E6151445C176D4"><enum>(24)</enum><text>$500,000,000 for the development, procurement, and integration of maritime mines;</text></paragraph>
<paragraph id="HA260C4C3483D4ED88990D5925EA03613"><enum>(25)</enum><text>$50,000,000 for the development, procurement, and integration of new underwater explosives;</text></paragraph> <paragraph id="H3ED668BBD0164F608FADD740E2FB4C0C"><enum>(26)</enum><text>$55,000,000 for the development, procurement, and integration of lightweight multi-mission torpedoes;</text></paragraph>
<paragraph id="H6A2CA132373C4CF99B27006CAF1907DD"><enum>(27)</enum><text>$80,000,000 for the production of sonobuoys;</text></paragraph> <paragraph id="HB2FD35A5BE314289BE1AB9FED6C8E6F0"><enum>(28)</enum><text>$150,000,000 for the development, procurement, and integration of air-delivered long-range maritime mines;</text></paragraph>
<paragraph id="H3A4778A455D7485F8C09D96E26097DCB"><enum>(29)</enum><text>$61,000,000 for the acceleration of Navy expeditionary loitering munitions deployment;</text></paragraph> <paragraph id="HCB2F754058B54495B195A18A052AA2EB"><enum>(30)</enum><text>$50,000,000 for the acceleration of one-way attack unmanned aerial systems with advanced autonomy;</text></paragraph>
<paragraph id="HE484F292263F42988D1D0264518FC2AA"><enum>(31)</enum><text>$1,000,000,000 for the expansion of the one-way attack unmanned aerial systems industrial base;</text></paragraph> <paragraph id="H3D7B2A59D9C94247855C5393A3971653"><enum>(32)</enum><text display-inline="yes-display-inline">$3,500,000,000 for grants made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code; </text></paragraph>
<paragraph id="H68FD4DCB36E8434E9DE69E51BC094192"><enum>(33)</enum><text>$1,000,000,000 for grants and purchase commitments made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code;</text></paragraph> <paragraph id="HD0CAE66748A245698A32C0D062612C23"><enum>(34)</enum><text>$200,000,000 for investments in solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code;</text></paragraph>
<paragraph id="H1A0629CC64C743339E59A6DC9BC9C46F"><enum>(35)</enum><text>$400,000,000 for investments in the emerging solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code;</text></paragraph> <paragraph id="H4E258B3BDEA14693B7E04DCB0D85C7B2"><enum>(36)</enum><text>$42,000,000 for investments in second sources for large-diameter solid rocket motors for hypersonic missiles;</text></paragraph>
<paragraph id="H70E4ECDB85584E27B58284A0F196FE7C"><enum>(37)</enum><text>$1,000,000,000 for the creation of next-generation automated munitions production factories;</text></paragraph> <paragraph id="HFE0ABD7E8DCF4CE4A5891508E41A5591"><enum>(38)</enum><text>$170,000,000 for the development of advanced radar depot for repair, testing, and production of radar and electronic warfare systems;</text></paragraph>
<paragraph id="H43893D911839436B8480C7C5F0E0A316"><enum>(39)</enum><text>$25,000,000 for the expansion of the Department of Defense industrial base policy analysis workforce;</text></paragraph> <paragraph id="HB7BD49D75BF04CDAA4FEC63E28292483"><enum>(40)</enum><text>$30,300,000 for the repair of Army missiles;</text></paragraph>
<paragraph id="HBD55327C61F54E77B887AE0D53E651D0"><enum>(41)</enum><text>$100,000,000 for the production of small and medium ammunition;</text></paragraph> <paragraph id="H4B54DD5A7D454906934437CED759E22A"><enum>(42)</enum><text display-inline="yes-display-inline">$2,500,000,000 for additional activities to improve the United States production of critical minerals through the National Defense Stockpile, authorized by subchapter III of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/50/5">chapter 5</external-xref> of title 50, United States Code;</text></paragraph>
<paragraph id="HCA17904F33114EF8B8138700F5F10D42"><enum>(43)</enum><text>$10,000,000 for the expansion of the Department of Defense armaments cooperation workforce;</text></paragraph> <paragraph id="H5DA1F613BE364B1EAB6BED1C3D0F8C41"><enum>(44)</enum><text>$500,000,000 for the expansion of the Defense Exportability Features program;</text></paragraph>
<paragraph id="H854A76BB4DC241FAA2AAB60F9FEBF261"><enum>(45)</enum><text display-inline="yes-display-inline">$350,000,000 for production of Navy long-range air and missile defense interceptors;</text></paragraph> <paragraph id="HBD5F302BBF9A4A719727140901295920"><enum>(46)</enum><text>$93,000,000 for replacement of Navy long-range air and missile defense interceptors;</text></paragraph>
<paragraph id="H5AA9B8C3104A4113B5A8CCBC534140BB"><enum>(47)</enum><text>$100,000,000 for development of a second solid rocket motor source for Navy air defense and anti ship missiles;</text></paragraph> <paragraph id="HB0E271316B6C486C8813BF2D2F7F0923"><enum>(48)</enum><text>$65,000,000 for expansion of production capacity of Missile Defense Agency long-range anti-ballistic missiles;</text></paragraph>
<paragraph id="H4E8DBEC757B94AA7ADCEADA33F640AEF"><enum>(49)</enum><text>$225,000,000 for expansion of production capacity for Navy air defense and anti-ship missiles;</text></paragraph> <paragraph id="H4DFF2B2D10A741F8AE205C6FD8C3CE87"><enum>(50)</enum><text>$103,300,000 for expansion of depot level maintenance facility for Navy long-range air and missile defense interceptors;</text></paragraph>
<paragraph id="H3A51802E01E34EDDB40CCD7047379C36"><enum>(51)</enum><text>$18,000,000 for creation of domestic source for guidance section of Navy short-range air defense missiles;</text></paragraph> <paragraph id="H4363CBB60083461ABF6CE806AB0616B3"><enum>(52)</enum><text>$65,000,000 for integration of Army medium-range air and missile defense interceptor with Navy ships;</text></paragraph>
<paragraph id="H40DFC34C72C9458EBEB518913EB7BBF8"><enum>(53)</enum><text>$176,100,000 for production of Army long-range movable missile defense radar;</text></paragraph> <paragraph id="HCACEF5B10C2B4DAEB874874245B89520"><enum>(54)</enum><text>$100,000,000 for accelerated fielding of Army short-range gun-based air and missile defense system;</text></paragraph>
<paragraph id="H6B755ED92B5341B987CB43EDE04C790B"><enum>(55)</enum><text>$40,000,000 for development of low-cost alternatives to air and missile defense interceptors;</text></paragraph> <paragraph id="HD107E227725849638F4A0A8D04617EC2"><enum>(56)</enum><text>$50,000,000 for acceleration of Army next-generation shoulder-fired air defense system;</text></paragraph>
<paragraph id="H2087F2BEE9C94CC7A839FDD99FC40534"><enum>(57)</enum><text>$91,000,000 for production of Army next-generation shoulder-fired air defense system;</text></paragraph> <paragraph id="HC08162A1626648B793EA82DD7A3461F4"><enum>(58)</enum><text display-inline="yes-display-inline">$500,000,000 for development, production, and integration of counter-unmanned aerial systems programs;</text></paragraph>
<paragraph id="HDEB00A83924347B28ACCFA9424068688"><enum>(59)</enum><text>$350,000,000 for development, production, and integration of non-kinetic counter-unmanned aerial systems programs;</text></paragraph> <paragraph id="HC473E4E8A86D444CA10B614F83E1FE4C"><enum>(60)</enum><text>$250,000,000 for development, production, and integration of land-based counter-unmanned aerial systems programs;</text></paragraph>
<paragraph id="HD39EA70AE6D6467199398E2E9727734C"><enum>(61)</enum><text>$200,000,000 for development, production, and integration of ship-based counter-unmanned aerial systems programs; and</text></paragraph> <paragraph id="H3199BAEB6FFF401391816C5B080C61AB"><enum>(62)</enum><text>$400,000,000 for acceleration of hypersonic strike programs.</text></paragraph></subsection>
<subsection id="H8A97855355CA4A898CE3E7CA57A6D558"><enum>(b)</enum><header>Appropriations</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $500,000,000 to the <quote>Department of Defense Credit Program Account</quote> to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code, for critical minerals and related industries and projects, including related Covered Technology Categories: <italic>Provided</italic>, That—</text> <paragraph id="H7C5801BE2F16407FA8AFB431DD9E711B"><enum>(1)</enum><text>such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and</text></paragraph>
<paragraph id="H40050C06A3944474B804F564075A1C95"><enum>(2)</enum><text>such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code.</text></paragraph></subsection></section> <section id="H71786A973D6C4C88BD3E070EEF39CC05"><enum>20005.</enum><header>Enhancement of Department of Defense resources for scaling low-cost weapons into production</header> <subsection id="H45225B15B4FA4F8F9B871936B0BC28F0"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="HAF8E74F9D840476B8F8BF3B3A7F14D67"><enum>(1)</enum><text>$25,000,000 for the Office of Strategic Capital Global Technology Scout program;</text></paragraph> <paragraph id="H8629F89337C249B3A85955D2955F2B60"><enum>(2)</enum><text>$1,100,000,000 for the expansion of the small unmanned aerial system industrial base;</text></paragraph>
<paragraph id="H15A1CFBE6D9949D98C675392EB7295B5"><enum>(3)</enum><text>$400,000,000 for the development and deployment of the Joint Fires Network and associated joint battle management capabilities;</text></paragraph> <paragraph id="HFF8D4A5639E04966AE61E28D416253F3"><enum>(4)</enum><text>$400,000,000 for the expansion of advanced command-and-control tools to combatant commands and military departments;</text></paragraph>
<paragraph id="H0418CD2B3771440A8A055A81A8E2B7B3"><enum>(5)</enum><text>$100,000,000 for the development of shared secure facilities for the defense industrial base;</text></paragraph> <paragraph id="H28DF8982CCB94961839F3725C08ED39B"><enum>(6)</enum><text>$50,000,000 for the creation of additional Defense Innovation Unit OnRamp Hubs;</text></paragraph>
<paragraph id="H54B264527F334D53B0BD883E717F83A8"><enum>(7)</enum><text>$250,000,000 for the acceleration of Strategic Capabilities Office programs;</text></paragraph> <paragraph id="H7831DA4995E94B42A4509F607393F57B"><enum>(8)</enum><text>$650,000,000 for the expansion of Mission Capabilities office joint prototyping and experimentation activities for military innovation;</text></paragraph>
<paragraph id="H2C6FC58125994F918B4F0AB75D472206"><enum>(9)</enum><text>$500,000,000 for the accelerated development and integration of advanced 5G/6G technologies for military use;</text></paragraph> <paragraph id="H155CE5AB79814C258ECB7C14896A0E6A"><enum>(10)</enum><text>$25,000,000 for testing of simultaneous transmit and receive technology for military spectrum agility;</text></paragraph>
<paragraph id="H0B74A72A7E164BF9B8464B19327CD9AE"><enum>(11)</enum><text>$50,000,000 for the development, procurement, and integration of high-altitude stratospheric balloons for military use;</text></paragraph> <paragraph id="HEF568A4E9FAE442B80F3B9934A443A29"><enum>(12)</enum><text>$120,000,000 for the development, procurement, and integration of long-endurance unmanned aerial systems for surveillance;</text></paragraph>
<paragraph id="HC55B1F4997D34FEF9750DA7696FD5954"><enum>(13)</enum><text>$40,000,000 for the development, procurement, and integration of alternative positioning and navigation technology to enable military operations in contested electromagnetic environments;</text></paragraph> <paragraph id="H462064364BB54DAFB3584654E3E0E23E"><enum>(14)</enum><text>$750,000,000 for the acceleration of innovative military logistics and energy capability development and deployment;</text></paragraph>
<paragraph id="H2BCB1FB260DE4C54981986212E3CE115"><enum>(15)</enum><text>$120,000,000 for the acceleration of development of small, portable modular nuclear reactors for military use;</text></paragraph> <paragraph id="H471958AC17B0439994ADE7AC54B89002"><enum>(16)</enum><text>$1,000,000,000 for the expansion of programs to accelerate the procurement and fielding of innovative technologies;</text></paragraph>
<paragraph id="H745BF8D02D6B4FD7A80CB2D662BAA798"><enum>(17)</enum><text>$90,000,000 for the development of reusable hypersonic technology for military strikes;</text></paragraph> <paragraph id="HED7A7BD778444584ADD4317AF4E5527D"><enum>(18)</enum><text>$2,000,000,000 for the expansion of Defense Innovation Unit scaling of commercial technology for military use;</text></paragraph>
<paragraph id="HD97F05DDD0664986ADCD30E0359F1CAC"><enum>(19)</enum><text>$500,000,000 to prevent delays in delivery of attritable autonomous military capabilities;</text></paragraph> <paragraph id="H98322A99B3F14BDAB4E6622041687C6E"><enum>(20)</enum><text>$1,000,000,000 for the development, procurement, and integration of low-cost cruise missiles;</text></paragraph>
<paragraph id="HC212B6454AFC4DDFBD523ABEE87068D1"><enum>(21)</enum><text>$124,000,000 for improvements to Test Resource Management Center artificial intelligence capabilities;</text></paragraph> <paragraph id="H0F36B215FDDE46379AFAA1953F817632"><enum>(22)</enum><text>$145,000,000 for the development of artificial intelligence to enable one-way attack unmanned aerial systems and naval systems;</text></paragraph>
<paragraph id="HDF7AA36B252A4BDEA892D61D90603A6A"><enum>(23)</enum><text>$250,000,000 for the development of the Test Resource Management Center digital test environment;</text></paragraph> <paragraph id="HE0C2F95838244E9F8118D19B653E5583"><enum>(24)</enum><text display-inline="yes-display-inline">$250,000,000 for the advancement of the artificial intelligence ecosystem;</text></paragraph>
<paragraph id="H0BDC875F5D7A44F98A3E010A27965A5C"><enum>(25)</enum><text>$250,000,000 for the expansion of Cyber Command artificial intelligence lines of effort;</text></paragraph> <paragraph id="H6EEB9F3D9F7F4EFC84BE15AE4732F27D"><enum>(26)</enum><text>$250,000,000 for the acceleration of the Quantum Benchmarking Initiative;</text></paragraph>
<paragraph id="H287DB99DAB874EA6A2D34B357AF66587"><enum>(27)</enum><text>$500,000,000 for the expansion and acceleration of qualification activities and technical data management to enhance competition in defense industrial base;</text></paragraph> <paragraph id="HC4ECC0D105D64FE780947811A332A8F1"><enum>(28)</enum><text>$400,000,000 for the expansion of the defense manufacturing technology program; and</text></paragraph>
<paragraph id="H5EB4C22EDCA04BFAB02D7F234513431F"><enum>(29)</enum><text>$685,000,000 for military cryptographic modernization activities.</text></paragraph></subsection> <subsection id="H93F59C0F5AD54B308234B4013070FE0F"><enum>(b)</enum><header>Appropriations</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $1,000,000,000 to the <quote>Department of Defense Credit Program Account</quote> to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code: <italic>Provided</italic>, That—</text>
<paragraph id="H81DAA351ED9D4722801B0279DAAB4CF9"><enum>(1)</enum><text>such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and</text></paragraph> <paragraph id="H20F035049E3941A09AD7E7B73FE3CD67"><enum>(2)</enum><text>such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code.</text></paragraph></subsection></section>
<section id="HF935A70918CB4E3D878F3550D8EE5617"><enum>20006.</enum><header>Enhancement of Department of Defense resources for improving the efficiency and cybersecurity of the Department of Defense</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text> <paragraph id="H17F5D900B87F43F6A8F9BFFB6D8C627E"><enum>(1)</enum><text display-inline="yes-display-inline">$150,000,000 for business systems replacement to accelerate the audits of the financial statements of the Department of Defense pursuant to chapter 9A and section 2222 of title 10, United States Code;</text></paragraph>
<paragraph id="H1AFC55BBDABD457DB6C5D5DD5182B025"><enum>(2)</enum><text display-inline="yes-display-inline">$200,000,000 for the deployment of automation and artificial intelligence to accelerate the audits of the financial statements of the Department of Defense pursuant to chapter 9A and section 2222 of title 10, United States Code;</text></paragraph> <paragraph id="H1CE3465526B34E9FBF87272353DBEC62" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">$10,000,000 for the improvement of the budgetary and programmatic infrastructure of the Office of the Secretary of Defense; and</text></paragraph>
<paragraph id="HF9B002FDEC9343009FEC7506BC607F22"><enum>(4)</enum><text display-inline="yes-display-inline">$20,000,000 for defense cybersecurity programs of the Defense Advanced Research Projects Agency.</text></paragraph></section> <section id="H988C319E183549CE826B74E319B7DB55"><enum>20007.</enum><header>Enhancement of Department of Defense resources for air superiority</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="H75FDBF2C6026465EABB763386183575F"><enum>(1)</enum><text display-inline="yes-display-inline">$3,150,000,000 to increase F–15EX aircraft production;</text></paragraph> <paragraph id="HAF75853088C34B8AAB467E074E7F72AF"><enum>(2)</enum><text>$361,220,000 to prevent the retirement of F–22 aircraft;</text></paragraph>
<paragraph id="H32268181C51C454EA3399C56B15E49A4"><enum>(3)</enum><text>$127,460,000 to prevent the retirement of F–15E aircraft;</text></paragraph> <paragraph id="H8BFE7B68B5204EF398CF273968426CFA"><enum>(4)</enum><text display-inline="yes-display-inline">$50,000,000 to accelerate installation of F–16 electronic warfare capability;</text></paragraph>
<paragraph id="H87B5D32AACB44FCEABA2E5FD688BE1F8"><enum>(5)</enum><text>$116,000,000 for C–17A Mobility Aircraft Connectivity;</text></paragraph> <paragraph id="H25F095FA360442AA99871E84CE16C0E6"><enum>(6)</enum><text>$84,000,000 for KC–135 Mobility Aircraft Connectivity;</text></paragraph>
<paragraph id="H2414F0231BB64792A9B364CE388C8F12"><enum>(7)</enum><text>$440,000,000 to increase C–130J production;</text></paragraph> <paragraph id="H57E0073EDCD8468387BCAC7BBF52E969"><enum>(8)</enum><text>$474,000,000 to increase EA–37B production;</text></paragraph>
<paragraph id="H248B824ED60242B0B39571FF12023C09"><enum>(9)</enum><text display-inline="yes-display-inline">$300,000,000 for Air Force classified programs;</text></paragraph> <paragraph id="H3B0E96DE19FB478CB729AAFBA9FFAF32"><enum>(10)</enum><text>$678,000,000 to accelerate the Collaborative Combat Aircraft program;</text></paragraph>
<paragraph id="H706B936F214E4AAC961EC8AE28F2E6F0"><enum>(11)</enum><text>$400,000,000 to accelerate production of the F–47 aircraft;</text></paragraph> <paragraph id="H043CE48766504D4F819DA1353B20089D"><enum>(12)</enum><text display-inline="yes-display-inline">$230,000,000 for Navy classified programs;</text></paragraph>
<paragraph id="H8F7549B0F6404B059D7B1CF1B16F0B1A"><enum>(13)</enum><text display-inline="yes-display-inline">$500,000,000 accelerate the FA/XX aircraft;</text></paragraph> <paragraph id="H27AA34874A0B432D91FC30C6F67D6741"><enum>(14)</enum><text>$100,000,000 for production of Advanced Aerial Sensors;</text></paragraph>
<paragraph id="HC59879E4DFCD4529AA52E13F97450CF1" commented="no"><enum>(15)</enum><text>$160,000,000 to accelerate V–22 nacelle improvement; and</text></paragraph> <paragraph id="H0E984122C5CC4400B2B48835847234FD"><enum>(16)</enum><text>$100,000,000 to accelerate production of MQ–25 aircraft.</text></paragraph></section>
<section id="H2C57D998305344ABA442F004E13FF49A"><enum>20008.</enum><header>Enhancement of resources for nuclear forces</header>
<subsection id="HF3E09D86488842229FC1A6CA5762C24D"><enum>(a)</enum><header>DOD appropriations</header><text>In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text> <paragraph id="H15F35A82ADB74038BC974F21E0474115"><enum>(1)</enum><text display-inline="yes-display-inline">$1,500,000,000 for risk reduction activities for the Sentinel intercontinental ballistic missile program;</text></paragraph>
<paragraph id="HF3E91E34583C4189BBF1C8E2A954C0FE"><enum>(2)</enum><text display-inline="yes-display-inline">$4,500,000,000 for acceleration of the B–21 long-range bomber aircraft;</text></paragraph> <paragraph id="H73BC40F47CD64D5E8E900410D44D3D97"><enum>(3)</enum><text>$500,000,000 for improvements to the Minuteman III intercontinental ballistic missile system;</text></paragraph>
<paragraph id="HD56AC3F2EC8A48C1B3D2C510217B9E27"><enum>(4)</enum><text>$100,000,000 for capability enhancements to intercontinental ballistic missile reentry vehicles;</text></paragraph> <paragraph id="HB887ECFE1F764E6E8BEABABD59351803"><enum>(5)</enum><text>$148,000,000 for the expansion of D5 missile motor production;</text></paragraph>
<paragraph id="H38258C66486F48ABAE11BD50C9E80587"><enum>(6)</enum><text>$400,000,000 to accelerate the development of Trident D5LE2 submarine-launched ballistic missiles;</text></paragraph> <paragraph id="H84A8DD6AB1864AAA8D812BA4EDEB679B"><enum>(7)</enum><text>$2,000,000,000 to accelerate the development, procurement, and integration of the nuclear-armed sea-launched cruise missile;</text></paragraph>
<paragraph id="H6AA02C391D32463DA65DE00416B96FD1"><enum>(8)</enum><text>$22,000,000 to enhance nuclear deterrence through classified programs;</text></paragraph> <paragraph id="H02486325E3484675950598FA9EAADC34"><enum>(9)</enum><text>$168,000,000 to accelerate the production of the Survivable Airborne Operations Center program;</text></paragraph>
<paragraph id="HA9EA5F52E3B041EFA17F78A81AEFA727" commented="no"><enum>(10)</enum><text>$65,000,000 to accelerate the modernization of nuclear command, control, and communications; and</text></paragraph> <paragraph id="H1FB326A335774AA39E1092626DE485D6"><enum>(11)</enum><text>$210,300,000 for the increased production of MH–139 helicopters.</text></paragraph></subsection>
<subsection id="HA85456FE6C1E424092C26B3FECB7D891"><enum>(b)</enum><header>NNSA appropriations</header><text>In addition to amounts otherwise available, there are appropriated to the Administrator of the National Nuclear Security Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text> <paragraph id="H13922B06FC6A4D12B59203FD3FB9FC59"><enum>(1)</enum><text display-inline="yes-display-inline">$200,000,000 to perform National Nuclear Security Administration Phase 1 studies pursuant to section 3211 of the National Nuclear Security Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/50/2401">50 U.S.C. 2401</external-xref>);</text></paragraph>
<paragraph id="H5710FF071A9848729F8C6BA82DCE7D56"><enum>(2)</enum><text display-inline="yes-display-inline">$540,000,000 to address deferred maintenance and repair needs of the National Nuclear Security Administration pursuant to section 3211 of the National Nuclear Security Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/50/2401">50 U.S.C. 2401</external-xref>);</text></paragraph> <paragraph id="HE8DFF3E4F17C4F8AA3BB65D6FBC73182"><enum>(3)</enum><text display-inline="yes-display-inline">$1,000,000,000 to accelerate the construction of National Nuclear Security Administration facilities pursuant to section 3211 of the National Nuclear Security Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/50/2401">50 U.S.C. 2401</external-xref>);</text></paragraph>
<paragraph id="HEDB2E4CED7384130AB8AD5753ABD6F22"><enum>(4)</enum><text display-inline="yes-display-inline">$400,000,000 to accelerate the development, procurement, and integration of the warhead for the nuclear-armed sea-launched cruise missile pursuant to section 3211 of the National Nuclear Security Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/50/2401">50 U.S.C. 2401</external-xref>);</text></paragraph> <paragraph id="H6BA23435A7EE472A9CC5B125FD61B5FA"><enum>(5)</enum><text display-inline="yes-display-inline">$500,000,000 to accelerate primary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/50/2401">50 U.S.C. 2401</external-xref>);</text></paragraph>
<paragraph id="H781F7D1C882640888489E2103451B9FF" commented="no"><enum>(6)</enum><text display-inline="yes-display-inline">$500,000,000 to accelerate secondary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/50/2401">50 U.S.C. 2401</external-xref>); and</text></paragraph> <paragraph id="H803405690AA24A7BA2291B88BE9727C4"><enum>(7)</enum><text display-inline="yes-display-inline">$100,000,000 to accelerate domestic uranium enrichment centrifuge deployment for defense purposes pursuant to section 3211 of the National Nuclear Security Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/50/2401">50 U.S.C. 2401</external-xref>).</text></paragraph></subsection></section>
<section id="HF78B35E7B13645558479B6EF029159ED"><enum>20009.</enum><header>Enhancement of Department of Defense resources to improve capabilities of United States Indo-Pacific Command</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text> <paragraph id="HF4A3B17A3BEC4674BCF5FC547D8D6BAD"><enum>(1)</enum><text>$365,000,000 for Army exercises and operations in the Western Pacific area of operations; </text></paragraph>
<paragraph id="HD58F60431AEE4CD4B635FA6AB746EADB"><enum>(2)</enum><text>$53,000,000 for Special Operations Command exercises and operations in the Western Pacific area of operations; </text></paragraph> <paragraph id="H8731C058672E4578B0256792185D883A"><enum>(3)</enum><text>$47,000,000 for Marine Corps exercises and operations in Western Pacific area of operations; </text></paragraph>
<paragraph id="H741C1C2EC682408EBBC5EBAA902CC6B1"><enum>(4)</enum><text>$90,000,000 for Air Force exercises and operations in Western Pacific area of operations; </text></paragraph> <paragraph id="HE97FC14585994CE695D8592B6BA4B34A"><enum>(5)</enum><text>$532,600,000 for the Pacific Air Force biennial large-scale exercise; </text></paragraph>
<paragraph id="H9CEF13623906446B8735D7C5F53CEF7E"><enum>(6)</enum><text>$19,000,000 for the development of naval small craft capabilities;</text></paragraph> <paragraph id="HCEB34924E8BB412EA86EEA2DB711F8BD"><enum>(7)</enum><text display-inline="yes-display-inline">$35,000,000 for military additive manufacturing capabilities in the United States Indo-Pacific Command area of operations west of the international dateline;</text></paragraph>
<paragraph id="H1C021E3CAE154D87B6F15217BC9E4621"><enum>(8)</enum><text>$450,000,000 for the development of airfields within the area of operations of United States Indo-Pacific Command; </text></paragraph> <paragraph id="H2007394CEF3C42B3B25624D055DE556E"><enum>(9)</enum><text display-inline="yes-display-inline">$1,100,000,000 for development of infrastructure within the area of operations of United States Indo-Pacific Command;</text></paragraph>
<paragraph id="HD9DD51DBD09249A39BC4F8162DDE097B"><enum>(10)</enum><text>$124,000,000 for mission networks for United States Indo-Pacific Command; </text></paragraph> <paragraph id="H36E76CA83AE949BABC82644F0E691BF7"><enum>(11)</enum><text>$100,000,000 for Air Force regionally based cluster pre-position base kits;</text></paragraph>
<paragraph id="HCC8493F6E5254EFEBC81F0FC873A68A7"><enum>(12)</enum><text>$25,000,000 to explore the revitalization of existing Arctic naval infrastructure; </text></paragraph> <paragraph id="H3800840F91EC4C6E8251608866758408"><enum>(13)</enum><text>$90,000,000 for the accelerated development of non-kinetic capabilities; </text></paragraph>
<paragraph id="H1E4A108ED9424CE48943A3A4FA164EC9"><enum>(14)</enum><text display-inline="yes-display-inline">$20,000,000 for United States Indo-Pacific Command military exercises;</text></paragraph> <paragraph id="H7DF23DF4A5AB431BAB2CB3A1F7ADDD5B"><enum>(15)</enum><text>$23,000,000 for anti-submarine sonar arrays; </text></paragraph>
<paragraph id="H88AE181B435244478B965F6ADBDC106B"><enum>(16)</enum><text>$30,000,000 for surveillance and reconnaissance capabilities for United States Africa Command; </text></paragraph> <paragraph id="HFA4FB7E410134BA4BD4252CE09B5F5F5"><enum>(17)</enum><text>$30,000,000 for surveillance and reconnaissance capabilities for United States Indo-Pacific Command; </text></paragraph>
<paragraph id="H7B3BF195A87345C79321FB7B2C29452F"><enum>(18)</enum><text>$400,000,000 for the development, coordination, and deployment of economic competition effects within the Department of Defense; </text></paragraph> <paragraph id="HE5F424AC26FD467EB23D9BFF55D129F3"><enum>(19)</enum><text>$10,000,000 for the expansion of Department of Defense workforce for economic competition;</text></paragraph>
<paragraph id="HD8D04760D8804924AAFE8EC884B75F5D"><enum>(20)</enum><text>$1,000,000,000 for offensive cyber operations; </text></paragraph> <paragraph id="HB0EB7370852C466ABF3D52749D525F2D"><enum>(21)</enum><text display-inline="yes-display-inline">$500,000,000 for personnel and operations costs associated with forces assigned to United States Indo-Pacific Command; </text></paragraph>
<paragraph id="HFA35269200724E4D8951737A863B7AC3"><enum>(22)</enum><text>$300,000,000 for the procurement of mesh network communications capabilities for Special Operations Command Pacific;</text></paragraph> <paragraph id="HFE979BE2160B4235A3FC9E34D8ABBACB"><enum>(23)</enum><text display-inline="yes-display-inline">$850,000,000 for the replenishment of military articles;</text></paragraph>
<paragraph id="H92389B6390514D769C72865C7D89A360"><enum>(24)</enum><text display-inline="yes-display-inline">$200,000,000 for acceleration of Guam Defense System program;</text></paragraph> <paragraph id="HAAF6144AE8D649EEAD21B61491C74339"><enum>(25)</enum><text>$4,029,000,000 for classified military space superiority programs;</text></paragraph>
<paragraph id="H7C9FC99F490544A6BEA436033BFE4B52"><enum>(26)</enum><text>$68,000,000 for Space Force facilities improvements;</text></paragraph> <paragraph id="H4B480E781D3C4445892E4739A336A8B4"><enum>(27)</enum><text>$100,000,000 for ground moving target indicator military satellites; and</text></paragraph>
<paragraph id="HDF8FD44C8F594B45912AFD5FFFF07D2F"><enum>(28)</enum><text>$528,000,000 for DARC and SILENTBARKER military space situational awareness programs.</text></paragraph></section> <section id="H6C1AE872577E4A9493C211712D840454"><enum>20010.</enum><header>Enhancement of Department of Defense resources for improving the readiness of the Armed Forces</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="H0C13FE0C6F374C7B8D9B763B6CB7C45D"><enum>(1)</enum><text>$1,400,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool;</text></paragraph> <paragraph id="HEEB183A385A3452FB99A7597AA3438AC"><enum>(2)</enum><text>$700,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool for amphibious ships;</text></paragraph>
<paragraph id="H3C91FB635DE4431EAA5DF021474AF91C"><enum>(3)</enum><text display-inline="yes-display-inline">$2,118,000,000 for spares and repairs to keep Air Force aircraft mission capable;</text></paragraph> <paragraph id="H4FB3A3B6BB234EDB8E85EB1B21933431"><enum>(4)</enum><text>$1,500,000,000 for Army depot modernization and capacity enhancement;</text></paragraph>
<paragraph id="H9F471A86C2444C208130CDF62E00C125"><enum>(5)</enum><text>$2,000,000,000 for Navy depot and shipyard modernization and capacity enhancement; </text></paragraph> <paragraph id="H612ED5FBF8C4444881C80208A05E7B92"><enum>(6)</enum><text display-inline="yes-display-inline">$250,000,000 for Air Force depot modernization and capacity enhancement;</text></paragraph>
<paragraph id="H18C0AB5D7B31496CBD22A4D98A9C203F"><enum>(7)</enum><text>$1,391,000,000 for the enhancement of Special Operations Command equipment and readiness;</text></paragraph> <paragraph id="H100310ED4537468F8FAFDC7EDB45F90D"><enum>(8)</enum><text>$500,000,000 for National Guard unit readiness; </text></paragraph>
<paragraph id="HEE5FE804C741420CAEFBAC2D37C56E1A"><enum>(9)</enum><text>$400,000,000 for Marine Corps readiness and capabilities;</text></paragraph> <paragraph id="H973911C4A72747BFA1DA952BA82CCEC7"><enum>(10)</enum><text>$20,000,000 for upgrades to Marine Corps utility helicopters; </text></paragraph>
<paragraph id="H4B1C2AFA536C405590635EB46E1FFF1C"><enum>(11)</enum><text display-inline="yes-display-inline">$310,000,000 for next-generation vertical lift, assault, and intra-theater aeromedical evacuation aircraft; </text></paragraph> <paragraph id="HF64C3E64729146D0AE7277DD50F6D068"><enum>(12)</enum><text>$75,000,000 for the procurement of anti-lock braking systems for Army wheeled transport vehicles;</text></paragraph>
<paragraph id="H5A474C8FC5604B91A749C471562ADF4D"><enum>(13)</enum><text>$230,000,000 for the procurement of Army wheeled combat vehicles;</text></paragraph> <paragraph id="H21E6B861F79F4495A961E59BA85DB70A"><enum>(14)</enum><text>$63,000,000 for the development of advanced rotary-wing engines; </text></paragraph>
<paragraph id="HFEE54FA144C947CA976D96D7F477982F"><enum>(15)</enum><text>$241,000,000 for the development, procurement, and integration of Marine Corps amphibious vehicles; </text></paragraph> <paragraph id="HA1C3FB0BA68845BB966C394C266BE37D"><enum>(16)</enum><text>$250,000,000 for the procurement of Army tracked combat transport vehicles; and</text></paragraph>
<paragraph id="H5E5AC3BD1708492A8DF3CFC447B6AF54"><enum>(17)</enum><text>$98,000,000 for additional Army light rotary-wing capabilities.</text></paragraph></section> <section id="H04E7A43CD5E9427FA41CA2A2CC5B5562"><enum>20011.</enum><header>Improving Department of Defense border support and counter-drug missions</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $5,000,000,000 for activities in support of border operations, including deployment of military personnel, operations and maintenance, counter-narcotics and counter-transnational criminal organization mission support, the operation of and construction in national defense areas, the temporary detention of migrants on Department of Defense installations.</text></section>
<section id="H0634667E325F47099FC3CD29FAF568AA"><enum>20012.</enum><header>Department of Defense oversight</header>
<subsection id="H21E41362702D489A9418953CB41569E2"><enum>(a)</enum><header>Office of the Secretary of Defense</header><text>In addition to amounts otherwise available, there is appropriated to the Inspector General of the Department of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2029, to carry out this section.</text></subsection> <subsection id="HC1163BDDFC1D464D998861AD5F1D931F"><enum>(b)</enum><header>Oversight of programs</header><text>The Inspector General shall monitor Department of Defense activities for which funding is appropriated in this title, including—</text>
<paragraph id="HD054B72667644065B96DD74D9D684CCF"><enum>(1)</enum><text>programs with mutual technological dependencies;</text></paragraph> <paragraph id="H9A709ECD56F344A88C222AD4BBB633C2"><enum>(2)</enum><text>programs with related data management and data ownership considerations;</text></paragraph>
<paragraph id="H9824B6CE836345B9A78E25BFB5FAF6D8"><enum>(3)</enum><text>programs particularly vulnerable to supply chain disruptions and long lead time components; and</text></paragraph> <paragraph id="H7C6116DEB12F4645B8E82C99454E193F"><enum>(4)</enum><text>programs involving classified matters.</text></paragraph></subsection>
<subsection id="H452FC1A53DF849BBA0B2D1DECE829031"><enum>(c)</enum><header>Classified matters</header><text>Not later than 30 days after the date of the enactment of this title, the Chairs of the Committees on Armed Services of the Senate and House of Representatives shall jointly transmit to the Department of Defense a classified memorandum regarding amounts made available in this title related to classified matters.</text></subsection></section> <section id="HF1F3F83BE17D48E7AB318DBCC87301E9"><enum>20013.</enum><header>Military construction projects authorized</header> <subsection id="HE3F0A813B58143CE8A9CB1984D66A17F"><enum>(a)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">Funds are hereby authorized to be appropriated for military construction, land acquisition, and military family housing functions of each military department (as defined in section 101(a) of title 10, United States Code) as specified in this title.</text></subsection>
<subsection id="H69A30703C1DF45DDB14D58573CC6EEC7"><enum>(b)</enum><header>Spending plan</header><text display-inline="yes-display-inline">Not later than 30 days after the date of the enactment of this title, the Secretary of each military department shall submit to the Committees on Armed Services of the Senate and House of Representatives a detailed spending plan by project for all funds made available by this title to be expended on military construction projects.</text></subsection></section> <section id="HD2254F3A01974867944C24B2B8C7FED3"><enum>20014.</enum><header>Plan required</header> <subsection id="HDADE9BDE57B2466996DA304D60FD3844"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 45 days after the date of the enactment of this title, the Secretary of Defense and the Administrator of the National Nuclear Security Agency, as appropriate, shall submit to the Committees on Armed Services of the Senate and the House of Representatives a spending, expenditure, or operating plan for amounts made available pursuant to this title. Such plan shall include the same level of detail as required for the report submitted under section 8007 of division A of the Further Consolidated Appropriations Act, 2024 (<external-xref legal-doc="public-law" parsable-cite="pl/118/47">Public Law 118–47</external-xref>; 138 Stat. 482).</text></subsection>
<subsection id="HE3DEF12CC10846AAA8DF3679F89E805A"><enum>(b)</enum><header>Expenditure report</header><text display-inline="yes-display-inline">Not later than one year after the date of enactment of this title, and annually thereafter, the Secretary and the Administrator of the National Nuclear Security Agency, as appropriate, shall submit to the Committees on Armed Services of the Senate and the House of Representative a report that includes a description of any expenditures made pursuant to the plan required under subsection (a).</text></subsection></section> <section id="H54F514B996C340FBBAACCEE587EADED4"><enum>20015.</enum><header>Limitation on availability of funds</header><text display-inline="no-display-inline">The funds made available under this title may not be used to enter into any agreement under which any payment of such funds could be outlaid or disbursed after September 30, 2034.</text></section>
<enum>III</enum><header>Committee on Education and Workforce</header>
<subtitle id="H3BF7D50C57584B438A691D0CDB1913D3"><enum>A</enum><header>Student Eligibility</header>
<section id="H4412BDF2B8F3496FA2F6B2F2C1D6321D" section-type="subsequent-section" display-inline="no-display-inline"><enum>30001.</enum><header>Student eligibility</header>
<subsection id="H2991BF2140E2414D960C7DA40CA1E523"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 484(a)(5) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C. 1091(a)(5)</external-xref>) is amended to read as follows:</text> <quoted-block style="OLC" id="H3AE32E78BFA94D47B7288F1A65E38475" display-inline="no-display-inline"> <paragraph id="HE64653E11D074900895B9E1252D3506D"><enum>(5)</enum><text display-inline="yes-display-inline">be—</text>
<subparagraph id="HF99C9613365348658CBB6EA6CA54E553"><enum>(A)</enum><text>a citizen or national of the United States;</text></subparagraph> <subparagraph id="HFD4A2BD6ADFA481AB8001FAEB136CBDC"><enum>(B)</enum><text>an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1101">8 U.S.C. 1101 et seq.</external-xref>);</text></subparagraph>
<subparagraph id="H180833A5B57B42F18AF329896E5F05AC"><enum>(C)</enum><text display-inline="yes-display-inline">an alien who—</text> <clause id="HBFFF9125065B4048AAAA8078D532AC69"><enum>(i)</enum><text>is a citizen or national of the Republic of Cuba;</text></clause>
<clause id="HED057C19ED5A441D9C146DDF37EDA600"><enum>(ii)</enum><text display-inline="yes-display-inline">is the beneficiary of an approved petition under section 203(a) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1153">8 U.S.C. 1153(a)</external-xref>);</text></clause> <clause id="H9123362BA1D64F4CB348CEFFE89D971F"><enum>(iii)</enum><text>meets all eligibility requirements for an immigrant visa but for whom such a visa is not immediately available;</text></clause>
<clause id="HA1BD2F20CA2340B79A5961314F56800E"><enum>(iv)</enum><text>is not otherwise inadmissible under section 212(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1182">8 U.S.C. 1182(a)</external-xref>); and</text></clause> <clause id="HA285146825ED468BA804DDEE89A0FFFC"><enum>(v)</enum><text>is physically present in the United States pursuant to a grant of parole in furtherance of the commitment of the United States to the minimum level of annual legal migration of Cuban nationals to the United States specified in the U.S.-Cuba Joint Communiqué on Migration, done at New York September 9, 1994, and reaffirmed in the Cuba-United States: Joint Statement on Normalization of Migration, Building on the Agreement of September 9, 1994, done at New York May 2, 1995; or </text></clause></subparagraph>
<subparagraph id="HD4B7CD52EC6A4127B9D4106097E385C9" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/8/1612">8 U.S.C. 1612(b)(2)(G)</external-xref>); and</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4DBF6E34BD3E4E6D9750513AF7D0C11C" commented="no"><enum>(b)</enum><header>Effective date and application</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall take effect on July 1, 2025, and shall apply with respect to award year 2025–2026 and each subsequent award year, as determined under the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001 et seq.</external-xref>).</text></subsection></section>
<section id="H3A8C79A9C5FD48DBA9B1557333A4448B"><enum>30002.</enum><header>Amount of need; cost of attendance; median cost of college</header>
<subsection id="HCC75D41638E44D96A4FE48EA93176331"><enum>(a)</enum><header>Amount of need</header><text>Section 471 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087kk">20 U.S.C. 1087kk</external-xref>) is amended by amending paragraph (1) to read as follows:</text> <quoted-block style="OLC" id="H008D3E8C231B456A84B32B5DBED13C8E"> <paragraph id="H6AFCF6E8A7AB4B50BC6CEF90BDD0D5C1"><enum>(1)</enum> <subparagraph id="HA00EF151F5654FECB8C064D422437011" commented="no" display-inline="yes-display-inline"><enum>(A)</enum><text>for award year 2025–2026, the cost of attendance of such student; or</text></subparagraph>
<subparagraph id="H29C3AE520312420DB2019D782E3BBC1E" indent="up1"><enum>(B)</enum><text>for award year 2026–2027, and each subsequent award year, the median cost of college of the program of study of such student, minus</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HA80AD5CC674045AFB960256C9E82968C"><enum>(b)</enum><header>Cost of attendance of a program of study</header> <paragraph id="H2ECF00846EFC4E7E87B9EEF18CA0A845"><enum>(1)</enum><header>Determination of cost of attendance of a program of study</header> <subparagraph id="HB90528E902054AAB9E9CBD168B5DAB06"><enum>(A)</enum><header>In general</header><text>Section 472(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087ll">20 U.S.C. 1087ll(a)</external-xref>) is amended—</text>
<clause id="HDE4959FDFE6A493E898D4D73BACAE644"><enum>(i)</enum><text>in paragraph (1), by striking <quote>carrying the same academic workload</quote> and inserting <quote>enrolled in the same program of study</quote>;</text></clause> <clause id="H26C7681CFECD4177B0E592610AA9F27D"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>same course of study</quote> and inserting <quote>same program of study</quote>; and</text></clause>
<clause id="HE02BAC7D098442BBB02151AECA9D0201"><enum>(iii)</enum><text>in paragraph (14), by striking <quote>program</quote> and inserting <quote>program of study</quote>.</text></clause></subparagraph> <subparagraph id="HE1946C1106D945648AC047972F9EB898"><enum>(B)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by subparagraph (A) shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year, as determined under the Higher Education Act of 1965.</text></subparagraph></paragraph>
<paragraph id="H603EED66053444BB8C47125AF5A714B6"><enum>(2)</enum><header>Disclosure</header><text>Section 472(c) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087ll">20 U.S.C. 1087ll(c)</external-xref>) is amended—</text> <subparagraph id="H8A68322784EA466B8A671024A7B32813"><enum>(A)</enum><text>by inserting <quote>of each program of study at the institution</quote> after <quote>cost of attendance</quote>; and </text></subparagraph>
<subparagraph id="HA344D2247DCC44B38AD3C062B1E051EC"><enum>(B)</enum><text>by striking <quote>of the institution</quote> and inserting <quote>of such programs of study at the institution</quote>.</text></subparagraph></paragraph></subsection> <subsection id="H9EBA7726FD244AB98A2E9486D6E84923"><enum>(c)</enum><header>Determination of median cost of college</header><text>Part F of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087kk">20 U.S.C. 1087kk</external-xref>) is amended by inserting after section 472 (as so amended), the following:</text>
<quoted-block style="OLC" id="H068F072280F84B87AAC5ED30D6A3DCEB">
<section id="HE7286808D1554299B858CC424D2A51DE"><enum>472A.</enum><header>Determination of median cost of college</header>
<subsection id="H0272BBB3D10F45C880B2E104C2D66C89"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For the purpose of this title, the term <term>median cost of college</term>, when used with respect to a program of study, offered by one or more institutions of higher education for an award year, means the median of the cost of attendance of the program of study (as determined under section 472) across all institutions of higher education offering such a program of study for the preceding award year.</text></subsection> <subsection id="H14D7112A7F77457F8A3C6561869681D3"><enum>(b)</enum><header>Program of study defined</header><text>In this section and section 472, and part D:</text>
<paragraph id="HACCB5569D52F4BE2A7DC2B9C4137F5F4" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>program of study</term>—</text> <subparagraph id="H00CE84C1494F49ADA822960509375E95"><enum>(A)</enum><text>means an eligible program at an institution of higher education that is classified by a combination of—</text>
<clause id="H4E4AFA4827AB4291B1D50CA8206F6925" commented="no"><enum>(i)</enum><text>one or more CIP codes; and</text></clause> <clause id="HEADD99F7516E423B91A742CDCB2718FB" commented="no"><enum>(ii)</enum><text>one credential level, determined by the credential awarded upon completion of the program; and</text></clause></subparagraph>
<subparagraph id="H5DDF02B8E2D644A6A60C8F1F792B6C59"><enum>(B)</enum><text>does not include a program of study abroad.</text></subparagraph></paragraph> <paragraph id="H2E605413BA214434AD4D73DABA204A8B" commented="no"><enum>(2)</enum><header>CIP code</header><text display-inline="yes-display-inline">The term <term>CIP code</term> means the six-digit taxonomic identification code assigned by an institution of higher education to a specific program of study at the institution, determined by the institution of higher education in accordance with the Classification of Instructional Programs published by the National Center for Education Statistics. </text></paragraph>
<paragraph id="H673E202C334E41B5876DB59FCEA46189" commented="no"><enum>(3)</enum><header>Credential level</header>
<subparagraph id="HF590A9EE99A84E0FA5F459B598FB5ECF" commented="no"><enum>(A)</enum><header>In general</header><text>The term ‘credential level’ means the level of the degree or other credential awarded by an institution of higher education to students who complete a program of study of the institution. Each degree or other credential awarded by an institution shall be categorized by the institution as either undergraduate credential level or graduate credential level.</text></subparagraph> <subparagraph id="HABC4F617D9C042E7A946610EAAC04423" commented="no"><enum>(B)</enum><header>Undergraduate credential</header><text>When used with respect to a credential or credential level, the term ‘undergraduate credential’ includes credentials such as an undergraduate certificate, an associate degree, a bachelor’s degree, and a post-baccalaureate certificate (including the coursework specified in paragraphs (3)(B) and (4)(B) of section 484(b)).</text></subparagraph>
<subparagraph id="H93DB37CC027C46B79AAEE4BDB289B4A4" commented="no"><enum>(C)</enum><header>Graduate credential</header><text>When used with respect to a credential or credential level, the term ‘graduate credential’ includes credentials such as a master’s degree, a doctoral degree, a professional degree, and a postgraduate certificate.</text></subparagraph></paragraph></subsection></section><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="HF157BE2029924299A62CF6B7E392DE1E" commented="no"><enum>(d)</enum><header>Exemption of certain assets</header> <paragraph id="H6C78AB5E75C4456BAEDD1E782EECD8AE" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 480(f)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087vv">20 U.S.C. 1087vv(f)(2)</external-xref>) is amended—</text>
<subparagraph id="H8D75393553C742F287B8431147A2016E" commented="no"><enum>(A)</enum><text>by striking <quote>net value of the</quote> and inserting the following: </text> <quoted-block style="OLC" display-inline="yes-display-inline" id="HBEA4648093AF4F9A990742B92C051756"><text>net value of—</text>
<subparagraph id="H655A9AC41F0048689C6CA7F5F1294796" commented="no"><enum>(A) </enum><text display-inline="yes-display-inline">the</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H44B735FA412C487DA096232551C120A4" commented="no"><enum>(B)</enum><text>by striking the period at the end and inserting a semicolon; and</text></subparagraph>
<subparagraph id="H6D150BD29AF9461FB8FFC0F534EF814C" commented="no"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H772115C06BED4E34A71D8925C3623342"> <subparagraph id="H96F6F748F82A4FC9B5582824F29B1DF3" commented="no"><enum>(B)</enum><text>a family farm on which the family resides; or</text></subparagraph>
<subparagraph id="H2F7A947EBB9E41BB89FBAE5587BD140C" commented="no"><enum>(C)</enum><text>a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H6B09E17ED8F04914A6A68FA86424D247"><enum>(2)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by paragraph (1) shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year, as determined under the Higher Education Act of 1965.</text></paragraph></subsection></section></subtitle>
<subtitle id="HBCD9388D63A44985B5FE662643F54DEE"><enum>B</enum><header>Loan Limits</header>
<section id="H3782D96EE79D40BBB7B56F8DE91798F4" section-type="subsequent-section" display-inline="no-display-inline"><enum>30011.</enum><header>Loan Limits</header>
<subsection id="H0DA585354DAD4CF3B24DF3D8DE83C1B3"><enum>(a)</enum><header>Terminations of and restrictions on loan authority</header>
<paragraph id="H27741025AF8E4C4A9D7C9255AD0FECB5"><enum>(1)</enum><header>Termination of authority to make subsidized loans to undergraduate students</header><text display-inline="yes-display-inline">Section 455(a)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)(3)</external-xref>) is amended by adding at the end the following: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H3BE17CED93CD439093B2EA0343245F46"> <subparagraph id="H1D4DC66914274D50A94E95AAD8A38D6E"><enum>(C)</enum><header>Termination of authority to make subsidized loans to undergraduate students</header><text display-inline="yes-display-inline">Notwithstanding any provision of this part or part B, except as provided in paragraph (4), for any period of instruction beginning on or after July 1, 2026—</text>
<clause id="H0348F8E4B48A443E93C2EA2191C5B15E"><enum>(i)</enum><text display-inline="yes-display-inline">an undergraduate student shall not be eligible to receive a Federal Direct Stafford loan under this part; and</text></clause> <clause id="HA14FBFA50FE543129C633797807ED03B"><enum>(ii)</enum><text>the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under paragraph (5)). </text></clause></subparagraph><after-quoted-block>. </after-quoted-block></quoted-block></paragraph>
<paragraph id="HC8201ABEB0844A08BACBEF3732CFD8F3" commented="no"><enum>(2)</enum><header>Termination of authority to make Federal direct PLUS loans to any student borrower</header><text>Section 455(a)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)(3)</external-xref>) is further amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HABA3F7B579D44152AFEF8458AC88021B"> <subparagraph id="HF706EEE4EA6A4731B3D3366603219FF1" commented="no"><enum>(D)</enum><header>Termination of authority to make Federal Direct PLUS Loans to any student borrower</header><text display-inline="yes-display-inline">Notwithstanding any provision of this part or part B, except as provided in paragraph (4), for any period of instruction beginning on or after July 1, 2026, a graduate student or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part.</text></subparagraph><after-quoted-block>. </after-quoted-block></quoted-block></paragraph>
<paragraph id="HC86198B7900C470B8EA0F8F0B9F1BA70"><enum>(3)</enum><header>Restriction on authority to make Federal direct PLUS loans to any parent borrower</header><text>Section 455(a)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)(3)</external-xref>) is further amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H5C57735EB7AF433691D4506CA13638EB"> <subparagraph id="HD283A0ED41544CFCB437AD0EF9E88AFC" commented="no"><enum>(E)</enum><header>Restriction on authority to make Federal Direct PLUS Loans to any parent borrower</header> <clause id="H97ABC961DCCB43069BABB73A62CC6212"><enum>(i)</enum><header>In general</header><text>Notwithstanding any provision of this part or part B, except as provided in clause (ii) and paragraph (4), for any period of instruction beginning on or after July 1, 2026, a parent, on behalf of a dependent student, shall not be eligible to receive a Federal Direct PLUS Loan under this part.</text></clause>
<clause id="H001EFC2EE7C6400695F9F4432B842A79"><enum>(ii)</enum><header>Exception</header><text display-inline="yes-display-inline">A parent may receive a Federal Direct PLUS Loan under this part, on behalf of a dependent student, in any academic year (as defined in section 481(a)(2)) or its equivalent if—</text> <subclause id="HC2408F81F5C7480F87D2F02FC5B2C02D"><enum>(I)</enum><text>such student borrows the maximum annual amount of Federal Direct Unsubsidized Stafford loans such student may borrow in such academic year; and</text></subclause>
<subclause id="H406BE246F344460FA5020C2590371013"><enum>(II)</enum><text>such maximum annual amount is less than the cost of attendance of the program of study of such student.</text></subclause></clause></subparagraph><after-quoted-block>. </after-quoted-block></quoted-block></paragraph> <paragraph id="HC555E854BF43477DA28C76B96F99F194"><enum>(4)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Section 455(a)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)(3)</external-xref>) is further amended—</text>
<subparagraph id="H6A5166B32DC74A23916F455DC972A53E"><enum>(A)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">Termination of authority to make interest subsidized loans to graduate and professional students</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Terminations of and restrictions on loan authority</header-in-text></quote>; </text></subparagraph> <subparagraph id="H1CEBDA5632DF498EBC61769BFE9A7CAB"><enum>(B)</enum><text>in subparagraph (A)—</text>
<clause id="H6D39E0F432D146DD8B5425C4089F4D9F"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="subparagraph" style="OLC">In general</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Termination of authority to make subsidized loans to graduate and professional students</header-in-text></quote>;</text></clause> <clause id="H6076476FC0804B0AA8A0CE539A0B22B4"><enum>(ii)</enum><text>in the matter preceding clause (i), by striking <quote>beginning on or after July 1, 2012</quote>;</text></clause>
<clause id="HFD047145B73F40639AE06AA8C8FCB5AE"><enum>(iii)</enum><text>in clause (i), by striking <quote>a graduate</quote> and inserting <quote>beginning on or after July 1, 2012, a graduate</quote>; and </text></clause> <clause id="H26E143EF91FF442C91DCFF542BF0F3DE"><enum>(iv)</enum><text>in clause (ii), by striking <quote>the maximum annual amount of Federal</quote> and inserting <quote>beginning on or after July 1, 2012, and ending June 30, 2026, the maximum annual amount of Federal</quote>; and</text></clause></subparagraph>
<subparagraph id="H544D46613DEE45378DFE016801ADC92A"><enum>(C)</enum><text>in subparagraph (B)—</text> <clause id="H857CAEA1B9854CC3B41EC5968F3A0B80"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="subparagraph" style="OLC">Exception</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Exception for subsidized loans to individuals enrolled in certain course work</header-in-text></quote>. </text></clause>
<clause id="HE064770522594810866A4777F6D154B4" commented="no"><enum>(ii)</enum><text>by striking <quote>Subparagraph (A)</quote> and inserting <quote>For any period of instruction beginning on or after July 1, 2012, and ending June 30, 2026, subparagraph (A)</quote>.</text></clause></subparagraph></paragraph></subsection> <subsection id="H9065363A733C4B2D96109E380421BCBC"><enum>(b)</enum><header>Interim rules for enrolled borrowers</header><text display-inline="yes-display-inline">Section 455(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HC2E71330ABAE4605977E8D3AE44E4822">
<paragraph id="HB4DFF434BFA04BA3BA3F9AC07B88821A" commented="no"><enum>(4)</enum><header>Interim exception for certain students</header><text display-inline="yes-display-inline"></text> <subparagraph id="HD21C484A66844B879B13C92E0B3FB808" commented="no"><enum>(A)</enum><header>Application of prior limits</header><text>Subparagraphs (C), (D), and (E) of paragraph (3), and paragraphs (5) and (6), shall not apply, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026—</text>
<clause id="H0BBD1C7136664EB6A5100320B9145EC7" commented="no"><enum>(i)</enum><text>is enrolled in a program of study at an institution of higher education; and</text></clause> <clause id="HA39ED7150B90475B965E90F98DCA98C3" commented="no"><enum>(ii)</enum><text>has received a loan (or on whose behalf a loan was made) under this part for such program of study.</text></clause></subparagraph>
<subparagraph id="H5FE1FD52CE5D45D6BAA26E1695F8A596" commented="no"><enum>(B)</enum><header>Expected time to credential</header><text>For purposes of this paragraph, the expected time to credential of an individual shall be equal to the lesser of—</text> <clause id="HE8ACBCE734C1455F831FC70753E13514" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">three academic years; or</text></clause>
<clause id="HE205C397296B4D90AD2067ED65C2D99E" commented="no"><enum>(ii)</enum><text>the period determined by calculating the difference between—</text> <subclause id="H56A04CCD12254E4FBCF5F369C1FB0090" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">the program length (as defined in section 420W) for the program of study in which the individual is enrolled; and</text></subclause>
<subclause id="H8911A3C3B91F463C944AA134EA9F0D66" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the period of such program of study that such individual has completed as of the date of the determination under this subparagraph.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="H86E00744E8844644BB07B65B5ECB9A48"><enum>(c)</enum><header>Loan limits for unsubsidized loans and certain Federal Direct PLUS Loans</header> <paragraph id="H5A802D37F59E4E2A953D9256EB645BFC"><enum>(1)</enum><header>Annual and aggregate unsubsidized loan limits</header><text>Section 455(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)</external-xref>) is further amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H4B79AC7C41B64845855155A27C9A161C">
<paragraph id="HFDB901DBB1E54BDA916929FC5D5AA8CF"><enum>(5)</enum><header>Annual and aggregate unsubsidized loan limits</header><text display-inline="yes-display-inline"></text> <subparagraph id="HE12F2FC5D8F44177B1468F4F3EC36ACB"><enum>(A)</enum><header>Undergraduate students</header> <clause id="H17899F57968B488EAAB9B52121169AE7"><enum>(i)</enum><header>Annual loan limits</header><text display-inline="yes-display-inline">Notwithstanding any provision of this part or part B, subject to subparagraph (C) and except as provided in paragraph (4), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans that an undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the difference between—</text>
<subclause id="H4DD28972151F43F4964F042946295BA3"><enum>(I)</enum><text>the amount of the median cost of college of the program of study in which the student is enrolled; and</text></subclause> <subclause id="H34ED1AE4799C40AD8E8FEC9A1C9C7BDA"><enum>(II)</enum><text>the amount of<italic></italic> the Federal Pell Grant under section 401 awarded to the student for such academic year.</text></subclause></clause>
<clause id="HCAF3EF761C7C4B059D57A5F1ADF49ECB"><enum>(ii)</enum><header>Aggregate limits</header><text display-inline="yes-display-inline">Notwithstanding any provision of this part or part B, except as provided in paragraph (4), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that a student may borrow for programs of study that award an undergraduate credential upon completion of such a program shall be $50,000.</text></clause></subparagraph> <subparagraph id="H679AA1826D744B2B8D1E52C522905396"><enum>(B)</enum><header>Graduate and professional students</header> <clause id="HEF37582CDC0C4334A0A1365AADB95CEF"><enum>(i)</enum><header>Annual limits</header><text>Notwithstanding any provision of this part or part B, subject to subparagraph (C) and except as provided in paragraph (4), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans that a graduate student or professional student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the amount of the median cost of college of the program of study in which the student is enrolled.</text></clause>
<clause id="H61DB28A808E04D399066B992B426597C"><enum>(ii)</enum><header>Aggregate limits</header><text display-inline="yes-display-inline">Notwithstanding any provision of this part or part B, except as provided in paragraph (4), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that, in addition to the maximum aggregate amount described in subparagraph (A)(ii)—</text> <subclause id="H2CD7755FEE18405B825B82700B4CB979"><enum>(I)</enum><text>a graduate student—</text>
<item id="H42C79BA45FF34228A2813FD2B6F521D1"><enum>(aa)</enum><text>who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (D)(i) shall be $100,000; or</text></item> <item id="H64087E03E42E427188BCE35AF07A8D10"><enum>(bb)</enum><text display-inline="yes-display-inline">who is (or has been) a professional student, may borrow for programs of study described in subparagraph (D)(i) shall be an amount equal to—</text>
<subitem id="H7A7B7EBBD0B84D1C94860EDD9FC9D353"><enum>(AA)</enum><text display-inline="yes-display-inline">$150,000, minus</text></subitem> <subitem id="H6D1CC380653140D68F3E31EDFB9D68F3"><enum>(BB)</enum><text display-inline="yes-display-inline">the amount such student borrowed for programs of study described in subclauses (I) and (II) of subparagraph (D)(ii); and</text></subitem></item></subclause>
<subclause id="H21F01CA41F804DA5B74779F39A7A7FA8"><enum>(II)</enum><text display-inline="yes-display-inline">a professional student—</text> <item id="H75579AD32DF748AEBA05ABD2DDB21CA2"><enum>(aa)</enum><text>who is not (and has not been) a graduate student, may borrow for programs of study described in subclauses (I) and (II) of subparagraph (D)(ii) shall be $150,000; or</text></item>
<item id="H3C78B097CA514AB6AC87831A464DC451"><enum>(bb)</enum><text display-inline="yes-display-inline">who is (or has been) a graduate student, may borrow for programs of study described in subclauses (I) and (II) of subparagraph (D)(ii) shall be an amount equal to—</text> <subitem id="H33DACFC8D43C4CF4B340BA8C14550387"><enum>(AA)</enum><text display-inline="yes-display-inline">$150,000, minus</text></subitem>
<subitem id="H1B4326BC592F4BCA8D27714520EA52EA"><enum>(BB)</enum><text display-inline="yes-display-inline">the amount such student borrowed for programs of study described in subparagraph (D)(i).</text></subitem></item></subclause></clause></subparagraph> <subparagraph id="H23892D0BEA1F47F0986AC3BBEB9CC82D"><enum>(C)</enum><header>Less than full-time enrollment</header><text display-inline="yes-display-inline">In any case where a student is enrolled in an program of study of an institution of higher education on less than a full-time basis during any academic year, the amount of a loan that student may borrow for an academic year (as defined in section 481(a)(2)) or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed for purposes of this paragraph.</text></subparagraph>
<subparagraph id="H7D7FDC7A97504C6FAE49D0568542372D" commented="no"><enum>(D)</enum><header>Definition</header><text>For purposes of this subsection:</text> <clause id="H702A03F60AC64DFFB6A16F516B7CE1FC" commented="no"><enum>(i)</enum><header>Graduate student</header><text display-inline="yes-display-inline">The term <term>graduate student</term> means a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program.</text></clause>
<clause id="H841BDDA7D4594213AF968AE749640375" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><header>Professional student</header><text display-inline="yes-display-inline">The term <term>professional student</term> means a student enrolled in a program of study that—</text> <subclause id="H96887B5FCC3B4A1E935B4361C3A1D8BC" commented="no"><enum>(I)</enum><text>awards a professional degree upon completion of the program; or</text></subclause>
<subclause id="H2FF6635AA7D84716804CD320096DA0C5" commented="no"><enum>(II)</enum><text>provides the training described in part 141 of title 14, Code of Federal Regulations (or any successor regulations). </text></subclause></clause> <clause id="H42854FCE31CB43BEAD20FF72FA2D8712" commented="no" display-inline="no-display-inline"><enum>(iii)</enum><header>Undergraduate student</header><text>The term <term>undergraduate student</term> means a student enrolled in a program of study that awards an undergraduate credential upon completion of the program.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H2D80B96C7E334F76BF6EF0736611F67F"><enum>(2)</enum><header>Annual and aggregate Federal direct PLUS loans limits for parent borrowers</header><text>Section 455(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)</external-xref>) is further amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H8B20C6520AF34ED9A2735A8A7387B583"> <paragraph id="H56AFA028518D4A4F9AFE757F14F0F83D"><enum>(6)</enum><header>Annual and aggregate Federal direct PLUS loans limits for parent borrowers</header> <subparagraph id="HFDD6749CE7C44E55A4BA80C88E2DD3CC"><enum>(A)</enum><header>Annual limits</header><text display-inline="yes-display-inline">Notwithstanding any provision of this part or part B, subject to paragraph (3)(E) and except as provided in paragraph (4), beginning on July 1, 2026, the maximum annual amount of Federal Direct PLUS loans that a parent may borrow, on behalf of a dependent student, in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the amount equal to—</text>
<clause id="H48D9789E504045868BE379A2080DB246"><enum>(i)</enum><text>the cost of attendance of the program of study of such student; minus</text></clause> <clause id="H3F4D661C962B4BF6940BA8BAEFFEFB68"><enum>(ii)</enum><text display-inline="yes-display-inline">the maximum annual amount of Federal Direct Unsubsidized Stafford loans such student may borrow in such academic year.</text></clause></subparagraph>
<subparagraph id="HB664EEF223054D35B91ABFA27852F7CE" commented="no"><enum>(B)</enum><header>Lifetime maximum aggregate limits</header><text display-inline="yes-display-inline">Notwithstanding any provision of this part or part B, subject to paragraph (3)(E) and except as provided in paragraph (4), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct PLUS loans that a parent may borrow on behalf of dependent students shall be $50,000, without regard to—</text> <clause id="H8BA60418405543069A2DB9C78D85C5C4" commented="no"><enum>(i)</enum><text>the number of dependent students on behalf of whom such parent borrows such a loan; or</text></clause>
<clause id="HD80DBE19FD8E42378E489C624B90CAA0" commented="no"><enum>(ii)</enum><text>any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H14B3AD3F95004D4BA8C211C14A094FE5"><enum>(3)</enum><header>Lifetime maximum aggregate amount for all students</header><text>Section 455(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)</external-xref>) is further amended by adding at the end the following: </text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H6C6BB03E1D374732AAF2FD707974C54C">
<paragraph id="HB1DF07FB109548F4A658A997230D9AD1" commented="no"><enum>(7)</enum><header>Lifetime maximum aggregate amount for all students</header><text display-inline="yes-display-inline">Notwithstanding any provision of this part or part B, except as provided in paragraph (4), beginning on July 1, 2026, the maximum aggregate amount of loans made, insured, or guaranteed under this title that a student may borrow (other than a Federal Direct PLUS loan, or loan under section 428B, made to the student as a parent borrower on behalf of a dependent student) shall be $200,000, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan. </text></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></paragraph> <paragraph id="HC41CFB4E06E94041990ACCDB1A6A7265"><enum>(4)</enum><header>Institutionally determined limits</header><text>Section 455(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)</external-xref>) is further amended by adding at the end the following: </text>
<quoted-block style="OLC" id="H4ED6DE5346E74346BE82CEA281D394AE">
<paragraph id="H0243C27753D44B6C94348AA21EC19019"><enum>(8)</enum><header>Institutionally determined limits</header><text display-inline="yes-display-inline">Notwithstanding the annual loan limits described in subparagraphs (A)(i) and (B)(i) of paragraph (5) and subparagraph (A) of paragraph (6), beginning on July 1, 2026, an institution of higher education (at the discretion of a financial aid administrator at the institution) may limit the total amount of loans made under this part for a program of study for an academic year (as defined in section 481(a)(2)) that a student may borrow, and that a parent may borrow on behalf of such student, as long as any such limit is applied consistently to all students enrolled in such program of study.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></subtitle> <subtitle id="H24AB1A77AC724727BA3087D3ABF13536"><enum>C</enum><header>Loan Repayment</header> <section id="HA8CFE518C15842A389F9B0AD15073C6A"><enum>30021.</enum><header>Loan repayment</header> <subsection id="H64825E430F74433C8E2ECEB10F99C3CF"><enum>(a)</enum><header>Transition to income-based repayment plans</header> <paragraph id="H63790ADABDD14A6EB29111A50635F257"><enum>(1)</enum><header>Authority to transition to income-based repayment plans</header> <subparagraph id="HC245068EBED34D12B63D4BDC007A3C27"><enum>(A)</enum><header>Authority to carry out transition</header><text display-inline="yes-display-inline">Beginning on the date of enactment of this title, the Secretary of Education shall take such steps as may be necessary to apply the repayment plan under section 493C of the Higher Education Act of 1965 (as amended by this title) to the loans of each borrower who, on the day before such date of enactment, is in a repayment status in accordance with, or an administrative forbearance associated with, an income-contingent repayment plan authorized under section 455(e) of the Higher Education Act of 1965 (as in effect on the day before the date of enactment of this title).</text></subparagraph>
<subparagraph id="H6F1C4C2685AC4F10B2AF001B9C1469F6"><enum>(B)</enum><header>Deadline for transition</header><text>The Secretary shall complete the application of the repayment plan under section 493C to the loans described in paragraph (1) as soon as practicable, but not later than 9 months after the date of enactment of this title.</text></subparagraph></paragraph> <paragraph id="H0C3582AE015E447484E7CB074E2106AC"><enum>(2)</enum><header>Limitation of regulatory authority</header><text display-inline="yes-display-inline">The Secretary may not establish, promulgate, issue, or modify any regulations or guidance with respect to any income-based repayment plan under the Higher Education Act of 1965, except that the Secretary may—</text>
<subparagraph id="HCC6B3D9D4AC0417385E7271132BD6F0C"><enum>(A)</enum><text display-inline="yes-display-inline">during the 270-day period after the date of enactment of this title, issue an interim final rule as necessary for the application of the repayment plan under section 493C of such Act of 1965 in accordance with <internal-xref idref="H63790ADABDD14A6EB29111A50635F257" legis-path="F.(a)(1)">paragraph (1)</internal-xref>; </text></subparagraph> <subparagraph id="H98DFE4ADCF6E48E2B339D689B5A8934B"><enum>(B)</enum><text display-inline="yes-display-inline">during the 270-day period after the date of enactment of this title, issue an interim final rule as necessary to implement the amendments to such section 493C made by <internal-xref idref="H1403DE7FC4964F40948BA9A3A283DB01" legis-path="F.(f)">subsection (f)</internal-xref> of this title; and</text></subparagraph>
<subparagraph id="H3C793C828F9D4528B0E9B7E41D146AD9" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">during the 18-month period after the date of enactment of this title, issue an interim final rule as necessary to implement the income-based Repayment Assistance Program under section 455(q) of such Act of 1965 (as added by this title).</text></subparagraph></paragraph> <paragraph id="H9A18F83FD00D44D29E5350C2C377A3F9"><enum>(3)</enum><header>Waiver of negotiated rulemaking</header><text display-inline="yes-display-inline">Any guidance or regulations issued or modified in accordance with subparagraph (A) or (B) of <internal-xref idref="H0C3582AE015E447484E7CB074E2106AC" legis-path="F.(a)(2)">paragraph (2)</internal-xref> shall not be subject to negotiated rulemaking requirements under section 492 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098a">20 U.S.C. 1098a</external-xref>).</text></paragraph></subsection>
<subsection id="HE94FFA78858F400999C6FF2956C3F9BE"><enum>(b)</enum><header>Repayment plans</header><text>Section 455(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>) is amended—</text> <paragraph id="H1940DED477F447EA9B68A714800724DA"><enum>(1)</enum><text>in paragraph (1)—</text>
<subparagraph id="H1C2F5E3EF1874C8097CA50C66C3593D2"><enum>(A)</enum><text>in the matter preceding subparagraph (A), by inserting <quote>before July 1, 2026, who has not received a loan made under this part on or after July 1, 2026,</quote> after <quote>made under this part</quote>;</text></subparagraph> <subparagraph id="H37AB2E7FA8DF4782870F0F4831647158"><enum>(B)</enum><text>by amending subparagraph (D) to read as follows:</text>
<quoted-block style="OLC" id="H4FF9A15003D24B46BD56CF74316943C5" display-inline="no-display-inline">
<subparagraph id="H9F76FF77582148878CE3E2FE9FD304A1" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">beginning on July 1, 2026, the income-based Repayment Assistance Plan under subsection (q), provided that—</text> <clause id="H33E4D55EE97C4B62A3B43373B22FC1D5" commented="no"><enum>(i)</enum><text>the borrower is required to pay each outstanding loan of the borrower made under this part under such Repayment Assistance Plan; </text></clause>
<clause id="HEBFF35F9BD524E6AA05B82BA28C62202" commented="no"><enum>(ii)</enum><text>such Plan shall not be available to borrowers with an excepted loan (as defined in paragraph (7)); and</text></clause> <clause id="H87AB983235784C2989857AD94E94E507"><enum>(iii)</enum><text>the borrower may not change the borrower’s selection of the Repayment Assistance Plan except in accordance with paragraph (7)(C).</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H3E684FF280934E6E9758F0E1CAF03D69" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (E)—</text> <clause id="H9497BDAF75CC4B5FAF3AFA0E77111D04" commented="no"><enum>(i)</enum><text>by striking <quote>that enables borrowers who have a partial financial hardship to make a lower monthly payment</quote>; and</text></clause>
<clause id="H793DDB407A8643DABA6FB86318840138" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student</quote> and inserting <quote>an excepted Consolidation Loan (as defined in section 493C(a)(2))</quote>; </text></clause></subparagraph></paragraph> <paragraph id="H66D8E4704A144B9EA08AFDB26E32486F" commented="no"><enum>(2)</enum><text>in paragraph (5), by amending subparagraph (B) to read as follows:</text>
<quoted-block style="OLC" id="H7732619F73634B198B513400C080BDFD" display-inline="no-display-inline">
<subparagraph id="H9B7F817FCEDA40D3950710FA51DAEC76" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">repay the loan pursuant to an income-based repayment plan under subsection (q) or section 493C, as applicable. </text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H98EED239ADB24D2CBBE43742CA1C504D"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block id="H2C44E8A21D824C628EE01442BF898D52" style="OLC">
<paragraph id="H1F594647A5C54741A295ED5382012DAB"><enum>(6)</enum><header>Termination and limitation of repayment authority</header><text></text> <subparagraph id="H544078A6C5114DCB8C9D1B2781477D63" commented="no"><enum>(A)</enum><header>Sunset of repayment plans available before July 1, 2026</header><text display-inline="yes-display-inline">Paragraphs (1) through (4) of this subsection shall only apply to loans made under this part before July 1, 2026. </text></subparagraph>
<subparagraph id="H9F56CD3BBB6F48B08A198FEE416C40F5"><enum>(B)</enum><header>Prohibitions</header><text>The Secretary may not, for any loan made under this part on or after July 1, 2026—</text> <clause id="HBCB1DD06F1B045A498973ED35DB36248"><enum>(i)</enum><text>authorize a borrower of such a loan to repay such loan pursuant to a repayment plan that is not described in <internal-xref idref="H5E56C7B8F9B8457FAF2EA3BF78CACB38" legis-path="(7)(A)">paragraph (7)(A)</internal-xref>; or</text></clause>
<clause id="H247AEBEFC27F48FEBE9EB387568E7667" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">carry out or modify a repayment plan that is not described in such paragraph.</text></clause></subparagraph></paragraph> <paragraph id="H9843682361D94D8BBB194323A0BC212E"><enum>(7)</enum><header>Repayment plans for loans made on or after July 1, 2026</header> <subparagraph id="H5E56C7B8F9B8457FAF2EA3BF78CACB38"><enum>(A)</enum><header>Design and selection</header><text>Beginning on July 1, 2026, the Secretary shall offer a borrower of a loan made under this part on or after such date (including such a borrower who also has a loan made under this part before such date) two plans for repayment of the borrower’s loans under this part, including principal and interest on such loans. The borrower shall be entitled to accelerate, without penalty, repayment on such loans. The borrower may choose—</text>
<clause id="HAAF765A5D3534966A24A9B820B71FFF9" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">a standard repayment plan—</text> <subclause id="H1CCAA9E61BAA4B76A72AA016B8011015"><enum>(I)</enum><text display-inline="yes-display-inline">with a fixed monthly repayment amount paid over a fixed period of time equal to the applicable period determined under <internal-xref idref="H3F437E01C8FC4BFEB742DFC1353F1950" legis-path="(7)(A)(i)(II)">subclause (II)</internal-xref>; and</text></subclause>
<subclause id="H3F437E01C8FC4BFEB742DFC1353F1950"><enum>(II)</enum><text display-inline="yes-display-inline">with the applicable period of time for repayment determined based on the total outstanding principal of all loans of the borrower made under this part before, on, or after July 1, 2026, at the time the borrower is entering repayment under such plan, as follows—</text> <item id="H06CE3A730A644DD09705DF343CB16EA2" commented="no"><enum>(aa)</enum><text>for a borrower with total outstanding principal of less than $25,000, a period of 10 years;</text></item>
<item id="H1F5AF50B308F44F08510BA247A4BE894" commented="no"><enum>(bb)</enum><text display-inline="yes-display-inline">for a borrower with total outstanding principal of not less than $25,000 and less than $50,000, a period of 15 years;</text></item> <item id="H47E42318D32D4D1D8E6D9686CDF4DCD2" commented="no"><enum>(cc)</enum><text display-inline="yes-display-inline">for a borrower with total outstanding principal of not less than $50,000 and less than $100,000, a period of 20 years; and</text></item>
<item id="H8660233ACE0C44C78A95B26626AA73D9" commented="no"><enum>(dd)</enum><text display-inline="yes-display-inline">for a borrower with total outstanding principal of $100,000 or more, a period of 25 years; or</text></item></subclause></clause> <clause id="H03DA7832FCF646BF867559D66FDD2D1C" commented="no"><enum>(ii)</enum><text>the income-based Repayment Assistance Plan under subsection (q).</text></clause></subparagraph>
<subparagraph id="H7B419CFB5A73414A8A55B170865DB5A9"><enum>(B)</enum><header>Selection by Secretary</header><text>If a borrower of a loan made under this part on or after July 1, 2026, does not select a repayment plan described in <internal-xref idref="H5E56C7B8F9B8457FAF2EA3BF78CACB38" legis-path="(7)(A)">subparagraph (A)</internal-xref>, the Secretary shall provide the borrower with the standard repayment plan described in <internal-xref idref="HAAF765A5D3534966A24A9B820B71FFF9" legis-path="(7)(A)(i)">subparagraph (A)(i)</internal-xref>.</text></subparagraph> <subparagraph id="H1F891A0667874E2DA7862A0F9ECE65EB"><enum>(C)</enum><header>Selection available for each new loan; selection applies to all outstanding loans</header><text>Each time a borrower receives a loan made under this part on or after July 1, 2026, the borrower may select either the standard repayment plan under <internal-xref idref="HAAF765A5D3534966A24A9B820B71FFF9" legis-path="(7)(A)(i)">subparagraph (A)(i)</internal-xref> or the Repayment Assistance Plan under <internal-xref idref="H03DA7832FCF646BF867559D66FDD2D1C" legis-path="(7)(A)(ii)">subparagraph (A)(ii)</internal-xref>, provided that the borrower is required to pay each outstanding loan of the borrower made under this part under such selected repayment plan. </text></subparagraph>
<subparagraph id="H061C4D9AA3FF47ECAE658E7B986DD483"><enum>(D)</enum><header>Permissible changes of repayment plan</header>
<clause id="H550B1A27487A4BD4ADCE8C19645DA976"><enum>(i)</enum><header>Changing from standard repayment plan</header><text>A borrower may change the borrower’s selection of the standard repayment plan under <internal-xref idref="HAAF765A5D3534966A24A9B820B71FFF9" legis-path="(7)(A)(i)">subparagraph (A)(i)</internal-xref>, or the Secretary’s selection of such plan for the borrower under <internal-xref idref="H1F891A0667874E2DA7862A0F9ECE65EB" legis-path="(7)(C)">subparagraph (C)</internal-xref>, as the case may be, to the Repayment Assistance Plan under <internal-xref idref="H03DA7832FCF646BF867559D66FDD2D1C" legis-path="(7)(A)(ii)">subparagraph (A)(ii)</internal-xref> at any time.</text></clause> <clause id="H444A787A109241778310BCF739388AD8" commented="no"><enum>(ii)</enum><header>Limited change from Repayment Assistance Plan</header><text display-inline="yes-display-inline">A borrower may not change the borrower’s selection of the Repayment Assistance Plan under <internal-xref idref="H03DA7832FCF646BF867559D66FDD2D1C" legis-path="(7)(A)(ii)">subparagraph (A)(ii)</internal-xref>, except in accordance with <internal-xref idref="H1F891A0667874E2DA7862A0F9ECE65EB" legis-path="(7)(C)">subparagraph (C)</internal-xref>.</text></clause></subparagraph>
<subparagraph id="H9A542AAF17024951AF098F5265066DB8" display-inline="no-display-inline"><enum>(E)</enum><header>Special rule for excepted loan borrowers with loans made on or after July 1, 2026</header>
<clause id="H99988B2F9DD047F4AE2177A96E868CA7"><enum>(i)</enum><header>Standard repayment plan required</header><text display-inline="yes-display-inline">Notwithstanding subparagraphs (A) through (D), beginning on July 1, 2026, the Secretary shall require a borrower who has an excepted loan and who has received a loan made under this part on or after such date to repay each outstanding loan of the borrower made under this part, including principal and interest on such loans, under the standard repayment plan under <internal-xref idref="HAAF765A5D3534966A24A9B820B71FFF9" legis-path="(7)(A)(i)">subparagraph (A)(i)</internal-xref>. The borrower shall be entitled to accelerate, without penalty, repayment on such loans.</text></clause> <clause id="H58F85850ABB24B6EA764FCAA4AFE9774" commented="no"><enum>(ii)</enum><header>Excepted loan defined</header><text display-inline="yes-display-inline">For the purposes of this paragraph, the term <quote>excepted loan</quote> means a loan with an outstanding balance that is—</text>
<subclause id="H3B37F8B53DA84FFA82B27CB20A64AC00" commented="no"><enum>(I)</enum><text>a Federal Direct PLUS Loan that is made on behalf of a dependent student; or</text></subclause> <subclause id="HC4C95E2511054A6495B63C6A5093D6F9" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on—</text>
<item id="HBEE9EF36AA874E4887F7EECBFE73DABF" commented="no"><enum>(aa)</enum><text display-inline="yes-display-inline">an excepted PLUS loan, as defined in section 493C(a)(1); or</text></item> <item id="H9A259372804C47848281F81AEAD7E28D" commented="no"><enum>(bb)</enum><text>an excepted consolidation loan (as such term is defined in section 493C(a)(2)(A), notwithstanding subparagraph (B) of such section).</text></item></subclause></clause></subparagraph>
<subparagraph id="HD04B0DDBC51145D2B651FDCD1A60AD10" display-inline="no-display-inline"><enum>(F)</enum><header>Treatment of borrowers without loans made on or after July 1, 2026</header><text display-inline="yes-display-inline">A borrower who has an outstanding loan (including an excepted loan) made under this part before July 1, 2026, and who has not received a loan made under this part on or after July 1, 2026, shall not be eligible to change the borrower’s selection of a repayment plan to the standard repayment plan under <internal-xref idref="HAAF765A5D3534966A24A9B820B71FFF9" legis-path="(7)(A)(i)">subparagraph (A)(i)</internal-xref>.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H4EDD9CCC56FA4B0998ACA5062D7975C7"><enum>(c)</enum><header>Elimination of authority to provide income contingent repayment plans</header> <paragraph id="HD7C34450C21141418C6D13C318FD2CDA"><enum>(1)</enum><header>Repeal</header><text>Subsection (e) of section 455 the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)</external-xref>) is repealed.</text></paragraph>
<paragraph id="H14E6B3B02F234FF78D432B6280831938"><enum>(2)</enum><header>Further amendments to eliminate income contingent repayment</header><text display-inline="yes-display-inline"></text> <subparagraph id="H926A4E9571944FE88B3040A22B44A4B4"><enum>(A)</enum><text display-inline="yes-display-inline">Section 428 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078</external-xref>) is amended—</text>
<clause id="HB8D44F35456B4CDA9CFA22314C89557C"><enum>(i)</enum><text display-inline="yes-display-inline">in subsection (b)(1)(D), by striking <quote>be subject to income contingent repayment in accordance with subsection (m)</quote> and inserting <quote>be subject to income-based repayment in accordance with subsection (m)</quote>; and</text></clause> <clause id="HAAE83C88C52B42D2881A67E1D394817F" display-inline="no-display-inline"><enum>(ii)</enum><text>in subsection (m)—</text>
<subclause id="H22C1700839AD44508733C60BAD2DABAC"><enum>(I)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Income Contingent and</header-in-text></quote>;</text></subclause> <subclause id="H0D2700F53B254422B8E71A8DCFF40D89"><enum>(II)</enum><text>by amending paragraph (1) to read as follows:</text>
<quoted-block style="OLC" id="H5D64E2336C3A46E2A6F87D47DC67AFD9" display-inline="no-display-inline">
<paragraph id="H0803E9D35554477AA19722B227E41F64"><enum>(1)</enum><header>Authority of Secretary to require</header><text display-inline="yes-display-inline">The Secretary may require borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans pursuant to an income-based repayment plan under section 455(q) or section 493C, as applicable.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause> <subclause id="HBD2EC390CE6D45E182B9EDEDB5D57E46"><enum>(III)</enum><text display-inline="yes-display-inline">in the heading of paragraph (2), by striking <quote><header-in-text level="paragraph" style="OLC">income contingent or</header-in-text></quote>.</text></subclause></clause></subparagraph>
<subparagraph id="HFF6FE709E1C94372A7AA3C05109CF5F8"><enum>(B)</enum><text display-inline="yes-display-inline">Section 428C of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-3">20 U.S.C. 1078–3</external-xref>) is amended—</text> <clause id="H3623CDFCBF004AE78C70BD89E80A15D4"><enum>(i)</enum><text display-inline="yes-display-inline">in subsection (a)(3)(B)(i)(V)(aa), by striking <quote>for the purposes of obtaining income contingent repayment or income-based repayment</quote> and inserting <quote>for the purposes of qualifying for an income-based repayment plan under section 455(q) or section 493C, as applicable</quote>; </text></clause>
<clause id="H596AF7FA40B14F3FBF6BC9D659C1C4AD"><enum>(ii)</enum><text display-inline="yes-display-inline">in subsection (b)(5), by striking <quote>be repaid either pursuant to income contingent repayment under part D of this title, pursuant to income-based repayment under section 493C, or pursuant to any other repayment provision under this section</quote> and inserting <quote>be repaid pursuant to an income-based repayment plan under section 493C or any other repayment provision under this section</quote>; and </text></clause> <clause id="HD7B94D8FF4A74B3088D4F1D3274ABA42"><enum>(iii)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subclause id="HA68A0BF331514F2698DF33285089B66B"><enum>(I)</enum><text>in paragraph (2)(A), by striking <quote>or by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)</quote> and inserting <quote>or by the terms of repayment pursuant to an income-based repayment plan under section 493C</quote>; and</text></subclause> <subclause id="HA8B70BF04AB349C7BE8936F839E172C3"><enum>(II)</enum><text display-inline="yes-display-inline">in paragraph (3)(B), by striking <quote>except as required by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)</quote> and inserting <quote>except as required by the terms of repayment pursuant to an income-based repayment plan under section 493C</quote>.</text></subclause></clause></subparagraph>
<subparagraph id="H78F36DD50AF9417CB26672CFCC3EAD48"><enum>(C)</enum><text display-inline="yes-display-inline">Section 485(d)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092(d)(1)</external-xref>) is amended by striking <quote>income-contingent and</quote>.</text></subparagraph> <subparagraph id="H205CDFB72082452BB06F3D4FF83C98FD"><enum>(D)</enum><text display-inline="yes-display-inline">Section 494(a)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098h">20 U.S.C. 1098h(a)(2)</external-xref>) is amended—</text>
<clause id="H14FD1671F78745BC90EE7CDB9A82DCAB"><enum>(i)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">Income-contingent and income-based</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Income-based</header-in-text></quote>;</text></clause> <clause id="HED279DD671E9404C8DE6D454F092F36D"><enum>(ii)</enum><text>in subparagraph (A)—</text>
<subclause id="H0E10B4FD9A574451B6FF1B65DF8F09F3"><enum>(I)</enum><text>in the matter preceding clause (i), by striking <quote>income-contingent or</quote>; and</text></subclause> <subclause id="H11E214B9352047F7A2C7CE58AE25B596"><enum>(II)</enum><text>in clause (ii)(I), by inserting <quote>(as in effect on the day before the date of repeal of subsection (e) of section 455)</quote> after <quote>section 455(e)(8)</quote>.</text></subclause></clause></subparagraph></paragraph></subsection>
<subsection id="HB212B5516EB544E4B73F2135DB7F5604" commented="no"><enum>(d)</enum><header>Repayment Assistance Plan</header><text>Section 455 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block id="HF6CEDA788C4C4A38AD37E9E751104513" style="OLC"> <subsection id="HD717EC3B24E9476D91DBD38733D6C62B" commented="no"><enum>(q)</enum><header>Repayment Assistance Plan</header><text display-inline="yes-display-inline"></text>
<paragraph id="H87208DDA155A4487B6632BEC5096E64A" commented="no"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of this Act, beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan (to be known as the <quote>Repayment Assistance Plan</quote>), that shall have the following terms and conditions: </text> <subparagraph id="H58F1C0772E1A4E53AD69EE38BE9071D4" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">The total monthly repayment amount owed by a borrower for all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan shall be equal to the applicable monthly payment of a borrower calculated under <internal-xref idref="HAFB648527CEF41E58FCB03B59E6D1FAD" legis-path="(q)(3)(B)">paragraph (3)(B)</internal-xref>, except that the borrower may not be precluded from repaying an amount that exceeds such amount for any month.</text></subparagraph>
<subparagraph id="H739870F92F534AEEBB3BDB8D9253CDEB" commented="no"><enum>(B)</enum><text>The Secretary shall apply the borrower’s applicable monthly payment under this paragraph first toward interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan.</text></subparagraph> <subparagraph id="H64A33419D8334CD1977214D8F7B625C0" commented="no"><enum>(C)</enum><text>Any principal due and not paid under <internal-xref idref="H739870F92F534AEEBB3BDB8D9253CDEB" legis-path="(q)(1)(B)">subparagraph (B)</internal-xref> or <internal-xref idref="HC70BA05EC19B4FDBBF7C18E98AED4FCB" legis-path="(q)(2)(B)">paragraph (2)(B)</internal-xref> shall be deferred.</text></subparagraph>
<subparagraph id="H8EC55978BDC34B339019E883C9B55D2A" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">A borrower who is not in a period of deferment or forbearance shall make an applicable monthly payment for each month until the earlier of—</text> <clause id="HA28DCA30799549B4BAF887346732D45C" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the date on which the outstanding balance of principal and interest due on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is $0; or</text></clause>
<clause id="H1BF48A933C544C41A3010C7EE7575B67" commented="no"><enum>(ii)</enum><text>the date on which the borrower has made 360 qualifying monthly payments.</text></clause></subparagraph> <subparagraph id="H2B15632896B947A4995229B3745595ED" commented="no"><enum>(E)</enum><text>The Secretary shall repay or cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower—</text>
<clause id="HDECC00F2BBA14E558A15C337160139A8" commented="no"><enum>(i)</enum><text>who, for any period of time, participated in the Repayment Assistance Plan under this subsection;</text></clause> <clause id="H587684A36BA14E79BE5582C10E477C13" commented="no"><enum>(ii)</enum><text>whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and</text></clause>
<clause id="H8D0670A5FD6E45789530B559966CB78C"><enum>(iii)</enum><text display-inline="yes-display-inline">who has made 360 qualifying monthly payments on such loan. </text></clause></subparagraph> <subparagraph id="H61634D5E1E354B009914B048D79C9F70" commented="no"><enum>(F)</enum><text display-inline="yes-display-inline">For the purposes of this subsection, the term <quote>qualifying monthly payment</quote> means any of the following:</text>
<clause id="H02C4E576D3F74702993B2398D97A7239" commented="no"><enum>(i)</enum><text>An on-time applicable monthly payment under this subsection. </text></clause> <clause id="H011A3C80162046C9BA30BFA0B088CB92" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan.</text></clause>
<clause id="H20A3A4A384AD46E9A58405D9E433B93F" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">A monthly payment under any repayment plan of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years.</text></clause> <clause id="H54826F2E3DB84668A553C9AD7754A619" commented="no"><enum>(iv)</enum><text>A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section. </text></clause>
<clause id="HF79C19473CFA457C8359E88F14EE530B" commented="no"><enum>(v)</enum><text display-inline="yes-display-inline">A monthly payment made before the date of enactment of this subsection under an income-contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income-contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a plan, including a monthly payment equal to the minimum payment amount permitted under such a plan.</text></clause> <clause id="H4EC30CDE189E41138E65A7634EA70DEB"><enum>(vi)</enum><text>A month when the borrower did not make a payment because the borrower was in deferment due to an economic hardship described in section 435(o).</text></clause>
<clause id="H2C912887BAE04B95BB1266AC3D58B2C5"><enum>(vii)</enum><text display-inline="yes-display-inline">A month that ended before the date of enactment of this subsection when the borrower did not make a payment because the borrower was in a period deferment or forbearance described in section 685.209(k)(4)(iv) of title 34, Code of Federal Regulations (as in effect on the date of enactment of this subsection).</text></clause></subparagraph> <subparagraph id="HF3E0FAB61F004B35A4AAA875DD222FDD"><enum>(G)</enum><text>With respect to carrying out section 494(a)(2) for the Repayment Assistance Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under section 493C(c)(2)(B).</text></subparagraph></paragraph>
<paragraph id="H2FDF6F88DB634FA596AD0F59717D6BA4" commented="no"><enum>(2)</enum><header>Balance assistance for distressed borrowers</header>
<subparagraph id="H0618ADE536564570B00E2DA8A2C0D1E5" commented="no"><enum>(A)</enum><header>Interest subsidy</header><text display-inline="yes-display-inline">With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under <internal-xref idref="H58F1C0772E1A4E53AD69EE38BE9071D4" legis-path="(q)(1)(A)">paragraph (1)(A)</internal-xref> and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower.</text></subparagraph> <subparagraph id="HC70BA05EC19B4FDBBF7C18E98AED4FCB" commented="no"><enum>(B)</enum><header>Matching principal payment</header><text display-inline="yes-display-inline">With respect to a borrower of a loan made under this part and not in a period of deferment or forbearance, for each month for which a borrower makes an on-time applicable monthly payment required under <internal-xref idref="H58F1C0772E1A4E53AD69EE38BE9071D4" legis-path="(q)(1)(A)">paragraph (1)(A)</internal-xref> and such monthly payment reduces the total outstanding principal balance of all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection by less than $50, the Secretary shall reduce such total outstanding principal balance of the borrower by an amount that is equal to—</text>
<clause id="H103F8FC2086E477983B5593844173C43" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount that is the lesser of—</text> <subclause id="H8E3AD3EB13CE403F8E96D7DC1F2FCA71" commented="no"><enum>(I)</enum><text>$50; or</text></subclause>
<subclause id="HACB695EDF40646B58D839436EC28D332" commented="no"><enum>(II)</enum><text>the total amount paid by the borrower for such month pursuant to <internal-xref idref="H58F1C0772E1A4E53AD69EE38BE9071D4" legis-path="(q)(1)(A)">paragraph (1)(A)</internal-xref>, minus</text></subclause></clause> <clause id="H9CC11DAEB6744C60A9A028FB85E985A2" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the total amount paid by the borrower for such month pursuant to <internal-xref idref="H58F1C0772E1A4E53AD69EE38BE9071D4" legis-path="(q)(1)(A)">paragraph (1)(A)</internal-xref> that is applied to such total outstanding principal balance.</text></clause></subparagraph></paragraph>
<paragraph id="H20FCF6A3D92542D994DE7155CEF1BFBA" commented="no"><enum>(3)</enum><header>Definitions</header><text>In this paragraph:</text> <subparagraph id="HF9D0B6C3C3964FD696AEDC4555045706" commented="no"><enum>(A)</enum><header>Adjusted gross income</header><text display-inline="yes-display-inline">The term <term>adjusted gross income</term>, when used with respect to a borrower, means the adjusted gross income (as such term is defined in <external-xref legal-doc="usc" parsable-cite="usc/26/62">section 62</external-xref> of the Internal Revenue Code of 1986) of the borrower (and the borrower’s spouse, as applicable) for the most recent taxable year, except that, in the case of a married borrower who files a separate Federal income tax return, the term does not include the adjusted gross income of the borrower’s spouse. </text></subparagraph>
<subparagraph id="HAFB648527CEF41E58FCB03B59E6D1FAD" commented="no" display-inline="no-display-inline"><enum>(B)</enum><header>Applicable monthly payment</header>
<clause id="H98CAC001D6D04B91A3CE0C4925EAA601" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), (iii), or (vi), the term <term>applicable monthly payment</term> means, when used with respect to a borrower, the amount equal to—</text> <subclause id="H38FBC9C7E58C41439E514464E7CAC599" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">the applicable base payment of the borrower, divided by 12; minus</text></subclause>
<subclause id="H6F0F3DE5F5C94F4DB80221DB4B30D136" commented="no"><enum>(II)</enum><text>$50 for each dependent child of the borrower.</text></subclause></clause> <clause id="H93802AEE64EB438BAB71F9EDF22A5E6A" commented="no"><enum>(ii)</enum><header>Minimum amount</header><text>In the case of a borrower with an applicable monthly payment amount calculated under clause (i) that is less than $10, the applicable monthly payment of the borrower shall be $10.</text></clause>
<clause id="HA48CD65991CA4808B067538DC88F711C" commented="no"><enum>(iii)</enum><header>Final payment</header><text display-inline="yes-display-inline">In the case of a borrower whose total outstanding balance of principal and interest on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is less than the applicable monthly payment calculated pursuant to clause (i) or (ii), as applicable, then the applicable monthly payment of the borrower shall be the total outstanding balance of principal and interest on all such loans. </text></clause> <clause id="HDC45DEEE7A1244B485CD1B8E1E54CD01" commented="no"><enum>(iv)</enum><header>Base payment</header><text display-inline="yes-display-inline">The amount of the applicable base payment for a borrower with an adjusted gross income of—</text>
<subclause id="H4D0B86F192574101917152DB0CDE56E8" commented="no"><enum>(I)</enum><text>not more than $10,000, is $120; </text></subclause> <subclause id="H2EC9B160191F40799A6D8B5E3B9991AE" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">more than $10,000 and not more than $20,000, is 1 percent of such adjusted gross income;</text></subclause>
<subclause id="HA0E60CA6F9394CFEBD08DF475454B489" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">more than $20,000 and not more than $30,000, is 2 percent of such adjusted gross income;</text></subclause> <subclause id="H64B2FCF968884D5EB15254D25C56CFDE" commented="no"><enum>(IV)</enum><text>more than $30,000 and not more than $40,000, is 3 percent of such adjusted gross income;</text></subclause>
<subclause id="H8BC6BEAB206A4F9BBD278D4C8FE4176B" commented="no"><enum>(V)</enum><text>more than $40,000 and not more than $50,000, is 4 percent of such adjusted gross income;</text></subclause> <subclause id="H7924F766E4EB48BD9B72E18492C8755D" commented="no"><enum>(VI)</enum><text>more than $50,000 and not more than $60,000, is 5 percent of such adjusted gross income;</text></subclause>
<subclause id="H457054BD29844A1895CDF4098582532F" commented="no"><enum>(VII)</enum><text>more than $60,000 and not more than $70,000, is 6 percent of such adjusted gross income;</text></subclause> <subclause id="HDE60DB0CB2C2490EAA6F16D707C93EAF" commented="no"><enum>(VIII)</enum><text>more than $70,000 and not more than $80,000, is 7 percent of such adjusted gross income;</text></subclause>
<subclause id="HFE8E710029104309A36917C5E96FC69D" commented="no"><enum>(IX)</enum><text>more than $80,000 and not more than $90,000, is 8 percent of such adjusted gross income;</text></subclause> <subclause id="HD6F02A2E10D940278FA3A26C4BCB1017" commented="no"><enum>(X)</enum><text>more than $90,000 and not more than $100,000, is 9 percent of such adjusted gross income; and</text></subclause>
<subclause id="H1E166FD6908D4E1CB16EC95FD0CB2CB4" commented="no"><enum>(XI)</enum><text display-inline="yes-display-inline">more than $100,000, is 10 percent of such adjusted gross income.</text></subclause></clause> <clause id="H13D21B53BADA41F9BCBAEDC97506C021" commented="no"><enum>(v)</enum><header>Dependent child of the borrower</header><text display-inline="yes-display-inline">For the purposes of this paragraph, the term <quote>dependent child of the borrower</quote> means an individual who—</text>
<subclause id="HDD9759E0127249E9A0FC24402086C689"><enum>(I)</enum><text>is under 17 years of age; and </text></subclause> <subclause id="H034069EB56FF47269C62F4ED239715F0"><enum>(II)</enum><text>is the borrower’s dependent child or another person who lives with and receives more than one-half of their support from the borrower.</text></subclause></clause>
<clause id="H151555E9931A44C3B70187188D935FE0"><enum>(vi)</enum><header>Special rule</header><text display-inline="yes-display-inline">In the case of a borrower who is required by the Secretary to provide information to the Secretary to determine the applicable monthly payment of the borrower under this subparagraph, and who does not comply with such requirement, the applicable monthly payment of the borrower shall be—</text> <subclause id="H4FDC5C0EDA5C4F2687675E3857E99866"><enum>(I)</enum><text>the sum of the monthly payment amounts the borrower would have paid for each of the borrower’s loans made under this part under a standard repayment plan with a fixed monthly repayment amount, paid over a period of 10 years, based on the outstanding principal due on such loan when such loan entered repayment; and </text></subclause>
<subclause id="H0077E97CF8C0431B81D4EBD7ED017AFF"><enum>(II)</enum><text>determined pursuant to this clause until the date on which the borrower provides such information to the Secretary.</text></subclause></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0B68CC0CD8D04BC5BE831D452BA6CCB6"><enum>(e)</enum><header>Federal Consolidation Loans</header><text>Section 455(g) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(g)</external-xref>) is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HCBECBA9E474B49D58F3D0AD71E5573B4" display-inline="no-display-inline">
<paragraph id="HD3A858B814AB4EF5BA251B09F1DBDE65"><enum>(3)</enum><header>Consolidation loans made on or after July 1, 2026</header><text display-inline="yes-display-inline">Notwithstanding subsections (b)(5), (c)(2), and (c)(3)(A) and (B) of section 428C, a Federal Direct Consolidation Loan offered to a borrower under this part on or after July 1, 2026, may only be repaid pursuant to a repayment plan described in subsection (d)(7)(A)(i) or (ii) of this section, as applicable, and the repayment schedule of such a Consolidation Loan shall be determined in accordance with such repayment plan.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1403DE7FC4964F40948BA9A3A283DB01"><enum>(f)</enum><header>Income-based repayment</header> <paragraph id="HC90D6D27CF90421D93D1E7D1F9BF8B5E"><enum>(1)</enum><header>Amendments</header> <subparagraph id="H01F5B5118A72456DAF779955E0E37D22"><enum>(A)</enum><header>Excepted consolidation loan defined</header><text display-inline="yes-display-inline">Section 493C(a)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(a)(2)</external-xref>) is amended to read as follows: </text>
<quoted-block style="OLC" id="H63B54F9A77E7462C8831C4E47B631B4C" display-inline="no-display-inline">
<paragraph id="HD07916A1CD154848B244E917098DC4BC"><enum>(2)</enum><header>Excepted consolidation loan</header>
<subparagraph id="H9011E7AAC43844238F6019853B17C6AB"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>excepted consolidation loan</term> means—</text> <clause id="H057F106584434D7EB6D51BAB87489A30"><enum>(i)</enum><text>a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on an excepted PLUS loan; or</text></clause>
<clause id="HD24A2328D13E4C4C8F38A7D189D6F628"><enum>(ii)</enum><text display-inline="yes-display-inline">a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on a consolidation loan under section 428C or a Federal Direct Consolidation Loan described in clause (i).</text></clause></subparagraph> <subparagraph id="H6F4ED2A81628444388F01B6ED3579324"><enum>(B)</enum><header>Exclusion</header><text>The term <quote>excepted consolidation loan</quote> does not include a Federal Direct Consolidation Loan described in subparagraph (A) that (on the day before the date of enactment of this subparagraph) was being repaid pursuant to the Income-Contingent Repayment (ICR) plan in accordance with section 685.209(a) of title 34, Code of Federal Regulations (as in effect on June 30, 2023).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H70349AA84CCD418EA3CD3D7F387DDAC2"><enum>(B)</enum><header>Terms of income-based repayment</header><text display-inline="yes-display-inline">Section 493C(b) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(b)</external-xref>) is amended—</text> <clause id="H56C1C4ECFD944E59B56EBEC9B2A9C765"><enum>(i)</enum><text display-inline="yes-display-inline">by amending paragraph (1) to read as follows: </text>
<quoted-block style="OLC" id="H1C8F6B6445A249679DFA51DA9796CD12" display-inline="no-display-inline">
<paragraph id="H840B417F3FF448078CAC5630F28A8C2A"><enum>(1)</enum><text display-inline="yes-display-inline">a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), may elect to have the borrower’s aggregate monthly payment for all such loans not exceed the result described in subsection (a)(3)(B) divided by 12;</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause> <clause id="H82F806222FE5461B88E919BB96DB33C0"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text>
<subclause id="HA99984C08BCB4F95BF7A6AE76641FCB5"><enum>(I)</enum><text>in subparagraph (B)—</text> <item id="HDEF29766B71B4BAA80E7C94F0009E554"><enum>(aa)</enum><text display-inline="yes-display-inline">in clause (i)—</text>
<subitem id="HEE18E484BB574EA8B2BB3F1079260665"><enum>(AA)</enum><text>by striking subclause (II); and</text></subitem> <subitem id="HF1C5432CC2BF46DD856BBD9FCC8789EF"><enum>(BB)</enum><text>by striking <quote>the borrower</quote> and all the follows through <quote>ends</quote> and inserting <quote>the borrower ends</quote>; and</text></subitem></item>
<item id="H70B1D15AA538443697AB572202C373C2"><enum>(bb)</enum><text display-inline="yes-display-inline">in clause (ii)—</text> <subitem id="H189B3DFB9D3E44DBB3B9634BE3985AB7"><enum>(AA)</enum><text>by striking subclause (II); </text></subitem>
<subitem id="H175F5E9881A7453E94E1997409776ED3"><enum>(BB)</enum><text>by striking <quote>the borrower</quote> and all the follows through <quote>ends</quote> and inserting <quote>the borrower ends</quote>; and</text></subitem> <subitem id="H4E5403647CBE46F4AF106226D3E2672C"><enum>(CC)</enum><text>by striking <quote>or</quote> at the end; </text></subitem></item></subclause></clause>
<clause id="H5F5AAE930A314200A58A0572999CF92D"><enum>(iii)</enum><text>by repealing paragraph (6); </text></clause> <clause id="H5A986EB5717D4398B1C4831E8A319A15"><enum>(iv)</enum><text>in paragraph (7)(B)—</text>
<subclause id="H3639E32601AD469F902C89744AB8C9DF"><enum>(I)</enum><text>in the matter preceding clause (i), by striking <quote>for a period of time prescribed by the Secretary, not to exceed 25 years</quote> and inserting the following: <quote>for 25 years (in the case of a borrower who is repaying at least one loan for a program of study for which a graduate credential (as defined in section 472A)) is awarded, or, for 20 years (in the case of a borrower who is not repaying at least one such loan)</quote>; </text></subclause> <subclause id="HB9E76FB870DB49BD9CA6FBD37F607054"><enum>(II)</enum><text display-inline="yes-display-inline">in clause (i), by inserting <quote>(as such paragraph was in effect on the day before the date of the repeal of paragraph (6))</quote> after <quote>paragraph (6)</quote>; and</text></subclause>
<subclause id="H51E2A876A84F4559BBA45796EEE111E4"><enum>(III)</enum><text>in clause (iv), by inserting <quote>(as such section was in effect on the day before the date of the repeal of paragraph (6))</quote> after <quote>section 455(d)(1)(D)</quote>; and </text></subclause></clause> <clause id="H94AAE93EB8CA4292AE45C365C080541F"><enum>(v)</enum><text>in paragraph (8), by striking <quote>standard repayment plan</quote> and inserting <quote>standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A), or the Repayment Assistance Program under section 455(q)</quote>.</text></clause></subparagraph>
<subparagraph id="H8179E5E8EEEC45CCB09240AADBA276FD"><enum>(C)</enum><header>Eligibility determinations</header><text>Section 493C(c)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(c)(2)</external-xref>) is further amended—</text> <clause id="H8059AD05B4A9410DA131ACC827A61604"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>(as in effect on the day before the date of repeal of subsection (e) of section 455)</quote> after <quote>section 455(e)(1)</quote>; and</text></clause>
<clause id="HF56CD27FEE7C4320BF8621C060170003"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B), by inserting <quote>(as in effect on the day before the date of repeal of subsection (e) of section 455)</quote> after <quote>section 455(e)(8)</quote>. </text></clause></subparagraph> <subparagraph id="H16756E3DCDBD453DADE937D3BEDABCFD"><enum>(D)</enum><header>Termination of special terms for new borrowers on and after July 1, 2014</header><text>Section 493C of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(e)</external-xref>) is further amended by striking subsection (e).</text></subparagraph></paragraph>
<paragraph id="H822622E216724A12AA22770994491067"><enum>(2)</enum><header>Effective date and application</header><text display-inline="yes-display-inline">The amendments made by this subsection shall take effect on the date of enactment of this title, and shall apply with respect to any borrower who is in repayment before, on, or after the date of enactment of this title.</text></paragraph></subsection></section> <section id="H2E493AF7369146538B1A71FAA2929FA9" section-type="subsequent-section"><enum>30022.</enum><header>Deferment; forbearance</header> <subsection id="HC07E6D5F38824A9CAF2AC394FE5AF255"><enum>(a)</enum><header>Heading amendment</header><text display-inline="yes-display-inline">Section 455(f) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(f)</external-xref>) is amended by striking the subsection heading and inserting the following: <quote><header-in-text level="subsection" style="OLC">Deferment; forbearance</header-in-text></quote>. </text></subsection>
<subsection id="H3CC7579BB89A402899C65BBCD04B494C" display-inline="no-display-inline"><enum>(b)</enum><header>Sunset of economic hardship and unemployment deferments</header><text display-inline="yes-display-inline">Section 455(f) of the Higher Education Act of 1965 (20 U.S.C.1087e(f)) is amended—</text> <paragraph id="H08B0D0A4442E423F9C3706866CAFA1D3"><enum>(1)</enum><text>in paragraph (2)—</text>
<subparagraph id="HC89AD3237558467388859A563B5CBD44"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>not in</quote> and inserting <quote>subject to paragraph (7), not in</quote> ; and</text></subparagraph> <subparagraph id="H7ACF064E64A7441D9FB9D353CCFB9A51"><enum>(B)</enum><text>in subparagraph (D), by striking <quote>not in</quote> and inserting <quote>subject to paragraph (7), not in</quote>; and </text></subparagraph></paragraph>
<paragraph id="H2B3D0406DD434B16A475A961BB34E125"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HE6897198E24F4DAA95A7E6499F8E8E3B" display-inline="no-display-inline"> <paragraph id="H71EA70434DDC42EAB8CC26D8E65B12C0"><enum>(7)</enum><header>Sunset of unemployment and economic hardship deferments</header><text display-inline="yes-display-inline">A borrower who receives a loan made under this part on or after July 1, 2025, shall not be eligible to defer such loan under subparagraph (B) or (D) of paragraph (2). </text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H068EADB0FEBF47E1B0B2663D67841AC2"><enum>(c)</enum><header>Forbearance on loans made under this part on or after July 1, 2025</header><text display-inline="yes-display-inline">Section 455(f) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(f)</external-xref>) is amended by adding at the end the following: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H0D04848BCE954E2499D52AB9A62726BC"> <paragraph id="H8B446261C7BB4DC28966AB616721ABD7"><enum>(8)</enum><header>Forbearance on loans made under this part on or after July 1, 2025</header><text display-inline="yes-display-inline">A borrower who receives a loan made under this part on or after July 1, 2025—</text>
<subparagraph id="H0CDDF1F822DA49DCB0C077E787A7870A"><enum>(A)</enum><text>may only be eligible for a forbearance on such loan pursuant to section 428(c)(3)(B) that does not exceed 9 months during any 24-month period; and</text></subparagraph> <subparagraph id="H8985170455674A91BC1796EE0C327B7D"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a borrower who is serving in a medical or dental internship or residency program (as such program is described in section 428(c)(3)(A)(i)(I)), may be eligible for a forbearance on such loan pursuant to 428(c)(3)(A)(i)(I), during which—</text>
<clause id="HED67ABBB970C486FA7F4374DDDA1199B"><enum>(i)</enum><text>for the first 4 12-month intervals, interest shall not accrue; and</text></clause> <clause id="HF1C9E99AF0AF4563B9FDE66EFB9DFB7D"><enum>(ii)</enum><text>for any subsequent 12-month interval, interest shall accrue.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="H50BABA37A7E64E2DBD8A4D73B927AD56"><enum>30023.</enum><header>Loan rehabilitation</header>
<subsection id="HB28B6D38E00C47AB87B3B463706B72FD"><enum>(a)</enum><header>Updating loan rehabilitation limits</header>
<paragraph id="H9CC29546E32E45868B2280DE0BC00AA2"><enum>(1)</enum><header>FFEL and Direct Loans</header><text display-inline="yes-display-inline">Section 428F(a)(5) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-6">20 U.S.C. 1078–6(a)(5)</external-xref>) is amended by striking <quote>one time</quote> and inserting <quote>two times</quote>.</text></paragraph> <paragraph id="H85BDB44289554C17BCF18440BB2CBFA8"><enum>(2)</enum><header>Perkins Loans</header><text display-inline="yes-display-inline">Section 464(h)(1)(D) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087dd">20 U.S.C. 1087dd(h)(1)(D)</external-xref>) is amended by striking <quote>once</quote> and inserting <quote>twice</quote>. </text></paragraph>
<paragraph id="H8FEC06E264FF4B368022020E2AF4CBB3"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall take effect on the date of enactment of this Act, and shall apply with respect to any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>).</text></paragraph></subsection> <subsection id="H669212B1F44744AF8466A765AA06C257"><enum>(b)</enum><header>Minimum monthly payment amount</header><text display-inline="yes-display-inline">Section 428F(a)(1)(B) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-6">20 U.S.C. 1078–6(a)(1)(B)</external-xref>) is amended by adding at the end the following: <quote>With respect a loan made under part D on or after July 1, 2025, a monthly payment amount described in subparagraph (A) may not be less than $10.</quote>.</text></subsection></section>
<section id="HC403466F6B714C47A7889C4A31D8BAAF" section-type="subsequent-section"><enum>30024.</enum><header>Public Service Loan Forgiveness</header>
<subsection id="H281266DC7C5D4426B25EB5074466A9AB"><enum>(a)</enum><header>Repayment Assistance Plan</header><text display-inline="yes-display-inline">Section 455(m)(1)(A) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(m)(1)(A)</external-xref>) is amended—</text> <paragraph id="H3F0686E4171D4A7C9FEF8313CC8AE0C4"><enum>(1)</enum><text>in clause (iii), by striking <quote>; or</quote> and inserting a semicolon; </text></paragraph>
<paragraph id="HD316AB0AB0B14482B7545A3FB2E7FBAE"><enum>(2)</enum><text>in clause (iv), by striking <quote>; and</quote> and inserting <quote>(as in effect on the day before the date of the repeal of subsection (e) of this section); or</quote>; and</text></paragraph> <paragraph id="HD68284AC244C40C196CDB9C5F0519C9A"><enum>(3)</enum><text>by adding at the end the following new clause: </text>
<quoted-block style="OLC" id="HEDE0BF48E016458894980FFE8A86ED02" display-inline="no-display-inline">
<clause id="H5579E05CD02948FCB660C1F1AE42D39D"><enum>(v)</enum><text display-inline="yes-display-inline">on-time payments under the Repayment Assistance Plan under section 455(q); and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H709F68BCBE9A4362B10A7F296D485505"><enum>(b)</enum><header>Public service job</header><text>Section 455(m)(3)(B) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(m)(3)(B)</external-xref>) is amended—</text>
<paragraph id="HFFE0971AE8DD4A11A77FF979759065CD"><enum>(1)</enum><text>by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly; </text></paragraph> <paragraph id="H884F09D6AF51449A983BB5BD7C75860C"><enum>(2)</enum><text>by striking <quote>The term</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H8D657B3E544A486687A6BC7820FE7792" display-inline="no-display-inline">
<clause id="H7FDDBAC0110942EF9866944CE8B9C82A"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The term</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HC340AF3E658541F1AF2521BC26CE73C7"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="HF0A478F05B5C4E6DBD72816A9DB7ABDA" display-inline="no-display-inline">
<clause id="H35DB9D20E4054B5D91DEB53AEB3FFA79"><enum>(ii)</enum><header>Exclusion</header><text display-inline="yes-display-inline">The term <quote>public service job</quote> does not include time served in a medical or dental internship or residency program (as such program is described in section 428(c)(3)(A)(i)(I)) by an individual who, as of June 30, 2025, has not borrowed a Federal Direct PLUS Loan or a Federal Direct Unsubsidized Stafford Loan for a program of study that awards a graduate credential upon completion of such program.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="HEC2118B6E22146519A01ECD85342D629" section-type="subsequent-section"><enum>30025.</enum><header>Student loan servicing</header><text display-inline="no-display-inline">Paragraph (1) of section 458(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087h">20 U.S.C. 1087h(a)(1)</external-xref>) is amended to read as follows:</text>
<quoted-block style="OLC" id="H639E6825EE95489AA76F1728F1510CAC" display-inline="no-display-inline">
<paragraph id="HB7ABF7695F034ACA8694F13FDEAEC5A7"><enum>(1)</enum><header>Additional mandatory funds for fiscal years 2025 and 2026</header><text display-inline="yes-display-inline">For each of the fiscal years 2025 and 2026 there shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) funds to be obligated for administrative costs under this part and part B, including the costs of the direct student loan programs under this part, not to exceed $500,000,000 in each such fiscal year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section></subtitle> <subtitle id="H0BEF0FFFD8B54549B0DD4EEB3ADD183A"><enum>D</enum><header>Pell Grants</header> <section id="HA141CF5746534811A597E54EC8C4570A"><enum>30031.</enum><header>Eligibility</header> <subsection id="H84243B72484A4AA2A92226FE0F455F0E"><enum>(a)</enum><header>Foreign income and Federal Pell Grant eligibility</header> <paragraph id="HA84BA9AF52664494804D593FF27487A0"><enum>(1)</enum><header>Adjusted gross income defined</header><text display-inline="yes-display-inline">Section 401(a)(2)(A) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(a)(2)(A)</external-xref>) is amended to read as follows:</text>
<quoted-block style="OLC" id="H28CDA50BAEEB466A9E73F2D60173252E" display-inline="no-display-inline">
<subparagraph id="H2805BB63AD7E4BC4B74A46F25FEC606B"><enum>(A)</enum><text display-inline="yes-display-inline">the term <quote>adjusted gross income</quote> means—</text> <clause id="H2E032A4216A44F70A21D190AF667AA1F"><enum>(i)</enum><text>in the case of a dependent student, for the second tax year preceding the academic year—</text>
<subclause id="HA970F2399A0848479E499F97C3961405"><enum>(I)</enum><text>the adjusted gross income (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/62">section 62</external-xref> of the Internal Revenue Code of 1986) of the student’s parents; plus</text></subclause> <subclause id="H67E7D4CDB365459C8B689B56852C645E"><enum>(II)</enum><text>the foreign income (as described in section 480(b)(5)) of the student’s parents; and</text></subclause></clause>
<clause id="H5F1F72C7D9BE4AC6B18D2C0CF9CBF875"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of an independent student, for the second tax year preceding the academic year—</text> <subclause id="H2F85BF48F6054F829C58EB9D0D90DF4C"><enum>(I)</enum><text>the adjusted gross income (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/62">section 62</external-xref> of the Internal Revenue Code of 1986) of the student (and the student’s spouse, if applicable); plus</text></subclause>
<subclause id="H8B077694C332411AAB4F15677443D002"><enum>(II)</enum><text>the foreign income (as described in section 480(b)(5)) of the student (and the student’s spouse, if applicable);</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H8797F234742D4AEEAB9982A8C4BA573D"><enum>(2)</enum><header>Sunset</header><text display-inline="yes-display-inline">Section 401(b)(1)(D) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(b)(1)(D)</external-xref>) is amended by striking <quote>A student</quote> and inserting <quote>For each academic year beginning before July 1, 2026, a student</quote>. </text></paragraph>
<paragraph id="H86F4F5D2879C421D84433BB721CCDDEB"><enum>(3)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 479A(b)(1)(B) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087tt">20 U.S.C. 1087tt(b)(1)(B)</external-xref>) is amended—</text> <subparagraph id="H1E223321A7F04F418AA6AB1E17FA8D06"><enum>(A)</enum><text>by striking clause (v); and</text></subparagraph>
<subparagraph id="H9434E5B4196C4736AC551E9CD47CEA71"><enum>(B)</enum><text>by redesignating clauses (vi) and (vii) as clauses (v) and (vi), respectively.</text></subparagraph></paragraph></subsection> <subsection id="H44974703EFB04DABB2D0DC6719F0F6F7"><enum>(b)</enum><header>Definition of full time enrollment for Federal Pell Grant eligibility</header><text>Section 401(a)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(a)(2)</external-xref>) is further amended—</text>
<paragraph id="HAB22BBA08AEF4DD2B43CF5ED880EC19D"><enum>(1)</enum><text>in subparagraph (E), by striking <quote>and</quote> after the semicolon;</text></paragraph> <paragraph id="H65FA06DDFFA34CF1BB70A9544BD7ACC9"><enum>(2)</enum><text>in subparagraph (F), by striking the period and inserting <quote>; and</quote>; and</text></paragraph>
<paragraph id="HD8181617F4A747FB908217DD0277AE4C"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="HD65E06E99AA9427098E5DD97946713FA" display-inline="no-display-inline"> <subparagraph id="H1A967C716B124B2CBFB2105C0531C6E2" commented="no"><enum>(G)</enum><text display-inline="yes-display-inline">notwithstanding section 481(a)(2)(A)(iii), the terms <quote>full time</quote> and <quote>full-time</quote> (except with respect to subsection (d)(4) when used as part of the term <quote>normal full-time workload</quote>) mean, with respect to a student enrolled in an undergraduate course of study, the student is expected to complete at least 30 semester or trimester hours or 45 quarter credit hours (or the clock hour equivalent) in each award year a student is enrolled in the course of study. </text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H12E1EF8DF1F14435BE5E65000139B092"><enum>(c)</enum><header>Federal Pell Grant ineligibility due to a high student aid index</header><text>Section 401(b)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-1">20 U.S.C. 1070a–1(b)(1)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H9214B14B04414CA09CD44595654A547E" display-inline="no-display-inline"> <subparagraph id="HA63230D3608D44B9BFA3E66F2271B357"><enum>(F)</enum><header>Ineligibility of students with a high student aid index</header><text display-inline="yes-display-inline">Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF6D04F3EBA9744C386119AC947778C7B"><enum>(d)</enum><header>No Federal Pell grant eligibility for students enrolled less than half time</header><text>Section 401 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>) is further amended—</text> <paragraph id="HA21FE49255A749488503B8DDBF42C64D"><enum>(1)</enum><text>in subsection (b)—</text>
<subparagraph id="H4C4BDAE97AF74F7E928C710351F471A3"><enum>(A)</enum><text>by striking <quote>(2) <header-in-text level="paragraph" style="OLC">Less</header-in-text></quote> and inserting <quote>(2)(A) <header-in-text level="subparagraph" style="OLC">Less</header-in-text></quote>; and</text></subparagraph> <subparagraph id="HEC748EA029C94A489B144A6B151C4F11"><enum>(B)</enum><text>by inserting after subparagraph (A) (as so designated by <internal-xref idref="H4C4BDAE97AF74F7E928C710351F471A3" legis-path="4.(a)(1)(A)">subparagraph (A)</internal-xref> of this subsection) the following new subparagraph:</text>
<quoted-block style="OLC" id="HEFC0382A26EF44299F08219E90B2DD06" display-inline="no-display-inline">
<subparagraph id="H81F83699BBE942C1AA8B046513BA355B" indent="up1"><enum>(B)</enum><header>Less than half-time enrollment</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (A), a student who first receives a Federal Pell Grant on or after July 1, 2026, shall not be eligible for an award under this subsection for any award year beginning after such date in which the student is enrolled in an eligible program of an institution of higher education on less than a half-time basis. The Secretary shall update the schedule of reductions described in subparagraph (A) in accordance with this subparagraph, including for students receiving the minimum Federal Pell Grant.</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H8CE5C951A4F44ADA8CC13B86B788E8FD"><enum>(2)</enum><text>in subsection (c)(6)(A), by inserting <quote>, and the eligibility requirement of enrollment on at least a half-time basis under subsection (b)(2),</quote> after <quote>(b)(1)</quote>; and</text></paragraph>
<paragraph id="HB48259AFDE9E4AB3956E89AB06683D0F"><enum>(3)</enum><text>in subsection (d)(5)(A), by inserting <quote>(and at least half time, in the case of a student who first receives a Federal Pell Grant under subsection (b) on or after July 1, 2026)</quote> after <quote>full time</quote>.</text></paragraph></subsection> <subsection id="H34F1A64556014C86A41439F279F4A956"><enum>(e)</enum><header>Effective date and application</header><text>The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year.</text></subsection></section>
<section id="H31D7381F4CE5415E8F6515718D7BE0A8" commented="no"><enum>30032.</enum><header>Workforce pell grants</header>
<subsection id="H01773B84DF25479BB089CC4771EE3B74"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 401 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>) is amended by adding at the end the following:— </text> <quoted-block id="H007EBF1835B44DA5A6EC594D3DD54071" style="OLC"> <subsection id="H1492E583180B48C4A6B8F5A0FD96AB30" commented="no"><enum>(k)</enum><header>Workforce pell grant program</header> <paragraph id="H48608EAC6D4943D6BA7C6F01ECF7552A" commented="no"><enum>(1)</enum><header>In general</header><text>For the award year beginning on July 1, 2026, and each subsequent award year, the Secretary shall award grants (to be known as <quote>Workforce Pell Grants</quote>) to eligible students under paragraph (2) in accordance with this subsection.</text></paragraph>
<paragraph id="HF9054FDC81C641049D350373FAE9DDF4" commented="no"><enum>(2)</enum><header>Eligible students</header><text>To be eligible to receive a Workforce Pell Grant under this subsection for any period of enrollment, a student shall meet the eligibility requirements for a Federal Pell Grant under this section, except that the student—</text> <subparagraph id="H0A1FF74737494861BE7A82A87B83B3C1" commented="no"><enum>(A)</enum><text>shall be enrolled, or accepted for enrollment, in an eligible program under section 481(b)(3) (hereinafter referred to as an <quote>eligible workforce program</quote>); and</text></subparagraph>
<subparagraph id="H658DFD8B85804BB1BE1F0EEDDD05E7C6" commented="no"><enum>(B)</enum><text>may not—</text> <clause id="HE3949F5F8CAF4F9BA1B1FC998DA8F3D5" commented="no"><enum>(i)</enum><text>be enrolled, or accepted for enrollment, in a program of study that leads to a graduate credential; or</text></clause>
<clause id="H9D330834B0414332B04DC28BE7CFBD10" commented="no"><enum>(ii)</enum><text>have attained such a credential.</text></clause></subparagraph></paragraph> <paragraph id="H67166AA37C5E439BBFF271E5B8B4FB6C" commented="no"><enum>(3)</enum><header>Terms and conditions of awards</header><text>The Secretary shall award Workforce Pell Grants under this subsection in the same manner and with the same terms and conditions as the Secretary awards Federal Pell Grants under this section, except that—</text>
<subparagraph id="H1681F1DDFAF54328BFA4D6236E5C54A3" commented="no"><enum>(A)</enum><text>each use of the term <term>eligible program</term> (except in subsections (b)(9)(A) and (d)(2)) shall be substituted by <quote>eligible workforce program under section 481(b)(3)</quote>; and</text></subparagraph> <subparagraph id="H7E0C04D9FD754F4A9C27C78D2254E474" commented="no"><enum>(B)</enum><text>a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce program in which the student is enrolled or accepted for enrollment is less than an academic year (in hours of instruction or weeks of duration) may still be eligible for a Workforce Pell Grant in an amount that is prorated based on the length of the program.</text></subparagraph></paragraph>
<paragraph id="H4BEFDCE59E4C45FCBC421B238B58174B" commented="no"><enum>(4)</enum><header>Prevention of double benefits</header><text>No eligible student described in paragraph (2) may concurrently receive a grant under both this subsection and—</text> <subparagraph id="HC7094C27457C4CC49EE4C47FB1196257" commented="no"><enum>(A)</enum><text>subsection (b); or</text></subparagraph>
<subparagraph id="H83CB32E500824EDB83474A5513AC6E6B" commented="no"><enum>(B)</enum><text>subsection (c).</text></subparagraph></paragraph> <paragraph id="H72F8A34F14FF42C09D6DA560381B4B36" commented="no"><enum>(5)</enum><header>Duration limit</header><text>Any period of study covered by a Workforce Pell Grant awarded under this subsection shall be included in determining a student’s duration limit under subsection (d)(5).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HEB47EF1484224C59A09FD40337E11BBE"><enum>(b)</enum><header>Program eligibility for workforce pell grants</header><text display-inline="yes-display-inline">Section 481(b) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088(b)</external-xref>) is amended—</text> <paragraph id="H7B87C35BBA2D4C28ADB659B41ED5060A"><enum>(1)</enum><text>by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and</text></paragraph>
<paragraph id="HEB024F7F662E4424A2022F83DB3A553A"><enum>(2)</enum><text>by inserting after paragraph (2) the following:</text> <quoted-block id="H62AEED8D150944158323D99EEEC84CE1" style="OLC"> <paragraph id="H03ABEC0F7CC24736BA124AFB836CFFDD" indent="up1"><enum>(3)</enum> <subparagraph id="H4416B0579DF2403DA3790D52FE30CD3E" display-inline="yes-display-inline" indent="up1"><enum>(A)</enum><text>A program is an eligible program for purposes of the Workforce Pell Grant program under section 401(k) only if—</text>
<clause id="H6B372EEC45044C08AF8415BC631557C0"><enum>(i)</enum><text>it is a program of at least 150 clock hours of instruction, but less than 600 clock hours of instruction, or an equivalent number of credit hours, offered by an eligible institution during a minimum of 8 weeks, but less than 15 weeks;</text></clause> <clause id="H9334014ACC054E38AF4F90315AF13C62"><enum>(ii)</enum><text>it is not offered as a correspondence course, as defined in 600.2 of title 34, Code of Federal Regulations (as in effect on September 20, 2020);</text></clause>
<clause id="H93E8D8585EEC436287A4F8D1C3933270"><enum>(iii)</enum><text>the Governor of a State, after consultation with the State board, determines that the program—</text> <subclause id="HCBEEF1C3843D43C7AECD53D7C0B42B54"><enum>(I)</enum><text>provides an education aligned with the requirements of high-skill, high-wage (as identified by the State pursuant to section 122 of the Carl D. Perkins Career and Technical Education Act (<external-xref legal-doc="usc" parsable-cite="usc/20/2342">20 U.S.C. 2342</external-xref>)), or in-demand industry sectors or occupations;</text></subclause>
<subclause id="H594C3CC3C2D345A9A9B3D770A3933947"><enum>(II)</enum><text>meets the hiring requirements of potential employers in the sectors or occupations described in subclause (I);</text></subclause> <subclause id="HF2393158A9754C7DB5F69B2D58808FFD" commented="no"><enum>(III)</enum><text>either—</text>
<item id="H9365933D14064A02A8B77037A7B9737D" commented="no"><enum>(aa)</enum><text>leads to a recognized postsecondary credential that is stackable and portable across more than one employer; or</text></item> <item id="H801CBD8D056149A2B4D4B135E7DA2E05" commented="no"><enum>(bb)</enum><text>with respect to students enrolled in the program—</text>
<subitem id="HCD6EADA9765D43609AD594C5AB600EC4" commented="no"><enum>(AA)</enum><text>prepares such students for employment in an occupation for which there is only one recognized postsecondary credential; and</text></subitem> <subitem id="HCEF8666C50AE4611BC75A6716ACEC95C" commented="no"><enum>(BB)</enum><text>provides such students with such a credential upon completion of such program; and</text></subitem></item></subclause>
<subclause id="H679C3AA87AFA4435884FF943F6DD8684" commented="no"><enum>(IV)</enum><text>prepares students to pursue 1 or more certificate or degree programs at 1 or more institutions of higher education (which may include the eligible institution providing the program), including by ensuring—</text> <item id="H4C47E3760D8B4AD7801C21D2E12D1866" commented="no"><enum>(aa)</enum><text>that a student, upon completion of the program and enrollment in such a related certificate or degree program, will receive academic credit for the Workforce Pell program that will be accepted toward meeting such certificate or degree program requirements; and</text></item>
<item id="HF0472CBCB47D456BA60C39F106488B32" commented="no"><enum>(bb)</enum><text>the acceptability of such credit toward meeting such certificate or degree program requirements; and</text></item></subclause></clause> <clause id="HC23C207FC93A4410A471028CD1F56C04"><enum>(iv)</enum><text display-inline="yes-display-inline">after the Governor of such State makes the determination that the program meets the requirements under clause (iii), the Secretary determines that—</text>
<subclause id="H171A97128679495BA1A3C910FC4D8DF4"><enum>(I)</enum><text display-inline="yes-display-inline">the program has been offered by the eligible institution for not less than 1 year prior to the date on which the Secretary makes a determination under this clause; </text></subclause> <subclause id="H4B6222290C7D43A5BF429DB71A59A03B"><enum>(II)</enum><text>for each award year, the program has a verified completion rate of at least 70 percent, within 150 percent of the normal time for completion;</text></subclause>
<subclause id="H1409F1F01FF742B2B96ED5D0039D6F1C"><enum>(III)</enum><text>for each award year, the program has a verified job placement rate of at least 70 percent, measured 180 days after completion; and</text></subclause> <subclause id="H9B3E1FE4C01441A7AC6D11BC145370DF" commented="no"><enum>(IV)</enum><text>for each award year, the median value-added earnings (as defined in section 420W) of students who completed such program for the most recent year for which data is available exceeds the median total price (as defined in section 454(d)(3)(D)) charged to students in such award year.</text></subclause></clause></subparagraph>
<subparagraph id="H7DD8D33F893F4708B18F15EB35E35EFB"><enum>(B)</enum><text>In this paragraph:</text> <clause id="H497626204A2446ED8111F3E9F3A7A38A" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">The term <quote>eligible institution</quote> means an institution of higher education (as defined in section 102), or any other entity that has entered into a program participation agreement with the Secretary under section 487(a) (without regard to whether that entity is accredited by a national recognized accrediting agency or association), which has not been subject, during any of the preceding 3 years, to—</text>
<subclause id="H2F4D184D3CFC4587824DDE7A37E8F3AB" commented="no"><enum>(I)</enum><text>any suspension, emergency action, or termination under this title;</text></subclause> <subclause id="H8792FA1BC6BF44909FC4CFD924716AE8" commented="no"><enum>(II)</enum><text>in the case of an institution of higher education, any adverse action by the institution’s accrediting agency or association that revokes or denies accreditation for the institution; or</text></subclause>
<subclause id="H9E90EEC62C5F4F8B853FAA184173D888"><enum>(III)</enum><text>any final action by the State in which the institution or other entity holds its legal domicile, authorization, or accreditation that revokes the institution’s or entity’s license or other authority to operate in such State.</text></subclause></clause> <clause id="HAD88DB183AAD4AEF9C7C50C3C86B3294"><enum>(ii)</enum><text display-inline="yes-display-inline">The term <quote>Governor</quote> means the chief executive of a State. </text></clause>
<clause id="HD539A56E4B9E4743B7C4F70389F62BFA"><enum>(iii)</enum><text>The terms <term>industry or sector partnership</term>, <term>in-demand industry sector or occupation</term>, <term>recognized postsecondary credential</term>, and <term>State board</term> have the meanings given such terms in section 3 of the Workforce Innovation and Opportunity Act.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H6580605DC7D7400D87D2319464C64F00" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Student eligibility</header><text display-inline="yes-display-inline">Section 484(a)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C. 1091(a)(1)</external-xref>) is amended by inserting <quote>or, for purposes of section 401(k), at an entity (other than an institution of higher education) that meets the requirements of section 481(b)(3)(B)(i)</quote> after <quote>section 487</quote>.</text></subsection>
<subsection id="HB85534A712C948C9AB31668B4A893890"><enum>(d)</enum><header>Effective date; applicability</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each succeeding award year. </text></subsection></section> <section id="H17CB4E4DC09C4A08B051C37D9E3A862A"><enum>30033.</enum><header>Pell shortfall</header><text display-inline="no-display-inline">Section 401(b)(7)(A) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(b)(7)(A)</external-xref>) is amended—</text>
<paragraph id="HDE8D104380ED43BBB8758799B689C467"><enum>(1)</enum><text>in clause (iii)—</text> <subparagraph id="HFFA4DA64E2BD4EE7AF88E631884ACEEB"><enum>(A)</enum><text>by striking <quote>$2,170,000,000</quote> and inserting <quote>$5,351,000,000</quote>; and </text></subparagraph>
<subparagraph id="HA762909916F14E869C91FE5DB2BA62FF"><enum>(B)</enum><text>by striking <quote>and</quote> at the end;</text></subparagraph></paragraph> <paragraph id="HE6251771D883423CB999CFCD42528F46"><enum>(2)</enum><text>in clause (iv)—</text>
<subparagraph id="HC9B42A5A111C41A48B4048078B34EA5F"><enum>(A)</enum><text>by striking <quote>$1,236,000,000</quote> and inserting <quote>$6,058,000,000</quote>; and</text></subparagraph> <subparagraph id="H2BFA0D90FBD947178559614044883724"><enum>(B)</enum><text>by striking <quote> and each succeeding fiscal year.</quote> and inserting a semicolon; and </text></subparagraph></paragraph>
<paragraph id="H701C74BDD65E4F81BD1043E720C5C7FF"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H30EC01678BED4197998B507244F26441"> <clause id="H6B8EF7DD3CCB4144BE41F47BEF3A934D"><enum>(v)</enum><text display-inline="yes-display-inline">$3,743,000,000 for fiscal year 2028; and</text></clause>
<clause id="HD39F07FC1BD74514BBC95C27EEF92FA9"><enum>(vi)</enum><text>$1,236,000,000 for each succeeding fiscal year.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></subtitle> <subtitle id="H0F8A0527320C48D3A55FF5D4AEBBE6AC"><enum>E</enum><header>Accountability</header> <section id="H3FDDE47488B740C0A71343C4B4015667"><enum>30041.</enum><header>Agreements with institutions</header><text display-inline="no-display-inline">Section 454 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087d">20 U.S.C. 1087d</external-xref>) is amended—</text>
<paragraph id="H9292AC858F2E43958048B47F936ADC29"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HC29B91A9A33B4054BB25CB69E429505C"><enum>(A)</enum><text>in paragraph (5), by striking <quote>and</quote> after the semicolon;</text></subparagraph>
<subparagraph id="HEEBE776610304D8484C8FAF4F2C99516"><enum>(B)</enum><text>by redesignating paragraph (6) as paragraph (7); and</text></subparagraph> <subparagraph id="H64761152395243E4BD01C063DDEEE77C"><enum>(C)</enum><text>by inserting after paragraph (5) the following new paragraph:</text>
<quoted-block id="H8E14C085F5674FBD8EB8DA2581547ED6" style="OLC">
<paragraph id="HBB3835928D74428C9D21E4E4EBFA0B42"><enum>(6)</enum><text>provide annual reimbursements to the Secretary in accordance with the requirements under subsection (d); and</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H09B320B3F36D4BB99F9649E4E4AEDD87"><enum>(2)</enum><text>by adding at the end the following new subsection:</text>
<quoted-block id="H968B2BA86D634FBD8B9F2393C49405F0" style="OLC">
<subsection id="HE2CDF0D271584662B3F616677E021EAD"><enum>(d)</enum><header>Reimbursement requirements</header>
<paragraph id="HB96D947E640D482496C87E8A962BD9FA"><enum>(1)</enum><header>Annual reimbursements required</header><text>Beginning in award year 2028–2029, each institution of higher education participating in the direct student loan program under this part shall, for qualifying student loans, remit to the Secretary, at such time as the Secretary may specify, an annual reimbursement for each student cohort of the institution, based on the non-repayment balance of such cohort and calculated in accordance with paragraph (3).</text></paragraph> <paragraph id="H08C383DAF38E4E77A43668DC057462BC"><enum>(2)</enum><header>Student cohorts</header> <subparagraph id="HFA7DCA6AD5DE4A1E8F936C94694A20F0"><enum>(A)</enum><header>Cohorts established</header><text>For each institution of higher education participating in the direct student loan program under this part, the Secretary shall establish student cohorts, beginning with award year 2027–2028, as follows: </text>
<clause id="H9548B24EFFC1486A8A3CFC742D11963A"><enum>(i)</enum><header>Completing student cohort</header><text>For each program of study at such institution, a student cohort comprised of all students who received Federal financial assistance under this title and who completed such program during such award year. </text></clause> <clause id="HAD08E9EECCA74847A6AB36E7FA7DBA76"><enum>(ii)</enum><header>Undergraduate non-completing student cohort</header><text>For such institution, a student cohort comprised of all students who received Federal financial assistance under this title, who were enrolled in the institution during the previous award year in a program of study leading to an undergraduate credential, and who at the time the cohort is established—</text>
<subclause id="HF2315DBFE3C3476AB7FC83CF97B7C7D6"><enum>(I)</enum><text>have not completed such program of study; and</text></subclause> <subclause id="HAF6719D8EC9F4D7D972F1A16054A5B52"><enum>(II)</enum><text>are not enrolled at the institution in any program of study leading to an undergraduate credential.</text></subclause></clause>
<clause id="H8963538ADA3341EFA857891E40A2C5BF"><enum>(iii)</enum><header>Graduate non-completing student cohort</header><text display-inline="yes-display-inline">For each program of study leading to a graduate credential at such institution, a student cohort comprised of all students who received Federal financial assistance under this title, who were enrolled in such program during the previous award year, and who at the time the cohort is established—</text> <subclause id="H8548C213EFCA4056AB525D738A19235D"><enum>(I)</enum><text>have not completed such program of study; and</text></subclause>
<subclause id="H4D32B153B78E4EA7B7582BF3DECD1EEC"><enum>(II)</enum><text>are not enrolled in such program.</text></subclause></clause></subparagraph> <subparagraph id="H0FA414C0636D4F61A2996978A6952645"><enum>(B)</enum><header>Qualifying student loan</header><text>For the purposes of this subsection, the term <term>qualifying student loan</term> means a loan made under this part on or after July 1, 2027, that—</text>
<clause id="H9A2BCF81185A47F69C3A4C4FF1638D1C"><enum>(i)</enum><text>was made to a student included in a student cohort of an institution or to a parent on behalf of such a student;</text></clause> <clause id="HFC9495CB9E874ED8A3F04BFA91FA9E95"><enum>(ii)</enum><text>except in the case of a loan described in clause (i) or (ii) of subparagraph (C), is not included in any other student cohort of any institution of higher education; </text></clause>
<clause id="H958ED29362C94FE9A6A997A1F9B5D29B"><enum>(iii)</enum><text>is not in—</text> <subclause id="HD1E437C398564CE38EF2F2CC64C40D6C" commented="no"><enum>(I)</enum><text>a medical or dental internship or residency forbearance described in section 428(c)(3)(A)(i)(I), section 428B(a)(2), section 428H(a), or section 685.205(a)(3) of title 34, Code of Federal Regulations;</text></subclause>
<subclause id="HB35F65D59F1E42108B081621F8740351"><enum>(II)</enum><text>a graduate fellowship deferment described in section 455(f)(2)(A)(ii);</text></subclause> <subclause id="H80853D9536554C2CBB1D4300FAD9C95C"><enum>(III)</enum><text>rehabilitation training program deferment described under section 455(f)(2)(A)(ii);</text></subclause>
<subclause id="HF2F2D64DCC894048BB7E6771DB63CC20"><enum>(IV)</enum><text>an in-school deferment described under section 455(f)(2)(A)(i);</text></subclause> <subclause id="H66E19A02F6ED45C094C33173D7E7C18C"><enum>(V)</enum><text>a cancer deferment described under section 455(f)(3);</text></subclause>
<subclause id="HBBE50C96F26E41E3B05B473685DB9102"><enum>(VI)</enum><text>a military service deferment described under section 455(f)(2)(C); or</text></subclause> <subclause id="H9AEBA6B470D94B7CA15324B32EA51D5B"><enum>(VII)</enum><text>a post-active duty student deferment described under section 493D; and</text></subclause></clause>
<clause id="HDCC674B706BD4EBCB445390FA2DD9F0B"><enum>(iv)</enum><text>is not in default.</text></clause></subparagraph> <subparagraph id="HA14D91CD1EF04C5FBE15AD4E2183E7FB"><enum>(C)</enum><header>Special circumstances</header> <clause id="H0F671196320840CA8C9A86EAEB56ADAE"><enum>(i)</enum><header>Multiple credentials</header><text>In the case of a student who completes two or more programs of study during the same award year, each qualifying student loan of the student shall be included in the student cohort for each of such program of study for such award year.</text></clause>
<clause id="H3E347C4BAD174B7496ADD704803C3D57"><enum>(ii)</enum><header>Treatment of certain consolidation loans</header><text>A Federal Direct Consolidation loan made under this title shall not be considered a qualifying student loan for a student cohort for an award year if all of the loans included in such consolidation loan are attributable to another student cohort.</text></clause> <clause id="H9F35AF52D9C74660B08B96E82BD38DA9"><enum>(iii)</enum><header>Consolidation after inclusion in a student cohort</header><text>If a qualifying student loan is consolidated into a consolidation loan under this title after such qualifying student loan has been included in a student cohort, the percentage of the consolidation loan that was attributable to such student cohort at the time of consolidation shall remain attributable to the student cohort for the life of the consolidation loan.</text></clause></subparagraph></paragraph>
<paragraph id="H12B3681CF82443C081FA63D4203EBBD4"><enum>(3)</enum><header>Calculation of reimbursement</header>
<subparagraph id="H4D56EB1A43DD460BBD80648477392C7B"><enum>(A)</enum><header>Reimbursement payment formula</header><text>For each student cohort of an institution of higher education established under this subsection, the annual reimbursement for such cohort shall be equal to—</text> <clause id="H62A75F87AFCE4EA7B01F50EF35C0E5EB"><enum>(i)</enum><text>the reimbursement percentage for the cohort, determined in accordance with subparagraph (B); multiplied by</text></clause>
<clause id="H20DDDBA4207A436E8E2A201E96A210A3"><enum>(ii)</enum><text>the non-repayment balance for the cohort for the award year, determined in accordance with subparagraph (C).</text></clause></subparagraph> <subparagraph id="H45BDDBE138E64D239FBFE4F1E23EB663"><enum>(B)</enum><header>Reimbursement percentage</header><text>The reimbursement percentage of a student cohort of an institution shall be determined by the Secretary when the cohort is established, shall remain constant for the life of the student cohort, and shall be determined as follows:</text>
<clause id="HE2ACC3B78337426EAB7043359A98D7D5"><enum>(i)</enum><header>Completing student cohorts</header><text>The reimbursement percentage of a completing student cohort shall be equal to the percentage determined by—</text> <subclause id="HCC23E0D9F4F3466BBFCC4EE6B3D7CF10"><enum>(I)</enum><text>subtracting from one the quotient of—</text>
<item id="HDB886BD853514E10B8085E7F8FD0D8A7" commented="no"><enum>(aa)</enum><text>the median value-added earnings of students who completed such program of study in the most recent award year for which such earnings data is available; divided by </text></item> <item id="H2EEC8A0750554217B74F47DF6C471877"><enum>(bb)</enum><text>the median total price charged to students included in such cohort; and</text></item></subclause>
<subclause id="H7C0A12B325A54FE78BBBB0571D48C013"><enum>(II)</enum><text>multiplying the difference determined under subclause (I) by 100.</text></subclause></clause> <clause id="HC5211B50D1DA4ABF92EC7AF792B39900"><enum>(ii)</enum><header>Special circumstances for completing student cohorts</header> <subclause id="H0ED5D7B6C5734CAE9D8BF75E262EF66A"><enum>(I)</enum><header>High-risk cohorts</header><text>Notwithstanding clause (i), if the median value-added earnings of a completing student cohort under clause (i)(I)(aa) is negative, the reimbursement percentage of the student cohort shall be 100 percent.</text></subclause>
<subclause id="H8DEAECAA13694A2AAEC431E2B9D8BD78"><enum>(II)</enum><header>Low-risk cohorts</header><text>Notwithstanding clause (i), if the median value-added earnings of a completing student cohort under clause (i)(I)(aa) exceeds the median total price of such cohort under clause (i)(I)(bb), the reimbursement percentage of the student cohort shall be 0 percent.</text></subclause></clause> <clause id="H8D7E1952760B42CA9116564B238B7A84"><enum>(iii)</enum><header>Non-completing student cohorts</header><text>The reimbursement percentage of a non-completing student cohort shall be determined based on the most recent data available in the award year in which the cohort is established, and—</text>
<subclause id="H52915148D9DE446D89F629F5E5AA90E9"><enum>(I)</enum><text>for an undergraduate non-completing student cohort, shall be equal to the percentage of undergraduate students who received Federal financial assistance under this title at such institution who—</text> <item id="H66C9041DC21C4D62BE99132EE65BEF75"><enum>(aa)</enum><text>did not complete an undergraduate program of study at the institution within 150 percent of the program length of such program; or</text></item>
<item id="H08074D739D5047EA91E008112F474EDC"><enum>(bb)</enum><text>only in the case of a two-year institution, did not, within 6 years after first enrolling at the two-year institution, complete a program of study at a four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded; and</text></item></subclause> <subclause id="HADA84E4116B74D858FB9BB7274EFAF38"><enum>(II)</enum><text>for a graduate non-completing student cohort, shall be equal to the percentage of students who received Federal financial assistance under this title at the institution for the applicable graduate program of study and who did not complete such program of study within 150 percent of the program length.</text></subclause></clause></subparagraph>
<subparagraph id="H5B0327548C714A21A85D9764111CA6C8"><enum>(C)</enum><header>Non-repayment loan balance</header>
<clause id="H64B0AC683AA74A6A9FD7C610E0D8347A"><enum>(i)</enum><header>In general</header><text>For each award year, the Secretary shall determine the non-repayment loan balance for such award year for each student cohort of an institution of higher education by calculating the sum of—</text> <subclause id="HAE962412FA4A43A2A8A580169188C3EB"><enum>(I)</enum><text>for loans in such cohort, the difference between the total amount of payments due from all borrowers on such loans during such year and the total amount of payments made by all such borrowers on such loans during such year; plus</text></subclause>
<subclause id="H83415CC24A14451AB18B2B11DD4ACF44"><enum>(II)</enum><text>the total amount of interest waived, paid, or otherwise not charged by the Secretary during such year under the income-based repayment plan described in section 455(q); plus</text></subclause> <subclause id="H6330A8FDDAAE4A6A87BC61AD56E2ECA6"><enum>(III)</enum><text>the total amount of principal and interest forgiven, cancelled, waived, discharged, repaid, or otherwise reduced by the Secretary under any act during such year that is not included in subclause (II) and was not discharged or forgiven under section 437(a), 428J, or section 455(m).</text></subclause></clause>
<clause id="H3131F057E47142BD9EE78B26B42F297F"><enum>(ii)</enum><header>Special circumstances</header><text>For the purpose of calculating the non-repayment loan balance of student cohorts under this paragraph, the Secretary shall—</text> <subclause id="HD7B0F5605152452CAE8B9ACAE7EDF1F9"><enum>(I)</enum><text>for each qualifying student loan in a student cohort that is included in another student cohort because the student who borrowed such loan completed two or more programs of study during the same award year, the sum of the amounts described in subclauses (I) through (III) of clause (i) for such qualifying student loan shall be divided equally among each of the student cohorts in which such loan is included; and</text></subclause>
<subclause id="H310951769F424C7A9022A97854C9D7D2"><enum>(II)</enum><text>for each consolidation loan in a student cohort—</text> <item id="H9547EF0AFD4645539176677CF3F13FB5"><enum>(aa)</enum><text>determine the percentage of the outstanding principal balance of the consolidation loan attributable to such student cohort—</text>
<subitem id="H14EB9FE9188E450484952CFFA17EF938"><enum>(AA)</enum><text>at the time of that loan was included in such cohort, in the case of a loan consolidated before inclusion in such cohort; or</text></subitem> <subitem id="HE08AB4EE31434DDC82C207EE85F6EFFC"><enum>(BB)</enum><text>at the time of consolidation, in the case of a loan consolidated after inclusion in such cohort; and</text></subitem></item>
<item id="H4B9F081616744D8C8B0497F02585032A"><enum>(bb)</enum><text display-inline="yes-display-inline">include in the calculations under clause (i) for such student cohort only the percentage of the sum of the amounts described in subclauses (I) through (III) of clause (i) for the consolidation loan for such year that is equal to the percentage of the consolidation loan determined under item (aa).</text></item></subclause></clause></subparagraph> <subparagraph id="H94119ED4AAD94C22B621690C1362E6F7"><enum>(D)</enum><header>Total price</header><text display-inline="yes-display-inline">With respect to a student who received Federal financial assistance under this title and who completes a program of study, the term <term>total price</term> means the total amount, before Federal financial assistance under this title was applied, a student was required to pay to complete the program of study. A student’s total price shall be calculated by the Secretary as the difference between—</text>
<clause id="H2372AE46A63C490CAC517426213FDA27"><enum>(i)</enum><text display-inline="yes-display-inline">the total amount of tuition and fees that were charged to such student before the application of any Federal financial assistance provided under this title; minus</text></clause> <clause id="H5EBA903B2E394AFF92872DAC4AC4A220"><enum>(ii)</enum><text>the total amount of grants and scholarships described in section 480(i) awarded to such student from non-Federal sources for such program of study.</text></clause></subparagraph></paragraph>
<paragraph id="HC1CDCE691F5C452CA2EF45DA99B13B1B"><enum>(4)</enum><header>Notification and remittance</header><text>Beginning with the first award year for which reimbursements are required under this subsection, and for each succeeding award year, the Secretary shall—</text> <subparagraph id="H7B47B9BFD8C64EA1AE3E60A492B7712C"><enum>(A)</enum><text>notify each institution of higher education of the amounts and due dates of each annual reimbursement calculated under paragraph (3) for each student cohort of the institution within 30 days of calculating such amounts; and</text></subparagraph>
<subparagraph id="H471260BED900420E81257356A5220FAC"><enum>(B)</enum><text>require the institution to remit such payments within 90 days of such notification.</text></subparagraph></paragraph> <paragraph id="H8CA3AE9FA58442018C6743190C7A2083"><enum>(5)</enum><header>Penalty for late payments</header> <subparagraph id="H2580BD55AD6B42F1B0ADA652A871C1D8"><enum>(A)</enum><header>Three-month delinquency</header><text>If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection within 90 days of receiving notification from the Secretary in accordance with paragraph (4), the institution shall pay to the Secretary, in addition to such reimbursement, interest on such reimbursement payment, at a rate that is the average rate applicable to the loans in such student cohort.</text></subparagraph>
<subparagraph id="H423311874C4F4D91A55F3AD1C67441CB"><enum>(B)</enum><header>Twelve-month delinquency</header><text>If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed in under subparagraph (A), within 12 months of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to make direct loans to any student enrolled in the program of study for which the institution has failed to make the reimbursement payments until such payment is made.</text></subparagraph> <subparagraph id="H22E8EB9AAA46488EA10C48B546F39B3A"><enum>(C)</enum><header>Eighteen-month delinquency</header><text>If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed under subparagraph (A), within 18 months of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to make direct loans or award Federal Pell Grants under section 401 to any student enrolled in the institution until such payment is made.</text></subparagraph>
<subparagraph id="HFF142B39FD4C4F4680ACC0F6C0DFDF7E"><enum>(D)</enum><header>Two-year delinquency</header><text>If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed under subparagraph (A), within 2 years of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to participate in any program under this title for a period of not less than 10 years.</text></subparagraph></paragraph> <paragraph id="H1731097235EE4F8F8C0CEA6F89C5D34F"><enum>(6)</enum><header>Relief for voluntary cessation of federal direct loans for a program of study</header><text>The Secretary shall, upon the request of an institution that voluntarily ceases to make Federal Direct loans to students enrolled in a specific program of study, reduce the amount of the annual reimbursement owed by the institution for each student cohort associated with such program by 50 percent if the institution assures the Secretary that the institution will not make Federal Direct loans to any student enrolled in such program of study (or any substantially similar program of study, as determined by the Secretary) for a period of not less than 10 award years, beginning with the first award year that begins after the date on which the Secretary reduces such reimbursement.</text></paragraph>
<paragraph id="H8604FF225E844B97AD496F387011164D" commented="no"><enum>(7)</enum><header>Reservation of funds for promise grants</header><text>Notwithstanding any other provision of this Act, the Secretary shall reserve the funds remitted to the Secretary as reimbursements in accordance with this subsection, and such funds shall be made available to the Secretary only for the purpose of awarding PROMISE grants in accordance with subpart 11 of part A of this title.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HB50A67B809354E109994F7D725A06DBD" display-inline="no-display-inline" section-type="subsequent-section"><enum>30042.</enum><header>Campus-based aid programs</header> <subsection id="H1A6C769F713B484B8A20AFAE22C70F03" display-inline="no-display-inline"><enum>(a)</enum><header>Promise grants</header><text>Part A of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070c">20 U.S.C. 1070c et seq.</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HFCD4D324BA3948FCBA174E3DBDC82D7F">
<subpart id="HD36CD9491746469F80D422EDCC48C90C"><enum>11</enum><header>Promoting Real Opportunities to Maximize Investments and Savings in Education</header>
<section id="HDF3B1954BCA74A768FF06DD29E773B7B"><enum>420S.</enum><header>Promise grants</header><text display-inline="no-display-inline">For award year 2028–2029 and each succeeding award year, from reserved funds remitted to the Secretary in accordance with section 454(d) and additional funds made available under section 420V, as necessary, the Secretary shall award PROMISE grants to eligible institutions to carry out the activities described in section 420U(c). PROMISE grants awarded under this subpart shall be awarded on a noncompetitive basis to each eligible institution that submits a satisfactory application under section 420T for a 6-year period in an amount that is determined in accordance with section 420U. </text></section> <section id="H2209E3D2ECA247A28BDF046B9C5F1860"><enum>420T.</enum><header>Eligible institutions; application</header> <subsection id="HEAC0098E56C74B8BB5E4B810CD812398"><enum>(a)</enum><header>Eligible institution</header><text>To be eligible for a PROMISE grant under this subpart, an institution shall—</text>
<paragraph id="HDAD22EA833ED4C74BFE42571E8BE5C19"><enum>(1)</enum><text>be an institution of higher education under section 102, except that an institution described in section 102(a)(1)(C) shall not be an eligible institution under this subpart; and</text></paragraph> <paragraph id="HA56495134CCB45C0BC10774E97D99666"><enum>(2)</enum><text>meet the maximum total price guarantee requirements under subsection (c).</text></paragraph></subsection>
<subsection id="H5F6B34F8F1854924B57451BF0C135DF2"><enum>(b)</enum><header>Application</header><text>An eligible institution seeking a PROMISE grant under this subpart (including a renewal of such a grant) shall submit to the Secretary an application, at such time as the Secretary may require, containing the information required under this subsection. Such application shall—</text> <paragraph id="HC4A20DD86FCD47DD8DD581841BA96F51"><enum>(1)</enum><text>demonstrate that the institution—</text>
<subparagraph id="H25FC92231EF64CE1B70F582643FB5258"><enum>(A)</enum><text>meets the maximum total price guarantee requirements under subsection (c); and</text></subparagraph> <subparagraph id="HCFBBE801E6654EB3AC049948A5D9AFA6"><enum>(B)</enum><text>will continue to meet the maximum total price guarantee requirements for each award year during the grant period with respect to students first enrolling at the institution for each such award year;</text></subparagraph></paragraph>
<paragraph id="H84B47F3D8A164A199A074EEE2BA91A4E" commented="no"><enum>(2)</enum><text>describe how grant funds awarded under this subpart will be used by the institution to carry out activities related to—</text> <subparagraph id="HCCDCCBB678F04307A5549A76801B4CB2" commented="no"><enum>(A)</enum><text>increasing postsecondary affordability, including—</text>
<clause id="H35A54897A3A241CDBA8079974914CC18" commented="no"><enum>(i)</enum><text>the expansion and continuation of the maximum total price guarantee requirements under subsection (c); and</text></clause> <clause id="H0E83A84358054CE4B7AE96CD7CDAD60B" commented="no"><enum>(ii)</enum><text>any other activities to be carried out by the institution to increase postsecondary affordability and minimize the maximum total price for completion paid by students receiving need-based student aid;</text></clause></subparagraph>
<subparagraph id="HB1BD850D23484A79A732E1A39C6F97FF" commented="no"><enum>(B)</enum><text>increasing postsecondary access, which may include—</text> <clause id="H9A03C416C3324CBDA092FEEEAE5310DC" commented="no"><enum>(i)</enum><text>the activities described in section 485E of this Act; and</text></clause>
<clause id="HF495B9797320438EA4F453A14BB43A5E" commented="no"><enum>(ii)</enum><text>any other activities to be carried out by the institution to increase postsecondary access and expand opportunities for low- and middle-income students; and</text></clause></subparagraph> <subparagraph id="HC3DDAB5503FD46AE9703BB128176638E" commented="no"><enum>(C)</enum><text>increasing postsecondary student success, which may include—</text>
<clause id="H286F2D3BAD6C4EF8A9153AF108F5A808" commented="no"><enum>(i)</enum><text>activities to improve completion rates and reduce time to credential;</text></clause> <clause id="H0EFC4A8F988B4C58BE7C594105172635" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">activities to align programs of study with the needs of employers, including with respect to in-demand industry sectors or occupations (as defined in section 3 of the Workforce Innovation and Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/29/3102">29 U.S.C. 3102</external-xref>)); and</text></clause>
<clause id="H09BE4EB3B30048B49BDF3B54661A16C7" commented="no"><enum>(iii)</enum><text>any other activities to be carried out by the institution to increase value-added earnings and postsecondary student success;</text></clause></subparagraph></paragraph> <paragraph id="HB7DA220E73154284920DA2FF1CB0D8D3" commented="no"><enum>(3)</enum><text>describe—</text>
<subparagraph id="HCBBECDA0EDA04E71B2799BA95F933F1C" commented="no"><enum>(A)</enum><text>how the institution will evaluate the effectiveness of the institution’s use of grant funds awarded under this subpart; and</text></subparagraph> <subparagraph id="H5622B24BBE9149DCA27376E596792E9B" commented="no"><enum>(B)</enum><text>how the institution will collect and disseminate information on promising practices developed with the use of such grant funds; and</text></subparagraph></paragraph>
<paragraph id="H724F04C6638843839B7162AF0C89D97A" commented="no"><enum>(4)</enum><text>in the case of an institution that has previously received a grant under this subpart, contain the evaluation required under paragraph (3) for each previous grant.</text></paragraph></subsection> <subsection id="H9FE414B89E4448CDBFE214F9B11C2AC4"><enum>(c)</enum><header>Maximum total price guarantee requirements</header><text>As a condition of eligibility for a PROMISE grant under this subpart, an institution shall—</text>
<paragraph id="H4CBCE8B789534B229B5EA46E4D69DE94"><enum>(1)</enum><text display-inline="yes-display-inline">for each award year beginning after the date of enactment of this subpart, not later than 1 year before the start of each such award year (except that, for the first award year beginning after such date of enactment, the institution shall meet these requirements as soon as practicable after such date of enactment), determine the maximum total price for completion, in accordance with subsection (e), for each program of study at the institution applicable to students in each income category and student aid index category (as determined by the Secretary) and publish such information on the institution’s website and in the institution’s catalog, marketing materials, or other official publications; </text></paragraph> <paragraph id="HEB637DCEC3E74CE08D9C94D1BC862917"><enum>(2)</enum><text>for the award year for which the institution is applying for a PROMISE grant, and at least 1 award year preceding such award year, provide to each student who first enrolls, or plans to enroll, in the institution during the award year and who receives Federal financial aid under this title a maximum total price guarantee, in accordance with this section, for the minimum guarantee period applicable to the student; and</text></paragraph>
<paragraph id="H270088A94F304144B77C78DD66AE0007"><enum>(3)</enum><text>provide to the Secretary an assurance that the institution will continue to meet each of the maximum total price guarantee requirements under this subsection for students who first enroll, or plan to enroll, in the institution during each award year included in the grant period.</text></paragraph></subsection> <subsection id="H889DC15BB313477E81E95E3E443D1345"><enum>(d)</enum><header>Duration of minimum guarantee period</header> <paragraph id="H0899540B6E614C8191B5D7F3AE97CE8B" commented="no"><enum>(1)</enum><header>In general</header><text>The minimum period during which a student shall be provided a guarantee under subsection (c) with respect to the maximum total price for completion of a program of study at an institution shall be the average, for the 3 most recent award years for which data are available, of the median time to credential of students who completed any undergraduate program of study at the institution during each such award year, except that such minimum guarantee period shall not be less than the program length of the program of study in which the student is enrolled.</text></paragraph>
<paragraph id="H57A2F75261544D1AAEB127490FF632CD"><enum>(2)</enum><header>Limitation</header><text>An institution shall not be required to provide a maximum total price guarantee under subsection (c) to a student after the conclusion of the 6-year period beginning on the first day on which the student enrolled at such institution.</text></paragraph></subsection> <subsection id="H8F6F47E08C374A27B1FC054F8C408DC4"><enum>(e)</enum><header>Determination of maximum total price for completion</header> <paragraph id="H18B83BC4D05444FAACC8C869FCB41353"><enum>(1)</enum><header>In general</header><text>For the purposes of subsection (c), an institution shall determine, prior to the first award year in which a student enrolls at the institution, the maximum total price that may be charged to the student for completion of a program of study at the institution for the minimum guarantee period applicable to a student, before application of any Federal Pell Grants or other Federal financial aid under this title. Such a maximum total price for completion shall be determined for students in each income category and student aid index category (as determined by the Secretary). In determining the maximum total price for completion to be charged to each such category of students, the institution may consider the ability of a category of students to pay tuition and fees, but may not include in such consideration any Federal Pell Grants or other Federal financial aid awards that may be available to such category of students under this title.</text></paragraph>
<paragraph id="H2FE67E3477AE4FC1900E2B30E44046D8"><enum>(2)</enum><header>Multiple maximum total price guarantees</header><text>In the event that a student receives more than 1 maximum total price guarantee because the student is included in more than 1 category of students for which the institution determines a maximum total price guarantee amount for the purposes of subsection (c), the maximum total price guarantee applicable to such student for the purposes of this section shall be equal to the lowest such guarantee amount.</text></paragraph></subsection></section> <section id="HED9D617F69534A5497875B7326A86664"><enum>420U.</enum><header>Grant amounts; flexible use of funds</header> <subsection id="H721436AAA35B4255B2EBBAA8C09448ED"><enum>(a)</enum><header>Grant amount formula</header> <paragraph id="HB64BE5D3841C4E46BE70532CB137F1DE"><enum>(1)</enum><header>Formula</header><text>Subject to subsection (b) and section 420V(b), the amount of a PROMISE grant for an eligible institution for each year of the grant period shall be calculated by the Secretary annually and shall be equal to the amount determined by multiplying—</text>
<subparagraph id="H5487B9FDCB9D4A43888EEEEA305D9607"><enum>(A)</enum><text>the lesser of—</text> <clause id="HB5CEB6E31C5A4979A916F0C321B19A08"><enum>(i)</enum><text>the difference determined by subtracting one from the quotient of—</text>
<subclause id="HC8530125CFB1449C8F09FA93722B6F5D" commented="no"><enum>(I)</enum><text>the average, for the 3 most recent award years for which data are available, of the median value-added earnings for each such award year of students who completed any program of study of the institution; divided by</text></subclause> <subclause id="H8985FBE93D424B158EFC67A78376DC27"><enum>(II)</enum><text>the average, for the 3 most recent award years for which data are available, of the maximum total price for completion determined under section 420T(e) applicable for each such award year to students enrolled in the institution in any program of study who received financial aid under this title; or</text></subclause></clause>
<clause id="HE1A2C5FBE707438C9282020890B46A47"><enum>(ii)</enum><text>the number two;</text></clause></subparagraph> <subparagraph id="H92E6D12D67D44EEAB1B51DEDC48099E9"><enum>(B)</enum><text display-inline="yes-display-inline">the average, for the 3 most recent award years for which data are available, of the total dollar amount of Federal Pell Grants awarded to students enrolled in the institution in each such award year; and</text></subparagraph>
<subparagraph id="HEC5AEFF140834C8B8DD39E2F5F7A7840"><enum>(C)</enum><text display-inline="yes-display-inline">the average, for the 3 most recent award years for which data are available, of the percentage of low-income students who received Federal financial assistance under this title who were enrolled in the institution in each such award year who—</text> <clause id="H11C4DBDC806F4654ABF80496BB6F899E"><enum>(i)</enum><text>completed a program of study at the institution within 100 percent of the program length of such program; or</text></clause>
<clause id="HB6B3C77542124698B86BAC3AE642868D"><enum>(ii)</enum><text>only in the case of a two-year institution or a less than two-year institution—</text> <subclause id="H3181E542E73D46C787E32E631FA16138"><enum>(I)</enum><text>transfer to a four-year institution; and</text></subclause>
<subclause id="H712984A12C424254B708AC76EFDADFA5"><enum>(II)</enum><text>within 4 years after first enrolling at the two-year or less than two-year institution, complete a program of study at the four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded.</text></subclause></clause></subparagraph></paragraph> <paragraph id="H35A4F06F5CDE42648623A42B2A00D347"><enum>(2)</enum><header>Definition of low-income</header><text>In this section, the term <term>low-income</term>, when used with respect to a student, means that the student’s family income does not exceed the maximum income in the lowest income category (as determined by the Secretary).</text></paragraph></subsection>
