    [Congressional Bills 119th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 1 Placed on Calendar Senate (PCS)]

    <DOC>

                                                           Calendar No. 107
    119th CONGRESS
      1st Session
                                     H. R. 1

    _______________________________________________________________________

                       IN THE SENATE OF THE UNITED STATES

                    June 27 (legislative day, June 24), 2025

                         Received; read the first time

                                 June 28, 2025

                Read the second time and placed on the calendar

    _______________________________________________________________________

                                     AN ACT

     To provide for reconciliation pursuant to title II of H. Con. Res. 14.

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled,

    SECTION 1. SHORT TITLE.

        This Act may be cited as the ``One Big Beautiful Bill Act''.

    SEC. 2. TABLE OF CONTENTS.

        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.

                       TITLE I--COMMITTEE ON AGRICULTURE

                             Subtitle A--Nutrition

    SEC. 10001. THRIFTY FOOD PLAN.

        Section 3(u) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2012(u)) is amended to read as follows:
        ``(u)(1) `Thrifty food plan' 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).
        ``(2) Household Adjustments.--The Secretary shall make household-
    size adjustments based on the following ratios of household size as a
    percentage of the maximum 4-person allotment:
                ``(A) For a 1-person household, 30 percent.
                ``(B) For a 2-person household, 55 percent.
                ``(C) For a 3-person household, 79 percent.
                ``(D) For a 4-person household, 100 percent.
                ``(E) For a 5-person household, 119 percent.
                ``(F) For a 6-person household, 143 percent.
                ``(G) For a 7-person household, 158 percent.
                ``(H) For an 8-person household, 180 percent.
                ``(I) For a 9-person household, 203 percent.
                ``(J) For a 10-person household, 224 percent.
                ``(K) 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.
                ``(3) Reevaluation of market baskets.--
                        ``(A) Evaluation.--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.
                        ``(B) Notice.--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.
                        ``(C) Cost neutrality.--The Secretary shall not
                    increase the cost of the thrifty food plan based on a
                    reevaluation or update under this paragraph.
                ``(4) Allowable cost adjustments.--On October 1 immediately
            following the effective date of this paragraph and on each
            October 1 thereafter, the Secretary shall--
                        ``(A) 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;
                        ``(B) 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
                        ``(C) 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.''.

    SEC. 10002. ABLE BODIED ADULTS WITHOUT DEPENDENTS WORK REQUIREMENTS.

        (a) Section 6(o)(3) of the Food and Nutrition Act of 2008 is
    amended to read as follows:
                ``(3) Exception.--Paragraph (2) shall not apply to an
            individual if the individual is--
                        ``(A) under 18 or over 65 years of age;
                        ``(B) medically certified as physically or mentally
                    unfit for employment;
                        ``(C) a parent or other member of a household with
                    responsibility for a dependent child under 7 years of
                    age;
                        ``(D) otherwise exempt under subsection (d)(2);
                        ``(E) a pregnant woman;
                        ``(F) currently homeless;
                        ``(G) a veteran;
                        ``(H) 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 (42 U.S.C. 675(8)(B)(iii)); or
                        ``(I) 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).''.
        (b) Sunset Provision.--The exceptions in subparagraphs (F) through
    (H) shall cease to have effect on October 1, 2030.

    SEC. 10003. ABLE BODIED ADULTS WITHOUT DEPENDENTS WAIVERS.

        Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2015(o)) is amended--
                (1) by amending paragraph (4)(A) to read as follows:
                        ``(A) In general.--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.''; and
                (2) in paragraph (6)(F) by striking ``8 percent'' and
            inserting ``1 percent''.

    SEC. 10004. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED ON
                  RECEIPT OF ENERGY ASSISTANCE.

        (a) Allowance to Recipients of Energy Assistance.--
                Section 5(e)(6)(C)(iv)(I) of the of the Food and Nutrition
            Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is amended by
            inserting ``with an elderly or disabled member'' after
            ``households''.
        (b) Third-party Energy Assistance Payments.--Section 5(k)(4) of the
    Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended--
                (1) in subparagraph (A) by inserting ``without an elderly
            or disabled member'' after ``household'' the 1st place it
            appears; and
                (2) in subparagraph (B) by inserting ``with an elderly or
            disabled member'' after ``household'' the 1st place it appears.

    SEC. 10005. RESTRICTIONS ON INTERNET EXPENSES.

        Section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2014(e)(6)) is amended by adding at the end the following:
                        ``(E) Restrictions on internet expenses.--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.''.

    SEC. 10006. MATCHING FUNDS REQUIREMENTS.

        (a) In General.--Section 4(a) of the Food and Nutrition Act of 2008
    (7 U.S.C. 2013(a)) is amended--
                (1) by striking ``(a) Subject to'' and inserting the
            following:
        ``(a) Program.--
                ``(1) Establishment.--Subject to''; and
                (2) by adding at the end the following:
        ``(2) Matching Funds Requirements.--
                ``(A) In general.--
                        ``(i) Federal share.--Subject to subparagraph (B),
                    the Federal share of the cost of allotments described
                    in paragraph (1) in a fiscal year shall be--
                                ``(I) for each of fiscal years 2026 and
                            2027, 100 percent; and
                                ``(II) for fiscal year 2028 and each fiscal
                            year thereafter, 95 percent.
                        ``(ii) State share.--Subject to subparagraph (B),
                    the State share of the cost of allotments described in
                    paragraph (1) in a fiscal year shall be--
                                ``(I) for each of fiscal years 2026 and
                            2027, 0 percent; and
                                ``(II) for fiscal year 2028 and each fiscal
                            year thereafter, 5 percent.
                ``(B) State quality control incentive.--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--
                        ``(i) 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;
                        ``(ii) 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
                        ``(iii) 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.''.
        (b) Rule of Construction.--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 (7 U.S.C. 2013(a)), 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).

    SEC. 10007. ADMINISTRATIVE COST SHARING.

        Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2025(a)) is amended by striking ``50 per centum'' and inserting ``25
    percent''.

    SEC. 10008. GENERAL WORK REQUIREMENT AGE.

        Section 6(d) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2015(d)) is amended--
                (1) in paragraph (1)(A), in the matter preceding clause
            (i), by striking ``over the age of 15 and under the age of 60''
            and inserting ``over the age of 17 and under the age of 65'';
            and
                (2) in paragraph (2)--
                        (A) by striking ``child under age six'' and
                    inserting ``child under age seven''; and
                        (B) by striking ``between 1 and 6 years of age''
                    and inserting ``between 1 and 7 years of age''.

    SEC. 10009. NATIONAL ACCURACY CLEARINGHOUSE.

        Section 11(x)(2) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2020(x)(2)) is amended by adding at the end the following:
                        ``(D) Data sharing to prevent other multiple
                    issuances.--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.''.

    SEC. 10010. QUALITY CONTROL ZERO TOLERANCE.

        Section 16(c)(1)(A)(ii) of the Food and Nutrition Act of 2008 (7
    U.S.C. 2025(c)(1)(A)(ii)) is amended--
                (1) in subclause (I), by striking ``and'' at the end;
                (2) in subclause (II)--
                        (A) by striking ``fiscal year thereafter'' and
                    inserting ``of fiscal years 2015 through 2025''; and
                        (B) by striking the period at the end and inserting
                    ``; and''; and
                (3) by adding at the end the following:
                                        ``(III) for each fiscal year
                                    thereafter, $0.''.

    SEC. 10011. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT PROGRAM
                  REPEALER.

        The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is
    amended by striking section 28 (7 U.S.C. 2036a).

    SEC. 10012. ALIEN SNAP ELIGIBILITY.

        Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2015(f)) is amended to read as follows:
        ``(f) 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--
                ``(1) a resident of the United States; and
                ``(2) either--
                        ``(A) a citizen or national of the United States;
                        ``(B) 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;
                        ``(C) an alien who is a citizen or national of the
                    Republic of Cuba and who--
                                ``(i) is the beneficiary of an approved
                            petition under section 203(a) of the
                            Immigration and Nationality Act;
                                ``(ii) meets all eligibility requirements
                            for an immigrant visa but for whom such a visa
                            is not immediately available;
                                ``(iii) is not otherwise inadmissible under
                            section 212(a) of such Act; and
                                ``(iv) 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
                            Communique 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
                        ``(D) 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.
            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.''.

    SEC. 10013. EMERGENCY FOOD ASSISTANCE.

        Section 203D(d)(5) of the Emergency Food Assistance Act of 1983 (7
    U.S.C. 7507(d)(5)) is amended by striking ``2024'' and inserting
    ``2031''.

                    Subtitle B--Investment in Rural America

    SEC. 10101. SAFETY NET.

        (a) Reference Price.--Section 1111(19) of the Agricultural Act of
    2014 (7 U.S.C. 9011(19)) is amended to read as follows:
                ``(19) Reference price.--
                        ``(A) In general.--Subject to subparagraphs (B) and
                    (C), the term `reference price', with respect to a
                    covered commodity for a crop year, means the following:
                                ``(i) For wheat, $6.35 per bushel.
                                ``(ii) For corn, $4.10 per bushel.
                                ``(iii) For grain sorghum, $4.40 per
                            bushel.
                                ``(iv) For barley, $5.45 per bushel.
                                ``(v) For oats, $2.65 per bushel.
                                ``(vi) For long grain rice, $16.90 per
                            hundredweight.
                                ``(vii) For medium grain rice, $16.90 per
                            hundredweight.
                                ``(viii) For soybeans, $10.00 per bushel.
                                ``(ix) For other oilseeds, $23.75 per
                            hundredweight.
                                ``(x) For peanuts, $630.00 per ton.
                                ``(xi) For dry peas, $13.10 per
                            hundredweight.
                                ``(xii) For lentils, $23.75 per
                            hundredweight.
                                ``(xiii) For small chickpeas, $22.65 per
                            hundredweight.
                                ``(xiv) For large chickpeas, $25.65 per
                            hundredweight.
                                ``(xv) For seed cotton, $0.42 per pound.
                        ``(B) Effectiveness.--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.
                        ``(C) Limitation.--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).''.
        (b) Base Acres.--Section 1112 of the Agricultural Act of 2014 (7
    U.S.C. 9012) is amended--
                (1) in subsection (d)(3)(A), by striking ``2023'' and
            inserting ``2031''; and
                (2) by adding at the end the following:
        ``(e) Additional Base Acres.--
                ``(1) In general.--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.
                ``(2) Content of notice.--The notice under paragraph (1)
            shall include the following:
                        ``(A) Information that the allocation is occurring.
                        ``(B) Information regarding the eligibility of the
                    farm for an allocation of base acres under paragraph
                    (4).
                        ``(C) 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.
                ``(3) Opt-out.--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.
                ``(4) Eligibility.--
                        ``(A) In general.--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).
                        ``(B) 5-year average sum.--The amount described in
                    this subparagraph, with respect to a farm, is the sum
                    of--
                                ``(i) the 5-year average of--
                                        ``(I) 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
                                        ``(II) 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
                                ``(ii) the lesser of--
                                        ``(I) 15 percent of the total acres
                                    on the farm; and
                                        ``(II) the 5-year average of--
                                                ``(aa) 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
                                                ``(bb) 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.
                        ``(C) Total number of base acres for covered
                    commodities.--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.
                        ``(D) Effect of no recent plantings of covered
                    commodities.--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.
                        ``(E) Acreage planted on the farm to eligible
                    noncovered commodities defined.--In this paragraph, the
                    term `acreage planted on the farm to eligible
                    noncovered commodities' 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.
                ``(5) Number of base acres.--Subject to paragraphs (4) and
            (7), the number of base acres allocated to an eligible farm
            shall--
                        ``(A) 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
                        ``(B) include unassigned crop base.
                ``(6) Allocation of acres.--
                        ``(A) Allocation.--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.
                        ``(B) Allocation formula.--The allocation of
                    additional base acres for covered commodities shall be
                    in proportion to the ratio of--
                                ``(i) the 5-year average of--
                                        ``(I) 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
                                        ``(II) 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
                                ``(ii) the 5-year average determined under
                            paragraph (4)(B)(i).
                        ``(C) Inclusion of all 5 years in average.--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.
                        ``(D) Treatment of multiple planting or prevented
                    planting.--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.
                        ``(E) Limitation.--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.
                ``(7) Reduction by the secretary.--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.
                ``(8) Payment yield.--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--
                        ``(A) the payment yield established on the farm for
                    the applicable covered commodity; and
                        ``(B) if no such payment yield for the applicable
                    covered commodity exists, a payment yield--
                                ``(i) equal to the average payment yield
                            for the covered commodity for the county in
                            which the farm is situated; or
                                ``(ii) determined pursuant to section
                            1113(c).
                ``(9) Treatment of new owners.--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--
                        ``(A) eligibility under paragraph (4);
                        ``(B) eligible acres under paragraph (5); and
                        ``(C) the allocation of acres under paragraph
                    (6).''.
        (c) Producer Election.--Section 1115 of the Agricultural Act of
    2014 (7 U.S.C. 9015) is amended--
                (1) in subsection (a), in the matter preceding paragraph
            (1) by striking ``2023'' and inserting ``2031''; and
                (2) in subsection (c)--
                        (A) in the matter preceding paragraph (1), by
                    striking ``2014 crop year or the 2019 crop year, as
                    applicable'' and inserting ``2014 crop year, 2019 crop
                    year, or 2026 crop year, as applicable'';
                        (B) in paragraph (1), by striking ``2014 crop year
                    or the 2019 crop year, as applicable,'' and inserting
                    ``2014 crop year, 2019 crop year, or 2026 crop year, as
                    applicable,''; and
                        (C) in paragraph (2)--
                                (i) in subparagraph (A), by striking
                            ``and'' at the end;
                                (ii) in subparagraph (B), by striking the
                            period at the end and inserting ``; and''; and
                                (iii) by adding at the end the following:
                        ``(C) 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.''.
        (d) Price Loss Coverage.--Section 1116 of the Agricultural Act of
    2014 (7 U.S.C. 9016) is amended--
                (1) in subsection (a)(2), in the matter preceding
            subparagraph (A), by striking ``2023'' and inserting ``2031'';
                (2) in subsection (c)(1)(B)--
                        (A) in the subparagraph heading, by striking
                    ``2023'' and inserting ``2031''; and
                        (B) in the matter preceding clause (i), by striking
                    ``2023'' and inserting ``2031'';
                (3) in subsection (d), by striking ``2025'' and inserting
            ``2031''; and
                (4) in subsection (g), by striking ``2012 through 2016''
            each place it appears and inserting ``2017 through 2021''.
        (e) Agriculture Risk Coverage.--Section 1117 of the Agricultural
    Act of 2014 (7 U.S.C. 9017) is amended--
                (1) in subsection (a), in the matter preceding paragraph
            (1), by striking ``2023'' and inserting ``2031'';
                (2) in subsection (c)--
                        (A) in paragraph (1), by inserting ``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'' before the period at the end;
                        (B) by striking ``2023'' each place it appears and
                    inserting ``2031''; and
                        (C) in paragraph (4)(B), in the subparagraph
                    heading, by striking ``2023'' and inserting ``2031'';
                (3) by amending subsection (d)(1)(B) to read as follows:
                        ``(B)(i) for each of the crop years 2014 through
                    2024, 10 percent of the benchmark revenue for the crop
                    year applicable under subsection (c); and
                        ``(ii) for each of the crop years 2025 through
                    2031, 12.5 percent of the benchmark revenue for the
                    crop year applicable under subsection (c).''; and
                (4) in subsections (e), (g)(5), and (i)(5), by striking
            ``2023'' each place it appears and inserting ``2031''.
        (f) Equitable Treatment of Certain Entities.--
                (1) In general.--Section 1001 of the Food Security Act of
            1985 (7 U.S.C. 1308) is amended--
                        (A) in subsection (a)--
                                (i) by redesignating paragraph (5) as
                            paragraph (6); and
                                (ii) by inserting after paragraph (4) the
                            following:
                ``(5) Qualified pass-through entity.--The term `qualified
            pass-through entity' means--
                        ``(A) a partnership (within the meaning of
                    subchapter K of chapter 1 of the Internal Revenue Code
                    of 1986);
                        ``(B) an S corporation (as defined in section 1361
                    of that Code);
                        ``(C) a limited liability company that does not
                    affirmatively elect to be treated as a corporation; and
                        ``(D) a joint venture or general partnership.'';
                        (B) in subsections (b) and (c), by striking
                    ``except a joint venture or general partnership'' each
                    place it appears and inserting ``except a qualified
                    pass-through entity''; and
                        (C) in subsection (d), by striking ``subtitle B''
                    and all that follows through the end and inserting
                    ``title I of the Agricultural Act of 2014.''.
                (2) Attribution of payments.--Section 1001(e)(3)(B)(ii) of
            the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is
            amended--
                        (A) in the clause heading, by striking ``joint
                    ventures and general partnerships'' and inserting
                    ``qualified pass-through entities'';
                        (B) by striking ``a joint venture or a general
                    partnership'' and inserting ``a qualified pass-through
                    entity'';
                        (C) by striking ``joint ventures and general
                    partnerships'' and inserting ``qualified pass-through
                    entities''; and
                        (D) by striking ``the joint venture or general
                    partnership'' and inserting ``the qualified pass-
                    through entity''.
                (3) Persons actively engaged in farming.--Section
            1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308-
            1(b)(2)) is amended--
                        (A) in subparagraphs (A) and (B), by striking ``in
                    a general partnership, a participant in a joint
                    venture'' each place it appears and inserting ``a
                    qualified pass-through entity''; and
                        (B) in subparagraph (C), by striking ``a general
                    partnership, joint venture, or similar entity'' and
                    inserting ``a qualified pass-through entity or a
                    similar entity''.
                (4) Joint and several liability.--Section 1001B(d) of the
            Food Security Act of 1985 (7 U.S.C. 1308-2(d)) is amended by
            striking ``partnerships and joint ventures'' and inserting
            ``qualified pass-through entities''.
                (5) Exclusion from agi calculation.--Section 1001D(d) of
            the Food Security Act of 1985 (7 U.S.C. 1308-3a(d)) is amended
            by striking ``, general partnership, or joint venture'' each
            place it appears.
        (g) Payment Limitations.--Section 1001 of the Food Security Act of
    1985 (7 U.S.C. 1308) is amended--
                (1) in subsection (b)--
                        (A) by striking ``The'' and inserting ``Subject to
                    subsection (i), the''; and
                        (B) by striking ``$125,000'' and inserting
                    ``$155,000'';
                (2) in subsection (c)--
                        (A) by striking ``The'' and inserting ``Subject to
                    subsection (i), the''; and
                        (B) by striking ``$125,000'' and inserting
                    ``$155,000''; and
                (3) by adding at the end the following:
        ``(i) Adjustment.--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.''.
        (h) Adjusted Gross Income Limitation.--Section 1001D(b) of the Food
    Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended--
                (1) in paragraph (1), by striking ``paragraph (3)'' and
            inserting ``paragraphs (3) and (4)''; and
                (2) by adding at the end the following:
                ``(4) Exception for certain operations.--
                        ``(A) Definitions.--In this paragraph:
                                ``(i) Excepted payment or benefit.--The
                            term `excepted payment or benefit' means--
                                        ``(I) a payment or benefit under
                                    subtitle E of title I of the
                                    Agricultural Act of 2014 (7 U.S.C. 9081
                                    et seq.);
                                        ``(II) a payment or benefit under
                                    section 196 of the Federal Agriculture
                                    Improvement and Reform Act of 1996 (7
                                    U.S.C. 7333); and
                                        ``(III) a payment or benefit
                                    described in paragraph (2)(C) received
                                    on or after October 1, 2024.
                                ``(ii) Farming, ranching, or silviculture
                            activities.--The term `farming, ranching, or
                            silviculture activities' 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.
                        ``(B) Exception.--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.''.
        (i) Marketing Loans.--
                (1) Availability of nonrecourse marketing assistance loans
            for loan commodities.--Section 1201(b)(1) of the Agricultural
            Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking
            ``2023'' and inserting ``2031''.
                (2) Loan rates for nonrecourse marketing assistance
            loans.--Section 1202 of the Agricultural Act of 2014 (7 U.S.C.
            9032) is amended--
                        (A) in subsection (b)--
                                (i) in the subsection heading, by striking
                            ``2023'' and inserting ``2025''; and
                                (ii) in the matter preceding paragraph (1),
                            by striking ``2023'' and inserting ``2025'';
                        (B) by redesignating subsections (c) and (d) as
                    subsections (d) and (e), respectively;
                        (C) by inserting after subsection (b) the
                    following:
        ``(c) 2026 Through 2031 Crop Years.--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:
                ``(1) In the case of wheat, $3.72 per bushel.
                ``(2) In the case of corn, $2.42 per bushel.
                ``(3) In the case of grain sorghum, $2.42 per bushel.
                ``(4) In the case of barley, $2.75 per bushel.
                ``(5) In the case of oats, $2.20 per bushel.
                ``(6) In the case of upland cotton, $0.55 per pound.
                ``(7) In the case of extra long staple cotton, $1.00 per
            pound.
                ``(8) In the case of long grain rice, $7.70 per
            hundredweight.
                ``(9) In the case of medium grain rice, $7.70 per
            hundredweight.
                ``(10) In the case of soybeans, $6.82 per bushel.
                ``(11) In the case of other oilseeds, $11.10 per
            hundredweight for each of the following kinds of oilseeds:
                        ``(A) Sunflower seed.
                        ``(B) Rapeseed.
                        ``(C) Canola.
                        ``(D) Safflower.
                        ``(E) Flaxseed.
                        ``(F) Mustard seed.
                        ``(G) Crambe.
                        ``(H) Sesame seed.
                        ``(I) Other oilseeds designated by the Secretary.
                ``(12) In the case of dry peas, $6.87 per hundredweight.
                ``(13) In the case of lentils, $14.30 per hundredweight.
                ``(14) In the case of small chickpeas, $11.00 per
            hundredweight.
                ``(15) In the case of large chickpeas, $15.40 per
            hundredweight.
                ``(16) In the case of graded wool, $1.60 per pound.
                ``(17) In the case of nongraded wool, $0.55 per pound.
                ``(18) In the case of mohair, $5.00 per pound.
                ``(19) In the case of honey, $1.50 per pound.