<subsection id="HBB13304954AB4BCA991066F697B6DD7F"><enum>(b)</enum><header>Maximum grant amount</header><text>Notwithstanding subsection (a), the maximum amount an eligible institution may receive annually for a grant under this subpart shall be the amount equal to—</text> <paragraph id="HEC5C26720EBE46A497F22E155E7E828B"><enum>(1)</enum><text>the average, for the 3 most recent award years, of the number of students enrolled in the institution in an award year who receive Federal financial aid under this title; multiplied by</text></paragraph>
<paragraph id="H60C069B8DAC849A79DF1D4634CB67FE1"><enum>(2)</enum><text display-inline="yes-display-inline">$5,000.</text></paragraph></subsection> <subsection id="H16A05D8FF34A44EA9F38970D09826CC7"><enum>(c)</enum><header>Flexible use of funds</header><text>A PROMISE grant awarded under this subpart shall be used by an eligible institution to—</text>
<paragraph id="H80261F79E02944238F66A45F9164ABBB"><enum>(1)</enum><text>carry out activities included in the institution’s application for such grant related to postsecondary affordability, access, and student success; </text></paragraph> <paragraph id="H4BBB3C4F1E8141DF8D40DCD8C5DFF5FD"><enum>(2)</enum><text>evaluate the effectiveness of the activities carried out with such grant in accordance with section 420T(b)(3)(A); and</text></paragraph>
<paragraph id="HE826DCFF1BCA4A8FB8D1C04D29A95371"><enum>(3)</enum><text>collect and disseminate promising practices related to the activities carried out with such grant, in accordance with section 420T(b)(3)(B).</text></paragraph></subsection></section> <section id="H2F7C0C75D61E488EB1C7D5D5FF1CBC2A"><enum>420V.</enum><header>Availability of funds</header> <subsection id="H14549E5CCE234F4F8EDE596D7AD4B632" commented="no"><enum>(a)</enum><header>Used of reserved funds</header> <paragraph id="H9C2EE954BAA94E19AF8C703AF5EE5E60" commented="no"><enum>(1)</enum><header>Primary funds</header><text>To carry out this subpart, there shall be available to the Secretary any funds remitted to the Secretary as reimbursements in accordance with section 454(d) for any award year.</text></paragraph>
<paragraph id="H49758203545C4B76A617DD80CC669DBF" commented="no"><enum>(2)</enum><header>Secondary funds</header><text display-inline="yes-display-inline">Beginning award year 2028–2029, if the amounts made available to the Secretary under paragraph (1) to carry out this subpart in any award year are insufficient to fully fund the PROMISE grants awarded under this subpart in such award year, there shall be available to the Secretary, in addition to such amounts, any funds returned to the Secretary under section 484B in the previous award year.</text></paragraph></subsection> <subsection id="H6DBAF2D1B1534B669D95DFD2F358A9BD"><enum>(b)</enum><header>Reduction of grant amount in case of insufficient funds</header> <paragraph id="H26994EEAC0AB442984D5F1736817BD28"><enum>(1)</enum><header>In general</header><text>If the amounts made available to the Secretary under subsection (a) to carry out this subpart for an award year are not sufficient to provide grants to each eligible institution in the amount determined under section 420U for such award year, the Secretary shall reduce each such grant amount by the applicable percentage described in paragraph (2).</text></paragraph>
<paragraph id="H7B76DC08A047423AB6675F6A45E0D16B"><enum>(2)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">The applicable percentage described in this paragraph is the percentage determined by dividing—</text> <subparagraph id="HA498B530E034427DA1BAD6D0B82CAD63"><enum>(A)</enum><text>the amounts made available under subsection (a) for the award year described in paragraph (1); by</text></subparagraph>
<subparagraph id="HB87079DEA91241EABFE121C071B0012C"><enum>(B)</enum><text display-inline="yes-display-inline">the total amount that would be necessary to provide grants to all eligible institutions in the amounts determined under section 420U for such award year.</text></subparagraph></paragraph></subsection></section> <section id="H67ABB5AA616D498580C42FB9ADE9F0F6"><enum>420W.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="HC6A046D61C2F48C2900E8B474516BB40"><enum>(1)</enum><header>Value-added earnings</header>
<subparagraph id="H7DEF4DFD1A8240508F2519FD10126E7F" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">With respect to a student who received Federal financial aid under this title and who completed a program of study offered by an institution of higher education, the term <term>value-added earnings</term> means—</text> <clause id="H5DE95008AF1D451A92F9FFCC37CD69BE" commented="no"><enum>(i)</enum><text>the annual earnings of such student measured during the applicable earnings measurement period for such program (as determined under subparagraph (C)); minus</text></clause>
<clause id="HBFFC24FB3C144983AE53D838004E4541" commented="no"><enum>(ii)</enum><text>in the case of a student who completed a program of study that awards—</text> <subclause id="H7C9DBA6C5BB540FD9F2D7744D5D9DB14" commented="no"><enum>(I)</enum><text>an undergraduate credential, 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>) for such year; or</text></subclause>
<subclause id="H5E76432DB51A443997A1E0B33FB5FFF9" commented="no"><enum>(II)</enum><text>a graduate credential, 300 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>) for such year.</text></subclause></clause></subparagraph> <subparagraph id="H1C81330037534F679CE2B2948C2355D8" commented="no"><enum>(B)</enum><header>Geographic adjustment</header> <clause id="HA85F91FDA3654A7393C2D770CE680053" commented="no"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the Secretary shall use the geographic location of the institution at which a student completed a program of study to adjust the value-added earnings of the student calculated under subparagraph (A) by dividing—</text>
<subclause id="HC354C78E717A49B39911AA3122F4849C" commented="no"><enum>(I)</enum><text>the difference between clauses (i) and (ii) of such subparagraph; by</text></subclause> <subclause id="H8CAFCCD797C34D269F89B1B54D8CE6A4" commented="no"><enum>(II)</enum><text>the most recent regional price parity index of the Bureau of Economics Analysis for the State or, as applicable, metropolitan area in which such institution is located.</text></subclause></clause>
<clause id="HC81CF468CDF841BB87CBBB44997E3D21" commented="no"><enum>(ii)</enum><header>Exception</header><text>The value-added earnings of a student calculated under subparagraph (A) shall not be adjusted based on geographic location in accordance with clause (i) if such student attended principally through distance education.</text></clause></subparagraph> <subparagraph id="H3DD69F691DE7455DB0734558E6532CD4" commented="no" display-inline="no-display-inline"><enum>(C)</enum><header>Earnings measurement period</header> <clause id="H1E4D061CB7854626B41715CF2D28E4E1" commented="no"><enum>(i)</enum><header>In general</header><text>For the purpose of calculating the value-added earnings of a student, except as provided in clause (ii), the annual earnings of a student shall be measured—</text>
<subclause id="H00E3EB18BB064C85B52BD7D92EA836C2" commented="no"><enum>(I)</enum><text>in the case of a program of study that awards an undergraduate certificate, post baccalaureate certificate, or graduate certificate, 1 year after the student completes such program;</text></subclause> <subclause id="HE78D8E1DF44342658C96C897826ED0C6" commented="no"><enum>(II)</enum><text>in the case of a program of study that awards an associate’s degree or master’s degree, 2 years after the student completes such program; and</text></subclause>
<subclause id="H12A677BE97654408989BB8EA01210073" commented="no"><enum>(III)</enum><text>in the case of a program of study that awards a bachelor’s degree, doctoral degree, or professional degree, 4 years after the student completes such program.</text></subclause></clause> <clause id="HB15C550FAC0B481A9BB47DA4AEF71874" commented="no"><enum>(ii)</enum><header>Exception</header><text>The Secretary may, as the Secretary determines appropriate based on the characteristics of a program of study, extend an earnings measurement period described in clause (i) for a program of study that—</text>
<subclause id="H9866B6908826484490227B7542B48399" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">requires completion of an additional educational program (such as a residency or fellowship) after completion of the program of study in order to obtain licensure or board certification associated with the credential awarded for such program of study; and</text></subclause> <subclause id="H2ECFD3C4FA8949A6BD54CCE5120ABE09" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">when combined with the program length of such additional educational program for licensure or board certification, has a total program length that exceeds the relevant earnings measurement period prescribed for such program of study under clause (i),</text></subclause><continuation-text commented="no" continuation-text-level="clause">except that in no case shall the annual earnings of a student be measured more than 1 year after the student completes such additional educational program.</continuation-text></clause></subparagraph></paragraph>
<paragraph id="H44EAC15329DA40769AE62EC07BD42F76"><enum>(2)</enum><header>Program length</header><text display-inline="yes-display-inline">The term <term>program length</term> means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study.</text></paragraph></section></subpart><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="H4313102FA2744AE69FE48521C9912656" commented="no"><enum>(b)</enum><header>Institutional refunds</header><text>Section 484B of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091b">20 U.S.C. 1091b</external-xref>) is amended by adding at the end the following: </text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H6F816655645E411EA5483280406B8C6F">
<subsection id="H37EE01EEA1C04197A04048B807DD35B7" commented="no"><enum>(f)</enum><header>Reservation of funds for PROMISE grants</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act, the Secretary shall reserve the funds returned to the Secretary under this section for 1 year after the return of such funds for the purpose of awarding PROMISE grants in accordance with subpart 4 of part A of this title.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></subtitle> <subtitle id="H9138A5F7C9B54446AD124DE159567080"><enum>F</enum><header>Regulatory Relief</header> <section id="H49ACE998F8434B9AA0C1F31273A79463"><enum>30051.</enum><header>Regulatory relief</header> <subsection id="HB0088CA0A478443EB20737F95C0C11F8" commented="no"><enum>(a)</enum><header>90/10 rule</header><text display-inline="yes-display-inline">Section 487 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1094">20 U.S.C. 1094</external-xref>) is amended—</text>
<paragraph id="H474808C065DA485F99A645D5D9B8DAFA" display-inline="no-display-inline" commented="no"><enum>(1)</enum><text>in subsection (a), by repealing paragraph (24); and</text></paragraph> <paragraph id="HB587241208714EA28E2257251A9E691E" commented="no"><enum>(2)</enum><text>by repealing subsection (d).</text></paragraph></subsection>
<subsection id="H9B9E0C18B7AB47DBB0587BCB7A547DBA"><enum>(b)</enum><header>Gainful employment</header><text>The Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001 et seq.</external-xref>) is amended—</text> <paragraph id="HFD6A56B78AF644E4A9C2BF4184E5DEE5"><enum>(1)</enum><text>in section 101(b)(1), by striking <quote>gainful employment in</quote>;</text></paragraph>
<paragraph id="H70D3B76CC6234E51BF62784C31D66593"><enum>(2)</enum><text>in section 102—</text> <subparagraph id="HFF80360A7926483C88B868A63690C6E1"><enum>(A)</enum><text>in subsection (b)(1)(A)(i), by striking <quote>gainful employment in</quote>; and</text></subparagraph>
<subparagraph id="H0EFF6C81B91349EE9D4F0A81C96741B7"><enum>(B)</enum><text>in subsection (c)(1)(A), by striking <quote>gainful employment in</quote>; and</text></subparagraph></paragraph> <paragraph id="HBC32749AA6314F49B35A1DFF77B8CAF9"><enum>(3)</enum><text>in section 481(b)(1)(A)(i), by striking <quote>gainful employment in</quote>. </text></paragraph></subsection>
<subsection id="H1AD8B694C1D84F029C7377B62A039A03"><enum>(c)</enum><header>Other repeals</header><text>The following regulations (including any supplement or revision to such regulations) are repealed and shall have no legal effect:</text> <paragraph id="H37936FF002074972A6AE1AB872AF7C2B"><enum>(1)</enum><header>Closed school discharges</header><text>Sections 674.33(g), 682.402(d), and 685.214 of title 34, Code of Federal Regulations (relating to closed school discharges), as added or amended by the final regulations published by the Department of Education in the Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et seq.).</text></paragraph>
<paragraph id="H7B1580F4C796476E913CE369F2DA8BF1"><enum>(2)</enum><header>Borrower defense to repayment</header><text>Subpart D of part 685 of title 34, Code of Federal Regulations (relating to borrower defense to repayment), as added or amended by the final regulations published by the Department of Education in the Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et seq.).</text></paragraph></subsection> <subsection id="H145AE3FBDA0A43BAA110CF6B4C0BAC63" commented="no"><enum>(d)</enum><header>Effect of repeals</header><text>Any regulations relating to closed school discharges or borrower defense to repayment that took effect on July 1, 2020, are restored and revived as such regulations were in effect on such date.</text></subsection>
<subsection id="H34F50EE0F6F442619C6D9724CF9CE035"><enum>(e)</enum><header>Prohibition</header><text>The Secretary of Education may not implement any rule, regulation, policy, or executive action specified in this section (or a substantially similar rule, regulation, policy, or executive action) unless authority for such implementation is explicitly provided in an Act of Congress.</text></subsection></section></subtitle> <subtitle id="HE2176EDDBFD543F1AC23996211C1D222"><enum>G</enum><header>Limitation on Authority</header> <section id="H5E64A7F3A85D4AD181BC84FB7E1D32E6"><enum>30061.</enum><header>Limitation on authority of the Secretary to propose or issue regulations and executive actions</header><text display-inline="no-display-inline">Part G of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088 et seq.</external-xref>) is amended by inserting after section 492 the following:</text>
<quoted-block style="OLC" id="H7AEFB511281D4AA49DCDCCBA751EE4CE">
<section id="HC17561833FDB43CF81B3D8B92B8BD8B2"><enum>492A.</enum><header>Limitation on authority of the Secretary to propose or issue regulations and executive actions</header>
<subsection id="H4BF6017ADA6F45F5A25A9B3A491AA825"><enum>(a)</enum><header>Draft regulations</header><text>Beginning on the date of enactment of this section, a draft regulation implementing this title (as described in section 492(b)(1)) that is determined by the Secretary to be economically significant shall be subject to the following requirements (regardless of whether negotiated rulemaking occurs):</text> <paragraph id="H44CE54062C8F40C9BF75FC4567EF406E"><enum>(1)</enum><text>The Secretary shall determine whether the draft regulation, if implemented, would result in an increase in a subsidy cost.</text></paragraph>
<paragraph id="H5F17A7C278AA48E698D0112F29CCC91C"><enum>(2)</enum><text>If the Secretary determines under paragraph (1) that the draft regulation would result in an increase in a subsidy cost, then the Secretary may not take any further action with respect to such regulation.</text></paragraph></subsection> <subsection id="HD2E1D527BD8946C0BA9D8DC9AF954C0C"><enum>(b)</enum><header>Proposed or final regulations and executive actions</header><text>Beginning on the date of enactment of this section, the Secretary may not issue a proposed rule, final regulation, or executive action implementing this title if the Secretary determines that the rule, regulation, or executive action—</text>
<paragraph id="H1488F0DF70DE497AB19BA3A09BE0C228"><enum>(1)</enum><text>is economically significant; and</text></paragraph> <paragraph id="HDCF0AB2068994B409E739A522BF57FAA"><enum>(2)</enum><text>would result in an increase in a subsidy cost.</text></paragraph></subsection>
<subsection id="H407955A299F740FC8462149E2339C00C"><enum>(c)</enum><header>Relationship to other requirements</header><text>The analyses required under subsections (a) and (b) shall be in addition to any other cost analysis required under law for a regulation implementing this title, including any cost analysis that may be required pursuant to Executive Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and review), Executive Order 13563 (76 Fed. Reg. 3821; relating to improving regulation and regulatory review), or any related or successor orders.</text></subsection> <subsection id="HAF4EC62362AD48FCA7D3FCC2E27E2AFC"><enum>(d)</enum><header>Definition</header><text>In this section, the term <term>economically significant</term>, when used with respect to a draft, proposed, or final regulation or executive action, means that the regulation or executive action is likely, as determined by the Secretary—</text>
<paragraph id="H9EE1AC26213D43C4AE788A9A51278D9F"><enum>(1)</enum><text>to have an annual effect on the economy of $100,000,000 or more; or</text></paragraph> <paragraph id="HE72007F350564D85B1F55163205072DF"><enum>(2)</enum><text>to adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section></subtitle>
<enum>IV</enum><header>Energy and Commerce</header>
<subtitle id="H701CA4AD2CF546EEA988AD305F36EE2C"><enum>A</enum><header>Energy</header>
<section id="HCE5754C15F3044648836A8BEE71EF4A1" section-type="subsequent-section"><enum>41001.</enum><header>Rescissions relating to certain Inflation Reduction Act programs</header>
<subsection id="H1915F13CE0C94461809C63292CA24C1E"><enum>(a)</enum><header>State-based home energy efficiency contractor training grants</header><text>The unobligated balance of any amounts made available under subsection (a) of section 50123 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/18795b">42 U.S.C. 18795b</external-xref>) is rescinded.</text></subsection> <subsection id="H1607988FE07C40C29B86313E98DDFC91"><enum>(b)</enum><header>Funding for Department of Energy loan programs office</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under subsection (b) of section 50141 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (136 Stat. 2042) is rescinded.</text></subsection>
<subsection id="H3CD3745016344A67B38CE1790CB45A69"><enum>(c)</enum><header>Advanced technology vehicle manufacturing</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under subsection (a) of section 50142 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (136 Stat. 2044) is rescinded.</text></subsection> <subsection id="H87B4BCD565774E829E9405670EFAD034"><enum>(d)</enum><header>Energy infrastructure reinvestment financing</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under subsection (a) of section 50144 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (136 Stat. 2044) is rescinded.</text></subsection>
<subsection id="HA658640032664A07AF3AB67AD711C025"><enum>(e)</enum><header>Tribal energy loan guarantee program</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under subsection (a) of section 50145 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (136 Stat. 2045) is rescinded.</text></subsection> <subsection id="HB9A2383A43144306918656BA41F52489"><enum>(f)</enum><header>Transmission facility financing</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under subsection (a) of section 50151 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/18715">42 U.S.C. 18715</external-xref>) is rescinded.</text></subsection>
<subsection id="HFAEE0EB420D44644BE78D491476CC9F7"><enum>(g)</enum><header>Grants to facilitate the siting of interstate electricity transmission lines</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under subsection (a) of section 50152 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/18715a">42 U.S.C. 18715a</external-xref>) is rescinded.</text></subsection> <subsection id="H96816C8A3FF845A6B964EA2C9A5B6736"><enum>(h)</enum><header>Interregional and offshore wind electricity transmission planning, modeling, and analysis</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under subsection (a) of section 50153 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/18715b">42 U.S.C. 18715b</external-xref>) is rescinded.</text></subsection>
<subsection id="H0979F4B487EB4C58BC5C663590994485"><enum>(i)</enum><header>Advanced industrial facilities deployment program</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under subsection (a) of section 50161 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/17113a">42 U.S.C. 17113a</external-xref>) is rescinded.</text></subsection></section> <section id="H405E1009946145FB8FE5C30FF2BAA03F" section-type="subsequent-section"><enum>41002.</enum><header>Natural gas exports and imports</header><text display-inline="no-display-inline">Section 3 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717b">15 U.S.C. 717b</external-xref>) is amended by adding at the end the following: </text>
<quoted-block style="OLC" id="HE48F79A38C4842428A447B8EFED42744" display-inline="no-display-inline">
<subsection id="HD19FCC9859964364B20259CFFDC00F0D"><enum>(g)</enum><header>Charge for exportation or importation of natural gas</header><text display-inline="yes-display-inline">The Secretary of Energy shall, by rule, impose and collect, for each application to export natural gas from the United States to a foreign country with which there is not in effect a free trade agreement requiring national treatment for trade in natural gas, or to import natural gas from such a foreign country, a nonrefundable charge of $1,000,000, and, for purposes of subsection (a), the importation or exportation of natural gas that is proposed in an application for which such a nonrefundable charge was imposed and collected shall be deemed to be in the public interest, and such an application shall be granted without modification or delay.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H59DE300101A0441983D097029F4FECAC" section-type="subsequent-section"><enum>41003.</enum><header>Funding for Department of Energy loan guarantee expenses</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary of Energy, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available for a period of five years for administrative expenses associated with carrying out section 116 of the Alaska Natural Gas Pipeline Act (<external-xref legal-doc="usc" parsable-cite="usc/15/720n">15 U.S.C. 720n</external-xref>).</text></section>
<section id="H1F0F7C06753E44618ED470B7F8A181D8" section-type="subsequent-section" display-inline="no-display-inline"><enum>41004.</enum><header>Expedited permitting</header><text display-inline="no-display-inline">The Natural Gas Act is amended by adding after section 15 (<external-xref legal-doc="usc" parsable-cite="usc/15/717n">15 U.S.C. 717n</external-xref>) the following:</text> <quoted-block style="OLC" id="H70C813D8628B4E76B04FF8408A4C3D51" display-inline="no-display-inline"> <section id="HDE5C75275E354467A3C6C79D7DCC3824"><enum>15A.</enum><header>Expedited permitting</header> <subsection id="H4E1D9FB895E54EBF85C7C2906E97C30F"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="HDFC94148D27D428AB97456BF7AFAA134"><enum>(1)</enum><header>Covered application</header><text display-inline="yes-display-inline">The term <quote>covered application</quote> means an application for an authorization under section 3 or a certificate of public convenience and necessity under section 7, as applicable, for activities that include construction.</text></paragraph> <paragraph id="HB9290ABD684B48589D42515DE2A15171" commented="no"><enum>(2)</enum><header>Federal authorization</header><text>The term <quote>Federal authorization</quote> has the meaning given such term in section 15(a).</text></paragraph></subsection>
<subsection id="H5FF116D93D264491999C7B9CE1F42374"><enum>(b)</enum><header>Expedited review</header><text display-inline="yes-display-inline"/> <paragraph id="HE324E2AE9A6145FB931A76ABF353D338"><enum>(1)</enum><header>Notification of election and payment of fee</header><text display-inline="yes-display-inline">Prior to submitting a covered application, an applicant may elect to obtain an expedited review of authorizations pursuant to Sections 3 and 7 of the Natural Gas Act for the approval of such covered application by—</text>
<subparagraph id="H1D3FA3BFA292477BB6308BF9EE5FE464"><enum>(A)</enum><text>submitting to the Commission a written notification—</text> <clause id="HA47821E1D8D44A40A41D9B569D16CBC0"><enum>(i)</enum><text>of the election; and</text></clause>
<clause id="HE0CC899146494A5B954EDB29EB7DC22E" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">that identifies each Federal authorization required for the approval of the covered application and each Federal, State, or interstate agency that will consider an aspect of each such Federal authorization; and</text></clause></subparagraph> <subparagraph id="H8BBCCC6451694D73AFEFACB92FBCF3A8"><enum>(B)</enum><text>making a payment to the Secretary of the Treasury in an amount that is the lesser of—</text>
<clause id="H5DCA77E584C34329A58923D576EB0867"><enum>(i)</enum><text>one percent of the expected cost of the applicable construction, as determined by the applicant; or</text></clause> <clause id="HA3F0E9D39DE2422A80D4A015FA2449AE"><enum>(ii)</enum><text>$10,000,000 (adjusted for inflation, as the Secretary of the Treasury determines necessary).</text></clause></subparagraph></paragraph>
<paragraph id="H88584B48AD6746CE9BCD99E06591CED7"><enum>(2)</enum><header>Submission and review of applications</header>
<subparagraph id="H96DA4E87384443DDB4366C8D7370CD6C"><enum>(A)</enum><header>Application</header><text>Not later than 60 days after the date on which an applicant elects to obtain an expedited review under paragraph (1), the applicant shall submit to the Commission the covered application for which such election for an expedited review was made, which shall include—</text> <clause id="H82FECEF9DD574381BAC7545A3E9F1D88"><enum>(i)</enum><text>the scope of the applicable activities, including capital investment, siting, temporary construction, and final workforce numbers;</text></clause>
<clause id="HC0212176027D4522AFA1B743B2F2D794" commented="no"><enum>(ii)</enum><text>the industrial sector of the applicant, as classified by the North American Industry Classification System; and</text></clause> <clause id="H63125B6115514F7DBC5083D3E261E0CC"><enum>(iii)</enum><text>a list of the statutes and regulations that are relevant to the covered application.</text></clause></subparagraph>
<subparagraph id="H993EC95B736F4DF089D615C53163111F" commented="no"><enum>(B)</enum><header>Approval</header>
<clause id="H50A1148C8E12495986BCC566F2CB8448" commented="no"><enum>(i)</enum><header>Standard deadline</header><text>Except as provided in clause (ii), not later than one year after the date on which an applicant submits a covered application pursuant to subparagraph (A)—</text> <subclause id="H6AA9FF9981EF4E39A193B48B515026D9" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">each Federal, State, or interstate agency identified under paragraph (1)(A)(ii) shall—</text>
<item id="H5725BE1448A244D9A17AEF2D92EB4AA1"><enum>(aa)</enum><text display-inline="yes-display-inline">review the relevant Natural Gas Act sections 3 or 7 authorization identified under such paragraph; and</text></item> <item id="H4724D57DDED94C99BF4BD1B5D66BD3F6"><enum>(bb)</enum><text>subject to any conditions determined by such agency to be necessary to comply with the requirements of the Federal law under which such approval is required, approve such Federal authorization; and</text></item></subclause>
<subclause id="HEC88998998444B09847A8771F9F57FB9" commented="no"><enum>(II)</enum><text>the Commission shall—</text> <item id="H3052F93312BC4974AEA7FC7F36ADB320"><enum>(aa)</enum><text>review the covered application; and</text></item>
<item id="H5D853B654C7440B09D3F47048168FD3D"><enum>(bb)</enum><text>subject to any conditions determined by the Commission to be necessary to comply with the requirements of this Act, approve the covered application.</text></item></subclause></clause> <clause id="HBFB2978477D946698F1183D7CE7BB4D8" commented="no"><enum>(ii)</enum><header>Extended deadline</header> <subclause id="HF631D387B9ED4462BD61E56F4E81E95A" commented="no"><enum>(I)</enum><header>Extension</header><text>With respect to a covered application submitted pursuant to subparagraph (A), the Commission may approve a request by an agency identified under paragraph (1)(A)(ii) for an extension of the one-year deadline imposed by clause (i) of this subparagraph for a period of 6 months if the Commission receives consent from the relevant applicant.</text></subclause>
<subclause id="H32D8DA6B6942407B96CACD9A18BBCFA8" commented="no"><enum>(II)</enum><header>Applicability</header><text>If the Commission approves a request for an extension under subclause (I), such extension shall apply to the applicable covered application and the Federal authorization for which the extension was requested.</text></subclause></clause></subparagraph> <subparagraph id="H1C74A01082A6466FAA2108A62C85F1F5"><enum>(C)</enum><header>Effect of failure to meet deadline</header> <clause id="H902F969A544945C98725D4747B615F93"><enum>(i)</enum><header>Deemed approval</header><text>Any covered application submitted pursuant to subparagraph (A), or Federal authorization that is required with respect to such covered application, that is not approved by the applicable deadline under subparagraph (B) shall be deemed approved in perpetuity.</text></clause>
<clause id="H2D7506B053D84354B90F0FCA9D7D247F"><enum>(ii)</enum><header>Compliance</header><text display-inline="yes-display-inline">A person carrying out activities under a covered application or Federal authorization that has been deemed approved under clause (i) shall comply with the requirements of the Natural Gas Act.</text></clause></subparagraph></paragraph></subsection> <subsection id="H546C0317FD8F457880A35AC21D1D4E8E" commented="no"><enum>(c)</enum><header>Judicial review</header> <paragraph id="H441764F22A1048FE80C87AD130D9D4D7" commented="no"><enum>(1)</enum><header>Reviewable claims</header> <subparagraph id="H985210479FEF4FC9A92C37D202AC9856" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">No court shall have jurisdiction to review a claim with respect to the approval of a covered application or Federal authorization under subparagraph (B) or (C)(i) of subsection (b)(2), except for a claim under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code, filed not later than 180 days after the date of such approval by—</text>
<clause id="HCC2109A9E7474CC3AB23A9A81F9C1A95" commented="no"><enum>(i)</enum><text>the applicant; or</text></clause> <clause id="HCD35FCAF65EF4D1EAA62783E70A9F912" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">a person who has suffered, or likely and imminently will suffer, direct and irreparable economic harm from the approval.</text></clause></subparagraph>
<subparagraph id="HC6F1821A911540B2949C6CBFECFD47E1" commented="no"><enum>(B)</enum><header>Claims by certain non-applicants</header><text>An association may only bring a claim on behalf of one or more of its members pursuant to subparagraph (A)(ii) if each member of the association has suffered, or likely and imminently will suffer, the harm described in subparagraph (A)(ii).</text></subparagraph></paragraph> <paragraph id="HDF8B53CCEA3E4FA6820A38CEA7E23CAC" commented="no"><enum>(2)</enum><header>Standard of review</header><text display-inline="yes-display-inline">If an applicant or other person brings a claim described in paragraph (1) with respect to the approval of a covered application or Federal authorization under subsection (b)(2)(B), the court shall hold unlawful and set aside any agency actions, findings, and conclusions in accordance with section 706(2) of title 5, United States Code, except that, for purposes of the application of subparagraph (E) of such section, the court shall apply such subparagraph by substituting <quote>clear and convincing evidence</quote> for <quote>substantial evidence</quote>.</text></paragraph>
<paragraph id="H1E1330842A5441788A36BD86280DA74E" commented="no"><enum>(3)</enum><header>Exclusive jurisdiction</header><text>The United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction over any claim—</text> <subparagraph id="HD715DBC31EA142EAB0F8E172D7DDA0CB"><enum>(A)</enum><text>alleging the invalidity of subsection (b); or</text></subparagraph>
<subparagraph id="HDB9232C0F6C447DB8AF7CF911E834313"><enum>(B)</enum><text>that an agency action relating to a covered application or Federal authorization under subsection (b) is beyond the scope of authority conferred by the Federal law under which such agency action is made.</text></subparagraph></paragraph></subsection></section><after-quoted-block>. </after-quoted-block></quoted-block></section> <section id="HF34D896C136F4DFB8880B4BE6AA6248D" section-type="subsequent-section" display-inline="no-display-inline"><enum>41005.</enum><header>De-risking Compensation Program</header> <subsection id="H64DD443FB09143B58C5AD56BCAF11F18"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2034, to carry out this section: <italic>Provided</italic>, That no disbursements may be made under this section after September 30, 2034. </text></subsection>
<subsection id="HC1DC9506ADEE4CBE928D844D12FA4C98"><enum>(b)</enum><header>De-Risking Compensation Program</header>
<paragraph id="H90324D4FCF9C4C04BD92E851F6E772A6"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established in the Department of Energy a program, to be known as the De-Risking Compensation Program, to provide compensation to sponsors, with respect to covered energy projects, that suffer unrecoverable losses due to qualifying Federal actions.</text></paragraph> <paragraph id="HA25AF02BB7804353A1DD366E09A74BD3"><enum>(2)</enum><header>Eligibility</header><text display-inline="yes-display-inline">A sponsor may enroll in the program with respect to a covered energy project if—</text>
<subparagraph id="H6A82286217614F469D01167D6925DD8A"><enum>(A)</enum><text display-inline="yes-display-inline">all approvals or permits required or authorized under Federal law for the covered energy project have been received, regardless of whether a court order subsequently remands or vacates such approvals or permits;</text></subparagraph> <subparagraph id="H56081A3826DD42318905FFD63681177A"><enum>(B)</enum><text display-inline="yes-display-inline">the sponsor commenced construction of the covered energy project or made capital expenditures with respect to the covered energy project in reliance on such approvals or permits; and</text></subparagraph>
<subparagraph id="HA00EC91347664A7F9404213AB18F53FF" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">at the time of enrollment, no qualifying Federal action has been issued or taken that has an effect described in subsection (g)(4)(B) on the covered energy project.</text></subparagraph></paragraph> <paragraph id="H842A678DD9E24225A0B947E72E98CFDE"><enum>(3)</enum><header>Application</header><text>A sponsor may apply to enroll with respect to a covered energy project in the program by submitting to the Secretary an application containing such information as the Secretary may require.</text></paragraph>
<paragraph id="H9D8F74F26B4A43B0960AEAB592EB1F05" commented="no"><enum>(4)</enum><header>Enrollment</header><text>Not later than 90 days after the date on which the Secretary receives an application submitted under paragraph (3), the Secretary shall enroll the sponsor in the program for the covered energy project with respect to which the application was submitted if the Secretary determines that the sponsor meets the requirements of paragraph (2) with respect to the covered energy project.</text></paragraph></subsection> <subsection id="HD80361316F6C4FD4928D05F7C04201A8"><enum>(c)</enum><header>Fees and premiums</header> <paragraph id="HDE8789971BC84FD48101AA7B3E3B11CB"><enum>(1)</enum><header>Enrollment fee</header><text display-inline="yes-display-inline">Not later than 60 days after the date on which a sponsor is enrolled in the program under subsection (b)(4), the sponsor shall pay to the Secretary a one-time enrollment fee equal to 5 percent of the sponsor capital contribution for the applicable covered energy project.</text></paragraph>
<paragraph id="HBEE202BBEE5E427DB18446A2B521CBBA"><enum>(2)</enum><header>Annual premiums</header>
<subparagraph id="H1A53886F863E4BD891613E66AA466C4C"><enum>(A)</enum><header>In general</header><text>The Secretary shall establish and annually collect a premium from each sponsor enrolled in the program for each covered energy project with respect to which the sponsor is enrolled.</text></subparagraph> <subparagraph id="HFBABEA657F4F45F8A45DABF0C8143120"><enum>(B)</enum><header>Requirements</header><text>A premium established and collected from a sponsor under subparagraph (A) shall—</text>
<clause id="H1122C1E3A9794DC59A4F6E183A4E0898" commented="no"><enum>(i)</enum><text>be equal to 1.5 percent of the sponsor capital contribution for the applicable covered energy project; and</text></clause> <clause id="H30277DA103614E29B5ACC33072CBD4BE" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">be paid beginning with the year of enrollment and continuing until the earlier of—</text>
<subclause id="HAB506589839C42E7AF4D3BD7D1ABD910" commented="no"><enum>(I)</enum><text>fiscal year 2033; or</text></subclause> <subclause id="H848FC565996344249E3146ECFFB7137B" commented="no"><enum>(II)</enum><text>the year in which the sponsor withdraws from the program with respect to the applicable covered energy project.</text></subclause></clause></subparagraph>
<subparagraph id="H1565F11D3A474170AA70A6315AB74E4B"><enum>(C)</enum><header>Adjustment</header><text>The Secretary may adjust the percentage required by subparagraph (B)(i) once every two fiscal years to ensure Fund solvency, except that—</text> <clause id="HB6A8633B20CB4AC7AF4C35CD00FA75FF"><enum>(i)</enum><text>the Secretary may not vary such percentage between sponsors or projects; and</text></clause>
<clause id="H54E2032ECB604C308DE07C01A45E2A74" commented="no"><enum>(ii)</enum><text>such percentage may not exceed 5 percent.</text></clause></subparagraph> <subparagraph id="HE4F4369D732A48C5A39BA5B62DA3A286"><enum>(D)</enum><header>Publication</header><text>The Secretary shall publish in the Federal Register not later than 60 days prior to the start of each fiscal year a list of each premium to be collected for the fiscal year.</text></subparagraph></paragraph></subsection>
<subsection id="H3D1D7842837547CBAD482756F128559A"><enum>(d)</enum><header>Compensation</header>
<paragraph id="HC4B4AEFAE79E4FB889635FF9F369D8BA" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Using amounts available in the Fund, and subject to paragraph (5), the Secretary shall provide compensation to a sponsor enrolled in the program with respect to a covered energy project if—</text> <subparagraph id="HCC72E892CEA14660A4DC1B511A9A27A6" commented="no"><enum>(A)</enum><text>the sponsor paid the enrollment fee and the premium for each year the sponsor was enrolled in the program with respect to the covered energy project; and</text></subparagraph>
<subparagraph id="H4AB0CD1C55AC4B57A8EAF910829AAE6A" commented="no"><enum>(B)</enum><text>the sponsor demonstrates, in a request submitted to the Secretary, that a qualifying Federal action has been issued or taken that has an effect described in subsection (g)(4)(B) on the covered energy project.</text></subparagraph></paragraph> <paragraph id="HBA7541F1A9AF4C038159D15CA6382FB2" commented="no"><enum>(2)</enum><header>Request for compensation</header><text>A request under paragraph (1) shall contain the following:</text>
<subparagraph id="HE167446718CB4E32AA6A79024AE0ECED" commented="no"><enum>(A)</enum><text>Information on each Federal approval or permit relating to the covered energy project, including the date on which such approval or permit was issued.</text></subparagraph> <subparagraph id="H5E6FE6DF00D84D179866C0C0491E9797" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">A certified accounting of capital expenditures made in reliance on each such Federal approval or permit.</text></subparagraph>
<subparagraph id="H807FCE4CFB814CD9841F7FFEDDB5C6C1" commented="no"><enum>(C)</enum><text>A description of, and, if applicable, a citation to, the applicable qualifying Federal action.</text></subparagraph> <subparagraph id="H198FF68780D94C6C97457A8F37A4ABE6" commented="no"><enum>(D)</enum><text>A causal statement showing how the qualifying Federal action directly resulted in unrecoverable losses or cessation of the covered energy project and that absent the qualifying Federal action the project would have otherwise been viable. </text></subparagraph>
<subparagraph id="H12B1BD836EC24AD3A15B7B7D70789A6C" commented="no"><enum>(E)</enum><text>Any supporting economic analysis demonstrating the financial effects of the covered energy project being rendered unviable.</text></subparagraph></paragraph> <paragraph id="H92A3F7D1B26146619207206DCEDC8D18"><enum>(3)</enum><header>Approval</header><text display-inline="yes-display-inline">The Secretary shall approve a request submitted under paragraph (1) and, subject to paragraph (5), provide compensation to the applicable sponsor if the Secretary determines that such request is complete and in compliance with the requirements of this section.</text></paragraph>
<paragraph id="HADC0199CE8DB43C2BEB50091208C2B3D" commented="no"><enum>(4)</enum><header>Limitations on denials</header><text>The Secretary may not deny a request submitted under paragraph (1) based on—</text> <subparagraph id="H3BD8CA7CB94F478F8B4CE93848B138F2" commented="no"><enum>(A)</enum><text>the merit of the applicable covered energy project, as determined by the Secretary; or</text></subparagraph>
<subparagraph id="H58A868B90EA849B78A2BB5EA73F29D8E" commented="no"><enum>(B)</enum><text>the type of technology used in the applicable covered energy project.</text></subparagraph></paragraph> <paragraph id="H87F77570F23B4B90857A9AFB8BA1E73E"><enum>(5)</enum><header>Limitations on compensation amount</header> <subparagraph id="H800F932D54C74C509BE57376CE94E97F" commented="no"><enum>(A)</enum><header>Sponsors</header><text>The amount of compensation provided to a sponsor under this subsection with respect to a covered energy project shall not exceed the sponsor capital contribution for the covered energy project.</text></subparagraph>
<subparagraph id="HCEDA8B5AD2314712B2EA635B3B0967C4" commented="no"><enum>(B)</enum><header>Available funds</header><text display-inline="yes-display-inline">In determining the amount of compensation to be provided to a sponsor under this subsection—</text> <clause id="H1B373813671E4080B58ED59BB65F6B18" commented="no"><enum>(i)</enum><text>such amount may be any amount, including zero, that is less than or equal to the amount of the sponsor capital contribution for the covered energy project, regardless of the amount of capital expenditures made by the sponsor (as certified and included in the request pursuant to paragraph (2)(B)); and</text></clause>
<clause id="HEFFCE2787EF94864B55F63F45860A5D0" commented="no"><enum>(ii)</enum><text>the Secretary shall determine such amount in a manner that ensures no funds will be obligated or expended in amounts that exceed the amounts in the Fund at the time of approval of the applicable request submitted under paragraph (1).</text></clause></subparagraph></paragraph></subsection> <subsection id="H1BDCF2A9D0E1428CBC190339B31A3FFB"><enum>(e)</enum><header>De-Risking Compensation Fund</header> <paragraph id="HB80BF6C82071412AB4C8C508C03BAB61"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established a fund, to be known as the De-Risking Compensation Fund, consisting of such amounts as are deposited in the Fund under this subsection or credited to the Fund under subsection (f).</text></paragraph>
<paragraph id="H6AA0A1AFBDA0488A865CA33AE25E3E86"><enum>(2)</enum><header>Use of funds</header><text>Amounts in the Fund—</text> <subparagraph id="H18667AAD47254944A04B741C94AD29D6"><enum>(A)</enum><text>shall remain available until September 30, 2034; and</text></subparagraph>
<subparagraph id="H794B2FCB390F4FFF9FA65A3E8DAF6D4A"><enum>(B)</enum><text>may be used, without further appropriation—</text> <clause id="HF478C54BB1F64131A0BDAA2EC01FC96C"><enum>(i)</enum><text>to make compensation payments to sponsors under this section; and</text></clause>
<clause id="HA3E7EA463D954EAF81A18C22EB34CAA9"><enum>(ii)</enum><text>to administer the program.</text></clause></subparagraph></paragraph> <paragraph id="HF0D4B9CB30294479830548BAC6F9D8F2"><enum>(3)</enum><header>Limitation on administrative expenses</header><text>Not more than 3 percent of amounts in the Fund may be used to administer the program.</text></paragraph>
<paragraph id="H7F9A7013A6B74BF392804D4599F1B7E8" commented="no"><enum>(4)</enum><header>Deposits</header><text>The Secretary shall deposit the fees and premiums received under subsection (c) into the Fund. </text></paragraph></subsection> <subsection id="H69B55D7B37674829AD7565D1812AD761" commented="no"><enum>(f)</enum><header>Fund management and investment</header><text display-inline="yes-display-inline">The Fund shall be managed and invested as follows:</text>
<paragraph id="H0B9DF6F20B404BDF9D49E09CFEF04050" commented="no"><enum>(1)</enum><text>The Fund shall be maintained and administered by the Secretary.</text></paragraph> <paragraph id="HC3435C84CD0742C7806E28C5F84F2019" commented="no"><enum>(2)</enum><text>Amounts in the Fund shall be invested in obligations of the United States in accordance with the requirements of section 9702 of title 31, United States Code.</text></paragraph>
<paragraph id="HE22D0FB0427341A7A570B4A22138296D" commented="no"><enum>(3)</enum><text>The interest on such investments shall be credited to the Fund.</text></paragraph></subsection> <subsection id="H17DE43C37D554AF7900096DDC2E1F797"><enum>(g)</enum><header>Definitions</header><text>For purposes of this section: </text>
<paragraph id="H177C6AB7C2E74D2D8B52A2FCA19E24DA"><enum>(1)</enum><header>Covered energy project</header><text display-inline="yes-display-inline">The term <term>covered energy project</term> means a project located in the United States for the development, extraction, processing, transportation, or use of coal, coal byproducts, critical minerals, oil, natural gas, or nuclear energy with a total projected capital expenditure of not less than $30,000,000, as certified by the Secretary. </text></paragraph> <paragraph id="H1E2AC79C0AF8448CA5F96FDD285D80BF"><enum>(2)</enum><header>Fund</header><text>The term <term>Fund</term> means the De-Risking Compensation Fund established in subsection (e)(1).</text></paragraph>
<paragraph id="H40DB16D1D46A4C8B80D05C74D12982D4"><enum>(3)</enum><header>Program</header><text display-inline="yes-display-inline">The term <term>program</term> means the De-Risking Compensation Program established in subsection (b)(1).</text></paragraph> <paragraph id="H48DDFA156AD0454EACA6A998BEC3D3BB"><enum>(4)</enum><header>Qualifying Federal action</header><text display-inline="yes-display-inline">The term <term>qualifying Federal action</term> means a regulation, administrative decision, or executive action—</text>
<subparagraph id="H00C35596195147ABB97D5E53F6473858"><enum>(A)</enum><text>issued or taken after a sponsor received a Federal approval or permit for a covered energy project; and</text></subparagraph> <subparagraph id="HEAA2D5C743B842C8B79DB86A9239283B"><enum>(B)</enum><text>that revokes such approval or permit or cancels, delays, or renders unviable the covered energy project regardless of whether the regulation, administrative decision, or executive action is responsive to a court order.</text></subparagraph></paragraph>
<paragraph id="H8073B421442844B185AF95F7D37ECE74"><enum>(5)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy. </text></paragraph> <paragraph id="H36C56896E7D549EF95F28FA62573ECCB" commented="no"><enum>(6)</enum><header>Sponsor</header><text>The term <term>sponsor</term> means an entity incorporated and headquartered in the United States with an ownership or development interest in a covered energy project.</text></paragraph>
<paragraph id="H5E0F37D326C64090BB37B9618143DF4A" commented="no"><enum>(7)</enum><header>Sponsor capital contribution</header><text>The term <term>sponsor capital contribution</term> means the projected capital expenditure of a sponsor for a covered energy project, as certified by the Secretary at the time of enrollment in the program, which shall include verifiable development, construction, permitting, and financing costs directly related to the covered energy project.</text></paragraph></subsection></section> <section id="H635128DBB7CC454488E38B98D134939F" section-type="subsequent-section"><enum>41006.</enum><header>Strategic Petroleum Reserve</header> <subsection id="HF027CAC655F54C62AF95EDD6D3DAE28E" display-inline="no-display-inline"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available, there is appropriated to the Department of Energy for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="H7B05C3DF5FC64F11AA2A413F350E2CC5" commented="no"><enum>(1)</enum><text>$218,000,000 for maintenance of, including repairs to, storage facilities and related facilities (as such terms are defined in section 152 of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6232">42 U.S.C. 6232</external-xref>)) of the Strategic Petroleum Reserve; and</text></paragraph> <paragraph id="H8ADFB4BA822A45BBACC88EFB727555B7" commented="no"><enum>(2)</enum><text>$1,321,000,000 to acquire, by purchase, petroleum products for storage in the Strategic Petroleum Reserve.</text></paragraph></subsection>
<subsection id="H89C3F66314534ECCA2C863C0E85B6E20"><enum>(b)</enum><header>Repeal of strategic petroleum reserve drawdown and sale mandate</header><text>Section 20003 of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/6241">42 U.S.C. 6241</external-xref> note) is repealed.</text></subsection></section></subtitle> <subtitle id="H639E6468D7F24C1CBF42036C46F1436A"><enum>B</enum><header>Environment</header> <part id="HEFAD99D837A44003A5EBFF448D65EC69"><enum>1</enum><header>Repeals and Rescissions</header> <section id="H649345F597184483AE8924394602FD7E" section-type="subsequent-section"><enum>42101.</enum><header>Repeal and rescission relating to clean heavy-duty vehicles</header> <subsection id="HC94F235A87BD4FC7B2F6AFC5B78EAAF3"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 132 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7432">42 U.S.C. 7432</external-xref>) is repealed.</text></subsection>
<subsection id="H37B82FC03F2A4A4B8D2975C2BF9A4CE3"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 132 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7432">42 U.S.C. 7432</external-xref>) (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="HB08E25B1F5F84472B1A1068F1704D631" section-type="subsequent-section"><enum>42102.</enum><header>Repeal and rescission relating to grants to reduce air pollution at ports</header> <subsection id="H371831E71D03446E8A003092658676A8"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 133 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7433">42 U.S.C. 7433</external-xref>) is repealed.</text></subsection>
<subsection id="H2933004027524DA8BE1F951D4C71B40A"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 133 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7433">42 U.S.C. 7433</external-xref>) (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="H46ED95A429E045358DE81264B06BF04A" section-type="subsequent-section"><enum>42103.</enum><header>Repeal and rescission relating to Greenhouse Gas Reduction Fund</header> <subsection id="HE4EBEF046F7849748B9ECB6BDF28E978"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 134 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7434">42 U.S.C. 7434</external-xref>) is repealed.</text></subsection>
<subsection id="HB748B17E79064CFD89289D6ED0ED26F5"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 134 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7434">42 U.S.C. 7434</external-xref>) (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="HB9CCD67C29A94DAC97C75DACA1C4B45A"><enum>42104.</enum><header>Repeal and rescission relating to diesel emissions reductions</header> <subsection id="HB2A218F523864E5DB6ED7743C34BBD81"><enum>(a)</enum><header>Repeal</header><text>Section 60104 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed.</text></subsection>
<subsection id="HB056DF727B124685941C4A4E37A0E21B"><enum>(b)</enum><header>Rescission</header><text>The unobligated balance of any amounts made available under section 60104 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="HC9962B26DF464E79BD2E8D3CA52DD130" section-type="subsequent-section"><enum>42105.</enum><header>Repeal and rescission relating to funding to address air pollution</header> <subsection id="H2F92893B040345368FD58AA279DADC82"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 60105 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed.</text></subsection>
<subsection id="H590CC06603114B82BC9A74B3F8213D17"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 60105 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="HDEEAE261EFDF4D26AF94B99FF931555B"><enum>42106.</enum><header>Repeal and rescission relating to funding to address air pollution at schools</header> <subsection id="H691BC178130B4D11A82EA2D1D3F3D7D8"><enum>(a)</enum><header>Repeal</header><text>Section 60106 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed.</text></subsection>
<subsection id="H08654F2955F848DB8DC4ECDED95EE607"><enum>(b)</enum><header>Rescission</header><text>The unobligated balance of any amounts made available under section 60106 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="H7D0313989F9C4390A4B60FD6A9C16138" section-type="subsequent-section"><enum>42107.</enum><header>Repeal and rescission relating to low emissions electricity program</header> <subsection id="H02CA236BB32D451F8B121DBF73CE0CAB"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 135 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7435">42 U.S.C. 7435</external-xref>) is repealed.</text></subsection>
<subsection id="HEA66DF42F78B4860B85C5EC02743258C"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 135 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7435">42 U.S.C. 7435</external-xref>) (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="H589D2DF20DCD4346A913DDD4453C7AE7"><enum>42108.</enum><header>Repeal and rescission relating to funding for section 211(<enum-in-header>o</enum-in-header>) of the Clean Air Act</header> <subsection id="H125901AF14DC49D497A47FDA15292E07"><enum>(a)</enum><header>Repeal</header><text>Section 60108 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed.</text></subsection>
<subsection id="H601654F8B3734A06AA23068557D6408D"><enum>(b)</enum><header>Rescission</header><text>The unobligated balance of any amounts made available under section 60108 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="H034C6BC55EB647DC9454E16DE556D1E7"><enum>42109.</enum><header>Repeal and rescission relating to funding for implementation of the American Innovation and Manufacturing Act</header> <subsection id="H8A0452967F014DB38C32900BB9760D22"><enum>(a)</enum><header>Repeal</header><text>Section 60109 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed.</text></subsection>
<subsection id="HE728C6D4DE8848FBA5FD991C910883DE"><enum>(b)</enum><header>Rescission</header><text>The unobligated balance of any amounts made available under section 60109 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="H96EE9DA7180E401E8B173C80B26878ED"><enum>42110.</enum><header>Repeal and rescission relating to funding for enforcement technology and public information</header> <subsection id="H1BED1E6C250F41FE907EC64ABABD8CC1"><enum>(a)</enum><header>Repeal</header><text>Section 60110 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed.</text></subsection>
<subsection id="HA15A5FBC4BB3420F9680DDEC929ADCC5"><enum>(b)</enum><header>Rescission</header><text>The unobligated balance of any amounts made available under section 60110 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="H6AFF7CD56C314286873A37448720A39F"><enum>42111.</enum><header>Repeal and rescission relating to greenhouse gas corporate reporting</header> <subsection id="H43563175132A4C5E954F00AAB991FD16"><enum>(a)</enum><header>Repeal</header><text>Section 60111 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed.</text></subsection>
<subsection id="H1EA2A274026E4785BBD7D3F99BD327C2"><enum>(b)</enum><header>Rescission</header><text>The unobligated balance of any amounts made available under section 60111 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="H6F3024990A9B4909994211016A896BA0" commented="no"><enum>42112.</enum><header>Repeal and rescission relating to environmental product declaration assistance</header> <subsection id="H6E4DBE30DBD64A90BC0AD4666BEA18D8" commented="no"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 60112 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321</external-xref> note) is repealed.</text></subsection>
<subsection id="H8694097BC51A4EA1849F0CA768656A73" commented="no"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 60112 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321</external-xref> note) (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="HD2C438FFF3AC4A97815EB19400F855D5" section-type="subsequent-section"><enum>42113.</enum><header>Repeal of funding for methane emissions and waste reduction incentive program for petroleum and natural gas systems</header> <subsection id="H3B1E0711D1D7446EB7452B45B966B57E"><enum>(a)</enum><header>Repeal and rescission</header><text>Subsections (a) and (b) of section 136 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7436">42 U.S.C. 7436</external-xref>) are repealed and the unobligated balances of amounts made available under those subsections (as in effect on the day before the date of enactment of this Act) are rescinded.</text></subsection>
<subsection id="H9214380F0B1B4E8493F845A4D0231A91"><enum>(b)</enum><header>Conforming amendments</header><text>Section 136 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7436">42 U.S.C. 7436</external-xref>) is amended—</text> <paragraph id="HDA5708DA36FC409C878DA13DD796A012"><enum>(1)</enum><text>by redesignating subsections (c) through (i) as subsections (a) through (g), respectively;</text></paragraph>
<paragraph id="HDF2DC24AB3E1420AAEB32589803F9440"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>subsection (c)</quote> each place it appears and inserting <quote>subsection (a)</quote>;</text></paragraph> <paragraph id="HB21410D6F2B64531AA3BF8752716BEE1"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>subsection (d)</quote> each place it appears and inserting <quote>subsection (b)</quote>;</text></paragraph>
<paragraph id="HB9CFE011F2604FCB9C1C8FA7AF52A542"><enum>(4)</enum><text display-inline="yes-display-inline">by striking <quote>subsection (f)</quote> each place it appears and inserting <quote>subsection (d)</quote>;</text></paragraph> <paragraph id="HE806A3326D794EE89265B742B14A0DE1" commented="no"><enum>(5)</enum><text>in subsection (e) (as so redesignated), by striking <quote>calendar year 2024</quote> and inserting <quote>calendar year 2034</quote>; and</text></paragraph>
<paragraph id="HDF88772BC99740A5A5CEFBA0E9CF85E5"><enum>(6)</enum><text>in subsection (f) (as so redesignated)—</text> <subparagraph id="H034DD52EE2F24CFC8B8E81B15B3976C8"><enum>(A)</enum><text>by striking <quote>subsections (e) and (f)</quote> and inserting <quote>subsections (c) and (d)</quote>; and</text></subparagraph>
<subparagraph id="H37113FA323004B6AB035395A22CBCC56"><enum>(B)</enum><text>by striking <quote>including data collected pursuant to subsection (a)(4),</quote>.</text></subparagraph></paragraph></subsection></section> <section id="HE3AAFA9E051C49D2891444B0117C6AA0" section-type="subsequent-section"><enum>42114.</enum><header>Repeal and rescission relating to greenhouse gas air pollution plans and implementation grants</header> <subsection id="HB2F13CB3CA834FC594B108008C9D16E3"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 137 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7437">42 U.S.C. 7437</external-xref>) is repealed.</text></subsection>
<subsection id="H209DA7A33DA448CDAA2FD175DB73D889"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 137 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7437">42 U.S.C. 7437</external-xref>) (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="HD59F81EC280A4E92AB470A516ED7CC7F"><enum>42115.</enum><header>Repeal and rescission relating to Environmental Protection Agency efficient, accurate, and timely reviews</header> <subsection id="HA6FD15A4B76D4DF3A404B9675B4ECB27"><enum>(a)</enum><header>Repeal</header><text>Section 60115 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed.</text></subsection>
<subsection id="HC581B7A2D0934DA18386C01BC28D65C2"><enum>(b)</enum><header>Rescission</header><text>The unobligated balance of any amounts made available under section 60115 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="HBBD4A82B110D43DE85BCCEACD4655027" commented="no"><enum>42116.</enum><header>Repeal and rescission relating to low-embodied carbon labeling for construction materials</header> <subsection id="H3042007C44E342618253C39CD3C5798C" commented="no"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 60116 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321</external-xref> note) is repealed.</text></subsection>
<subsection id="HFCE7005525D54A2FB219448D4C3945BF" commented="no"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 60116 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321</external-xref> note) (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section> <section id="HCA6A9991BCD34B699D4E64DFACB62AFE" section-type="subsequent-section"><enum>42117.</enum><header>Repeal and rescission relating to environmental and climate justice block grants</header> <subsection id="H9382BB8F76E844C493F23DA021BA9303"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 138 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7438">42 U.S.C. 7438</external-xref>) is repealed.</text></subsection>
<subsection id="H85E0ABBEB77C477F98A437DCBC767AC0"><enum>(b)</enum><header>Rescission</header><text display-inline="yes-display-inline">The unobligated balance of any amounts made available under section 138 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7438">42 U.S.C. 7438</external-xref>) (as in effect on the day before the date of enactment of this Act) is rescinded.</text></subsection></section></part> <part id="H52A6EE504E24444C80789523578D886D"><enum>2</enum><header>Repeal of EPA rules relating to greenhouse gas and multi-pollutant emissions standards</header> <section id="H74E8F1C71377414D8C97A53910D7BCA5" section-type="subsequent-section"><enum>42201.</enum><header>Repeal of EPA rules relating to greenhouse gas and multi-pollutant emissions standards</header><text display-inline="no-display-inline">The final rules issued by the Environmental Protection Agency relating to <quote>Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards</quote> (86 Fed. Reg. 74434 (December 30, 2021)) and <quote>Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles</quote> (89 Fed. Reg. 27842 (April 18, 2024)) shall have no force or effect.</text></section></part>
<part id="HA23C93AF0FD0420D813E220536504942"><enum>3</enum><header>Repeal of NHTSA rules relating to CAFE standards</header>
<section id="HB81124728F284A3086A6331699ECDA0A" section-type="subsequent-section"><enum>42301.</enum><header>Repeal of NHTSA rules relating to CAFE standards</header><text display-inline="no-display-inline">The final rules issued by the National Highway Traffic Safety Administration relating to <quote>Corporate Average Fuel Economy Standards for Model Years 2024–2026 Passenger Cars and Light Trucks</quote> (87 Fed. Reg. 25710 (May 2, 2022)) and <quote>Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027 and Beyond and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030 and Beyond</quote> (89 Fed. Reg. 52540 (June 24, 2024)) shall have no force or effect.</text></section></part></subtitle> <subtitle id="H49D6E5F4013849579D2F78EEF28FFF46"><enum>C</enum><header>Communications</header> <part id="HF2195A8A927448B2B6B21B3F35BC83F8"><enum>1</enum><header>Spectrum Auctions</header> <section id="H3D83928A6F344BD2A56DAA0F361FB89C" section-type="subsequent-section"><enum>43101.</enum><header>Identification and auction of spectrum</header> <subsection id="H4B74F6B1A60B44A3AAA96BC7AB5B6FB7"><enum>(a)</enum><header>Identification</header> <paragraph id="H30F43F7853D842878AD45B3F4D1E78A7"><enum>(1)</enum><header>In general</header><text>Not later than 2 years after the date of the enactment of this Act, the Assistant Secretary and the Commission shall identify, from spectrum in the covered band that is allocated for Federal use, non-Federal use, or shared Federal and non-Federal use, a total of not less than 600 megahertz of spectrum for reallocation for non-Federal use on an exclusive, licensed basis for mobile broadband services, fixed broadband services, mobile and fixed broadband services, or a combination thereof.</text></paragraph>
<paragraph id="HBB363051C57F464B983209B8FA85FA6A"><enum>(2)</enum><header>Withdrawal or modification of Federal Government assignments</header><text>The President, acting through the Assistant Secretary, shall—</text> <subparagraph id="HAEB9D1BFAF174256B933F0C497DB5616"><enum>(A)</enum><text>withdraw or modify the assignments to Federal Government stations of spectrum identified under paragraph (1) as necessary for the Commission to comply with subsection (b); and</text></subparagraph>
<subparagraph id="H70BC95483E40440487F8A1B970D43952"><enum>(B)</enum><text>not later than 30 days after completing any necessary withdrawal or modification under subparagraph (A), notify the Commission that the withdrawal or modification is complete.</text></subparagraph></paragraph> <paragraph id="HA2E06EF554F34BFBB7FC15180D55D4D4"><enum>(3)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this subsection may be construed to change the respective authorities of the Assistant Secretary and the Commission with respect to spectrum allocated for Federal use, non-Federal use, or shared Federal and non-Federal use.</text></paragraph></subsection>
<subsection id="H9D127257C455455A9AF88461A3188CE3"><enum>(b)</enum><header>Auction</header>
<paragraph id="H89D4EC61C1924BF0A9571EAA5A82468A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Commission shall, through 1 or more systems of competitive bidding under section 309(j) of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/309">47 U.S.C. 309(j)</external-xref>), grant licenses for the use of the spectrum identified under subsection (a) on an exclusive, licensed basis for mobile broadband services, fixed broadband services, mobile and fixed broadband services, or a combination thereof.</text></paragraph> <paragraph id="H3344A30FB4824E8F9520F6267C3DCE08"><enum>(2)</enum><header>Schedule</header><text display-inline="yes-display-inline">Notwithstanding paragraph (15)(A) of section 309(j) of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/309">47 U.S.C. 309(j)</external-xref>), the Commission shall auction spectrum under paragraph (1) of this subsection according to the following schedule:</text>
<subparagraph id="H9E64BE6AABC9409A8F1DCFC587F5E847"><enum>(A)</enum><text>Not later than 3 years after the date of the enactment of this Act, the Commission shall complete 1 or more systems of competitive bidding for not less than 200 megahertz of such spectrum.</text></subparagraph> <subparagraph id="H5FA66562A07440B98BAD448D4518BF92"><enum>(B)</enum><text>Not later than 6 years after the date of the enactment of this Act, the Commission shall complete 1 or more systems of competitive bidding for any remaining spectrum required to be auctioned under paragraph (1) after compliance with subparagraph (A) of this paragraph.</text></subparagraph></paragraph></subsection>
<subsection id="H6DAE37399CC64CA98B02E8205565B37F"><enum>(c)</enum><header>Auction proceeds to cover 110 percent of Federal relocation or sharing costs</header><text display-inline="yes-display-inline">Nothing in this section may be construed to relieve the Commission from the requirements of section 309(j)(16)(B) of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/309">47 U.S.C. 309(j)(16)(B)</external-xref>).</text></subsection> <subsection id="H2DCBF3651E574744A487AD175C49B93B"><enum>(d)</enum><header>Auction authority</header><text display-inline="yes-display-inline">Section 309(j)(11) of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/309">47 U.S.C. 309(j)(11)</external-xref>) is amended by striking <quote>grant a license or permit under this subsection shall expire March 9, 2023</quote> and all that follows and inserting <quote>complete a system of competitive bidding under this subsection shall expire September 30, 2034.</quote>.</text></subsection>
<subsection id="H04276555591C449B8FF975C8C55494DB"><enum>(e)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HA70C1007954F4F588ADD1674415826A1"><enum>(1)</enum><header>Assistant secretary</header><text>The term <quote>Assistant Secretary</quote> means the Assistant Secretary of Commerce for Communications and Information.</text></paragraph>
<paragraph id="H21146EC6B05144599E3F505460BB0041"><enum>(2)</enum><header>Commission</header><text>The term <quote>Commission</quote> means the Federal Communications Commission.</text></paragraph> <paragraph id="HE133E338FEC34257A10592DEFF0AFC7A"><enum>(3)</enum><header>Covered band</header> <subparagraph id="HD1F3DB77C1FE420B864FE0A9D92A63F5"><enum>(A)</enum><header>In general</header><text>The term <quote>covered band</quote> means the band of frequencies between 1.3 gigahertz and 10 gigahertz, inclusive.</text></subparagraph>
<subparagraph id="H778EA93E194D427BA9D22A4D30079652" commented="no"><enum>(B)</enum><header>Exclusion</header><text>The term <quote>covered band</quote> does not include the following:</text> <clause id="HDA5CB57BE1514B9B85ED7B2F985E112B"><enum>(i)</enum><text>The band of frequencies between 3.1 gigahertz and 3.45 gigahertz, inclusive.</text></clause>
<clause id="H605089FA4B424FD0BEFDDDC5EBA61615"><enum>(ii)</enum><text display-inline="yes-display-inline">The band of frequencies between 5.925 gigahertz and 7.125 gigahertz, inclusive.</text></clause></subparagraph></paragraph></subsection></section></part> <part id="H40EE7B5DA8A345A98D1F875CF3CA2F79"><enum>2</enum><header>Artificial Intelligence and Information Technology Modernization</header> <section id="H73A62C3D2D35472CB2319ABD77303A35" section-type="subsequent-section"><enum>43201.</enum><header>Artificial intelligence and information technology modernization initiative</header> <subsection id="H1D7F525A16F2458883814B3A31F7152E"><enum>(a)</enum><header>Appropriation of funds</header><text display-inline="yes-display-inline">There is hereby appropriated to the Department of Commerce for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2034, to modernize and secure Federal information technology systems through the deployment of commercial artificial intelligence, the deployment of automation technologies, and the replacement of antiquated business systems in accordance with subsection (b).</text></subsection>
<subsection id="HF86E29C03BFF418CA231A9B1D266F901"><enum>(b)</enum><header>Authorized uses</header><text display-inline="yes-display-inline">The Secretary of Commerce shall use the funds appropriated under subsection (a) for the following:</text> <paragraph id="H98F97B953B544D0DAD63F4A43F9BDB7F"><enum>(1)</enum><text>To replace or modernize, within the Department of Commerce, legacy business systems with state-of-the-art commercial artificial intelligence systems and automated decision systems.</text></paragraph>
<paragraph id="H06DC584D51CD40C4BC1451C27519BA16"><enum>(2)</enum><text>To facilitate, within the Department of Commerce, the adoption of artificial intelligence models that increase operational efficiency and service delivery.</text></paragraph> <paragraph id="HE02609383DE949AE92DD79FB2AF88FE9"><enum>(3)</enum><text>To improve, within the Department of Commerce, the cybersecurity posture of Federal information technology systems through modernized architecture, automated threat detection, and integrated artificial intelligence solutions.</text></paragraph></subsection>
<subsection id="H11C8011E3F7A47CCAFCF2D382AFABDCF"><enum>(c)</enum><header>Moratorium</header>
<paragraph id="H18C269097F7C42EB9FBFEEAD4E093396"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), no State or political subdivision thereof may enforce, during the 10-year period beginning on the date of the enactment of this Act, any law or regulation of that State or a political subdivision thereof limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce.</text></paragraph> <paragraph id="H7569DA43621440A48E670FB86FD8B39C"><enum>(2)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Paragraph (1) may not be construed to prohibit the enforcement of—</text>
<subparagraph id="H284A20AB6D3C4086A0EAE4EC850C512C"><enum>(A)</enum><text>any law or regulation that—</text> <clause id="H444695B81A964993B8246D9AD9D2C639"><enum>(i)</enum><text>the primary purpose and effect of which is to—</text>
<subclause id="H529BEB8CD2D041D795635B691A3B9D14"><enum>(I)</enum><text>remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system; or</text></subclause> <subclause id="HCCFC0C1B482740CC83E046BC24F246EE"><enum>(II)</enum><text display-inline="yes-display-inline">streamline licensing, permitting, routing, zoning, procurement, or reporting procedures in a manner that facilitates the adoption of artificial intelligence models, artificial intelligence systems, or automated decision systems; </text></subclause></clause>
<clause id="H37C0FA1C66CE44BD8581CDE8A27F9CCC"><enum>(ii)</enum><text display-inline="yes-display-inline">does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless such requirement—</text> <subclause id="H2C53B52BDCC5426F9867C3C25675455F"><enum>(I)</enum><text>is imposed under Federal law; or</text></subclause>
<subclause id="HD2A487D562364A0CA9C234495E1923EB"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a requirement imposed under a generally applicable law, is imposed in the same manner on models and systems, other than artificial intelligence models, artificial intelligence systems, and automated decision systems, that provide comparable functions to artificial intelligence models, artificial intelligence systems, or automated decision systems; and</text></subclause></clause> <clause id="H78A14DA55B6C4B898CB1ECE3CC9DEC8C"><enum>(iii)</enum><text>does not impose a fee or bond unless—</text>
<subclause id="HFEDDEA410C544C29B03281C94D1B467F"><enum>(I)</enum><text>such fee or bond is reasonable and cost-based; and</text></subclause> <subclause id="H215EA0DC419741099830AA4E4945B2BD"><enum>(II)</enum><text display-inline="yes-display-inline">under such fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions; or</text></subclause></clause></subparagraph>
<subparagraph id="HDA726C0D33704E9CB8CF64461F07FE3C"><enum>(B)</enum><text>any provision of a law or regulation to the extent that the violation of such provision carries a criminal penalty.</text></subparagraph></paragraph></subsection> <subsection id="H67A3E21B74B8421EB6742385D2C22264"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="HE7A0B35B40F441CBADA04ABCC9E12C0A"><enum>(1)</enum><header>Artificial intelligence</header><text>The term <quote>artificial intelligence</quote> has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/15/9401">15 U.S.C. 9401</external-xref>).</text></paragraph> <paragraph id="H80A71DC6B7454E849BD1B15B9FAFA1CE"><enum>(2)</enum><header>Artificial intelligence model</header><text>The term <quote>artificial intelligence model</quote> means a software component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine-learning techniques to produce outputs from a defined set of inputs.</text></paragraph>
<paragraph id="H0A90F06DBA70494B9921FB95E5D71647"><enum>(3)</enum><header>Artificial intelligence system</header><text>The term <quote>artificial intelligence system</quote> means any data system, hardware, tool, or utility that operates, in whole or in part, using artificial intelligence.</text></paragraph> <paragraph id="H4137E8CA199047C6852F6F5EC3C808EC"><enum>(4)</enum><header>Automated decision system</header><text>The term <quote>automated decision system</quote> means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, to materially influence or replace human decision making.</text></paragraph></subsection></section></part></subtitle>
<subtitle id="H59CAEFBE666C4D9083849823FDF479C1"><enum>D</enum><header>Health</header>
<part id="H5005B0EBEAB54E20A71EF45E5109573B"><enum>1</enum><header>Medicaid</header>
<subpart id="H40E6043F0032451EA61ACA661220838F"><enum>A</enum><header>Reducing fraud and improving enrollment processes</header>
<section id="HAE412BE4FBA847089253E69A2437248B"><enum>44101.</enum><header>Moratorium on implementation of rule relating to eligibility and enrollment in Medicare Savings Programs</header><text display-inline="no-display-inline">The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending January 1, 2035, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on September 21, 2023, and titled <quote>Streamlining Medicaid; Medicare Savings Program Eligibility Determination and Enrollment</quote> (88 Fed. Reg. 65230).</text></section> <section id="H669B403172A3459C8A885876F36FCA59" section-type="subsequent-section"><enum>44102.</enum><header>Moratorium on implementation of rule relating to eligibility and enrollment for Medicaid, CHIP, and the Basic Health Program</header><text display-inline="no-display-inline">The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending January 1, 2035, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on April 2, 2024, and titled <quote>Medicaid Program; Streamlining the Medicaid, Children's Health Insurance Program, and Basic Health Program Application, Eligibility Determination, Enrollment, and Renewal Processes</quote> (89 Fed. Reg. 22780).</text></section>
<section id="H858F5529016B44E89A5AC7DA9A8783B8" section-type="subsequent-section"><enum>44103.</enum><header>Ensuring appropriate address verification under the Medicaid and CHIP programs</header>
<subsection id="H059F946A5C9142058390166D55EC533C"><enum>(a)</enum><header>Medicaid</header>
<paragraph id="H165E074440604E0C9F8AFFCB3BCD3276"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1902 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a</external-xref>) is amended—</text> <subparagraph id="HCF59998E87C946F889A423D63BB485A9"><enum>(A)</enum><text>in subsection (a)—</text>
<clause id="H9B3C3CC667DE4BB0837B8ABDCBA3AEE6"><enum>(i)</enum><text>in paragraph (86), by striking <quote>and</quote> at the end;</text></clause> <clause id="H9A34CF74B5AF455B8936CC18B123E44C"><enum>(ii)</enum><text>in paragraph (87), by striking the period and inserting <quote>; and</quote>; and</text></clause>
<clause id="H980BEDE2548443F6A117143D0EE17184"><enum>(iii)</enum><text>by inserting after paragraph (87) the following new paragraph:</text> <quoted-block style="OLC" id="HE6A3602CDB7D4BA68B28040B86DC1FD6" display-inline="no-display-inline"> <paragraph id="H90AA0161676142B7B5FF0ACFAE965424"><enum>(88)</enum><text display-inline="yes-display-inline">provide—</text>
<subparagraph id="H0217CF0F9EA54CDFBDE78E2AB3130049"><enum>(A)</enum><text display-inline="yes-display-inline">beginning not later than January 1, 2027, in the case of 1 of the 50 States and the District of Columbia, for a process to regularly obtain address information for individuals enrolled under such plan (or a waiver of such plan) in accordance with subsection (vv); and</text></subparagraph> <subparagraph id="H0379144688FE40D490A30A35385A8763"><enum>(B)</enum><text>beginning not later than October 1, 2029—</text>
<clause id="H72D657B9880A4393AD7D2E16A458CBA7"><enum>(i)</enum><text>for the State to submit to the system established by the Secretary under subsection (uu), with respect to an individual enrolled or seeking to enroll under such plan, not less frequently than once each month and during each determination or redetermination of the eligibility of such individual for medical assistance under such plan (or waiver of such plan)—</text> <subclause id="H705AB5CB5EFC4188B1F613387FAFD8B2"><enum>(I)</enum><text>the social security number of such individual, if such individual has a social security number and is required to provide such number to enroll under such plan (or waiver); and</text></subclause>
<subclause id="H7A1F3BE61D544F78A164393780094107"><enum>(II)</enum><text>such other information with respect to such individual as determined necessary by the Secretary for purposes of preventing individuals from simultaneously being enrolled under State plans (or waivers of such plans) of multiple States;</text></subclause></clause> <clause id="H1EB8DD65126C438385B4DC34D85CD17A"><enum>(ii)</enum><text>for the use of such system to prevent such simultaneous enrollment; and</text></clause>
<clause id="H87E72254CECB4ABFA0952568B8328E6A"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case that such system indicates that an individual enrolled or seeking to enroll under such plan (or wavier of such plan) is enrolled under a State plan (or waiver of such a plan) of another State, for the taking of appropriate action (as determined by the Secretary) to identify whether such an individual resides in the State and disenroll an individual from the State plan of such State if such individual does not reside in such State (unless such individual meets such an exception as the Secretary may specify).</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="H0B9EB61267DF4D3EA18B8081C856791A"><enum>(B)</enum><text>by adding at the end the following new subsections:</text>
<quoted-block style="OLC" id="HEC68A1671FEC4AD8BD12F8254AD7BDB0" display-inline="no-display-inline">
<subsection id="H95141D09ED734EC2A935D7025820DD4F"><enum>(uu)</enum><header>Prevention of enrollment under multiple State plans</header>
<paragraph id="H2124ACFAB0CF4BDB8E1CF406951F0FA6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than October 1, 2029, the Secretary shall establish a system to be utilized by the Secretary and States to prevent an individual from being simultaneously enrolled under the State plans (or waivers of such plans) of multiple States. Such system shall—</text> <subparagraph id="HC02A369AF0954334887F680A47329611"><enum>(A)</enum><text>provide for the receipt of information submitted by a State under subsection (a)(88)(B)(i); and</text></subparagraph>
<subparagraph id="H8BB928DAD81647A8BEE7099E0FED6E0C"><enum>(B)</enum><text>not less than once each month, notify or transmit information to a State (or allow the Secretary to notify or transmit information to a State) regarding whether an individual enrolled or seeking to enroll under the State plan of such State (or waiver of such plan) is enrolled under the State plan (or waiver of such plan) of another State.</text></subparagraph></paragraph> <paragraph id="HCD3F4268A76F4A47BED4FE23D585DF98"><enum>(2)</enum><header>Standards</header><text>The Secretary shall establish such standards as determined necessary by the Secretary to limit and protect information submitted under such system and ensure the privacy of such information, consistent with subsection (a)(7).</text></paragraph>
<paragraph id="HF3C90F12EC704CF2B8AF122945423751" commented="no"><enum>(3)</enum><header>Implementation funding</header><text>There are appropriated to the Secretary, out of amounts in the Treasury not otherwise appropriated, in addition to amounts otherwise available—</text> <subparagraph id="HD553C3AD23234F7284EAC28E65DF3A16" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">for fiscal year 2026, $10,000,000 for purposes of establishing the system required under this subsection, to remain available until expended; and</text></subparagraph>
<subparagraph id="HC745451FA5534E7388A658075BC81E1E" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">for fiscal year 2029, $20,000,000 for purposes of maintaining such system, to remain available until expended.</text></subparagraph></paragraph></subsection> <subsection id="H99AC1D97C8F348F58F87B4085D0FE7D7"><enum>(vv)</enum><header>Process to obtain enrollee address information</header> <paragraph id="H16D35325DBE34F9B8994FF49536FAD83"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of subsection (a)(88)(A), a process to regularly obtain address information for individuals enrolled under a State plan (or a waiver of such plan) shall obtain address information from reliable data sources described in <internal-xref idref="H734B70DD5A8A46DDB7E9A89A5BD07B79" legis-path="(vv)(2)">paragraph (2)</internal-xref> and take such actions as the Secretary shall specify with respect to any changes to such address based on such information.</text></paragraph>
<paragraph id="H734B70DD5A8A46DDB7E9A89A5BD07B79"><enum>(2)</enum><header>Reliable data sources described</header><text>For purposes of <internal-xref idref="H16D35325DBE34F9B8994FF49536FAD83" legis-path="(vv)(1)">paragraph (1)</internal-xref>, the reliable data sources described in this paragraph are the following:</text> <subparagraph id="HAB781B8226BD40AA9DEEF2A6D99C7FF3"><enum>(A)</enum><text display-inline="yes-display-inline">Mail returned to the State by the United States Postal Service with a forwarding address.</text></subparagraph>
<subparagraph id="H9807839D02D74B16B4E4A5BD281760A8"><enum>(B)</enum><text display-inline="yes-display-inline">The National Change of Address Database maintained by the United States Postal Service.</text></subparagraph> <subparagraph id="HA7A5CCF4A2444B8C806FA95101736A54"><enum>(C)</enum><text display-inline="yes-display-inline">A managed care entity (as defined in section 1932(a)(1)(B)) or prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D)) that has a contract under the State plan if the address information is provided to such entity or plan directly from, or verified by such entity or plan directly with, such individual.</text></subparagraph>
<subparagraph id="HEB162235BC6E4B77A70E1427D8C5C664"><enum>(D)</enum><text>Other data sources as identified by the State and approved by the Secretary.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H0A2BB5DC7969453FB5B1B1449125BED4"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="HE2D0D11116054A729F1A1C5FF415ABC0"><enum>(A)</enum><header>PARIS</header><text display-inline="yes-display-inline">Section 1903(r)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(r)(3)</external-xref>) is amended—</text>
<clause id="H85C81A2FA95F4209BE991086262F62EA"><enum>(i)</enum><text>by striking <quote>In order</quote> and inserting </text> <quoted-block style="OLC" id="HA9CD9B0A0A41486B892FB73FF98B3AA4" display-inline="yes-display-inline"> <subparagraph id="H601DCDE8B26C4FE6A555D468483B6930" display-inline="yes-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">In order</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause>
<clause id="H38F6D6F4018843CEB3453AF4D970B51F"><enum>(ii)</enum><text>by striking <quote>through the Public</quote> and inserting </text> <quoted-block style="OLC" id="H93D613F3FCA24D12BAC475945B7E2ACA" display-inline="yes-display-inline"><text display-inline="yes-display-inline">through—</text>
<clause id="HB22FA729A9564F77A80C8C6E2E99AB12" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">the Public</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></clause> <clause id="H5640ACB46E5249D2935430616A9B06DC"><enum>(iii)</enum><text>by striking the period at the end and inserting </text>
<quoted-block style="OLC" id="H0BD0A17F3E224944A091DDE237A6FD2A" display-inline="yes-display-inline"><text display-inline="yes-display-inline">; and</text> <clause id="H9DB1C0C6583143AA833F9AE166F05544" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">beginning October 1, 2029, the system established by the Secretary under section 1902(uu).</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause>
<clause id="H1CC9E00144AC457BBCFEDC31990C3BB1"><enum>(iv)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="HE327C3D6F50E4C97913302FF2E4EF4AF" display-inline="no-display-inline"> <subparagraph id="HB97938740BB0485F8D5A3114C834AC39" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">Beginning October 1, 2029, the Secretary may determine that a State is not required to have in operation an eligibility determination system which provides for data matching through the system described in subparagraph (A)(i) to meet the requirements of this paragraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="HD9FCD9B404D44A26ABBC86A574E964C8"><enum>(B)</enum><header>Managed care</header><text display-inline="yes-display-inline">Section 1932 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396u-2">42 U.S.C. 1396u–2</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="HF87025DA220E453A897BE90C427D3630" display-inline="no-display-inline"> <subsection id="HE0AAF3DEAE5044359772D336BA24DF01"><enum>(j)</enum><header>Transmission of address information</header><text display-inline="yes-display-inline">Beginning January 1, 2027, each contract under a State plan with a managed care entity (as defined in section 1932(a)(1)(B)) or with a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D)), shall provide that such entity or plan shall promptly transmit to the State any address information for an individual enrolled with such entity or plan that is provided to such entity or plan directly from, or verified by such entity or plan directly with, such individual.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="H66E5951055A747D6902B00380B0047BE"><enum>(b)</enum><header>CHIP</header>
<paragraph id="H304C1BA03B8846EE8DCF0F5C232EBB89"><enum>(1)</enum><header>In general</header><text>Section 2107(e)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397gg">42 U.S.C. 1397gg(e)(1)</external-xref>) is amended—</text> <subparagraph id="H682314BDB7794D308A0CB97D98896329"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (H) through (U) as subparagraphs (I) through (V), respectively; and</text></subparagraph>
<subparagraph id="HC55C2219AAD64BC789BACBE23A5C966A"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (G) the following new subparagraph:</text> <quoted-block style="OLC" id="HD2C8C8B69DD8428AABEBC8BBA4C974C9" display-inline="no-display-inline"> <subparagraph id="HFEB3ECAF76364FC9A0679E4DECE37E55"><enum>(H)</enum><text display-inline="yes-display-inline">Section 1902(a)(88) (relating to address information for enrollees and prevention of simultaneous enrollments).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H09EACB5B5D9E4B1D86D5039684CCCEDC"><enum>(2)</enum><header>Managed care</header><text>Section 2103(f)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397cc">42 U.S.C. 1397cc(f)(3)</external-xref>) is amended by striking <quote>and (e)</quote> and inserting <quote>(e), and (j)</quote>. </text></paragraph></subsection></section> <section commented="no" display-inline="no-display-inline" id="HCE795C4013164870ABDEC947F2BBC423"><enum>44104.</enum><header>Modifying certain State requirements for ensuring deceased individuals do not remain enrolled</header><text display-inline="no-display-inline">Section 1902 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a</external-xref>), as amended by section 44103, is further amended—</text>
<paragraph id="HF4A28B4D4D274F2280193CA98B8EB106"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H677044C6FEEB42369334F48354B7EAFB"><enum>(A)</enum><text>in paragraph (87), by striking <quote>; and</quote> and inserting a semicolon;</text></subparagraph>
<subparagraph id="H353E7F5C55F94857B8440CC226586328"><enum>(B)</enum><text>in paragraph (88), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph> <subparagraph id="HAAD3340BF33D4A1CBC82EBE73D332B20"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after paragraph (88) the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HD8210F5D0C05456891D57618A0EC8B0D">
<paragraph id="H2B0431A3D0294EAD948F7CD870F82D06"><enum>(89)</enum><text display-inline="yes-display-inline">provide that the State shall comply with the eligibility verification requirements under subsection (ww), except that this paragraph shall apply only in the case of the 50 States and the District of Columbia.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H1DF3C4AFBF8E4651B904FD368B846194"><enum>(2)</enum><text>by adding at the end the following new subsection:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H0A0DAD0EBAFE4AF09B93D3FE0ADD7500">
<subsection id="HC664656980A847E0B0506DEBC3A444B8"><enum>(ww)</enum><header>Verification of certain eligibility criteria</header>
<paragraph id="H38A2D74C306C45E7ABB6C1CF4E4BC8CF"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of subsection (a)(89), the eligibility verification requirements, beginning January 1, 2028, are as follows:</text> <subparagraph id="HFE3D8AEF127940E8B9AAF332CCC79B20"><enum>(A)</enum><header>Quarterly screening to verify enrollee status</header><text display-inline="yes-display-inline">The State shall, not less frequently than quarterly, review the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) to determine whether any individuals enrolled for medical assistance under the State plan (or waiver of such plan) are deceased.</text></subparagraph>
<subparagraph id="HE9B199366F274B3CBD8D6B9218B0AA36"><enum>(B)</enum><header>Disenrollment under State plan</header><text display-inline="yes-display-inline">If the State determines, based on information obtained from the Death Master File, that an individual enrolled for medical assistance under the State plan (or waiver of such plan) is deceased, the State shall—</text> <clause id="H22BDF0D58C8049C8AB10E239DBF51404"><enum>(i)</enum><text>treat such information as factual information confirming the death of a beneficiary for purposes of section 431.213(a) of title 42, Code of Federal Regulations;</text></clause>
<clause id="H6E1353FD6C4C416089CF7CD5773FF717"><enum>(ii)</enum><text>disenroll such individual from the State plan (or waiver of such plan); and</text></clause> <clause id="H68AE8AECAB074CE58E7D2439E5717460"><enum>(iii)</enum><text>discontinue any payments for medical assistance under this title made on behalf of such individual (other than payments for any items or services furnished to such individual prior to the death of such individual).</text></clause></subparagraph>
<subparagraph id="H2303C9091DF54CE68E458CD0F5E66EE7"><enum>(C)</enum><header>Reinstatement of coverage in the event of error</header><text display-inline="yes-display-inline">If a State determines that an individual was misidentified as deceased based on information obtained from the Death Master File and was erroneously disenrolled from medical assistance under the State plan (or waiver of such plan) based on such misidentification, the State shall immediately re-enroll such individual under the State plan (or waiver of such plan), retroactive to the date of such disenrollment.</text></subparagraph></paragraph> <paragraph id="HC4A35778755A4CA5B2DFC8A9BC0821BC" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing under this subsection shall be construed to preclude the ability of a State to use other electronic data sources to timely identify potentially deceased beneficiaries, so long as the State is also in compliance with the requirements of this subsection (and all other requirements under this title relating to Medicaid eligibility determination and redetermination).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H4232B03E987342D0AB29A8F19BCE166A" section-type="subsequent-section"><enum>44105.</enum><header>Medicaid provider screening requirements</header><text display-inline="no-display-inline">Section 1902(kk)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(kk)(1)</external-xref>) is amended—</text> <paragraph id="H7C7EDE14BD4742B6AE3DE2CEF1234552"><enum>(1)</enum><text>by striking <quote>The State</quote> and inserting: </text>
<quoted-block style="OLC" id="HF6ACC9DE865B4E20B1BF254BBA5786C9" display-inline="no-display-inline">
<subparagraph id="H62330A2D67D54E9086E6BD9D557C9589"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The State</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HC91300F4A5A74AD58259288A7D932FB4"><enum>(2)</enum><text>by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="HE701BAB6AFC84C77B594B09600367CC4" display-inline="no-display-inline">
<subparagraph id="H5838B6E403A34F96BF9C1E224CFAB998"><enum>(B)</enum><header>Additional provider screening</header><text display-inline="yes-display-inline">Beginning January 1, 2028, as part of the enrollment (or reenrollment or revalidation of enrollment) of a provider or supplier under this title, and not less frequently than monthly during the period that such provider or supplier is so enrolled, the State conducts a check of any database or similar system developed pursuant to section 6401(b)(2) of the Patient Protection and Affordable Care Act to determine whether the Secretary has terminated the participation of such provider or supplier under title XVIII, or whether any other State has terminated the participation of such provider or supplier under such other State’s State plan under this title (or waiver of the plan), or such other State’s State child health plan under title XXI (or waiver of the plan).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HD64C40D3FAC14F8EA30A68FE3DE10C33" section-type="subsequent-section"><enum>44106.</enum><header>Additional Medicaid provider screening requirements</header><text display-inline="no-display-inline">Section 1902(kk)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(kk)(1)</external-xref>), as amended by section 44105, is further amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="HCA3CE0B918ED4E4295A2AE35DD9C1042" display-inline="no-display-inline">
<subparagraph id="H2554FB58A237451E85DA4098A7EABE58"><enum>(C)</enum><header>Provider screening against Death Master File</header><text display-inline="yes-display-inline">Beginning January 1, 2028, as part of the enrollment (or reenrollment or revalidation of enrollment) of a provider or supplier under this title, and not less frequently than quarterly during the period that such provider or supplier is so enrolled, the State conducts a check of the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) to determine whether such provider or supplier is deceased.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HDB644D5723C04CE9982FC67DF207807F" section-type="subsequent-section"><enum>44107.</enum><header>Removing good faith waiver for payment reduction related to certain erroneous excess payments under Medicaid</header> <subsection id="H59D82F738112402B8E2D1EFF46A8F1DE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1903(u)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(u)(1)</external-xref>) is amended—</text>
<paragraph id="HBE072F65BC3348B3876DF469D12572AB"><enum>(1)</enum><text>in subparagraph (B)—</text> <subparagraph id="HA700B1435C6A4791BE5D52C1F7D3E7BD"><enum>(A)</enum><text>by striking <quote>The Secretary</quote> and inserting </text>
<quoted-block style="OLC" id="HC2972905078A489AAE96C563C9DF9F1F" display-inline="yes-display-inline">
<clause id="H5A0306CE29C0485EA66E0961005DB2A4" display-inline="yes-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">Subject to clause (ii), the Secretary</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H12DC6CE48FB94FBC9262D3E7E1011847"><enum>(B)</enum><text>by adding at the end the following new clause:</text>
<quoted-block style="OLC" id="HDE2468401BC84A3896714F9A5AD828F1" display-inline="no-display-inline">
<clause id="HF375A6F98190492E964EF773247AEAC1" indent="up2"><enum>(ii)</enum><text display-inline="yes-display-inline">The amount waived under clause (i) for a fiscal year may not exceed an amount equal to the difference between—</text> <subclause id="HB28EE569C464448FB16AC9F1713F4B1B"><enum>(I)</enum><text>the amount of the reduction required under subparagraph (A) for such fiscal year (without application of this subparagraph); and</text></subclause>
<subclause id="HCC8D27CB1C2140ABBFBD410852F23563"><enum>(II)</enum><text>the sum of the erroneous excess payments for medical assistance described in subclauses (I) and (III) of subparagraph (D)(i) made for such fiscal year.</text></subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H310E025DC8844F879C27DAD76F956740"><enum>(2)</enum><text>in subparagraph (C), by striking <quote>he</quote> in each place it appears and inserting <quote>the Secretary</quote> in each such place; and</text></paragraph>
<paragraph id="HCD1F96AE5AE04CF491197029C0C5F778"><enum>(3)</enum><text>in subparagraph (D)—</text> <subparagraph id="H955780DFFB094641AFB452E626DF4B8A"><enum>(A)</enum><text>in clause (i)—</text>
<clause id="HD7A521910071457B9A214A3C8A850BD3"><enum>(i)</enum><text>in subclause (I), by striking <quote>and</quote> at the end;</text></clause> <clause id="H979652F179594F979E033923F78A4B75"><enum>(ii)</enum><text>in subclause (II), by striking the period at the end and inserting <quote>, and</quote>; and</text></clause>
<clause id="H46E7CA0C8404403F90A29483D8D34CF1"><enum>(iii)</enum><text>by adding at the end the following new subclause:</text> <quoted-block style="OLC" id="HF657032B9F824828B12BBAC288EB97E7" display-inline="no-display-inline"> <subclause id="H305BAA642EB1459BB8680672A334AA99" indent="up3" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">payments (other than payments described in subclause (I)) for items and services furnished to an eligible individual who is not eligible for medical assistance under the State plan (or a waiver of such plan) with respect to such items and services.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="H903CB3EBBA4B414596EC9D7FD06B72E2"><enum>(B)</enum><text>by adding at the end the following new clause:</text> <quoted-block style="OLC" id="H994291845E9B4FCDB1D5D48963974987" display-inline="no-display-inline"> <clause id="H73855B4B97EA4EC1AAF67B3CC751C5D0" indent="up3"><enum>(vi)</enum><text display-inline="yes-display-inline">In determining the amount of erroneous excess payments for medical assistance under clause (i), the Secretary shall include any payments described in such clause that are identified under the payment error rate measurement (PERM) program, the Medicaid Eligibility Quality Control (MEQC) program, an audit conducted by the Inspector General of the Department of Health and Human Services, or any other independent audit made by the Secretary.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="H6763B7D1836745C7992AED2450ED9E95"><enum>(b)</enum><header>Effective date</header><text>The amendments made by subsection (a) shall apply beginning with respect to fiscal year 2030.</text></subsection></section> <section id="H2FC2CB4470AD48D5802309706401E8C0" section-type="subsequent-section" display-inline="no-display-inline"><enum>44108.</enum><header>Increasing frequency of eligibility redeterminations for certain individuals</header><text display-inline="no-display-inline">Section 1902(e)(14) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(e)(14)</external-xref>) is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H0F90AAC1218C4CCD93D007137D639284" display-inline="no-display-inline">
<subparagraph id="H099E279C33A94E04BB94FCECBB76A1FC"><enum>(L)</enum><header>Frequency of eligibility redeterminations for certain individuals</header><text display-inline="yes-display-inline">With respect to redeterminations of eligibility for medical assistance under a State plan (or waiver of such plan) scheduled on or after December 31, 2026, a State shall make such a redetermination once every 6 months for the following individuals:</text> <clause id="HA77819A549D247719FB38653963DF645"><enum>(i)</enum><text>Individuals enrolled under subsection (a)(10)(A)(i)(VIII).</text></clause>
<clause id="H0B74846759454F5D82C49C19DDB5465E"><enum>(ii)</enum><text display-inline="yes-display-inline">Individuals described in such subsection who are otherwise enrolled under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in <external-xref legal-doc="usc" parsable-cite="usc/26/5000A">section 5000A(f)(1)(A)</external-xref> of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in subsection (a)(10)(A)(i)(VIII).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H8058A22921574A09B604AFC865E15A85" section-type="subsequent-section"><enum>44109.</enum><header>Revising home equity limit for determining eligibility for long-term care services under the Medicaid program</header> <subsection id="H83ED8C23FB314BC6B1B30B491D2BB3F2"><enum>(a)</enum><header>Revising home equity limit</header><text>Section 1917(f)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396p">42 U.S.C. 1396p(f)(1)</external-xref>) is amended—</text>
<paragraph id="H34C43C3B97D04639A2ECF4A86109A4B1"><enum>(1)</enum><text>in subparagraph (B)—</text> <subparagraph id="H5ABCA5F235914A949B72A4C9DCE21077"><enum>(A)</enum><text>by striking <quote>A State</quote> and inserting <quote>(i) A State</quote>; </text></subparagraph>
<subparagraph id="H87F85AA1E806456FBC6433066A948EF0"><enum>(B)</enum><text>in clause (i), as inserted by subparagraph (A)—</text> <clause id="HFFF532FA90D14A8D99C601F5341CC0BA"><enum>(i)</enum><text>by striking <quote><quote>$500,000</quote></quote> and inserting <quote>the amount specified in subparagraph (A)</quote>; and </text></clause>
<clause id="H92015A272E3B47C29D25FB3298CCA649"><enum>(ii)</enum><text>by inserting <quote>, in the case of an individual’s home that is located on a lot that is zoned for agricultural use,</quote> after <quote>apply subparagraph (A)</quote>; and</text></clause></subparagraph> <subparagraph id="H4D46676B7D5F41A9A88776AEE72CE069"><enum>(C)</enum><text>by adding at the end the following new clause:</text>
<quoted-block style="OLC" id="HCA685559542B431FB60D73EA75B0DFC0" display-inline="no-display-inline">
<clause id="H12B45E2940FD459E837D42B72DD3E233" indent="up2"><enum>(ii)</enum><text display-inline="yes-display-inline">A State may elect, without regard to the requirements of section 1902(a)(1) (relating to statewideness) and section 1902(a)(10)(B) (relating to comparability), to apply subparagraph (A), in the case of an individual’s home that is not described in clause (i), by substituting for the amount specified in such subparagraph, an amount that exceeds such amount, but does not exceed $1,000,000. </text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H06BA95F889204EE6ACA6BD89E44D752A"><enum>(2)</enum><text>in subparagraph (C)—</text>
<subparagraph id="HBB485FA7170A41B9862D00B11D25383E"><enum>(A)</enum><text>by inserting <quote>(other than the amount specified in subparagraph (B)(ii) (relating to certain non-agricultural homes))</quote> after <quote>specified in this paragraph</quote>; and</text></subparagraph> <subparagraph id="H205AAD420CBA48978CE316CAA005A639"><enum>(B)</enum><text>by adding at the end the following new sentence: <quote>In the case that application of the preceding sentence would result in a dollar amount (other than the amount specified in subparagraph (B)(i) (relating to certain agricultural homes)) exceeding $1,000,000, such amount shall be deemed to be equal to $1,000,000.</quote>. </text></subparagraph></paragraph></subsection>
<subsection id="HC8D9A4A2991B42AE8FBF2BA860E24B46"><enum>(b)</enum><header>Clarification</header><text>Section 1902 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a</external-xref>) is amended—</text> <paragraph id="H2C0B6426E04B4EDDA44399455BF2A4C6"><enum>(1)</enum><text>in subsection (r)(2), by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H5FB749F46BA64E6F9C97E4A4D7AD8EDD" display-inline="no-display-inline">
<subparagraph id="H95946C89BF7D45378EF046C940060B49" indent="up2"><enum>(C)</enum><text display-inline="yes-display-inline">This paragraph shall not be construed as permitting a State to determine the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services without application of the limit under section 1917(f)(1).</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HCD1B3A5277BC48D19A14322B6A1F557E"><enum>(2)</enum><text>in subsection (e)(14)(D)(iv)—</text>
<subparagraph id="HCE9AFAEF2126475CB7D766670449A5B0"><enum>(A)</enum><text>by striking <quote>Subparagraphs</quote> and inserting </text> <quoted-block style="OLC" id="H4F740397526546D78017E2EEEC9ED65A" display-inline="no-display-inline"> <subclause id="H54F7759EDF394693AAFF0D72CC4B1CE2"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraphs</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HFDC3F327094A4F76B3B5F9FAC3F9CD6A"><enum>(B)</enum><text>by adding at the end the following new subclause:</text> <quoted-block style="OLC" id="H3709CFA76D0D49F6AF7995D086B31C9D" display-inline="no-display-inline"> <subclause id="H7FA56E0C3A6549768D398841BB7166DD"><enum>(II)</enum><header>Application of home equity interest limit</header><text display-inline="yes-display-inline">Section 1917(f) shall apply for purposes of determining the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="HE558A5EFAE7F4FDDA02AE2B57FB6CE89"><enum>(c)</enum><header>Effective date</header><text>The amendments made by subsection (a) shall apply beginning on January 1, 2028.</text></subsection></section> <section id="H54B602C18A2441489201AE04A9B6F687" section-type="subsequent-section"><enum>44110.</enum><header>Prohibiting Federal financial participation under Medicaid and CHIP for individuals without verified citizenship, nationality, or satisfactory immigration status</header> <subsection id="HA05BAFAE813149AF81008F7834B757A3"><enum>(a)</enum><header>In general</header> <paragraph id="H187B7A66C2CF479F903B4A6BCFFA8944"><enum>(1)</enum><header>Medicaid</header><text>Section 1903(i)(22) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(i)(22)</external-xref>) is amended—</text>
<subparagraph id="H2EA43DCB8ECB433F85636AF231527CE1"><enum>(A)</enum><text>by adding <quote>and</quote> at the end;</text></subparagraph> <subparagraph id="H3BEEED9D79894FE5AAD29CCB2D326FAD"><enum>(B)</enum><text>by striking <quote>to amounts</quote> and inserting</text>
<quoted-block style="OLC" id="H13FA7D170D9E4E9CA20A172E36ED0C5B" display-inline="yes-display-inline"><text display-inline="yes-display-inline">to—</text> <subparagraph id="H167EFA56B3074B09ACBD7333C06F1BA2"><enum>(A)</enum><text display-inline="yes-display-inline">amounts</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HB0868C46110A4EE2A47522053D0DB26E"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="HC0225E2388BE4B05B4B4645A7F0C9007" display-inline="no-display-inline"> <subparagraph id="H908EB87C98244FC2B09FCB387837FA50"><enum>(B)</enum><text display-inline="yes-display-inline">in the case that the State elects under section 1902(a)(46)(C) to provide for making medical assistance available to an individual during—</text>
<clause id="H0FB72DC86D4447C1870E366328AE08B3"><enum>(i)</enum><text>the period in which the individual is provided the reasonable opportunity to present satisfactory documentary evidence of citizenship or nationality under section 1902(ee)(2)(C) or subsection (x)(4);</text></clause> <clause id="H8494C921C75E482E9FD812D54CFF382A"><enum>(ii)</enum><text>the 90-day period described in section 1902(ee)(1)(B)(ii)(II); or</text></clause>
<clause id="H687792914B95433B8AB832E5E9F37AB6"><enum>(iii)</enum><text>the period in which the individual is provided the reasonable opportunity to submit evidence indicating a satisfactory immigration status under section 1137(d)(4),</text></clause><continuation-text continuation-text-level="subparagraph">amounts expended for such medical assistance, unless the citizenship or nationality of such individual or the satisfactory immigration status of such individual (as applicable) is verified by the end of such period;</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H9244CEB7D7074BBFAEDB1383A7860E96"><enum>(2)</enum><header>CHIP</header><text>Section 2107(e)(1)(N) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397gg">42 U.S.C. 1397gg(e)(1)(N)</external-xref>) is amended by striking <quote>and (17)</quote> and inserting <quote>(17), and (22)</quote>.</text></paragraph></subsection>
<subsection id="HE317EF804CED476F82502B46B3978121"><enum>(b)</enum><header>Eliminating State requirement to provide medical assistance during reasonable opportunity period</header>
<paragraph id="HBDF8961334BE4D3F88674FFCC9B82FAE"><enum>(1)</enum><header>Documentary evidence of citizenship or nationality</header><text display-inline="yes-display-inline">Section 1903(x)(4) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(x)</external-xref>) is amended—</text> <subparagraph id="HCD26D4164ED74BF1BAEC9C4BD1836619"><enum>(A)</enum><text>by striking <quote>under clauses (i) and (ii) of section 1137(d)(4)(A)</quote> and inserting <quote>under section 1137(d)(4)</quote>; and</text></subparagraph>
<subparagraph id="H57DDE05BB0B248A0BE907389AA17C920"><enum>(B)</enum><text>by inserting <quote>, except that the State shall not be required to make medical assistance available to such individual during the period in which such individual is provided such reasonable opportunity if the State has not elected the option under section 1902(a)(46)(C)</quote> before the period at the end.</text></subparagraph></paragraph> <paragraph id="H1B977447886B41CD81447C0B010071C5"><enum>(2)</enum><header>Social Security data match</header><text>Section 1902(ee) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(ee)</external-xref>) is amended—</text>
<subparagraph id="H87D9FA27A13A4BACA3CC0EAD27F53128" commented="no"><enum>(A)</enum><text>in paragraph (1)(B)(ii)—</text> <clause id="HC69BEFA9BFF34055829386C067297BB4"><enum>(i)</enum><text>in subclause (II), by striking <quote>(and continues to provide the individual with medical assistance during such 90-day period)</quote> and inserting <quote>and, if the State has elected the option under subsection (a)(46)(C), continues to provide the individual with medical assistance during such 90-day period</quote>; and</text></clause>
<clause id="HC9BD74D7FBD449D39D799ACF61ADED08"><enum>(ii)</enum><text>in subclause (III), by inserting <quote>, or denies eligibility for medical assistance under this title for such individual, as applicable</quote> after <quote>under this title</quote>; and</text></clause></subparagraph> <subparagraph id="H008357A8C7E54384B86A39E3AAB088D2"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)(C)—</text>
<clause id="H0C5375D28A8A48C1B1DD29BF214F3668"><enum>(i)</enum><text>by striking <quote>under clauses (i) and (ii) of section 1137(d)(4)(A)</quote> and inserting <quote>under section 1137(d)(4)</quote>; and</text></clause> <clause id="HD98C7BB9BF5444E3B4520375B059C9EA"><enum>(ii)</enum><text>by inserting <quote>, except that the State shall not be required to make medical assistance available to such individual during the period in which such individual is provided such reasonable opportunity if the State has not elected the option under section 1902(a)(46)(C)</quote> before the period at the end.</text></clause></subparagraph></paragraph>
<paragraph id="H50546F18819B4D88B42283D5878F9BD4" commented="no"><enum>(3)</enum><header>Individuals with satisfactory immigration status</header><text display-inline="yes-display-inline">Section 1137(d)(4) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1320b-7">42 U.S.C. 1320b–7(d)(4)</external-xref>) is amended—</text> <subparagraph id="HC2C3DA56450041A591BB547336E2C333"><enum>(A)</enum><text>in subparagraph (A)(ii), by inserting <quote>(except that such prohibition on delay, denial, reduction, or termination of eligibility for benefits under the Medicaid program under title XIX shall apply only if the State has elected the option under section 1902(a)(46)(C))</quote> after <quote>has been provided</quote>; and</text></subparagraph>
<subparagraph id="HF1A97F73F3624173A89A799FB0C83B85"><enum>(B)</enum><text>in subparagraph (B)(ii), by inserting <quote>(except that such prohibition on delay, denial, reduction, or termination of eligibility for benefits under the Medicaid program under title XIX shall apply only if the State has elected the option under section 1902(a)(46)(C))</quote> after <quote>status</quote>.</text></subparagraph></paragraph></subsection> <subsection id="H1BFC06CA41B54B3E90064ED4954C722C" commented="no"><enum>(c)</enum><header>Option to continue providing medical assistance during reasonable opportunity period</header> <paragraph id="H6C53CCA9472C43B087A9BF357B13BD8D"><enum>(1)</enum><header>Medicaid</header><text>Section 1902(a)(46) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(46)</external-xref>) is amended—</text>
<subparagraph id="H93CA5E8F27FB41A88B181BF9D841F97B" commented="no"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text></subparagraph> <subparagraph id="HD738830C939E447EBFBFF50A8BD52C05" commented="no"><enum>(B)</enum><text>in subparagraph (B)(ii), by adding <quote>and</quote> at the end; and</text></subparagraph>
<subparagraph id="H9748AC7E6CDA4E2D861B7A92D193F159" commented="no"><enum>(C)</enum><text>by inserting after subparagraph (B)(ii) the following new subparagraph:</text> <quoted-block style="OLC" id="H7686FB0CDED54D38ABD6CA18E44AD081" display-inline="no-display-inline"> <subparagraph id="H5D0E88D8F9164F64A8AF237D83F297A7" commented="no" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">provide, at the option of the State, for making medical assistance available—</text>
<clause id="HEEFF151B9DBE4B7587E53F940EDF4192"><enum>(i)</enum><text>to an individual described in subparagraph (B) during the period in which such individual is provided the reasonable opportunity to present satisfactory documentary evidence of citizenship or nationality under subsection (ee)(2)(C) or section 1903(x)(4), or during the 90-day period described in subsection (ee)(1)(B)(ii)(II); or</text></clause> <clause id="HC3B1B3B2CE6A4E48B0B69739F551166C"><enum>(ii)</enum><text display-inline="yes-display-inline">to an individual who is not a citizen or national of the United States during the period in which such individual is provided the reasonable opportunity to submit evidence indicating a satisfactory immigration status under section 1137(d)(4);</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H6F959BB737FB41C5B578386ECF744FA7"><enum>(2)</enum><header>CHIP</header><text display-inline="yes-display-inline">Section 2105(c)(9) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397ee">42 U.S.C. 1397ee(c)(9)</external-xref>) is amended by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="H8A53CB6CBE4A46C0A0B08C67742DF9EA" display-inline="no-display-inline"> <subparagraph id="H52E61119A25E4F3EB3A53F3D7C7308A7"><enum>(C)</enum><header>Option to continue providing child health assistance during reasonable opportunity period</header><text display-inline="yes-display-inline">Section 1902(a)(46)(C) shall apply to States under this title in the same manner as it applies to a State under title XIX.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HCE0DC5EB40CF48D7A11FCEBFA494B156"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply beginning October 1, 2026.</text></subsection></section> <section id="HBC0772B493D345DB843CB3E7D3BA201A" section-type="subsequent-section"><enum>44111.</enum><header>Reducing expansion FMAP for certain States providing payments for health care furnished to certain individuals</header><text display-inline="no-display-inline">Section 1905 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395d">42 U.S.C. 1395d</external-xref>) is amended—</text>
<paragraph id="H52E1D75956664FA1A65753FA647A4E71"><enum>(1)</enum><text>in subsection (y)—</text> <subparagraph id="H5B4D3E853AE14EDBAC57826FBDCDEF33"><enum>(A)</enum><text>in paragraph (1)(E), by inserting <quote>(or, for calendar quarters beginning on or after October 1, 2027, in the case such State is a specified State with respect to such calendar quarter, 80 percent)</quote> after <quote>thereafter</quote>; and</text></subparagraph>
<subparagraph id="H7B4AB16364894A8197A326D6C31BA5AC"><enum>(B)</enum><text>in paragraph (2), by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="H1F4FE6655B634FE09EB31A66D4AB6EE6" display-inline="no-display-inline"> <subparagraph id="HACB506ABD67D4CAD918CB16E42F01BEC"><enum>(C)</enum><header>Specified State</header><text display-inline="yes-display-inline">The term <quote>specified State</quote> means, with respect to a quarter, a State that—</text>
<clause id="H3692DAFB593847618C6AF0EEBBA2F5D2"><enum>(i)</enum><text display-inline="yes-display-inline">provides any form of financial assistance during such quarter, in whole or in part, whether or not made under a State plan (or waiver of such plan) under this title or under another program established by the State, and regardless of the source of funding for such assistance, to or on behalf of an alien who is not a qualified alien and is not a child or pregnant woman who is lawfully residing in the United States and receiving medical assistance pursuant to section 1903(v)(4), for the purchasing of health insurance coverage (as defined in section 2791(b)(1) of the Public Health Service Act) for an alien who is not a qualified alien and is not such a child or pregnant woman; or</text></clause> <clause id="HB3775C32906043C8A8F214F273CF8510"><enum>(ii)</enum><text display-inline="yes-display-inline">provides any form of comprehensive health benefits coverage during such quarter, whether or not under a State plan (or wavier of such plan) under this title or under another program established by the State, and regardless of the source of funding for such coverage, to an alien who is not a qualified alien and is not such a child or pregnant woman.</text></clause></subparagraph>
<subparagraph id="HDDF83706BE82499F99A6881705A13235"><enum>(D)</enum><header>Immigration terms</header>
<clause id="H54A5F782F316439DA907AE01AB4C4E60"><enum>(i)</enum><header>Alien</header><text display-inline="yes-display-inline">The term <quote>alien</quote> has the meaning given such term in section 101(a) of the Immigration and Nationality Act.</text></clause> <clause id="HE9571C7C0CF5495EA27811858EBC67C3"><enum>(ii)</enum><header>Qualified alien</header><text display-inline="yes-display-inline">The term <quote>qualified alien</quote> has the meaning given such term in section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, except that—</text>
<subclause id="HBEE640F571314A3390B47B3E5886E314"><enum>(I)</enum><text display-inline="yes-display-inline">such term does not include an alien described in subsection (b)(4) of such section (other than a qualified alien under section 402(b)(2) of such Act);</text></subclause> <subclause id="H6E65E81BCC8747E08A555160370E4555"><enum>(II)</enum><text display-inline="yes-display-inline">the reference to <quote>at the time the alien applies for, receives, or attempts to receive a Federal public benefit</quote> in subsection (b) of such section 431 shall be treated as a reference to <quote>at the time the alien is provided comprehensive health benefits coverage described in clause (ii) of section 1905(y)(C) of the Social Security Act or is provided with financial assistance described in clause (i) of such section, as applicable</quote>; and</text></subclause>
<subclause id="H79C727D9141F4234BF46B75DDA56760E"><enum>(III)</enum><text display-inline="yes-display-inline">the references to <quote>(in the opinion of the agency providing such benefits)</quote> in subsection (c) of such section 431 shall be treated as references to <quote>(in the opinion of the State in which such comprehensive health benefits coverage or such financial assistance is provided, as applicable)</quote>. </text></subclause></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H740826D182684878A14934DD906A5ED1"><enum>(2)</enum><text>in subsection (z)(2)—</text>
<subparagraph id="H64BFCFBA50F64B6C8E97B0DCB83C139C"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>for such year</quote> and inserting <quote>for such quarter</quote>; and </text></subparagraph> <subparagraph id="H8CE686F244DE45DEBEB5653C682B403B"><enum>(B)</enum><text>in subparagraph (B)(i)—</text>
<clause id="H527A5C0595CF40A6BFD2664ACC6D7C4B"><enum>(i)</enum><text>in the matter preceding subclause (I), by striking <quote>for a year</quote> and inserting <quote>for a calendar quarter in a year</quote>; and</text></clause> <clause id="H8846C44149C74B93A76C5460D3870D78"><enum>(ii)</enum><text>in subclause (II), by striking <quote>for the year</quote> and inserting <quote>for the quarter for the State</quote>. </text></clause></subparagraph></paragraph></section></subpart>
<subpart id="H39DD13194629410EBFB079FECB761E96"><enum>B</enum><header>Preventing wasteful spending</header>
<section id="H0980FAE575BE4C1BBB33D0D620E8FAED"><enum>44121.</enum><header>Moratorium on implementation of rule relating to staffing standards for long-term care facilities under the Medicare and Medicaid programs</header><text display-inline="no-display-inline">The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending January 1, 2035, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on May 10, 2024, and titled <quote>Medicare and Medicaid Programs; Minimum Staffing Standards for Long-Term Care Facilities and Medicaid Institutional Payment Transparency Reporting</quote> (89 Fed. Reg. 40876).</text></section> <section id="H1D1F0B825AFA4F7FA05BC38146E139B1" section-type="subsequent-section"><enum>44122.</enum><header>Modifying retroactive coverage under the Medicaid and CHIP programs</header> <subsection id="H7DA4ED524805426983BC168E1C4B5792"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1902(a)(34) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(34)</external-xref>) is amended—</text>
<paragraph id="H1CE663F6BA8641339E26591781CBB0EC"><enum>(1)</enum><text>by striking <quote>him</quote> and inserting <quote>the individual</quote>;</text></paragraph> <paragraph id="H0D6DD61ABB814154BE7B2080A166C4DB"><enum>(2)</enum><text>by striking <quote>the third month</quote> and inserting <quote>the month</quote>;</text></paragraph>
<paragraph id="H19071CDDC4354CE89694184AC219C8AE"><enum>(3)</enum><text>by striking <quote>he</quote> and inserting <quote>the individual</quote>; and</text></paragraph> <paragraph id="H5D660400208843CE9FE181DFA4FD14D4"><enum>(4)</enum><text>by striking <quote>his</quote> and inserting <quote>the individual’s</quote>. </text></paragraph></subsection>
<subsection id="H3CC2EC5615A14B298FDEE06B62D77C12"><enum>(b)</enum><header>Definition of medical assistance</header><text display-inline="yes-display-inline">Section 1905(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d(a)</external-xref>) is amended by striking <quote>in or after the third month before the month in which the recipient makes application for assistance</quote> and inserting <quote>in or after the month before the month in which the recipient makes application for assistance</quote>.</text></subsection> <subsection id="H1F32CDA27C1F4C1B906C46B470A27170"><enum>(c)</enum><header>CHIP</header><text>Section 2102(b)(1)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397bb">42 U.S.C. 1397bb(b)(1)(B)</external-xref>) is amended—</text>
<paragraph id="H8871F0156C9C42E0ACB7C7EFEB2DF393"><enum>(1)</enum><text>in clause (iv), by striking <quote>and</quote> at the end;</text></paragraph> <paragraph id="H3BAA713559024D47A21A1A9C59498ADF"><enum>(2)</enum><text>in clause (v), by striking the period and inserting <quote>; and</quote>; and</text></paragraph>
<paragraph id="HCEF2342FDEF642E5A3ED67640EA48399"><enum>(3)</enum><text>by adding at the end the following new clause:</text> <quoted-block style="OLC" id="HECDFD1800D7E415A8F014A3F7E095346" display-inline="no-display-inline"> <clause id="HD5267557E80F43978DDF9E1E095988E2"><enum>(vi)</enum><text display-inline="yes-display-inline">shall, in the case that the State elects to provide child health or pregnancy-related assistance to an individual for any period prior to the month in which the individual made application for such assistance (or application was made on behalf of the individual), provide that such assistance is not made available to such individual for items and services included under the State child health plan (or waiver of such plan) that are furnished before the month preceding the month in which such individual made application (or application was made on behalf of such individual) for such assistance.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HAA0486984F6D43A599788555EBC2DADE"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to medical assistance and child health assistance, and pregnancy-related assistance with respect to individuals whose eligibility for such medical assistance, child health assistance, or pregnancy-related assistance is based on an application made on or after December 31, 2026.</text></subsection></section> <section id="HAA303E4FCF9A456695A980140090C55F"><enum>44123.</enum><header>Ensuring accurate payments to pharmacies under Medicaid</header> <subsection id="HA480FC660DB84C3AB0A18990D5083972"><enum>(a)</enum><header>In general</header><text>Section 1927(f) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(f)</external-xref>) is amended—</text>
<paragraph id="H488A24E2DB12426A8A6BD6D2FCC59F1D"><enum>(1)</enum><text>in paragraph (1)(A)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="HEB21DE4C512945118F7F6440411A1798"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating clause (ii) as clause (iii); and</text></subparagraph>
<subparagraph id="HF6C87267240D4D9E93794441963CB5BE"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> after the semicolon at the end of clause (i) and all that precedes it through <quote>(1)</quote> and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HDAB5B908560442D6BD678D5628845761"> <paragraph id="H4094AF8C443C4AE9A3A64C3129FF6205"><enum>(1)</enum><header>Determining pharmacy actual acquisition costs</header><text>The Secretary shall conduct a survey of retail community pharmacy drug prices and applicable non-retail pharmacy drug prices to determine national average drug acquisition cost benchmarks (as such term is defined by the Secretary) as follows:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6FC2CAF5BB4B4108B016637A107C4866"><enum>(A)</enum><header display-inline="yes-display-inline">Use of vendor</header><text display-inline="yes-display-inline">The Secretary may contract services for—</text> <clause commented="no" display-inline="no-display-inline" id="H71CED844A1EB41C49962F386C9B4C64D"><enum>(i)</enum><text>with respect to retail community pharmacies, the determination of retail survey prices of the national average drug acquisition cost for covered outpatient drugs that represent a nationwide average of consumer purchase prices for such drugs, net of all discounts, rebates, and other price concessions (to the extent any information with respect to such discounts, rebates, and other price concessions is available) based on a monthly survey of such pharmacies;</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H2A75F4B2DA1F4359BD8D4D1027B0FB0B"><enum>(ii)</enum><text>with respect to applicable non-retail pharmacies— </text> <subclause commented="no" display-inline="no-display-inline" id="HE8D40C00A55741098D78CA7C0366A482"><enum>(I)</enum><text display-inline="yes-display-inline">the determination of survey prices, separate from the survey prices described in clause (i), of the non-retail national average drug acquisition cost for covered outpatient drugs that represent a nationwide average of consumer purchase prices for such drugs, net of all discounts, rebates, and other price concessions (to the extent any information with respect to such discounts, rebates, and other price concessions is available) based on a monthly survey of such pharmacies; and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HF8F8EA0CAEF441F0AE530E3F68740C8F"><enum>(II)</enum><text display-inline="yes-display-inline">at the discretion of the Secretary, for each type of applicable non-retail pharmacy, the determination of survey prices, separate from the survey prices described in clause (i) or subclause (I) of this clause, of the national average drug acquisition cost for such type of pharmacy for covered outpatient drugs that represent a nationwide average of consumer purchase prices for such drugs, net of all discounts, rebates, and other price concessions (to the extent any information with respect to such discounts, rebates, and other price concessions is available) based on a monthly survey of such pharmacies; and</text></subclause></clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HC5A33F3002DB4724B6227753D0E13FB8"><enum>(2)</enum><text>in subparagraph (B) of paragraph (1), by striking <quote>subparagraph (A)(ii)</quote> and inserting <quote>subparagraph (A)(iii)</quote>;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HFB0846EB14204EF3A3B692250A5DC7F7"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (D) of paragraph (1), by striking clauses (ii) and (iii) and inserting the following: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H5306FD6C642B49E1BE2E7C154611650C"> <clause id="HB31850BE05F041C18C557899BDA2B4A1"><enum>(ii)</enum><text>The vendor must update the Secretary no less often than monthly on the survey prices for covered outpatient drugs.</text></clause>
<clause id="H631FF359E74A4875B609A7488D7FA1E4"><enum>(iii)</enum><text display-inline="yes-display-inline">The vendor must differentiate, in collecting and reporting survey data, for all cost information collected, whether a pharmacy is a retail community pharmacy or an applicable non-retail pharmacy, including whether such pharmacy is an affiliate (as defined in subsection (k)(14)), and, in the case of an applicable non-retail pharmacy, which type of applicable non-retail pharmacy it is using the relevant pharmacy type indicators included in the guidance required by subsection (d)(2) of section 44123 of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14</quote>.</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H8672C6DA56A8428BBA65BFEEBD4FD93C"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end of paragraph (1) the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H6F2B2494317F43A09E38189AAA561962">
<subparagraph id="HC38974F0FBB1458EAECE2BE0F9758053"><enum>(F)</enum><header>Survey reporting</header><text display-inline="yes-display-inline">In order to meet the requirement of section 1902(a)(54), a State shall require that any retail community pharmacy or applicable non-retail pharmacy in the State that receives any payment, reimbursement, administrative fee, discount, rebate, or other price concession related to the dispensing of covered outpatient drugs to individuals receiving benefits under this title, regardless of whether such payment, reimbursement, administrative fee, discount, rebate, or other price concession is received from the State or a managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)) directly or from a pharmacy benefit manager or another entity that has a contract with the State or a managed care entity or other specified entity (as so defined), shall respond to surveys conducted under this paragraph.</text></subparagraph> <subparagraph id="H1A01FE8FFC1A43ED9586DF3CE5C5487C"><enum>(G)</enum><header>Survey information</header><text>Information on national drug acquisition prices obtained under this paragraph shall be made publicly available in a form and manner to be determined by the Secretary and shall include at least the following:</text>
<clause id="H1DE2A51752A14B098EB24310F160ED0F"><enum>(i)</enum><text>The monthly response rate to the survey including a list of pharmacies not in compliance with subparagraph (F).</text></clause> <clause id="H58D800DF839C4289B3F5F00829660898"><enum>(ii)</enum><text>The sampling methodology and number of pharmacies sampled monthly.</text></clause>
<clause id="H2164358E4F50477ABD621732392779FC"><enum>(iii)</enum><text>Information on price concessions to pharmacies, including discounts, rebates, and other price concessions, to the extent that such information may be publicly released and has been collected by the Secretary as part of the survey.</text></clause></subparagraph> <subparagraph id="HFFB5858D67A045818D45AA3CFBE8FC42"><enum>(H)</enum><header>Penalties</header> <clause commented="no" display-inline="no-display-inline" id="H5210B487552E447EAEA070AC99B3E0F8"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to clauses (ii), (iii), and (iv), the Secretary shall enforce the provisions of this paragraph with respect to a pharmacy through the establishment of civil money penalties applicable to a retail community pharmacy or an applicable non-retail pharmacy.</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H9E0DC9E1010647598BA2E7441825C396"><enum>(ii)</enum><header>Basis for penalties</header><text display-inline="yes-display-inline">The Secretary shall impose a civil money penalty established under this subparagraph on a retail community pharmacy or applicable non-retail pharmacy if—</text> <subclause commented="no" display-inline="no-display-inline" id="H355ED8E4F1434C02AD16B11714D20E3F"><enum>(I)</enum><text display-inline="yes-display-inline">the retail pharmacy or applicable non-retail pharmacy refuses or otherwise fails to respond to a request for information about prices in connection with a survey under this subsection; </text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HEF482A93EA404B11864610B7D0CFF88A"><enum>(II)</enum><text display-inline="yes-display-inline">knowingly provides false information in response to such a survey; or</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H616C5646A80C4AFAA67DF0ECB8BD851E"><enum>(III)</enum><text>otherwise fails to comply with the requirements established under this paragraph.</text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="H633A8B6F9F0745AC9A3DD90FA3F9AC2E"><enum>(iii)</enum><header>Parameters for penalties</header>
<subclause commented="no" display-inline="no-display-inline" id="H634A4E3B79DF4B36BD10E1C921B908BA"><enum>(I)</enum><header display-inline="yes-display-inline">In general</header><text>A civil money penalty established under this subparagraph may be assessed with respect to each violation, and with respect to each non-compliant retail community pharmacy (including a pharmacy that is part of a chain) or non-compliant applicable non-retail pharmacy (including a pharmacy that is part of a chain), in an amount not to exceed $100,000 for each such violation.</text></subclause> <subclause id="H4D3ABF3E4F7E42F1A372AF99DDEF3A98"><enum>(II)</enum><header>Considerations</header><text>In determining the amount of a civil money penalty imposed under this subparagraph, the Secretary may consider the size, business structure, and type of pharmacy involved, as well as the type of violation and other relevant factors, as determined appropriate by the Secretary. </text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="HD7D8F8B5589F4005B64601BFF143A472"><enum>(iv)</enum><header>Rule of application</header><text display-inline="yes-display-inline">The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this subparagraph in the same manner as such provisions apply to a civil money penalty or proceeding under section 1128A(a). </text></clause></subparagraph> <subparagraph id="HC4A9A9F1723248298103E009B0BD8842"><enum>(I)</enum><header>Limitation on use of applicable non-retail pharmacy pricing information</header><text>No State shall use pricing information reported by applicable non-retail pharmacies under subparagraph (A)(ii) to develop or inform payment methodologies for retail community pharmacies.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph>
<paragraph id="HD03EBB774F384FC4BACE8FCE1DF8D7F3"><enum>(5)</enum><text>in paragraph (2)—</text> <subparagraph id="H8D81F88806B74BADB1AF972A851AFDEF"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>, including payment rates and methodologies for determining ingredient cost reimbursement under managed care entities or other specified entities (as such terms are defined in section 1903(m)(9)(D)),</quote> after <quote>under this title</quote>; and</text></subparagraph>
<subparagraph id="H051AC88F5F774F6B97F4EABB57EB26DB"><enum>(B)</enum><text>in subparagraph (B), by inserting <quote>and the basis for such dispensing fees</quote> before the semicolon; </text></subparagraph></paragraph> <paragraph id="H5AA792A266804543B015D7DA4D2FCA9F"><enum>(6)</enum><text>by redesignating paragraph (4) as paragraph (5);</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6B9F99B1821748089653A9350A789459"><enum>(7)</enum><text display-inline="yes-display-inline">by inserting after paragraph (3) the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H21698CC73C064FE38AC42B3C4FCEEAB5"> <paragraph id="H00BC8DADF7DD4859AADDC91426DB78E4"><enum>(4)</enum><header>Oversight</header> <subparagraph commented="no" display-inline="no-display-inline" id="H8A49DC7BCD424FCD9724F3E6DC312792"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Inspector General of the Department of Health and Human Services shall conduct periodic studies of the survey data reported under this subsection, as appropriate, including with respect to substantial variations in acquisition costs or other applicable costs, as well as with respect to how internal transfer prices and related party transactions may influence the costs reported by pharmacies that are affiliates (as defined in subsection (k)(13)) or are owned by, controlled by, or related under a common ownership structure with a wholesaler, distributor, or other entity that acquires covered outpatient drugs relative to costs reported by pharmacies not affiliated with such entities. The Inspector General shall provide periodic updates to Congress on the results of such studies, as appropriate, in a manner that does not disclose trade secrets or other proprietary information.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HC16DDB71AA6B4950BB1A58C654DB079C"><enum>(B)</enum><header>Appropriation</header><text display-inline="yes-display-inline">There is appropriated to the Inspector General of the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, $5,000,000 for fiscal year 2026, to remain available until expended, to carry out this paragraph.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H7418B288D00E44AB8E82F5F166A7F5CC"><enum>(8)</enum><text display-inline="yes-display-inline">in paragraph (5), as so redesignated— </text>
<subparagraph commented="no" display-inline="no-display-inline" id="H34794636A1C44E62AAC789CC7A92189F"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>, and $8,000,000 for each of fiscal years 2026 through 2033,</quote> after <quote>2010</quote>; and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H27677B4F4FBF481EACB27A324E88ADD4"><enum>(B)</enum><text>by inserting <quote>Funds appropriated under this paragraph for each of fiscal years 2026 through 2033 shall remain available until expended.</quote> after the period.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HD18AC7AF6A31410E81E263845D921A56"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 1927(k) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(k)</external-xref>) is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H0D13FCDD22CF411787DBC32798CF2298"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by striking <quote>In the section</quote> and inserting <quote>In this section</quote>; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H2A677C1818864468B2803F6CB990F5D8"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new paragraphs:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H250D8A8927434EE8A91C9343343F1B99"> <paragraph id="HD2D510F7D1DE443EA7CE74E55DA76E68"><enum>(12)</enum><header>Applicable non-retail pharmacy</header><text display-inline="yes-display-inline">The term <term>applicable non-retail pharmacy</term> means a pharmacy that is licensed as a pharmacy by the State and that is not a retail community pharmacy, including a pharmacy that dispenses prescription medications to patients primarily through mail and specialty pharmacies. Such term does not include nursing home pharmacies, long-term care facility pharmacies, hospital pharmacies, clinics, charitable or not-for-profit pharmacies, government pharmacies, or low dispensing pharmacies (as defined by the Secretary).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H42E855C27D6B494CBAB8FC9EB308BD02"><enum>(13)</enum><header>Affiliate</header><text display-inline="yes-display-inline">The term <term>affiliate</term> means any entity that is owned by, controlled by, or related under a common ownership structure with a pharmacy benefit manager or a managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="HA68FE0F2797D4745B2FDB02DFABC7BF8"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header> <paragraph commented="no" display-inline="no-display-inline" id="H6ABA7043F2C146C5826175BD13E1A55E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to paragraph (2), the amendments made by this section shall apply beginning on the first day of the first quarter that begins on or after the date that is 6 months after the date of enactment of this section.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF083A15B9C24404FAD6498115E6750EF"><enum>(2)</enum><header>Delayed application to applicable non-retail pharmacies</header><text>The pharmacy survey requirements established by the amendments to section 1927(f) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(f)</external-xref>) made by this section shall apply to retail community pharmacies beginning on the effective date described in paragraph (1), but shall not apply to applicable non-retail pharmacies until the first day of the first quarter that begins on or after the date that is 18 months after the date of enactment of this section.</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="HA2320A6FB258482B888087EEA4303271"><enum>(d)</enum><header>Identification of applicable non-retail pharmacies</header> <paragraph commented="no" display-inline="no-display-inline" id="H9633769791D0400980E1589CE115AE76"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than January 1, 2027, the Secretary of Health and Human Services shall publish guidance specifying pharmacies that meet the definition of applicable non-retail pharmacies (as such term is defined in subsection (k)(12) of section 1927 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8</external-xref>), as added by subsection (b)), and that will be subject to the survey requirements under subsection (f)(1) of such section, as amended by subsection (a).</text></paragraph>
<paragraph id="H031CD30C912341E5A6ED3EF3969ADFFF"><enum>(2)</enum><header>Inclusion of pharmacy type indicators</header><text>The guidance published under paragraph (1) shall include pharmacy type indicators to distinguish between different types of applicable non-retail pharmacies, such as pharmacies that dispense prescriptions primarily through the mail and pharmacies that dispense prescriptions that require special handling or distribution. An applicable non-retail pharmacy may be identified through multiple pharmacy type indicators. </text></paragraph></subsection> <subsection id="H6969F911E1A74946AB029184540331D2"><enum>(e)</enum><header>Implementation</header><text display-inline="yes-display-inline">Implementation of the amendments made by this section shall be exempt from the requirements of section 553 of title 5, United States Code. </text></subsection>
<subsection id="HD562D2FC40F04DDA8A90A905DA429677" commented="no" display-inline="no-display-inline"><enum>(f)</enum><header>Nonapplication of paperwork reduction act</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/44/35">Chapter 35</external-xref> of title 44, United States Code, shall not apply to any data collection undertaken by the Secretary of Health and Human Services under section 1927(f) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(f)</external-xref>), as amended by this section. </text></subsection></section> <section id="HB9395F2C1671499499E103FBBF22CCEE"><enum>44124.</enum><header>Preventing the use of abusive spread pricing in Medicaid</header> <subsection id="H522984C736D942A38F8D269AB75B1F8A"><enum>(a)</enum><header>In general</header><text>Section 1927 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8</external-xref>) is amended—</text>
<paragraph id="H4C3E1DF0AB8D4F27B157099F619BFFF8"><enum>(1)</enum><text>in subsection (e), by adding at the end the following new paragraph:</text> <quoted-block id="HC54464B2D1BB4466968ADA252164C3CB" style="OLC"> <paragraph id="H2CE7F5BF58904679803248975E61095A"><enum>(6)</enum><header>Transparent prescription drug pass-through pricing required</header> <subparagraph id="HC628F3CDDFA245DCB909285D8885A98E"><enum>(A)</enum><header>In general</header><text>A contract between the State and a pharmacy benefit manager (referred to in this paragraph as a <quote>PBM</quote>), or a contract between the State and a managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D) and collectively referred to in this paragraph as the <quote>entity</quote>) that includes provisions making the entity responsible for coverage of covered outpatient drugs dispensed to individuals enrolled with the entity, shall require that payment for such drugs and related administrative services (as applicable), including payments made by a PBM on behalf of the State or entity, is based on a transparent prescription drug pass-through pricing model under which—</text>
<clause id="HCC9DA2C73DF7422CAB456F54F6801B0B"><enum>(i)</enum><text>any payment made by the entity or the PBM (as applicable) for such a drug—</text> <subclause id="H2D597A4DFFDB4B1DBF76E4D0256F952F"><enum>(I)</enum><text>is limited to—</text>
<item id="HF4BBE0B3B7CC434191566FE92057419A"><enum>(aa)</enum><text>ingredient cost; and</text></item> <item id="HD30CA9C53FEB4A3AB192F8120E11EA73"><enum>(bb)</enum><text>a professional dispensing fee that is not less than the professional dispensing fee that the State would pay if the State were making the payment directly in accordance with the State plan;</text></item></subclause>
<subclause id="HCE59D232E4B3473F8CB68A8546AD7B96"><enum>(II)</enum><text>is passed through in its entirety (except as reduced under Federal or State laws and regulations in response to instances of waste, fraud, or abuse) by the entity or PBM to the pharmacy or provider that dispenses the drug; and</text></subclause> <subclause id="H9802BD00AD0649F29D31C42553FAF390"><enum>(III)</enum><text>is made in a manner that is consistent with sections 447.502, 447.512, 447.514, and 447.518 of title 42, Code of Federal Regulations as if such requirements applied directly to the entity or the PBM, except that any payment by the entity or the PBM for the ingredient cost of such drug purchased by a covered entity (as defined in subsection (a)(5)(B)) may exceed the actual acquisition cost (as defined in 447.502 of title 42, Code of Federal Regulations) for such drug if—</text>
<item id="HD156582F2D9E4E03B97B8FF524FAB5A1"><enum>(aa)</enum><text>such drug was subject to an agreement under section 340B of the Public Health Service Act;</text></item> <item id="H81993448EA3445ADB8FD4BAABB932B02"><enum>(bb)</enum><text>such payment for the ingredient cost of such drug does not exceed the maximum payment that would have been made by the entity or the PBM for the ingredient cost of such drug if such drug had not been purchased by such covered entity; and</text></item>
<item id="H1F42570825114680947E1672C089FD26"><enum>(cc)</enum><text>such covered entity reports to the Secretary (in a form and manner specified by the Secretary), on an annual basis and with respect to payments for the ingredient costs of such drugs so purchased by such covered entity that are in excess of the actual acquisition costs for such drugs, the aggregate amount of such excess;</text></item></subclause></clause> <clause id="H249133E90A3045B29AC3466BD74B2312"><enum>(ii)</enum><text>payment to the entity or the PBM (as applicable) for administrative services performed by the entity or PBM is limited to an administrative fee that reflects the fair market value (as defined by the Secretary) of such services;</text></clause>
<clause id="H510AEE733BB341F6A37F29077E0F76BA" commented="no"><enum>(iii)</enum><text>the entity or the PBM (as applicable) makes available to the State, and the Secretary upon request in a form and manner specified by the Secretary, all costs and payments related to covered outpatient drugs and accompanying administrative services (as described in clause (ii)) incurred, received, or made by the entity or the PBM, broken down (as specified by the Secretary), to the extent such costs and payments are attributable to an individual covered outpatient drug, by each such drug, including any ingredient costs, professional dispensing fees, administrative fees (as described in clause (ii)), post-sale and post-invoice fees, discounts, or related adjustments such as direct and indirect remuneration fees, and any and all other remuneration, as defined by the Secretary; and</text></clause> <clause id="H499885C922004A9C8F291EB913422254"><enum>(iv)</enum><text>any form of spread pricing whereby any amount charged or claimed by the entity or the PBM (as applicable) that exceeds the amount paid to the pharmacies or providers on behalf of the State or entity, including any post-sale or post-invoice fees, discounts, or related adjustments such as direct and indirect remuneration fees or assessments, as defined by the Secretary, (after allowing for an administrative fee as described in clause (ii)) is not allowable for purposes of claiming Federal matching payments under this title.</text></clause></subparagraph>
<subparagraph id="H5552FDDF68964056A78CC48155C06C9E"><enum>(B)</enum><header>Publication of information</header><text>The Secretary shall publish, not less frequently than on an annual basis and in a manner that does not disclose the identity of a particular covered entity or organization, information received by the Secretary pursuant to subparagraph (A)(iii)(III) that is broken out by State and by each of the following categories of covered entity within each such State:</text> <clause id="H024E7515FB1C4D86BBEB2B63E3BDF2C3"><enum>(i)</enum><text>Covered entities described in subparagraph (A) of section 340B(a)(4) of the Public Health Service Act.</text></clause>
<clause id="HBE5FBE9A439646C3B44F6DBF156D744A"><enum>(ii)</enum><text>Covered entities described in subparagraphs (B) through (K) of such section.</text></clause> <clause id="H62D7AEC4D0474A23AD2F55484A06DAEF"><enum>(iii)</enum><text>Covered entities described in subparagraph (L) of such section.</text></clause>
<clause id="H6D99FD373A18462C93E5388DE37E3503"><enum>(iv)</enum><text>Covered entities described in subparagraph (M) of such section.</text></clause> <clause id="HEF97A1ED4BA24D5699FAFBE98D3BF07F"><enum>(v)</enum><text>Covered entities described in subparagraph (N) of such section.</text></clause>
<clause id="HF11F8E540D804CBD9CB847BFBE2FA54A"><enum>(vi)</enum><text>Covered entities described in subparagraph (O) of such section.</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H554A6C6B8C1C4BA291CD610A8AFA7B4A"><enum>(2)</enum><text>in subsection (k), as previously amended by this subtitle, by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HF5D1CBC0889142A4BDF4B3F13E604889" display-inline="no-display-inline">
<paragraph id="HA612E87CF05C4E14A3CBA5102B7FE045"><enum>(14)</enum><header>Pharmacy benefit manager</header><text display-inline="yes-display-inline">The term <quote>pharmacy benefit manager</quote> means any person or entity that, either directly or through an intermediary, acts as a price negotiator or group purchaser on behalf of a State, managed care entity (as defined in section 1903(m)(9)(D)), or other specified entity (as so defined), or manages the prescription drug benefits provided by a State, managed care entity, or other specified entity, including the processing and payment of claims for prescription drugs, the performance of drug utilization review, the processing of drug prior authorization requests, the managing of appeals or grievances related to the prescription drug benefits, contracting with pharmacies, controlling the cost of covered outpatient drugs, or the provision of services related thereto. Such term includes any person or entity that acts as a price negotiator (with regard to payment amounts to pharmacies and providers for a covered outpatient drug or the net cost of the drug) or group purchaser on behalf of a State, managed care entity, or other specified entity or that carries out 1 or more of the other activities described in the preceding sentence, irrespective of whether such person or entity calls itself a pharmacy benefit manager. </text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H70F676E989494A8A9F93A7785F8BC7FA"><enum>(b)</enum><header>Conforming amendments</header><text>Section 1903(m) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(m)</external-xref>) is amended—</text>
<paragraph id="H11CE62B9017046F69595860233F955AC"><enum>(1)</enum><text>in paragraph (2)(A)(xiii)—</text> <subparagraph id="H6A11013CF5774535ABAB1F7818C0993C"><enum>(A)</enum><text>by striking <quote>and (III)</quote> and inserting <quote>(III)</quote>;</text></subparagraph>
<subparagraph id="HB617EE4D4C6745C480FFE52756A73D24"><enum>(B)</enum><text>by inserting before the period at the end the following: <quote>, and (IV) if the contract includes provisions making the entity responsible for coverage of covered outpatient drugs, the entity shall comply with the requirements of section 1927(e)(6)</quote>; and</text></subparagraph> <subparagraph id="H1744B532CADF4AEB8A951ABB15695EFC"><enum>(C)</enum><text>by moving the left margin 2 ems to the left; and</text></subparagraph></paragraph>
<paragraph id="HADFE84EA90EB4C149AA4F3818E244920"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block id="HCC65DA5E46E04CF4B276F30A3F823C96" style="OLC"> <paragraph id="H38B057F8F7554514A0EF5B4D69209A57"><enum>(10)</enum><text>No payment shall be made under this title to a State with respect to expenditures incurred by the State for payment for services provided by an other specified entity (as defined in paragraph (9)(D)(iii)) unless such services are provided in accordance with a contract between the State and such entity which satisfies the requirements of paragraph (2)(A)(xiii).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H0B89C9175E2C4E329ADAAECDC0F06F91"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to contracts between States and managed care entities, other specified entities, or pharmacy benefit managers that have an effective date beginning on or after the date that is 18 months after the date of enactment of this section.</text></subsection> <subsection id="H048BA2BB8CAD475098B04323BFB48CE4"><enum>(d)</enum><header>Implementation</header><text display-inline="yes-display-inline">Implementation of the amendments made by this section shall be exempt from the requirements of section 553 of title 5, United States Code.</text></subsection>
<subsection id="HD1CD048410E14BD19021E51892F5DF14" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Nonapplication of paperwork reduction act</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/44/35">Chapter 35</external-xref> of title 44, United States Code, shall not apply to any data collection undertaken by the Secretary of Health and Human Services under section 1927(e) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(e)</external-xref>), as amended by this section.</text></subsection></section> <section id="H3FE40D63790B4DF9929BC905CD40CF20"><enum>44125.</enum><header>Prohibiting Federal Medicaid and CHIP funding for gender transition procedures</header> <subsection id="HE3AF4054BDE64277A74651934369C8AF"><enum>(a)</enum><header>Medicaid</header><text display-inline="yes-display-inline">Section 1903(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(i)</external-xref>) is amended—</text>
<paragraph id="H531ED70AEA8B4AFD88F7535394F5C6CF"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (26), by striking <quote>; or</quote> and inserting a semicolon; </text></paragraph> <paragraph id="H1BA6314034364B33883013B8692632CE"><enum>(2)</enum><text>in paragraph (27), by striking the period at the end and inserting <quote>; or</quote>;</text></paragraph>
<paragraph id="H32AD0C10D5FF47DAA891A4FA0D08CB99"><enum>(3)</enum><text>by inserting after paragraph (27) the following new paragraph:</text> <quoted-block style="OLC" id="H6265452921F74CC791B0C1BF0D78F8D2" display-inline="no-display-inline"> <paragraph id="H51DBCA86AF554763A0111907B7060DE2"><enum>(28)</enum><text display-inline="yes-display-inline">with respect to any amount expended for specified gender transition procedures (as defined in section 1905(kk)) furnished to an individual enrolled in a State plan (or waiver of such plan).</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="H1F4A0873E26E46B2B621904AA22E45AA"><enum>(4)</enum><text display-inline="yes-display-inline">in the flush left matter at the end, by striking <quote>and (18),</quote> and inserting <quote>(18), and (28)</quote>. </text></paragraph></subsection> <subsection id="H21157A8916144104B0047134D54E8E74"><enum>(b)</enum><header>CHIP</header><text display-inline="yes-display-inline">Section 2107(e)(1)(N) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397gg">42 U.S.C. 1397gg(e)(1)(N)</external-xref>) is amended by striking <quote>and (17)</quote> and inserting <quote>(17), and (28)</quote>. </text></subsection>
<subsection id="HF14D09C75E5443A2A45923067FA8CFD1"><enum>(c)</enum><header>Specified gender transition procedures defined</header><text display-inline="yes-display-inline">Section 1905 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d</external-xref>) is amended by adding at the end the following new subsection: </text> <quoted-block style="OLC" id="HDFB94F45E9674090BF7562F5933FE4D8" display-inline="no-display-inline"> <subsection id="H4A72DDB210E349B9B3E13CE368C4F99B"><enum>(kk)</enum><header>Specified gender transition procedures</header> <paragraph id="H6965FD7C15C340D6BEC270D789667F27" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 1903(i)(28), except as provided in <internal-xref idref="HB8ABB72F22D84A7CB311B1D53F490F86" legis-path="(kk)(2)">paragraph (2)</internal-xref>, the term <term>specified gender transition procedure</term> means, with respect to an individual, any of the following when performed for the purpose of intentionally changing the body of such individual (including by disrupting the body’s development, inhibiting its natural functions, or modifying its appearance) to no longer correspond to the individual’s sex: </text>
<subparagraph id="H4B66F9771C994732AAAD25DDCDE9B285" commented="no"><enum>(A)</enum><text>Performing any surgery, including—</text> <clause id="H42127F144362466D8EC72E5CFE1F2DCB" commented="no"><enum>(i)</enum><text>castration;</text></clause>
<clause id="H5A560A4884C14AC19E8095AFB75771F2"><enum>(ii)</enum><text>sterilization;</text></clause> <clause id="H7B015BEAC3D54D71A133FEE85F6F0368"><enum>(iii)</enum><text>orchiectomy;</text></clause>
<clause id="H0FAF29943C404FF2A9B10E09FE88BAAD"><enum>(iv)</enum><text>scrotoplasty;</text></clause> <clause id="H0DD1F411BD96439292CF8D64EE6F51F5"><enum>(v)</enum><text>vasectomy;</text></clause>
<clause id="H5ECFFFED71204AB0923FFE3B2D0C9595"><enum>(vi)</enum><text>tubal ligation;</text></clause> <clause id="H2D9D07B6DF4C4344B6C5CF6A9F67ED5D"><enum>(vii)</enum><text>hysterectomy;</text></clause>
<clause id="H2B2C002CE6C74C8F9C0F43696949D23F"><enum>(viii)</enum><text>oophorectomy;</text></clause> <clause id="H005624EF45164765B25947F0056DA5FD"><enum>(ix)</enum><text>ovariectomy;</text></clause>
<clause id="H26EA69BB6E9645A0863C251FF0E04BF9"><enum>(x)</enum><text display-inline="yes-display-inline">metoidioplasty;</text></clause> <clause id="HA6B80509F67245218EF35C5F088B1FB6"><enum>(xi)</enum><text display-inline="yes-display-inline">clitoroplasty;</text></clause>
<clause id="HCED23B1E2F7947558089D90BA425BF49"><enum>(xii)</enum><text>reconstruction of the fixed part of the urethra with or without a metoidioplasty or a phalloplasty;</text></clause> <clause id="H52CCB19FB7E3493391585D21F1034B4A"><enum>(xiii)</enum><text>penectomy;</text></clause>
<clause id="H2A44472E8A7447629705CB3507838578"><enum>(xiv)</enum><text>phalloplasty;</text></clause> <clause id="HFEFD4EE1B7CE47ED88A7FC65D2A84880"><enum>(xv)</enum><text>vaginoplasty;</text></clause>
<clause id="H9BA4A97B438747A9876D60CA0CDE90ED"><enum>(xvi)</enum><text>vaginectomy;</text></clause> <clause id="H325B5512CBBB4F56BF3DA8A7CDC25FA5"><enum>(xvii)</enum><text>vulvoplasty;</text></clause>
<clause id="H610EAE4D4D124876A48D7E92D28AD80F"><enum>(xviii)</enum><text>reduction thyrochondroplasty;</text></clause> <clause id="H7CFCFAFB53A147288034F5ECD1740D06"><enum>(xix)</enum><text>chondrolaryngoplasty;</text></clause>
<clause id="H10CA3178E24243DCB44548464B6A8B44"><enum>(xx)</enum><text>mastectomy; and</text></clause> <clause id="H5C9F91EF37E844E5B87C06608319A911"><enum>(xxi)</enum><text>any plastic, cosmetic, or aesthetic surgery that feminizes or masculinizes the facial or other body features of an individual.</text></clause></subparagraph>
<subparagraph id="H486EB25A81C744A6B33FC85C4BB81E5E"><enum>(B)</enum><text>Any placement of chest implants to create feminine breasts or any placement of erection or testicular prostheses.</text></subparagraph> <subparagraph id="H5C37756FB7F64C38916B5C7B39BFF8CE"><enum>(C)</enum><text>Any placement of fat or artificial implants in the gluteal region.</text></subparagraph>
<subparagraph id="H7B003451D3DC4C6FB2C439E8326A7363"><enum>(D)</enum><text>Administering, prescribing, or dispensing to an individual medications, including—</text> <clause id="HCEEFF156089F4967B2E63B968A6BE639"><enum>(i)</enum><text>gonadotropin-releasing hormone (GnRH) analogues or other puberty-blocking drugs to stop or delay normal puberty; and</text></clause>
<clause id="HCF8FFED527B44BAE9D0738257C51A854"><enum>(ii)</enum><text>testosterone, estrogen, or other androgens to an individual at doses that are supraphysiologic than would normally be produced endogenously in a healthy individual of the same age and sex.</text></clause></subparagraph></paragraph> <paragraph id="HB8ABB72F22D84A7CB311B1D53F490F86"><enum>(2)</enum><header>Exception</header><text><internal-xref idref="H6965FD7C15C340D6BEC270D789667F27" legis-path="(kk)(1)">Paragraph (1)</internal-xref> shall not apply to the following when furnished to an individual by a health care provider with the consent of such individual’s parent or legal guardian:</text>
<subparagraph id="HFC3D698A6EC340E6987284C0A93811C7"><enum>(A)</enum><text>Puberty suppression or blocking prescription drugs for the purpose of normalizing puberty for an individual experiencing precocious puberty.</text></subparagraph> <subparagraph id="H0E95CD4EABA04A2BA659500E11039519"><enum>(B)</enum><text>Medically necessary procedures or treatments to correct for—</text>
<clause id="H0158BDE70E9641AB8101749AAEFA5960"><enum>(i)</enum><text>a medically verifiable disorder of sex development, including—</text> <subclause id="H06FE972A2844452599B338C2B2ECA8CA"><enum>(I)</enum><text>46,XX chromosomes with virilization;</text></subclause>
<subclause id="H7DBC6C5859CF44139AF46A4A2C31456A"><enum>(II)</enum><text>46,XY chromosomes with undervirilization; and</text></subclause> <subclause id="HA2ED01CE7050486399071687D2C5AD57"><enum>(III)</enum><text>both ovarian and testicular tissue;</text></subclause></clause>
<clause id="H0EB42CAF351F49E39E66ED38C63D2EB0"><enum>(ii)</enum><text>sex chromosome structure, sex steroid hormone production, or sex hormone action, if determined to be abnormal by a physician through genetic or biochemical testing;</text></clause> <clause id="H2CCA274311B346D9876E6EBDB3BE0811"><enum>(iii)</enum><text>infection, disease, injury, or disorder caused or exacerbated by a previous procedure described in <internal-xref idref="H6965FD7C15C340D6BEC270D789667F27" legis-path="(kk)(1)">paragraph (1)</internal-xref>, or a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the individual in imminent danger of death or impairment of a major bodily function unless the procedure is performed, not including procedures performed for the alleviation of mental distress; or</text></clause>
<clause id="HFF0618E2C0F5410884303791EA9660E4"><enum>(iv)</enum><text>procedures to restore or reconstruct the body of the individual in order to correspond to the individual’s sex after one or more previous procedures described in <internal-xref idref="H6965FD7C15C340D6BEC270D789667F27" legis-path="(kk)(1)">paragraph (1)</internal-xref>, which may include the removal of a pseudo phallus or breast augmentation.</text></clause></subparagraph></paragraph> <paragraph id="HC58F3681324242EA991F30FDDC9C39F8"><enum>(3)</enum><header>Sex</header><text display-inline="yes-display-inline">For purposes of <internal-xref idref="H6965FD7C15C340D6BEC270D789667F27" legis-path="(kk)(1)">paragraph (1)</internal-xref>, the term <term>sex</term> means either male or female, as biologically determined and defined in paragraphs (4) and (5), respectively.</text></paragraph>
<paragraph id="HFE39D0CADFD444D8BBE6C1B297470783"><enum>(4)</enum><header>Female</header><text>For purposes of paragraph (3), the term <term>female</term> means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes eggs for fertilization.</text></paragraph> <paragraph id="H4F335D700F474740B57418B4A88BE7FB"><enum>(5)</enum><header>Male</header><text>For purposes of paragraph (3), the term <term>male</term> means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes sperm for fertilization.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="H67BB4BD559624148A08B867FFF9C074C" display-inline="no-display-inline" section-type="subsequent-section"><enum>44126.</enum><header>Federal payments to prohibited entities</header>
<subsection commented="no" display-inline="no-display-inline" id="HD96DA17D8D094AB894A30826182652AF"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">No Federal funds that are considered direct spending and provided to carry out a State plan under title XIX of the Social Security Act or a waiver of such a plan shall be used to make payments to a prohibited entity for items and services furnished during the 10-year period beginning on the date of the enactment of this Act, including any payments made directly to the prohibited entity or under a contract or other arrangement between a State and a covered organization. </text></subsection> <subsection id="H6CFD272AF3FA4EB3BAAD8E8A4FA7F645"><enum>(b)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="HCC8FD553DB73430886D29E1CA183071F"><enum>(1)</enum><header>Prohibited entity</header><text>The term <term>prohibited entity</term> means an entity, including its affiliates, subsidiaries, successors, and clinics—</text> <subparagraph id="H66512DD79E7E4ED4B864F47ABDF54108"><enum>(A)</enum><text>that, as of the date of enactment of this Act—</text>
<clause id="H419F330BD92A499D90507827E3A67552"><enum>(i)</enum><text>is an organization described in <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(3)</external-xref> of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code;</text></clause> <clause id="H1787FAD1A64E44D395D0E5D9B9B87468"><enum>(ii)</enum><text>is an essential community provider described in section 156.235 of title 45, Code of Federal Regulations (as in effect on the date of enactment of this Act), that is primarily engaged in family planning services, reproductive health, and related medical care; and</text></clause>
<clause id="HDEA9F8B6B96544D79327368DC42DB142"><enum>(iii)</enum><text>provides for abortions, other than an abortion—</text> <subclause id="H5FE5923E5B434E0A9E9884BE3D0C0AF1"><enum>(I)</enum><text>if the pregnancy is the result of an act of rape or incest; or</text></subclause>
<subclause id="H50F293B6FAA24D71B369E31B88DF3E1E"><enum>(II)</enum><text>in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed; and</text></subclause></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H1B60A9C814D1432EA0BCC1585A0C2F5E"><enum>(B)</enum><text display-inline="yes-display-inline">for which the total amount of Federal and State expenditures under the Medicaid program under title XIX of the Social Security Act in fiscal year 2024 made directly, or by a covered organization, to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity, or made to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity as part of a nationwide health care provider network, exceeded $1,000,000.</text></subparagraph></paragraph>
<paragraph id="H2B7A8CC021B042A098D947D79BC2E5ED" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Direct spending</header><text>The term <term>direct spending</term> has the meaning given that term under section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/2/900">2 U.S.C. 900(c)</external-xref>).</text></paragraph> <paragraph id="HF76F31E2580B4080AABCF36BF6CF4651"><enum>(3)</enum><header>Covered organization</header><text display-inline="yes-display-inline">The term <quote>covered organization</quote> means a managed care entity (as defined in section 1932(a)(1)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396u-2">42 U.S.C. 1396u–2(a)(1)(B)</external-xref>)) or a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(m)(9)(D)</external-xref>)).</text></paragraph>
<paragraph id="H76B6BF805F7743488453F8973FD7EBCA"><enum>(4)</enum><header>State</header><text display-inline="yes-display-inline">The term <quote>State</quote> has the meaning given such term in section 1101 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1301">42 U.S.C. 1301</external-xref>).</text></paragraph></subsection></section></subpart> <subpart id="HFD5614FF96FF49959C2D2AA9575F3B9B"><enum>C</enum><header>Stopping abusive financing practices</header> <section id="H3C8288CE0F694A518887D5C83EDC4D6F" section-type="subsequent-section"><enum>44131.</enum><header>Sunsetting eligibility for increased FMAP for new expansion States</header><text display-inline="no-display-inline">Section 1905(ii)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d(ii)(3)</external-xref>) is amended—</text>
<paragraph id="HE6FEC7A960784569B689414C9EB2D98D"><enum>(1)</enum><text>by striking <quote>which has not</quote> and inserting the following: </text> <quoted-block style="OLC" id="HC20C3582984B498C8E637543AA184D4A" display-inline="yes-display-inline"><text display-inline="yes-display-inline">which—</text>
<subparagraph id="HC921375846A6427A9EE24EEEFEB44136"><enum>(A)</enum><text display-inline="yes-display-inline">has not</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></paragraph> <paragraph id="H63A031F5ED134225A6C85B785A818A8A"><enum>(2)</enum><text>in subparagraph (A), as so inserted, by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph>
<paragraph id="HD585CFF74D584EA89FFB87D92AC568CD"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="H9C1312ACCA464128960A26D7A3EA17ED" display-inline="no-display-inline"> <subparagraph id="HAF15CC03ABBF4C859CE95BD25524E859"><enum>(B)</enum><text display-inline="yes-display-inline">begins to expend amounts for all such individuals prior to January 1, 2026.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="HF8B6F6DB0C6D4357A0AF8839E688F56A" section-type="subsequent-section"><enum>44132.</enum><header>Moratorium on new or increased provider taxes</header><text display-inline="no-display-inline">Section 1903(w)(1)(A)(iii) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(w)(1)(A)(iii)</external-xref>) is amended—</text> <paragraph id="H44644FC6D15446E994C787F9F5EB51A5"><enum>(1)</enum><text>by striking <quote>or</quote> at the end; </text></paragraph>
<paragraph id="H24F9517DDFE04A079D50754D9CB88667"><enum>(2)</enum><text>by striking <quote>if there</quote> and inserting </text> <quoted-block style="OLC" id="H81915E3303914EA4ACBE197EAA7E6338" display-inline="yes-display-inline"><text display-inline="yes-display-inline">if—</text>
<subclause id="H402F1FF5C74749CD85FF2DC4CEA7448E" indent="up2"><enum>(I)</enum><text display-inline="yes-display-inline">there</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H0EA375EA88494FDFB9905F1ACF4A6B56"><enum>(3)</enum><text>by adding at the end the following new subclauses:</text>
<quoted-block style="OLC" id="HE1D8DA5B139D451B80641990541B0D7F" display-inline="no-display-inline">
<subclause id="H4808FD7D894049D88E35D67E4BF0EE34" indent="up2"><enum>(II)</enum><text display-inline="yes-display-inline">the tax is first imposed by the State (or by a unit of local government in the State) on or after the date of the enactment of this subclause (other than such a tax for which the legislation or regulations providing for the imposition of such tax were enacted or adopted prior to such date of enactment); or</text></subclause> <subclause id="H01B68A29AA0E4DE59D1746F46AC76948" indent="up2"><enum>(III)</enum><text display-inline="yes-display-inline">on or after the date of the enactment of this subclause, the State (or unit of local government) increases the amount or rate of tax imposed with respect to a class of health care items or services (or with respect to a type of provider or activity within such a class), or increases the base of the tax such that the tax is imposed with respect to a class of items or services (or with respect to a type of provider or activity within such a class) to which the tax did not previously apply, but only to the extent that such revenues are attributable to such increase and only if such increase was not provided for in legislation or regulations enacted or adopted prior to such date of enactment; or</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H63D55CA386224242A1A69B45097D0F7E" section-type="subsequent-section"><enum>44133.</enum><header>Revising payments for certain State directed payments</header>
<subsection id="HFC1E3DDFAF6A45FBB2EC79DB0FB9BB72"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subsection (b), the Secretary of Health and Human Services (in this section referred to as the Secretary) shall revise section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations such that, with respect to a payment described in such section made for a service furnished during a rating period beginning on or after the date of the enactment of this Act, the total payment rate for such service is limited to—</text> <paragraph id="HFFD5472EFD9E467BBA368250A2609743"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a State that provides coverage to all individuals described in section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(10)(A)(i)(VIII)</external-xref>) that is equivalent to minimum essential coverage (as described in <external-xref legal-doc="usc" parsable-cite="usc/26/5000A">section 5000A(f)(1)(A)</external-xref> of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) under the State plan (or waiver of such plan) of such State under title XIX of such Act, 100 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, an equivalent Medicare payment rate); or</text></paragraph>
<paragraph id="H610C37D80E5A46D5A0A9F17968CE447C"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a State other than a State described in paragraph (1), 110 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, an equivalent Medicare payment rate).</text></paragraph></subsection> <subsection id="H0AE56B7E732D4DDD90625CCA0786BCC7"><enum>(b)</enum><header>Grandfathering certain payments</header><text display-inline="yes-display-inline">In the case of a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations for which written prior approval was made before the date of the enactment of this Act for the rating period occurring as of such date of enactment, or a payment so described for such rating period for which a preprint was submitted to the Secretary prior to such date of enactment, the revisions described in subsection (a) shall not apply to such payment for such rating period and for any subsequent rating period if the amount of such payment does not exceed the amount of such payment so approved.</text></subsection>