                ``(20) In the case of peanuts, $390 per ton.'';
                        (D) in subsection (d) (as so redesignated), by
                    striking ``(a)(11) and (b)(11)'' and inserting
                    ``(a)(11), (b)(11), and (c)(11)''; and
                        (E) by amending subsection (e) (as so redesignated)
                    to read as follows:
        ``(e) Special Rule for Seed Cotton and Corn.--
                ``(1) In general.--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--
                        ``(A) for seed cotton, $0.30 per pound; and
                        ``(B) for corn, $3.30 per bushel.
                ``(2) Effect.--Nothing in this subsection authorizes any
            nonrecourse marketing assistance loan under this subtitle for
            seed cotton.''.
                (3) Payment of cotton storage costs.--Section 1204(g) of
            the Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended--
                        (A) by striking ``Effective'' and inserting the
                    following:
                ``(1) Crop years 2014 through 2025.--Effective'';
                        (B) in paragraph (1) (as so designated), by
                    striking ``2023'' and inserting ``2025''; and
                        (C) by adding at the end the following:
                ``(2) Payment of cotton storage costs.--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--
                        ``(A) the submitted tariff rate for the current
                    marketing year; and
                        ``(B) in the case of storage in--
                                ``(i) California or Arizona, a payment rate
                            of $4.90; and
                                ``(ii) any other State, a payment rate of
                            $3.00.''.
                (4) Loan deficiency payments.--
                        (A) Continuation.--Section 1205(a)(2)(B) of the
                    Agricultural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is
                    amended by striking ``2023'' and inserting ``2031''.
                        (B) Payments in lieu of ldps.--Section 1206 of the
                    Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in
                    subsections (a) and (d), by striking ``2023'' each
                    place it appears and inserting ``2031''.
                (5) Special competitive provisions for extra long staple
            cotton.--Section 1208(a) of the Agricultural Act of 2014 (7
            U.S.C. 9038(a)) is amended, in the matter preceding paragraph
            (1), by striking ``2026'' and inserting ``2032''.
                (6) Availability of recourse loans.--Section 1209 of the
            Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in
            subsections (a)(2), (b), and (c), by striking ``2023'' each
            place it appears and inserting ``2031''.
        (j) Repayment of Marketing Loans.--Section 1204 of the Agricultural
    Act of 2014 (7 U.S.C. 9034) is amended--
                (1) in subsection (b)--
                        (A) by redesignating paragraph (1) as subparagraph
                    (A) and indenting appropriately;
                        (B) in the matter preceding subparagraph (A) (as so
                    redesignated), by striking ``The Secretary'' and
                    inserting the following:
                ``(1) In general.--The Secretary''; and
                        (C) by striking paragraph (2) and inserting the
                    following:
                        ``(B)(i) 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
                        ``(ii) 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.
                ``(2) Refund for upland cotton.--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.'';
                (2) in subsection (c)--
                        (A) by striking the period at the end and inserting
                    ``; and'';
                        (B) by striking ``at the loan rate'' and inserting
                    the following: ``at a rate that is the lesser of--
                ``(1) the loan rate''; and
                        (C) by adding at the end the following:
                ``(2) the prevailing world market price for the commodity,
            as determined and adjusted by the Secretary in accordance with
            this section.'';
                (3) in subsection (d)--
                        (A) in paragraph (1), by striking ``and medium
                    grain rice'' and inserting ``medium grain rice, and
                    extra long staple cotton'';
                        (B) by redesignating paragraphs (1) and (2) as
                    subparagraphs (A) and (B), respectively, and indenting
                    appropriately;
                        (C) in the matter preceding subparagraph (A) (as so
                    redesignated), by striking ``For purposes'' and
                    inserting the following:
                ``(1) In general.--For purposes''; and
                        (D) by adding at the end the following:
                ``(2) Upland cotton.--In the case of upland cotton, for any
            period when price quotations for Middling (M) 1\3/32\-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.''; and
                (4) in subsection (e)--
                        (A) in the subsection heading, by inserting ``Extra
                    Long Staple Cotton,'' after ``Upland Cotton,'';
                        (B) in paragraph (2)--
                                (i) in the paragraph heading, by striking
                            ``Cotton'' and inserting ``Upland cotton''; and
                                (ii) in subparagraph (B), in the matter
                            preceding clause (i), by striking ``2024'' and
                            inserting ``2032'';
                        (C) by redesignating paragraph (3) as paragraph
                    (4); and
                        (D) by inserting after paragraph (2) the following:
                ``(3) Extra long staple cotton.--The prevailing world
            market price for extra long staple cotton determined under
            subsection (d)--
                        ``(A) 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
                        ``(B) 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--
                                ``(i) to minimize potential loan
                            forfeitures;
                                ``(ii) to minimize the accumulation of
                            stocks of extra long staple cotton by the
                            Federal Government;
                                ``(iii) to ensure that extra long staple
                            cotton produced in the United States can be
                            marketed freely and competitively; and
                                ``(iv) 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--
                                        ``(I) there are insufficient
                                    current-crop price quotations; and
                                        ``(II) the forward-crop price
                                    quotation is the lowest such quotation
                                    available.''.
        (k) Economic Adjustment Assistance for Textile Mills.--Section
    1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) is amended
    by striking paragraph (2) and inserting the following:
                ``(2) Value of assistance.--The value of the assistance
            provided under paragraph (1) shall be--
                        ``(A) for the period beginning on August 1, 2013,
                    and ending on July 31, 2025, 3 cents per pound; and
                        ``(B) beginning on August 1, 2025, 5 cents per
                    pound.''.
        (l) Sugar Program Updates.--
                (1) Loan rate modifications.--Section 156 of the Federal
            Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272)
            is amended--
                        (A) in subsection (a)--
                                (i) in paragraph (4), by striking ``and''
                            at the end;
                                (ii) in paragraph (5), by striking ``2023
                            crop years.'' and inserting ``2024 crop years;
                            and''; and
                                (iii) by adding at the end the following:
                ``(6) 24.00 cents per pound for raw cane sugar for each of
            the 2025 through 2031 crop years.'';
                        (B) in subsection (b)--
                                (i) in paragraph (1), by striking ``and''
                            at the end;
                                (ii) in paragraph (2), by striking ``2023
                            crop years.'' and inserting ``2024 crop years;
                            and''; and
                                (iii) by adding at the end the following:
                ``(3) 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.''; and
                        (C) in subsection (i), by striking ``2023'' and
                    inserting ``2031''.
                (2) Adjustments to commodity credit corporation storage
            rates.--Section 167 of the Federal Agriculture Improvement and
            Reform Act of 1996 (7 U.S.C. 7287) is amended--
                        (A) by striking subsection (a) and inserting the
                    following:
        ``(a) In General.--The Commodity Credit Corporation shall establish
    rates for the storage of forfeited sugar in an amount that is not less
    than--
                ``(1) in the case of refined sugar, 34 cents per
            hundredweight per month; and
                ``(2) in the case of raw cane sugar, 27 cents per
            hundredweight per month.''; and
                        (B) in subsection (b)--
                                (i) in the subsection heading, by striking
                            ``Subsequent'' and inserting ``Prior''; and
                                (ii) by striking ``and subsequent'' and
                            inserting ``through 2024''.
                (3) Modernizing beet sugar allotments.--
                        (A) Sugar estimates.--Section 359b(a)(1) of the
                    Agricultural Adjustment Act of 1938 (7 U.S.C.
                    1359bb(a)(1)) is amended by striking ``2023'' and
                    inserting ``2031''.
                        (B) Allocation to processors.--Section 359c(g)(2)
                    of the Agricultural Adjustment Act of 1938 (7 U.S.C.
                    1359cc(g)(2)) is amended--
                                (i) by striking ``In the case'' and
                            inserting the following:
                        ``(A) In general.--Except as provided in
                    subparagraph (B), in the case''; and
                                (ii) by adding at the end the following:
                        ``(B) Exception.--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.''.
                        (C) Timing of reassignment.--Section 359e(b)(2) of
                    the Agricultural Adjustment Act of 1938 (7 U.S.C.
                    1359ee(b)(2)) is amended--
                                (i) by redesignating subparagraphs (A)
                            through (C) as clauses (i) through (iii),
                            respectively, and indenting appropriately;
                                (ii) in the matter preceding clause (i) (as
                            so redesignated), by striking ``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'' and inserting the following:
                        ``(A) In general.--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''; and
                                (iii) by adding at the end the following:
                        ``(B) Timing.--In carrying out subparagraph (A),
                    the Secretary shall--
                                ``(i) make an initial determination
                            following the publication of the World
                            Agricultural Supply and Demand Estimates (in
                            this subparagraph referred to as `WASDE')
                            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
                                ``(ii) provide for an initial reassignment
                            under subparagraph (A)(i) not later than 30
                            days after the date of the announcement of such
                            WASDE.''.
                (4) Reallocations of tariff-rate quota shortfall.--Section
            359k of the Agricultural Adjustment Act of 1938 (7 U.S.C.
            1359kk) is amended by adding at the end the following:
        ``(c) Reallocation.--
                ``(1) Initial reallocation.--Subject to paragraph (3),
            following the establishment of the tariff-rate quotas under
            subsection (a) for a quota year, the Secretary shall--
                        ``(A) determine which countries do not intend to
                    fulfill their allocation for the quota year; and
                        ``(B) reallocate any forecasted shortfall in the
                    fulfillment of the tariff-rate quotas as soon as
                    practicable.
                ``(2) Subsequent reallocation.--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.
                ``(3) Cessation of effectiveness.--Paragraphs (1) and (2)
            shall cease to be in effect if--
                        ``(A) the Agreement Suspending the Countervailing
                    Duty Investigation on Sugar from Mexico, signed
                    December 19, 2014, is terminated; and
                        ``(B) no countervailing duty order under subtitle A
                    of title VII of the Tariff Act of 1930 (19 U.S.C. 1671
                    et seq.) is in effect with respect to sugar from
                    Mexico.
        ``(d) Refined Sugar.--
                ``(1) Definition of domestic sugar industry.--In this
            subsection, the term `domestic sugar industry' means domestic--
                        ``(A) sugar beet producers and processors;
                        ``(B) producers and processors of sugar cane; and
                        ``(C) refiners of raw cane sugar.
                ``(2) Study required.--
                        ``(A) In general.--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.
                        ``(B) Elements.--In conducting the study under
                    subparagraph (A), the Secretary shall examine the
                    following:
                                ``(i) The need for--
                                        ``(I) defining `refined sugar' as
                                    having a minimum polarization of 99.8
                                    degrees or higher;
                                        ``(II) 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;
                                        ``(III) prescribing specifications
                                    for packaging type for refined sugar;
                                        ``(IV) prescribing specifications
                                    for transportation modes for refined
                                    sugar;
                                        ``(V) requiring affidavits or other
                                    evidence that sugar imported as refined
                                    sugar will not undergo further refining
                                    in the United States;
                                        ``(VI) prescribing appropriate
                                    terms and conditions to avoid unlawful
                                    sugar imports; and
                                        ``(VII) establishing other
                                    definitions, terms and conditions, or
                                    other requirements.
                                ``(ii) The potential impact of
                            modifications described in each of subclauses
                            (I) through (VII) of clause (i) on the domestic
                            sugar industry.
                                ``(iii) 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.
                        ``(C) Consultation.--In conducting the study under
                    subparagraph (A), the Secretary shall consult with
                    representatives of the domestic sugar industry and
                    users of refined sugar.
                        ``(D) Report.--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).
                ``(3) Establishment of additional terms and conditions
            permitted.--
                        ``(A) In general.--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.
                        ``(B) Promulgation of regulations.--The Secretary
                    may issue regulations under subparagraph (A) if the
                    regulations--
                                ``(i) do not have an adverse impact on the
                            domestic sugar industry; and
                                ``(ii) are consistent with the requirements
                            of this part, section 156 of the Federal
                            Agriculture Improvement and Reform Act of 1996
                            (7 U.S.C. 7272), and obligations under
                            international trade agreements that have been
                            approved by Congress.''.
                (5) Clarification of tariff-rate quota adjustments.--
            Section 359k(b)(1) of the Agricultural Adjustment Act of 1938
            (7 U.S.C. 1359kk(b)(1)) is amended, in the matter preceding
            subparagraph (A), by striking ``if there is an'' and inserting
            ``for the sole purpose of responding directly to an''
                (6) Period of effectiveness.--Section 359l(a) of the
            Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is
            amended by striking ``2023'' and inserting ``2031''.
        (m) Dairy Policy Updates.--
                (1) Dairy margin coverage production history.--
                        (A) Definition.--Section 1401(8) of the
                    Agricultural Act of 2014 (7 U.S.C. 9051(8)) is amended
                    by striking ``when the participating dairy operation
                    first registers to participate in dairy margin
                    coverage''.
                        (B) Production history of participating dairy
                    operations.--Section 1405 of the Agricultural Act of
                    2014 (7 U.S.C. 9055) is amended--
                                (i) by amending subsection (a) to read as
                            follows:
        ``(a) Production History.--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.''; and
                                (ii) by amending subsection (b) to read as
                            follows:
        ``(b) Election by New Dairy Operations.--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:
                ``(1) The volume of the actual milk marketings for the