<subsection id="H07B2E0C524B34E6DA24774F616C79050" display-inline="no-display-inline"><enum>(c)</enum><header>Treatment of expansion States</header><text display-inline="yes-display-inline">The revisions described in subsection (a) shall provide that, with respect to a State that begins providing the coverage described in paragraph (1) of such subsection on or after the date of the enactment of this Act, the limitation described in such paragraph shall apply to such State with respect to a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations for a service furnished during a rating period beginning on or after the date on which such State begins providing such coverage, including with respect to a payment so described for which written prior approval was made before such date.</text></subsection> <subsection id="HAE0F0F26CCE64874BC5F2E5E79312720"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="H530939C92884418B9F79A826F863FEBD"><enum>(1)</enum><header>Equivalent Medicare payment rate</header><text>The term <quote>equivalent Medicare payment rate</quote> means amounts calculated as payment for specific services comparable to the service furnished that have been developed under part A or part B of title XVIII of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396">42 U.S.C. 1396 et seq.</external-xref>).</text> </paragraph> <paragraph id="HE3E244DCA7C640E1BAAA5023850DEEE4"><enum>(2)</enum><header>Rating period</header><text display-inline="yes-display-inline">The term <quote>rating period</quote> has the meaning given such term in section 438.2 of title 42, Code of Federal Regulations.</text></paragraph>
<paragraph id="HF01AA65A057843D39CCDD94A1EFBF2F7"><enum>(3)</enum><header>Total published Medicare payment rate</header><text display-inline="yes-display-inline">The term <quote>total published Medicare payment rate</quote> means amounts calculated as payment for specific services including the service furnished that have been developed under part A or part B of title XVIII of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395">42 U.S.C. 1395 et seq.</external-xref>).</text></paragraph> <paragraph id="H7F2E27BDD937470C973F76C50FA6F5E6"><enum>(4)</enum><header>Written prior approval</header><text display-inline="yes-display-inline">The term <quote>written prior approval</quote> has the meaning given such term in section 438.6(c)(2)(i) of title 42, Code of Federal Regulations.</text></paragraph></subsection>
<subsection id="H342E5A231C934C74B44883422817E8C1"><enum>(e)</enum><header>Funding</header><text>There are appropriated out of any monies in the Treasury not otherwise appropriated $7,000,000 for each of fiscal years 2026 through 2033 for purposes of carrying out this section.</text></subsection></section> <section id="H5EB0FFBFF302423EBF095BC7F0C27002"><enum>44134.</enum><header>Requirements regarding waiver of uniform tax requirement for Medicaid provider tax</header> <subsection commented="no" display-inline="no-display-inline" id="H708E38D245CF4A75A0239F6331191147"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 1903(w) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(w)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H48F4D518CB2B4C64833EB7A2BE87252E"><enum>(1)</enum><text>in paragraph (3)(E), by inserting after clause (ii)(II) the following new clause:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HCA56521E443F4081AFB2824CAF63E077"> <clause commented="no" display-inline="no-display-inline" id="HC2E50EC6DC1A417BAD40AFB9ECF93E62" indent="up3"><enum>(iii)</enum><text>For purposes of clause (ii)(I), a tax is not considered to be generally redistributive if any of the following conditions apply:</text>
<subclause commented="no" display-inline="no-display-inline" id="H4D2698E0559A47BB97A9F22FA196297F"><enum>(I)</enum><text>Within a permissible class, the tax rate imposed on any taxpayer or tax rate group (as defined in paragraph (7)(J)) explicitly defined by its relatively lower volume or percentage of Medicaid taxable units (as defined in paragraph (7)(H)) is lower than the tax rate imposed on any other taxpayer or tax rate group explicitly defined by its relatively higher volume or percentage of Medicaid taxable units.</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H6AD4EDB43030452F9574F756777BC863"><enum>(II)</enum><text>Within a permissible class, the tax rate imposed on any taxpayer or tax rate group (as so defined) based upon its Medicaid taxable units (as so defined) is higher than the tax rate imposed on any taxpayer or tax rate group based upon its non-Medicaid taxable unit (as defined in paragraph (7)(I)).</text></subclause>
<subclause id="HEB10FAC52A2748FCB75FF2788D14A00D"><enum>(III)</enum><text>The tax excludes or imposes a lower tax rate on a taxpayer or tax rate group (as so defined) based on or defined by any description that results in the same effect as described in subclause (I) or (II) for a taxpayer or tax rate group. Characteristics that may indicate such type of exclusion include the use of terminology to establish a tax rate group—</text> <item id="HF7A8FF8FE3524625A4E9CF1D1EF7E206"><enum>(aa)</enum><text>based on payments or expenditures made under the program under this title without mentioning the term <term>Medicaid</term> (or any similar term) to accomplish the same effect as described in subclause (I) or (II); or</text></item>
<item commented="no" display-inline="no-display-inline" id="H1272CD19FEDE41069C60EF1FAA0B8FA0"><enum>(bb)</enum><text>that closely approximates a taxpayer or tax rate group under the program under this title, to the same effect as described in subclause (I) or (II).</text></item></subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H4143272020CF42C2976566A63AAB87E7"><enum>(2)</enum><text>in paragraph (7), by adding at the end the following new subparagraphs:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H2F17118F668843EDA0B1725D0300FEC9">
<subparagraph commented="no" display-inline="no-display-inline" id="H383358AB4DB9428694B8F54019E9FBDB" indent="up1"><enum>(H)</enum><text display-inline="yes-display-inline">The term <term>Medicaid taxable unit</term> means a unit that is being taxed within a health care related tax that is applicable to the program under this title. Such term includes a unit that is used as the basis for—</text> <clause commented="no" display-inline="no-display-inline" id="H3E4B31C4191140DCABA88ABDA0A0714B"><enum>(i)</enum><text display-inline="yes-display-inline">payment under the program under this title (such as Medicaid bed days);</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H78660E04258343CB8CC69E806891B827"><enum>(ii)</enum><text display-inline="yes-display-inline">Medicaid revenue;</text></clause> <clause commented="no" display-inline="no-display-inline" id="HFC6BB0FAFA1D442BA12C117186999E25"><enum>(iii)</enum><text display-inline="yes-display-inline">costs associated with the program under this title (such as Medicaid charges, claims, or expenditures); and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H8B7D407F725F441BB85B3F35E308A5F1"><enum>(iv)</enum><text display-inline="yes-display-inline">other units associated with the program under this title, as determined by the Secretary.</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H30F6D5C4BBD844CB9FB44023402472FA" indent="up1"><enum>(I)</enum><text>The term <term>non-Medicaid taxable unit</term> means a unit that is being taxed within a health care related tax that is not applicable to the program under this title. Such term includes a unit that is used as the basis for—</text>
<clause commented="no" display-inline="no-display-inline" id="HEE6BF9D8070B4E23BD5EEFDAB54FA11F"><enum>(i)</enum><text display-inline="yes-display-inline">payment by non-Medicaid payers (such as non-Medicaid bed days);</text></clause> <clause commented="no" display-inline="no-display-inline" id="HBF83D96ED7F44369817ABA96461BCE36"><enum>(ii)</enum><text display-inline="yes-display-inline">non-Medicaid revenue;</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H5F13C5777C534B33A2192244DFE30556"><enum>(iii)</enum><text display-inline="yes-display-inline">costs that are not associated with the program under this title (such as non-Medicaid charges, non-Medicaid claims, or non-Medicaid expenditures); and</text></clause> <clause commented="no" display-inline="no-display-inline" id="H64EEDADC97D844A98421662ED8132CF8"><enum>(iv)</enum><text display-inline="yes-display-inline">other units not associated with the program under this title, as determined by the Secretary.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" indent="up1" id="H075FB34A89E84C6EAA1FC57CD9B3943B"><enum>(J)</enum><text display-inline="yes-display-inline">The term <term>tax rate group</term> means a group of entities contained within a permissible class of a health care related tax that are taxed at the same rate.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H2D48558D1C7F47589012AA5D9DCFA3AE"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall take effect upon the date of enactment of this Act, subject to any applicable transition period determined appropriate by the Secretary of Health and Human Services, not to exceed 3 fiscal years.</text></subsection></section>
<section id="H1C015F9E05EC445A9C94D41CECB0A6DB" section-type="subsequent-section"><enum>44135.</enum><header>Requiring budget neutrality for Medicaid demonstration projects under section 1115</header><text display-inline="no-display-inline">Section 1115 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1315">42 U.S.C. 1315</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="H1287B178A8394EE9AC20BEF3E8B16DD9" display-inline="no-display-inline"> <subsection id="HD42849E0F29947DA99E2600F926C2E29"><enum>(g)</enum><header>Requirement of budget neutrality for Medicaid demonstration projects</header> <paragraph id="HE2BE08B7F8804581834EDFE3E0175AB1"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Beginning on the date of the enactment of this subsection, the Secretary may not approve an application for (or renewal or amendment of) an experimental, pilot, or demonstration project undertaken under subsection (a) to promote the objectives of title XIX in a State (in this subsection referred to as a <quote>Medicaid demonstration project</quote>) unless the Secretary certifies that such project is not expected to result in an increase in the amount of expenditures compared to the amount that such expenditures would otherwise be in the absence of such project.</text></paragraph>
<paragraph id="H8FE8C0DDA88B45D3BE1DD2743EF38D1A"><enum>(2)</enum><header>Treatment of savings</header><text>In the event that expenditures with respect to a State under a Medicaid demonstration project are, during an approval period for such project, less than the amount of such expenditures that would have otherwise been made in the absence of such project, the Secretary shall specify the methodology to be used with respect to any subsequent approval period for such project for purposes of taking the difference between such expenditures into account.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section></subpart> <subpart id="H1BBE6809B71F4D06A782AA8E654033BF"><enum>D</enum><header>Increasing personal accountability</header> <section id="H9159045F552041A3BA1CA56B1BC9A0E5"><enum>44141.</enum><header>Requirement for States to establish Medicaid community engagement requirements for certain individuals</header> <subsection id="H627AA91BC85A489591F53D24522C5772"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1902 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a</external-xref>), as amended by sections 44103 and 44104, is further amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H8F0C1D199E3A40A5BCA6A2352827BBF2" display-inline="no-display-inline">
<subsection id="H99775D6ECCA14C81B026B6A9315777A8"><enum>(xx)</enum><header>Community engagement requirement for applicable individuals</header>
<paragraph id="HB6AF384441DE4949A93B14DED9C868D0" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Beginning not later than December 31, 2026, or, at the option of the State, such earlier date as the State may specify, subject to the succeeding provisions of this subsection, a State shall provide, as a condition of eligibility for medical assistance for an applicable individual, that such individual is required to demonstrate community engagement under <internal-xref idref="H2DF7E65CD8C346A9A3C0F98DF35993C3" legis-path="(uu)(2)">paragraph (2)</internal-xref>—</text> <subparagraph id="H8A9E85017D424C8FB2BCF9A240B4521D"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of an applicable individual who has filed an application for medical assistance under a State plan (or a waiver of such plan) under this title, for 1 or more (as specified by the State) consecutive months immediately preceding the month during which such individual applies for such medical assistance; and</text></subparagraph>
<subparagraph id="HE3D2FD1BB9A84083AC7629912F4B4C8E"><enum>(B)</enum><text>in the case of an applicable individual enrolled and receiving medical assistance under a State plan (or under a waiver of such plan) under this title, for 1 or more (as specified by the State) months, whether or not consecutive—</text> <clause id="H5A7B9A74AA1D4619BF2043F8C24D6A7C"><enum>(i)</enum><text display-inline="yes-display-inline">during the period between such individual’s most recent determination (or redetermination, as applicable) of eligibility and such individual’s next regularly scheduled redetermination of eligibility (as verified by the State as part of such regularly scheduled redetermination of eligibility); or</text></clause>
<clause id="HC04C39DBD01540EF9D2BBC48DACDA531"><enum>(ii)</enum><text>in the case of a State that has elected under <internal-xref idref="HC417A7B913EA48889CE79D8F957CCF3B" legis-path="(uu)(4)">paragraph (4)</internal-xref> to conduct more frequent verifications of compliance with the requirement to demonstrate community engagement, during the period between the most recent and next such verification with respect to such individual.</text></clause></subparagraph></paragraph> <paragraph id="H2DF7E65CD8C346A9A3C0F98DF35993C3"><enum>(2)</enum><header>Community engagement compliance described</header><text display-inline="yes-display-inline">Subject to <internal-xref idref="HFFE2C148864A4690BF49958D66087D0B" legis-path="(uu)(3)">paragraph (3)</internal-xref>, an applicable individual demonstrates community engagement under this paragraph for a month if such individual meets 1 or more of the following conditions with respect to such month, as determined in accordance with criteria established by the Secretary through regulation:</text>
<subparagraph id="H5BBE4802556D4AC6AB90497942786ABF" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">The individual works not less than 80 hours.</text></subparagraph> <subparagraph id="HE8DA331C643A4A18A6C06B17FCBAC49F" commented="no"><enum>(B)</enum><text>The individual completes not less than 80 hours of community service.</text></subparagraph>
<subparagraph id="H6AAE124700AB454F8F98D86BD89A19B4"><enum>(C)</enum><text>The individual participates in a work program for not less than 80 hours.</text></subparagraph> <subparagraph id="HDE6D8CADB5844068A1C7A16F2BDD6D0E"><enum>(D)</enum><text>The individual is enrolled in an educational program at least half-time.</text></subparagraph>
<subparagraph id="H9E7DDE8535754ED1AE9255511876CB69"><enum>(E)</enum><text display-inline="yes-display-inline">The individual engages in any combination of the activities described in subparagraphs (A) through (D), for a total of not less than 80 hours.</text></subparagraph> <subparagraph id="H109060A2F7BB4A9486ABC7B0F260CE6E"><enum>(F)</enum><text display-inline="yes-display-inline">The individual has a monthly income that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938, multiplied by 80 hours.</text></subparagraph></paragraph>
<paragraph id="HFFE2C148864A4690BF49958D66087D0B" commented="no"><enum>(3)</enum><header>Exceptions</header>
<subparagraph id="HAC4C1EEE1E17452C9E4F2569F9BAB4D4"><enum>(A)</enum><header>Mandatory exception for certain individuals</header><text display-inline="yes-display-inline">The State shall deem an applicable individual to have demonstrated community engagement under <internal-xref idref="H2DF7E65CD8C346A9A3C0F98DF35993C3" legis-path="(uu)(2)">paragraph (2)</internal-xref> for a month if—</text> <clause id="HF041185267E745B6AFF6D9F5C9A545CD"><enum>(i)</enum><text>for part or all of such month, the individual—</text>
<subclause id="HF50596B8C53B47BE8A283EC49E22AC0E"><enum>(I)</enum><text>was a specified excluded individual (as defined in <internal-xref idref="HA99501D48B544E29802B27A4BDFE3B98" legis-path="(uu)(9)(A)(ii)">paragraph (9)(A)(ii)</internal-xref>); or</text></subclause> <subclause id="H6F26B78A70394C86AA852D0079FF4CF5" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">was—</text>
<item id="H0228F5BDA8574BE7B2FAE7982AC8BFC5" commented="no"><enum>(aa)</enum><text>under the age of 19;</text></item> <item id="H5473D1264C6E400D981A7A09DE9807FC" commented="no"><enum>(bb)</enum><text>pregnant or entitled to postpartum medical assistance under paragraph (5) or (16) of subsection (e);</text></item>
<item id="H6BE88DE1A40F4CB28880B885D48B69B7" commented="no"><enum>(cc)</enum><text display-inline="yes-display-inline">entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII; or</text></item> <item id="H069E86B3D28E4D44B95E77B17A5ECB6A" commented="no"><enum>(dd)</enum><text>described in any of subclauses (I) through (VII) of subsection (a)(10)(A)(i); or</text></item></subclause></clause>
<clause id="HB05276A1F5394C638A6113E68C4E5851"><enum>(ii)</enum><text display-inline="yes-display-inline">at any point during the 3-month period ending on the first day of such month, the individual was an inmate of a public institution. </text></clause></subparagraph> <subparagraph id="HC5F2044A8A77474897BD431C6BFC5086" commented="no"><enum>(B)</enum><header>Optional exception for short-term hardship events</header> <clause id="H417244D7CACA4664892F4D7A13CB48FC" commented="no"><enum>(i)</enum><header>In general</header><text>The State plan (or waiver of such plan) may provide, in the case of an applicable individual who experiences a short-term hardship event during a month, that the State shall, upon the request of such individual under procedures established by the State (in accordance with standards specified by the Secretary), deem such individual to have demonstrated community engagement under <internal-xref idref="H2DF7E65CD8C346A9A3C0F98DF35993C3" legis-path="(uu)(2)">paragraph (2)</internal-xref> for such month.</text></clause>
<clause id="HE4A9B095188E4C9E96E39A13C29AF62B" commented="no"><enum>(ii)</enum><header>Short-term hardship event defined</header><text>For purposes of this subparagraph, an applicable individual experiences a short-term hardship event during a month if, for part or all of such month—</text> <subclause id="H0D48B4B9A45A4003985C24740B73AAD4" commented="no" display-inline="no-display-inline"><enum>(I)</enum><text display-inline="yes-display-inline">such individual receives inpatient hospital services, nursing facility services, services in an intermediate care facility for individuals with intellectual disabilities, inpatient psychiatric hospital services, or such other services of similar acuity (including outpatient care relating to other services specified in this subclause) as the Secretary determines appropriate; or</text></subclause>
<subclause id="H579083E9F2024891AAA34D3A91FE47A5" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">such individual resides in a county (or equivalent unit of local government)—</text> <item id="H1AEDA4A676644C3981AA6B81364A0973"><enum>(aa)</enum><text>in which there exists an emergency or disaster declared by the President pursuant to the National Emergencies Act or the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or</text></item>
<item id="H4F59C4A7894E43FEB16FD4D7365E793F" commented="no"><enum>(bb)</enum><text display-inline="yes-display-inline">that, subject to a request from the State to the Secretary, made in such form, at such time, and containing such information as the Secretary may require, has an unemployment rate that is at or above the lesser of—</text> <subitem id="HACC22047E6D34D23A23D0B170F93E583" commented="no"><enum>(AA)</enum><text display-inline="yes-display-inline">8 percent; or</text></subitem>
<subitem id="H6278F59832EF4FF68CB988CD9F686041" commented="no"><enum>(BB)</enum><text>1.5 times the national unemployment rate.</text></subitem></item></subclause> </clause></subparagraph></paragraph> <paragraph id="HC417A7B913EA48889CE79D8F957CCF3B" commented="no"><enum>(4)</enum><header>Option to conduct more frequent compliance verifications</header><text display-inline="yes-display-inline">With respect to an applicable individual enrolled and receiving medical assistance under a State plan (or a waiver of such plan) under this title, the State shall verify (in accordance with procedures specified by the Secretary) that each such individual has met the requirement to demonstrate community engagement under <internal-xref idref="HB6AF384441DE4949A93B14DED9C868D0" legis-path="(uu)(1)">paragraph (1)</internal-xref> during each such individual’s regularly scheduled redetermination of eligibility, except that a State may provide for such verifications more frequently.</text></paragraph>
<paragraph id="H1B1E5FA9B76B4E5AB385A7A66E66119C"><enum>(5)</enum><header>Ex parte verifications</header><text display-inline="yes-display-inline">For purposes of verifying that an applicable individual has met the requirement to demonstrate community engagement under <internal-xref idref="HB6AF384441DE4949A93B14DED9C868D0" legis-path="(uu)(1)">paragraph (1)</internal-xref>, the State shall, in accordance with standards established by the Secretary, establish processes and use reliable information available to the State (such as payroll data) without requiring, where possible, the applicable individual to submit additional information.</text></paragraph> <paragraph id="HCA422AE70CC14CCEB3965032911EB152" commented="no"><enum>(6)</enum><header>Procedure in the case of noncompliance</header> <subparagraph id="HC2000F95AEFB444A8EA7AC178B53AF7D" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If a State is unable to verify that an applicable individual has met the requirement to demonstrate community engagement under <internal-xref idref="HB6AF384441DE4949A93B14DED9C868D0" legis-path="(uu)(1)">paragraph (1) </internal-xref>(including, if applicable, by verifying that such individual was deemed to have demonstrated community engagement under <internal-xref idref="HFFE2C148864A4690BF49958D66087D0B" legis-path="(uu)(3)">paragraph (3)</internal-xref>) the State shall (in accordance with standards specified by the Secretary)—</text>
<clause id="HA3A62520A3144844B1F454789ACB66C3" commented="no"><enum>(i)</enum><text>provide such individual with the notice of noncompliance described in <internal-xref idref="H80106FC623DF45E595EFF533FAC97414" legis-path="(uu)(6)(B)">subparagraph (B)</internal-xref>;</text></clause> <clause id="H99257F76607F4DF9A8DEAF2B88A1C7B6" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline"></text>
<subclause id="HB28268CCA53B44C48358652487408A53" display-inline="yes-display-inline"><enum>(I)</enum><text>provide such individual with a period of 30 calendar days, beginning on the date on which such notice of noncompliance is received by the individual, to—</text> <item id="H1CAF44134233458FBA9CA74320240F0C" indent="up1"><enum>(aa)</enum><text>make a satisfactory showing to the State of compliance with such requirement (including, if applicable, by showing that such individual was deemed to have demonstrated community engagement under <internal-xref idref="HFFE2C148864A4690BF49958D66087D0B" legis-path="(uu)(3)">paragraph (3)</internal-xref>); or</text></item>
<item id="H38AEA2D40E7D4C378B57327AF08868B1" indent="up1"><enum>(bb)</enum><text>make a satisfactory showing to the State that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under <internal-xref idref="HF9CD72D98C8F4BDEBD79CEFCFE4FB00E" legis-path="(uu)(9)(A)">paragraph (9)(A)</internal-xref>; and</text></item></subclause> <subclause id="H9176A961BA3B42F9926D5021CE662381" indent="up1"><enum>(II)</enum><text>if such individual is enrolled under the State plan (or a waiver of such plan) under this title, continue to provide such individual with medical assistance during such 30-calendar-day period; and</text></subclause></clause>
<clause id="HBDA3D5666F57415FAFBF9FB2CFBD04C9" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">if no such satisfactory showing is made and the individual is not a specified excluded individual described in <internal-xref idref="HA99501D48B544E29802B27A4BDFE3B98" legis-path="(uu)(9)(A)(ii)">paragraph (9)(A)(ii)</internal-xref>, deny such individual’s application for medical assistance under the State plan (or waiver of such plan) or, as applicable, disenroll such individual from the plan (or waiver of such plan) not later than the end of the month following the month in which such 30-calendar-day period ends, provided that—</text> <subclause id="HC7A39F316BD6423A89E72EC75357339E"><enum>(I)</enum><text display-inline="yes-display-inline">the State first determines whether, with respect to the individual, there is any other basis for eligibility for medical assistance under the State plan (or waiver of such plan) or for another insurance affordability program; and</text></subclause>
<subclause id="HDE998308300B4E1A97A4ED5F8230D9F1"><enum>(II)</enum><text>the individual is provided written notice and granted an opportunity for a fair hearing in accordance with subsection (a)(3).</text></subclause></clause></subparagraph> <subparagraph id="H80106FC623DF45E595EFF533FAC97414" commented="no"><enum>(B)</enum><header>Notice</header><text display-inline="yes-display-inline">The notice of noncompliance provided to an applicable individual under <internal-xref idref="HA3A62520A3144844B1F454789ACB66C3" legis-path="(uu)(6)(A)(i)">subparagraph (A)(i)</internal-xref> shall include information (in accordance with standards specified by the Secretary) on—</text>
<clause id="H8F4F5AA3A7FF4A069B722BBD1A004231" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">how such individual may make a satisfactory showing of compliance with such requirement (as described in <internal-xref idref="H99257F76607F4DF9A8DEAF2B88A1C7B6" legis-path="(uu)(6)(A)(ii)">subparagraph (A)(ii)</internal-xref>) or make a satisfactory showing that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under <internal-xref idref="HF9CD72D98C8F4BDEBD79CEFCFE4FB00E" legis-path="(uu)(9)(A)">paragraph (9)(A)</internal-xref>; and</text></clause> <clause id="H8065A5D0BB6843738AA0B168DD4B1B63" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">how such individual may reapply for medical assistance under the State plan (or a waiver of such plan) under this title in the case that such individuals’ application is denied or, as applicable, in the case that such individual is disenrolled from the plan (or waiver).</text></clause></subparagraph></paragraph>
<paragraph id="HAC51A6168674485592248245FE3AD033" commented="no"><enum>(7)</enum><header>Treatment of noncompliant individuals in relation to certain other provisions</header>
<subparagraph id="HD373E2E7F38B4D709EE9046A85DEADCE"><enum>(A)</enum><header>Certain FMAP increases</header><text display-inline="yes-display-inline">A State shall not be treated as not providing medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII), or as not expending amounts for all such individuals under the State plan (or waiver of such plan), solely because such an individual is determined ineligible for medical assistance under the State plan (or waiver) on the basis of a failure to meet the requirement to demonstrate community engagement under <internal-xref idref="HB6AF384441DE4949A93B14DED9C868D0" legis-path="(uu)(1)">paragraph (1)</internal-xref>.</text></subparagraph> <subparagraph id="HD2FC0E37465149A89341DDED2FCE7F85"><enum>(B)</enum><header>Other provisions</header><text display-inline="yes-display-inline">For purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(c)(2)(B)</external-xref> of the Internal Revenue Code of 1986, an individual shall be deemed to be eligible for minimum essential coverage described in section 5000A(f)(1)(A)(ii) of such Code for a month if such individual would have been eligible for medical assistance under a State plan (or a waiver of such plan) under this title but for a failure to meet the requirement to demonstrate community engagement under <internal-xref idref="HB6AF384441DE4949A93B14DED9C868D0" legis-path="(uu)(1)">paragraph (1)</internal-xref>.</text></subparagraph></paragraph>
<paragraph id="H8675A65D61EA49AF9D547504C6CDD08E"><enum>(8)</enum><header>Outreach</header>
<subparagraph id="H9BD2A28678A74B8682CAC6A2087E3110"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In accordance with standards specified by the Secretary, beginning not later than the date that precedes December 31, 2026 (or, if the State elects under paragraph (1) to specify an earlier date, such earlier date) by the number of months specified by the State under paragraph (1)(A) plus 3 months, and periodically thereafter, the State shall notify applicable individuals enrolled under a State plan (or waiver) under this title of the requirement to demonstrate community engagement under this subsection. Such notice shall include information on—</text> <clause id="HDC391760E3874A37A396FF5A16B79A89"><enum>(i)</enum><text display-inline="yes-display-inline">how to comply with such requirement, including an explanation of the exceptions to such requirement under <internal-xref idref="HFFE2C148864A4690BF49958D66087D0B" legis-path="(uu)(3)">paragraph (3)</internal-xref> and the definition of the term <quote>applicable individual</quote> under <internal-xref idref="HF9CD72D98C8F4BDEBD79CEFCFE4FB00E" legis-path="(uu)(9)(A)">paragraph (9)(A);</internal-xref></text></clause>
<clause id="HA1B8731647A141ACB01698B4579C44C6"><enum>(ii)</enum><text>the consequences of noncompliance with such requirement; and</text></clause> <clause id="H91D4098AA5044241BC3BB9A34BBE6885"><enum>(iii)</enum><text>how to report to the State any change in the individual’s status that could result in—</text>
<subclause id="HEA2857FCE0024FC481C6F90B368DA589"><enum>(I)</enum><text>the applicability of an exception under <internal-xref idref="HFFE2C148864A4690BF49958D66087D0B" legis-path="(uu)(3)">paragraph (3)</internal-xref> (or the end of the applicability of such an exception); or</text></subclause> <subclause id="H4702C44492AC4C098E43DBBBCF55E312"><enum>(II)</enum><text display-inline="yes-display-inline">the individual qualifying as a specified excluded individual under <internal-xref idref="HA99501D48B544E29802B27A4BDFE3B98" legis-path="(uu)(9)(A)(ii)">paragraph (9)(A)(ii)</internal-xref>.</text></subclause></clause></subparagraph>
<subparagraph id="H050B4D9500364A91AE454DDC2543D1AD"><enum>(B)</enum><header>Form of outreach notice</header><text>A notice required under <internal-xref idref="HF9CD72D98C8F4BDEBD79CEFCFE4FB00E" legis-path="(uu)(9)(A)">subparagraph (A)</internal-xref> shall be delivered—</text> <clause id="H1C9DD23E27404B59A6E6E029214ED401"><enum>(i)</enum><text>by regular mail (or, if elected by the individual, in an electronic format); and</text></clause>
<clause id="H4C0E555D931F41B696314E2A6C1F259C"><enum>(ii)</enum><text>in 1 or more additional forms, which may include telephone, text message, an internet website, other commonly available electronic means, and such other forms as the Secretary determines appropriate.</text></clause></subparagraph></paragraph> <paragraph id="H6127A4539FF54EAA95970E1B933204EA"><enum>(9)</enum><header>Definitions</header><text>In this subsection:</text>
<subparagraph id="HF9CD72D98C8F4BDEBD79CEFCFE4FB00E"><enum>(A)</enum><header>Applicable individual</header>
<clause id="H899EE6B5F1A9491B9C8EAC368532ACC6"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>applicable individual</quote> means an individual (other than a specified excluded individual (as defined in <internal-xref idref="HA99501D48B544E29802B27A4BDFE3B98" legis-path="(uu)(9)(A)(ii)">clause (ii)</internal-xref>))—</text> <subclause id="HE991C73865874BD098D9A4F69874995A"><enum>(I)</enum><text>who is eligible to enroll (or is enrolled) under the State plan under subsection (a)(10)(A)(i)(VIII); or</text></subclause>
<subclause id="H8C89755F679247868DB0795E70BE6236"><enum>(II)</enum><text>who—</text> <item id="H2EFAB2A0CEC8468EB603AEEEA0196113"><enum>(aa)</enum><text display-inline="yes-display-inline">is otherwise eligible to enroll (or is enrolled) under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in <external-xref legal-doc="usc" parsable-cite="usc/26/5000A">section 5000A(f)(1)(A)</external-xref> of the Internal Revenue Code of 1986 and as determined in accordance with standards prescribed by the Secretary in regulations); and</text></item>
<item id="HA45C19772CB0412A82C260E571C89745"><enum>(bb)</enum><text display-inline="yes-display-inline">has attained the age of 19 and is under 65 years of age, is not pregnant, is not entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII, and is not otherwise eligible to enroll under such plan.</text></item></subclause></clause> <clause id="HA99501D48B544E29802B27A4BDFE3B98"><enum>(ii)</enum><header>Specified excluded individual</header><text display-inline="yes-display-inline">For purposes of <internal-xref idref="H899EE6B5F1A9491B9C8EAC368532ACC6" legis-path="(uu)(9)(A)(i)">clause (i)</internal-xref>, the term <quote>specified excluded individual</quote> means an individual, as determined by the State (in accordance with standards specified by the Secretary)—</text>
<subclause id="H89D1B5BC31044F5891206C8C8514A45E"><enum>(I)</enum><text display-inline="yes-display-inline">who is described in subsection (a)(10)(A)(i)(IX);</text></subclause> <subclause id="HCA0F36B53CEC41F9955D145FC4138D2D" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">who—</text>
<item id="HD47DFFF517334F639C7C106F9C883072"><enum>(aa)</enum><text>is an Indian or an Urban Indian (as such terms are defined in paragraphs (13) and (28) of section 4 of the Indian Health Care Improvement Act);</text></item> <item id="H7E71335380BD437289BCB5F1708F0DDB"><enum>(bb)</enum><text>is a California Indian described in section 809(a) of such Act; or</text></item>
<item id="H821E5588597840BF9443A312E8D5E6F1"><enum>(cc)</enum><text>has otherwise been determined eligible as an Indian for the Indian Health Service under regulations promulgated by the Secretary;</text></item></subclause> <subclause id="H6252D647346D4ABAB651CE4A517DBD30"><enum>(III)</enum><text>who is the parent, guardian, or caretaker relative of a disabled individual or a dependent child;</text></subclause>
<subclause id="H41A76DE7083142B08FF8AA336FFF4994" commented="no"><enum>(IV)</enum><text display-inline="yes-display-inline">who is a veteran with a disability rated as total under section 1155 of title 38, United States Code;</text></subclause> <subclause id="H59E7FCD007834ABFBE4A4B2E4B07B0D8"><enum>(V)</enum><text>who is medically frail or otherwise has special medical needs (as defined by the Secretary), including an individual—</text>
<item id="H2F1455C31ABF457AB722F72F8BBBC0BE" commented="no"><enum>(aa)</enum><text>who is blind or disabled (as defined in section 1614);</text></item> <item id="HFB459A452FFD47A2BA956A2F15944F45"><enum>(bb)</enum><text>with a substance use disorder;</text></item>
<item id="H1479EFBDC3E94A7382203BC8001682EA"><enum>(cc)</enum><text>with a disabling mental disorder;</text></item> <item id="H95913812259B4194BC090F8B24D092B0"><enum>(dd)</enum><text display-inline="yes-display-inline">with a physical, intellectual or developmental disability that significantly impairs their ability to perform 1 or more activities of daily living; or</text></item>
<item id="H2FF14EC2184C46C6B9609D9C7DEE0746"><enum>(ee)</enum><text display-inline="yes-display-inline">with a serious or complex medical condition; </text></item> </subclause> <subclause id="H12E41871F9D1448B82F0F01A848BF2E2" commented="no"><enum>(VI)</enum><text display-inline="yes-display-inline">who—</text>
<item id="HE9501CE6EA0249CCBFF153F51D2D4D00" commented="no"><enum>(aa)</enum><text display-inline="yes-display-inline">is in compliance with any requirements imposed by the State pursuant to section 407; or</text></item> <item id="H25A687AF380549C09E1BBDC265A2799F" commented="no"><enum>(bb)</enum><text display-inline="yes-display-inline">is a member of a household that receives supplemental nutrition assistance program benefits under the Food and Nutrition Act of 2008 and is not exempt from a work requirement under such Act;</text></item></subclause>
<subclause id="H3F559FC31DAD401E885AC80371E0773E" commented="no"><enum>(VII)</enum><text display-inline="yes-display-inline">who is participating in a drug addiction or alcoholic treatment and rehabilitation program (as defined in section 3(h) of the Food and Nutrition Act of 2008); or</text></subclause> <subclause id="H49D247233E3B49008E894DF5B1150793" commented="no"><enum>(VIII)</enum><text display-inline="yes-display-inline">who is an inmate of a public institution.</text></subclause> </clause></subparagraph>
<subparagraph id="HEB8A2C7E97704719A8B28A3678660865"><enum>(B)</enum><header>Educational program</header><text display-inline="yes-display-inline">The term <term>educational program</term> includes—</text> <clause id="H9A98BE7B751E498381186826915A5F85"><enum>(i)</enum><text display-inline="yes-display-inline">an institution of higher education (as defined in section 101 of the Higher Education Act of 1965); and</text></clause>
<clause id="H2E1EC742C7D0468694AC63F65AB42C61"><enum>(ii)</enum><text display-inline="yes-display-inline">a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006).</text></clause> </subparagraph> <subparagraph id="H39A295565AA547D284826A32BE7F0BFE"><enum>(C)</enum><header>State</header><text>The term <quote>State</quote> means 1 of the 50 States or the District of Columbia.</text></subparagraph>
<subparagraph id="H541CB6700D23484AA12FE51FB703478F"><enum>(D)</enum><header>Work program</header><text display-inline="yes-display-inline">The term <quote>work program</quote> has the meaning given such term in section 6(o)(1) of the Food and Nutrition Act of 2008.</text></subparagraph></paragraph> <paragraph id="HF5F6D1F45D384E389BE73E1673C19D56"><enum>(10)</enum><header>Prohibiting waiver of community engagement requirements</header><text display-inline="yes-display-inline">Notwithstanding section 1115(a), the provisions of this subsection may not be waived.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H230D6C699F3E460097FE75C804115F86"><enum>(b)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(10)(A)(i)(VIII)</external-xref>) is amended by striking <quote>subject to subsection (k)</quote> and inserting <quote>subject to subsections (k) and (xx)</quote>.</text></subsection> <subsection id="HD97AA785D0554A0CAE54D1944BF04113" commented="no"><enum>(c)</enum><header>Guidance</header><text display-inline="yes-display-inline">Not later than December 31, 2025, the Secretary of Health and Human Services shall issue guidance relating to the initial implementation of the amendments made by this section.</text></subsection>
<subsection id="H1ED8EF092CEC4925BF2596C33A98AD5E"><enum>(d)</enum><header>Development of government efficiency grants to States</header>
<paragraph id="H36E2877F2DE74B3D96E6B3ED4A81C7E7"><enum>(1)</enum><header>In general</header><text>The Secretary of Health and Human Services shall, out of amounts appropriated under paragraph (3), award to each State a grant equal to the amount specified in paragraph (2) for such State for purposes of establishing systems necessary to carry out the provisions of, and amendments made by, this section. </text></paragraph> <paragraph id="H7DE5B7CE621443EFBA5557C00ABF945D"><enum>(2)</enum><header>Amount specified</header><text>For purposes of paragraph (2), the amount specified in this paragraph is an amount that bears the same ratio to the amount appropriated under paragraph (3) as the number of applicable individuals (as defined in section 1902(xx) of the Social Security Act, as added by subsection (a)) residing in such State bears to the total number of such individuals residing in all States.</text></paragraph>
<paragraph id="HA1D9CA9D47E24CD8A0549D587975CDED"><enum>(3)</enum><header>Funding</header><text display-inline="yes-display-inline">There are appropriated, out of any monies in the Treasury not otherwise appropriated, $100,000,000 for fiscal year 2026 for purposes of awarding grants under paragraph (1). </text></paragraph> <paragraph id="HF2D32C0CEC2647798C922965D5ACB75F"><enum>(4)</enum><header>Definition</header><text display-inline="yes-display-inline">In this subsection, the term <quote>State</quote> means 1 of the 50 States and the District of Columbia. </text></paragraph></subsection>
<subsection id="H2DFA7E37DBE44DE88DEA1F42889097E9"><enum>(e)</enum><header>Implementation funding</header><text display-inline="yes-display-inline">For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $50,000,000 for fiscal year 2026, to remain available until expended.</text></subsection></section> <section id="HAE8034BCAA8B410F9B06AAA3C18EC7B7" section-type="subsequent-section"><enum>44142.</enum><header>Modifying cost sharing requirements for certain expansion individuals under the Medicaid program</header> <subsection id="H29F419FDBB1045ABBAB92C20DA5391C9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1916 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396o">42 U.S.C. 1396o</external-xref>) is amended—</text>
<paragraph id="HE388BCF223354883B481CD9D61AFBAF3"><enum>(1)</enum><text>in subsection (a), in the matter preceding paragraph (1), by inserting <quote>(other than, beginning October 1, 2028, specified individuals (as defined in subsection (k)(3)))</quote> after <quote>individuals</quote>; and</text></paragraph> <paragraph id="H80C3374B4C7E47D6BF3BCD62C0136D36"><enum>(2)</enum><text>by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H7D99E03F04404BABA210D7F5878A0521" display-inline="no-display-inline">
<subsection id="HF3E8157DF605434B8969261AC5CD4518"><enum>(k)</enum><header>Special rules for certain expansion individuals</header>
<paragraph id="H082BFE376D7A4AB196404666CD161C4F"><enum>(1)</enum><header>Premiums</header><text display-inline="yes-display-inline">Beginning October 1, 2028, the State plan shall provide that in the case of a specified individual (as defined in paragraph (3)) who is eligible under the plan, no enrollment fee, premium, or similar charge will be imposed under the plan.</text></paragraph> <paragraph id="H712AA9C170A54E54B7182EC530110A91" display-inline="no-display-inline"><enum>(2)</enum><header>Required imposition of cost sharing</header> <subparagraph id="H4730DC2968864E4AAFBF5000AFB462B1"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B) and subsection (j), in the case of a specified individual, the State plan shall, beginning October 1, 2028, provide for the imposition of such deductions, cost sharing, or similar charges determined appropriate by the State (in an amount greater than $0) with respect to medical assistance furnished to such an individual.</text></subparagraph>
<subparagraph id="H0F2FDD5F40704129A8CA3493B2A06E08"><enum>(B)</enum><header>Limitations</header>
<clause id="HBACA1469313E45309564CDF75B866520"><enum>(i)</enum><header>Exclusion of certain services</header><text display-inline="yes-display-inline">In no case may a deduction, cost sharing, or similar charge be imposed under the State plan with respect to services described in any of subparagraphs (B) through (J) of subsection (a)(2), or any primary care services, mental health care services, or substance use disorder services, furnished to a specified individual.</text></clause> <clause id="H0B5507712F8E434ABE71B969615712B5"><enum>(ii)</enum><header>Item and service limitation</header> <subclause id="H2D8FD4446B834B2186D6E38D5B1BDC41"><enum>(I)</enum><header>In general</header><text>Except as provided in subclause (II), in no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to an item or service furnished to a specified individual exceed $35.</text></subclause>
<subclause id="HBE097017EBDE41A5A89C978229DE24C5"><enum>(II)</enum><header>Special rules for prescription drugs</header><text display-inline="yes-display-inline">In no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to a prescription drug furnished to a specified individual exceed the limit that would be applicable under paragraph (2)(A)(i) or (2)(B) of section 1916A(c) with respect to such drug and individual if such drug so furnished were subject to cost sharing under such section.</text></subclause></clause> <clause id="H660DA13DA3ED4EC7BAB1F0B9B5484287"><enum>(iii)</enum><header>Maximum limit on cost sharing</header><text display-inline="yes-display-inline">The total aggregate amount of deductions, cost sharing, or similar charges imposed under the State plan for all individuals in the family may not exceed 5 percent of the family income of the family involved, as applied on a quarterly or monthly basis (as specified by the State).</text></clause></subparagraph>
<subparagraph id="H4C5ACF69FBC8461F909D2EE03B98927E"><enum>(C)</enum><header>Cases of nonpayment</header><text display-inline="yes-display-inline">Notwithstanding subsection (e), a State may permit a provider participating under the State plan to require, as a condition for the provision of care, items, or services to a specified individual entitled to medical assistance under this title for such care, items, or services, the payment of any deductions, cost sharing, or similar charges authorized to be imposed with respect to such care, items, or services. Nothing in this subparagraph shall be construed as preventing a provider from reducing or waiving the application of such deductions, cost sharing, or similar charges on a case-by-case basis.</text></subparagraph></paragraph> <paragraph id="H4BF88EAF5BE34D3C8D0A3CA44B66A23C"><enum>(3)</enum><header>Specified individual defined</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>specified individual</quote> means an individual who has a family income (as determined in accordance with section 1902(e)(14)) that exceeds the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved and—</text>
<subparagraph id="HF3BAF270ADDA456AAD455A4D2A572D89"><enum>(A)</enum><text>is enrolled under section 1902(a)(10)(A)(i)(VIII); or</text></subparagraph> <subparagraph id="HF040B2EA370E4E5681C7BB9710C018CC"><enum>(B)</enum><text display-inline="yes-display-inline">is described in such subsection and otherwise enrolled under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in <external-xref legal-doc="usc" parsable-cite="usc/26/5000A">section 5000A(f)(1)(A)</external-xref> of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in section 1902(a)(10)(A)(i)(VIII).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H17A7C3FF76E3458296BFEBA50EF35D61"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H47E7CC3774044CBCACF19878BE59BA15"><enum>(1)</enum><header>Required application</header><text display-inline="yes-display-inline">Section 1902(a)(14) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(14)</external-xref>) is amended by inserting <quote>and provide for imposition of such deductions, cost sharing, or similar charges for medical assistance furnished to specified individuals (as defined in paragraph (3) of section 1916(k)) in accordance with paragraph (2) of such section</quote> after <quote>section 1916</quote>.</text></paragraph> <paragraph id="H90A70A6EC0374B7A8AD71C248B122353"><enum>(2)</enum><header>Nonapplicability of alternative cost sharing</header><text>Section 1916A(a)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396o-1">42 U.S.C. 1396o–1(a)(1)</external-xref>) is amended, in the second sentence, by striking <quote>or (j)</quote> and inserting <quote>(j), or (k)</quote>.</text></paragraph></subsection></section></subpart></part>
<part id="H05270629BB974D01BCADE803B9551D15"><enum>2</enum><header>Affordable Care Act</header>
<section id="H47C85F23B57F4FFF9508E8AE7C92864D"><enum>44201.</enum><header>Addressing waste, fraud, and abuse in the ACA Exchanges</header>
<subsection id="H94C881DD71A94F8CBE7F66FDE1EB3015"><enum>(a)</enum><header>Changes to enrollment periods for enrolling in Exchanges</header><text>Section 1311 of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18031">42 U.S.C. 18031</external-xref>) is amended—</text> <paragraph id="H3081D31118BC4E27BD17222FA3A105F1"><enum>(1)</enum><text>in subsection (c)(6)—</text>
<subparagraph id="H3DC5DA22C918471589A30EBDBB7815F4"><enum>(A)</enum><text>by striking subparagraph (A);</text></subparagraph> <subparagraph id="HA867F8E45D104745B5D4CC60793F91C1"><enum>(B)</enum><text>by striking <quote>The Secretary</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H2FC0B808AF5E4613AA76BFAB81CCEEBA" display-inline="no-display-inline">
<subparagraph id="H6CDC67F22EAF4475B62A3B8950B54C5F"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H6621618D28604D6CA5EA8BD4DF645460"><enum>(C)</enum><text>by redesignating subparagraphs (B) through (D) as clauses (i) through (iii), respectively, and adjusting the margins accordingly;</text></subparagraph>
<subparagraph id="H465B234A84774CA7A886586A83F6AE56"><enum>(D)</enum><text display-inline="yes-display-inline">in clause (i), as so redesignated, by striking <quote>periods, as determined by the Secretary for calendar years after the initial enrollment period;</quote> and inserting the following: </text> <quoted-block style="OLC" id="H697078C5AB6D4D9BA9562A97C49F7684" display-inline="yes-display-inline"><text display-inline="yes-display-inline">periods for plans offered in the individual market—</text>
<subclause id="H04665A9FFE754308991FA10AA597A8F1"><enum>(I)</enum><text display-inline="yes-display-inline">for enrollment for plan years beginning before January 1, 2026, as determined by the Secretary; and</text></subclause> <subclause id="HD784CEAE23844BEDBE5498239E1CA39C"><enum>(II)</enum><text>for enrollment for plan years beginning on or after January 1, 2026, beginning on November 1 and ending on December 15 of the preceding calendar year;</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HDB1EFAE349D24E019DFBD3F9D45CB85C"><enum>(E)</enum><text>in clause (ii), as so redesignated, by inserting <quote>subject to subparagraph (B),</quote> before <quote>special enrollment periods specified</quote>; and</text></subparagraph> <subparagraph id="H6FA6682CF9EB4A72BE58875652E5F14D"><enum>(F)</enum><text>by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H4D7581A169A7400BB8A473C59DECD4DD" display-inline="no-display-inline">
<subparagraph id="HD7035F97C2AD457189E0B5257BFCAC0B"><enum>(B)</enum><header>Prohibited special enrollment period</header><text display-inline="yes-display-inline">With respect to plan years beginning on or after January 1, 2026, the Secretary may not require an Exchange to provide for a special enrollment period for an individual on the basis of the relationship of the income of such individual to the poverty line, other than a special enrollment period based on a change in circumstances or the occurrence of a specific event.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H752E9F61E6B849CF84CB0E4A876E2882"><enum>(2)</enum><text>in subsection (d), by adding at the end the following new paragraphs:</text>
<quoted-block style="OLC" id="HA5CB94C46CEA4A18AE0A21348B64A0D3" display-inline="no-display-inline">
<paragraph id="H140FD7D1B9C0402187FA6A32FF1D9761"><enum>(8)</enum><header>Prohibited enrollment periods</header><text display-inline="yes-display-inline">An Exchange may not provide for, with respect to enrollment for plan years beginning on or after January 1, 2026—</text> <subparagraph id="HF1093F6E2ACD4B65ACE137B2198E8845"><enum>(A)</enum><text>an annual open enrollment period other than the period described in subparagraph (A)(i) of subsection (c)(6); or</text></subparagraph>
<subparagraph id="HBE2C522FAD16470F83983970FB354739"><enum>(B)</enum><text>a special enrollment period described in subparagraph (B) of such subsection.</text></subparagraph></paragraph> <paragraph id="H7F93F2039D76449D99A5C1EE815C8DC2"><enum>(9)</enum><header>Verification of eligibility for special enrollment periods</header> <subparagraph id="HC405CB40A9424B169813FA558B29E9EE"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">With respect to enrollment for plan years beginning on or after January 1, 2026, an Exchange shall verify that each individual seeking to enroll in a qualified health plan offered by the Exchange during a special enrollment period selected under subparagraph (B) is eligible to enroll during such special enrollment period prior to enrolling such individual in such plan.</text></subparagraph>
<subparagraph id="H39864D103DDC471BB6D5DB2E90886A56"><enum>(B)</enum><header>Selected special enrollment periods</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), an Exchange shall select one or more special enrollment periods for a plan year with respect to which such Exchange shall conduct the verification required under subparagraph (A) such that the Exchange conducts such verification for not less than 75 percent of all individuals enrolling in a qualified health plan offered by the Exchange during any special enrollment period with respect to such plan year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H4391FAA7DA98413E83A08A6ADEFB72C8"><enum>(b)</enum><header>Verifying income for individuals enrolling in a qualified health plan through an Exchange</header> <paragraph id="H973BA0EE724D48E085DAB1FD796599BA"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1411(e)(4) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18081">42 U.S.C. 18081(e)(4)</external-xref>) is amended—</text>
<subparagraph id="HD1C404BC94AB40B58E4BA23F360920F8"><enum>(A)</enum><text>by redesignating subparagraph (C) as subparagraph (E); and</text></subparagraph> <subparagraph id="HBA2FDA43D87C439EB7BEE4AD57CA4BCB"><enum>(B)</enum><text>by inserting after subparagraph (B) the following new subparagraphs:</text>
<quoted-block style="OLC" id="HE622B5E5BAF54E09A60B526F608BA05C" display-inline="no-display-inline">
<subparagraph id="HF07BDEAEAEDA4CD287F14BC591253276"><enum>(C)</enum><header>Requiring verification of income and family size when tax data is unavailable</header><text display-inline="yes-display-inline">For plan years beginning on or after January 1, 2026, for purposes of subparagraph (A), in the case that the Exchange requests data from the Secretary of the Treasury regarding an individual’s household income and the Secretary of the Treasury does not return such data, such information may not be verified solely on the basis of the attestation of such individual with respect to such household income, and the Exchange shall take the actions described in subparagraph (A).</text></subparagraph> <subparagraph id="H6AF24FA48341446EA8CC58BEFBB7AB13" commented="no"><enum>(D)</enum><header>Requiring verification of income in the case of certain income discrepancies</header> <clause id="HA373862D4A334EBFBF5CD2EEFE00A580" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to <internal-xref idref="H3FA12B42C1CB4E3CBD9E7C21852F4CE2" legis-path="(C)(iii)">clause (iii)</internal-xref>, for plan years beginning on or after January 1, 2026, for purposes of subparagraph (A), in the case that a specified income discrepancy described in <internal-xref idref="HC2E56EF1D3FF4BF1A3B64D56E04E2E05" legis-path="(C)(ii)">clause (ii)</internal-xref> of this subparagraph exists with respect to the information provided by an applicant under subsection (b)(3), the household income of such individual shall be treated as inconsistent with information in the records maintained by persons under subsection (c), or as not verified under subsection (d), and the Exchange shall take the actions described in such subparagraph (A).</text></clause>
<clause id="HC2E56EF1D3FF4BF1A3B64D56E04E2E05" commented="no"><enum>(ii)</enum><header>Specified income discrepancy</header><text>For purposes of <internal-xref idref="HA373862D4A334EBFBF5CD2EEFE00A580" legis-path="(C)(i)">clause (i)</internal-xref>, a specified income discrepancy exists with respect to the information provided by an applicant under subsection (b)(3) if—</text> <subclause id="H45FAD1DC18B5424685F10A9AC1833479" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">the applicant attests to a projected annual household income that would qualify such applicant to be an applicable taxpayer under <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(c)(1)(A)</external-xref> of the Internal Revenue Code of 1986 with respect to the taxable year involved;</text></subclause>
<subclause id="H1817496DA63C48FD99A78F5FE6E5A66B" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the Exchange receives data from the Secretary of the Treasury or other reliable, third party data, that indicates that the household income of such applicant is less than the household income that would qualify such applicant to be an applicable taxpayer under such section 36B(c)(1)(A) with respect to the taxable year involved;</text></subclause> <subclause id="H3D085B66854B468C91045781BE5F2F88" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">such attested projected annual household income exceeds the income reflected in the data described in <internal-xref idref="H1817496DA63C48FD99A78F5FE6E5A66B" legis-path="(C)(ii)(II)">subclause (II)</internal-xref> by a reasonable threshold established by the Exchange and approved by the Secretary (which shall be not less than 10 percent, and may also be a dollar amount); and </text></subclause>
<subclause id="H40B3934E75B0450A81FB024F39D1ED96" commented="no"><enum>(IV)</enum><text display-inline="yes-display-inline">the Exchange has not assessed or determined based on the data described in <internal-xref idref="H1817496DA63C48FD99A78F5FE6E5A66B" legis-path="(C)(ii)(II)">subclause (II)</internal-xref> that the household income of the applicant meets the applicable income-based eligibility standard for the Medicaid program under title XIX of the Social Security Act or the State children’s health insurance program under title XXI of such Act.</text></subclause></clause> <clause id="H3FA12B42C1CB4E3CBD9E7C21852F4CE2"><enum>(iii)</enum><header>Exclusion of certain individuals ineligible for Medicaid</header><text display-inline="yes-display-inline">This subparagraph shall not apply in the case of an applicant who is an alien lawfully present in the United States, who is not eligible for the Medicaid program under title XIX of the Social Security Act by reason of such alien status.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H9FEF2A5A1A0F430B97C4C45DAC02AF3C"><enum>(2)</enum><header>Requiring individuals on whose behalf advance payments of the premium tax credits are made to file and reconcile on an annual basis</header><text>Section 1412(b) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18082">42 U.S.C. 18082(b)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="H3D94CC66234143C6B2D1CEB9F6802DA8" display-inline="no-display-inline"> <paragraph id="H60CB0288A76740229B7FD578588EE27D"><enum>(3)</enum><header>Annual requirement to file and reconcile</header> <subparagraph id="H44A58239CFE04B10A6A4D5661B9AC5B7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For plan years beginning on or after January 1, 2026, in the case of an individual with respect to whom any advance payment of the premium tax credit allowable under <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B</external-xref> of the Internal Revenue Code of 1986 was made under this section to the issuer of a qualified health plan for the relevant prior tax year, an advance determination of eligibility for such premium tax credit may not be made under this subsection with respect to such individual and such plan year if the Exchange determines, based on information provided by the Secretary of the Treasury, that such individual—</text>
<clause id="H59B73542FC0F49319EF4C47ABBC8DBAB" commented="no"><enum>(i)</enum><text>has not filed an income tax return, as required under sections 6011 and 6012 of such Code (and implementing regulations), for the relevant prior tax year; or</text></clause> <clause id="H9BCE0BAAC2F7468E8D44B553B39F10B5"><enum>(ii)</enum><text display-inline="yes-display-inline">as necessary, has not reconciled (in accordance with subsection (f) of such section 36B) the advance payment of the premium tax credit made with respect to such individual for such relevant prior tax year.</text></clause></subparagraph>
<subparagraph id="H9C57BB322B7D4888BB09CF54CC5B1E43"><enum>(B)</enum><header>Relevant prior tax year</header><text display-inline="yes-display-inline">For purposes of <internal-xref idref="H44A58239CFE04B10A6A4D5661B9AC5B7" legis-path="(3)(A)">subparagraph (A)</internal-xref>, the term <quote>relevant prior tax year</quote> means, with respect to the advance determination of eligibility made under this subsection with respect to an individual, the taxable year for which tax return data would be used for purposes of verifying the household income and family size of such individual (as described in section 1411(b)(3)(A)).</text></subparagraph> <subparagraph id="HA243E0FC03FB4FE79C38BEF4994C9FE7"><enum>(C)</enum><header>Preliminary attestation</header><text display-inline="yes-display-inline">If an individual subject to <internal-xref idref="H44A58239CFE04B10A6A4D5661B9AC5B7" legis-path="(3)(A)">subparagraph (A)</internal-xref> attests that such individual has fulfilled the requirements to file an income tax return for the relevant prior tax year and, as necessary, to reconcile the advance payment of the premium tax credit made with respect to such individual for such relevant prior tax year (as described in clauses (i) and (ii) of such subparagraph), the Secretary may make an initial advance determination of eligibility with respect to such individual and may delay for a reasonable period (as determined by the Secretary) any determination based on information provided by the Secretary of the Treasury that such individual has not fulfilled such requirements.</text></subparagraph>
<subparagraph id="H0BD1DEBC479D446F9CFC951918FCDDB0" commented="no"><enum>(D)</enum><header>Notice</header><text>If the Secretary determines that an individual did not meet the requirements described in <internal-xref idref="H44A58239CFE04B10A6A4D5661B9AC5B7" legis-path="(3)(A)">subparagraph (A)</internal-xref> with respect to the relevant prior tax year and notifies the Exchange of such determination, the Exchange shall comply with the notification requirement described in section 155.305(f)(4)(i) of title 45, Code of Federal Regulations (as in effect with respect to plan year 2025).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H18A4516D83294BECA19DB33A993207B5"><enum>(3)</enum><header>Removing automatic extension of period to resolve income inconsistencies</header><text>The Secretary of Health and Human Services shall revise section 155.315(f) of title 45, Code of Federal Regulations, to remove paragraph (7) of such section such that, with respect to enrollment for plan years beginning on or after January 1, 2026, in the case that an Exchange established under subtitle D of title I of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18021">42 U.S.C. 18021 et seq.</external-xref>) provides an individual applying for enrollment in a qualified health plan with a 90-day period to resolve an inconsistency in the application of such individual pursuant to section 1411(e)(4)(A)(ii)(II) of such Act, the Exchange may not provide for an automatic extension to such 90-day period on the basis that such individual is required to present satisfactory documentary evidence to verify household income.</text></paragraph></subsection>
<subsection id="H652F62B806A14B57A3496AD57E54E4A8"><enum>(c)</enum><header>Revising rules on allowable variation in actuarial value of health plans</header><text>The Secretary of Health and Human Services shall—</text> <paragraph id="HA62B968423FA4D8AAD91FBB8AFC924AD"><enum>(1)</enum><text>revise section 156.140(c) of title 45, Code of Federal Regulations, to provide that, for plan years beginning on or after January 1, 2026, the allowable variation in the actuarial value of a health plan applicable under such section shall be the allowable variation for such plan applicable under such section for plan year 2022;</text></paragraph>
<paragraph id="H730B34462548493CB28D1983A15F3037"><enum>(2)</enum><text display-inline="yes-display-inline">revise section 156.200(b)(3) of title 45, Code of Federal Regulations, to provide that, for plan years beginning on or after January 1, 2026, the requirement for a qualified health plan issuer described in such section is that the issuer ensures that each qualified health plan complies with benefit design standards, as defined in section 156.20 of such title; and</text></paragraph> <paragraph id="H913B8CF1D771483DB1321EE6FD21580D"><enum>(3)</enum><text display-inline="yes-display-inline">revise section 156.400 of title 45, Code of Federal Regulations, to provide that, for plan years beginning on or after January 1, 2026, the term <quote>de minimis variation for a silver plan variation</quote> means a minus 1 percentage point and plus 1 percentage point allowable actuarial value variation.</text></paragraph></subsection>
<subsection id="H482A757C9C124F7295FE07E2330AAE7D" commented="no"><enum>(d)</enum><header>Updating premium adjustment percentage methodology</header><text>Section 1302(c)(4) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18022">42 U.S.C. 18022(c)(4)</external-xref>) is amended—</text> <paragraph id="H20776E9E65C44C2C9C4005873FFA5EF2" commented="no"><enum>(1)</enum><text>by striking <quote>For purposes</quote> and inserting: </text>
<quoted-block style="OLC" id="H149CBD3D0B0F427094D079FB41B44A42" display-inline="no-display-inline">
<subparagraph id="HF39A767CD63E4403A7745D69792E36B5" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H4A1F3A8BFA71468F8BCB549244C4D753" commented="no"><enum>(2)</enum><text>by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H46A610745B2A43CDB6F415A91CBE944C" display-inline="no-display-inline">
<subparagraph id="H99D654E5D9D54F3AB09378E68878C305" commented="no"><enum>(B)</enum><header>Update to methodology</header><text display-inline="yes-display-inline">For calendar years beginning with 2026, the premium adjustment percentage under this paragraph for such calendar year shall be determined consistent with the methodology published in the Federal Register on April 25, 2019 (84 Fed. Reg. 17537 through 17541).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H8D40AE2C4F02459D8AF69C26219986B5"><enum>(e)</enum><header>Eliminating the fixed-dollar and gross-percentage thresholds applicable to Exchange enrollments</header><text>The Secretary of Health and Human Services shall revise section 155.400(g) of title 45, Code of Federal Regulations to eliminate, for plan years beginning on or after January 1, 2026, the gross premium percentage-based premium payment threshold policy described in paragraph (2) of such section and the fixed-dollar premium payment threshold policy described in paragraph (3) of such section.</text></subsection>
<subsection id="H94CD60C4B93E4D7484C8009BE713C510"><enum>(f)</enum><header>Prohibiting automatic reenrollment from bronze to silver level qualified health plans offered by Exchanges</header><text>The Secretary of Health and Human Services shall revise section 155.335(j) of title 45, Code of Federal Regulations to remove paragraph (4) of such section such that, with respect to reenrollments for plan years beginning on or after January 1, 2026, an Exchange established under subtitle D of title I of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18021">42 U.S.C. 18021 et seq.</external-xref>) may not reenroll an individual who was enrolled in a bronze level qualified health plan in a silver level qualified health plan (as such terms are defined in section 1301(a) and described in 1302(d) of such Act) unless otherwise permitted under section 155.335(j) of title 45, Code of Federal Regulations, as in effect on the day before the date of the enactment of this section.</text></subsection> <subsection id="H72E8C6A1001D4BC690A7589142B2E540"><enum>(g)</enum><header>Reducing advance payments of premium tax credits for certain individuals reenrolled in Exchanges</header><text>Section 1412 of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18082">42 U.S.C. 18082</external-xref>) is amended—</text>
<paragraph id="H20CEDE9544CB442ABA03AAB83BC770D6"><enum>(1)</enum><text>in subsection (a)(3), by inserting <quote>, subject to subsection (c)(2)(C),</quote> after <quote>qualified health plans</quote>; and</text></paragraph> <paragraph id="HB4B37B2E95BB4CEF8F21C5A8DB753EC2"><enum>(2)</enum><text>in subsection (c)(2)—</text>
<subparagraph id="HE2D31B69CC534DC9AA1848D636840885"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>The</quote> and inserting <quote>Subject to subparagraph (C), the</quote>; and</text></subparagraph> <subparagraph id="H63C844385C1E4AAFB064E7372EDE605A"><enum>(B)</enum><text>by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H0FA0EAD19BA8453F85ED8BDD81EAD7D9" display-inline="no-display-inline">
<subparagraph id="HFCA882A9BF9F46EA8624E38B65934320"><enum>(C)</enum><header>Reduction in advance payment for specified reenrolled individuals</header>
<clause id="H097A26BDDE68407EA7FCA5065AF162B5"><enum>(i)</enum><header>In general</header><text>The amount of an advance payment made under subparagraph (A) to reduce the premium payable for a qualified health plan that provides coverage to a specified reenrolled individual for an applicable month shall be an amount equal to the amount that would otherwise be made under such subparagraph reduced by $5 (or such higher amount as the Secretary determines appropriate).</text></clause> <clause id="H6750FD5774D14F499D151666C0BA37DF"><enum>(ii)</enum><header>Definitions</header><text>In this subparagraph:</text>
<subclause id="H89246E4622474BD5860C64D40BFAA066"><enum>(I)</enum><header>Applicable month</header><text display-inline="yes-display-inline">The term <quote>applicable month</quote> means, with respect to a specified reenrolled individual, any month during a plan year beginning on or after January 1, 2027 (or, in the case of an individual reenrolled in a qualified health plan by an Exchange established pursuant to section 1321(c), January 1, 2026) if, prior to the first day of such month, such individual has failed to confirm or update such information as is necessary to redetermine the eligibility of such individual for such plan year pursuant to section 1411(f).</text></subclause> <subclause id="HD349480B5EB04BA68B19043328F4105D"><enum>(II)</enum><header>Specified reenrolled individual</header><text>The term <quote>specified reenrolled individual</quote> means an individual who is reenrolled in a qualified health plan and with respect to whom the advance payment made under subparagraph (A) would, without application of any reduction under this subparagraph, reduce the premium payable for a qualified health plan that provides coverage to such an individual to $0.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="H1611E492D29D4CC5B9FF003E9B615CCA"><enum>(h)</enum><header>Prohibiting coverage of gender transition procedures as an essential health benefit under plans offered by Exchanges</header>
<paragraph id="H81463FCCCED6453C86B46FFD710FDE6A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1302(b)(2) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18022">42 U.S.C. 18022(b)(2)</external-xref>) is amended by adding at the end the following new subparagraph: </text> <quoted-block style="OLC" id="H114D8657924041998DF986B2987E92AD" display-inline="no-display-inline"> <subparagraph id="H459212848E014A73901A972068F2968F"><enum>(C)</enum><header>Gender transition procedures</header><text display-inline="yes-display-inline">For plan years beginning on or after January 1, 2027, the essential health benefits defined pursuant to paragraph (1) may not include items and services furnished for a gender transition procedure.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H3B4674EBFBC046259B8D0A6398C41B83"><enum>(2)</enum><header>Gender transition procedure defined</header><text display-inline="yes-display-inline">Section 1304 of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18024">42 U.S.C. 18024</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="H7ABCF2F04D054D44A524A95AF119AD70" display-inline="no-display-inline"> <subsection id="H950FDCEE7C2A42F1B0D87ADA1B1EA07D"><enum>(f)</enum><header>Gender transition procedure</header> <paragraph id="HDF1FB818AC034023A46730E1D150A832"><enum>(1)</enum><header>In general</header><text>In this title, except as provided in <internal-xref idref="H80C5F1FA3121493CBF5A4D27558A1A62" legis-path="(f)(2)">paragraph (2)</internal-xref>, the term <quote>gender transition procedure</quote> means, with respect to an individual, any of the following when performed for the purpose of intentionally changing the body of such individual (including by disrupting the body’s development, inhibiting its natural functions, or modifying its appearance) to no longer correspond to the individual’s sex:</text>
<subparagraph id="H7785564FC1A049B69C4D38B253F70920" commented="no"><enum>(A)</enum><text>Performing any surgery, including—</text> <clause id="HB9F97DE28BBC460D8BD789302D5C99DB" commented="no"><enum>(i)</enum><text>castration;</text></clause>
<clause id="H342EB68091B94AECA85CCF4D69B03047"><enum>(ii)</enum><text>sterilization;</text></clause> <clause id="HEDAF7A93C8304CB58E608975DCFFA3F4"><enum>(iii)</enum><text>orchiectomy;</text></clause>
<clause id="HDBA8846CA4E9469BB0061A5C341378B2"><enum>(iv)</enum><text>scrotoplasty;</text></clause> <clause id="HD71573BBA1274A15A6F8DFDFA96E3F7C"><enum>(v)</enum><text>vasectomy;</text></clause>
<clause id="H00FD8831FB1C4ED89A9CF5E36DD9DD9A"><enum>(vi)</enum><text>tubal ligation;</text></clause> <clause id="H967BC0ACC7E24DBCBE540615E3BDFA45"><enum>(vii)</enum><text>hysterectomy;</text></clause>
<clause id="HAF6226C0AE434161A67C455340E7D34A"><enum>(viii)</enum><text>oophorectomy;</text></clause> <clause id="H3BCC6AF1BCD7439D9E15BC4BC90925E8"><enum>(ix)</enum><text>ovariectomy;</text></clause>
<clause id="HF35AC44D8EBE47F9B147DA77435C06A2"><enum>(x)</enum><text display-inline="yes-display-inline">metoidioplasty;</text></clause> <clause id="H090B9485784B43C19BFD7CF26D644CFF"><enum>(xi)</enum><text display-inline="yes-display-inline">clitoroplasty;</text></clause>
<clause id="H38120A75FA034BDCAC82D02C321F1E15"><enum>(xii)</enum><text>reconstruction of the fixed part of the urethra with or without a metoidioplasty or a phalloplasty;</text></clause> <clause id="H150972F6DDD349EB9184D21503878162"><enum>(xiii)</enum><text>penectomy;</text></clause>
<clause id="HC154F3F813A44D189E47E35945A6E4BA"><enum>(xiv)</enum><text>phalloplasty;</text></clause> <clause id="HEF97AACB8DDC41B8BA89FE02CD3B6580"><enum>(xv)</enum><text>vaginoplasty;</text></clause>
<clause id="H00C4008EC8BE4256A6017F46194E504C"><enum>(xvi)</enum><text>vaginectomy;</text></clause> <clause id="H423289FE7E37483E8BF6A581B56F7783"><enum>(xvii)</enum><text>vulvoplasty;</text></clause>
<clause id="H1F360AEE3A854B149DD8EC6363DB8645"><enum>(xviii)</enum><text>reduction thyrochondroplasty;</text></clause> <clause id="HDF25E2E469D04B17BF6936A4E932DB1D"><enum>(xix)</enum><text>chondrolaryngoplasty;</text></clause>
<clause id="H62E693B3AA7C45DEB577F43E824C0B66"><enum>(xx)</enum><text>mastectomy; and</text></clause> <clause id="HDAE33D184F284AFF8030A3D387160AEA"><enum>(xxi)</enum><text>any plastic, cosmetic, or aesthetic surgery that feminizes or masculinizes the facial or other body features of an individual.</text></clause></subparagraph>
<subparagraph id="H2479F3F6B0C34DDEB91FC51B00E99F4E"><enum>(B)</enum><text>Any placement of chest implants to create feminine breasts or any placement of erection or testicular prosetheses.</text></subparagraph> <subparagraph id="H8B84DB6A5C8F4BAD83E0211A9FF4ECFC"><enum>(C)</enum><text>Any placement of fat or artificial implants in the gluteal region.</text></subparagraph>
<subparagraph id="HDDCB1AAD525E41F285C65467CF82B9DA"><enum>(D)</enum><text>Administering, prescribing, or dispensing to an individual medications, including—</text> <clause id="H1BC7DB2E920C40158D71FFC9348C0E70"><enum>(i)</enum><text>gonadotropin-releasing hormone (GnRH) analogues or other puberty-blocking drugs to stop or delay normal puberty; and</text></clause>
<clause id="HD54326CF5C8141F2AE0D8E01DCFD5D04"><enum>(ii)</enum><text>testosterone, estrogen, or other androgens to an individual at doses that are supraphysiologic than would normally be produced endogenously in a healthy individual of the same age and sex.</text></clause></subparagraph></paragraph> <paragraph id="H80C5F1FA3121493CBF5A4D27558A1A62"><enum>(2)</enum><header>Exception</header><text><internal-xref idref="HDF1FB818AC034023A46730E1D150A832" legis-path="(f)(1)">Paragraph (1)</internal-xref> shall not apply to the following:</text>
<subparagraph id="H9ABF4C535C3441FFACC28BC72BD89B1A"><enum>(A)</enum><text>Puberty suppression or blocking prescription drugs for the purpose of normalizing puberty for an individual experiencing precocious puberty.</text></subparagraph> <subparagraph id="H12AE4FC2399249C68646328FA34D8CF7"><enum>(B)</enum><text>Medically necessary procedures or treatments to correct for—</text>
<clause id="H9E6562C235C6472D9C59EE7402BD9A97"><enum>(i)</enum><text>a medically verifiable disorder of sex development, including—</text> <subclause id="H37335558D8954A1EAC7F461B65B78C7A"><enum>(I)</enum><text>46,XX chromosomes with virilization;</text></subclause>
<subclause id="H724F8660DCD44853B8CF99602AC93DBE"><enum>(II)</enum><text>46,XY chromosomes with undervirilization; and</text></subclause> <subclause id="HFC8A5AC89FB7443FBB57204A6C52E97C"><enum>(III)</enum><text>both ovarian and testicular tissue;</text></subclause></clause>
<clause id="HE0F42646EA924654BAA4ADD83109922A"><enum>(ii)</enum><text>sex chromosome structure, sex steroid hormone production, or sex hormone action, if determined to be abnormal by a physician through genetic or biochemical testing;</text></clause> <clause id="H99C8C7EFA15D43088FAAF7CC5BCEA85A"><enum>(iii)</enum><text>infection, disease, injury, or disorder caused or exacerbated by a previous procedure described in paragraph (1), or a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the individual in imminent danger of death or impairment of a major bodily function unless the procedure is performed, not including procedures performed for the alleviation of mental distress; or</text></clause>
<clause id="H1EBD4FEA5B7148B6906D2EEB4824C284"><enum>(iv)</enum><text>procedures to restore or reconstruct the body of the individual in order to correspond to the individual’s sex after one or more previous procedures described in <internal-xref idref="HDF1FB818AC034023A46730E1D150A832" legis-path="(f)(1)">paragraph (1)</internal-xref>, which may include the removal of a pseudo phallus or breast augmentation.</text></clause></subparagraph></paragraph> <paragraph id="H8F25EC7A6B7E4368A19D04EBF825AA31"><enum>(3)</enum><header>Sex</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>sex</term> means either male or female, as biologically determined and defined by <internal-xref idref="HD54FE26C88F6439F9C4AC6EACBA26F47" legis-path="(f)(3)(A)">subparagraph (A)</internal-xref> and <internal-xref idref="H4F372D8E0FB048FBB26CFDD096748AA6" legis-path="(f)(3)(B)">subparagraph (B)</internal-xref>.</text>
<subparagraph id="HD54FE26C88F6439F9C4AC6EACBA26F47"><enum>(A)</enum><header>Female</header><text>The term <term>female</term> means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes eggs for fertilization.</text></subparagraph> <subparagraph id="H4F372D8E0FB048FBB26CFDD096748AA6"><enum>(B)</enum><header>Male</header><text>The term <term>male</term> means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes sperm for fertilization.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H5DE2451BDFA9473DACF6DFC17BCF12D0"><enum>(i)</enum><header>Clarifying lawful presence for purposes of the Exchanges</header>
<paragraph id="HA01A690B5FEB45218578B3D64248F07D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1312(f) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18032">42 U.S.C. 18032(f)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="H17C14C599A414B5BBD64CC2D0E487A00" display-inline="no-display-inline"> <paragraph id="H4D6387AF84364C88A63497BB9B44460B"><enum>(4)</enum><header>Clarification of lawful presence</header><text display-inline="yes-display-inline">In this title, the term <quote>alien lawfully present in the United States</quote> does not include an alien granted deferred action under the Deferred Action for Childhood Arrivals process pursuant to the memorandum of the Department of Homeland Security entitled <quote>Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children</quote> issued on June 15, 2012. </text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H73B771D3C01441FBB7252FC0A3895228"><enum>(2)</enum><header>Cost-sharing reductions</header><text>Section 1402(e)(2) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18071">42 U.S.C. 18071(e)(2)</external-xref>) is amended by adding at the end the following new sentence: <quote>For purposes of this section, an individual shall not be treated as lawfully present if the individual is an alien granted deferred action under the Deferred Action for Childhood Arrivals process pursuant to the memorandum of the Department of Homeland Security entitled <quote>Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children</quote> issued on June 15, 2012.</quote>.</text></paragraph> <paragraph id="H7C425B0CD0E7414991B9D7D647488941"><enum>(3)</enum><header>Payment prohibition</header><text>Section 1412(d) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18082">42 U.S.C. 18082(d)</external-xref>) is amended by adding at the end the following new sentence: <quote>For purposes of the previous sentence, an individual shall not be treated as lawfully present if the individual is an alien granted deferred action under the Deferred Action for Childhood Arrivals process pursuant to the memorandum of the Department of Homeland Security entitled <quote>Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children</quote> issued on June 15, 2012.</quote>.</text></paragraph>
<paragraph id="HC9229294B7CF46FE80CE02ADE7670E2C" commented="no"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this section shall apply with respect to plan years beginning on or after January 1, 2026.</text></paragraph></subsection> <subsection id="H2226E3CC97EE47E78C6F638DE27653AD"><enum>(j)</enum><header>Ensuring appropriate application of guaranteed issue requirements in case of nonpayment of past premiums</header> <paragraph id="H46F789C61D524E9EB55D1FBDD8CF91A6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 2702 of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-1">42 U.S.C. 300gg–1</external-xref>) is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="HA91A6835A3E747639D796ADB156F0EA7" display-inline="no-display-inline">
<subsection id="H6B002F9F740D4CD5BACD2ADBDC2F4099"><enum>(e)</enum><header>Nonpayment of past premiums</header>
<paragraph id="H1B66CC2F12EE426F99E5AFC293B3C688"><enum>(1)</enum><header>In general</header><text>A health insurance issuer offering individual health insurance coverage may, to the extent allowed under State law, deny such coverage in the case of an individual who owes any amount for premiums for individual health insurance coverage offered by such issuer (or by a health insurance issuer in the same controlled group (as defined in paragraph (3)) as such issuer) in which such individual was previously enrolled.</text></paragraph> <paragraph id="H509E605BE9A747DDB68095542714442F"><enum>(2)</enum><header>Attribution of initial premium payment to owed amount</header><text display-inline="yes-display-inline">A health insurance issuer offering individual health insurance coverage may, in the case of an individual described in paragraph (1) and to the extent allowed under State law, attribute the initial premium payment for such coverage applicable to such individual to the amount owed by such individual for premiums for individual health insurance coverage offered by such issuer (or by a health insurance issuer in the same controlled group as such issuer) in which such individual was previously enrolled.</text></paragraph>
<paragraph id="H36824CC6F78A45D1A439CBCD64B22DF9"><enum>(3)</enum><header>Controlled group defined</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>controlled group</quote> means a group of of two or more persons that is treated as a single employer under section 52(a), 52(b), 414(m), or 414(o) of the Internal Revenue Code of 1986.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HE49BC87BAE2C4F3EB0C7301BDD401CF1"><enum>(2)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by paragraph (1) shall apply with respect to plan years beginning on or after January 1, 2026.</text></paragraph></subsection></section>
<section id="H377303F2285940F99B7B490C8F294F10" section-type="subsequent-section"><enum>44202.</enum><header>Funding cost sharing reduction payments</header><text display-inline="no-display-inline">Section 1402 of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18071">42 U.S.C. 18071</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H54517620FECA4417987079E1EEE8D40C"> <subsection id="HBCAC7144D42241DDA0C2FBE35752AFE8"><enum>(h)</enum><header>Funding</header> <paragraph id="H6C8AC00B5AA84C8C9011BACFAD2F9B0C"><enum>(1)</enum><header>In general</header><text>There are appropriated out of any monies in the Treasury not otherwise appropriated such sums as may be necessary for purposes of making payments under this section for plan years beginning on or after January 1, 2026.</text></paragraph>
<paragraph id="H6381E12A586E45B5BBD28358578F9162"><enum>(2)</enum><header>Limitation</header>
<subparagraph id="H143DEC88E2CE409795F3D2833A7DE469"><enum>(A)</enum><header>In general</header><text>The amounts appropriated under paragraph (1) may not be used for purposes of making payments under this section for a qualified health plan that provides health benefit coverage that includes coverage of abortion.</text></subparagraph> <subparagraph id="HE38C170B562249BAAE09165640340CB3"><enum>(B)</enum><header>Exception</header><text>Subparagraph (A) shall not apply to payments for a qualified health plan that provides coverage of abortion only if necessary to save the life of the mother or if the pregnancy is a result of an act of rape or incest.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section></part>
<part id="HEB0A074803314F21A7371C8EAA83D670" commented="no"><enum>3</enum><header>Improving Americans’ access to care</header>
<section id="H43E94D403A3A42ACA923800C5C20C335"><enum>44301.</enum><header>Expanding and clarifying the exclusion for orphan drugs under the Drug Price Negotiation Program</header>
<subsection id="HB6A0AEBBF57F48D984CBA60DFDED0B1B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1192(e) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1320f-1">42 U.S.C. 1320f–1(e)</external-xref>) is amended—</text> <paragraph id="HF06932CC11B447FC9A10D2FE32CC7289"><enum>(1)</enum><text>in paragraph (1), in the matter preceding subparagraph (A), by striking <quote>and (3)</quote> and inserting <quote>through (4)</quote>; </text></paragraph>
<paragraph id="HB63B500BE74646DB9F25C8DB00B105B5"><enum>(2)</enum><text>in paragraph (3)(A)—</text> <subparagraph id="H6F29C473D9F34B14A39BBB08F5F83503"><enum>(A)</enum><text>by striking <quote>only one rare disease or condition</quote> and inserting <quote>one or more rare diseases or conditions</quote>; and </text></subparagraph>
<subparagraph id="H28FA4EF3C6844F95975DD065887BE2C8"><enum>(B)</enum><text>by striking <quote>such disease or condition</quote> and inserting <quote>one or more rare diseases or conditions (as such term is defined in section 526(a)(2) of the Federal Food, Drug, and Cosmetic Act)</quote>; and </text></subparagraph></paragraph> <paragraph id="H78BA53FBF54E4D79A9FDCCA2561311E0"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="H79A2BACE1EE441399D85FEB288BB59D8" display-inline="no-display-inline">
<paragraph id="H951B6838A70F4059B49518C249A510F1"><enum>(4)</enum><header>Treatment of former orphan drugs</header><text>In the case of a drug or biological product that, as of the date of the approval or licensure of such drug or biological product, is a drug or biological product described in paragraph (3)(A), paragraph (1)(A)(ii) or (1)(B)(ii) (as applicable) shall apply as if the reference to <quote>the date of such approval</quote> or <quote>the date of such licensure</quote>, respectively, were instead a reference to <quote>the first day after the date of such approval for which such drug is not a drug described in paragraph (3)(A)</quote> or <quote>the first day after the date of such licensure for which such biological product is not a biological product described in paragraph (3)(A)</quote>, respectively. </text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H09DAA66A268A466D9FEA1C326E03D532"><enum>(b)</enum><header>Application</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall apply with respect to initial price applicability years (as defined in section 1191(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1320f">42 U.S.C. 1320f(b)</external-xref>)) beginning on or after January 1, 2028.</text></subsection></section>
<section id="HF69F4461A9F840F5A3E8A79E556353F7"><enum>44302.</enum><header>Streamlined enrollment process for eligible out-of-state providers under Medicaid and CHIP</header>
<subsection id="H7C7AA1378E3E4C5EA254D27A6E386EBC"><enum>(a)</enum><header>In general</header><text>Section 1902(kk) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(kk)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H20F43D5CCF3E4CFA8CAF336CF58A137E"> <paragraph id="H1755CD18D61A4EDFACC2FEF3333671DE"><enum>(10)</enum><header>Streamlined enrollment process for eligible out-of-state providers</header> <subparagraph id="H8194A48823B64DE49C2B5F7A514D0D41"><enum>(A)</enum><header>In general</header><text>The State—</text>
<clause id="HD3C86B9485E8403DB2B1487D2CBC9A3A"><enum>(i)</enum><text>adopts and implements a process to allow an eligible out-of-State provider to enroll under the State plan (or a waiver of such plan) to furnish items and services to, or order, prescribe, refer, or certify eligibility for items and services for, qualifying individuals without the imposition of screening or enrollment requirements by such State that exceed the minimum necessary for such State to provide payment to an eligible out-of-State provider under such State plan (or a waiver of such plan), such as the provider's name and National Provider Identifier (and such other information specified by the Secretary); and</text></clause> <clause id="HF5203D47A46043BB9D962BDF810509D8"><enum>(ii)</enum><text>provides that an eligible out-of-State provider that enrolls as a participating provider in the State plan (or a waiver of such plan) through such process shall be so enrolled for a 5-year period, unless the provider is terminated or excluded from participation during such period.</text></clause></subparagraph>
<subparagraph id="HAEED862357214C919DAA188D78944A40"><enum>(B)</enum><header>Definitions</header><text>In this paragraph:</text> <clause id="H5D8A44C1C1B2484395156997D2051F40"><enum>(i)</enum><header>Eligible out-of-state provider</header><text>The term <term>eligible out-of-State provider</term> means, with respect to a State, a provider—</text>
<subclause id="HBF9294B0739D4689A79938A6D3310E0A"><enum>(I)</enum><text>that is located in any other State;</text></subclause> <subclause id="H6F4F7B888066415499871CAC987815D9"><enum>(II)</enum><text>that—</text>
<item id="H21055F3F3ED345C1AB3C19813C762FBA"><enum>(aa)</enum><text>was determined by the Secretary to have a limited risk of fraud, waste, and abuse for purposes of determining the level of screening to be conducted under section 1866(j)(2), has been so screened under such section 1866(j)(2), and is enrolled in the Medicare program under title XVIII; or</text></item> <item id="H34859B6189774B77ADE0C338A9C63B70"><enum>(bb)</enum><text>was determined by the State agency administering or supervising the administration of the State plan (or a waiver of such plan) of such other State to have a limited risk of fraud, waste, and abuse for purposes of determining the level of screening to be conducted under paragraph (1) of this subsection, has been so screened under such paragraph (1), and is enrolled under such State plan (or a waiver of such plan); and</text></item></subclause>
<subclause id="H733E79B3A04D42A485E8201A7E89F367"><enum>(III)</enum><text>that has not been—</text> <item id="HA97F19B2883D41EEAD52C4CC9CE93BB0"><enum>(aa)</enum><text>excluded from participation in any Federal health care program pursuant to section 1128 or 1128A;</text></item>
<item id="HB57BA041AC4A4FF6B00CE571D60C04BC"><enum>(bb)</enum><text>excluded from participation in the State plan (or a waiver of such plan) pursuant to part 1002 of title 42, Code of Federal Regulations, or State law; or</text></item> <item id="H9734663D35D94B4EA3C041C08E2D0765"><enum>(cc)</enum><text>terminated from participating in a Federal health care program or the State plan (or a waiver of such plan) for a reason described in paragraph (8)(A).</text></item></subclause></clause>
<clause id="H8BF67133874D4A319D874A0F4A5DC0AE"><enum>(ii)</enum><header>Qualifying individual</header><text>The term <term>qualifying individual</term> means an individual under 21 years of age who is enrolled under the State plan (or waiver of such plan).</text></clause> <clause id="H9437B325E1E54E3E971A4EAE803660A7"><enum>(iii)</enum><header>State</header><text>The term <term>State</term> means 1 of the 50 States or the District of Columbia.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF66D44FDEDE24BA7B8C99DA493C1EC72"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H5BF919C1CA1F447DA85167E659739B4D"><enum>(1)</enum><text>Section 1902(a)(77) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(77)</external-xref>) is amended by inserting <quote>enrollment,</quote> after <quote>screening,</quote>.</text></paragraph> <paragraph id="HBA20F6FF73984A71AA635D9C337C6D1A"><enum>(2)</enum><text>The subsection heading for section 1902(kk) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(kk)</external-xref>) is amended by inserting <quote><header-in-text level="subsection" style="OLC">enrollment,</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">screening,</header-in-text></quote>.</text></paragraph>
<paragraph id="H92D89FA565CF4912B956525CE89F599F"><enum>(3)</enum><text>Section 2107(e)(1)(G) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397gg">42 U.S.C. 1397gg(e)(1)(G)</external-xref>) is amended by inserting <quote>enrollment,</quote> after <quote>screening,</quote>.</text></paragraph></subsection> <subsection id="H585A1C3DAC66450BBB81184F18BD940B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply beginning on the date that is 4 years after the date of enactment of this Act.</text></subsection></section>
<section id="H7AE3A1779014400893FA35E14F8DB446" section-type="subsequent-section"><enum>44303.</enum><header>Delaying DSH reductions</header>
<subsection id="HA53901B01B0E4DF884950E14850F5759"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1923(f) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-4">42 U.S.C. 1396r–4(f)</external-xref>) is amended—</text> <paragraph id="H2547B620AACB4E168B3865FF6DE80388"><enum>(1)</enum><text>in paragraph (7)(A)—</text>
<subparagraph id="HE6A6823A19A94A7C9694EFC47B0FB64A"><enum>(A)</enum><text>in clause (i)—</text> <clause id="H1B63C2C2487A4C89A7E8CE02943B9B8F"><enum>(i)</enum><text>in the matter preceding subclause (I), by striking <quote>2026 through 2028</quote> and inserting <quote>2029 through 2031</quote>; and</text></clause>
<clause id="HB90E4FC200D34E5394FFCC0B3AACA482"><enum>(ii)</enum><text>in subclause (II), by striking <quote>or period</quote>; and</text></clause></subparagraph> <subparagraph id="HF1F09847EF4C4C5AB17BA21717FBEE43"><enum>(B)</enum><text>in clause (ii), by striking <quote>2026 through 2028</quote> and inserting <quote>2029 through 2031</quote>; and </text></subparagraph></paragraph>
<paragraph id="H68D9645F5FB14B2490A239B493E5BABE"><enum>(2)</enum><text>in paragraph (8), by striking <quote>2027</quote> and inserting <quote>2031</quote>. </text></paragraph></subsection> <subsection id="H3CD58E7812E54C6FBC392D9B88A0463B"><enum>(b)</enum><header>Tennessee DSH allotment</header><text display-inline="yes-display-inline">Section 1923(f)(6)(A)(vi) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-4">42 U.S.C. 1396r–4(f)(6)(A)(vi)</external-xref>) is amended—</text>
<paragraph id="H6C96B2C1F09E4235A76E73FA2C194CC6"><enum>(1)</enum><text>in the header, by striking <quote><header-in-text level="clause" style="OLC">2025</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">2028</header-in-text></quote>; and</text></paragraph> <paragraph id="H4337FBC1071D45D2B6BAA6103F818299"><enum>(2)</enum><text>by striking <quote>fiscal year 2025</quote> and inserting <quote>fiscal year 2028</quote>.</text></paragraph></subsection></section>
<section id="HA3713C12D88545B9B86C9601F09DD0A0"><enum>44304.</enum><header>Modifying update to the conversion factor under the physician fee schedule under the Medicare program</header><text display-inline="no-display-inline">Section 1848(d) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-4">42 U.S.C. 1395w–4(d)</external-xref>) is amended—</text> <paragraph id="H04ADD4A2DC154DA2BFE119E0DE174991"><enum>(1)</enum><text>in paragraph (1)—</text>
<subparagraph id="H3E43952C69544EB596D8CA83391D277F"><enum>(A)</enum><text>in subparagraph (A)—</text> <clause id="H2CE07900D6A74C26A89DC7DA517AF5FC"><enum>(i)</enum><text>in the first sentence, by striking <quote>and ending with 2025</quote>; and </text></clause>
<clause id="H7B1EA0187E5D4D25B95750196887020D"><enum>(ii)</enum><text>by striking the second sentence; and</text></clause></subparagraph> <subparagraph id="HE6F3FB32F43E4C48A33A47B58739679D"><enum>(B)</enum><text>in subparagraph (D), by striking <quote>(or, beginning with 2026, applicable conversion factor)</quote>; and </text></subparagraph></paragraph>
<paragraph id="HD033C0E889444154A1CFB1A6045F6AA4"><enum>(2)</enum><text>by amending paragraph (20) to read as follows:</text> <quoted-block style="OLC" id="H55848EBE26064F799CEC8D6DEE826F3B" display-inline="no-display-inline"> <paragraph id="HA3A8BC41D30747D896235BACB7D66BE8"><enum>(20)</enum><header>Update for 2026 and subsequent years</header><text display-inline="yes-display-inline">The update to the single conversion factor established in paragraph (1)(A)—</text>
<subparagraph id="H4AC4D2DEFB6F4A5BB879526C60B95BB8"><enum>(A)</enum><text display-inline="yes-display-inline">for 2026 is 75 percent of the Secretary’s estimate of the percentage increase in the MEI (as defined in section 1842(i)(3)) for the year; and</text></subparagraph> <subparagraph id="H210638FBE4434A6088F5E79E5C8F7101"><enum>(B)</enum><text>for 2027 and each subsequent year is 10 percent of the Secretary’s estimate of the percentage increase in the MEI for the year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H2C10FB5999574C54B9535303C1621989"><enum>44305.</enum><header>Modernizing and Ensuring PBM Accountability</header>
<subsection id="H0CE16EE8411246849319D765EA6EF3DC"><enum>(a)</enum><header>In general</header>
<paragraph id="H55756362A59148379834D71CAD3B8F76"><enum>(1)</enum><header>Prescription drug plans</header><text>Section 1860D–12 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-112">42 U.S.C. 1395w–112</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H6229C2BFC1F940E092DC8090C1372B1B"> <subsection id="H91A8DFF355DA427FBEA5BD05CE1D237D"><enum>(h)</enum><header>Requirements relating to pharmacy benefit managers</header><text>For plan years beginning on or after January 1, 2028:</text>
<paragraph id="H909326984191478D877DC79E757C17D1"><enum>(1)</enum><header>Agreements with pharmacy benefit managers</header><text>Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall provide that any pharmacy benefit manager acting on behalf of such sponsor has a written agreement with the PDP sponsor under which the pharmacy benefit manager, and any affiliates of such pharmacy benefit manager, as applicable, agree to meet the following requirements:</text> <subparagraph id="HD010CE744CAC4125BBD286124FF6574A"><enum>(A)</enum><header>No income other than bona fide service fees</header> <clause id="H6F691CA752C04BC1859959F75D912FB5"><enum>(i)</enum><header>In general</header><text>The pharmacy benefit manager and any affiliate of such pharmacy benefit manager shall not derive any remuneration with respect to any services provided on behalf of any entity or individual, in connection with the utilization of covered part D drugs, from any such entity or individual other than bona fide service fees, subject to clauses (ii) and (iii).</text></clause>
<clause id="HF8E55E099BD44936BF35734BF6BB81CE"><enum>(ii)</enum><header>Incentive payments</header><text>For the purposes of this subsection, an incentive payment (as determined by the Secretary) paid by a PDP sponsor to a pharmacy benefit manager (or an affiliate of such pharmacy benefit manager) that is performing services on behalf of such sponsor shall be deemed a <quote>bona fide service fee</quote> (even if such payment does not otherwise meet the definition of such term under paragraph (7)(B)) if such payment is a flat dollar amount, is consistent with fair market value (as specified by the Secretary), is related to services actually performed by the pharmacy benefit manager or affiliate of such pharmacy benefit manager, on behalf of the PDP sponsor making such payment, in connection with the utilization of covered part D drugs, and meets additional requirements, if any, as determined appropriate by the Secretary.</text></clause> <clause id="HBEBEF7C8653244FBA97FC1826214CA5C"><enum>(iii)</enum><header>Clarification on rebates and discounts used to lower costs for covered part d drugs</header><text>Rebates, discounts, and other price concessions received by a pharmacy benefit manager or an affiliate of a pharmacy benefit manager from manufacturers, even if such price concessions are calculated as a percentage of a drug’s price, shall not be considered a violation of the requirements of clause (i) if they are fully passed through to a PDP sponsor and are compliant with all regulatory and subregulatory requirements related to direct and indirect remuneration for manufacturer rebates under this part, including in cases where a PDP sponsor is acting as a pharmacy benefit manager on behalf of a prescription drug plan offered by such PDP sponsor.</text></clause>
<clause id="HB96D59A8CE1F40C4907CFE1DF04CA473"><enum>(iv)</enum><header>Evaluation of remuneration arrangements</header><text>Components of subsets of remuneration arrangements (such as fees or other forms of compensation paid to or retained by the pharmacy benefit manager or affiliate of such pharmacy benefit manager), as determined appropriate by the Secretary, between pharmacy benefit managers or affiliates of such pharmacy benefit managers, as applicable, and other entities involved in the dispensing or utilization of covered part D drugs (including PDP sponsors, manufacturers, and pharmacies) shall be subject to review by the Secretary, in consultation with the Office of the Inspector General of the Department of Health and Human Services, as determined appropriate by the Secretary. The Secretary, in consultation with the Office of the Inspector General, shall review whether remuneration under such arrangements is consistent with fair market value (as specified by the Secretary) through reviews and assessments of such remuneration, as determined appropriate.</text></clause> <clause id="HCD5CDEC9C9F042B4BBC0D5B88851B3FC"><enum>(v)</enum><header>Disgorgement</header><text>The pharmacy benefit manager shall disgorge any remuneration paid to such pharmacy benefit manager or an affiliate of such pharmacy benefit manager in violation of this subparagraph to the PDP sponsor.</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HBDCBAD5EBA6C40EC9F06605320C0C5FF"><enum>(vi)</enum><header>Additional requirements</header><text>The pharmacy benefit manager shall—</text> <subclause commented="no" display-inline="no-display-inline" id="H8BCBC9C269A448A3A0EB088A47E801F4"><enum>(I)</enum><text display-inline="yes-display-inline">enter into a written agreement with any affiliate of such pharmacy benefit manager, under which the affiliate shall identify and disgorge any remuneration described in clause (v) to the pharmacy benefit manager; and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HFF679C2838FD4859BEF4B4227DE9A1FE"><enum>(II)</enum><text display-inline="yes-display-inline">attest, subject to any requirements determined appropriate by the Secretary, that the pharmacy benefit manager has entered into a written agreement described in subclause (I) with any relevant affiliate of the pharmacy benefit manager.</text></subclause></clause></subparagraph> <subparagraph id="HBC681EBE9E0F455898406AE921750837"><enum>(B)</enum><header>Transparency regarding guarantees and cost performance evaluations</header><text>The pharmacy benefit manager shall—</text>
<clause id="H750A0A8A2EC845EBA66F7BEB5AB29E2E"><enum>(i)</enum><text>define, interpret, and apply, in a fully transparent and consistent manner for purposes of calculating or otherwise evaluating pharmacy benefit manager performance against pricing guarantees or similar cost performance measurements related to rebates, discounts, price concessions, or net costs, terms such as—</text> <subclause id="H8770DB3093484B8DA6189CB5308743E0"><enum>(I)</enum><text><term>generic drug</term>, in a manner consistent with the definition of the term under section 423.4 of title 42, Code of Federal Regulations;</text></subclause>
<subclause id="H5DA225908D0A4E2FBBC111EB89D79770"><enum>(II)</enum><text><term>brand name drug</term>, in a manner consistent with the definition of the term under section 423.4 of title 42, Code of Federal Regulations;</text></subclause> <subclause id="H2E6414D03DE244B8ABCE713C5CFF6797"><enum>(III)</enum><text><term>specialty drug</term>;</text></subclause>
<subclause id="H6A0406F0F88A4C5BAD5BADC3CFF8EDF7"><enum>(IV)</enum><text><term>rebate</term>; and</text></subclause> <subclause id="HDE3C39EC3CC3407199F3C9A4EA9273A5"><enum>(V)</enum><text><term>discount</term>;</text></subclause></clause>
<clause id="H9CDDF2877EA643C187B08B496371BF29"><enum>(ii)</enum><text>identify any drugs, claims, or price concessions excluded from any pricing guarantee or other cost performance measure in a clear and consistent manner; and</text></clause> <clause id="H663DB7D76D0C4111ACEACBFBF86187DD"><enum>(iii)</enum><text>where a pricing guarantee or other cost performance measure is based on a pricing benchmark other than the wholesale acquisition cost (as defined in section 1847A(c)(6)(B)) of a drug, calculate and provide a wholesale acquisition cost-based equivalent to the pricing guarantee or other cost performance measure.</text></clause></subparagraph>
<subparagraph id="H3EE68AB7AEFF4552A8D14EC4C072FD42"><enum>(C)</enum><header>Provision of information</header>
<clause id="H8CB3430A993E47B98D80BC817B3088F4"><enum>(i)</enum><header>In general</header><text>Not later than July 1 of each year, beginning in 2028, the pharmacy benefit manager shall submit to the PDP sponsor, and to the Secretary, a report, in accordance with this subparagraph, and shall make such report available to such sponsor at no cost to such sponsor in a format specified by the Secretary under paragraph (5). Each such report shall include, with respect to such PDP sponsor and each plan offered by such sponsor, the following information with respect to the previous plan year:</text> <subclause id="HA9242CA883064B6FB21B4D712341D4BE"><enum>(I)</enum><text>A list of all drugs covered by the plan that were dispensed including, with respect to each such drug—</text>
<item id="H5587F701CF144CBF978D8E3D395102E2"><enum>(aa)</enum><text>the brand name, generic or non-proprietary name, and National Drug Code;</text></item> <item id="HDB263B55F348469589C6E4E765B31954"><enum>(bb)</enum><text>the number of plan enrollees for whom the drug was dispensed, the total number of prescription claims for the drug (including original prescriptions and refills, counted as separate claims), and the total number of dosage units of the drug dispensed;</text></item>
<item id="H55FA2F599B0E4AAEA19E5E8922151CBD"><enum>(cc)</enum><text>the number of prescription claims described in item (bb) by each type of dispensing channel through which the drug was dispensed, including retail, mail order, specialty pharmacy, long term care pharmacy, home infusion pharmacy, or other types of pharmacies or providers;</text></item> <item id="HD2BD39BB616046019362E32E69D2265C"><enum>(dd)</enum><text>the average wholesale acquisition cost, listed as cost per day’s supply, cost per dosage unit, and cost per typical course of treatment (as applicable);</text></item>
<item id="HCF61D68DBC5B44A8BD1CED476D55F0FC"><enum>(ee)</enum><text>the average wholesale price for the drug, listed as price per day’s supply, price per dosage unit, and price per typical course of treatment (as applicable);</text></item> <item id="H95F5F6BAB5A440BAA350195CBA6117BA"><enum>(ff)</enum><text>the total out-of-pocket spending by plan enrollees on such drug after application of any benefits under the plan, including plan enrollee spending through copayments, coinsurance, and deductibles;</text></item>
<item id="H800DB73218D3496FBCCECF021B4490CF"><enum>(gg)</enum><text>total rebates paid by the manufacturer on the drug as reported under the Detailed DIR Report (or any successor report) submitted by such sponsor to the Centers for Medicare & Medicaid Services;</text></item> <item id="H8BD8EB05F7CC41C59EF8351506D6DDA7"><enum>(hh)</enum><text>all other direct or indirect remuneration on the drug as reported under the Detailed DIR Report (or any successor report) submitted by such sponsor to the Centers for Medicare & Medicaid Services;</text></item>
<item id="H1940CB6A0F2B4BA48E9175B3903F6188"><enum>(ii)</enum><text>the average pharmacy reimbursement amount paid by the plan for the drug in the aggregate and disaggregated by dispensing channel identified in item (cc);</text></item> <item id="H72B4F311CFAA46FF885A2B2904D0896E"><enum>(jj)</enum><text>the average National Average Drug Acquisition Cost (NADAC); and</text></item>
<item id="H99DA99C591A649289360288367E44177"><enum>(kk)</enum><text>total manufacturer-derived revenue, inclusive of bona fide service fees, attributable to the drug and retained by the pharmacy benefit manager and any affiliate of such pharmacy benefit manager.</text></item></subclause> <subclause id="HE0D9694824C64AABB2055D3124F123E8"><enum>(II)</enum><text>In the case of a pharmacy benefit manager that has an affiliate that is a retail, mail order, or specialty pharmacy, with respect to drugs covered by such plan that were dispensed, the following information:</text>
<item id="H064A71726BBA40359AF2AAD9F65489D3"><enum>(aa)</enum><text>The percentage of total prescriptions that were dispensed by pharmacies that are an affiliate of the pharmacy benefit manager for each drug.</text></item> <item id="HF55F1B00FD374DF69CDEE64C6B7C2643"><enum>(bb)</enum><text>The interquartile range of the total combined costs paid by the plan and plan enrollees, per dosage unit, per course of treatment, per 30-day supply, and per 90-day supply for each drug dispensed by pharmacies that are not an affiliate of the pharmacy benefit manager and that are included in the pharmacy network of such plan.</text></item>
<item id="H253F170025FB4C16BDE422D92CA87626"><enum>(cc)</enum><text>The interquartile range of the total combined costs paid by the plan and plan enrollees, per dosage unit, per course of treatment, per 30-day supply, and per 90-day supply for each drug dispensed by pharmacies that are an affiliate of the pharmacy benefit manager and that are included in the pharmacy network of such plan.</text></item> <item id="HAA85EEF3493B4BC3BB9032979DF1C43E"><enum>(dd)</enum><text>The lowest total combined cost paid by the plan and plan enrollees, per dosage unit, per course of treatment, per 30-day supply, and per 90-day supply, for each drug that is available from any pharmacy included in the pharmacy network of such plan.</text></item>
<item id="HCBF298443F9D481BB6D14BF71E2CC929"><enum>(ee)</enum><text>The difference between the average acquisition cost of the affiliate, such as a pharmacy or other entity that acquires prescription drugs, that initially acquires the drug and the amount reported under subclause (I)(jj) for each drug.</text></item> <item id="H64295532A3E3496398763F84B85ED10D"><enum>(ff)</enum><text>A list inclusive of the brand name, generic or non-proprietary name, and National Drug Code of covered part D drugs subject to an agreement with a covered entity under section 340B of the Public Health Service Act for which the pharmacy benefit manager or an affiliate of the pharmacy benefit manager had a contract or other arrangement with such a covered entity in the service area of such plan.</text></item></subclause>
<subclause id="H4E5258A0EFE7443C8BBA30DC6AC44FAE"><enum>(III)</enum><text>Where a drug approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act (referred to in this subclause as the <quote>listed drug</quote>) is covered by the plan, the following information:</text> <item id="H211E85951C214E3A8219CFF2EC572BF4"><enum>(aa)</enum><text>A list of currently marketed generic drugs approved under section 505(j) of the Federal Food, Drug, and Cosmetic Act pursuant to an application that references such listed drug that are not covered by the plan, are covered on the same formulary tier or a formulary tier typically associated with higher cost-sharing than the listed drug, or are subject to utilization management that the listed drug is not subject to.</text></item>
<item id="H35DE547C64D54A51B4B8D21D9C3C29B3"><enum>(bb)</enum><text>The estimated average beneficiary cost-sharing under the plan for a 30-day supply of the listed drug.</text></item> <item id="HEE2D15E4DE804C4595BE14FB9445021E"><enum>(cc)</enum><text>Where a generic drug listed under item (aa) is on a formulary tier typically associated with higher cost-sharing than the listed drug, the estimated average cost-sharing that a beneficiary would have paid for a 30-day supply of each of the generic drugs described in item (aa), had the plan provided coverage for such drugs on the same formulary tier as the listed drug.</text></item>
<item id="H4D6FB1C558F64655A7F621EA6027143F"><enum>(dd)</enum><text>A written justification for providing more favorable coverage of the listed drug than the generic drugs described in item (aa).</text></item> <item id="H0526BAAD8D55461FA7BEE14B3F7C875C"><enum>(ee)</enum><text>The number of currently marketed generic drugs approved under section 505(j) of the Federal Food, Drug, and Cosmetic Act pursuant to an application that references such listed drug.</text></item></subclause>
<subclause id="H04AC95B5B2794EF8AA1924A862BBF12C"><enum>(IV)</enum><text>Where a reference product (as defined in section 351(i) of the Public Health Service Act) is covered by the plan, the following information:</text> <item id="HD34C4296AF194E1D9C367B479AE41FFD"><enum>(aa)</enum><text>A list of currently marketed biosimilar biological products licensed under section 351(k) of the Public Health Service Act pursuant to an application that refers to such reference product that are not covered by the plan, are covered on the same formulary tier or a formulary tier typically associated with higher cost-sharing than the reference product, or are subject to utilization management that the reference product is not subject to.</text></item>
<item id="H93E81F098E234A5D87E0371E26025668"><enum>(bb)</enum><text>The estimated average beneficiary cost-sharing under the plan for a 30-day supply of the reference product.</text></item> <item id="H4D362734048F4453B73DF5226EEB7390"><enum>(cc)</enum><text>Where a biosimilar biological product listed under item (aa) is on a formulary tier typically associated with higher cost-sharing than the reference product, the estimated average cost-sharing that a beneficiary would have paid for a 30-day supply of each of the biosimilar biological products described in item (aa), had the plan provided coverage for such products on the same formulary tier as the reference product.</text></item>
<item id="H080BD7115163432CBF6EF70BDDF423D8"><enum>(dd)</enum><text>A written justification for providing more favorable coverage of the reference product than the biosimilar biological product described in item (aa).</text></item> <item id="H6C223FA5EB2C4A019ACEF3E586A93B46"><enum>(ee)</enum><text>The number of currently marketed biosimilar biological products licensed under section 351(k) of the Public Health Service Act, pursuant to an application that refers to such reference product.</text></item></subclause>
<subclause id="H07D280BF05264BE391914DF9E4D17770"><enum>(V)</enum><text>Total gross spending on covered part D drugs by the plan, not net of rebates, fees, discounts, or other direct or indirect remuneration.</text></subclause> <subclause id="H4AEC1B7BDB5F47AFAA112C8F3F67206A"><enum>(VI)</enum><text>The total amount retained by the pharmacy benefit manager or an affiliate of such pharmacy benefit manager in revenue related to utilization of covered part D drugs under that plan, inclusive of bona fide service fees.</text></subclause>
<subclause id="H86DD38E4EEC64680805EA5242AF838AD"><enum>(VII)</enum><text>The total spending on covered part D drugs net of rebates, fees, discounts, or other direct and indirect remuneration by the plan.</text></subclause> <subclause id="H9872555ED98C43E69DF97B970C696C1B"><enum>(VIII)</enum><text>An explanation of any benefit design parameters under such plan that encourage plan enrollees to fill prescriptions at pharmacies that are an affiliate of such pharmacy benefit manager, such as mail and specialty home delivery programs, and retail and mail auto-refill programs.</text></subclause>
<subclause id="HC36F6F90C8054605AB969E8AAAFCA230"><enum>(IX)</enum><text>The following information:</text> <item commented="no" display-inline="no-display-inline" id="HAF54461CEAF84DA6B30DB8436FF9F89A"><enum>(aa)</enum><text display-inline="yes-display-inline">A list of all brokers, consultants, advisors, and auditors that receive compensation from the pharmacy benefit manager or an affiliate of such pharmacy benefit manager for referrals, consulting, auditing, or other services offered to PDP sponsors related to pharmacy benefit management services.</text></item>
<item commented="no" display-inline="no-display-inline" id="H17835557D56F481F96798A3ACFB65514"><enum>(bb)</enum><text>The amount of compensation provided by such pharmacy benefit manager or affiliate to each such broker, consultant, advisor, and auditor.</text></item> <item commented="no" display-inline="no-display-inline" id="H82E2F8AECC21408C97F5AE272725A57C"><enum>(cc)</enum><text display-inline="yes-display-inline">The methodology for calculating the amount of compensation provided by such pharmacy benefit manager or affiliate, for each such broker, consultant, advisor, and auditor.</text></item></subclause>
<subclause id="H764D240430024B20895BB60E34164C2D"><enum>(X)</enum><text>A list of all affiliates of the pharmacy benefit manager.</text></subclause> <subclause id="H6C37D0B34BE642F286E0DF31681085D5"><enum>(XI)</enum><text>A summary document submitted in a standardized template developed by the Secretary that includes such information described in subclauses (I) through (X).</text></subclause></clause>
<clause id="H30E366A94081472999F601EA7DFC267F"><enum>(ii)</enum><header>Written explanation of contracts or agreements with drug manufacturers</header>
<subclause id="H4601034C250447608125FF13F388B0D2"><enum>(I)</enum><header>In general</header><text>The pharmacy benefit manager shall, not later than 30 days after the finalization of any contract or agreement between such pharmacy benefit manager or an affiliate of such pharmacy benefit manager and a drug manufacturer (or subsidiary, agent, or entity affiliated with such drug manufacturer) that makes rebates, discounts, payments, or other financial incentives related to one or more covered part D drugs or other prescription drugs, as applicable, of the manufacturer directly or indirectly contingent upon coverage, formulary placement, or utilization management conditions on any other covered part D drugs or other prescription drugs, as applicable, submit to the PDP sponsor a written explanation of such contract or agreement.</text></subclause> <subclause id="H12C96B5C887645D3BFEFC2EED8821531"><enum>(II)</enum><header>Requirements</header><text>A written explanation under subclause (I) shall—</text>
<item id="HA983C2E723BE4728A236312E73D6732C"><enum>(aa)</enum><text>include the manufacturer subject to the contract or agreement, all covered part D drugs and other prescription drugs, as applicable, subject to the contract or agreement and the manufacturers of such drugs, and a high-level description of the terms of such contract or agreement and how such terms apply to such drugs; and</text></item> <item id="HAD875D31A74442DAA083E5ED2688CEF6"><enum>(bb)</enum><text>be certified by the Chief Executive Officer, Chief Financial Officer, or General Counsel of such pharmacy benefit manager, or affiliate of such pharmacy benefit manager, as applicable, or an individual delegated with the authority to sign on behalf of one of these officers, who reports directly to the officer.</text></item></subclause>
<subclause id="H1B90B974AC96413C805142CF05802C1C"><enum>(III)</enum><header>Definition of other prescription drugs</header><text>For purposes of this clause, the term <term>other prescription drugs</term> means prescription drugs covered as supplemental benefits under this part or prescription drugs paid outside of this part. </text></subclause></clause></subparagraph> <subparagraph id="H91CE974A6DEE47D8B119931440E43811"><enum>(D)</enum><header>Audit rights</header> <clause id="H2F7A865B137B4AE09220FF2AFC80CFDB"><enum>(i)</enum><header>In general</header><text>Not less than once a year, at the request of the PDP sponsor, the pharmacy benefit manager shall allow for an audit of the pharmacy benefit manager to ensure compliance with all terms and conditions under the written agreement described in this paragraph and the accuracy of information reported under subparagraph (C).</text></clause>
<clause id="HFB0129C17B134F57870B55B73A2BA10D"><enum>(ii)</enum><header>Auditor</header><text>The PDP sponsor shall have the right to select an auditor. The pharmacy benefit manager shall not impose any limitations on the selection of such auditor.</text></clause> <clause id="HD03BABD5E13D48F0B48D1F605D341671"><enum>(iii)</enum><header>Provision of information</header><text>The pharmacy benefit manager shall make available to such auditor all records, data, contracts, and other information necessary to confirm the accuracy of information provided under subparagraph (C), subject to reasonable restrictions on how such information must be reported to prevent redisclosure of such information.</text></clause>
<clause id="H76070E0B19074F1B970B92F4CB6ECF9D"><enum>(iv)</enum><header>Timing</header><text>The pharmacy benefit manager must provide information under clause (iii) and other information, data, and records relevant to the audit to such auditor within 6 months of the initiation of the audit and respond to requests for additional information from such auditor within 30 days after the request for additional information.</text></clause> <clause id="H16F873E8BF7F473188CBDB437A3742A8"><enum>(v)</enum><header>Information from affiliates</header><text>The pharmacy benefit manager shall be responsible for providing to such auditor information required to be reported under subparagraph (C) or under clause (iii) of this subparagraph that is owned or held by an affiliate of such pharmacy benefit manager.</text></clause></subparagraph></paragraph>
<paragraph id="H27DA54563EA54769AEB05B1DB345F4FF"><enum>(2)</enum><header>Enforcement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7878A61F2BBD40969BB4A404832F4298"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Each PDP sponsor shall—</text> <clause id="HF385ABCB38814ABB8211474B4DD0CDC9"><enum>(i)</enum><text>disgorge to the Secretary any amounts disgorged to the PDP sponsor by a pharmacy benefit manager under paragraph (1)(A)(v);</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HEC8AFDDABFBF47DB882A3B41F69B8723"><enum>(ii)</enum><text display-inline="yes-display-inline">require, in a written agreement with any pharmacy benefit manager acting on behalf of such sponsor or affiliate of such pharmacy benefit manager, that such pharmacy benefit manager or affiliate reimburse the PDP sponsor for any civil money penalty imposed on the PDP sponsor as a result of the failure of the pharmacy benefit manager or affiliate to meet the requirements of paragraph (1) that are applicable to the pharmacy benefit manager or affiliate under the agreement; and</text></clause> <clause commented="no" display-inline="no-display-inline" id="H4E425F78D5B542CBBA0BF1159280A5C7"><enum>(iii)</enum><text>require, in a written agreement with any such pharmacy benefit manager acting on behalf of such sponsor or affiliate of such pharmacy benefit manager, that such pharmacy benefit manager or affiliate be subject to punitive remedies for breach of contract for failure to comply with the requirements applicable under paragraph (1).</text></clause></subparagraph>
<subparagraph id="H7197812E07FB4FCB82D1A565E19EFDB7"><enum>(B)</enum><header>Reporting of alleged violations</header><text>The Secretary shall make available and maintain a mechanism for manufacturers, PDP sponsors, pharmacies, and other entities that have contractual relationships with pharmacy benefit managers or affiliates of such pharmacy benefit managers to report, on a confidential basis, alleged violations of paragraph (1)(A) or subparagraph (C).</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HED755D2613FC46EB8CACA9CDFC31D3BC"><enum>(C)</enum><header>Anti-retaliation and anti-coercion</header><text>Consistent with applicable Federal or State law, a PDP sponsor shall not—</text>
<clause commented="no" display-inline="no-display-inline" id="H89F2D5C434C841C0BB10EBC8311C8D03"><enum>(i)</enum><text display-inline="yes-display-inline">retaliate against an individual or entity for reporting an alleged violation under subparagraph (B); or</text></clause> <clause commented="no" display-inline="no-display-inline" id="HD78562E9954F4ED59623C98ACAA81F7C"><enum>(ii)</enum><text display-inline="yes-display-inline">coerce, intimidate, threaten, or interfere with the ability of an individual or entity to report any such alleged violations.</text></clause></subparagraph></paragraph>
<paragraph id="HEBF77EF46EA7441E9DADD1351CC5060D"><enum>(3)</enum><header>Certification of compliance</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD5FE80E532274B6394FFE10FD080FE7C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>Each PDP sponsor shall furnish to the Secretary (at a time and in a manner specified by the Secretary) an annual certification of compliance with this subsection, as well as such information as the Secretary determines necessary to carry out this subsection.</text></subparagraph> <subparagraph id="H376D50B8620C43D78781F7C6ECFF9B11"><enum>(B)</enum><header>Implementation</header><text>The Secretary may implement this paragraph by program instruction or otherwise.</text></subparagraph></paragraph>
<paragraph id="HCAB4A55BB8624A1EAFF5CB664EB66B7D"><enum>(4)</enum><header>Rule of construction</header><text>Nothing in this subsection shall be construed as—</text> <subparagraph id="HB0452B4FDA3A46B29E2E07180DA0D958"><enum>(A)</enum><text>prohibiting flat dispensing fees or reimbursement or payment for ingredient costs (including customary, industry-standard discounts directly related to drug acquisition that are retained by pharmacies or wholesalers) to entities that acquire or dispense prescription drugs; or</text></subparagraph>
<subparagraph id="HCCDF29927F414148B608C589C58E15CD"><enum>(B)</enum><text>modifying regulatory requirements or sub-regulatory program instruction or guidance related to pharmacy payment, reimbursement, or dispensing fees.</text></subparagraph></paragraph> <paragraph id="H0CB331FF52C24D158D0758DF3CDABB18"><enum>(5)</enum><header>Standard formats</header> <subparagraph commented="no" display-inline="no-display-inline" id="H955612AE9346477D977866D837664DD1"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>Not later than June 1, 2027, the Secretary shall specify standard, machine-readable formats for pharmacy benefit managers to submit annual reports required under paragraph (1)(C)(i).</text></subparagraph>
<subparagraph id="HC43A5F7FB7D14732A44640141F6360F0"><enum>(B)</enum><header>Implementation</header><text>The Secretary may implement this paragraph by program instruction or otherwise.</text></subparagraph></paragraph> <paragraph id="HF2B7614CD27F448C8D2ECDB988EE6B5E"><enum>(6)</enum><header>Confidentiality</header> <subparagraph id="HD0E3A6FBADB149A2BA589B90403BE611"><enum>(A)</enum><header>In general</header><text>Information disclosed by a pharmacy benefit manager, an affiliate of a pharmacy benefit manager, a PDP sponsor, or a pharmacy under this subsection that is not otherwise publicly available or available for purchase shall not be disclosed by the Secretary or a PDP sponsor receiving the information, except that the Secretary may disclose the information for the following purposes:</text>
<clause id="H5189D8B3958247C193A9E408799DC4A2"><enum>(i)</enum><text>As the Secretary determines necessary to carry out this part.</text></clause> <clause id="HA0FD21E1E58548E8A2DCCD8E42177934"><enum>(ii)</enum><text>To permit the Comptroller General to review the information provided.</text></clause>
<clause id="H71D842F34F2D4B0D871C6D5C75414153"><enum>(iii)</enum><text>To permit the Executive Director of the Medicare Payment Advisory Commission to review the information provided.</text></clause> <clause id="HEA9D5D6C59C24B97BFDBB4A55BB60EC0"><enum>(iv)</enum><text>To the Attorney General for the purposes of conducting oversight and enforcement under this title.</text></clause>
<clause id="HDB8DFE68B85F48DFA54BF4CF9F9B4E3F"><enum>(v)</enum><text>To the Inspector General of the Department of Health and Human Services in accordance with its authorities under the Inspector General Act of 1978 (section 406 of title 5, United States Code), and other applicable statutes.</text></clause></subparagraph> <subparagraph id="HBFA2955230D14CF9BFB69FBAC54749FC" commented="no"><enum>(B)</enum><header>Restriction on use of information</header><text>The Secretary, the Comptroller General, and the Executive Director of the Medicare Payment Advisory Commission shall not report on or disclose information disclosed pursuant to subparagraph (A) to the public in a manner that would identify—</text>
<clause commented="no" display-inline="no-display-inline" id="HD378E4AD14744589A5DE839F3562E8C0"><enum>(i)</enum><text display-inline="yes-display-inline">a specific pharmacy benefit manager, affiliate, pharmacy, manufacturer, wholesaler, PDP sponsor, or plan; or</text></clause> <clause commented="no" display-inline="no-display-inline" id="H31835AA402C74A99BE58F13C795468B9"><enum>(ii)</enum><text display-inline="yes-display-inline">contract prices, rebates, discounts, or other remuneration for specific drugs in a manner that may allow the identification of specific contracting parties or of such specific drugs.</text></clause></subparagraph></paragraph>
<paragraph id="H4AF701F3A1384FBC8AE7A1492A9C62C1"><enum>(7)</enum><header>Definitions</header><text>For purposes of this subsection:</text> <subparagraph id="HFCB96E140AF949698E560F4F3702A88B"><enum>(A)</enum><header>Affiliate</header><text>The term <term>affiliate</term> means, with respect to any pharmacy benefit manager or PDP sponsor, any entity that, directly or indirectly—</text>
<clause commented="no" display-inline="no-display-inline" id="HCAC45E2FF01F43FCA30E96FBE5872642"><enum>(i)</enum><text display-inline="yes-display-inline">owns or is owned by, controls or is controlled by, or is otherwise related in any ownership structure to such pharmacy benefit manager or PDP sponsor; or</text></clause> <clause commented="no" display-inline="no-display-inline" id="H1C1B0EE664F848C6B6E4C1CCB3C60F0E"><enum>(ii)</enum><text display-inline="yes-display-inline">acts as a contractor, principal, or agent to such pharmacy benefit manager or PDP sponsor, insofar as such contractor, principal, or agent performs any of the functions described under subparagraph (C).</text></clause></subparagraph>
<subparagraph id="H762B76FEFEE54D3FA6F54246E3736AD4"><enum>(B)</enum><header>Bona fide service fee</header><text>The term <term>bona fide service fee</term> means a fee that is reflective of the fair market value (as specified by the Secretary, through notice and comment rulemaking) for a bona fide, itemized service actually performed on behalf of an entity, that the entity would otherwise perform (or contract for) in the absence of the service arrangement and that is not passed on in whole or in part to a client or customer, whether or not the entity takes title to the drug. Such fee must be a flat dollar amount and shall not be directly or indirectly based on, or contingent upon—</text> <clause id="H8A398008236840FA899018789B1F4529"><enum>(i)</enum><text>drug price, such as wholesale acquisition cost or drug benchmark price (such as average wholesale price);</text></clause>
<clause id="H4C6E9660073448BD9BB825531867C137"><enum>(ii)</enum><text>the amount of discounts, rebates, fees, or other direct or indirect remuneration with respect to covered part D drugs dispensed to enrollees in a prescription drug plan, except as permitted pursuant to paragraph (1)(A)(ii);</text></clause> <clause id="H87151D80F5104F08BCF1D8C3962D1DBD"><enum>(iii)</enum><text>coverage or formulary placement decisions or the volume or value of any referrals or business generated between the parties to the arrangement; or</text></clause>
<clause id="HB3DD9BA478444998BC313E9EDB41C0EA"><enum>(iv)</enum><text>any other amounts or methodologies prohibited by the Secretary.</text></clause></subparagraph> <subparagraph id="H2F58A49C3B71448ABEA1BD5490173D84"><enum>(C)</enum><header>Pharmacy benefit manager</header><text>The term <term>pharmacy benefit manager</term> means any person or entity that, either directly or through an intermediary, acts as a price negotiator or group purchaser on behalf of a PDP sponsor or prescription drug plan, or manages the prescription drug benefits provided by such sponsor or plan, including the processing and payment of claims for prescription drugs, the performance of drug utilization review, the processing of drug prior authorization requests, the adjudication of appeals or grievances related to the prescription drug benefit, contracting with network pharmacies, controlling the cost of covered part D drugs, or the provision of related services. Such term includes any person or entity that carries out one or more of the activities described in the preceding sentence, irrespective of whether such person or entity calls itself a <quote>pharmacy benefit manager</quote>.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HD51019D1D2564E3CB2EC732EECED940B"><enum>(2)</enum><header>MA–PD plans</header><text>Section 1857(f)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-27">42 U.S.C. 1395w–27(f)(3)</external-xref>) is amended by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H419E7AF7FB4442768EE5406776E6D08B"> <subparagraph id="H667E14E5A5BE493CBC2F795AF0E61AC9"><enum>(F)</enum><header>Requirements relating to pharmacy benefit managers</header><text>For plan years beginning on or after January 1, 2028, section 1860D–12(h).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HED2F1B9653744B4B88F0F8DB1CCA218F"><enum>(3)</enum><header>Nonapplication of Paperwork Reduction Act</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/44/35">Chapter 35</external-xref> of title 44, United States Code, shall not apply to the implementation of this subsection.</text></paragraph> <paragraph id="HDF6ECF9541AF4C6DA1A66B8840F40355"><enum>(4)</enum><header>Funding</header> <subparagraph id="H4CE6292405C44E5DACDB1344CB1635AB"><enum>(A)</enum><header>Secretary</header><text>In addition to amounts otherwise available, there is appropriated to the Centers for Medicare & Medicaid Services Program Management Account, out of any money in the Treasury not otherwise appropriated, $113,000,000 for fiscal year 2025, to remain available until expended, to carry out this subsection.</text></subparagraph>
<subparagraph id="H97A6AF5970F64E50A8BCD66D12884A39"><enum>(B)</enum><header>OIG</header><text>In addition to amounts otherwise available, there is appropriated to the Inspector General of the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, $20,000,000 for fiscal year 2025, to remain available until expended, to carry out this subsection. </text></subparagraph></paragraph></subsection> <subsection id="H5A566ECD208F496E9AB4B78F706C3155"><enum>(b)</enum><header>MedPAC reports on agreements with pharmacy benefit managers with respect to prescription drug plans and MA-PD plans</header> <paragraph commented="no" display-inline="no-display-inline" id="H29804BA9F392488F8758C87DD39E3E2B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text>The Medicare Payment Advisory Commission shall submit to Congress the following reports:</text>
<subparagraph id="H15B83AF543EF4026BC4AD285898F39E1"><enum>(A)</enum><header>Initial report</header><text>Not later than the first March 15 occurring after the date that is 2 years after the date on which the Secretary makes the data available to the Commission, a report regarding agreements with pharmacy benefit managers with respect to prescription drug plans and MA–PD plans. Such report shall include, to the extent practicable—</text> <clause id="H65E077885FAF4A2099906A1C916E77D7"><enum>(i)</enum><text>a description of trends and patterns, including relevant averages, totals, and other figures for the types of information submitted;</text></clause>
<clause id="H31FA2799DD2E4D5EB6E60F5B38CDE64F"><enum>(ii)</enum><text>an analysis of any differences in agreements and their effects on plan enrollee out-of-pocket spending and average pharmacy reimbursement, and other impacts; and</text></clause> <clause id="H6B1A7619D0BF452E889D2FBAF68CF2D9"><enum>(iii)</enum><text>any recommendations the Commission determines appropriate.</text></clause></subparagraph>
<subparagraph id="H755264D55DE24D1286FD0209B01435A8"><enum>(B)</enum><header>Final report</header><text>Not later than 2 years after the date on which the Commission submits the initial report under subparagraph (A), a report describing any changes with respect to the information described in subparagraph (A) over time, together with any recommendations the Commission determines appropriate.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H78FAECDBB090463F9120AB39C258C186"><enum>(2)</enum><header>Funding</header><text>In addition to amounts otherwise available, there is appropriated to the Medicare Payment Advisory Commission, out of any money in the Treasury not otherwise appropriated, $1,000,000 for fiscal year 2026, to remain available until expended, to carry out this subsection.</text></paragraph></subsection></section></part></subtitle>
<enum>V</enum><header>Committee on Financial Services</header>
<section id="H1FFF988994F34471858A719B96F34406" section-type="subsequent-section"><enum>50001.</enum><header>Green and resilient retrofit program for multifamily family housing</header><text display-inline="no-display-inline">The unobligated balance of amounts made available under section 30002(a) of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (commonly referred to as the <quote>Inflation Reduction Act</quote>; 136 Stat. 2027) are rescinded. </text></section> <section id="H313600EEAA384E2D93AF4B0752587982"><enum>50002.</enum><header>Public Company Accounting Oversight Board</header> <subsection commented="no" display-inline="no-display-inline" id="HBC16A5551A8F415F86BFFA0DF87B907F"><enum>(a)</enum><text display-inline="yes-display-inline">During the period beginning on the date of enactment of this Act and ending on the transfer date—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4605C016D2104E9DB64E7325D7E4D525"><enum>(1)</enum><text display-inline="yes-display-inline">all intellectual property retained by the Public Company Accounting Oversight Board (<quote>Board</quote>) in support of its programs for registration, standard-setting, and inspection shall be shared with the Securities and Exchange Commission (<quote>Commission</quote>); and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HEFED58056F08435598C970B95A10A2CE"><enum>(2)</enum><text display-inline="yes-display-inline">pending enforcement and disciplinary actions of the Board shall be referred to the Commission or another Federal functional regulator (as defined in section 509 of the Gramm-Leach-Bliley Act (<external-xref legal-doc="usc" parsable-cite="usc/15/6809">15 U.S.C. 6809</external-xref>)) in accordance with section 105 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7215">15 U.S.C. 7215</external-xref>).</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HD930B2CF48FA4C73A8250C4680D70AE3"><enum>(b)</enum><text display-inline="yes-display-inline">Effective on the transfer date—</text> <paragraph id="H1AE6B12B686F4061B715EA60AEB09F5F" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">all unobligated fees collected under section 109(d) of the Sarbanes-Oxley Act of 2002 shall be transferred to the general fund of the Treasury, and the Commission may not collect fees under such section 109(d);</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H358A052EEB4B49059008E046B156C449"><enum>(2)</enum><text display-inline="yes-display-inline">the duties and powers of the Board in effect as of the day before the transfer date, other than those described in section 107 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7217">15 U.S.C. 7217</external-xref>), shall be transferred to the Commission;</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HE4444125BD934AE5B8EFF5867D9A1365"><enum>(3)</enum><text display-inline="yes-display-inline">the Commission may not use funds to carry out section 107 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7217">15 U.S.C. 7217</external-xref>) for activities related to overseeing the Board;</text></paragraph>
<paragraph id="HDCAECD74C3514D6D8B9B1D514D7386F5"><enum>(4)</enum><text display-inline="yes-display-inline">the Board shall transfer all intellectual property described in subsection (a)(1) to the Commission;</text></paragraph> <paragraph id="H50ABAFD465764E3CB3F2A7AF838C9B15"><enum>(5)</enum><text display-inline="yes-display-inline">existing processes and regulations of the Board, including existing Board auditing standards, shall continue in effect unless modified through rule making by the Commission; and</text></paragraph>
<paragraph id="H75E73B4779944062914E1A18D5F527FA"><enum>(6)</enum><text display-inline="yes-display-inline">in connection with the duties and powers transferred under paragraph (2), any reference to the Board in any law implemented by a Federal functional regulator (as defined in section 509 of the Gramm-Leach-Bliley Act (<external-xref legal-doc="usc" parsable-cite="usc/15/6809">15 U.S.C. 6809</external-xref>)), in any rule or guidance issued by a Federal functional regulator (as defined in section 509 of the Gramm-Leach-Bliley Act (<external-xref legal-doc="usc" parsable-cite="usc/15/6809">15 U.S.C. 6809</external-xref>)), or in any records or other documents in the possession of a Federal functional regulator (as defined in section 509 of the Gramm-Leach-Bliley Act (<external-xref legal-doc="usc" parsable-cite="usc/15/6809">15 U.S.C. 6809</external-xref>)), shall be deemed a reference to the Commission.</text></paragraph></subsection> <subsection id="HB24851F126AE4F9097CB86B01121C0DB" commented="no" display-inline="no-display-inline"><enum>(c)</enum><text display-inline="yes-display-inline">Any employee of the Board as of the date of enactment of this Act may—</text>
<paragraph id="HFA4B53C18AA241F380087AA37C8CEDD5" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">be offered equivalent positions on the Commission staff, as determined by the Commission, and submit to the Commission’s standard employment policies; and</text></paragraph> <paragraph id="H7DD82D76D2B441D589EC78D24A7BA3BD" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text>receive pay that is not higher than the highest paid employee of similarly situated employees of the Commission.</text></paragraph></subsection>
<subsection id="HB3770326D754434C9E72BBF8284DC0FF"><enum>(d)</enum><text display-inline="yes-display-inline">In this section, the term <quote>transfer date</quote> means the date established by the Commission for purposes of this section, except that such date may not be later than the date that is 1 year after the date of enactment of this Act.</text></subsection></section> <section id="H482638E18F2042AD8D488F1E3CEC7694" section-type="subsequent-section" display-inline="no-display-inline"><enum>50003.</enum><header>Bureau of Consumer Financial Protection</header><text display-inline="no-display-inline">Section 1017(a)(2) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5497">12 U.S.C. 5497(a)(2)</external-xref>) is amended—</text>
<paragraph id="HA571F158ED0F420C9AEE2C4EDF35FDE2"><enum>(1)</enum><text>in subparagraph (A)(iii)—</text> <subparagraph id="H01BF58A75E0C4FDD8D3DBC6EF88073C4"><enum>(A)</enum><text>by striking <quote>12 percent</quote> and inserting <quote>5 percent</quote>; and</text></subparagraph>
<subparagraph id="H554A09B012FE47D0A5852C1096F9B68F"><enum>(B)</enum><text>by striking <quote>2013</quote> and inserting <quote>2025</quote>; and</text></subparagraph></paragraph> <paragraph id="H13CE38216ED34FDC822AA5398B8D5815"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subparagraph (C) and inserting the following:</text>
<quoted-block style="OLC" id="H70B48565DAEA469F89EE8E61ACB14B55" display-inline="no-display-inline">
<subparagraph id="HADFE6FAFB93C4228837E21E8EFFCEBC2"><enum>(C)</enum><header>Limitation on unobligated balances</header><text display-inline="yes-display-inline">With respect to a fiscal year, the amount of unobligated balances of the Bureau may not exceed 5 percent of the dollar amount referred to in subparagraph (A)(iii), as adjusted under subparagraph (B). The Director shall transfer any excess amount of such unobligated balances to the general fund of the Treasury.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H59CFAFE840564B91A47717385A304727" section-type="subsequent-section" display-inline="no-display-inline"><enum>50004.</enum><header>Consumer Financial Civil Penalty Fund</header><text display-inline="no-display-inline">Section 1017(d) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5497">12 U.S.C. 5497(d)</external-xref>) is amended—</text>
<paragraph id="H57DFC6A773A84F039400B45DE44D0D11"><enum>(1)</enum><text>in paragraph (2)— </text> <subparagraph id="HDDC2A3010E6C4AA4B8F9E3ACF1832CA3"><enum>(A)</enum><text>in the first sentence, by inserting <quote>direct</quote> before <quote>victims</quote>; and</text></subparagraph>
<subparagraph id="HF39B3F331C884C03B8C3E577019C6175"><enum>(B)</enum><text>by striking the second sentence; and</text></subparagraph></paragraph> <paragraph id="H1307CB641D3444B4B3CBDC12BC3635BA"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="HA0B6E587CA4245CEACEEDFE5ACC3421E" act-name="">
<paragraph id="H0510FE27CEDD4B0C972DAB705FEAFA87"><enum>(3)</enum><header>Treatment of excess amounts</header><text>With respect to a civil penalty described under paragraph (1), if the Bureau makes payments to all of the direct victims of activities for which that civil penalty was imposed, the Bureau shall transfer all amounts that remain in the Civil Penalty Fund with respect to that civil penalty to the general fund of the Treasury.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HEABA02E82E824A9D86AA497FE35EEA4D" section-type="subsequent-section"><enum>50005.</enum><header>Financial Research Fund</header><text display-inline="no-display-inline">Section 155 of the Financial Stability Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5345">12 U.S.C. 5345</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" id="H3C7097FCD29E4253A0E57B0C7C4C9031" display-inline="no-display-inline">
<subsection id="HB9DFCEC054C2476E981769B37271A492"><enum>(e)</enum><header>Limitation on assessments and the Financial Research Fund</header>
<paragraph id="H0C586D601AFA43B8A1AAB329737767F4"><enum>(1)</enum><header>Limitation on assessments</header><text>Assessments may not be collected under subsection (d) if the assessments would result in—</text> <subparagraph id="H3EE4A84CB5DE4428891F03A569A26A63"><enum>(A)</enum><text>the Financial Research Fund exceeding the average annual budget amount; or</text></subparagraph>
<subparagraph id="H12939A1831274E348FDA856D01871F9C"><enum>(B)</enum><text display-inline="yes-display-inline">the total assessments collected during a single fiscal year exceeding the average annual budget amount.</text></subparagraph></paragraph> <paragraph id="H8AE931773D824F038DB650EE0BBCA81A"><enum>(2)</enum><header>Transfer of excess funds</header><text display-inline="yes-display-inline">Any amounts in the Financial Research Fund exceeding the average annual budget amount shall be deposited into the general fund of the Treasury.</text></paragraph>
<paragraph id="H89951AE41FFF4C70A94F4518B2DFFD06"><enum>(3)</enum><header>Average annual budget amount defined</header><text display-inline="yes-display-inline">In this subsection the term <quote>average annual budget amount</quote> means the annual average, over the 3 most recently completed fiscal years, of the expenses of the Council in carrying out the duties and responsibilities of the Council that were paid by the Office using amounts obtained through assessments under subsection (d).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <enum>VI</enum><header>Committee on Homeland Security</header> <section id="H463C7ADDE95344F8BEA349AD604EB0D4"><enum>60001.</enum><header>Border barrier system construction, invasive species, and border security facilities improvements</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, the following:</text>
<paragraph id="H20DF9E705926452D958F0400F275CCD9"><enum>(1)</enum><text display-inline="yes-display-inline">$46,500,000,000 for necessary expenses relating to the following:</text> <subparagraph id="H5C74A16B55BC4ADE8EF07B4D8E55D91F"><enum>(A)</enum><text>Construction, installation, or improvement of primary, waterborne, and secondary barriers.</text></subparagraph>
<subparagraph id="H85E311AE60F34793A525FD79FECF9BA7"><enum>(B)</enum><text>Access roads.</text></subparagraph> <subparagraph id="H2BF7AD48DADE4BD9B4DCA56150E369B7"><enum>(C)</enum><text>Barrier system attributes, including cameras, lights, sensors, roads, and other detection technology.</text></subparagraph></paragraph>
<paragraph id="HC861F8EDF58743FAA14FC69F6C41512D"><enum>(2)</enum><text>$50,000,000 for necessary expenses relating to eradication and removal of the carrizo cane plant, salt cedar, or any other invasive plant species that impedes border security operations along the Rio Grande River.</text></paragraph> <paragraph id="H5E30507FF53644058C15CA7E645144E9"><enum>(3)</enum><text display-inline="yes-display-inline">$5,000,000,000 for necessary expenses relating to lease, acquisition, construction, or improvement of U.S. Customs and Border Protection facilities and checkpoints in the vicinity of the southwest, northern, and maritime borders.</text></paragraph></section>
<section id="H4FE0E0EE737641B2AA7D9D9D35598B52"><enum>60002.</enum><header>U.S. Customs and Border Protection personnel and fleet vehicles</header>
<subsection id="H800C9C5509D341C08AF0A289D1783DB9"><enum>(a)</enum><header>CBP personnel</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $4,100,000,000, to remain available until September 30, 2029, to hire and train additional Border Patrol agents, Office of Field Operations Officers, Air and Marine agents, rehired annuitants, and U.S. Customs and Border Protection support personnel.</text></subsection> <subsection id="H4184DACD7CC74161B64FE1940A5B75C3"><enum>(b)</enum><header>Restrictions</header><text>None of the funds made available by subsection (a) may be used to recruit, hire, or train personnel for the duties of processing coordinators.</text></subsection>
<subsection id="HE257495DCD5D4C74B019C0C6C43F4216"><enum>(c)</enum><header>CBP retention and hiring bonuses</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $2,052,630,000, to remain available until September 30, 2029, to provide annual retention bonuses or signing bonuses to eligible Border Patrol agents, Office of Field Operations Officers, and Air and Marine agents.</text></subsection> <subsection id="HAD5BD5FCE5AB41DD9AE05CFD89EF57EF"><enum>(d)</enum><header>CBP vehicles</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $813,000,000, to remain available until September 30, 2029, for the lease or acquisition of additional marked patrol units.</text></subsection>
<subsection id="H9A0BAC3AE2B94C77900399F0EF0F0F10"><enum>(e)</enum><header>FLETC</header><text>In addition to amounts otherwise available, there is appropriated to the Director of the Federal Law Enforcement Training Center for fiscal year 2025, out of any money in the Treasury not otherwise appropriated—</text> <paragraph id="HF824292B500F4875A13E336969C6F3EF"><enum>(1)</enum><text display-inline="yes-display-inline">$285,000,000, to remain available until September 30, 2029, to support the training of newly hired Federal law enforcement personnel employed by the Department of Homeland Security; and</text></paragraph>
<paragraph id="HF6EAC2C16E7F4429905AFB5205D0B686"><enum>(2)</enum><text>$465,000,000, to remain available until September 30, 2029, for procurement and construction, improvements, and related expenses of the Federal Law Enforcement Training Centers facilities.</text></paragraph></subsection> <subsection id="HEE9E7D075EB14F77AE7443FB1D232C31" commented="no"><enum>(f)</enum><header>Border security workforce recruitment and applicant sourcing</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $600,000,000, to remain available until September 30, 2029, for marketing, recruiting, applicant sourcing and vetting, and operational mobility programs for border security personnel.</text></subsection></section>
<section id="H0A795B16508B42968553843ABFB528EF"><enum>60003.</enum><header>U.S. Customs and Border Protection technology, vetting activities, and other efforts to enhance border security</header>
<subsection id="H60D96381AD5E45ABA2D368787945ED5D"><enum>(a)</enum><header>CBP technology</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, the following: </text> <paragraph id="H48D881F64B7543C5B0CCACDE11D82777"><enum>(1)</enum><text display-inline="yes-display-inline">$1,076,317,000 for necessary expenses relating to procurement and integration of new non-intrusive inspection equipment and associated civil works, artificial intelligence, integration, and machine learning, as well as other mission support, to combat the entry of illicit narcotics along the southwest, northern, and maritime borders.</text></paragraph>
<paragraph id="H07D43F0596674FE98F12690B6BFA9215"><enum>(2)</enum><text display-inline="yes-display-inline">$2,766,000,000 for necessary expenses relating to upgrades and procurement of border surveillance technologies along the southwest, northern, and maritime borders.</text></paragraph> <paragraph id="H5F518A7BA03A4F9ABD9E99BD7C2F3080" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">$673,000,000 for necessary expenses, including the deployment of technology, relating to the biometric entry and exit system under section 7208 of the Intelligence Reform and Terrorism Prevention Act of 2004 (<external-xref legal-doc="usc" parsable-cite="usc/8/1365b">8 U.S.C. 1365b</external-xref>).</text></paragraph></subsection>
<subsection id="H9F85A3A9ABE449908063124CD74FEE7D"><enum>(b)</enum><header>Restrictions</header><text display-inline="yes-display-inline">None of the funds made available pursuant to subsection (a)(2) may be used for the procurement or deployment of surveillance towers that have not been—</text> <paragraph id="HD4E05CAAFDA04725AFC681A778AB783B"><enum>(1)</enum><text>tested, and</text></paragraph>
<paragraph id="H0D36B0A01ABD46F6AEBAD7BAB1D3B195"><enum>(2)</enum><text>accepted,</text></paragraph><continuation-text continuation-text-level="subsection">by the Federal Government to deliver autonomous capabilities.</continuation-text></subsection> <subsection id="H1691C23150D9410EA6BA372D25C46A4C" commented="no"><enum>(c)</enum><header>Air and Marine Operations</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,234,000,000, to remain available until September 30, 2029, for Air and Marine Operations’ upgrading and procurement of new platforms for rapid air and marine response capabilities.</text></subsection>
<subsection id="H486749F3063C49AC801C843A61500444"><enum>(d)</enum><header>CBP vetting activities</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $16,000,000, to remain available until September 30, 2029, for necessary expenses to support screening, vetting activities, and expansion of U.S. Customs and Border Protection’s criminal history databases.</text></subsection> <subsection id="H6D2A3C2C109D46F98346FA39ADE340CE"><enum>(e)</enum><header>Other efforts to combat drug trafficking to enhance border security</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2029, for enhancing border security and combatting trafficking, including fentanyl and its precursor chemicals, at the southwest, northern, and maritime borders.</text></subsection>
<subsection id="H0AF721C00A8449B0AC9DF1AD2E086428"><enum>(f)</enum><header>Commemorations</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,000,000, to remain available until September 30, 2029, for commemorating efforts and events related to border security.</text></subsection> <subsection id="H6593147642694E08A382C45C68AA6DBB" commented="no"><enum>(g)</enum><header>Definition</header><text>In this section, the term <quote>autonomous</quote> means integrated software and hardware systems that utilize sensors, onboard computing, and artificial intelligence to identify items of interest that would otherwise be manually identified by U.S. Customs and Border Protection personnel.</text></subsection></section>
<section id="HE93A2E88E15E42AAB211740BA1CAC23F"><enum>60004.</enum><header>State border security reimbursement</header>
<subsection id="H750A01CFBA0C43549A68C1BA2EB452FF" commented="no"><enum>(a)</enum><header>In general</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security, for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $12,000,000,000, to remain available until September 30, 2029, to carry out this section.</text></subsection> <subsection id="H0F5BEB3699AC46EDA2DF9674A8C13056"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">The Secretary of Homeland Security shall use amounts made available under subsection (a) to make grants to States for costs associated with actions taken on or after January 21, 2021, to assist the Federal border security missions to enforce the immigration laws, including through detention and removal, and to combat the unlawful entry of persons and contraband.</text></subsection>
<subsection id="HF7C77D447D74464EB576E52A41BC7600" commented="no"><enum>(c)</enum><header>Application</header><text>The Secretary of Homeland Security shall develop a process for States to submit a grant application, together with satisfactory evidence of costs incurred, to seek reimbursement for any expenses described in subsection (b).</text></subsection> <subsection id="HA0DDC18D990749E78AC709F71970137C"><enum>(d)</enum><header>Prohibition</header><text>The Secretary of Homeland Security may not make a grant for reimbursement under this section to a State if such State has received such reimbursement under any other grant program of the Department of Homeland Security.</text></subsection></section>
<section id="HEEAF857E6D2F4C7DB1672456302627D3"><enum>60005.</enum><header>State and local law enforcement presidential residence protection</header>
<subsection id="H03A56DD9248F45B98322C7F8AD7B0313" commented="no"><enum>(a)</enum><header>Presidential residence protection</header><text>In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency, for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2029, for the reimbursement of extraordinary law enforcement personnel costs for protection activities directly and demonstrably associated with any residence of the President that is designated pursuant to section 3 of the Presidential Protection Assistance Act of 1976 (<external-xref legal-doc="public-law" parsable-cite="pl/94/524">Public Law 94–524</external-xref>) to be secured by the United States Secret Service.</text></subsection> <subsection id="HA7BEA1829662455FBAB7B13272B49358"><enum>(b)</enum><header>Availability</header><text>Funds under subsection (a) shall be available only for costs that a State or local agency—</text>
<paragraph id="H8815DF0AFA984E2CB36DCF543B496708"><enum>(1)</enum><text>incurred or incurs on or after July 1, 2024;</text></paragraph> <paragraph id="H273266B4901245D3A41BB465B005103A"><enum>(2)</enum><text display-inline="yes-display-inline">can demonstrate to the Administrator of the Federal Emergency Management Agency as being—</text>
<subparagraph id="HB52FA26CB31C4729A77C5820D80D0D4E"><enum>(A)</enum><text>in excess of the costs of normal and typical law enforcement operations;</text></subparagraph> <subparagraph id="HAD961ED8056845DBBC46BD91A64C9F33"><enum>(B)</enum><text>directly attributable to the provision of protection described in such subsection; and</text></subparagraph>
<subparagraph id="HD01C6A3769B544939BBFE04862DAF027"><enum>(C)</enum><text>associated with a non-governmental property designated pursuant to section 3 of the Presidential Protection Assistance Act of 1976 (<external-xref legal-doc="public-law" parsable-cite="pl/94/524">Public Law 94–524</external-xref>) to be secured by the United States Secret Service; and</text></subparagraph></paragraph> <paragraph id="H75F551D3B89045C193D0101B3DB9964F"><enum>(3)</enum><text>certifies to the Administrator as being for protection activities requested by the Director of the United States Secret Service.</text></paragraph></subsection></section>
<section id="H1A9785BFFF9A46349DE111F11B4C0026"><enum>60006.</enum><header>State homeland security grant program</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency, for fiscal year 2025, out of any money in the Treasury, not otherwise appropriated, to be administered under the State Homeland Security Grant Program authorized under section 2004 of the Homeland Security Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/6/605">6 U.S.C. 605</external-xref>), to enhance State, local, and Tribal security through grants, contracts, cooperative agreements, and other activities, of which—</text> <paragraph id="HA974584FBAAC4B17A9F5C2CC8457D8DA" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">$500,000,000, to remain available until September 30, 2029, for State and local capabilities to detect, identify, track, or monitor threats from unmanned aircraft systems (as such term is defined in section 44801 of title 49, United States Code);</text></paragraph>
<paragraph id="HC1A76CD909DE4460B739D3C0DA52FC7D" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">$625,000,000, to remain available until September 30, 2029, for security, planning, and other costs related to the 2026 FIFA World Cup;</text></paragraph> <paragraph id="HC936C09DA1C84BD68B9C6C1FA8CA336D" commented="no"><enum>(3)</enum><text>$1,000,000,000, to remain available until September 30, 2029, for security, planning, and other costs related to the 2028 Olympic Games and 2028 Paralympic Games; and</text></paragraph>
<paragraph id="HA309B4BB53DF473C943E0BCF417DBCCF" commented="no"><enum>(4)</enum><text>$450,000,000, to remain available until September 30, 2029, for the Operation Stonegarden Grant Program.</text></paragraph></section> <enum>VII</enum><header>Committee on the Judiciary</header> <subtitle id="H3DCAEC0FB72D48B5A797D32D751A7CBA"><enum>A</enum><header>Immigration Matters</header> <part id="H2AA27B1D6DA7471BA142209B9D2F0CF1"><enum>1</enum><header>Immigration Fees</header> <section id="H1C9F63BBB196469D998485129168E487" display-inline="no-display-inline"><enum>70001.</enum><header>Applicability of the immigration laws</header> <subsection id="H74008D11A69346DF929CB9CA868A427E"><enum>(a)</enum><header>Applicability</header><text display-inline="yes-display-inline">Notwithstanding any provision of the immigration laws (as defined under section 101 of the Immigration and Nationality Act), the fees under this subtitle shall apply.</text></subsection>
<subsection id="H97620DFA39B141EA86853C0F6EE111A5"><enum>(b)</enum><header>Terms</header><text display-inline="yes-display-inline">The terms used under this subtitle shall have the meanings given such terms in section 101 of the Immigration and Nationality Act.</text></subsection> <subsection id="H61937B96FE65480192A899AF38FB125C"><enum>(c)</enum><header>References to Immigration and Nationality Act</header><text display-inline="yes-display-inline">Except as otherwise expressly provided, whenever this subtitle references a section or other provision, the reference shall be considered to be to a section or other provision of the Immigration and Nationality Act.</text></subsection></section>
<section id="H5CE68FA7CA5449439A3C23F4D0C35886"><enum>70002.</enum><header>Asylum fee</header>
<subsection id="HF1BF8A715DC744708188385EB4625D33"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security or the Attorney General, as applicable, shall impose a fee in the amount specified in this section for a fiscal year on each alien who files an application for asylum under section 208 of the Immigration and Nationality Act at the time such application is filed. </text></subsection> <subsection id="H4F296A97C0A34B058C23155B3BF1AA68"><enum>(b)</enum><header>Initial amount</header><text display-inline="yes-display-inline">The amount specified in this section for fiscal year 2025 shall be such amount as the Secretary or Attorney General, as applicable, may by rule provide, but in any event not less than $1,000.</text></subsection>
<subsection id="H90A0A6297DCC4F6AAABE947C36B61307"><enum>(c)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this section for a fiscal year shall be equal to the sum of—</text> <paragraph id="H1E330D813AB243B485EE62C6686F0FD5"><enum>(1)</enum><text>the amount imposed under this section for the prior fiscal year; and</text></paragraph>
<paragraph id="H49A6581B6B1243EEB2F33FDAEB078441"><enum>(2)</enum><text display-inline="yes-display-inline">rounded to the next lowest multiple of $10, the amount referred to in paragraph (1), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year. </text></paragraph></subsection> <subsection id="H08516FCF5A9D40BA845834DBBCB48DE5" commented="no"><enum>(d)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, the total amount of fees received under this section shall be subject to the following:</text>
<paragraph id="H66E3238EF3514254875E567D27AD2454" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">50 percent of fees received from applications filed with the Attorney General shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation.</text></paragraph> <paragraph id="H1DB1152D60B2442F809D142031CE79AD" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">50 percent of fees received from applications filed with the Secretary of Homeland Security shall be credited to U.S. Citizenship and Immigration Services and deposited into the Immigration Examinations Fee Account established under section 286(m) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1356">8 U.S.C. 1356(m)</external-xref>) to retain and spend without further appropriation.</text></paragraph>
<paragraph id="H762ECEE62CCE4B35B424AA3F2C01831D" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">Any amounts not credited to the Executive Office for Immigration Review or U.S. Citizenship and Immigration Services shall be deposited into the general fund of the Treasury. </text></paragraph></subsection> <subsection id="H39392145D2894101AD3F107E720FA10C"><enum>(e)</enum><header>No waiver</header><text>A fee imposed under this section shall not be waived or reduced.</text></subsection></section>
<section id="H1F51210615774CF585302B00BF2440ED"><enum>70003.</enum><header>Employment authorization document fees</header>
<subsection id="H5EA1048F3CBC44358C7D0F8BEF24D98F"><enum>(a)</enum><header>Asylum applicants</header>
<paragraph id="HF38C9B8DEF2A446DA3CDF4ABBFFF690E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose on any alien who files an initial application for employment authorization under section 208(d)(2) of the Immigration and Nationality Act a fee in the amount specified in this subsection at the time such initial employment authorization application is filed. Each initial employment authorization shall be valid for a period of not more than six months. </text></paragraph> <paragraph id="HC94B0FD4C11A4DB8AC0DEC8D50FBE240"><enum>(2)</enum><header>Initial amount</header><text> For purposes of this subsection, the amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $550.</text></paragraph>
<paragraph id="H1D3202CA0A914274825E1379A17A8683"><enum>(3)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount for a fiscal year shall be equal to the sum of—</text> <subparagraph id="H21D8854578AD4E7A8CCEE0562BD9068A"><enum>(A)</enum><text display-inline="yes-display-inline">the amount imposed under this section for the prior fiscal year; and</text></subparagraph>
<subparagraph id="HECB279BA7F674573B83D73CE3141D518"><enum>(B)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph> <paragraph id="H730A607DC46C4371A7634F9402139627" commented="no"><enum>(4)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">25 percent of fees received under this section shall be credited to U.S. Citizenship and Immigration Services and deposited into the Immigration Examinations Fee Account established under section 286(m) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1356">8 U.S.C. 1356(m)</external-xref>) to retain and spend without further appropriation, of which 50 percent shall be used by U.S. Citizenship and Immigration Services to detect and prevent immigration benefit fraud. Any amounts not credited to U.S. Citizenship and Immigration Services under this section shall be deposited into the general fund of the Treasury.</text></paragraph>
<paragraph id="HD2E9E613A70A46E18BF426ADDAEEE823"><enum>(5)</enum><header>No waiver</header><text>A fee imposed under this subsection shall not be waived or reduced.</text></paragraph></subsection> <subsection id="HEA1550EF9E7C47BDBA554B8708D07168"><enum>(b)</enum><header>Parole</header> <paragraph id="HA4C2D3ABB91F4CD6B38E7A0699BE65CA"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose on any alien paroled into the United States a fee for any initial application for employment authorization in an amount specified in this subsection at the time such initial application is filed. Each initial employment authorization shall be valid for a period of not more than six months.</text></paragraph>
<paragraph id="HC6522CEEC2C44537B723B2E838BAA2ED"><enum>(2)</enum><header>Initial amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $550.</text></paragraph> <paragraph id="HCA0FA80368D34900B0F63F33112740E5"><enum>(3)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of—</text>
<subparagraph id="H07D5FB8307B74CA5907DF80977B356AE"><enum>(A)</enum><text display-inline="yes-display-inline">the amount imposed under this subsection for the prior fiscal year; and</text></subparagraph> <subparagraph id="H8575C0D9903E45EBA044A230A6A868CF"><enum>(B)</enum><text display-inline="yes-display-inline">rounded to the next lowest multiple of $10, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year. </text></subparagraph></paragraph>
<paragraph id="HB42D721BA35242828E4EB1E65B2B117A"><enum>(4)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">The fees received under this section shall be deposited into the general fund of the Treasury.</text></paragraph> <paragraph id="H90E948BD54E847F7A380C028DD709D87"><enum>(5)</enum><header>No waiver</header><text>A fee imposed under this subsection shall not be waived or reduced.</text></paragraph></subsection>
<subsection id="HC74F7CD4757C42B7AB5ADDF1E961F090"><enum>(c)</enum><header>Temporary protected status</header>
<paragraph id="HE2ED1FB9076F44B1ABE8D2F843F02018"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, for any alien who files an initial application for employment authorization under section 244(a)(1)(B) of the Immigration and Nationality Act, the Secretary of Homeland Security shall impose a fee in an amount specified in this subsection at the time such initial application is filed. Each initial employment authorization shall be valid for a period of not more than six months.</text></paragraph> <paragraph id="HCC369C222A7443969F31CF499065E65C"><enum>(2)</enum><header>Initial amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $550.</text></paragraph>
<paragraph id="HC9C03551E95840859242F6D2CF95A7AD"><enum>(3)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of—</text> <subparagraph id="H57967BF6C51748B09586B0338F25D6AB"><enum>(A)</enum><text display-inline="yes-display-inline">the amount imposed under this subsection for the prior fiscal year; and</text></subparagraph>
<subparagraph id="H40E3B8EAC1F2430786351AFABF8C2B08"><enum>(B)</enum><text display-inline="yes-display-inline">rounded to the next lowest multiple of $10, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year. </text></subparagraph></paragraph> <paragraph id="H11CB30CE250C4FCAAB39784DB67E1594"><enum>(4)</enum><header>Crediting of certain funds</header><text display-inline="yes-display-inline">The fees received under this section shall be deposited into the general fund of the Treasury.</text></paragraph>
<paragraph id="HBADD7777AB314B7FBD15363E50127496"><enum>(5)</enum><header>No waiver</header><text>A fee imposed under this subsection shall not be waived or reduced.</text></paragraph></subsection></section> <section id="H15B54334177A46F0B17DFDF23CFB4FBD"><enum>70004.</enum><header>Parole fee</header> <subsection id="HFB8A3D29C16C48E8976E4983C6E2E310"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose a fee in an amount specified in this section on each alien who is paroled into the United States, except if, as established by the alien, the alien is paroled because—</text>
<paragraph id="H94B7C5D00BF548E789ED6B0A8283DF1C"><enum>(1)</enum><text>the alien has a medical emergency, and—</text> <subparagraph id="H0D32750DC8FD4E96819A811997DBBEF5"><enum>(A)</enum><text>the alien cannot obtain necessary treatment in the foreign state in which the alien is residing; or</text></subparagraph>
<subparagraph id="H8734F346578545C59D6F262F41A49348"><enum>(B)</enum><text>the medical emergency is life-threatening and there is insufficient time for the alien to be admitted to the United States through the normal visa process;</text></subparagraph></paragraph> <paragraph id="HCE3E0FB763FE4FBBA76D7A0B2B2370C0"><enum>(2)</enum><text>the alien is the parent or legal guardian of an alien described in paragraph (1) and the alien described in paragraph (1) is a minor;</text></paragraph>
<paragraph id="HD262C277B42045F1BBD282FE4FB0DDB0"><enum>(3)</enum><text>the alien is needed in the United States to donate an organ or other tissue for transplant and there is insufficient time for the alien to be admitted to the United States through the normal visa process; </text></paragraph> <paragraph id="H14C8F02F9F394628ADCA645898AA7718"><enum>(4)</enum><text>the alien has a close family member in the United States whose death is imminent and the alien could not arrive in the United States in time to see such family member alive if the alien were to be admitted to the United States through the normal visa process;</text></paragraph>
<paragraph id="HB008BD8CD5264926AF4662923CF10CB2"><enum>(5)</enum><text>the alien is seeking to attend the funeral of a close family member and the alien could not arrive in the United States in time to attend such funeral if the alien were to be admitted to the United States through the normal visa process;</text></paragraph> <paragraph id="HDE0E7BAE0F044E05908FD73ACAE07244"><enum>(6)</enum><text>the alien is an adopted child with an urgent medical condition who is in the legal custody of the petitioner for a final adoption-related visa and whose medical treatment is required before the expected award of a final adoption-related visa;</text></paragraph>
<paragraph id="HF758BD43C2AA4919A0C21D3C5303493F"><enum>(7)</enum><text display-inline="yes-display-inline">the alien is a lawful applicant for adjustment of status under section 245 of the Immigration and Nationality Act and is returning to the United States after temporary travel abroad; </text></paragraph> <paragraph id="H25DDD47A6A11453294D82BBE22D50240"><enum>(8)</enum><text>the alien is returned to a contiguous country under section 235(b)(2)(C) of the Immigration and Nationality Act and paroled into the United States to allow the alien to attend the alien’s immigration hearing;</text></paragraph>
<paragraph id="H64B7C963A2BD445BBE2664F3D48A92FF" commented="no"><enum>(9)</enum><text display-inline="yes-display-inline">the alien—</text> <subparagraph id="H208DB2E2DC43495D8A803ED7BA318FC4" commented="no"><enum>(A)</enum><text>is a national of the Republic of Cuba and is living in the Republic of Cuba;</text></subparagraph>
<subparagraph id="H511BDC95E356451AA5802E0DB99838EC" commented="no"><enum>(B)</enum><text>is the beneficiary of an approved petition under section 203(a) of the Immigration and Nationality Act;</text></subparagraph> <subparagraph id="HE13AECB02CDC4560A101837C7D1548DD" commented="no"><enum>(C)</enum><text>is an alien for whom an immigrant visa is not immediately available;</text></subparagraph>
<subparagraph id="H663FC2F0E939477D8746D582EE620CA9" commented="no"><enum>(D)</enum><text>meets all eligibility requirements for an immigrant visa;</text></subparagraph> <subparagraph id="H56F005C6D27F4C7E888F28FE93941024" commented="no"><enum>(E)</enum><text>is not otherwise inadmissible; and</text></subparagraph>
<subparagraph id="HE958671FE97F439E8946F3B5B0FBE601" commented="no"><enum>(F)</enum><text>is receiving a grant of parole in furtherance of the commitment of the United States to the minimum level of annual legal migration of Cuban nationals to the United States specified in the U.S.-Cuba Joint Communiqué on Migration, done at New York September 9, 1994, and reaffirmed in the Cuba-United States: Joint Statement on Normalization of Migration, Building on the Agreement of September 9, 1994, done at New York May 2, 1995; or</text></subparagraph></paragraph> <paragraph id="H92A80269897E434EB2A7F80852003B54" commented="no"><enum>(10)</enum><text display-inline="yes-display-inline">the Secretary of Homeland Security determines that a significant public benefit has resulted or will result from the parole of an alien only if—</text>
<subparagraph id="H6D91C352F86741A9976ACE71E11E0466" commented="no"><enum>(A)</enum><text>the alien has assisted or will assist the United States Government in a law enforcement matter;</text></subparagraph> <subparagraph id="H483BD58F806344ABAF5F34AC49166CEC" commented="no"><enum>(B)</enum><text>the alien’s presence is required by the Government in furtherance of such law enforcement matter; and</text></subparagraph>