            months the participating dairy operation has been in operation
            extrapolated to a yearly amount.
                ``(2) 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.''.
                (2) Dairy margin coverage payments.--Section 1406(a)(1)(C)
            of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is
            amended by striking ``5,000,000'' and inserting ``6,000,000''
            each place it appears.
                (3) Premiums for dairy margins.--
                        (A) Tier i.--Section 1407(b) of the Agricultural
                    Act of 2014 (7 U.S.C. 9057(b)) is amended--
                                (i) in the heading, by striking
                            ``5,000,000'' and inserting ``6,000,000''; and
                                (ii) in paragraph (1), by striking
                            ``5,000,000'' and inserting ``6,000,000''.
                        (B) Tier ii.--Section 1407(c) of the Agricultural
                    Act of 2014 (7 U.S.C. 9057(c)) is amended--
                                (i) in the heading, by striking
                            ``5,000,000'' and inserting ``6,000,000''; and
                                (ii) in paragraph (1), by striking
                            ``5,000,000'' and inserting ``6,000,000''.
                        (C) Premium discounts.--Section 1407(g) of the
                    Agricultural Act of 2014 (7 U.S.C. 9057(g)) is
                    amended--
                                (i) in paragraph (1)--
                                        (I) by striking ``2019 through
                                    2023'' and inserting ``2026 through
                                    2031''; and
                                        (II) by striking ``January 2019''
                                    and inserting ``January 2026''; and
                                (ii) in paragraph (2), by striking ``2023''
                            each place it appears and inserting ``2031''.
                (4) Duration.--Section 1409 of the Agricultural Act of 2014
            (7 U.S.C. 9059) is amended by striking ``2025'' and inserting
            ``2031''.
        (n) Suspension of Permanent Price Support Authority.--Section 1602
    of the Agricultural Act of 2014 (7 U.S.C. 9092) is amended by striking
    ``2023'' each place it appears and inserting ``2031''.
        (o) Implementation.--Section 1614(c) of the Agricultural Act of
    2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following:
                ``(5) Fiscal year 2025 reconciliation.--The Secretary shall
            make available to the Farm Service Agency to carry out section
            10101 of the Act titled `An Act to provide for reconciliation
            pursuant to title II of H. Con. Res. 14', and the amendments
            made by that section, $50,000,000, to remain available until
            expended, of which--
                        ``(A) not less than $5,000,000 shall be used to
                    carry out paragraphs (3) and (4) of subsection (b);
                        ``(B) $3,000,000 shall be used for activities
                    described in paragraph (3)(A) of this subsection;
                        ``(C) $3,000,000 shall be used for activities
                    described in paragraph (3)(B) of this subsection; and
                        ``(D) $10,000,000 shall be used to--
                                ``(i) 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 (7 U.S.C. 1637b), for all
                            products processed in the same facility or
                            facilities; and
                                ``(ii) publish the results of such surveys
                            biennially.''.
        (p) Livestock Safety Net Updates.--
                (1) In general.--Section 1501(b) of the Agricultural Act of
            2014 (7 U.S.C. 9081(b)) is amended--
                        (A) by amending paragraph (2) to read as follows:
                ``(2) Payment rates.--
                        ``(A) Losses due to predation.--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.
                        ``(B) Losses due to adverse weather or disease.--
                    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.
                        ``(C) Determination of market value.--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.
                        ``(D) Applicable date defined.--In this paragraph,
                    the term `applicable date' means, with respect to
                    livestock, as applicable--
                                ``(i) the day before the date of death of
                            the livestock; or
                                ``(ii) the day before the date of the event
                            that caused the harm to the livestock that
                            resulted in a reduced sale price.''; and
                        (B) by adding at the end the following:
                ``(5) Additional payment for unborn livestock.--
                        ``(A) In general.--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).
                        ``(B) Payment rate.--Additional payments under
                    subparagraph (A) shall be made at a rate--
                                ``(i) determined by the Secretary; and
                                ``(ii) 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.
                        ``(C) Payment amount.--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--
                                ``(i) subparagraph (A), (B), or (F) of
                            subsection (a)(4), by 1;
                                ``(ii) subparagraph (D) of such subsection,
                            by 2;
                                ``(iii) subparagraph (E) of such
                            subsection, by 12; and
                                ``(iv) 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.
                        ``(D) Unborn livestock death losses defined.--In
                    this paragraph, the term `unborn livestock death
                    losses' 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.''.
                (2) Livestock forage disaster program.--Section
            1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (7 U.S.C.
            9081(c)(3)(D)(ii)(I)) is amended--
                        (A) by striking ``1 monthly payment'' and inserting
                    ``2 monthly payments''; and
                        (B) by striking ``county for at least 8
                    consecutive'' and inserting the following: ``county for
                    not less than--
                                                ``(aa) 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
                                                ``(bb) any of the 7 of the
                                            previous 8 consecutive''.
                (3) Emergency assistance for livestock, honey bees, and
            farm-raised fish.--Section 1501(d) of the Agricultural Act of
            2014 (7 U.S.C. 9081(d)) is amended by adding at the end the
            following:
                ``(5) Assistance for losses due to bird depredation.--
                        ``(A) Payments.--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.
                        ``(B) Payment rate.--
                                ``(i) In general.--The payment rate for
                            payments under subparagraph (B) shall be
                            determined by the Secretary, taking into
                            account--
                                        ``(I) costs associated with the
                                    deterrence of piscivorous birds;
                                        ``(II) the value of lost fish and
                                    revenue due to bird depredation; and
                                        ``(III) costs associated with
                                    disease loss from bird depredation.
                                ``(ii) Minimum rate.--The payment rate for
                            payments under subparagraph (B) shall be not
                            less than $600 per acre of farm-raised fish.
                        ``(C) Payment amount.--The amount of a payment
                    under subparagraph (B) shall be the product obtained by
                    multiplying--
                                ``(i) the applicable payment rate under
                            subparagraph (C); and
                                ``(ii) 85 percent of the total number of
                            acres of farm-raised fish farms that the
                            eligible producer has in production for the
                            calendar year.''.
                (4) Tree assistance program.--Section 1501(e) of the
            Agricultural Act of 2014 (7 U.S.C. 9081(e)) is amended--
                        (A) in paragraph (2)(B), by striking ``15 percent
                    (adjusted for normal mortality)'' and inserting
                    ``normal mortality''; and
                        (B) in paragraph (3)--
                                (i) in subparagraph (A)(i), by striking
                            ``15 percent mortality (adjusted for normal
                            mortality)'' and inserting ``normal
                            mortality''; and
                                (ii) in subparagraph (B)--
                                        (I) by striking ``50'' and
                                    inserting ``65''; and
                                        (II) by striking ``15 percent
                                    damage or mortality (adjusted for
                                    normal tree damage and mortality)'' and
                                    inserting ``normal tree damage or
                                    mortality''.
        (q) Emergency Assistance for Honeybees.--In determining honeybee
    colony losses eligible for assistance under section 1501(d) of the
    Agricultural Act of 2014 (7 U.S.C. 9081(d)), the Secretary shall
    utilize a normal mortality rate of 15 percent.
        (r) Beginning Farmer and Rancher Benefit.--
                (1) Definitions.--
                        (A) In general.--Section 502(b) of the Federal Crop
                    Insurance Act (7 U.S.C. 1502(b)) is amended in
                    paragraph (3), by striking ``5'' and inserting ``10''.
                        (B) Conforming amendment.--Section 522(c)(7) of the
                    Federal Crop Insurance Act (7 U.S.C. 1522(c)(7)) is
                    amended by striking subparagraph (F).
                (2) Increase in assistance.--Section 508(e) of the Federal
            Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at
            the end the following paragraph:
                ``(9) Additional support.--
                        ``(A) In general.--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--
                                ``(i) 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
                                ``(ii) any increase otherwise made
                            available under this subsection.
                        ``(B) Percentage points adjustments.--The
                    percentage points referred to in subparagraph (A)(i)
                    are the following:
                                ``(i) 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.
                                ``(ii) 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.
                                ``(iii) 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.''.
        (s) Area-based Crop Insurance Coverage and Affordability.--
                (1) Coverage level.--Section 508(c)(4) of the Federal Crop
            Insurance Act (7 U.S.C. 1508(c)(4)) is amended--
                        (A) by amending subparagraph (A)(ii) to read as
                    follows:
                                ``(ii) may be purchased at any level not to
                            exceed--
                                        ``(I) in the case of the individual
                                    yield or revenue coverage, 85 percent;
                                        ``(II) in the case of individual
                                    yield or revenue coverage aggregated
                                    across multiple commodities, 90
                                    percent; and
                                        ``(III) in the case of area yield
                                    or revenue coverage (as determined by
                                    the Corporation), 95 percent.''; and
                        (B) in subparagraph (C)--
                                (i) in clause (ii), by striking ``14'' and
                            inserting ``10''; and
                                (ii) in clause (iii)(I), by striking ``86''
                            and inserting ``90''.
                (2) Premium cost share.--Section 508(e)(2)(H)(i) of the
            Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is
            amended by striking ``65'' and inserting ``80''.
        (t) Premium Support.--Section 508(e)(2) of the Federal Crop
    Insurance Act (7 U.S.C. 1508(e)(2)) is amended--
                (1) in subparagraph (C)(i), by striking ``64'' and
            inserting ``69'';
                (2) in subparagraph (D)(i), by striking ``59'' and
            inserting ``64'';
                (3) in subparagraph (E)(i), by striking ``55'' and
            inserting ``60'';
                (4) in subparagraph (F)(i), by striking ``48'' and
            inserting ``51''; and
                (5) in subparagraph (G)(i), by striking ``38'' and
            inserting ``41''.
        (u) Administrative and Operating Expense Adjustments.--Section
    508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended
    by adding at the end the following:
                ``(10) Additional expenses.--
                        ``(A) In general.--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.
                        ``(B) Payment amount.--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.
                        ``(C) Definitions.--In this paragraph:
                                ``(i) Eligible state.--The term `eligible
                            State' means a State--
                                        ``(I) identified in State Group 2
                                    or State Group 3 (as defined in the
                                    Standard Reinsurance Agreement for
                                    reinsurance year 2026); and
                                        ``(II) 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.
                                ``(ii) Eligible contracts.--The term
                            `eligible contract'--
                                        ``(I) means a crop insurance
                                    contract entered into by an approved
                                    insurance provider in an eligible
                                    State; and
                                        ``(II) does not include a contract
                                    for--
                                                ``(aa) catastrophic risk
                                            protection under subsection
                                            (b);
                                                ``(bb) an area-based plan
                                            of insurance or similar plan of
                                            insurance, as determined by the
                                            Corporation; or
                                                ``(cc) a policy under which
                                            an approved insurance provider
                                            does not incur loss adjustment
                                            expenses, as determined by the
                                            Corporation.
                ``(11) Specialty crops.--
                        ``(A) Minimum reimbursement.--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 (7 U.S.C. 1621 note) shall
                    be equal to or greater than the percent that is the
                    greater of the following:
                                ``(i) 17 percent of the premium used to
                            define loss ratio.
                                ``(ii) 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.
                        ``(B) Other contracts.--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.
                        ``(C) Administration.--The requirements of this
                    paragraph and the adjustments made pursuant to this
                    paragraph shall not be considered a renegotiation under
                    paragraph (8)(A).
                ``(12) A&O inflation adjustment.--
                        ``(A) In general.--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.
                        ``(B) Special rule for 2026 reinsurance year.--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.
                        ``(C) Administration.--An increase under
                    subparagraph (A)--
                                ``(i) 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
                                ``(ii) shall not be considered to be a
                            renegotiation of the Standard Reinsurance
                            Agreement for purposes of paragraph (8)(A).''.
        (v) Program Compliance and Integrity.--Section 515(l)(2) of the
    Federal Crop Insurance Act (7 U.S.C. 1515(l)(2)) is amended by striking
    ``than'' and all that follows through the period at the end and
    inserting the following: ``than--
                        ``(A) $4,000,000 for each of fiscal years 2009
                    through 2025; and
                        ``(B) $6,000,000 for fiscal year 2026 and each
                    subsequent fiscal year.''.
        (w) Reviews, Compliance, and Integrity.--Section 516(b)(2)(C)(i) of
    the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended
    by striking ``each fiscal year'' and inserting ``each of fiscal years
    2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal
    year thereafter''.
        (x) Poultry Insurance Pilot Program.--Section 523 of the Federal
    Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the
    following:
        ``(j) Poultry Insurance Pilot Program.--
                ``(1) In general.--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.
                ``(2) Stakeholder engagement.--The Corporation shall engage
            with poultry industry stakeholders in establishing the pilot
            program under paragraph (1).
                ``(3) Location.--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.
                ``(4) Approval of policy or plan.--Notwithstanding section
            508(l), the Board shall approve a policy or plan of insurance
            based on the pilot program under paragraph (1)--
                        ``(A) in accordance with section 508(h); and
                        ``(B) not later than 24 months after the date of
                    enactment of this subsection.''.

    SEC. 10102. CONSERVATION.

        (a) Grassroots Source Water Protection Program.--Section 1240O(b)
    of the Food Security Act of 1985 (16 U.S.C. 3839bb-2(b)) is amended--
                (1) in paragraph (1), by striking ``2023'' and inserting
            ``2031''; and
                (2) in paragraph (3)--
                        (A) in subparagraph (A), by striking the ``and'' at
                    the end;
                        (B) in subparagraph (B), by striking the period at
                    the end and inserting ``; and''; and
                        (C) by adding at the end the following:
                        ``(C) $1,000,000 beginning in fiscal year 2026, to
                    remain available until expended.''.
        (b) Voluntary Public Access and Habitat Incentive Program.--Section
    1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb-5(f)(1))
    is amended--
                (1) by striking the ``and'' after ``2023,''; and
                (2) by inserting ``, and $10,000,000 for each of fiscal
            years 2025 through 2031'' before the period at the end.
        (c) Feral Swine Eradication and Control Pilot Program.--Section
    2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351
    note; Public Law 115-334) is amended--
                (1) by striking ``and'' and inserting a comma; and
                (2) by inserting ``, and $15,000,000 for each of fiscal
            years 2025 through 2031'' before the period at the end.
        (d) Funding.--
                (1) In general.--Section 1241(a) of the Food Security Act
            of 1985 (16 U.S.C. 3841(a)) is amended--
                        (A) in paragraph (2), by striking subparagraphs (A)
                    through (F) and inserting the following:
                        ``(A) $625,000,000 for fiscal year 2026;
                        ``(B) $650,000,000 for fiscal year 2027;
                        ``(C) $675,000,000 for fiscal year 2028;
                        ``(D) $700,000,000 for fiscal year 2029;
                        ``(E) $700,000,000 for fiscal year 2030; and
                        ``(F) $700,000,000 for fiscal year 2031.''; and
                        (B) in paragraph (3)--
                                (i) in subparagraph (A), by striking
                            clauses (i) through (v) and inserting the
                            following:
                                ``(i) $2,655,000,000 for fiscal year 2026;
                                ``(ii) $2,855,000,000 for fiscal year 2027;
                                ``(iii) $3,255,000,000 for fiscal year
                            2028;
                                ``(iv) $3,255,000,000 for fiscal year 2029;
                                ``(v) $3,255,000,000 for fiscal year 2030;
                            and
                                ``(vi) $3,255,000,000 for fiscal year 2031;
                            and''; and
                                (ii) in subparagraph (B), by striking
                            clauses (i) through (v) and inserting the
                            following:
                                ``(i) $1,300,000,000 for fiscal year 2026;
                                ``(ii) $1,325,000,000 for fiscal year 2027;
                                ``(iii) $1,350,000,000 for fiscal year
                            2028;
                                ``(iv) $1,375,000,000 for fiscal year 2029;
                                ``(v) $1,375,000,000 for fiscal year 2030;
                            and
                                ``(vi) $1,375,000,000 for fiscal year
                            2031.''.
                (2) Regional conservation partnership program.--Section
            1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is
            amended by striking subsection (a) and inserting the following:
        ``(a) Availability of Funding.--Of the funds of the Commodity
    Credit Corporation, the Secretary shall use to carry out the program,
    to the maximum extent practicable--
                ``(1) $425,000,000 for fiscal year 2026;
                ``(2) $450,000,000 for fiscal year 2027;
                ``(3) $450,000,000 for fiscal year 2028;
                ``(4) $450,000,000 for fiscal year 2029;
                ``(5) $450,000,000 for fiscal year 2030; and
                ``(6) $450,000,000 for fiscal year 2031.''.
                (3) Watershed protection and flood prevention.--Section 15
            of the Watershed Protection and Flood Prevention Act (16 U.S.C.
            1012a) is amended--
                        (A) by striking ``$50,000,000 for fiscal year
                    2019'' and inserting ``$150,000,000 for fiscal year
                    2026''; and
                        (B) by inserting ``, to remain available until
                    expended'' before the period at the end.
                (4) Rescission.--The unobligated balances of amounts
            appropriated by section 21001(a) of Public Law 117-169 (136
            Stat. 2015) are rescinded.