<subparagraph id="H62C893A1E39446CE8E7F20397FF3ED6F" commented="no"><enum>(C)</enum><text>the alien is inadmissible, does not satisfy the eligibility requirements for admission as a nonimmigrant, or there is insufficient time for the alien to be admitted to the United States through the normal visa process.</text></subparagraph></paragraph></subsection> <subsection id="H09D2CAD688E94F598D5945B93A90CE3D"><enum>(b)</enum><header>Initial amount</header><text display-inline="yes-display-inline">For purposes of this section, the amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $1,000.</text></subsection>
<subsection id="H1A7492EDECFB47D583AEAC996A01395F"><enum>(c)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this section for a fiscal year shall be equal to the sum of—</text> <paragraph id="HA11E37EA9C6A4399A984AB077E7CADCA"><enum>(1)</enum><text display-inline="yes-display-inline">the amount imposed under this section for the prior fiscal year; and</text></paragraph>
<paragraph id="H1ADBB81A58EE4C44BF25393BBAEC4758"><enum>(2)</enum><text display-inline="yes-display-inline">rounded to the next lowest multiple of $10, the amount referred to in paragraph (1), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year. </text></paragraph></subsection> <subsection id="HD758304DBD1B431DB47A739AB7C90308"><enum>(d)</enum><header>Crediting of funds</header><text>Fees received under this section shall be deposited in the general fund of the Treasury.</text></subsection>
<subsection id="H19D094CA5DF04F20AFC570138D026F5D"><enum>(e)</enum><header>No waiver</header><text>A fee imposed under this section shall not be waived or reduced.</text></subsection></section> <section id="H668318C6E9EC4522AD951B53040C9BE4"><enum>70005.</enum><header>Special immigrant juvenile fee</header> <subsection id="H5238E2F74B394959BEE503927BB16F50"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose a fee in an amount specified in this section on any alien applying for special immigrant juvenile status under section 101(a)(27)(J) of the Immigration and Nationality Act if reunification with 1 parent or legal guardian is viable, notwithstanding abuse, neglect, abandonment, or a similar basis found under State law making reunification with the other parent or legal guardian not viable. </text></subsection>
<subsection id="HBF6B86733CA94081B896F4166933BB05"><enum>(b)</enum><header>Initial amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the amount specified in this section for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $500.</text></subsection> <subsection id="H6DD8F36DC77F4EC4A01EAE4C0FBA6DC6"><enum>(c)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this section for a fiscal year shall be equal to the sum of—</text>
<paragraph id="H7BF821033EDA4C9EBD034108BF172ED8"><enum>(1)</enum><text display-inline="yes-display-inline">the amount imposed under this section for the prior fiscal year; and</text></paragraph> <paragraph id="H03FF5141C16C45A2951189ECED0D9763"><enum>(2)</enum><text display-inline="yes-display-inline">rounded to the next lowest multiple of $10, the amount referred to in paragraph (1), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year. </text></paragraph></subsection>
<subsection id="H3358BA82CCB344C2A16E42995E112710"><enum>(d)</enum><header>Crediting of funds</header><text>Fees received under this section shall be deposited in the general fund of the Treasury.</text></subsection> <subsection id="H7F0F3123305E4A00BE22EBEDC05B971F"><enum>(e)</enum><header>No waiver</header><text>A fee imposed under this section shall not be waived or reduced.</text></subsection></section>
<section id="HA71A86CF08AA4A61B92A3A5091C7E265"><enum>70006.</enum><header>Temporary protected status fee</header>
<subsection id="HE70F54A932DE47A1826FC410B28A6BE1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose a fee in an amount specified in this section for the consideration of an application for temporary protected status under section 244 of the Immigration and Nationality Act on any alien who— </text> <paragraph id="H7268525611A24B2AAD17FF9E9A4F3F77"><enum>(1)</enum><text>has not been admitted into the United States; or </text></paragraph>
<paragraph id="H96F439E9C90240798724F4795FE5E9D0"><enum>(2)</enum><text display-inline="yes-display-inline">has been admitted to the United States as a nonimmigrant but at the time of application for temporary protected status has failed—</text> <subparagraph id="H9E4DD0B1586C4C31AC7E0ED18F6CE496"><enum>(A)</enum><text>to maintain or extend the nonimmigrant status in which the alien was admitted or to which the status was changed under section 248 of the Immigration and Nationality Act, including complying with the period of stay authorized by the Secretary of Homeland Security in connection with such status; or</text></subparagraph>
<subparagraph id="H005197934CBE4EC1B62E7225515A53D7"><enum>(B)</enum><text>to comply with the conditions of such nonimmigrant status.</text></subparagraph></paragraph></subsection> <subsection id="H44D98FE7ED7F4A719D1DA44358A0823B" display-inline="no-display-inline"><enum>(b)</enum><header>Initial amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the amount specified in this section for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $500.</text></subsection>
<subsection id="HA790856430AF4CACB8B66CE315B3FA63"><enum>(c)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this section for a fiscal year shall be equal to the sum of—</text> <paragraph id="H3834A5020E1A4AA6B6FB3902372AA1E0"><enum>(1)</enum><text display-inline="yes-display-inline">the amount imposed under this section for the prior fiscal year; and</text></paragraph>
<paragraph id="H11CCDD66A8684B849BEFB38D733090D4"><enum>(2)</enum><text display-inline="yes-display-inline">rounded to the next lowest multiple of $10, the amount referred to in paragraph (1), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year. </text></paragraph></subsection> <subsection id="H38E61C48B4D145A884D886D95A0613FD"><enum>(d)</enum><header>Crediting of funds</header><text>Fees received under this section shall be deposited in the general fund of the Treasury.</text></subsection>
<subsection id="HB0A7EDFBE309486FA88D858FD6832EB6"><enum>(e)</enum><header>No waiver</header><text>A fee imposed under this section shall not be waived or reduced.</text></subsection></section> <section id="HBB698C6B26234686B391B9D4D083A54E"><enum>70007.</enum><header>Unaccompanied alien child sponsor fee</header> <subsection id="H5D3EDBD8CF474A3797E29499204B16C9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, before placing the child with an individual under section 235(c) of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008, the Secretary of Health and Human Services shall collect from that individual a fee in an amount specified in this section as partial reimbursement to the Federal Government for the period during which the child was in the custody of the Government, for processing, housing, feeding, educating, transporting, and otherwise providing for the care of the child. </text></subsection>
<subsection id="HCA255EE910494A54995C972012E8ACF9" display-inline="no-display-inline"><enum>(b)</enum><header>Initial amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the amount specified in this section for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $3,500.</text></subsection> <subsection id="H6079E999D12A4DFCBD2CC55B96B37419"><enum>(c)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this section for a fiscal year shall be equal to the sum of—</text>
<paragraph id="HE38D6B2CAC304FF682F93B26EA39F1F1"><enum>(1)</enum><text display-inline="yes-display-inline">the amount imposed under this section for the prior fiscal year; and</text></paragraph> <paragraph id="HD823211144AC45CCB4508C9802BB578C"><enum>(2)</enum><text display-inline="yes-display-inline">rounded to the next lowest multiple of $10, the amount referred to in paragraph (1), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year. </text></paragraph></subsection>
<subsection id="H55299D12187C4856AD56670A377D6B07" commented="no"><enum>(d)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">During any fiscal year, the total amount of fees received under this section shall be subject to the following:</text> <paragraph id="H1501DDBDF59F433891B8987F4D068B63" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">25 percent of fees received under this section shall be credited to the Department of Health and Human Services to retain and spend without further appropriation and shall be used for the purpose of conducting background checks of potential sponsors of unaccompanied alien children and of adults residing in potential sponsors’ households, which shall include, at a minimum—</text>
<subparagraph id="HEF80648D87334FCF81F1B7A225C9EB47" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the name of the individual and all adult residents of the individual’s household;</text></subparagraph> <subparagraph id="H77786919E361462198860C91ACA28CC4" commented="no"><enum>(B)</enum><text>the social security number of the individual and all adult residents of the individual’s household;</text></subparagraph>
<subparagraph id="H7D5BB373F6304E02B48103238272F356" commented="no"><enum>(C)</enum><text>the date of birth of the individual and all adult residents of the individual’s household;</text></subparagraph> <subparagraph id="H9805218943A04615B001BE6DCFD616E0" commented="no"><enum>(D)</enum><text>the validated location of the individual’s residence where the child will be placed;</text></subparagraph>
<subparagraph id="H24E53B19FEC8489CA5292C82004ACFC4" commented="no"><enum>(E)</enum><text>the immigration status of the individual and all adult residents of the individual’s household;</text></subparagraph> <subparagraph id="H82CDE4CFCA2146118F80C6CFCB7FEF35" commented="no"><enum>(F)</enum><text>contact information for the individual and all adult residents of the individual’s household; and</text></subparagraph>
<subparagraph id="H52084CE7138E46FA9E96CB5DA49DF976" commented="no"><enum>(G)</enum><text>the results of all background and criminal records checks for the individual and all adult residents of the individual’s household, which shall include at a minimum an investigation of the public records sex offender registry, a public records background check, and a national criminal history check based on fingerprints.</text></subparagraph></paragraph> <paragraph id="HB6B38622ED3C4C56A0D94476F5317FC8" commented="no"><enum>(2)</enum><text>Any amounts not credited to the Department of Health and Human Services shall be deposited into the general fund of the Treasury.</text></paragraph></subsection>
<subsection id="H95F487BED2714FE9A1788F62683FEAB9"><enum>(e)</enum><header>No waiver</header><text>A fee imposed under this section shall not be waived or reduced.</text></subsection></section> <section id="H7D181AE059FC47F6B47D5E4F502A7C18"><enum>70008.</enum><header>Visa integrity fee</header> <subsection id="H7CFF88EC7C514AE5825B8B1DB780CABD"><enum>(a)</enum><header>Visa integrity Fee</header> <paragraph id="H1EC1CE728B3444F999D8AB2D08C444FF"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose a fee in an amount specified in this subsection on each alien issued a nonimmigrant visa upon the issuance of such alien’s nonimmigrant visa.</text></paragraph>
<paragraph id="H941409FAB18C485AA4E1157C52FBB78E"><enum>(2)</enum><header>Initial amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $250.</text></paragraph> <paragraph id="HAF8DEB549E2744759B2F91227A468E19"><enum>(3)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of—</text>
<subparagraph id="HC4EA8A268EF2472D92B648D15D474FDC"><enum>(A)</enum><text display-inline="yes-display-inline">the amount imposed under this section for the prior fiscal year; and</text></subparagraph> <subparagraph id="H579A3D88112C4E3B97B3610125EEC6E0"><enum>(B)</enum><text display-inline="yes-display-inline">rounded to the next lowest multiple of $1, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year. </text></subparagraph></paragraph>
<paragraph id="HBF42482A6D214CFD910D8B430B9E97D4"><enum>(4)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">The fees received under this subsection that are not reimbursed in accordance with subsection (b) shall be deposited in the general fund of the Treasury.</text></paragraph> <paragraph id="H57CD4B2F49AA4284BD0C783313DD763A"><enum>(5)</enum><header>No waiver</header><text>A fee imposed under this subsection shall not be waived or reduced.</text></paragraph></subsection>
<subsection id="H44E578393EBB4C619A565D6E43676ECA"><enum>(b)</enum><header>Fee Reimbursement</header><text display-inline="yes-display-inline">The Secretary of Homeland Security may reimburse to an alien a fee imposed under this section on that alien for the issuance of a nonimmigrant visa after the expiration of such nonimmigrant visa’s period of validity if the alien demonstrates that—</text> <paragraph id="H9EF3AC18493F4BA6A8E298BADA69C328"><enum>(1)</enum><text>the alien has not sought admission during such period of validity; </text></paragraph>
<paragraph id="HB88A274AFD4B4517BA1214D51EA428CF"><enum>(2)</enum><text>the alien, after admission to the United States pursuant to such nonimmigrant visa, complied with all conditions of such nonimmigrant visa, including the condition that an alien shall not accept unauthorized employment, and that the alien departed the United States not later than 5 days after the date on which the alien was authorized to remain in the United States; or</text></paragraph> <paragraph id="H15E769BC259F4AC7B961C3DB6CC0737C"><enum>(3)</enum><text>the alien filed to extend, change, or adjust such status within the nonimmigrant visa’s period of validity. </text></paragraph></subsection></section>
<section id="H311E305BE76947E6977CC2FC680508A6" section-type="subsequent-section"><enum>70009.</enum><header>Form I–94 fee</header>
<subsection id="HD04CDC8CA1FB41EEA0A804617536344D"><enum>(a)</enum><header>Fee authorized</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose a fee in an amount specified in subsection (b) on any alien upon the alien’s application for a Form I–94 Arrival/Departure Record. </text></subsection> <subsection id="HD71901FCC430478081608132FBE9FC5C"><enum>(b)</enum><header>Fee specified</header> <paragraph id="H7B6C016AD3DB47D9AA5FF33A3D592F12"><enum>(1)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $24.</text></paragraph>
<paragraph id="H884253ADD8AF42DFBBF69757F084CD8F"><enum>(2)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text> <subparagraph id="H45FC26023CDB4C98AD331ECC7F534157"><enum>(A)</enum><text display-inline="yes-display-inline">the amount imposed under this section for the prior fiscal year; and</text></subparagraph>
<subparagraph id="H40EBE470F5674FE69F647985950958FD"><enum>(B)</enum><text>the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph></subsection> <subsection id="H0AB068D94DAC46F68F4A8E2A6C9B5912" commented="no"><enum>(c)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">During any fiscal year, the total amount of fees received under this section shall be subject to the following:</text>
<paragraph id="H897D89F67DF742D5882E2113589918E0" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">20 percent of the fee collected under this section for each application shall be deposited pursuant to section 286(q)(2) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1356">8 U.S.C. 1356(q)(2)</external-xref>) and made available to U.S. Customs and Border Protection to retain and spend without further appropriation for the purpose of processing Form I–94.</text></paragraph> <paragraph id="H0B30E7D9EC5B404EAAA8F551030E1FBD" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">Any amounts not credited to U.S. Customs and Border Protection shall be deposited in the general fund of the Treasury.</text></paragraph></subsection>
<subsection id="H82F756474D8C4F099FAE8ED530F1750B"><enum>(d)</enum><header>No waiver</header><text>A fee imposed under this section shall not be waived or reduced.</text></subsection></section> <section id="HCF13B89EA5F4461F9D588EDC90ABD985" section-type="subsequent-section"><enum>70010.</enum><header>Yearly asylum fee</header> <subsection id="H8809517148E04B488A08D5584E1AEF51"><enum>(a)</enum><header>Fee authorized</header><text>In addition to any other fee authorized by law, for each calendar year that an alien’s application for asylum remains pending, the Secretary of Homeland Security or the Attorney General, as applicable, shall impose a fee in an amount specified in subsection (b) on that alien.</text></subsection>
<subsection id="H4D2A0686D3D4412BAE0C7A4F770B6F71"><enum>(b)</enum><header>Fee specified</header>
<paragraph id="H3FDE1CD649BD4351998272F636DEECB1"><enum>(1)</enum><header>Initial amount</header><text display-inline="yes-display-inline">The amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary and the Attorney General may by rule provide, but in any event not less than $100.</text></paragraph> <paragraph id="H8DC4C54C072D41CAA015E46B717E6459"><enum>(2)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of—</text>
<subparagraph id="H5064521ED1224A1EA8BCEEF652C947A5"><enum>(A)</enum><text>the amount imposed under this section for the prior fiscal year; and</text></subparagraph> <subparagraph id="H0906E7068CC940029BAB4AF327869B0E"><enum>(B)</enum><text>the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph></subsection>
<subsection id="H020D8A785BF34547B486081DFD7488D4"><enum>(c)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">The fees received under this section shall be deposited in the general fund of the Treasury.</text></subsection> <subsection id="HF33C4F467A5C4058A2E422EAF182A266"><enum>(d)</enum><header>No waiver</header><text display-inline="yes-display-inline">A fee imposed under this section shall not be waived or reduced.</text></subsection></section>
<section id="H6AEB924D34BC426F803B8BE6D6160577" section-type="subsequent-section"><enum>70011.</enum><header>Fee for continuances granted in immigration court proceedings</header>
<subsection id="H25627F66513C4B7D989B32B40E995E86"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Attorney General shall impose a fee in an amount specified in subsection (b) on any alien who requests and is granted a continuance by an immigration judge for each such continuance. </text></subsection> <subsection id="H6FC8C9D7E866477EB67C54E587900AD1"><enum>(b)</enum><header>Fee specified</header> <paragraph id="H9578BEC768BB4608822F5D1027CCF272"><enum>(1)</enum><header>Initial amount</header><text display-inline="yes-display-inline">The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $100.</text></paragraph>
<paragraph id="H23F2356D62174E4CA64E669AE4989772"><enum>(2)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text> <subparagraph id="HC83038B567E6410695DB8C31E8998866"><enum>(A)</enum><text display-inline="yes-display-inline">the amount imposed under this section for the prior fiscal year; and</text></subparagraph>
<subparagraph id="HB23D92A3E4E4474FB9A89D6498841BA3"><enum>(B)</enum><text>the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph></subsection> <subsection id="HB79D99D4CB654FD59BF3169499A66445"><enum>(c)</enum><header>Crediting of certain funds</header><text>Amounts received as fees under this section shall be deposited in the general fund of the Treasury.</text></subsection>
<subsection id="H6AE07801172D4E2FA3456D0FF97F363C"><enum>(d)</enum><header>No waiver</header><text display-inline="yes-display-inline">A fee imposed under this section shall not be waived or reduced, except no fee shall be imposed on any alien whose request for a continuance is granted based on exceptional circumstances (as such term is defined in section 240 of the Immigration and Nationality Act). </text></subsection></section> <section id="H76B4A36586984848987DF5E84BD71E97" section-type="subsequent-section"><enum>70012.</enum><header>Fee relating to renewal and extension of employment authorization for parolees</header> <subsection id="HC663AD9367704F98949FC09DBA972385"><enum>(a)</enum><header>Fee imposed</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, for a parolee who seeks a renewal or extension of employment authorization based on a grant of parole, the Secretary of Homeland Security shall impose a fee in an amount specified in subsection (b).</text></subsection>
<subsection id="H73AD5FDCD2094B1E8B9D363522701DCC" display-inline="no-display-inline"><enum>(b)</enum><header>Fee specified</header>
<paragraph id="H37DC3C3971C9431DA19CB87020E643C6"><enum>(1)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $550.</text></paragraph> <paragraph id="H93D2380CFFEC4B12B6E201F680579AE1"><enum>(2)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<subparagraph id="H26744717487F4573A006018CBBF462A4"><enum>(A)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></subparagraph> <subparagraph id="H93B19996EB2D4DBCB8DE51054F9CB4FA"><enum>(B)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph></subsection>
<subsection id="H810EC4F2B7B74C8DB042F22C663FC537"><enum>(c)</enum><header>In general</header><text display-inline="yes-display-inline">The employment authorization for any alien paroled into the United States, or any renewal or extension thereof, shall be valid for a period of not more than six months.</text></subsection> <subsection id="HC2D843E876F14FB284DB225A5DB35396"><enum>(d)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">The fees received under this section shall be deposited into the general fund of the Treasury.</text></subsection>
<subsection id="HA20320DB4F484FDF8D886A3C8E74685A"><enum>(e)</enum><header>No waiver</header><text display-inline="yes-display-inline">A fee imposed under this subsection shall not be waived or reduced.</text></subsection></section> <section id="H7257B479944540B3BFEDCF19DA01D2FE" section-type="subsequent-section"><enum>70013.</enum><header>Fee relating to termination, renewal, and extension of employment authorization for asylum applicants</header> <subsection id="H74DAD52E731C4E4095B5F009748CDE4D"><enum>(a)</enum><header>Fee imposed</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, for any alien who applies for asylum and who seeks a renewal or extension of employment authorization based on such application, the Secretary of Homeland Security shall impose a fee of not less than $550 for each such renewal or extension, in accordance with subsection (b). </text></subsection>
<subsection id="H918A899D6CEE41BEAC3DD62388261F28"><enum>(b)</enum><header>Employment authorization</header><text display-inline="yes-display-inline">The Secretary of Homeland Security may provide employment authorization to an applicant for asylum for a period of not more than six months. Each renewal or extension thereof shall also be valid for a period of not more than six months.</text></subsection> <subsection id="HB5B0A131D6674CCBBC877FFA4E809532"><enum>(c)</enum><header>Termination</header><text>Each initial employment authorization, or renewal or extension of such authorization, shall terminate as follows: </text>
<paragraph id="HF30517101F8C4841BEB2FED439DEE258"><enum>(1)</enum><text>Immediately following the denial of an asylum application by an asylum officer, unless the case is referred to an immigration judge. </text></paragraph> <paragraph id="HA0BCD9F9A6E94B4D859698D3B8AF8C2C"><enum>(2)</enum><text>On the date that is 30 days after the date on which an immigration judge denies an asylum application, unless the alien makes a timely appeal to the Board of Immigration Appeals. </text></paragraph>
<paragraph id="HB3C7E808FDBA4999B729C8ECDA14D5E2"><enum>(3)</enum><text>Immediately following the denial by the Board of Immigration Appeals of an appeal of a denial of an asylum application.</text></paragraph></subsection> <subsection id="H77418DE037AF4C79881507A07D57F75F"><enum>(d)</enum><header>Prohibition</header><text>The Secretary of Homeland Security shall not grant, renew, or extend employment authorization to an alien if the alien was previously granted employment authorization as an applicant for asylum and the employment authorization was terminated pursuant to a circumstance described in subsection (c), unless a Federal Court of Appeals remands the alien’s case to the Board of Immigration Appeals. </text></subsection>
<subsection id="H9E094ADE91C54BA3AB6D462FEF4C0E1B"><enum>(e)</enum><header>Crediting of funds</header><text>The total amount of fees received under this section shall be deposited in the general fund of the Treasury.</text></subsection> <subsection id="H5EDB609B17BD454B8D3CA2691650963F"><enum>(f)</enum><header>No waiver</header><text display-inline="yes-display-inline">A fee imposed under this subsection shall not be waived or reduced.</text></subsection></section>
<section id="H469C3E4F023F40DEB494A0620D625073" section-type="subsequent-section"><enum>70014.</enum><header>Fee relating to renewal and extension of employment authorization for aliens granted temporary protected status</header>
<subsection id="H2AE4206DD7F04420828989B0C5738712"><enum>(a)</enum><header>Fee imposed</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, for any alien who seeks a renewal or extension of employment authorization based on a grant of temporary protected status, the Secretary of Homeland Security shall impose a fee in an amount specified in subsection (b) at the time of each such renewal or extension.</text></subsection> <subsection id="HDC47A367D1984C969FD81789581FA05C" display-inline="no-display-inline" commented="no"><enum>(b)</enum><header>Fee specified</header> <paragraph id="HD612D17AFD15456AB7EEBD042E416CC7" commented="no"><enum>(1)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $550.</text></paragraph>
<paragraph id="H822C344074C84F76B3EF5207EFF821E7" commented="no"><enum>(2)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text> <subparagraph id="H0626E4E1D0B547A7B5F3343AF77082D4" commented="no"><enum>(A)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></subparagraph>
<subparagraph id="H10828E02330E4EFBB3629DE6E137E0AF" commented="no"><enum>(B)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph></subsection> <subsection id="HBE1B37E3E9414A54AA333C7398D3EF7C"><enum>(c)</enum><header>Employment authorization</header><text display-inline="yes-display-inline">Any employment authorization for an alien granted temporary protected status, or any renewal or extension thereof, shall be valid for a period of not more than six months. </text></subsection>
<subsection id="H3A2A1451E7D44356A24EBA48B825AE65"><enum>(d)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">The fees received under this section shall be deposited into the general fund of the Treasury.</text></subsection> <subsection id="H2566C34EFE5F4A1D9AC365250EA05ABF"><enum>(e)</enum><header>No waiver</header><text display-inline="yes-display-inline">A fee imposed under this subsection shall not be waived or reduced.</text></subsection></section>
<section id="H209732C927534E05B6DDB42E16AD9186"><enum>70015.</enum><header>Diversity immigrant visa fees</header>
<subsection id="HEB4886DDB3FE4D26A11566D99F73DD0A"><enum>(a)</enum><header>Fee for filing a diversity immigrant visa application</header>
<paragraph id="H1510A81D3DA54B8BAC21DD7F0592C59E"><enum>(1)</enum><header>In general</header><text>In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose a fee on any alien who files an application for a diversity immigrant visa as described in section 203(c) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1153">8 U.S.C. 1153(c)</external-xref>), in the amount specified in this subsection at the time such application is filed.</text></paragraph> <paragraph id="HFFC2A633ECB2424D9A3C1B5B6B59F877" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Fee specified</header> <subparagraph id="H292D2BC7047F44FDBE7EC048DAD7E1FA" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $400.</text></subparagraph>
<subparagraph id="HC73CF5528B554A2593D270470C4FABC9" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text> <clause id="H98E0DC48D36C4545A73C0787837F5D79" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause>
<clause id="HEF10681AB284414AAE7C9E438CCA92A2" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph></subsection> <subsection id="H37D55807947F406ABC024908D53BC994"><enum>(b)</enum><header>Fee for aliens who register for the diversity immigrant visa program</header> <paragraph id="H00AB809EF2694697AE62C5142DA61D84"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose a fee on any alien who registers for the diversity immigrant visa program, as described in section 203(c) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1153">8 U.S.C. 1153(c)</external-xref>), in the amount specified in this subsection at the time of registration.</text></paragraph>
<paragraph id="HF708991178884FBF9B4EB45B96539589"><enum>(2)</enum><header>Fee specified</header>
<subparagraph id="HD1E60C8F8BEA4285BBF27CC7CA8ECC34" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $250.</text></subparagraph> <subparagraph id="HC961B925831942AA9798F2EC37F1B788" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<clause id="HE9AD07FDA6FE49D1A3D02EEE3BC1B5D8" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause> <clause id="H27345981C5CF453295BE89DCBBBEE27C" commented="no"><enum>(ii)</enum><text>the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H1B35000D626E4E28929F891AE221D7B2" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Funds</header><text display-inline="yes-display-inline">During any fiscal year, the total amount of fees received under this section shall be subject to the following: </text> <paragraph id="HBE047F8BBE2B4AC98D62F6302B8003F8" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">10 percent of fees received shall be used to detect and prevent fraud in the diversity immigrant visa program and to offset costs associated with such program.</text></paragraph>
<paragraph id="H34944D2D7DD442A892F417B6775A0093" commented="no"><enum>(2)</enum><text>10 percent of fees received shall be credited to U.S. Immigration and Customs Enforcement to retain and spend without further appropriation for the purpose of detention and immigration enforcement and removal operations.</text></paragraph> <paragraph id="H97533F2EA7FC4E6F94E4ED38A95FA326" commented="no"><enum>(3)</enum><text>Any amounts not used or credited under this subsection shall be deposited into the general fund of the Treasury.</text></paragraph></subsection>
<subsection id="HEBFFB7171B1749C3A31C8CACEE90F32B"><enum>(d)</enum><header>No waiver</header><text display-inline="yes-display-inline">A fee imposed under this section shall not be waived or reduced.</text></subsection></section> <section id="H35DAF9E663F74D908E3ECDF609D982B5" section-type="subsequent-section"><enum>70016.</enum><header>EOIR fees</header> <subsection id="HEC92F8C44BF14D498EFDF60F419594B3"><enum>(a)</enum><header>Fee for filing an application to adjust status to that of a lawful permanent resident</header> <paragraph id="H4CC5CF2C98CB4516A4FC4884B957E307"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files with an immigration court an application to adjust the alien’s status to that of a lawful permanent resident, or whose application to adjust status to that of a lawful permanent resident is adjudicated in immigration court, a fee in the amount specified in this subsection at the time such application is filed, or, as applicable, prior to the adjudication of such application in immigration court.</text></paragraph>
<paragraph id="HB85A2918D8BB414192BC3147B9FF2BEB"><enum>(2)</enum><header>Fee specified</header>
<subparagraph id="H8D7E1E9B3189462A877FBE9F3EFA5EDC" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $1,500.</text></subparagraph> <subparagraph id="H1B4125807AC646638E5F7E878974DD88" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<clause id="H8820F85F940E4D838B3BA2578514D2C6" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause> <clause id="HA9224B37F6914772BBF11522AC16CE23" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph>
<paragraph id="HBAEAA965F89442A0B64A6AE2FCA316A7"><enum>(3)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 50 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection> <subsection id="H694FE5E1B7AE437ABF780CC881E016ED"><enum>(b)</enum><header>Fee for filing an application for waiver of grounds of inadmissibility</header> <paragraph id="HF151DF99556E4C7EA1F40F0C0B53D1BE"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files with an immigration court an application for waiver of grounds of inadmissibility, or whose application for waiver of grounds of inadmissibility is adjudicated in immigration court, a fee in the amount specified in this subsection at the time such application is filed, or, as applicable, prior to the adjudication of such application in immigration court.</text></paragraph>
<paragraph id="HE3190FBAE699492EBD8623D518300D1B"><enum>(2)</enum><header>Fee specified</header>
<subparagraph id="HF823DEFED8D647999591D6E37066D995" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $1,050.</text></subparagraph> <subparagraph id="H55739A060C1541B6AC129A02B3FB68C7" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<clause id="H44F27C78C73C42F7AE4F0C23065A47C0" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause> <clause id="H5AD3FBDD9FA7426A94987170831AED4F" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph>
<paragraph id="H72AB8FF792B0458DBABD631AEE4B21BC"><enum>(3)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection> <subsection id="HAF93F98DD3644ECB93610DC259DD3101"><enum>(c)</enum><header>Fee for filing an application for temporary protected status</header> <paragraph id="HF95D15DB2CCF4CA8A5B0D67F5568DFA4"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files with an immigration court an application for temporary protected status, or whose application for temporary protected status is adjudicated in immigration court, a fee in the amount specified in this subsection at the time such application is filed or, as applicable, prior to the adjudication of such application in immigration court.</text></paragraph>
<paragraph id="H384E3BDCD1ED481C99F35352D7C6459D" display-inline="no-display-inline"><enum>(2)</enum><header>Fee specified</header>
<subparagraph id="H3F97A7FB89A64ADBA379A5A436DFC90E" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $500.</text></subparagraph> <subparagraph id="HA7E1FE0A3A164EF2BC4F48496C60BCB7" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<clause id="H79E38347F97D421C811D5826E165DC14" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause> <clause id="H613E8B025BBB45F3AE6A4986E000F0FE" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph>
<paragraph id="H1A5DE60F93D143428A06464C566EEA94"><enum>(3)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection> <subsection id="HABBCE323D1AB48569B458793F8D6D928"><enum>(d)</enum><header>Fee for filing an appeal from a decision of an immigration judge</header> <paragraph id="HB3A90CDF24274A55B94B174C79FD084D"><enum>(1)</enum><header>In general</header><text>In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files any appeal from a decision of an immigration judge a fee in the amount specified in this subsection at the time such appeal is filed.</text></paragraph>
<paragraph id="H5A0D64B8825B43C79E3559F569E13910"><enum>(2)</enum><header>Fee specified</header>
<subparagraph id="H0F89F3B2A1594452BEB5BB25B87073BE" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $900.</text></subparagraph> <subparagraph id="HAFB3B14C3BE442E7BBDD28F43AD1244F" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<clause id="HE32BB46ED70242CBAA58EC869F4D3E63" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause> <clause id="HFDAFE5071F81441FA9B7D55E65A21F04" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph>
<paragraph id="H1D24E05CCBFE4059A7CF23330B3BC03E"><enum>(3)</enum><header>Exception</header><text>The fee described in this section shall not apply to the appeal of a bond decision.</text></paragraph> <paragraph id="HF4579E678F0B42D8AD363CCF2D045056"><enum>(4)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection>
<subsection id="H1E3B3211D3B24DF48C8CCC955078FFD5"><enum>(e)</enum><header>Fee for filing an appeal from a decision of an officer of the department of homeland security</header>
<paragraph id="HB3F2A6BEE81947CC8F39A1C06E47E122"><enum>(1)</enum><header>In general</header><text>In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files an appeal from a decision of an officer of the Department of Homeland Security a fee in the amount specified in this subsection at the time such appeal is filed.</text></paragraph> <paragraph id="H06AF868362D84596B8C332B95E74271A"><enum>(2)</enum><header>Fee specified</header> <subparagraph id="H130F06BB621948B7985D90706ECB3A8D" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $900.</text></subparagraph>
<subparagraph id="H1FC028AC11D649B28C3B5D4B48B6F496" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text> <clause id="HB0084DF0F71A4398B0E0E0780E7B5E18" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause>
<clause id="H964931F19CF74E33A3CCCD7068D5AF1D" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph> <paragraph id="H945707E6D21243989671A18042FDF80F"><enum>(3)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of Immigration and Nationality and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection>
<subsection id="H5167A13510EE46E8A729444A1E3AB056"><enum>(f)</enum><header>Fee for filing an appeal from a decision of an adjudicating official in a practitioner disciplinary case</header>
<paragraph id="H1DD8F457B33D4F529929B5FFE2E6E023"><enum>(1)</enum><header>In general</header><text>In addition to any other fees authorized by law, the Attorney General shall impose on any practitioner who files an appeal from a decision of an adjudicating official in a practitioner disciplinary case a fee in the amount specified in this subsection at the time such appeal is filed.</text></paragraph> <paragraph id="H4262614587764AA495C42A7849BB0D35"><enum>(2)</enum><header>Fee specified</header> <subparagraph id="H42D3DDBE3AAB4B93B753AB5F39662433" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $1,325.</text></subparagraph>
<subparagraph id="H06B49EF07D0D4DC294AFDF2DB432AE20" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text> <clause id="H4E3FF310E2774F4FB4C14A9882B9648B" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause>
<clause id="H1D6E1EC9A7EE4FE69FFF95B26B19BB7F" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph> <paragraph id="H6F26517CDA6A44F5ACFC613C976F021E"><enum>(3)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection>
<subsection id="H72F1174039984A1EA848F2198BA77306"><enum>(g)</enum><header>Fee for filing a motion to reopen or a motion to reconsider</header>
<paragraph id="H2CCF455BA91842789F6F16EB4C3AE94C"><enum>(1)</enum><header>In general</header><text>In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files a motion to reopen or motion to reconsider a decision of an immigration judge or the Board of Immigration Appeals a fee in the amount specified in this subsection at the time such motion is filed.</text></paragraph> <paragraph id="H2E94B06B7977480AA8E6C3061EF045D4"><enum>(2)</enum><header>Fee specified</header> <subparagraph id="HE240EF06D4EA4A81AE16E046A0A3C334" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $900.</text></subparagraph>
<subparagraph id="H58680180A96D4F9C8B197447C54117D7" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text> <clause id="HDFC1B1A9F1754059B31028380B44333D" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause>
<clause id="H3ABF2E35D35E44B084D45A1C5C0D1F89" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph> <paragraph id="HFAED47CCD28A45E79C889BD7F578D55B"><enum>(3)</enum><header>Exceptions</header><text>The fee described in this section shall not apply to any motion that is:</text>
<subparagraph id="HBCD1631B4E48461CB7F20502DD1E0690"><enum>(A)</enum><text>a motion to reopen a removal order entered in absentia if the motion is filed under section 240(b)(5)(C)(ii) of the Immigration and Nationality Act; or</text></subparagraph> <subparagraph id="H4436BF30DC4E49AA8BE136ACBD7DFF12"><enum>(B)</enum><text>a motion to reopen a deportation order entered in absentia if the motion is filed under section 242B(c)(3)(B) of the Immigration and Nationality Act, as the section existed prior to April 1, 1997.</text></subparagraph></paragraph>
<paragraph id="H63E4E660A3F44E21800544734F05F7E6"><enum>(4)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection> <subsection id="H62CDE2C3356947B98FF8B9B721DC3901"><enum>(h)</enum><header>Fee for filing an application for suspension of deportation</header> <paragraph id="H81AED83B24C04AC899761D5A9940582C"><enum>(1)</enum><header>In general</header><text>In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files with an immigration court an application for suspension of deportation a fee in the amount specified in this subsection at the time such application is filed.</text></paragraph>
<paragraph id="H81EE1113945F403C9B45F3833DF8E03C"><enum>(2)</enum><header>Fee specified</header>
<subparagraph id="HADD7BDEEB7CC43CC8ABC55F01E6CA2A9" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $600.</text></subparagraph> <subparagraph id="HB59F1ABB371B486AB8C0FB423C55E06A" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<clause id="H2BC298E06C804126B73CC9FBC79BCB5D" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause> <clause id="HD5D8CC0C0EF34F6B9829F51879FF42A9" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph>
<paragraph id="HDB8B4EB0A5024AB59FB2DAE0EF916F49"><enum>(3)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection> <subsection id="H2A8ACBE767354086BFDF23A02292A3B4" commented="no"><enum>(i)</enum><header>Fee for filing an application for cancellation of removal for certain permanent residents</header> <paragraph id="HF717689B150946718B58BF1E414C7E76" commented="no"><enum>(1)</enum><header>In general</header><text>In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files with an immigration court an application for cancellation of removal for certain permanent residents a fee in the amount specified in this subsection at the time such application is filed.</text></paragraph>
<paragraph id="HDCA1943F1FD34917A122E32D209C930E" commented="no"><enum>(2)</enum><header>Fee specified</header>
<subparagraph id="H871723D3A0A14D74B3F1E030BD5F4644" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $600.</text></subparagraph> <subparagraph id="HB2C44DD9497C4190875D6A22BC9E6C66" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<clause id="HA9945F8FC1664B4EB762652180D60048" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause> <clause id="HAF748492C7B8463580C074940A91348A" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph>
<paragraph id="H7DC0A119F68B4F8488C9E98F43B3AA8F" commented="no"><enum>(3)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection> <subsection id="H3B729BAF701343D4B2DBD979D46F19CB"><enum>(j)</enum><header>Fee for filing an application for cancellation of removal and adjustment of status for certain nonpermanent residents</header> <paragraph id="H1F1C33EDC2F044D2A6B8669F0738F4F3"><enum>(1)</enum><header>In general</header><text>In addition to any other fees authorized by law, the Attorney General shall impose on any alien who files with an immigration court an application for cancellation of removal and adjustment of status for certain nonpermanent residents a fee in the amount specified in this subsection at the time such application is filed.</text></paragraph>
<paragraph id="H1D51800F42FB4D51B1FB028139C13047"><enum>(2)</enum><header>Fee specified</header>
<subparagraph id="H51CC65E21E3E47648684C341AFAD03F5" commented="no"><enum>(A)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Attorney General may by rule provide, but in any event not less than $1,500.</text></subparagraph> <subparagraph id="H348AEE248398479B8B8707B35DDE9B24" commented="no"><enum>(B)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of— </text>
<clause id="H4EAB97D4417142CFB1EE5CD33E67E75F" commented="no"><enum>(i)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></clause> <clause id="H7189E603501246D7B2BD902D9AB8F94B" commented="no"><enum>(ii)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in clause (i), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></clause></subparagraph></paragraph>
<paragraph id="H4384ED43914F428EA492A7494B11BC0C"><enum>(3)</enum><header>Crediting certain funds</header><text display-inline="yes-display-inline">During any fiscal year, not more than 25 percent of the total amount of fees received under this section shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) of the Immigration and Nationality Act and credited to the Executive Office for Immigration Review to retain and spend without further appropriation. Any amounts not credited under the previous sentence shall be deposited into the general fund of the Treasury.</text></paragraph></subsection> <subsection id="HE0EE8C9E700F475DA8446F2537C3F82B"><enum>(k)</enum><header>No waiver</header><text>Any fee imposed under this section shall not be waived or reduced.</text></subsection>
<subsection id="HB5981459A9794FFBB4101EFE28E44845"><enum>(l)</enum><header>Condition on funds</header><text display-inline="yes-display-inline">No fees received under this section shall be used to fund the Legal Orientation Program or any successor program.</text></subsection></section> <section id="H54D42B1B411A4251BCC71B1BD04AF9F9" section-type="subsequent-section" display-inline="no-display-inline"><enum>70017.</enum><header>ESTA fee</header><text display-inline="no-display-inline">Section 217(h)(3)(B) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1187">8 U.S.C. 1187(h)(3)(B)</external-xref>) is amended—</text>
<paragraph id="HE2AFEE0B2D684062836A23A826ABB732"><enum>(1)</enum><text>in clause (i)—</text> <subparagraph id="H08BDAE3C599440049ED2AE87E47A5A1D"><enum>(A)</enum><text>in subclause (I), by striking <quote>and</quote> at the end;</text></subparagraph>
<subparagraph id="HB35D4421BA224AAAAA304368B1977884"><enum>(B)</enum><text>in subclause (II)—</text> <clause id="H17E2681A5DFD41838859CCB7098D6F8B"><enum>(i)</enum><text>by inserting after <quote>an amount</quote> the following <quote>of not less than $10</quote>; and</text></clause>
<clause id="H0A3323CD685A4751A4E44B8BC43BAB3B"><enum>(ii)</enum><text>by striking the period at the end and inserting <quote>; and</quote>; and</text></clause></subparagraph> <subparagraph id="H14846C38CC104330885BEA273B548753"><enum>(C)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" id="HA9BF6552AAB540B0A3BB288726699B0C" display-inline="no-display-inline">
<subclause id="H44D828AF503D45CEBEA18989C8AA018D"><enum>(III)</enum><text display-inline="yes-display-inline">not less than $13.</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H96010D6C19D64313B50213FB6AA8472E"><enum>(2)</enum><text>in clause (ii)—</text>
<subparagraph id="HC746A540FC25482DA315513D128178AB" commented="no"><enum>(A)</enum><text>by striking <quote>Amounts collected under clause (i)(I)</quote> and inserting the following: </text> <quoted-block style="OLC" id="HEE7D6091C3A44DEE98B0E51437CD89F1" display-inline="no-display-inline"> <subclause id="HAD990A6B7D1B42FCB8C0D0B9ACD4FA02" commented="no"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">Of the amounts collected under clause (i)(I) during a fiscal year, not more than $20,000,000 </text></subclause><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H54B34D96507C4E8C928118FB167C42D6"><enum>(B)</enum><text>by inserting before the period at the end of the first sentence the following: <quote>, and the remainder of the amounts collected under clause (i)(I) shall be deposited in the general fund of the Treasury</quote>; and </text></subparagraph> <subparagraph id="H5268EF9C02D54E4C966C0C2E9754F3F0"><enum>(C)</enum><text>by inserting after <quote>to pay the costs incurred to administer the System.</quote> the following: <quote>Amounts collected under clause (i)(III) shall be deposited in the general fund of the Treasury.</quote>; </text></subparagraph></paragraph>
<paragraph id="HFD3282E4BD7F4900B283913C95E0481B"><enum>(3)</enum><text>in clause (iii), by striking <quote>2028</quote> and inserting <quote>2034</quote>; and </text></paragraph> <paragraph id="HC9086828256C4830A415199BDEA0AB91"><enum>(4)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" id="H635057D6A4724A349FE27691923EC8D2" display-inline="no-display-inline">
<clause id="H21EA40BCED6D4073B7C9FCDDCD324091"><enum>(iv)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in clause (i)(II) for a fiscal year shall be equal to the sum of—</text> <subclause id="HAFCD72BE3BE143429D34364506F77008"><enum>(I)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></subclause>
<subclause id="HE8AFBCE242974BE1A04729C370DCE0B0"><enum>(II)</enum><text>the amount referred to in subclause (I), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subclause></clause><after-quoted-block>. </after-quoted-block></quoted-block></paragraph></section> <section id="HD016DCADA0B14231A81B0A4F17071EFD" display-inline="no-display-inline" section-type="subsequent-section"><enum>70018.</enum><header>Immigration user fees</header><text display-inline="no-display-inline">Section 286 of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1356">8 U.S.C. 1356</external-xref>) is amended—</text>
<paragraph id="HC628DC4110CC476B9F8CC58FE5603727"><enum>(1)</enum><text>in subsection (d)—</text> <subparagraph id="H92E46B3B1A88492FABEAFBBCA005F851"><enum>(A)</enum><text>by striking <quote>In addition to any other fee</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H9B5EBCE90AA6416D84FA7007C4D8D9E3" display-inline="no-display-inline">
<paragraph id="HC70C9D1D831D4744A2907DC8661CBEB4"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to any other fee</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H9F2F105F52A941FBA9BA3DEACC205504"><enum>(B)</enum><text>by inserting <quote>and except as provided in subsection (e),</quote> before <quote>the Attorney General shall charge and collect</quote>;</text></subparagraph>
<subparagraph id="H5810D591A584437A849396E79A86F335"><enum>(C)</enum><text>by striking <quote>$7</quote> and inserting <quote>a fee in an amount specified in paragraph (2)</quote>; and</text></subparagraph> <subparagraph id="HBEDC59CDB04A4ACA97E865B9CA0C7269" commented="no"><enum>(D)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" id="HA0EAE2C036724416ADDD4429DED1471A" display-inline="no-display-inline">
<paragraph id="H1E2F8096EFCB43F2802EA7A885545F0E" commented="no"><enum>(2)</enum><header>Initial amount</header><text display-inline="yes-display-inline">For purposes of this section, the amount specified in this section for fiscal year 2025 shall be not less than $10.</text></paragraph> <paragraph id="HC6FCE31E44644CAEBA371652BFDB2F2B" commented="no"><enum>(3)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of—</text>
<subparagraph id="HBC3D57A31A86435EAAE4661CB20E1CA3" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the amount imposed under this subsection for the prior fiscal year; and</text></subparagraph> <subparagraph id="HF6C059DAE50D4B7597FFB0FAD498677D" commented="no"><enum>(B)</enum><text>rounded to the next lowest multiple of $0.25, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph>
<paragraph id="H1AA6FECAA0654668B2631D0BD209F672" commented="no"><enum>(4)</enum><header>Crediting of amounts</header><text display-inline="yes-display-inline">Of amounts collected under this subsection $1 per individual for immigration inspection or preinspection as described in this subsection shall be deposited in the general fund of the Treasury.</text></paragraph> <paragraph id="HE3CF7E836231409799385054620CE80C"><enum>(5)</enum><header>No waiver</header><text display-inline="yes-display-inline">A fee imposed under this subsection shall not be waived or reduced.</text></paragraph><after-quoted-block>; and </after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H7F4BC43F1ED346A8A334AE9D1333D6F6"><enum>(2)</enum><text>in subsection (e)—</text> <subparagraph id="HC53AA113469F4D0CBA29C6BC26271BCA"><enum>(A)</enum><text>by striking paragraph (1);</text></subparagraph>
<subparagraph id="H382DFBC7593849B09ECA48996D0D80EA"><enum>(B)</enum><text>by redesignating paragraphs (2) and (3) as paragraphs (1) and (2); and</text></subparagraph> <subparagraph id="HEC4D7766E78A41C9BB8E26B2A819C33A"><enum>(C)</enum><text>in paragraph (2) (as redesignated by subparagraph (B) above), by striking <quote>The Attorney General shall charge</quote> and all that follows through <quote>this requirement shall not apply to</quote> and inserting the following: <quote>No fee shall be charged under subsection (d) for</quote>. </text></subparagraph></paragraph></section>
<section id="HA1C7002CE03046899775A9D65116A6F1"><enum>70019.</enum><header>EVUS fee</header>
<subsection id="HA25A24D2C526443BB41BCF118DAC82C2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"> In addition to any other fee authorized by law, the Secretary of Homeland Security shall impose on any alien subject to the Electronic Visa Update System a fee in the amount specified in this section at the time of such alien’s enrollment in the Electronic Visa Update System.</text></subsection> <subsection id="H132E3FC102B34E9A99C172F582178FA5"><enum>(b)</enum><header>Amount</header><text>For purposes of this section, the amount specified in this section for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $30.</text></subsection>
<subsection id="H9434622B48AA419D985D9B15BFAA3B49"><enum>(c)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this section for a fiscal year shall be equal to the sum of—</text> <paragraph id="H452CB8DBC8CD4BA29A0D80CD20D1D972"><enum>(1)</enum><text>the amount imposed under this section for the prior fiscal year; and</text></paragraph>
<paragraph id="HF755093BBA6845D2870E8A887860BBCA"><enum>(2)</enum><text>rounded to the next lowest multiple of $0.25, the amount referred to in paragraph (1), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></paragraph></subsection> <subsection id="H290254B1C0DD42F186B94ACF627C93C1"><enum>(d)</enum><header>Crediting of funds</header> <paragraph id="HFE4E963E9E1040808AE4CF7FC3323BA8"><enum>(1)</enum><header>In general</header><text>The fees received under this section shall be deposited into the CBP Electronic Visa Update System Account, less $5 per enrollment which shall be deposited into the general fund of the Treasury.</text></paragraph>
<paragraph id="HAFAA4BC5A47F470FA940E8BDC492037E"><enum>(2)</enum><header>Establishment</header><text>There is hereby established in the Treasury of the United States a separate account which shall be known as the <quote>CBP Electronic Visa Update System Account</quote>.</text></paragraph> <paragraph id="HDB0E3A419DC648F39FC73039B98B18D7"><enum>(3)</enum><header>Appropriation</header><text> Amounts deposited in the CBP Electronic Visa Update System Account are hereby appropriated to make payments and offset program costs as specified in this section without further appropriation necessary and shall remain available until expended for any U.S. Customs and Border Protection costs associated with administering the Electronic Visa Update System.</text></paragraph></subsection>
<subsection id="HE24DAB07BACF46ACBF5F6B5594474D48"><enum>(e)</enum><header>No waiver</header><text>A fee imposed under this section shall not be waived or reduced.</text></subsection></section> <section id="HBC27C3060B634E75BCFB0E9269C008B9" commented="no"><enum>70020.</enum><header>Fee for sponsor of unaccompanied alien child who fails to appear in immigration court</header> <subsection id="HFA7C4AF93E9F4EAC9E43699417EC8D31" commented="no"><enum>(a)</enum><header>Fee imposed</header><text display-inline="yes-display-inline">In addition to any other fee authorized by law, for the sponsor of an unaccompanied alien child, the Secretary of Health and Human Services shall impose a fee in an amount specified in subsection (b) prior to the unaccompanied alien child’s release to such sponsor.</text></subsection>
<subsection id="H9E8F13DB76704896A9B7E9284E2B1454" commented="no"><enum>(b)</enum><header>Fee specified</header>
<paragraph id="H6E5C55E8BB154A5C90BAD85A75BF2C12" commented="no"><enum>(1)</enum><header>Initial amount</header><text display-inline="yes-display-inline">The amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $5,000.</text></paragraph> <paragraph id="H1650BF9A39A3413BA24824C5A13B53B0" commented="no"><enum>(2)</enum><header>Subsequent adjustment</header><text display-inline="yes-display-inline">Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of—</text>
<subparagraph id="H91E93B5AF7D8478B88A4973A85096CEE" commented="no"><enum>(A)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></subparagraph> <subparagraph id="HC9A78EB3E1AE4F64A961F79D6468D0F9" commented="no"><enum>(B)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph></subsection>
<subsection id="H92740B5A1FA640F49CDD829A7E2EACA2" commented="no"><enum>(c)</enum><header>Fee reimbursement</header><text display-inline="yes-display-inline">At the conclusion of an unaccompanied alien child’s immigration court proceedings as an unaccompanied alien child, or upon the ending of such sponsor’s sponsorship of such unaccompanied alien child, the Secretary of Health and Human Services may reimburse to a sponsor a fee imposed under this section if such sponsor demonstrates that the unaccompanied alien child in the care of such sponsor was not ordered removed in absentia under section 240(b)(5) of the Immigration and Nationality Act. In the case of a sponsor of an unaccompanied alien child who was ordered removed in absentia and such order was rescinded under section 240(b)(5)(C) of the Immigration and Nationality Act, the sponsor may seek reimbursement of the fee under this section.</text></subsection> <subsection id="H54A5C31B9BD3412ABEA1A89D11F0DB96" commented="no"><enum>(d)</enum><header>Crediting of funds</header><text display-inline="yes-display-inline">The fees received under this section shall be deposited into the general fund of the Treasury.</text></subsection>
<subsection id="HB1F3327AE9B7487A93C6B4FD5117A20F" commented="no"><enum>(e)</enum><header>No waiver</header><text display-inline="yes-display-inline">A fee imposed under this subsection shall not be waived or reduced.</text></subsection></section> <section id="H1680359EB170465099176629BB14457C" commented="no"><enum>70021.</enum><header>Fee for aliens ordered removed in absentia</header> <subsection id="H1CF0EA41497D4BC9A330A6DC7AB55DCC" commented="no"><enum>(a)</enum><header>In general </header><text display-inline="yes-display-inline">As partial reimbursement for the cost of arresting an alien described in this section, the Secretary of Homeland Security shall impose a fee in an amount specified in this section on any alien who—</text>
<paragraph id="H8E2C73D60E534B06AC752CF9BF94DEDE" commented="no"><enum>(1)</enum><text>is ordered removed in absentia under section 240(b)(5) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1229a">8 U.S.C. 1229a(b)(5)</external-xref>); and</text></paragraph> <paragraph id="H2B32D81A24FF44F6B2FEDEB6CB39598A" commented="no"><enum>(2)</enum><text>is subsequently arrested by U.S. Immigration and Customs Enforcement.</text></paragraph></subsection>
<subsection id="H9CD8BB5C5DB44E2D8C3F5F438B0F6236" commented="no"><enum>(b)</enum><header>Initial amount</header><text>For purposes of this subsection, the amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $5,000.</text></subsection> <subsection id="H918B649AA3584DD8997A992A013BCAE5" commented="no"><enum>(c)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount for a fiscal year shall be equal to the sum of—</text>
<paragraph id="H9EA97C90759E4F05B9FEEDBA990D476E" commented="no"><enum>(1)</enum><text>the amount imposed under this section for the prior fiscal year; and</text></paragraph> <paragraph id="HB6F1AD6E127F4535ACEA6FE49E6AA66D" commented="no"><enum>(2)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in paragraph (1), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></paragraph></subsection>
<subsection id="H357AFB4AEA1E41BEB30CD032D6A6BEC3" commented="no"><enum>(d)</enum><header>Crediting of funds</header><text>The fees received under this section shall be deposited into the general fund of the Treasury.</text></subsection> <subsection id="HFF757CB855F64D7B850D940580DECA6F" commented="no"><enum>(e)</enum><header>No waiver</header><text>A fee imposed under this subsection shall not be waived or reduced.</text></subsection>
<subsection id="HBAA4FABC34B44624A6E9ABD5209A4FF3" commented="no"><enum>(f)</enum><header>Exception</header><text display-inline="yes-display-inline">The fee described in this section shall not apply to any alien who was ordered removed in absentia if such order was rescinded under section 240(b)(5)(C) of the Immigration and Nationality Act.</text></subsection></section> <section id="HCE9FB2A42C2B420CA2B7616BDD9658AD"><enum>70022.</enum><header>Customs and Border Protection inadmissible alien apprehension fee</header> <subsection id="H3D3BA317902A47D39F6CE24B525E86F4"><enum>(a)</enum><header>Fee imposed</header><text>In addition to any other fee authorized by law, for any inadmissible alien who is apprehended between ports of entry by U.S. Customs and Border Protection, the Secretary of Homeland Security shall impose a fee in an amount specified in subsection (b) at the time of such apprehension.</text></subsection>
<subsection id="H9A32C36DBABA4BDF9A89E88505F41D3C"><enum>(b)</enum><header>Fee specified</header>
<paragraph id="H026851B24FB7488DBFC79FD765F8D598"><enum>(1)</enum><header>Initial amount</header><text>The amount specified in this subsection for fiscal year 2025 shall be such amount as the Secretary may by rule provide, but in any event not less than $5,000.</text></paragraph> <paragraph id="H142C6E594112451F94E1D40B8896CE81"><enum>(2)</enum><header>Subsequent adjustment</header><text>Beginning in fiscal year 2026 and each fiscal year thereafter, the amount specified in this subsection for a fiscal year shall be equal to the sum of—</text>
<subparagraph id="H25BB23DD1F1E4BD2B5D27B83DB14C8A4"><enum>(A)</enum><text>the amount imposed under this subsection for the prior fiscal year; and</text></subparagraph> <subparagraph id="HEF10AD62BEDB4F18B5797C72EF77DF82"><enum>(B)</enum><text>rounded to the next lowest multiple of $10, the amount referred to in subparagraph (A), multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.</text></subparagraph></paragraph></subsection>
<subsection id="H72B30D54144746C28BA5024A894DEC5A"><enum>(c)</enum><header>Crediting of funds</header><text>The fees received under this section shall be deposited into the general fund of the Treasury.</text></subsection> <subsection id="HD8337BDE36CC4910A017CDF23A724A9E"><enum>(d)</enum><header>No waiver</header><text>A fee imposed under this section shall not be waived or reduced.</text></subsection></section>
<section id="HFB84857B512442248533FDEB1866D45E"><enum>70023.</enum><header>Amendment to authority to apply for asylum</header><text display-inline="no-display-inline">Section 208(d)(3) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1158">8 U.S.C. 1158(d)(3)</external-xref>) is amended—</text> <paragraph id="HA7C0ABF84B524B0298B3E545707C6440" commented="no"><enum>(1)</enum><text>in the first sentence, by striking <quote>may</quote> and inserting <quote>shall</quote>; </text></paragraph>
<paragraph id="H5E41871B47D7455394B91DC9EA794216"><enum>(2)</enum><text>by striking <quote>Such fees shall not exceed</quote> and all that follows; and</text></paragraph> <paragraph id="H5E24762CF04645A2B4EE2A0681803831"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after the first sentence <quote>Nothing in this paragraph shall be construed to limit the authority of the Attorney General to set additional adjudication and naturalization fees in accordance with section 286(m).</quote>. </text></paragraph></section></part>
<part id="H073C74D700F64CF49B33D719B57AF1D2"><enum>2</enum><header>Use of Funds</header>
<section id="HDA1B1F853C6944C0A0DC6ED9B6B5EC3D" section-type="subsequent-section"><enum>70100.</enum><header>Executive Office for Immigration Review</header>
<subsection id="H0F767E3963EB4C9A81C82739896571B4"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Executive Office for Immigration Review for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,250,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection> <subsection id="HF8194EBA5C47478A9298B98B0357FE04"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used for purposes of—</text>
<paragraph id="H23C091D9EEF246B09772578D814FF5C9"><enum>(1)</enum><text>hiring the support staff necessary to support immigration judges; </text></paragraph> <paragraph id="HA489B82D67BA4BD8B59576C7C7994515"><enum>(2)</enum><text>hiring immigration judges; and</text></paragraph>
<paragraph id="HC7AFC7563E864EC1B2F0296D64F9A833"><enum>(3)</enum><text>expanding courtroom capacity and infrastructure.</text></paragraph></subsection></section> <section id="H3A960FC972AB4DA5A7CC5786073045AF" section-type="subsequent-section"><enum>70101.</enum><header>Adult alien detention capacity and family residential centers</header> <subsection id="H39F24636AEFB4EB0887B55498A52DC5E"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $45,000,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H051F3E2154E046AA91EDB813B7BE574B"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used for family residential center capacity and single adult alien detention capacity.</text></subsection> <subsection id="H2CF0D45AA67341C8A0275988633A12FE"><enum>(c)</enum><header>Duration</header><text display-inline="yes-display-inline">The Department of Homeland Security may detain family units of aliens at family residential centers, as described in subsections (b) and (d), pending a decision on whether the aliens are to be removed from the United States and, if such aliens are ordered removed from the United States, until such aliens are removed. </text></subsection>
<subsection id="H9C00CD29CF0F45C585F61BC1A4760AC5" commented="no"><enum>(d)</enum><header>Family residential center defined</header><text display-inline="yes-display-inline">In this section, the term <term>family residential center</term> means a facility used by the Department of Homeland Security to detain family units of aliens (including alien children who are not unaccompanied alien children) who are encountered or apprehended by the Department of Homeland Security, regardless of whether the facility is licensed by the State or a political subdivision of the State in which the facility is located.</text></subsection> <subsection id="HD35E29B5346E482CBD682AA2BC8D537F" commented="no"><enum>(e)</enum><header>Detention standards</header><text>To efficiently utilize the funding appropriated by this section, the detention standards for the single adult detention capacity described in subsection (b) shall be set in the sole discretion of the Secretary of Homeland Security. </text></subsection></section>
<section id="H10071E058C244289AD2BD26A88C5937D" section-type="subsequent-section"><enum>70102.</enum><header>Retention and signing bonuses for U.S. Immigration and Customs Enforcement personnel</header>
<subsection id="H466259AB3D984821BAC716FBB07BB8A8"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $858,000,000 to remain available until September 30, 2029, for the purposes described in subsections (b) and (c).</text></subsection> <subsection id="H390CB9694B2D4AE7A0F399869D8CF574"><enum>(b)</enum><header>Retention bonuses</header><text display-inline="yes-display-inline">U.S. Immigration and Customs Enforcement may provide retention bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who commits to two years of additional service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement.</text></subsection>
<subsection id="HA40783AC546C463D820BBC8B12D6A8FE"><enum>(c)</enum><header>Signing bonuses</header><text display-inline="yes-display-inline">U.S. Immigration and Customs Enforcement shall provide a signing bonus to each U.S. Immigration and Customs Enforcement agent, officer, or attorney who is hired on or after the date of enactment of this Act and who commits to five years of service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement.</text></subsection> <subsection id="H71A82BF2B0884DA1B144FAB00CC9F2E2"><enum>(d)</enum><header>Rules for bonuses</header><text display-inline="yes-display-inline">U.S. Customs and Immigration Enforcement shall provide qualifying individuals with written service agreements that include—</text>
<paragraph id="HA59B8B25499B40D3A7E5A8977DB82307"><enum>(1)</enum><text>the commencement and termination dates of the required service period (or provisions for the determination thereof); </text></paragraph> <paragraph id="H667853BFC6984C46B5A925168D3544B9"><enum>(2)</enum><text>the amount of the bonus; and </text></paragraph>
<paragraph id="H088977B2F6D945A98A13D0AB39E4D1EC"><enum>(3)</enum><text>other terms and conditions under which the bonus is payable, subject to the requirements of this subsection, including— </text> <subparagraph id="HCE365BAE17BA469A8F29B2B9DD6E111A"><enum>(A)</enum><text>the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and </text></subparagraph>
<subparagraph id="HC6AAF2150A074F01A7D6D2813898436B"><enum>(B)</enum><text>the effect of a termination described in subparagraph (A).</text></subparagraph></paragraph></subsection></section> <section id="HDFF26C36CDBC4EF482C94748336A2FF8" section-type="subsequent-section"><enum>70103.</enum><header>Hiring of additional U.S. Immigration and Customs Enforcement personnel</header> <subsection id="H254860E341CF432790037DC16BAF51FC"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $8,000,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H951A70DE155A408BACFD84EC92C82569"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used to hire additional personnel of U.S. Immigration and Customs Enforcement, including officers, agents, and support staff, to carry out immigration enforcement, and to prioritize and streamline the hiring of retired U.S. Immigration and Customs Enforcement personnel. There shall be a minimum of—</text> <paragraph id="H3A888721E2294BAFAD7A0B2456528E87"><enum>(1)</enum><text>2,500 individuals hired in fiscal year 2025;</text></paragraph>
<paragraph id="H3F54570226F149779826F3EE953D259A"><enum>(2)</enum><text>1,875 individuals hired in 2026;</text></paragraph> <paragraph id="H2FD7BD49E4324FE3BC1193C354E07439"><enum>(3)</enum><text>1,875 individuals hired in 2027;</text></paragraph>
<paragraph id="H86D70D4818C24AD3B950F909000E487B"><enum>(4)</enum><text display-inline="yes-display-inline">1,875 individuals hired in 2028; and</text></paragraph> <paragraph id="H8C19CC98BEDA4345BD9317CED478B74B"><enum>(5)</enum><text display-inline="yes-display-inline">1,875 individuals hired in 2029. </text></paragraph></subsection></section>
<section id="HDACC6D3CC8F746F59940B6BDDE5EB41C"><enum>70104.</enum><header>U.S. Immigration and Customs Enforcement hiring capability</header>
<subsection id="H71F1B43FC4E147659E1964B34821CD48"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $600,000,000, to remain available until September 30, 2029, for the purpose described in subsection (b).</text></subsection> <subsection id="H12E58F907D144C4B8BC9E3B526E65F34"><enum>(b)</enum><header>Use of Funds</header><text>The funds made available under subsection (a) shall only be used for the purpose of facilitating the recruitment, hiring, and onboarding of additional U.S. Immigration and Customs Enforcement personnel to carry out immigration enforcement, including by investments in information technology, recruitment, marketing, and staff necessary for such activities. </text></subsection></section>
<section id="H3D0B86641EF1439DA5532EE47A954DDC"><enum>70105.</enum><header>Transportation and removal operations</header>
<subsection id="HD2EAEC4D7DA346D38322D25A6B051C3F"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $14,400,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection> <subsection id="H24C05A3DAC264E57A420B4EBC0498285"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used for transportation and removal operations and for ensuring the departure of aliens.</text></subsection></section>
<section id="H2CD817FE568E43DF84DED89DFACC34DC"><enum>70106.</enum><header>Information technology investments</header>
<subsection id="HC4E9C926956A40CDBEC1AE3974934115"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $700,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection> <subsection id="H7873EE635BE043F1AD68A3FC1C51EF55" commented="no"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used for U.S. Immigration and Customs Enforcement information technology investments to support enforcement and removal operations, including to streamline fine and penalty collections. </text></subsection></section>
<section id="HEF80045399D542ED940AAB63F635FADC"><enum>70107.</enum><header>Facilities upgrades</header>
<subsection id="H9C331D451773464399A1DFF0CC013C55"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $550,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection> <subsection id="H5951CFA04DB24DB2AC898EF7B0D700C1" commented="no"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used for U.S. Immigration and Customs Enforcement facility upgrades to support enforcement and removal operations. </text></subsection></section>
<section id="HAB547848AC7B4C6C8D1CCAEB12DD1E6A"><enum>70108.</enum><header>Fleet modernization</header>
<subsection id="HF06289B6D6DB4A89AAAC62DDCF43E1B1"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $250,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b). </text></subsection> <subsection id="H6763FC3774B04F96BCFE5C41AD964011" commented="no"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used for U.S. Immigration and Customs Enforcement fleet modernization to support enforcement and removal operations. </text></subsection></section>
<section id="H2D8402F5EAAD4BFD8FAD7147D58C86E9" section-type="subsequent-section"><enum>70109.</enum><header>Promoting family unity</header>
<subsection id="HA96F2C11CE154C9F8048B740DC240414"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $20,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b). </text></subsection> <subsection id="HD92F094C8D2B433A8A54A6F64E279FDF"><enum>(b)</enum><header>Use of funds</header><text>The funds made available under subsection (a) shall only be used to—</text>
<paragraph id="H40947BEDB5374BD18B82EB675DD912CF"><enum>(1)</enum><text>maintain the care and custody, during the period in which the charges described in subparagraph (A) are pending, of an alien who—</text> <subparagraph id="H3EFF4E28083D48068CF621BF7D993F14"><enum>(A)</enum><text>is charged only with a misdemeanor offense under section 275(a) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1325">8 U.S.C. 1325(a)</external-xref>); and</text></subparagraph>
<subparagraph id="H4CB1F6F0C7744C5D9C0AB109E68C3E0E"><enum>(B)</enum><text>entered the United States with the alien’s child who has not attained 18 years of age; and</text></subparagraph></paragraph> <paragraph id="H1AD7E0FE1D7C4917B4F1888002657C31"><enum>(2)</enum><text>detain the alien with the alien’s child.</text></paragraph></subsection></section>
<section id="H7E4A32AEFDD849FFB49F52D4FD46C416"><enum>70110.</enum><header>Funding section 287(g) of the Immigration and Nationality Act</header>
<subsection id="H24FEEB67A6C04DC0A20454A49EE7E761"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $650,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection> <subsection id="H0D76002755154CB6BEC0C0F4B5D4F85E"><enum>(b)</enum><header>Use of funds</header><text>The amounts made available under subsection (a) shall only be used for purposes of facilitating and implementing agreements under section 287(g) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1357">8 U.S.C. 1357(g)</external-xref>).</text></subsection></section>
<section id="HF565DDADAEAC4DF8B01D626F589C1FA0"><enum>70111.</enum><header>Compensation for incarceration of criminal aliens</header>
<subsection id="HBD5BE6D06AA54C05B5CD77C73627ABF5"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Department of Justice for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $950,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection> <subsection id="H21355B2A3C5E436F93B89A473C486FD6"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">The amounts made available under subsection (a) shall only be used to compensate a State or political subdivision of a State, as may be appropriate, with respect to the incarceration of any alien who—</text>
<paragraph id="H908F502529B7403CA9C672451B949EA8"><enum>(1)</enum><text>has been convicted of a felony or two or more misdemeanors; and</text></paragraph> <paragraph id="H840F5798558F4C9396B5FE8668A93506"><enum>(2)</enum> <subparagraph id="H61F9D9A81F624ED7BE8AA6792999DF6F" display-inline="yes-display-inline"><enum>(A)</enum><text>entered the United States without inspection or at any time or place other than as designated by the Secretary of Homeland Security;</text></subparagraph>
<subparagraph id="H12F59B65C9B247CEA2B4980054546477" indent="up1"><enum>(B)</enum><text>was the subject of removal proceedings at the time he or she was taken into custody by the State or a political subdivision of the State; or</text></subparagraph> <subparagraph id="H8682482D3097446AA4B36F7920A180B3" indent="up1"><enum>(C)</enum><text>was admitted as a nonimmigrant and, at the time he or she was taken into custody by the State or a political subdivision of the State, has failed to maintain the nonimmigrant status in which the alien was admitted, or to which it was changed, or to comply with the conditions of any such status.</text></subparagraph></paragraph></subsection>
<subsection id="H8541D2C238AF487B9BF46F871BFC589B" commented="no"><enum>(c)</enum><header>Limitation</header><text>The amounts made available under subsection (a) shall not be used to compensate any State or political subdivision of the State if the State or political subdivision of the State prohibits or in any way restricts a Federal, State, or local government entity, official, or other personnel from any of the following:</text> <paragraph id="H8D102E66158F4783B4B31465AF94D8BB" commented="no"><enum>(1)</enum><text>Complying with the immigration laws (as defined in section 101(a)(17) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1101">8 U.S.C. 1101(a)(17)</external-xref>).</text></paragraph>
<paragraph id="H1FCCBF73A6114CCFAFE13BC58D0DBD00" commented="no"><enum>(2)</enum><text>Assisting or cooperating with Federal law enforcement entities, officials, or other personnel regarding the enforcement of the immigration laws.</text></paragraph> <paragraph id="H06E7D5F8907B4EDB8C679652504016C2" commented="no"><enum>(3)</enum><text>Undertaking any one of the following law enforcement activities as they relate to information regarding the citizenship or immigration status, lawful or unlawful, the inadmissibility or deportability, and the custody status, of any individual:</text>
<subparagraph id="HEBCFD1A1C20C4314BD8BFA9CB5C1072D" commented="no"><enum>(A)</enum><text>Making inquiries to any individual to obtain such information regarding such individual or any other individuals.</text></subparagraph> <subparagraph id="HD65F97764C434507961C5AE4137C8439" commented="no"><enum>(B)</enum><text>Notifying the Federal Government regarding the presence of individuals who are encountered by law enforcement officials or other personnel of a State or political subdivision of a State.</text></subparagraph>
<subparagraph id="HD3DE70FC8B0B4884BBFD44DDB1868511" commented="no"><enum>(C)</enum><text>Complying with requests for such information from Federal law enforcement entities, officials, or other personnel.</text></subparagraph></paragraph></subsection></section> <section id="H95B287FB167C4698922A4672C3CD1E73" section-type="subsequent-section"><enum>70112.</enum><header>Office of the Principal Legal Advisor</header> <subsection id="H10655837D7824DD592DC948BEE67018D"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,320,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H530ECA7643DF4204AA9E7B0D740EA962"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used for purposes of hiring additional support staff and attorneys within the Office of the Principal Legal Advisor to represent the Department of Homeland Security in removal proceedings.</text></subsection></section> <section id="H9DD2C6B164AC447EA86143F797FBD320" section-type="subsequent-section"><enum>70113.</enum><header>Return of aliens arriving from contiguous territory</header> <subsection id="HF95605B6437D45C98349005FC9659157"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Department of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $500,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H409802CF880F4B6DA7DC81715306323A"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">The funds made available under subsection (a) shall only be used for purposes of return of aliens under section 235(b)(2)(C) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1225">8 U.S.C. 1225(b)(2)(C)</external-xref>).</text></subsection></section> <section id="HA473FC6782AC4FFFBE42334D08802F0B" section-type="subsequent-section"><enum>70114.</enum><header>State and local participation in homeland security efforts</header> <subsection id="H54EDD173550944BF99FC25EA52747A8D"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $787,000,000, to remain available until September 30, 2029, for the purpose described in subsection (b).</text></subsection>
<subsection id="H5B57AB93316A4DB6877911052813C401"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">The funds made available under subsection (a) shall only be used for the purpose of ending the presence of criminal gangs and criminal organizations throughout the United States, combating domestic human smuggling and trafficking networks, supporting immigration enforcement activities, and providing reimbursement for State and local participation in such efforts. </text></subsection></section> <section id="HCCB0896A74364D428A6791CF8E8AAF24" section-type="subsequent-section"><enum>70115.</enum><header>Unaccompanied alien children capacity</header> <subsection id="H65F4FAFC002A4C2D8038A6C4F198714D"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Office of Refugee Resettlement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $3,000,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="HD3C8221D9A9445968A89F6B9F20C0AED"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">The funds made available under subsection (a) shall only be used for the Office of Refugee Resettlement to house, transport, and supervise unaccompanied alien children in the custody of the Office of Refugee Resettlement pursuant to section 235 of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008.</text></subsection></section> <section id="HAB17DFD68E174064AC96AFA5066C64E0" section-type="subsequent-section"><enum>70116.</enum><header>Department of Homeland Security checks for unaccompanied alien children</header> <subsection id="H4167BB1A5AAA440A9E09DB9B391B3A85"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="HBF7A17867BE1483D9438414FD0BB2E3D"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">In the case of an unaccompanied alien child who has attained 12 years of age and is encountered by U.S. Customs and Border Protection, the funds made available under subsection (a) shall only be used to conduct an examination of such unaccompanied alien child for gang-related tattoos and other gang-related markings.</text></subsection> <subsection id="H957B45EEBFCF400BAB11A251CE2B383D"><enum>(c)</enum><header>Unaccompanied alien child defined</header><text display-inline="yes-display-inline">In this section, the term <term>unaccompanied alien child</term> shall have the meaning given such term in section 462(g) of the Homeland Security Act of 2002. </text></subsection></section>
<section id="H876E47579CA842D591A311B1736CAAE6"><enum>70117.</enum><header>Department of Health and Human Services checks for unaccompanied alien children</header>
<subsection id="HB6CC2DEF36794F98969687C6925E87F5"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Office of Refugee Resettlement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection> <subsection id="H1EF17EE944B0420594DCB19A9FEE33E2"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">In the case of each unaccompanied alien child who has attained 12 years of age, the funds made available under subsection (a) shall only be used for the purpose of making a determination pursuant to section 235(c)(2)(A) of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 about whether an unaccompanied alien child poses a danger to self or others by conducting an examination of the unaccompanied alien child for gang-related tattoos and other gang-related markings.</text></subsection>
<subsection id="H7807CDCDB5EE48CA8BE6CF10A77E20BD"><enum>(c)</enum><header>Unaccompanied alien child defined</header><text display-inline="yes-display-inline">In this section, the term <term>unaccompanied alien child</term> shall have the meaning given such term in section 462(g) of the Homeland Security Act of 2002. </text></subsection></section> <section id="H6FE5BEC97C8044AE988E906ED6FFEBB9"><enum>70118.</enum><header>Information about sponsors and adult residents of sponsor households</header> <subsection id="HBAA5CAC684F44F6A9941A54619759190"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Office of Refugee Resettlement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H92D973157A554E0AB189AECAB5DFF348"><enum>(b)</enum><header>Information about individuals with whom unaccompanied alien children are placed and reside</header><text display-inline="yes-display-inline">Before placing an unaccompanied alien child with an individual pursuant to section 235(c) of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008, the Secretary of Health and Human Services shall provide to the Secretary of Homeland Security, regarding the individual with whom the child will be placed and all adult residents of the individual’s household, information on—</text> <paragraph id="H201A54EC36FC4392A6B74DBB9F0AB5FE"><enum>(1)</enum><text>the name of the individual and all adult residents of the individual’s household;</text></paragraph>
<paragraph id="H5990C0ED4D5C4FBAA328D38BF1BD126C"><enum>(2)</enum><text>the social security number of the individual and all adult residents of the individual’s household;</text></paragraph> <paragraph id="H4BD91B61CFA349C39A0B371A14C1BB2F"><enum>(3)</enum><text>the date of birth of the individual and all adult residents of the individual’s household;</text></paragraph>
<paragraph id="H580AD156DCA74431958DEC78011343DA"><enum>(4)</enum><text>the validated location of the individual’s residence where the child will be placed;</text></paragraph> <paragraph id="HC3F338A2913D486D9D598255480CAE55"><enum>(5)</enum><text>the immigration status of the individual and all adult residents of the individual’s household;</text></paragraph>
<paragraph id="HD75815858BEF4F53BD5730951838DE70"><enum>(6)</enum><text>contact information for the individual and all adult residents of the individual’s household; and</text></paragraph> <paragraph id="H42323270C6214E8FAB2E277B83367FB2"><enum>(7)</enum><text>the results of all background and criminal records checks for the individual and all adult residents of the individual’s household, which shall include at a minimum an investigation of the public records sex offender registry, a public records background check, and a national criminal history check based on fingerprints.</text></paragraph></subsection>
<subsection id="H2D042186604E4F099C6EBDE17F46048E" display-inline="no-display-inline"><enum>(c)</enum><header>Unaccompanied alien child defined</header><text display-inline="yes-display-inline">In this section, the term <term>unaccompanied alien child</term> shall have the meaning given such term in section 462(g) of the Homeland Security Act of 2002. </text></subsection></section> <section id="HFD3C62D9C56040B0984B51FB5E98EFCF" section-type="subsequent-section"><enum>70119.</enum><header>Repatriation of unaccompanied alien children</header> <subsection id="H14B09EE77607463E911C68868E11A0F3"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Department of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b). </text></subsection>
<subsection id="H098D4309669145098C99EAD6A42FA90C"><enum>(b)</enum><header>Use of funds</header><text>The funds made available under subsection (a) shall only be used to permit a specified unaccompanied alien child to withdraw the child’s application for admission pursuant to section 235(a)(4) of the Immigration and Nationality Act. </text></subsection> <subsection id="H2F958625BB4D4E528BA49AA1FB9C4F44"><enum>(c)</enum><header>Definitions</header><text>In this section—</text>
<paragraph id="H39D4EC5EF7254F28B8EE0B310CC4FBE8"><enum>(1)</enum><header>Specified unaccompanied alien child</header><text display-inline="yes-display-inline">The term <term>specified unaccompanied alien child</term> means an unaccompanied alien child (as defined in section 462(g) of the Homeland Security Act of 2002), regardless of whether such unaccompanied alien child is a national or habitual resident of a country that is contiguous or non-contiguous with the United States, who the Secretary of Homeland Security determines on a case-by-case basis—</text> <subparagraph id="H7E61E4785C374F0DB0D4F7412899D618"><enum>(A)</enum><text>has been found by an immigration officer at a land border or port of entry of the United States and is inadmissible under the Immigration and Nationality Act;</text></subparagraph>
<subparagraph id="H0099BFDC03714835B0E8BA2AD1BAA8C5"><enum>(B)</enum><text>has not been a victim of severe forms of trafficking in persons, and there is no credible evidence that such child is at risk of being trafficked upon return to the child’s country of nationality or of last habitual residence; and</text></subparagraph> <subparagraph id="HD2EBBB561F0149C287EB283845826A84"><enum>(C)</enum><text>does not have a fear of returning to the child’s country of nationality or of last habitual residence owing to a credible fear of persecution.</text></subparagraph></paragraph>
<paragraph id="HFE7A4F755E3645F39998A6D853B86A89"><enum>(2)</enum><header>Severe forms of trafficking in persons</header><text display-inline="yes-display-inline">The term <term>severe forms of trafficking in persons</term> shall have the meaning given such term in section 103 of the Trafficking Victims Protection Act of 2000. </text></paragraph></subsection></section> <section id="H9399EB02846A47DCBCEFE1BB1BE08A55"><enum>70120.</enum><header>United States Secret Service</header> <subsection id="HD1DE6E03AC0149DF9E90C321F5C370C1"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Director of the United States Secret Service for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,170,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H73689C1FACDA4435BD63F28C226A2790"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used for additional United States Secret Service resources, including personnel, training facilities, and technology.</text></subsection></section> <section id="H960307BB582A4C358370C4916DBB5961"><enum>70121.</enum><header>Combating drug trafficking and illegal drug use</header> <subsection id="H2510ACC753F74A79AA1232226600D91B"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Department of Justice for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $500,000,000 to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="HDF975FE33E864BFD90886EF1F6A20469"><enum>(b)</enum><header>Use of funds</header><text>Amounts made available under subsection (a) shall only be used for efforts to combat drug trafficking, including of fentanyl and its precursor chemicals, and illegal drug use.</text></subsection></section> <section id="H963032E429F144C4898F7258F591F8D0"><enum>70122.</enum><header>Investigating and prosecuting immigration related matters</header> <subsection id="H190187198DA54FE888E1424F0E4600E0"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Department of Justice for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $600,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H1286750FE7554A4AB12E26BA23D24768"><enum>(b)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Amounts made available under subsection (a) shall only be used to investigate and prosecute immigration matters, gang-related crimes involving aliens, child trafficking and smuggling involving aliens, voting by aliens, violations of the Alien Registration Act, and violations of or fraud relating to title IV of the Personal Responsibility and Work Opportunity Act of 1996, including through hiring Department of Justice personnel to investigate and prosecute such matters.</text></subsection></section> <section id="H6C57DDC789BE4597A95BDBA760F4E4FF"><enum>70123.</enum><header>Expedited removal for criminal aliens</header> <subsection id="H64EE3DADE7FB4E14BA5B8A70C9CBAEF2"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Department of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $75,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H108F1E9E7B664742A09292F475F21188"><enum>(b)</enum><header>Use of funds</header><text>The amounts made available in subsection (a) shall only be used for applying the provisions of section 235(b)(1) of the Immigration and Nationality Act to any alien who is inadmissible under paragraph (2) or (3) of section 212(a) of the Immigration and Nationality Act, regardless of the period that such alien has been physically present in the United States.</text></subsection></section> <section id="HCFE48659EC7547EC8624C64F0A82B90F"><enum>70124.</enum><header>Removal of certain criminal aliens without further hearing</header> <subsection id="H369AFB1C8F4342C1A0468C1AEAA177ED"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Department of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2029, for the purposes described in subsection (b).</text></subsection>
<subsection id="H19CB3D9A0D0B4BFA90D2EDF2AAA47683"><enum>(b)</enum><header>Use of funds</header><text>The amounts made available in subsection (a) shall only be used for applying the provisions of section 235(c) of the Immigration and Nationality Act to any arriving alien that an immigration officer or an immigration judge suspects may be inadmissible under paragraph (2) or (3) of section 212(a) of the Immigration and Nationality Act.</text></subsection></section></part></subtitle> <subtitle id="HA9A57EEE0FF8489D85787191EF874BB0"><enum>B</enum><header>Regulatory Matters</header> <section id="H38B5E9AB57A3406F8398E531CCCC95C4"><enum>70200.</enum><header>Review of agency rulemaking</header> <subsection id="H07ACD7C81FAB4569A40A10C1F14C6C71"><enum>(a)</enum><header>Deregulation Initiative</header> <paragraph id="HCF1B439104A44B1C825AAAEE3873ADB3"><enum>(1)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Director of the Office of Management and Budget for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $100,000,000 to remain available through September 30, 2028, to carry out this section.</text></paragraph>
<paragraph id="H74D43E2D51E74B0B9B40C461D0135EF2"><enum>(2)</enum><header>Use of Funds</header><text>The Director of the Office of Management and Budget shall use amounts made available under paragraph (1) to pay expenses associated with improving regulatory processes and analyzing and reviewing rules issued by a covered agency. </text></paragraph></subsection> <subsection id="HC9809F05EBA445EC835FB1F95F122EB5"><enum>(b)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H0A80318FBCFE4E0094389A2D361790D2"><enum>(1)</enum><header>Covered agency</header><text>The term <quote>covered agency</quote>—</text> <subparagraph id="H42AAE7A9A52B4C60A503A7088C0EA568"><enum>(A)</enum><text>means—</text>
<clause id="HB22E647D94A5440E807150012AF1D659"><enum>(i)</enum><text>the Department of Education;</text></clause> <clause id="H4A99F14DC2084089B19FA7E0DBE34E79"><enum>(ii)</enum><text>the Department of Energy;</text></clause>
<clause id="H8221961122934861AA840934BFB59FE4"><enum>(iii)</enum><text>the Department of Health and Human Services;</text></clause> <clause id="HE4673AE1BE5A4B07B0D0348EF6758576"><enum>(iv)</enum><text>the Department of Homeland Security;</text></clause>
<clause id="HB70A4673E93A4B65AC3DBB81D262C064"><enum>(v)</enum><text>the Department of Justice;</text></clause> <clause id="H9C718CC6D0DF42F2B93AB77BA9B9BAE9"><enum>(vi)</enum><text>the Consumer Financial Protection Bureau; and</text></clause>
<clause id="H8BD5B0B4DE47485698ADC02933BC658A"><enum>(vii)</enum><text>the Environmental Protection Agency; and</text></clause></subparagraph> <subparagraph id="H60EFE15C5B9D44348810699F7FF9A291"><enum>(B)</enum><text>does not include the Social Security Administration.</text></subparagraph></paragraph>
<paragraph id="H192B4365697E4F3DBCA121DE47F5C148"><enum>(2)</enum><header>Rule</header><text>The term <quote>rule</quote> has the meaning given the term in section 551 of title 5, United States Code, only to the extent such rule has been issued by a covered agency.</text></paragraph></subsection></section></subtitle> <subtitle id="HDBF681C755594C63AF06D842ADE5D25E"><enum>C</enum><header>Other Matters</header> <section id="H25217BA1720940089B79A5B7773DA572"><enum>70300.</enum><header>Limitation on donations made pursuant to settlement agreements to which the United States is a party</header> <subsection id="H9A9283179AAD441589F9D2F6E0E7A2F1"><enum>(a)</enum><header>Limitation on required donations</header><text display-inline="yes-display-inline">An official within the Department of Justice may not enter into or enforce any settlement agreement on behalf of the United States directing or providing for a payment to any person or entity other than the United States, other than a payment that provides restitution for or otherwise directly remedies actual harm (including to the environment) directly and proximately caused by the party making the payment, or constitutes payment for services rendered in connection with the case.</text></subsection>
<subsection id="HBCC19EA292B243649643542604309602"><enum>(b)</enum><header>Penalty</header><text display-inline="yes-display-inline">Any official within the Department of Justice who violates subsection (a) shall be subject to the same penalties that would apply in the case of a violation of section 3302 of title 31, United States Code.</text></subsection> <subsection id="H480158AAF26A4021B02A9B0EA2CF8C70"><enum>(c)</enum><header>Effective date</header><text>Subsections (a) and (b) apply only in the case of a settlement agreement entered on or after the date of enactment of this Act.</text></subsection>
<subsection id="H2173AAF65CC74DACBF55E39E338C42A3"><enum>(d)</enum><header>Definition</header><text>The term <quote>settlement agreement</quote> means a settlement agreement resolving a civil action or potential civil action.</text></subsection> <subsection id="H8F6B3B46EBFB4D07AFB90BCB34EFFD21"><enum>(e)</enum><header>Annual audit requirement</header> <paragraph id="HF72C9D20C0AE494EA9938D3DB56D181F"><enum>(1)</enum><header>In general</header><text>Not later than at the end of the first fiscal year that begins after the date of enactment of this Act, and annually thereafter, the Inspector General of the Department of Justice shall submit, and make available on a publicly accessible website, a report on any settlement agreement entered into in violation of this section to—</text>
<subparagraph id="H1235B67206DC4FCCB1C7AC0D6DD63BAE"><enum>(A)</enum><text>the Committee on the Judiciary of the Senate; and</text></subparagraph> <subparagraph id="HB1644BE40193471DB96B653A6ABDCBAB"><enum>(B)</enum><text>the Committee on the Judiciary of the House of Representatives.</text></subparagraph></paragraph>
<paragraph id="H101EC6B48BFD45B4A7FC6F11785CC7CF"><enum>(2)</enum><header>Prohibition on additional funding</header><text>No additional funds are authorized to be appropriated to carry out this subsection.</text></paragraph></subsection></section> <section id="H4A13DE887CFB4320AC34C7724313E780" section-type="subsequent-section"><enum>70301.</enum><header>Solicitation of orders defined</header><text display-inline="no-display-inline">Section 101(d) of Public Law 86—272 (73 Stat. 555) is amended—</text>
<paragraph id="H9A30F5AEB1164E699F86B1E9EEA73EF4"><enum>(1)</enum><text>in paragraph (1) by striking <quote>and</quote> at the end,</text></paragraph> <paragraph id="H5000B69770EE4C81A3D3183F5298EB9D"><enum>(2)</enum><text>in paragraph (2) by striking the period at the end and inserting <quote>; and</quote>, and</text></paragraph>
<paragraph id="H2A3A4BBA37704256A1543918F94594D5" display-inline="no-display-inline"><enum>(3)</enum><text> by adding at the end the following:</text> <quoted-block style="OLC" id="HAD81DC67AAC249A89EFFD2D7E2C9ADE5" display-inline="no-display-inline"> <paragraph id="H735DDA340C994B1B87C8255027B9B280"><enum>(3)</enum><text>the term <quote>solicitation of orders</quote> means any business activity that facilitates the solicitation of orders even if that activity may also serve some independently valuable business function apart from solicitation.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H2810DD8E99CB44108A7990C3FD629DF8" display-inline="no-display-inline" section-type="subsequent-section"><enum>70302.</enum><header>Restriction on enforcement</header><text display-inline="no-display-inline">No court of the United States may enforce a contempt citation for failure to comply with an injunction or temporary restraining order if no security was given when the injunction or order was issued pursuant to Federal Rule of Civil Procedure 65(c), whether issued prior to, on, or subsequent to the date of enactment of this section.</text></section></subtitle> <enum>VIII</enum><header>Committee on Natural Resources</header> <subtitle id="H55FA54D480B94D60BD309163129142B9"><enum>A</enum><header>Energy and Mineral Resources</header> <part id="H19838D1D987343EE95B12CDC0E268D9A"><enum>1</enum><header>Oil and gas</header> <section id="HD31D2676946D4A6FA153CF5E8206E4BE" commented="no"><enum>80101.</enum><header>Onshore oil and gas lease sales</header> <subsection id="HE178AB131E1B4BD2837A061CD57149F0" commented="no"><enum>(a)</enum><header>Requirement to immediately resume onshore oil and gas lease sales</header> <paragraph id="H20D9F35CF52643728804DC9786F42D9D" commented="no"><enum>(1)</enum><header>In general</header><text>The Secretary of the Interior shall immediately resume quarterly onshore oil and gas lease sales in compliance with the Mineral Leasing Act.</text></paragraph>
<paragraph id="H3158A704D0FA457C9EDCB48DB51AA66A" commented="no"><enum>(2)</enum><header>Requirement</header><text>The Secretary of the Interior shall ensure—</text> <subparagraph id="H6CC82A31399041268E39B8C74E956D39" commented="no"><enum>(A)</enum><text>that any oil and gas lease sale pursuant to paragraph (1) is conducted immediately on completion of all requirements under the Mineral Leasing Act; and</text></subparagraph>
<subparagraph id="H8D654741DA70401380E41124FA3B2994" commented="no"><enum>(B)</enum><text>that the processes described in subparagraph (A) are conducted in a timely manner to ensure compliance with subsection (b)(1).</text></subparagraph></paragraph> <paragraph id="H215DCB7AF1AE49F2B2296C96E78CB305" commented="no"><enum>(3)</enum><header>Lease of oil and gas lands</header><text>Section 17(b)(1)(A) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226(b)(1)(A)</external-xref>) is amended by inserting <quote>Eligible lands comprise all lands subject to leasing under this Act and not excluded from leasing by a statutory or regulatory prohibition. Land shall be considered available under the preceding sentence if the land has been designated as open for leasing under a land use plan developed or revised under section 202 of the Federal Land Policy and Management Act of 1976 and has been nominated for leasing through the submission of an expression of interest, is subject to drainage (as described in subsection (j)) in the absence of leasing, or is otherwise designated as available pursuant to regulations issued by the Secretary.</quote> after <quote>sales are necessary.</quote>.</text></paragraph></subsection>
<subsection id="HDDDDE3CAF06747BB863AF5B8F07A2C8B" commented="no"><enum>(b)</enum><header>Quarterly lease sales</header>
<paragraph id="H7F5473E0D46D4BD8B6C76C2CB905474D" commented="no"><enum>(1)</enum><header>In general</header><text>In accordance with the Mineral Leasing Act, each fiscal year, the Secretary of the Interior shall conduct a minimum of four oil and gas lease sales in each of the following States:</text> <subparagraph id="H0A284B4BF6B849FF980D01E78D568E9D" commented="no"><enum>(A)</enum><text>Wyoming.</text></subparagraph>
<subparagraph id="H2ACFEB6EB0CF41CEABF1790E2B73D9F1" commented="no"><enum>(B)</enum><text>New Mexico.</text></subparagraph> <subparagraph id="H5721E18D405B42FCB336D58B3665BF26" commented="no"><enum>(C)</enum><text>Colorado.</text></subparagraph>
<subparagraph id="H91431E4D895B4E4AA5510813FCD1B701" commented="no"><enum>(D)</enum><text>Utah.</text></subparagraph> <subparagraph id="HE5F36A74D4CA49F9841F62E2A5A8048B" commented="no"><enum>(E)</enum><text>Montana.</text></subparagraph>
<subparagraph id="H5958BE7B31534172A2852943514C1289" commented="no"><enum>(F)</enum><text>North Dakota.</text></subparagraph> <subparagraph id="H8F85D3F7D0C9446585920EF1586D7120" commented="no"><enum>(G)</enum><text>Oklahoma.</text></subparagraph>
<subparagraph id="H844198A6499E40FCA19D06321EF1A73C" commented="no"><enum>(H)</enum><text>Nevada.</text></subparagraph> <subparagraph id="HDFAD7DB4190643529F11B33B82DB33D1" commented="no"><enum>(I)</enum><text>Alaska.</text></subparagraph>
<subparagraph id="HE1DC47F0B43149E99D526531657B24E3" commented="no"><enum>(J)</enum><text>Any other State in which there is land available for oil and gas leasing under the Mineral Leasing Act or any other mineral leasing law.</text></subparagraph></paragraph> <paragraph id="HB1F6B97063F646ABAA9406E6F785CE75" commented="no"><enum>(2)</enum><header>Requirement</header><text display-inline="yes-display-inline">In conducting a lease sale under paragraph (1) in a State described in that paragraph, the Secretary of the Interior shall offer not less than 50 percent of all parcels nominated that are available and eligible pursuant to the requirements of the Mineral Leasing Act.</text></paragraph>
<paragraph id="H05D71066A00E4C62AA24A1C4C65982A3" commented="no"><enum>(3)</enum><header>Replacement sales</header><text>The Secretary of the Interior shall conduct a replacement sale during the same fiscal year if—</text> <subparagraph id="HE0F4D4EE60494597AF3673C495823D0B" commented="no"><enum>(A)</enum><text>a lease sale under paragraph (1) is canceled, delayed, or deferred, including for a lack of eligible parcels; or</text></subparagraph>
<subparagraph id="H3088CB90E3D04BB698F4082A60BFD15D" commented="no"><enum>(B)</enum><text>during a lease sale under paragraph (1) the percentage of acreage that does not receive a bid is equal to or greater than 25 percent of the acreage offered.</text></subparagraph></paragraph></subsection> <subsection id="HFFC8F30C42C840749BED2C3C09CF6777" commented="no"><enum>(c)</enum><header>Leasing of oil and gas</header><text>Section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is amended—</text>
<paragraph id="H4893D7758F444A2B8C183BB09805B271"><enum>(1)</enum><text>by striking the section designation and all that follows through the end of subsection (a) and inserting the following:</text> <quoted-block id="H15DAB48CE35D4A91BD58BF82E5E04437" style="OLC"> <section id="H421BB908469C4F50BA91AAFBCC73880E" commented="no"><enum>17.</enum><header>Leasing of oil and gas</header> <subsection id="H6DB9AB201B7D484196E110247B40EC22" commented="no"><enum>(a)</enum><header>Leasing</header> <paragraph id="H4069C14C26FD4D4C8232ECB0D04BF5E2" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 18 months after the date of receipt by the Secretary of an expression of interest in leasing land that is subject to disposition under this Act and is known or believed to contain oil or gas deposits, the Secretary shall, subject to paragraph (2), offer such land for oil and gas leasing if the Secretary determines that the land is open to oil or gas leasing under a land use plan developed or revised under section 202 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1712">43 U.S.C. 1712</external-xref>) and such land use plan—</text>
<subparagraph id="HED01B082E5F04FD79A4B5C681003ED21" commented="no"><enum>(A)</enum><text>applies to the planning area in which the land is located; and</text></subparagraph> <subparagraph id="H0122AE7D1FFB4D13B22026828D77C023" commented="no"><enum>(B)</enum><text>is in effect on the date on which the expression of interest was submitted to the Secretary.</text></subparagraph></paragraph>
<paragraph id="H19F9BDFB1DBF4E63A11A5C65903ED698" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Land use plans terms and conditions</header><text display-inline="yes-display-inline">A lease issued by the Secretary under this section—</text> <subparagraph id="HA01AB028D61B4188A48994162BAC65E0" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">shall include any terms and conditions of the land use plan that apply to the area of the lease; and</text></subparagraph>
<subparagraph id="H38B58D5C380244BCBC39D44D40164A07" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">shall not require any stipulations or mitigation requirements not included in such land use plan. </text></subparagraph></paragraph></subsection></section><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H93980B3E9CAE45728FE2F87A5A19B9CE"><enum>(2)</enum><text>in subsection (p)—</text>
<subparagraph id="H1A8F2099F5D24D30A62645EE7C1C751C"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting <quote>conduct a complete review of the application with all applicable agency staff required for the Secretary to determine the application is complete and</quote> after <quote>drill, the Secretary shall</quote>; and</text></subparagraph> <subparagraph id="HEA0D7BDBF9D541C5AF2CA968ECECE09B"><enum>(B)</enum><text>by adding at the end the following:</text>
<quoted-block id="H9D739D36F2304968B53DB301C4116D36" style="OLC">
<paragraph id="HA6E2BC569AB440A4B968A10937D4FC98" commented="no"><enum>(4)</enum><header>Term</header><text>A permit to drill approved under this subsection shall be valid for a single, nonrenewable 4-year period beginning on the date that the permit to drill is approved.</text></paragraph> <paragraph id="HA3CB6341F03B4D5CABF75B8FE1C61B4D" commented="no"><enum>(5)</enum><header>Effect of pending civil action on processing applications for permits to drill</header><text display-inline="yes-display-inline">Pursuant to the requirements of paragraph (2), notwithstanding the existence of any pending civil actions affecting the application or a related lease issued under this Act, the Secretary shall process an application for a permit to drill or other authorizations or approvals under a lease issued under this Act.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HD5DBCA0CBD964823A4B9721575E20442"><enum>(3)</enum><text>by striking subsection (q) and inserting the following:</text> <quoted-block style="OLC" id="H55B8E44090E9474CA850C7716C03C650" display-inline="no-display-inline"> <subsection id="HE8C4FE6473B54B62BF3F579E56A5E42F" commented="no"><enum>(q)</enum><header>Other requirements</header><text display-inline="yes-display-inline">In utilizing the authorities provided by section 390 of the Energy Policy Act of 2005 with respect to an activity conducted pursuant to this Act, the Secretary of the Interior shall not consider whether there are any extraordinary circumstances.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section>
<section id="H081E18B01980415CA509FBB4B6176512" commented="no"><enum>80102.</enum><header>Noncompetitive leasing</header>
<subsection id="H4F9E5EE474564723AC5CADC7E58EFDD9" commented="no"><enum>(a)</enum><header>Noncompetitive leasing</header><text display-inline="yes-display-inline">Section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is further amended—</text> <paragraph id="HCD41F9831EA64D3F99BEE0E153A69B43" commented="no"><enum>(1)</enum><text>in subsection (b)—</text>
<subparagraph id="HF738DE429C7A4EC592C1AC06049AB0B9" commented="no"><enum>(A)</enum><text>in paragraph (1)(A)—</text> <clause id="HB98F0A00D69B4B04B7F78C57DD76DDDE" commented="no"><enum>(i)</enum><text>in the first sentence, by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (2) or (3)</quote>; and</text></clause>
<clause id="H05A4E983A5B947C494AC967D43F542D7" commented="no"><enum>(ii)</enum><text>by adding at the end <quote>Lands for which no bids are received or for which the highest bid is less than the national minimum acceptable bid shall be offered promptly within 30 days for leasing under subsection (c) of this section and shall remain available for leasing for a period of 2 years after the competitive lease sale.</quote>; and</text></clause></subparagraph> <subparagraph id="HC954C307156349829AAD4749DC72B4CF" commented="no"><enum>(B)</enum><text>by adding at the end the following:</text>
<quoted-block id="HAF682CD6019A46FFA213815113BFBD8A" style="OLC">
<paragraph id="HDA5D378FE7394F1B8AEB05C11FFA41FB" commented="no" indent="up1"><enum>(3)</enum>
<subparagraph id="H90D2A012F96B4F4A9D740DC42CB1C5BA" display-inline="yes-display-inline" commented="no"><enum>(A)</enum><text>If the United States held a vested future interest in a mineral estate that, immediately prior to becoming a vested present interest, was subject to a lease under which oil or gas was being produced, or had a well capable of producing, in paying quantities at an annual average production volume per well per day of either not more than 15 barrels per day of oil or condensate, or not more than 60,000 cubic feet of gas, the holder of the lease may elect to continue the lease as a noncompetitive lease under subsection (c)(1).</text></subparagraph> <subparagraph id="H48027F22634F4677A2DB67BC4E26FBF0" indent="up1" commented="no"><enum>(B)</enum><text>An election under this paragraph is effective—</text>
<clause id="H21A998168C3A4E468ABADE0DC930F39A" commented="no"><enum>(i)</enum><text>in the case of an interest which vested after January 1, 1990, and on or before October 24, 1992, if the election is made before the date that is 1 year after October 24, 1992;</text></clause> <clause id="HA92CA022DD7E4C72A073BBF9A1A75169" commented="no"><enum>(ii)</enum><text>in the case of an interest which vests within 1 year after October 24, 1992, if the election is made before the date that is 2 years after October 24, 1992; and</text></clause>
<clause id="H97FB62FE4A6F429FA277A507AC2476E4" commented="no"><enum>(iii)</enum><text>in any case other than those described in clause (i) or (ii), if the election is made prior to the interest becoming a vested present interest.</text></clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H9E49A7B52201458A9F345222276871B5" commented="no"><enum>(2)</enum><text>by striking subsection (c) and inserting the following:</text>
<quoted-block id="H86CB10A1580C4FBEAFAB18A3F3281682" style="OLC">
<subsection id="H4A6267D8C5614A289229A1D3D333D083" commented="no"><enum>(c)</enum><header>Lands subject to leasing under subsection (b); first qualified applicant</header>
<paragraph id="H91A9A3C2D11C49B7A38A0F06C77A8D0C" commented="no"><enum>(1)</enum><text>If the lands to be leased are not leased under subsection (b)(1) of this section or are not subject to competitive leasing under subsection (b)(2) of this section, the person first making application for the lease who is qualified to hold a lease under this chapter shall be entitled to a lease of such lands without competitive bidding, upon payment of a nonrefundable application fee of at least $75. A lease under this subsection shall be conditioned upon the payment of a royalty at a rate of 12.5 percent in amount or value of the production removed or sold from the lease. Leases shall be issued within 60 days of the date on which the Secretary identifies the first responsible qualified applicant.</text></paragraph> <paragraph id="HE3277C3B455F4D4F85A03FBCB242F8BC" commented="no"><enum>(2)</enum> <subparagraph id="H5749E3C8F41947FA9817CB475DE9B6A0" display-inline="yes-display-inline" commented="no"><enum>(A)</enum><text>Lands (i) which were posted for sale under subsection (b)(1) of this section but for which no bids were received or for which the highest bid was less than the national minimum acceptable bid and (ii) for which, at the end of the period referred to in subsection (b)(1) of this section no lease has been issued and no lease application is pending under paragraph (1) of this subsection, shall again be available for leasing only in accordance with subsection (b)(1) of this section.</text></subparagraph>
<subparagraph id="H0E79B85E5FE44D9BBF8CC84D3AA4DFCB" indent="up1" commented="no"><enum>(B)</enum><text>The land in any lease which is issued under paragraph (1) of this subsection or under subsection (b)(1) of this section which lease terminates, expires, is cancelled or is relinquished shall again be available for leasing only in accordance with subsection (b)(1) of this section.</text></subparagraph></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H2A2930761D7548E39E548797AE5420F3" commented="no"><enum>(3)</enum><text>by striking subsection (e) and inserting the following:</text>
<quoted-block id="H857B33A44E034B108FF86FE225DD4616" style="OLC">
<subsection id="H4AC24C3746DB429B93DCF01087AE05A5" commented="no"><enum>(e)</enum><header>Primary term</header><text>Competitive and noncompetitive leases issued under this section shall be for a primary term of 10 years: <italic>Provided</italic>, <italic>however</italic>, That competitive leases issued in special tar sand areas shall also be for a primary term of 10 years. Each such lease shall continue so long after its primary term as oil or gas is produced in paying quantities. Any lease issued under this section for land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced prior to the end of its primary term and are being diligently prosecuted at that time shall be extended for two years and so long thereafter as oil or gas is produced in paying quantities.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H45B30B57944F48838944EADDB9B7BC9D" commented="no"><enum>(b)</enum><header>Failure to comply with provisions of lease</header><text>Section 31 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/188">30 U.S.C. 188</external-xref>) is amended—</text>
<paragraph id="H636FBFAC9ED0466F9F1A58968EBE0A17" commented="no"><enum>(1)</enum><text>in subsection (d)(1), by striking <quote>section 17(b)</quote> and inserting <quote>subsection (b) or (c) of section 17 of this Act</quote>;</text></paragraph> <paragraph id="HA65B512917084E9DBB3B4EC10AEE6C95" commented="no"><enum>(2)</enum><text>in subsection (e)—</text>
<subparagraph id="H9272C5CCCDF54F63986CA021E9A88B00" commented="no"><enum>(A)</enum><text>in paragraph (2)—</text> <clause id="H17BB3A5F6E7D418DA63AB5EE20643C76" commented="no"><enum>(i)</enum><text>by inserting <quote>either</quote> after <quote>rentals and</quote>; and</text></clause>
<clause id="H911E14D468E246E893893CB077B5ADE2" commented="no"><enum>(ii)</enum><text>by inserting <quote>or the inclusion in a reinstated lease issued pursuant to the provisions of section 17(c) of this Act of a requirement that future rentals shall be at a rate not less than $5 per acre per year, all</quote> before <quote>as determined by the Secretary</quote>; and</text></clause></subparagraph> <subparagraph id="H988E6AA48FE64C5BA8A509396B98A509" commented="no"><enum>(B)</enum><text>by amending paragraph (3) to read as follows:</text>
<quoted-block id="HCBA4402A427D409D87DB8234E94B1E7C" style="OLC">
<paragraph id="H99AF28A200EC4618B138821AEE9ECD4D" commented="no"><enum>(3)</enum>
<subparagraph id="H443B62952D1A466AB22D8DC967523BD5" display-inline="yes-display-inline" commented="no"><enum>(A)</enum><text>payment of back royalties and the inclusion in a reinstated lease issued pursuant to the provisions of section 17(b) of this Act of a requirement for future royalties at a rate of not less than 16<fraction>2⁄3</fraction> percent computed on a sliding scale based upon the average production per well per day, at a rate which shall be not less than 4 percentage points greater than the competitive royalty schedule then in force and used for royalty determination for competitive leases issued pursuant to such section as determined by the Secretary: <italic>Provided</italic>, That royalty on such reinstated lease shall be paid on all production removed or sold from such lease subsequent to the termination of the original lease;</text></subparagraph> <subparagraph id="HA15BEF997F5645E39A5FA2E659329B5F" indent="up1" commented="no"><enum>(B)</enum><text>payment of back royalties and inclusion in a reinstated lease issued pursuant to the provisions of section 17(c) of this Act of a requirement for future royalties at a rate not less than 16<fraction>2⁄3 </fraction>percent: <italic>Provided</italic>, That royalty on such reinstated lease shall be paid on all production removed or sold from such lease subsequent to the cancellation or termination of the original lease; and</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HAB4BF7F7344F467DA54ABF973B1E7AC8" commented="no"><enum>(3)</enum><text>in subsection (f)—</text> <subparagraph id="H434D29E773C04C188B6AD0F9E1608D60" commented="no"><enum>(A)</enum><text>in paragraph (1), by striking <quote>in the same manner as the original lease issued pursuant to section 17</quote> and inserting <quote>as a competitive or a noncompetitive oil and gas lease in the same manner as the original lease issued pursuant to subsection (b) or (c) of section 17 of this Act</quote>;</text></subparagraph>
<subparagraph id="HF5FAEAD94A14421898AD8D9860117280" commented="no"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block id="HA5B6815E4A2A46979D553937CD42D2CB" style="OLC"> <paragraph id="HE8B0F81EDE22400F8FBC1F4D875085B8" commented="no" indent="up1"><enum>(4)</enum><text>Except as otherwise provided in this section, the issuance of a lease in lieu of an abandoned patented oil placer mining claim shall be treated as a noncompetitive oil and gas lease issued pursuant to section 17(c) of this Act.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HE1B9CC0B9FDA464498EA046812749C4C" commented="no"><enum>(4)</enum><text>in subsection (g), by striking <quote>subsection (d)</quote> and inserting <quote>subsections (d) and (j)</quote>;</text></paragraph> <paragraph id="H11589DA05E8B485B91F7824BB4A786D0" commented="no"><enum>(5)</enum><text>by amending subsection (h) to read as follows:</text>
<quoted-block id="HAEC9F44A975B4CD796DB58A65A168BDA" style="OLC">
<subsection id="HE0E5A3F9355C4115840FB3BA2431511C" commented="no"><enum>(h)</enum><header>Royalty reductions</header>
<paragraph id="H1948D704A6BF4F1FBEE6CE512275B8CC" commented="no"><enum>(1)</enum><text>In acting on a petition to issue a noncompetitive oil and gas lease, under subsection (j) of this section or in response to a request filed after issuance of such a lease, or both, the Secretary is authorized to reduce the royalty on such lease if in his judgment it is equitable to do so or the circumstances warrant such relief due to uneconomic or other circumstances which could cause undue hardship or premature termination of production.</text></paragraph> <paragraph id="H8CF6B71577FC42C5BA18014B435F0D82" commented="no"><enum>(2)</enum><text>In acting on a petition for reinstatement pursuant to subsection (d) of this section or in response to a request filed after reinstatement, or both, the Secretary is authorized to reduce the royalty in that reinstated lease on the entire leasehold or any tract or portion thereof segregated for royalty purposes if, in his judgment, there are uneconomic or other circumstances which could cause undue hardship or premature termination of production; or because of any written action of the United States, its agents or employees, which preceded, and was a major consideration in, the lessee’s expenditure of funds to develop the property under the lease after the rent had become due and had not been paid; or if in the judgment of the Secretary it is equitable to do so for any reason.</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="HE586C72F9F3C49CEAD0F8721E7105ADA" commented="no"><enum>(6)</enum><text>by adding at the end the following:</text> <quoted-block id="H6F24CA8F9E3A4D3A9B8E322E376002A3" style="OLC"> <subsection id="H48BBC3323F2E4375AE26FD03FE302618" commented="no"><enum>(j)</enum><header>Issuance of noncompetitive oil and gas lease; conditions</header><text>Where an unpatented oil placer mining claim validly located prior to February 24, 1920, which has been or is currently producing or is capable of producing oil or gas, has been or is hereafter deemed conclusively abandoned for failure to file timely the required instruments or copies of instruments required by section 1744 of title 43, and it is shown to the satisfaction of the Secretary that such failure was inadvertent, justifiable, or not due to lack of reasonable diligence on the part of the owner, the Secretary may issue, for the lands covered by the abandoned unpatented oil placer mining claim, a noncompetitive oil and gas lease, consistent with the provisions of section 17(e) of this Act, to be effective from the statutory date the claim was deemed conclusively abandoned. Issuance of such a lease shall be conditioned upon—</text>
<paragraph id="H6CE7BF12AA464D6AB421B7AB149AE08C" commented="no"><enum>(1)</enum><text>a petition for issuance of a noncompetitive oil and gas lease, together with the required rental and royalty, including back rental and royalty accruing from the statutory date of abandonment of the oil placer mining claim, being filed with the Secretary—</text> <subparagraph id="H9B59A8B47B7D492BB276F2DEC88F0C76" commented="no"><enum>(A)</enum><text>with respect to any claim deemed conclusively abandoned on or before January 12, 1983, on or before the one hundred and twentieth day after January 12, 1983; or</text></subparagraph>
<subparagraph id="H7A60C150F0364311A0E5F2F98BDD80F4" commented="no"><enum>(B)</enum><text>with respect to any claim deemed conclusively abandoned after January 12, 1983, on or before the one hundred and twentieth day after final notification by the Secretary or a court of competent jurisdiction of the determination of the abandonment of the oil placer mining claim;</text></subparagraph></paragraph> <paragraph id="H4D66EE595AEB4F368AC42BE87FC25D90" commented="no"><enum>(2)</enum><text>a valid lease not having been issued affecting any of the lands covered by the abandoned oil placer mining claim prior to the filing of such petition: <italic>Provided</italic>, <italic>however,</italic> That after the filing of a petition for issuance of a lease under this subsection, the Secretary shall not issue any new lease affecting any of the lands covered by such abandoned oil placer mining claim for a reasonable period, as determined in accordance with regulations issued by him;</text></paragraph>
<paragraph id="H2B6BD7F887BD4345AA2A2CFFD24B0BD2" commented="no"><enum>(3)</enum><text>a requirement in the lease for payment of rental, including back rentals accruing from the statutory date of abandonment of the oil placer mining claim, of not less than $5 per acre per year;</text></paragraph> <paragraph id="H11E66CB594AE46A98DE2A630F2C97ABB" commented="no"><enum>(4)</enum><text>a requirement in the lease for payment of royalty on production removed or sold from the oil placer mining claim, including all royalty on production made subsequent to the statutory date the claim was deemed conclusively abandoned, of not less than 12½ percent; and</text></paragraph>
<paragraph id="HD59D6E40969B498AB6F3F8FF2285FDF7" commented="no"><enum>(5)</enum><text>compliance with the notice and reimbursement of costs provisions of paragraph (4) of subsection (e) but addressed to the petition covering the conversion of an abandoned unpatented oil placer mining claim to a noncompetitive oil and gas lease.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H4C1A5B7A8DD74A6EA4A6398718647976" commented="no" section-type="subsequent-section"><enum>80103.</enum><header>Permit fees</header><text display-inline="no-display-inline">Section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is further amended by adding at the end the following:</text>
<quoted-block style="OLC" id="H949ED7B5A70C4B0BA292C27D6EDA40D5" display-inline="no-display-inline">
<subsection id="H6354C75D92D24F98A520C204E3EC5132" commented="no"><enum>(r)</enum><header>Fee for commingling of production</header>
<paragraph id="HDB7B93860C4D4EF29EDE9566E8F19517"><enum>(1)</enum><header>In general</header><text>The Secretary of the Interior shall approve applications allowing for the commingling of production from two or more sources (including the area of an oil and gas lease, the area included in a drilling spacing unit, a unit participating area, a communitized area, or non-Federal property) before production reaches the point of royalty measurement regardless of ownership, the royalty rates, and the number or percentage of acres for each source if the applicant pays an application fee of $10,000 and agrees to install measurement devices for each source, utilize an allocation method that achieves volume measurement uncertainty levels within plus or minus 2 percent during the production phase reported on a monthly basis, or utilize an approved periodic well testing methodology. Production from multiple oil and gas leases, drilling spacing units, communitized areas, or participating areas from a single wellbore shall be considered a single source. Nothing in this subsection shall prevent the Secretary of the Interior from continuing the current practice of exercising discretion to authorize higher percentage volume measurement uncertainty levels if appropriate technical and economic justifications have been provided.</text></paragraph> <paragraph id="H562B9E009A4249D99B98E51E62DB7099"><enum>(2)</enum><header>Revenue allocation</header><text display-inline="yes-display-inline">Fees received under this subsection shall be deposited into the Treasury as miscellaneous receipts.</text></paragraph></subsection>
<subsection id="H0665598E80B14D7CB4CC8EBBDA512494"><enum>(s)</enum><header>Fees for permits-by-rule</header>
<paragraph id="HF1B8160B7E364CC8B70A8CE76AB90317" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall establish, by regulation not later than 2 years after the date of enactment of this subsection, a permit-by-rule process under which a leaseholder may receive approval to drill for oil and gas if the leaseholder certifies compliance with such regulations and pays a fee of $5,000. Such permit-by-rule process shall allow drilling operations to commence no later than 45 days after the leaseholder has filed a registration that certifies compliance with such regulations and paid the fee required by this paragraph.</text></paragraph> <paragraph id="HB77DDA70579B4DC38CBC1CCE5D5015B8"><enum>(2)</enum><header>Revenue allocation</header><text display-inline="yes-display-inline">Fees received under this subsection shall be deposited into the Treasury as miscellaneous receipts.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H78A72E98C6674A1696663547B0EE9953" commented="no"><enum>80104.</enum><header>Permitting fee for non-Federal land</header>
<subsection id="H31DE11C9DF2044DCBD670E5ED4088004" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>), but subject to any applicable State requirements, the Secretary of the Interior shall not require a permit to drill for an oil and gas lease under the Mineral Leasing Act for an action occurring within an oil and gas drilling or spacing unit if the leaseholder pays a fee of $5,000 and—</text> <paragraph id="HE2A694DD75C340159429BDAEEDB8740C" commented="no"><enum>(1)</enum><text>the Federal Government—</text>
<subparagraph id="H1FE7C7B65A1B4D6885DF3158E9A2C36E" commented="no"><enum>(A)</enum><text>owns less than 50 percent of the minerals within the oil and gas drilling or spacing unit; and</text></subparagraph> <subparagraph id="H339E81EEF1A94248AA035113E1ACDCF1" commented="no"><enum>(B)</enum><text>does not own or lease the surface estate within the area directly impacted by the action; or</text></subparagraph></paragraph>
<paragraph id="HF5993263E3934D3D94F0439F95E38DD9" commented="no"><enum>(2)</enum><text>the well is located on non-Federal land overlying a non-Federal mineral estate, but some portion of the wellbore traverses but does not produce from the Federal mineral estate subject to the lease.</text></paragraph></subsection> <subsection id="HD918EAD7F6374FE59A6BE2194A49F244" commented="no"><enum>(b)</enum><header>Notification</header><text>For each State permit to drill or drilling plan that would impact or extract oil and gas owned by the Federal Government—</text>
<paragraph id="H25CF7C523D8C4CE3BF773E85040B854E" commented="no"><enum>(1)</enum><text>each lessee of Federal minerals in the unit, or designee of a lessee, shall—</text> <subparagraph id="HFEC6DD596B314613BE03AB1612FFD4AA" commented="no"><enum>(A)</enum><text>notify the Secretary of the Interior of the submission of a State application for a permit to drill or drilling plan on submission of the application;</text></subparagraph>
<subparagraph id="H3521F917E76B4068A94CF2013895C8F2" commented="no"><enum>(B)</enum><text>provide a copy of the application described in subparagraph (A) to the Secretary of the Interior not later than 5 days after the date on which the permit or plan is submitted; and</text></subparagraph> <subparagraph id="HF9E7D7ACD5014FD6BDC9F33BE7EE59D8" commented="no"><enum>(C)</enum><text>pay to the Secretary of the Interior the $5,000 fee referenced in subsection (a) of this section;</text></subparagraph></paragraph>
<paragraph id="HCD7A6954180441A1818DB6FD34C71355" commented="no"><enum>(2)</enum><text>each lessee, designee of a lessee, or applicable State shall notify the Secretary of the Interior of the approved State permit to drill or drilling plan not later than 45 days after the date on which the permit or plan is approved; and</text></paragraph> <paragraph id="HEEE5ACDE7A584824A8D00C5B89F33C96" commented="no"><enum>(3)</enum><text>each lessee or designee of a lessee shall provide, prior to commencing drilling operations, agreements authorizing the Secretary of the Interior to enter non-Federal land, as necessary, for inspection and enforcement of the terms of the Federal lease.</text></paragraph></subsection>
<subsection id="HB7819AD1D1AB474392EB66B06435D814" commented="no"><enum>(c)</enum><header>Effect</header><text>Nothing in this section affects the amount of royalties due to the Federal Government from the production of the Federal minerals within the oil and gas drilling or spacing unit.</text></subsection> <subsection id="HECC4476CBE27497CB777596981E8DE49"><enum>(d)</enum><header>Revenue allocation</header><text display-inline="yes-display-inline">Fees received under this section shall be deposited into the Treasury as miscellaneous receipts.</text></subsection>
<subsection id="HBF250D3E2DBB44439108413EEDD0746D" commented="no"><enum>(e)</enum><header>Authority on non-Federal land</header><text>Section 17(g) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226(g)</external-xref>) is amended—</text> <paragraph id="H0E6C5077BE6F41BA88DC139CA7D0193E" commented="no"><enum>(1)</enum><text>by striking the subsection designation and all that follows through <quote>Secretary of the Interior, or</quote> in the first sentence and inserting the following:</text>
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<subsection id="HF7C3CB889E1E420EA5A05EDE5E719E10"><enum>(g)</enum><header>Regulation of surface disturbing activities</header>
<paragraph id="HB7214BD5248A4B5682970D745B055E1E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of the Interior, or</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H670E565B9A3B4504923FC4DC57673EFD" commented="no"><enum>(2)</enum><text>by adding at the end the following:</text>
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<paragraph id="HEC9A85667CE44AE088AC4765D402E189" commented="no"><enum>(2)</enum><header>Authority on non-Federal land</header>
<subparagraph id="H6DDEB4E2C407403BA9E01958E41B3808"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an oil and gas lease under this Act on land described in subparagraph (B) located within an oil and gas drilling or spacing unit, nothing in this Act authorizes the Secretary of the Interior to—</text> <clause id="H56ED2ABFE23943098EAF5AA675FCF480"><enum>(i)</enum><text display-inline="yes-display-inline">require a bond to protect non-Federal land;</text></clause>
<clause id="HEA1934A4D5954853A0199589835D5C21"><enum>(ii)</enum><text>enter non-Federal land without the consent of the applicable landowner;</text></clause> <clause id="H909E2BBDCFC04CB5B7CD76186890350C"><enum>(iii)</enum><text>impose mitigation requirements; or</text></clause>
<clause id="H908080B215CF43BF833EC95859F7DA0D"><enum>(iv)</enum><text>require approval for surface reclamation.</text></clause></subparagraph> <subparagraph id="H7FB9727F817A46FC92907440D21535EB"><enum>(B)</enum><header>Land</header><text>Land referred to in subparagraph (A) is land where—</text>
<clause id="H33B3D96812014936A49948CFFE6E48EC"><enum>(i)</enum><text>the Federal Government—</text> <subclause id="HF07253B6B8454BADB66821595470E917"><enum>(I)</enum><text>owns less than 50 percent of the minerals within the oil and gas drilling or spacing unit; and</text></subclause>
<subclause id="H8DE1BD0375DA4ADCBED93CFE72B1C23C"><enum>(II)</enum><text>does not own or lease the surface estate within the area directly impacted by the action;</text></subclause></clause> <clause id="H668383A0C9634EC6A2ECB3592064ED16"><enum>(ii)</enum><text>the well is located on non-Federal land overlying a non-Federal mineral estate, but some portion of the wellbore enters and produces from the Federal mineral estate subject to the lease; or</text></clause>
<clause id="HD293A8D6EAC741B8A807B465EA969D66"><enum>(iii)</enum><text>the well is located on non-Federal land overlying a non-Federal mineral estate, but some portion of the wellbore traverses but does not produce from the Federal mineral estate subject to the lease.</text></clause></subparagraph> <subparagraph id="H06C39E7459874B6088C5B8E407E8ED13"><enum>(C)</enum><header>No Federal action</header><text>An oil and gas exploration or production activity carried out under a lease described in subparagraph (A)—</text>
<clause id="HFEBAE4FB87394DFD830867429ACC2B10"><enum>(i)</enum><text>shall require no Federal action; and</text></clause> <clause id="H9909B4CE79CD48B699FA2B53438177FD"><enum>(ii)</enum><text>may commence 30 days after the leaseholder submits the State permit to the Secretary.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section>
<section id="H284807B8374544638D5DF966A8856ED9" commented="no"><enum>80105.</enum><header>Reinstate reasonable royalty rates</header>
<subsection id="H37B305FCAD34421F98DB9A82351DC472" commented="no"><enum>(a)</enum><header>Offshore oil and gas royalty rate</header><text>Section 8(a)(1) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(1)</external-xref>) is amended—</text> <paragraph id="H18B504651DAD4EAD923BFAEA26C866CD" commented="no"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>not less than 16<fraction>2⁄3</fraction> percent, but not more than 18<fraction>3⁄4</fraction> percent, during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, and not less than 16<fraction>2⁄3</fraction> percent thereafter,</quote> and inserting <quote>not less than 12.5 percent, but not more than 18<fraction>3⁄4</fraction> percent,</quote>;</text></paragraph>
<paragraph id="HA74CBD2C3A304A6896A69A55B071BFC2" commented="no"><enum>(2)</enum><text>in subparagraph (C), by striking <quote>not less than 16<fraction>2⁄3</fraction> percent, but not more than 18<fraction>3⁄4</fraction> percent, during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, and not less than 16<fraction>2⁄3</fraction> percent thereafter,</quote> and inserting <quote>not less than 12.5 percent, but not more than 18<fraction>3⁄4</fraction> percent,</quote>;</text></paragraph> <paragraph id="H721BA8CCD4754F178E27A308B4F0EB8B" commented="no"><enum>(3)</enum><text>in subparagraph (F), by striking <quote>not less than 16<fraction>2⁄3</fraction> percent, but not more than 18<fraction>3⁄4</fraction> percent, during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, and not less than 16<fraction>2⁄3</fraction> percent thereafter,</quote> and inserting <quote>not less than 12.5 percent, but not more than 18<fraction>3⁄4</fraction> percent,</quote>; and</text></paragraph>
<paragraph id="H3BBBD776B0A2493483E55CD5FB068286" commented="no"><enum>(4)</enum><text>in subparagraph (H), by striking <quote>not less than 16<fraction>2⁄3</fraction> percent, but not more than 18<fraction>3⁄4</fraction> percent, during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, and not less than 16<fraction>2⁄3</fraction> percent thereafter,</quote> and inserting <quote>not less than 12.5 percent, but not more than 18<fraction>3⁄4</fraction> percent,</quote>.</text></paragraph></subsection> <subsection id="HA794607183854A81B635634527DE808D" commented="no"><enum>(b)</enum><header>Onshore oil and gas royalty rates</header><text>Section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is amended—</text>
<paragraph id="H11A4CC84ED364AF9BB4F64131F517B3D" commented="no"><enum>(1)</enum><text>in subsection (b)—</text> <subparagraph id="HD297A4E90A5943D1AD0AA8D02930568D" commented="no"><enum>(A)</enum><text>in paragraph (1)(A), by striking <quote>the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, 16<fraction>2/3</fraction></quote> and inserting <quote>subsection (s), 12.5</quote>; and</text></subparagraph>
<subparagraph id="HA44D91A9815F45E3B6CF0DD0CF5A5EB5" commented="no"><enum>(B)</enum><text>in paragraph (2)(A)(ii), by striking <quote>16<fraction>2/3</fraction> percent</quote> and inserting <quote>16<fraction>2/3</fraction> percent or, in the case of a lease issued on or after the date of enactment of subsection (s), 12.5 percent</quote>;</text></subparagraph></paragraph> <paragraph id="H2B6CB4C31E5D4005A0A70A3146F37A9F" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (l), by striking <quote>16<fraction>2/3</fraction> percent</quote> each place it appears and inserting <quote>16<fraction>2/3</fraction> percent or, in the case of a lease issued on or after the date of enactment of subsection (s), 12.5 percent</quote>; and</text></paragraph>
<paragraph id="HC0033557460246C0951FBC4D4D491E34" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (n)(1)(C), by striking <quote>16<fraction>2/3</fraction> percent</quote> and inserting <quote>16<fraction>2/3</fraction> percent or, in the case of a lease issued on or after the date of enactment of subsection (s), 12.5 percent</quote>.</text></paragraph></subsection></section></part> <part id="H92BAE234FA544DB784DC0D6ED5AA8077"><enum>2</enum><header>Geothermal</header> <section id="H482B22388BA941819788CA1AD92EC4FE" commented="no"><enum>80111.</enum><header>Geothermal leasing</header><text display-inline="no-display-inline">Section 4(b) of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1003">30 U.S.C. 1003(b)</external-xref>) is amended—</text>
<paragraph id="H917654C0631A42C3BE7458AD76194B57" commented="no"><enum>(1)</enum><text>in paragraph (2), by striking <quote>2 years</quote> and inserting <quote>year</quote>; and</text></paragraph> <paragraph id="HFC6CD30ABD214C298FF39ED6E83A6027" commented="no"><enum>(2)</enum><text>by adding at the end the following:</text>
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<paragraph id="H1379E119530640BE9082DC4C9C584C2E" commented="no"><enum>(5)</enum><header>Replacement sales</header><text>If a lease sale under paragraph (2) for a year is canceled or delayed, the Secretary of the Interior shall conduct a replacement sale during the same year.</text></paragraph> <paragraph id="H816D2DF2888A45FABFB3BC689E10202B" commented="no"><enum>(6)</enum><header>Requirement</header><text>In conducting a lease sale under paragraph (2) in a State described in that paragraph, the Secretary of the Interior shall offer all nominated parcels eligible for geothermal development and utilization under a land use plan developed or revised under section 202 of the Federal Land Policy and Management Act of 1976 that is in effect for the State.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H7855218BC4C14ECB893F1F09CB41F190" commented="no"><enum>80112.</enum><header>Geothermal royalties</header><text display-inline="no-display-inline">Section 5(a)(1) of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004(a)(1)</external-xref>) is amended—</text> <paragraph id="H9AE21B0F847A4A3394A9D7EDDFBCD8CB" commented="no"><enum>(1)</enum><text>in subparagraph (A)—</text>
<subparagraph id="H606846A236424D809E51327FE87315E9" commented="no"><enum>(A)</enum><text>by inserting <quote>with respect to each electric generating facility producing electricity,</quote> before <quote>not less than</quote>; and</text></subparagraph> <subparagraph id="HE44C4F81F7C64FDF81D78D07585BDDBD" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting by <quote>by such facility</quote> after <quote>produced</quote>; and</text></subparagraph></paragraph>
<paragraph id="H0CB5C7FFB80748F5BE97DA7DBE3DAE9B" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text> <subparagraph id="H62063D799F594A8E8845D91E2BDE0EC0" commented="no"><enum>(A)</enum><text>by inserting <quote>with respect to each electric generating facility producing electricity,</quote> before <quote>not less than</quote>; and</text></subparagraph>
<subparagraph id="H84DD3BC4C5B246C59F566319FDF98383" commented="no"><enum>(B)</enum><text>by inserting by <quote>by such facility</quote> after <quote>produced</quote>.</text></subparagraph></paragraph></section></part> <part id="H982EB6BE81DB4391B909E74059901216"><enum>3</enum><header>Alaska</header> <section id="H831CAC5B133A48FDAB99A9C7C82BFEFF"><enum>80121.</enum><header>Coastal plain oil and gas leasing</header> <subsection id="H9D8206B6F5B74DF9AD8E5FF79BDD5C8A"><enum>(a)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H3B38D8D27E1747FC90BA7ED6F955CC94"><enum>(1)</enum><header>Coastal Plain</header><text>The term <term>Coastal Plain</term> has the meaning given the term in section 20001(a) of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/16/3143">16 U.S.C. 3143</external-xref> note).</text></paragraph> <paragraph id="H2B138FD22CC84A60A19ADAFA86A4B1B0"><enum>(2)</enum><header>Oil and gas program</header><text>The term <term>oil and gas program</term> means the oil and gas program established under section 20001(b)(2) of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/16/3143">16 U.S.C. 3143</external-xref> note).</text></paragraph>
<paragraph id="H67915CF2FD6C4CF4808FA21C0B2126D8"><enum>(3)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Interior.</text></paragraph></subsection> <subsection id="HDCBF01293D424D2FA8F8774B717F3217" commented="no"><enum>(b)</enum><header>Administration</header><text>Not later than 30 days after the date of enactment of this Act, the Secretary shall—</text>
<paragraph id="H3D3D6A1507724DC1BCFB57A6DCB7FEAE" commented="no"><enum>(1)</enum><text>withdraw—</text> <subparagraph id="H9499E47F54994F39AAC644022B66D390" commented="no"><enum>(A)</enum><text>the supplemental environmental impact statement described in the notice of availability of the Bureau of Land Management entitled <quote>Notice of Availability of the Final Coastal Plain Oil and Gas Leasing Program Supplemental Environmental Impact Statement, Alaska</quote> (89 Fed. Reg. 88805 (November 8, 2024)); and</text></subparagraph>
<subparagraph id="H7D0E69456FC748EEBEBFB253651F65A7" commented="no"><enum>(B)</enum><text>the record of decision described in the notice of availability of the Bureau of Land Management entitled <quote>Notice of Availability of the Record of Decision for the Final Supplemental Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska</quote> (89 Fed. Reg. 101042 (December 13, 2024)); and</text></subparagraph></paragraph> <paragraph id="HF8751BAB03FB4B2E9392A4FF48095BB0" commented="no"><enum>(2)</enum><text>reinstate—</text>
<subparagraph id="HB4D2BFA32D0F47C2834A7C9258FACAA8" commented="no"><enum>(A)</enum><text>the environmental impact statement described in the notice of availability of the Bureau of Land Management entitled <quote>Notice of Availability of the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska</quote> (84 Fed. Reg. 50472 (September 25, 2019)); and</text></subparagraph> <subparagraph id="H7CA02CC54B7348DDBECCF087D4BD5E93" commented="no"><enum>(B)</enum><text>the record of decision described in the notice of availability of the Bureau of Land Management entitled <quote>Notice of Availability of the Record of Decision for the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska</quote> (85 Fed. Reg. 51754 (August 21, 2020)).</text></subparagraph></paragraph></subsection>
<subsection id="HFF1EFF1628F64AE687676E8A29C66C03"><enum>(c)</enum><header>Reissuance of cancelled leases</header>
<paragraph id="H88E6C9B20FCC4D748777516209C89C83"><enum>(1)</enum><header>Acceptance of bids</header><text>Not later than 30 days after the date of enactment of this Act, the Secretary shall, without modification or delay—</text> <subparagraph id="H4E47A074315347F7A7F0D065A51F3CA6"><enum>(A)</enum><text>accept the highest valid bid for each Coastal Plain lease tract for which a valid bid was received on January 6, 2021, pursuant to the requirement to hold the first lease sale under section 20001(c)(1)(A) of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/16/3143">16 U.S.C. 3143</external-xref> note); and</text></subparagraph>
<subparagraph id="HC2299A6410DA4D1AA5665A547DFAB96C"><enum>(B)</enum><text>provide the appropriate lease form to each successful bidder under subparagraph (A) to execute and return to the Secretary.</text></subparagraph></paragraph> <paragraph id="H314D9741D24346EA9DA4B67E14905661" commented="no"><enum>(2)</enum><header>Lease issuance</header><text display-inline="yes-display-inline">On receipt of an executed lease form under paragraph (1)(B) and payment in accordance with that lease of the rental for the first year, the balance of the bonus bid (unless deferred), and any required bond or security from the successful bidder, the Secretary shall promptly issue to the successful bidder a fully executed lease, in accordance with—</text>
<subparagraph id="H81A44F26ED214B98B3019CE6A3C5702B" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the applicable regulations, as in effect on January 6, 2021; and </text></subparagraph> <subparagraph id="H416359B8350C48B5A9F951DBED2A67DD" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">the terms and conditions of the record of decision described in subsection (b)(2)(B).</text></subparagraph></paragraph>
<paragraph id="H9428077CE4F04D82A44F5AA94C2F729C" commented="no"><enum>(3)</enum><header>Terms and conditions</header><text display-inline="yes-display-inline">Leases reissued pursuant to this subsection shall include the terms and conditions from the record of decision described in the notice of availability of the Bureau of Land Management entitled <quote>Notice of Availability of the Record of Decision for the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska</quote> (85 Fed. Reg. 51754 (August 21, 2020)).</text></paragraph> <paragraph id="HC2DB8BB85B854644BFA9904B94BAE295"><enum>(4)</enum><header>Exception</header><text>This subsection shall not apply to any bid for which a lease was issued and subsequently relinquished by the successful bidder prior to the date of enactment of this Act.</text></paragraph></subsection>
<subsection id="H92A3DE411BA549C5B44C5E12D43AC79A"><enum>(d)</enum><header>Lease sales required</header>
<paragraph id="HDCC7DEEE35E0446AB25C8AF937CFE56F"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), in addition to the lease sales required under section 20001(c)(1)(A) of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/16/3143">16 U.S.C. 3143</external-xref> note), the Secretary shall conduct not fewer than 4 lease sales area-wide under the oil and gas program by not later than 10 years after the date of the enactment of this Act.</text></paragraph> <paragraph id="H77326B4C429F40689187CE8DA9B40880"><enum>(2)</enum><header>Sale acreages; schedule</header><text>The Secretary shall offer—</text>
<subparagraph id="HE22A8EFA646B4F7883223F6345F5632B"><enum>(A)</enum><text>an initial lease sale under paragraph (1) not later than 1 year after the date of the enactment of this Act;</text></subparagraph> <subparagraph id="HD115F39551F74B9BBA2513CE9F6184DE"><enum>(B)</enum><text>a second lease sale under paragraph (1) not later than 3 years after the date of the enactment of this Act;</text></subparagraph>
<subparagraph id="HF487762E70744406904064601811A4DC"><enum>(C)</enum><text>a third lease sale under paragraph (1) not later than 5 years after the date of the enactment of this Act; </text></subparagraph> <subparagraph id="H437D30E9D22540C78CB5A8545A4A9277"><enum>(D)</enum><text>a fourth lease sale under paragraph (1) not later than 7 years after the date of the enactment of this Act; and</text></subparagraph>
<subparagraph id="H7B35DF83CBA14144A60B3E80E88A0B6F"><enum>(E)</enum>
<clause id="H0A95E1F0CB8840899A47E71FEFB93C35" display-inline="yes-display-inline"><enum>(i)</enum><text>not fewer than 400,000 acres area-wide in each lease sale, including those areas that have the highest potential for the discovery of hydrocarbons; or</text></clause> <clause id="H4064CF9816464A9895489F5FB0F10DCF" indent="up1" commented="no"><enum>(ii)</enum><text>the total number of unleased acres subject to the provisions of this section if that total number of available acres is less than 400,000 acres.</text></clause></subparagraph></paragraph>
<paragraph id="H61FBB198A0AB4851872C5584BD4E7637" commented="no"><enum>(3)</enum><header>Leasing certainty</header><text>The record of decision described in subsection (b)(2)(B) shall be considered to satisfy the requirements of—</text> <subparagraph id="H56FFDB21DC264D839A6CE3F35E4DD82E" commented="no"><enum>(A)</enum><text>the Alaska National Interest Lands Conservation Act;</text></subparagraph>
<subparagraph id="HE3BE4D94658441899F346502AFF1881D" commented="no"><enum>(B)</enum><text>the National Environmental Policy Act of 1969;</text></subparagraph> <subparagraph id="HE34C35775B804E6083A613B03C574313" commented="no"><enum>(C)</enum><text>Public Law 115–97;</text></subparagraph>
<subparagraph id="H851882656003462784B0543C5C480462" commented="no"><enum>(D)</enum><text>the Endangered Species Act of 1973;</text></subparagraph> <subparagraph id="HBBC07B815A024A46BC6C8AECE2AA82CE" commented="no"><enum>(E)</enum><text>subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code, and <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code; and</text></subparagraph>
<subparagraph id="H2B5A618C4DC54FDEAEC6DF51CB3A773F" commented="no"><enum>(F)</enum><text display-inline="yes-display-inline">the Marine Mammal Protection Act of 1972.</text></subparagraph></paragraph></subsection> <subsection id="H3B33421102B646EC960F763E254CEEA8" commented="no"><enum>(e)</enum><header>Lease issuance</header><text display-inline="yes-display-inline">Leases shall be reissued or issued under subsections (c) and (d)—</text>
<paragraph id="HC017066C44F248D49F9C017834FB26F3" commented="no"><enum>(1)</enum><text>not later than 60 days after payment by the successful bidder of the remainder of the bonus bid, if any, and the annual rental for the first lease year;</text></paragraph> <paragraph id="HCA6703543FB24AD1A0E730B5730C3061" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">in accordance with the applicable regulations, as in effect on January 6, 2021; and </text></paragraph>
<paragraph id="H76CE765234E04027B3FA1C2AF5EEB7AF" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">in accordance with the terms and conditions from the record of decision described in the notice of availability of the Bureau of Land Management entitled <quote>Notice of Availability of the Record of Decision for the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska</quote> (85 Fed. Reg. 51754 (August 21, 2020)).</text></paragraph></subsection> <subsection id="H60F1737649D64097879405736B90E1E6" commented="no"><enum>(f)</enum><header>Geophysical surveys</header><text display-inline="yes-display-inline">Not later than 30 days after the date on which the Secretary receives a complete application pursuant to section 3152.1 of title 43, Code of Federal Regulations (or any successor regulations), to conduct oil and gas geophysical exploration operations in the Coastal Plain, the Secretary shall approve such application.</text></subsection>
<subsection id="H5E7A7D338FCB4037BA7CBA74BB97B75C" commented="no"><enum>(g)</enum><header>Receipts</header><text display-inline="yes-display-inline">Notwithstanding section 35 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/191">30 U.S.C. 191</external-xref>) and section 20001(b)(5) of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/16/668dd">16 U.S.C. 668dd</external-xref> note), of the amount of adjusted bonus, rental, and royalty receipts derived from the oil and gas program and operations on the Coastal Plain pursuant to this section—</text> <paragraph id="H6ECA375A6A334164894C2261C8C575D0" commented="no"><enum>(1)</enum> <subparagraph id="H104859A9C60F4912BF536D176E45796B" display-inline="yes-display-inline" commented="no"><enum>(A)</enum><text>for fiscal years 2025 through 2034, 50 percent shall be paid to the State of Alaska; and</text></subparagraph>
<subparagraph id="H7A65B40318F541DC9C949B3D51769DFB" indent="up1" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">for fiscal year 2035 and thereafter, 90 percent shall be paid to the State of Alaska; and</text></subparagraph></paragraph> <paragraph id="HB7BBD85FB4DA4AA6A79125D923B081B7" commented="no"><enum>(2)</enum><text>the balance shall be deposited into the Treasury as miscellaneous receipts.</text></paragraph></subsection>
<subsection id="H4A61265FDFA7446A8108D8FFA167D0EA"><enum>(h)</enum><header>Judicial preclusion</header>
<paragraph id="HF72E30DB33874E46BFF96FA924F8FD91"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), no court shall have jurisdiction to review any action taken by the Secretary, the Administrator of the Environmental Protection Agency, or a State or municipal government administrative agency to—</text> <subparagraph id="H473F21CE33364CC09365D9203F37BD08" commented="no"><enum>(A)</enum><text>reissue a lease pursuant to subsection (c) or issue a lease under a lease sale conducted under subsection (d); or</text></subparagraph>
<subparagraph id="H8A688A56C431483D9E1E3BBDEBCF7F74"><enum>(B)</enum><text>grant or issue a right-of-way, easement, authorization, permit, verification, biological opinion, incidental take statement, or other approval for a lease reissued pursuant to subsection (c) or issued under a lease sale conducted under subsection (d), whether reissued or issued prior to, on, or after the date of the enactment of this Act, and including any lawsuit or any other action pending in a court as of the date of enactment of this Act.</text></subparagraph></paragraph> <paragraph id="HC2716623403E443EA112A6CB04D73286" commented="no"><enum>(2)</enum><header>Petition by leaseholder</header> <subparagraph id="H01928269A65840A8BCB235B1561C1F27" commented="no"><enum>(A)</enum><header>In general</header><text>A leaseholder or the State of Alaska may obtain a review of an alleged failure by the Secretary to act in accordance with this section or with any law pertaining to granting or issuing a lease, right-of-way, easement, authorization, permit, verification, biological opinion, incidental take statement, or other approval related to a lease under this section by filing a written petition with a court of competent jurisdiction seeking an order.</text></subparagraph>
<subparagraph id="HCAA43834A25A4801851067987C4C766B" commented="no"><enum>(B)</enum><header>Deadlines</header><text display-inline="yes-display-inline">If a court of competent jurisdiction finds pursuant to subparagraph (A) that an agency has failed to act in accordance with this section or with any law pertaining to granting or issuing a lease, right-of-way, easement, authorization, permit, verification, biological opinion, incidental take statement, or other approval related to a lease under this section, the court shall set a schedule and deadline for the agency to act as soon as practicable, which shall not exceed 90 days from the date on which the order of the court is issued, unless the court determines a longer time period is necessary to comply with applicable law.</text></subparagraph></paragraph></subsection></section> </part> <part id="H12116688BC6D44379E2E9E23032219DA"><enum>4</enum><header>Coal</header> <section id="H34F3A6E441E34CB48DDF564B1EDEAB8D" commented="no"><enum>80141.</enum><header>Coal leasing</header> <subsection id="HFB05559A9B684ADDA8682F1C6D6D2126" commented="no"><enum>(a)</enum><header>Mandatory leasing and other required approvals</header><text display-inline="yes-display-inline">Not later than 90 days after the date of enactment of this Act in the case of a pending application, or not later than 90 days after the date of submission in the case of an application submitted after the date of the enactment of this Act, the Secretary of the Interior shall—</text>
<paragraph id="H8B465D39A4254AF3A4192D05E3BC2DC5" commented="no"><enum>(1)</enum><text>with respect to each qualified application—</text> <subparagraph id="H9700020FE2B343E1824E0ADFECB136DA" commented="no"><enum>(A)</enum><text>if not previously published for public comment, publish any required environmental review;</text></subparagraph>
<subparagraph id="H6CF7F0A35F3B4B1C83C0B15DCEDEB534" commented="no"><enum>(B)</enum><text>finalize the fair market value of the applicable coal tract;</text></subparagraph> <subparagraph id="H47EAEB8B87534F77A38A148EBAA8A095" commented="no"><enum>(C)</enum><text>hold a lease sale with respect to the applicable coal tract;</text></subparagraph>
<subparagraph id="H8A36A076B8C5499D905C9924B483D59F" commented="no"><enum>(D)</enum><text>take all other intermediate actions necessary to grant the qualified application; and</text></subparagraph> <subparagraph id="H11C69F5FEAA34E68ABC2AF5D60536AD5" commented="no"><enum>(E)</enum><text>after completing the actions required by subparagraphs (A) through (D), grant the qualified application and issue the applicable lease to the person that submitted the qualified application if that person submitted the highest bid in the lease sale held under subparagraph (C); and</text></subparagraph></paragraph>
<paragraph id="HE7C68C619284436D85DF3DB6B31B6569" commented="no"><enum>(2)</enum><text>with respect to previously issued coal leases, grant any additional approvals of the Department of the Interior required for mining activities to commence.</text></paragraph></subsection> <subsection id="H7BDC78A830AF42738F0102C4EA1EF8DC"><enum>(b)</enum><header>Leases for Known Recoverable Coal Resources</header><text display-inline="yes-display-inline">Notwithstanding section 2(a)(3)(A) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/201">30 U.S.C. 201(a)(3)(A)</external-xref>) and section 202(a) of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1712">43 U.S.C. 1712(a)</external-xref>), not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall make available for lease known recoverable coal resources of not less than 4,000,000 additional acres on Federal land west of the 100th meridian located in the 48 contiguous States and Alaska, but which shall not include any Federal land within—</text>
<paragraph id="HF322332381EE4C32B4E8C2D52CFFEEA6"><enum>(1)</enum><text display-inline="yes-display-inline">a National Monument;</text></paragraph> <paragraph id="H6567AFD75F2C48409A5847C58D84C749"><enum>(2)</enum><text>a National Recreation Area;</text></paragraph>
<paragraph id="H323EF94648BD4510B3778D6FD2D4AEE0"><enum>(3)</enum><text>a component of the National Wilderness Preservation System;</text></paragraph> <paragraph id="H7DC00DDF87B34E229718739B24BCD059"><enum>(4)</enum><text>a component of the National Wild and Scenic Rivers System;</text></paragraph>
<paragraph id="H9EBB046AC45F434D973DDC704DC5A84E"><enum>(5)</enum><text>a component of the National Trails System;</text></paragraph> <paragraph id="H0AD92FF59BC047C6B2EC1E091419D4D5"><enum>(6)</enum><text>a National Conservation Area;</text></paragraph>
<paragraph id="HF786EF0869FB41A6B7890D5293ADE0B8"><enum>(7)</enum><text>a unit of the National Wildlife Refuge System;</text></paragraph> <paragraph id="H1C6E436F8C594739AAB5B20D918390CE"><enum>(8)</enum><text>a unit of the National Fish Hatchery System;</text></paragraph>
<paragraph id="H677A81A578214CD396A3FC06C8E636DA"><enum>(9)</enum><text>a unit of the National Park System;</text></paragraph> <paragraph id="HE623F27643FD40858AB686E117061195"><enum>(10)</enum><text>a National Preserve;</text></paragraph>
<paragraph id="HFF137372A3D14035A134B7F9C2722890"><enum>(11)</enum><text>a National Seashore or National Lakeshore;</text></paragraph> <paragraph id="HE0234AD691004EF6A18C36D2DEE2E78C"><enum>(12)</enum><text>a National Historic Site;</text></paragraph>
<paragraph id="H091C15E8E34046A097EEB48185D3D633"><enum>(13)</enum><text>a National Memorial;</text></paragraph> <paragraph id="HA432CA93939542BEA76250AB58E66CA3"><enum>(14)</enum><text>a National Battlefield, National Battlefield Park, National Battlefield Site, or National Military Park; or</text></paragraph>
<paragraph id="HE33266CA161A4F1ABFB192BC0C7ACA60"><enum>(15)</enum><text>a National Historical Park.</text></paragraph></subsection> <subsection id="HC30D72E339794B729BD52820CFA21DF4" commented="no"><enum>(c)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H8691BC6DCB114106848E21418FEBE3C4" commented="no"><enum>(1)</enum><header>Coal lease</header><text>The term <term>coal lease</term> means a lease entered into by the United States as lessor, through the Bureau of Land Management, and an applicant on Bureau of Land Management Form 3400–012, or a successor form that contains terms of a coal lease.</text></paragraph> <paragraph id="HF9C6751ACF2E417286D4CD3A3295A0D2" commented="no"><enum>(2)</enum><header>Qualified application</header><text display-inline="yes-display-inline">The term <term>qualified application</term> means an application for a coal lease pending as of the date of enactment of this Act or submitted within 90 days thereafter under the lease by application program administered by the Bureau of Land Management pursuant to the Mineral Leasing Act.</text></paragraph></subsection></section>
<section id="H28ADE6F7649D46C4A98100AFA3861606" commented="no"><enum>80142.</enum><header>Future coal leasing</header><text display-inline="no-display-inline">Secretarial Order 3338, issued by the Secretary of the Interior on January 15, 2016, or any other actions limiting the Federal coal leasing program, shall have no force or effect.</text></section> <section id="H59358FEF45AF4A8B9DA7A93EEC7C2F25" commented="no"><enum>80143.</enum><header>Coal royalty</header> <subsection id="H9926726E8EEF4680AC30E2AD98F5EDAB" commented="no"><enum>(a)</enum><header>Rate</header><text display-inline="yes-display-inline">Section 7(a) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/207">30 U.S.C. 207(a)</external-xref>) is amended by striking <quote>12<fraction>1/2</fraction> per centum</quote> and inserting <quote>12<fraction>1/2</fraction> percent, except such amount shall be not more than 7 percent during the period that begins on the date of enactment of subsection (s) of section 17 and ends September 30, 2034,</quote>.</text></subsection>
<subsection id="HD3A8FF5084F04364A0DDC57ABE5DA490"><enum>(b)</enum><header>Retroactivity</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to a coal lease—</text> <paragraph id="H7F71F4211B7F4156A61BC21E8AA5B018"><enum>(1)</enum><text display-inline="yes-display-inline">issued under section 2 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/201">30 U.S.C. 201</external-xref>) before, on, or after the date of the enactment of this subtitle; and</text></paragraph>
<paragraph id="H676F323A4C714A258D65AD6E0A3B1323"><enum>(2)</enum><text>that has not been terminated.</text></paragraph></subsection> <subsection id="H27C352994F714BC585561DD99BCD9E95" commented="no"><enum>(c)</enum><header>Advance royalties</header> <paragraph id="H1E53FF49BEA9498EA68FBF80635CF8DA"><enum>(1)</enum><header>In general</header><text>With respect to a lease issued under section 2 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/201">30 U.S.C. 201</external-xref>) for which the lessee has paid advance royalties under section 7(b) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/30/207">30 U.S.C. 207(b)</external-xref>), the Secretary of the Interior shall provide to the lessee a credit for the difference between the amount paid by the lessee in advance royalties for the lease before the date of the enactment of this subtitle and the amount the lessee would have been required to pay if the amendment made by subsection (a) had been made before the lessee paid advance royalties for the lease.</text></paragraph>
<paragraph id="H5B3C554E7DB54D578DE16267B8FD6594"><enum>(2)</enum><header>Refund of excess credits</header><text display-inline="yes-display-inline">If a credit owed to a lessee pursuant to this subsection for prior payment of advance royalties is in excess of royalties owed at the conclusion of the term of the lease, the Secretary shall reimburse the lessee an amount equal to the credit less any royalties owed during that term.</text></paragraph></subsection></section> <section id="HEB38E50B04624E9983051014551BE521" commented="no"><enum>80144.</enum><header>Authorization to mine Federal minerals</header> <subsection id="H7CD207EB25494C6F9E8D3FFC0EB70714" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">All Federal coal reserves leased under Federal Coal Lease MTM 97988 located within the covered Federal land are authorized to be mined in accordance with the Bull Mountains Mining Plan Modification.</text></subsection>
<subsection id="HEEBDD9A5B45144848ECFDC075CBA906E" commented="no"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text> <paragraph id="H2EB8A677EDD24B2793E2AF3AF34C6444" commented="no"><enum>(1)</enum><header>Bull Mountains Mining Plan Modification</header><text display-inline="yes-display-inline">The term <term>Bull Mountains Mining Plan Modification</term> means the Mine No. 1, Amendment 3 mining plan modification for Federal coal lease MTM 97988 described in the memorandum of the Department of the Interior titled <quote>Recommendation regarding the previously approved mining plan modification for Federal Lease MTM–97988 at Signal Peak Energy, LLC’s Bull Mountains Mine No.1, located in Musselshell and Yellowstone Counties, Montana</quote> (November 18, 2020).</text></paragraph>
<paragraph id="H9FD4D3DEE5194AAE99ACD44B43A757D7" commented="no"><enum>(2)</enum><header>Covered Federal land</header><text>The term <term>covered Federal land</term> means the following land comprising approximately 800 acres:</text> <subparagraph id="HA263C54DA05648339474FFDCF1052952" commented="no"><enum>(A)</enum><text>The NE <fraction>1/4</fraction> of sec. 8, T. 6 N., R. 27 E., Montana Principal Meridian.</text></subparagraph>
<subparagraph id="H4F86493594E24873A592D9A40A0C1077" commented="no"><enum>(B)</enum><text>The SW <fraction>1/4</fraction> of sec. 10, T. 6 N., R. 27 E., Montana Principal Meridian.</text></subparagraph> <subparagraph id="H672E6AD74C8B472E8C5CC05B8D1C198C" commented="no"><enum>(C)</enum><text>The W <fraction>½</fraction>, SE <fraction>1/4</fraction> of sec. 22, T. 6 N., R. 27 E., Montana Principal Meridian.</text></subparagraph></paragraph></subsection></section></part>
<part id="H4397FD39F5AE46C4A687FE750F3924B5"><enum>5</enum><header>NEPA</header>
<section id="HA7BB00FE514B4FAC88A5E301CFA0C94A" display-inline="no-display-inline"><enum>80151.</enum><header>Project sponsor opt-in fees for environmental reviews</header><text display-inline="no-display-inline"> The National Environmental Policy Act of 1969 is amended by inserting after section 111 (<external-xref legal-doc="usc" parsable-cite="usc/42/4336e">42 U.S.C. 4336e</external-xref>) the following:</text> <quoted-block id="H1B22E761FA644BB78ADF7344A98C46FE" style="OLC"> <section id="HE9211061E8714974AAD83BC1CA0426A9"><enum>112.</enum><header>Project sponsor opt-in fees for environmental reviews</header> <subsection id="H903553E36C0140DBA172491989C73684"><enum>(a)</enum><header>Process</header> <paragraph id="HC9CB0D4648AA4AD5889A7B6E851E7BF6"><enum>(1)</enum><header>Project sponsor</header><text display-inline="yes-display-inline">A project sponsor who intends to pay a fee under this section for the preparation, or supervision of the preparation, of an environmental assessment or environmental impact statement with respect to the project of the project sponsor shall submit to the Council—</text>
<subparagraph id="H7612E0DFF2CD42D08BFC4305A2DBFDEA"><enum>(A)</enum><text>a description of the project; and</text></subparagraph> <subparagraph id="H120DDBF2D9B54D269FABC0A01732A6BD"><enum>(B)</enum><text display-inline="yes-display-inline">a declaration of whether the project sponsor intends to prepare the environmental assessment or environmental impact statement under section 107(f) of this title.</text></subparagraph></paragraph>
<paragraph id="HB9CF7A6549F84063BAB939DE19218855" display-inline="no-display-inline"><enum>(2)</enum><header>Notice of amount of fee</header><text display-inline="yes-display-inline">Not later than 15 days after the receipt of the information described in paragraph (1), the Council shall provide to the project sponsor that submitted such information notice of the amount of the fee, as determined under subsection (b).</text></paragraph> <paragraph id="H356D8F52A95A4266BB21FAFB966E64BC" commented="no"><enum>(3)</enum><header>Payment of fee</header><text>A project sponsor may pay a fee under this section after receipt of the notice described in paragraph (2).</text></paragraph>
<paragraph id="HEE58CA83504C4D4F969734C0A98A1255"><enum>(4)</enum><header>Deadline for environmental reviews for which a fee is paid</header><text display-inline="yes-display-inline">Notwithstanding section 107(g)(1)—</text> <subparagraph id="H997BFA9F5E0F4D8887065DF04B441F87" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">an environmental assessment for which a fee was paid under this section shall be completed by not later than 6 months after the sooner of, as applicable, the dates described in clauses (i), (ii), and (iii) of section 107(g)(1)(B); and</text></subparagraph>
<subparagraph id="H3E9ED84D87994B43873B5E1485DE8A55" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">an environmental impact statement for which a fee was paid under this section shall be completed by not later than 1 year after the sooner of, as applicable, the dates described in clauses (i), (ii), and (iii) of section 107(g)(1)(A).</text></subparagraph></paragraph></subsection> <subsection id="HA791A1F9D76F441A9473345E6B140ED2"><enum>(b)</enum><header>Fee amount</header><text display-inline="yes-display-inline">The amount of a fee under this section shall be—</text>
<paragraph id="H7A1631E3623E4B4B825A173EC5464B16"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of an environmental assessment or environmental impact statement to be prepared by the lead agency, 125 percent of the anticipated costs to prepare the environmental assessment or environmental impact statement; and</text></paragraph> <paragraph id="HD91D111321CA408087A86E11A8D39872"><enum>(2)</enum><text>in the case of an environmental assessment or environmental impact statement to be prepared in whole or in part by a project sponsor under section 107(f), 125 percent of the anticipated costs to supervise preparation of, and (as applicable) prepare, the environmental assessment or environmental impact statement.</text></paragraph></subsection>
<subsection id="H329F2EFFEFB34BEEA282FAE4E37D9718" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Judicial review</header>
<paragraph id="HC4EB40B40F7C4B2C92A9271E1F33348D"><enum>(1)</enum><header>EA; EIS</header><text display-inline="yes-display-inline">There shall be no judicial review of an environmental assessment or environmental impact statement for which a fee is paid under this section.</text></paragraph> <paragraph id="HF26E0A55081643E797B7DA3CFB2261D9"><enum>(2)</enum><header>FONSI; ROD</header><text display-inline="yes-display-inline">An action for judicial review of a finding of no significant impact or record of decision that is associated with an environmental assessment or environmental impact statement described in paragraph (1) may not challenge the finding of no significant impact or record of decision based on an alleged issue with the environmental assessment or environmental impact statement.</text></paragraph></subsection>
<subsection id="H0DAEC36D9AE445C386B07EB70B975F51"><enum>(d)</enum><header>Revenue allocation</header><text display-inline="yes-display-inline">Fees received under this section shall be deposited into the Treasury as miscellaneous receipts.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H400E22CD05FC4B3E9A235775A4A1A1CD"><enum>80152.</enum><header>Rescission relating to environmental and climate data collection</header><text display-inline="no-display-inline">The unobligated balance of any amounts made available under section 60401 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is rescinded.</text></section></part>
<part id="HCBC033001D6D4FC8B89B819FD253D3AF"><enum>6</enum><header>Miscellaneous</header>
<section id="HFDE8CE620967415491C890BD01E25B11" commented="no"><enum>80161.</enum><header>Protest fees</header><text display-inline="no-display-inline">Section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is further amended by adding at the end the following:</text> <quoted-block id="H14EB7B84C8564FAD92B8AB8FAF5747AF" style="OLC"> <subsection id="H22DE74A4DFCA489D9FC1DA0316F4AB09" commented="no"><enum>(t)</enum><header>Protest filing fee</header> <paragraph id="H6AA093AF71464407886083E80C6E4701" commented="no"><enum>(1)</enum><header>In general</header><text>Before processing any protest under this Act, the Secretary shall collect a filing fee in the amount described in paragraph (2) from the protestor to recover the cost for processing documents filed for the protest.</text></paragraph>
<paragraph id="H0919CCE1C97B463E8BE5602E8DA9426D" commented="no"><enum>(2)</enum><header>Amount</header><text>The amount described in this paragraph is calculated as follows:</text> <subparagraph id="HFBDD7E7E292640DEB3E4F3CAE9BFA077" commented="no"><enum>(A)</enum><text>For each protest filed in a submission not exceeding 10 pages in length, the base filing fee shall be $150.</text></subparagraph>
<subparagraph id="H34904F9BAA3C49ED9E6B84F2AE137AC8" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">For each protest filed in a submission exceeding 10 pages in length, in addition to the base filing fee, an assessment of $5 per page in excess of 10 pages shall apply.</text></subparagraph> <subparagraph id="H929693613B194C368990D01B3CD9E952" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">For each protest filed in a submission that includes more than one oil and gas lease parcel, right-of-way, or application for permit to drill, an additional assessment of $10 per additional lease parcel, right-of-way, or application for permit to drill shall apply.</text></subparagraph></paragraph>
<paragraph id="H0E4EF390318843D3BBF5BBD3BC87DED6" commented="no"><enum>(3)</enum><header>Adjustment</header>