    SEC. 10103. SUPPLEMENTAL AGRICULTURAL TRADE PROMOTION PROGRAM.

        (a) In General.--The Secretary shall conduct a program to encourage
    the accessibility, development, maintenance, and expansion of
    commercial export markets for United States agricultural commodities.
        (b) Funding.--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.

    SEC. 10104. RESEARCH.

        (a) Urban, Indoor, and Other Emerging Agricultural Production
    Research, Education, and Extension Initiative.--Section 1672E(d)(1)(B)
    of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
    5925g(d)(1)(B)) is amended by striking ``fiscal year 2024, to remain
    available until expended'' and inserting ``each of fiscal years 2024
    through 2031''.
        (b) Foundation for Food and Agriculture Research.--Section
    7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A))
    is amended adding at the end the following:
                                ``(iv) Further funding.--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.''.
        (c) Scholarships for Students at 1890 Institutions.--Section 1446
    of the National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 (7 U.S.C. 3222a) is amended--
                (1) in subsection (a)--
                        (A) by striking paragraph (3); and
                        (B) by redesignating paragraph (4) as paragraph
                    (3); and
                (2) in subsection (b), by amending paragraph (1) to read as
            follows:
                ``(1) Mandatory funding.--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.''.
        (d) Assistive Technology Program for Farmers With Disabilities.--
    Section 1680(c) of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5933(c)) is amended--
                (1) in the subsection heading, by striking ``Authorization
            of Appropriations'' and inserting ``Funding'';
                (2) by redesignating paragraphs (1) and (2) as paragraphs
            (2) and (3), respectively; and
                (3) by inserting before paragraph (2), as so redesignated,
            the following:
                ``(1) Mandatory funding.--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.''; and
                (4) in paragraph (2), as so redesignated--
                        (A) in the paragraph heading, by striking ``In
                    general'' and inserting ``Authorization of
                    appropriations''; and
                        (B) by striking ``Subject to paragraph (2)'' and
                    inserting ``Subject to paragraph (3)''.
        (e) Specialty Crop Research Initiative.--Section 412(k)(1)(B) of
    the Agricultural Research, Extension, and Education Reform Act of 1998
    (7 U.S.C. 7632(k)(1)(B)) is amended by striking ``section $80,000,000
    for fiscal year 2014'' and inserting the following: ``section--
                                ``(i) $80,000,000 for each of fiscal years
                            2014 through 2025; and
                                ``(ii) $175,000,000 for fiscal year 2026''.
        (f) Research Facilities Act.--Section 6 of the Research Facilities
    Act (7 U.S.C. 390d) is amended--
                (1) in the section heading by striking ``authorization of
            appropriations'' and inserting ``funding''; and
                (2) in subsection (a)--
                        (A) by striking ``(a) In General.--Subject to'' and
                    inserting the following:
        ``(a) In General.--
                ``(1) Authorization of appropriations.--Subject to''; and
                        (B) by adding at the end the following:
                ``(2) Mandatory funding.--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.''.