<subparagraph id="HE4763A2BBB45401F8E2F5F9B5B8F9CB5" commented="no"><enum>(A)</enum><header>In general</header><text>Beginning on January 1, 2026, and annually thereafter, the Secretary shall adjust the filing fees established in this subsection to whole dollar amounts to reflect changes in the Producer Price Index, as published by the Bureau of Labor Statistics, for the previous 12 months.</text></subparagraph> <subparagraph id="H6E559D59E5D449B2B027489B18ABBA84" commented="no"><enum>(B)</enum><header>Publication of adjusted filing fees</header><text>At least 30 days before an adjustment to a filing fee under this paragraph takes effect, the Secretary shall publish notification of the adjustment in the Federal Register.</text></subparagraph></paragraph>
<paragraph id="H11FBA10B8A924B7DB7EAC24745DA142D"><enum>(4)</enum><header>Revenue allocation</header><text display-inline="yes-display-inline">All revenues collected under this paragraph shall be deposited in the Treasury as miscellaneous receipts.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section></part> <part id="H69C3E75B9D854183A7CBD28FA3164F05"><enum>7</enum><header>Offshore oil and gas leasing</header> <section id="HA7AD10FD1C4B462986D0D5E008448765" commented="no"><enum>80171.</enum><header>Mandatory offshore oil and gas lease sales</header> <subsection id="HF0FD336E0BE542628D3124B107E04EBD" commented="no"><enum>(a)</enum><header>In general</header> <paragraph id="HAF42691BC9694CC7A1E9AF39DC201F79" commented="no"><enum>(1)</enum><header>Gulf of America</header> <subparagraph id="HCCBB7FFAF79440FD9923EB5F46EB7045" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding the 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Program, the Secretary shall hold not fewer than 30 lease sales in the Gulf of America during the 15-year period beginning on the date of the enactment of this section. </text></subparagraph>
<subparagraph id="HEFF9A478FE4D42C087D4C04F9EB2CFEB"><enum>(B)</enum><header>Location requirement</header><text display-inline="yes-display-inline">For each lease sale held under this paragraph, the Secretary may offer for lease only an area identified as the Proposed Final Program Area in Figure S–1 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program referenced in the notice of availability published by the Bureau of Ocean Energy Management titled <quote>Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program</quote> (81 Fed. Reg. 84612; published November 23, 2016).</text></subparagraph> <subparagraph id="H0DBDCE2E7D764E6E84AF09660BA26FF6" commented="no"><enum>(C)</enum><header>Acreage requirement</header><text>For each lease sale held under this paragraph, the Secretary shall offer for lease—</text>
<clause id="H102E9EDA0D5A464FAC72F451489BF6B3" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text>not fewer than 80,000,000 acres; or</text></clause> <clause id="H0F4486CCDBDC4B3D970F5D6A25B43551" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">if there are fewer than 80,000,000 acres that are unleased, all such unleased acres.</text></clause></subparagraph>
<subparagraph id="H8D70F7F2597F44DAAB4761888EE90D07" commented="no"><enum>(D)</enum><header>Timing requirement</header><text>Of the not fewer than 30 lease sales required under this paragraph, the Secretary shall hold not fewer than 1 lease sale on or before each of the following dates:</text> <clause id="HF1E957FF51774F2AA0CB8BA31EB0F9DC" commented="no"><enum>(i)</enum><text>December 15, 2025.</text></clause>
<clause id="HDD3C468EAB07433499BBB1FE21FD5162" commented="no"><enum>(ii)</enum><text>March 15, 2026.</text></clause> <clause id="H9CDDC8FC19E64446A596FC807CC6034C" commented="no"><enum>(iii)</enum><text>August 15, 2026.</text></clause>
<clause id="HDBCAD437FDB74ED88A4DB50A75998DFD" commented="no"><enum>(iv)</enum><text>March 15, 2027.</text></clause> <clause id="HA656D13AEE8946908A25CE3BAEBBB480" commented="no"><enum>(v)</enum><text>August 15, 2027.</text></clause>
<clause id="HA053F71C485541B5B2795893F5C1427A" commented="no"><enum>(vi)</enum><text>March 15, 2028.</text></clause> <clause id="H2C70FDEC872E4C22B949A84071765B00" commented="no"><enum>(vii)</enum><text>August 15, 2028.</text></clause>
<clause id="H3400374BCAA44591ADE16A401D03576F" commented="no"><enum>(viii)</enum><text>March 15, 2029.</text></clause> <clause id="HAB5D2CD342B3474B9EED20B44D9517DE" commented="no"><enum>(ix)</enum><text>August 15, 2029.</text></clause>
<clause id="H8576F3CDD53746EDAF9CECB13B4C509C" commented="no"><enum>(x)</enum><text>March 15, 2030.</text></clause> <clause id="H4A4D505724844B079DE2077C0D305B10" commented="no"><enum>(xi)</enum><text>August 15, 2030.</text></clause>
<clause id="HF1C26DC9CEBF4BAE813B4B1294524B94" commented="no"><enum>(xii)</enum><text>March 15, 2031.</text></clause> <clause id="H2522DE0CB7544AF2BE967B9D20702BBF" commented="no"><enum>(xiii)</enum><text>August 15, 2031.</text></clause>
<clause id="H0BF3A29C663746429C40A35AE4EFC30E" commented="no"><enum>(xiv)</enum><text>March 15, 2032.</text></clause> <clause id="H0503D12CD8FB4E449DA6171371D90BF3" commented="no"><enum>(xv)</enum><text>August 15, 2032.</text></clause>
<clause id="HA65E0D33EAAE43A7929C5E35A1200CF3" commented="no"><enum>(xvi)</enum><text>March 15, 2033.</text></clause> <clause id="H71C0BB63DBD44DF8885519669FB6B348" commented="no"><enum>(xvii)</enum><text>August 15, 2033.</text></clause>
<clause id="HD2E7AE1DB986406EBE41FAA6AB4A439A" commented="no"><enum>(xviii)</enum><text>March 15, 2034.</text></clause> <clause id="H96F28B9D3ED34E918065AECED4106FB6" commented="no"><enum>(xix)</enum><text>August 15, 2034.</text></clause>
<clause id="HD54BC359A78E422593DEF705EAC2D5AE" commented="no"><enum>(xx)</enum><text>March 15, 2035.</text></clause> <clause id="H42B47257F0294FE89E45A130F64A52F5"><enum>(xxi)</enum><text>August 15, 2035.</text></clause>
<clause id="HA3CDA3D6727244AC94BE02CE8720D189"><enum>(xxii)</enum><text>March 15, 2036.</text></clause> <clause id="H648047F7C8A74D18A57603CCD394A775"><enum>(xxiii)</enum><text>August 15, 2036.</text></clause>
<clause id="H947F160B07EF4314B9064B478AFC3972"><enum>(xxiv)</enum><text>March 15, 2037.</text></clause> <clause id="HCFBB21A134E34E6BBB7D2D2B493A2C31"><enum>(xxv)</enum><text>August 15, 2037.</text></clause>
<clause id="H7AFEAFF5ED874D5D942D04F8A6CE36A8"><enum>(xxvi)</enum><text>March 15, 2038.</text></clause> <clause id="HA7E0D8A9015D4D4EABD00998A4FDC270"><enum>(xxvii)</enum><text>August 15, 2038.</text></clause>
<clause id="H42B86FF4733A4B1AB7BCF80467428B3C"><enum>(xxviii)</enum><text>March 15, 2039.</text></clause> <clause id="H4E7B0045C2704D3A9A6E12FA18859763"><enum>(xxix)</enum><text>August 15, 2039.</text></clause>
<clause id="HEA7FA1D2037D40B79B03D9B44FDF5D73"><enum>(xxx)</enum><text>March 15, 2040.</text></clause></subparagraph> <subparagraph id="H2DA120BD13F74029AD2AEBB0ED87D1DF" commented="no"><enum>(E)</enum><header>Lease terms and conditions</header> <clause id="HB720845C595F4D698C276DEC51917915" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For each lease sale held under this paragraph, the Secretary shall, except as provided in clause (iii), offer the same lease form, lease terms, economic conditions, and stipulations 4 through 10 as contained in the Bureau of Ocean Energy Management final notice of sale titled <quote>Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254</quote> (85 Fed. Reg. 8010; published February 12, 2020).</text></clause>
<clause id="HF3D07420024B4D3ABEE2624240EA2BD0" commented="no"><enum>(ii)</enum><header>Update</header><text display-inline="yes-display-inline">The Secretary is authorized to update stipulations 1 through 3 of the final notice of sale titled <quote>Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254</quote> (85 Fed. Reg. 8010; published February 12, 2020) to reflect current conditions for lease sales held under this paragraph.</text></clause> <clause id="H8C2B3E450E964FC18F4DEC57C6243EF1"><enum>(iii)</enum><header>Deepwater term</header><text display-inline="yes-display-inline">The primary term for a lease in water depths of 800 meters or deeper issued as a result of a sale held under this paragraph shall be 10 years.</text></clause></subparagraph></paragraph>
<paragraph id="HA4D4FF21E2CA450E980F5FF6DC7DFBE0" commented="no"><enum>(2)</enum><header>Cook Inlet Planning Area</header>
<subparagraph id="H24B2CA4A36DB45D9B9057200A8F0AFC1" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding the 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Program, the Secretary shall hold not fewer than 6 lease sales in the Cook Inlet Planning Area during the 10-year period beginning on the date of the enactment of this section.</text></subparagraph> <subparagraph id="H4768FF995CC24485AC599E1F64A9DB1C"><enum>(B)</enum><header>Location requirement</header><text display-inline="yes-display-inline">For each lease sale held under this paragraph, the Secretary may offer for lease only an area identified in Figure S–2 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program referenced in the notice of availability published by the Bureau of Ocean Energy Management titled <quote>Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program</quote> (81 Fed. Reg. 84612; published November 23, 2016).</text></subparagraph>
<subparagraph id="H21D7930BDDD0410582F81E4B28CF5999" commented="no"><enum>(C)</enum><header>Acreage requirement</header><text>For each lease sale held under this paragraph, the Secretary shall offer for lease—</text> <clause id="H2EA807CEE7CC4DA693EBF931B4E7AC9D"><enum>(i)</enum><text>not fewer than 1,000,000 acres; or</text></clause>
<clause id="HCDA7C8EB14394C398F286823514B3A49"><enum>(ii)</enum><text display-inline="yes-display-inline">if there are fewer than 1,000,000 acres that are unleased, all such unleased acres.</text></clause></subparagraph> <subparagraph id="H4AC30872D1C645778553F933055CD012" commented="no"><enum>(D)</enum><header>Timing requirement</header><text display-inline="yes-display-inline">Of the not fewer than 6 lease sales required under this paragraph, the Secretary shall hold not fewer than 1 lease sale on or before each of the following dates:</text>
<clause id="H475D60CF88E343389DA9F8E4DCFF26C5" commented="no"><enum>(i)</enum><text>March 15, 2026.</text></clause> <clause id="H31DCF2E62F1043C8ACCD87076EC62357" commented="no"><enum>(ii)</enum><text>March 15, 2027.</text></clause>
<clause id="H5FFB3CE5035D4776B49B6A1A68E7BC10" commented="no"><enum>(iii)</enum><text>August 15, 2028.</text></clause> <clause id="HF9BDD2C703044861AC645DE05789F87F" commented="no"><enum>(iv)</enum><text>March 15, 2030.</text></clause>
<clause id="H05CAB0FDE17C4D4999CC472F41B12215" commented="no"><enum>(v)</enum><text>August 15, 2031.</text></clause> <clause id="HA813BA6367484B8689C97B559A22A8DC" commented="no"><enum>(vi)</enum><text>March 15, 2032.</text></clause></subparagraph>
<subparagraph id="H53BC81920F1848068573F8A69FBA704D"><enum>(E)</enum><header>Lease terms and conditions</header><text display-inline="yes-display-inline">For each lease sale held under this paragraph, the Secretary shall offer the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale titled <quote>Outer Continental Shelf Cook Inlet, Alaska, Oil and Gas Lease Sale 244</quote> (82 Fed. Reg. 23163; published May 22, 2017).</text></subparagraph> <subparagraph id="HE6264E7443814D04A7AFDAFCD3890BEE" commented="no"><enum>(F)</enum><header>Revenue sharing</header><text display-inline="yes-display-inline">Notwithstanding section 8(g) and 9 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(g)</external-xref> and 1338), and beginning in fiscal year 2035, of the bonuses, rents, royalties, and other revenues derived from leases issued pursuant to this paragraph—</text>
<clause id="HB3029542F56D431193FB163227C9312F" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">90 percent shall be paid to the State of Alaska; and</text></clause> <clause id="HA6894825753346A883CB54F5B2233D61" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">10 percent shall be deposited in the Treasury as miscellaneous receipts.</text></clause></subparagraph></paragraph></subsection>
<subsection id="HEF74D17615EA4B57B667F2C557D59F24" commented="no"><enum>(b)</enum><header>Lease sales held under Proposed Final Program</header><text>The lease sales held under this section shall be in addition to the lease sales held under the Proposed Final Program for the 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Program referenced in the notice of availability published by the Bureau of Ocean Energy Management titled <quote>Notice of Availability of the 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Proposed Final Program and Final Programmatic Environmental Impact Statement</quote> (88 Fed. Reg. 67798; published October 2, 2023).</text></subsection> <subsection id="H1AD2C3E3482A4EF39BAF06A2AD54DA86" commented="no"><enum>(c)</enum><header>Other requirements</header><text display-inline="yes-display-inline">During the period beginning on the date of the enactment of this section and ending on the date that is 2 years after the date on which the last lease sale required to be held under this section is held, with respect to each lease sale held, lease issued, and any activity that requires a Federal authorization and is associated with a lease issued pursuant to this title, the Outer Continental Shelf Lands Act, or section 50264 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> in the Gulf of America—</text>
<paragraph id="HC0C19D4D689742FF88B33264431D4985" commented="no"><enum>(1)</enum><text>adherence with the Biological Opinion shall satisfy the Secretary’s obligations under the Endangered Species Act of 1973 and the Marine Mammal Protection Act of 1972;</text></paragraph> <paragraph id="H1DAD37566557469589FFDC99D6CFDAB6" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">the final programmatic environmental impact statement referenced in the notice of availability titled <quote>Final Programmatic Environmental Impact Statement for the 2017–2022 Outer Continental Shelf (OCS) Oil and Gas Leasing Program</quote> (81 Fed. Reg. 83870; published November 22, 2016), the Record of Decision related to such final programmatic environmental impact statement, and the final environmental impact statement referenced in the notice of availability titled <quote>Final Environmental Impact Statement for Outer Continental Shelf, Gulf of Mexico, 2017–2022 Oil and Gas Lease Sales 249, 250, 251, 252, 253, 254, 256, 257, 259, and 261</quote> (82 Fed. Reg. 13363; published March 10, 2017) shall satisfy the Secretary’s obligations under the National Environmental Policy Act of 1969 and division A of subtitle III of title 54, United States Code; and</text></paragraph>
<paragraph id="HC229B8567C644BFF8FD36484B9C11637" commented="no"><enum>(3)</enum><text>the consistency determinations prepared by the Bureau of Ocean Energy Management under section 307 of the Coastal Zone Management Act of 1972 (<external-xref legal-doc="usc" parsable-cite="usc/16/1456">16 U.S.C. 1456</external-xref>) for Lease Sale 261 for the States of Texas, Louisiana, Mississippi, Alabama, and Florida shall satisfy the Secretary’s obligations under that section (<external-xref legal-doc="usc" parsable-cite="usc/16/1456">16 U.S.C. 1456</external-xref>).</text></paragraph></subsection> <subsection id="HC80148A8B3104B30A99A20B43F629FC1"><enum>(d)</enum><header>Issuance of leases</header><text>If the Secretary receives an acceptable bid for an area offered in a lease sale held under this section, the Secretary shall—</text>
<paragraph id="H31694909BF49410383E30B3667A6B214"><enum>(1)</enum><text>in accordance with section 8 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337</external-xref>), accept the highest acceptable bid for such area; and</text></paragraph> <paragraph id="H34772DD6340044D0B69404B63BFC286E"><enum>(2)</enum><text>not later than 90 days after the date on which the applicable lease sale ends, issue a lease of the area to the highest responsible qualified bidder.</text></paragraph></subsection>
<subsection id="H5397C7104A3049F5A276A16BE2AFE004" commented="no"><enum>(e)</enum><header>Nomination of areas for inclusion in lease sale by Governor</header>
<paragraph id="H4658CF9027B546BC8B59BC57DD05126E" commented="no"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish a process through which the Governor of a State may nominate for leasing under a lease sale held under this section an area of the outer Continental Shelf that is—</text> <subparagraph id="HF7861B2DE7E348BB8D30DCC982442FCC"><enum>(A)</enum><text>adjacent to the waters of the State; and</text></subparagraph>
<subparagraph id="HAF921427EEFD4392AAA412885E68715A"><enum>(B)</enum><text>unleased and available for leasing.</text></subparagraph></paragraph> <paragraph id="H634F0F06484F4DBDA5798A1818C49409" commented="no"><enum>(2)</enum><header>Inclusion of nominated area</header><text>If under paragraph (1) the Governor of a State nominates an area described in that paragraph for leasing under a lease sale held under this section, the Secretary shall include the area in the next scheduled lease sale under subsection (a)(1)(D).</text></paragraph></subsection>
<subsection id="H2D6AAB0CE16C4ED3973076103F11CA5E" commented="no"><enum>(f)</enum><header>Geological and geophysical surveys</header><text display-inline="yes-display-inline">Not later than 30 days after the date on which the Secretary receives a complete application pursuant to section 551.5 of title 30, Code of Federal Regulations (as in effect on September 22, 2015), to conduct a geological or geophysical survey pursuant to oil and gas activities on the outer Continental Shelf, the Secretary shall approve such application.</text></subsection> <subsection id="H8A2847C5DA0B41B3B30450D8AC302713"><enum>(g)</enum><header>Lease Sale 259 and Lease Sale 261 leases</header> <paragraph id="H706A69B3A4D44EEDBFFEE9740E7CED90"><enum>(1)</enum><header>Leasing revenue certainty</header><text display-inline="yes-display-inline">A lease awarded under Lease Sale 259 or Lease Sale 261, which has been fully executed by the Secretary, shall not be set aside, vacated, enjoined, suspended, or cancelled except in accordance with section 5 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1334">43 U.S.C. 1334</external-xref>).</text></paragraph>
<paragraph id="HC03EF7EC7547452FB790C26C5B66B263"><enum>(2)</enum><header>No additional terms or conditions</header><text display-inline="yes-display-inline">The Secretary shall not impose any additional terms or conditions on a lease awarded under Lease Sale 259 or Lease Sale 261, which has been fully executed by the Secretary, that were not included in the Bureau of Ocean Energy Management final notice of sale titled <quote>Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 259</quote> (88 Fed. Reg. 12404; published Feb. 27, 2023) or the final notice of sale titled <quote>Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 261</quote> (88 Fed. Reg. 80750; published on Nov. 20, 2023).</text></paragraph></subsection> <subsection id="HA9269824A5F84C999FA7FE536D61D3FD"><enum>(h)</enum><header>Judicial review</header><text display-inline="yes-display-inline">Section 23(c)(2) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1349">43 U.S.C. 1349(c)(2)</external-xref>) is amended to read as follows:</text>
<quoted-block style="OLC" id="H6706797CCB5D4CB0B6634FD624D7F081" display-inline="no-display-inline">
<paragraph id="H475E43A644F845F0806D24B08A975F21" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Any action of the Secretary to approve, require modification of, or disapprove any exploration plan, development and production plan, bidding procedure, lease sale, lease issuance, or permit or authorization related to oil and gas exploration, development, or production under this Act, or any inaction by the Secretary resulting in the failure to hold a lease sale under any Federal law requiring oil and gas lease sales on the outer Continental Shelf, shall be subject to judicial review only in a United States court of appeals for a circuit in which an affected State is located.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB061B935BEE844C98A4E68EFD2D92AE6"><enum>(i)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H839D86BD512A41839A1A4159E3F1A498" commented="no"><enum>(1)</enum><header>Acceptable bid</header><text display-inline="yes-display-inline">The term <term>acceptable bid</term> means a bid that meets the requirements of the document published by the Bureau of Ocean Energy Management titled <quote>Summary of Procedures for Determining Bid Adequacy at Offshore Oil and Gas Lease Sales Effective March 2016, with Central Gulf of Mexico Sale 241 and Eastern Gulf of Mexico Sale 226</quote>.</text></paragraph> <paragraph id="HFECD2BA4086A4BFB84062FE62CD93AA4" commented="no"><enum>(2)</enum><header>Biological Opinion</header><text display-inline="yes-display-inline">The term <term>Biological Opinion</term>—</text>
<subparagraph id="H054C091216CA461296B1A4C84BBCB4E8" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">means the biological opinion issued by the National Marine Fisheries Service titled <quote>Biological Opinion on the Federally Regulated Oil and Gas Program Activities in the Gulf of Mexico</quote> and the incidental take statement associated with such biological opinion (published March 12, 2020, and updated April 26, 2021); and</text></subparagraph> <subparagraph id="H11E368D7A2CA4E35B017D1B4B46F33B5" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">does not include sections 3.3.1 through 3.3.3 of such biological opinion.</text></subparagraph></paragraph>
<paragraph id="HB819F3FB4A6246A3894A6AD760E21DE5" commented="no"><enum>(3)</enum><header>Lease</header><text>The term <term>lease</term> means an oil and gas lease.</text></paragraph> <paragraph id="HFDC1DCF726044F629C96568890E5750E"><enum>(4)</enum><header>Lease sale 259</header><text display-inline="yes-display-inline">The term <term>Lease Sale 259</term> means the lease sale held by the Bureau of Ocean Energy Management on March 29, 2023.</text></paragraph>
<paragraph id="H78C32F70EC3B455B8A455E7284B7C5BD" commented="no"><enum>(5)</enum><header>Lease Sale 261</header><text display-inline="yes-display-inline">The term <term>Lease Sale 261</term> means the lease sale held by the Bureau of Ocean Energy Management on December 20, 2023.</text></paragraph> <paragraph id="H26C130F8425C469F992F293E586C1DC1"><enum>(6)</enum><header>Outer Continental Shelf</header><text display-inline="yes-display-inline">The term <term>outer Continental Shelf</term> has the meaning given such term in section 2 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331</external-xref>).</text></paragraph>
<paragraph id="H14C683C9638A45BAA5D6DA22E5B3013D" commented="no"><enum>(7)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Interior.</text></paragraph></subsection></section> <section id="H1957EE2CB5064F099A8CA297619F5DF0" commented="no"><enum>80172.</enum><header>Offshore commingling</header><text display-inline="no-display-inline"> The Secretary of the Interior shall approve operator requests to commingle production from multiple reservoirs within a single wellbore completed on the Outer Continental Shelf of the Gulf of America unless conclusive evidence establishes that such commingling—</text>
<paragraph id="HC0A9DC9A9F184387A62F16EF9678E104"><enum>(1)</enum><text>could not be conducted in a safe manner; or</text></paragraph> <paragraph id="H4A41A0F15F8B422782C086A0F5ADDBE3"><enum>(2)</enum><text>would result in the ultimate recovery from such formations being reduced.</text></paragraph></section>
<section id="HEC57B83D1ECE43378685040B04DBB5D4" commented="no"><enum>80173.</enum><header>Limitations on amount of distributed qualified outer Continental Shelf revenues</header><text display-inline="no-display-inline">Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331</external-xref> note) is amended—</text> <paragraph id="HDCEEDCC22EC24DB284B2D01C066850DF" commented="no"><enum>(1)</enum><text>in subparagraph (B), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="HD2C8A7557A5E48C7B235574371F611CD" commented="no"><enum>(2)</enum><text>in subparagraph (C), by striking <quote>2055.</quote> and inserting <quote>2024;</quote>; and</text></paragraph> <paragraph id="HADADC8806CF34FA6A054B6FF20FAA689" commented="no"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block style="OLC" id="H14A94BF3A7384DA784B32F230B14247C" display-inline="no-display-inline">
<subparagraph id="H203F7F12DBCE48E6972E07315ECB9795" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">$650,000,000 for each of fiscal years 2025 through 2034; and</text></subparagraph> <subparagraph id="H3CA0C5D685C74732A30A09E0620B80B3" commented="no"><enum>(E)</enum><text>$500,000,000 for each of fiscal years 2035 through 2055.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></part>
<part id="H914A402C293B4F43BDE2CAF11AC5351C" commented="no"><enum>8</enum><header>Renewable energy</header>
<section id="H4E20A8F5E5FB403AA2A6753CA1191F2F" section-type="subsequent-section" commented="no"><enum>80181.</enum><header>Renewable energy fees on Federal lands</header>
<subsection id="HC7D049304EEA42DB8922107AD2590625" commented="no"><enum>(a)</enum><header>Acreage rent for wind and solar rights-of-way</header>
<paragraph id="H6F812266EF45469F85F8D459C2F4ED1C" commented="no"><enum>(1)</enum><header>In general</header><text>Under the second sentence of section 504(g) of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1764">43 U.S.C. 1764(g)</external-xref>), the Secretary shall, subject to paragraph (3) and not later than January 1 of each calendar year, collect from the holder of a right-of-way for a renewable energy project an acreage rent in an amount based on the equation described in paragraph (2).</text></paragraph> <paragraph id="H0E933B46FA2D42C18E565AD4D2EEC6A8" commented="no"><enum>(2)</enum><header>Calculation of acreage rent rate</header> <subparagraph id="HB81A6F9A3ACC4C808C66333D55FC29D9" commented="no"><enum>(A)</enum><header>Equation</header><text>The amount of an acreage rent collected under paragraph (1) shall be determined using the following equation: Acreage rent = A × B × ((1 + C)<superscript>D</superscript>)).</text></subparagraph>
<subparagraph id="H15EA48A4BDF2409F9048A2FB69D6D34F" commented="no"><enum>(B)</enum><header>Definitions</header><text>For purposes of subparagraph (A):</text> <clause id="H7AFEA27ED72D448991304AF679DF3AC1" commented="no"><enum>(i)</enum><text>The letter <quote>A</quote> means the Per-Acre Rate.</text></clause>
<clause id="H6AA8C93CAC744D5891F0175E9328512B" commented="no"><enum>(ii)</enum><text>The letter <quote>B</quote> means the Encumbrance Factor.</text></clause> <clause id="H4A0A9CDA850E4F97A93BE1CA52EF21AC" commented="no"><enum>(iii)</enum><text>The letter <quote>C</quote> means the Annual Adjustment Factor.</text></clause>
<clause id="HDC0D7D25F86A4386A607D13A181997E2" commented="no"><enum>(iv)</enum><text>The letter <quote>D</quote> means the year in the term of the right-of-way.</text></clause></subparagraph></paragraph> <paragraph id="HF6C0ADA3B10E43FE9AADD78614EC3C78" commented="no"><enum>(3)</enum><header>Payment until production</header><text>The holder of a right-of-way for a renewable energy project shall pay an acreage rent collected under paragraph (1) until the date on which energy generation begins.</text></paragraph></subsection>
<subsection id="HDC84BCB65F8D452D9B3767368CD85735" commented="no"><enum>(b)</enum><header>Capacity fees</header>
<paragraph id="H935939B734554251B8A94DDC08B16E93" commented="no"><enum>(1)</enum><header>In general</header><text>The Secretary shall, subject to paragraph (2), annually collect a capacity fee from the holder of a right-of-way for a renewable energy project based on the amount described in paragraph (2).</text></paragraph> <paragraph id="HE5B3898D6B244489B6D3D8D688A94E89" commented="no"><enum>(2)</enum><header>Calculation of capacity fee</header><text>The amount of a capacity fee collected under paragraph (1) shall be equal to the greater of—</text>
<subparagraph id="H00F7467F56694973BF26F9529FCAFB7F" commented="no"><enum>(A)</enum><text>an amount equal to the acreage rent described in subsection (a); and</text></subparagraph> <subparagraph id="H01088BBD23E94F8AB9B15BC13C4F62EB" commented="no"><enum>(B)</enum><text>4.58 percent of the gross proceeds from the sale of electricity produced by the renewable energy project.</text></subparagraph></paragraph>
<paragraph id="HB1FBA0E140A146579586CEE13AAB7934" commented="no"><enum>(3)</enum><header>Multiple-use reduction factor</header>
<subparagraph id="H4D0FE53C33F34F4DAF6A0A4BA17D0AD6" commented="no"><enum>(A)</enum><header>Application</header><text>The holder of a right-of-way for a wind energy generation project may request that the Secretary apply a 10-percent Multiple-Use Reduction Factor to the amount of a capacity fee determined under paragraph (2) by submitting to the Secretary an application for approval.</text></subparagraph> <subparagraph id="H2A41B92D7BAB4093BFFD25F475D9FD9D" commented="no"><enum>(B)</enum><header>Approval</header><text display-inline="yes-display-inline">The Secretary may approve an application submitted under subparagraph (A) if not less than 25 percent of the land within the area of the right-of-way is authorized for use, occupancy, or development with respect to an activity other than the generation of wind energy for the entirety of the year in which the capacity fee is collected.</text></subparagraph>
<subparagraph id="H7AAD938584F74BBFA8964A2F84DE5928" commented="no"><enum>(C)</enum><header>Late determination</header><text>If the Secretary approves an application under subparagraph (B) for a wind energy generation project after the date on which the holder of the right-of-way for the project begins paying a capacity fee, the Secretary shall apply the Multiple-Use Reduction Factor to the capacity fee in the following years. Under this subparagraph, the Secretary may not refund the holder of a right-of-way for the difference in the amount of a capacity fee paid in a previous year.</text></subparagraph></paragraph></subsection> <subsection id="H9B304DD9C83C43D4A4453DF602BA6041" commented="no"><enum>(c)</enum><header>Late payment fee; termination</header> <paragraph id="HC4E3717A6E294CA3B2FEA45AD0C08840" commented="no"><enum>(1)</enum><header>In general</header><text>The Secretary may charge the holder of a right-of-way for a renewable energy project a late payment fee if the Secretary does not receive payment for the acreage rent under subsection (a) or the capacity fee under subsection (b) by the date that is 15 days after the date on which the payment was due.</text></paragraph>
<paragraph id="HEA39E5288219454A8FA8D4EE05997F50" commented="no"><enum>(2)</enum><header>Termination of right-of-way</header><text>The Secretary may terminate a right-of-way for a renewable energy project if the Secretary does not receive payment for the acreage rent under subsection (a) or the capacity fee under subsection (b) by the date that is 90 days after the date on which the payment was due.</text></paragraph></subsection> <subsection id="HC06AB7A499BA4AA599755113C1634221"><enum>(d)</enum><header>Revenue accuracy, transparency, and accountability</header><text display-inline="yes-display-inline">The Secretary shall document, verify, and make publicly available the respective amount of wind and solar energy revenues collected under this section on the Department of the Interior’s Natural Resources Revenue Data website.</text></subsection>
<subsection id="H95AD8A74622C47C8B55F8A67B8D428B7" commented="no"><enum>(e)</enum><header>Ensuring fee certainty</header><text>Section 3103 of the Energy Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/43/3003">43 U.S.C. 3003</external-xref>) is repealed.</text></subsection> <subsection id="HC2E38450F161411C8979C4D3017A0748" commented="no"><enum>(f)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H318290113D9A440FA60832DACD6403C2" commented="no"><enum>(1)</enum><header>Annual adjustment factor</header><text>The term <term>Annual Adjustment Factor</term> means 3 percent.</text></paragraph> <paragraph id="HB3088B63A2D0433596BD8FAB3F9079AE" commented="no"><enum>(2)</enum><header>Encumbrance factor</header><text>The term <term>Encumbrance Factor</term> means—</text>
<subparagraph id="H080C5D8ABAF24009A1EF4FA247BE9CB2" commented="no"><enum>(A)</enum><text>100 percent for solar energy generation facilities; and</text></subparagraph> <subparagraph id="H80ED8FBA546C4DC78D2390BCFD0A5600" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">an amount determined by the Secretary not less than 10 percent for wind energy generation facilities.</text></subparagraph></paragraph>
<paragraph id="HDD9F1F7DD1DC4263A28262C5141134BC" commented="no"><enum>(3)</enum><header>Per-acre rate</header><text>The term <term>Per-Acre Rate</term> means the average of per-acre pastureland rental rates published in the Cash Rents Survey by the National Agricultural Statistics Service for the State in which the right-of-way is located over the 5 calendar-year period preceding the issuance or renewal of the right-of-way.</text></paragraph> <paragraph id="H3C851E868A42471DB256EACA90A1164E" commented="no"><enum>(4)</enum><header>Project</header><text>The term <term>project</term> means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as such section is in effect on the date of the enactment of this Act).</text></paragraph>
<paragraph id="HF773D47E45994D00BA697607EF905357" commented="no"><enum>(5)</enum><header>Public lands</header><text>The term <term>public lands</term> means—</text> <subparagraph id="HE2B9809205EC4F5381FFC9DFD8E3E17D" commented="no"><enum>(A)</enum><text>public lands as such term is defined in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>); and</text></subparagraph>
<subparagraph id="H90618A66D95042A3AFD2E91C25ADD9AA" commented="no"><enum>(B)</enum><text>the lands of the National Forest System as described in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/16/1609">16 U.S.C. 1609(a)</external-xref>).</text></subparagraph></paragraph> <paragraph id="HFA44E9C9F7ED4F9790903E73BC088924" commented="no"><enum>(6)</enum><header>Renewable energy project</header><text>The term <term>renewable energy project</term> means a project located on public lands that uses wind or solar energy to generate energy.</text></paragraph>
<paragraph id="H7CE92ADA22A14F21A4349F3D58387294" commented="no"><enum>(7)</enum><header>Right-of-way</header><text>The term <term>right-of-way</term> has the meaning given such term in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>).</text></paragraph> <paragraph id="H6252E178157C40BDB2C1A1F4E1589B0A" commented="no"><enum>(8)</enum><header>Secretary</header><text>The term <term>Secretary</term> means—</text>
<subparagraph id="H7FB5C2F289D44926A040455CF99FB676" commented="no"><enum>(A)</enum><text>the Secretary of the Interior with respect to land controlled or administered by the Secretary of the Interior; or</text></subparagraph> <subparagraph id="HC6A7CD78244A40BB9DB21C497150693D" commented="no"><enum>(B)</enum><text>the Secretary of Agriculture with respect to the lands of the National Forest System controlled or administered by the Secretary of Agriculture.</text></subparagraph></paragraph></subsection></section>
<section id="H0428E72A306148B99B35F43D7C00A08B" commented="no"><enum>80182.</enum><header>Renewable energy revenue sharing</header>
<subsection id="H8A6DE188DBD542C6A9C9EE8353CC528B" commented="no"><enum>(a)</enum><header>Disposition of revenue</header>
<paragraph id="HC3FF9C56770E4908A8E102225ABC8CFA" commented="no"><enum>(1)</enum><header>Disposition of revenues</header><text>Beginning on January 1, 2026, the amounts collected from a renewable energy project as bonus bids, rentals, fees, or other payments under a right-of-way, permit, lease, or other authorization shall be—</text> <subparagraph id="HC76B1DC0817E4C38A96562395F560D19"><enum>(A)</enum><text>deposited in the general fund of the Treasury; and</text></subparagraph>
<subparagraph id="H0DFF76C8A928451AADC2B27D859B58B6"><enum>(B)</enum><text>without further appropriation or fiscal year limitation, allocated as follows:</text> <clause id="H719E262E150E4428A7D83C783ECEA789" commented="no"><enum>(i)</enum><text>25 percent shall be paid from amounts in the general fund of the Treasury to the State within the boundaries of which the revenue is derived.</text></clause>
<clause id="H20B6773AEDCF4674BE5E81A2A72F4760" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">25 percent shall be paid from amounts in the general fund of the Treasury to each county within the boundaries of which the revenue is derived, to be allocated among each such county based on the percentage of land from which the revenue is derived.</text></clause></subparagraph></paragraph> <paragraph id="HB14572187D994F61BE2552D20524CDC7" commented="no"><enum>(2)</enum><header>Payments to states and counties</header> <subparagraph id="H5B2406315CDE4C5DB0DB0A8E50748116" commented="no"><enum>(A)</enum><header>In general</header><text>The amounts paid to States and counties under paragraph (1) shall be used consistent with section 35 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/191">30 U.S.C. 191</external-xref>).</text></subparagraph>
<subparagraph id="HCDF4236B54024B5981063B9B138EA00F" commented="no"><enum>(B)</enum><header>Payments in lieu of taxes</header><text>A payment to a county under paragraph (1) shall be in addition to a payment in lieu of taxes received by the county under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/69">chapter 69</external-xref> of title 31, United States Code.</text></subparagraph> <subparagraph id="H102089D00D9C4F1AAB4DF09C30B700F4"><enum>(C)</enum><header>Timing</header><text display-inline="yes-display-inline">The amounts required to be paid under paragraph (1)(B) for an applicable fiscal year shall be made available not later than the fiscal year that immediately follows the fiscal year for which the amounts were collected. </text></subparagraph></paragraph></subsection>
<subsection id="H0E152639F9B747E7B0273F15187281EB" commented="no"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H9D55D4C7ECA6442E953A57C17CBFECFB" commented="no"><enum>(1)</enum><header>Covered land</header><text>The term <term>covered land</term> means land that is—</text>
<subparagraph id="H7E07E46E354F4635B9F9694444D633F5" commented="no"><enum>(A)</enum><text>public lands administered by the Secretary; and</text></subparagraph> <subparagraph id="H7DE13DA18E0C47038914E86F9A27323F" commented="no"><enum>(B)</enum><text>not excluded from the development of solar or wind energy under—</text>
<clause id="H0229FEF4C88D4DC89938404C103F42C3"><enum>(i)</enum><text>a land use plan; or</text></clause> <clause id="H6C508B35A49C499889491001E7B9F3F8"><enum>(ii)</enum><text>other Federal law.</text></clause></subparagraph></paragraph>
<paragraph id="H4ADE7D5AC7E84515907258644C42D2B1" commented="no"><enum>(2)</enum><header>Public lands</header><text>The term <term>public lands</term> means—</text> <subparagraph id="H1B3FC7112EEE4880AD552813EA8A8A85" commented="no"><enum>(A)</enum><text>public lands as such term is defined in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>); and</text></subparagraph>
<subparagraph id="H6CED7E911E214B84A696A19351E0E0F0" commented="no"><enum>(B)</enum><text>lands of the National Forest System as described in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/16/1609">16 U.S.C. 1609(a)</external-xref>).</text></subparagraph></paragraph> <paragraph id="H4179E8CB00B94015A070E627D3262E29" commented="no"><enum>(3)</enum><header>Renewable energy project</header><text display-inline="yes-display-inline">The term <term>renewable energy project</term> means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as such section is in effect on the date of the enactment of this Act), located on covered land that uses wind or solar energy to generate energy.</text></paragraph>
<paragraph id="HAAE75C938A864783A8D7CBEA4B60107A" commented="no"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means—</text> <subparagraph id="H91AA4E555B924C14AAF4B93EFA3EE5FA" commented="no"><enum>(A)</enum><text>the Secretary of the Interior with respect to land controlled or administered by the Secretary of the Interior; or</text></subparagraph>
<subparagraph id="H48970D1085AC443BBC6F5076C5DBA4DF" commented="no"><enum>(B)</enum><text>the Secretary of Agriculture with respect to the lands of the National Forest System controlled or administered by the Secretary of Agriculture.</text></subparagraph></paragraph></subsection></section></part></subtitle> <subtitle id="H8D7C691E1BBA46E294C770C3FC1A99B5"><enum>B</enum><header>Water, Wildlife, and Fisheries</header> <section id="H46CFD80E66B4459884061CFDB2377B3E" section-type="subsequent-section"><enum>80201.</enum><header>Rescission of funds for investing in coastal communities and climate resilience</header><text display-inline="no-display-inline">There is hereby rescinded the unobligated balance of funds made available by section 40001 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref>.</text></section>
<section id="H280FF62D52D946F9B941202AE8B58EBB" section-type="subsequent-section"><enum>80202.</enum><header>Rescission of funds for facilities of National Oceanic and Atmospheric Administration and national marine sanctuaries</header><text display-inline="no-display-inline">There is hereby rescinded the unobligated balance of funds made available by section 40002 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref>.</text></section> <section id="H3CC30F6F91F5430B9B63F2E1BF4D8A8E" section-type="subsequent-section"><enum>80203.</enum><header>Surface water storage enhancement</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior, acting through the Commissioner of Reclamation, for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available through September 30, 2034, for construction and associated activities that increase the capacity of existing Bureau of Reclamation surface water storage facilities, in a manner as determined by the Secretary: <italic>Provided,</italic> That, for the purposes of section 203 of the Reclamation Reform Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/43/390cc">43 U.S.C. 390cc</external-xref>) or section 3404(a) of the Reclamation Projects Authorization and Adjustment Act of 1992 (<external-xref legal-doc="public-law" parsable-cite="pl/102/575">Public Law 102–575</external-xref>), a contract or agreement entered into pursuant to this section shall not be treated as a new or amended contract. None of the funds provided under this section shall be reimbursable or subject to matching or cost-share requirements.</text></section>
<section id="HD7B7B709C7C24CF9863D9FF8E0E60571"><enum>80204.</enum><header>Water conveyance enhancement</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior, acting through the Commissioner of Reclamation, for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available through September 30, 2034, for construction and associated activities that restore or increase the capacity of existing Bureau of Reclamation conveyance facilities, in a manner as determined by the Secretary. None of the funds provided under this section shall be reimbursable or subject to matching or cost-share requirements. </text></section></subtitle> <subtitle id="H84050A429816400CBF3802D6B623921B"><enum>C</enum><header>Federal Lands</header> <section id="HBBEA2B596816451697529F067B026C7A"><enum>80301.</enum><header>Rescission of Forest Service Funds</header><text display-inline="no-display-inline">Paragraph (4) of section 23001(a) of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> is repealed and all unobligated balances of amounts made available under such paragraph are hereby rescinded. </text></section>
<section id="H16237807E8D44721A2956AE996866F40"><enum>80302.</enum><header>Rescission of National Park Service and Bureau of Land Management Funds</header><text display-inline="no-display-inline">There is hereby rescinded the unobligated balances of amounts made available by section 50221 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref>.</text></section> <section id="HFD79C449371048A7AC836748E5B60005"><enum>80303.</enum><header>Rescission of Bureau of Land Management and National Park Service Funds</header><text display-inline="no-display-inline">There is hereby rescinded the unobligated balances of amounts made available by section 50222 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref>.</text></section>
<section id="H5FA72C0970E44B4084FF8081B1E4B024"><enum>80304.</enum><header>Rescission of National Park Service Funds</header><text display-inline="no-display-inline">There is hereby rescinded the unobligated balances of amounts made available by section 50223 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref>.</text></section> <section id="HCEDBF8EED9D04DD7AC3FC6738A266C56"><enum>80305.</enum><header>Celebrating America’s 250th Anniversary</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available through fiscal year 2028—</text>
<paragraph id="H0A4B5413AE91494798D8E98D323C842B"><enum>(1)</enum><text display-inline="yes-display-inline">$150,000,000 for events, celebrations, and activities related to the observance and commemoration of the 250th anniversary of the founding of the United States; and</text></paragraph> <paragraph id="H21D5BE4E102848FA9CE83293704A5E6C"><enum>(2)</enum><text>$40,000,000 to carry out Executive Order 13934 of July 3, 2020 (85 Fed. Reg. 41165), Executive Order 13978 of January 18, 2021 (86 Fed. Reg. 6809), and Executive Order 14189 of January 29, 2025 (90 Fed. Reg. 8849) to establish and maintain a statuary park to be known as the National Garden of American Heroes.</text></paragraph></section>
<section id="H3B456C44763043C4812B408109E05247"><enum>80306.</enum><header>Long-Term Contracts for the Forest Service</header>
<subsection id="H4D2C69EDCB36424DAAA823E4AACAEFE1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For each of fiscal years 2025 through 2034, the Chief of the Forest Service (in this section referred to as the <quote>Chief</quote>) shall enter into not less than one long-term contract or agreement with private persons or other public or private entities under section 14(a) of the National Forest Management Act (<external-xref legal-doc="usc" parsable-cite="usc/16/472a">16 U.S.C. 472a(a)</external-xref>) with respect to covered National Forest System lands in each region of the Forest Service that contains covered National Forest System lands.</text></subsection> <subsection id="H4C85882A845A46328E2287148D8176E9"><enum>(b)</enum><header>Terms</header> <paragraph id="H344677D9782E4486B9D17DEB3BFE87E4"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraphs (2) and (3), the Chief shall enter into contracts or agreements under subsection (a) in accordance with section 3903 of title 41, United States Code, and section 14 of the National Forest Management Act (<external-xref legal-doc="usc" parsable-cite="usc/16/472a">16 U.S.C. 472a</external-xref>).</text></paragraph>
<paragraph id="H34E425B943DB48DDA93DB855C4B1B8E4"><enum>(2)</enum><header>Contract length</header><text>The period of a contract or agreement under subsection (a) shall be for at least 20 years, with options for extensions and renewals as determined by the Chief.</text></paragraph> <paragraph id="HE78EA62BFB8846F5885A7FB39CD6AF55"><enum>(3)</enum><header>Cancellation ceilings</header><text display-inline="yes-display-inline">A contract or agreement entered into under subsection (a) shall include provisions for a cancellation ceiling consistent with section 604(d) of the Healthy Forests Restoration Act of 2003 (<external-xref legal-doc="usc" parsable-cite="usc/16/6591c">16 U.S.C. 6591c(d)</external-xref>).</text></paragraph></subsection>
<subsection id="H03238E62761149A4B1FF399ECE52B940"><enum>(c)</enum><header>Receipts</header><text>Any monies derived from an agreement or contract under this section by the Chief shall be deposited in the general fund of the Treasury.</text></subsection> <subsection id="H608FA902BE304D72A65CB4A502C09AAB"><enum>(d)</enum><header>Covered national forest system lands defined</header><text>In this section, the term <term>covered National Forest System lands</term> means the proclaimed National Forest System lands reserved or withdrawn from the public domain of the United States.</text></subsection></section>
<section id="H16610D64B83B47F1A1A0B0BBAF38E983"><enum>80307.</enum><header>Long-Term Contracts for the Bureau of Land Management</header>
<subsection id="H02AD30E4586B4575A4D5DF9C3ECCB3DD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For each of fiscal years 2025 through 2034, the Director of the Bureau of Land Management (in this section referred to as the <quote>Director</quote>) shall enter into not less than one long-term contract or agreement with private persons or other public or private entities under section 1 of the Materials Act of 1947 (<external-xref legal-doc="usc" parsable-cite="usc/30/601">30 U.S.C. 601</external-xref>) with respect to vegetative materials on covered public lands. </text></subsection> <subsection id="HB7C59AFE907D4D2182DF5683DD58EE5C"><enum>(b)</enum><header>Terms</header> <paragraph id="H80D3DA2178A84E9FB79724A0CC24B030"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraphs (2) and (3), the Director shall enter into contracts or agreements under subsection (a) in accordance with section 3903 of title 41, United States Code, and section 2(a) of the Materials Act of 1947 (<external-xref legal-doc="usc" parsable-cite="usc/30/602">30 U.S.C. 602(a)</external-xref>). </text></paragraph>
<paragraph id="H45ECB08D4FC04C258E4DBED0BED30D7C"><enum>(2)</enum><header>Contract length</header><text>The period of a contract or agreement under subsection (a) shall be for at least 20 years, with options for extensions and renewals as determined by the Director. </text></paragraph> <paragraph id="H83CCC74A5E95466FA2AB9DF6CD14D6C1"><enum>(3)</enum><header>Cancellation ceilings</header><text display-inline="yes-display-inline">A contract or agreement entered into under subsection (a) shall include provisions for a cancellation ceiling consistent with section 604(d) of the Healthy Forests Restoration Act of 2003 (<external-xref legal-doc="usc" parsable-cite="usc/16/6591c">16 U.S.C. 6591c(d)</external-xref>).</text></paragraph></subsection>
<subsection id="HE27C00E4FEF5421C9FACE1BB1AD6094D"><enum>(c)</enum><header>Location</header><text display-inline="yes-display-inline">In selecting locations to enter into long-term contracts or agreements under subsection (a), the Director shall prioritize areas with no existing wood processing infrastructure.</text></subsection> <subsection id="H41AD7BCFC70E47B58375AFBB3D6DD9FA"><enum>(d)</enum><header>Receipts</header><text>Any monies derived from an agreement or contract under this section by the Director shall be deposited in the general fund of the Treasury.</text></subsection>
<subsection id="H4760D555B73F458385EE49A195533FB3"><enum>(e)</enum><header>Covered public lands defined</header><text>The term <term>covered public lands</term> has the meaning given the term <term>public lands</term> in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>), except that the term includes Coos Bay Wagon Road Grant lands and Oregon and California Railroad Grant lands.</text></subsection></section> <section id="HE52FAFB3D3F44D1D8971F3751EFD0B59"><enum>80308.</enum><header>Timber production for the Forest Service</header> <subsection id="H77BB3150347F485BAB781EFF5997102A"><enum>(a)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this title, the Secretary of Agriculture, acting through the Chief of the Forest Service or their designee, shall direct timber harvest on covered National Forest System lands in amounts that—</text>
<paragraph id="HB931F7E34C4F442EAA11B69251132949"><enum>(1)</enum><text>in total, equal or exceed the volume that is 25 percent higher than the average of the total volume sold on such lands between fiscal years 2020 through 2024; and</text></paragraph> <paragraph id="HF3C3DE67D4D64A4BAF02367BCBDF6A4F"><enum>(2)</enum><text>are in accordance with the applicable forest plan, including the allowable sale quantity or probable sale quantity, as applicable, of timber applicable to such lands on the date of enactment of this title.</text></paragraph></subsection>
<subsection id="H76B5980A6FE848CD9A1EC1AC2CD15B9F"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H055E8B41581A41CEA94C6D71242EA57D"><enum>(1)</enum><header>Covered National Forest System lands</header> <subparagraph id="H8534035C28664DBA8ABD518597A40F70"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>covered National Forest System lands</term> means the proclaimed National Forest System lands reserved or withdrawn from the public domain of the United States.</text></subparagraph>
<subparagraph id="H122A184F5F654F99BB089B365D76C653"><enum>(B)</enum><header>Exclusions</header><text>The term <term>covered National Forest System lands</term> does not include lands—</text> <clause id="H01F4F1E0AE264B138A6067DF06279263"><enum>(i)</enum><text>that are included in the National Wilderness Preservation System;</text></clause>
<clause id="H5722E4FF0F724246B45D715662D8FB60"><enum>(ii)</enum><text>that are located within a national or State-specific inventoried roadless area established by the Secretary of Agriculture through regulation, unless—</text> <subclause id="H3E96ACADBB96496B9294853E8AED707F"><enum>(I)</enum><text>the forest management activity to be carried out under such authority is consistent with the forest plan applicable to the area; or</text></subclause>
<subclause id="H2BDFF4CD2B69480C8D88A4FD9C708178"><enum>(II)</enum><text>the activity is allowed under the applicable roadless rule governing such lands, including—</text> <item id="H5562EFE762AB4756A0CD256C0D6F0E29"><enum>(aa)</enum><text>the Idaho roadless rule under subpart C of part 294 of title 36, Code of Federal Regulations;</text></item>
<item id="H83BC91CC5EBE47D6ABAC89921285393F"><enum>(bb)</enum><text>the Colorado roadless rule under subpart D of part 294 of title 36, Code of Federal Regulations; or</text></item> <item id="HCA2E0552A580487CB49C9F04959169D7"><enum>(cc)</enum><text>any other roadless rule developed after the date of the enactment of this section by the Secretary with respect to a specific State; or</text></item></subclause></clause>
<clause id="HBA6E38F6B1FA4F1FA2CDF072AF04D33B"><enum>(iii)</enum><text>on which timber harvesting for any purpose is prohibited by Federal statute.</text></clause></subparagraph></paragraph> <paragraph id="H679963424EDB45C9B57DC0D085EEE039"><enum>(2)</enum><header>Forest plan</header><text display-inline="yes-display-inline">The term <term>forest plan</term> means a land and resource management plan prepared by the Forest Service for a unit of the National Forest System pursuant to section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/16/1604">16 U.S.C. 1604</external-xref>). </text></paragraph></subsection></section>
<section id="H039A7B4DCCFF49C2989A490CE0D710B2"><enum>80309.</enum><header>Timber Production for the Bureau of Land Management</header>
<subsection id="HE6DE583AC64F45969CB105AC7E08505D"><enum>(a)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this title, the Secretary of the Interior, acting through the Director of the Bureau of Land Management or their designee, shall direct timber harvest on covered public lands in amounts that—</text> <paragraph id="HC221663867014626AB81FA30718CABE3"><enum>(1)</enum><text display-inline="yes-display-inline">in total, equal or exceed the volume that is 25 percent higher than the average of the total volume sold on such lands between fiscal years 2020 through 2024; and</text></paragraph>
<paragraph id="H602F3F7B15104DCA8084FE42C1AD3600"><enum>(2)</enum><text>are in accordance with the applicable forest plan.</text></paragraph></subsection> <subsection id="H07711E8AB0694B2A828BE4EE1F884EF7"><enum>(b)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="HF6E6D075C6C14DBD840EA6961A9BBBC8"><enum>(1)</enum><header>Covered public lands</header>
<subparagraph id="H7ADD1EDA672540CAA38D3C65EECF545C"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>covered public lands</term> has the meaning given the term <term>public lands</term> in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>), except that the term includes Coos Bay Wagon Road Grant lands and Oregon and California Railroad Grant lands.</text></subparagraph> <subparagraph id="H455F57A1CD8D447496441B7BFEF35812"><enum>(B)</enum><header>Exclusions</header><text>The term <term>covered public lands</term> does not include lands—</text>
<clause id="HD117C3ADD56E426E98EAABAE8150E827"><enum>(i)</enum><text>that are included in the National Wilderness Preservation System; or</text></clause> <clause id="H34F75C43E64E44FEA44A2A86C01F5F3F"><enum>(ii)</enum><text>on which timber harvesting for any purpose is prohibited by Federal statute.</text></clause></subparagraph></paragraph>
<paragraph id="HF498A55424834E05BE3F9A6B1FFDF4CF"><enum>(2)</enum><header>Forest plan</header><text display-inline="yes-display-inline">The term <term>forest plan</term> means a land use plan prepared by the Bureau of Land Management for public lands pursuant to section 202 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1712">43 U.S.C. 1712</external-xref>).</text></paragraph></subsection></section> </subtitle> <enum>IX</enum><header>Committee on Oversight and Government Reform</header> <section id="H16E2D4D36536484E92438D0302AD97B5"><enum>90001.</enum><header>Elimination of the FERS annuity supplement for certain employees</header> <subsection id="H4EF6A9CD0B4B4ECFB909B741A458D7A1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 8421(a) of title 5, United States Code, is amended—</text>
<paragraph id="H0C76EF4581934384A4757E283F382605" display-inline="no-display-inline"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>separated from service under section 8425 or entitled to an annuity under subsection (d) or (e) of section 8412 of this title</quote> after <quote>individual</quote>; and</text></paragraph> <paragraph id="H1760C923163941458167F80AAEB37D1F"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by inserting <quote>separated from service under section 8425 or entitled to an annuity under subsection (d) or (e) of section 8412 of this title</quote> after <quote>an individual</quote>.</text></paragraph></subsection>
<subsection id="H5AE7705798354D32BD2B216507372DBC" display-inline="no-display-inline"><enum>(b)</enum><header>Applicability</header><text>The amendments made by this section shall begin to apply on January 1, 2028, and shall not apply with respect to any individual entitled to an annuity supplement under section 8421 of title 5, United States Code, prior to such date.</text></subsection></section> <section id="HD81B2C962A8D442598BB0843E33BD4B2" section-type="subsequent-section"><enum>90002.</enum><header>Election for at-will employment and lower FERS contributions for new Federal civil service hires</header> <subsection id="HB44CA08E44634BD78E4DBD3AFCC093F9"><enum>(a)</enum><header>Election</header> <paragraph id="H6853ECD8BD41451AB725B3248FE19C21"><enum>(1)</enum><header>In general</header><text>Subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/33">chapter 33</external-xref> of title 5, United States Code, is amended by adding at the end the following:</text>
<quoted-block style="USC" id="HEC0C136001364107AE4A0A81146FC9D6" display-inline="no-display-inline">
<section id="H9189B949D74F45A99C26D2DCC9D2CFFF"><enum>3330g.</enum><header>Election for at-will employment and lower FERS contributions</header>
<subsection id="HEC3CA9D1B3FB4705B38DC47E411A1EC0"><enum>(a)</enum><header>Election</header>
<paragraph id="HBA99B4C7D1CD407083D01C256065DC04"><enum>(1)</enum><header>In general</header><text>Not later than the last day of the probationary period (if any) for an individual initially appointed to a covered position after the date of the enactment of this section, such individual may make an irrevocable election to be employed on an at-will basis, subject to the requirements of this section.</text></paragraph> <paragraph id="H0765E2B51868433CB801F0685F9161EC"><enum>(2)</enum><header>Failure to make election</header><text>An individual who does not make the election under paragraph (1) shall be subject to the requirements of section 8422(a)(3)(D).</text></paragraph></subsection>
<subsection id="HB6160CD21A11484A8AC94BE76B4AB36A"><enum>(b)</enum><header>At-will employment</header><text display-inline="yes-display-inline">Notwithstanding chapter 43, 71, or 75 of this title, any individual who makes an affirmative election under subsection (a)(1) shall—</text> <paragraph id="H0F0F156E731E483CAD589E384B35F73B"><enum>(1)</enum><text>be considered an at-will employee; and</text></paragraph>
<paragraph id="H03F6EF117B2A49A6B9F0067EDEB97A6B"><enum>(2)</enum><text>may be subject to an adverse action up to and including removal, without notice or right to appeal, by the head of the agency at which the individual is employed for good cause, bad cause, or no cause at all.</text></paragraph></subsection> <subsection id="H2E2D19195A82481C857ADDBEED63B4B3"><enum>(c)</enum><header>Application of other laws</header><text>Notwithstanding any other requirement of this section, this section shall not be construed to reduce, extinguish, or otherwise effect any right or remedy available to any individual who elects to be an at-will employee under subsection (a)(1) under any of the following provisions of law:</text>
<paragraph id="H320AC54B43A04637B626FF4FF12AFC3E" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">The protections relating to prohibited personnel practices (as that term is defined in section 2302).</text></paragraph> <paragraph id="H459B894CE6424EC39497C7E340FA09F3"><enum>(2)</enum><text display-inline="yes-display-inline">The Congressional Accountability Act of 1995, in the case of employees of the legislative branch who are subject to this section.</text></paragraph></subsection>
<subsection id="H2374F065AA2D427CB4DEF07642ED23C4"><enum>(d)</enum><header>Covered position</header><text display-inline="yes-display-inline">In this section, the term <quote>covered position</quote>—</text> <paragraph id="HA0360D975AFA464984852453464FA2CE"><enum>(1)</enum><text>means—</text>
<subparagraph id="H6C7312900E3F4922815AA15161D7D2F8"><enum>(A)</enum><text>any position in the competitive service;</text></subparagraph> <subparagraph id="H8CCD5E4975C94F55884BBD10B5BB5023"><enum>(B)</enum><text>a career appointee position in the Senior Executive Service;</text></subparagraph>
<subparagraph id="HE3C621A8D5114A1DA171FCC1D2EB1B07"><enum>(C)</enum><text>a position in the excepted service; and</text></subparagraph></paragraph> <paragraph id="H70F4C9B1C66E473F89087F70E6DA7255"><enum>(2)</enum><text>does not include—</text>
<subparagraph id="H1CA48C43BEE64FD994C06B54F738EF45"><enum>(A)</enum><text display-inline="yes-display-inline">any position excepted from the competitive service because of its confidential, policy-determining, policy-making, or policy-advocating character; </text></subparagraph> <subparagraph id="H4AF3A3C2A8DF4E4F8F2D4700D36F7FCB"><enum>(B)</enum><text display-inline="yes-display-inline">any position excluded from the coverage of section 2302 (by operation of subsection (a)(2)(B) of such section) or chapter 75; or</text></subparagraph>
<subparagraph id="H7CEC943254C74AABA3ACC030AC93CA12" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">any position subject to mandatory separation under section 8335 or 8425.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HF40E761B51BB4A0692F4522143A2726E"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for such subchapter is amended by adding after the item relating to section 3330f the following:</text>
<quoted-block style="USC" id="HAB01487B98474639A1383236055EA2F9" display-inline="no-display-inline">
<toc regeneration="no-regeneration">
<toc-entry level="section">3330g. Election for at-will employment and lower FERS contributions.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H306FB1073FC048A8AD6360237C85C0F9"><enum>(b)</enum><header>Increase in FERS contributions</header><text>Section 8422(a) of title 5, United States Code, is amended by adding at the end the following:</text> <quoted-block style="USC" id="H98B5F9A7FEFE46519248F3F8A6BEAD40" display-inline="no-display-inline"> <subparagraph id="H3A8A633D12764ED69141EC5DDF8E7A91"><enum>(D)</enum><text display-inline="yes-display-inline">The applicable percentage under this paragraph for civilian service by any individual who elects not to be employed on an at-will basis under section 3330g shall be equal to the percentage required under subparagraph (C), increased by 5 percentage points.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H05F90084C56E4CAAB97C5159C6357EFD"><enum>(c)</enum><header>Application</header><text>This section and the amendments made by this section shall apply to individuals initially appointed to positions in the civil service subject to such section and amendments appointed on or after the date of the enactment of this Act.</text></subsection></section> <section id="H08F27C1492494A8B9DD8C3CF6C99098A"><enum>90003.</enum><header>Filing fee for Merit Systems Protection Board claims and appeals</header> <subsection id="HE9D03AFB7FBB46A39474E00CE0754739"><enum>(a)</enum><header>In general</header><text>Section 7701 of title 5, United States Code, is amended—</text>
<paragraph id="H62EBB502DBC242EB84EAED299AE5B1B9"><enum>(1)</enum><text>in redesignating subsection (k) as subsection (l); and</text></paragraph> <paragraph id="H1D252756F62D4160A23B0C4D2B858B26"><enum>(2)</enum><text>by inserting after subsection (j) the following:</text>
<quoted-block style="OLC" id="HCCB033F3F7544F23ACE5B3BEA5FF3EBE">
<subsection id="HAD9F8C080A6C4775B4E1B1355716A674"><enum>(k)</enum>
<paragraph id="HA8E728E98ECE4BCEA6BAEA901CB35EC9" display-inline="yes-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">The Board shall establish and collect a filing fee to be paid by any employee, former employee, or applicant for employment filing a claim or appeal with the Board under this title, or under any other law, rule, or regulation, consistent with the requirements of this subsection.</text></paragraph> <paragraph id="HD646174D9D41450ABE35223AE9CAD057" indent="up1"><enum>(2)</enum><text>The filing fee under paragraph (1) shall—</text>
<subparagraph id="H8EC6DC1F88C84C0FAC6A065C41AF42DD" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">be in an amount equal to the filing fee for a civil action, suit, or proceeding under section 1914(a) of title 28;</text></subparagraph> <subparagraph id="H1979BA0A3B7B434F85A0A8074276E89C" commented="no"><enum>(B)</enum><text>be paid on the date the individual submits a claim or appeal to the Board; and</text></subparagraph>
<subparagraph id="H8EE998905C744AE3A48E80A9E838E3B6"><enum>(C)</enum><text>if the individual is the prevailing party under such claim or appeal, be returned to such individual.</text></subparagraph></paragraph> <paragraph id="HC14F85C1F37D4750BC64CE356132C8AD" indent="up1"><enum>(3)</enum><text>The filing fee under this subsection shall not be required for any—</text>
<subparagraph id="H37D126068920445186D91E3B4E71AA06"><enum>(A)</enum><text display-inline="yes-display-inline">action brought by the Special Counsel under section 1214, 1215, or 1216; or</text></subparagraph> <subparagraph id="H227F817A8C404B469A17B9F702CA3E85"><enum>(B)</enum><text display-inline="yes-display-inline">any claim or appeal of a prohibited personnel practice described in section 2302(b)(8) or 2302(b)(9)(A)(i), (B), (C), or (D) or in section 1221.</text></subparagraph></paragraph>
<paragraph id="H1CD47B46E38546EC96E56DE04FFCE619" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">On the date that a claim or appeal with respect to which the individual is not the prevailing party has not been appealed and is no longer appealable because the time for taking an appeal has expired, or which has been appealed under section 7703 and the appeals process for which is completed, the fee collected under paragraph (1) shall, except as provided in paragraph (2)(C), be deposited into the miscellaneous receipts of the Treasury.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HDFF0AE07C9EA4B2193123C60C6DD2D57" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header>Application</header><text>The fee required under the amendment made by subsection (a) shall apply to any claim or appeal filed with the Merit Systems Protection Board after the date that is 3 months after the date of the enactment of this section.</text></subsection></section>
<section id="HE1322CD7280643579F98BBD4845CD866"><enum>90004.</enum><header>FEHB protection</header>
<subsection id="HFE90BDF512EE45A09C11CDAAAFD57EE4"><enum>(a)</enum><header>FEHB improvements</header>
<paragraph id="H041F9AE086294E0C9295FF3E98C682F2"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="HE335FCCB088840B08CBCD71DD743FCB4"><enum>(A)</enum><header>Director</header><text>The term <term>Director</term> means the Director of the Office of Personnel Management.</text></subparagraph>
<subparagraph id="HFC1DE76BE6C54FC2BA7BADDD68815B81"><enum>(B)</enum><header>Employing office</header><text>The term <term>employing office</term> has the meaning given the term in section 890.101(a) of title 5, Code of Federal Regulations, or any successor regulation.</text></subparagraph> <subparagraph id="H143A5FFB40B7490E9C9DA4DBEBFE97CF"><enum>(C)</enum><header>Health benefits plan; member of family</header><text>The terms <term>health benefits plan</term> and <term>member of family</term> have the meanings given those terms in section 8901 of title 5, United States Code.</text></subparagraph>
<subparagraph id="H06DFDAB8B7244F54B045931C0FC24E12"><enum>(D)</enum><header>Inspector General</header><text>The term <quote>Inspector General</quote> means the Inspector General of the Office of Personnel Management.</text></subparagraph> <subparagraph id="HD9C473A3AA994EE784D593FDAF643645"><enum>(E)</enum><header>Open season</header><text>The term <term>open season</term> means an open season described in section 890.301(f) of title 5, Code of Federal Regulations, or any successor regulation.</text></subparagraph>
<subparagraph id="H309C793A2FA445E9803AEB459D254461"><enum>(F)</enum><header>Program</header><text>The term <term>Program</term> means the health insurance programs carried out under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/89">chapter 89</external-xref> of title 5, United States Code, including the program carried out under section 8903c of that title.</text></subparagraph> <subparagraph id="H5AAF0639CADE4BE2AE21996049F4836D"><enum>(G)</enum><header>Qualifying life event</header><text>The term <term>qualifying life event</term> has the meaning given the term in section 892.101 of title 5, Code of Federal Regulations, or any successor regulation.</text></subparagraph></paragraph>
<paragraph id="HBEF18A437A0647FBAB4162CEEAA9C487"><enum>(2)</enum><header>Verification requirements</header>
<subparagraph id="H4D9C614B15C2437AB8DE4F5D87A12CA5"><enum>(A)</enum><header>In general</header><text>Not later than 1 year after the date of the enactment of this Act, the Director shall issue regulations and implement a process to verify—</text> <clause id="H4BEC53ECFE31408EA4AEEEFE894FEE13"><enum>(i)</enum><text>the veracity of any qualifying life event through which an enrollee in the Program seeks to add a member of family with respect to the enrollee to a health benefits plan under the Program; and</text></clause>
<clause id="HB14DF1F085524D39B04A312D059FE42D"><enum>(ii)</enum><text>that, when an enrollee in the Program seeks to add a member of family with respect to the enrollee to the health benefits plan of the enrollee under the Program, including during any open season, the individual so added is a qualifying member of family with respect to the enrollee.</text></clause></subparagraph> <subparagraph id="HED903BC57C1E4BBD8288BE272D8BAAF0"><enum>(B)</enum><header>Record retention</header><text display-inline="yes-display-inline">The process implemented under subparagraph (A) shall require the records used for a verification described in such subparagraph under such process with respect to an individual enrolled in a health benefits plan under the Program to be provided to the Office of Personnel Management and retained by the Office of Personnel Management until the expiration of a six-year period beginning after the date of such verification in which such individual is not enrolled in a health benefits plan under the Program.</text></subparagraph></paragraph>
<paragraph id="H1A8B2DE15BC94875A306BE9B6016B288"><enum>(3)</enum><header>Fraud risk assessment</header><text>In any fraud risk assessment conducted with respect to the Program on or after the date of the enactment of this Act, the Director shall include an assessment of individuals who are enrolled in, or covered under, a health benefits plan under the Program even though those individuals are not eligible to be so enrolled or covered.</text></paragraph> <paragraph id="H4E6182A145D04746BCABFB10E980CEFF"><enum>(4)</enum><header>Family member eligibility verification audit</header> <subparagraph id="HAD7DB6E65DA44A3ABCD66CB8796A2F68"><enum>(A)</enum><header>In general</header><text>During the 5-year period beginning 1 year after the date of the enactment of this Act, the Director shall conduct a comprehensive audit regarding members of family who are covered under an enrollment in a health benefits plan under the Program.</text></subparagraph>
<subparagraph id="HA429E312E58B42EC9E466A884DC75CB1"><enum>(B)</enum><header>Contents</header><text>In conducting an audit required by subparagraph (A), the Director shall review marriage certificates, birth certificates, and other appropriate documents that are necessary to determine eligibility to enroll in a health benefits plan under the Program.</text></subparagraph> <subparagraph id="H03DE232F9A314EA2A1E29E4D44A98D2E"><enum>(C)</enum><header>Record retention</header><text display-inline="yes-display-inline">All records pertaining to the eligibility of an individual to be enrolled in, or covered under, a health benefits plan under the Program obtained by the Director in the audit required by subparagraph (A) shall be retained by the Office of Personnel Management until the expiration of a six-year period beginning after the date of such audit in which such individual is not enrolled in, or covered under, a health benefits plan under the Program.</text></subparagraph>
<subparagraph id="H2D671A15E6C04E3D9DAB3B9F0C9EAC39"><enum>(D)</enum><header>Referral to Inspector General</header><text display-inline="yes-display-inline">The Director shall refer any instances of individuals enrolled in, or covered under, a health benefits plan under the Program who are not eligible to be so enrolled or covered that are identified in the audit required by subparagraph (A) to the Inspector General.</text></subparagraph></paragraph> <paragraph id="H50A36AE645224E8FA88E07099689EA2F"><enum>(5)</enum><header>Disenrollment or removal</header> <subparagraph id="H2BE445914AB14B1CB75A24DD01014699"><enum>(A)</enum><header>In general</header><text>Not later than 6 months after the date of the enactment of this Act, the Director shall develop a process by which any individual enrolled in, or covered under, a health benefits plan under the Program who is not eligible to be so enrolled or covered shall be disenrolled or removed from enrollment in a health benefits plan under the Program.</text></subparagraph>
<subparagraph id="HB8BDAE7807B543D7A6252A65570B976E"><enum>(B)</enum><header>Notify Inspector General</header><text>The Director shall notify the Inspector General of each individual disenrolled or removed from enrollment in a health benefits plan under the Program under the process developed under subparagraph (A).</text></subparagraph></paragraph></subsection> <subsection id="HFE62428C1F4E4C40A67F5B79720744DB"><enum>(b)</enum><header>Earned benefits and healthcare administrative services associated oversight and audit funding</header> <paragraph id="H1C6BEB8BCCD146AC977BE1ABCAE17E12" commented="no"><enum>(1)</enum><header>In general</header><text>Section 8909(a)(2) of title 5, United States Code, is amended by striking <quote>Congress.</quote> and inserting <quote>Congress, except that the amounts authorized under subsection (b)(2) for the Office shall not be subject to the limitations that may be specified annually by Congress.</quote>.</text></paragraph>
<paragraph id="H0BE51979862348B5BB6F3F9C51C5804C"><enum>(2)</enum><header>Oversight</header><text>Section 8909(b) of title 5, United States Code, is amended—</text> <subparagraph id="HD4AE7E5E91054F6A80D392A27F5D198E"><enum>(A)</enum><text>by redesignating paragraph (2) as paragraph (5); and</text></subparagraph>
<subparagraph id="HA3DA7F18918A4876AA57362C7929A411"><enum>(B)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block id="HF4A14A250E9442AB80F82889348043EA" style="USC"> <paragraph id="H59569BC3A7314181B4AC57E06E9F4A7A" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">In addition to the funds provided under paragraph (1), amounts of all contributions shall be available for the Office to develop, maintain, and conduct ongoing eligibility verification and oversight over the enrollment and eligibility systems with respect to benefits under this chapter, including the Postal Service Health Benefits Program under section 8903c. Amounts for the Office under this paragraph shall not be available in excess of the following amounts in the following fiscal years: </text>
<subparagraph id="HA96589F28E5F4C32A6B12CA35C32DE4C" commented="no"><enum>(A)</enum><text>In fiscal year 2026, $36,792,000.</text></subparagraph> <subparagraph id="H041E5F2232504DA8A91CCABE268B9E4C" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">In fiscal year 2027, $44,733,161.</text></subparagraph>
<subparagraph id="H684F4AC2765E429A81B32EFD3DE7C986" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">In fiscal year 2028, $50,930,778.</text></subparagraph> <subparagraph id="HEBA8D9C4FB8C4354B9AE226D36E7FEDF" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">In fiscal year 2029, $54,198,238.</text></subparagraph>
<subparagraph id="HFBC0ACD1399A43CBB42D99F8DE400A3D" commented="no"><enum>(E)</enum><text display-inline="yes-display-inline">In fiscal year 2030, $54,855,425.</text></subparagraph> <subparagraph id="H773B54C64CF7423CA0F3548FF50EE3E5" commented="no"><enum>(F)</enum><text display-inline="yes-display-inline">In fiscal year 2031, $56,062,244.</text></subparagraph>
<subparagraph id="H770E9259995F4015A1BB4BA652A89941" commented="no"><enum>(G)</enum><text display-inline="yes-display-inline">In fiscal year 2032, $57,295,613.</text></subparagraph> <subparagraph id="H25A41D93C17F48D7B2045CCEB02E3741" commented="no"><enum>(H)</enum><text display-inline="yes-display-inline">In fiscal year 2033, $58,556,117.</text></subparagraph>
<subparagraph id="HCB51152D8C6D4A8FB9BB505E5E383337" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">In fiscal year 2034, $59,844,351.</text></subparagraph> <subparagraph id="H84F8EA8A74C949AAB1670406B76F2191" commented="no"><enum>(J)</enum><text display-inline="yes-display-inline">In fiscal year 2035 and each fiscal year thereafter, the amount equal to the dollar limit for the immediately preceding fiscal year, increased by 2.2. percent. </text></subparagraph></paragraph>
<paragraph id="H9CC42079A12C4C4F9FDD2923A4753CE2" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">In fiscal year 2026, $80,000,000, to be derived from all contributions and to remain available until expended, shall be available for the Office to conduct the audit required under section 90004(a)(4) of the Act titled ‘An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14’.</text></paragraph> <paragraph id="HED87F7F2D4D848AEB66AE13627101C42" commented="no"><enum>(4)</enum><text display-inline="yes-display-inline">Amounts of all contributions shall be available for the Office of Personnel Management Office of the Inspector General to conduct oversight associated with activities under this chapter (including the Postal Service Health Benefits Program under section 8903c), including activities associated with enrollment and eligibility in these programs and any associated audit activities as required under section 90004 of the Act titled ‘An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14’. Amounts for the Office of the Inspector General under this paragraph shall not be available in excess of the following amounts in the following fiscal years:</text>
<subparagraph id="HB58F976D949D4606B080A955D507FD43" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">In fiscal year 2026, $5,090,278.</text></subparagraph> <subparagraph id="H8E4DA32881D3443BBF46DD7576755291" commented="no"><enum>(B)</enum><text>In fiscal year 2027 and each fiscal year thereafter, the amount equal to the dollar limit for the immediately preceding fiscal year, increased by 2.2 percent. </text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection></section>
<enum>X</enum><header>Committee on Transportation and Infrastructure</header>
<section id="H31B515450D434F42BA1A85627E25CB4D" section-type="subsequent-section"><enum>100001.</enum><header>Coast Guard assets necessary to secure the maritime border and interdict migrants and drugs</header>
<subsection id="H163E4448B16140A2AE1194F0922F8089"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For the purpose of the acquisition, sustainment, improvement, and operation of United States Coast Guard assets, in addition to amounts otherwise made available, there is appropriated to the Commandant of the Coast Guard for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text> <paragraph id="HC27DC8D732EE4D16836B244DCA887F1C"><enum>(1)</enum><text>$571,500,000 for fixed wing aircraft and spare parts, training simulators, support equipment, and program management for such aircraft;</text></paragraph>
<paragraph id="H6AA7735D7BE14D8C92940E51BF44DE94"><enum>(2)</enum><text>$1,283,000,000 for rotary wing aircraft and spare parts, training simulators, support equipment, and program management for such aircraft; </text></paragraph> <paragraph id="H51907D4C826B44EA84596248FBD8CD6E"><enum>(3)</enum><text>$140,000,000 for long-range unmanned aircraft systems and base stations, support equipment, and program management for such systems; </text></paragraph>
<paragraph id="H60F8E88142D949B2B868D2AB493B880B"><enum>(4)</enum><text>$4,300,000,000 for Offshore Patrol Cutters and spare parts and program management for such Cutters;</text></paragraph> <paragraph id="H3643C17AD5E542E3A80B50BA105FCC26"><enum>(5)</enum><text>$1,000,000,000 for Fast Response Cutters and spare parts and program management for such Cutters; </text></paragraph>
<paragraph id="H361271FFA7D546D9995E497281C8F9D2" commented="no"><enum>(6)</enum><text>$4,300,000,000 for Polar Security Cutters and spare parts and program management for such Cutters;</text></paragraph> <paragraph id="H665D82E1EFC64F889A3E2B2CFB6D794E"><enum>(7)</enum><text display-inline="yes-display-inline">$4,978,000,000 for Arctic Security Cutters and domestic icebreakers and spare parts and program management for such Cutters and icebreakers;</text></paragraph>
<paragraph id="HCB26FCBBECE540CA9657A86E51CAEE52"><enum>(8)</enum><text display-inline="yes-display-inline">$3,154,500,000 for design, planning, engineering, construction of, and program management for shoreside infrastructure, of which—</text> <subparagraph id="H7CE513F71E30474B9CCCB53A70FD3982"><enum>(A)</enum><text display-inline="yes-display-inline">$400,000,000 is provided for hangers and maintenance and crew facilities for the fixed wing aircraft for which funds are appropriated under paragraph (1) and rotary wing aircraft for which funds are appropriated under paragraph (2); </text></subparagraph>
<subparagraph id="H897F3C097A364430984AB6AA756DB755"><enum>(B)</enum><text>$2,329,500,000 is provided for homeports for the Cutters for which funds are appropriated under paragraphs (4), (5), (6), and (7), National Security Cutters, and other Fast Response Cutters; and </text></subparagraph> <subparagraph id="H804FA69310904AEDBD4B7F1D4F1B5175"><enum>(C)</enum><text>$425,000,000 is provided for design, planning, engineering, construction of, and program management for enlisted boot camp barracks, multi-use training centers, and other related facilities; </text></subparagraph></paragraph>
<paragraph id="H81310A313E674299ADCFF7AD1184249C"><enum>(9)</enum><text display-inline="yes-display-inline">$1,300,000,000 for aviation, cutter, shoreside facility depot maintenance, and C5I service maintenance, of which $500,000,000 is provided to acquire, procure, or construct a floating dry dock under subsection (b) and conduct channel dredging necessary to allow Cutters for which funds are appropriated under paragraph (4) and National Security Cutters to be maintained and repaired in such dry dock; and</text></paragraph> <paragraph id="HE1B7C0B393E340E891D2318E183AD8DD"><enum>(10)</enum><text>$180,000,000 for equipment and services for maritime domain awareness, of which $75,000,000 is provided to contract the services of, acquire, or procure autonomous maritime systems. </text></paragraph></subsection>
<subsection id="HA12477D406064BA38F88853D76AEED02"><enum>(b)</enum><header>Requirements</header>
<paragraph id="HABA5CF002D144695A7EB360A98EDA4EB" display-inline="no-display-inline"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the Commandant may not acquire, procure, or construct a floating dry dock for the Coast Guard Yard with amounts appropriated under subsection (a).</text></paragraph> <paragraph id="H240785BAB67B464CAB411CEE72C9AFF9"><enum>(2)</enum><header>Permissible acquisition, procurement, or construction methods</header><text>Notwithstanding paragraph (1) of this subsection and section 1105(a) of title 14, United States Code, the Commandant may, through September 30, 2030—</text>
<subparagraph id="HDD7E16FDEE77420183AFC298B60446EE"><enum>(A)</enum><text>provide for an entity other than the Coast Guard to contract for the acquisition, procurement, or construction of a floating dry dock by contract, purchase, or other agreement;</text></subparagraph> <subparagraph id="H89E6AC544E89453FBB58F74EF72B727F"><enum>(B)</enum><text>construct a floating dry dock at the Coast Guard Yard; or</text></subparagraph>
<subparagraph id="H9242C57BAE7A42C2A0BF3638CED90A19"><enum>(C)</enum><text>acquire or procure a commercially available floating dry dock.</text></subparagraph></paragraph> <paragraph id="HA4D3C76DB6814AEA83FF62F0650CD81B"><enum>(3)</enum><header>Floating dry dock defined</header><text>In this section, the term <quote>floating dry dock</quote> means equipment that is—</text>
<subparagraph id="HEA57C81D5E084BE68FAC0114E12EB921"><enum>(A)</enum><text>documented under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/46/121">chapter 121</external-xref> of title 46, United States Code; and</text></subparagraph> <subparagraph id="HA0E5FC2F601A4D0C92EE9FD2796AC0A3"><enum>(B)</enum><text>capable of meeting the lifting and maintenance requirements of an Offshore Patrol Cutter or a National Security Cutter.</text></subparagraph></paragraph></subsection>
<subsection id="H88430F0D629B44E7A2F1C487AA05DCE5"><enum>(c)</enum><header>Limitation</header><text>Not more than 15 percent of the amounts provided in paragraph (9) of subsection (a) shall be available for design, planning, and engineering of the facilities described in such paragraph.</text></subsection> <subsection id="H51F0BFE4976240539CACA599AE5258F6"><enum>(d)</enum><header>Application</header><text>In carrying out acquisitions or procurements for which funds are appropriated under subsection (a), sections 1131, 1132, and 1133 of title 14, United States Code, shall not apply.</text></subsection>
<subsection id="H4BCE0E6CBE9B4CF3AC5ED98C42B842E1"><enum>(e)</enum><header>Entity other than the Coast Guard</header><text>Notwithstanding section 1105(a) of title 14, United States Code, in carrying out acquisition, procurement, or construction of Arctic Security Cutters or domestic icebreakers for which funds are appropriated under subsection (a)(7), the Commandant may provide for an entity other than the Coast Guard to contract for such acquisition, procurement, or construction. </text></subsection> <subsection id="H3A882F2FBB9D402280917203C900246D"><enum>(f)</enum><header>Compliance with applicable reporting requirements</header><text>None of the amounts provided in—</text>
<paragraph id="HDE5CF799319F42B5A569313BD6152CBB"><enum>(1)</enum><text>this section may be obligated or expended during any fiscal year in which the Commandant is not compliant with sections 5102 and 5103 (excluding section 5103(e)) of title 14, United States Code; and</text></paragraph> <paragraph id="H9486D004D05D41B3B4953D83F9119BB8"><enum>(2)</enum><text display-inline="yes-display-inline">paragraphs (1) and (2) of subsection (a) may be obligated or expended until the Commandant provides the report required under section 11217 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (<external-xref legal-doc="public-law" parsable-cite="pl/117/263">Public Law 117–263</external-xref>) to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.</text></paragraph></subsection>
<subsection id="HD9ED6A678976473DA9E22ADD5E5BAA26"><enum>(g)</enum><header>Notification requirement</header><text display-inline="yes-display-inline">The Commandant shall notify the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate not less than 1 week prior to taking any procurement actions impacting estimated costs or timelines for acquisitions or procurements funded with amounts appropriated under this section.</text></subsection> <subsection id="H9D3DF5512FE748B29DDA12B68609F61C"><enum>(h)</enum><header>Expenditure plan</header><text display-inline="yes-display-inline">Not later than 90 days after the date of enactment of this Act, the Commandant shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a detailed expenditure plan, including projected project timelines for each acquisition and procurement funded under this section and a list of project locations to be funded under paragraphs (8) and (9) of subsection (a).</text></subsection>
<subsection id="H80555EC904CA430E898C1B39E2FDB998"><enum>(i)</enum><header>Exception</header><text display-inline="yes-display-inline">If the President authorizes an exception under section 1151(b) of title 14, United States Code, for any Coast Guard vessel, or the hull or superstructure of such vessel for which funds are appropriated under paragraphs (4) through (7) of subsection (a), no such funds shall be obligated until the President submits to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a written explanation of the circumstances requiring such an exception in the national security interest, including—</text> <paragraph id="HB9600AE9483A497B9D5E3628904EB928"><enum>(1)</enum><text>a confirmation that there are insufficient qualified United States shipyards to meet the national security interest without such exception; and</text></paragraph>
<paragraph id="H9FEF319FD1C1488390BF1F3EF19ACC54"><enum>(2)</enum><text>actions taken by the President to enable qualified United States shipyards to meet national security requirements prior to the issuance of such an exception.</text></paragraph></subsection></section> <section id="H364A602356224BCE822C881712D61BA0" section-type="subsequent-section"><enum>100002.</enum><header>Vessel tonnage duties</header><text display-inline="no-display-inline">Section 60301 of title 46, United States Code, is amended—</text>
<paragraph id="HB7C524C64D6F4479BDE2EE9FC3898E48"><enum>(1)</enum><text>in subsection (a) by striking <quote>, for fiscal years 2006 through 2010, and 2 cents per ton, not to exceed a total of 10 cents per ton per year, for each fiscal year thereafter,</quote>; and</text></paragraph> <paragraph id="HF2404812E1AD4ACB84E8E15F229C2D9D"><enum>(2)</enum><text>in subsection (b) by striking <quote>, for fiscal years 2006 through 2010, and 6 cents per ton, not to exceed a total of 30 cents per ton per year, for each fiscal year thereafter,</quote>.</text></paragraph></section>
<section id="H178E1E3B165E484582E4838432A3286A" section-type="subsequent-section"><enum>100003.</enum><header>Registration fee on motor vehicles</header>
<subsection id="H55FAADF038874D40B7E8C23036555E66"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">Chapter 1</external-xref> of title 23, United States Code, is amended by adding at the end the following:</text> <quoted-block style="USC" display-inline="no-display-inline" id="HE3C4C4AAFB4E435F9DE3381E0CD6C449"> <section id="HA9700565630D42CEA4E20053B568EAC4"><enum>180.</enum><header>Registration fee on motor vehicles.</header> <subsection id="H135A31446BE84DA990DA57EE7BFC1EFD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator of the Federal Highway Administration shall impose for each year the following registration fee amounts on the owner of a vehicle registered for operation by a State motor vehicle department:</text>
<paragraph id="H30F1A2A6A71B44FFAC92C74AD500CDDA"><enum>(1)</enum><text>$250 for a covered electric vehicle.</text></paragraph> <paragraph id="H7058147F56484C169536F208C09FB63C"><enum>(2)</enum><text>$100 for a covered hybrid vehicle.</text></paragraph></subsection>
<subsection id="HC5BB2B7D46814797B38B81700AFED76E"><enum>(b)</enum><header>Withholding of funds for noncompliance</header><text display-inline="yes-display-inline">The Administrator shall withhold, from amounts required to be apportioned to any State under section 104(b), an amount equal to 125 percent to the amount required to be remitted under subsection (c)(2). The Administrator shall withhold the amount on the first day of each fiscal year beginning after September 30, 2026, in which the State does not meet the requirements of subsection (c). </text></subsection> <subsection id="H7289453214B44BD38065E1D33DB04F44"><enum>(c)</enum><header>Collection and remittance of fee</header> <paragraph id="H8EEA4F865DE44FC4B69E20DA33DC7565"><enum>(1)</enum><header>Collection of fee</header><text>A State motor vehicle department shall—</text>
<subparagraph id="HBC4DA87968984FE88C624FCAB5E0E806"><enum>(A)</enum><text display-inline="yes-display-inline">incorporate the collection of the fees established under subsection (a) into the vehicle registration and renewal processes administered by such department, so long as such fees are imposed for each year in which the fees are required; or</text></subparagraph> <subparagraph id="HBFF8D7E86EC047A8885B784A4D9D21A7"><enum>(B)</enum><text>obtain approval from the Administrator to establish an alternate means of compliance for the collection of such fees that is acceptable to the Administrator.</text></subparagraph></paragraph>
<paragraph id="H6DC8751BF5714883B70B1165165CBBA4"><enum>(2)</enum><header>Remittance of fee</header><text>Not later than 30 days after the last day of each month, a State motor vehicle department shall remit to the Administrator the balance of the total fee amounts collected under this section in the preceding month less the portion reserved for administrative expenses under subsection (e).</text></paragraph></subsection> <subsection id="H7895EA83DE304C64B1D4B51148FFE762"><enum>(d)</enum><header>Fee assessment</header><text>The amounts specified in subsection (a) shall be increased on an annual basis to account for the rate of inflation each fiscal year in accordance with the Consumer Price Index for All Urban Consumers of the Bureau of Labor Statistics.</text></subsection>
<subsection id="HD7EF34702B264EE7BCE2ED309D7CE066"><enum>(e)</enum><header>Administrative expenses</header><text display-inline="yes-display-inline">In any fiscal year in which a State is in compliance with this section, such State may retain an amount not to exceed 1 percent of the total fees collected under this section for administrative expenses.</text></subsection> <subsection id="HA5DDE7E969B842F6BE617F0774E2A0B9"><enum>(f)</enum><header>Applicability of fees</header><text display-inline="yes-display-inline">The fees imposed under paragraphs (1) and (2) of subsection (a) shall terminate on October 1, 2035.</text></subsection>
<subsection id="H0EA7BCB2CE8C4160AA9EC4D740BC280E" commented="no"><enum>(g)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text> <paragraph id="H175ED132A3084D17AE8AC2E8217372B5" commented="no"><enum>(1)</enum><header>Covered electric vehicle</header><text display-inline="yes-display-inline">The term <term>covered electric vehicle</term> means a covered motor vehicle with an electric motor as the sole means of propulsion of such vehicle.</text></paragraph>
<paragraph id="H07350429762D42658C7D8DB63829B7DA"><enum>(2)</enum><header>Covered motor vehicle</header><text>The term <term>covered motor vehicle</term> has the meaning given the term <term>motor vehicle</term> under section 154(a) but excludes a motor vehicle that is a covered farm vehicle or commercial motor vehicle (as such terms are defined in section 390.5 of title 49, Code of Federal Regulations).</text></paragraph> <paragraph id="H845D46691C534F0A941A69B74E9A706F" commented="no"><enum>(3)</enum><header>Covered hybrid vehicle</header><text display-inline="yes-display-inline">The term <term>covered hybrid vehicle</term> means a covered motor vehicle propelled by a combination of an electric motor and an internal combustion engine or other power source and components thereof.</text></paragraph></subsection></section><after-quoted-block>. </after-quoted-block></quoted-block></subsection>
<subsection id="H16DD9C6C10A94C4BA0E5844639D2F127"><enum>(b)</enum><header>Implementation of certain processes</header>
<paragraph id="H1904F5F56F374C63A391E755E71DBF01"><enum>(1)</enum><header>Implementation</header><text display-inline="yes-display-inline">The Administrator of the Federal Highway Administration shall provide grants to State motor vehicle departments to implement a process to carry out section 180 of title 23, United States Code.</text></paragraph> <paragraph id="H392C868444D640659733196E5D32B22A"><enum>(2)</enum><header>Funding</header><text display-inline="yes-display-inline">Out of any money in the Treasury not otherwise appropriated, $104,000,000 is to remain available until September 30, 2029, beginning in the first fiscal year following the date of enactment of this Act, for grants under paragraph (1).</text></paragraph>
<paragraph id="HFAF02248568242719B38F29389FB1FFB"><enum>(3)</enum><header>Eligible amounts</header><text>Each State motor vehicle department may receive not more than $2,000,000 under this subsection.</text></paragraph></subsection> <subsection id="HAD26B02972FC4B42800D5CBDF06ABF0D"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Administrator shall issue such regulations and guidance as are necessary to—</text>
<paragraph id="H6601CA09926F4145A3A9D06336FAE181"><enum>(1)</enum><text>carry out section 180 of title 23, United States Code (as added by this Act); and</text></paragraph> <paragraph id="HAAE4A9E18EFF438482267BD02A6AA28C"><enum>(2)</enum><text>establish a process for the timely and accurate remittance of fees collected under such section through an electronic method.</text></paragraph></subsection>
<subsection id="H9D52481E7245494EAE95E4826B6CA415"><enum>(d)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this Act, the Administrator shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on the status of the implementation of section 180 of title 23, United States Code (as added by this Act).</text></subsection> <subsection id="H4385749DF9BE4EE5AA6B958259A72A48"><enum>(e)</enum><header>Clerical amendment</header><text>The analysis for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">chapter 1</external-xref> of title 23, United States Code, is amended by adding at the end the following:</text>
<quoted-block style="USC" display-inline="no-display-inline" id="H276AD56D504A4C03B9F684C0C7100CD4">
<toc regeneration="no-regeneration">
<toc-entry level="section">180. Registration fee on motor vehicles.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="HAB0D81250BB6493BB1DAC4139F8CDA21"><enum>100004.</enum><header>Deposit of registration fee on motor vehicles</header><text display-inline="no-display-inline">Any amounts accrued pursuant to section 180 of title 23, United States Code (as added by this Act), shall be deposited into the Highway Trust Fund. </text></section> <section id="H1E6BEEF5B1C3482CBF4AFFE87AD7E085" section-type="subsequent-section"><enum>100005.</enum><header>Motor carrier data</header> <subsection id="H967A43ABD8514E5EAF5FAA0BF7D72967"><enum>(a)</enum><header>Public confirmation of authorized motor carriers</header><text display-inline="yes-display-inline">There is appropriated $5,000,000 to the Administrator of the Federal Motor Carrier Safety Administration to establish a public website to present data on motor carriers, as such term is defined in section 13102 of title 49, United States Code, in a manner that indicates whether each motor carrier meets or does not meet all Administration operating requirements, including by displaying 1 of the following statements for each motor carrier: </text>
<paragraph id="H68C5E1C4D20A4B1A99B6FAF600B16439"><enum>(1)</enum><text><quote>This motor carrier meets Federal Motor Carrier Safety Administration operating requirements and is authorized to operate on the nation’s roadways.</quote>.</text></paragraph> <paragraph id="H391BD68D92CE411283F27D47CE28D524"><enum>(2)</enum><text><quote>This motor carrier does not meet Federal Motor Carrier Safety Administration operating requirements and is not authorized to operate on the nation’s roadways.</quote>.</text></paragraph></subsection>
<subsection id="H481D71AFF2804475965F47682BBC5248"><enum>(b)</enum><header>Usage fee</header><text display-inline="yes-display-inline">The Administrator shall assess an annual fee of $100 on each person seeking access to the website established under subsection (a). In each fiscal year through fiscal year 2033, monies collected under this subsection shall be—</text> <paragraph id="H41A648FEF0394397A007E832B5D9E0BD"><enum>(1)</enum><text>credited to the account in the Treasury from which the Administrator incurs expenses for establishing, maintaining, and updating the website required to be established under subsection (a); and</text></paragraph>
<paragraph id="HE682B07DC37746D7A3669E7EE33622CF"><enum>(2)</enum><text>available for establishing, maintaining, and updating such website without further appropriation.</text></paragraph></subsection> <subsection id="H7274853B32D94C30BE8173FFC933513F"><enum>(c)</enum><header>Determination</header><text>A broker, freight forwarder, or household goods freight forwarder, as such terms are defined in section 13102 of title 49, United States Code, that uses the website established under subsection (a) to ensure that a motor carrier engaged by such broker, freight forwarder, or household goods freight forwarder meets Federal Motor Carrier Safety Administration operating requirements shall be considered to have taken reasonable and prudent determinations in engaging such motor carrier.</text></subsection></section>
<section id="H46966C1DA17A4FCAB5148DDAE3BCF2D0"><enum>100006.</enum><header>IRA rescissions</header>
<subsection id="HA5044494CF4142D08042E8990837EABE"><enum>(a)</enum><header>Repeal of funding for alternative fuel and low-emission aviation technology program</header><text>The unobligated balances of amounts made available to carry out section 40007 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/49/44504">49 U.S.C. 44504</external-xref> note) (as in effect on the day before the date of enactment of this Act) are permanently rescinded.</text></subsection> <subsection id="HF1ACF321AE38427AA892E3F92F331CD5"><enum>(b)</enum><header>Repeal of funding for neighborhood access and equity grant program</header><text>The unobligated balances of amounts made available to carry out section 177 of title 23, United States Code, (as in effect on the day before the date of enactment of this Act) are permanently rescinded.</text></subsection>
<subsection id="HB69903E72ABC49F1BE2F628A38C89A10"><enum>(c)</enum><header>Repeal of funding for Federal building assistance</header><text>The unobligated balances of amounts made available to carry out section 60502 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (136 Stat. 2083) (as in effect on the day before the date of enactment of this Act) are permanently rescinded.</text></subsection> <subsection id="H99D0E826D61D4E84B5F187A5DC933A65"><enum>(d)</enum><header>Repeal of funding for use of low-carbon materials for Federal building assistance</header><text> The unobligated balances of amounts made available to carry out section 60503 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (136 Stat. 2083) (as in effect on the day before the date of enactment of this Act) are permanently rescinded.</text></subsection>
<subsection id="HC4F2DDC85AF04607A495D617C0E19E62"><enum>(e)</enum><header>Repeal of funding for General Services Administration emerging technologies</header><text>The unobligated balances of amounts made available to carry out section 60504 of <external-xref legal-doc="public-law" parsable-cite="pl/117/169">Public Law 117–169</external-xref> (136 Stat. 2083) (as in effect on the day before the date of enactment of this Act) are permanently rescinded.</text></subsection> <subsection id="HA0CE54780C1D44E0AF197BCB22FF9E0F"><enum>(f)</enum><header>Repeal of environmental review implementation funds</header><text>The unobligated balances of amounts made available to carry out section 178 of title 23, United States Code, (as in effect on the day before the date of enactment of this Act) are permanently rescinded.</text></subsection>
<subsection id="HBB3A31B3C119420C8667B34FA1E1CDAA"><enum>(g)</enum><header>Repeal of funding for low-carbon transportation materials grants</header><text> The unobligated balances of amounts made available to carry out section 179 of title 23, United States Code, (as in effect on the day before the date of enactment of this Act) are permanently rescinded.</text></subsection></section> <section id="H412446418FE04CABA7E5A9EBD104E011" section-type="subsequent-section"><enum>100007.</enum><header>Air traffic control staffing and modernization</header> <subsection id="H2B3B22A59DBC4D34A728EEF352581763"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For the purpose of the acquisition, construction, sustainment, improvement, and operation of facilities and equipment necessary to improve or maintain aviation safety, and for personnel expenses related to such facilities and equipment, in addition to amounts otherwise made available, there is appropriated to the Administrator of the Federal Aviation Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—</text>
<paragraph id="H5920326EE0644FF2B5F91E32B4704050"><enum>(1)</enum><text>$2,160,000,000 for air traffic control tower and terminal radar approach control facility replacement, of which not less than $240,000,000 shall be available for Contract Tower Program air traffic control tower replacement and airport sponsor-owned air traffic control tower replacement; </text></paragraph> <paragraph id="HE563E74227CF4E7CB8936DF199B82687"><enum>(2)</enum><text>$3,000,000,000 for radar systems replacement;</text></paragraph>
<paragraph id="H1D209B89FF4F4144AC232963EDA1EF92"><enum>(3)</enum><text>$4,750,000,000 for telecommunications infrastructure and systems replacement;</text></paragraph> <paragraph id="H2FBA4526662647BFA8C83E164C6CA2DF"><enum>(4)</enum><text>$500,000,000 for runway safety projects, airport surface surveillance projects, and to carry out section 347 of the FAA Reauthorization Act of 2024;</text></paragraph>
<paragraph id="H81737AD5D6134061929D089C4585053B"><enum>(5)</enum><text>$550,000,000 for unstaffed infrastructure sustainment and replacement;</text></paragraph> <paragraph id="H71AEC8D33E524495AFE187939BE8B9B0"><enum>(6)</enum><text>$300,000,000 to carry out section 619 of the FAA Reauthorization Act of 2024;</text></paragraph>
<paragraph id="H0C488DA6AEFD425DA5C1A228C633747E"><enum>(7)</enum><text>$260,000,000 to carry out section 44745 of title 49, United States Code; and</text></paragraph> <paragraph id="H0D077FA04D474C92BB4D392D68755D47"><enum>(8)</enum><text>$1,000,000,000 for air traffic controller recruitment, retention, training, and advanced training technologies.</text></paragraph></subsection>
<subsection id="H73CD0E46C63A4AFBB43E1E4C8B79E27D"><enum>(b)</enum><header>Quarterly reporting</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this Act, and every 90 days thereafter, the Administrator shall submit to Congress a report that describes any expenditures under this section.</text></subsection></section> <section id="H996D94DC2A0E4114BE2E7CA7A0FD0AA1"><enum>100008.</enum><header>John F. Kennedy Center for the Performing Arts</header> <subsection commented="no" display-inline="no-display-inline" id="H9132534BF76F4BBBAB42B6CD4D253999"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $256,657,000, to remain available until September 30, 2029, for necessary expenses for capital repair, restoration, maintenance backlog, and security structures of the building and site of the John F. Kennedy Center for the Performing Arts.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFD259D62704E438CB6FE2D29FFCC8D40"><enum>(b)</enum><header>Administrative costs</header><text display-inline="yes-display-inline">Of the amounts made available under subsection (a), not more than 3 percent may be used for administrative costs necessary to carry out this section.</text></subsection></section> <enum>XI</enum><header>Committee on Ways and Means, <quote>The One, Big, Beautiful Bill</quote></header> <section id="H1563AA2C18BF4977A74D4229FBFF58A2"><enum>110000.</enum><header>References to the Internal Revenue Code of 1986, etc</header> <subsection id="H701E04B4B96E47159EFA0E4AD0650493"><enum>(a)</enum><header>References</header><text display-inline="yes-display-inline">Except as otherwise expressly provided, whenever in this title, an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.</text></subsection>
<subsection id="H711D8119E6CE4D908272FA085935956D"><enum>(b)</enum><header>Certain rules regarding effect of rate changes not applicable</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/15">Section 15</external-xref> of the Internal Revenue Code of 1986 shall not apply to any change in rate of tax by reason of any provision of, or amendment made by, this title.</text></subsection></section> <subtitle id="H298366EE34AF49CCA72C3F619F56BE1C"><enum>A</enum><header>Make American Families and Workers Thrive Again</header> <part id="H0F216FE3FEB546E8B25B652AF8F069C5"><enum>1</enum><header>Permanently Preventing Tax Hikes on American Families and Workers</header> <section id="HA8F7D9B0C7344B32B0DD35576A45A1C7"><enum>110001.</enum><header>Extension of modification of rates</header> <subsection id="HC8DD964B36FA4B62B6099D62642D01B3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1">Section 1(j)</external-xref> is amended—</text>
<paragraph id="H54DE1CC57C004B81BA86C524DF133BA2"><enum>(1)</enum><text>in paragraph (1), by striking <quote>, and before January 1, 2026</quote>, and</text></paragraph> <paragraph id="HF488AAAF9F0A49E48EA274E97620E1B5"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection>
<subsection id="HBC85BDEB98404910BDAB7EDE2A04407F"><enum>(b)</enum><header>Inflation adjustment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1">Section 1(j)(3)(B)(i)</external-xref> is amended by inserting <quote>in the case of any taxable year beginning after December 31, 2025, solely for purposes of determining the dollar amounts at which the 35-percent rate bracket ends and the 37-percent rate bracket begins,</quote> before <quote>subsection (f)(3)</quote>.</text></subsection> <subsection id="H6C0770BA099A42909680C8640A066497"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="HC36B3A16E9474BEF8AE59365920022F1"><enum>110002.</enum><header>Extension of increased standard deduction and temporary enhancement</header>
<subsection id="HAB03024CDF794ADC9CE52EA261DEFB8F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/63">Section 63(c)(7)</external-xref> is amended—</text> <paragraph id="H69658D1BD3A64DCC868FF8C7EB67263C"><enum>(1)</enum><text>by striking <quote>, and before January 1, 2026</quote> in the matter preceding subparagraph (A), and</text></paragraph>
<paragraph id="H28ED4842157F42BCB96C12DEF27D4CED"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection> <subsection id="H8EDF01645E43424B9596E3F1EC2A4382"><enum>(b)</enum><header>Temporary additional increase in standard deduction</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/63">Section 63(c)(7)</external-xref> is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="HD20FA8E5A02B482B94593A2889FC07C4" display-inline="no-display-inline">
<subparagraph id="H369841EEED2842FAA84A21BAAAB826FC"><enum>(C)</enum><header>Temporary additional increase in standard deduction</header><text display-inline="yes-display-inline">In the case of any taxable year beginning after December 31, 2024, and before January 1, 2029—</text> <clause id="HEDC5809C3B7B4EFAA8CCD87450CD4584"><enum>(i)</enum><text>the dollar amount otherwise in effect under paragraph (2)(B) shall be increased by $1,500, and</text></clause>
<clause id="HC9EF911C8466496699DC864BD643303A"><enum>(ii)</enum><text>the dollar amount otherwise in effect under paragraph (2)(C) shall be increased by $1,000.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H01AD0C154083438681ACD02880C01729" display-inline="no-display-inline"><enum>(c)</enum><header>Recalculation of inflation adjustment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/63">Section 63(c)(7)(B)(ii)(II)</external-xref> is amended by striking <quote>, determined by substituting <quote>2017</quote> for <quote>2016</quote> in subparagraph (A)(ii) thereof</quote>.</text></subsection>
<subsection id="H58B8D407C4D6484196A369EB3F4D9300"><enum>(d)</enum><header>Effective date</header>
<paragraph id="H32DD2AC63C51450CA88C4D9079E7DF45"><enum>(1)</enum><header>In general</header><text>The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2025.</text></paragraph> <paragraph id="H55F6B3D60AA049DFAEB24C8FCDB649EE"><enum>(2)</enum><header>Temporary additional increase in standard deduction</header><text>The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 2024.</text></paragraph></subsection></section>
<section id="HDE369DE3FCB149899F2E77CF110F380E"><enum>110003.</enum><header>Termination of deduction for personal exemptions</header>
<subsection id="HD7F80F6633D24A8FBC6B6B5E4C806D9D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/151">Section 151(d)(5)</external-xref> is amended—</text> <paragraph id="HDC07AF14A7D149CB9E385FD5EA6A30B2"><enum>(1)</enum><text>by striking <quote>and before January 1, 2026</quote>, and</text></paragraph>
<paragraph id="H3529D4E1CD3C4B1B89F2D750ABF28A0C"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection> <subsection id="HDA56A2457CB14CE3ABAD6565AB2F20A4"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="H8030E45E32FC4223AF58967D05F56E89" section-type="subsequent-section" commented="no"><enum>110004.</enum><header>Extension of increased child tax credit and temporary enhancement</header>
<subsection id="HB661162A99EF4461960C6CD388DBA6F2" commented="no"><enum>(a)</enum><header>Extension of expanded child tax credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(h)</external-xref> is amended—</text> <paragraph id="H2F46059F7ABC49549CD3B3EBA84D63C5"><enum>(1)</enum><text>in paragraph (1), by striking <quote>and before January 1, 2026,</quote>, and</text></paragraph>
<paragraph id="H05FA936E23F1464D8AA67264E059210E"><enum>(2)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection> <subsection id="H777D71FF52EE499E9E7EC46223F10DFC" commented="no"><enum>(b)</enum><header>Increase in child tax credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(h)(2)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H4522729E398B4A7B9B1066F4C00651C5" display-inline="no-display-inline">
<paragraph id="H17D8447A3FAB49A1B3EBF54C152CF59A" commented="no"><enum>(2)</enum><header>Credit amount</header><text display-inline="yes-display-inline">Subsection (a) shall be applied by substituting—</text> <subparagraph id="H0FFD3031A5074931AB1C1CB97512CECF" commented="no"><enum>(A)</enum><text>in the case of taxable years beginning after December 31, 2024, and before December 31, 2028, <quote>$2,500</quote> for <quote>$1,000</quote>, or</text></subparagraph>
<subparagraph id="HAA393CD607F34F25AF3B7C2394505CCB" commented="no"><enum>(B)</enum><text>in the case of any subsequent taxable year, <quote>$2,000</quote> for <quote>$1,000</quote>. </text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H82FD452F73A54D53A8C3551CB0D1F792" commented="no"><enum>(c)</enum><header>Social security number required</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(h)(7)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H1839D9EFB0714696952762CB69ADE07F" display-inline="no-display-inline">
<paragraph id="H3600D56B91CA44078670D8FE9DB02940" commented="no"><enum>(7)</enum><header>Social security number required</header>
<subparagraph id="H2AC275C038444B379F2A5D4E9FD64A1D" commented="no"><enum>(A)</enum><header>In general</header><text>No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes on the return of tax for the taxable year—</text> <clause id="H5DC1A4A32BBC4019883D6B79E626F197" commented="no"><enum>(i)</enum><text>such individual’s social security number,</text></clause>
<clause id="HA463A06DA7064892A651F303EFC08994" commented="no"><enum>(ii)</enum><text>the social security number of such qualifying child, and</text></clause> <clause id="H8DABC546F34C4D279CE567819A07D8AE" commented="no"><enum>(iii)</enum><text>if the individual is married, the social security number of such individual’s spouse.</text></clause></subparagraph>
<subparagraph id="HCFB2F080C7DC4E3BA7BB8D28F2148B46" commented="no"><enum>(B)</enum><header>Social security number</header><text>For purposes of this paragraph, the term <quote>social security number</quote> means a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued— </text> <clause id="HF829AF8FF5D847FC9411A83F518583BC" commented="no"><enum>(i)</enum><text>to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and</text></clause>
<clause id="HC7EC279AA2EE4C73AA8DE0157456AC98" commented="no"><enum>(ii)</enum><text>before the due date for such return.</text></clause></subparagraph> <subparagraph id="H041C7368D2824096B5C53C3E00F73277" commented="no"><enum>(C)</enum><header>Married individuals</header><text>Rules similar to the rules of section 32(d) shall apply to this section.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HBD334B8318A64FBF9320C5C4F25CD71C" commented="no"><enum>(d)</enum><header>Inflation adjustments</header>
<paragraph id="HD4A3A94757844596916DCCE9D9967C8D"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(i)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="HB06FCB1A5ABD46D4ACB27A7B8C53707A" display-inline="no-display-inline"> <subsection id="H8D8F7FC86AE247F89DB5FA027723B63C" commented="no"><enum>(i)</enum><header>Inflation adjustments</header> <paragraph id="H8BDB008A14E54D1CBCA633864CACCF99" commented="no"><enum>(1)</enum><header>Maximum amount of refundable credit</header><text display-inline="yes-display-inline">In the case of a taxable year beginning after 2024, the $1,400 amount in subsection (h)(5) shall be increased by an amount equal to—</text>
<subparagraph id="HBABE08A6A2424C9AA1ABB199004815A6" commented="no"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph> <subparagraph id="H8772578DB89842B48C34A715B0103F9D" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>2017</quote> for <quote>2016</quote> in subparagraph (A)(ii) thereof. </text></subparagraph></paragraph>
<paragraph id="HE398CA2BEC1C458F837127D96CEF828B" commented="no"><enum>(2)</enum><header>Special rule for adjustment of credit amount</header><text display-inline="yes-display-inline">In the case of a taxable year beginning after 2028, the $2,000 amount in subsection (h)(2)(B), shall be increased by an amount equal to—</text> <subparagraph id="HC9B77C261B0E4CFE86E7AE110E890511" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph>
<subparagraph id="HA654C7C75EF747A89D3262F77A7D892F" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>2024</quote> for <quote>2016</quote> in subparagraph (A)(ii) thereof. </text></subparagraph></paragraph> <paragraph id="H1328EB49026149DB9CEBCF6B6FFB99BC" commented="no"><enum>(3)</enum><header>Rounding</header><text>If any increase under this subsection is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H15BCD73FDAB9477EA677322D0DA42A0F" commented="no"><enum>(e)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(h)(5)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="H18C833D023854D6683CACADB814EEDB1" display-inline="no-display-inline"> <paragraph id="H7FBF0B6F7A9B46FE81B35E8E021E10D3"><enum>(5)</enum><header>Maximum amount of refundable credit</header><text display-inline="yes-display-inline">The amount determined under subsection (d)(1)(A) with respect to any qualifying child shall not exceed $1,400, and such subsection shall be applied without regard to paragraph (4) of this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HADF822AEE9BF42E3AD60A13B4FA52836"><enum>(f)</enum><header>Treatment of certain benefits of members of religious and apostolic associations as earned income</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(d)(1)</external-xref> is amended by adding at the end the following: <quote>For purposes of subparagraph (B), any amount treated as a dividend received under the last sentence of section 501(d) shall be treated as earned income which is taken into account in computing taxable income for the taxable year. </quote>.</text></subsection> <subsection id="H3BA675D73DF645E783DB6FA965241DA8" display-inline="no-display-inline"><enum>(g)</enum><header>Omission of correct social security number treated as mathematical or clerical error</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6213">Section 6213(g)(2)(I)</external-xref> is amended by striking <quote>section 24(e)</quote> and inserting <quote>section 24</quote>. </text></subsection>
<subsection id="H6F171E438B23453389D10AD8BD5A9C6F" commented="no"><enum>(h)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section> <section id="H4E25F3A02A804ABE94FFE702B2E289CD" section-type="subsequent-section"><enum>110005.</enum><header>Extension of deduction for qualified business income and permanent enhancement</header> <subsection id="H492552DEFDA343B5BC9FF1BA399F5409"><enum>(a)</enum><header>Made permanent</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/199A">Section 199A</external-xref> is amended by striking subsection (i).</text></subsection>
<subsection id="H3B9CEBA07A51417D8C5D953936E6342A"><enum>(b)</enum><header>Increase in deduction</header><text>Subsections (a)(2), (b)(1)(B), and (b)(2)(A) of section 199A are each amended by striking <quote>20 percent</quote> and inserting <quote>23 percent</quote>. </text></subsection> <subsection id="H3BBD5932F71A41278D4FB035A9C7C1C4"><enum>(c)</enum><header>Modification of limitations based on taxable income</header> <paragraph id="HBE1A73569CAA49468E6773B276BB5D43"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/199A">Section 199A(b)(3)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H0B045033FB214DFEA5CC0128F4CD01F5" display-inline="no-display-inline">
<paragraph id="HA311CE122C62460AA404F9CF07725BE7"><enum>(3)</enum><header>Modification of determination of combined qualified business income amount based on taxable income</header>
<subparagraph id="HB56A6057EC0A4F5C8370FB50721B3A92"><enum>(A)</enum><header>Exception from limitations</header><text display-inline="yes-display-inline">In the case of any taxpayer whose taxable income for the taxable year does not exceed the threshold amount—</text> <clause id="HB926C9FD268E47B08B60B2D948EB64DA"><enum>(i)</enum><text>paragraph (2) shall be applied without regard to subparagraph (B), and</text></clause>
<clause id="H1CDE8FFA8D764379B1679E502C7E3D1E"><enum>(ii)</enum><text>a specified service trade or business shall not fail to be treated as a qualified trade or business solely by reason of subsection (d)(1)(A).</text></clause></subparagraph> <subparagraph id="H5F60C5A6E7494EAC9B5A5C5B4715AF64" display-inline="no-display-inline" commented="no"><enum>(B)</enum><header>Phase-in of limitations</header><text>In the case of any taxpayer whose taxable income for the taxable year exceeds the threshold amount, the sum described in paragraph (1)(A) (determined without regard to this subparagraph) shall instead be an amount (if greater) equal to the excess (if any) of—</text>
<clause id="H57433B98476B42D4A9D34179F4309DB9" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the sum described in paragraph (1)(A) (determined by applying the rules of clauses (i) and (ii) of subparagraph (A)), over</text></clause> <clause id="H914C6F82F49946C296D35A6F51D9ABB0" commented="no"><enum>(ii)</enum><text>the limitation phase-in amount.</text></clause></subparagraph>
<subparagraph id="H68D4EAE322B84AA89772D66F4CDB4AC1"><enum>(C)</enum><header>Limitation phase-in amount</header><text>For purposes of subparagraph (B), the limitation phase-in amount shall be an amount equal to 75 percent of the excess (if any) of—</text> <clause id="HD15A4B95CCA44C1EAF20907989BB39C4"><enum>(i)</enum><text>the taxable income of the taxpayer for the taxable year, over</text></clause>
<clause id="H5A35B94411BA4E2FADC7B70CDF79A56B"><enum>(ii)</enum><text>the threshold amount.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H174EB73522864EF58B4F947D047F30E2" commented="no"><enum>(2)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/199A">Section 199A(d)</external-xref> is amended by striking paragraph (3).</text></paragraph></subsection>
<subsection id="H12056B7C406E46F9B0F0F90C9D8214E7"><enum>(d)</enum><header>Deduction for qualified business income to apply to certain interest dividends of qualified business development companies</header>
<paragraph id="HBC29BF5FE3B14DA0A0399381AE5F661E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subsections (b)(1)(B) and (c)(1) of section 199A are each amended by inserting <quote>, qualified BDC interest dividends,</quote> after <quote>qualified REIT dividends</quote>.</text></paragraph> <paragraph id="H276CAACBEB1B4E7F87BB564EEF13AEB5"><enum>(2)</enum><header>Qualified BDC interest dividend defined</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/199A">Section 199A(e)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H8BC30F138B514478BD2CC60FC65CCC8D">
<paragraph id="H4258C8A0B07343F1AD5A5C1B97807830"><enum>(5)</enum><header>Qualified BDC interest dividend</header>
<subparagraph id="HF6EC9EC56B534F44B4F4E38897E18329"><enum>(A)</enum><header>In general</header><text>The term <term>qualified BDC interest dividend</term> means any dividend from an electing business development company received during the taxable year which is attributable to net interest income of such company which is properly allocable to a qualified trade or business of such company. </text></subparagraph> <subparagraph id="H75CE16AEFCBC44F8AF95629166C268A4"><enum>(B)</enum><header>Electing business development company</header><text>For purposes of this paragraph, the term <term>electing business development company</term> means a business development company (as defined in section 2(a) of the Investment Company Act of 1940) which has an election in effect under section 851 to be treated as a regulated investment company. </text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HF338C2018DF54C6A9EC0836919A1ACF4"><enum>(e)</enum><header>Modified inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/199A">Section 199A(e)(2)(B)</external-xref> is amended—</text> <paragraph id="H09FAB3E9B8BB4B9AB4E4088A7158FDA2"><enum>(1)</enum><text>by striking <quote>2018</quote> and inserting <quote>2025</quote>, and</text></paragraph>
<paragraph id="H94CD6A5624304A4BA7659118EFE30366"><enum>(2)</enum><text display-inline="yes-display-inline">in clause (ii), by striking <quote>, determined by substituting <quote>calendar year 2017</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof</quote>.</text></paragraph></subsection> <subsection id="H643071AF24194623AB528F97EC65A580" display-inline="no-display-inline"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="H69A1D578800047F58DD503824D5D446A" commented="no"><enum>110006.</enum><header>Extension of increased estate and gift tax exemption amounts and permanent enhancement</header>
<subsection id="HED02D3D5BD3F4FE383AF316321A904EF" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/2010">Section 2010(c)(3)</external-xref> is amended—</text> <paragraph id="HD618FBE4A55A4171A443FEFDCD1459F5"><enum>(1)</enum><text>in subparagraph (A) by striking <quote>$5,000,000</quote> and inserting <quote>$15,000,000</quote>,</text></paragraph>
<paragraph id="H76289CC893444569B3F2E553C7BD55EF"><enum>(2)</enum><text>in subparagraph (B)—</text> <subparagraph id="H58602EDE8044473A807C10D0AF8B44CE"><enum>(A)</enum><text>in the matter preceding clause (i), by striking <quote>2011</quote> and inserting <quote>2026</quote>, and</text></subparagraph>
<subparagraph id="H3068F0F4958F458DB832A17F746B753D"><enum>(B)</enum><text>in clause (ii), by striking <quote>calendar year 2010</quote> and inserting <quote>calendar year 2025</quote>, and</text></subparagraph></paragraph> <paragraph id="HBBE69ED16483406A883AFE03503B0235"><enum>(3)</enum><text>by striking subparagraph (C).</text></paragraph></subsection>
<subsection id="H7F1E2CEDECC24A7FA6E88D35C8EE3E6D" commented="no"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="H7217A822E8BF46948F61093B3EAC0580" commented="no"><enum>110007.</enum><header>Extension of increased alternative minimum tax exemption and phase-out thresholds</header> <subsection id="H57AEFA9C0A144201AB699A35DDE7FBD3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(d)(4)</external-xref> is amended—</text>
<paragraph id="H351734C6EC384BB7ADF92BA88972F7CB"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>, and before January 1, 2026</quote>, and</text></paragraph> <paragraph id="H7EC59A4368F44194AE462E3D7D498F71"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">and before 2026</header-in-text></quote> in the heading.</text></paragraph></subsection>
<subsection id="HD7BA753B203344099A26D3A2D4ECDCA2" display-inline="no-display-inline"><enum>(b)</enum><header>Modification of inflation adjustment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(d)(4)(B)</external-xref> is amended—</text> <paragraph id="H284982E29394465EA07F80567B8FF0E4"><enum>(1)</enum><text>by striking <quote>2018</quote> in clause (i) and inserting <quote>2026</quote>, and</text></paragraph>
<paragraph id="H858EDCE2B1BF4EE8BB172F32001B9DE1"><enum>(2)</enum><text>by striking <quote>2017</quote> in clause (i)(II) and inserting <quote>2025</quote>. </text></paragraph></subsection> <subsection id="HE00B2BA3BA2F417B832793765DF7D291"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="H1FA0FFE5D0F34628BDBEA500D14FEBD7"><enum>110008.</enum><header>Extension of limitation on deduction for qualified residence interest</header>
<subsection id="H251C80960E654348820E574CFC51E61B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/163">Section 163(h)(3)(F)</external-xref> is amended—</text> <paragraph id="HB46705E1F97441E6A3C1976AF9EC2D89"><enum>(1)</enum><text>in clause (i), by striking <quote>, and before January 1, 2026</quote>, </text></paragraph>
<paragraph id="HF3FE5C930AB34275B803EF6B56DA5E5A"><enum>(2)</enum><text>by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and</text></paragraph> <paragraph id="H24407764C7DB4BF1B3B530BFD8121ADA"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection>
<subsection id="H55FFFFFA386A41FD9D2E12BFC93EE19D" display-inline="no-display-inline"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="HE75D9CE5F4E54D0989A9B8DA26CDA6D4"><enum>110009.</enum><header>Extension of limitation on casualty loss deduction</header> <subsection id="H09FC27A04DEA4D76A7EA23BCC6C58300"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/165">Section 165(h)(5)</external-xref> is amended—</text>
<paragraph id="H13BB656FD503448499E077E79C1AADCF"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>and before January 1, 2026,</quote>, and</text></paragraph> <paragraph id="H1CFD3110BD6544BAAF6055FF9BBD9CB3"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection>
<subsection id="H8A6E2A9398DC4438B8AD89D9EEDE2B33" display-inline="no-display-inline"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="H957ACDFAEBA045F3AFEF6FA61B960781"><enum>110010.</enum><header>Termination of miscellaneous itemized deduction</header> <subsection id="H7A410D5E8BC44B20A3707D57407E521D"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/67">Section 67(g)</external-xref> is amended—</text>
<paragraph id="HC9EC30081D3044ED84535A3493EEB33C"><enum>(1)</enum><text>by striking <quote>, and before January 1, 2026</quote>, and</text></paragraph> <paragraph id="H3BD578FDB9AB488880D9C4D8E19C32BA"><enum>(2)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection>
<subsection id="H8DB4D99AB59145E79C153A3650DE57E9"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="H9C196D0F0BF04A8EAC50EC4E1C76705E"><enum>110011.</enum><header>Limitation on tax benefit of itemized deductions</header> <subsection id="HBF84C2C9FCBC456CB3FA2DB269ED177F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/68">Section 68</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H24CA40602B384288980318CCB45C1353" display-inline="no-display-inline">
<subsection id="HA7367F23D72449F7907F257A7372DAFB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an individual, the amount of the taxpayer’s itemized deductions shall be reduced by the sum of—</text> <paragraph id="H78B40AE12A6D487EA8D720C95490BB50"><enum>(1)</enum><text><fraction>5/37</fraction> of the lesser of—</text>
<subparagraph id="H8E1E5397DB3C4069B5F87458FFE9335A"><enum>(A)</enum><text>the amount of the deduction allowable to the taxpayer under section 164 for such taxable year (determined without regard to this section), or</text></subparagraph> <subparagraph id="HBEC2A91BDB6544659D98371109A7E194"><enum>(B)</enum><text>the excess (if any) of—</text>
<clause id="HB45C0E0A7E33450D897C2A0C97D2490A"><enum>(i)</enum><text>the taxpayer’s taxable income for such taxable year (determined without regard to this section and increased by the amount of the taxpayer’s itemized deductions), over</text></clause> <clause id="H2C53894E218D4C92A6D9BD6D9B2113D0"><enum>(ii)</enum><text>the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer, plus</text></clause></subparagraph></paragraph>
<paragraph id="H58B1337611434FCB8A64E3CCE85411B9"><enum>(2)</enum><text><fraction>2/37</fraction> of the lesser of—</text> <subparagraph id="H3D038FC14B074AAA9F62A3D761568E25"><enum>(A)</enum><text>so much (if any) of the taxpayer’s itemized deductions as exceed the amount described in paragraph (1)(A), or</text></subparagraph>
<subparagraph id="HC3C21FADA9AF4004AF82B5E56F18E9A2"><enum>(B)</enum><text>the excess (if any) of—</text> <clause id="H9296DFC172EB4F6F89E1AB735C94434D"><enum>(i)</enum><text>the amount described in subparagraph (1)(B)(i), over</text></clause>
<clause id="HB16AC7CE01514AE182D9AF779F5C41DA"><enum>(ii)</enum><text>the sum of the amounts described in paragraphs (1)(A) and (1)(B)(ii).</text></clause></subparagraph></paragraph></subsection> <subsection id="HF6FEC20BD8B74F4AA72E182CB3DECAFA"><enum>(b)</enum><header>Itemized deductions</header><text>For purposes of subsection (a), any reference to the taxpayer’s itemized deductions shall be treated as reference to such deductions determined without regard to this section.</text></subsection>
<subsection id="H818633A6E6ED4F7092599643CCF2D32C"><enum>(c)</enum><header>Coordination with other limitations</header><text>This section shall be applied after the application of any other limitation on the allowance of any itemized deduction.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6D09A37FBCF94A1BA0DC89619D11B4C6"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="HDB385CC3041A46CB8E89713E92C54521"><enum>110012.</enum><header>Termination of qualified bicycle commuting reimbursement exclusion</header>
<subsection id="H2D21B376F1D4416986AF7384F44B5F47"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/132">Section 132(f)(8)</external-xref> is amended by striking <quote>, and before January 1, 2026</quote>.</text></subsection> <subsection id="H897DC269FA134ACEA2FF192E33C167BC" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="H61C384E7B53D4D69967B553D7E95B6AB"><enum>110013.</enum><header>Extension of limitation on exclusion and deduction for moving expenses</header>
<subsection id="H7C0F798FAE934EC99BA256D425D0A4CC"><enum>(a)</enum><header>Termination of deduction</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/217">Section 217(k)</external-xref> is amended—</text> <paragraph id="H1503AA78A32C45C8927AE9B042B26C91"><enum>(1)</enum><text>by striking <quote>, and before January 1, 2026</quote>, and</text></paragraph>
<paragraph id="H55A4872AAF1E4FA3BFCBAE5E3BCF125F"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection> <subsection id="H3FB5387AACB0462E8DF693A3EB3D51F8" commented="no"><enum>(b)</enum><header>Termination of reimbursement</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/132">Section 132(g)(2)</external-xref> is amended—</text>
<paragraph id="H1DCAAFD3DD7C476BA48F72AC955A499D" commented="no"><enum>(1)</enum><text>by striking <quote>, and before January 1, 2026</quote>, and </text></paragraph> <paragraph id="H3630B58A4C3C45FD867F209BF6BBD0FB" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">2018 through 2025</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">beginning after 2017</header-in-text></quote>.</text></paragraph></subsection>
<subsection id="H67C136B734FB4FEA9C69EBFA7DB25547"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="HB47BB3B381414F98978188250FF6D427"><enum>110014.</enum><header>Extension of limitation on wagering losses</header> <subsection id="H66669F75D9E34A80B99185C00268A54E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/165">Section 165(d)</external-xref> is amended by striking <quote>and before January 1, 2026,</quote>. </text></subsection>
<subsection id="H676D355D412742F0949586B5660FE966" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="H6BAEEBE462D24F9E933288EFDAA99FEC" display-inline="no-display-inline"><enum>110015.</enum><header>Extension of increased limitation on contributions to ABLE accounts and permanent enhancement</header> <subsection id="H552DBE8871D8467A8879E1A989AE288F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/529A">Section 529A(b)(2)(B)</external-xref> is amended—</text>
<paragraph id="HBD75CFB3C37647268A34E373DC50172E"><enum>(1)</enum><text>in clause (i), by inserting <quote>(determined by substituting <quote>1996</quote> for <quote>1997</quote> in paragraph (2)(B) thereof)</quote> after <quote>section 2503(b)</quote>, and</text></paragraph> <paragraph id="H4DC7FB4AFAD442D4AFE8A31C65567780"><enum>(2)</enum><text>in clause (ii), by striking <quote>before January 1, 2026</quote>.</text></paragraph></subsection>
<subsection id="H458D9E62254F4A619BE70A8B85E6CA91"><enum>(b)</enum><header>Effective date</header>
<paragraph id="HE67FC0F7FC0A4CAFA45F5F88ED364ABC"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after December 31, 2025.</text></paragraph> <paragraph id="HB82B6ECC7BFE4314BDF84B8799B6FFE6"><enum>(2)</enum><header>Modified inflation adjustment</header><text>The amendment made by subsection (a)(1) shall apply to taxable years beginning after December 31, 2025.</text></paragraph></subsection></section>
<section id="H114FBC194F214F458402FBB827C42781"><enum>110016.</enum><header>Extension of savers credit allowed for ABLE contributions</header>
<subsection id="H194E66AAD1AF4D2C93541FECDCAF4895"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25B">Section 25B(d)(1)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="HAA06296EA7734A3D8376CD952BEFF707" display-inline="no-display-inline"> <paragraph id="H9439C635B9634BADB9A708B3F25FBA6F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>qualified retirement savings contributions</quote> means, with respect to any taxable year, the sum of—</text>
<subparagraph id="H3E1B3C00C60E4603A7521AA887C8F6C7"><enum>(A)</enum><text>the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary, and</text></subparagraph> <subparagraph id="H88E49E1C18E84A85B5D8C192A0E7EADD"><enum>(B)</enum><text>in the case of any taxable year beginning before January 1, 2027—</text>
<clause id="HFCD668A8439044139A6BEC40211A95E3"><enum>(i)</enum><text>the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,</text></clause> <clause id="H175FFCFD0A51444687A1DB489B2F3115"><enum>(ii)</enum><text>the amount of—</text>
<subclause id="H8459E9B8823549CAA1A542E7FA3201BA"><enum>(I)</enum><text display-inline="yes-display-inline">any elective deferrals (as defined in section 402(g)(3)) of such individual, and</text></subclause> <subclause id="H1331A8492D074F808639FD5C5701ABF1"><enum>(II)</enum><text display-inline="yes-display-inline">any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and</text></subclause></clause>
<clause id="H20BB760C06834C448B109E539B565152"><enum>(iii)</enum><text>the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1E695227934D46A69B55356DCF67A114"><enum>(b)</enum><header>Coordination with SECURE 2.0 Act of 2022 amendment</header><text>Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted.</text></subsection>
<subsection id="H88DCEBD7972A4CE8AA73CFD95C26DFCE"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending after December 31, 2025.</text></subsection></section> <section id="H843070323C5445D6B9A3D9CC1723A5AA"><enum>110017.</enum><header>Extension of rollovers from qualified tuition programs to ABLE accounts permitted</header> <subsection id="H0F00B05EBBCD4BF1B6EEC994E721907A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/529">Section 529(c)(3)(C)(i)(III)</external-xref> is amended by striking <quote>before January 1, 2026,</quote>.</text></subsection>
<subsection id="H636443D90300426ABB8801924E47F226" display-inline="no-display-inline"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="H1051341118EC43058E23454B73D503B5" section-type="subsequent-section" commented="no"><enum>110018.</enum><header>Extension of treatment of certain individuals performing services in the Sinai Peninsula and enhancement to include additional areas</header> <subsection id="H66B059E206074895B6CE829D6BC0D1A7" commented="no"><enum>(a)</enum><header>Treatment made permanent</header><text display-inline="yes-display-inline">Section 11026(a) of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> is amended by striking <quote>with respect to the applicable period,</quote>.</text></subsection>
<subsection id="H52203B535923420BB647B01411FB6E85" commented="no"><enum>(b)</enum><header>Kenya, Mali, Burkina Faso, and Chad included as hazardous duty areas</header><text display-inline="yes-display-inline">Section 11026(b) of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="H1DB6B085799B4B83976B81801A52D93E" display-inline="no-display-inline"> <subsection id="H544CD37EC24D49E19FC0421BD5787F93" commented="no"><enum>(b)</enum><header>Qualified hazardous duty area</header><text display-inline="yes-display-inline">For purposes of this section, the term 'qualified hazardous duty area' means—</text>
<paragraph id="HF80B7A9B67064A0295E8C42A9A70A784" commented="no"><enum>(1)</enum><text>the Sinai Peninsula of Egypt, if as of December, 22, 2017, any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location, and</text></paragraph> <paragraph id="HB7696B77032842F0B1A85B924C12F91E" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">Kenya, Mali, Burkina Faso, and Chad if, as of the date of the enactment of this paragraph, any member of the Armed Forces of the United States is entitled to special pay under such section, for services performed in such location. </text></paragraph><continuation-text continuation-text-level="subsection" commented="no">Such term includes any such location only during the period such entitlement is in effect with respect to such location.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H4B70A0679F954D5180E3122E86F08A99" commented="no"><enum>(c)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 11026 of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> is amended by striking subsections (c) and (d).</text></subsection> <subsection id="H55B8EDFF85E443C88D48D398D1016EBC" commented="no"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on January 1, 2026.</text></subsection></section>
<section id="H6AFB02C9E5A7415F9706F442D24C66C3"><enum>110019.</enum><header>Extension of exclusion from gross income of student loans discharged on account of death or disability</header>
<subsection id="H91B69FA2AB254327A608975C3554D769"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/108">Section 108(f)(5)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="HA66FF9F924BB44A1AEA11FB9B5CB6515" display-inline="no-display-inline"> <paragraph id="H87C9DE97F5AF457CBFC2F9DCA3C88EC5"><enum>(5)</enum><header>Discharges on account of death or disability</header> <subparagraph id="H6A1A174C24314C9D98238A785BD59BE8"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income for such taxable year by reason of the discharge (in whole or in part) of any loan described in subparagraph (B), if such discharge was—</text>
<clause id="H5ECD7E4987F24D0691D5A6CDC27EE9EF"><enum>(i)</enum><text>pursuant to subsection (a) or (d) of section 437 of the Higher Education Act of 1965 or the parallel benefit under part D of title IV of such Act (relating to the repayment of loan liability),</text></clause> <clause id="HC5ADA9E00F544749A6B04897074582D8"><enum>(ii)</enum><text>pursuant to section 464(c)(1)(F) of such Act, or</text></clause>
<clause id="H97579D5C7B1549A0A8C50375ADAADDAD"><enum>(iii)</enum><text>otherwise discharged on account of death or total and permanent disability of the student.</text></clause></subparagraph> <subparagraph id="H04E13B801806444191A68932A8DD3CEF"><enum>(B)</enum><header>Loans discharged</header><text>A loan is described in this subparagraph if such loan is—</text>
<clause id="HE74EFFE6B2174E7F920282B397491263"><enum>(i)</enum><text>a student loan (as defined in paragraph (2)), or</text></clause> <clause id="H4CBBC631CFC74004A176B7CE63BF58E1"><enum>(ii)</enum><text>a private education loan (as defined in section 140(a) of the Consumer Credit Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(a)</external-xref>).</text></clause></subparagraph>
<subparagraph id="H5825786532E64463AD9A8ACBD877DBDB" commented="no"><enum>(C)</enum><header>Social security number requirement</header>
<clause id="H6A0C4866703C47C3ACFE7E0A8994D230"><enum>(i)</enum><header>In general</header><text>Subparagraph (A) shall not apply with respect to any discharge during any taxable year unless the taxpayer includes on the return of tax for such taxable year—</text> <subclause id="HD289E2484D234DFA9E4B0FBC66A893A2" commented="no"><enum>(I)</enum><text>the taxpayer’s social security number, and</text></subclause>
<subclause id="H48941970C6CB40DA8063B2A643CF2E94" commented="no"><enum>(II)</enum><text>if the taxpayer is married, the social security number of such taxpayers’s spouse.</text></subclause></clause> <clause id="H5B08CDF8E1AB4BBFA952F2A158365892"><enum>(ii)</enum><header>Social security number</header><text>For purposes of this subparagraph, the term <quote>social security number</quote> has the meaning given such term in section 24(h)(7).</text></clause>
<clause id="H21B36E946F854E98B9703C4A56D8EAEC" commented="no" display-inline="no-display-inline"><enum>(iii)</enum><header>Married individuals</header><text>Rules similar to the rules of section 32(d) shall apply to this subparagraph.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1E0B16C9C5C443D1901F899E9E4AED66" display-inline="no-display-inline"><enum>(b)</enum><header>Omission of correct social security number treated as mathematical or clerical error</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6213">Section 6213(g)(2)</external-xref> is amended by striking <quote>and</quote> at the end of subparagraph (U), by striking the period at the end of subparagraph (V) and inserting <quote>, and</quote>, and by inserting after subparagraph (V) the following new subparagraph:</text>
<quoted-block style="OLC" id="H71D23F107D134DBDAA2490004382E10B" display-inline="no-display-inline">
<subparagraph id="H32F39C5DD4DE449EAB9829B78AE8EAE1"><enum>(W)</enum><text display-inline="yes-display-inline">an omission of a correct social security number required under section 108(f)(5)(C) (relating to discharges on account of death or disability).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5E0359CCE8E949FFB31906C4A51E94D4"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to discharges after December 31, 2025.</text></subsection></section></part>
<part id="H5154A7A35DCE4D58B1B72345F2F90EBD"><enum>2</enum><header>Additional Tax Relief for American Families and Workers</header>
<section id="H985E04A9DC60473FAD0A91BA7F79159D"><enum>110101.</enum><header>No tax on tips</header>
<subsection id="H5A88F3D0A04D45118E96F93BD9E66B31" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>Deduction allowed</header><text display-inline="yes-display-inline">Part VII of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H410717E46DCA48DD9685D687C1187DCA"> <section commented="no" display-inline="no-display-inline" id="HDD1D0588D9204A2E995F88368FA1EFE7"><enum>224.</enum><header>Qualified tips</header> <subsection commented="no" display-inline="no-display-inline" id="H16A447CA649848E7BFC776EF3E7D5E90"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the individual pursuant to section 6041(d)(3), 6041A(e)(3), 6050W(f)(2), 6051(a)(18), or reported by the taxpayer on Form 4137 (or successor).</text></subsection>
<subsection id="HE283471F16464A14AB9BDBC9994DD91A"><enum>(b)</enum><header>Tips received in course of trade or business</header><text display-inline="yes-display-inline">In the case of qualified tips received by an individual during any taxable year in the course of any trade or business of such individual, such qualified tips shall be taken into account under subsection (a) only to the extent that the gross receipts of the taxpayer from such trade or business for such taxable year (including such qualified tips) exceeds the sum of—</text> <paragraph id="H523FEA8AAF164A1EAF97CA49DEF19C1F"><enum>(1)</enum><text>cost of goods sold that are allocable to such receipts, plus</text></paragraph>
<paragraph id="HFD37F9CD262D4B5F84BA8BE4D756FEBD"><enum>(2)</enum><text>other expenses, losses, or deductions (other than the deduction allowed under this section), which are properly allocable to such receipts. </text></paragraph></subsection> <subsection id="HD0C7A5F64C8A48E2817D620352BE65FA"><enum>(c)</enum><header>Qualified tips</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC3FEAAC95D2E42C1AF46A86D09780359"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified tip</term> means any cash tip received by an individual in an occupation which traditionally and customarily received tips on or before December 31, 2024, as provided by the Secretary.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HD253DE8DE43046BFBBD92AECB40295D0"><enum>(2)</enum><header>Exclusions</header><text display-inline="yes-display-inline">Such term shall not include any amount received by an individual unless—</text>
<subparagraph id="HAB48D633A7E3459FAECC2C9064E3F127"><enum>(A)</enum><text>such amount is paid voluntarily without any consequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor,</text></subparagraph> <subparagraph id="H3C767028AEA947ACA6664C435252D366" commented="no"><enum>(B)</enum><text>the trade or business in the course of which the individual receives such amount is not a specified service trade or business (as defined in section 199A(d)(2)),</text></subparagraph>
<subparagraph id="HC9EB79C7A70342C392C1C3F908CE1B85"><enum>(C)</enum><text display-inline="yes-display-inline">such individual does not receive earned income (within the meaning of section 32) in excess of the dollar amount in effect under section 414(q)(1)(B)(i) for the calendar year in which the taxable year begins, and</text></subparagraph> <subparagraph id="HBBB864C9E30B4988A0BD600E8C3CD286"><enum>(D)</enum><text>such other requirements as may be established by the Secretary in regulations or other guidance are satisfied.</text></subparagraph></paragraph></subsection>
<subsection id="HF5A8B046FAFA4D61898A478428C48777" commented="no"><enum>(d)</enum><header>Social security number required</header>
<paragraph id="H008C1238B21F4A3DAE43C6D8DEFFE872" commented="no"><enum>(1)</enum><header>In general</header><text>No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year—</text> <subparagraph id="H307CB8CCD6EC4ACA8B7E4C55352CF2E1" commented="no"><enum>(A)</enum><text>such individual’s social security number, and</text></subparagraph>
<subparagraph id="H28811F88609A45BE911220F37CFB12BA" commented="no"><enum>(B)</enum><text>if the individual is married, the social security number of such individual’s spouse.</text></subparagraph></paragraph> <paragraph id="H19F22CD35AD341FE8852A6D63220829D" commented="no"><enum>(2)</enum><header>Married individuals</header><text>Rules similar to the rules of section 32(d) shall apply to this section.</text></paragraph>
<paragraph id="H2D666F0AB1574E6C95B7DF43E5EA2907"><enum>(3)</enum><header>Social security number defined</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the term <quote>social security number</quote> shall have the meaning given such term in section 24(h)(7).</text></paragraph></subsection> <subsection id="HF187C7D5C65D46C8BC8531CB25158CA6"><enum>(e)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such regulations or other guidance as may be necessary to prevent reclassification of income as qualified tips, including regulations or other guidance to prevent abuse of the deduction allowed by this section.</text></subsection>
<subsection id="H03C8E91631AF4118B6AE8EC89E2DF040"><enum>(f)</enum><header>Termination</header><text>No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="HECD7144C914B48A286225633AB85BD04"><enum>(b)</enum><header display-inline="yes-display-inline">Deduction allowed to non-itemizers</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/63">Section 63(b)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting <quote>and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HDF6F537795BB4C2D813CD673344BF1CE">
<paragraph commented="no" display-inline="no-display-inline" id="H93F16EC3EC534A63AFE96AB27E5264AB"><enum>(5)</enum><text>the deduction provided in section 224.</text></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="HD3F2C14BA6C6450893709DFCBCB2F6C5" display-inline="no-display-inline"><enum>(c)</enum><header>Omission of correct social security number treated as mathematical or clerical error</header><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of subparagraph (V), by striking the period at the end of subparagraph (W) and inserting <quote>, and</quote>, and by inserting after subparagraph (W) the following new subparagraph:</text>
<quoted-block style="OLC" id="HA85CED578F5D47CB9002096A2515EAF2" display-inline="no-display-inline">
<subparagraph id="H22D85521EADB4E15AF35007C02AA9768"><enum>(X)</enum><text display-inline="yes-display-inline">an omission of a correct social security number required under section 224(d) (relating to deduction for qualified tips).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H7108B25B36F64C098C7F577A101C6BD3" commented="no"><enum>(d)</enum><header>Exclusion from qualified business income</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/199A">Section 199A(c)(4)</external-xref> is amended by striking <quote>and</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph: </text>
<quoted-block style="OLC" id="H40B8EC08A213430392461045E7434FDC" display-inline="no-display-inline">
<subparagraph id="H6932E9390FA0408AB2C8F157B5117B71"><enum>(D)</enum><text display-inline="yes-display-inline">any amount with respect to which a deduction is allowable to the taxpayer under section 224(a) for the taxable year.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H90136C14BE904DE9AF85834F26543DC2" commented="no"><enum>(e)</enum><header>Extension of tip credit to beauty service business</header><text></text>
<paragraph id="HC5EBF43923DB43EF87A74EFEB1FF87E7" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45B">Section 45B(b)(2)</external-xref> is amended to read as follows:</text> <quoted-block id="H88830810969F48C49D68DF01730F417C" style="OLC"> <paragraph id="H6937DDF9ECF84C928E158CC1AFF9AD4D" commented="no"><enum>(2)</enum><header>Application only to certain lines of business</header><text>In applying paragraph (1) there shall be taken into account only tips received from customers or clients in connection with the following services:</text>
<subparagraph id="H0CD856E797FB4B5EB52A1345186D5040" commented="no"><enum>(A)</enum><text>The providing, delivering, or serving of food or beverages for consumption, if the tipping of employees delivering or serving food or beverages by customers is customary.</text></subparagraph> <subparagraph id="HA51FEEF0B2A1438EB5E4A23CD5401535" commented="no"><enum>(B)</enum><text>The providing of any of the following services to a customer or client if the tipping of employees providing such services is customary:</text>
<clause id="H8AEB03F649EC4F718AB36D46BF03CFAC" commented="no"><enum>(i)</enum><text>Barbering and hair care.</text></clause> <clause id="H90F121240418490C921E3B7DF8372DEB" commented="no"><enum>(ii)</enum><text>Nail care.</text></clause>
<clause id="HFDB224A8C3B64DDCA31FCAB9A4AE9FB5" commented="no"><enum>(iii)</enum><text>Esthetics.</text></clause> <clause id="HDC8DB0A5FE694AC1ABD8BD31A74EEF5F" commented="no"><enum>(iv)</enum><text>Body and spa treatments.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HD4C095A81BA04822A8868ACB02BA4C64" commented="no"><enum>(2)</enum><header>Credit determined with respect to minimum wage in effect</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45B">Section 45B(b)(1)(B)</external-xref> is amended—</text> <subparagraph id="H38F0E8E14D2049BCBC843E50174492DA" commented="no"><enum>(A)</enum><text>by striking <quote>as in effect on January 1, 2007, and</quote>, and</text></subparagraph>
<subparagraph id="H321343C9DF06453FA37A809D47C26BF0" commented="no"><enum>(B)</enum><text>by inserting <quote>, and in the case of food or beverage establishments, as in effect on January 1, 2007</quote> after <quote>without regard to section 3(m) of such Act</quote>.</text></subparagraph></paragraph></subsection> <subsection id="H828E3D367AD2496488A9335F7B5C6854"><enum>(f)</enum><header>Reporting requirements</header> <paragraph id="H52A889B74ADF4CFE9E7CD595E94BB903"><enum>(1)</enum><header>Returns for payments made in the course of a trade or business</header> <subparagraph id="H12FB40874C214F89B5C197FCAE42CF04"><enum>(A)</enum><header>Statement furnished to Secretary</header><text display-inline="yes-display-inline"> <external-xref legal-doc="usc" parsable-cite="usc/26/6041">Section 6041(a)</external-xref> is amended by inserting <quote>(including a separate accounting of any such amounts properly designated as tips and whether such tips are received in an occupation described in section 224(c)(1))</quote> after <quote>such gains, profits, and income</quote>.</text></subparagraph>
<subparagraph id="H0C3C8D47FB86430D9EFC829E61C66C00"><enum>(B)</enum><header>Statement furnished to payee</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6041">Section 6041(d)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by inserting after paragraph (2) the following new paragraph: </text> <quoted-block style="OLC" id="HB6EFABFAC8A1453CA0B69B86DDF20C93" display-inline="no-display-inline"> <paragraph id="HB3A07BB0F070402BBFD68A4D10CE3B01"><enum>(3)</enum><text display-inline="yes-display-inline">in the case of compensation to non-employees, the portion of payments that have been properly designated as tips and whether such tips are received in an occupation described in section 224(c)(1).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H0F8D7EF0F87E4EC6B383C1FF6C2A3C8F" display-inline="no-display-inline"><enum>(2)</enum><header>Returns for payments made for services and direct sales</header>
<subparagraph id="H5179EF66A38B42E7AA1C51B02D5D859F"><enum>(A)</enum><header>Statement furnished to Secretary</header><text display-inline="yes-display-inline"> <external-xref legal-doc="usc" parsable-cite="usc/26/6041A">Section 6041A(a)</external-xref> is amended by inserting <quote>(including a separate accounting of any such amounts properly designated as tips and whether such tips are received in an occupation described in section 224(c)(1))</quote> after <quote>amount of such payments</quote>.</text></subparagraph> <subparagraph id="HB4A49DD13E034D8FA0A6DE5032257245"><enum>(B)</enum><header>Statement furnished to payee</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6041A">Section 6041A(e)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by inserting after paragraph (2) the following new paragraph: </text>
<quoted-block style="OLC" id="H5D26B71A0A7744C181656DFF8E209A1D" display-inline="no-display-inline">
<paragraph id="H23EF1FBA3F3044DB8A88F835E4DCFE19"><enum>(3)</enum><text display-inline="yes-display-inline">the portion of payments that have been properly designated as tips and whether such tips are received in an occupation described in section 224(c)(1).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H5873B58DA55E4F75A6D3B592D76CAF9F"><enum>(3)</enum><header>Returns relating to third party settlement organizations</header> <subparagraph id="H49BCD90E915E4D4180BC5CF49A58190F"><enum>(A)</enum><header>Statement furnished to Secretary</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6050W">Section 6050W(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="HCB9997C4DFF3471CB915BF8C1C68F7A6" display-inline="no-display-inline">
<paragraph id="HB457C1E870EA4CB08CF78FD513D9C51F"><enum>(3)</enum><text display-inline="yes-display-inline">in the case of a third party settlement organization, the portion of reportable payment transactions that have been properly designated by payors as tips and whether such tips are received in an occupation described in section 224(c)(1).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H4747571CD4574949A7666491A6639373"><enum>(B)</enum><header>Statement furnished to payee</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6050W">Section 6050W(f)(2)</external-xref> is amended by inserting <quote>(including a separate accounting of any such amounts that have been properly designated by payors as tips and whether such tips are received in an occupation described in section 224(c)(1))</quote> after <quote>reportable payment transactions</quote>.</text></subparagraph></paragraph>
<paragraph id="HEDFCA3D2A9B74C4C96467F9C5BED8DEA"><enum>(4)</enum><header>Returns related to wages</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6051">Section 6051(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting <quote>, and</quote>, and by inserting after paragraph (17) the following new paragraph:</text> <quoted-block style="OLC" id="HD263B3A74516459897E1023CAEAA0D0C" display-inline="no-display-inline"> <paragraph id="HC40FCF44DFA848EAA3DA093B0E875219"><enum>(18)</enum><text display-inline="yes-display-inline">the total amount of tips reported by the employee under section 6053(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H112A6C884C4A461BBEE295EC614697EC" commented="no" display-inline="no-display-inline"><enum>(g)</enum><header>Clerical amendment</header><text>The table of sections for part VII of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item:</text> <quoted-block style="OLC" id="H52447E69B7C441E5B40CE776FCF62A2A"> <toc> <toc-entry level="section" idref="HDD1D0588D9204A2E995F88368FA1EFE7">Sec. 224. Qualified tips.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6580E6B33B3B4C98AFB90C32D00B138C" commented="no" display-inline="no-display-inline"><enum>(h)</enum><header>Published list of occupations traditionally receiving tips</header><text>Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate) shall publish a list of occupations which traditionally and customarily received tips on or before December 31, 2024, for purposes of section 224(c)(1) (as added by subsection (a)). </text></subsection>
<subsection id="H42179AB56112408ABFE26022B24EAE2F"><enum>(i)</enum><header>Withholding</header><text>The Secretary of the Treasury (or the Secretary’s delegate) shall modify the tables and procedures prescribed under section 3402(a) to take into account the deduction allowed under section 224 (as added by this Act).</text></subsection> <subsection commented="no" display-inline="no-display-inline" id="H0F5749C9CAC244B0B30F0A15B33C6AE1"><enum>(j)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H4159D0B2085746998E19C2C04D8C95DF" section-type="subsequent-section"><enum>110102.</enum><header>No tax on overtime</header>
<subsection id="H9F7ABE72932A42EDA6D84F00B4B64B4C" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>Deduction allowed</header><text display-inline="yes-display-inline">Part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating section 225 as section 226 and by inserting after section 224 the following new section:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H0FD092FC7AA44C50A1C1C525E9B30E5E"> <section commented="no" display-inline="no-display-inline" id="H649B44E98D8F443A92E4408F863FE7C1"><enum>225.</enum><header>Qualified overtime compensation</header> <subsection commented="no" display-inline="no-display-inline" id="H636BB81D649647E09D4A8EE4746F13D5"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">There shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year.</text></subsection>
<subsection id="H69CCE7DF2DEF491D8EEBBF9CE6249FD9"><enum>(b)</enum><header>Qualified overtime compensation</header>
<paragraph id="H97B4A50A622E47F9B288B30143461E90"><enum>(1)</enum><header>In general</header><text>For purposes of this section, the term <term>qualified overtime compensation</term> means overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed.</text></paragraph> <paragraph id="HFD0E0487F3244DCBB02FEC1441811D54"><enum>(2)</enum><header>Exclusions</header><text>Such term shall not include—</text>
<subparagraph id="H5C160AA2D98540E7BBB06C235409D516"><enum>(A)</enum><text>any qualified tip (as defined in section 224(c)), or</text></subparagraph> <subparagraph id="HF60437C14B3E466AA8732C50FB8F2C72"><enum>(B)</enum><text display-inline="yes-display-inline">any amount received by an individual during a taxable year if such individual is a highly compensated employee (as defined in section 414(q)(1)) of any employer for the calendar year in which the taxable year begins, or receives earned income in excess of the dollar amount in effect under section 414(q)(1)(B)(i) for such calendar year.</text></subparagraph></paragraph></subsection>
<subsection id="H6CBF7C581D944D8086A8630E9B730B08" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Social security number required</header>
<paragraph id="HF07EC1752C7B4617A682A8EAAD8DA992" commented="no"><enum>(1)</enum><header>In general</header><text>No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year—</text> <subparagraph id="HC68A9C527FE342F3AA3525CEB4E03E1E" commented="no"><enum>(A)</enum><text>such individual’s social security number, and</text></subparagraph>
<subparagraph id="H34E3A65551774C2BA16818C51C88AD74" commented="no"><enum>(B)</enum><text>if the individual is married, the social security number of such individual’s spouse.</text></subparagraph></paragraph> <paragraph id="HC590BA7523E74174A20D668DDFEAA7D0" commented="no"><enum>(2)</enum><header>Married individuals</header><text>Rules similar to the rules of section 32(d) shall apply to this section.</text></paragraph>
<paragraph id="H0742F60D1B6741D8B87727BBB73BD030"><enum>(3)</enum><header>Social security number defined</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the term <quote>social security number</quote> shall have the meaning given such term in section 24(h)(7).</text></paragraph></subsection> <subsection id="H991598F31F7A44568CD58FA3A18FB77A"><enum>(d)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.</text></subsection>
<subsection id="HCC3FC93B7B904FFB9AD1FABEF8962643" display-inline="no-display-inline"><enum>(e)</enum><header>Termination</header><text>No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="H07B60EC9FC0841A0B52A6F1E37411D07"><enum>(b)</enum><header display-inline="yes-display-inline">Deduction allowed to non-itemizers</header><text>Section 63(b), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting <quote>and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H19F95B2FDC57443D9C19858B1BD4C58F">
<paragraph commented="no" display-inline="no-display-inline" id="H0412E75675964C9881CE2EE75FA521CC"><enum>(6)</enum><text>the deduction provided in section 225.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HFC24B10FD4BC4F74ABC0A493A07A607D"><enum>(c)</enum><header>Requirement to include overtime compensation on W-2</header><text>Section 6051(a), as amended by the preceding provision of this Act, is amended by striking <quote>and</quote> at the end of paragraph (17), by striking the period at the end of paragraph (18) and inserting <quote>, and</quote>, and by inserting after paragraph (18) the following new paragraph:</text>
<quoted-block style="OLC" id="H7C779ADECB2A4BC39AC08AE8612245A0" display-inline="no-display-inline">
<paragraph id="H2265360B52EC4772A265F8E3BA813496"><enum>(19)</enum><text display-inline="yes-display-inline">the total amount of qualified overtime compensation (as defined in section 225(b)).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H75B467F4C72A43F9B43E298E294ACFE6" display-inline="no-display-inline"><enum>(d)</enum><header>Omission of correct social security number treated as mathematical or clerical error</header><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of subparagraph (W), by striking the period at the end of subparagraph (X) and inserting <quote>, and</quote>, and by inserting after subparagraph (X) the following new subparagraph:</text>
<quoted-block style="OLC" id="HE5AC61F364F34417BA34E790432EB51A" display-inline="no-display-inline">
<subparagraph id="HDEEEC8E85FFA4A9195D5037DBE095C3E"><enum>(Y)</enum><text display-inline="yes-display-inline">an omission of a correct social security number required under section 225(c) (relating to deduction for qualified overtime).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5681DEF68E034968B3BD82515380F588" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Clerical amendment</header><text>The table of sections for part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating the item relating to section 225 as an item relating to section 226 and by inserting after the item relating to section 224 the following new item:</text>
<quoted-block style="OLC" id="H8BB1546D153F403788FD63D6A10E2446">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H0FD092FC7AA44C50A1C1C525E9B30E5E" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H649B44E98D8F443A92E4408F863FE7C1" level="section">Sec. 225. Qualified overtime compensation.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA969C9498D7944B58E6E52F42358A704" commented="no"><enum>(f)</enum><header>Withholding</header><text>The Secretary of the Treasury (or the Secretary’s delegate) shall modify the tables and procedures prescribed under section 3402(a) to take into account the deduction allowed under section 225 (as added by this Act). </text></subsection> <subsection commented="no" display-inline="no-display-inline" id="H22307E61B17649B8B13B3CCA8BBC8877"><enum>(g)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section>
<section id="HCCD5DED45D374E6290FC8A7C53FCA2BB"><enum>110103.</enum><header>Enhanced deduction for seniors</header>
<subsection id="HC882EA8A9AE14EAFAF569DD33FEF3E46" display-inline="no-display-inline"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/63">Section 63(f)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="H175F0433CC104EA6905E3D8886408C15" display-inline="no-display-inline"> <paragraph id="H63C6DEC5224D4D9EB9032B6400288137"><enum>(5)</enum><header>Bonus additional amount for seniors</header> <subparagraph id="HBCD7532CBBC54C81809B6FC04BE834A6"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxable year beginning after December 31, 2024, and before January 1, 2029, the dollar amount in effect under paragraph (1) shall be increased by $4,000.</text></subparagraph>
<subparagraph id="HFD84A9C2039C45DFB85906181C393BAC"><enum>(B)</enum><header>Limitation based on modified adjusted gross income</header><text>In the case of any taxpayer for any taxable year, the $4,000 amount in subparagraph(A) shall be reduced (but not below zero) by 4 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).</text></subparagraph> <subparagraph id="H6A319DF88EB047C896F12685FEE3936F"><enum>(C)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>modified adjusted gross income</quote> means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.</text></subparagraph>
<subparagraph id="H2A9CE7E86CD246DEA6AC9535F271B13F" commented="no"><enum>(D)</enum><header>Social security number required</header>
<clause id="H6CD544329D364EA0AB2FE18B5906DBA8" commented="no"><enum>(i)</enum><header>In general</header><text>Subparagraph (A) shall not apply unless the taxpayer includes on the return of tax for the taxable year—</text> <subclause id="H6273B5AD8B604ABDB6CB11A5D0710927" commented="no"><enum>(I)</enum><text>such individual’s social security number, and</text></subclause>
<subclause id="HB1D2381734E84F33A8B6AA064884EF83" commented="no"><enum>(II)</enum><text>if the individual is married, the social security number of such individual’s spouse.</text></subclause></clause> <clause id="HFCDAFE77FF6E41438964DE7C1EAE882A" commented="no"><enum>(ii)</enum><header>Married individuals</header><text>Rules similar to the rules of section 32(d) shall apply to this section.</text></clause>
<clause id="H7423319C88E449B698D085F66622D766"><enum>(iii)</enum><header>Social security number defined</header><text display-inline="yes-display-inline">For purposes of clause (i), the term <quote>social security number</quote> shall have the meaning given such term in section 24(h)(7).</text></clause></subparagraph> <subparagraph id="HEC93D344AFF547A6B8D152D76D41DDFD"><enum>(E)</enum><header>Coordination with inflation adjustment</header><text>Subsection (c)(4) shall not apply to any dollar amount contained in this paragraph.</text></subparagraph>
<subparagraph id="H26213C76962D4226A1C3A5C66B512AD9"><enum>(F)</enum><header>Allowance to seniors who elect to itemize</header><text display-inline="yes-display-inline">In the case of a taxpayer who elects to itemize deductions for any taxable year beginning after December 31, 2024, and before January 1, 2029, there shall be allowed as a deduction the aggregate increase which would be determined under subparagraph (A) (determined after the application of subparagraphs (B), (D), and (E)) with respect to such taxpayer for such taxable year if such taxpayer did not so elect to itemize deductions for such taxable year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5C1DC79EDBD2495CB06BFBC6648C8B52" display-inline="no-display-inline"><enum>(b)</enum><header>Omission of correct social security number treated as mathematical or clerical error</header><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of subparagraph (X), by striking the period at the end of subparagraph (Y) and inserting <quote>, and</quote>, and by inserting after subparagraph (Y) the following new subparagraph:</text>
<quoted-block style="OLC" id="H69CC7F51BD524F69A686516DAB89CB06" display-inline="no-display-inline">
<subparagraph id="H3EE9F1B7407E4F8CB00B580DB994BCCC"><enum>(Z)</enum><text display-inline="yes-display-inline">an omission of a correct social security number required under section 63(f)(5)(D) (relating to bonus additional amount for seniors).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H58D720E23746431D823A9DCD7194A031"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section>
<section id="HB7F3B6FC5390412DB27605DBB04F1A78" section-type="subsequent-section" commented="no"><enum>110104.</enum><header>No tax on car loan interest</header>
<subsection id="HC3402D70308A4CD182632B32D81E3AE6" commented="no"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/163">Section 163(h)</external-xref> is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:</text> <quoted-block style="OLC" id="HB314C4E92A30408ABE5093FFA6952A8B" display-inline="no-display-inline"> <paragraph id="H2CA5B7A047204E5AACCE3088DA049C3E" commented="no"><enum>(4)</enum><header>Special rules for taxable years <enum-in-header>2025</enum-in-header> through <enum-in-header>2028</enum-in-header> relating to qualified passenger vehicle loan interest</header> <subparagraph id="H31161A3C3082484590B56BB7FACF5246"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of taxable years beginning after December 31, 2024, and before January 1, 2029, for purposes of this subsection the term <quote>personal interest</quote> shall not include qualified passenger vehicle loan interest. </text></subparagraph>
<subparagraph id="H295BE63E465C441191EFB9E6BD6FCAD7" commented="no"><enum>(B)</enum><header>Qualified passenger vehicle loan interest defined</header>
<clause id="H8AE54C7ACC134A85AAE37D3D9B96E4B1"><enum>(i)</enum><header>In general</header><text>For purposes of this paragraph, the term <quote>qualified passenger vehicle loan interest</quote> means any interest which is paid or accrued during the taxable year on indebtedness incurred by the taxpayer after December 31, 2024, for the purchase of, and that is secured by a first lien on, an applicable passenger vehicle for personal use.</text></clause> <clause id="H3C343C6F72504B2AB3611FB9C9F55038" commented="no"><enum>(ii)</enum><header>Exceptions</header><text>Such term shall not include any amount paid or incurred on any of the following:</text>
<subclause id="H757C837B620544878952FCB42E590B69" commented="no"><enum>(I)</enum><text>A loan to finance fleet sales.</text></subclause> <subclause id="H50109F425063422E9928F87C36F6C31F" commented="no"><enum>(II)</enum><text>A personal cash loan secured by a vehicle previously purchased by the taxpayer.</text></subclause>
<subclause id="HC7550100579D497495B4778D8B813C3F" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">A loan incurred for the purchase of a commercial vehicle that is not used for personal purposes.</text></subclause> <subclause id="HCA3EBEBE9179462FA64FC5AEA7B14A51" commented="no"><enum>(IV)</enum><text>Any lease financing.</text></subclause>
<subclause id="HCEA5DF7385D648DBA3C2165E3B9E61FE" commented="no"><enum>(V)</enum><text>A loan to finance the purchase of a vehicle with a salvage title.</text></subclause> <subclause id="HC85FC889828045C6B01BD57DF4C66D73" commented="no"><enum>(VI)</enum><text>A loan to finance the purchase of a vehicle intended to be used for scrap or parts.</text></subclause></clause></subparagraph>
<subparagraph id="H38C80295DF1C4BF7BF6A96776E96BF49" commented="no"><enum>(C)</enum><header>Limitations</header>
<clause id="H0D57F89270674339869047EBC52D5829" commented="no"><enum>(i)</enum><header>Dollar limit</header><text display-inline="yes-display-inline">The amount of interest taken into account by a taxpayer under subparagraph (B) for any taxable year shall not exceed $10,000.</text></clause> <clause id="HDF8557AAD0F34A22928673197682145D" commented="no"><enum>(ii)</enum><header>Limitation based on modified adjusted gross income</header> <subclause id="HE6D19B491A504626B3CD70CE7DB6CDE2" commented="no"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">The amount which is otherwise allowable as a deduction under subsection (a) as qualified passenger vehicle loan interest (determined without regard to this clause and after the application of clause (i)) shall be reduced (but not below zero) by $200 for each $1,000 (or portion thereof) by which the modified adjusted gross income of the taxpayer for the taxable year exceeds $100,000 ($200,000 in the case of a joint return).</text></subclause>
<subclause id="H2D570547EB3F46408FC6401FD5B2047B"><enum>(II)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this clause, the term <quote>modified adjusted gross income</quote> means the adjusted gross income of the taxpayer for the taxable year determined after application of sections 86, 135, 137, 219, 221, and 469, and without regard to this paragraph and sections 911, 931, and 933.</text></subclause></clause></subparagraph> <subparagraph id="HDC5316C7ECE54AF59264EA7A5DE0946A" commented="no"><enum>(D)</enum><header>Applicable passenger vehicle</header><text display-inline="yes-display-inline">The term <quote>applicable passenger vehicle</quote> means any vehicle—</text>
<clause id="H0F9D1BEBBDB0425EB2B3AF364433920A" commented="no"><enum>(i)</enum>
<subclause id="HACFA480392804BCEB0564A631C95DB1C" display-inline="yes-display-inline"><enum>(I)</enum><text>which is manufactured primarily for use on public streets, roads, and highways,</text></subclause> <subclause id="HBB8AC4C6A29E426DB224BF8E53189BEA" indent="up1"><enum>(II)</enum><text>which has at least 2 wheels, and</text></subclause>
<subclause id="HEC167F2A54E6426EB0E1B7F841CDBF89" indent="up1"><enum>(III)</enum><text>which is a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle, </text></subclause></clause> <clause id="H2E931DCCF8E340E6A63AE2BA98B2FEB8"><enum>(ii)</enum><text>which is an all-terrain vehicle (designed for use on land), or</text></clause>
<clause id="HF417C3E3127540BAB2E4A88A4FD1F585"><enum>(iii)</enum><text>any trailer, camper, or vehicle (designed for use on land) which—</text> <subclause id="H273113EEA49945839C9AB9EA971378D4"><enum>(I)</enum><text>is designed to provide temporary living quarters for recreational, camping, or seasonal use, and</text></subclause>
<subclause id="H64A8CA340D3543FFB315F9F050F79FC2"><enum>(II)</enum><text>is a motor vehicle or is designed to be towed by, or affixed to, a motor vehicle.</text></subclause></clause><continuation-text continuation-text-level="subparagraph">Such term shall not include any vehicle the final assembly of which did not occur within the United States.</continuation-text></subparagraph> <subparagraph id="HD0B16776448A4354B33D8B8485C9B1E6" commented="no"><enum>(E)</enum><header>Other definitions and special rules</header><text display-inline="yes-display-inline">For purposes of this paragraph—</text>
<clause id="HED0CEC6616434CE29F8936AFAC554A9C"><enum>(i)</enum><header>All-terrain vehicle</header><text>The term <quote>all-terrain vehicle</quote> means any motorized vehicle which has 3 or 4 wheels, a seat designed to be straddled by the operator, and handlebars for steering control.</text></clause> <clause id="H4D95CD9F99314C299323B695E548CC0F" commented="no"><enum>(ii)</enum><header>Final assembly</header><text display-inline="yes-display-inline">For purposes of subparagraph (D), the term <quote>final assembly</quote> means the process by which a manufacturer produces a vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle.</text></clause>
<clause id="H0CDF8163EED24B2DA322D2608C62D6F1" commented="no"><enum>(iii)</enum><header>Treatment of refinancing</header><text display-inline="yes-display-inline">Indebtedness described in subparagraph (B) shall include indebtedness that results from refinancing any indebtedness described in such subparagraph, and that is secured by a first lien on the applicable passenger vehicle with respect to which the refinanced indebtedness was incurred, but only to the extent the amount of such resulting indebtedness does not exceed the amount of such refinanced indebtedness.</text></clause> <clause id="H5B7B70EE4A0F4EC88BF1F99C7D0CB21E" commented="no"><enum>(iv)</enum><header>Related parties</header><text>Indebtedness described in subparagraph (B) shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HC9116B2E7A5B4CEFBB2371F51946D7EC" commented="no"><enum>(b)</enum><header>Deduction allowed whether or not taxpayer itemizes</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/62">Section 62(a)</external-xref> is amended by inserting after paragraph (21) the following new paragraph:</text> <quoted-block style="OLC" id="H77B85479D9984A60ABE8EF9466D950D6" display-inline="no-display-inline"> <paragraph id="HF52DD995FA1C4CEEB720319617C10E05" commented="no"><enum>(22)</enum><header>Qualified passenger vehicle loan interest</header><text display-inline="yes-display-inline">So much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HC05D7EBA835A4DD889BE3AEB2CD92C19"><enum>(c)</enum><header>Reporting</header>
<paragraph id="H839D399056BB4434A428C632AC5DEE5A"><enum>(1)</enum><header>In general</header><text>Subpart B of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by adding at the end the following new section:</text> <quoted-block style="OLC" id="H2CE8FEEB27034E8885E3F5E9CD341BDA" display-inline="no-display-inline"> <section id="H1C2CE734C37342EF93659F51F1B41624"><enum>6050AA.</enum><header>Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals</header> <subsection id="HF49E86F73EED41BC8F5026C983BF6778"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Any person—</text>
<paragraph id="HCF43B82FEE584DA58AC29FEBC59E0961"><enum>(1)</enum><text>who is engaged in a trade or business, and</text></paragraph> <paragraph id="H388076F504384541B2AED14D169DA8DA"><enum>(2)</enum><text>who, in the course of such trade or business, receives from any individual interest aggregating $600 or more for any calendar year on a specified passenger vehicle loan,</text></paragraph><continuation-text continuation-text-level="subsection">shall make the return described in subsection (b) with respect to each individual from whom such interest was received at such time as the Secretary may provide.</continuation-text></subsection>
<subsection id="H0EEBA546EA9141E9AAACCF393746EB9D"><enum>(b)</enum><header>Form and manner of returns</header><text>A return is described in this subsection if such return—</text> <paragraph id="H0C91FEB8C89746CDA4B21B8FBAB86E13"><enum>(1)</enum><text>is in such form as the Secretary may prescribe, and</text></paragraph>
<paragraph id="H45AD7E70EB864D2A9A05597B0A95A3D3"><enum>(2)</enum><text>contains—</text> <subparagraph id="HC6A1A8EC6B084D38BF217E34CE171504"><enum>(A)</enum><text display-inline="yes-display-inline">the name and address of the individual from whom the interest described in subsection (a)(2) was received, </text></subparagraph>
<subparagraph id="H627F93E5C67D47B8B15D206FC19460A2"><enum>(B)</enum><text>the amount of such interest received for the calendar year, </text></subparagraph> <subparagraph id="HF4758C1708A14F568E5F25221CE495A4"><enum>(C)</enum><text>the amount of outstanding principal on the specified passenger vehicle loan as of the beginning of such calendar year, </text></subparagraph>
<subparagraph id="H53D5BF64CC0944E4A9749E71E325CD7D"><enum>(D)</enum><text>the date of the origination of such loan, </text></subparagraph> <subparagraph id="H6598D9D58147419E8AD22B46908222AE"><enum>(E)</enum><text>the year, make, and model of the applicable passenger vehicle which secures such loan (or such other description of such vehicle as the Secretary may prescribe), and </text></subparagraph>
<subparagraph id="HECA90FBEEACA4965BFEA6F3AA9305E8F"><enum>(F)</enum><text>such other information as the Secretary may prescribe.</text></subparagraph></paragraph></subsection> <subsection id="H2EE68247F5D8471BA1A11A4A3BF78424"><enum>(c)</enum><header>Statements to be furnished to individuals with respect to whom information is required</header><text display-inline="yes-display-inline">Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—</text>
<paragraph id="H3D56B224B07245E487C55595EA3A3B2E"><enum>(1)</enum><text>the name, address, and phone number of the information contact of the person required to make such return, and </text></paragraph> <paragraph id="H1AB368A65F04415DB3D717C679E4C6DB"><enum>(2)</enum><text>the information described in subparagraphs (B), (C), (D), and (E) of subsection (b)(2) with respect to such individual (and such information as is described in subsection (b)(2)(F) with respect to such individual as the Secretary may provide for purposes of this subsection).</text></paragraph><continuation-text continuation-text-level="subsection">The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made.</continuation-text></subsection>
<subsection id="H14F699DBE91542CABE9F174036D49F68"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text> <paragraph id="H622D88C21F4E4867BD3810FB81474FCB"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Terms used in this section which are also used in paragraph (4) of section 163(h) shall have the same meaning as when used in such paragraph.</text></paragraph>
<paragraph id="H1D1E4FF7A16343449EFED7AF25BCA65B"><enum>(2)</enum><header>Specified passenger vehicle loan</header><text>The term <quote>specified passenger vehicle loan</quote> means the indebtedness described in section 163(h)(4)(B) with respect to any applicable passenger vehicle.</text></paragraph></subsection> <subsection id="H628A540C9BB64200B84283C862AB3529"><enum>(e)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent the duplicate reporting of information under this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H8B24AB6375814C1787265910E112DD72"><enum>(2)</enum><header>Penalties</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6724">Section 6724(d)</external-xref> is amended—</text> <subparagraph id="H4D4B477969284C59BB330AA676255FAD"><enum>(A)</enum><text>in paragraph (1)(B), by striking <quote>or</quote> at the end of clause (xxvii), by striking <quote>and</quote> at the end of clause (xxviii) and inserting <quote>or</quote>, and by adding at the end the following new clause:</text>
<quoted-block style="OLC" id="HDEF9117C041748388B3736C76B5CAB2D" display-inline="no-display-inline">
<clause id="H5A39FCBD465D4599A92407472FC5FB8F"><enum>(xxix)</enum><text display-inline="yes-display-inline">section 6050AA(a) (relating to returns relating to applicable passenger vehicle loan interest received in trade or business from individuals), and</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H8EED80A0A0E845A78422A01EAB9B67A4"><enum>(B)</enum><text>in paragraph (2), by striking <quote>or</quote> at the end of subparagraph (KK), by striking the period at the end of subparagraph (LL) and inserting <quote>, or</quote>, and by inserting after subparagraph (LL) the following new subparagraph: </text>
<quoted-block style="OLC" id="HD96EADD735C24BDB954729A8C7B0ACEE" display-inline="no-display-inline">
<subparagraph id="HC82A069D23834BAB874CB6A580B7520B"><enum>(MM)</enum><text display-inline="yes-display-inline">section 6050AA(b) (relating to statements relating to applicable passenger vehicle loan interest received in trade or business from individuals).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection> <subsection id="H72789A541B1F4617B37423227FF89F4D" display-inline="no-display-inline" commented="no"><enum>(d)</enum><header>Conforming amendments</header> <paragraph id="H0192A72FBC774A268B7C2BC8E7E12D35"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/56">Section 56(e)(1)(B)</external-xref> is amended by striking <quote>section 163(h)(4)</quote> and inserting <quote>section 163(h)(5)</quote>.</text></paragraph>
<paragraph id="HF2E9CEB946F74D66BFDE9389706C2B76" display-inline="no-display-inline"><enum>(2)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/85">Section 85</external-xref> is amended by striking subsection (c).</text></paragraph> <paragraph id="HE10B8C92E05D4A26A647C540114EF521"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/86">Section 86(b)(2)(A)</external-xref> is amended by inserting <quote>163(h)(4),</quote> after <quote>137,</quote>.</text></paragraph>
<paragraph id="HF22E1473576A46F588D57EA15B95F014"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/135">Section 135(c)(4)(A)</external-xref> is amended by inserting <quote>163(h)(4),</quote> after <quote>137,</quote>.</text></paragraph> <paragraph id="HBC56A866794248D89CA8572E69F7C970"><enum>(5)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/137">Section 137(b)(3)(A)</external-xref> is amended by inserting <quote>, 163(h)(4),</quote> after <quote>85(c)</quote>.</text></paragraph>
<paragraph id="H3A701F5CF81F4CC0808A2560E14E008F"><enum>(6)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/219">Section 219(g)(3)(A)(ii)</external-xref> is amended by inserting <quote>163(h)(4),</quote> after <quote>137,</quote>.</text></paragraph> <paragraph id="H01D6D67FDED44F3B96A038E3D547B8F6"><enum>(7)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/221">Section 221(b)(1)(C)(i)</external-xref> is amended by inserting <quote>, 163(h)(4),</quote> after <quote>85(c)</quote>.</text></paragraph>
<paragraph id="H0135B419B5964B60B168D4A84F0375FC" display-inline="no-display-inline"><enum>(8)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/469">Section 469(i)(3)(E)(iii)</external-xref> is amended by inserting <quote>163(h)(4),</quote> after <quote>sections</quote>. </text></paragraph> <paragraph id="H0FECEC5DCF3B4B9D993FAFD54B1D5922"><enum>(9)</enum><text display-inline="yes-display-inline">The table of sections for subpart B of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="H24568BA1186240B4A6944A8CC5CA22F4" display-inline="no-display-inline">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H2CE8FEEB27034E8885E3F5E9CD341BDA" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H1C2CE734C37342EF93659F51F1B41624" level="section">Sec. 6050AA. Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HCEC80E5E0130438EB0ED2F8187ABA002" commented="no"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to indebtedness incurred after December 31, 2024.</text></subsection></section> <section id="H3B8B027D9388439FA63A66D8C6063E2D" section-type="subsequent-section"><enum>110105.</enum><header>Enhancement of employer-provided child care credit</header> <subsection id="H9D355A18D1C44FA58ECD2CFC67F67E11"><enum>(a)</enum><header>Increase of amount of qualified child care expenditures taken into account</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45F">Section 45F(a)(1)</external-xref> is amended by striking <quote>25 percent</quote> and inserting <quote>40 percent (50 percent in the case of an eligible small business)</quote>.</text></subsection>
<subsection id="H32590A1D189D43099611A7947B826F22"><enum>(b)</enum><header>Increase of maximum credit amount</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/45F">section 45F</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="HCCF7DFC9551B4B7FA297A8400E47EE84" display-inline="no-display-inline"> <subsection id="H16CBB3D790FD43F79B9D7990B9BA1B77"><enum>(b)</enum><header>Dollar limitation</header> <paragraph id="H2A88008C06F9481C8D0390F6FD5B435C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The credit allowable under subsection (a) for any taxable year shall not exceed $500,000 ($600,000 in the case of an eligible small business).</text></paragraph>
<paragraph id="H77878B23C35F405DB6633CD9F9FB4DE9"><enum>(2)</enum><header>Inflation adjustment</header><text>In the case of any taxable year beginning after 2026, the $500,0000 and $600,000 amounts in paragraph (1) shall be increased by an amount equal to—</text> <subparagraph id="H0300085814AB4A448D96234E66926534"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph>
<subparagraph id="HE190983A108B487AA24F0A30232A6F54"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2025</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HEA01C2070D904B7196D1BE4DBB66F56A"><enum>(c)</enum><header>Eligible small business</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45F">Section 45F(c)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="H4A7D8DFE4911471389AA487289E8BE53" display-inline="no-display-inline">
<paragraph id="H170930F8617046E29D2A913835501E1F"><enum>(4)</enum><header>Eligible small business</header><text display-inline="yes-display-inline">The term <quote>eligible small business</quote> means a business that meets the gross receipts test of section 448(c), determined—</text> <subparagraph id="H53C62D6194364DBE97E9B1669798F41B"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>5-taxable-year</quote> for <quote>3-taxable-year</quote> in paragraph (1) thereof, and</text></subparagraph>
<subparagraph id="HD9DBA5F056334B218B17518814C91B97"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>5-year</quote> for <quote>3-year</quote> each place such term appears in paragraph (3)(A) thereof.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBC99727C38CF4DBCB960DDD4A299B917"><enum>(d)</enum><header>Credit allowed for third-party intermediaries</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45F">Section 45F(c)(1)(A)(iii)</external-xref> is amended by inserting <quote>, or under a contract with an intermediate entity that contracts with one or more qualified child care facilities to provide such child care services</quote> before the period at the end.</text></subsection>
<subsection id="H49987AAAB5DE4867AE634A647C4EACD6"><enum>(e)</enum><header>Treatment of jointly owned or operated child care facility</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45F">Section 45F(c)(2)</external-xref> is amended by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="HE5DA02A82DD842DCBED6E8E4560E996C" display-inline="no-display-inline"> <subparagraph id="H4942B302212443BBB258284111EA0015"><enum>(C)</enum><header>Treatment of jointly owned or operated child care facility</header><text display-inline="yes-display-inline">A facility shall not fail to be treated as a qualified child care facility of the taxpayer merely because such facility is jointly owned or operated by the taxpayer and other persons.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H0C96DBD893D6405BB524604529BC926A"><enum>(f)</enum><header>Regulations and guidance</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45F">Section 45F</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="H05CC6A0D8BE64B44B4B2E67EEAA47F56" display-inline="no-display-inline"> <subsection id="H55C279F81AE74D8CAB676B71C9F7137B"><enum>(g)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to carry out the purposes of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H21CABAF6A57D445FBE681D88EAE43296"><enum>(g)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025.</text></subsection></section> <section id="HB513AEF1FF154AAEB9991D9E1781F84F" commented="no"><enum>110106.</enum><header>Extension and enhancement of paid family and medical leave credit</header> <subsection id="H8536C28B4C39494EA4BBEC4AE1B75E82" commented="no"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45S">Section 45S</external-xref> is amended—</text>
<paragraph id="H61475FC6858549A787112D41E49981A5" commented="no"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H08FEAC88A7BC4366ACD7730B0F7D5055" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H7DE9C4410C4946A18D2B6E5A99F8C86B">
<paragraph id="HF189A71616D2471182EF01005A48D183" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of section 38, in the case of an eligible employer, the paid family and medical leave credit is an amount equal to either of the following (as elected by such employer):</text> <subparagraph id="HF21C0FD760254146AD175B8C01A01ED1" commented="no"><enum>(A)</enum><text>The applicable percentage of the amount of wages paid to qualifying employees with respect to any period in which such employees are on family and medical leave.</text></subparagraph>
<subparagraph id="H61F660AE87594D0B82A77BA747CABACE" commented="no"><enum>(B)</enum><text>If such employer has an insurance policy with regards to the provision of paid family and medical leave which is in force during the taxable year, the applicable percentage of the total amount of premiums paid or incurred by such employer during such taxable year with respect to such insurance policy.</text></subparagraph></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H17EAB34BE26846C995A77944AF33FC84" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>by adding at the end the following:</text>
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<paragraph id="HB31D75FDA5F045D0BCDB9D3628B41E72" commented="no" display-inline="no-display-inline"><enum>(3)</enum><header>Rate of payment determined without regard to whether leave is taken</header><text>For purposes of determining the applicable percentage with respect to paragraph (1)(B), the rate of payment under the insurance policy shall be determined without regard to whether any qualifying employees were on family and medical leave during the taxable year.</text></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H918F70018A484A8C83147C3F85BEFF69" commented="no"><enum>(2)</enum><text>in subsection (b)(1), by striking <quote>credit allowed</quote> and inserting <quote>wages taken into account</quote>,</text></paragraph>
<paragraph id="HB9F2655898C64B4B9CBB67737869DA3A" commented="no"><enum>(3)</enum><text>in subsection (c), by striking paragraphs (3) and (4) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H668C300A223D4F36AB799333A4E194A9"> <paragraph id="H0FD6D31A94C54AADB77F6D9A64AF9945" commented="no"><enum>(3)</enum><header>Aggregation rule</header> <subparagraph id="H268DA9B41B344BCAAE8505B40F6C8D03" commented="no"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer.</text></subparagraph>
<subparagraph id="H2D8C51FE3DA74B3380C9381C6EB4A7EB" commented="no"><enum>(B)</enum><header>Exception</header>
<clause id="H8487F71FA14A4659B2DD2EE001DF9905" commented="no"><enum>(i)</enum><header>In general</header><text>Subparagraph (A) shall not apply to any person who establishes to the satisfaction of the Secretary that such person has a substantial and legitimate business reason for failing to provide a written policy described in paragraph (1) or (2).</text></clause> <clause id="HB3C0A5AF46D34A92AA43CCEFCDCB59E0" commented="no"><enum>(ii)</enum><header>Substantial and legitimate business reason</header><text>For purposes of clause (i), the term <term>substantial and legitimate business reason</term> shall not include the operation of a separate line of business, the rate of wages or category of jobs for employees (or any similar basis), or the application of State or local laws relating to family and medical leave, but may include the grouping of employees of a common law employer.</text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H31F9589E8B334D069D4FB5D71C7D33C1"><enum>(4)</enum><header>Treatment of benefits mandated or paid for by State or local governments</header><text>For purposes of this section, any leave which is paid by a State or local government or required by State or local law—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H717B11C2A0FC44D5B709CE3621953BBE"><enum>(A)</enum><text display-inline="yes-display-inline">except as provided in subparagraph (B), shall be taken into account in determining the amount of paid family and medical leave provided by the employer, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HDDAD05A0612B49E38BDB78D0313532EB"><enum>(B)</enum><text display-inline="yes-display-inline">shall not be taken into account in determining the amount of the paid family and medical leave credit under subsection (a).</text></subparagraph></paragraph><after-quoted-block>, </after-quoted-block></quoted-block></paragraph> <paragraph id="H79FC344EAD544ADFA4B22F59909FA501"><enum>(4)</enum><text>in subsection (d)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HCBF23D6813B9460D988A336FF31F400F"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting <quote>(or, at the election of the employer, for not less than 6 months)</quote> after <quote>1 year or more</quote>, and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H5B9D8C365F7C4DDFBCF5D5F5A5A431AD"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<clause commented="no" display-inline="no-display-inline" id="H857A4BA3FC494E1BA5570A2C4FB6C9DE"><enum>(i)</enum><text display-inline="yes-display-inline">by inserting <quote>, as determined on an annualized basis (pro-rata for part-time employees),</quote> after <quote>compensation</quote>, and</text></clause> <clause commented="no" display-inline="no-display-inline" id="HF0C1CF5A8F5648EEB0FE2DE49AB7E37F"><enum>(ii)</enum><text>by striking the period at the end and inserting <quote>, and</quote>, and</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H639C5C8935754D8CB08EDCB1FB5A8278"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H08162BDC736B4734A22F13ECACE4741E"> <paragraph commented="no" display-inline="no-display-inline" id="H0AE7F04AB9AF4CD2A1006618147DD515"><enum>(3)</enum><text>is customarily employed for not less than 20 hours per week.</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H43DE06C3C63144FB93FBA2A11E1B3CBB" commented="no"><enum>(5)</enum><text>by striking subsection (i).</text></paragraph></subsection> <subsection id="H6D4D356661B145718244DCA6EFC9F683" commented="no"><enum>(b)</enum><header>No double benefit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/280C">Section 280C(a)</external-xref> is amended—</text>
<paragraph id="H54C99BD6BBF14698A2172B23FC55B5B4" commented="no"><enum>(1)</enum><text>by striking <quote>45S(a)</quote> and inserting <quote>45S(a)(1)(A)</quote>, and</text></paragraph> <paragraph id="HAA31C38A80384E5BB304CDA71A99F51D" commented="no"><enum>(2)</enum><text>by inserting after the first sentence the following: <quote>No deduction shall be allowed for that portion of the premiums paid or incurred for the taxable year which is equal to that portion of the paid family and medical leave credit which is determined for the taxable year under section 45S(a)(1)(B).</quote></text></paragraph></subsection>
<subsection id="HF6F224D090DE43E38CF2429466FBE206" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="HCF8B9A350FAE41B988691F6C9A5B86C6" section-type="subsequent-section"><enum>110107.</enum><header>Enhancement of adoption credit</header> <subsection id="H0A83574072C54763858BA22830EB8E11"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/23">Section 23(a)</external-xref> is amended by adding at the end the following new paragraph:</text>
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<paragraph id="HEDD382F3771C498CA250669C3161CABB"><enum>(4)</enum><header>Portion of credit refundable</header><text display-inline="yes-display-inline">So much of the credit allowed under paragraph (1) as does not exceed $5,000 shall be treated as a credit allowed under subpart C and not as a credit allowed under this subpart.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HC3717B69534D46AEA4E3EA9F8D417078"><enum>(b)</enum><header>Adjustments for inflation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/23">Section 23(h)</external-xref> is amended to read as follows:</text>
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<subsection id="H8BBF3181BC6E4287B634DEB185BF9CB7"><enum>(h)</enum><header>Adjustments for inflation</header>
<paragraph id="H899EB7944FD84AF8A062EEF6856EB25F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxable year beginning after December 31, 2002, each of the dollar amounts in paragraphs (3) and (4) of subsection (a) and paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an amount equal to—</text> <subparagraph id="H61781D073BED4E7C953C8CF4DB7A938C"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph>
<subparagraph id="HA96B9DE5E3C949CF9E6130F3A4EE4E20"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2001</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subparagraph></paragraph> <paragraph id="H9284AB86E2D94024BFFB967B7C875FD8"><enum>(2)</enum><header>Rounding</header><text display-inline="yes-display-inline">If any amount as increased under paragraph (1) is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.</text></paragraph>
<paragraph id="HEAC9C8E4E334450292E83F88582C032C"><enum>(3)</enum><header>Special rule for refundable portion</header><text>In the case of the dollar amount in subsection (a)(4), paragraph (1) shall be applied—</text> <subparagraph id="HB0C5B6251C984D3585C504180B3352BD"><enum>(A)</enum><text>by substituting <quote>2025</quote> for <quote>2002</quote> in the matter preceding subparagraph (A), and</text></subparagraph>
<subparagraph id="H8020CB76DF334624AB6D08B2FE7F3BA3"><enum>(B)</enum><text>by substituting <quote>calendar year 2024</quote> for <quote>calendar year 2001</quote> in subparagraph (B) thereof. </text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H37498BBE70044EC98AFCB84163F470FD"><enum>(c)</enum><header>Exclusion of refundable portion of credit from carryforward</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/23">Section 23(c)(1)</external-xref> is amended by striking <quote>credit allowable under subsection (a)</quote> and inserting <quote>portion of the credit allowable under subsection (a) which is allowed under this subpart</quote>. </text></subsection>
<subsection id="HDDD02888C4EA42A89AEB8E33F1931FBC"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section> <section id="H8FBBBEABD1424B93925917D84EC01EE4"><enum>110108.</enum><header>Recognizing Indian tribal governments for purposes of determining whether a child has special needs for purposes of the adoption credit</header> <subsection id="H959A2A8A08A243C6B31927E8C4AB5139"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/23">Section 23(d)(3)</external-xref> is amended—</text>
<paragraph id="H565297BD94C5412E96D51266719070F3"><enum>(1)</enum><text>in subparagraph (A), by inserting <quote>or Indian tribal government</quote> after <quote>a State</quote>, and</text></paragraph> <paragraph id="HA1F3BE8497814911A5904C93FB38B2BA"><enum>(2)</enum><text>in subparagraph (B), by inserting <quote>or Indian tribal government</quote> after <quote>such State</quote>.</text></paragraph></subsection>
<subsection id="H428430298DA34F299A3A041841105137"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section> <section id="HB8ED0C7D8A53486187250017673D3320"><enum>110109.</enum><header>Scholarship granting organizations</header> <subsection id="H9CB6312AE28E43F58D55346AECDD283C"><enum>(a)</enum><header>Allowance of credit for contributions of individuals to scholarship granting organizations</header> <paragraph id="H168677BD295D41D2BDCD8541D364EB89"><enum>(1)</enum><header>In general</header><text>Subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 25E the following new section:</text>
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<section id="H000F06C029E64CF8A950AA767E1010C6"><enum>25F.</enum><header>Qualified elementary and secondary education scholarships</header>
<subsection id="HF283F1D9685A43EE87F96ABDEA08CF32"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified contributions made by the taxpayer during the taxable year.</text></subsection> <subsection id="H7E326167CF6F4CD0BC18ED0DF2640942"><enum>(b)</enum><header>Limitations</header> <paragraph id="HAD8F292C5D044279B854E6897918CE1A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed an amount equal to the greater of—</text>
<subparagraph id="H7E8125E3F4934697B71455D0156B8B80"><enum>(A)</enum><text>10 percent of the adjusted gross income of the taxpayer for the taxable year, or</text></subparagraph> <subparagraph id="HD8AA853F093E4CB283CF623686D5CE19"><enum>(B)</enum><text>$5,000.</text></subparagraph></paragraph>
<paragraph id="H8153E10C07244A0794660CACBAD350C1"><enum>(2)</enum><header>Allocation of volume cap</header><text>The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed the amount of the volume cap allocated by the Secretary to such taxpayer under subsection (g) with respect to qualified contributions made by the taxpayer during the taxable year.</text></paragraph> <paragraph id="H4ADBF186B96C44D3A3EFEF1D1CFC6CA3"><enum>(3)</enum><header>Reduction based on State credit</header><text display-inline="yes-display-inline">The amount allowed as a credit under subsection (a) for a taxable year shall be reduced by the amount allowed as a credit on any State tax return of the taxpayer for qualified contributions made by the taxpayer during the taxable year. </text></paragraph></subsection>
<subsection id="H3857D3F264994B36A99F0794DDFC61FB" commented="no"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="HD29327D9A38A4B4EB52E7C8AF9175C0C" commented="no"><enum>(1)</enum><header>Eligible student</header><text>The term <term>eligible student</term> means an individual who—</text>
<subparagraph id="H33AC1161B4B348D5B87C434B9D510153" commented="no"><enum>(A)</enum><text>is a member of a household with an income which is not greater than 300 percent of the area median gross income (as such term is used in section 42), and</text></subparagraph> <subparagraph id="H6284128F87A849AC8E541CD2BDFB423D" commented="no"><enum>(B)</enum><text>is eligible to enroll in a public elementary or secondary school.</text></subparagraph></paragraph>
<paragraph id="H9B9EBFEC1A8F46FB9AE81470912782C3" commented="no"><enum>(2)</enum><header>Qualified contribution</header><text>The term <term>qualified contribution</term> means a charitable contribution (as defined by section 170(c)) to a scholarship granting organization in the form of cash or marketable securities.</text></paragraph> <paragraph id="HA8C897AF261B4094BACF9BB7E71A243F" display-inline="no-display-inline"><enum>(3)</enum><header>Qualified elementary or secondary education expense</header><text display-inline="yes-display-inline">The term <term>qualified elementary or secondary education expense</term> means the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school:</text>
<subparagraph id="H46D2C2154BB4498586B2DC1C532DFBAA"><enum>(A)</enum><text>Tuition.</text></subparagraph> <subparagraph id="H7B5EA055147C4B60872612C6A6F59F87"><enum>(B)</enum><text>Curriculum and curricular materials.</text></subparagraph>
<subparagraph id="H7A70260BE510422DBCC47B834041AEB7"><enum>(C)</enum><text>Books or other instructional materials.</text></subparagraph> <subparagraph id="HFF3F1B70524E468597DCDEF0CAE415C7"><enum>(D)</enum><text>Online educational materials.</text></subparagraph>
<subparagraph id="H6A43584085B74854AB19EFF256888575"><enum>(E)</enum><text>Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and—</text> <clause id="HA1B7AF7E43BA44EF887FAEC984ECD2DE"><enum>(i)</enum><text>is licensed as a teacher in any State,</text></clause>
<clause id="H1C3AD85091914E3D806F282DE022DCFA"><enum>(ii)</enum><text>has taught at an eligible educational institution, or</text></clause> <clause id="H0BE0247BE68947799959483B85724A1A"><enum>(iii)</enum><text>is a subject matter expert in the relevant subject.</text></clause></subparagraph>
<subparagraph id="H29323CFF8B3343E78BEB1E4D1BA49AD6"><enum>(F)</enum><text>Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission.</text></subparagraph> <subparagraph id="H2E38D4A521B242AB80A70B064EE8E2FE"><enum>(G)</enum><text>Fees for dual enrollment in an institution of higher education.</text></subparagraph>
<subparagraph id="HC57FBDFE2C1D4CB6939A32AD6A45F83D"><enum>(H)</enum><text>Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such term shall include expenses for the purposes described in subparagraphs (A) through (H) in connection with a homeschool (whether treated as a homeschool or a private school for purposes of applicable State law). No amount paid to an elementary or secondary school shall be considered a qualified elementary or secondary education expense for the purposes of this section unless such school demonstrates that it maintains a policy whereby its admissions standards do not take into account whether the student seeking enrollment has a current individualized education plan, nor takes into account that the student requires equitable services for a learning disability, and if a student does have such an individualized education plan, the school abides by the plan’s terms and provides services outlined therein.</continuation-text></paragraph> <paragraph id="H7E4CF8D119744FE9AA44EAE32A98D8F1" commented="no"><enum>(4)</enum><header>Scholarship granting organization</header><text>The term <term>scholarship granting organization</term> means any organization—</text>
<subparagraph id="H56CE11719EEF47F480E0F5D02FEE5B12" commented="no"><enum>(A)</enum><text>which—</text> <clause id="H63CC2611C41840D69441A1901B2EA5CF" commented="no"><enum>(i)</enum><text>is described in section 501(c)(3) and exempt from tax under section 501(a), and</text></clause>
<clause id="H29C3C8FAA07B4E3FA1BCD1154048C9F5" commented="no"><enum>(ii)</enum><text>is not a private foundation,</text></clause></subparagraph> <subparagraph id="H744E345E5F76472E851C728324557F96" commented="no"><enum>(B)</enum><text>substantially all of the activities of which are providing scholarships for qualified elementary or secondary education expenses of eligible students, </text></subparagraph>
<subparagraph id="H875BE704D55F4310B9D296E43F38EC66"><enum>(C)</enum><text display-inline="yes-display-inline">which prevents the co-mingling of qualified contributions with other amounts by maintaining one or more separate accounts exclusively for qualified contributions, and</text></subparagraph> <subparagraph id="HE108AA5D124A4C85A384049D4F1CE9BE"><enum>(D)</enum><text display-inline="yes-display-inline">which either—</text>
<clause id="HB8EC4472A8C145E8AE6901C540477DD0"><enum>(i)</enum><text>meets the requirements of subsection (d), or</text></clause> <clause id="H9F5BE3A30C2142479F7A7A20D3E19E3D"><enum>(ii)</enum><text display-inline="yes-display-inline">pursuant to State law, was able (as of the date of the enactment of this section) to receive contributions that are eligible for a State tax credit if such contributions are used by the organization to provide scholarships to individual elementary and secondary students, including scholarships for attending private schools. </text></clause></subparagraph></paragraph></subsection>
<subsection id="H495DB9C3A1DA4E50AE0CC9786602CA3B"><enum>(d)</enum><header>Requirements for scholarship granting organizations</header>
<paragraph id="HADD1A292EA5F41C3AD328038412E11CA"><enum>(1)</enum><header>In general</header><text>An organization meets the requirements of this subsection if—</text> <subparagraph id="HE9C3CA917C4342CCA7E25D3759FE9E9E"><enum>(A)</enum><text>such organization provides scholarships to 2 or more students, provided that not all such students attend the same school,</text></subparagraph>
<subparagraph id="HA0737E0DC9B04D4AB400811A7417DB88"><enum>(B)</enum><text>such organization does not provide scholarships for any expenses other than qualified elementary or secondary education expenses,</text></subparagraph> <subparagraph id="HD490A77416B1466782C894E816D0823C"><enum>(C)</enum><text>such organization provides a scholarship to eligible students with a priority for—</text>
<clause id="HB06F7CCDFB7B4860B5AC2D6320C43D37"><enum>(i)</enum><text>students awarded a scholarship the previous school year, and</text></clause> <clause id="H5E76C2661EA74067B39A3C4057A28E04"><enum>(ii)</enum><text>after application of clause (i), any such students who have a sibling who was awarded a scholarship from such organization,</text></clause></subparagraph>
<subparagraph id="HA8CD24398BBA41FC9F0174EFDBE6A471"><enum>(D)</enum><text>such organization does not earmark or set aside contributions for scholarships on behalf of any particular student,</text></subparagraph> <subparagraph id="H618EF6960A9D4F4D8D26A6B569D9CCE5"><enum>(E)</enum><text>such organization takes appropriate steps to verify the annual household income and family size of eligible students to whom it awards scholarships, and limits them to a member of a household for which the income does not exceed the amount established under subsection (c)(1)(A),</text></subparagraph>
<subparagraph id="H7AF76656E6EA468493FA5C14C060D134"><enum>(F)</enum><text>such organization—</text> <clause id="H3FC9245ECB9D4180A2F2F9A862B04DAC"><enum>(i)</enum><text>obtains from an independent certified public accountant annual financial and compliance audits, and</text></clause>
<clause id="H895F2081AD194D45B956CEA2A47666F7"><enum>(ii)</enum><text>certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that the audit described in clause (i) has been completed, and</text></clause></subparagraph> <subparagraph id="HF47BA1AEDA754FF6BC00797F2A7347E4"><enum>(G)</enum><text>no officer or board member of such organization has been convicted of a felony.</text></subparagraph></paragraph>
<paragraph id="HFD26BC7787E7440282D681D7ECE3171D"><enum>(2)</enum><header>Income verification</header><text>For purposes of paragraph (1)(E), review of all of the following (as applicable) shall be treated as satisfying the requirement to take appropriate steps to verify annual household income:</text> <subparagraph id="H0891DF48627248E79F6E36630E73BE4A"><enum>(A)</enum><text display-inline="yes-display-inline">Federal and State income tax returns or tax return transcripts with applicable schedules for the taxable year prior to application.</text></subparagraph>
<subparagraph id="H14A359C017AD4E0B9E8B69E2E79DB0A6"><enum>(B)</enum><text>Income reporting statements for tax purposes or wage and income transcripts from the Internal Revenue Service.</text></subparagraph> <subparagraph id="H8E62B0E9053D42B9A47CF7D963E665B4"><enum>(C)</enum><text>Notarized income verification letter from employers.</text></subparagraph>
<subparagraph id="H5D5467902FE14E8690D448853BAF23A2"><enum>(D)</enum><text>Unemployment or workers compensation statements.</text></subparagraph> <subparagraph id="H2DE8786B458D4D4386AF649F1FF34B4E"><enum>(E)</enum><text>Budget letters regarding public assistance payments and Supplemental Nutrition Assistance Program (SNAP) payments including a list of household members.</text></subparagraph></paragraph>
<paragraph id="HD52150E2270C45D197E775869724A009"><enum>(3)</enum><header>Independent certified public accountant</header><text>For purposes of paragraph (1)(F), the term <term>independent certified public accountant</term> means, with respect to an organization, a certified public accountant who is not a person described in section 465(b)(3)(A) with respect to such organization or any employee of such organization.</text></paragraph> <paragraph id="H03D30130782342D4AAB142536F50BAC6"><enum>(4)</enum><header>Prohibition on self-dealing</header> <subparagraph id="H2BE356219845437CAD3F58D34753D606"><enum>(A)</enum><header>In general</header><text>A scholarship granting organization may not award a scholarship to any disqualified person.</text></subparagraph>
<subparagraph id="H55F7E50C53024B91B8075E92709B06F9"><enum>(B)</enum><header>Disqualified person</header><text>For purposes of this paragraph, a disqualified person shall be determined pursuant to rules similar to the rules of section 4946.</text></subparagraph></paragraph></subsection> <subsection id="HA040892B0E154492AA6168BF3CC6808F"><enum>(e)</enum><header>Denial of double benefit</header><text>Any qualified contribution for which a credit is allowed under this section shall not be taken into account as a charitable contribution for purposes of section 170.</text></subsection>
<subsection id="HABAFAB8A33A24C38BE07C0D404313D8B"><enum>(f)</enum><header>Carryforward of unused credit</header>
<paragraph id="HBC3A109F3919422B87BB63458D259E86"><enum>(1)</enum><header>In general</header><text>If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section, section 23, and section 25D), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.</text></paragraph> <paragraph id="HB96B98AF26134D729AB90528CD82CE5D"><enum>(2)</enum><header>Limitation</header><text>No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis.</text></paragraph></subsection>
<subsection id="H6C4FA891EBEF486BADCA8E38EB53455F" display-inline="no-display-inline"><enum>(g)</enum><header>Volume cap</header>
<paragraph id="HB461B0423A284076B1DB4B2CA9F36A49" commented="no"><enum>(1)</enum><header>In general</header><text>The volume cap applicable under this section shall be $5,000,000,000 for each of calendar years 2026 through 2029, and zero for calendar years thereafter. Such amount shall be allocated by the Secretary as provided in paragraph (2) to taxpayers with respect to qualified contributions made by such taxpayers, except that 10 percent of such amount shall be divided evenly among the States, and shall be available with respect to individuals residing in such States.</text></paragraph> <paragraph id="H5069D97FC8A047288B7681458DB7AE13" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>First-come, first-serve</header><text>For purposes of applying the volume cap under this section, such volume cap for any calendar year shall be allocated by the Secretary on a first-come, first-serve basis, as determined based on the time (during such calendar year) at which the taxpayer made the qualified contribution with respect to which the allocation is made. The Secretary shall not make any allocation of volume cap for any calendar year after December 31 of such calendar year.</text></paragraph>
<paragraph id="H8BCB08299FD84E5BB0706829D05E28CE"><enum>(3)</enum><header>Real-time information</header><text>For purposes of this section, the Secretary shall develop a system to track the amount of qualified contributions made during the calendar year for which a credit may be claimed under this section, with such information to be updated in real time. </text></paragraph> <paragraph id="H051170442D4C4559B06F5A6C13BF1FAE"><enum>(4)</enum><header>Annual increases</header> <subparagraph id="H57AD2707DD2F4888AA8D10FE98BAA3F6"><enum>(A)</enum><header>In general</header><text>In the case of the calendar year after a high-use calendar year, the dollar amount otherwise in effect under paragraph (1) for such calendar year shall be equal to 105 percent of the dollar amount in effect for such high-use calendar year.</text></subparagraph>
<subparagraph id="H9079198B480746208783974A4C8E4645"><enum>(B)</enum><header>High-use calendar year</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>high-use calendar year</quote> means any calendar year for which 90 percent or more of the volume cap in effect for such calendar year under paragraph (1) is allocated to taxpayers.</text></subparagraph> <subparagraph id="H733C17F7BFEA4C9381AE09FF43103D93"><enum>(C)</enum><header>Prevention of decreases in annual volume cap</header><text display-inline="yes-display-inline">The volume cap in effect under paragraph (1) for any calendar year shall not be less than the volume cap in effect under such paragraph for the preceding calendar year.</text></subparagraph>
<subparagraph id="H1C3414D779CA4A5D8BB7DEB790AB3E55"><enum>(D)</enum><header>Publication of annual volume cap</header><text display-inline="yes-display-inline">The Secretary shall make publicly available the dollar amount of the volume cap in effect under paragraph (1) for each calendar year.</text></subparagraph></paragraph> <paragraph id="H2CF5D6D6042B453F91B3E00D6F20B075"><enum>(5)</enum><header>States</header><text>For purposes of this subsection, the term <quote>State</quote> includes the District of Columbia.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H3C6CF53383E24E7B9786426959C63822"><enum>(2)</enum><header>Conforming amendments</header>
<subparagraph id="H900CB3C5A32343F7922C6524749C9F3B"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25">Section 25(e)(1)(C)</external-xref> is amended by striking <quote>and 25D</quote> and inserting <quote>25D, and 25F</quote>. </text></subparagraph> <subparagraph id="HADB10236BAD04A83A80135F3992AD6BD"><enum>(B)</enum><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 25E the following new item:</text>
<quoted-block style="OLC" id="H0F69FA75EE114248B06BC34E80D30F2C">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 25F. Qualified elementary and secondary education scholarships.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="HD64100F19F39426A9C0D1EA715B9ABB1" display-inline="no-display-inline"><enum>(b)</enum><header>Exemption from gross income for scholarships for qualified elementary or secondary education expenses of eligible students</header>
<paragraph id="H3D64492CAEFF49F1B8947A39A9C31492"><enum>(1)</enum><header>In general</header><text>Part III of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting before section 140 the following new section: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="HFAE8FBE8BCE848928D973529E2463C3C"> <section id="H0417D8F6134342AC859F9F09B9F1BE87"><enum>139J.</enum><header>Scholarships for qualified elementary or secondary education expenses of eligible students</header> <subsection id="HC5C23A63D0214BF9AB7DBA67B25187DF"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an individual, gross income shall not include any amounts provided to any dependent of such individual pursuant to a scholarship for qualified elementary or secondary education expenses of an eligible student which is provided by a scholarship granting organization.</text></subsection>
<subsection id="HE3C13A7005B3446E97C832FE5C43688E"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section, the terms <term>qualified elementary or secondary education expense</term>, <term>eligible student</term>, and <term>scholarship granting organization</term> have the same meaning given such terms under section 25F(c).</text></subsection> <subsection id="H4BC8630114694E6FA68AD4D862BE50FB"><enum>(c)</enum><header>Termination</header><text>Subsection (a) shall not apply to amounts received after December 31, 2029.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HE44C33120B7E45179F1CA8E79FC45906"><enum>(2)</enum><header>Conforming amendment</header><text>The table of sections for part III of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting before the item relating to section 140 the following new item:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HF66F65FC8E48467AACC873901CBB4812"> <toc> <toc-entry level="section" bold="off">Sec. 139J. Scholarships for qualified elementary or secondary education expenses of eligible students.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H7893C483FDE54207AACC9FC13E1FD7F3"><enum>(c)</enum><header>Failure of scholarship granting organizations to make distributions</header> <paragraph id="HD3AE846FD82B457B89CC7153F68F0BE7"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/42">Chapter 42</external-xref> is amended by adding at the end the following new subchapter:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H93ADC0A030334E17ACBFCFE9AB7ABA9A">
<subchapter id="H5529A63CF1A24BBCA20C71652760678C"><enum>I</enum><header>Scholarship Granting Organizations</header>
<toc container-level="subchapter-container" quoted-block="no-quoted-block" lowest-level="section" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded" idref="H5529A63CF1A24BBCA20C71652760678C">
<toc-entry level="section" idref="HDD6966241550445B9B84EDD57A4C8616">Sec. 4969. Failure to distribute receipts.</toc-entry></toc>
<section id="HDD6966241550445B9B84EDD57A4C8616"><enum>4969.</enum><header>Failure to distribute receipts</header>
<subsection id="H5758586AB63B423CA25EE37953D55BE1"><enum>(a)</enum><header>In general</header><text>In the case of any scholarship granting organization (as defined in section 25F) which has been determined by the Secretary to have failed to satisfy the requirement under subsection (b) for any taxable year, any contribution made to such organization during the first taxable year beginning after the date of such determination shall not be treated as a qualified contribution (as defined in section 25F(c)(2)) for purposes of section 25F. </text></subsection> <subsection id="H27C9334C90C74C4D94140DFFCB29E15E"><enum>(b)</enum><header>Requirement</header><text>The requirement described in this subsection is that the amount of receipts of the scholarship granting organization for the taxable year which are distributed before the distribution deadline with respect to such receipts shall not be less than the required distribution amount with respect to such taxable year.</text></subsection>
<subsection id="H7A0B2B795D4A4C7288779C8A2358F63C"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="HF0464BA5193A47589E060714678A309B"><enum>(1)</enum><header>Required distribution amount</header> <subparagraph id="HA494FCB42ADC446AA649D9A464AB06DA"><enum>(A)</enum><header>In general</header><text>The required distribution amount with respect to a taxable year is the amount equal to 100 percent of the total receipts of the scholarship granting organization for such taxable year—</text>
<clause id="HB458471D482C4F0FB57FB5958026B50A"><enum>(i)</enum><text>reduced by the sum of such receipts that are retained for reasonable administrative expenses for the taxable year or are carried to the succeeding taxable year under subparagraph (C), and</text></clause> <clause id="H46CC082E40F043978FDB64493430AE7F"><enum>(ii)</enum><text>increased by the amount of the carryover under subparagraph (C) from the preceding taxable year.</text></clause></subparagraph>
<subparagraph id="HF429C1D1AB3C4EE1A74586DBFDC17F2C"><enum>(B)</enum><header>Safe harbor for reasonable administrative expenses</header><text>For purposes of subparagraph (A)(i), if the percentage of total receipts of a scholarship granting organization for a taxable year which are used for administrative purposes is equal to or less than 10 percent, such expenses shall be deemed to be reasonable for purposes of such subparagraph.</text></subparagraph> <subparagraph id="H6771CAF2762A4CE1BC8D0CA2C1488DC5"><enum>(C)</enum><header>Carryover</header><text>With respect to the amount of the total receipts of a scholarship granting organization with respect to any taxable year, an amount not greater than 15 percent of such amount may, at the election of such organization, be carried to the succeeding taxable year. </text></subparagraph></paragraph>
<paragraph id="HA5F73E4C6A8F4FC59C7F35C94EA0AFBC"><enum>(2)</enum><header>Distributions</header><text>The term <term>distribution</term> includes amounts which are formally committed but not distributed. A formal commitment described in the preceding sentence may include contributions set aside for eligible students for more than one year. </text></paragraph> <paragraph id="H4EDF65CE33524AC2911E94321667E5F2"><enum>(3)</enum><header>Distribution deadline</header><text>The distribution deadline with respect to receipts for a taxable year is the first day of the third taxable year following the taxable year in which such receipts are received by the scholarship granting organization.</text></paragraph></subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H40F71AAAA2924EEAAE7BC557B930F7CB"><enum>(2)</enum><header>Clerical amendment</header><text>The table of subchapters for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/42">chapter 42</external-xref> is amended by adding at the end the following new item:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HF1965D7C958B4EBD8F5B947A8399D7A4"> <toc regeneration="no-regeneration"> <toc-entry level="subchapter">Subchapter I—Scholarship Granting Organizations</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H0631B1C4E8A7497796FA45B8E04B8EB8" display-inline="no-display-inline"><enum>(d)</enum><header>Effective date</header> <paragraph id="H2C92D317182A421991F98207A5846813"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2025.</text></paragraph>
<paragraph id="H1C3E79BF6DC94AA9A953DFE8BC26987D" display-inline="no-display-inline"><enum>(2)</enum><header>Exemption from gross income</header><text>The amendments made by subsection (b) shall apply to amounts received after December 31, 2025, in taxable years ending after such date.</text></paragraph></subsection> <subsection id="H4FCFF98E3D0D45178AC11430C41849BD" display-inline="no-display-inline"><enum>(e)</enum><header>Organizational and parental autonomy</header> <paragraph id="HCA654082AE144F42B064086FC5A3927B"><enum>(1)</enum><header>Prohibition of control over scholarship organizations</header> <subparagraph id="H5D018B5733D249239FBD0F69BD9DD080"><enum>(A)</enum><header>In general</header> <clause id="HE9EE23ECFC644C70B3B67189F92D4ECC"><enum>(i)</enum><header>Treatment</header><text>A scholarship granting organization shall not, by virtue of participation under any provision of this section or any amendment made by this section, be regarded as acting on behalf of any governmental entity.</text></clause>
<clause id="HF11D11A0C5484D4E8E9B172382C4F496"><enum>(ii)</enum><header>No governmental control</header><text>Nothing in this section, or any amendment made by this section, shall be construed to permit, allow, encourage, or authorize any Federal, State, or local government entity, or officer or employee thereof, to mandate, direct, or control any aspect of any scholarship granting organization. </text></clause> <clause id="H03C73ED443BE4DB79BDD4CE4FDD628E1"><enum>(iii)</enum><header>Maximum freedom</header><text>To the extent permissible by law, this section, and any amendment made by this section, shall be construed to allow scholarship granting organizations maximum freedom to provide for the needs of the participants without governmental control.</text></clause></subparagraph>
<subparagraph id="H20AFA5AB1E2E467FAE1BDFC9A6780CB6"><enum>(B)</enum><header>Prohibition of control over non-public schools</header>
<clause id="H4F6A4DB3E4404E1A9804AB44CAF0A343"><enum>(i)</enum><header>No governmental control</header><text>Nothing in this section, or any amendment made by this section, shall be construed to permit, allow, encourage, or authorize any Federal, State, or local government entity, or officer or employee thereof, to mandate, direct, or control any aspect of any private or religious elementary or secondary education institution.</text></clause> <clause id="HF925E5A8FE0240FE9D6587EEA7F7AB1A"><enum>(ii)</enum><header>No exclusion of private or religious schools</header><text>No Federal, State, or local government entity, or officer or employee thereof, shall impose or permit the imposition of any conditions or requirements that would exclude or operate to exclude educational expenses at private or religious elementary and secondary education institutions from being considered qualified elementary or secondary education expenses.</text></clause>
<clause id="H74C0EE37BC9F4882B2AF174596730858"><enum>(iii)</enum><header>No exclusion of qualified expenses due to institution's religious character or affiliation</header><text>No Federal, State, or local government entity, or officer or employee thereof, shall exclude, discriminate against, or otherwise disadvantage any elementary or secondary education institution with respect to qualified elementary or secondary education expenses at that institution based in whole or in part on the institution’s religious character or affiliation, including religiously based or mission-based policies or practices.</text></clause></subparagraph> <subparagraph id="H4061A1AE56CE413A93F2C7C51FC92231"><enum>(C)</enum><header>Parental rights to use scholarships</header><text>No Federal, State, or local government entity, or officer or employee thereof, shall disfavor or discourage the use of scholarships granted by participating scholarship granting organizations for qualified elementary or secondary education expenses at private or nonprofit elementary and secondary education institutions, including faith-based schools.</text></subparagraph>
<subparagraph id="H3379BBB520E9457D886CC063B3910084"><enum>(D)</enum><header>Parental right to intervene</header><text>In any action filed in any State or Federal court which challenges the constitutionality (under the constitution of such State or the Constitution of the United States) of any provision of this section (or any amendment made by this section), any parent of an eligible student who has received a scholarship from a scholarship granting organization shall have the right to intervene in support of the constitutionality of such provision or amendment. To avoid duplication of efforts and reduce the burdens placed on the parties to the action, the court in any such action may require interveners taking similar positions to file joint papers or to be represented by a single attorney at oral argument, provided that the court does not require such interveners to join any brief filed on behalf of any State which is a defendant in such action.</text></subparagraph></paragraph> <paragraph id="H9EB4F8CC63DC407C900E4449715E30EB"><enum>(2)</enum><header>Definitions</header><text>For purposes of this subsection, the terms <term>eligible student</term>, <term>scholarship granting organization</term>, and <term>qualified elementary or secondary education expense</term> shall have the same meanings given such terms under <external-xref legal-doc="usc" parsable-cite="usc/26/25F">section 25F(c)</external-xref> of the Internal Revenue Code of 1986 (as added by this Act). </text></paragraph></subsection></section>
<section id="H4C9582195CC8418E9430BFF62426B774" section-type="subsequent-section"><enum>110110.</enum><header>Additional elementary, secondary, and home school expenses treated as qualified higher education expenses for purposes of 529 accounts</header>
<subsection id="H8103BDFBDAD64D56BBD0F7767B617C96"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/529">Section 529(c)(7)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H636887F315EC467883CF1D58870C3D28"> <paragraph id="H3F601455A544469E96763CF3D6C627E6"><enum>(7)</enum><header>Treatment of elementary and secondary tuition</header><text>Any reference in this section to the term <term>qualified higher education expense</term> shall include a reference to the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school:</text>
<subparagraph id="H9480DF33CB4C4C82A6558E4E6376F989"><enum>(A)</enum><text>Tuition.</text></subparagraph> <subparagraph id="H9DF139C8ADB94E25ACA30EB08D182CED"><enum>(B)</enum><text>Curriculum and curricular materials.</text></subparagraph>
<subparagraph id="H2A537675924B498C81967E482522F725"><enum>(C)</enum><text>Books or other instructional materials.</text></subparagraph> <subparagraph id="H28AD05D55F014314B541B47AB61151B3"><enum>(D)</enum><text>Online educational materials.</text></subparagraph>
<subparagraph id="H68DD14A9A17144E88BD2D9FD300D6C48"><enum>(E)</enum><text>Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and—</text> <clause id="HF49F3278740D454982374DA71BE6734B"><enum>(i)</enum><text>is licensed as a teacher in any State,</text></clause>
<clause id="H8F9AF273F7D04D9FBE313E2D6EECD4C4"><enum>(ii)</enum><text>has taught at an eligible educational institution, or</text></clause> <clause id="H46CDC3DEF5D04CD7AE9B87B137B4EB7E"><enum>(iii)</enum><text>is a subject matter expert in the relevant subject.</text></clause></subparagraph>
<subparagraph id="HEF7EC80D7D244B4D912CE2A8F3A58537"><enum>(F)</enum><text>Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission.</text></subparagraph> <subparagraph id="H19F5F320C8E34001AD5F5FF2DE113632"><enum>(G)</enum><text>Fees for dual enrollment in an institution of higher education.</text></subparagraph>
<subparagraph id="HD4C3A272CAA04BA18244464F99C2EA62"><enum>(H)</enum><text>Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such term shall include expenses for the purposes described in subparagraphs (A) through (H) in connection with a homeschool (whether treated as a homeschool or a private school for purposes of applicable State law).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H54CB19AB4E10416C995B1E1D4EBCE556"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.</text></subsection></section>
<section section-type="subsequent-section" id="HD1618A93C89C422891AE9D325638E2DB"><enum>110111.</enum><header>Certain postsecondary credentialing expenses treated as qualified higher education expenses for purposes of 529 accounts</header>
<subsection id="HAC1E815034A147BDBDDA31516CE9CAEB"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/529">Section 529(e)(3)</external-xref> is amended by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="HB80702EC85E04247940E571159E4D773"> <subparagraph id="HB28666A03AEA410592B9F4650AA99C8C"><enum>(C)</enum><header>Certain postsecondary credentialing expenses</header><text display-inline="yes-display-inline">The term <term>qualified higher education expenses</term> includes qualified postsecondary credentialing expenses (as defined in subsection (f)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HB6862FAEB3B94E819ACFAEF58FB21F6D"><enum>(b)</enum><header>Qualified postsecondary credentialing expenses</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/529">Section 529</external-xref> is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:</text> <quoted-block style="OLC" id="H48B61C368A844A3CB8DEF148631A1460" display-inline="no-display-inline"> <subsection id="H4A37C6976165496A9EB07B7A14C5F9FC"><enum>(f)</enum><header>Qualified postsecondary credentialing expenses</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph id="HD4E7CB38BBA241E9A23F4F1BF936B688"><enum>(1)</enum><header>In general</header><text>The term <quote>qualified postsecondary credentialing expenses</quote> means—</text> <subparagraph id="HD23D8B67F94246C69D40F16CA46AD672"><enum>(A)</enum><text display-inline="yes-display-inline">tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in a recognized postsecondary credential program, or any other expense incurred in connection with enrollment in or attendance at a recognized postsecondary credential program if such expense would, if incurred in connection with enrollment or attendance at an eligible educational institution, be covered under subsection (e)(3)(A), </text></subparagraph>
<subparagraph id="H729D3E524F414781831F93C4B30EB415"><enum>(B)</enum><text display-inline="yes-display-inline">fees for testing if such testing is required to obtain or maintain a recognized postsecondary credential, and </text></subparagraph> <subparagraph id="HD42DF611D3DC4348869F62C626EC5B91"><enum>(C)</enum><text display-inline="yes-display-inline">fees for continuing education if such education is required to maintain a recognized postsecondary credential.</text></subparagraph></paragraph>
<paragraph id="H5673508B806A472DA88600A6E942BB01"><enum>(2)</enum><header>Recognized postsecondary credential program</header><text>The term <quote>recognized postsecondary credential program</quote> means any program to obtain a recognized postsecondary credential if—</text> <subparagraph id="HC8968EF6EF994972B1B574659C2D03B8"><enum>(A)</enum><text>such program is included on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/29/3152">29 U.S.C. 3152(d)</external-xref>),</text></subparagraph>
<subparagraph id="H3606BFFFF00B44A9B0F260DE2CF5D1CF"><enum>(B)</enum><text>such program is listed in the WEAMS Public directory (or successor directory) maintained by the Department of Veterans Affairs,</text></subparagraph> <subparagraph id="H4F8B45F24D14408E86FE5E1C2B6101B8"><enum>(C)</enum><text display-inline="yes-display-inline">an examination (developed or administered by an organization widely recognized as providing reputable credentials in the occupation) is required to obtain or maintain such credential and such organization recognizes such program as providing training or education which prepares individuals to take such examination, or</text></subparagraph>
<subparagraph id="H25960EBA4C674DBF9A372243DE282742" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">such program is identified by the Secretary, after consultation with the Secretary of Labor, as being a reputable program for obtaining a recognized postsecondary credential for purposes of this subsection.</text></subparagraph></paragraph> <paragraph id="HD5856ED74C684EC9B9E8628ECD1F2491"><enum>(3)</enum><header>Recognized postsecondary credential</header><text>The term <quote>recognized postsecondary credential</quote> means—</text>
<subparagraph id="H7AC41F917381475C8E5F61435F594906"><enum>(A)</enum><text>any postsecondary employment credential that is industry recognized, including—</text> <clause id="H669A73DABD2446168B4831D613910810"><enum>(i)</enum><text>any postsecondary employment credential issued by a program that is accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute,</text></clause>
<clause id="HC15DA71480344FA3A29D619C3480E57E"><enum>(ii)</enum><text>any postsecondary employment credential that is included in the Credentialing Opportunities On-Line (COOL) directory of credentialing programs (or successor directory) maintained by the Department of Defense or by any branch of the Armed Services, and</text></clause> <clause id="H525ACCCFE46C4E7E9795CF1B964E8E8D"><enum>(iii)</enum><text>any postsecondary employment credential identified for purposes of this clause by the Secretary, after consultation with the Secretary of Labor, as being industry recognized,</text></clause></subparagraph>
<subparagraph id="H190CB98074E345DCA095893AB245B0E4"><enum>(B)</enum><text>any certificate of completion of an apprenticeship that is registered and certified with the Secretary of Labor under the National Apprenticeship Act (<external-xref legal-doc="usc" parsable-cite="usc/29/50">29 U.S.C. 50</external-xref>),</text></subparagraph> <subparagraph id="H9F6DE65CECAF448A967B3FE4CDA79D6A"><enum>(C)</enum><text>any occupational or professional license issued or recognized by a State or the Federal Government (and any certification that satisfies a condition for obtaining such a license), and</text></subparagraph>
<subparagraph id="H3D711E859C9F43A9BD3B8D8A9EF56358"><enum>(D)</enum><text>any recognized postsecondary credential as defined in section 3 of the Workforce Innovation and Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/29/3102">29 U.S.C. 3102</external-xref>).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H658B29AB8AA04D92B27C0138AC079370"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.</text></subsection></section>
<section id="HB1D533552A4D42CCA8DF4653A8CE3FE8" section-type="subsequent-section"><enum>110112.</enum><header>Reinstatement of partial deduction for charitable contributions of individuals who do not elect to itemize</header>
<subsection id="HF1A90A76272848DCAD5375179D251C9C"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/170">Section 170(p)</external-xref> is amended—</text> <paragraph id="HA09ABEEB834747E3AF87DC4F3511EE88"><enum>(1)</enum><text>by striking <quote>$300 ($600</quote> and inserting <quote>$150 ($300</quote>, and </text></paragraph>
<paragraph id="H16356C99330D4F6EB1C293EBD9ABE9C6"><enum>(2)</enum><text>by striking <quote>in 2021</quote> and inserting <quote>after December 31, 2024, and before January 1, 2029</quote>.</text></paragraph></subsection> <subsection id="HDB7830D35FAD4BC8B85AC7CB883DB7A3"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024. </text></subsection></section>
<section id="H2DBAEDE680EC4549A306E22900C94402" section-type="subsequent-section"><enum>110113.</enum><header>Exclusion for certain employer payments of student loans under educational assistance programs made permanent and adjusted for inflation</header>
<subsection id="H0D8A09CB655E48CDA5CA19F233940C53"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/127">Section 127(c)(1)(B)</external-xref> is amended by striking <quote>in the case of payments made before January 1, 2026,</quote>.</text></subsection> <subsection id="HE9633026DB9E40438DB49F1EB58165B4"><enum>(b)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/127">Section 127</external-xref> is amended—</text>
<paragraph id="H6CA7810C8B6A4DF6A6D87C241A01DC83"><enum>(1)</enum><text>by redesignating subsection (d) as subsection (e), and</text></paragraph> <paragraph id="H5C06628877FA4786887500227ED9CEDD"><enum>(2)</enum><text>by inserting after subsection (c) the following new subsection:</text>
<quoted-block style="OLC" id="HB1202B02CAD7484CAB382ACD59AB37A0" display-inline="no-display-inline">
<subsection id="HB5CF75B324CE46A7983AEDBC5F0F19EB"><enum>(d)</enum><header>Inflation adjustment</header>
<paragraph id="HD3375E65E18D4C00B973C49A4A02B902"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall be increased by an amount equal to—</text> <subparagraph id="H23ACCD81ED6A4B3FB435C26EAEB56CFF"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph>
<subparagraph id="H58AF5BF97460400B9FF448B573A8702B"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2025</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subparagraph></paragraph> <paragraph id="H2941BCED73D44EB09373A44AABBA9454"><enum>(2)</enum><header>Rounding</header><text>If any increase under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HAB1AA1EA513C44AA8A2DE3DBAA48E15D"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to payments made after December 31, 2025.</text></subsection></section> <section id="H0E1F50A9435041289BFA9AA3C25B1D76"><enum>110114.</enum><header>Extension of rules for treatment of certain disaster-related personal casualty losses</header><text display-inline="no-display-inline">For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of <external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref>), section 301 of such Act shall be applied by substituting the date of the enactment of this section for <quote>the date of the enactment of this Act</quote> each place it appears.</text></section>
<section section-type="subsequent-section" id="HB3B7DB6D06AB43479AA9F3714A5F906F"><enum>110115.</enum><header>Trump accounts</header>
<subsection id="H91B8FBB1CC9843FBBD06B30F55D6A9B7"><enum>(a)</enum><header>In general</header><text>Subchapter F of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new part:</text> <quoted-block id="H656639DE77FE4C09BBE25165AA4EAC0E"> <part id="H74430F76F99F4EEAA08E226EDB648978"><enum>IX</enum><header>Trump accounts</header> <section id="H6DC01B5430B24C1AB694D75488AFA7A2"><enum>530A.</enum><header>Trump accounts</header> <subsection id="H93D66A1D50174A82A358B0EF10226735"><enum>(a)</enum><header>General rule</header><text display-inline="yes-display-inline">A Trump account shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, such account shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations).</text></subsection>
<subsection id="H593F4A7931EA4AD1A3530161EE030F5B"><enum>(b)</enum><header>Trump account</header><text>For purposes of this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="H4299F3EF214D4B949D3CF41315667937"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>Trump account</quote> means a trust created or organized in the United States for the exclusive benefit of an individual and which is designated (in such manner as the Secretary shall prescribe) at the time of the establishment of the trust as a Trump account, but only if the written governing instrument creating the trust meets the following requirements:</text>
<subparagraph id="HF163BEE0841A490AAC861DD36F7DD5AB"><enum>(A)</enum><text>The individual establishing the account shall provide to the trustee the social security number of such individual and of the account beneficiary.</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HF10A5DAAB9ED4303A47770F82F06400A"><enum>(B)</enum><text display-inline="yes-display-inline">Except in the case of a qualified rollover contribution described in subsection (e), no contribution will be accepted—</text>
<clause id="HA23000863C8B44A6AC7564CF0A821F48"><enum>(i)</enum><text>before January 1, 2026,</text></clause> <clause commented="no" display-inline="no-display-inline" id="HE8689495A85D41F8A630AEEAFF82DAA9"><enum>(ii)</enum><text display-inline="yes-display-inline">unless it is in cash,</text></clause>
<clause id="HB8BDF62028654B8798C7E2ACFD13139F"><enum>(iii)</enum><text>unless the account beneficiary has not attained age 18, and</text></clause> <clause id="H0C0418A6BE2643C7AB382E1D821C06E3"><enum>(iv)</enum><text>if such contribution would result in aggregate contributions for the taxable year exceeding the contribution limit specified in subsection (c)(1).</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HDA548AD874EE48A4878F968102A9ACE8"><enum>(C)</enum><text>No distribution (other than a distribution of a qualified rollover contribution) will be allowed—</text> <clause id="H0F77CBD3B1324EF2BBD5AF49138F0A93"><enum>(i)</enum><text>before the date on which the account beneficiary attains age 18, or</text></clause>
<clause id="H37784F1954F24719BF6BE0F77CC10CB1"><enum>(ii)</enum><text>in the case of such an account the account beneficiary of which has not attained age 25, if the aggregate distributions from such account exceeds the amount that is <fraction>½</fraction> the cash equivalent value of the account on the date on which the account beneficiary attains age 18.</text></clause></subparagraph> <subparagraph id="H4245A56A25394F77989DF094E2915B08"><enum>(D)</enum><text>The account beneficiary has not attained age 8 on the date of the establishment of the account.</text></subparagraph>
<subparagraph id="H107878C39F1C4C2691A45B4FDBFB3950"><enum>(E)</enum><text>The trustee is a bank (as defined in section 408(n)) or another person who demonstrates to the satisfaction of the Secretary that the manner in which that person will administer the trust will be consistent with the requirements of this section or who has so demonstrated with respect to any individual retirement plan.</text></subparagraph> <subparagraph id="H49DC62A7207E4A6E95F3C2F530CD7EDB"><enum>(F)</enum><text>The interest of an individual in the balance of his account is nonforfeitable.</text></subparagraph>
<subparagraph id="H1504C0B6C7DE4779989EA0062223C6A3"><enum>(G)</enum><text>The assets of the trust shall not be commingled with other property except in a common trust fund or common investment fund.</text></subparagraph> <subparagraph commented="no" id="H56D0CD4920534500BC049FDB3F8D6576"><enum>(H)</enum><text>No part of the trust funds will be invested in any asset other than eligible investments.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HCBB8629A663F4085A9C0CD6582E2E79E"><enum>(2)</enum><header>Eligible investments</header><text display-inline="yes-display-inline">The term <term>eligible investments</term> means stock of a regulated investment company (within the meaning of section 851) which—</text> <subparagraph id="HB80921BC7A0B423687B53CA883ACFAC6"><enum>(A)</enum><text>tracks a well-established index of United States equities (or which invests in an equivalent diversified portfolio of United States equities),</text></subparagraph>
<subparagraph id="H6AD035EF381A458794ACFFF27BAD2F46"><enum>(B)</enum><text>does not use leverage,</text></subparagraph> <subparagraph id="H90C79F6027BE4BC1AD5F653BAB810F31"><enum>(C)</enum><text>minimizes fees and expenses, and</text></subparagraph>
<subparagraph id="H6D34CDCE32974D40B75B047E7E20DA43"><enum>(D)</enum><text>meets such other criteria as the Secretary determines appropriate for purposes of this section.</text></subparagraph></paragraph> <paragraph id="H60A5E7B239C4480CB636C90034479AB1" display-inline="no-display-inline"><enum>(3)</enum><header>Account beneficiary</header><text display-inline="yes-display-inline">The term <quote>account beneficiary</quote> means the individual on whose behalf the Trump account was established.</text></paragraph></subsection>
<subsection id="HBAA1F0BDA69A420EA39D70A1230F0C89"><enum>(c)</enum><header>Treatment of contributions</header>
<paragraph id="H235661809D274C6AA0F72BB8068C7DFB"><enum>(1)</enum><header>Contribution limit</header><text>The contribution limit for any taxable year is $5,000.</text></paragraph> <paragraph id="HEFB98F3DBF7B48AC84C61349B789AEE1"><enum>(2)</enum><header>Contributions from tax exempt sources and rollover contributions</header><text display-inline="yes-display-inline">The amount contributed to a Trump account for purposes of paragraph (1) shall be determined without regard to—</text>
<subparagraph id="HD7A174729577477688697913E5D63B97"><enum>(A)</enum><text>a qualified rollover contribution,</text></subparagraph> <subparagraph id="HE973CA82E79945E7B722F8F0168F619F"><enum>(B)</enum><text>any contribution from the Federal Government or any State, local, or tribal government, or</text></subparagraph>
<subparagraph id="H0C03A4B547444122BFF6B5D229F3181D"><enum>(C)</enum><text>any contribution made through the program established under subsection (l).</text></subparagraph></paragraph> <paragraph commented="no" id="H7F38D21A0CA74E63BC524464945CE2F7"><enum>(3)</enum><header>Cost-of-living adjustment</header> <subparagraph commented="no" id="HDB86C3BBE1FB4B0694728023B0E703E8"><enum>(A)</enum><header>In general</header><text>In the case of any taxable year beginning in a calendar year after 2026, the $5,000 amount under paragraph (1) shall be increased by an amount equal to—</text>
<clause commented="no" id="H56A63D38EC1845339AF380CEA407E6BB"><enum>(i)</enum><text>such dollar amount, multiplied by</text></clause> <clause commented="no" id="HD8299A645A534577AD659F9A09138CC3"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting <quote>calendar year 2025</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H59FD6768325A42059C90778DB57B694B"><enum>(B)</enum><header>Rounding</header><text>If any increase under subparagraph (A) is not a multiple of $100, such amount shall be rounded to the next lower multiple of $100.</text></subparagraph></paragraph></subsection> <subsection id="H3C781659C02540A8B18DFD1E9CCA4DA3"><enum>(d)</enum><header>Distributions</header> <paragraph id="HA643873733794A6E9E8EAB65E54DA08E"><enum>(1)</enum><header>Amounts allocable to investment in the contract</header><text display-inline="yes-display-inline">A distribution from a Trump account of an amount allocable to the investment in the contract shall not be includible in the gross income of the distributee.</text></paragraph>
<paragraph id="H37749FC8B3C5417AA2C515B44EDAF524"><enum>(2)</enum><header>Amounts allocable to income on the contract used for qualified expenses</header><text display-inline="yes-display-inline">A distribution from a Trump account of an amount allocable to income on the contract and which is used exclusively to pay for qualified expenses shall be includible in net capital gain of the distributee under section 1(h)(12).</text></paragraph> <paragraph id="H28F2A08BA85A4FEAA57508EAE0E30C25"><enum>(3)</enum><header>Amounts includible in gross income</header><text display-inline="yes-display-inline">Any distribution from a Trump account which is not described in paragraph (1) or (2) shall be includible in the gross income of the distributee.</text></paragraph>
<paragraph id="HB7A7FC3B31594B1297399956A1A64340"><enum>(4)</enum><header>Qualified expenses</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>qualified expenses</quote> means any of the following expenses paid or incurred for the benefit of the account beneficiary:</text> <subparagraph id="H03A6B174A2AA4CB383C592CF1098CE2D"><enum>(A)</enum><text>Qualified higher education expenses (as defined in section 529(e)(3)) determined without regard to section 529(c)(7).</text></subparagraph>
<subparagraph id="HFDD68DCFED68444A84B75D0DFA6640CB"><enum>(B)</enum><text>Qualified post-secondary credentialing expenses (as defined in section 529(f)).</text></subparagraph> <subparagraph id="H64243E78103F4C0A8D05C89207BA6303"><enum>(C)</enum><text display-inline="yes-display-inline">Under regulations provided by the Secretary, amounts paid or incurred with respect to any small businesses for which the beneficiary has obtained any small business loan, small farm loan, or similar loan.</text></subparagraph>
<subparagraph id="H57A4B5AB15194B8BA8EADCFFD1436EDE"><enum>(D)</enum><text display-inline="yes-display-inline">Any amount used for the purchase (as defined in section 36(c)(3)) of the principal residence (as used in section 121) of the account beneficiary if such account beneficiary is a first-time homebuyer (as defined in section 36(c)(1)) with respect to such purchase.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HE8999F4952EC4D549A214CCF869163B0"><enum>(5)</enum><header>Exceptions</header><text>Paragraphs (2) and (3) shall not apply to any distribution which is a qualified rollover contribution.</text></paragraph>
<paragraph id="H1EFF34DB42704427B7E592188C9E0611"><enum>(6)</enum><header>Additional tax on certain distributions</header><text display-inline="yes-display-inline">In the case of a distributee who has not attained age 30, the tax imposed by this chapter on the account beneficiary for any taxable year in which there is a distribution from a Trump account of such beneficiary which is includible in gross income under paragraph (3) shall be increased by 10 percent of the amount which is so includible.</text></paragraph></subsection> <subsection commented="no" id="H5C236711445546C1AEBEA26AFF11099C"><enum>(e)</enum><header>Qualified rollover contribution</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>qualified rollover contribution</term> means an amount which is paid in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to a Trump account maintained for such beneficiary.</text></subsection>
<subsection id="H06523B1CE2914ABC979A6EA57A4A9B2A" commented="no"><enum>(f)</enum><header>Treatment after death of account beneficiary</header><text>Rules similar to the rules of section 223(f)(8) shall apply for purposes of this section.</text></subsection> <subsection id="HC707DEC7328548F88F3C36D7B113B5B0"><enum>(g)</enum><header>Determinations of aggregate distributions and investment in contract in the case of certain rollover contributions</header><text display-inline="yes-display-inline">In the case of a qualified rollover contribution which is described in subsection (e)(2), any determination required under this section of the amount of the investment of the contract or of aggregate distributions from the Trump account shall be determined with respect to the aggregate of such amounts for all Trump accounts of the same account beneficiary.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H845774F2D9FF4E00B6D03CFAF3E553BB"><enum>(h)</enum><header display-inline="yes-display-inline">Custodial accounts</header><text>For purposes of this section, a custodial account shall be treated as a trust under this section if—</text> <paragraph id="H330BD31B9CE9441AA13EFC3CEAD0FC83"><enum>(1)</enum><text>the custodial account would, except for the fact that it is not a trust, constitute a trust which meets the requirements of subsection (b)(1), and</text></paragraph>
<paragraph id="H65D9F23D272046F897F419612AE1D4FD"><enum>(2)</enum><text>the assets of such account are held by a bank (as defined in section 408(n)) or another person who demonstrates, to the satisfaction of the Secretary, that the manner in which he will administer the account will be consistent with the requirements of this section.</text></paragraph><continuation-text continuation-text-level="subsection">For purposes of this title, in the case of a custodial account treated as a trust by reason of the preceding sentence, the person holding the assets of such account shall be treated as the trustee thereof.</continuation-text></subsection> <subsection id="HD42D801CFC1B43DDB14C3D9795258E40"><enum>(i)</enum><header>Termination</header> <paragraph id="HA05FBB0634A3491680BD9C42684F02EE"><enum>(1)</enum><header>Age 31</header><text display-inline="yes-display-inline">Upon the date on which the account beneficiary attains age 31, a Trump account shall cease to be a Trump account and the amount in such account shall be treated as distributed for purposes of subsection (d).</text></paragraph>
<paragraph id="HABEAAC94EC914B2FADADAC4F7867DC87" commented="no"><enum>(2)</enum><header>Multiple accounts of one beneficiary</header>
<subparagraph id="HD4992B5DF8AF45AFBBE8A1678E656DFB"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any duplicate Trump account of any account beneficiary other than a Trump account which is established by the deposit through a qualified rollover contribution of the entire amount of another Trump account of the account beneficiary—</text> <clause id="HE086A543EF4E44E9BA0045B1AC2C24D7"><enum>(i)</enum><text display-inline="yes-display-inline">such duplicate Trump account shall cease to be a Trump account and the amount in such account shall be treated as distributed for purposes of subsection (d), and</text></clause>
<clause id="H8A54578BC45C42838A9A9E0E96579FC0"><enum>(ii)</enum><text>there is imposed an excise tax on the account beneficiary in an amount equal to so much of cash value of the account as is allocable to income on the contract.</text></clause></subparagraph> <subparagraph id="HABC85439655A4EBBA63975F7CF5A54FD"><enum>(B)</enum><header>Withholding requirement</header><text>In the case of an account terminated under subparagraph (A), the trustee shall deduct and withhold upon the amount to be distributed the amount in excess described in subparagraph (A)(ii).</text></subparagraph>
<subparagraph id="H7808F9E837D244EE89ADB78D8207641F"><enum>(C)</enum><header>Notification</header><text display-inline="yes-display-inline">The Secretary, upon determining that a duplicate account exists, shall provide a notice to the account beneficiary of such duplicate account (and the account custodian, in the case of a custodial account) and to each trustee of any Trump account of the account beneficiary of such duplicate account which identifies each Trump account of such beneficiary and the trustee of each such account.</text></subparagraph> <subparagraph id="HAC65A2D9CCDA43128F77E18555B8715E"><enum>(D)</enum><header>Duplicate account</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>duplicate account</quote> means—</text>
<clause id="H6602FA3294C646A6B69116144CA70659"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of an account beneficiary for the benefit of whom an account was established by the Secretary under section 6434, any other Trump account of such account beneficiary, or</text></clause> <clause id="H709A15F945DF48DDA9DA24D037441625"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any other account beneficiary, any Trump account established after the first Trump account established for the benefit of such account beneficiary.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H5AAE2997079A4E21B60A2AE07C2B67A8"><enum>(j)</enum><header>Investment in the contract</header><text>For purposes of this section, rules similar to the rules applied to a qualified tuition program (as defined in section 529(b)) under section 72(e)(9) shall apply for purposes of determining the investment in the contract, except that such amount shall be determined without regard to any contribution which is described in subsection (c)(2).</text></subsection> <subsection id="HFA412D9380694D519131D94560EF649B"><enum>(k)</enum><header>Reports</header><text display-inline="yes-display-inline">The trustee of a Trump account shall make such reports regarding such account to the Secretary and to the beneficiary of the account with respect to contributions, distributions, the amount of investment in the contract, and such other matters as the Secretary may require. The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required.</text></subsection>
<subsection id="H6582AE3DD8D6415ABB2E9C116385518A"><enum>(l)</enum><header>Contributions to predominately unrelated children</header><text display-inline="yes-display-inline">The Secretary shall establish a program through which contributions may be made to the Trump accounts of a large group of account beneficiaries if—</text> <paragraph id="H348C478078AF490CB5B792FBB2DF0FEB"><enum>(1)</enum><text>the contribution is made by any person described in any paragraph of section 501(c) and exempt from taxation under section 501(a),</text></paragraph>
<paragraph id="H16C866B734FD446E8C3A8DA8FD23B923"><enum>(2)</enum><text>such accounts are selected on the basis of the location of the residence of the account beneficiaries, the school district in which such beneficiaries attend school, or another basis the Secretary determines appropriate, and</text></paragraph> <paragraph id="HD2DE2F72B24E476FA9EDD9DDACBB139A"><enum>(3)</enum><text>all individuals who are account beneficiaries of such an account who meet the selected criteria receive an equal portion of the contribution.</text></paragraph></subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H1145BEF385E14169B255574743BB6BB3" commented="no"><enum>(b)</enum><header>Distribution taxed at same rate as net capital gains</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1">Section 1(h)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H6379419BF9B94CD88DE1A4858418382D"> <paragraph commented="no" display-inline="no-display-inline" id="HB0F5D524A2A04A0ABA95C546F5BB5625"><enum>(12)</enum><header>Distributions from Trump account taxed as net capital gain</header><text>For purposes of this subsection, the term <term>net capital gain</term> means the net capital gain (determined without regard to this paragraph) increased by the amount includible in net capital gain under this paragraph by reason of section 530A(d)(2).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H2634D15E0EB84474B3B578DA17B3F426"><enum>(c)</enum><header>Tax on excess contributions</header>
<paragraph id="HC3C78CE830034DCD927045FA879988D9"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4973">Section 4973(a)</external-xref> is amended by striking <quote>or</quote> at the end of paragraph (5), by inserting <quote>or</quote> at the end of paragraph (6), and by inserting after paragraph (6) the following new paragraph:</text> <quoted-block id="H520AFB09EC35493B9BFE66FB4FC61A51"> <paragraph id="HC8F8DBEAFA4F4E2E934AEDE205F6FB2A"><enum>(7)</enum><text display-inline="yes-display-inline">a Trump account (as defined in section 530A(b)),</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H3BFF835AA9F4466D88D8447658E6A07C"><enum>(2)</enum><header>Excess contribution</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4973">Section 4973</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block id="HCC18C4EA5E854DABA09318E58060B0D7"> <subsection id="H1799378834AA4D4588E2D3E11A5808DD"><enum>(i)</enum><header>Excess contributions to a Trump account</header><text display-inline="yes-display-inline">For purposes of this section, in the case of Trump accounts (within the meaning of section 530A), the term <term>excess contributions</term> means the sum of—</text>
<paragraph id="H08F5DFDEFCB44BF6802D849150E1145D"><enum>(1)</enum><text>the amount by which the amount contributed for the calendar year to such account (other than qualified rollover contributions (as defined in section 530A(e))) exceeds the contribution limit under section 530A(c)(1) (determined without regard to contributions described in section 530A(c)(2)), and</text></paragraph> <paragraph id="HF9EEF27231DC4E1D8B1BFEE7E1C68EF3"><enum>(2)</enum><text>the amount determined under this subsection for the preceding calendar year, reduced by the excess (if any) of the maximum amount allowable as a contribution under section 530A(c)(1) (as so determined) for the calendar year over the amount contributed to the account for the calendar year (other than qualified rollover contributions (as so defined)).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H99970E3D03C04051A8C733B372208344"><enum>(d)</enum><header>Disclosure of return information to facilitate certain contributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6103">Section 6103(l)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="H1ABC65390F924D769E4307F074EB881F" display-inline="no-display-inline"> <paragraph id="HFA3CCF81AD394B2C99179FD333E3313B"><enum>(23)</enum><header>Disclosure of return information to enable certain contributions to Trump accounts</header><text display-inline="yes-display-inline">Upon written request signed by the head of the bureau or office of the Department of the Treasury requesting the inspection or disclosure, the Secretary may disclose the following return information with respect to a Trump account (as defined in section 503A(b)) to officers and employees of such bureau or office to the extent that such disclosure is necessary to carry out section 530A(l):</text>
<subparagraph id="HBB420E8DCAEE48B98BF6A7587F96A314"><enum>(A)</enum><text>Information necessary to identify the account holders in a particular class of beneficiaries identified by a donor as the intended recipients. </text></subparagraph> <subparagraph id="H4BEC55B0020845BABA48559283EBC3E4"><enum>(B)</enum><text>The name, address, and social security number of a beneficiary.</text></subparagraph>
<subparagraph id="H48F5087211D94EF3B97B7D9ECFF1CC46"><enum>(C)</enum><text>The account custodian and the address of such custodian.</text></subparagraph> <subparagraph id="H92D15641B49845B08A8F5B003DA33836"><enum>(D)</enum><text>The account number.</text></subparagraph>
<subparagraph id="H4610BAE9E9844EF2B19143F84F15EC81"><enum>(E)</enum><text>The routing number. </text></subparagraph> <subparagraph id="H65DC0E3BE53E407CB4D71C902137C15E"><enum>(F)</enum><text>To the extent determined by the Secretary in regulations, such other return information as the Secretary determines necessary to ensure proper routing of funds </text></subparagraph><continuation-text continuation-text-level="paragraph">Return information disclosed under this paragraph may only be used to identify account holders in a particular class of beneficiaries or for the proper routing of funds and may not be redisclosed by the Secretary.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3DEAEEE08F19402A90A42DC122AE0DA1"><enum>(e)</enum><header>Failure to provide reports on Trump accounts</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6693">Section 6693(a)(2)</external-xref> is amended by striking <quote>and</quote> at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block id="H9B7F54F4D09E4DBEB2FF4BA1DA7AD1D3"> <subparagraph id="H8A74C6F25984444A9C68DA0A1E71282A"><enum>(G)</enum><text display-inline="yes-display-inline">section 530A(h) (relating to Trump accounts).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H0CE96AEE725F4591B14EF40B81E44BC8"><enum>(f)</enum><header>Conforming amendment</header><text>The table of parts for subchapter F of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text> <quoted-block style="USC" id="HD982667093F54E67B299FD12C89A2231"> <toc regeneration="no-regeneration"> <toc-entry level="part">Part IX. Trump accounts</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9C925A3CB86949EAB26CC56E46FF5894"><enum>(g)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024. </text></subsection></section>
<section id="HED55BF938EC94B19ABBFC6D10DF41380"><enum>110116.</enum><header>Trump accounts contribution pilot program</header>
<subsection id="HD7DC1225203A4DDC81871BDC46C3821D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by adding at the end the following new section:</text> <quoted-block style="OLC" id="HF452BFED81E245BDAAC59D4807FCF14A" display-inline="no-display-inline"> <section id="H46D6A60CBFAC4C3AB43D29FC84B1558D"><enum>6434.</enum><header>Trump accounts contribution pilot program</header> <subsection id="H7243BF673F974CF79FB1D30CB0C3DDF6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxpayer with respect to whom an eligible individual is a qualifying child, there shall be allowed a one-time credit of $1,000 with respect to each such eligible individual who is a qualifying child of such taxpayer which shall be payable by the Secretary only to the Trump account with respect to which such eligible individual is the account beneficiary.</text></subsection>
<subsection id="H3192E3057B6942918DF2F0D617CFADA8"><enum>(b)</enum><header>Account established by Secretary</header>
<paragraph id="HC1DCCA9140B94119B3313AF014E6D045"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any eligible individual that the Secretary determines is not the account beneficiary of any Trump account as of the qualifying date of such eligible individual, the Secretary shall establish an account for the benefit of such eligible individual. </text></paragraph> <paragraph id="HBBB794533B7547FBA8B3764975148ACE"><enum>(2)</enum><header>Qualifying date</header><text>For purposes of paragraph (1), the term <quote>qualifying date</quote> means, with respect to an eligible individual, the first date on which a return of tax is filed by an individual with respect to whom such eligible individual is a qualifying child with respect to the taxable year to which such return relates.</text></paragraph>
<paragraph id="H35ED2F109E2947EEAB4D6947D461BC31"><enum>(3)</enum><header>Notification</header><text>In the case of any eligible individual for the benefit of whom the Secretary establishes an account under paragraph (1), the Secretary shall—</text> <subparagraph id="H3A3BA8A505CA481BB6D4EC0DA9F382B6"><enum>(A)</enum><text>notify any individual with respect to whom such eligible individual is a qualifying child for the taxable year described in paragraph (2) of the establishment of such account, and</text></subparagraph>
<subparagraph id="HF4217BBCAE074EFD88EBE840E2AF3CFE"><enum>(B)</enum><text>shall provide an opportunity to such individual to elect to decline the application of this subsection to such qualifying child.</text></subparagraph></paragraph> <paragraph id="H2C85B7E3C45F4252B2B994BCAED3F0F7"><enum>(4)</enum><header>Determination of default trustee</header><text display-inline="yes-display-inline">For purposes of selecting a trustee for an account established under paragraph (1), the Secretary shall take into account—</text>
<subparagraph id="HFB811464C4794947AB1F747D4BEF45FF"><enum>(A)</enum><text>the history of reliability and regulatory compliance of such trustee,</text></subparagraph> <subparagraph id="HEC238BD090514266ACCA8F5C25FC885C"><enum>(B)</enum><text>the customer service experience of such trustee,</text></subparagraph>
<subparagraph id="H4120EE229EDC458B988580709388FE9E"><enum>(C)</enum><text>the costs imposed by such trustee on the account or account beneficiary, and</text></subparagraph> <subparagraph id="H765C2A93B48A432BBF1F99998B6A2083"><enum>(D)</enum><text>to the extent practicable, the preferences of any individual described in paragraph (3)(A) with respect to such eligible individual.</text></subparagraph></paragraph></subsection>
<subsection id="H31FEA692C52B4D30A3F4EBFE73F4F646"><enum>(c)</enum><header>Eligible individual</header><text>For purposes of subsection (a), the term eligible individual means an individual—</text> <paragraph id="HA35E56D3E31545F5B264DE0AB91D5C8D"><enum>(1)</enum><text>who is born after December 31, 2024, and before January 1, 2029, and</text></paragraph>
<paragraph id="H0510CE54D0BE4E309414D5B78F105C0F"><enum>(2)</enum><text>who is a United States citizen at birth.</text></paragraph></subsection> <subsection id="HE3FB3C40E69C4724AB919258DB2ABB67"><enum>(d)</enum><header>Social security number required</header> <paragraph id="HB8E23FA858F14127BFC1D640A3073EF9"><enum>(1)</enum><header>In general</header><text>No credit shall be allowed under subsection (a) to a taxpayer unless such taxpayer includes on the return of tax for the taxable year—</text>
<subparagraph id="HCA01BF085E3D4BFBA8FFB51D345DB526"><enum>(A)</enum><text>such individual’s social security number,</text></subparagraph> <subparagraph id="HE4482DEFA8C64325A5E5943C2AE596E5"><enum>(B)</enum><text>if such individual is married, the social security number of such individual’s spouse, and </text></subparagraph>
<subparagraph id="H652E45058EE844078C372441BCFF0B62"><enum>(C)</enum><text>the social security number of the eligible individual with respect to whom such credit is allowed.</text></subparagraph></paragraph> <paragraph id="HD76723CC33F24866B019CDF22A499327"><enum>(2)</enum><header>Social security number defined</header><text>For purposes of paragraph (1), the term <quote>social security number</quote> shall have the meaning given such term in section 24(h)(7).</text></paragraph></subsection>
<subsection id="H8EB5D4B222744A50AA48D00430AC0D5A"><enum>(e)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text> <paragraph id="H1FC5F2651541435D871C3E18FCAEDEEB"><enum>(1)</enum><header>Qualifying child</header><text>The term qualifying child has the meaning given such term in section 152(c).</text></paragraph>
<paragraph id="HEA8BF67417794C548C7F81B0B6AC2B7C"><enum>(2)</enum><header>Trump account; account beneficiary</header><text display-inline="yes-display-inline">The terms <quote>Trump account</quote> and <quote>account beneficiary</quote> have the meaning given such terms in section 530A(b). </text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HFDF672BFC7654009A7589212E6697B3D"><enum>(b)</enum><header>Penalty for negligent claim or fraudulent claim</header><text>Part I of subchapter A of chapter 68 of subtitle F is amended by adding at the end the following new section:</text>
<quoted-block style="OLC" id="H98AA3040DB1E4A7F98EEFE78B61478AA" display-inline="no-display-inline">
<section id="H9EF9753F37194BC0A7EE41E49B61C42D"><enum>6659.</enum><header>Improper claim for Trump account contribution pilot program credit</header>
<subsection id="H2221608B87E14C17B851A57CB0FA8997"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxpayer that makes an excessive claim for a credit under section 6434—</text> <paragraph id="H8573CF2C22C14465AEF4B3B9F1D96900"><enum>(1)</enum><text>if such excess is a result of negligence or disregard of the rules or regulations, there shall be imposed a penalty of $500, or</text></paragraph>
<paragraph id="H3C426D66D61149D4BC7B303EABED85E4"><enum>(2)</enum><text>if such excess is a result of fraud, there shall be imposed a penalty of $1,000.</text></paragraph></subsection> <subsection id="HD4E1DBA4B3FE42EDA79547CC77909DB3"><enum>(b)</enum><header>Definitions</header><text>The terms <quote>negligence</quote> and <quote>disregard</quote> have the same meaning as when such terms are used in section 6662.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H370DC11C62DB4E18B2D7D1ED076570D5"><enum>(c)</enum><header>Omission of correct social security number treated mathematical or clerical error</header><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of subparagraph (Y), by striking the period at the end of subparagraph (Z) and inserting <quote>, and</quote> , and by inserting after subparagraph (Z) the following new subparagraph:</text> <quoted-block style="OLC" id="H976D79557AD34BCEBB489EF53DC2A845" display-inline="no-display-inline"> <subparagraph id="H897F5E4375E646908626DBDFDBE6F324"><enum>(AA)</enum><text display-inline="yes-display-inline">an omission of a correct social security number required under section 6434(d)(1) (relating to the Trump accounts contribution pilot program).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H37919109FA534C84B038884DD9BBDB27"><enum>(d)</enum><header>Clerical amendments</header>
<paragraph id="H5F6A7DEF9FC3429788A713CF27D8E0DC"><enum>(1)</enum><text>The table of sections for subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by adding at the end the following new item:</text> <quoted-block style="OLC" id="H7D96F097A8FF4B03B93162A9FDE85264" display-inline="no-display-inline"> <toc regeneration="yes-regeneration"> <toc-entry idref="H46D6A60CBFAC4C3AB43D29FC84B1558D" level="section">Sec. 6434. Trump accounts contribution pilot program.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HA6FA6D64D1EA42CF8AED3BB39957BA1D"><enum>(2)</enum><text display-inline="yes-display-inline">The table of sections for part I of subchapter A of chapter 68 of subtitle F is amended by inserting after the item relating to section 6658 the following new item:</text>
<quoted-block style="OLC" id="H492B9E7ED75640F5802BF7C1AEBF1605" display-inline="no-display-inline">
<toc regeneration="yes-regeneration">
<toc-entry idref="H9EF9753F37194BC0A7EE41E49B61C42D" level="section">Sec. 6659. Improper claim for Trump account contribution pilot program credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HE07EBFB6C07941ADB6A8AA6B8425C4F3"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section></part> <part id="HB15EBF17D26046B7A132C1400B986F8C"><enum>3</enum><header>Investing in Health of American Families and Workers</header> <section id="H2D963C24DAC04B10A5B28D2AAF6F3B66"><enum>110201.</enum><header>Treatment of health reimbursement arrangements integrated with individual market coverage</header> <subsection id="HDEDAD881ABF94704A186AD7418D37B18"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/9815">Section 9815(b)</external-xref> is amended—</text>
<paragraph id="H55844F887CF34C55A36D15BC9B6F3A70"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">Exception.—</header-in-text>Notwithstanding subsection (a)</quote> and inserting the following:</text> <quoted-block style="OLC" display-inline="yes-display-inline" id="H1FD98A4D0A6A423BA7FA337C81A782C1"><text display-inline="yes-display-inline"><header-in-text level="subsection" style="OLC">Exceptions.—</header-in-text></text>
<paragraph id="H6C9584DF04A540AB8E1A69B906A4E3CE"><enum>(1)</enum><header>Self-insured group health plans</header><text display-inline="yes-display-inline">Notwithstanding subsection (a)</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph> <paragraph id="HB417AE9420F4421A9B68A3A5F704B9CC"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HA7311105A799427BB86B9A941AFBABC4">
<paragraph id="H2CBDFA2239F24B199FDFB189B511D3C9"><enum>(2)</enum><header>Custom health option and individual care expense arrangements</header>
<subparagraph id="H2C0E4680597E405D833FA482AE3F5BF6"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subchapter, a custom health option and individual care expense arrangement shall be treated as meeting the requirements of section 9802 and sections 2705, 2711, 2713, and 2715 of title XXVII of the Public Health Service Act.</text></subparagraph> <subparagraph id="H56FC00BE971C4858922A5FB996E9DE28"><enum>(B)</enum><header>Custom health option and individual care expense arrangements defined</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>custom health option and individual care expense arrangement</term> means a health reimbursement arrangement—</text>
<clause id="HB5B8D881C0EF45A7B4D51EDDC98E3C74"><enum>(i)</enum><text display-inline="yes-display-inline">which is an employer-provided group health plan funded solely by employer contributions to provide payments or reimbursements for medical care subject to a maximum fixed dollar amount for a period,</text></clause> <clause id="H44AB8D64E0DA4CFF8E706B97F2F9FB44"><enum>(ii)</enum><text display-inline="yes-display-inline">under which such payments or reimbursements may only be made for medical care provided during periods during which the individual is covered—</text>
<subclause id="H733AF114C5ED4F96882333E6A4B054F8"><enum>(I)</enum><text>under individual health insurance coverage (other than coverage that consists solely of excepted benefits), or</text></subclause> <subclause id="H0652D360BD3C4091919D77D8D4992E61"><enum>(II)</enum><text>under part A and B of title XVIII of the Social Security Act or part C of such title,</text></subclause></clause>
<clause id="HA48B5196A3C5470C89DC062C0B17C368"><enum>(iii)</enum><text>which meets the nondiscrimination requirements of subparagraph (C),</text></clause> <clause id="H7956D38173D042969DA0A64E2CCB9694" commented="no"><enum>(iv)</enum><text>which meets the substantiation requirements of subparagraph (D), and</text></clause>
<clause id="H90E4694079B743DAB395EF04EDFE2159"><enum>(v)</enum><text>which meets the notice requirements of subparagraph (E).</text></clause></subparagraph> <subparagraph id="HA310E0870FE844B789E6EE057EE4B9DE"><enum>(C)</enum><header>Nondiscrimination</header> <clause id="H4C2C20139E9248BCA3B114091E14042B"><enum>(i)</enum><header>In general</header><text>An arrangement meets the requirements of this subparagraph if an employer offering such arrangement to an employee within a specified class of employee—</text>
<subclause id="HFD701773884E490CAFC0C5532CCBEF61"><enum>(I)</enum><text>offers such arrangement to all employees within such specified class on the same terms, and</text></subclause> <subclause id="H035218CCEFE8448E8D8706947E9A8B51" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">does not offer any other group health plan (other than an account-based group health plan or a group health plan that consists solely of excepted benefits) to any employees within such specified class.</text></subclause><continuation-text continuation-text-level="clause">In the case of an employer who offers a group health plan provided through health insurance coverage in the small group market (that is subject to section 2701 of the Public Health Service Act) to all employees within such specified class, subclause (II) shall not apply to such group health plan.</continuation-text></clause>
<clause id="HBFE2DF4DEA2A43059F568CA1A8AD1C6B"><enum>(ii)</enum><header>Specified class of employee</header><text display-inline="yes-display-inline">For purposes of this subparagraph, any of the following may be designated as a specified class of employee:</text> <subclause id="H2A3345B210A744F8BFF7BE7833CC8960"><enum>(I)</enum><text>Full-time employees.</text></subclause>
<subclause id="H4D56ECF2D929496788BFECBCC9A8E6D2"><enum>(II)</enum><text>Part-time employees.</text></subclause> <subclause id="H0EFDB41C66004C7388F696AC732FBE28"><enum>(III)</enum><text>Salaried employees.</text></subclause>
<subclause id="HB56FE9A4891743018E2FCC30C71913F4"><enum>(IV)</enum><text>Non-salaried employees.</text></subclause> <subclause id="H56F1790EAEA94E1F86994FD9A6C7908F"><enum>(V)</enum><text>Employees whose primary site of employment is in the same rating area.</text></subclause>
<subclause id="HAFEFC40A7A2C43F0A674050498D6FFCE"><enum>(VI)</enum><text>Employees who are included in a unit of employees covered under a collective bargaining agreement to which the employer is subject (determined under rules similar to the rules of section 105(h)).</text></subclause> <subclause id="H75278DCDC0CD4D0DABCC369977A9C68D"><enum>(VII)</enum><text>Employees who have not met a group health plan, or health insurance issuer offering group health insurance coverage, waiting period requirement that satisfies section 2708 of the Public Health Service Act.</text></subclause>
<subclause id="HE293C86A3DA94B58807B6B5D8AA3D179" commented="no"><enum>(VIII)</enum><text>Seasonal employees.</text></subclause> <subclause id="H96BC3FF1125A40BFB4C1A61628417C55"><enum>(IX)</enum><text>Employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3)).</text></subclause>
<subclause id="H17FFC6AEAE1640F4A3D026E7B8579735"><enum>(X)</enum><text>Such other classes of employees as the Secretary may designate.</text></subclause><continuation-text continuation-text-level="clause">An employer may designate (in such manner as is prescribed by the Secretary) two or more of the classes described in the preceding subclauses as the specified class of employees to which the arrangement is offered for purposes of applying this subparagraph.</continuation-text></clause> <clause id="H4DDDC64B16374FD4AFF482A816F02CFB"><enum>(iii)</enum><header>Special rule for new hires</header><text>An employer may designate prospectively so much of a specified class of employees as are hired after a date set by the employer. Such subclass of employees shall be treated as the specified class for purposes of applying clause (i).</text></clause>
<clause id="H4F5D6B20140E439386D02008959EE67E" commented="no"><enum>(iv)</enum><header>Rules for determining type of employee</header><text>For purposes for clause (ii), any determination of full-time, part-time, or seasonal employment status shall be made under rules similar to the rules of section 105(h) or 4980H, whichever the employer elects for the plan year. Such election shall apply with respect to all employees of the employer for the plan year.</text></clause> <clause id="HA4F78B5DD1EE4B1CBA8498F9B58E2B47"><enum>(v)</enum><header>Permitted variation</header><text display-inline="yes-display-inline">For purposes of clause (i)(I), an arrangement shall not fail to be treated as provided on the same terms within a specified class merely because the maximum dollar amount of payments and reimbursements which may be made under the terms of the arrangement for the year with respect to each employee within such class—</text>
<subclause id="H1FAAA3F13B684D34B9B01392BFE25316"><enum>(I)</enum><text>increases as additional dependents of the employee are covered under the arrangement, and</text></subclause> <subclause id="HF8FCB14384914410BD1F8444140F5EAE"><enum>(II)</enum><text>increases with respect to a participant as the age of the participant increases, but not in excess of an amount equal to 300 percent of the lowest maximum dollar amount with respect to such a participant determined without regard to age.</text></subclause></clause></subparagraph>
<subparagraph id="HCDD8D4A3767B43FABB31622A87FF3767" commented="no"><enum>(D)</enum><header>Substantiation requirements</header><text display-inline="yes-display-inline">An arrangement meets the requirements of this subparagraph if the arrangement has reasonable procedures to substantiate—</text> <clause id="HDE45CFEC99224EBD9CD95A0184FD6DE5" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">that the participant and any dependents are, or will be, enrolled in coverage described in subparagraph (B)(ii) as of the beginning of the plan year of the arrangement (or as of the beginning of coverage under the arrangement in the case of an employee who first becomes eligible to participate in the arrangement after the date notice is given with respect to the plan under subparagraph (E) (determined without regard to clause (iii) thereof), and</text></clause>
<clause id="H0FF1DC0EAFD9498788FE5B4740BFDD9F" commented="no"><enum>(ii)</enum><text>any requests made for payment or reimbursement of medical care under the arrangement and that the participant and any dependents remain so enrolled.</text></clause></subparagraph> <subparagraph id="H64348DA662AB45FEA0FDB4BF7B221233"><enum>(E)</enum><header>Notice</header> <clause id="H63908B53502E4634A042A6195F7FD639"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in clause (iii), an arrangement meets the requirements of this subparagraph if, under the arrangement, each employee eligible to participate is, not later than 60 days before the beginning of the plan year, given written notice of the employee’s rights and obligations under the arrangement which—</text>
<subclause id="H4BFD603EF3BC4515A16D73E43ACF8A9E"><enum>(I)</enum><text>is sufficiently accurate and comprehensive to apprise the employee of such rights and obligations, and</text></subclause> <subclause id="HECC3594E32C646728C0F453051EE489B"><enum>(II)</enum><text>is written in a manner calculated to be understood by the average employee eligible to participate.</text></subclause></clause>
<clause id="H5B296C573CB04D1AAD7718ECC75AFF2A" commented="no"><enum>(ii)</enum><header>Notice requirements</header><text display-inline="yes-display-inline">Such notice shall include such information as the Secretary may by regulation prescribe.</text></clause> <clause id="H4966F6532ED64F17808ECD76398DCEF0"><enum>(iii)</enum><header>Notice deadline for certain employees</header><text>In the case of an employee—</text>
<subclause id="HA12C3C8FA2454776ABC6459766916222"><enum>(I)</enum><text display-inline="yes-display-inline">who first becomes eligible to participate in the arrangement after the date notice is given with respect to the plan under clause (i) (determined without regard to this clause), or</text></subclause> <subclause id="H5DCC5E8BAE0B4F6386F5BA280E773FC0"><enum>(II)</enum><text>whose employer is first established fewer than 120 days before the beginning of the first plan year of the arrangement,</text></subclause><continuation-text continuation-text-level="clause">the requirements of this subparagraph shall be treated as met if the notice required under clause (i) is provided not later than the date the arrangement may take effect with respect to such employee.</continuation-text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H9105256FE4C947D5A90CD063D67213DD" commented="no"><enum>(b)</enum><header>Inclusion of <enum-in-header>CHOICE</enum-in-header> arrangement permitted benefits on <enum-in-header>W–2</enum-in-header></header>
<paragraph id="H744C82D73F3F4BDEB2766D6F32A41D2C" commented="no"><enum>(1)</enum><header>In general</header><text>Section 6051(a), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting <quote>, and</quote>, and by inserting after paragraph (19) the following new paragraph:</text> <quoted-block id="H5D3BBFBBF42F4687B7DE4C782520DD68" style="OLC"> <paragraph id="H02AB46891B814BC8A1A34E14DE67B41D" commented="no"><enum>(20)</enum><text display-inline="yes-display-inline">the total amount of permitted benefits for enrolled individuals under a custom health option and individual care expense arrangement (as defined in section 9815(b)(2)) with respect to such employee.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HE4D456432851400AB73F86F4610B20E9"><enum>(c)</enum><header>Treatment of current rules relating to certain arrangements</header>
<paragraph id="H79AF9CD129E24C4792F12B47C1739D79"><enum>(1)</enum><header>No inference</header><text>To the extent not inconsistent with the amendments made by this section—</text> <subparagraph id="HC6906F84534C4BF391E1525C9A5A8D77"><enum>(A)</enum><text>no inference shall be made from such amendments with respect to the rules prescribed in the Federal Register on June 20, 2019, (84 Fed. Reg. 28888) relating to health reimbursement arrangements and other account-based group health plans, and</text></subparagraph>
<subparagraph id="H7DA9B269E55F41F5ACAD37C71E596040"><enum>(B)</enum><text>any reference to custom health option and individual care expense arrangements shall for purposes of such rules be treated as including a reference to individual coverage health reimbursement arrangements.</text></subparagraph></paragraph> <paragraph id="HF6B652CBE0434E80ADC39B19357F773F"><enum>(2)</enum><header>Other conforming of rules</header><text display-inline="yes-display-inline">The Secretary of the Treasury, the Secretary of Health and Human Services, and the Secretary of Labor shall modify such rules as may be necessary to conform to the amendments made by this section.</text></paragraph></subsection>
<subsection id="H28FB0AEE7EBD47149F42764CD6070D76"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2025.</text></subsection></section> <section id="H0EE8D08D3DCB45039A526AFDE8E74209" commented="no"><enum>110202.</enum><header>Participants in CHOICE arrangement eligible for purchase of Exchange insurance under cafeteria plan</header> <subsection id="HC8DCB5747F96437D8BA099213FAED975" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/125">Section 125(f)(3)</external-xref> is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H3302D858911C4BC5842E90728440C580" display-inline="no-display-inline">
<subparagraph id="H338552D9CFEA45B09A67D33092AD1BAC" commented="no"><enum>(C)</enum><header>Exception for participants in <enum-in-header>CHOICE </enum-in-header>arrangement</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply in the case of an employee participating in a custom health option and individual care expense arrangement (within the meaning of section 9815(b)(2)) offered by the employee’s employer.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HED1710D9A95E40AF9036CCBC5472B91E" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="H9904DA6FCD594E80BAC664FA383EB24C" commented="no"><enum>110203.</enum><header>Employer credit for CHOICE arrangement</header>
<subsection id="HD57AE6DB02084AA8A09B006E65B46094" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new section:</text> <quoted-block style="OLC" id="H26777AF52D9A4F0A8947FD23B2377C99" display-inline="no-display-inline"> <section id="H36D76CBA78BA4E15B3E06DEEFA456A17" commented="no"><enum>45BB.</enum><header>Employer credit for CHOICE arrangement</header> <subsection id="H39510958D6F743CB9E5BC68C4D6E145F" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 38, in the case of an eligible employer, the CHOICE arrangement credit determined under this section for any taxable year is an amount, with respect to each employee enrolled during the credit period in a CHOICE arrangement maintained by the employer, equal to—</text>
<paragraph id="H2C560D464E5940D69429E05515167841" commented="no"><enum>(1)</enum><text>$100 multiplied by the number of months for which the employee is so enrolled during the first year in the credit period, and</text></paragraph> <paragraph id="HFCB694D803734677BD6BF1F8CC6F2781" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">one-half of the dollar amount in effect under paragraph (1) for the taxable year, multiplied by the number of months for which the employee is so enrolled during the second year of the credit period. </text></paragraph></subsection>
<subsection id="H694E622E42F14E0181DA324A211F3C48" commented="no"><enum>(b)</enum><header>Arrangement must constitute minimum essential coverage</header><text display-inline="yes-display-inline">An employee shall not be taken into account under subsection (a) unless such employee’s eligibility for the CHOICE arrangement (determined without regard to the employee being enrolled) would cause the employee to be treated under section 36B(c)(2) as being eligible for minimum essential coverage consisting of an eligible employer-sponsored plan (as defined in section 5000A(f)(2)).</text></subsection> <subsection id="H50931F74215243BCBBF1565B1D45E20D" commented="no"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph id="H6C9D226B8EB74C66B6D1CFB2CAD2DC9C" commented="no"><enum>(1)</enum><header>CHOICE arrangement</header><text display-inline="yes-display-inline">The term <term>CHOICE arrangement</term> means a custom health option and individual care expense arrangement (as defined in section 9815(b)(2)(B)).</text></paragraph> <paragraph id="H74AA4AC9625B457A8C09BA19A432F8B0" commented="no"><enum>(2)</enum><header>Credit period</header><text display-inline="yes-display-inline">The credit period with respect to an eligible employer is the first 2 one-year periods beginning with the month during which the employer first establishes a CHOICE arrangement on behalf of employees of the employer.</text></paragraph>
<paragraph id="H3014BB48BDA54893899424BDE686E832" commented="no"><enum>(3)</enum><header>Eligible employer</header><text display-inline="yes-display-inline">The term <term>eligible employer</term> means, with respect to any taxable year beginning in a calendar year, an employer who is not an applicable large employer for the calendar year under section 4980H.</text></paragraph></subsection> <subsection id="H8258457977444496B9174BCF483E523E"><enum>(d)</enum><header>Inflation adjustment</header> <paragraph id="HE051643A05D5421A866CCB25A27C3826"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxable year beginning in a calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to—</text>
<subparagraph id="HEBCCE0F0A1944FA48F7F0D9BB81305B8"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph> <subparagraph id="HFD134A711C6941C4958083DB84528CEA"><enum>(B)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins by substituting <quote>calendar year 2025</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subparagraph></paragraph>
<paragraph id="H8F2DABAE9EA04A4DB2D4CC9D0486D93C" commented="no"><enum>(2)</enum><header>Rounding</header><text display-inline="yes-display-inline">If any amount after adjustment under paragraph (1) is not a multiple of $10, such amount shall be rounded to the next lower multiple of $10.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HDF8B3868E70B41D0842C7CBF9F0365BB" commented="no"><enum>(b)</enum><header>Credit made part of general business credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended by striking <quote>plus</quote> at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph: </text>
<quoted-block style="OLC" id="H6348CCF036204C148D6227C90191C975" display-inline="no-display-inline">
<paragraph id="HB922EFE5E9544C92AD3053546440717C" commented="no"><enum>(42)</enum><text display-inline="yes-display-inline">the CHOICE arrangement credit determined under section 45BB(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H3E967A8B4AEB4DD08FE168581AD64B7F" display-inline="no-display-inline"><enum>(c)</enum><header>Credit allowed against alternative minimum tax</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(c)(4)(B)</external-xref> is amended—</text>
<paragraph id="HF70CD62A66CE42F0BA38C5CC63F5E4E6"><enum>(1)</enum><text>by redesignating clauses (x), (xi), and (xii) as clauses (xi), (xii), and (xiii), respectively, and</text></paragraph> <paragraph id="H10B23C9D74B34A1B904F1A230323C429"><enum>(2)</enum><text>by inserting after clause (ix) the following new clause:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HFADF1D1B5871442DB8F6CC95B250558A">
<clause id="H2FFF091BE47E4DE3A728ACD4D237E1F0"><enum>(x)</enum><text>the credit determined under section 45BB,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HBF5602D80AE4408DA8F9458E8E04CE32" commented="no"><enum>(d)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="H81550DC2703B4613961F9EFCB1C119C6" display-inline="no-display-inline">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45BB. Employer credit for CHOICE arrangement.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6CA314674F2F4FF097DD6A680E7ACAE6" commented="no"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="HDE3BA190ECBE4973A1246F68939EF8DA" display-inline="no-display-inline" section-type="subsequent-section"><enum>110204.</enum><header>Individuals entitled to part A of Medicare by reason of age allowed to contribute to health savings accounts</header> <subsection id="H0395C013DD4F4427B3452F768E2583D2"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(c)(1)(B)</external-xref> is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block style="OLC" id="HDD82CFFB6EA547F1BB8182AF9D989F2C">
<clause id="HB64BA6D7AFC74E27B7B5F2CF79FC224A"><enum>(iv)</enum><text>entitlement to hospital insurance benefits under part A of title XVIII of the Social Security Act by reason of section 226(a) of such Act.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H275355D03DB044CF8CEAA13E0B46AAD5"><enum>(b)</enum><header>Treatment of health insurance purchased from account</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(d)(2)(C)(iv)</external-xref> is amended by inserting <quote>and who is not an eligible individual</quote> after <quote>who has attained the age specified in section 1811 of the Social Security Act</quote>.</text></subsection>
<subsection id="HD5D7292001644B2587A1E8FD0C3FA16E"><enum>(c)</enum><header>Coordination with penalty on distributions not used for qualified medical expenses</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(f)(4)(C)</external-xref> is amended by striking <quote>Subparagraph (A)</quote> and inserting <quote>Except in the case of an eligible individual, subparagraph (A)</quote></text></subsection> <subsection id="HC6972797FF564964B8C7ACCFD67EFD43"><enum>(d)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(b)(7)</external-xref> is amended by inserting <quote>(other than an entitlement to benefits described in subsection (c)(1)(B)(iv))</quote> after <quote>Social Security Act</quote>.</text></subsection>
<subsection id="HD0B60ED367CB4D2DB8D7FC5C247E7090"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to months beginning after December 31, 2025.</text></subsection></section> <section id="H239F78C789404CDAAE5C2FC8814A7B9E" display-inline="no-display-inline" section-type="subsequent-section"><enum>110205.</enum><header>Treatment of direct primary care service arrangements</header> <subsection id="H9501204CCEF441679D1085F07FD129BA"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(c)(1)</external-xref> is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="HEB7ABE19B026469AB2197E546550294D">
<subparagraph id="H8D467B873AEF4E02A5215DBA10523D04"><enum>(E)</enum><header>Treatment of direct primary care service arrangements</header>
<clause id="H07574CA6462D4849BA4C84EC3D7D0529"><enum>(i)</enum><header>In general</header><text>A direct primary care service arrangement shall not be treated as a health plan for purposes of subparagraph (A)(ii).</text></clause> <clause id="H8CC1018EB01948318689D41B67CF481E"><enum>(ii)</enum><header>Direct primary care service arrangement</header><text>For purposes of this subparagraph—</text>
<subclause id="H40E7E8EFF3124154951131D2FF773361"><enum>(I)</enum><header>In general</header><text>The term <term>direct primary care service arrangement</term> means, with respect to any individual, an arrangement under which such individual is provided medical care (as defined in section 213(d)) consisting solely of primary care services provided by primary care practitioners (as defined in section 1833(x)(2)(A) of the Social Security Act, determined without regard to clause (ii) thereof), if the sole compensation for such care is a fixed periodic fee.</text></subclause> <subclause id="H0AD056CA125F458A95F837F5CA394438"><enum>(II)</enum><header>Limitation</header><text>With respect to any individual for any month, such term shall not include any arrangement if the aggregate fees for all direct primary care service arrangements (determined without regard to this subclause) with respect to such individual for such month exceed $150 (twice such dollar amount in the case of an individual with any direct primary care service arrangement (as so determined) that covers more than one individual).</text></subclause></clause>
<clause id="HFA55009260714D6998D152A3F7048E24"><enum>(iii)</enum><header>Certain services specifically excluded from treatment as primary care services</header><text>For purposes of this subparagraph, the term <term>primary care services</term> shall not include—</text> <subclause id="HC80CE91D0FAE4E1C96D6171F6C94F841"><enum>(I)</enum><text>procedures that require the use of general anesthesia,</text></subclause>
<subclause id="HAA47534A39BC4802BDC4A912B8B875DF"><enum>(II)</enum><text>prescription drugs (other than vaccines), and</text></subclause> <subclause id="H9A35516B1A704429AC54F7D35C78BB7C"><enum>(III)</enum><text>laboratory services not typically administered in an ambulatory primary care setting.</text></subclause><continuation-text continuation-text-level="clause">The Secretary, after consultation with the Secretary of Health and Human Services, shall issue regulations or other guidance regarding the application of this clause.</continuation-text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA3475FC41BE5443481A50244642F2245"><enum>(b)</enum><header>Direct primary care service arrangement fees treated as medical expenses</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(d)(2)(C)</external-xref> is amended by striking <quote>or</quote> at the end of clause (iii), by striking the period at the end of clause (iv) and inserting <quote>, or</quote>, and by adding at the end the following new clause:</text> <quoted-block style="OLC" id="H9F43C50DA9624E1F9FA5D7B480FAF9F0" display-inline="no-display-inline"> <clause id="H54E8BF3E176C4A0FBB29D3061BCDBFBF"><enum>(v)</enum><text display-inline="yes-display-inline">any direct primary care service arrangement.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3BF62CE7ED2640259C1B530781803EFD"><enum>(c)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(g)(1)</external-xref> is amended—</text> <paragraph id="H966B7211461348E7AB5A685049F31985"><enum>(1)</enum><text>by inserting <quote>, (c)(1)(E)(ii)(II),</quote> after <quote>(b)(2)</quote> each place it appears, and</text></paragraph>
<paragraph id="H404B0E02191643CB84CF2010BCA772B5"><enum>(2)</enum><text>in subparagraph (B), by striking <quote>clause (ii)</quote> in clause (i) and inserting <quote>clauses (ii) and (iii)</quote> , by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii) and inserting <quote>, and</quote>, and by inserting after clause (ii) the following new clause:</text> <quoted-block style="OLC" id="H6DAB24240EDA406EA48BBEC53A619102"> <clause id="H0116601CCD9A437881D827CF89FEC97B"><enum>(iii)</enum><text>in the case of the dollar amount in subsection (c)(1)(E)(ii)(II) for taxable years beginning in calendar years after 2026, <quote>calendar year 2025</quote>.</text></clause><after-quoted-block>.”.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HE2DF8891576A4A9CA2891B3AB63D7C9A"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to months beginning after December 31, 2025.</text></subsection></section> <section id="H824B050EF18847C099D4091EE98C4107" commented="no" display-inline="no-display-inline" section-type="subsequent-section"><enum>110206.</enum><header>Allowance of bronze and catastrophic plans in connection with health savings accounts</header> <subsection id="H04833A6A06654875990EC2A35EF073B3" commented="no"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(c)(2)</external-xref> is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="HA1188CE8B9FE47AC98A3CBEABA5AD71E">
<subparagraph id="H74EBE171F94A418487E8BC0BD17E7EC2" commented="no"><enum>(H)</enum><header>Bronze and catastrophic plans treated as high deductible health plans</header><text display-inline="yes-display-inline">The term <term>high deductible health plan</term> shall include any plan—</text> <clause id="HE5DB3AA6E69B42B48FB437CCB0952441" commented="no"><enum>(i)</enum><text>available as individual coverage through an Exchange established under section 1311 or 1321 of the Patient Protection and Affordable Care Act, and</text></clause>
<clause id="HBB3833BE32C446419A7395FB78803E3B" commented="no"><enum>(ii)</enum><text>described in subsection (d)(1)(A) or (e) of section 1302 of such Act.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0D112A884A1C4A33A65023B1997CA5EB" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to months beginning after December 31, 2025.</text></subsection></section>
<section id="H59D6B505A8B544D8A4410E03ED75A81B" display-inline="no-display-inline" section-type="subsequent-section"><enum>110207.</enum><header>On-site employee clinics</header>
<subsection id="H027FD9F94FA94F09B3E942BDC0590C11"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 223(c)(1), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H20DF3CC90C14467E9FCC085C9261F6E4" style="OLC"> <subparagraph id="H691149AAE3244C7FBE676100AE191877"><enum>(F)</enum><header>Special rule for qualified items and services</header> <clause id="HD1E71CECAF5F4D7288A52B506E6495FD"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of subparagraph (A)(ii), an individual shall not be treated as covered under a health plan described in subclauses (I) and (II) of such subparagraph merely because the individual is eligible to receive, or receives, qualified items and services—</text>
<subclause id="HE9802A75B67247459996676C3D20CDC7"><enum>(I)</enum><text>at a healthcare facility located at a facility owned or leased by the employer of the individual (or of the individual’s spouse), or</text></subclause> <subclause id="HC96B4E26E67F449BB80624621079B284"><enum>(II)</enum><text display-inline="yes-display-inline">at a healthcare facility operated primarily for the benefit of employees of the employer of the individual (or of the individual’s spouse).</text></subclause></clause>
<clause id="H9885CEEFFCB745A18678935CBD1C7F04"><enum>(ii)</enum><header>Qualified items and services defined</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>qualified items and services</term> means the following:</text> <subclause id="HC88578FDFEC04E2187CD8CF907185F24"><enum>(I)</enum><text display-inline="yes-display-inline">Physical examination.</text></subclause>
<subclause id="HD3B1897942D8447B9745803DB24D8C14"><enum>(II)</enum><text display-inline="yes-display-inline">Immunizations, including injections of antigens provided by employees.</text></subclause> <subclause id="H17344B6EF8FF44178A1725FF6B2D990F"><enum>(III)</enum><text>Drugs or biologicals other than a prescribed drug (as such term is defined in section 213(d)(3)).</text></subclause>
<subclause id="HC9D17F1C7B6B4648A65979AAD5870782"><enum>(IV)</enum><text>Treatment for injuries occurring in the course of employment.</text></subclause> <subclause id="HFF41FD5A328A4C59B078D1C7D786BAE3"><enum>(V)</enum><text>Preventive care for chronic conditions (as defined in clause (iv)).</text></subclause>
<subclause id="H4DE3E06FB3BB49E6AA978FA34AA558E0"><enum>(VI)</enum><text>Drug testing.</text></subclause> <subclause id="H38B8897792D54225838058CABE6B473E"><enum>(VII)</enum><text>Hearing or vision screenings and related services.</text></subclause></clause>
<clause id="H0E32F325493548DD9D6A03F1E64CDE65"><enum>(iii)</enum><header>Aggregation</header><text>For purposes of clause (i), all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer.</text></clause> <clause id="HBDFF587BE5E24DC88B1302EEB7F3FFAC"><enum>(iv)</enum><header>Preventive care for chronic conditions</header><text>For purposes of this subparagraph, the term <term>preventive care for chronic conditions</term> means any item or service specified in the Appendix of Internal Revenue Service Notice 2019–45 which is prescribed to treat an individual diagnosed with the associated chronic condition specified in such Appendix for the purpose of preventing the exacerbation of such chronic condition or the development of a secondary condition, including any amendment, addition, removal, or other modification made by the Secretary (pursuant to the authority granted to the Secretary under paragraph (2)(C)) to the items or services specified in such Appendix subsequent to the date of publication of such Notice.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H42B649CD560F422F822DE2C2DFA359E8" commented="no"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to months in taxable years beginning after December 31, 2025.</text></subsection></section> <section id="H1DC7B2B8C8304209B3E8F4243CB24CAA" display-inline="no-display-inline" section-type="subsequent-section"><enum>110208.</enum><header>Certain amounts paid for physical activity, fitness, and exercise treated as amounts paid for medical care</header> <subsection id="HE13919E60A1141BB800BBDDA79F1252E"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(d)(2)(A)</external-xref> is amended by adding at the end the following: <quote>For purposes of this subparagraph, amounts paid for qualified sports and fitness expenses shall be treated as paid for medical care.</quote>. </text></subsection>
<subsection id="HB2C08CEF397A4E9AA0ACE79744BF972D"><enum>(b)</enum><header>Qualified sports and fitness expenses</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(d)(2)</external-xref> is amended by adding at the end the following new subparagraph:</text> <quoted-block id="HAE73C636309C424A9AC1BE05766CB32A" style="OLC"> <subparagraph id="H4CCAE8D6331A4ECAAFB0CAEF4353ADC4"><enum>(E)</enum><header>Qualified sports and fitness expenses</header><text display-inline="yes-display-inline">For purposes of this paragraph—</text>
<clause id="H253EE7B4CCAD4855A99AA400BC7FD226"><enum>(i)</enum><header>In general</header><text>The term <term>qualified sports and fitness expenses</term> means amounts paid exclusively for the sole purpose of participating in a physical activity including—</text> <subclause id="H66061DF5CA034C29B7F63B9DBE4060A9"><enum>(I)</enum><text>for membership at a fitness facility, or</text></subclause>
<subclause id="HAF861FC92BCC4756A12B98E76032D3BF"><enum>(II)</enum><text>for participation or instruction in physical exercise or physical activity.</text></subclause></clause> <clause id="HF62FD2674F0F46D5815C371DF1B167D1"><enum>(ii)</enum><header>Overall dollar limitation</header> <subclause id="HB09EB23F43174A84A18E87B1EA3F077B"><enum>(I)</enum><header>In general</header><text>The aggregate amount treated as qualified sports and fitness expenses with respect to any taxpayer for any taxable year shall not exceed $500 ($1,000 in the case of a joint return or a head of household (as defined in section 2(b))).</text></subclause>
<subclause id="H3D1E25722B1F4302AC1D517B20CF4106"><enum>(II)</enum><header>Monthly limit</header><text display-inline="yes-display-inline">The amount taken into account under subparagraph (A) as paid for participating in a physical activity during a month beginning during the taxable year shall not exceed an amount equal to 1/12 of the amount in effect with respect to the taxpayer for the taxable year under subclause (I).</text></subclause></clause> <clause id="H4FF7A7F89ED749228CCBE7A4D29D732A"><enum>(iii)</enum><header>Fitness facility</header><text>For purposes of clause (i)(I), the term <term>fitness facility</term> means a facility—</text>
<subclause id="HCD603E6D1A424A34BFE22910F1FFC2D4"><enum>(I)</enum><text>which provides instruction in a program of physical exercise, offers facilities for the preservation, maintenance, encouragement, or development of physical fitness, or serves as the site of such a program of a State or local government,</text></subclause> <subclause id="HECA7B5E5E043456FAB19AB8717E41D8D"><enum>(II)</enum><text>which is not a private club owned and operated by its members,</text></subclause>
<subclause id="HA80C590AB5DB42848804060633679D56"><enum>(III)</enum><text>which does not offer golf, hunting, sailing, or riding facilities,</text></subclause> <subclause id="HFEAEE258AC6346CDA0567A3E8EB166C6"><enum>(IV)</enum><text>the health or fitness component of which is not incidental to its overall function and purpose, and</text></subclause>
<subclause id="H4873545C89984D8B9AA44709AD706385"><enum>(V)</enum><text>which is fully compliant with the State of jurisdiction and Federal anti-discrimination laws.</text></subclause></clause> <clause id="HDB62D6EEDF69459BBF9BDE181253654B"><enum>(iv)</enum><header>Treatment of personal trainers, exercise videos, etc</header><text display-inline="yes-display-inline">The term <term>qualified sports and fitness expenses</term> shall not include any amount paid for—</text>
<subclause id="HEB03906084CB4AEBA1252FCDEF96A5D8"><enum>(I)</enum><text>videos, books, or similar materials,</text></subclause> <subclause id="H6DC8C4D5905D448A87395099241E47DB"><enum>(II)</enum><text display-inline="yes-display-inline">remote or virtual instruction in a physical exercise or physical activity, unless such instruction is live, or</text></subclause>
<subclause id="H54D043C4A5984481B56EC3591F0D94E4"><enum>(III)</enum><text>one-on-one personal training.</text></subclause></clause> <clause id="H2EDD2D4C33894E80B02F11DBCEB712E8"><enum>(v)</enum><header>Programs which include components other than physical exercise and physical activity</header><text>Rules similar to the rules of section 213(d)(6) shall apply in the case of any program that includes physical exercise or physical activity and also other components. For purposes of the preceding sentence, travel and accommodations shall be treated as a separate component.</text></clause>
<clause id="H8E7D56BF55394533A2FAED23253CCB71"><enum>(vi)</enum><header>Membership, participation, and instruction must be continuing</header><text display-inline="yes-display-inline">An amount shall not be treated as paid for the purpose of participating in a physical activity unless—</text> <subclause id="HC0766D3282FF4BAFB6AE4428D07B978F"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a membership at a fitness facility, such membership is for more than 1 day, and</text></subclause>
<subclause id="H3870F6A769824271A6D319A65A1A5593"><enum>(II)</enum><text>in the case of participation or instruction in physical exercise or physical activity, the amount paid constitutes payment for more than 1 occasion of such participation or instruction.</text></subclause></clause> <clause id="HA405A36284D3401898F41081505AFAB4"><enum>(vii)</enum><header>Cost-of-living adjustment</header><text>In the case of any taxable year beginning in a calendar year after 2026, each dollar amount in clause (ii)(I) shall be increased by an amount equal to—</text>
<subclause id="H6147F1716B634FA0ACD74DC0C135635C"><enum>(I)</enum><text>such dollar amount, multiplied by</text></subclause> <subclause id="HE853CF2872D0487D8175EB4421FDDDB3"><enum>(II)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins by substituting <quote>calendar year 2025</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subclause><continuation-text continuation-text-level="clause">If any increase under the preceding sentence is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.</continuation-text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H2CE0A86CA4034323A61A214CB0BC15BF"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="HE1FB9386A81B480FB1AD95D717E1FC07" display-inline="no-display-inline" section-type="subsequent-section"><enum>110209.</enum><header>Allow both spouses to make catch-up contributions to the same health savings account</header> <subsection id="H47D96AB700424FFBBB0C13A739C3EBB5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(b)(5)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H47E0C7F2EA7F4CE0A0BEC9E4A0BD6F05">
<paragraph id="HD7F6F10CB8E14B22BD862D2F47F45ED0" display-inline="no-display-inline"><enum>(5)</enum><header>Special rule for married individuals with family coverage</header>
<subparagraph id="H97D3BFA809404AC5A196DB94B19F230F"><enum>(A)</enum><header>In general</header><text>In the case of individuals who are married to each other, if both spouses are eligible individuals and either spouse has family coverage under a high deductible health plan as of the first day of any month—</text> <clause id="HD3A4428F7E1A440080F4619F049A6BBF"><enum>(i)</enum><text>the limitation under paragraph (1) shall be applied by not taking into account any other high deductible health plan coverage of either spouse (and if such spouses both have family coverage under separate high deductible health plans, only one such coverage shall be taken into account),</text></clause>
<clause id="HCF0786C4E5074CCDB236BCDA2C71B653"><enum>(ii)</enum><text>such limitation (after application of clause (i)) shall be reduced by the aggregate amount paid to Archer MSAs of such spouses for the taxable year, and</text></clause> <clause id="H35F651A2D251453980530CBE3F621CFD"><enum>(iii)</enum><text>such limitation (after application of clauses (i) and (ii)) shall be divided equally between such spouses unless they agree on a different division.</text></clause></subparagraph>
<subparagraph id="H9B1280CA4B224AE69FF6EA886BF46786"><enum>(B)</enum><header>Treatment of additional contribution amounts</header><text>If both spouses referred to in subparagraph (A) have attained age 55 before the close of the taxable year, the limitation referred to in subparagraph (A)(iii) which is subject to division between the spouses shall include the additional contribution amounts determined under paragraph (3) for both spouses. In any other case, any additional contribution amount determined under paragraph (3) shall not be taken into account under subparagraph (A)(iii) and shall not be subject to division between the spouses.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HC3DCEEF4E5A74473BE828A9277C2EAF4" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="H31DAFC524E3A42DDB32AAB263AEFA9CF" display-inline="no-display-inline" section-type="subsequent-section"><enum>110210.</enum><header><enum-in-header>FSA</enum-in-header> and <enum-in-header>HRA</enum-in-header> terminations or conversions to fund <enum-in-header>HSAs</enum-in-header></header>
<subsection id="H4F94DA902CF740A3ABA91DD0A69E701C"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/106">Section 106(e)(2)</external-xref> is amended to read as follows:</text> <quoted-block id="HBF1A006FA01D4691A53A8B493DE169A6" style="OLC"> <paragraph id="HD0582C5DD45F4EE0B5595CC48224662D"><enum>(2)</enum><header>Qualified <enum-in-header>HSA</enum-in-header> distribution</header><text>For purposes of this subsection—</text>
<subparagraph id="HF5301CA3DFAB4E10AAD86E869BBE21C5"><enum>(A)</enum><header>In general</header><text>The term <term>qualified HSA distribution</term> means, with respect to any employee, a distribution from a health flexible spending arrangement or health reimbursement arrangement of such employee contributed directly to a health savings account of such employee if—</text> <clause id="H78644986308B484380DECA104E3FA37A"><enum>(i)</enum><text>such distribution is made in connection with such employee establishing coverage under a high deductible health plan (as defined in section 223(c)(2)) if during the 4-year period preceding the date the employee so establishes coverage the employee was not covered under such a high deductible health plan, and</text></clause>
<clause id="H19C5E0C0DF7843F890287F7B5C602805"><enum>(ii)</enum><text>such arrangement is described in section 223(c)(1)(B)(v) with respect to any portion of the plan year remaining after such distribution is made, if such employee remains enrolled in such arrangement.</text></clause></subparagraph> <subparagraph id="HBCD04EAE213842CEA1170ADFC7B54210"><enum>(B)</enum><header>Dollar limitation</header><text>The aggregate amount of distributions from health flexible spending arrangements and health reimbursement arrangements of any employee which may be treated as qualified HSA distributions in connection with an establishment of coverage described in subparagraph (A)(i) shall not exceed the dollar amount in effect under section 125(i)(1) (twice such amount in the case of coverage which is described in section 223(b)(2)(B)).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA75E4E7111FD4807BCA68360380024B3"><enum>(b)</enum><header>Partial reduction of limitation on deductible <enum-in-header>HSA</enum-in-header> contributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(b)(4)</external-xref> is amended by striking <quote>and</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, and</quote>, and by inserting after subparagraph (C) the following new subparagraph:</text> <quoted-block id="HA564BF8BC4B34CCB97454D8EE1E1827E" style="OLC"> <subparagraph id="H4C93BD33C3D043CDAAAC11EC57FB19B5"><enum>(D)</enum><text>so much of any qualified HSA distribution (as defined in section 106(e)(2)) made to a health savings account of such individual during the taxable year as does not exceed the aggregate increases in the balance of the arrangement from which such distribution is made which occur during the portion of the plan year which precedes such distribution (other than any balance carried over to such plan year and determined without regard to any decrease in such balance during such portion of the plan year).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3879BA0FF59549BC973CC1388C3D8966"><enum>(c)</enum><header>Conversion to hsa-compatible arrangement for remainder of plan year</header><text>Section 223(c)(1)(B), as amended by this preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of clause (iii), by striking the period at the end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block style="OLC" id="H0B666E43B69F4497A730C4458B0EAEC9" display-inline="no-display-inline"> <clause id="HE5A6852267414C1695589D71C0A2A733"><enum>(v)</enum><text display-inline="yes-display-inline">coverage under a health flexible spending arrangement or health reimbursement arrangement for the portion of the plan year after a qualified HSA distribution (as defined in section 106(e)(2) determined without regard to subparagraph (A)(ii) thereof) is made, if the terms of such arrangement which apply for such portion of the plan year are such that, if such terms applied for the entire plan year, then such arrangement would not be taken into account under subparagraph (A)(ii) of this paragraph for such plan year.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF08ACF3478244186892A34A400449515" commented="no"><enum>(d)</enum><header>Inclusion of qualified <enum-in-header>HSA</enum-in-header> distributions on w–2</header>
<paragraph id="HC8B4967B43D24911A3D9A15B68DB0C03" commented="no"><enum>(1)</enum><header>In general</header><text>Section 6051(a), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of paragraph (19), by striking the period at the end of paragraph (20) and inserting <quote>, and</quote>, and by inserting after paragraph (20) the following new paragraph:</text> <quoted-block id="H6A865BA785E74C47B2E1C516C204BEBF" style="OLC"> <paragraph id="H5446EAF973B94EA9A7DD9F1C3E05C801" commented="no"><enum>(21)</enum><text>the amount of any qualified HSA distribution (as defined in section 106(e)(2)) with respect to such employee.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HF87A31536D254AADA7F048E75A2EA681" commented="no"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6051">Section 6051(a)(12)</external-xref> is amended by inserting <quote>(other than any qualified HSA distribution, as defined in section 106(e)(2))</quote> before the comma at the end.</text></paragraph></subsection> <subsection id="HE5329D7783B84C9BBA9AA0F38776B3ED"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after December 31, 2025.</text></subsection></section>
<section id="HF6694928BCAC46AC81EC361DE1502B77" display-inline="no-display-inline" section-type="subsequent-section"><enum>110211.</enum><header>Special rule for certain medical expenses incurred before establishment of health savings account</header>
<subsection id="HB8D36B9CDE704C4CAB9B4DF274EEEA94"><enum>(a)</enum><header>In general</header><text>Section 223(d)(2), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="HDE23048B39924593AB497837FED7C319"> <subparagraph id="HADC9DFCE60EA4C08B9BE86398BDDCE24"><enum>(F)</enum><header>Treatment of certain medical expenses incurred before establishment of account</header><text>If a health savings account is established during the 60-day period beginning on the date that coverage of the account beneficiary under a high deductible health plan begins, then, solely for purposes of determining whether an amount paid is used for a qualified medical expense, such account shall be treated as having been established on the date that such coverage begins.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H0B611B7EACC64922A42A52CC9D806B3B"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply with respect to coverage beginning after December 31, 2025.</text></subsection></section> <section id="H89521F43FB734F71949ADCE3AD5B1AF1" commented="no" section-type="subsequent-section" display-inline="no-display-inline"><enum>110212.</enum><header>Contributions permitted if spouse has health flexible spending arrangement</header> <subsection id="HF6C4D0631A504561B9877DD93AE50E8A" commented="no"><enum>(a)</enum><header>Contributions permitted if spouse has a health flexible spending arrangement</header><text display-inline="yes-display-inline">Section 223(c)(1)(B), as amended by this preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of clause (iv), by striking the period at the end of clause (v) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HC825BB6DE9874E20BFF208187A74E6D2">
<clause id="H62CC43AD5F3244619A41E6568DEC2E7B" commented="no"><enum>(vi)</enum><text display-inline="yes-display-inline">coverage under a health flexible spending arrangement of the spouse of the individual for any plan year of such arrangement if the aggregate reimbursements under such arrangement for such year do not exceed the aggregate expenses which would be eligible for reimbursement under such arrangement if such expenses were determined without regard to any expenses paid or incurred with respect to such individual.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9D45E015565741F8A08A34625C622DF4" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to plan years beginning after December 31, 2025.</text></subsection></section>
<section id="H9FA94251681849CFA4D986DA15D5F44C"><enum>110213.</enum><header>Increase in health savings account contribution limitation for certain individuals</header>
<subsection id="H8288FF74D30E4F4D937D4213B37ABC1B"><enum>(a)</enum><header>Increase</header>
<paragraph id="HC87FE3A4A29B48539D58B53DF890CA2F"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(b)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="H816354D1DDD44A808ECEFEEF2CCC705A" display-inline="no-display-inline"> <paragraph id="H8C09B1D7CA7B46C19816609EB0FEB424"><enum>(9)</enum><header>Increase in limitation for certain taxpayers</header> <subparagraph id="H08B4A99FC5A6499EA625EFFBD6FD55AC"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The applicable limitation under subparagraphs (A) and (B) of paragraph (2) shall be increased by $4,300 and $8,550, respectively.</text></subparagraph>
<subparagraph id="H69B85298889D4231AC99373781F905EC"><enum>(B)</enum><header>Limitation based on modified adjusted gross income</header><text>The amount of the increase under subparagraph (A) (determined without regard to this subparagraph) shall be reduced (but not below zero) by the amount which bears the same ratio to the amount of such increase (as so determined) as—</text> <clause id="HEE1D167807474BDCA8A537C608D317EE"><enum>(i)</enum><text>the excess (if any) of—</text>
<subclause id="HFC4DAC931A9D4034B3507242456E3616"><enum>(I)</enum><text>the taxpayer’s adjusted gross income for such taxable year, over</text></subclause> <subclause id="HCB657FE5BF4F46C79ECAFB2E609A16D5"><enum>(II)</enum><text>$75,000 ($150,000 in the case of a joint return, if the eligible individual has family coverage), bears to</text></subclause></clause>
<clause id="HD3E17AEEC5034086B12AB37B84931ABA"><enum>(ii)</enum><text>$25,000 ($50,000 in the case of a joint return, if the eligible individual has family coverage).</text></clause><continuation-text continuation-text-level="subparagraph">For purposes of the preceding sentence, adjusted gross income shall be determined in the same manner as under section 219(g)(3)(A), except determined without regard to any deduction allowed under this section.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H53ADFD64FE2644B489980A32D4FA8721"><enum>(2)</enum><header>Only to apply to employee contributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/106">Section 106(d)(1)</external-xref> is amended by inserting <quote>and section 223(b)(9)</quote> after <quote>determined without regard to this subsection</quote>. </text></paragraph></subsection>
<subsection id="H3DBBFEFC01BC4D0AB1D7FC22B5ED2D46"><enum>(b)</enum><header>Inflation adjustment</header><text display-inline="yes-display-inline">Section 223(g), as amended by the preceding provisions of this Act, is amended—</text> <paragraph id="H5B9C0836872A453BBA89C62292A68CC7"><enum>(1)</enum><text>by inserting <quote>, (b)(9)(A), (b)(9)(B)(i)(II),</quote> before <quote>and (c)(2)(A)</quote> each place it appears,</text></paragraph>
<paragraph id="H476C8588786249F4B32FB89CF8EB71AC"><enum>(2)</enum><text>by striking <quote>clauses (ii) and (ii)</quote> in paragraph (1)(B)(i) and inserting <quote>clauses (ii), (iii), and (iv)</quote>,</text></paragraph> <paragraph id="HB123C80CBA594C5FA9EA29C9E21B7517"><enum>(3)</enum><text>by striking <quote>and</quote> at the end of paragraph (1)(B)(ii),</text></paragraph>
<paragraph id="HF8561D84FA424F969E285C8E2AA473FE"><enum>(4)</enum><text>by striking the period at the end of paragraph (1)(B)(iii) and inserting <quote>, and</quote>, and</text></paragraph> <paragraph id="H41B88FCCF1B94607AAC8EBFDC416F8DD"><enum>(5)</enum><text>by inserting after paragraph (1)(B)(iii) the following new clause:</text>
<quoted-block style="OLC" id="HD298B7283F46427196F91D5EB9AE95CD" display-inline="no-display-inline">
<clause id="HE7C59A8F1FB6455DA1AA99089AB8F010"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of the dollar amounts in subsections (b)(9)(A) and (b)(9)(B)(i)(II), <quote>calendar year 2025</quote>. </text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H4F49BFB75CC94AA8B96B1410141CA9C3"><enum>(c)</enum><header>Effective date</header> <paragraph id="H42350C8A37214069BC8CE7B90A84FE6B"><enum>(1)</enum><header>Subsection <enum-in-header>(a)</enum-in-header></header><text>The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2025.</text></paragraph>
<paragraph id="H308655733178470796C8EEF5FEA0687B"><enum>(2)</enum><header>Subsection <enum-in-header>(b)</enum-in-header></header><text>The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2026.</text></paragraph></subsection></section> <section id="HE593569A5DBD43BEB64ED50CEF7C8E97" display-inline="no-display-inline"><enum>110214.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this part.</text></section></part></subtitle>
<subtitle id="H215CC7EF58F64724BECF0268FE175F6F"><enum>B</enum><header>Make Rural America and Main Street Grow Again</header>
<part id="HA7E2B7CBE4A34E1BAD1B26A635391973"><enum>1</enum><header>Extension of Tax Cuts and Jobs Act Reforms for Rural America and Main Street</header>
<section id="H3D6EEE67C0724FAB97F9D0B231AA6D80" section-type="subsequent-section"><enum>111001.</enum><header>Extension of special depreciation allowance for certain property</header>
<subsection id="H5FF6AEF0BB3B4F41A487E7E29604CA47"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(k)</external-xref> is amended—</text> <paragraph id="H678EE69B76D347788CCE4D58D58524EC"><enum>(1)</enum><text>in paragraph (2)—</text>
<subparagraph id="HF8792D6706DC40199C1BA61F796CAE6C"><enum>(A)</enum><text>by striking <quote>January 1, 2027</quote> each place it appears and inserting <quote>January 1, 2030</quote>, and </text></subparagraph> <subparagraph id="HA98D2978EC3742BB8E0892DCCB87BDF2"><enum>(B)</enum><text>in subparagraph (B)—</text>
<clause id="H8C6F1E00D54A4F999D5795D35DED2E79"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i)(II), by striking <quote>January 1, 2028</quote> and inserting <quote>January 1, 2031</quote>, and </text></clause> <clause id="H306E3783945447749FA8BB1DDEA2B5E6"><enum>(ii)</enum><text display-inline="yes-display-inline">in the heading of clause (ii), by striking <quote><header-in-text level="clause" style="OLC">pre-January 1, 2027 basis</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">pre-January 1, 2030 basis</header-in-text></quote>, </text></clause></subparagraph></paragraph>
<paragraph id="H785AE4C4296044ED8A3D04BD4B6849B4"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5)(A), by striking <quote>January 1, 2027</quote> and inserting <quote>January 1, 2030</quote>, and</text></paragraph> <paragraph id="H4012587F81C14A5B99B2F5A12C03C17D"><enum>(3)</enum><text>in paragraph (6)—</text>
<subparagraph id="H5E88211B8E7940CFB2A95E666DE9B0A0"><enum>(A)</enum><text>in subparagraph (A)—</text> <clause id="H1E43D798D4004B20BCD606B5A75D3F20"><enum>(i)</enum><text>by inserting <quote>in the case of property acquired by the taxpayer before January 20, 2025,</quote> after <quote>Except as otherwise provided in this paragraph,</quote>, and</text></clause>
<clause id="HF60469E6F5ED41A4BA114D3E8D0F797A"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end of clause (iv), by striking the period at the end of clause (v) and inserting <quote>, and</quote>, and by adding at the end the following new clause: </text> <quoted-block style="OLC" id="HE8A76BAA8596470B8C93D310372D929C" display-inline="no-display-inline"> <clause id="H5EEB9756EF5E46F78A41579B59A0F6FA"><enum>(vi)</enum><text display-inline="yes-display-inline">in the case of property placed in service after December 31, 2026, 0 percent. </text></clause><after-quoted-block>, </after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="HA4568539FB3C446A9F8BD88129B75740"><enum>(B)</enum><text>in subparagraph (B)—</text> <clause id="HAF78E656B7174328B157547EBF416B53"><enum>(i)</enum><text>by striking <quote>In the case of property described</quote> and inserting <quote>In the case of property acquired by the taxpayer before January 20, 2025 and described</quote>, and </text></clause>
<clause id="H14B7B1E94C564DD78B0BF2CF527F05B3"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end of clause (iv), by striking the period at the end of clause (v) and inserting <quote>, and</quote>, and by adding at the end the following new clause: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H2051F95471EB48328FDBF13AEC983509"> <clause id="HAAE8977664F349779D01AAE68AC45E4A"><enum>(vi)</enum><text display-inline="yes-display-inline">in the case of property placed in service after December 31, 2027, 0 percent. </text></clause><after-quoted-block>, </after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="H8FF641EAC10849AD91A88AF20C6D3A77" display-inline="no-display-inline"><enum>(C)</enum><text>in subparagraph (C), by inserting <quote>and</quote> at the end of clause (iii), by striking clauses (iv) and (v), and by adding at the end the following new clause: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H04DA274C410A41319CFB83006FE54DDC"> <clause id="H7B00E374217C4AECAE9A5F4FF03B2005"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of a plant which is planted or grafted after January 19, 2025, and before January 1, 2030, 100 percent.</text></clause><after-quoted-block>, and </after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H2FC4682A5C7B464DA95DBDDA36749241"><enum>(D)</enum><text>by adding at the end the following new subparagraph: </text> <quoted-block style="OLC" id="H17A2680D605B4B2493A08BDDAD5E798F" display-inline="no-display-inline"> <subparagraph id="H6ACFB9BE1138474BB2490DF83FF65DE4"><enum>(D)</enum><header>Rule for property acquired after January 19, 2025</header> <clause id="HB67CA457B27144B6993E8A2BFCB47126"><enum>(i)</enum><header>In general</header><text>In the case of property acquired by the taxpayer after January 19, 2025 and placed in service after such date and before January 1, 2030 (January 1, 2031, in the case of property described in subparagraph (B) or (C) of paragraph (2)), the term <quote>applicable percentage</quote> means 100 percent. </text></clause>
<clause id="HA041F78D4B2F4BB38C2AECD9D9E3ED58" display-inline="no-display-inline"><enum>(ii)</enum><header>Acquisition date determination</header><text display-inline="yes-display-inline">For purposes of clause (i), property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition. </text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection> <subsection id="H1E0408BB866E4B4E903F415F32CE7F44"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/460">Section 460(c)(6)(B)</external-xref> is amended by striking <quote>which</quote> and all that follows through the period and inserting <quote>which has a recovery period of 7 years or less.</quote>. </text></subsection>
<subsection id="H27B73E41C7804D698AB062EE55909E47"><enum>(c)</enum><header>Effective dates</header>
<paragraph id="H8EA10372ED5542EAAD3D38FFD314C622"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided by paragraph (2), the amendments made by this section shall apply to property acquired after January 19, 2025 and placed in service after such date. </text></paragraph> <paragraph id="HAFC06AFFE4DE498CB5D0C1CC7387A593"><enum>(2)</enum><header>Specified plants</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to specified plants planted or grafted after January 19, 2025.</text></paragraph></subsection></section>
<section id="HACAC73573A324F72ABDC7EA234B41FEF"><enum>111002.</enum><header>Deduction of domestic research and experimental expenditures</header>
<subsection id="H4703DE6FA0AE47948C4681F37E472A46"><enum>(a)</enum><header>Suspension of amortization for domestic research and experimental expenditures</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/174">Section 174</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block id="H6305AE593D9148128644311F0010A8F7" style="OLC"> <subsection id="H066937D64A8448EB81AD26EEC7986B2F"><enum>(e)</enum><header>Suspension of application to domestic research and experimental expenditures</header><text>In the case of any domestic research or experimental expenditures (as defined in section 174A(b)), this section shall not apply to such expenditures paid or incurred in taxable years beginning after December 31, 2024, and before January 1, 2030.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA03A708E176C4B62BB25BE82DE5EBD6F"><enum>(b)</enum><header>Reinstatement of expensing for domestic research and experimental expenditures</header><text>Part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 174 the following new section:</text> <quoted-block id="HA9EBF23190E3445AB57F05E1EDB83195" style="OLC"> <section id="H50BBF91E76534378B749520ADCD87D8D"><enum>174A.</enum><header>Temporary rules for domestic research and experimental expenditures</header> <subsection id="HA9B3364D956E48CA97A4C682110EFD0D"><enum>(a)</enum><header>Treatment as expenses</header><text>Notwithstanding section 263, there shall be allowed as a deduction any domestic research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year.</text></subsection>
<subsection id="H48A7634E325447B3B9EB8EF0018B7719"><enum>(b)</enum><header>Domestic research or experimental expenditures</header><text>For purposes of this section, the term <quote>domestic research or experimental expenditures</quote> means research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer’s trade or business other than such expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)).</text></subsection> <subsection id="HB6375FD38A044F438B933998204775E2"><enum>(c)</enum><header>Amortization of certain domestic research and experimental expenditures</header> <paragraph id="HCBEB8DFADDBB495EA147151081645EBC"><enum>(1)</enum><header>In general</header><text>At the election of the taxpayer, made in accordance with regulations or other guidance provided by the Secretary, in the case of domestic research or experimental expenditures which would (but for subsection (a)) be chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion), subsection (a) shall not apply and the taxpayer shall—</text>
<subparagraph id="H908B653F07B24FD091DDCEA27826756C"><enum>(A)</enum><text>charge such expenditures to capital account, and</text></subparagraph> <subparagraph id="H0621C7D63163499B9C91B2CEF2FDCDF8"><enum>(B)</enum><text display-inline="yes-display-inline">be allowed an amortization deduction of such expenditures ratably over such period of not less than 60 months as may be selected by the taxpayer (beginning with the midpoint of the taxable year in which such expenditures are paid or incurred).</text></subparagraph></paragraph>
<paragraph id="HAA7EA18B60C44A77B64420FEB16C0033"><enum>(2)</enum><header>Time for and scope of election</header><text>The election provided by paragraph (1) may be made for any taxable year, but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The method so elected, and the period selected by the taxpayer, shall be adhered to in computing taxable income for the taxable year for which the election is made and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method (or to a different period) is authorized with respect to part or all of such expenditures. The election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election.</text></paragraph></subsection> <subsection id="H810F813F82C84C4B9AEA0D0B59DA7009"><enum>(d)</enum><header>Special rules</header> <paragraph id="H18384DAE00B242A197AEC26941B163F4"><enum>(1)</enum><header>Land and other property</header><text>This section shall not apply to any expenditure for the acquisition or improvement of land, or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion); but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures.</text></paragraph>
<paragraph id="HF0854843329843A0939ED7FCFDB5A0F1"><enum>(2)</enum><header>Exploration expenditures</header><text>This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas).</text></paragraph> <paragraph id="HC35FB4186C384612805223A94394B00C"><enum>(3)</enum><header>Software development</header><text>For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.</text></paragraph></subsection>
<subsection id="H13E1A9A6C0454497BC55C6F247B3D56D"><enum>(e)</enum><header>Termination</header>
<paragraph id="HF20E468D74C04C519A33BE478751F644"><enum>(1)</enum><header>In general</header><text>This section shall not apply to amounts paid or incurred in taxable years beginning after December 31, 2029.</text></paragraph> <paragraph id="HF365A5109EA84AED9AAAAA529C7C3F93"><enum>(2)</enum><header>Change in method of accounting</header><text>In the case of a taxpayer’s first taxable year beginning after December 31, 2029, paragraph (1) (and the corresponding application of section 174) shall be treated as a change in method of accounting for purposes of section 481 and—</text>
<subparagraph id="H265CC3EBDE0643C1804A862A54CF1CAC"><enum>(A)</enum><text>such change shall be treated as initiated by the taxpayer,</text></subparagraph> <subparagraph id="HC0A9E6A4FC19441FA7FD7DD1633139A2"><enum>(B)</enum><text>such change shall be treated as made with the consent of the Secretary, and</text></subparagraph>
<subparagraph id="H9634CA6E5C8C47C285525D5C3E0BEFF3"><enum>(C)</enum><text>such change shall be applied only on a cut-off basis for any domestic research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2029, and no adjustment under section 481(a) shall be made.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H2B7A38D333A64A78AEA9D4BE5DE5499C"><enum>(c)</enum><header>Treatment of foreign research or experimental expenditures upon disposition</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/174">Section 174(d)</external-xref> is amended by inserting <quote>or reduction to amount realized</quote> after <quote>no deduction</quote>.</text></subsection>
<subsection id="HBA52D46272F24889A074C670E5F5371A"><enum>(d)</enum><header>Coordination with certain other provisions</header>
<paragraph id="HFA2DBFD31B074369A0A5D8DA5CEB5BDA"><enum>(1)</enum><header>Research credit</header>
<subparagraph id="H0AEA3B27B95942FA957335187A7AEF65"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/41">Section 41(d)(1)(A)</external-xref> is amended by inserting <quote>or domestic research or experimental expenditures under section 174A</quote> after <quote>section 174</quote>.</text></subparagraph> <subparagraph id="H4D51E9994AF847F195A500EC60C4F51E"><enum>(B)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/280C">Section 280C(c)</external-xref> is amended by adding at the end the following new paragraph: </text>
<quoted-block style="OLC" id="H974BBAFF737949D7BDC1E0691848A0D9" display-inline="no-display-inline">
<paragraph id="H8DF6B99D227447A1BB35A2835703DF0F"><enum>(4)</enum><header>Domestic research or experimental expenditures</header><text display-inline="yes-display-inline">The domestic research or experimental expenditures otherwise taken into account under section 174A shall be reduced by the amount of the credit allowed under section 41(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HC1F94AC9A6B649A998ADBAFD6A9029FA"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/280C">Section 280C(c)</external-xref> is amended—</text>
<clause id="H1ABF7C12D97D450082ED658720DE8DD6"><enum>(i)</enum><text>in paragraph (1)(B)—</text> <subclause id="HA43F919AE7804752BE8F361F22C9071F"><enum>(I)</enum><text>by striking <quote>a deduction</quote> and inserting <quote>an amortization deduction</quote>, and</text></subclause>
<subclause id="H0B5A2868EE29447C90FEF43577AB5AD7"><enum>(II)</enum><text>by inserting <quote>under section 174</quote> after <quote>basic research expenses</quote>, and</text></subclause></clause> <clause id="HB8D7DAFEBF9E4047B32AD0912FE78AEC"><enum>(ii)</enum><text>in paragraph (2)(A)(i), by striking <quote>paragraph (1)</quote> and inserting <quote>paragraphs (1) and (4)</quote>. </text></clause></subparagraph></paragraph>
<paragraph id="H5AF1856D608748D7830DC9A5E14E732E" commented="no"><enum>(2)</enum><header><enum-in-header>AMT</enum-in-header> adjustment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/56">Section 56(b)(2)</external-xref> is amended—</text> <subparagraph id="H81CFCC8A66F24F069A19C36422EBE23F" commented="no"><enum>(A)</enum><text>by striking <quote>174(a)</quote> each place it appears and inserting <quote>174A(a)</quote>, and</text></subparagraph>
<subparagraph id="HE44CE0D3C51E4CB98694495F14801AD7" commented="no"><enum>(B)</enum><text>by adding at the end of subparagraph (A) the following new flush sentence:</text> <quoted-block style="OLC" id="HB115EACB735C442382345D2400449E48" display-inline="no-display-inline"> <quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph" commented="no">In the case of research and experimental expenditures charged to capital account and amortized under section 174 or 174A, such amounts shall be amortized for purposes of this subsection as provided in clause (ii).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H769D778737A34C909AFFCD871A884C2E"><enum>(3)</enum><header>Optional 10-year writeoff</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/59">Section 59(e)(2)(B)</external-xref> is amended by striking <quote>section 174(a) (relating to research and experimental expenditures)</quote> and inserting <quote>section 174A(a) (relating to temporary rules for domestic research and experimental expenditures)</quote>.</text></paragraph>