    SEC. 10105. SECURE RURAL SCHOOLS; FORESTRY.

        (a) Extension of Certain Provisions of Secure Rural Schools and
    Community Self-Determination Act of 2000.--
                (1)  Secure payments for states and counties containing
            federal land.--
                        (A) Secure payments.--Section 101 of the Secure
                    Rural Schools and Community Self-Determination Act of
                    2000 (16 U.S.C. 7111) is amended--
                                (i) in subsections (a) and (b), by striking
                            ``2023'' each place it appears and inserting
                            ``2026''; and
                                (ii) by adding at the end the following:
        ``(e) Special Rule for Fiscal Year 2024 Payments.--
                ``(1) State payment.--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--
                        ``(A) 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
                        ``(B) if the amount of the State payment is less
                    than or equal to the amount of the 25-percent payment,
                    the eligible county--
                                ``(i) may retain the amount of the share of
                            the eligible county of the 25-percent payment;
                            and
                                ``(ii) 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.
                ``(2) County payment.--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--
                        ``(A) 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
                        ``(B) if the amount of the county payment is less
                    than or equal to the amount of the 50-percent payment,
                    the eligible county--
                                ``(i) may retain the amount of the 50-
                            percent payment; and
                                ``(ii) if so retained, such amount shall be
                            treated as if it were received as a county
                            payment for purposes of this Act.
                ``(3) Timely payment.--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.''.
                        (B) Distribution of payments to eligible
                    counties.--Section 103(d)(2) of the Secure Rural
                    Schools and Community Self-Determination Act of 2000
                    (16 U.S.C. 7113(d)(2)) is amended by striking ``2023''
                    and inserting ``2026''.
                (2) Payments to states and counties.--Section 102 of the
            Secure Rural Schools and Community Self-Determination Act of
            2000 (16 U.S.C. 7112) is amended--
                        (A) in subsection (b)--
                                (i) in paragraph (1), by adding at the end
                            the following:
                        ``(E) Payments for each of fiscal years 2024 and
                    2025.--The election otherwise required by subparagraph
                    (A) shall not apply for each of fiscal years 2024 and
                    2025.''; and
                                (ii) in paragraph (2), by adding at the end
                            the following:
                        ``(C) Fiscal years 2024 and 2025.--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.''; and
                        (B) in subsection (d)--
                                (i) in paragraph (1), by adding at the end
                            the following:
                        ``(G) Payments for each of fiscal years 2024 and
                    2025.--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.''; and
                                (ii) in paragraph (3), by adding at the end
                            the following:
                        ``(E) Payments for each of fiscal years 2024 and
                    2025.--This paragraph does not apply for each of fiscal
                    years 2024 and 2025.''.
                (3) Extension of authority to conduct special projects on
            federal land.--
                        (A) Committee on composition waiver authority.--
                    Section 205(d)(6)(C) of the Secure Rural Schools and
                    Community Self-Determination Act of 2000 (16 U.S.C.
                    7125(d)(6)(C)) is amended by striking ``2023'' and
                    inserting ``2026''.
                        (B) Extension of authority.--Section 208 of the
                    Secure Rural Schools and Community Self-Determination
                    Act of 2000 (16 U.S.C. 7128) is amended--
                                (i) in subsection (a), by striking ``2025''
                            and inserting ``2028''; and
                                (ii) in subsection (b), by striking
                            ``2026'' and inserting ``2029''.
                (4) Extension of authority to expend county funds.--Section
            305 of the Secure Rural Schools and Community Self-
            Determination Act of 2000 (16 U.S.C. 7144) is amended--
                        (A) in subsection (a), by striking ``2025'' and
                    inserting ``2028''; and
                        (B) in subsection (b), by striking ``2026'' and
                    inserting ``2029''.
        (b) Resource Advisory Committee Pilot Program Extension.--Section
    205(g) of the Secure Rural Schools and Community Self-Determination Act
    of 2000 (16 U.S.C. 7125(g)) is amended--
                (1) in paragraph (5), by striking ``2023'' and inserting
            ``2026''; and
                (2) by striking paragraph (6).
        (c) Technical Corrections.--
                (1) Resource advisory committees.--Section 205 of the
            Secure Rural Schools and Community Self-Determination Act of
            2000 (16 U.S.C. 7125) is amended--
                        (A) in subsection (c)--
                                (i) in paragraph (1), by striking
                            ``concerned,'' and inserting ``concerned''; and
                                (ii) in paragraph (3), by striking ``the
                            date of the enactment of this Act'' and
                            inserting ``October 3, 2008''; and
                        (B) in subsection (d)(4), by striking ``to extent''
                    and inserting ``to the extent''.
                (2) Use of project funds.--Section 206(b)(2) of the Secure
            Rural Schools and Community Self-Determination Act of 2000 (16
            U.S.C. 7126(b)(2)) is amended by striking ``concerned,'' and
            inserting ``concerned''.
        (d) Rescissions.--
                (1) Competitive grants for non-federal forest landowners.--
            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 Public Law 117-169 are rescinded.
                (2) State and private forestry conservation programs.--Of
            the unobligated balances available under section 23003(a)(1) of
            subtitle D of Public Law 117-169, $100,719,676 are rescinded.

    SEC. 10106. ENERGY.

        Section 9005(g)(1)(F) of the Farm Security and Rural Investment Act
    of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking ``2024'' and
    inserting ``2031''.

    SEC. 10107. HORTICULTURE.

        (a) Plant Pest and Disease Management and Disaster Prevention.--
    Section 420(f) of the Plant Protection Act (7 U.S.C. 7721) is amended--
                (1) in paragraph (5), by striking ``and'' at the end;
                (2) by redesignating paragraph (6) as paragraph (7);
                (3) by inserting after paragraph (5) the following:
                ``(6) $75,000,000 for each of fiscal years 2018 through
            2025; and''; and
                (4) in paragraph (7) (as so redesignated), by striking
            ``$75,000,000 for fiscal year 2018'' and inserting
            ``$90,000,000 for fiscal year 2026''.
        (b) Specialty Crop Block Grants.--Section 101(l)(1) of the
    Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
    Law 108-465) is amended--
                (1) in subparagraph (D), by striking ``and'' at the end;
                (2) by redesignating subparagraph (E) as subparagraph (F);
                (3) by inserting after subparagraph (D) the following:
                        ``(E) $85,000,000 for each of fiscal years 2018
                    through 2025; and''; and
                (4) in subparagraph (F) (as so redesignated), by striking
            ``$85,000,000 for fiscal year 2018'' and inserting
            ``$100,000,000 for fiscal year 2026''.
        (c) Organic Production and Market Data Initiative.--Section
    7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (7
    U.S.C. 5925c(d)(1)) is amended--
                (1) in subparagraph (B), by striking ``and'' at the end;
                (2) in subparagraph (C), by striking the period at the end
            and inserting ``; and''; and
                (3) by adding at the end the following:
                        ``(D) $10,000,000 for the period of fiscal years
                    2026 through 2031.''.
        (d) Modernization and Improvement of International Trade Technology
    Systems and Data Collection Funding.--Section 2123(c)(4) of the Organic
    Foods Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the
    matter preceding subparagraph (A), by striking ``and $1,000,000 for
    fiscal year 2024'' and inserting ``, $1,000,000 for fiscal years 2024
    and 2025, and $5,000,000 for fiscal year 2026''.
        (e) National Organic Certification Cost-share Program.--Section
    10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (7
    U.S.C. 6523(d)(1)(C)) is amended by striking ``for each of fiscal years
    2022 through 2024'' and inserting ``for each of fiscal years 2022
    through 2031''.
        (f) Multiple Crop and Pesticide Use Survey.--Section 10109(c)(1) of
    the Agriculture Improvement Act of 2018 (Public Law 115-334; 132 Stat.
    4906) is amended to read as follows:
                ``(1) Mandatory funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall use to carry out this
            section--
                        ``(A) $500,000 for fiscal year 2019, to remain
                    available until expended;
                        ``(B) $100,000 for fiscal year 2024, to remain
                    available until expended; and
                        ``(C) $5,000,000 for fiscal year 2026, to remain
                    available until expended.''.