<paragraph id="H5BFFB62255F14871AAE7A8AB95ED6E9E"><enum>(4)</enum><header>Qualified small issue bonds</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/144">Section 144(a)(4)(C)(iv)</external-xref> is amended by inserting <quote>or 174A(a)</quote> after <quote>174(a)</quote>. </text></paragraph> <paragraph id="HEE41F4068E0647A9B9A1D8D2DA11CE86"><enum>(5)</enum><header>Start-up expenditures</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/195">Section 195(c)(1)</external-xref> is amended by striking <quote>or 174</quote> in the last sentence and inserting <quote>174, or 174A</quote>.</text></paragraph>
<paragraph id="H667F165643EB4EA8A1BC99AF94CAB4F2"><enum>(6)</enum><header>Capital expenditures</header>
<subparagraph id="H508330C4967A4F0DAFB9621A8B0310BE"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(a)(1)(B)</external-xref> is amended by inserting <quote> or 174A</quote> after <quote>174</quote>.</text></subparagraph> <subparagraph id="H50FB71EBB1C9450A98348AD31215A745"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/263A">Section 263A(c)(2)</external-xref> is amended by inserting <quote>or 174A</quote> after <quote>174</quote>.</text></subparagraph></paragraph>
<paragraph id="HA853B6B0B649442784E352CBDF521D74"><enum>(7)</enum><header>Active business computer software royalties</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/543">Section 543(d)(4)(A)(i)</external-xref> is amended by inserting <quote>174A,</quote> after <quote>174,</quote>.</text></paragraph> <paragraph id="H9EF13E898FF84FA684F6EADC91E6CD35"><enum>(8)</enum><header>Source rules</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/864">Section 864(g)(2)</external-xref> is amended in the last sentence—</text>
<subparagraph id="H2B52F4DFDC754834A73794ADA554B91A"><enum>(A)</enum><text>by striking <quote>treated as deferred expenses under subsection (b) of section 174</quote> and inserting <quote>allowed as an amortization deduction under section 174(a) or section 174A(c),</quote>, and</text></subparagraph> <subparagraph id="HE48EEA298B494C2D8B7C7166331EF31D"><enum>(B)</enum><text>by striking <quote>such subsection</quote> and inserting <quote>such section (as the case may be)</quote>.</text></subparagraph></paragraph>
<paragraph id="H50CD644FB75D494D8DEC78D04DA49692"><enum>(9)</enum><header>Basis adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)(14)</external-xref> is amended by striking <quote>deductions as deferred expenses under section 174(b)(1) (relating to research and experimental expenditures)</quote> and inserting <quote>deductions under section 174 or 174A(c)</quote>.</text></paragraph> <paragraph id="H3DD226B2B57E49228A62F9F8690E3F9F"><enum>(10)</enum><header>Small business stock</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1202">Section 1202(e)(2)(B)</external-xref> is amended by striking <quote>research and experimental expenditures under section 174</quote> and inserting <quote>specified research or experimental expenditures under section 174 or domestic research or experimental expenditures under section 174A</quote>.</text></paragraph></subsection>
<subsection id="HB8C441E43C3B48038D88ACA7A070DC3F"><enum>(e)</enum><header>Clerical amendment</header><text>The table of sections for part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 174 the following new item:</text> <quoted-block id="H2FEF82FF3DD5499D94CADF2B397F10D5" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 174A. Temporary rules for domestic research and experimental expenditures.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6F9B8B4AA0ED4B3E93895915C42BC5C1"><enum>(f)</enum><header>Effective date and special rule</header> <paragraph id="H9EB205C618CF46049BDB1103EB3BB411"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024.</text></paragraph>
<paragraph id="HF64D7F2CFA084E288722B781FB83EA94"><enum>(2)</enum><header>Treatment of foreign research or experimental expenditures upon disposition</header><text>The amendment made by subsection (c) shall apply to property disposed, retired, or abandoned after May 12, 2025.</text></paragraph> <paragraph id="H232D6E4B2EFC448FAA8C895C9537272B"><enum>(3)</enum><header>Coordination with research credit</header><text>The amendments made by subparagraphs (B) and (C) of subsection (d)(1) shall apply to taxable years beginning after December 31, 2024.</text></paragraph>
<paragraph id="HD39D3069864546C9A2BC0FDADC50DADF"><enum>(4)</enum><header>Special rule for short taxable years</header><text>The Secretary of the Treasury may prescribe such rules as are necessary or appropriate to provide for the application of the amendments made by this section in the case of any taxable year of less than 12 months that begins after December 31, 2024, and ends before the date of the enactment of this Act.</text></paragraph> <paragraph id="H5B233834DEA243E7844939ADAFB377C9"><enum>(5)</enum><header>Change in method of accounting</header><text display-inline="yes-display-inline">The amendments made by this section shall be treated as a change in method of accounting for purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/481">section 481</external-xref> of the Internal Revenue Code of 1986 and—</text>
<subparagraph id="H6A6BBFD6BAE04FF5A197E5B617FED00B"><enum>(A)</enum><text>such change shall be treated as initiated by the taxpayer,</text></subparagraph> <subparagraph id="H96172A1193FE43CC9333A2B321C45359"><enum>(B)</enum><text>such change shall be treated as made with the consent of the Secretary, and</text></subparagraph>
<subparagraph id="H482422555CF14AC8A134788C619127E0"><enum>(C)</enum><text>such change shall be applied only on a cut-off basis for any research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2024, and no adjustments under section 481(a) shall be made.</text></subparagraph></paragraph> <paragraph id="HDFA7CA9C2C5244CEA355166053509BDC"><enum>(6)</enum><header>No inference</header><text>The amendments made by subparagraphs (B) and (C) of subsection (d)(1) shall not be construed to create any inference with respect to the proper application of <external-xref legal-doc="usc" parsable-cite="usc/26/280C">section 280C(c)</external-xref> of the Internal Revenue Code of 1986 with respect to taxable years beginning before January 1, 2025.</text></paragraph></subsection></section>
<section id="H33BFDBCB30724CEC8637F9271866992C"><enum>111003.</enum><header>Modified calculation of adjusted taxable income for purposes of business interest deduction</header>
<subsection id="H6650DC3B07394449A13556F668F7430A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/163">Section 163(j)(8)(A)(v)</external-xref> is amended by striking <quote>beginning before January 1, 2022</quote> and inserting <quote>beginning after December 31, 2024 and before January 1, 2030</quote>.</text></subsection> <subsection id="H8FA30C2627CC4B71ADBF756C7413EF90"><enum>(b)</enum><header>Floor plan financing applicable to certain trailers and campers</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/163">Section 163(j)(9)(C)</external-xref> is amended by adding at the end the following new flush sentence:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H548BAF2A68CE47F3B8D8FC265D595B31">
<quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">Such term shall also include any trailer or camper which is designed to provide temporary living quarters for recreational, camping, or seasonal use and is designed to be towed by, or affixed to, a motor vehicle.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6CB6AA44B05C464FB0D55548C46D08BD"><enum>(c)</enum><header>Effective date and special rule</header>
<paragraph id="HE45D9AD233A34CC994341D29EC89B94E"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></paragraph> <paragraph id="H22BDC9504954400FBD8ACF95E3C02E59"><enum>(2)</enum><header>Special rule for short taxable years</header><text display-inline="yes-display-inline">The Secretary of the Treasury may prescribe such rules as are necessary or appropriate to provide for the application of the amendments made by this section in the case of any taxable year of less than 12 months that begins after December 31, 2024, and ends before the date of the enactment of this Act.</text></paragraph></subsection></section>
<section id="HC8B2F40D63124A9FB81411B5DE20192A"><enum>111004.</enum><header>Extension of deduction for foreign-derived intangible income and global intangible low-taxed income</header>
<subsection id="H3AB36B97634249738D0A9A9A58649CC2" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/250">Section 250(a)</external-xref> is amended—</text> <paragraph id="HA83FAD2D640C416E93A4240B64155E41" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>37.5 percent</quote> in paragraph (1)(A) and inserting <quote>36.5 percent</quote>, </text></paragraph>
<paragraph id="HB57BDE7A1DBA4FE38F7F4C9DCAB878CC" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text>by striking <quote>50 percent</quote> in paragraph (1)(B) and inserting <quote>49.2 percent</quote>, and</text></paragraph> <paragraph id="H6BDE854C92524341BE71AA55473D4A0C" commented="no" display-inline="no-display-inline"><enum>(3)</enum><text>by striking paragraph (3).</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HEE913FF1BB6C4016ABA726159174560E"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="H4495E26D6F594FA686CF3910900EB199"><enum>111005.</enum><header>Extension of base erosion minimum tax amount</header> <subsection id="H00E90BC632A1479E8C9449D3D28B5652" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/59A">Section 59A(b)</external-xref> is amended—</text>
<paragraph id="H632E4D3472DB4023953492EFB2961525" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>10 percent</quote> in paragraph (1) and inserting <quote>10.1 percent</quote>, and</text></paragraph> <paragraph id="H8C5D0A42443D491298F1F50093EE542A" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5F865AE4B51E4537B798BC1A281B94E2"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5CE066B0D8024B878DB713FEAFE719C6"><enum>(1)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/59A">Section 59A(b)(1)</external-xref> is amended by striking <quote>Except as provided in paragraphs (2) and (3)</quote> and inserting <quote>Except as provided in paragraph (2)</quote>.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HFDDFCDAAEF5C40D7B5C5BF2B6840F1AE"><enum>(2)</enum><text>Section 59A(b)(2), as redesignated by subsection (a)(2), is amended by striking <quote>the percentage otherwise in effect under paragraphs (1)(A) and (2)(A) shall each be increased</quote> and inserting <quote>the percentages otherwise in effect under paragraph (1)(A) shall be increased</quote>.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7DA6B778D2B848168D2A155993857182"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/59A">Section 59A(e)(1)(C)</external-xref> is amended by striking <quote>in the case of a taxpayer described in subsection (b)(3)(B)</quote> and inserting <quote>in the case of a taxpayer described in subsection (b)(2)(B)</quote>.</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="HC157A51D096B492DA33670EE778ECD40"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="H7A634C18C4C84002A349BC59919AFD1B"><enum>111006.</enum><header>Exception to denial of deduction for business meals</header>
<subsection id="H1D8CE6F98FCB4317B16C04D07618D14E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/274">Section 274(o)</external-xref> is amended by striking <quote>No deduction</quote> and inserting <quote>Except in the case of an expense described in subsection (e)(8), no deduction</quote>.</text></subsection> <subsection id="HA68A1625D99140C69F7938D19EC48B53"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to amounts paid or incurred after December 31, 2025.</text></subsection></section></part>
<part id="HD7B7389C174B4174A819E31A76E4200B"><enum>2</enum><header>Additional Tax Relief for Rural America and Main Street</header>
<section id="H9CA3954EA85547C2BA161481B93D05BA" section-type="subsequent-section"><enum>111101.</enum><header>Special depreciation allowance for qualified production property</header>
<subsection id="HB5524606661A4B1E94615019AFDD2043"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="HA8DBE939014C4857B02F11EC070DBFEF" display-inline="no-display-inline"> <subsection id="H040436989769462E881E5D8BD0D999F1"><enum>(n)</enum><header>Special allowance for qualified production property</header> <paragraph id="H8CAF3E4F372A4D66935F08C7A89724E3"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified production property—</text>
<subparagraph id="HBE2D29B5C50D49EA9ADE3B67B321A7D9"><enum>(A)</enum><text display-inline="yes-display-inline">the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and </text></subparagraph> <subparagraph id="H449F919FB51849EBA8962764F610D9D6"><enum>(B)</enum><text>the adjusted basis of the qualified production property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year.</text></subparagraph></paragraph>
<paragraph id="H727CA2CAE70047668F003C29E3276B82"><enum>(2)</enum><header>Qualified production property</header><text>For purposes of this subsection—</text> <subparagraph id="H4C3078C10D6946D38E89F37C5C618F17"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified production property</quote> means that portion of any nonresidential real property—</text>
<clause id="HD813F7731FFC429A82307103785C9CC0"><enum>(i)</enum><text>to which this section applies, </text></clause> <clause id="H322A86F8536A48299F73D423814013A8"><enum>(ii)</enum><text>which is used by the taxpayer as an integral part of a qualified production activity,</text></clause>
<clause id="HD10D4AB5D7214513BE9EEA4AEDC352F4"><enum>(iii)</enum><text>which is placed in service in the United States or any possession of the United States,</text></clause> <clause id="H95F3E2CBBAC94D8E8864B096F32F7748"><enum>(iv)</enum><text>the original use of which commences with the taxpayer,</text></clause>
<clause id="HA54E132B376E4C53BF16B570C8EFA875"><enum>(v)</enum><text>the construction of which begins after January 19, 2025, and before January 1, 2029,</text></clause> <clause id="H252ECFB9C1084A73ADA6E058FC913238"><enum>(vi)</enum><text>with respect to which the taxpayer has elected the application of this subsection, and</text></clause>
<clause id="H8C4055EE56EF4963AE1578FA22182764" commented="no"><enum>(vii)</enum><text>which is placed in service before January 1, 2033.</text></clause></subparagraph> <subparagraph id="H03295FE81751436197A2470C75773A84"><enum>(B)</enum><header>Special rule for certain property not previously used in qualified production activities</header> <clause id="H3412BAAFB6724D849C6E6E62467D23A8"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of property acquired by the taxpayer during the period described in subparagraph (A)(v), the requirements of clauses (iv) and (v) of subparagraph (A) shall be treated as satisfied if such property was not used in a qualified production activity (determined without regard to the second sentence of subparagraph (D)) by any person at any time during the period beginning on January 1, 2021, and ending on May 12, 2025.</text></clause>
<clause id="H3E7666023B7D4459BA3AFB26A1062EA6" commented="no"><enum>(ii)</enum><header>Written binding contracts</header><text display-inline="yes-display-inline">For purposes of determining under clause (i)—</text> <subclause id="H0373C410ECF84F15B87518489C1C3F6F"><enum>(I)</enum><text>whether such property is acquired before the period described in subparagraph (A)(v), such property shall be treated as acquired not later than the date on which the taxpayer enters into a written binding contract for such acquisition, and</text></subclause>
<subclause id="HC54AE6A203E945AB9360AEE0D4BA8949"><enum>(II)</enum><text>whether such property is acquired after such period, such property shall be treated as acquired not earlier than such date.</text></subclause></clause></subparagraph> <subparagraph id="H424C21E299684287BFCFE349C9D35AE4"><enum>(C)</enum><header>Exclusion of office space, etc</header><text display-inline="yes-display-inline">The term <quote>qualified production property</quote> shall not include that portion of any nonresidential real property which is used for offices, administrative services, lodging, parking, sales activities, research activities, software engineering activities, or other functions unrelated to manufacturing, production, or refining of tangible personal property.</text></subparagraph>
<subparagraph id="H80CB26F3FE43405AB5F7E926437B5BFB"><enum>(D)</enum><header>Qualified production activity</header><text display-inline="yes-display-inline">The term <quote>qualified production activity</quote> means the manufacturing, production, or refining of a qualified product. The activities of any taxpayer do not constitute manufacturing, production, or refining of a qualified product unless the activities of such taxpayer result in a substantial transformation of the property comprising the product.</text></subparagraph> <subparagraph id="H724D313A134D44108159A7572D1BBF61"><enum>(E)</enum><header>Production</header><text>The term <quote>production</quote> shall not include activities other than agricultural production and chemical production. </text></subparagraph>
<subparagraph id="H245219D82A514DA3B2872EC101F22473"><enum>(F)</enum><header>Qualified product</header><text display-inline="yes-display-inline">The term <quote>qualified product</quote> means any tangible personal property.</text></subparagraph> <subparagraph id="H1A14F5893432457DB3E08681D95D8182" commented="no"><enum>(G)</enum><header>Syndication</header><text>For purposes of subparagraph (A)(iv), rules similar to the rules of subsection (k)(2)(E)(iii) shall apply.</text></subparagraph></paragraph>
<paragraph id="H7EA814E90F194D4B8F7DAD755D9DBE40"><enum>(3)</enum><header>Deduction allowed in computing minimum tax</header><text display-inline="yes-display-inline">For purposes of determining alternative minimum taxable income under section 55, the deduction under section 167 for qualified production property shall be determined under this section without regard to any adjustment under section 56.</text></paragraph> <paragraph id="H970A081425714E778D9EFABD6E3B1B7A"><enum>(4)</enum><header>Coordination with certain other provisions</header> <subparagraph id="H56579F5B8EAF415292046E8AE63B7A90"><enum>(A)</enum><header>Other special depreciation allowances</header><text display-inline="yes-display-inline">The term <quote>qualified production property</quote> shall not include any property to which subsection (k), (l), or (m) applies. For purposes of subsections (k)(7), (l)(3)(D), and (m)(2)(B)(iii), qualified production property to which this subsection applies shall be treated as a separate class of property.</text></subparagraph>
<subparagraph id="H7E92BC9A7B7748EBA26B292B9554F632"><enum>(B)</enum><header>Alternative depreciation property</header><text>The term <quote>qualified production property</quote> shall not include any property to which the alternative depreciation system under subsection (g) applies. For purposes of subsection (g)(7)(A), qualified production property to which this subsection applies shall be treated as separate nonresidential real property.</text></subparagraph></paragraph> <paragraph id="H12E7DEF7E9754705AA3CF4339CF12889"><enum>(5)</enum><header>Recapture</header><text display-inline="yes-display-inline">If, at any time during the 10-year period beginning on the date that any qualified production property is placed in service by the taxpayer, such property ceases to be used as described in paragraph (2)(A)(ii) and is used by the taxpayer in a productive use not described in paragraph (2)(A)(ii)—</text>
<subparagraph id="HBD181B86032C4D94B2406AD80E76607B"><enum>(A)</enum><text>section 1245 shall be applied—</text> <clause id="HE2D727EB45BC44918FD9971A2F214125"><enum>(i)</enum><text>by treating such property as having been disposed of by the taxpayer as of the first time such property is so used in a productive use not described in paragraph (2)(A)(ii), and</text></clause>
<clause id="HAE5BA7ED572949B9AEA722BC1E4C4100"><enum>(ii)</enum><text>by treating the amount described in subparagraph (B) of section 1245(a)(1) with respect to such disposition as being not less than the amount described in subparagraph (A) of such section, and</text></clause></subparagraph> <subparagraph id="HA6B778B0A10946BBB26EB97312964AF2"><enum>(B)</enum><text>the basis of the taxpayer in such property, and the taxpayer’s allowance for depreciation with respect to such property, shall be appropriately adjusted to take into account amounts recognized by reason of subparagraph (A).</text></subparagraph></paragraph>
<paragraph id="H0BDB7380DEBF435BACE8BBF885ED8FAA"><enum>(6)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance—</text> <subparagraph id="H4477C3CBDB084B409C4DFEBAC879EA6F"><enum>(A)</enum><text>regarding what constitutes a substantial transformation of property, and</text></subparagraph>
<subparagraph id="H182DF9C91D3B42CD8D0451698C1373AF"><enum>(B)</enum><text>providing for the application of paragraph (5) with respect to a change in use described in such paragraph by a transferee following a fully or partially tax free transfer of qualified production property.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HEB96455C692E4BB7BF9ECB86174EBAB9"><enum>(b)</enum><header>Treatment of qualified production property as section 1245 property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1245">Section 1245(a)(3)</external-xref> is amended by striking <quote>or</quote> at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting <quote>, or</quote>, and by adding at the end the following new subparagraph: </text>
<quoted-block style="OLC" id="H39CFC638DB2249E4988A761E271087FC" display-inline="no-display-inline">
<subparagraph id="H995083E4EBAF4EC4B7882C671E8A2A7C"><enum>(G)</enum><text display-inline="yes-display-inline">any qualified production property (as defined in section 168(n)(2)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H81A23173CA624FA0913702C2353015E4"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text></subsection></section>
<section id="H8A0C3030851E4F1383E9A9BADDC255E5" section-type="subsequent-section"><enum>111102.</enum><header>Renewal and enhancement of opportunity zones</header>
<subsection id="HC1223611DF6B4434A1AF3B559ED9B413"><enum>(a)</enum><header>Modification of low-income community definition</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">Section 1400Z–1(c)(1)</external-xref> is amended—</text> <paragraph id="H686ABCA0695F4CDB94CE346BB5E485E6"><enum>(1)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">communities.</header-in-text>—The term</quote> and inserting the following: </text>
<quoted-block style="OLC" display-inline="yes-display-inline" id="H96511CB95C1F4E359910C5D55EFAAAEF"><text display-inline="yes-display-inline"><header-in-text level="paragraph" style="OLC">communities.</header-in-text>—</text> <subparagraph id="H3CB3F351536C4E09AF3A9720C8E47C49"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph>
<paragraph id="H6ED4D5B9789C4702B6048F4609543DC5"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H948A7BC6AD2042DDB09F3F2E218F0CB2"> <subparagraph id="H2F9A38F5CD804C829BEE2371AD575625"><enum>(B)</enum><header>Modifications</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), section 45D(e)(1) shall be applied in subparagraph (B) thereof, by substituting <quote>70 percent</quote> for <quote>80 percent</quote> each place it appears.</text></subparagraph>
<subparagraph id="HAF10FCDCE2C14AAD94E9AC1A1D89641A"><enum>(C)</enum><header>Certain census tracts disallowed</header><text>The term <quote>low-income community</quote> shall not include any population census tract if—</text> <clause id="HD9CE8F61E5664367836E2A15735EECD9"><enum>(i)</enum><text>in the case of a tract not located within a metropolitan area, the median family income for such tract is at least 125 percent of statewide median family income, or</text></clause>
<clause id="H120E81462CCB4D82B481BE8A9793A218"><enum>(ii)</enum><text>in the case of a tract located within a metropolitan area, the median family income for such tract is at least 125 percent of the metropolitan area median family income.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HDC2098B5D6B942D6B884CA73AE1E4ACD"><enum>(b)</enum><header>New round of qualified opportunity zone designations</header> <paragraph id="HF954148CEDA34C76A1C552C717C53C30"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">Section 1400Z–1</external-xref> is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HC9D5E879FAEF498484121614B6739922">
<subsection id="H03C9C07FD5944C00B9517C7B3B64D59C"><enum>(g)</enum><header>New round of qualified opportunity zone designations</header>
<paragraph id="HC5715485400E4B9697B786D9A7BAAC1E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to designations under subsection (b), and under rules similar to the rules of such subsection, the Secretary shall designate tracts nominated by the chief executive officers of States for purposes of this section.</text></paragraph> <paragraph id="H263DBAF0161045979BBEC9524F8B3DC1"><enum>(2)</enum><header>Number of designations; proportion of rural areas designated</header> <subparagraph id="H13DB7B0F27594BD59CDBDCE0296AB57E"><enum>(A)</enum><header>In general</header><text>Of the low-income communities within a State, the Secretary may designate under this subsection not more than 25 percent as qualified opportunity zones, of which at least the lesser of the following shall be qualified opportunity zones which are comprised entirely of a rural area:</text>
<clause id="H49565BF65EED4CC3B5C5C18A1ED85856"><enum>(i)</enum><text display-inline="yes-display-inline">The applicable percentage of the total number of qualified opportunity zone designations which may be made within the State under this subsection.</text></clause> <clause id="H22CBAA85CFF944DDAC7FB73271EA5DFC"><enum>(ii)</enum><text display-inline="yes-display-inline">All low-income communities within the State which are comprised entirely of a rural area.</text></clause></subparagraph>
<subparagraph id="HD6684C2D72B24177AD5FDFC33F7BA53D"><enum>(B)</enum><header>Applicable percentage</header><text>For purposes of this paragraph, the applicable percentage shall be, for any calendar year during which a designation is made, the greater of—</text> <clause id="H7714BA67C8404639A192EA0450600CF9"><enum>(i)</enum><text>33 percent, or</text></clause>
<clause id="H5B27BF686E5C4373A938645CB54D9013"><enum>(ii)</enum><text>the percentage of the United States population living within a rural area for the preceding calendar year.</text></clause></subparagraph></paragraph> <paragraph id="H2E9AE14D3DE8441AA95E26F5407608DB"><enum>(3)</enum><header>Rural area</header><text display-inline="yes-display-inline">Whether a low-income community is comprised entirely of a rural area shall be determined by the Secretary in consultation with the Secretary of Agriculture. For purposes of this subsection, the term <quote>rural area</quote> has the meaning given such term by section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act.</text></paragraph>
<paragraph id="HAAEE8D4D37BB4A74970424B6C65AE888"><enum>(4)</enum><header>Period for which designation is in effect</header><text>A designation as a qualified opportunity zone under this subsection shall remain in effect for the period beginning on January 1, 2027, and ending on December 31, 2033.</text></paragraph> <paragraph id="HAB57F465022842F1B3BDE34B68167D2A"><enum>(5)</enum><header>Contiguous tracts not eligible</header><text>Subsection (e) shall not apply to designations made under this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H809585A649044A378802B57D46C01CC4"><enum>(2)</enum><header>Election with respect to new round of zones</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">Section 1400Z–2(a)(2)(B)</external-xref> is amended by striking <quote>December 31, 2026</quote> and inserting <quote>December 31, 2033</quote>.</text></paragraph> <paragraph id="H220FCEAFBFFA40F7AF2DDE2159127553"><enum>(3)</enum><header>Year of inclusion</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">Section 1400Z–2(b)(1)(B)</external-xref> is amended to read as follows: </text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H983C0D6EED5646D48D4210DF996A63A0">
<subparagraph id="HBAB656DA44F94BCB8C7F9A65E3BE7A7F"><enum>(B)</enum>
<clause id="HCA08BA6236514CBD9EE28889CD348430" display-inline="yes-display-inline"><enum>(i)</enum><text>December 31, 2026, in the case of an amount invested before January 1, 2027, and</text></clause> <clause id="HDE0DB34B03E04F48A6BCE7FDAE1052EE" indent="up1"><enum>(ii)</enum><text>December 31, 2033, in the case of an amount invested after December 31, 2026, and before January 1, 2034.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H3A3D66E38E8C419F95DD83B5B1B37ADA"><enum>(4)</enum><header>Winding down initial zone designations</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">Section 1400Z–1(f)</external-xref> is amended—</text> <subparagraph id="HFB212F2EBA604776AF6A8D51BAB8CF53"><enum>(A)</enum><text>by striking <quote>and ending</quote> and all that follows and inserting the following: <quote>and ending on December 31, 2026.</quote>, and</text></subparagraph>
<subparagraph id="HB7C58EF043C9422F80ADE05D46484806"><enum>(B)</enum><text>by striking <quote>A designation</quote> and inserting <quote>Except as provided in subsection (g)(4), a designation</quote>. </text></subparagraph></paragraph></subsection> <subsection id="HB3A7A67DBC7F4E888165A5EC622C667C"><enum>(c)</enum><header>Modification of opportunity zone investment incentives</header> <paragraph id="H67A4D8B7AC924D90812372DBBE9C1630"><enum>(1)</enum><header>Consolidated basis increases; rural zone basis increase</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">Section 1400Z–2(b)(2)(B)</external-xref> is amended by adding at the end the following new clauses:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HB3F870E1E3A74499A54ACD61BBB3DBD7">
<clause id="H287D4B2D7C584885B6C0A726D76611EE"><enum>(v)</enum><header>Consolidated basis increase for investments after <enum-in-header>2026</enum-in-header></header><text display-inline="yes-display-inline">In the case of investments made after December 31, 2026—</text> <subclause id="H88068B4E7B2842DE8B8A0FCDBB1B62F2"><enum>(I)</enum><text>clauses (iii) and (iv) shall not apply, and</text></subclause>
<subclause id="H09AE1FDC501641B7AA05B6936981CFE7"><enum>(II)</enum><text>for any such investment held by the taxpayer for at least 5 years, the basis of such adjustment shall be increased by an amount equal to 10 percent of the amount of gain deferred by reason of subsection (a)(1)(A).</text></subclause></clause> <clause id="H6E47A8B3B9904190ADCD8DD3707C9163"><enum>(vi)</enum><header>Special rule for rural opportunity funds</header><text display-inline="yes-display-inline">Clause (v) shall be applied by substituting <quote>30 percent</quote> for <quote>10 percent</quote> in the case of an investment in a qualified rural opportunity fund.</text></clause>
<clause id="H156FC1D3C18F4AA2A96625260113B546"><enum>(vii)</enum><header>Qualified rural opportunity fund</header><text>For purposes of clause (vi), a <quote>qualified rural opportunity fund</quote> means a qualified opportunity fund that holds at least 90 percent of its assets in qualified opportunity zone property which—</text> <subclause id="H53099DA0374E4E7B99349F09BE85918F"><enum>(I)</enum><text display-inline="yes-display-inline">is qualified opportunity zone business property substantially all of the use of which, during substantially all of the fund’s holding period for such property, was in a qualified opportunity zone comprised entirely of a rural area, or</text></subclause>
<subclause id="H5C54BCF5832E4BDEBF0DE03B87226821"><enum>(II)</enum><text>is qualified opportunity zone stock, or a qualified opportunity zone partnership interest, in a qualified opportunity zone business in which substantially all of the tangible property owned or leased is qualified opportunity zone business property described in subsection (d)(3)(A)(i) and substantially all the use of which is in a qualified opportunity zone comprised entirely of a rural area.</text></subclause><continuation-text continuation-text-level="clause">For purposes of the preceding sentence, property held in the fund shall be measured under rules similar to the rules of subsection (d)(1).</continuation-text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H571561CEC8AF4C16B9FAD581C9C23187"><enum>(2)</enum><header>Limited treatment of ordinary income</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">Section 1400Z–2(a)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H0198D2777B59470D937F02273BC68D11">
<paragraph id="H613CC3483C53453C9866BEB70C899AFF"><enum>(3)</enum><header>Special rule for ordinary income</header><text display-inline="yes-display-inline">In the case of any ordinary income of the taxpayer for the taxable year—</text> <subparagraph id="H86F447BC62AD493DBC027BA3A2536E3C"><enum>(A)</enum><text>the taxpayer may elect the application of paragraph (1) with respect to so much of ordinary income as does not exceed $10,000 (reduced by the amount of any income with respect to which an election pursuant to this paragraph has previously been made), and</text></subparagraph>
<subparagraph id="H9DBC2D5EE97A4D6780DE1241945C48D1"><enum>(B)</enum><text>subsection (b)(2)(B) shall not apply to the investment with respect to such election.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HF8E3FCB5D3B0439B8BD8FB9FF80812C3"><enum>(3)</enum><header>Special rule for improvement of existing structures in rural areas, including for data centers</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">Section 1400Z–2(d)(2)(D)(ii)</external-xref> is amended by inserting <quote>(50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area)</quote> after <quote>the adjusted basis of such property</quote>.</text></paragraph></subsection>
<subsection id="H9841CB0A7BBA4BFAAC4C77EE6B2E1E43"><enum>(d)</enum><header>Information reporting on qualified opportunity funds and qualified rural opportunity funds</header>
<paragraph id="H27F3294880CF45479843AD0089768504"><enum>(1)</enum><header>Filing requirements for funds and investors</header><text>Subpart A of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by inserting after section 6039J the following new sections:</text> <quoted-block style="OLC" id="HD3B8D1AC96C5439B92B35B7134552F04"> <section id="HFC82D6DB56B841A8B141EF1AF8FA67F2"><enum>6039K.</enum><header>Returns with respect to qualified opportunity funds and qualified rural opportunity funds</header> <subsection id="H54CB83D67C1C40C89324A14D886D0023"><enum>(a)</enum><header>In general</header><text>Every qualified opportunity fund shall file an annual return (at such time and in such manner as the Secretary may prescribe) containing the information described in subsection (b).</text></subsection>
<subsection id="HABDC90F583E54C29A2004B91FE1CECBC"><enum>(b)</enum><header>Information from qualified opportunity funds</header><text>The information described in this subsection is—</text> <paragraph id="H9A352D7996FF4AFDA71AE4A2B04AABB7"><enum>(1)</enum><text>the name, address, and taxpayer identification number of the qualified opportunity fund,</text></paragraph>
<paragraph id="H6B6092DA49804BBFA2091FC6CBA49512"><enum>(2)</enum><text>whether the qualified opportunity fund is organized as a corporation or a partnership,</text></paragraph> <paragraph id="HB578A960D0AC4119AE24E3CBA1E231C9"><enum>(3)</enum><text>the value of the total assets held by the qualified opportunity fund as of each date described in section 1400Z–2(d)(1),</text></paragraph>
<paragraph id="H9773B2848E42436D998F5A70C5D532F0"><enum>(4)</enum><text>the value of all qualified opportunity zone property held by the qualified opportunity fund on each such date,</text></paragraph> <paragraph id="H833836547C4C453090EC5F4335FDD04A"><enum>(5)</enum><text>with respect to each investment held by the qualified opportunity fund in qualified opportunity zone stock or a qualified opportunity zone partnership interest—</text>
<subparagraph id="H52FC2A032F934628A73E760A25D6F321"><enum>(A)</enum><text>the name, address, and taxpayer identification number of the corporation in which such stock is held or the partnership in which such interest is held, as the case may be,</text></subparagraph> <subparagraph id="H62BC039F854A494586F0124B08C3D708"><enum>(B)</enum><text>each North American Industry Classification System (NAICS) code that applies to the trades or businesses conducted by such corporation or partnership,</text></subparagraph>
<subparagraph id="HA1F586AC04884AD68B7172C7DA95F671"><enum>(C)</enum><text>the population census tracts in which the qualified opportunity zone business property of such corporation or partnership is located,</text></subparagraph> <subparagraph id="H16167987819E4485A4180B3ABC495D84"><enum>(D)</enum><text>the amount of the investment in such stock or partnership interest as of each date described in section 1400Z–2(d)(1),</text></subparagraph>
<subparagraph id="HEA683C941EC74876A6B38DC15D055059"><enum>(E)</enum><text>the value of tangible property held by such corporation or partnership on each such date which is owned by such corporation or partnership,</text></subparagraph> <subparagraph id="H6280A596731F436B8755641B5579525F"><enum>(F)</enum><text>the value of tangible property held by such corporation or partnership on each such date which is leased by such corporation or partnership,</text></subparagraph>
<subparagraph id="HAA283023D6DA488BB5D5B710489C20F6"><enum>(G)</enum><text>the approximate number of residential units (if any) for any real property held by such corporation or partnership, and</text></subparagraph> <subparagraph id="H6A1860326D544E8BA644C319B54D9A6A"><enum>(H)</enum><text>the approximate average monthly number of full-time equivalent employees of such corporation or partnership for the year (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such corporation or partnership as determined appropriate by the Secretary,</text></subparagraph></paragraph>
<paragraph id="H997E31638FED4CFEA9A42E1443937870"><enum>(6)</enum><text>with respect to the items of qualified opportunity zone business property held by the qualified opportunity fund—</text> <subparagraph id="HBE09E98F74F74FDF8A5906897DD2CCE4"><enum>(A)</enum><text>the North American Industry Classification System (NAICS) code that applies to the trades or businesses in which such property is held,</text></subparagraph>
<subparagraph id="HD210EB9F94D24E29ACBE93CCA20C463C"><enum>(B)</enum><text>the population census tract in which the property is located,</text></subparagraph> <subparagraph id="H8F98F84B3E3343F09DB54554072F8202"><enum>(C)</enum><text>whether the property is owned or leased,</text></subparagraph>
<subparagraph id="HFF0614EFCC784C4C9886B2FE8CF072C0"><enum>(D)</enum><text>the aggregate value of the items of qualified opportunity zone property held by the qualified opportunity fund as of each date described in section 1400Z–2(d)(1), and</text></subparagraph> <subparagraph id="H783724830F0C4A0389BBA90688C2907D"><enum>(E)</enum><text>in the case of real property, number of residential units (if any),</text></subparagraph></paragraph>
<paragraph id="HD3168C074F6F4B948268F147B98814B9"><enum>(7)</enum><text>the approximate average monthly number of full-time equivalent employees for the year of the trades or businesses of the qualified opportunity fund in which qualified opportunity zone business property is held (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such trades or businesses as determined appropriate by the Secretary,</text></paragraph> <paragraph id="H4FAB9E0F9F514F24AAC4FB5E8EFD5C05"><enum>(8)</enum><text>with respect to each person who disposed of an investment in the qualified opportunity fund during the year—</text>
<subparagraph id="H04E60B2C1B894E37AD22309EEF1B77F6"><enum>(A)</enum><text>the name and taxpayer identification number of such person,</text></subparagraph> <subparagraph id="HB50D4742FB994E5089C4FE8C03B48D4B"><enum>(B)</enum><text>the date or dates on which the investment disposed was acquired, and</text></subparagraph>
<subparagraph id="H5056E6AE2FCA4763942D6E4156CE746D"><enum>(C)</enum><text>the date or dates on which any such investment was disposed and the amount of the investment disposed, and</text></subparagraph></paragraph> <paragraph id="HCD972978A787413281ABCF428A67F6BC"><enum>(9)</enum><text>such other information as the Secretary may require.</text></paragraph></subsection>
<subsection id="H896C3622EFE848D383DD5873E9FC4C82"><enum>(c)</enum><header>Statement required to be furnished to investors</header><text>Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return by reason of subsection (b)(8) a written statement showing—</text> <paragraph id="H7843093F45B54DC9B4981ABB9C44E732"><enum>(1)</enum><text>the name, address and phone number of the information contact of the person required to make such return, and</text></paragraph>
<paragraph id="HAC417415CA334B578414C2E2C8F15108"><enum>(2)</enum><text>the information required to be shown on such return by reason of subsection (b)(8) with respect to the person whose name is required to be so set forth.</text></paragraph></subsection> <subsection id="HC4D594AE11C74416AB32750E56B57238"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="H2363F89FB1F042B78F72C179C5EA865D"><enum>(1)</enum><header>In general</header><text>Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter.</text></paragraph> <paragraph id="H85CA8D4A6E34492F9F98A21744E57161"><enum>(2)</enum><header>Full-time equivalent employees</header><text>The term <quote>full-time equivalent employees</quote> means, with respect to any month, the sum of—</text>
<subparagraph id="HF03AAF961C8B4F1E8DA5365210B90836"><enum>(A)</enum><text>the number of full-time employees (as defined in section 4980H(c)(4)) for the month, plus</text></subparagraph> <subparagraph id="H841E2089356C4942BAC159069B522F3A"><enum>(B)</enum><text>the number of employees determined (under rules similar to the rules of section 4980H(c)(2)(E)) by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120.</text></subparagraph></paragraph></subsection>
<subsection id="H0D3EAC7735F34CB388D392C19A361636" commented="no"><enum>(e)</enum><header>Application to qualified rural opportunity funds</header><text display-inline="yes-display-inline">Every qualified rural opportunity fund (as defined in section 1400Z–2(b)(2)(B)(vii)) shall file the annual return required under subsection (a), and the statements required under subsection (c), applied—</text> <paragraph id="HB94AAE25249943D99D4C366307E35C6C" commented="no"><enum>(1)</enum><text>by substituting <quote>qualified rural opportunity</quote> for <quote>qualified opportunity</quote> each place it appears,</text></paragraph>
<paragraph id="HA29243B65E674D258EF08C3D80908DA3" commented="no"><enum>(2)</enum><text>by substituting <quote>section 1400Z–2(b)(2)(B)(vii)</quote> for <quote>section 1400Z–2(d)(1)</quote> each place it appears, and</text></paragraph> <paragraph id="HEBDE380A98FB44F583532593749CE42E"><enum>(3)</enum><text display-inline="yes-display-inline">by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, a qualified rural opportunity zone business, or qualified opportunity zone business property as stock, an interest, a business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z–2(b)(2)(B)(vii).</text></paragraph></subsection></section>
<section id="H14D18D01C7F7406097AEFB5630ED65CF"><enum>6039L.</enum><header>Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses</header>
<subsection id="H7CB31EAA80074C29BC7B7FAF0D681024"><enum>(a)</enum><header>In general</header><text>Every applicable qualified opportunity zone business shall furnish to the qualified opportunity fund described in subsection (b) a written statement in such manner and setting forth such information as the Secretary may by regulations prescribe for purposes of enabling such qualified opportunity fund to meet the requirements of section 6039K(b)(5).</text></subsection> <subsection id="H2211304B441F4AD8B921B3E388D8C80F"><enum>(b)</enum><header>Applicable qualified opportunity zone business</header><text>For purposes of subsection (a), the term <quote>applicable qualified opportunity zone business</quote> means any qualified opportunity zone business—</text>
<paragraph id="H3C34A5729F7B4E0D838AFA223B5DC5C3"><enum>(1)</enum><text>which is a trade or business of a qualified opportunity fund,</text></paragraph> <paragraph id="HA3D987496F504DDAB764945F6E82DA54"><enum>(2)</enum><text>in which a qualified opportunity fund holds qualified opportunity zone stock, or</text></paragraph>
<paragraph id="H0B410652D87C422D9B34799382496D0C"><enum>(3)</enum><text>in which a qualified opportunity fund holds a qualified opportunity zone partnership interest.</text></paragraph></subsection> <subsection id="H9B1D5BE6939A45F09EA296CACB3AE6BA"><enum>(c)</enum><header>Other terms</header><text>Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter.</text></subsection>
<subsection id="H1F72E681DCE946619CDDA751E17C1220" commented="no"><enum>(d)</enum><header>Application to qualified rural opportunity businesses</header><text display-inline="yes-display-inline">Every applicable qualified rural opportunity zone business (as defined in subsection (b) determined after application of the substitutions described in this sentence) shall furnish the written statement required under subsection (a), applied—</text> <paragraph id="HC0C284E745F1452B896266DFF3A175FF" commented="no"><enum>(1)</enum><text>by substituting <quote>qualified rural opportunity</quote> for <quote>qualified opportunity</quote> each place it appears, and</text></paragraph>
<paragraph id="H1FEE00BE25F1427D897891A7FBDD20AF" commented="no"><enum>(2)</enum><text>by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, or a qualified rural opportunity zone business as stock, an interest, or a business, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z–2(b)(2)(B)(vii).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H1583AA07F58E43C28010F95A9C54A530"><enum>(2)</enum><header>Penalties</header> <subparagraph id="H55DD5A32083B4A028B4F411E7242443E"><enum>(A)</enum><header>In general</header><text>Part II of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/68">chapter 68</external-xref> is amended by inserting after section 6725 the following new section:</text>
<quoted-block style="OLC" id="HD0A010133AAA4C33A9C68F15D4BFD05B">
<section id="H163E59FCBA10403CB46B47DD21C36884"><enum>6726.</enum><header>Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds</header>
<subsection id="HD04DEE659D514D1E8CDAE8E7D414917C"><enum>(a)</enum><header>In general</header><text>In the case of any person required to file a return under section 6039K fails to file a complete and correct return under such section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues.</text></subsection> <subsection id="HE56DB3B3DD1048FCA8B301E79E039824"><enum>(b)</enum><header>Limitation</header> <paragraph id="HEE7E987752DA4CCB9EAA7EB29ED80FA8"><enum>(1)</enum><header>In general</header><text>The maximum penalty under this section on failures with respect to any 1 return shall not exceed $10,000.</text></paragraph>
<paragraph id="H31F16FFAB7B548CE862D9693EA3A486D"><enum>(2)</enum><header>Large qualified opportunity funds</header><text>In the case of any failure described in subsection (a) with respect to a fund the gross assets of which (determined on the last day of the taxable year) are in excess of $10,000,000, paragraph (1) shall be applied by substituting <quote>$50,000</quote> for <quote>$10,000</quote>.</text></paragraph></subsection> <subsection id="H580BC19B1BD84B3B8EAAE86E10FAD2DB"><enum>(c)</enum><header>Penalty in cases of intentional disregard</header><text>If a failure described in subsection (a) is due to intentional disregard, then—</text>
<paragraph id="HFD0E46BE80E74199BB212AE597813D37"><enum>(1)</enum><text>subsection (a) shall be applied by substituting <quote>$2,500</quote> for <quote>$500</quote>,</text></paragraph> <paragraph id="HC821B6ECA9CE4D888C59C4209449CA64"><enum>(2)</enum><text>subsection (b)(1) shall be applied by substituting <quote>$50,000</quote> for <quote>$10,000</quote>, and</text></paragraph>
<paragraph id="H09C2FBD5C8134F03A62832C2B7D75CD6"><enum>(3)</enum><text>subsection (b)(2) shall be applied by substituting <quote>$250,000</quote> for <quote>$50,000</quote>.</text></paragraph></subsection> <subsection id="HA5E69A9974BC4689A432EFE1951B5836"><enum>(d)</enum><header>Inflation adjustment</header> <paragraph id="H13E188D3D9174FB7967841942183A4CB"><enum>(1)</enum><header>In general</header><text>In the case of any failure relating to a return required to be filed in a calendar year beginning after 2025, each of the dollar amounts in subsections (a), (b), and (c) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting <quote>calendar year 2024</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></paragraph>
<paragraph id="HD896325A84674540BECFD10B3C8BC03C"><enum>(2)</enum><header>Rounding</header>
<subparagraph id="H0E76C5B5AD6E4251B30BBF58F8938996"><enum>(A)</enum><header>In general</header><text>If the $500 dollar amount in subsection (a) and (c)(1) or the $2,500 amount in subsection (c)(1), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the next lowest multiple of $10.</text></subparagraph> <subparagraph id="H26B8578721A54ACAA07B32E95BD284BC"><enum>(B)</enum><header>Asset threshold</header><text>If the $10,000,000 dollar amount in subsection (b)(2), after being increased under paragraph (1), is not a multiple of $10,000, such dollar amount shall be rounded to the next lowest multiple of $10,000.</text></subparagraph>
<subparagraph id="H7584B5BB8FC74636821291C022ED0EC5"><enum>(C)</enum><header>Other dollar amounts</header><text>If any dollar amount in subsection (b) or (c) (other than any amount to which subparagraph (A) or (B) applies), after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HFF3EA4A8C4AA4AAA840080C4CCBF95C1"><enum>(B)</enum><header>Information required to be sent to other taxpayers</header><text>Section 6724(d)(2), as amended by the preceding provisions of this Act, is amended—</text>
<clause id="H7CD60A2B2299417E80C37989603091EB"><enum>(i)</enum><text>by striking <quote>or</quote> at the end of subparagraph (LL),</text></clause> <clause id="H4B7B9FCA97954AB2AF810485A0606729"><enum>(ii)</enum><text>by striking the period at the end of the subparagraph (MM) and inserting a comma, and</text></clause>
<clause id="HDE20110333664548A70D0751CC849996"><enum>(iii)</enum><text>by inserting after subparagraph (MM) the following new subparagraphs:</text> <quoted-block style="OLC" id="H00DC6804FED545429D639D7A27E80B7A"> <subparagraph id="HC5FDB37BB4364455849B3EFF752C348F"><enum>(NN)</enum><text>section 6039K(c) (relating to disposition of qualified opportunity fund investments), or</text></subparagraph>
<subparagraph id="H08288BE979B24A4BA89AEA859EE76805"><enum>(OO)</enum><text>section 6039L (relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="H71973D2C0FD441DBB91DE947FA901376"><enum>(3)</enum><header>Electronic filing</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6011">Section 6011(e)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" id="H961C9D0F4D674592925CC740FABFFF3B">
<paragraph id="HC055FC7398434EF8A915760B8CAD521F"><enum>(8)</enum><header>Qualified opportunity funds and qualified rural opportunity funds</header><text>Notwithstanding paragraphs (1) and (2), any return filed by a qualified opportunity fund or qualified rural opportunity fund shall be filed on magnetic media or other machine-readable form.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H9E1FFDBAE135482CBCC9CF068AD31DB5"><enum>(4)</enum><header>Clerical amendments</header> <subparagraph id="HE92EEB658BE840AF894EA5500AD76080"><enum>(A)</enum><text>The table of sections for subpart A of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by inserting after the item relating to section 6039J the following new items:</text>
<quoted-block style="OLC" id="H1ECADA1AF3434775A2157AC01C05EC94">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 6039K. Returns with respect to qualified opportunity funds and qualified rural opportunity funds.</toc-entry>
<toc-entry level="section">Sec. 6039L. Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses.”.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H1355B38EF6604AD1916D670E7991F1A4"><enum>(B)</enum><text>The table of sections for part II of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/68">chapter 68</external-xref> is amended by inserting after the item relating to section 6725 the following new item:</text> <quoted-block style="OLC" id="H44023A55D7FF45A9B1BBA75B11709A92"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 6726. Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HFF5EDA94D544425DB0DCADC252B9D8D3"><enum>(5)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection>
<subsection id="H181658653FC2429CBF21519B6D2F5157"><enum>(e)</enum><header>Secretary reporting of data on opportunity zone and rural opportunity zone tax incentives</header>
<paragraph id="H48077E60071542D3873C4338C5E4E1F0"><enum>(1)</enum><header>In general</header><text>As soon as practical after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury, or the Secretary’s delegate (referred to in this section as the <quote>Secretary</quote>) shall make publicly available a report on qualified opportunity funds.</text></paragraph> <paragraph id="H97BF63E37F184B96965C6355FC54A6ED"><enum>(2)</enum><header>Information included</header><text>The report required under paragraph (1) shall include, to the extent available, the following information:</text>
<subparagraph id="H8C9EE2DC186D46AA996F7EFB0BE2E87F"><enum>(A)</enum><text>The number of qualified opportunity funds.</text></subparagraph> <subparagraph id="HBB7CE7C6E7034B079FC8529DECCE0F6A"><enum>(B)</enum><text>The aggregate dollar amount of assets held in qualified opportunity funds.</text></subparagraph>
<subparagraph id="HE3B57E67D77F4FB88BCA0C0E1231C0E3"><enum>(C)</enum><text>The aggregate dollar amount of investments made by qualified opportunity funds in qualified opportunity fund property, stated separately for each North American Industry Classification System (NAICS) code.</text></subparagraph> <subparagraph id="H8561D3F6FEA143A5A1C0631B75566025"><enum>(D)</enum><text>The percentage of population census tracts designated as qualified opportunity zones that have received qualified opportunity fund investments.</text></subparagraph>
<subparagraph id="H2EBCE0E7E2794921AEC3019921EB0608"><enum>(E)</enum><text>For each population census tract designated as a qualified opportunity zone, the approximate average monthly number of full-time equivalent employees of the qualified opportunity zone businesses in such qualified opportunity zone for the preceding 12-month period (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such qualified opportunity fund businesses as determined appropriate by the Secretary.</text></subparagraph> <subparagraph id="HFD2C39466E48459F92A351A9B23E04AD"><enum>(F)</enum><text>The percentage of the total amount of investments made by qualified opportunity funds in—</text>
<clause id="H6E02DFED0E1447EB82C7D1A27FBADE67"><enum>(i)</enum><text>qualified opportunity zone property which is real property; and</text></clause> <clause id="H2B82C28335CB4DF2A7BF81CD8094DA36"><enum>(ii)</enum><text>other qualified opportunity zone property.</text></clause></subparagraph>
<subparagraph id="H3AD1242A3CFE4460B9652EDD7D02E453"><enum>(G)</enum><text>For each population census tract, the aggregate approximate number of residential units resulting from investments made by qualified opportunity funds in real property.</text></subparagraph> <subparagraph id="H4003B98C2D714F4A9B92B4870D98635A"><enum>(H)</enum><text>The aggregate dollar amount of investments made by qualified opportunity funds in each population census tract.</text></subparagraph></paragraph>
<paragraph id="H444FD26A105940A8B9CC9F63037CBCF8"><enum>(3)</enum><header>Additional information</header>
<subparagraph id="H01F65467A2FF47248933C31DB413E3F9"><enum>(A)</enum><header>In general</header><text>Beginning with the report submitted under paragraph (1) for the 6th year after the date of the enactment of this Act, the Secretary shall include in such report the impacts and outcomes of a designation of a population census tract as a qualified opportunity zone as measured by economic indicators, such as job creation, poverty reduction, new business starts, and other metrics as determined by the Secretary.</text></subparagraph> <subparagraph id="HAB7A2D2E81F54B80BEFBA600110EF628"><enum>(B)</enum><header>Semi-decennial information</header> <clause id="H82DD9300635F4942956CA0D4ACF9839E"><enum>(i)</enum><header>In general</header><text>In the case of any report submitted under paragraph (1) in the 6th year or the 11th year after the date of the enactment of this Act, the Secretary shall include the following information:</text>
<subclause id="H1EEDD5F831AF444BAEE459C818115E19"><enum>(I)</enum><text>For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) between the 5-year period ending on the date of the enactment of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> and the most recent 5-year period for which data is available.</text></subclause> <subclause id="H9488A80E69424ACFBF2B8FE48271D997"><enum>(II)</enum><text>For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) for the most recent 5-year period for which data is available between such population census tracts and a similar population census tracts that were not designated as a qualified opportunity zone.</text></subclause></clause>
<clause id="H3AD8771F2C194FA688AF1047C28FA178"><enum>(ii)</enum><header>Control groups</header><text>For purposes of clause (i), the Secretary may combine population census tracts into such groups as the Secretary determines appropriate for purposes of making comparisons.</text></clause> <clause id="H9274AF02CD6144029C93FDDB1AA90958"><enum>(iii)</enum><header>Factors listed</header><text>The factors listed in this clause are the following:</text>
<subclause id="H17BD8B617C404A4F9AE2945ED1BED03B"><enum>(I)</enum><text>The unemployment rate.</text></subclause> <subclause id="HDA70FF144EC94FD785C9F7E4CBA7DC17"><enum>(II)</enum><text>The number of persons working in the population census tract, including the percentage of such persons who were not residents in the population census tract in the preceding year.</text></subclause>
<subclause id="H48ABC692D33F4CE29895FEADFCF2391A"><enum>(III)</enum><text>Individual, family, and household poverty rates.</text></subclause> <subclause id="HDC41398F87B14AD4A0E6AD41DC6C5069"><enum>(IV)</enum><text>Median family income of residents of the population census tract.</text></subclause>
<subclause id="H65F74E9E7B5841D8AA55F7D4FB4A4376"><enum>(V)</enum><text>Demographic information on residents of the population census tract, including age, income, education, race, and employment.</text></subclause> <subclause id="H3958D94E2F7E406F8368AFE0EA5E4079"><enum>(VI)</enum><text>The average percentage of income of residents of the population census tract spent on rent annually.</text></subclause>
<subclause id="H6740FF5FAA4C4571942F02A558A76F74"><enum>(VII)</enum><text>The number of residences in the population census tract.</text></subclause> <subclause id="H5A6B97E5E7654A5B8CE7AB1B96AC7CEC"><enum>(VIII)</enum><text>The rate of home ownership in the population census tract.</text></subclause>
<subclause id="H4562ABA78CD149C98924CEE1ECD72F28"><enum>(IX)</enum><text>The average value of residential property in the population census tract.</text></subclause> <subclause id="HB9651D8101F74820B27443885B3E7AA4"><enum>(X)</enum><text>The number of affordable housing units in the population census tract.</text></subclause>
<subclause id="H8DCDE7F2A98D44A1823F39E2BC39B499"><enum>(XI)</enum><text>The number and percentage of residents in the population census tract that were not employed for the preceding year.</text></subclause> <subclause id="H7C19B9CC5F904EE098F065FC74093094"><enum>(XII)</enum><text>The number of new business starts in the population census tract.</text></subclause>
<subclause id="HA25938616EE04D829DCA33FFE648363B"><enum>(XIII)</enum><text>The distribution of employees in the population census tract by North American Industry Classification System (NAICS) code.</text></subclause></clause></subparagraph></paragraph> <paragraph id="H09C1B721CB734CF8933366EC13A0DE57"><enum>(4)</enum><header>Protection of identifiable return information</header><text>In making reports required under this subsection, the Secretary—</text>
<subparagraph id="H2D405BF6F03D4FE282C49C9EB2DC0F5B"><enum>(A)</enum><text>shall establish appropriate procedures to ensure that any amounts reported do not disclose taxpayer return information that can be associated with any particular taxpayer or competitive or proprietary information, and</text></subparagraph> <subparagraph id="HFD194116FDF544A3B0E2A7F7F594F74F"><enum>(B)</enum><text>if necessary to protect taxpayer return information, may combine information required with respect to individual population census tracts into larger geographic areas.</text></subparagraph></paragraph>
<paragraph id="H914AC2F13D8D427BA43724BD7D241513"><enum>(5)</enum><header>Definitions</header><text>Any term used in this subsection which is also used in subchapter Z of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 shall have the meaning given such term under such subchapter.</text></paragraph> <paragraph id="HB9A2BF8987844364A9AF8E018A504AFD" commented="no"><enum>(6)</enum><header>Reports on qualified rural opportunity funds</header><text>The Secretary shall make publicly available, with respect to qualified rural opportunity funds, separate reports as required under this subsection, applied—</text>
<subparagraph id="H91525B9338FE474FA0CB77093EA2B7E0" commented="no"><enum>(A)</enum><text>by substituting <quote>qualified rural opportunity</quote> for <quote>qualified opportunity</quote> each place it appears,</text></subparagraph> <subparagraph id="HCE128439DE2645F8927C159F14B4FF21" commented="no"><enum>(B)</enum><text>by substituting a reference to this Act for <quote>Public Law 115–97</quote>, and</text></subparagraph>
<subparagraph id="H119D1DB2CEE14D9FB946896289C42CF0" commented="no"><enum>(C)</enum><text>by treating any reference (after the application of subparagraph (A)) to qualified rural opportunity zone stock, qualified rural opportunity zone partnership interest, qualified rural opportunity zone business, or qualified opportunity zone business property as stock, interest, business, or property, respectively, described in subclause (I) or (II), as the case may be, of <external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">section 1400Z–2(b)(2)(B)(vii)</external-xref> of the Internal Revenue Code of 1986.</text></subparagraph></paragraph></subsection></section> <section id="HDDF46DB07F3D4BFB9A595B281C0B6BF9"><enum>111103.</enum><header>Increased dollar limitations for expensing of certain depreciable business assets</header> <subsection id="H2C4D8530C6E64EE8AB4236EC4BFCB40E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/179">Section 179(b)</external-xref> is amended—</text>
<paragraph id="HACDDDE66D19343E0BF867E5823F7B48B"><enum>(1)</enum><text>in paragraph (1), by striking <quote>$1,000,000</quote> and inserting <quote>$2,500,000</quote> , and</text></paragraph> <paragraph id="H2B92D31278F34FF5A15588D6CCD5FA09"><enum>(2)</enum><text>in paragraph (2), by striking <quote>$2,500,000</quote> and inserting <quote>$4,000,000</quote>. </text></paragraph></subsection>
<subsection id="H105015CE85C64D75B199DF64EDCCD27D"><enum>(b)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179">Section 179(b)(6)(A)</external-xref> is amended—</text> <paragraph id="H52B5D261B37648518EEB6CDC115F4360"><enum>(1)</enum><text>by inserting <quote>(2025 in the case of the dollar amounts in paragraphs (1) and (2))</quote> after <quote>In the case of any taxable year beginning after 2018</quote>, and</text></paragraph>
<paragraph id="H539A835B54ED4F55912DC0286262BC61"><enum>(2)</enum><text>in clause (ii), by striking <quote>determined by substituting <quote>calendar year 2017</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</quote> and inserting </text> <quoted-block style="OLC" id="H1DF8C25433CE476B8B6D60E00495BDF8" display-inline="yes-display-inline"><text display-inline="yes-display-inline">determined by substituting in subparagraph (A)(ii) thereof—</text>
<subclause id="H3C089E7A009F438BAB2D53B6E210DC4B"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of amounts in paragraphs (1) and (2), <quote>calendar year 2024</quote> for <quote>calendar year 2016</quote>, and</text></subclause> <subclause id="HE111118715C94FF6AE166751B5A35E63"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of the amount in paragraph (5)(A), <quote>calendar year 2017</quote> for <quote>calendar year 2016</quote>.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H6CD786AD45CD4929A1002219A55B3DDF"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2024.</text></subsection></section> <section id="H221D6B527EE6473FB33C310FA5EE6512"><enum>111104.</enum><header>Repeal of revision to de minimis rules for third party network transactions</header> <subsection id="H703EC35CA82A4B899EA47F726E6517B7"><enum>(a)</enum><header>Reinstatement of exception for de minimis payments as in effect prior to enactment of American Rescue Plan Act of 2021</header> <paragraph id="H7C6C7950B9D64306B501575E19E4D370"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6050W">Section 6050W(e)</external-xref> is amended to read as follows: </text>
<quoted-block style="OLC" id="H76972820D42C4F9BAFF2B632C201DBE8" display-inline="no-display-inline">
<subsection id="HF6F0F1FDFDCD4972B5987F1B8F406B4A"><enum>(e)</enum><header>Exception for de minimis payments by third party settlement organizations</header><text display-inline="yes-display-inline">A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if—</text> <paragraph id="HC8BE3C22D155483594BF7C5CEE5FCE4C"><enum>(1)</enum><text display-inline="yes-display-inline">the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and</text></paragraph>
<paragraph id="H532E79B7005D404D8D6B28A7001C6DB5"><enum>(2)</enum><text>the aggregate number of such transactions exceeds 200. </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H3CCF43899F0B424583DAD0DA5054372C"><enum>(2)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this subsection shall take effect as if included in section 9674 of the American Rescue Plan Act. </text></paragraph></subsection>
<subsection id="HEB13FEFC4C864835BE98E33B0E5F4323"><enum>(b)</enum><header>Application of de minimis rule for third party network transactions to backup withholding</header>
<paragraph id="H69B85682618A4D1C9CB5D49BAF19F69C"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/3406">Section 3406(b)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block id="H986D72C88E184BA5A805C160816ECB58" style="OLC"> <paragraph id="H130AA41EF942445886FEA0DEECB14E7C"><enum>(8)</enum><header>Other reportable payments include payments in settlement of third party network transactions only where aggregate transactions exceed reporting threshold for the calendar year</header> <subparagraph id="HCDAF8038CDE24BB08AFB70E9DA54AF7F"><enum>(A)</enum><header>In general</header><text>Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if—</text>
<clause id="H2384C2ED1A9A411DB57A0B119276315B"><enum>(i)</enum><text>the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and</text></clause> <clause id="H9390793003C9474298D4CD74448AE3ED"><enum>(ii)</enum><text>the aggregate amount of transactions with respect to the participating payee during such calendar year exceeds the dollar amount specified in section 6050W(e)(1) at the time of such payment.</text></clause></subparagraph>
<subparagraph id="HD148C14DE50D44F7A036B0B498B17A22"><enum>(B)</enum><header>Exception if third party network transactions made in prior year were reportable</header><text>Subparagraph (A) shall not apply with respect to payments to any participating payee during any calendar year if one or more payments in settlement of third party network transactions made by the payor to the participating payee during the preceding calendar year were reportable payments.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HC2F19342C703423F9D453D81005D8894"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to calendar years beginning after December 31, 2024.</text></paragraph></subsection></section>
<section id="HAAE6AA89E8B749BDBB13B6C902384560" section-type="subsequent-section"><enum>111105.</enum><header>Increase in threshold for requiring information reporting with respect to certain payees</header>
<subsection id="H6250A4AE169C4F23B47BBF55E209486B"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6041">Section 6041(a)</external-xref> is amended by striking <quote>$600</quote> and inserting <quote>$2,000</quote>.</text></subsection> <subsection id="H1A6F617B4B214BD69B70F0B0D63EC538"><enum>(b)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6041">Section 6041</external-xref> is amended by adding at the end the following new subsection:</text>
<quoted-block id="H24D47C8A1E9E40B3B581BC9C6170BC25" style="OLC">
<subsection id="H5DDE1E846F8B471893315D791A1413DC"><enum>(h)</enum><header>Inflation adjustment</header><text>In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to—</text> <paragraph id="HB57DF331FC054FD091F9E89E7503FD93"><enum>(1)</enum><text>such dollar amount, multiplied by</text></paragraph>
<paragraph id="H901277501DF24B399F83B36B55155910"><enum>(2)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting <quote>calendar year 2025</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></paragraph><continuation-text continuation-text-level="subsection">If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H57547915B78A43F3941972B271916694"><enum>(c)</enum><header>Application to reporting on remuneration for services</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6041A">Section 6041A(a)(2)</external-xref> is amended by striking <quote>is $600 or more</quote> and inserting <quote>equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)</quote>.</text></subsection>
<subsection id="HD529CCCBB73541F2AFDAD574011F85D4"><enum>(d)</enum><header>Application to backup withholding</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/3406">Section 3406(b)(6)</external-xref> is amended—</text> <paragraph id="H8C25015E607A499EB0AB456069B146F8"><enum>(1)</enum><text>by striking <quote>$600</quote> in subparagraph (A) and inserting <quote>the dollar amount in effect for such calendar year under section 6041(a)</quote>, and</text></paragraph>
<paragraph id="H57283F3CF7D1400FBA23B9D562AA0085"><enum>(2)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">only where aggregate for calendar year is <enum-in-header>$600</enum-in-header> or more</header-in-text></quote> in the heading and inserting <quote><header-in-text level="paragraph" style="OLC">only if in excess of threshold</header-in-text></quote>. </text></paragraph></subsection> <subsection id="HE219CEA2C3A045D1BCA9D7A0F8A73EC3"><enum>(e)</enum><header>Conforming amendments</header> <paragraph id="HDAABB5F0DE624913873618BB4F2C60B7"><enum>(1)</enum><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/6041">section 6041(a)</external-xref> is amended by striking <quote><header-in-text level="subsection" style="OLC">of $600 or more</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">exceeding threshold</header-in-text></quote>.</text></paragraph>
<paragraph id="H5E86AB0667A845F595D33BE90FF1C336"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6041">Section 6041(a)</external-xref> is amended by striking <quote>taxable year</quote> and inserting <quote>calendar year</quote>.</text></paragraph></subsection> <subsection id="H51803C9A90BE4521B67B340DDC1AF5C0"><enum>(f)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply with respect to payments made after December 31, 2025.</text></subsection></section>
<section id="H4253C8F5B3194867A975565B36B69F5F"><enum>111106.</enum><header>Exclusion of interest on loans secured by rural or agricultural real property</header>
<subsection id="H91346A70BC414B44830F01C7B1A1AB1F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139J the following new section: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H7FD914F9EBDE49FD8C69C219E17DE821"> <section id="H43F5241D6BF64BC799DE64652D1AA0AD"><enum>139K.</enum><header>Interest on loans secured by rural or agricultural real property</header> <subsection id="H3736E3851D17422BBE8FC923E74D3776"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Gross income shall not include 25 percent of the interest received by a qualified lender on any qualified real estate loan.</text></subsection>
<subsection id="H38E49A83396B4976A96E743FCC8B83B1"><enum>(b)</enum><header>Qualified lender</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>qualified lender</term> means—</text> <paragraph id="HD6B5D0EF82F04E17AEF963F135AB5199"><enum>(1)</enum><text>any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811 et seq.</external-xref>),</text></paragraph>
<paragraph id="HBAD66C728B3144DB85314099A7C650DE" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text display-inline="yes-display-inline">any State- or federally-regulated insurance company,</text></paragraph> <paragraph id="H8C6B6812523F4EF5A116371E57293D69"><enum>(3)</enum><text>any entity wholly owned, directly or indirectly, by a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3106">12 U.S.C. 3106</external-xref>) if—</text>
<subparagraph id="H965D3A4328094274B7A8F56D6BB9DAFA"><enum>(A)</enum><text>such entity is organized, incorporated, or established under the laws of the United States or any State of the United States, and </text></subparagraph> <subparagraph id="H0715CC5333524585B26F66167B9BA84D"><enum>(B)</enum><text>the principal place of business of such entity is in the United States (including any territory of the United States),</text></subparagraph></paragraph>
<paragraph id="H559B76EBE47945D3B1A5C568A862EB8E" commented="no" display-inline="no-display-inline"><enum>(4)</enum><text>any entity wholly owned, directly or indirectly, by a company that is considered an insurance holding company under the laws of any State if such entity satisfies the requirements described in subparagraphs (A) and (B) of paragraph (3), and</text></paragraph> <paragraph id="HBCA927FE495042038B2D219521F5CC07" commented="no" display-inline="no-display-inline"><enum>(5)</enum><text>with respect to interest received on a qualified real estate loan secured by real estate described in subsection (c)(3)(A), any federally chartered instrumentality of the United States established under section 8.1(a) of the Farm Credit Act of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/12/2279aa-1">12 U.S.C. 2279aa-1(a)</external-xref>).</text></paragraph></subsection>
<subsection id="H1320C7AEE3C044F999A377EA54287E65"><enum>(c)</enum><header>Qualified real estate loan</header><text>For purposes of this section—</text> <paragraph id="HD7E30BB666E0499DA87EDE9AC630F6B6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified real estate loan</term> means any loan—</text>
<subparagraph id="HDD5A91660A454443B2BBB53D9082B1F5"><enum>(A)</enum><text display-inline="yes-display-inline">secured by—</text> <clause id="HD1DF57C1D5A04B71A360F864A76465EC"><enum>(i)</enum><text>rural or agricultural real estate, or</text></clause>
<clause id="H2FBF85581A7549B08FB326091A567C9A"><enum>(ii)</enum><text display-inline="yes-display-inline">a leasehold mortgage (with a status as a lien) on rural or agricultural real estate,</text></clause></subparagraph> <subparagraph id="H8F288278FE5E47198ADAD91FEC980B04"><enum>(B)</enum><text>made to a person other than a specified foreign entity (as defined in section 7701(a)(51)), and </text></subparagraph>
<subparagraph id="H3576B44D1B8D4B6E8314235640967DDA"><enum>(C)</enum><text>made after the date of the enactment of this section and before January 1, 2029.</text></subparagraph><continuation-text continuation-text-level="paragraph">For purposes of the preceding sentence, the determination of whether property securing such loan is rural or agricultural real estate shall be made as of the time the interest income on such loan is accrued.</continuation-text></paragraph> <paragraph id="HF70633EFCE18428A9659544C5C5803CF"><enum>(2)</enum><header>Refinancings</header><text>For purposes of subparagraphs (A) and (C) of paragraph (1), a loan shall not be treated as made after the date of the enactment of this section to the extent that the proceeds of such loan are used to refinance a loan which was made on or before the date of the enactment of this section (or, in the case of any series of refinancings, the original loan was made on or before such date).</text></paragraph>
<paragraph id="HAC2C958548F648079BB7116D8B99C30D"><enum>(3)</enum><header>Rural or agricultural real estate</header><text display-inline="yes-display-inline">The term <term>rural or agricultural real estate</term> means—</text> <subparagraph id="H1C78F1ECFED0459AB492E76584454CFE"><enum>(A)</enum><text display-inline="yes-display-inline">any real property which is substantially used for the production of one or more agricultural products,</text></subparagraph>
<subparagraph id="H0BAF50697D384BA587E56CD54AAC150D"><enum>(B)</enum><text>any real property which is substantially used in the trade or business of fishing or seafood processing, and</text></subparagraph> <subparagraph id="H42016FF1EC954CEFBF48EF1E00EB7E54"><enum>(C)</enum><text display-inline="yes-display-inline">any aquaculture facility.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such term shall not include any property which is not located in a State or a possession of the United States.</continuation-text></paragraph>
<paragraph id="HC3DA1FB61F2B4B14B8C73545E2AA2869"><enum>(4)</enum><header>Aquaculture facility</header><text>The term <term>aquaculture facility</term> means any land, structure, or other appurtenance that is used for aquaculture (including any hatchery, rearing pond, raceway, pen, or incubator).</text></paragraph></subsection> <subsection id="H3BBC126D67F64644B6FA0F53D3A27D5F" commented="no"><enum>(d)</enum><header>Coordination with section 265</header><text>Qualified real estate loans shall be treated as obligations described in section 265(a)(2) the interest on which is wholly exempt from the taxes imposed by this subtitle.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H97E785D365D74CBDBEADA5F3D2E7C04B"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139J the following new item:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H5ECE4E8491AD47DAA6E9630A4599D338"> <toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded" idref="H7FD914F9EBDE49FD8C69C219E17DE821"> <toc-entry level="section" idref="H43F5241D6BF64BC799DE64652D1AA0AD">Sec. 139K. Interest on loans secured by rural or agricultural real property.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HA2E7A15C03974A118BA8FAEB2BE38E0D"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.</text></subsection></section>
<section id="H41ED09AB245A4437949587742C1633A5" section-type="subsequent-section" display-inline="no-display-inline"><enum>111107.</enum><header>Treatment of certain qualified sound recording productions</header>
<subsection id="H1C1AA431259249928ED6DF39AC052931"><enum>(a)</enum><header>Election To treat costs as expenses</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/181">Section 181(a)(1)</external-xref> is amended by striking <quote>qualified film or television production, and any qualified live theatrical production,</quote> and inserting <quote>qualified film or television production, any qualified live theatrical production, and any qualified sound recording production</quote>.</text></subsection> <subsection id="HCAFDC60AD8B24E78AAA392A4524207D4"><enum>(b)</enum><header>Dollar limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/181">Section 181(a)(2)</external-xref> is amended by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H8478EB738AEE460EA3A2D605A0522D25" display-inline="no-display-inline">
<subparagraph id="H7B95F7C2013D49DE9041A9D358013626"><enum>(C)</enum><header>Qualified sound recording production</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H2FAB235F234C4F8AB5881EA37AE39BF7"><enum>(c)</enum><header>No other deduction or amortization deduction allowable</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/181">Section 181(b)</external-xref> is amended by striking <quote>qualified film or television production or any qualified live theatrical production</quote> and inserting <quote>qualified film or television production, any qualified live theatrical production, or any qualified sound recording production</quote>.</text></subsection>
<subsection id="HC3DDA57C7864425F88E7D33A71A357B1"><enum>(d)</enum><header>Election</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/181">Section 181(c)(1)</external-xref> is amended by striking <quote>qualified film or television production or any qualified live theatrical production</quote> and inserting <quote>qualified film or television production, any qualified live theatrical production, or any qualified sound recording production</quote>.</text></subsection> <subsection id="H7AF562A2FD18474AB406275E4B4B86DF"><enum>(e)</enum><header>Qualified sound recording production defined</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/181">Section 181</external-xref> is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection:</text>
<quoted-block style="OLC" id="H720A548B361B40D6BDF31E6B6D201919" display-inline="no-display-inline">
<subsection id="H3F2A032A59CF4C1CB1745F5031421968"><enum>(f)</enum><header>Qualified sound recording production</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>qualified sound recording production</term> means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HD4AD6B3DBBA14846A244F7B0AE2BFC96"><enum>(f)</enum><header>Application of termination</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/181">Section 181(g)</external-xref> is amended by striking <quote>qualified film and television productions or qualified live theatrical productions</quote> and inserting <quote>qualified film and television productions, qualified live theatrical productions, and qualified sound recording productions</quote>.</text></subsection>
<subsection id="HD6690BB9811244DFBA46B433058CACA6"><enum>(g)</enum><header>Bonus depreciation</header>
<paragraph id="HA3B1FFBF9E9B4153855D16E55F68DFC1"><enum>(1)</enum><header>Qualified sound recording production as qualified property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(k)(2)(A)(i)</external-xref> is amended—</text> <subparagraph id="H2B8414C6747B45A0A0B7C3754D82A384"><enum>(A)</enum><text>by striking <quote>or</quote> at the end of subclause (IV), by inserting <quote>or</quote> at the end of subclause (V), and by inserting after subclause (V) the following:</text>
<quoted-block style="OLC" id="HDF92536C1FED4CA0AA23BFBC0D4956FF" display-inline="no-display-inline">
<subclause id="H7D1AB2E8B6344F4898A9428EB452106B"><enum>(VI)</enum><text display-inline="yes-display-inline">which is a qualified sound recording production (as defined in subsection (f) of section 181) which is placed in service before January 1, 2029, for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) of such section or this subsection, and</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H6DDDDC7C610A451CBFC229588F53AA5A"><enum>(B)</enum><text>in subclauses (IV) and (V) (as so amended) by striking <quote>without regard to subsections (a)(2) and (g)</quote> both places it appears and inserting <quote>without regard to subsections (a)(2) and (h)</quote>.</text></subparagraph></paragraph>
<paragraph id="H35DAA3674C2D4BFBA572F90D102D8D40"><enum>(2)</enum><header>Production placed in service</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(k)(2)(H)</external-xref> is amended by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii) and inserting <quote>, and</quote>, and by adding after clause (ii) the following:</text> <quoted-block style="OLC" id="HB86F9C239B344F54B33257F5D54384CC" display-inline="no-display-inline"> <clause id="H5535858A11F04FF3821816EC5004D760"><enum>(iii)</enum><text display-inline="yes-display-inline">a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HE5A55818316F4734AE5886BCADFB3B65"><enum>(h)</enum><header>Conforming amendments</header>
<paragraph id="HDAA05E26843643EAB804CC213F2A879D"><enum>(1)</enum><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/26/181">section 181</external-xref> is amended to read as follows: <quote><header-in-text level="section" style="OLC">Treatment of certain qualified productions</header-in-text>.</quote>.</text></paragraph> <paragraph id="HB3E5D378D6554CF6855A743ED0B55EB3"><enum>(2)</enum><text>The table of sections for part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 181 and inserting the following new item:</text>
<quoted-block style="OLC" id="H747E1C60061D4E7087932E6E8FB9C2DC" display-inline="no-display-inline">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 181. Treatment of certain qualified productions.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H0A51284D6F6B4B0B966950AA411D8FA0"><enum>(i)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act.</text></subsection></section> <section id="HBCC380F8D2AE4E84A9CC1D76D4CFBBF2"><enum>111108.</enum><header>Modifications to low-income housing credit</header> <subsection id="H54EE206AB4C84C79B30D22B99B8F8081" commented="no"><enum>(a)</enum><header>State housing credit ceiling increase for low-income housing credit</header> <paragraph id="H922938008C9B40B48D7BC7A40CE796F0" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/42">Section 42(h)(3)(I)</external-xref> is amended—</text>
<subparagraph id="HB97EF903907E43CBB7B84F2B39A06700"><enum>(A)</enum><text>by striking <quote>and 2021,</quote> and inserting <quote>2021, 2026, 2027, 2028, and 2029,</quote>, and</text></subparagraph> <subparagraph id="H87E4024D66034B5A9E004F965E7AB995"><enum>(B)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">2018, 2019, 2020, and 2021</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subparagraph" style="OLC">certain calendar years</header-in-text></quote>. </text></subparagraph></paragraph>
<paragraph id="H512E6D72EAA4408C8F70B637D4181F5C" commented="no"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to calendar years after 2025.</text></paragraph></subsection> <subsection id="HA2A37957F926492E81451588BA6CDAA0"><enum>(b)</enum><header>Tax-exempt bond financing requirement</header> <paragraph id="H22AB73ED770B41C1AEF12D211744C7E7"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/42">Section 42(h)(4)</external-xref> is amended by striking subparagraph (B) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H909C481A4CFD4209BFCED5A955164AD9">
<subparagraph id="H257C6E752194406380DDB0F83119F07B"><enum>(B)</enum><header>Special rule where minimum percent of buildings is financed with tax-exempt bonds subject to volume cap</header><text>For purposes of subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to a building if—</text> <clause id="H41A84E86D77F487994E7EE4BF8DD8547"><enum>(i)</enum><text>50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or</text></clause>
<clause id="HF2AC93876D354A8B86074CFA4741F7AA"><enum>(ii)</enum>
<subclause id="H8E7C901FCCD94650B39EA232EEAB9F1A" commented="no" display-inline="yes-display-inline"><enum>(I)</enum><text>25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more qualified obligations, and </text></subclause> <subclause id="HC30F1E6194054C7AAE831345E4D29289" indent="up1" commented="no" display-inline="no-display-inline"><enum>(II)</enum><text display-inline="yes-display-inline">1 or more of such qualified obligations—</text>
<item id="H878F8061F345492A86937A7745EDCBF4" commented="no" display-inline="no-display-inline"><enum>(aa)</enum><text display-inline="yes-display-inline">are part of an issue the issue date of which is after December 31, 2025, and</text></item> <item id="HBFDEABB598594F93887AAFDE2816142C" commented="no" display-inline="no-display-inline"><enum>(bb)</enum><text display-inline="yes-display-inline">provide the financing for not less than 5 percent of the aggregate basis of such building and the land on which the building is located. </text></item></subclause></clause></subparagraph>
<subparagraph id="HB8856065A9F3437AB5A31926644BCCF3" commented="no" display-inline="no-display-inline"><enum>(C)</enum><header>Qualified obligation</header><text display-inline="yes-display-inline">For purposes of subparagraph (B)(ii), the term <term>qualified obligation</term> means an obligation which is described in subparagraph (A) and which is part of an issue the issue date of which is before January 1, 2030.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H2F454160D3714191AB8FE2AA00F4C266" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header display-inline="yes-display-inline">Effective date</header> <subparagraph id="HBF54C9001F204684BFF5753091799A1D" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The amendment made by this subsection shall apply to buildings placed in service in taxable years beginning after December 31, 2025.</text></subparagraph>
<subparagraph id="H9A015FFDC7F047638663AB2D07410683" commented="no" display-inline="no-display-inline"><enum>(B)</enum><header>Rehabilitation expenditures treated as separate new building</header><text>In the case of any building with respect to which any expenditures are treated as a separate new building under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(e)</external-xref> of the Internal Revenue Code of 1986, for purposes of subparagraph (A), both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section 42(e)(4) of such Code.</text></subparagraph></paragraph></subsection> <subsection id="H5A6A3D7728584DBA9C0465553AE19525"><enum>(c)</enum><header>Temporary inclusion of Indian areas and rural areas as difficult development areas for purposes of certain buildings</header> <paragraph id="H5D7CB75784DA4268920C9ACD09B3EF75"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/42">Section 42(d)(5)(B)(iii)(I)</external-xref> is amended by inserting before the period the following: <quote>, and, in the case of buildings placed in service after December 31, 2025 and before January 1, 2030, any Indian area or rural area</quote>.</text></paragraph>
<paragraph id="H7CBA0647A033415AB6A1BFBAFCEA8FA1"><enum>(2)</enum><header>Indian area; rural area</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/42">Section 42(d)(5)(B)(iii)</external-xref> is amended by redesignating subclause (II) as subclause (IV) and by inserting after subclause (I) the following new subclauses:</text> <quoted-block style="OLC" act-name="" id="H2810438D1C9F4C18BDB39655D588ED15"> <subclause id="H18616EBB085F45E280861F475B2CC55B"><enum>(II)</enum><header>Indian area</header><text>For purposes of subclause (I), the term <term>Indian area</term> means any Indian area (as defined in section 4(11) of the Native American Housing Assistance and Self Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103(11)</external-xref>)) and any housing area (as defined in section 801(5) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/25/4221">25 U.S.C. 4221(5)</external-xref>)).</text></subclause>
<subclause id="H9150E53D4C7C44FB80EB51157D7C94DF"><enum>(III)</enum><header>Rural area</header><text>For purposes of subclause (I), the term <term>rural area</term> means any non-metropolitan area, or any rural area as defined by section 520 of the Housing Act of 1949, which is identified by the qualified allocation plan under subsection (m)(1)(B).</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HFFA6E69D4B68454BA742F04CA40BE403"><enum>(3)</enum><header>Eligible buildings</header><text>Section 42(d)(5)(B)(iii), as amended by paragraph (2), is further amended by adding at the end the following new subclause:</text>
<quoted-block style="OLC" act-name="" id="H349BA0B6E2C24C7C8BCCD1B0CF49B7BC">
<subclause id="HEA2F6FF029E04F249BED23C74708763E"><enum>(V)</enum><header>Special rule for buildings in Indian areas</header><text display-inline="yes-display-inline">In the case of an area which is a difficult development area solely because it is an Indian area under this section, a building shall not be treated as located in such area unless such building is assisted or financed under the Native American Housing Assistance and Self Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4101">25 U.S.C. 4101 et seq.</external-xref>) or the project sponsor is an Indian tribe (as defined in section 45A(c)(6)), a tribally designated housing entity (as defined in section 4(22) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103(22)</external-xref>)), or wholly owned or controlled by such an Indian tribe or tribally designated housing entity.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H910E46DF31384B0BB1D33B3DBC317789"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to buildings placed in service after December 31, 2025.</text></paragraph></subsection></section>
<section id="H2CA1098B2A13434498B2AE2C42BD6FEA" commented="no" section-type="subsequent-section"><enum>111109.</enum><header>Increased gross receipts threshold for small manufacturing businesses</header>
<subsection id="H6D37C13631E541A0992D2A5AB16AAEFC" commented="no"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/448">Section 448(c)</external-xref> is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H3B6DE56165F741209CFCD3C376A842A5"> <paragraph id="H28D454EE93D544E698A50F9825ED3D92" commented="no"><enum>(4)</enum><header>Gross receipts test for manufacturing taxpayers</header><text display-inline="yes-display-inline">In the case of a manufacturing taxpayer, paragraph (1) shall be applied by substituting <quote>$80,000,000</quote> for <quote>$25,000,000</quote>. </text></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection>
<subsection id="H36DF9E0E5FB847FFA10A1D2AFB6B4703" commented="no"><enum>(b)</enum><header>Inflation adjustment</header><text>Section 448(c)(5) (as so redesignated) is amended by striking <quote>the dollar amount in paragraph (1) shall be increased</quote> and inserting <quote>the dollar amounts in paragraphs (1) and (4) shall each be increased</quote>. </text></subsection> <subsection id="HFBBE2357070C4712917C8A49DF4E05F8" commented="no"><enum>(c)</enum><header>Manufacturing taxpayer defined</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/448">Section 448(d)</external-xref> is amended by redesignating paragraph (8) as paragraph (9) and by inserting after paragraph (7) the following new paragraph: </text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H26367788BBB74BA59421F1A2509B401E">
<paragraph id="H39F311BC2182461CB12A0BB66BE2C22C" commented="no"><enum>(8)</enum><header>Manufacturing taxpayer</header>
<subparagraph id="H12F3515586D64AD196DFE2E994AFE5B2" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>manufacturing taxpayer</quote> means a corporation or partnership substantially all the gross receipts of which during the 3-taxable-year period described in subsection (c)(1) are derived from the lease, rental, license, sale, exchange, or other disposition of qualified products.</text></subparagraph> <subparagraph id="HE0DAF753499B4E1DAFAD7F7D70EEB853"><enum>(B)</enum><header>Qualified product</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <quote>qualified product</quote> means a product that is both—</text>
<clause id="HDB74F55566984B18B5B8F1A5CCB898F6"><enum>(i)</enum><text display-inline="yes-display-inline">tangible personal property which is not a food or beverage prepared in the same building as a retail establishment in which substantially similar property is sold to the public, and </text></clause> <clause id="HFA73D3A05DAB4E5EA23E859B1FE96752"><enum>(ii)</enum><text display-inline="yes-display-inline">produced or manufactured by the taxpayer in a manner which results in a substantial transformation (within the meaning of section 168(n)(2)(D)) of the property comprising the product.</text></clause></subparagraph>
<subparagraph id="HF56209A76B534B28951281C4A6B39168" commented="no"><enum>(C)</enum><header>Aggregation rule</header><text display-inline="yes-display-inline">Solely for purposes of determining whether a taxpayer is a manufacturing taxpayer under subparagraph (A)—</text> <clause id="HE11B1D3194A049199DF7904ED3836835"><enum>(i)</enum><text>gross receipts shall be determined under the rules of paragraphs (2) and (3) of subsection (c), and</text></clause>
<clause id="H6BE20C39EEDC48D4A57C726E3BD900E4"><enum>(ii)</enum><text>for purposes of subsection (c)(2), in applying section 52(b), the term <term>trade or business</term> shall include any activity treated as a trade or business under paragraph (5) or (6) of section 469(c) (determined without regard to the phrase <quote>To the extent provided in regulations</quote> in such paragraph (6)).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9138206768364C9385EDAA74F975E15F" commented="no"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025. </text></subsection></section>
<section id="HB97E3AE7A2094E64A496414BEC9EA913"><enum>111110.</enum><header>Global intangible low-taxed income determined without regard to certain income derived from services performed in the Virgin Islands</header>
<subsection id="HA7E7B63D4D0241938012176FFA73D1A1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/951A">Section 951A(c)(2)(A)(i)</external-xref> is amended by striking <quote>and</quote> at the end of subclause (IV), by striking <quote>, over</quote> at the end of subclause (V) and inserting <quote>, and</quote>, and by adding at the end the following new subclause: </text> <quoted-block style="OLC" id="HE8E6105F2B214786B0107AA8E227EBAC" display-inline="no-display-inline"> <subclause id="H75BCB0CD33F3408C873DE45AF77FD36B"><enum>(VI)</enum><text display-inline="yes-display-inline">in the case of any specified United States shareholder, any qualified Virgin Islands services income, over</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA9230B3488EA42DE9718B9566F0CB0BE"><enum>(b)</enum><header>Definitions and special rules</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/951A">Section 951A(c)(2)</external-xref> is amended by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" id="H633B5D97DA83484684F711E690DAEF94" display-inline="no-display-inline"> <subparagraph id="H7E564210187A40F5A3D351C1987315C3"><enum>(C)</enum><header>Provisions related to qualified Virgin Islands services income</header><text display-inline="yes-display-inline">For purposes of subparagraph (A)(i)(VI)—</text>
<clause id="H0CF561163FEE41C998B5816864597117"><enum>(i)</enum><header>Qualified Virgin Islands services income</header><text>The term <quote>qualified Virgin Islands services income</quote> means any gross income which satisfies all of the following requirements:</text> <subclause id="H8ACD5A05A4A342E58F2CDCC2C5443970"><enum>(I)</enum><text display-inline="yes-display-inline">Such gross income is compensation for labor or personal services performed in the Virgin Islands by a corporation formed under the laws of the Virgin Islands.</text></subclause>
<subclause id="HE0FEB6C2B3FC4D618C5D5A947781CB30"><enum>(II)</enum><text>Such gross income is attributable to services performed from within the Virgin Islands by individuals for the benefit of such corporation.</text></subclause> <subclause id="H9BC07EF30EF743A480382EA75771EDEE"><enum>(III)</enum><text>Such gross income is effectively connected with the conduct of a trade or business within the Virgin Islands.</text></subclause></clause>
<clause id="H157759D04DAB43BF856AAD4C86B7916B"><enum>(ii)</enum><header>Specified United States shareholder</header><text>The term <quote>specified United States shareholder</quote> means any United States shareholder which is—</text> <subclause id="H2EB2706A02CD4C6EBB5DAE7C3D996A6F"><enum>(I)</enum><text>an individual, trust, or estate, or</text></subclause>
<subclause id="H46A1903E8B3843E2BD8FC454751C86DA"><enum>(II)</enum><text>a closely held C corporation (as defined in section 469(j)(1)) if such corporation acquired its direct or indirect equity interest in the foreign corporation which derived the qualified Virgin Islands services income before December 31, 2023.</text></subclause></clause> <clause id="H4ED5BF184D4F4F6C923EF782F4C8A8A8"><enum>(iii)</enum><header>Regulations</header><text>The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out this subparagraph and subparagraph (A)(i)(VI), including regulations or other guidance to prevent the abuse of such subparagraphs.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H7D6DED590A8F42CEACFB52271F0A55C0"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years of foreign corporations beginning after the date of the enactment of this Act, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.</text></subsection></section> <section id="H340F24062BA541B889A6D43B43DCC474"><enum>111111.</enum><header>Extension and modification of clean fuel production credit</header> <subsection commented="no" display-inline="no-display-inline" id="HD4BBC8F14B224017A552FE99D1D0DC4F"><enum>(a)</enum><header>Prohibition on foreign feedstocks</header> <paragraph commented="no" display-inline="no-display-inline" id="H7A0DF1104B694A7FB683F80462C26C6A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Z">Section 45Z(f)(1)(A)</external-xref> is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H67D35A8BB0E349C381F77EA5D88FFC67"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (i)(II)(bb), by striking <quote>and</quote> at the end,</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HEE85458A520344FCB03ED8E609171ADE"><enum>(B)</enum><text>in clause (ii), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H582A923073AA4B9A98BC405BC9360486"><enum>(C)</enum><text>by adding at the end the following new clause:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H1FDB2F4BB7B94DC9A91CD750E97153D0"> <clause commented="no" display-inline="no-display-inline" id="H6A8D82AB3B3046538518CEBF5050304B"><enum>(iii)</enum><text>such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H519E2DB02FA64B39BF2973EAB38493A5"><enum>(2)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this subsection shall apply to transportation fuel sold after December 31, 2025.</text></paragraph></subsection> <subsection id="H646507E8DC3148B3AB7DBE3172D57DBD"><enum>(b)</enum><header>Determination of emissions rate</header> <paragraph commented="no" display-inline="no-display-inline" id="HF20DA30904AC43B58B50F4C2DC4E92DD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Z">Section 45Z(b)(1)(B)</external-xref> is amended by adding at the end the following new clauses:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HF1FF045E424C4E5AA5675CC44E7498E5">
<clause commented="no" display-inline="no-display-inline" id="H55B74F84F82D4C91A26B5C2A50D57498"><enum>(iv)</enum><header>Exclusion of indirect land use changes</header><text>Notwithstanding clauses (ii) and (iii), the lifecycle greenhouse gas emissions shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Agriculture.</text></clause> <clause commented="no" display-inline="no-display-inline" id="H899074F487954144A2A55FA7C365C630"><enum>(v)</enum><header>Animal manures</header><text display-inline="yes-display-inline">For purposes of the table described in clause (i), with respect to any transportation fuels which are derived from animal manure, a distinct emissions rate shall be provided with respect to each of the specific feedstocks used to such produce such fuel, which shall include dairy manure, swine manure, poultry manure, and such other sources as are determined appropriate by the Secretary.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H47CC43A34EC44CC28099F493B457F6F5"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Z">Section 45Z(b)(1)(B)(i)</external-xref> is amended by striking <quote>clauses (ii) and (iii)</quote> and inserting <quote>clauses (ii), (iii), (iv), and (v)</quote>.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HCA0C2E2D0F57453385EDC7769E282741"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to emissions rates published for taxable years beginning after December 31, 2025.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4076AD8692A34E07A48A709ABA5C3D21"><enum>(c)</enum><header>Extension of clean fuel production credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Z">Section 45Z(g)</external-xref> is amended by striking <quote>December 31, 2027</quote> and inserting <quote>December 31, 2031</quote>.</text></subsection> <subsection commented="no" display-inline="no-display-inline" id="H3F94F3820AE24C6CAD332F6465AE7897"><enum>(d)</enum><header>Restrictions relating to prohibited foreign entities</header> <paragraph commented="no" display-inline="no-display-inline" id="H827F46666E5E4BE2A64887872807549C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Z">Section 45Z(f)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H1B57A6600FF54491923EFF7B1E54B1BB">
<paragraph commented="no" display-inline="no-display-inline" id="HFFF52B0F089D49A89172980B6AB27059"><enum>(8)</enum><header>Restrictions relating to prohibited foreign entities</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H422B0056FD104A4C983024BC8A87ACD9"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H406C00A162AC4B5D9FB83F8B4BC11551"><enum>(B)</enum><header>Other prohibited foreign entities</header><text display-inline="yes-display-inline">No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6974FB64585B40D99CBB0C4F3F79D780"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to taxable years beginning after the date of enactment of this Act.</text></paragraph></subsection></section> <section id="H16162EB6980E4F8499DF27C91B5A87BA" section-type="subsequent-section"><enum>111112.</enum><header>Restoration of taxable REIT subsidiary asset test</header> <subsection id="H23E4FFEBEB4440F2B81B92757DF38124"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/856">Section 856(c)(4)(B)(ii)</external-xref> is amended by striking <quote>20 percent</quote> and inserting <quote>25 percent</quote>. </text></subsection>
<subsection id="H1DCF59FF0F93445B877F104BE0C465B4"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025. </text></subsection></section></part> <part id="HC89CFDE9F65A40C5AEA7AB4CB1B8B0A2"><enum>3</enum><header>Investing in the Health of Rural America and Main Street</header> <section id="H5B2523351AEB4EB09255CB65892238F4" display-inline="no-display-inline" section-type="subsequent-section"><enum>111201.</enum><header>Expanding the definition of rural emergency hospital under the Medicare program</header> <subsection id="H87FC9FC4173343A3849D1F597D9761F9"><enum>(a)</enum><header>In general</header><text>Section 1861(kkk) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C. 1395x(kkk)</external-xref>) is amended—</text>
<paragraph id="H51AC9F81F0114530A5817C242C1A140B"><enum>(1)</enum><text>in paragraph (2)—</text> <subparagraph id="H1A0DE82133564A4BA4A8C785DCB12859"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>the detailed transition plan</quote> and all that follows through <quote>such paragraph</quote> and inserting <quote>the detailed transition plan described in clause (i)(I) of such paragraph or the assessment of health care needs described in clause (i)(II) of such paragraph, as applicable,</quote>;</text></subparagraph>
<subparagraph id="HFC86C1CB565647B6B0E4C0E1132D2B73" commented="no"><enum>(B)</enum><text>in subparagraph (D)(vi), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph> <subparagraph id="H1FCB1BDA045A4AAD97EEE5A3EE1CADFC" commented="no"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H5F27D7A7BEF94E42BA8E8E0AB65C74BE" display-inline="no-display-inline">
<paragraph id="H9978B86F8E4849C98082AB59BCD634A8" commented="no"><enum>(E)</enum><text display-inline="yes-display-inline">in the case of a facility described in paragraph (3)(B)—</text> <subparagraph id="HED8D646E16374E6D838E77F7504EE80C"><enum>(i)</enum><text>submits an application under section 1866(j) to enroll under this title as a rural emergency hospital—</text>
<clause id="HF7377A8A137048C89B91F93C88ADDE49" commented="no"><enum>(I)</enum><text>in the case that such facility is located in a State that, as of January 1, 2027, provides for the licensing of rural emergency hospitals under State or applicable local law (as described in paragraph (5)(A)), not later than December 31, 2027; and</text></clause> <clause id="H6C6C977E0E2F492D9C491535EDF0D08D" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">in the case that such facility is located in a State that, as of January 1, 2027, does not provide for the licensing of such rural emergency hospitals under State or applicable local law (as so described), not later than the date that is 1 year after the date on which such State begins to provide for such licensing; and</text></clause></subparagraph>
<subparagraph id="H69B181C6B1AA43439F3F2186505656D4" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case that such facility is located less than 35 miles away from the nearest hospital, critical access hospital, or rural emergency hospital as of the date on which such facility submits an application under section 1866(j) to enroll under this title as a rural emergency hospital, beginning not later than 1 year after the end of the first full cost reporting period for which the facility is so enrolled, demonstrates annually, in a form and manner determined appropriate by the Secretary, that more than 50 percent of the services furnished for the most recent cost reporting period (as determined by the Secretary) were services described in paragraph (1)(A)(i), as determined based on discharges of individuals entitled to benefits under part A or enrolled under part B during such cost reporting period.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H5E5A09BF03B84CA5ACFD61055318D90A"><enum>(2)</enum><text>in paragraph (3)—</text>
<subparagraph id="H54BA8E8DD2234DB6BE6A484F95AFF53F"><enum>(A)</enum><text>by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly;</text></subparagraph> <subparagraph id="H988E05F8FE05485EA589408B10A8BF1A"><enum>(B)</enum><text>by striking <quote>A facility</quote> and inserting:</text>
<quoted-block style="OLC" id="H791B5A528FC94D559A05125DC0CBB4B5" display-inline="no-display-inline">
<paragraph id="H3268848556C0467DBFB9EAF8372BE187"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A facility</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H7CE6EF182C264D09829384BF4A37F3FB" commented="no"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" id="H56ABF9229BD44659A03B295297A9355C" display-inline="no-display-inline">
<paragraph id="H712886E93CA244E09D5F9A6C2ED756A9" commented="no"><enum>(B)</enum><header>Additional facilities</header><text display-inline="yes-display-inline">Beginning January 1, 2027, a facility described in this paragraph shall also include a facility that—</text> <subparagraph id="HF3573BB989294DB18E626D3F03342D8C" commented="no"><enum>(i)</enum><text>at any time during the period beginning January 1, 2014, and ending December 26, 2020—</text>
<clause id="HAD73E8D34ED949EC818B03271D361165" commented="no"><enum>(I)</enum><text>was a critical access hospital; or</text></clause> <clause id="H2E214D58F8B947E2A83FC7D61C6E8E8D" commented="no"><enum>(II)</enum><text>was a subsection (d) hospital (as defined in section 1886(d)(1)(B)) with not more than 50 beds located in a county (or equivalent unit of local government) in a rural area (as defined in section 1886(d)(2)(D)); and</text></clause></subparagraph>
<subparagraph id="H46ECF496E1264BC6B268FBA131F38982" commented="no"><enum>(ii)</enum><text>as of December 27, 2020, was not enrolled in the program under this title under section 1866(j).</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HFDCD875F8582445590BEE8C1F715B7DB"><enum>(3)</enum><text>in paragraph (4)—</text>
<subparagraph id="H3D8AFFF37D0F4BFEA60E0D88CA88E7E1"><enum>(A)</enum><text>in subparagraph (A)(i)—</text> <clause id="H49DEEEDC5F734ED0812B2505322CD2D7"><enum>(i)</enum><text>in subclause (IV), by striking the period at the end and inserting <quote>; and</quote>; </text></clause>
<clause id="HE8281CD77CE6448FA8C00410B229750D"><enum>(ii)</enum><text>by redesignating subclauses (I) through (IV) as items (aa) through (dd), respectively, and adjusting the margins accordingly;</text></clause> <clause id="HD8F29F12FC7B46B0AA265253F63ECD29"><enum>(iii)</enum><text>by striking <quote>including a detailed</quote> and inserting</text>
<quoted-block style="OLC" id="H7EF7D74FBCCE4ED7A1BCEFEBAEB6BF4C" display-inline="yes-display-inline"><text display-inline="yes-display-inline">including—</text> <clause id="H898F95468C12466590B6EF7F407F2B65"><enum>(I)</enum><text display-inline="yes-display-inline">except in the case of a facility described in paragraph (3)(B), a detailed</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause>
<clause id="H319F48EB48D840849954FD007C70BF74"><enum>(iv)</enum><text>by adding at the end the following new subclause:</text> <quoted-block style="OLC" id="HC56C18D99F4E4DC2B26358ED5C6FF1B9" display-inline="no-display-inline"> <clause id="H54CCC5D1A90C4BE3A515206FB3C30167"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a facility described in paragraph (3)(B), an assessment of the health care needs of the county (or equivalent unit of local government) in which such facility is located, which shall include—</text>
<subclause id="H313BB5A9EB8A4BC3BC755770463602BD"><enum>(aa)</enum><text>a description of the services furnished by the facility during the period that such facility was enrolled in the program under this title under section 1866(j);</text></subclause> <subclause id="H5B806407763641B08EB4A3EB4F829D9A"><enum>(bb)</enum><text>a description of the reasons that the facility, as of December 27, 2020, was no longer so enrolled;</text></subclause>
<subclause id="H2FCB0938D82D4934A1AB3D7F6AE43980"><enum>(cc)</enum><text>the population of such county (or equivalent unit);</text></subclause> <subclause id="H5A21585E971A4960A8754E3B3F28C943"><enum>(dd)</enum><text display-inline="yes-display-inline">the percentage of such population who are individuals entitled to benefits under part A or enrolled under part B; and</text></subclause>
<subclause id="HBC8BEBDD98E94F209B7F50EEF650BBA5"><enum>(ee)</enum><text display-inline="yes-display-inline">a description of any lack of access to health care services experienced by such individuals, and an explanation of how reopening the facility as a rural emergency hospital would mitigate such lack of access.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph></subsection> <subsection id="H53BDB1C431544A35BAECF2C2FA082C8C"><enum>(b)</enum><header>Amendments to payment rules</header><text>Section 1834(x) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395m">42 U.S.C. 1395m(x)</external-xref>) is amended—</text>
<paragraph id="HA2A7E8E111A54D158848967AABC4F74B" commented="no"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>, except that, in the case of a facility described in section 1861(kkk)(3)(B) that, as of the date on which such facility submits an application under section 1866(j) to enroll under this title as a rural emergency hospital, is located less than 35 miles away from the nearest hospital, critical access hospital, or rural emergency hospital, such increase shall not apply</quote> before the period at the end; and</text></paragraph> <paragraph id="HE3BEAED0E4F64E808626DC7BBBC778B1"><enum>(2)</enum><text>in paragraph (2)(A), by inserting <quote>(other than a facility described in section 1861(kkk)(3)(B) that, as of the date on which such facility submits an application under section 1866(j) to enroll under this title as a rural emergency hospital, is located less than 10 miles away from the nearest hospital, critical access hospital, or rural emergency hospital)</quote> after <quote>rural emergency hospital</quote>.</text></paragraph></subsection></section></part></subtitle>
<subtitle id="H681F82B335BB4548A7CD5A1D5D1BDC2E"><enum>C</enum><header>Make America Win Again</header>
<part id="HDC95235066364332A893B929B7E7B3F3"><enum>1</enum><header>Working Families over Elites</header>
<section id="HD6FA1CBE164147C4BFB32AFF0BB1FD7B"><enum>112001.</enum><header>Termination of previously-owned clean vehicle credit</header>
<subsection id="H49F8565651E74FE688F91A8ACC12302F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25E">Section 25E(g)</external-xref> is amended by striking <quote>December 31, 2032</quote> and inserting <quote>December 31, 2025</quote>.</text></subsection> <subsection id="H4C737DEB1C644EFC8336869BFD09AE23"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to vehicles acquired after December 31, 2025.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HE9E1D4C76205455FA64D0EBEA86D2068"><enum>112002.</enum><header>Termination of clean vehicle credit</header>
<subsection id="H09F87263880644FFA212FAADA7BEEE4D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended—</text> <paragraph id="H721C07A737C94CBFBCD0F5ED0DE95E73"><enum>(1)</enum><text>by redesignating subsection (h) as subsection (i), and</text></paragraph>
<paragraph id="HB1BAD76D29F5499699A5F70E8AFF89B8"><enum>(2)</enum><text>in subsection (i), as so redesignated, by striking <quote>December 31, 2032</quote> and inserting <quote>December 31, 2026</quote>.</text></paragraph></subsection> <subsection id="H19F9028F1EFD41D7919234915598FF6F"><enum>(b)</enum><header>Special rule for taxable year 2026</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended by inserting after subsection (g) the following new subsection:</text>
<quoted-block style="OLC" id="HBC6B1B7FB3584F259BDFF981FCFCEEC7" display-inline="no-display-inline">
<subsection id="H2DDBAC5A5EFB4D979F94E821D61CACDE"><enum>(h)</enum><header>Special rule for taxable year 2026</header>
<paragraph id="H3925DCC09F7041F396A1B96A530B9A1A"><enum>(1)</enum><header>In general</header><text>With respect to any vehicle placed in service after December 31, 2025, such vehicle shall not be treated as a new clean vehicle for purposes of this section if, during the period beginning on December 31, 2009, and ending on December 31, 2025, the number of covered vehicles manufactured by the manufacturer of such vehicle which are sold for use in the United States is greater than 200,000.</text></paragraph> <paragraph id="HF6BD1B9704064D57B851EE1360AC788D"><enum>(2)</enum><header>Covered vehicles</header><text>For purposes of this subsection, the term <quote>covered vehicles</quote> means—</text>
<subparagraph id="HC9DF0C3936544994B75C2A85A9AFE40D"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to vehicles placed in service before January 1, 2023, new qualified plug-in electric drive motor vehicles (as defined in subsection (d)(1), as in effect on December 31, 2022), and</text></subparagraph> <subparagraph id="H07A2E88D747B4BE1BA9B86510696F96C"><enum>(B)</enum><text>new clean vehicles.</text></subparagraph></paragraph>
<paragraph id="H00BBF9ED01FF4DA593DBDC2CE65820B0"><enum>(3)</enum><header>Controlled groups</header><text display-inline="yes-display-inline">Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H595DA96D1B754225A46F2D04605EDE56"><enum>(c)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(e)</external-xref> is amended—</text>
<paragraph id="H1D57D99806D94EFBAFD87D37B56BE1C5"><enum>(1)</enum><text>in paragraph (1)(B)—</text> <subparagraph id="H1B12918400284D7AAE9F750BA703A6B1"><enum>(A)</enum><text>in clause (iii), by inserting <quote>and</quote> after the comma at the end,</text></subparagraph>
<subparagraph id="HBC2F888609724AF49D9F68EC2C356A41"><enum>(B)</enum><text>in clause (iv), by striking <quote>, and</quote> and inserting a period, and</text></subparagraph> <subparagraph id="HD734F8D6944D42B8BD3E4B82EF033A8A"><enum>(C)</enum><text>by striking clause (v), and</text></subparagraph></paragraph>
<paragraph id="HD4EB88F4797944B099D5AAA3C7AE70A5"><enum>(2)</enum><text>in paragraph (2)(B)—</text> <subparagraph id="H9D4331C799824E4687C2EFC025BA67FC"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (ii), by inserting <quote>and</quote> after the comma at the end,</text></subparagraph>
<subparagraph id="H0C6C6D9D194C4963AE04546EFC1BBAC9"><enum>(B)</enum><text>in clause (iii), by striking the comma at the end and inserting a period, and</text></subparagraph> <subparagraph id="HE922A6385AF543F9940C478F02C41C66"><enum>(C)</enum><text>by striking clauses (iv) through (vi).</text></subparagraph></paragraph></subsection>
<subsection id="H7D5F70B622754B51BBFC0EAFC1E33FE4"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to vehicles placed in service after December 31, 2025.</text></subsection></section> <section id="H16E0E4D829EB46ADBF70BAA08A70D0AA"><enum>112003.</enum><header>Termination of qualified commercial clean vehicles credit</header> <subsection id="H585B875EEECB4BECA938BD8414B1C410"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45W">Section 45W(g)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H7ADAAD4FED5F4F2CBB04BFC6D029427F" display-inline="no-display-inline">
<subsection id="HF93C67A37414410FAFABCA9E82C5C85F"><enum>(g)</enum><header>Termination</header>
<paragraph id="H62E12AD25B3C4DD2B16D5F73CB57D9A9"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">No credit shall be determined under this section with respect to any vehicle acquired after December 31, 2025.</text></paragraph> <paragraph id="H32CB6FCB7DF242BEA4C1674F0E494179"><enum>(2)</enum><header>Exception for binding contracts</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply with respect to vehicles placed in service before January 1, 2033, and acquired pursuant to a written binding contract entered into before May 12, 2025.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HE83364483B7449019BFB28C913AC8E55"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to vehicles acquired after December 31, 2025.</text></subsection></section> <section id="H47BCADBA0CCF47FCB468C1496E036181"><enum>112004.</enum><header>Termination of alternative fuel vehicle refueling property credit</header> <subsection id="H223A3DAFE18043CE95427314F22AF43E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(i)</external-xref> is amended by striking <quote>December 31, 2032</quote> and inserting <quote>December 31, 2025</quote>.</text></subsection>
<subsection id="H19A0257C01414D33938EE578FD60AACA"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to property placed in service after December 31, 2025.</text></subsection></section> <section id="H5D63355D5D3042F3AC3F5C965455466C"><enum>112005.</enum><header>Termination of energy efficient home improvement credit</header> <subsection id="H958904CF1FF841C997D9D364F068DB6E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(i)</external-xref> is amended to read as follows: </text>
<quoted-block style="OLC" id="H17E91736A7E545B298EC4CC0C3488052" display-inline="no-display-inline">
<subsection id="H9AD1FB3F06CE4732A6C42112388F49A3"><enum>(i)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply with respect to any property placed in service after December 31, 2025.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6D1D2695928E4EB0AE11D2E0D6A1B070"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H0D06F91B351D4DAEB0FA8094FFEFF5B6"><enum>(1)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)(2)(C)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="HA8C2ACDFE49742AEBD08DF3735AA105C" display-inline="no-display-inline">
<subparagraph id="H4B09533CF45D45D599493E5F5EDF536F"><enum>(C)</enum><text display-inline="yes-display-inline">Any oil furnace or hot water boiler which is placed in service before January 1, 2026, and—</text> <clause id="H9BDAD4E9E5F446309057BA315DFD88CE"><enum>(i)</enum><text>meets or exceeds 2021 Energy Star efficiency criteria, and</text></clause>
<clause id="HAA9711AF93234683A77955C1A8FE2DDD"><enum>(ii)</enum><text>is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HE63D6B9281CC46B0A253AF7438431738"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2025.</text></subsection></section>
<section id="HDF85E583C0474B11B15AA9990FDD9F7F"><enum>112006.</enum><header>Termination of residential clean energy credit</header>
<subsection id="HE57AF39942BC45B491A478374DFCEF81"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(h)</external-xref> is amended by striking <quote>December 31, 2034</quote> and inserting <quote>December 31, 2025</quote>.</text></subsection> <subsection id="H6971AE4477C943DE9AEA84DCA884F9F7"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(g)</external-xref> is amended—</text>
<paragraph id="H7A43524EB9F54380B916AB5E23D6F5F5"><enum>(1)</enum><text>in paragraph (2), by inserting <quote>and</quote> after the comma at the end,</text></paragraph> <paragraph id="H73659D78CBB14DB182A9DC8AE35F60B0"><enum>(2)</enum><text>in paragraph (3), by striking <quote>January 1, 2033, 30 percent,</quote> and inserting <quote>January 1, 2026, 30 percent.</quote>, and</text></paragraph>
<paragraph id="HC725C1DCFC69470EB9D99018E5820831"><enum>(3)</enum><text>by striking paragraphs (4) and (5).</text></paragraph></subsection> <subsection id="HB59950A838CB4BEDA673CE6273612232"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to property placed in service after December 31, 2025.</text></subsection></section>
<section id="HD0BABC57E59A4408805DEA6BE04DC340"><enum>112007.</enum><header>Termination of new energy efficient home credit</header>
<subsection id="H6824CE34D9E144F3A2512163D1A11048"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(h)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HE79390265F444480A7550A9E5A6E9D38"> <subsection commented="no" display-inline="no-display-inline" id="HA77CB4A8382745BB88CABD388CA4BEFA"><enum>(h)</enum><header>Termination</header><text>This section shall not apply to any qualified new energy efficient home acquired after December 31, 2025 (December 31, 2026, in the case of any home for which construction began before May 12, 2025).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF3047132C2D846559E60FB2321DCE77D"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to homes acquired after December 31, 2025. </text></subsection></section> <section id="HE5B0DA3EDC9740B580D7C84D97C3CE82"><enum>112008.</enum><header>Restrictions on clean electricity production credit</header> <subsection id="HA87A5EDCDB8E445D9992308E83FA2C12" commented="no"><enum>(a)</enum><header>Termination of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Y">Section 45Y</external-xref> is amended by striking subsection (d) and by adding at the end the following new subsection: </text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H93C23EDA09D34100AEB6F78BA245ACDF">
<subsection id="HDBC606C7CDD148D0BEC479FE9F258BBC" commented="no" display-inline="no-display-inline"><enum>(h)</enum><header>Termination of credit</header>
<paragraph id="HCB610E458EC04F3489F1C41CF392E747" commented="no"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2) and (3), no credit shall be allowed under this section for any qualified facility—</text> <subparagraph id="HDE3642F752C24B5E85EFE42FEFE20B54"><enum>(A)</enum><text>the construction of which begins after the date which is 60 days after the date of the enactment of this subsection, or</text></subparagraph>
<subparagraph id="H65F29311F5364FA8AEE16C3BF8F839C6"><enum>(B)</enum><text>which is placed in service after December 31, 2028.</text></subparagraph></paragraph> <paragraph id="H024847E8C65B41989328BCBCE2039ACA" commented="no"><enum>(2)</enum><header>Advanced nuclear facilities</header><text>In the case of any qualified facility that is an advanced nuclear facility (as defined in section 45J(d)(2))—</text>
<subparagraph id="HC89996D21CBB4C898400B14359DE0FB5"><enum>(A)</enum><text>paragraph (1) shall not apply, and</text></subparagraph> <subparagraph id="HA4CDB1098A694FD39183CFAA928B802F"><enum>(B)</enum><text>no credit shall be allowed under this section for any such facility the construction of which begins after December 31, 2028.</text></subparagraph></paragraph>
<paragraph id="HA53921DC4B09486599867D6F7D016D5A"><enum>(3)</enum><header>Expansion of nuclear facilities</header><text display-inline="yes-display-inline">In the case of any nuclear facility the reactor design for which is approved by the Nuclear Regulatory Commission—</text> <subparagraph id="HBE191E4B43C541329AEF9EF63FA22764"><enum>(A)</enum><text>paragraph (1) shall not apply, and</text></subparagraph>
<subparagraph id="H5916E092377F454B840CED4CD467BC2C"><enum>(B)</enum><text>no credit shall be allowed under this section for any such facility the expansion of which begins after December 31, 2028.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="H71FA3E0A52364ADD9A40D728BD0EC787"><enum>(b)</enum><header>Restrictions relating to prohibited foreign entities</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Y">Section 45Y</external-xref> is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7E692D351E3E49FE9E07A24336B5BAB8"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(1), by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H044BD2F038314FA2A92649ECC370FF16"> <subparagraph commented="no" display-inline="no-display-inline" id="H8CA02ACC6CD54279BA11B47C756BEF1A"><enum>(E)</enum><header>Material assistance from prohibited foreign entities</header><text display-inline="yes-display-inline">The term <term>qualified facility</term> shall not include any facility for which construction begins after December 31, 2025 if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H055EF30879DC4B20A13302CB41ABD31B"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (g), by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H6A0C4E06D03A45E4B19D51D3CFEB33D9"> <paragraph commented="no" display-inline="no-display-inline" id="H77D683209A534F8C9898D8867204933D"><enum>(13)</enum><header>Restrictions relating to prohibited foreign entities</header> <subparagraph commented="no" display-inline="no-display-inline" id="H4A68C4EED1C44FC1BE2A493F6B13E4CC"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HA702968A186E420C8C294A17D146B802"><enum>(B)</enum><header>Other prohibited foreign entities</header><text display-inline="yes-display-inline">No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if—</text> <clause commented="no" display-inline="no-display-inline" id="H568ED2E5AC2E4871B4739154E8D6A4AC"><enum>(i)</enum><text display-inline="yes-display-inline">the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)), or</text></clause>
<clause id="HC5D0C8CBFD3944AA99F7B7A7FC2406E9"><enum>(ii)</enum><text display-inline="yes-display-inline">during such taxable year, the taxpayer—</text> <subclause id="H7535856BD70D48139DA2928924771FD8" commented="no" display-inline="no-display-inline"><enum>(I)</enum><text display-inline="yes-display-inline">makes a payment of dividends, interest, compensation for services, rentals or royalties, guarantees or any other fixed, determinable, annual, or periodic amount to a prohibited foreign entity (as defined in section 7701(a)(51)) in an amount which is equal to or greater than 5 percent of the total of such payments made by such taxpayer during such taxable year which are related to the production of electricity, or</text></subclause>
<subclause id="HE247B226580D49248D096B2631DE9A43" commented="no" display-inline="no-display-inline"><enum>(II)</enum><text display-inline="yes-display-inline">makes payments described in subclause (I) to more than 1 prohibited foreign entity (as so defined) in an amount which, in the aggregate, is equal to or greater than 15 percent of the total of such payments made by such taxpayer during such taxable year which are related to the production of electricity.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HF3A45ED42C5040F388465B76BB27AAE6"><enum>(c)</enum><header>Definitions relating to prohibited foreign entities</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7701">Section 7701(a)</external-xref> is amended by adding at the end the following new paragraphs: </text>
<quoted-block style="OLC" id="H29C7A53CCE234B8CA20B7F7FD4AABE9B" display-inline="no-display-inline">
<paragraph id="HD9F1C7066997485CBDB6FE354D30E986"><enum>(51)</enum><header>Prohibited foreign entity</header>
<subparagraph id="HDB6270A0F02C4C66A1B13F7E1528374F"><enum>(A)</enum><header>In general</header><text>The term <quote>prohibited foreign entity</quote> means a specified foreign entity or a foreign-influenced entity.</text></subparagraph> <subparagraph id="H048A2C4BACE54ED28D1156ED8EA89149"><enum>(B)</enum><header>Specified foreign entity</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <quote>specified foreign entity</quote> means—</text>
<clause id="H3C0EDCD3E89B4DE6B0CB470CFF39CEA4"><enum>(i)</enum><text display-inline="yes-display-inline">a foreign entity of concern described in subparagraph (A), (B), (D), or (E) of section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (<external-xref legal-doc="public-law" parsable-cite="pl/116/283">Public Law 116–283</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/15/4651">15 U.S.C. 4651</external-xref>), </text></clause> <clause id="H51338439AF944771A05B50A4ECD57FDF"><enum>(ii)</enum><text display-inline="yes-display-inline">an entity identified as a Chinese military company operating in the United States in accordance with section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (<external-xref legal-doc="public-law" parsable-cite="pl/116/283">Public Law 116–283</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/10/113">10 U.S.C. 113</external-xref> note),</text></clause>
<clause id="H90F74394DC6748928A23723AD68145BF"><enum>(iii)</enum><text display-inline="yes-display-inline">an entity included on a list required by clause (i), (ii), (iv), or (v) of section 2(d)(2)(B) of <external-xref legal-doc="public-law" parsable-cite="pl/117/78">Public Law 117–78</external-xref> (135 Stat. 1527),</text></clause> <clause id="H1E59A44DEBCD4169B70EB0D3114E127C"><enum>(iv)</enum><text display-inline="yes-display-inline">an entity specified under section 154(b) of the National Defense Authorization Act for Fiscal Year 2024 (<external-xref legal-doc="public-law" parsable-cite="pl/118/31">Public Law 118–31</external-xref>; 10 U.S.C. note prec. 4651), or</text></clause>
<clause id="HB445947F8FD34928872C0C9C6FFC66F2" commented="no"><enum>(v)</enum><text>a foreign-controlled entity.</text></clause></subparagraph> <subparagraph id="H1D051253D25F432DA4B27F1DD5863F8F"><enum>(C)</enum><header>Foreign-controlled entity</header><text display-inline="yes-display-inline">For purposes of subparagraph (B), the term <quote>foreign-controlled entity</quote> means—</text>
<clause id="H8A564C07F33E496799607D4E2DE3AB45"><enum>(i)</enum><text display-inline="yes-display-inline">the government of a covered nation (as defined in section 4872(f)(2) of title 10, United States Code), </text></clause> <clause id="H1E3BB0CCEB744760BE80D507C3E2EB77"><enum>(ii)</enum><text display-inline="yes-display-inline">a person who is a citizen, national, or resident of a covered nation, provided that such person is not an individual who is a citizen or lawful permanent resident of the United States, </text></clause>
<clause id="H5217BB63AE2B4868B522D087F39AD044"><enum>(iii)</enum><text display-inline="yes-display-inline">an entity or a qualified business unit (as defined in section 989(a)) incorporated or organized under the laws of, or having its principal place of business in, a covered nation, or</text></clause> <clause id="H832BF8C15D184D7F909C5B1A16306172"><enum>(iv)</enum><text>an entity (including subsidiary entities) controlled (as determined under subparagraph (F)) by an entity described in clause (i), (ii), or (iii).</text></clause></subparagraph>
<subparagraph id="HBD6D45B4FF494064ABAFAAC976A0E550" commented="no"><enum>(D)</enum><header>Foreign-influenced entity</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <quote>foreign-influenced entity</quote> means an entity—</text> <clause id="HC92774441218490195B139850E265C2F"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to which, during the taxable year—</text>
<subclause id="H50037A5E98CA4CCBAB53A30C79B8F670"><enum>(I)</enum><text>a specified foreign entity has the direct or indirect authority to appoint a covered officer of such entity,</text></subclause> <subclause id="H01305A28E5B2440EB13E5F431669F40A" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">a single specified foreign entity owns at least 10 percent of such entity, </text></subclause>
<subclause id="H27D77E1FB38D470E96E5CD2D03D93F78" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">one or more specified foreign entities own in the aggregate at least 25 percent of such entity, or</text></subclause> <subclause id="H35EDA252C4EC44A9970B203BA50A9DBF" commented="no"><enum>(IV)</enum><text display-inline="yes-display-inline">at least 25 percent of the debt of such entity is held in the aggregate by one or more specified foreign entities, or </text></subclause></clause>
<clause id="HD7615EDDFF0D41E2A365128C390FF3DE"><enum>(ii)</enum><text>which, during the previous taxable year—</text> <subclause commented="no" display-inline="no-display-inline" id="H435C5AFED3104C32B473E9D7ED6E7082"><enum>(I)</enum><text display-inline="yes-display-inline">makes a payment of dividends, interest, compensation for services, rentals or royalties, guarantees or any other fixed, determinable, annual, or periodic amount to a specified foreign entity in an amount which is equal to or greater than 10 percent of the total of such payments made by such entity during such taxable year, or</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H1B91C02DF9074024BD9A880B9109E210"><enum>(II)</enum><text display-inline="yes-display-inline">makes payments described in subclause (I) to more than 1 specified foreign entity in an amount which, in the aggregate, is equal to or greater than 25 percent of the total of such payments made by such entity during such taxable year.</text></subclause><continuation-text continuation-text-level="clause">Clause (ii) shall not apply unless such entity makes such payments knowingly (or has reason to know). </continuation-text></clause></subparagraph> <subparagraph id="H435FE91B82DA46D29B047C69BB719330"><enum>(E)</enum><header>Covered officer</header><text>For purposes of this paragraph, the term <quote>covered officer</quote> means, with respect to an entity—</text>
<clause id="H7203517CEE1D4DCCA3134F6DD986201D"><enum>(i)</enum><text>a member of the board of directors, board of supervisors, or equivalent governing body, </text></clause> <clause id="HE307626049744183AD644EB56FA5F1CA"><enum>(ii)</enum><text display-inline="yes-display-inline">an executive-level officer, including the president, chief executive officer, chief operating officer, chief financial officer, general counsel, or senior vice president, or</text></clause>
<clause id="HD36F50BE1806466FAC5811DE84BB5A84"><enum>(iii)</enum><text>an individual having powers or responsibilities similar to those of officers or members described in clause (i) or (ii).</text></clause></subparagraph> <subparagraph id="HA47F552EB65049678F413CBFD6FABFF0" commented="no"><enum>(F)</enum><header>Determination of control</header><text display-inline="yes-display-inline">For purposes of subparagraph (C)(iv), the term <quote>control</quote> means—</text>
<clause id="H838A65469D0C40B0954166120AD7BE63" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline"> in the case of a corporation, ownership (by vote or value) of more than 50 percent of the stock in such corporation,</text></clause> <clause id="H4E53B3FEDAB8415F83CAC3A803EC94E3" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a partnership, ownership of more than 50 percent of the profits interests or capital interests in such partnership, or</text></clause>
<clause id="H1570F861AE1E4451A9DBBD36AADE954A" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">in any other case, ownership of more than 50 percent of the beneficial interests in the entity.</text></clause></subparagraph> <subparagraph id="H7FF2AF7A782D45C98AD46A2DB6544F7F" commented="no"><enum>(G)</enum><header>Determination of ownership</header><text display-inline="yes-display-inline">For purposes of this section, section 318 (other than subsection (a)(3) thereof) shall apply for purposes of determining ownership of stock in a corporation. Similar principles shall apply for purposes of determining ownership of interests in any other entity.</text></subparagraph>
<subparagraph id="HE328B6AC850F4985A0F90DBF66663BFC"><enum>(H)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H05BC86B8744846ABB03530F25D275869"><enum>(52)</enum><header>Material assistance from a prohibited foreign entity</header> <subparagraph commented="no" display-inline="no-display-inline" id="H835F5236BD474115A4933E8588F57C19"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>material assistance from a prohibited foreign entity</term> means, with respect to any property—</text>
<clause commented="no" display-inline="no-display-inline" id="HDB6E80350CE34F7289DA79DD5BFA6210"><enum>(i)</enum><text display-inline="yes-display-inline">any component, subcomponent, or applicable critical mineral (as defined in section 45X(c)(6)) included in such property that is extracted, processed, recycled, manufactured, or assembled by a prohibited foreign entity, or</text></clause> <clause commented="no" display-inline="no-display-inline" id="H88EE3006A77B42E7BF28F04B4071185E"><enum>(ii)</enum><text>any design of such property which is based on any copyright or patent held by a prohibited foreign entity or any know-how or trade secret provided by a prohibited foreign entity.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H3DD7929B57FE4729894D97B740F2F148"><enum>(B)</enum><header>Exclusion</header>
<clause commented="no" display-inline="no-display-inline" id="HA9A156E3130D4318841FE291978C5DF9"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text>The term <term>material assistance from a prohibited foreign entity</term> shall not include any assembly part or constituent material, provided that such part or material is not acquired directly from a prohibited foreign entity.</text></clause> <clause commented="no" display-inline="no-display-inline" id="HF03087A9377242D8A3F1B0A7900AE731"><enum>(ii)</enum><header>Assembly part</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>assembly part</term> means a subcomponent or collection of subcomponents which is—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD3B74A4B849947C89542501204B71F0D"><enum>(I)</enum><text display-inline="yes-display-inline">not uniquely designed for use in the construction of a qualified facility described in section 45Y or 48E or an eligible component described in section 45X, and</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="HF8968AAF8EA64DFD9014D2F4471AFE0D"><enum>(II)</enum><text display-inline="yes-display-inline">not exclusively or predominantly produced by prohibited foreign entities.</text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="HBB820801F23B47D29655D98F2D08B8A3"><enum>(iii)</enum><header>Constituent material</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>constituent material</term> means any material which is—</text> <subclause commented="no" display-inline="no-display-inline" id="H9954D01D26224BEAAA1BF2C27C52F484"><enum>(I)</enum><text display-inline="yes-display-inline">not uniquely formulated for use in a qualified facility described in section 45Y or 48E or an eligible component described in section 45X, and </text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HE565CDA3CCA840AF99D5F01F0744A8DE"><enum>(II)</enum><text display-inline="yes-display-inline">not exclusively or predominantly produced, processed, or extracted by prohibited foreign entities.</text></subclause></clause> <clause id="H1514AB6E6F5047A6950579E7EAD05349" display-inline="no-display-inline"><enum>(iv)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H48E1728B0C244E4A825104668D5D1A2C" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Denial of credit for expenditures for certain wind and solar leasing arrangements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Y">Section 45Y</external-xref>, as amended by subsection (a), is amended by inserting after subsection (c) the following new subsection: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H68DD9FB9263A424B8981F16F18D1A1F6"> <subsection id="HB3ED81A6B0DF4F0DAEBB052A24474A30" commented="no"><enum>(d)</enum><header>Denial of credit for expenditures for wind and solar leasing arrangements</header><text display-inline="yes-display-inline">No credit shall be allowed under this section for any investment during the taxable year with respect to property described in paragraph (1), (2), or (4) of section 25D(d) if—</text>
<paragraph id="H90E61498F770460089901960A9762269" commented="no"><enum>(1)</enum><text>the taxpayer rents or leases such property to a third party during such taxable year, and</text></paragraph> <paragraph id="HC8055D8FF3CD4F549924EE79FE18AE1D" commented="no"><enum>(2)</enum><text>the lessee would qualify for a credit under section 25D with respect to such property if the lessee owned such property. </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H549950A482BC490FAB4C99A6D674F5F8" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph id="H23E46B180C9A4FC9A9D52CB88C699B7A" commented="no" display-inline="no-display-inline"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.</text></paragraph> <paragraph id="HEBC520E6114A48C5B944D6FBBEF27816" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Termination of credit</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to facilities for which construction begins after the date that is 60 days after the date of enactment of this Act.</text></paragraph> </subsection></section>
<section commented="no" display-inline="no-display-inline" id="H833B6239D0D24F94964132B0F121F1D7"><enum>112009.</enum><header>Restrictions on clean electricity investment credit</header>
<subsection id="H41C762A4DE6D454B9A5BDBF2AE92C654" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>Termination of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48E">Section 48E</external-xref> is amended by striking subsection (e) and by adding at the end the following new subsection: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="HCB57E66125B345D596897BA52D08C333"> <subsection id="HFD74F1599CB640EAA54FFBFE1FC5A26A" commented="no" display-inline="no-display-inline"><enum>(j)</enum><header>Termination of credit</header> <paragraph id="H5AD24F9A27B14DF3909F6B7909F115BA" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), no credit shall be allowed under this section for any qualified facility or energy storage technology—</text>
<subparagraph id="H63C35CCF5FF549B784677A30BB6208E2"><enum>(A)</enum><text>the construction of which begins after the date which is 60 days after the date of the enactment of this subsection, or</text></subparagraph> <subparagraph id="HF1BF252240E349B78A6B37FA01C5FD25"><enum>(B)</enum><text>which is placed in service after December 31, 2028.</text></subparagraph></paragraph>
<paragraph id="H3035B992B9C347EE9572BE435A8F9570" commented="no"><enum>(2)</enum><header>Advanced nuclear facility</header><text>In the case of any qualified facility that is an advanced nuclear facility (as defined in section 45J(d)(2))—</text> <subparagraph id="HA1FAD13A99F84F54B0932DE072001974"><enum>(A)</enum><text>paragraph (1) shall not apply, and</text></subparagraph>
<subparagraph id="HF80A32A9CAA64221859316325C99FCCA"><enum>(B)</enum><text>no credit shall be allowed under this section for any such facility the construction of which begins after December 31, 2028.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="HC7FBC6FC46114C64998716C2E85997FF"><enum>(b)</enum><header>Restrictions relating to prohibited foreign entities</header> <paragraph commented="no" display-inline="no-display-inline" id="H5652B6A34AD34C5C9A17D56A1B130632"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48E">Section 48E</external-xref> is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7959D89F528A4819BF1A31B7EDF53B57"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b)(3), by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H90EC34206C844414A267CD637A35328F"> <subparagraph commented="no" display-inline="no-display-inline" id="HE00927E531D5488F9C51287E221EA8BF"><enum>(D)</enum><header>Material assistance from prohibited foreign entities</header><text display-inline="yes-display-inline">The term <term>qualified facility</term> shall not include any facility the construction of which begins after December 31, 2025 if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HDDAEDC2E29EF40DEBC1DC249B334A786"><enum>(B)</enum><text>in subsection (c), by adding at the end the following new paragraph: </text> <quoted-block style="OLC" id="H419BB41926F740DAA9F9B1293DD38798" display-inline="no-display-inline"> <paragraph id="HE60439AEFBF84ED8B65FC72960F50DF1" commented="no" display-inline="no-display-inline"><enum>(3)</enum><header>Material assistance from prohibited foreign entities</header><text display-inline="yes-display-inline">The term <term>energy storage technology</term> shall not include any property the construction of which begins after December 31, 2025 if the construction of such property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HA87645ABE82940558034CF99EFD01D96" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Restrictions relating to prohibited foreign entities</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48E">Section 48E(d)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H1CF0E6D3797B4D04AD50ED0E3F9CF29E"> <paragraph commented="no" display-inline="no-display-inline" id="H180CAE08FA3F4BE884D19B07B39345EC"><enum>(6)</enum><header>Restrictions relating to prohibited foreign entities</header> <subparagraph commented="no" display-inline="no-display-inline" id="HFE2ABD8BB54E4E60BED2AAA168847E97"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HC7F74BCA9BAF4517BA578BB7D933D1AD"><enum>(B)</enum><header>Other prohibited foreign entities</header><text display-inline="yes-display-inline">No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if—</text> <clause id="HD8E18CB7553E45AC824E203F665E66CE"><enum>(i)</enum><text>the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)), or</text></clause>
<clause id="H4D473EB04212468EB3450803B9ACD471"><enum>(ii)</enum><text display-inline="yes-display-inline">during such taxable year, the taxpayer—</text> <subclause id="HE2F7900CA7AB4ACE89F07D97BA00BF90" commented="no" display-inline="no-display-inline"><enum>(I)</enum><text display-inline="yes-display-inline">makes a payment of dividends, interest, compensation for services, rentals or royalties, guarantees or any other fixed, determinable, annual, or periodic amount to a prohibited foreign entity (as defined in section 7701(a)(51)) in an amount which is equal to or greater than 5 percent of the total of such payments made by such taxpayer during such taxable year which are related to the production of electricity or storage of energy, or</text></subclause>
<subclause id="H1E59855631144DE09AA93CDABCF470CD" commented="no" display-inline="no-display-inline"><enum>(II)</enum><text display-inline="yes-display-inline">makes payments described in subclause (I) to more than 1 prohibited foreign entity (as so defined) in an amount which, in the aggregate, is equal to or greater than 15 percent of the total of such payments made by such taxpayer during such taxable year which are related to the production of electricity or storage of energy.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H854F5D43D4CF49A59E49612497567BE2"><enum>(3)</enum><header>Recapture</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/50">Section 50(a)</external-xref> is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1FE39F1ADBD64E708297E16B3E9FEAE8"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively,</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H30A0EF3086964F04B49F86516AA7047A"><enum>(B)</enum><text>by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H7814C477DBB747598CD0A5556A57E8D1">
<paragraph commented="no" display-inline="no-display-inline" id="H23BB6C29D39541F39441D2644AB09A5E"><enum>(4)</enum><header>Payments to prohibited foreign entities</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD6371C0D51954EEA9A8250F4106AA9F2"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If there is an applicable payment made by a specified taxpayer before the close of the 10-year period beginning on the date such taxpayer placed in service investment credit property which is eligible for the clean electricity investment credit under section 48E(a), then the tax under this chapter for the taxable year in which such applicable payment occurs shall be increased by 100 percent of the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under section 46 which is attributable to the clean electricity investment credit under section 48E(a) with respect to such property.</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HAA04EDE377E84F0CB3402E6B3731772C"><enum>(B)</enum><header>Applicable payment</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>applicable payment</term> means, with respect to any taxable year, a payment or payments described in subclause (I) or (II) of section 48E(d)(6)(B)(ii). </text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H8AE563B991F74BC685E2564386274DB3"><enum>(C)</enum><header>Specified taxpayer</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>specified taxpayer</term> means any taxpayer who has been allowed a credit under section 48E(a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph.</text></subparagraph></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HF09622E9B0F6417EAEF2ED93D3C5F4FD"><enum>(C)</enum><text>in paragraph (5), as redesignated by subparagraph (A), by striking <quote>or any applicable transaction to which paragraph (3)(A) applies,</quote> and inserting <quote>any applicable transaction to which paragraph (3)(A) applies, or any applicable payment to which paragraph (4)(A) applies,</quote>, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H19FC01C7D2EC43E7931C6E8D12756AAB"><enum>(D)</enum><text>in paragraph (7), as redesignated by subparagraph (A), by striking <quote>or (3)</quote> and inserting <quote>(3), or (4)</quote>.</text></subparagraph></paragraph></subsection> <subsection id="H42AA98F1BD404D858A3FCDEEDB3466FD" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Denial of credit for expenditures for certain wind and solar leasing arrangements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48E">Section 48E</external-xref>, as amended by subsection (a), is amended by inserting after subsection (d) the following new subsection: </text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HDA2B1857FF134913B123B384EEA27BEA">
<subsection id="HA1972FD74A0649C1B0D2CA0FA243BEC0" commented="no"><enum>(e)</enum><header>Denial of credit for expenditures for wind and solar leasing arrangements</header><text display-inline="yes-display-inline">No credit shall be allowed under this section for any investment during the taxable year with respect to property described in paragraph (1), (2), or (4) of section 25D(d) if—</text> <paragraph id="H9DC56D0E592740F9AEFCCFDF4C37CB7B" commented="no"><enum>(1)</enum><text>the taxpayer rents or leases such property to a third party during such taxable year, and</text></paragraph>
<paragraph id="HCF689B226AC048FE82D10E507D93FB5A" commented="no"><enum>(2)</enum><text>the lessee would qualify for a credit under section 25D with respect to such property if the lessee owned such property. </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="H8E55764D78D247A7AAB4A3EF30AF3182"><enum>(d)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48E">Section 48E(h)(4)</external-xref> is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAA42EA7B436442498241E0D6E83CE365"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking <quote>December 31 of the applicable year (as defined in section 45Y(d)(3))</quote> and inserting <quote>December 31, 2028</quote>, </text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H05ABC5ED7BD04031A1F0874E851C592A"><enum>(2)</enum><text>in subparagraph (D), by striking <quote>the third calendar year following the applicable year (as defined in section 45Y(d)(3))</quote> and inserting <quote>2028</quote>, and</text></paragraph>
<paragraph id="H51424B592039443CA5F15B812FF229D8"><enum>(3)</enum><text>in subparagraph (E)(i), by striking <quote>after the date that is 4 years after the date of the allocation with respect to the facility of which such property is a part</quote> and inserting </text> <quoted-block style="OLC" id="H895667103E8A4EA18A4D6E59E9B43E00" display-inline="yes-display-inline"><text display-inline="yes-display-inline">the earlier of—</text>
<subclause id="H251D8749B2B8464D876ADAC06261CBE8"><enum>(I)</enum><text display-inline="yes-display-inline">the date that is 4 years after the date of the allocation with respect to the facility of which such property is a part, or</text></subclause> <subclause id="H35EA0C9D663A4F8A89DD5A7ECE3084D3"><enum>(II)</enum><text display-inline="yes-display-inline">December 31, 2028. </text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HDACB0A08BEE84B449DCEAFBF758F659F"><enum>(e)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="H029D42BD59C543B7A3F34AAC522C1F32"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.</text></paragraph> <paragraph id="H1396A9A957EA4745A72D4984C63B9A47" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Termination of credit</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to facilities and energy storage technology for which construction begins after the date that is 60 days after the date of enactment of this Act.</text></paragraph> </subsection> </section>
<section id="HF80C3C98F20344F2A4F1B5AA5E839A6A"><enum>112010.</enum><header>Repeal of transferability of clean fuel production credit</header>
<subsection id="HCAD9576D92E04AEBA1FC23D7AAB0855A" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6418">Section 6418(f)(1)(A)</external-xref> is amended by striking clause (viii).</text></subsection> <subsection id="HD199EF6681CD4ADFBAEF64155FAEB878" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to fuel produced after December 31, 2027.</text></subsection></section>
<section id="H40AEBB4438284746B83152A227D84810"><enum>112011.</enum><header>Restrictions on carbon oxide sequestration credit</header>
<subsection id="H699101EB1EA04A5394F48D4A54B673BA" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>Restrictions relating to prohibited foreign entities</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(f)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H32752A9A7FEC4C74A48CB9CDF6A5C062"> <paragraph commented="no" display-inline="no-display-inline" id="H6B5C45415A094856853BA98503CC5ADF"><enum>(10)</enum><header>Restrictions relating to prohibited foreign entities</header> <subparagraph commented="no" display-inline="no-display-inline" id="H35D64C58CC744F1EBF2AF17556107DFE"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD3249D0242104DA2AD40D609D1D03E0D"><enum>(B)</enum><header>Other prohibited foreign entities</header><text display-inline="yes-display-inline">No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="H2DA5BFA78D9B45C3B1D71DBB8199ED0D"><enum>(b)</enum><header display-inline="yes-display-inline">Repeal of transferability</header><text display-inline="yes-display-inline">Section 6418(f)(1), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/112010">section 112010,</external-xref> is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC35642365CFB4223B86F3310F88D862C"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking clause (iii), and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H8C541AAB655F4B85B989CEDB366A088B"><enum>(2)</enum><text>in subparagraph (B)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4EE1F4C0AF3C405FABE2BD8ED500B1D5"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by striking <quote>clause (ii), (iii), or (v)</quote> and inserting <quote>clause (ii) or (v)</quote>, and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HEE8B420FE87743D8A401891DF8FC85E9"><enum>(B)</enum><text>in clause (ii), by striking <quote>(or, in the case</quote> and all that follows through <quote>at such facility)</quote>.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H53057E9165DC4E7AB6513849754DA07B"><enum>(c)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5B5D60597B8E4D0D91C24EFD30E34C27"><enum>(1)</enum><header>Restrictions relating to prohibited foreign entities</header><text>The amendments made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act.</text></paragraph> <paragraph id="HB9F3BB9B82394FDABEAF7DA5C6A8E21A" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Repeal of transferability</header><text>The amendments made by subsection (b) shall apply to carbon capture equipment the construction of which begins after the date that is 2 years after the date of enactment of this Act.</text></paragraph></subsection></section>
<section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="H037124C7B0184A4CBF388F1532D9D9CA"><enum>112012.</enum><header display-inline="yes-display-inline">Restrictions on zero-emission nuclear power production credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H0259D9FC08884AC69D450B0E0CC7E460"><enum>(a)</enum><header>Restrictions relating to prohibited foreign entities</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45U">Section 45U(c)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H2A7F4754B86045E58528A32CBD9C03DF"> <paragraph commented="no" display-inline="no-display-inline" id="H542821243C2140AB8190B69384CB78FF"><enum>(3)</enum><header>Restrictions relating to prohibited foreign entities</header> <subparagraph commented="no" display-inline="no-display-inline" id="H67EC4FD46FF84983866090074B1824DE"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H6E08006C4CA445E998FE90AC4DAA08FD"><enum>(B)</enum><header>Other prohibited foreign entities</header><text display-inline="yes-display-inline">No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H03CB91B64E8C4BE49DD16AC4882762D9"><enum>(b)</enum><header>Termination of credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45U">Section 45U(e)</external-xref> is amended by striking <quote>December 31, 2032</quote> and inserting <quote>December 31, 2031</quote>. </text></subsection>
<subsection id="HADDA272314254C4E8316B065FA38E173" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.</text> </subsection> </section> <section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="H74370C806F1C46D9AD5257EE981D0AF3"><enum>112013.</enum><header display-inline="yes-display-inline">Termination of clean hydrogen production credit</header> <subsection commented="no" display-inline="no-display-inline" id="HFCDA0F3D2205405D912A7DA2E0BC8A49"><enum>(a)</enum><header>Termination</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45V">Section 45V(c)(3)(C)</external-xref> is amended by striking <quote>January 1, 2033</quote> and inserting <quote>January 1, 2026</quote>.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H459F5D3268924BA394F72F6E8A17D4C5"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to facilities the construction of which begins after December 31, 2025.</text></subsection></section> <section id="H2F79E7815E464EB29BB3E1F28E71D5D6"><enum>112014.</enum><header>Phase-out and restrictions on advanced manufacturing production credit</header> <subsection commented="no" display-inline="no-display-inline" id="H893B6BD0795A4E489777FE3D261BD1B7"><enum>(a)</enum><header>Phase-out</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45X">Section 45X(b)(3)</external-xref> is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4681FB3EE43A4FE9A210B42B1C85891F"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H5B1AC534423A44079E49D6E67ACFC5E0"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (ii), by adding <quote>and</quote> at the end,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H536EB0DAA2B845219FB65813FEC8CB44"><enum>(B)</enum><text>in clause (iii), by striking <quote>during calendar year 2032, 25 percent,</quote> and inserting <quote>after December 31, 2031, 0 percent.</quote>, and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HB8EECA2D1263487AA2D2FFBB6F976AF8"><enum>(C)</enum><text>by striking clause (iv), and</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB2A044294176401AAF0CC14DF1ED2809"><enum>(2)</enum><text>by striking subparagraph (C) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H42BC8FBC47314F8C88AFEBF1B2A9FA41"> <subparagraph commented="no" display-inline="no-display-inline" id="H534F3C58FF3D4253A2809F6FA46163E2"><enum>(C)</enum><header>Termination for wind energy components</header><text>This section shall not apply to wind energy components sold after December 31, 2027.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H787C571459A044E5BC9F1EF5EA902BD8"><enum>(b)</enum><header>Restrictions relating to prohibited foreign entities</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45X">Section 45X</external-xref> is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H3604E83C27A747F3B3D0AD66AC00244A"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(1), by adding at the end the following new subparagraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H1682B4B5F844487D96AA08B1BC1D6CF0">
<subparagraph commented="no" display-inline="no-display-inline" id="H27896255772A4BB094FF1CFE2B967434"><enum>(C)</enum><header>Material assistance from prohibited foreign entities</header><text display-inline="yes-display-inline">In the case of taxable years beginning after the date which is 2 years after the date of enactment of this subparagraph, the term <term>eligible component</term> shall not include any property which—</text> <clause commented="no" display-inline="no-display-inline" id="HC1C6E942A1084986ACFA7C2090A961F7"><enum>(i)</enum><text display-inline="yes-display-inline">includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)), or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H56DE412FD0C1460FA960E3498B5A69CF"><enum>(ii)</enum><text display-inline="yes-display-inline">is produced subject to a licensing agreement with a prohibited foreign entity (as defined in section 7701(a)(51)) for which the value of such agreement is in excess of $1,000,000.</text></clause></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H587F7E90272D425B8C4EBA8629755D76"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d), by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H797304E00AEE44EE965A65C239D3EAED">
<paragraph commented="no" display-inline="no-display-inline" id="HDAEB113F2E9C422E9BC44A40B790DE15"><enum>(5)</enum><header>Restrictions relating to prohibited foreign entities</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H929BA6B1750544F3B0AE0B9569493405"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H4B349A0852AB494EB64B0163E7175BBB"><enum>(B)</enum><header>Other prohibited foreign entities</header><text display-inline="yes-display-inline">No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5A45E0449C3948A9B4FE690B3E678104"><enum>(C)</enum><header>Payments to prohibited foreign entities</header>
<clause commented="no" display-inline="no-display-inline" id="HA904EDF57A0A4BF3AC227C2D0E028AE3"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">If, for any taxable year beginning after the date that is 2 years after the date of the enactment of this paragraph, a taxpayer is described in clause (ii) for such taxable year with respect to any eligible component category, no credit shall be determined under subsection (a) for eligible components in such eligible component category for such taxable year.</text></clause> <clause commented="no" display-inline="no-display-inline" id="HE500BAB46CDD46A3A6767C8A7CAEA0BE"><enum>(ii)</enum><header>Taxpayer described</header><text display-inline="yes-display-inline">A taxpayer is described in this clause for a taxable year with respect to any eligible component category if such taxpayer—</text>
<subclause commented="no" display-inline="no-display-inline" id="H375D5581946C4E30AEBB0C0E0FEAEB84"><enum>(I)</enum><text display-inline="yes-display-inline">makes a payment of dividends, interest, compensation for services, rentals or royalties, guarantees or any other fixed, determinable, annual, or periodic amount to a prohibited foreign entity (as defined in section 7701(a)(51)) in an amount which is equal to or greater than 5 percent of the total of such payments made by such taxpayer during such taxable year which are related to the production of eligible components included within such eligible component category, or</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H16D0566EF0DE43FDAA98E3F3D9E281ED"><enum>(II)</enum><text display-inline="yes-display-inline">makes payments described in subclause (I) to more than 1 prohibited foreign entity (as so defined) in an amount which, in the aggregate, is equal to or greater than 15 percent of such payments made by such taxpayer during such taxable year which are related to the production of eligible components included within such eligible component category.</text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="H527C6E87F4B642ABA476811DD9A1469F"><enum>(iii)</enum><header>Eligible component category</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>eligible component category</term> means eligible components which are included within each respective clause under subsection (c)(1)(A).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H42EC9F9F9243449FA1933231A023C9E2" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Repeal of transferability</header><text display-inline="yes-display-inline">Section 6418, as amended by sections 112010, 112011, and 112012 is amended—</text>
<paragraph id="H4565FC42EE964D43BCA0DAB73FDC345F" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text>in subsection (f)(1)—</text> <subparagraph id="H7EAB38D876D045C390ACFD99BF12CDA9" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<clause id="H6CCDB416309E438FB121EB55D8BC4D3B" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text display-inline="yes-display-inline">by striking clause (vi), and</text></clause> <clause id="H5D5C5FCC4B9E4F26AD5639E94AE11E93" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>by redesignating clauses (iv), (v), (vii), (ix), (x), and (xi) as clauses (iii), (iv), (v), (vi), (vii), and (viii), respectively, and</text></clause></subparagraph>
<subparagraph id="H1DA5EE128E4249BA8E15CC6FFEDFD361" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>clause (ii) or (v)</quote> and inserting <quote>clause (ii) or (iv)</quote>, and</text></subparagraph></paragraph> <paragraph id="H71929782F830407A956F794D1EE8FC9F" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (g)(3), by striking <quote>clause (ix) or (x)</quote> and inserting <quote>clause (vi) or (vii)</quote>.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H81AF24A7C967422B83D95FA73A2725B8"><enum>(d)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE885A3392751459C96DEC6F94B56614C"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.</text></paragraph> <paragraph id="H9B2144E148B240F0917F6DE9841F3CF3" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Repeal of transferability</header><text display-inline="yes-display-inline">The amendments made by subsection (c) shall apply to components sold after December 31, 2027.</text></paragraph></subsection></section>
<section id="H15677944050D462DA2EC544519049A35" display-inline="no-display-inline"><enum>112015.</enum><header>Phase-out of credit for certain energy property</header>
<subsection id="HC6BE7AADA41D42C783BFAFC7F76E4CAD" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>Phase-out</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended—</text> <paragraph id="H126172E4463D45F8B3FBD15DB0636485" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (3)(vii), by striking <quote>the construction of which begins before January 1, 2035</quote> and inserting <quote>the construction of which begins before January 1, 2032</quote>, and</text></paragraph>
<paragraph id="H422DDEB0C72F4BA58F0EAF6478893889" commented="no" display-inline="no-display-inline"><enum>(2)</enum><text>by striking paragraph (7) and inserting the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HDDD8850394F94361B153D338393A5751"> <paragraph id="H2C708B461826419FB51695DC97DDAA2E" commented="no" display-inline="no-display-inline"><enum>(7)</enum><header>Phase-out for certain energy property</header><text display-inline="yes-display-inline">In the case of any energy property described in clause (vii) of paragraph (3)(A), the energy percentage determined under paragraph (2) shall be equal to—</text>
<subparagraph id="HE12068F593244CF59A3EC295E768CA15" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of any property the construction of which begins before January 1, 2030, and which is placed in service after December 31, 2021, 6 percent,</text></subparagraph> <subparagraph id="H06E6B3E08E7742079A0E4BD3AC471B7D" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of any property the construction of which begins after December 31, 2029, and before January 1, 2031, 5.2 percent, and</text></subparagraph>
<subparagraph id="H3DE1E87BB3FA42ACB08F78C786031D67" commented="no" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">in the case of any property the construction of which begins after December 31, 2030, and before January 1, 2032, 4.4 percent. </text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HA870F56B49454208B7D6949165DD1A31" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header>Restrictions relating to prohibited foreign entities</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended by redesignating paragraph (16) as paragraph (17) and by inserting after paragraph (15) the following new paragraph: </text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HB26AB17483BE4B80A755F794DB269B8E">
<paragraph commented="no" display-inline="no-display-inline" id="H6E4DAD0FDE26454A8CA685D1D70A8FFD"><enum>(16)</enum><header>Restrictions relating to prohibited foreign entities</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4DA64C96EC0F478789802351B54EAE98"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>No credit determined under this subsection for energy property described in paragraph (3)(A)(vii) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H2E2CD724B6F141C4A81D875AD10B85BF"><enum>(B)</enum><header>Other prohibited foreign entities</header><text display-inline="yes-display-inline">No credit determined under this subsection for energy property described in paragraph (3)(A)(vii) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H94A66AD28035470D8418EA2747E7B2BC"><enum>(c)</enum><header>Repeal of transferability</header><text display-inline="yes-display-inline">Section 6418(f)(1)(A)(iii), as redesignated by <external-xref legal-doc="usc" parsable-cite="usc/26/112014">section 112014,</external-xref> is amended by inserting <quote>(except so much of the credit as is determined under paragraph (3)(A)(vii) of such section)</quote> after <quote>section 48</quote>. </text></subsection> <subsection id="H936F363BD69F41C881F5BB1CBEA4D540" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header display-inline="yes-display-inline">Effective dates</header> <paragraph id="H6DA3A101801B4EF0922020C9B9D00C7D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph>
<paragraph id="H6A85F546A8A3426AACEB2A260975078B"><enum>(2)</enum><header>Repeal of transferability</header><text>The amendments made by subsection (c) shall apply to property the construction of which begins after the date that is 2 years after the date of enactment of this Act. </text></paragraph></subsection></section> <section id="H77D184414E214AC79B1C0300BA0719F4" commented="no" display-inline="no-display-inline"><enum>112016.</enum><header>Income from hydrogen storage, carbon capture added to qualifying income of certain publicly traded partnerships treated as corporations</header> <subsection id="HEA0D5D0C498441598D53A8ABE86E6383" commented="no"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7704">Section 7704(d)(1)(E)</external-xref> is amended—</text>
<paragraph id="H3D9A293EF774471C8901E012F6D69214" commented="no"><enum>(1)</enum><text>by striking <quote>income and gains derived from the exploration</quote> and inserting </text> <quoted-block style="OLC" display-inline="yes-display-inline" id="H8329E161B11F4EFA890B564967849683"><text>income and gains derived from—</text>
<clause id="HBA41B956994F41879BD8B9D553D29B3E" commented="no"><enum>(i)</enum><text>the exploration</text></clause><after-quoted-block>,</after-quoted-block></quoted-block></paragraph> <paragraph id="H48270E38722A4065A4C2F4AE903E80D6" commented="no"><enum>(2)</enum><text>by inserting <quote>or</quote> before <quote>industrial source</quote>, and</text></paragraph>
<paragraph id="HD26275AC4F7B4585B66C3D92F4A2CC83" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>the transportation or storage</quote> and all that follows and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H7F1A2521F5604CC0A7F3B2A736979756"> <clause id="H1327B355A5EC41D6B7FE1544EF46CF19" commented="no"><enum>(ii)</enum><text>the transportation or storage of—</text>
<subclause id="H5BB39CEDAC3644B1A7819D48B2B93E3A" commented="no" display-inline="no-display-inline"><enum>(I)</enum><text display-inline="yes-display-inline">any fuel described in subsection (b), (c), (d), (e), or (k) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel as defined in section 40A(d)(1) or sustainable aviation fuel as defined in section 40B(d)(1), or</text></subclause> <subclause id="HFC4B96E8A22E4DBEB43C29260D27A2B1" commented="no" display-inline="no-display-inline"><enum>(II)</enum><text>liquified hydrogen or compressed hydrogen, or</text></subclause></clause>
<clause id="H573708A9BED549C49BD3CE9F77EED4F2" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility is required to begin) not less than 50 percent of the total carbon oxide production of which is qualified carbon oxide (as defined in section 45Q(c))—</text> <subclause id="H388E08E979934512BA8F3FDFBC7CB6B2"><enum>(I)</enum><text>the generation, availability for such generation, or storage of electric power at such facility, or</text></subclause>
<subclause id="H708486EE33F143E28C17D3B07E180F38"><enum>(II)</enum><text>the capture of carbon dioxide by such facility,</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H9DF30E0132C4455D8229AE933573D17F" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="HB3D27B5D8B784E9BABE037B58DB5345F"><enum>112017.</enum><header>Limitation on amortization of certain sports franchises</header>
<subsection id="HE9AEF09CD11348F080433254172EAB39"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/197">Section 197</external-xref> is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:</text> <quoted-block style="OLC" id="H0408DEC86BC74906A41C57FA95DE0353" display-inline="no-display-inline"> <subsection id="H777B362F827A49CF97202A017C29C13C"><enum>(g)</enum><header>Limitation on amortization of certain sports franchises</header> <paragraph id="H666A2900B82E48AEB6A79D08D5797CC0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a specified sports franchise intangible, subsection (a) shall be applied by substituting <quote>50 percent of the adjusted basis</quote> for <quote>the adjusted basis</quote>.</text></paragraph>
<paragraph id="H44F81E67A73F4D4E823C9159FF0DF1FC"><enum>(2)</enum><header>Specified sports franchise intangible</header><text>For purposes of this subsection, the term <quote>specified sports franchise intangible</quote> means any amortizable section 197 intangible which is—</text> <subparagraph id="H2EF8167A6D8C479299224FA87C4F9F96"><enum>(A)</enum><text display-inline="yes-display-inline">a franchise to engage in professional football, basketball, baseball, hockey, soccer, or other professional sport, or</text></subparagraph>
<subparagraph id="H67AB1C0BC72349B68873636CB0B38DDF"><enum>(B)</enum><text>acquired in connection with such a franchise.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H352F4F4220D044D3973855FA7A82A9E8"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property acquired after the date of the enactment of this Act.</text></subsection></section>
<section id="H3BB22918D5AD4D2C8BDFBFF5400FC47D" section-type="subsequent-section"><enum>112018.</enum><header>Limitation on individual deductions for certain State and local taxes, etc</header>
<subsection id="H38F084AFB5FE4C5DBEB5E149A57CE874"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/275">Section 275</external-xref> is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H75C8AE9B56214CEDADBC421B5F95C517"> <subsection id="HE64074BE5EEA4F94ABDA43538E31F324"><enum>(b)</enum><header>Limitation on individual deductions for certain State and local taxes, etc</header> <paragraph id="H62C01299ED234D6EAD1A1A57DF21F19F"><enum>(1)</enum><header>Limitation</header> <subparagraph id="HAB9D32BBAC1B422198489C22387E238E"><enum>(A)</enum><header>In general</header><text>In the case of an individual, no deduction shall be allowed for—</text>
<clause id="HA48414136E1F41AC8A0E1DDA66177A73"><enum>(i)</enum><text>any disallowed foreign real property taxes, and</text></clause> <clause id="H24E8C616EF1E46E68687CD3B98B74E1A"><enum>(ii)</enum><text>any specified taxes to the extent that such taxes for such taxable year in the aggregate exceed—</text>
<subclause id="HD1E018B7820D4948808F9AACDB83409D"><enum>(I)</enum><text display-inline="yes-display-inline">half the dollar amount in effect under subclause (II), in the case of a married individual filing a separate return, and</text></subclause> <subclause id="HDDFEFA0AE200419C8D26707F484EAFFB"><enum>(II)</enum><text display-inline="yes-display-inline">$40,400, in the case of any other taxpayer.</text></subclause></clause></subparagraph>
<subparagraph id="H2C0FCA603E784B3AB986B2B7E8D6F6C3" display-inline="no-display-inline"><enum>(B)</enum><header>Phasedown based on modified adjusted gross income</header>
<clause id="HCC4C8020704E48DBBE773245054DE651"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), the limitation otherwise in effect under subparagraph (A)(ii) shall be reduced by 30 percent of the excess (if any) of the taxpayer’s modified adjusted gross income over—</text> <subclause id="HE2CE85BC8EC048A9B92ACE15F6C96E14"><enum>(I)</enum><text display-inline="yes-display-inline">half the dollar amount in effect under subclause (II), in the case of a married individual filing a separate return, and </text></subclause>
<subclause id="H4CDD08B9E833491DB89C8C6F5A9E5236"><enum>(II)</enum><text display-inline="yes-display-inline">$505,000, in the case of any other taxpayer.</text></subclause></clause> <clause id="H90B3A6C101BE4FEBA59088AA2B786128" commented="no"><enum>(ii)</enum><header>Limitation on reduction</header><text>The reduction under clause (i) shall not result in—</text>
<subclause id="H399B2AAD4CEB429F875F411C885270FE" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">the limitation in effect under subparagraph (A)(ii)(I) being less than $5,000, or</text></subclause> <subclause id="HF0C77FA8A1624EC99FD4420C36026362" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the limitation in effect under subparagraph (A)(ii)(II) being less than $10,000.</text></subclause></clause></subparagraph>
<subparagraph id="H636EC51873F84ABE8B0E9191E1B57567"><enum>(C)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>modified adjusted gross income</quote> means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.</text></subparagraph> <subparagraph id="H04FE2B1A61934E5C89E8B0A2D4D8D7F6"><enum>(D)</enum><header>Adjustment of certain dollar amounts</header> <clause id="HEF3E490A2D7740858F7AC4BD1949F010"><enum>(i)</enum><header>In general</header><text>In the case of any taxable year beginning after December 31, 2026, and before January 1, 2034, the dollar amount in effect under subparagraph (A)(ii)(II), and the dollar amount in effect under subparagraph (B)(i)(II), shall each be equal to 101 percent of such dollar amount as in effect for taxable years beginning in the preceding taxable year.</text></clause>
<clause id="HC7B4DF5C30B74686A43FEDD3DD8663F2"><enum>(ii)</enum><header>Maintenance of increase thereafter</header><text>In the case of any taxable year beginning after December 31, 2033, the dollar amounts referred to in clause (i) shall be equal to such dollar amounts as in effect for taxable years beginning in 2033.</text></clause></subparagraph></paragraph> <paragraph id="H7251F5EF80C54C50BE81170D8B61347D"><enum>(2)</enum><header>Disallowed foreign real property tax</header><text>For purposes of this subsection, the term <quote>disallowed foreign real property tax</quote> means any tax which—</text>
<subparagraph id="H1209CE1E078442B1AE1B95BA41A8819F"><enum>(A)</enum><text>is a foreign real property tax described in section 164(a)(1) or 216(a)(1), and</text></subparagraph> <subparagraph id="H08FD47F090374A9B81E0C3949A35AED0"><enum>(B)</enum><text>is not an excepted tax.</text></subparagraph></paragraph>
<paragraph id="HA4B2F4B66C834D8ABFF7C1F798C83D3E"><enum>(3)</enum><header>Specified tax</header><text>For purposes of this subsection, the term <quote>specified tax</quote> means—</text> <subparagraph id="H73E583E6BBCB42FD9C365D32A6E5E4FF"><enum>(A)</enum><text>any tax which—</text>
<clause id="H1CC0341E92734DC5A5F8CB863AA6ADB2"><enum>(i)</enum><text display-inline="yes-display-inline">is described in paragraph (1), (2), or (3) of section 164(a) or section 216(a)(1), or is taken into account under section 164(b)(5), and</text></clause> <clause id="H7469C156032742C981E40B4943EF69D3"><enum>(ii)</enum><text>is not an excepted tax or a disallowed foreign real property tax, and</text></clause></subparagraph>
<subparagraph id="H9375579D1AAC4374B2651F3DB1847BD9"><enum>(B)</enum><text>any substitute payment.</text></subparagraph></paragraph> <paragraph id="HBA0917D9D60C4AEEBA19BEFBBC2FCEF4"><enum>(4)</enum><header>Excepted tax</header><text>For purposes of this subsection—</text>
<subparagraph id="H88544E06EB694AD3AD12891658E88345"><enum>(A)</enum><header>In general</header><text>The term <quote>excepted tax</quote> means—</text> <clause id="HF53E9503A9E34B7B9C9842CEF067E481"><enum>(i)</enum><text>any foreign tax described in section 164(a)(3),</text></clause>
<clause id="H6BB151493F3D4DC984CDC075ACB0F088"><enum>(ii)</enum><text display-inline="yes-display-inline">any tax described in section 164(a)(3) which is paid or accrued by a qualifying entity with respect to carrying on a qualified trade or business (as defined in section 199A(d), without regard to section 199A(b)(3)), and</text></clause> <clause id="HEC7CB2841183437D94EC7DECD2D490C5"><enum>(iii)</enum><text>any tax described in paragraph (1) or (2) of section 164(a), or section 216(a)(1), which is paid or accrued in carrying on a trade or business or an activity described in section 212.</text></clause></subparagraph>
<subparagraph id="H4978A2BF0C484CDE8DE35D7C3C65CD7B"><enum>(B)</enum><header>Qualifying entity</header><text>For purposes of subparagraph (A), the term <quote>qualifying entity</quote> means any partnership or S corporation with gross receipts for the taxable year (within the meaning of section 448(c)) if at least 75 percent of such gross receipts are derived in a qualified trade or business (as defined in section 199A(d), without regard to section 199A(b)(3)). For purposes of the preceding sentence, the gross receipts of all trades or businesses which are under common control (within the meaning of section 52(b)) with any trade or business of the partnership or S corporation shall be taken into account as gross receipts of the entity.</text></subparagraph></paragraph> <paragraph id="H06F80B5334814765802AC39056AC8BDD"><enum>(5)</enum><header>Substitute payment</header><text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph id="HF8D4B66C5BBE43D8A36569FB3D0F9444"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>substitute payment</quote> means any amount (other than a tax described in paragraph (3)(A) or (4)(A)(ii)) paid, incurred, or accrued to any entity referred to in section 164(b)(2) if, under the laws of one or more entities referred to in section 164(b)(2), one or more persons would (if the assumptions described in subparagraphs (B) and (C) applied) be entitled to specified tax benefits the aggregate dollar value of which equals or exceeds 25 percent of such amount.</text></subparagraph> <subparagraph id="HCAB2D81CF5574E829C8C02B796A22D47"><enum>(B)</enum><header>Assumption regarding dollar value of tax benefits</header><text display-inline="yes-display-inline">The assumption described in this subparagraph is that the dollar value of a specified tax benefit is—</text>
<clause id="HB619492FA61944B8B638C0CF3ABDD5C7" display-inline="no-display-inline"><enum>(i)</enum><text>in the case of a credit or refund, the amount of such credit or refund,</text></clause> <clause id="H35B7E140A4E4428BA72D0E41A5F34F7D"><enum>(ii)</enum><text>in the case of a deduction or exclusion, 15 percent of the amount of such deduction or exclusion, and</text></clause>
<clause id="HB1388F183F0B4D808C88731877C67C9E"><enum>(iii)</enum><text>in any other case, an amount determined in such manner as the Secretary may provide consistent with the principles of clauses (i) and (ii).</text></clause></subparagraph> <subparagraph id="HF3B6F0B7C1324489AA55B4D800BD27A5"><enum>(C)</enum><header>Assumption regarding status of partners or shareholders</header><text>The assumption described in this subparagraph is, in the case of any amount referred to in subparagraph (A) which is paid, incurred, or accrued by a partnership or S corporation, that all of the partners or shareholders of such partnership or S corporation, respectively, are individuals who are residents of the jurisdiction of the entity or entities providing the specified tax benefits (and possess such other characteristics as the laws of such entities may require for entitlement to such benefits).</text></subparagraph>
<subparagraph id="H20D567C2A81F4374B040DD1F85088061"><enum>(D)</enum><header>Specified tax benefit</header><text>For purposes of subparagraph (A), the term <quote>specified tax benefit</quote> means any benefit which—</text> <clause id="H9B3E24CECF844C3BA266930FB1517F1E"><enum>(i)</enum><text>is determined with respect to the amount referred to in subparagraph (A), and</text></clause>
<clause id="H30A1EC987985409FBAA87E5435E638B2"><enum>(ii)</enum><text display-inline="yes-display-inline">is allowed against, or determined by reference to, a tax described in paragraph (3)(A) or section 164(b)(5).</text></clause></subparagraph> <subparagraph id="HFC40C7B13B21444F9CD6F59997188DBA"><enum>(E)</enum><header>Exception for non-deductible payments</header><text display-inline="yes-display-inline">To the extent that a deduction for an amount described in subparagraph (A) is not allowed under this chapter (determined without regard to this subsection, section 170(b)(1), section 703(a), section 704(d), and section 1363(b)), the term <quote>substitute payment</quote> shall not include such amount.</text></subparagraph>
<subparagraph id="H4FF4F8227FA1464D8EF5A6A522ACA4F2"><enum>(F)</enum><header>Exception for certain withholding taxes</header><text>To the extent provided in regulations issued by the Secretary, the term ‘substitute payment’ shall not include an amount withheld on behalf of another person if all of such amount is included in the gross income of such person (determined under this chapter).</text></subparagraph></paragraph> <paragraph id="H8DD6B75A433E48D9AF01FC2FFA67BE58"><enum>(6)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance—</text>
<subparagraph id="HB49E0B188EDC4CAB9049B39B5392CB64"><enum>(A)</enum><text>to treat as a tax described in paragraph (3) of section 164(a) any tax that is, in substance, based on general tax principles, described in such paragraph,</text></subparagraph> <subparagraph id="H4E9CF0338BD44F5083F8FDE61F6E2BAA"><enum>(B)</enum><text>to treat as a substitute payment any amount that, in substance, substitutes for a specified tax,</text></subparagraph>
<subparagraph id="H083B075753FD4346AEC0DD308E751C7D"><enum>(C)</enum><text display-inline="yes-display-inline">to provide for the proper allocation, for purposes of paragraph (4)(A)(ii), of taxes described in section 164(a)(3) between trades or business described in section 199A(d)(1) and trades or business not so described, and</text></subparagraph> <subparagraph id="HDA73A96BC4DF471197559BCFAD0B90E1"><enum>(D)</enum><text>to otherwise prevent the avoidance of the purposes of this subsection.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H62DCE514FA1F49DAACC08B8BA5C44591"><enum>(b)</enum><header>State and local income taxes paid by partnerships and S corporations taken into account separately by partners and shareholders</header>
<paragraph id="H45F7CF7F9A684D04A37D687B32933F49"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/702">Section 702(a)(6)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="H75D8986A10994F1E89A7B90C135668FE" display-inline="no-display-inline"> <paragraph id="HFECA6BFAF4C647EABF8739C80CAAEBFA"><enum>(6)</enum> <subparagraph id="HA13E628EB8BD4C96B3012457BAB06B3A" display-inline="yes-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">taxes, described in section 901, paid or accrued to foreign countries,</text></subparagraph>
<subparagraph id="H715CE338BC3049B5BC3FD6CD6C1EAF6A" indent="up1"><enum>(B)</enum><text>taxes, described in section 901, paid or accrued to possessions of the United States, </text></subparagraph> <subparagraph id="H521554C648B742EBBDC99816F293EB68" indent="up1"><enum>(C)</enum><text>specified taxes (within the meaning of section 275(b)), other than taxes described in subparagraph (B), and</text></subparagraph>
<subparagraph id="H483ABEB26DCC402B9CADEC1773088844" indent="up1"><enum>(D)</enum><text>taxes described in section 275(b)(2),</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HC69FD2683C8E48CC885C3521B3A0D49A"><enum>(2)</enum><header>Treatment of substitute payments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/702">Section 702</external-xref> is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection:</text>
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<subsection id="H0A2767A1A4674C65A7A933C9236E549B"><enum>(d)</enum><header>Treatment of substitute payments</header><text display-inline="yes-display-inline">Any substitute payment (as defined in section 275(b)(5)) shall be taken into account under subsection (a)(6)(C) and not under any other paragraph of subsection (a).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H25009D1DC07F49CC8AB3D17D71C0E6E8"><enum>(3)</enum><header>Disallowance of deduction to partnerships</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/703">Section 703(a)(2)(B)</external-xref> is amended to read as follows:</text>
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<subparagraph id="H4809688E8541474180A680AA4737A925"><enum>(B)</enum><text display-inline="yes-display-inline">any deduction under this chapter with respect to taxes or payments described in section 702(a)(6),</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H143E85C773B6490E90AFA35E3D73DF76"><enum>(4)</enum><header>S corporations</header><text display-inline="yes-display-inline">For corresponding provisions related to S corporations which apply by reason of the amendments made by paragraphs (1) through (3), see sections 1366(a)(1) and 1363(b)(2) of the Internal Revenue Code of 1986.</text></paragraph>
<paragraph id="HEAA3875B9EA342048E5B3210183FF00E"><enum>(5)</enum><header>Allowable SALT deductions taken into account for purposes of limitation on partnership losses</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/704">Section 704(d)(3)</external-xref> is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting before subparagraph (C) (as so redesignated) the following new subparagraphs:</text> <quoted-block style="OLC" id="H9F246018C20A454EBF6973F27AE75F3D" display-inline="no-display-inline"> <subparagraph id="H2DA9CF18AE83414693894BC0F65A2E3F"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In determining the amount of any loss under paragraph (1), there shall be taken into account—</text>
<clause id="HF7A17238B0C945F3BCCB883211849BBE"><enum>(i)</enum><text display-inline="yes-display-inline">the partner’s distributive share of amounts described in paragraphs (4) and (6)(A) of section 702(a),</text></clause> <clause id="HBB6B521C817544D98BC0FC81986024FB"><enum>(ii)</enum><text>if the taxpayer chooses to take to any extent the benefits of section 901, the partner’s distributive share of amounts described in section 702(a)(6)(B), and</text></clause>
<clause id="HC68F5E1A3BDB4FBE9EF6955043739507"><enum>(iii)</enum><text>the amount by which the deductions allowed under this chapter (determined without regard to this subsection) to the partner would decrease if the partner’s distributive share of amounts described in section 702(a)(6)(C) were not taken into account.</text></clause></subparagraph> <subparagraph id="H146AD236DE65440EBDA1CA5CA89A58FF"><enum>(B)</enum><header>Treatment of possession taxes in event partner does not elect the foreign tax credit</header><text display-inline="yes-display-inline">In the case of a taxpayer not described in subparagraph (A)(ii), subparagraph (A)(iii) shall be applied by substituting <quote>subparagraphs (B) and (C) of section 702(a)(6)</quote> for <quote>section 702(a)(6)(C)</quote>. </text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H8884E64A95714156A90FEC7B1B9C57A8"><enum>(6)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/56">Section 56(b)(1)(A)(ii)</external-xref> is amended by inserting <quote>or for any substitute payment (as defined in section 275(b)(5))</quote> before the period at the end.</text></paragraph></subsection> <subsection id="H58A15FDABD764426BEA8BFD1A55B6AFF"><enum>(c)</enum><header>Addition to tax for State and local tax allocation mismatch</header> <paragraph id="H313A89543E564831921BFFC653D5732E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Part I of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/68">chapter 68</external-xref> is amended by adding at the end the following new section:</text>
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<section id="H64B7BCC3754B4899AD4D10A398214036"><enum>6659.</enum><header>State and local tax allocation mismatch</header>
<subsection id="H351EF2A3B1E7459E859263F75BE67BF3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any covered individual, there shall be added to the tax imposed under section 1 for the taxable year an amount equal to the product of—</text> <paragraph id="H6ADFD31C043D47CE937B78106892D275"><enum>(1)</enum><text>the highest rate of tax in effect under such section for such taxable year, multiplied by</text></paragraph>
<paragraph id="H098670A0958A4E6E866DE87C1927325C"><enum>(2)</enum><text>the sum of the State and local tax allocation mismatches for such taxable year with respect to each partnership specified tax payment with respect to which such individual is a covered individual.</text></paragraph></subsection> <subsection id="H284AA2744F394A79B61770C6CA237FAA"><enum>(b)</enum><header>Covered individual</header><text>For purposes of this section, the term <quote>covered individual</quote> means, with respect to any partnership specified tax payment, any individual (or estate or trust) who—</text>
<paragraph id="H7D8BDDF4F1CB4073820E60B231D17CEF"><enum>(1)</enum><text>is entitled (directly or indirectly) to one or more specified tax benefits with respect to such payment, and</text></paragraph> <paragraph id="H674F3C9A6D3942F6B9753F87F5A7E3A0"><enum>(2)</enum><text display-inline="yes-display-inline">takes into account (directly or indirectly) any item of income, gain, deduction, loss, or credit of the partnership which made such payment.</text></paragraph></subsection>
<subsection id="H87185739048646DA809C4708DE5D946C"><enum>(c)</enum><header>State and local tax allocation mismatch</header><text>For purposes of this section—</text> <paragraph id="HEDAC3BF3954B4B2F8B62C4AEA6A369DE"><enum>(1)</enum><header>In general</header><text>The term <quote>State and local tax allocation mismatch</quote> means, with respect to any partnership specified tax payment, the excess (if any) of—</text>
<subparagraph id="H595BCF2F77124604B63C8AA14AA66912"><enum>(A)</enum><text>the aggregate dollar value of the specified tax benefits of the covered individual with respect to such payment, over</text></subparagraph> <subparagraph id="H91A8D275E9AF4F058FE312C5DA38CFB7"><enum>(B)</enum><text>the amount of such payment taken into account by such individual under section 702(a) (without regard to sections 275(b) and 704(d)).</text></subparagraph></paragraph>
<paragraph id="H647E171EFF624B8B930B2A737FF01D61"><enum>(2)</enum><header>Taxable year of individual in which mismatch taken into account</header><text>In the case of any partnership specified tax payment paid, incurred, or accrued in any taxable year of the partnership, the State and local tax allocation mismatch determined under paragraph (1) with respect to such payment shall be taken into account under subsection (a) by the covered individual for the taxable year of such individual in which such individual takes into account the items referred to in subsection (b)(2) which are determined with respect to such partnership taxable year.</text></paragraph></subsection> <subsection id="H2B0177A28CA3460E9605D547A232FECA"><enum>(d)</enum><header>Determination of dollar value of specified tax benefits</header> <paragraph id="HB806F0F2EFE247C2BBB688A91BD8E696"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except in the case of a covered individual who elects the application of paragraph (3) for any taxable year, the dollar value of any specified tax benefit shall be the sum of—</text>
<subparagraph id="H9143FC531D684330AC3CD1736BBD0959"><enum>(A)</enum><text display-inline="yes-display-inline">the aggregate increase in tax liability (and reduction in credit or refund) for taxes described in section 275(b)(3)(A) for the taxable year and all prior taxable years that would result if such specified tax benefit were not taken into account with respect to such taxes, plus</text></subparagraph> <subparagraph id="H53877E05916148CF84C34ABD34BA5F4C"><enum>(B)</enum><text>the deemed value of any carryforward of such specified tax benefit (including any tax attribute derived from such benefit) to any subsequent taxable year.</text></subparagraph></paragraph>
<paragraph id="H330FDFB1D9C04896B2C922C0113B6646"><enum>(2)</enum><header>Deemed value of carryforwards</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the deemed value of any carryforward is—</text> <subparagraph id="H0E54A7E0FA1C48D2978A6D57A7ADFCD0" display-inline="no-display-inline"><enum>(A)</enum><text>in the case of a credit or refund, the amount of such credit or refund,</text></subparagraph>
<subparagraph id="H74EAFAB5464A4C00BFCE0CE611C62C48"><enum>(B)</enum><text>in the case of a deduction or exclusion, the product of—</text> <clause id="H039355F30DFE4F15A942BE2CADF89ADA"><enum>(i)</enum><text>the highest rate of tax which may be imposed on individuals under the tax referred to in subsection (e)(3)(B) with respect to the specified tax benefit, multiplied by</text></clause>
<clause id="H3D6076710CD84FDB9A3BE2135AF53AAD"><enum>(ii)</enum><text>the amount of such deduction or exclusion, and</text></clause></subparagraph> <subparagraph id="HEE517A1B62B1433EA8005F9081BAF195"><enum>(C)</enum><text>in any other case, an amount determined in such manner as the Secretary may provide consistent with the principles of subparagraphs (A) and (B).</text></subparagraph></paragraph>
<paragraph id="H3AB8780AE61A484184955B16BF20A07E"><enum>(3)</enum><header>Election of simplified method</header><text>In the case of a covered individual who elects the application of this paragraph for any taxable year, the dollar value of any specified tax benefit shall be determined under the assumptions described in section 275(b)(5)(B).</text></paragraph></subsection> <subsection id="H7843E435E7254F53A126A5F5D5806B0C"><enum>(e)</enum><header>Other definitions and special rules</header><text>For purposes of this section—</text>
<paragraph id="H9E612346B84845EBBA2FEC9A983751B6"><enum>(1)</enum><header>Partnership specified tax payment</header><text>The term <quote>partnership specified tax payment</quote> means any specified tax paid, incurred, or accrued by a partnership.</text></paragraph> <paragraph id="HEA206F1DDE2849FDB4D979928C8D5F78"><enum>(2)</enum><header>Specified tax</header><text>The term <quote>specified tax</quote> has the meaning given such term by section 275(b)(3).</text></paragraph>
<paragraph id="H1197380B180E4D829C3D4D4899023827"><enum>(3)</enum><header>Specified tax benefit</header><text>The term <quote>specified tax benefit</quote> means any benefit which—</text> <subparagraph id="H594629E5FA35441491E28C751E271C43"><enum>(A)</enum><text>is determined with respect to a partnership specified tax payment, and</text></subparagraph>
<subparagraph id="H387EAB971B62428AACE8DD4B6FDB411D"><enum>(B)</enum><text>is allowed against, or determined by reference to, a tax described in section 275(b)(3)(A).</text></subparagraph></paragraph></subsection> <subsection id="H5EFAB7F8DED94D8BBF1937F2797925CB"><enum>(f)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance preventing avoidance of the addition to tax prescribed by this section through partnership allocations that achieve similar tax reductions as a State and local tax allocation mismatch.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H2A9FCA8D9DC0482B879B2BD3D5577BBE"><enum>(2)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for part I of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/68">chapter 68</external-xref> is amended by adding at the end the following new item:</text> <quoted-block style="OLC" id="H170B059964BF46C4BD55F4EEA5F1B2A8" display-inline="no-display-inline"> <toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="HBDFBA6AFDEFB4819B4442BDFCA035341" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> <toc-entry idref="H64B7BCC3754B4899AD4D10A398214036" level="section">Sec. 6659. State and local tax allocation mismatch.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HA221C7CB64794BA38C43A51CCFED1E09"><enum>(d)</enum><header>Limitation on capitalization of specified taxes</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/275">Section 275</external-xref>, as amended by the preceding provisions of this section, is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:</text>
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<subsection id="H3357B884ACA243998ABEB3030E8073F7"><enum>(c)</enum><header>Limitations on capitalization of specified taxes</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this chapter, in the case of an individual, specified taxes (as defined in subsection (b)) shall not be treated as chargeable to capital account.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6CC1F6D9E74F4678B4664179E30C43E9"><enum>(e)</enum><header>Reporting by partnerships and S corporations with respect to specified service trade or business income</header> <paragraph id="H0CEF54A3BBE346ADA880A74B62C38F0B"><enum>(1)</enum><header>Partnerships</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6031">Section 6031</external-xref> is amended by adding at the end the following new subsection:</text>
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<subsection id="H5D19C891003249058B321947DB26A417"><enum>(g)</enum><header>Specified service trade or business income</header><text display-inline="yes-display-inline">Returns required under subsection (a), and copies required to be furnished under subsection (b), shall include a statement of whether or not the partnership had any gross receipts (within the meaning of section 448(c)) from a trade or business described in subsection 199A(d)(2).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HB9DA9EACD0684AA99FC8C6F4C5EB71AA"><enum>(2)</enum><header>S corporations</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6037">Section 6037</external-xref> is amended by adding at the end the following new subsection:</text>
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<subsection id="HAB29974D085D4026BC797F237C6DCD99"><enum>(d)</enum><header>Specified service trade or business income</header><text display-inline="yes-display-inline">Returns required under subsection (a), and copies required to be furnished under subsection (b), shall include a statement of whether or not the S corporation had any gross receipts (within the meaning of section 448(c)) from a trade or business described in subsection 199A(d)(2).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HB79FA491E9374DF0B6CF1C74E7901089" display-inline="no-display-inline"><enum>(f)</enum><header>Temporary increase for 2025</header> <paragraph id="HED237DC3A99C4B1FAE6933019C5C5623"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/164">Section 164(b)(6)</external-xref> is amended by striking <quote>$10,000 ($5,000 in the case of a married individual filing a separate return)</quote> and inserting <quote>applicable limitation amount</quote>.</text></paragraph>
<paragraph id="H7654B9093ACA4BBF8A9DAEEFB5DAF308"><enum>(2)</enum><header>Applicable limitation amount</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/164">Section 164(b)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H093665041D0C429DA4EC9CE990C79A57"> <paragraph id="HF3C4A2C3F1834911BC4A5E8E2BCE87DC"><enum>(7)</enum><header>Applicable limitation amount</header> <subparagraph id="H0B739B313C9C4E51BD227C0145BF3582"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (6), the term <quote>applicable limitation amount</quote> means—</text>
<clause id="HD953F74CF62E49188432CF706FCBF5F6"><enum>(i)</enum><text>$20,000, in the case of a married individual filing a separate return, and</text></clause> <clause id="HDD9CDED3ED15455BB9C44E04563088FE"><enum>(ii)</enum><text>$40,000, in the case of any other taxpayer.</text></clause></subparagraph>
<subparagraph id="H01808197A129465385953D9BC069172A" display-inline="no-display-inline"><enum>(B)</enum><header>Phasedown based on modified adjusted gross income</header>
<clause id="HC726149396A14A6AA8119906CC72CB30"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), the $20,000 amount in subparagraph (A)(i) and the $40,000 amount in subparagraph (A)(ii) shall each be reduced by 30 percent of the excess (if any) of the taxpayer’s modified adjusted gross income over—</text> <subclause id="HE4E21D75C9274C6A97D7539E4C119092"><enum>(I)</enum><text>$250,000, in the case of a married individual filing a separate return, and </text></subclause>
<subclause id="H539A2EB09F4C4B1EA9785D949884F017"><enum>(II)</enum><text>$500,000, in the case of any other taxpayer.</text></subclause></clause> <clause id="H2F6D47E58EA8482FAD5F03509CEC8434" commented="no"><enum>(ii)</enum><header>Limitation on reduction</header><text>The reduction under clause (i) shall not result in—</text>
<subclause id="H2053EE774BB241DDB0C1154165FCE2C0" commented="no"><enum>(I)</enum><text>the dollar amount in effect under subparagraph (A)(i) being less than $5,000, or</text></subclause> <subclause id="H9781090EF53E4B72874D58B60C6563AA" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the dollar amount in effect under subparagraph (A)(ii) being less than $10,000.</text></subclause></clause></subparagraph>
<subparagraph id="HCB1F02FAC442483B88B3EADB3FCAE497"><enum>(C)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>modified adjusted gross income</quote> means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H824A6D36A81D4E00AB3DD060BDD66D43"><enum>(3)</enum><header>Repeal after 2025</header><text>Section 164(b), as amended by paragraphs (1) and (2), is amended by striking paragraphs (6) and (7).</text></paragraph></subsection>
<subsection id="H5FA5C41C92674D5680CCABEA32413CF6" display-inline="no-display-inline"><enum>(g)</enum><header>Effective date</header>
<paragraph id="H3E7A1B31403E43098EA1EF9BD5C93805"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></paragraph> <paragraph id="H708EC10D1F474F83A43DEDF2E40B7BED"><enum>(2)</enum><header>Temporary increase for 2025</header><text>The amendments made by paragraphs (1) and (2) of subsection (f) shall apply to taxable years beginning after December 31, 2024.</text></paragraph></subsection></section>
<section id="H48DC9483BE8A474EAD2D91889F5C05C3" section-type="subsequent-section"><enum>112019.</enum><header>Excessive employee remuneration from controlled group members and allocation of deduction</header>
<subsection id="HDE3CC054D14C4C4FA70AFED937492ADB"><enum>(a)</enum><header>Application of aggregation rules</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/162">Section 162(m)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HF3FED9EBB57746E99302EC39D7B02E1C"> <paragraph id="HC5A6B770635A4A358A5A1839087A0924"><enum>(7)</enum><header>Remuneration from controlled group members</header> <subparagraph id="HA7A809A89B2744EF97BE58F20684CC8B"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any publicly held corporation which is a member of a controlled group—</text>
<clause id="H5BA4DD86174942D6A685F89D9943061A"><enum>(i)</enum><text>paragraph (1) shall be applied by substituting <quote>specified covered employee</quote> for <quote>covered employee</quote>, and</text></clause> <clause id="HC6E361F5CBFF4A6B95546094C18B133B"><enum>(ii)</enum><text>if any person which is a member of such controlled group (other than such publicly held corporation) provides applicable employee remuneration to an individual who is a specified covered employee of such controlled group and the aggregate amount described in subparagraph (B)(ii) with respect to such specified covered employee exceeds $1,000,000—</text>
<subclause id="H5BA22142835647C5B5F3FFE4C7E0FD37"><enum>(I)</enum><text>paragraph (1) shall apply to such person with respect to such remuneration, and</text></subclause> <subclause id="HD8FFC9807D774D44B2C1E1DBC501B3A0"><enum>(II)</enum><text>paragraph (1) shall apply to such publicly held corporation and to each such related person by substituting <quote>the allocable limitation amount</quote> for <quote>$1,000,000</quote>.</text></subclause></clause></subparagraph>
<subparagraph id="H92B4CE3D4D50430D8192E9F955B12B4F"><enum>(B)</enum><header>Allocable limitation amount</header><text>For purposes of this paragraph, the term <quote>allocable limitation amount</quote> means, with respect to any member of the controlled group referred to in subparagraph (A) with respect to any specified covered employee of such controlled group, the amount which bears the same ratio to $1,000,000 as—</text> <clause id="HE286689596034A229FAD65B80C316B3E"><enum>(i)</enum><text>the amount of applicable employee remuneration provided by such member with respect to such specified covered employee, bears to</text></clause>
<clause id="HE2526E46F3E24800B09D18E30A2FED05"><enum>(ii)</enum><text>the aggregate amount of applicable employee remuneration provided by all such members with respect to such specified covered employee.</text></clause></subparagraph> <subparagraph id="H6E2BAA25B08D4C1986645436B9F680CD"><enum>(C)</enum><header>Specified covered employee</header><text>For purposes of this paragraph, the term <quote>specified covered employee</quote> means, with respect to any controlled group—</text>
<clause id="H92795342CF294DA9856BFD4C037ACA9E"><enum>(i)</enum><text>any employee described in subparagraph (A), (B), or (D) of paragraph (3), with respect to the publicly held corporation which is a member of such controlled group, and</text></clause> <clause id="H67808A6B784C48AAB0B8FBF019ED501E"><enum>(ii)</enum><text>any employee who would be described in subparagraph (C) of paragraph (3) if such subparagraph were applied by taking into account the employees of all members of the controlled group.</text></clause></subparagraph>
<subparagraph id="H0329647BA6E4436B822BCE87277EF9EC"><enum>(D)</enum><header>Controlled group</header><text>For purposes of this paragraph, the term <quote>controlled group</quote> means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1AED4C440EEE40B4B50FFE2948BA10F7"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="HEB09EB1F254F47F6B973EEAB319E4069" section-type="subsequent-section"><enum>112020.</enum><header>Expanding application of tax on excess compensation within tax-exempt organizations</header>
<subsection id="HFDD7A78C049442EE8A5AC6D6577D4AE4"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4960">Section 4960(c)(2)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="H9FE8670924984896B88083767F418F42" display-inline="no-display-inline"> <paragraph id="H03ECBE6BFF2D457E9B9C546D3AB19596"><enum>(2)</enum><header>Covered employee</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>covered employee</quote> means any employee (including any former employee) of an applicable tax-exempt organization.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H31A66223C2B345C9A129727F512A880E"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="H1DBACA86E39F45CABC8236C75DFD1FBF"><enum>112021.</enum><header>Modification of excise tax on investment income of certain private colleges and universities</header> <subsection id="H9C2AB3CA5FDE45B985E89A9FACFF3006"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4968">Section 4968</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H02314C475F594F48BD60910CC556C416" display-inline="no-display-inline">
<section id="HBC9C8BACB0BB46CF96F7C7A683A932C4"><enum>4968.</enum><header>Excise tax based on investment income of private colleges and universities</header>
<subsection id="HD86D78112BEA4E8DAB7D747FD344D4C8"><enum>(a)</enum><header>Tax imposed</header><text display-inline="yes-display-inline">There is hereby imposed on each applicable educational institution for the taxable year a tax equal to the applicable percentage of the net investment income of such institution for the taxable year.</text></subsection> <subsection id="H161F4699E90D4C6992CB1F90559C6781"><enum>(b)</enum><header>Applicable percentage</header><text>For purposes of this section, the term <quote>applicable percentage</quote> means—</text>
<paragraph id="HA94D200140554E58AA174B07BF8CA771"><enum>(1)</enum><text>1.4 percent in the case of an institution with a student adjusted endowment in excess of $500,000, and not in excess of $750,000,</text></paragraph> <paragraph id="HC8EDC5F359894041810CC0DF75C361E4"><enum>(2)</enum><text>7 percent in the case of an institution with a student adjusted endowment in excess of $750,000, and not in excess of $1,250,000, </text></paragraph>
<paragraph id="H3EC69CAE03AE4E56BB09AF0622D4D2A5" display-inline="no-display-inline"><enum>(3)</enum><text>14 percent in the case of an institution with a student adjusted endowment in excess of $1,250,000, and not in excess of $2,000,000, and</text></paragraph> <paragraph id="H8B01868BB14343D082BFFFC3485BFB0B"><enum>(4)</enum><text display-inline="yes-display-inline">21 percent in the case of an institution with a student adjusted endowment in excess of $2,000,000.</text></paragraph></subsection>
<subsection id="H4E4EC9476F194F5BA40990D7DD04E76E"><enum>(c)</enum><header>Applicable educational institution</header><text display-inline="yes-display-inline">For purposes of this subchapter—</text> <paragraph id="HA88AB2592A9C4F1A95F0C2D8B2388DF4"><enum>(1)</enum><header>In general</header><text>The term <quote>applicable educational institution</quote> means an eligible educational institution (as defined in section 25A(f)(2))—</text>
<subparagraph id="H7E4849CD37A641448D81665FD716D0DD"><enum>(A)</enum><text>which had at least 500 tuition-paying students during the preceding taxable year, </text></subparagraph> <subparagraph id="H0BEC5579E0404DCD9652E257D520174F"><enum>(B)</enum><text>more than 50 percent of the tuition-paying students of which are located in the United States, </text></subparagraph>
<subparagraph id="H18569EF15C864E0CABB390DBAA8E3F4D"><enum>(C)</enum><text>which is not—</text> <clause id="HF32A0AE69B36449EA9DD3FA669CE9A8D"><enum>(i)</enum><text>described in the first sentence of section 511(a)(2)(B) (relating to State colleges and universities), or</text></clause>
<clause id="HD5822C7103954F18B40E12DB876D3FC9"><enum>(ii)</enum><text display-inline="yes-display-inline">a qualified religious institution, and</text></clause></subparagraph> <subparagraph id="H9E046C65E6A94E6B823ADD62B3E02EDE"><enum>(D)</enum><text>the student adjusted endowment of which is at least $500,000.</text></subparagraph></paragraph>
<paragraph id="H1C69A7DFD8F94F05BC765370EF274B0F"><enum>(2)</enum><header>Qualified religious institution</header><text>For purposes of this subsection, the term <quote>qualified religious institution</quote> means any institution—</text> <subparagraph id="H5E22A66FDD1F4AABB4DF6AB0991BD83F"><enum>(A)</enum><text>established after July 4, 1776,</text></subparagraph>
<subparagraph id="HC9F5A12E70B24C2F99CF98BC948BCD7B"><enum>(B)</enum><text>that was established by or in association with and has continuously maintained an affiliation with an organization described in section 170(b)(1)(A)(i), and</text></subparagraph> <subparagraph id="H6D2285884713464CBDC7F75B48B40867"><enum>(C)</enum><text display-inline="yes-display-inline">which maintains a published institutional mission that is approved by the governing body of such institution and that includes, refers to, or is predicated upon religious tenets, beliefs, or teachings.</text></subparagraph></paragraph></subsection>
<subsection id="HEB397AD30CB44699BA21E4891C610704"><enum>(d)</enum><header>Student adjusted endowment</header><text>For purposes of this section—</text> <paragraph id="HF7EDBFA014E94149AE26E505526EDF6F"><enum>(1)</enum><header>In general</header><text>The term <quote>student adjusted endowment</quote> means, with respect to any institution for any taxable year—</text>
<subparagraph id="H0F434B903931496C95850F8B1F90D07B"><enum>(A)</enum><text display-inline="yes-display-inline">the aggregate fair market value of the assets of such institution (determined as of the end of the preceding taxable year), other than those assets which are used directly in carrying out the institution’s exempt purpose, divided by</text></subparagraph> <subparagraph id="H8A2594AEEC98446BB4E4EC331BABC254"><enum>(B)</enum><text>the number of eligible students of such institution.</text></subparagraph></paragraph>
<paragraph id="HFAA1486073724582A2600FE31443A690" display-inline="no-display-inline"><enum>(2)</enum><header>Eligible student</header><text>For purposes of this subsection, the term <quote>eligible student</quote> means a student of the institution that meets the student eligibility requirements under section 484(a)(5) of the Higher Education Act of 1965.</text></paragraph></subsection> <subsection id="H35415362C6544155B74AF86FFCA1737B"><enum>(e)</enum><header>Determination of number of students</header><text display-inline="yes-display-inline">For purposes of subsections (c)(1) and (d), the number of students of an institution (including for purposes of determining the number of students at a particular location) shall be based on the daily average number of full-time students attending such institution (with part-time students taken into account on a full-time student equivalent basis).</text></subsection>
<subsection id="H7AEE74E46CE1426095EEDA4D30A209BB"><enum>(f)</enum><header>Net investment income</header><text>For purposes of this section—</text> <paragraph id="HB6D2EFFBD988444CB22141C76155D55B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Net investment income shall be determined under rules similar to the rules of section 4940(c).</text></paragraph>
<paragraph id="H2643F7D210804F2082F0A6CC8F98BB35"><enum>(2)</enum><header>Override of certain regulatory exceptions</header>
<subparagraph id="H830F9FD3F97A4836A403ED84BAA2803F"><enum>(A)</enum><header>Student loan interest</header><text display-inline="yes-display-inline">Net investment income shall be determined by taking into account any interest income from a student loan made by the applicable educational institution (or any related organization) as gross investment income.</text></subparagraph> <subparagraph id="H8FB9283383AB4CBEBC13B3E26A22FF1A"><enum>(B)</enum><header>Federally-subsidized royalty income</header> <clause id="H2B57D64D4480472A93BE08362BEF9A8F"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Net investment income shall be determined by taking into account any Federally-subsidized royalty income as gross investment income.</text></clause>
<clause id="H642C66AD1EAF404C98D9AD35DFF8BFE3"><enum>(ii)</enum><header>Federally-subsidized royalty income</header><text>For purposes of this subparagraph—</text> <subclause id="HA73176E9C4F242088E2F85846AF5D0DF"><enum>(I)</enum><header>In general</header><text>The term <quote>Federally-subsidized royalty income</quote> means any otherwise-regulatory-exempt royalty income if any Federal funds were used in the research, development, or creation of the patent, copyright, or other intellectual or intangible property from which such royalty income is derived.</text></subclause>
<subclause id="H4DE886D5367F4F78832D06E492BBC17B"><enum>(II)</enum><header>Otherwise-regulatory-exempt royalty income</header><text>For purposes of this subparagraph, the term <quote>otherwise-regulatory-exempt royalty income</quote> means royalty income which (but for this subparagraph) would not be taken into account as gross investment income by reason of being derived from patents, copyrights, or other intellectual or intangible property which resulted from the work of students or faculty members in their capacities as such with the applicable educational institution.</text></subclause> <subclause id="H0C8121E9995943E28BEE6834EE22D605"><enum>(III)</enum><header>Federal funds</header><text>The term <quote>Federal funds</quote> includes any grant made by, and any payment made under any contract with, any Federal agency to the applicable educational institution, any related organization, or any student or faculty member referred to in subclause (II).</text></subclause></clause></subparagraph></paragraph></subsection>
<subsection id="H94438ECBC0E349B891452CF9CAA40375"><enum>(g)</enum><header>Assets and net investment income of related organizations</header>
<paragraph id="H9B7DACEDD561476E9E6F67B526F41458"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of subsections (d) and (f), assets and net investment income of any related organization with respect to an educational institution shall be treated as assets and net investment income, respectively, of the educational institution, except that— </text> <subparagraph id="H1B448DEC8CD3403CB1509920CAAD26D7"><enum>(A)</enum><text>no such amount shall be taken into account with respect to more than 1 educational institution, and </text></subparagraph>
<subparagraph id="HDE6884E28B9D4CD694EF7C44B90BFC11"><enum>(B)</enum><text>unless such organization is controlled by such institution or is described in section 509(a)(3) with respect to such institution for the taxable year, assets and net investment income which are not intended or available for the use or benefit of the educational institution shall not be taken into account.</text></subparagraph></paragraph> <paragraph id="H95135D7DF42647DCA1A01528D015230C"><enum>(2)</enum><header>Related organization</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>related organization</quote> means, with respect to an educational institution, any organization which— </text>
<subparagraph id="HE172FED1823A4EE9BF5D7EEB152AAD4F"><enum>(A)</enum><text>controls, or is controlled by, such institution, </text></subparagraph> <subparagraph id="HDE9BEA192D8F4BE6970AD2E248E4A1CA"><enum>(B)</enum><text>is controlled by 1 or more persons which also control such institution, or </text></subparagraph>
<subparagraph id="HE25B45B5AAA44C5488A527F74F947DBB"><enum>(C)</enum><text>is a supported organization (as defined in section 509(f)(3)), or an organization described in section 509(a)(3), during the taxable year with respect to such institution.</text></subparagraph></paragraph></subsection> <subsection id="H4C1FEC648BBD446190C13B53EFFF5CB2"><enum>(h)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such regulations or other guidance as may be necessary to prevent avoidance of the tax under this section, including regulations or other guidance to prevent avoidance of such tax through the restructuring of endowment funds or other arrangements designed to reduce or eliminate the value of net investment income or assets subject to the tax imposed by this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H4273527F424C4E519236B4A8949AB184"><enum>(b)</enum><header>Requirement to report certain information with respect to application of excise tax based on investment income of private colleges and universities</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6033">Section 6033</external-xref> is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection:</text> <quoted-block id="HC8CED02A45634FC5B895633CF67CF960" style="OLC"> <subsection id="HA2DA47E587AC451A99405D58C3BB3E58"><enum>(o)</enum><header>Requirement to report certain information with respect to excise tax based on investment income of private colleges and universities</header><text>Each applicable educational institution described in section 4968(c) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)—</text>
<paragraph id="HC1C689D84E594956A11BD2BA0FA50DAB"><enum>(1)</enum><text>the number of eligible students taken into account under section 4968(c)(1)(D), and</text></paragraph> <paragraph id="H762907912910431192E2D91705797D53"><enum>(2)</enum><text>the number of students of such institution (determined after application of section 4968(e)).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H61A14913EF1846F4B47D6EFAAE12049F"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="HA0912CE6FFA1499CA2541605013CB71E" section-type="subsequent-section"><enum>112022.</enum><header>Increase in rate of tax on net investment income of certain private foundations</header> <subsection id="H75BCDD592E024F499F2B5CE401C7C0CD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4940">Section 4940(a)</external-xref> is amended by striking <quote>1.39 percent</quote> and inserting <quote>the applicable percentage</quote>.</text></subsection>
<subsection id="H5411D18D30EE457E95FC72D9D7B4E529"><enum>(b)</enum><header>Applicable percentage</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4940">Section 4940(a)</external-xref> is amended—</text> <paragraph id="HC7E6EF847A9E41A3B33F5999592652DB"><enum>(1)</enum><text>by striking <quote>There is hereby</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H3B9718444031403DB7E41A081767C2EC" display-inline="no-display-inline">
<paragraph id="HA551EA8CBB7948B89DB08C45B561D9B1"><enum>(1)</enum><header>Imposition of tax</header><text display-inline="yes-display-inline">There is hereby</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph> <paragraph id="H6A787DBF0E2546C3BC8EB63F20368527"><enum>(2)</enum><text>by adding at the end the following new paragraphs:</text>
<quoted-block style="OLC" id="H33939002EC4F4359BC5EEF25750013FA" display-inline="no-display-inline">
<paragraph id="HCFB3D39B528A49E0B0B661BE28D3E1F3"><enum>(2)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>applicable percentage</quote> means, with respect to any taxable year—</text> <subparagraph id="HC160278C5BE048DEAB2DC19C1CF01E46"><enum>(A)</enum><text>in the case of a private foundation with assets of less than $50,000,000, 1.39 percent,</text></subparagraph>
<subparagraph id="H36495F6031AE434CA7437798771E7830"><enum>(B)</enum><text>in the case of a private foundation with assets of at least $50,000,000, and less than $250,000,000, 2.78 percent,</text></subparagraph> <subparagraph id="H7028B166A0AE42AF945AFFCCEB9335BB"><enum>(C)</enum><text>in the case of a private foundation with assets of at least $250,000,000, and less than $5,000,000,000, 5 percent, and</text></subparagraph>
<subparagraph id="H54322749454E43FBBDEEBC3DD4957D30"><enum>(D)</enum><text>in the case of a private foundation with assets of at least $5,000,000,000, 10 percent.</text></subparagraph></paragraph> <paragraph id="H05F3B2EA896D4955A79E16B6496408FB"><enum>(3)</enum><header>Assets</header><text>For purposes of this subsection, the assets of any private foundation shall be determined with respect to any taxable year as being the aggregate fair market value of all assets of such private foundation, as determined as of the close of such taxable year. The preceding sentence shall be applied without reduction for any liabilities.</text></paragraph>
<paragraph id="H662190E4588E41A1BBD920FD3D7AA315"><enum>(4)</enum><header>Aggregation</header>
<subparagraph id="HA8F1388D3D444823A6F44275E45D5E2F"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subsection and subsection (c), assets and net investment income of any related organization with respect to a private foundation shall be treated as assets and net investment income, respectively, of the private foundation, except that— </text> <clause id="H3E8232775FBB4A3AAE0C3D86769CFFB9"><enum>(i)</enum><text>no such amount shall be taken into account with respect to more than 1 private foundation, and </text></clause>
<clause id="HE267477A6A6E41A88BB40BCDAB6D133D"><enum>(ii)</enum><text>unless such organization is controlled by such private foundation, assets and net investment income which are not intended or available for the use or benefit of the private foundation shall not be taken into account.</text></clause></subparagraph> <subparagraph id="HFD43A2BC48104EEAAABD2B557A1D1E47"><enum>(B)</enum><header>Related organization</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>related organization</quote> means, with respect to a private foundation, any organization which— </text>
<clause id="H8C34892617104672AFF0D653B5E50842"><enum>(i)</enum><text>controls, or is controlled by, such private foundation, or</text></clause> <clause id="H10B16B2BD31346088D0F4692E4BD7361"><enum>(ii)</enum><text>is controlled by 1 or more persons which also control such private foundation.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HAD0D6DA381EC4B9B9E02276F31CBD51A"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section> <section id="H397BAAF762E94B73AAA53259FB82FDB1"><enum>112023.</enum><header>Certain purchases of employee-owned stock disregarded for purposes of foundation tax on excess business holdings</header> <subsection id="H2CEAE8D09D034D5F8F825E36C40CCB16"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4943">Section 4943(c)(4)(A)</external-xref> is amended by adding at the end the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="H20102576C67D4F4096301CAC31BE9B79" style="OLC">
<clause id="H50440ED9B5194E2D8E3E1A1D438D05D3" indent="up1"><enum>(v)</enum><text display-inline="yes-display-inline">For purposes of clause (i), subparagraph (D), and paragraph (2), any voting stock which—</text> <subclause id="H9366892DCADE4C91981556993632173C"><enum>(I)</enum><text>is not readily tradable on an established securities market,</text></subclause>
<subclause id="H9B69824667CE427780EB78AF8A7DE2D3"><enum>(II)</enum><text>is purchased by the business enterprise on or after January 1, 2020, from an employee stock ownership plan (as defined in section 4975(e)(7)) in which employees of such business enterprise participate, in connection with a distribution from such plan, and</text></subclause> <subclause id="H8CF5C9B3E51A4EF3A17AF44B731D30C2"><enum>(III)</enum><text display-inline="yes-display-inline">is held by the business enterprise as treasury stock, cancelled, or retired,</text></subclause><continuation-text continuation-text-level="clause" indent="subparagraph">shall be treated as outstanding voting stock, but only to the extent so treating such stock would not result in permitted holdings exceeding 49 percent (determined without regard to this clause). The preceding sentence shall not apply with respect to the purchase of stock from a plan during the 10-year period beginning on the date the plan is established.</continuation-text></clause>
<clause id="HD68BE17417B44091BB72D289926D1C98" indent="up1"><enum>(vi)</enum><text>Section 4943(c)(4)(A)(ii) shall not apply with respect to any decrease in the percentage of holdings in a business enterprise by reason of the application of clause (v).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4BFB4BD1362949EDBB6F5C9ABAD7C0CA"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act and to purchases by a business enterprise of voting stock in taxable years beginning after December 31, 2019.</text></subsection></section>
<section id="H2E11238700BE4DD88751B509B660F552" commented="no" section-type="subsequent-section"><enum>112024.</enum><header>Unrelated business taxable income increased by amount of certain fringe benefit expenses for which deduction is disallowed</header>
<subsection id="H20C78EE8B8304F48AE724AF83978DBF3" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/512">Section 512(a)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="HF945ACAA9A994972B083CF090D258480" display-inline="no-display-inline"> <paragraph id="H9C7BBBCAFCBD48C6B8C694D6AFBB80E0" commented="no"><enum>(7)</enum><header>Increase in unrelated business taxable income by disallowed fringe</header> <subparagraph id="HBFDA1397FDDE4A74AC7BC9C117299329"><enum>(A)</enum><header>In general</header><text>Unrelated business taxable income of an organization shall be increased by any amount—</text>
<clause id="H359545DF48764BDA98EE31D695512802"><enum>(i)</enum><text>which is paid or incurred by such organization for any qualified transportation fringe (as defined in section 132(f)) or any parking facility used in connection with qualified parking (as defined in section 132(f)(5)(C)),</text></clause> <clause id="HE5B78F0851B94AD49C777F99566636A4"><enum>(ii)</enum><text>which is not directly connected with an unrelated trade or business which is regularly carried on by the organization, and</text></clause>
<clause id="H81E421149ADB41D0A41F81E0C2E2EFAE"><enum>(iii)</enum><text>for which a deduction is not allowable under this chapter by reason of section 274.</text></clause></subparagraph> <subparagraph id="HB675507A606742C28A018C0B410E9563"><enum>(B)</enum><header>Exception for church organizations</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to—</text>
<clause id="HC85F7A050A584AFEB2015600CF91DCFA"><enum>(i)</enum><text>any organization to which section 6033(a)(1) does not apply by reason of clause (i) or (iii) of section 6033(a)(3)(A), and</text></clause> <clause id="HAC1A0AE48FD344119F9191E86944340C"><enum>(ii)</enum><text>any church-affiliated organization described in section 501(c) which is not required to file an annual return under section 6033(a)(1) by reason of section 6033(a)(3)(B).</text></clause></subparagraph>
<subparagraph id="HE31007751E1047CABD3D1633281732F9"><enum>(C)</enum><header>Treatment as income from separate trade or business</header><text>For purposes of paragraph (6), any increase under subparagraph (A) shall be treated as unrelated business taxable income with respect to an unrelated trade or business separate from any other unrelated trade or business of the organization.</text></subparagraph> <subparagraph id="H51DF2E36B20941DFA0EFD8318D0E9EAC"><enum>(D)</enum><header>Regulations</header><text> The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this paragraph, including regulations or other guidance providing for the appropriate allocation of costs with respect to facilities used for parking.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H0864E99D9DB74D039CFC787AD352498D" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to amounts paid or incurred after December 31, 2025.</text></subsection></section> <section id="H46A5BE8D83E148AE8D5FDAFFEBBAB9F4" display-inline="no-display-inline" section-type="subsequent-section"><enum>112025.</enum><header>Exclusion of research income limited to publicly available research</header> <subsection id="H4D157907D37D49F48A0FD88CF72D0986"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/512">Section 512(b)(9)</external-xref> is amended by striking <quote>from research</quote> and inserting <quote>from such research</quote>.</text></subsection>
<subsection id="H9AE60F4163CC4A60BAF09555A2ED21CC"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to amounts received or accrued after December 31, 2025.</text></subsection></section> <section id="H78F4418890C34F8D96F44A27BAEFF8FF"><enum>112026.</enum><header>Limitation on excess business losses of noncorporate taxpayers</header> <subsection id="HE76F85DD56EC4D74B705667DDA16EF4E"><enum>(a)</enum><header>Rule made permanent</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/461">Section 461(l)(1)</external-xref> is amended by striking <quote>and before January 1, 2029,</quote> each place it appears.</text></subsection>
<subsection id="HBF81E9A1271A468BA7800B7777AD9CD7" display-inline="no-display-inline"><enum>(b)</enum><header>Excess business loss determined on a cumulative basis with respect to periods after 2024</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/461">Section 461(l)(2)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="HA4D702F94BBA41F39742BA2DC87C08DD" display-inline="no-display-inline"> <paragraph id="H2EA833D7E4654585AC1013B60AE5EC9E" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Disallowed loss carryover</header><text display-inline="yes-display-inline">Any loss disallowed under paragraph (1) for any taxable year shall be treated for purposes of this title as a loss attributable to a trade or business of the taxpayer (other than a trade or business described in the last sentence of paragraph (3)(A)) arising in the subsequent taxable year. To the extent provided by the Secretary, for purposes of applying section 1341 and subtitle F, a loss treated as arising under the preceding sentence shall be treated (to the extent not inconsistent with the purposes of this subsection) in a manner similar to the manner in which net operating losses are treated for purposes of such provisions.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H41541E6D93604BA7811614B45823C5B6"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to losses arising (or treated as arising under <external-xref legal-doc="usc" parsable-cite="usc/26/461">section 461(l)(2)</external-xref> of the Internal Revenue Code of 1986, as amended by this section) in taxable years beginning after December 31, 2024.</text></subsection></section> <section id="H96818D59D2744E7EBE7CBA1D7769A5E3"><enum>112027.</enum><header>1-percent floor on deduction of charitable contributions made by corporations</header> <subsection id="H722B45C2CFE941F19E2286C244B3D2BC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/170">Section 170(b)(2)(A)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H80FFC9DF3ED24BEE80411B4D27534A48" display-inline="no-display-inline">
<subparagraph id="H491A821C1B8640DBA0D2C5AAA0EAB490"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Any charitable contribution (other than any contribution to which subparagraph (B) or subparagraph (C) applies or any contribution for which a deduction is not allowable under this section without regard to this paragraph) shall be allowed as a deduction under this subsection (a) only to the extent that the aggregate of such contributions—</text> <clause id="H11187B74371A4DB08F8546A8C138CC55"><enum>(i)</enum><text>exceeds 1 percent of the taxpayer’s taxable income, and</text></clause>
<clause id="H6E0BA84578244728882CDD4059C1C7C7"><enum>(ii)</enum><text>does not exceed 10 percent of the taxpayer’s taxable income.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE948725BCDDE4E9092D657D588AEF8A5"><enum>(b)</enum><header>Application of carryforward</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/170">Section 170(d)(2)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="HB50A555979E3456AB4706E4BE213B448" display-inline="no-display-inline">
<paragraph id="H4BF1DD704D6F4F6E9115E509553701A7"><enum>(2)</enum><header>Corporations</header>
<subparagraph id="H7B4FCCD65DA84889A2101A989A29291E"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Any charitable contribution taken into account under subsection (b)(2)(A) for any taxable year which is not allowed as a deduction by reason of clause (ii) thereof shall be taken into account as a charitable contribution for the succeeding taxable year, except that, for purposes of determining under this subparagraph whether such contribution is allowed in such succeeding taxable year, contributions in such succeeding taxable year (determined without regard to this paragraph) shall be taken into account under subsection (b)(2)(A) before any contribution taken into account by reason of this paragraph.</text></subparagraph> <subparagraph id="H6EE2AA2810674077A45C771CD9921367"><enum>(B)</enum><header>5-year carryforward</header><text>No charitable contribution may be carried forward under subparagraph (A) to any taxable year following the fifth taxable year after the taxable year in which the charitable contribution was first taken into account. For purposes of the preceding sentence, contributions shall be treated as allowed on a first-in first-out basis.</text></subparagraph>
<subparagraph id="H8C8E76FE0BDE4CE69F5B3360450BEDB8"><enum>(C)</enum><header>Contributions disallowed by 1-percent floor carried forward only from years in which 10 percent limitation is exceeded</header><text display-inline="yes-display-inline">In the case of any taxable year from which a charitable contribution is carried forward under subparagraph (A) (determined without regard this subparagraph), subparagraph (A) shall be applied by substituting <quote>clause (i) or (ii)</quote> for <quote>clause (ii)</quote>.</text></subparagraph> <subparagraph id="H6E86948826B14E67A093EFA3606E4580"><enum>(D)</enum><header>Special rule for net operating loss carryovers</header><text display-inline="yes-display-inline">The amount of charitable contributions carried forward under subparagraph (A) shall be reduced to the extent that such carryfoward would (but for this subparagraph) reduce taxable income (as computed for purposes of the second sentence of section 172(b)(2)) and increase a net operating loss carryover under section 172 to a succeeding taxable year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H889C9F55BA204B808EC357AB846EC433"><enum>(c)</enum><header>Conforming amendments</header><text>Subparagraph (B)(ii) and (C)(ii) of section 170(b)(2) are each amended by inserting <quote>other than subparagraph (C) thereof</quote> after <quote>subsection (d)(2)</quote>. </text></subsection> <subsection id="HE0592CDE7C984769A613A346576F55DF"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section>
<section id="H6861428BF46A4259AB019E15556913DC"><enum>112028.</enum><header>Enforcement of remedies against unfair foreign taxes</header>
<subsection id="HD7158B68023F4D3CB6E68919F690CF90"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part II of subchapter N of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new section:</text> <quoted-block style="OLC" id="H058E0A55E4204843BF6F44270DD184DE" display-inline="no-display-inline"> <section id="H5C7D2020E8BA4FA394B9AB785D55570E"><enum>899.</enum><header>Enforcement of remedies against unfair foreign taxes</header> <subsection id="H3F062A705F5C4CCE808B1F2B850F8A30"><enum>(a)</enum><header>Increased rates of tax on foreign persons of discriminatory foreign countries</header> <paragraph id="H41552164B33840E3B17C3844C2687536"><enum>(1)</enum><header>Taxes other than withholding taxes</header> <subparagraph id="H6440EB56DE20449F83BCD4D35E7F419F"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any applicable person, each specified rate of tax (or any rate of tax applicable in lieu of such statutory rate) shall be increased by the applicable number of percentage points.</text></subparagraph>
<subparagraph id="H2599EBF5501C4CA69592B639B89C18BC"><enum>(B)</enum><header>Specified rate of tax</header><text>For purposes of this paragraph, the term <quote>specified rate of tax</quote> means—</text> <clause id="HC6DE5AAC95B444E5A9EA5ECC7C66D24C"><enum>(i)</enum><text>the rates of tax specified in paragraphs (1) and (2) of section 871(a),</text></clause>
<clause id="H595F342FF75641E4924FCDC910337826"><enum>(ii)</enum><text>in the case of any applicable person to which section 871(b) applies, each rate of tax in effect under section 1,</text></clause> <clause id="H36D0B1C256DD49B3838DB697E1F0456F"><enum>(iii)</enum><text>the rate of tax specified in section 881(a), </text></clause>
<clause id="H755AAEF48D0E470793BFFA26848595E6"><enum>(iv)</enum><text>in the case of any applicable person to which section 882(a) applies, the rate of tax specified in section 11(b),</text></clause> <clause id="H4F0D77AFD8AE4A58847293776BE35883"><enum>(v)</enum><text>the rate of tax specified in section 884(a), and</text></clause>
<clause id="H3CABCCEA6E5446E79592E6746A270E8F"><enum>(vi)</enum><text>the rate of tax specified in section 4948(a).</text></clause></subparagraph> <subparagraph id="HC254D4FD656E43398998302FF8B93496"><enum>(C)</enum><header>Application of increased rates to effectively connected income of nonresident alien individuals limited to gains on United States real property interests</header><text>In the case of any individual to whom subparagraph (A) applies, the tax imposed under section 1 on such individual (after application of subparagraph (A)) shall be reduced (but not below zero) by the excess of—</text>
<clause id="HD144791268CC45E8A579A386563004C6"><enum>(i)</enum><text>the tax which would be imposed under such section (after application of subparagraph (A)) if FIRPTA items were not taken into account, over</text></clause> <clause id="H06579AB48D5742DAB0F57D2A76B56F56"><enum>(ii)</enum><text>the tax which would be imposed under such section if FIRPTA items were not taken into account, and subparagraph (A) did not apply.</text></clause><continuation-text continuation-text-level="subparagraph">For purposes of this clause, the term <quote>FIRPTA items</quote> means gains and losses taken into account under section 871(b)(1) by reason of section 897(a)(1)(A).</continuation-text></subparagraph>
<subparagraph id="H02DCA1EEF14C45B0961FDDD711705239"><enum>(D)</enum><header>Application of increased rates to certain foreign governments</header><text>In the case of any applicable person described in subsection (b)(1)(A), section 892(a) shall not apply.</text></subparagraph></paragraph> <paragraph id="H5915AA849A7E46629D3BA3E1C2F0C092" display-inline="no-display-inline"><enum>(2)</enum><header>Modification of base erosion and anti-abuse tax</header><text display-inline="yes-display-inline">In the case of any corporation described in subsection (b)(1)(E) (applied by substituting <quote>corporation</quote> for <quote>foreign corporation</quote>)—</text>
<subparagraph id="H28F416A742AA487BAF222946CDDAB05A"><enum>(A)</enum><text display-inline="yes-display-inline">such corporation shall be treated as described in subparagraphs (B) and (C) of section 59A(e)(1) for purposes of determining whether such corporation is an applicable taxpayer,</text></subparagraph> <subparagraph id="H06B340AA8ABB44CCB9E18E5E0F64FC54"><enum>(B)</enum><text>section 59A(b)(1) shall be applied by—</text>
<clause id="HD22C31E5917144C6B3ED16CA195FC668"><enum>(i)</enum><text>substituting <quote>12.5 percent</quote> for <quote>10.1 percent</quote> in subparagraph (A), and</text></clause> <clause id="H5689FBC85C9247D6BC87340C1DB2C284"><enum>(ii)</enum><text>by treating the amount described in section 59A(b)(1)(B)(ii) as being zero,</text></clause></subparagraph>
<subparagraph id="H97A8F9EDF1434AEC9C12245114AD8F42"><enum>(C)</enum><text>subsections (c)(2)(B), (c)(4)(B)(ii), and (d)(5) of section 59A shall not apply, and</text></subparagraph> <subparagraph id="H1B0D0D0240CC4D16AADF1C9F9F6F3F2E"><enum>(D)</enum><text display-inline="yes-display-inline">if any amount (other than the purchase price of depreciable or amortizable property or inventory) would have been a base erosion payment described in section 59A(d)(1) but for the fact that the taxpayer capitalizes the amount, then solely for purposes of calculating the taxpayer’s base erosion payments (within the meaning of section 59A(d)) and base erosion tax benefits (within the meaning of section 59A(c)(2)), such amount shall be treated as if it had been deducted rather than capitalized.</text></subparagraph></paragraph>
<paragraph id="H231BD68BE9474BA7977DA61CE3D134C9"><enum>(3)</enum><header>Withholding taxes</header>
<subparagraph id="H29CD991AE29B4F99809C90121AD02766"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any payment to an applicable person, each rate of tax specified in section 1441(a) or 1442(a) (or any rate of tax applicable in lieu of such statutory rate) shall be increased by the applicable number of percentage points. The preceding sentence shall not apply to the 14 percent rate of tax specified in section 1441(a).</text></subparagraph> <subparagraph id="H680ECE2728A94296B628B3F3C8524C8E"><enum>(B)</enum><header>Disposition of United States real property interests</header><text display-inline="yes-display-inline">In the case of any disposition of a United States real property interest (as defined in section 897(c)) by an applicable person, the rate of tax specified in section 1445(a) (or any rate of tax applicable in lieu of such statutory rate) shall be increased by the applicable number of percentage points.</text></subparagraph>
<subparagraph id="H63839E776A1F48639411712E652BC2D1"><enum>(C)</enum><header>Other dispositions and distributions related to United States real property interests</header><text display-inline="yes-display-inline">In the case of any disposition or distribution described in any paragraph of section 1445(e), each rate of tax in such paragraph (or any rate of tax applicable in lieu of such statutory rate) shall be increased by the applicable number of percentage points if—</text> <clause id="H3CEB52DC3EC94E81932DFF50818B9FFD"><enum>(i)</enum><text>in the case of section 1445(e)(1), the foreign person referred to in subparagraph (A) or (B) of such section is an applicable person,</text></clause>
<clause id="H54089CB2249F4DA2A8E1CA8E17D2418F"><enum>(ii)</enum><text>in the case of section 1445(e)(2), the foreign corporation referred to in such section is an applicable person,</text></clause> <clause id="H2974216E60FF46AF9A0DC532FCCCD585"><enum>(iii)</enum><text>in the case of section 1445(e)(3), the foreign shareholder referred to in such section is an applicable person,</text></clause>
<clause id="H9C67C2A7B21F4D10ABEAE677BDB5363E"><enum>(iv)</enum><text>in the case of section 1445(e)(4), the foreign person referred to in such section is an applicable person,</text></clause> <clause id="HA24274CCF05849FDA47CFDEA7353AFF8"><enum>(v)</enum><text>in the case of section 1445(e)(5), the Secretary issues regulations or other guidance providing for such increase, and</text></clause>
<clause id="H83A9644A85A447D695F9F95240950CA9"><enum>(vi)</enum><text>in the case of section 1445(e)(6), the nonresident alien individual or foreign corporation referred to in such section is an applicable person.</text></clause></subparagraph></paragraph> <paragraph id="H3E7B8354506F4C438175549F56FAA048"><enum>(4)</enum><header>Applicable number of percentage points</header><text display-inline="yes-display-inline">For purposes of this paragraph—</text>
<subparagraph id="H4B39F614AAD64BAE9C90BF5191517D0A"><enum>(A)</enum><header>In general</header><text>The term <quote>applicable number of percentage points</quote> means, with respect to any discriminatory foreign country—</text> <clause id="H1B4A36BC0B274525ADDFEFD4958CCBA1"><enum>(i)</enum><text> with respect to the 1-year period beginning on the applicable date with respect to such foreign country, 5 percentage points, and</text></clause>
<clause id="H0860509A44A346739486E3E2EF0F59B9"><enum>(ii)</enum><text>with respect to any period after the 1-year period to which clause (i) applies, the sum of —</text> <subclause id="HE1F8BFF9A62C44A497255D41BB34FA85"><enum>(I)</enum><text>5 percentage points, plus</text></subclause>
<subclause id="H511F4AA279074F92ACA0EECA34D572FD"><enum>(II)</enum><text>an additional 5 percentage points for each annual anniversary of such applicable date which has occurred before the beginning of such period.</text></subclause></clause></subparagraph> <subparagraph id="HFD2986BA44634597A0DDF70A12771E2A"><enum>(B)</enum><header>Cap on increase</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (A), the increase in any rate under paragraph (1) or (3) shall not result in such rate exceeding the amount of the statutory rate (determined without regard to any rate applicable in lieu of such statutory rate) increased by 20 percentage points.</text></subparagraph>
<subparagraph id="H216FC2DBEF2C4B00B6461CD27E9A8E7D"><enum>(C)</enum><header>Applicable date</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>applicable date</quote> means, with respect to any discriminatory foreign country, the first day of the first calendar year beginning on or after the latest of—</text> <clause id="H2C09E2013C75421F98CB746266CDF917"><enum>(i)</enum><text>90 days after the date of enactment of this section, </text></clause>
<clause id="HA6522918BE094E51823881935AE25793"><enum>(ii)</enum><text>180 days after the date of enactment of the unfair foreign tax that causes such country to be treated as a discriminatory foreign country, or </text></clause> <clause id="HA6DFA73846624E3EA5981CE8120E7A3D"><enum>(iii)</enum><text>the first date that an unfair foreign tax of such country begins to apply. </text></clause></subparagraph>
<subparagraph id="HBEC427A6127F465FA2645B098FBF97BA"><enum>(D)</enum><header>Application to taxable years</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the applicable number of percentage points is the applicable number of percentage points in effect for the discriminatory foreign country during the taxpayer’s taxable year. If more than one applicable number of percentage points is in effect for the discriminatory foreign country during the taxpayer’s taxable year, the applicable number of percentage points shall be determined by using a weighted average rate based on each applicable number of percentage points in effect during such taxable year and the number of days during which it was in effect. For purposes of the prior sentence, the applicable number of percentage points in effect for the discriminatory foreign country for the period before the applicable date is treated as zero, and, if the taxpayer ceases to be an applicable person during its taxable year, the applicable number of percentage points in effect for the discriminatory foreign country for the period after the taxpayer ceased to be an applicable person is treated as zero.</text></subparagraph> <subparagraph id="HA1FC1AB03E964251B3C7AF5D66020530"><enum>(E)</enum><header>Application to withholding taxes</header><text>For purposes of paragraph (3), the applicable number of percentage points shall be determined with respect to the date of the payment or disposition, as the case may be.</text></subparagraph>
<subparagraph id="H99C498B706ED4CD3AB010BB02B0B9436"><enum>(F)</enum><header>Multiple discriminatory foreign countries</header><text display-inline="yes-display-inline">For purposes of paragraphs (1) and (3), if, on any day, the taxpayer is an applicable person with respect to more than one discriminatory foreign country, the highest applicable number of percentage points in effect shall apply. </text></subparagraph> <subparagraph id="HB637562AB5F942F6AE1FC81436E2F228"><enum>(G)</enum><header>Increase not applicable to nondiscriminatory foreign countries</header><text>In the case of any foreign country which is not a discriminatory foreign country, the applicable number of percentage points is zero.</text></subparagraph></paragraph>
<paragraph id="HB5F53DDBB21949ACAAFD1960D5C798C0"><enum>(5)</enum><header>Years to which applicable</header>
<subparagraph id="HADFB70ADB2B84C1C95B18CA69EF441B7"><enum>(A)</enum><header>Taxable year</header><text>In the case of any person, paragraphs (1) and (2) shall apply to each taxable year beginning—</text> <clause id="H2FA394638FE54F9EB20C2F890D645308"><enum>(i)</enum><text>after the later of—</text>
<subclause id="H4F63435DCF1F459CACBC29CA6B3099E2"><enum>(I)</enum><text display-inline="yes-display-inline">90 days after the date of enactment of this section,</text></subclause> <subclause id="H59D77082C4EF4A0880E4D3E75FD28EFF"><enum>(II)</enum><text>180 days after the date of enactment of the unfair foreign tax that causes such country to be treated as a discriminatory foreign country, or </text></subclause>
<subclause id="HF4D1226AC35D41C6A362C9B810592847"><enum>(III)</enum><text>the first date that an unfair foreign tax of such country begins to apply, and</text></subclause></clause> <clause id="H07DB3EFAAA9744A2866A5E28C36E3E1D"><enum>(ii)</enum><text>before the last date on which the discriminatory foreign country imposes an unfair foreign tax.</text></clause></subparagraph>
<subparagraph id="HCB698968CA6B449DA0718F8074F13E06"><enum>(B)</enum><header>Withholding</header><text>In the case of any person, paragraph (3) shall apply to each calendar year beginning during the period that such person is an applicable person.</text></subparagraph> <subparagraph id="H3A389434E83F4C8DAE6B32E0A8C35126"><enum>(C)</enum><header>Safe harbor for withholding</header><text>Paragraph (3) shall not apply—</text>
<clause id="H78EFA5C18AE148A78DAA3491540103ED"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of any applicable person to which clause (ii) does not apply, if the discriminatory foreign country with respect to which such person is an applicable person is not listed by the Secretary as a discriminatory foreign country, and</text></clause> <clause id="HDDE8AFCE7FD74ECB8C5A6C409E69CF5B"><enum>(ii)</enum><text>in the case of any applicable person described in subparagraph (E) or (F) of subsection (b)(1), if the discriminatory foreign country with respect to which such person is an applicable person (and such country’s applicable date) has been listed in such guidance for less than 90 days.</text></clause></subparagraph>
<subparagraph id="H96C7D23F0B3B4FB890B092DCF7AF9E79"><enum>(D)</enum><header>Temporary safe harbor for withholding agents</header><text display-inline="yes-display-inline">No penalties or interest shall be imposed with respect to failures, before January 1, 2027, to deduct or withhold any amounts by reason of paragraph (3) if the person required to deduct or withhold such amounts demonstrates to the satisfaction of the Secretary that such person made best efforts to comply with paragraph (3) in a timely manner.</text></subparagraph></paragraph></subsection> <subsection id="H087339C8A088410F8D58EE45EEF9356A"><enum>(b)</enum><header>Applicable person</header><text>For purposes of this section—</text>
<paragraph id="HA7C499755AC349E68EE03B16312177D3"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided by the Secretary, the term <quote>applicable person</quote> means—</text> <subparagraph id="H44D71D0A94B04A8F8402E1D74C2DE956"><enum>(A)</enum><text>any government (within the meaning of section 892) of any discriminatory foreign country,</text></subparagraph>
<subparagraph id="H60ABC8FE2C094EC3B9D52A7C00362A6B"><enum>(B)</enum><text>any individual (other than a citizen or resident of the United States) who is tax resident of a discriminatory foreign country,</text></subparagraph> <subparagraph id="H29FE5A4A312D42979AEB3A2BE00D9638"><enum>(C)</enum><text>any foreign corporation (other than a United States-owned foreign corporation, as defined in section 904(h)(6)) which is a tax resident of a discriminatory foreign country, </text></subparagraph>
<subparagraph id="H5F9C0DC7C4444AAEA07605C60BBA426A"><enum>(D)</enum><text>any private foundation (within the meaning of section 4948) created or organized in a discriminatory foreign country,</text></subparagraph> <subparagraph id="HDDDD4C5024904D6D878BB841648DD62B"><enum>(E)</enum><text>any foreign corporation (other than a publicly held corporation) if more than 50 percent of—</text>
<clause id="H83241509A1B74E6C82E4F2AF65AF3596"><enum>(i)</enum><text>the total combined voting power of all classes of stock of such corporation entitled to vote, or</text></clause> <clause id="H399CC416949E4DDC8AD8633290EDB9B0"><enum>(ii)</enum><text>the total value of the stock of such corporation,</text></clause><continuation-text continuation-text-level="subparagraph">is owned (within the meaning of section 958(a)) by persons described in this paragraph,</continuation-text></subparagraph>
<subparagraph id="H0985370375AD4F83ABDEBDCF96AD8A41"><enum>(F)</enum><text>any trust the majority of the beneficial interests of which are held (directly or indirectly) by persons described in this paragraph, and</text></subparagraph> <subparagraph id="H642AADD5C9AE405FABB986C4AA1C9AA3"><enum>(G)</enum><text>foreign partnerships, branches, and any other entity identified with respect to a discriminatory foreign country by the Secretary for purposes of this subsection.</text></subparagraph></paragraph>
<paragraph id="H2005EF8567AF4DE7ACE24193DD820E4E"><enum>(2)</enum><header>Continuation of treatment during certain periods</header><text display-inline="yes-display-inline">For purposes of this section, if a person would cease to be an applicable person for a period of less than one year, such person shall continue to be treated as an applicable person during such period.</text></paragraph></subsection> <subsection id="H2183968D86884FEBAF0FD94DCE2F83FA"><enum>(c)</enum><header>Unfair foreign tax</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph id="H865F385F2EE04975BAE9FDBE1EF7D74A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>unfair foreign tax</quote> means an undertaxed profits rule (UTPR), digital services tax, diverted profits tax, and, to the extent provided by the Secretary, an extraterritorial tax, discriminatory tax, or any other tax enacted with a public or stated purpose indicating the tax will be economically borne, directly or indirectly, disproportionately by United States persons. Such term shall not include any tax which neither applies to—</text> <subparagraph id="H53D47F60E7124FA88CA9ADD525AD2A30"><enum>(A)</enum><text display-inline="yes-display-inline">any United States person (including a trade or business of a United States person), nor</text></subparagraph>
<subparagraph id="H6D5D07E664C44BF1AD736B29BCA5A8E9"><enum>(B)</enum><text display-inline="yes-display-inline">any foreign corporation (including a trade or business of such foreign corporation) if the foreign corporation is a controlled foreign corporation and more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such corporation) is owned (within the meaning of section 958(a)) by United States persons.</text></subparagraph></paragraph> <paragraph id="H53AA304D7C6849BF95C690F01110C993"><enum>(2)</enum><header>Extraterritorial tax</header><text>The term <quote>extraterritorial tax</quote> means any tax imposed by a foreign country on a corporation (including any trade or business of such corporation) which is determined by reference to any income or profits received by any person (including any trade or business of any person) by reason of such person being connected to such corporation through any chain of ownership, determined without regard to the ownership interests of any individual, and other than by reason of such corporation having a direct or indirect ownership interest in such person.</text></paragraph>
<paragraph id="H048B4671E75A4F2884F7181872DC9929"><enum>(3)</enum><header>Discriminatory tax</header><text>The term <quote>discriminatory tax</quote> means any tax imposed by a foreign country if—</text> <subparagraph id="H5F10BC77D776410DB9F474963C4C7364"><enum>(A)</enum><text>such tax applies more than incidentally to items of income that would not be considered to be from sources, or effectively connected to a trade or business, within the foreign country under the rules of part I of this subchapter if such part were applied by treating such foreign country as though it were the United States,</text></subparagraph>
<subparagraph id="HDE517D4D7B31441BA3CC86CD3483E0D9"><enum>(B)</enum><text display-inline="yes-display-inline">such tax is imposed on a base other than net income and is not computed by permitting recovery of costs and expenses,</text></subparagraph> <subparagraph id="H6E7D3B2C4A2849E0B3162E90128E1041"><enum>(C)</enum><text display-inline="yes-display-inline">such tax is exclusively or predominantly applicable, in practice or by its terms, to nonresident individuals and foreign corporations or partnerships (as determined under rules similar to paragraphs (4) and (5) of section 7701(a) by treating the foreign country as though it were the United States) because of the application of revenue thresholds, exemptions or exclusions for taxpayers subject to such foreign country’s corporate income tax, or restrictions of scope that ensure that substantially all residents (other than foreign corporations and partnerships (as so determined)) supplying comparable goods or services are excluded from the application of such tax, or</text></subparagraph>
<subparagraph id="H3D4291C6C79D442EA98979CA5108D335"><enum>(D)</enum><text display-inline="yes-display-inline">such tax is not treated as an income tax under the laws of such foreign country or is otherwise treated by such foreign country as outside the scope of any agreements that are in force between such foreign country and one or more other jurisdictions for the avoidance of double taxation with respect to taxes on income.</text></subparagraph></paragraph> <paragraph id="H4E8C1605FE094E96979E32CEA69BC2A1"><enum>(4)</enum><header>Exceptions</header><text>Except as otherwise provided by the Secretary, the terms <quote>extraterritorial tax</quote> and <quote>discriminatory tax</quote> shall not include any generally applicable tax which constitutes—</text>
<subparagraph id="H89406F04589544B6B18248C8FCD35537"><enum>(A)</enum><text display-inline="yes-display-inline">an income tax generally imposed on the income of citizens or residents of the foreign country, even if the computation of income includes payments that would be foreign source income under part I of this subchapter,</text></subparagraph> <subparagraph id="H59425113324E4E78A6D0ECCE55838499"><enum>(B)</enum><text display-inline="yes-display-inline">an income tax which would be an unfair foreign tax (determined without regard to this subparagraph) solely because it is imposed on the income of nonresidents attributable to a trade or business in such foreign country,</text></subparagraph>
<subparagraph id="H0319B2D5C02F45448EC0DE25D6E941CC"><enum>(C)</enum><text>an income tax which would be an unfair foreign tax (determined without regard to this subparagraph) solely because it is imposed on citizens or residents of such foreign country by reference to the income of a corporate subsidiary of such person, </text></subparagraph> <subparagraph id="H72C63BE441D345149E76CC2FFFF12211"><enum>(D)</enum><text>a withholding tax, or other gross basis tax, on any amount described in section 871(a)(1) or 881(a), other than any withholding tax, or other gross basis tax, imposed with respect to services performed by persons other than individuals,</text></subparagraph>
<subparagraph id="H6B256101C6D54E5A952D8242D8D09F7B"><enum>(E)</enum><text>a value added tax, goods and services tax, sales tax, or other similar tax on consumption, </text></subparagraph> <subparagraph id="H84D8322607CE4DC8BF49DF4AD5D41F66"><enum>(F)</enum><text>a tax imposed with respect to transactions on a per-unit or per-transaction basis rather than on an ad valorem basis,</text></subparagraph>
<subparagraph id="H64EC556CAE4C47B1841F9660C124F8CB"><enum>(G)</enum><text>a tax on real or personal property, an estate tax, a gift tax, other similar tax,</text></subparagraph> <subparagraph id="H4DD5D2D03CB34F59A11FEF9FAAE03486"><enum>(H)</enum><text>a tax which would not be an extraterritorial tax or discriminatory tax (determined without regard to this subparagraph) except by reason of consolidation or loss sharing rules that generally apply only with respect to income of tax residents of the foreign country, or</text></subparagraph>
<subparagraph id="HA85CB6DBCAD645D881E526D6BB51B770" commented="no"><enum>(I)</enum><text>any other tax identified by the Secretary for purposes of this paragraph.</text></subparagraph></paragraph></subsection> <subsection id="H1F669CE1C6C14C968E174B7F65D0AF6E"><enum>(d)</enum><header>Other definitions</header><text>For purposes of this section—</text>
<paragraph id="H17B5E53005AD460A896F8D877D0736A3"><enum>(1)</enum><header>Discriminatory foreign country</header><text>The term <quote>discriminatory foreign country</quote> means any foreign country which has one or more unfair foreign taxes. </text></paragraph> <paragraph id="HA1FE3D2D75504F808F0ACA57600E8355"><enum>(2)</enum><header>Foreign country</header><text>The term <quote>foreign country</quote> means a foreign country (or political subdivision thereof) or a dependent territory or possession of a foreign country. Such term does not include any possession of the United States.</text></paragraph>
<paragraph id="H451501EA2DD14B2B8C69176E8244F687"><enum>(3)</enum><header>Tax</header><text display-inline="yes-display-inline">The term <quote>tax</quote> includes any increase in tax whether effectuated by an increase in the rate or base of a tax, by a denial of deductions or credits, or otherwise.</text></paragraph></subsection> <subsection id="HFF03CA2F2B7644A29BD3DF51A28B6896"><enum>(e)</enum><header>Regulations and other guidance</header><text>The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance which—</text>
<paragraph id="HF10CCB21B8D04FC388263E61B0C54877"><enum>(1)</enum><text>provide for such adjustments to the application of this section as are necessary to prevent the avoidance of the purposes of this section, including the application of this section (including subsections (b)(1)(E) and (c)(2)(A)(ii)) with respect to branches, partnerships, and other entities (whether or not otherwise disregarded for purposes of this chapter),</text></paragraph> <paragraph id="H9B6B64A1BC4941E49454E4F7CEB18B74"><enum>(2)</enum><text display-inline="yes-display-inline">list the discriminatory foreign countries (and each such country’s applicable date) in guidance, and update such guidance on a quarterly basis,</text></paragraph>
<paragraph id="H1276AF0052E7423B959F4E12DBF49840"><enum>(3)</enum><text>provide notice to Congress with respect to changes to the list under paragraph (2),</text></paragraph> <paragraph id="HF7B675116DB74A97A6B1071419EE70CD"><enum>(4)</enum><text>exercise the authority to provide exceptions under subsections (b)(1), (c)(4), and</text></paragraph>
<paragraph id="H0C463686A1A2403D9F5ADBF592156467"><enum>(5)</enum><text display-inline="yes-display-inline">prevent the application of subsection (a)(2)(D) from resulting in double counting of amounts for purposes of section 59A(c)(4)(A)(ii).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HA20CEE3CD78B43D49F2C7538A141B4EC"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart D of part II of subchapter N of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="HB7493693F592443EB617C764A5D901D9" display-inline="no-display-inline">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H058E0A55E4204843BF6F44270DD184DE" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H5C7D2020E8BA4FA394B9AB785D55570E" level="section">Sec. 899. Enforcement of remedies against unfair foreign taxes.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="HFA3CF7AC17874ECCB623F048B2AD42AC" commented="no" display-inline="no-display-inline" section-type="subsequent-section"><enum>112029.</enum><header>Modification of treatment of silencers</header>
<subsection id="H214AAFF858AA45E99828BF80AA1F71EC" commented="no"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/5845">Section 5845(a)</external-xref> is amended by striking <quote>(7) any silencer</quote> and all that follows through <quote>; and (8)</quote> and inserting <quote>and (7)</quote>.</text></subsection> <subsection id="H6FEAA599D34C491790E17B6ED1EE7817" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header>Transfer tax</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/5811">Section 5811(a)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H2C7A16D6D9D94736ABF1B0FED1C0E8B3">
<subsection id="HEF8309A12AA44A9081789B219F944DDA" commented="no"><enum>(a)</enum><header>Rate</header><text display-inline="yes-display-inline">There shall be levied, collected, and paid on firearms transferred a tax at the rate of—</text> <paragraph id="H1A93D9CED59647C5962771CAAA9C03EC" commented="no"><enum>(1)</enum><text>$5 for each firearm transferred in the case of a weapon classified as any other weapon under section 5845(e),</text></paragraph>
<paragraph id="HDA4AD8047CD9424EB19AD02BF5943E87" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">$0 for each firearm transferred in the case of a silencer (as defined in section 921 of title 18, United States Code), and</text></paragraph> <paragraph id="H4802449F5D5D444395DE79204CBE8AAE" commented="no"><enum>(3)</enum><text>$200 for any other firearm transferred.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H95FB55262BB541E3859F5B83E2362A4C" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Making tax</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/5821">Section 5821(a)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H0EA392D0A35B4745A3A8E8C02159E7FA"> <subsection id="HD81065660A6B4A24BA9002EFCB51ADD6" commented="no"><enum>(a)</enum><header>Rate</header><text>There shall be levied, collected, and paid upon the making of a firearm a tax at the rate of—</text>
<paragraph id="H7A65BB4D2D564B8085E93C5CA43FE2A5" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">$0 for each silencer (as defined in section 921 of title 18, United States Code) made, and</text></paragraph> <paragraph id="H93BD561CDF4E42FDB98CAC635A805E50" commented="no"><enum>(2)</enum><text>$200 for any other firearm made.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HCE9E2B4DCAFE472789A4196AA0A99307" commented="no"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to calendar quarters beginning more than 90 days after the date of the enactment of this Act.</text></subsection> </section> <section id="H5D23D3E9446C4D70B1DC65BA74AE447B"><enum>112030.</enum><header>Modifications to de minimis entry privilege for commercial shipments</header> <subsection id="HCB3E371CAAC54DEBAC39A3D3B1D6D948"><enum>(a)</enum><header>Civil penalty</header> <paragraph id="HDCDC68A7850C41D8A6A7ECFA799541A3"><enum>(1)</enum><header>Additional penalty imposed</header><text>Section 321 of the Tariff Act of 1930 (<external-xref legal-doc="usc" parsable-cite="usc/19/1321">19 U.S.C. 1321</external-xref>) is amended by adding at the end the following new subsection:</text>
<quoted-block id="H9A91AFDFDD8A47899E69210790546143">
<subsection id="HBECECDCD93064EDF8E6210227C929C03" commented="no" display-inline="no-display-inline"><enum>(c)</enum><text display-inline="yes-display-inline">Any person who enters, introduces, facilitates, or attempts to introduce an article into the United States using the privilege of this section, the importation of which violates any other provision of United States customs law, shall be assessed, in addition to any other penalty permitted by law, a civil penalty of up to $5,000 for the first violation and up to $10,000 for each subsequent violation.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H3FD8C769C40F47D7B4C0EA5DFA2ED8A0"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall take effect 30 days after the date of the enactment of this Act.</text></paragraph></subsection>
<subsection id="HAA751A33AD9D4B8FB2DFCD2F5146D91D"><enum>(b)</enum><header>Repeal of commercial shipment exception</header>
<paragraph id="H2480C0C251964252B120EEA0BACD4857"><enum>(1)</enum><header>Repeal</header><text>Section 321(a)(2)(B) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/19/1321">19 U.S.C. 1321(a)(2)(B)</external-xref>) is amended by striking <quote>of this Act, or</quote> and all that follows through <quote>subdivision (2); and</quote> and inserting <quote>of this Act; and</quote>.</text></paragraph> <paragraph id="HD26BA14BB74146DFA59DC5D4AF7D80CF"><enum>(2)</enum><header>Conforming repeal</header><text>Subsection (c) of such <external-xref legal-doc="usc" parsable-cite="usc/26/321">section 321</external-xref>, as added by subsection (a) of this section, is repealed.</text></paragraph>
<paragraph id="H3354F0EDA1294E3BBD53509838438E22"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall take effect on July 1, 2027.</text></paragraph></subsection></section> <section id="H80A4EDC5E744459685E6C872B6A24600" section-type="subsequent-section"><enum>112031.</enum><header>Limitation on drawback of taxes paid with respect to substituted merchandise</header><text display-inline="no-display-inline">Effective for claims filed on or after July 1, 2026, for purposes of drawback of internal revenue tax imposed under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/52">chapter 52</external-xref> of the Internal Revenue Code of 1986, the amount of drawback granted under such Code, or the Tariff Act of 1930, on the export or destruction of substituted merchandise may not exceed the amount of taxes paid (and not returned by refund, credit, or drawback) on the substituted merchandise. </text></section>
<section id="H867ECA1DAD8A4AE9BA3C38AF2F37EA88"><enum>112032.</enum><header>Treatment of payments from partnerships to partners for property or services</header>
<subsection id="HDD84BDB327474407AF7C4AFFF8072972"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/707">Section 707(a)(2)</external-xref> is amended by striking <quote>Under regulations prescribed</quote> and inserting <quote>Except as provided</quote>.</text></subsection> <subsection id="HD8AD994DA3BE4BB799C0161EBCF8884D"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to services performed, and property transferred, after the date of the enactment of this Act.</text></subsection>
<subsection id="H51170D211F414781A1DE2979D4C1F9FC"><enum>(c)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this section, or the amendments made by this section, shall be construed to create any inference with respect to the proper treatment under <external-xref legal-doc="usc" parsable-cite="usc/26/707">section 707(a)</external-xref> of the Internal Revenue Code of 1986 with respect to payments from a partnership to a partner for services performed, or property transferred, on or before the date of the enactment of this Act.</text></subsection></section></part> <part id="H11D758FC644F4673B2647E9576EE314B"><enum>2</enum><header>Removing Taxpayer Benefits for Illegal Immigrants</header> <section id="HEE0DCE3AD4714FBD9A0DFAB4AAC1B716" commented="no" display-inline="no-display-inline"><enum>112101.</enum><header>Permitting premium tax credit only for certain individuals</header> <subsection id="H35CED56ED1BF464882CD152960E4DAC7" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(e)(1)</external-xref> is amended by inserting <quote>or, in the case of aliens who are lawfully present, are not eligible aliens</quote> after <quote>individuals who are not lawfully present</quote>. </text></subsection>
<subsection id="HAEA988674CB245BC88B47CF5E97FAEDF" commented="no"><enum>(b)</enum><header>Eligible aliens</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(e)(2)</external-xref> is amended—</text> <paragraph id="HFF472A4F6477441086E58632C3294FFD" commented="no"><enum>(1)</enum><text>by striking <quote>For purposes of this section, an individual</quote> and inserting the following:</text>
<quoted-block style="OLC" display-inline="yes-display-inline" id="HCDA1496230514839A413D6D3BE958993"><text display-inline="yes-display-inline">For purposes of this section—</text> <subparagraph id="HA8404E6576DD471CAD6703BC129182F2" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">An individual</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph>
<paragraph id="H58138BC62DD14C37AF66E90853D6DFED" commented="no"><enum>(2)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H9E0CEB671C0A4D9EA84EE20A8A1DC578"> <subparagraph id="HDF9FC9D2AD144283B57E2D4011CC890D" commented="no"><enum>(B)</enum><header>Eligible aliens</header><text display-inline="yes-display-inline">An individual who is an alien and lawfully present shall be treated as an eligible alien if and only if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed—</text>
<clause id="H825A3138342B4CA8A637D1B00B966FC6"><enum>(i)</enum><text>an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1101">8 U.S.C. 1101 et seq.</external-xref>),</text></clause> <clause id="H9B54583F48C74B409CAB4E2A5E21A6F4"><enum>(ii)</enum><text display-inline="yes-display-inline">an alien who—</text>
<subclause id="H055D58B4AE1A4AA59411229C9A81E0A2"><enum>(I)</enum><text>is a citizen or national of the Republic of Cuba,</text></subclause> <subclause id="H5CAE61E543A54D7F89742FFF35AC8FF5"><enum>(II)</enum><text display-inline="yes-display-inline">is the beneficiary of an approved petition under section 203(a) of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1153">8 U.S.C. 1153(a)</external-xref>),</text></subclause>
<subclause id="HC924A43CBBF1444EB2066C1CF01B8E4A"><enum>(III)</enum><text>meets all eligibility requirements for an immigrant visa but for whom such a visa is not immediately available,</text></subclause> <subclause id="HCBD65D6D83CA42E7B4734D189711FC9A"><enum>(IV)</enum><text>is not otherwise inadmissible under section 212(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1182">8 U.S.C. 1182(a)</external-xref>), and</text></subclause>
<subclause id="H055112A8FEB14EB787147A2A6D3E3581"><enum>(V)</enum><text>is physically present in the United States pursuant to a grant of parole in furtherance of the commitment of the United States to the minimum level of annual legal migration of Cuban nationals to the United States specified in the U.S.-Cuba Joint Communiqué on Migration, done at New York September 9, 1994, and reaffirmed in the Cuba-United States: Joint Statement on Normalization of Migration, Building on the Agreement of September 9, 1994, done at New York May 2, 1995, or</text></subclause></clause> <clause id="H6DC8F563547E413ABB4A738ABF9F328F" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/8/1612">8 U.S.C. 1612(b)(2)(G)</external-xref>).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HCDAD675685EA4A379DCD43470C0BC30A" commented="no"><enum>(c)</enum><header>Conforming amendments</header>
<paragraph id="H25785171DA764817928148839E803DC5" commented="no"><enum>(1)</enum><header>Verification of information</header><text display-inline="yes-display-inline">Section 1411 of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18081">42 U.S.C. 18081</external-xref>) is amended—</text> <subparagraph id="HA360F54687F4496A8053EB20A93AAD54" commented="no"><enum>(A)</enum><text>in subsection (a)—</text>
<clause id="HF1CE189D3A4746DC8C2CF8C8F8C8B592" commented="no"><enum>(i)</enum><text>in paragraph (1), by striking <quote>and <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(e)</external-xref> of the Internal Revenue Code of 1986</quote>; and</text></clause> <clause id="HCD7F454871834958A858DADF04FC77CE" commented="no"><enum>(ii)</enum><text>in paragraph (2)—</text>
<subclause id="H54A7245566804CE6A15D206AED6753B3" commented="no"><enum>(I)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text></subclause> <subclause id="H2CD04FA1DA684893B4520EC80DF034EB" commented="no"><enum>(II)</enum><text>in subparagraph (B), by adding <quote>and</quote> at the end; and</text></subclause>
<subclause id="H2CD12978C518417D9C173371AF8AD290" commented="no"><enum>(III)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HA8D62246407A434CACDD4BC75E9B58BD"> <subparagraph id="H536DA1D8473342478BB6DF62867B9C93" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">in the case such individual is an alien lawfully present in the United States, whether such individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code);</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subclause></clause></subparagraph>
<subparagraph id="H9B3BDE5A1FCA4E91B94B1AABD51FCC22" commented="no"><enum>(B)</enum><text>in subsection (b)(3), by adding at the end the following new subparagraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HFB70884E2A34458A96174BB32D85778C"> <subparagraph id="HF1790C57F6AA4963A02A40A2A21F107C" commented="no"><enum>(D)</enum><header>Immigration status</header><text display-inline="yes-display-inline">In the case the individual’s eligibility is based on an attestation of the enrollee’s immigration status, an attestation that such individual is an eligible alien (within the meaning of 36B(e)(2) of the Internal Revenue Code of 1986). </text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H037138A44963415FA79D767182DD6399" commented="no"><enum>(C)</enum><text>in subsection (c)(2)(B)(ii), by adding at the end the following new subclause:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HF8B0AD951A5A4C88BD45466B29925990"> <subclause id="H08282BFA46E843F3BF8B07DB947AB62C" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">In the case of an individual described in clause (i)(I) with respect to whom a premium tax credit or reduced cost-sharing under <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B</external-xref> of the Internal Revenue Code of 1986 or section 1402 is being claimed, the attestation that the individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code).</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H1AAB4BF7E1354F0A8574D74F67F47A2C" commented="no"><enum>(2)</enum><header>Advance determinations</header><text>Section 1412(d) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18082">42 U.S.C. 18082(d)</external-xref>) is amended by inserting before the period at the end the following: <quote>or, in the case of aliens who are lawfully present, are not eligible aliens (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(e)(2)</external-xref> of the Internal Revenue Code of 1986)</quote>.</text></paragraph> <paragraph id="H5C739537DCB1403EB92E90B5ACA09974" commented="no"><enum>(3)</enum><header>Cost-sharing reductions</header><text>Section 1402(e) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18071">42 U.S.C. 18071(e)</external-xref>) is amended—</text>
<subparagraph id="HC2C784AE29404377A9D1A8DAD177A7A7" commented="no"><enum>(A)</enum><text>in the header, by inserting <quote><header-in-text level="subsection" style="OLC">or not eligible aliens</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">individuals not lawfully present</header-in-text></quote>; </text></subparagraph> <subparagraph id="HE5E02159672E4434AE4E624E4008CDF2" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1), in the matter preceding subparagraph (A), by inserting <quote>or, in the case of an alien who is lawfully present, is not an eligible alien (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(e)(2)</external-xref> of the Internal Revenue Code of 1986)</quote> after <quote>not lawfully present</quote>; and</text></subparagraph>
<subparagraph id="H7D72FA8C8414452BBDFBBC5996B80483" commented="no"><enum>(C)</enum><text>by amending paragraph (2) to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HE849F2DE58C4493191DA6621B122A6B3"> <paragraph id="HB1F5C06C4C4B4C93A25ECB19D243AAD9" commented="no"><enum>(2)</enum><header>Eligible aliens</header><text display-inline="yes-display-inline">For purposes of this section, an individual shall be treated as an eligible alien (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(e)(2)</external-xref> of the Internal Revenue Code of 1986) if, and only if, the individual is, and for the entire period of enrollment for which the cost-sharing reduction under this section is being claimed is reasonably expected to be, such an alien.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H594285DCCC2D4274B088D2C789F72C6C" commented="no"><enum>(4)</enum><header>Basic health programs</header><text display-inline="yes-display-inline">Section 1331(e)(1) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18051">42 U.S.C. 18051(e)(1)</external-xref>) is amended by inserting before the period at the end the following: <quote>or, in the case of an alien who is lawfully present, an individual who is not an eligible alien (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(e)(2)</external-xref> of the Internal Revenue Code of 1986</quote>. </text></paragraph> <paragraph id="H2326CBFBC50642148464DC460FC8542E" commented="no"><enum>(5)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply with respect to plan years beginning on or after January 1, 2027.</text></paragraph></subsection>
<subsection id="HDD470B8B484648549847ECD4C3CD70FC" commented="no"><enum>(d)</enum><header>Clerical amendments</header>
<paragraph id="HBCCD0D1431684907B3B6869C1EED5AC1"><enum>(1)</enum><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(e)</external-xref> is amended by inserting <quote><header-in-text level="subsection" style="OLC">and not eligible aliens</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">individuals not lawfully present</header-in-text></quote>.</text></paragraph> <paragraph id="HF12EA844E26A4B2EA38255549BD86B2A"><enum>(2)</enum><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(e)(2)</external-xref> is amended by inserting <quote><header-in-text level="paragraph" style="OLC">; eligible aliens</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">Lawfully present</header-in-text></quote>. </text></paragraph></subsection>
<subsection id="H5FD79DB3C928424BBB039257416AADB1" commented="no"><enum>(e)</enum><header>Requirement to maintain minimum essential coverage</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/5000A">Section 5000A(d)(3)</external-xref> is amended by striking <quote>an alien lawfully present in the United States</quote> and inserting <quote>an eligible alien (within the meaning of section 36B(e)(2))</quote>.</text></subsection> <subsection id="HC79BDCA0DDD14EE395E423148BEFD5A7"><enum>(f)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section.</text></subsection>
<subsection id="HA6966763690D4FFCA102B307AC212830" commented="no"><enum>(g)</enum><header>Effective date</header><text>The amendments made by this section (other than the amendments made by subsection (c)) shall apply to taxable years beginning after December 31, 2026.</text></subsection></section> <section id="HEC98C2C00AA04DB9A7D3B426EB81B3B8"><enum>112102.</enum><header>Disallowing premium tax credit during periods of Medicaid ineligibility due to alien status</header> <subsection id="H40E9D33D72624DD6BB42B46F18C1BF64"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(c)(1)</external-xref> is amended by striking subparagraph (B) and by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively.</text></subsection>
<subsection id="HE19EDB112316469A915F05BB707F8984"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="HE323D968A2DB41D58BA9561803DAE43E"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(g)(4)(A)</external-xref> is amended by striking <quote>subsection (c)(1)(C)</quote> and inserting <quote>subsection (c)(1)(B)</quote>.</text></paragraph> <paragraph id="H71DAC96A5CB943E88D0AE835DE0A27B6" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">Section 1331(e)(1)(B) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18051">42 U.S.C. 18051(e)(1)(B)</external-xref>) is amended by striking <quote>, or, in the case of</quote> and all that follows through <quote>such alien status</quote>.</text></paragraph>
<paragraph id="H23F5DB943ECF407C97C78A80206BDE8A"><enum>(3)</enum><text>Section 1402(b) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18071">42 U.S.C. 18071(b)</external-xref>) is amended by striking the second sentence.</text></paragraph></subsection> <subsection id="HDFFE867989A2436C943CDD02E1FC2F24" display-inline="no-display-inline"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section.</text></subsection>
<subsection id="H3D5EF9CCB01743509997FC3A53ADA4B8"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="HED1DD2C9CBBA48BE85BE3F08A38C66A4" section-type="subsequent-section"><enum>112103.</enum><header>Limiting Medicare coverage of certain individuals</header><text display-inline="no-display-inline">Title XVIII of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395">42 U.S.C. 1395 et seq.</external-xref>) is amended by adding at the end the following new section:</text>
<quoted-block id="H1BFD7AFC833243AF9B9424CF31B98166" display-inline="no-display-inline" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H6EAA3A9C38E14C31887D2B0393F02FAE"><enum>1899C.</enum><header>Limiting Medicare coverage of certain individuals</header>
<subsection id="H560AD8FE708F4905A6557E3DF86837DB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subsection (b), an individual may be entitled to, or enrolled for, benefits under this title only if the individual is—</text> <paragraph id="H700EE196E06745C3B12545DFC2203505"><enum>(1)</enum><text>a citizen or national of the United States;</text></paragraph>
<paragraph id="H8E551A2AD32C4E1B8045F3432D870CFF"><enum>(2)</enum><text>an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act;</text></paragraph> <paragraph id="H96600974DEA84D8080699EA2ADCBEF98"><enum>(3)</enum><text display-inline="yes-display-inline">an alien who—</text>
<subparagraph id="H0989642CC5FA4F0897C4DD83879F48D9"><enum>(A)</enum><text>is a citizen or national of the Republic of Cuba;</text></subparagraph> <subparagraph id="HE139B87B39024B02A9784511F42A0E4F"><enum>(B)</enum><text display-inline="yes-display-inline">is the beneficiary of an approved petition under section 203(a) of the Immigration and Nationality Act;</text></subparagraph>
<subparagraph id="H7C7B257024374989935EA664D43185E3"><enum>(C)</enum><text>meets all eligibility requirements for an immigrant visa but for whom such a visa is not immediately available;</text></subparagraph> <subparagraph id="H460F8FD414BE4ADB8F5AF1856940B029"><enum>(D)</enum><text>is not otherwise inadmissible under section 212(a) of such Act; and</text></subparagraph>
<subparagraph id="H80731B7DC85540CDB0961EABA42EFB01"><enum>(E)</enum><text>is physically present in the United States pursuant to a grant of parole in furtherance of the commitment of the United States to the minimum level of annual legal migration of Cuban nationals to the United States specified in the U.S.-Cuba Joint Communiqué on Migration, done at New York September 9, 1994, and reaffirmed in the Cuba-United States: Joint Statement on Normalization of Migration, Building on the Agreement of September 9, 1994, done at New York May 2, 1995; or</text></subparagraph></paragraph> <paragraph id="H619D8F9A991A4C818662E35FBC1C3CA1"><enum>(4)</enum><text display-inline="yes-display-inline">an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.</text></paragraph></subsection>
<subsection id="HB81D69AE0F674D2E88BC11CF38EA3804"><enum>(b)</enum><header>Application to individuals currently entitled to or enrolled for benefits</header>
<paragraph id="H08D2FBD58BD24A7E96104B53EE987189"><enum>(1)</enum><header>In general</header><text>In the case of an individual who is entitled to, or enrolled for, benefits under this title as of the date of the enactment of this section, subsection (a) shall apply beginning on the date that is 1 year after such date of enactment.</text></paragraph> <paragraph id="HAC6B9BE2FE114850A24C96894FF2AE63"><enum>(2)</enum><header>Review by Commissioner of Social Security</header> <subparagraph id="H1BF0F9AB4F0F4ECA99F8E13E6D64407F"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 6 months after the date of the enactment of this section, the Commissioner of Social Security shall complete a review of individuals entitled to, or enrolled for, benefits under this title as of such date of enactment for purposes of identifying individuals not described in any of paragraphs (1) through (4) of subsection (a).</text></subparagraph>
<subparagraph id="H80A250CD50AE42219B041B48CF6063BE"><enum>(B)</enum><header>Notice</header><text>The Commissioner of Social Security shall notify each individual identified under the review conducted under subparagraph (A) that such individual’s entitlement to, or enrollment for, benefits under this title will be terminated as of the date that is 1 year after the date of the enactment of this section. Such notification shall be made as soon as practicable after such identification and in a manner designed to ensure such individual’s comprehension of such notification.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HC0D486599C9B4360BD922A4285B764A4" section-type="subsequent-section"><enum>112104.</enum><header>Excise tax on remittance transfers</header> <subsection id="H0026E5B3C5B542189D42B2F1F664241E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc-chapter/26/36">Chapter 36</external-xref> is amended by inserting after subchapter B the following new subchapter:</text>
<quoted-block style="OLC" id="H6ECC79978E354F7682BDBCC8B3E42724" display-inline="no-display-inline">
<subchapter id="HF7F75A62F1BD406DBAC0266B4F7D9A70"><enum>C</enum><header>Remittance transfers</header>
<toc container-level="subchapter-container" quoted-block="no-quoted-block" lowest-level="section" idref="HF7F75A62F1BD406DBAC0266B4F7D9A70" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H076D2E909CA64138BB4DC20F6D0E6525" level="section">Sec. 4475. Imposition of tax.</toc-entry></toc>
<section id="H076D2E909CA64138BB4DC20F6D0E6525"><enum>4475.</enum><header>Imposition of tax</header>
<subsection id="H20260E78D3284E1A8FE1472E2D5805C4"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There is hereby imposed on any remittance transfer a tax equal to 3.5 percent of the amount of such transfer.</text></subsection> <subsection id="H59C4B8844AB64D4AA9C08D55CF9DC15B"><enum>(b)</enum><header>Payment of tax</header> <paragraph id="HA5362E7AB1094FC787B61D68C8491E3D"><enum>(1)</enum><header>In general</header><text>The tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer.</text></paragraph>
<paragraph id="H4D0144F2482A4BBAA72D5A54AA8EC7A4"><enum>(2)</enum><header>Collection</header><text>The remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary at such time and in such manner as provided by the Secretary.</text></paragraph> <paragraph id="H86DD6119F06240BC88D9988DE1DA47D7"><enum>(3)</enum><header>Secondary liability</header><text>Where any tax imposed by subsection (a) is not paid at the time the transfer is made, then to the extent that such tax is not collected, such tax shall be paid by the remittance transfer provider.</text></paragraph></subsection>
<subsection id="HE81E57A44A2943029F1C59989045DB54"><enum>(c)</enum><header>Exception for remittance transfers sent by citizens and nationals of the United States through certain providers</header>
<paragraph id="HFE75F13A530D4BB1B2039DD42416F9BB"><enum>(1)</enum><header>In general</header><text>Subsection (a) shall not apply to any remittance transfer with respect to which the remittance transfer provider is a qualified remittance transfer provider and the sender is a verified United States sender.</text></paragraph> <paragraph id="HAE3AF20119294096A7E643F688A1EC4D"><enum>(2)</enum><header>Qualified remittance transfer provider</header><text>For purposes of this subsection, the term <quote>qualified remittance transfer provider</quote> means any remittance transfer provider which enters into a written agreement with the Secretary pursuant to which such provider agrees to verify the status of senders as citizens or nationals of the United States in such manner, and in accordance with such procedures, as the Secretary may specify.</text></paragraph>
<paragraph id="HE1184576F938457A91E65B7D8BDA6027"><enum>(3)</enum><header>Verified United States sender</header><text>For purposes of this subsection, the term <quote>verified United States sender</quote> means any sender who is verified by a qualified remittance transfer provider as being a citizen or national of the United States pursuant to an agreement described in paragraph (2).</text></paragraph></subsection> <subsection id="HF05EE0A729694B3AA86122D83BD058CF"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the terms <quote>remittance transfer</quote>, <quote>remittance transfer provider</quote>, <quote>designated recipient</quote>, and <quote>sender</quote> shall each have the respective meanings given such terms by section 920(g) of the Electronic Fund Transfer Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1693o-1">15 U.S.C. 1693o-1</external-xref>; relating to “Remittance Transfers”).</text></subsection>
<subsection id="H47DE0E5267724CCD9CFC8E767F1B90FA"><enum>(e)</enum><header>Application of anti-conduit rules</header><text>For purposes of section 7701(l) with respect to any multiple-party arrangements involving the sender, a remittance transfer shall be treated as a financing transaction.</text></subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE0AE673046254A4B8371D242A3B4EB2D"><enum>(b)</enum><header>Refundable income tax credit allowed to citizens and nationals of the United States for excise tax on remittance transfers</header><text display-inline="yes-display-inline">Subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 36B the following new section:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H341F2A24E2FE42519F89DE6F777089E7">
<section id="HBD9295CA3508446DA936068A9B0695E9"><enum>36C.</enum><header>Credit for excise tax on remittance transfers of citizens and nationals of the United States</header>
<subsection id="H68089FD9143F43BAB3C9CBC8AA8349A9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any individual, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the aggregate amount of taxes paid by such individual under section 4475 during such taxable year.</text></subsection> <subsection id="H2ADDE49B176F4E9B852E15579146F605"><enum>(b)</enum><header>Social security number requirement</header> <paragraph id="H8FDBF9768EB8446485E6F8B7710D3E25"><enum>(1)</enum><header>In general</header><text>No credit shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year—</text>
<subparagraph id="H195AF0484E4C4CEEB1FC3F1FFDBB8F3F"><enum>(A)</enum><text>the individual’s social security number, and</text></subparagraph> <subparagraph id="HD9140316B9254B558C4BC6DC3F86885D"><enum>(B)</enum><text>if the individual is married, the social security number of such individuals’s spouse.</text></subparagraph></paragraph>
<paragraph id="H41BBC4FE05224694B33DD09E2C1192F3"><enum>(2)</enum><header>Social security number</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>social security number</quote> has the meaning given such term in section 24(h)(7).</text></paragraph> <paragraph id="HC4B68F9952D54BB0992B633167A5548B"><enum>(3)</enum><header>Married individuals</header><text>Rules similar to the rules of section 32(d) shall apply to this section.</text></paragraph></subsection>
<subsection id="H5D2867A15A88480C8976504934AE558C"><enum>(c)</enum><header>Substantiation requirements</header><text>No credit shall be allowed under this section unless the taxpayer demonstrates to the satisfaction of the Secretary that the tax under section 4475 with respect to which such credit is determined—</text> <paragraph id="H267025EA65D1405D8DE349CB5A711328"><enum>(1)</enum><text>was paid by the taxpayer, and</text></paragraph>
<paragraph id="H88E7A61BA5AC4B22B1DA95F23761C97F"><enum>(2)</enum><text>is with respect to a remittance transfer with respect to which the taxpayer provided to the remittance transfer provider the certification and information referred to in section 6050BB(a)(2).</text></paragraph></subsection> <subsection id="HA76886A669994FC094AD12A2369B3D2E"><enum>(d)</enum><header>Definitions</header><text>Any term used in this section which is also used in section 4475 shall have the meaning given such term in section 4475.</text></subsection>
<subsection id="HCBCD2FAA59444F3BACAAEF1E44831C66"><enum>(e)</enum><header>Application of anti-conduit rules</header><text>For rules providing for the application of the anti-conduit rules of section 7701(l) to remittance transfers, see section 4475(e).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE08C73F0BB9F4EEE94B82DC35798802D" display-inline="no-display-inline"><enum>(c)</enum><header>Reporting by remittance transfer providers</header> <paragraph id="H22C7B2CDE279408E82582DC54BADAF3F"><enum>(1)</enum><header>In general</header><text>Subpart B of part III of subchapter A of chapter 61, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text>
<quoted-block style="OLC" id="HA8DB8AE80F824B0BB9BFFD38B72D070D" display-inline="no-display-inline">
<section id="H9BA52CCC2A134E1D90E41F042AA2C2C6"><enum>6050BB.</enum><header>Returns relating to remittance transfers</header>
<subsection id="H1332C342F592424FAF2451BF809054BA"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Each remittance transfer provider shall make a return at such time as the Secretary may provide setting forth—</text> <paragraph id="HF28E67F9360149A395B12A9229F7A75D"><enum>(1)</enum><text>in the case of a qualified remittance transfer provider with respect to remittance transfers to which section 4475(a) does not apply by reason of section 4475(c), the aggregate number and value of such transfers,</text></paragraph>
<paragraph id="HC5EE944900FF45CAB7838BB4D8CD132D"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of any remittance transfer not described in paragraph (1) and with respect to which the sender certifies to the remittance transfer provider an intent to claim the credit under section 36C and provides the information described in paragraph (1)—</text> <subparagraph id="H64180CF713AA413595904A296233E613"><enum>(A)</enum><text>the name, address, and social security number of the sender,</text></subparagraph>
<subparagraph id="HCD852E1E93CC48EBA89C9BDCB6FD4064"><enum>(B)</enum><text>the amount of tax paid by the sender under section 4475(b)(1), and</text></subparagraph> <subparagraph id="H6F0B60F99E2C4CE191CE1372F64FA558"><enum>(C)</enum><text>the amount of tax remitted by the remittance transfer provider under section 4475(b)(2), and</text></subparagraph></paragraph>
<paragraph id="H426271F4884443A5B4A75E5DF43CF252"><enum>(3)</enum><text>in the case of any remittance transfer not included under paragraph (1) or (2)—</text> <subparagraph id="H67266F98FE8945DBB3AB68370688922F"><enum>(A)</enum><text>the aggregate amount of tax paid under section 4475(b)(1) with respect to such transfers, and</text></subparagraph>
<subparagraph id="HBA6D7815F0154322A751631B0AE3E994"><enum>(B)</enum><text>the aggregate amount of tax remitted under section 4475(b)(2) with respect to such transfers.</text></subparagraph></paragraph></subsection> <subsection id="H7817644B4B694EB684463D18C9FCDB06"><enum>(b)</enum><header>Statement to be furnished to named persons</header><text>Every person required to make a return under subsection (a) shall furnish, at such time as the Secretary may provide, to each person whose name is required to be set forth in such return a written statement showing—</text>
<paragraph id="H82D4C5D662964499AA930FC5E3A92476"><enum>(1)</enum><text>the name and address of the information contact of the required reporting person, and</text></paragraph> <paragraph id="HAEE306952C54421FB1578BD49619B656"><enum>(2)</enum><text>the information described in subsection (a)(2) which relates to such person.</text></paragraph></subsection>
<subsection id="H7F0602F4302A4A91A60F980AF8C15CED"><enum>(c)</enum><header>Definitions</header><text>Any term used in this section which is also used in section 4475 shall have the meaning given such term in such section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H677D0154D4454DF28519C7D6303C77EA"><enum>(2)</enum><header>Penalties</header><text display-inline="yes-display-inline">Section 6724(d), as amended by the preceding provisions of this Act, is amended—</text>
<subparagraph id="H415CDBE5DC29413F8B064F3F25FC7D2C"><enum>(A)</enum><text>in paragraph (1)(B), by striking <quote>or</quote> at the end of clause (xxviii), by striking <quote>and</quote> at the end of clause (xxix) and inserting <quote>or</quote>, and by adding at the end the following new clause:</text> <quoted-block style="OLC" id="HA367E59F4F10470FAD81CB9043E0039D" display-inline="no-display-inline"> <clause id="HC75D2413B98949BEBFAB5E00E946519C"><enum>(xxx)</enum><text display-inline="yes-display-inline">section 6050BB(a) (relating to returns relating to remittance transfers), and</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H948AABFC816747189AFBC9D2FB6253E8"><enum>(B)</enum><text>in paragraph (2), by striking <quote>or</quote> at the end of subparagraph (NN), by striking the period at the end of subparagraph (OO) and inserting <quote>, or</quote>, and by inserting after subparagraph (OO) the following new subparagraph: </text> <quoted-block style="OLC" id="H5C7C19C7935E444F9C31CF6BF8A49784" display-inline="no-display-inline"> <subparagraph id="HF393CB05D8C44A949BA0A21124695B61"><enum>(PP)</enum><text display-inline="yes-display-inline">section 6050BB(b) (relating to statements relating to remittance transfers).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="HA1AD7405BE0E49AE9F00B04CBF80FBC7"><enum>(d)</enum><header>Conforming amendments</header>
<paragraph id="H5B9A6718BC504BFAABBF309FA453CB6B"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6211">Section 6211(b)(4)(A)</external-xref> is amended by inserting <quote>36C,</quote> after <quote>36B,</quote>.</text></paragraph> <paragraph id="H7AE66EB012B942B9954262018A6059FE"><enum>(2)</enum><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking <quote>and</quote> at the end of subparagraph (Z), by the striking the period at the end of subparagraph (AA) and inserting <quote>, and</quote>, and by inserting after subparagraph (AA) the following new subparagraph:</text>
<quoted-block style="OLC" id="HFF5B566F98C74ACA844461EC868228C8" display-inline="no-display-inline">
<subparagraph id="H3E9C93B1C1B74D0DA31152DEFBBF8344"><enum>(BB)</enum><text display-inline="yes-display-inline">an omission of a correct social security number under section 36C(b) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H371679BF301041A29EC72689C145B631"><enum>(3)</enum><text>Section 1324(b)(2) of title 31, United States Code, is amended by inserting <quote>36C,</quote> after <quote>36B,</quote>.</text></paragraph>
<paragraph id="HF673F45B0BA64B47A704E499D5144F28"><enum>(4)</enum><text>The table of sections for subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 36B the following new item:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HF83E92F72500405E80CD46C27308EAD1"> <toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> <toc-entry idref="HBD9295CA3508446DA936068A9B0695E9" level="section">Sec. 36C. Credit for excise tax on remittance transfers of citizens and nationals of the United States.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HA9854B0FAC1B4909B23ACEE0C714BAFF"><enum>(5)</enum><text display-inline="yes-display-inline">The table of sections for subpart B of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="H214DD91B0E6D4D63A719BDEE422A1C05" display-inline="no-display-inline">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="HA8DB8AE80F824B0BB9BFFD38B72D070D" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H9BA52CCC2A134E1D90E41F042AA2C2C6" level="section">Sec. 6050BB. Returns relating to remittance transfers.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HBA4D77F6C44D47B9A5432B2DCF8CAE29"><enum>(6)</enum><text display-inline="yes-display-inline">The table of subchapters for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/36">chapter 36</external-xref> is amended by inserting after the item relating to subchapter B the following new item:</text> <quoted-block style="OLC" id="HE75C11F52A6E4422BB113387F31ADE13" display-inline="no-display-inline"> <toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H6ECC79978E354F7682BDBCC8B3E42724" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> <toc-entry idref="HF7F75A62F1BD406DBAC0266B4F7D9A70" level="subchapter">Subchapter C—Remittance transfers</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HE6E9F91854324BCE9419C5A08ACB07BF"><enum>(e)</enum><header>Effective date</header> <paragraph id="HA2282079F9D14599996A78D525BB479C"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to transfers made after December 31, 2025.</text></paragraph>
<paragraph id="H6B7DC0231C534FEC89B900C41E897137"><enum>(2)</enum><header>Tax credit</header><text>The amendments made by subsection (b), and paragraphs (1) through (4) of subsection (d), shall apply to taxable years ending after December 31, 2025.</text></paragraph></subsection></section> <section id="HCEED94364FF640BFB190DB0A3662A670" section-type="subsequent-section"><enum>112105.</enum><header>Social security number requirement for American opportunity and lifetime learning credits</header> <subsection id="H9637DD1A72B543E9B2A080D910212DAD"><enum>(a)</enum><header>Social security number of taxpayer required</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25A">Section 25A(g)(1)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="HFAF42170953542699E13EF2EDA4CEDE8" display-inline="no-display-inline">
<paragraph id="HE06C630035E842A2AD8FD14991A3FE87"><enum>(1)</enum><header>Identification requirement</header>
<subparagraph id="H46DA8C855FCB463985EBBE4712C2CAA9"><enum>(A)</enum><header>Social security number requirement</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) to a taxpayer unless the taxpayer includes on the return of tax for the taxable year—</text> <clause id="H4AFB76A34B6F489D95C61BE2A7B6DBED"><enum>(i)</enum><text>such individual’s social security number, </text></clause>
<clause id="H2A34D8D642234636B0C7E45E273A143D"><enum>(ii)</enum><text>if the individual is married, the social security number of such individual’s spouse, and </text></clause> <clause id="H7EFFE4AADAC54DF2876EF00EB8180F6D"><enum>(iii)</enum><text>in the case of a credit with respect to the qualified tuition and related expenses of an individual other than the taxpayer or the taxpayer’s spouse, the name and social security number of such individual.</text></clause></subparagraph>
<subparagraph id="HEC48CB5329BE4F79AB3268F089D301B3"><enum>(B)</enum><header>Institution</header><text display-inline="yes-display-inline">No American Opportunity Tax Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which the taxpayer paid qualified tuition and related expenses taken into account under this section on the return of tax for the taxable year.</text></subparagraph> <subparagraph id="HC87ED90166E542F389C53C7D17BA4B62"><enum>(C)</enum><header>Social security number defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>social security number</quote> shall have the meaning given such term in section 24(h)(7).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HE02C7A3FC74B4AC09D6F14406C9D7064"><enum>(b)</enum><header>Rules related to married individuals</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25A">Section 25A(g)(6)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" id="H5B42FB662BD04E35A0C844E13FB63F0A" display-inline="no-display-inline"> <paragraph id="HD50F792C27844B9C99F09B6468C7B9A8"><enum>(6)</enum><header>Rules related to married individuals</header><text display-inline="yes-display-inline">Rules similar to the rules of section 32(d) shall apply to this section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H1E17C47928634B6F819A75D296BE0010"><enum>(c)</enum><header>Omission treated as mathematical or clerical error</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6213">Section 6213(g)(2)(J)</external-xref> is amended by striking <quote>TIN</quote> and inserting <quote>social security number or employer identification number</quote>.</text></subsection> <subsection id="H36242AA4500040149D7AD88413014B5B"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section></part>
<part id="H18A69E91FF3248F78AB7A32761C66691"><enum>3</enum><header>Preventing Fraud, Waste, and Abuse</header>
<section id="HFB98453F25D0415C996F74091FC222AF" commented="no" section-type="subsequent-section" display-inline="no-display-inline"><enum>112201.</enum><header>Requiring Exchange verification of eligibility for health plan</header>
<subsection id="H41BA1D5E8DAB475B9DACE1CEAB6B8504" commented="no"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(c)</external-xref> is amended by adding at the end the following new paragraphs:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H9B139C587613469887E82CE5AB29B746"> <paragraph id="H3422AF348E064A168866389035FFF3DC" commented="no"><enum>(5)</enum><header>Exchange enrollment verification requirement</header> <subparagraph id="H5E9258E829D54C0F9DA968328FBF0352" commented="no"><enum>(A)</enum><header>In general</header><text>The term <quote>coverage month</quote> shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month beginning before the Exchange verifies, using applicable enrollment information that shall be provided or verified by the applicant, such individual’s eligibility—</text>
<clause id="H8FCD9E6D9E774415A448B9C52EE55651" commented="no"><enum>(i)</enum><text>to enroll in the plan through the Exchange,</text></clause> <clause id="H67C9CB6DC3DD4E58A272EA6E44D0477C" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">for any advance payment under section 1412 of the Patient Protection and Affordable Care Act of the credit allowed under this section, and</text></clause>
<clause id="H172451F948D646BBB984DF53C5034EFF" commented="no"><enum>(iii)</enum><text>for any reduced cost-sharing under section 1402 of such Act.</text></clause></subparagraph> <subparagraph id="H65D39CDEBA66496BAD4819D1740FC830" commented="no"><enum>(B)</enum><header>Applicable enrollment information</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), applicable enrollment information shall at least include affirmation of the following information (to the extent relevant in determining eligibility described in subparagraph (A)):</text>
<clause id="H5EC5F832273848129E68702E67DB32DF" commented="no"><enum>(i)</enum><text>Income.</text></clause> <clause id="HD868C6B0807A4749B4D65B73A917CBF8" commented="no"><enum>(ii)</enum><text>Any immigration status.</text></clause>
<clause id="HC0840C15B87F46A9AD7AE88AD9E70846" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">Any health coverage status or eligibility for coverage.</text></clause> <clause id="H58C1745E085E466D82C2AE0AE5E954CE" commented="no"><enum>(iv)</enum><text>Place of residence.</text></clause>
<clause id="HA3DAFADD838E451EBF1D527E5D7005DA" commented="no"><enum>(v)</enum><text>Family size.</text></clause> <clause id="H9659C658AD3F45459683779758ED3102" commented="no"><enum>(vi)</enum><text>Such other information as may be determined by the Secretary (in consultation with the Secretary of Health and Human Services) as necessary to the verification prescribed under subparagraph (A).</text></clause></subparagraph>
<subparagraph id="H7925BB7C518343269AD850D2B4967D33" commented="no"><enum>(C)</enum><header>Verification of past months</header><text display-inline="yes-display-inline">In the case of a month that begins before verification prescribed by subparagraph (A), such month shall be treated as a coverage month if, and only if, the Exchange verifies for such month (using applicable enrollment information that shall be provided or verified by the applicant) such individual’s eligibility to have so enrolled, for any such advance payment, and for any such reduced cost-sharing.</text></subparagraph> <subparagraph id="H3E29D20CE49945ED9D30E477E17A581B" commented="no"><enum>(D)</enum><header>Exchange participation; coordination with other procedures for determining eligibility</header><text display-inline="yes-display-inline">An individual shall not, solely by reason of failing to meet the requirements of this paragraph with respect to a month, be treated for such month as ineligible to enroll in a qualified health plan through an Exchange.</text></subparagraph></paragraph>
<paragraph id="HBFB9CFE670624DB68C7755A51EDB905D"><enum>(6)</enum><header>Exchange compliance with filing requirements</header><text display-inline="yes-display-inline">The term <quote>coverage month</quote> shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month for which the Exchange does not meet the requirements of section 155.305(f)(4) of title 45, Code of Federal Regulations (as published in the Federal Register on March 19, 2025 (90 FR 12942)), with respect to the individual.</text></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="H66825C17E17E45BE9D39864640D7A268" display-inline="no-display-inline"><enum>(b)</enum><header>Pre-enrollment verification process required</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(c)(3)(A)</external-xref> is amended—</text>
<paragraph id="H92EFB580E5EF4FAE9815AAC86DCAF980"><enum>(1)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">health plan.—</header-in-text>The term</quote> and inserting the following:</text> <quoted-block style="OLC" display-inline="yes-display-inline" id="H201C736AFDC247A8BEC61A93E6150CF5"><text display-inline="yes-display-inline"><header-in-text level="subparagraph" style="OLC">health plan.—</header-in-text></text>
<clause id="H1C6DB848DBDA422683BEF52A602FFF45"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The term</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph> <paragraph id="H531B057BDC66419FB9F0B41CC1D983F2"><enum>(2)</enum><text>by adding at the end the following new clause:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H6AF3FD5ECD5D47CEB70F555F586E5071">
<clause id="H8B370DDD4DE347DEA7A6D201C9E69053"><enum>(ii)</enum><header>Pre-enrollment verification process required</header><text display-inline="yes-display-inline">Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre-enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant’s eligibility for enrollment in such plan for plan years beginning in the subsequent year, for any advance payment of the credit allowed under this section, and for reduced cost-sharing under section 1402 of the Patient Protection and Affordable Care Act.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H7D28B1D200204371823CCEDD9D09D8BB" display-inline="no-display-inline"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section.</text></subsection>
<subsection id="H0302E391B84B4809A0AD9781BEA216BA" commented="no"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2027.</text></subsection></section> <section id="H5FC3478FBF654EF0BB9292632CCF5068" display-inline="no-display-inline" section-type="subsequent-section"><enum>112202.</enum><header>Disallowing premium tax credit in case of certain coverage enrolled in during special enrollment period</header> <subsection id="H2BACFC18D6F04669A8A461412F6DF4EA"><enum>(a)</enum><header>In general</header><text>Section 36B(c)(3)(A), as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H9A109AEADE9C4AB8BDD692288BEA5ABD">
<clause id="H673CE512D8784D2AAC145DF13F7A894F"><enum>(iii)</enum><header>Exception in case of certain special enrollment periods</header><text display-inline="yes-display-inline">Such term shall not include any plan enrolled in during a special enrollment period provided for by an Exchange—</text> <subclause id="H05603385F8A44E299116A4A960E92106"><enum>(I)</enum><text>on the basis of the relationship of the individual’s expected household income to such a percentage of the poverty line (or such other amount) as is prescribed by the Secretary of Health and Human Services for purposes of such period, and</text></subclause>
<subclause id="HE4E80E1357DC4822AE35ECA16FFF3143"><enum>(II)</enum><text>not in connection with the occurrence of an event or change in circumstances specified by the Secretary of Health and Human Services for such purposes.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1BC450CD68C24661AC3DFFE7C9D81B33"><enum>(b)</enum><header>Regulations</header><text>The Secretary of Treasury and the Secretary of Health and Human Services shall prescribe such rules (including interim final and temporary regulations) and other guidance as may be necessary to carry out the purposes of the amendments made by this section.</text></subsection>
<subsection id="HB3A90923A9C04F8AA980F92707AC2146"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply with respect to plans enrolled in during calendar months beginning after the third calendar month ending after the date of the enactment of this Act.</text></subsection></section> <section id="HBF4B02AB24CF4CEA819C2C260D088579" display-inline="no-display-inline" section-type="subsequent-section"><enum>112203.</enum><header>Eliminating limitation on recapture of advance payment of premium tax credit</header> <subsection id="H53E9F6292C9B494A9C87BA3F65AD21FC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(f)(2)</external-xref> is amended by striking subparagraph (B).</text></subsection>
<subsection id="H846873AB1B6B40EF8FBB5AEE4C1B54BD"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="HA09B002DBFD84062AB6BBFD901EF5D08"><enum>(1)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(f)(2)</external-xref> is amended by striking <quote><header-in-text level="paragraph" style="OLC">advance payments.—</header-in-text></quote> and all that follows through <quote>If the advance payments</quote> and inserting the following: <quote><header-in-text level="paragraph" style="OLC">advance payments.—</header-in-text>If the advance payments</quote>.</text></paragraph> <paragraph id="H6A9C3699D17448ABAD5B8E82BECA2AA7"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/35">Section 35(g)(12)(B)(ii)</external-xref> is amended by striking <quote>then section 36B(f)(2)(B) shall be applied by substituting the amount determined under clause (i) for the amount determined under section 36B(f)(2)(A)</quote> and inserting <quote>then the amount determined under clause (i) shall be substituted for the amount determined under section 36B(f)(2)</quote>.</text></paragraph></subsection>
<subsection id="HEF0148CEA5ED417EB3BD20B960B8E58D"><enum>(c)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2025.</text></subsection></section> <section id="HF0A560481DB342F7BD51AD60E3060054"><enum>112204.</enum><header>Implementing artificial intelligence tools for purposes of reducing and recouping improper payments under Medicare</header> <subsection id="H73FCC283CBB146DBA22FE41AD6955FBE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part E of title XVIII of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C. 1395x et seq.</external-xref>), as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text>
<quoted-block style="OLC" id="H3A6F81853CBA43788E4572BBCB50180A" display-inline="no-display-inline">
<section id="H74168C2AB76044D89FA4239693A47504"><enum>1899D.</enum><header>Implementing artificial intelligence tools for purposes of reducing and recouping improper payments</header>
<subsection id="H3E784F2D0C8D4854848C724AC42D33EB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than January 1, 2027, the Secretary shall implement such artificial intelligence tools determined appropriate by the Secretary for purposes of—</text> <paragraph id="H0AB6BBE3438D45B7A6779CC609CC8CCE"><enum>(1)</enum><text>reducing improper payments made under parts A and B; and</text></paragraph>
<paragraph id="HE39DEEC318F0422DA0B7BDDFF1D2D86D"><enum>(2)</enum><text>identifying any such improper payments so made.</text></paragraph></subsection> <subsection id="H487A6658DA2D4003A6C84B083AB0DA0B"><enum>(b)</enum><header>Contracts</header><text>The Secretary shall seek to contract with a vendor of artificial intelligence tools and with data scientists for purposes of implementing the artificial intelligence tools required under subsection (a).</text></subsection>
<subsection id="HC23327160F4A481D90457CAABC6D0E1F" commented="no"><enum>(c)</enum><header>Recoupment</header><text>The Secretary shall, to the extent practicable, recoup payments identified using the artificial intelligence tools implemented under subsection (a).</text></subsection> <subsection id="H3FFC0ECF995347A7B6B000D58B35E691"><enum>(d)</enum><header>Report</header><text>Not later than January 1, 2029, and not less frequently than annually thereafter, the Secretary shall report to Congress on the implementation of artificial intelligence tools under subsection (a) and the recoupment of improper payments under subsection (c). Such report shall include—</text>
<paragraph id="H71E3129F145A495C9F0D3ECCAF29BB29"><enum>(1)</enum><text>a description of any opportunities for further reducing rates of improper payments described in subsection (a)(1) or further increasing rates of recoupment of such payments;</text></paragraph> <paragraph id="HB13FAB589749468380798ED68A0B619A"><enum>(2)</enum><text>the total dollar amount of improper payments recouped in the most recent year for which data is available; and</text></paragraph>
<paragraph id="HA2181B34409D49EDA2B80F9F621C1773"><enum>(3)</enum><text>in the case that the Secretary fails to reduce the rate of improper payments by 50 percent in such most recent year as compared to the year prior to such most recent year, a description of the reasons for such failure.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H267CF137FC3D40ABA38E3DF04671721E"><enum>(b)</enum><header>Implementation funding</header> <paragraph id="HAF4CF5E591F24BC2BCC18E65DAC7E175"><enum>(1)</enum><header>Federal Hospital Insurance Trust Fund</header><text>The Secretary of Health and Human Services shall provide for the transfer from the Federal Hospital Insurance Trust Fund established under section 1817 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395i">42 U.S.C. 1395i</external-xref>) to the Centers for Medicare & Medicaid Services Program Management Account of $12,500,000 for fiscal year 2025 for purposes of carrying out the amendment made by this section, to remain available until expended.</text></paragraph>
<paragraph id="HC66A146AE84E4C1DA05E988D9479EFAF"><enum>(2)</enum><header>Federal Supplementary Medical Insurance Trust Fund</header><text display-inline="yes-display-inline">The Secretary of Health and Human Services shall provide for the transfer, from the Federal Supplementary Medical Insurance Trust Fund established under section 1841 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395t">42 U.S.C. 1395t</external-xref>) to the Centers for Medicare & Medicaid Services Program Management Account of $12,500,000 for fiscal year 2025 for purposes of carrying out the amendment made by this section, to remain available until expended.</text></paragraph></subsection></section> <section id="H1EE4E5C6993745FBB087E41751923417" section-type="subsequent-section"><enum>112205.</enum><header>Earned income tax credit reforms</header> <subsection id="H7ADD13C032914B3FBE5C22256ABE0DB1"><enum>(a)</enum><header>Earned income tax credit certification program</header> <paragraph id="H3EA4AB413D954989A5FEAF9654CAD0FA"><enum>(1)</enum><header>Establishment of program</header> <subparagraph id="H1FDE7C5E2C6645DB9ECCCCDF36E28156"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/77">Chapter 77</external-xref> is amended by adding at the end the following new section:</text>
<quoted-block style="OLC" id="HDA4BFB53ADA8449397E877E74E227B50" display-inline="no-display-inline">
<section id="H34019980FC804367B3994B83BAC564F0"><enum>7531.</enum><header>Earned income tax credit certification program</header>
<subsection id="H618D758A199B4520ABBB805E95C092CB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">To avoid duplicative and other erroneous claims under section 32 with respect to a child of the taxpayer, for taxable years beginning after December 31, 2027, the Secretary shall establish a program under which, on the taxpayer’s application with respect to the child, the Secretary shall issue an EITC certificate for purposes of section 32 establishing such child’s status as a qualifying child only of the taxpayer for a taxable year.</text></subsection> <subsection id="HF729F280CD3A4DFCBD1882796CE88ABE"><enum>(b)</enum><header>Application requirements</header> <paragraph id="H651D84EF8AA24BD6BBF902E0CBB4B481"><enum>(1)</enum><header>In general</header><text>The Secretary shall not issue to a taxpayer an EITC certificate with respect to a child for a taxable year unless the taxpayer applies under the program with respect to the child and provides such information and supporting documentation as the Secretary shall by regulation prescribe as necessary to establish such child as a qualifying child only of the taxpayer for the taxable year.</text></paragraph>
<paragraph id="HCAE9FB56F4784FC08351C7BD5FB2270F"><enum>(2)</enum><header>Time and manner of application</header><text>Such application shall be made, and such information and supporting documentation shall be provided—</text> <subparagraph id="H106B2F82C2754826BD84C45B7C849A8F"><enum>(A)</enum><text display-inline="yes-display-inline">in such manner as may be provided by the Secretary for purposes of this section (including establishing an on-line portal), and</text></subparagraph>
<subparagraph id="H870F123BDB3C4A8788397ABA7CF473DB"><enum>(B)</enum><text display-inline="yes-display-inline">not later than the due date for the return of tax for the taxable year or (if later) when the return is filed.</text></subparagraph></paragraph> <paragraph id="H3695277757944345B3FF39C64F834E8B"><enum>(3)</enum><header>Competing claims</header><text display-inline="yes-display-inline">In the case of more than 1 taxpayer making an application with respect to a child under the program for a taxable year beginning during a calendar year, the Secretary shall not issue an EITC certificate to any such taxpayer with respect to such child for such a taxable year unless the Secretary can establish such child, based on information and supporting documentation provided under paragraph (1), as the qualifying child only of one such taxpayer for such a taxable year.</text></paragraph></subsection>
<subsection id="H698081FEEC5942FC8103532EF80F6F80"><enum>(c)</enum><header>Treatment of credit without certification under program</header><text display-inline="yes-display-inline">For taxable years beginning after December 31, 2027—</text> <paragraph id="H9347B84CAC4549B3B07193B93F5817E6"><enum>(1)</enum><header>In general</header><text>In the case of a taxpayer who takes into account as a qualifying child under section 32 a child for whom an EITC certificate has not been issued for the taxable year to the taxpayer—</text>
<subparagraph id="H2D542F2D9B1246A0829F56F368C87DE6"><enum>(A)</enum><text>the Secretary shall not credit the portion of any overpayment for such taxable year that is attributable to the taxpayer taking into account such child as a qualifying child, unless the taxpayer obtains, not later than the due date for the return for the taxable year, an EITC certificate with respect to such child for such taxable year, and</text></subparagraph> <subparagraph id="H535B24191D144278B2EBE3993A544E9A"><enum>(B)</enum><text display-inline="yes-display-inline">if the taxpayer fails to so obtain an EITC certificate, such failure shall be treated—</text>
<clause id="H7BB5FCF7A2D442EB96869BFBBF7B7E14"><enum>(i)</enum><text>as an omission of information required by section 32 with respect to such child, and</text></clause> <clause id="HC74C5402943E40A7B91635591280260A"><enum>(ii)</enum><text>as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).</text></clause></subparagraph></paragraph>
<paragraph id="H2BDF54D77B364B048E57F9E045FCA8F5"><enum>(2)</enum><header>Termination of certification</header><text display-inline="yes-display-inline">In the case of a taxpayer who for a taxable year takes into account as a qualifying child under section 32 a child for whom an EITC certificate is terminated for such taxable year, such termination shall be treated in the same manner as a failure to obtain an EITC certificate under paragraph (1)(B).</text></paragraph></subsection> <subsection id="H2AF9383F4F6540B597FEEB8840635CF0"><enum>(d)</enum><header>Transition rules for taxable years beginning before <enum-in-header>2028</enum-in-header></header> <paragraph id="HEA9E7FD2DDCF4BE18DFE3078E9B6284B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">If for any taxable year beginning after December 31, 2023, and before January 1, 2027, more than 1 taxpayer makes a claim for credit under section 32 taking into account the same child as a qualifying child, then the Secretary shall send notice to each such taxpayer (by certified or registered mail to the last known address of the taxpayer) detailing the resultant treatment of such taxpayers under paragraph (2) with respect to such child for any subsequent taxable years beginning before 2028.</text></paragraph>
<paragraph id="HD3C71521116844F2AC8535CEBE846006"><enum>(2)</enum><header>Subsequent taxable years beginning before <enum-in-header>2028</enum-in-header></header><text display-inline="yes-display-inline">In the case of a child with respect to whom paragraph (1) applied by reason of claims for credit for a taxable year, for any subsequent taxable years beginning before January 1, 2028—</text> <subparagraph id="HB15ED80C4471416AB991194288AC9D03"><enum>(A)</enum><text>subject to subparagraph (B), the Secretary shall not credit the portion of any overpayment for the taxable year that is attributable to a taxpayer taking into account such child as a qualifying child under section 32 until the 15th day of October following the end of the taxable year, and</text></subparagraph>
<subparagraph id="H1B48B192DE8B4D1EB1C20D8F2A0F609D"><enum>(B)</enum><text display-inline="yes-display-inline">if more than one taxpayer makes a claim for such credit for the taxable year taking into account such child as a qualifying child, so taking such child into account shall be treated—</text> <clause id="H95250DE961C04FA7B8C12A102B30F0DF"><enum>(i)</enum><text>as an omission of information required by section 32 with respect to such child, and</text></clause>
<clause id="HCC7C2845AA864593B01B1EA490B4ED46"><enum>(ii)</enum><text>as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).</text></clause></subparagraph></paragraph></subsection> <subsection id="HF533E775E2474E5188AB056D1B8457C1"><enum>(e)</enum><header>Qualifying child</header><text>For purposes of this section, the term <quote>qualifying child</quote> has the meaning given such term under section 32(c)(3).</text></subsection>
<subsection id="HCB6123659A984CD68F35AF90166B1513"><enum>(f)</enum><header>Rebuttal of treatment</header><text display-inline="yes-display-inline">Treatment under subsection (c) or (d)(2)(B) as having omitted information required by section 32 may be rebutted by providing such information and supporting documentation as satisfactorily demonstrates the child is a qualifying child of the taxpayer for the taxable year.</text></subsection> <subsection id="HE2351AF7A9B94BBB98849244D1660FC9"><enum>(g)</enum><header>Restrictions on taxpayers who improperly use program</header> <paragraph id="H4EBC93B853344A709B192CD7F96EDF76"><enum>(1)</enum><header>In general</header><text>A taxpayer shall not be permitted to apply for an EITC certificate under the program for any taxable year in the disallowance period.</text></paragraph>
<paragraph id="H0171148DEAF441D8B0C8663B1DE3FEF0"><enum>(2)</enum><header>Disallowance period</header><text>For purposes of paragraph (1), the disallowance period is—</text> <subparagraph id="HC303BE223370463CB61F144BE5485463"><enum>(A)</enum><text display-inline="yes-display-inline">the period of 10 taxable years after the most recent taxable year for which there was a penalty imposed under 6720D on the taxpayer (but only if such penalty has been imposed on such taxpayer more than once, at least one instance of which was due to fraud under section 6720D(b)),</text></subparagraph>
<subparagraph id="H9051FCF097BE4ED4B7FE9036A37CCCCF"><enum>(B)</enum><text display-inline="yes-display-inline">the period of 2 taxable years after the most recent taxable year for which there was a penalty imposed under 6720D on the taxpayer (but only if such penalty has been imposed on such taxpayer more than once due to reckless or intentional disregard of rules and regulations (but not imposed due to fraud)), and</text></subparagraph> <subparagraph id="H6A4FE51A6EDA48E084D27186CFCEC1A0"><enum>(C)</enum><text>any disallowance period with respect to the taxpayer under section 32(k)(1).</text></subparagraph></paragraph></subsection>
<subsection id="H61E86D9D8E834F7F8859344F21C594C6"><enum>(h)</enum><header>Regulations</header><text>The Secretary shall prescribe such rules as may be necessary or appropriate to carry out the program and purposes of this section, including—</text> <paragraph id="H24A0029582094825B7E73C8D5E882637"><enum>(1)</enum><text>a process for establishing alternating taxable year treatment of a child as a qualifying child under a custodial arrangement,</text></paragraph>
<paragraph id="H28F403859C70446A858D57EF0FC8717A"><enum>(2)</enum><text display-inline="yes-display-inline">notwithstanding subsection (d)(2), a process for—</text> <subparagraph id="H372404EC7BBD4631872DAAA2F76C71FA"><enum>(A)</enum><text>establishing the status of a child as a qualifying child of the taxpayer under section 32 for taxable years to which such subsection applies, and</text></subparagraph>
<subparagraph id="H14972AA9133B45038E97AF1AC85A8B81"><enum>(B)</enum><text display-inline="yes-display-inline">allowing credit or refunds attributable to such status,</text></subparagraph></paragraph> <paragraph id="H785C93366A8349E1A21864BE4D263A1C"><enum>(3)</enum><text display-inline="yes-display-inline">a simplified process for re-certifying a child as a qualifying child only of the taxpayer for a taxable year, and</text></paragraph>
<paragraph id="HA83E706BA7724836957A4CAF95585A28"><enum>(4)</enum><text>a process for terminating EITC certificates in the case of competing claims with respect to a child or in cases in which issuance of the certificate is determined by the Secretary to be erroneous.</text></paragraph></subsection></section><after-quoted-block>. </after-quoted-block></quoted-block></subparagraph> <subparagraph id="HB08ABBCA412B4A48BAF138BBA34193E1"><enum>(B)</enum><header>Conforming amendment</header><text>Section 32 amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H8B47283F5FFC4F6A803F711B741E0664" display-inline="no-display-inline">
<subsection id="H10912DABA2B94F7EB328A8388F764C43"><enum>(o)</enum><header>EITC certificate with respect to qualifying children</header><text display-inline="yes-display-inline">For rules relating to EITC certificates with respect to qualifying children and duplicate claims for the credit allowed under this section, see section 7531.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H5BDDF536BD0648ECB4BA3C0A9B7CD7E1"><enum>(C)</enum><header>Clerical amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/77">chapter 77</external-xref> is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="HB431288CC5FF432FBA4F6D988E8BA437" display-inline="no-display-inline">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 7531. Earned income tax credit certification program.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H603E0F45D7064E0B8B1C68BC034716A6"><enum>(2)</enum><header>Penalties for improper use of EITC certificate program</header>
<subparagraph id="HD08EAC00956D4FE6BE4C0D79670A77C2"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Part I of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/68">chapter 68</external-xref> is amended by adding at the end the following new section:</text> <quoted-block style="OLC" id="H4866F2FD839C48538B964136FAC381FB" display-inline="no-display-inline"> <section id="HFD3F6E5ABC4A4ED0B1AFEE179A8F7AE5"><enum>6720D.</enum><header>Penalties with respect to <enum-in-header>EITC</enum-in-header> certificate program</header> <subsection id="H47D6456B61E746D7AA3DB35D881BEE7E"><enum>(a)</enum><header>Reckless or intentional disregard</header><text display-inline="yes-display-inline">If—</text>
<paragraph id="H20B1D6ECBA4947D5B2DA14DB61E7B5A2"><enum>(1)</enum><text>any person makes a material misstatement or inaccurate representation in an application under section 7531 for an EITC certificate, and</text></paragraph> <paragraph id="HC715D73D95D44379AF1CA2BA207CDFE8"><enum>(2)</enum><text>such misstatement or representation was due to reckless or intentional disregard of rules and regulations (but not due to fraud), </text></paragraph><continuation-text continuation-text-level="subsection">such person shall pay a penalty of $100 for each EITC certificate with respect to which such misstatement or representation was made.</continuation-text></subsection>
<subsection id="HFF78B36B506B466B93496EAF6E4EF431"><enum>(b)</enum><header>Fraud</header><text>If a misstatement or representation described in subsection (a)(1) is due to fraud on the part of the person making such misstatement or representation, in addition to any criminal penalty, such person shall pay a penalty of $500 for each EITC certificate with respect to which such a misstatement or representation was made.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HF33A9B5CD1EA49A78379123F09A7ED3B"><enum>(B)</enum><header>Clerical amendment</header><text>The table of sections for part I of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/68">chapter 68</external-xref> is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" id="H6FD7E13433D94EB9B687E6052C04DDC6" display-inline="no-display-inline">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 6720D. Penalties with respect to EITC certificate program.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HA821A6CE239A46E1835F8ACBD76EB8C3"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after December 31, 2024.</text></paragraph></subsection> <subsection id="HE0B09FC7CB5D4CDA9D11FFDA71A16685"><enum>(b)</enum><header>Task force to design a private data bouncing system for improvements to the earned income tax credit</header><text>Out of any money in the Treasury not otherwise appropriated, there is hereby appropriated $10,000,000 for the fiscal year ending on September 30, 2026, for necessary expenses of the Department of the Treasury, to establish, within 90 days following the date of the enactment of this Act, a task force to provide to the Secretary of the Treasury a report on the following with respect to the administration of the earned income tax credit:</text>
<paragraph id="H8BAF8C540CC2492487D3E41F9AD64595"><enum>(1)</enum><text display-inline="yes-display-inline">Recommendations for improvement of the integrity of such administration.</text></paragraph> <paragraph id="H1B8652D8C5D54EBEAA9E6995EC33A9AD"><enum>(2)</enum><text>The potential use of third-party payroll and consumption datasets to verify income.</text></paragraph>
<paragraph id="H6D3D19866306430086F8C8AE72EEB7D7"><enum>(3)</enum><text>The integration of automated databases to allow horizontal verification to reduce improper payments, fraud, and abuse.</text></paragraph></subsection> <subsection id="H43202F11E82343C0AF2432805418B0F5"><enum>(c)</enum><header>Increased earned income tax credit for Purple Heart recipients whose Social Security disability benefits are terminated by reason of work activity</header> <paragraph id="H01A16E07F47542F69302C6220606A72B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 32, as amended by the preceding provisions of this Act, is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H9A0888948F3845DDB502A558ABB23F2B" display-inline="no-display-inline">
<subsection id="HD972B12856CC46288E5A695062E7DA1A"><enum>(p)</enum><header>Increase in credit for Purple Heart recipients whose Social Security disability benefits are terminated by reason of work activity</header>
<paragraph id="HEB8731340A4D4D5AB6D42A0EF39CFC2A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a specified Purple Heart recipient, the credit otherwise determined under subsection (a) for the taxable year shall be increased (whether or not such specified Purple Heart recipient is an eligible individual) by the sum of the SSDI benefit substitution amounts with respect to qualified benefit termination months during such taxable year.</text></paragraph> <paragraph id="H41C2045B7C994592A2788848FD670D33"><enum>(2)</enum><header>Specified Purple Heart recipient</header><text>For purposes of this subsection, the term <quote>specified Purple Heart recipient</quote> means any individual—</text>
<subparagraph id="H4107ED47ED0947C387BB437505B5349B"><enum>(A)</enum><text>who received the Purple Heart,</text></subparagraph> <subparagraph id="H5D9C8C4CB92E48D6980A61E980D1A78E"><enum>(B)</enum><text>who received disability insurance benefit payments under section 223(a) of the Social Security Act, and</text></subparagraph>
<subparagraph id="HA4C18D5237EF4B84B799D43479C5F470"><enum>(C)</enum><text>with respect to whom such disability insurance benefit payments ceased to be payable by reason of section 223(e)(1) of such Act.</text></subparagraph></paragraph> <paragraph id="HCBD36CCF60E24A119CC86EE30D712115"><enum>(3)</enum><header>Qualified benefit termination month</header><text>For purposes of this subsection—</text>
<subparagraph id="H40FD3939B494440BA68FA7DC544BDC20"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified benefit termination month</quote> means, with respect to any specified Purple Heart recipient, each month during the 12-month period beginning with the first month with respect to which disability insurance benefit payments described in paragraph (2)(B) ceased to be payable as described in paragraph (2)(C).</text></subparagraph> <subparagraph id="H4BB0771740FC438EA0F036883FF5EA22"><enum>(B)</enum><header>Exception for months for which benefits are reinstated, etc</header><text display-inline="yes-display-inline">Such term shall not include any month if the specified Purple Heart recipient receives any benefit payment under section 223(a) of the Social Security Act with respect to such month.</text></subparagraph></paragraph>
<paragraph id="HAD92FB04708F4B74A06AA46A230402A0"><enum>(4)</enum><header>SSDI benefit substitution amount</header><text>For purposes of this subsection, the term <quote>SSDI benefit substitution amount</quote> means, with respect to any specified Purple Heart recipient for any qualified benefit termination month, an amount equal to the disability insurance benefit payment received by such recipient under section 223(a) of the Social Security Act for the month immediately preceding the 12-month period described in paragraph (3)(A).</text></paragraph> <paragraph id="H327186D26A054F01B955C5FFEF8711DA"><enum>(5)</enum><header>Certain EITC limitations not applicable</header><text>Subsections (a)(2), (d), (e), (f), and (i) shall not apply with respect to the increase under paragraph (1).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H3CAF56B5E3C040F99915F84DA662650C"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to taxable years ending after the date of the enactment of this Act.</text></paragraph></subsection> <subsection id="H6DCC376D4D964D71B9F5C0B708F7B172" display-inline="no-display-inline"><enum>(d)</enum><header>Social security number defined</header> <paragraph id="H3727B87DE5534E96999DA0E6C35A6936"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/32">Section 32(m)</external-xref> is amended by striking <quote>issued to an individual</quote> and all that follows and inserting <quote>(as defined section 24(h)(7))</quote>.</text></paragraph>
<paragraph id="HF260B243A0EF4FB1978454A7F8A2AE7A"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2024.</text></paragraph></subsection></section> <section id="HD436CC6E0B4F44C7A0A2B2FF1F36FED3"><enum>112206.</enum><header>Task force on the termination of Direct File</header> <subsection id="H608F6D69227A49D582F688CCF34F6187"><enum>(a)</enum><header>Termination of Direct File</header><text>As soon as practicable, and not later than 30 days after the date of the enactment of this Act, the Secretary of the Treasury shall ensure that the Internal Revenue Service Direct File program has been terminated.</text></subsection>
<subsection id="H20BA35E6A3F248C2B256DFB721446A5F"><enum>(b)</enum><header>Appropriation for task force to design a better public-private partnership between the IRS and private sector tax preparation services to provide for free tax filing to replace the existing “Free File” program and any “Direct Efile” tax return system</header><text display-inline="yes-display-inline">Out of any money in the Treasury not otherwise appropriated, there is hereby appropriated for the fiscal year ending September 30, 2026, for necessary expenses of the Department of the Treasury to deliver to Congress, within 90 days following the date of the enactment of this Act, a report on (1) the cost of a new public-private partnership to provide for free tax filing for up to 70 percent of all taxpayers calculated by adjusted gross income to replace free file and any IRS-run direct file programs; (2) taxpayer opinions and preferences regarding a taxpayer-funded, government-run service or a free service provided by the private sector; (3) assessment of the feasibility of a new approach, how to make the options consistent and simple for taxpayers across all participating providers, how to provide features to address taxpayer needs; and (4) the cost (including options for differential coverage based on taxpayer adjusted gross income and return complexity) of developing and running a free direct efile tax return system, including costs to build and administer each release, $15,000,000, to remain available until September 30, 2026.</text></subsection></section> <section id="H5D2B1F8BDAD74C8F854CDF9483E710F5"><enum>112207.</enum><header>Increase in penalties for unauthorized disclosures of taxpayer information</header> <subsection id="H400EA371A39743DD8B9E7F07BE25B622"><enum>(a)</enum><header>In general</header><text>Paragraphs (1), (2), (3), (4), and (5) of section 7213(a) are each amended by striking <quote>$5,000, or imprisonment of not more than 5 years</quote> and inserting <quote>$250,000, or imprisonment of not more than 10 years</quote>.</text></subsection>
<subsection id="HFFC3E0271A5E40079674BD21CADBFCE5"><enum>(b)</enum><header>Disclosures of return information of multiple taxpayers treated as multiple violations</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7213">Section 7213(a)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="HDA141F61EFFA4E1EA5C736F798E9F404" display-inline="no-display-inline"> <paragraph id="H463C80D893D44FEB99E84E50F537FCE3"><enum>(6)</enum><header>Disclosures of return information of multiple taxpayers treated as multiple violations</header><text display-inline="yes-display-inline">For purposes of this subsection, a separate violation occurs with respect to each taxpayer whose return or return information is disclosed in violation of this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HE5C6C76DEAC945B8AA616D2A60FBA82B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to disclosures made after the date of the enactment of this Act. </text></subsection></section> <section id="H5AB4C46C356A4D198362835D5BE29B73"><enum>112208.</enum><header>Restriction on regulation of contingency fees with respect to tax returns, etc</header><text display-inline="no-display-inline">The Secretary of the Treasury may not regulate, prohibit, or restrict the use of a contingent fee in connection with tax returns, claims for refund, or documents in connection with tax returns or claims for refund prepared on behalf of a taxpayer.</text></section></part></subtitle>
<subtitle id="H24F24DFE86684A55989A0BC953D46F57"><enum>D</enum><header>Increase in Debt Limit</header>
<section id="H8666AE01984A4EF383683621E2B1E86D"><enum>113001.</enum><header>Modification of limitation on the public debt</header><text display-inline="no-display-inline">The limitation under section 3101(b) of title 31, United States Code, as most recently increased by section 401(b) of <external-xref legal-doc="public-law" parsable-cite="pl/118/5">Public Law 118–5</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/31/3101">31 U.S.C. 3101</external-xref> note), is increased by $4,000,000,000,000.</text></section></subtitle> Passed the House of Representatives May 22 (legislative day May 21), 2025.Kevin F. McCumber,Clerk.