    SEC. 10108. MISCELLANEOUS.

        (a) Animal Disease Prevention and Management.--Section 10409A(d)(1)
    of the Animal Health Protection Act (7 U.S.C. 8308a(d)(1)) is amended
    to read as follows:
                ``(1) Mandatory funding.--
                        ``(A) Fiscal years 2023 through 2025.--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).
                        ``(B) Fiscal years 2026 through 2030.--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--
                                ``(i) not less than $10,000,000 shall be
                            made available for each such fiscal year to
                            carry out subsection (a);
                                ``(ii) not less than $70,000,000 shall be
                            made available for each such fiscal year to
                            carry out subsection (b); and
                                ``(iii) not less than $153,000,000 shall be
                            made available for each such fiscal year to
                            carry out subsection (c).
                        ``(C) Subsequent fiscal years.--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).''.
        (b) Sheep Production and Marketing Grant Program.--Section 209(c)
    of the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is
    amended--
                (1) by striking ``$2,000,000 for fiscal year 2019, and'';
            and
                (2) by inserting ``and $3,000,000 for fiscal year 2026''
            after ``fiscal year 2024''.
        (c) Miscellaneous Trust Funds.--
                (1) Pima agriculture cotton trust fund.--Section 12314 of
            the Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law
            113-79) is amended--
                        (A) in subsection (b), in the matter preceding
                    paragraph (1), by striking ``2024'' and inserting
                    ``2031''; and
                        (B) in subsection (h), by striking ``2024'' and
                    inserting ``2031''.
                (2) Agriculture wool apparel manufacturers trust fund.--
            Section 12315 of the Agricultural Act of 2014 (7 U.S.C. 7101
            note; Public Law 113-79) is amended by striking ``2024'' each
            place it appears and inserting ``2031''.
                (3) Wool research and promotion.--Section 12316(a) of the
            Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113-
            79) is amended by striking ``2024'' and inserting ``2031''.
                (4) Emergency citrus disease research and development trust
            fund.--Section 12605(d) of the Agriculture Improvement Act of
            2018 (7 U.S.C. 7632 note; Public Law 115-334) is amended by
            striking ``2024'' and inserting ``2031''.

                     TITLE II--COMMITTEE ON ARMED SERVICES

    SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
                  IMPROVING THE QUALITY OF LIFE FOR MILITARY PERSONNEL.

        (a) Appropriations.--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--
                (1) $230,480,000 for restoration and modernization costs
            under the Marine Corps Barracks 2030 initiative;
                (2) $119,000,000 for base operating support costs for the
            Marine Corps;
                (3) $1,000,000,000 for Army, Navy, Air Force, and Space
            Force sustainment, restoration, and modernizations of military
            unaccompanied housing;
                (4) $2,000,000,000 for the Defense Health Program;
                (5) $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;
                (6) $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;
                (7) $10,000,000 for the Defense Activity for Non-
            Traditional Education Support's Online Academic Skills Course
            program for members of the Armed Forces;
                (8) $100,000,000 for tuition assistance for members of the
            Armed Forces pursuant to title 10, United States Code;
                (9) $100,000,000 for child care fee assistance for members
            of the Armed Forces under part II of chapter 88 of title 10,
            United States Code;
                (10) $590,000,000 to increase the Temporary Lodging Expense
            Allowance under chapter 8 of title 37, United States Code, to
            21 days;
                (11) $100,000,000 for Department of Defense Impact Aid
            payments to local educational agencies under section 2008 of
            title 10, United States Code;
                (12) $10,000,000 for military spouse professional licensure
            under section 1784 of title 10, United States Code;
                (13) $6,000,000 for Armed Forces Retirement Home
            facilities; and
                (14) $100,000,000 for the Defense Community Infrastructure
            Program.
        (b) Temporary Increase in Percentage of Value of Authorized
    Investment in Certain Privatized Military Housing Projects.--
                (1) In general.--During the period beginning on the date of
            the enactment of this section and ending on September 30, 2029,
            the Secretary concerned shall apply--
                        (A) paragraph (1) of subsection (c) of section 2875
                    of title 10, United States Code, by substituting ``60
                    percent'' for ``33\ 1/3\ percent''; and
                        (B) paragraph (2) of such subsection by
                    substituting ``60 percent'' for ``45 percent''.
                (2) Secretary concerned defined.--In this subsection, the
            term ``Secretary concerned'' has the meaning given such term in
            section 101 of title 10, United States Code.
        (c) Temporary Authority for Acquisition or Construction of
    Privatized Military Unaccompanied Housing.--Section 2881a of title 10,
    United States Code, is amended--
                (1) by striking the heading and inserting ``Temporary
            authority for acquisition or construction of privatized
            military unaccompanied housing'';
                (2) by striking ``Secretary of the Navy'' each place it
            appears and inserting ``Secretary concerned'';
                (3) by striking ``under the pilot projects'' each place it
            appears and inserting ``pursuant to this section'';
                (4) in subsection (a)--
                        (A) by striking the heading and inserting ``In
                    General''; and
                        (B) by striking ``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'' and inserting ``use the authority under this
                    subchapter to enter into contracts with appropriate
                    private sector entities'';
                (5) in subsection (c), by striking ``privatized housing''
            and inserting ``privatized housing units'';
                (6) by redesignating subsection (f) as subsection (e); and
                (7) in subsection (e) (as so redesignated)--
                        (A) by striking ``under the pilot programs'' and
                    inserting ``under this section''; and
                        (B) by striking ``September 30, 2009'' and
                    inserting ``September 30, 2029''.

    SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
                  SHIPBUILDING.

        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--
                (1) $250,000,000 for the expansion of accelerated Training
            in Defense Manufacturing program;
                (2) $250,000,000 for United States production of turbine
            generators for shipbuilding industrial base;
                (3) $450,000,000 for United States additive manufacturing
            for wire production and machining capacity for shipbuilding
            industrial base;
                (4) $492,000,000 for next-generation shipbuilding
            techniques;
                (5) $85,000,000 for United States-made steel plate for
            shipbuilding industrial base;
                (6) $50,000,000 for machining capacity for naval propellers
            for shipbuilding industrial base;
                (7) $110,000,000 for rolled steel and fabrication facility
            for shipbuilding industrial base;
                (8) $400,000,000 for expansion of collaborative campus for
            naval shipbuilding;
                (9) $450,000,000 for application of autonomy and artificial
            intelligence to naval shipbuilding;
                (10) $500,000,000 for the adoption of advanced
            manufacturing techniques in the shipbuilding industrial base;
                (11) $500,000,000 for additional dry-dock capability;
                (12) $50,000,000 for the expansion of cold spray repair
            technologies;
                (13) $450,000,000 for additional maritime industrial
            workforce development programs;
                (14) $750,000,000 for additional supplier development
            across the naval shipbuilding industrial base;
                (15) $250,000,000 for additional advanced manufacturing
            processes across the naval shipbuilding industrial base;
                (16) $4,600,000,000 for a second Virginia-class submarine
            in fiscal year 2026;
                (17) $5,400,000,000 for two additional Guided Missile
            Destroyer (DDG) ships;
                (18) $160,000,000 for advanced procurement for Landing Ship
            Medium;
                (19) $1,803,941,000 for procurement of Landing Ship Medium;
                (20) $295,000,000 for development of a second Landing Craft
            Utility shipyard and production of additional Landing Craft
            Utility;
                (21) $100,000,000 for the procurement of commercial
            logistics ships;
                (22) $600,000,000 for the lease or purchase of new ships
            through the National Defense Sealift Fund;
                (23) $2,725,000,000 for the procurement of T-AO oilers;
                (24) $500,000,000 for cost-to-complete for rescue and
            salvage ships;
                (25) $300,000,000 for production of ship-to-shore
            connectors;
                (26) $695,000,000 for the implementation of a multi-ship
            amphibious warship contract;
                (27) $80,000,000 for accelerated development of vertical
            launch system reloading at sea;
                (28) $250,000,000 for expansion of Navy corrosion control
            programs;
                (29) $159,000,000 for leasing of ships for Marine Corps
            operations;
                (30) $1,534,000,000 for expansion of small unmanned surface
            vessel production;
                (31) $1,800,000,000 for expansion of medium unmanned
            surface vessel production;
                (32) $1,300,000,000 for expansion of unmanned underwater
            vehicle production;
                (33) $188,360,000 for the development and testing of
            maritime robotic autonomous systems and enabling technologies;
                (34) $174,000,000 for the development of a Test Resource
            Management Center robotic autonomous systems proving ground;
                (35) $250,000,000 for the development, production, and
            integration of wave-powered unmanned underwater vehicles;
                (36) $2,100,000,000 for San Antonio-class Amphibious
            Transport Dock (LPD); and
                (37) $3,700,000,000 for America-class Amphibious Assault
            Ship (LHA).

    SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
                  INTEGRATED AIR AND MISSILE DEFENSE.

        (a) Next Generation Missile Defense Technologies.--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--
                (1) $183,000,000 for Missile Defense Agency special
            programs;
                (2) $250,000,000 for development and testing of directed
            energy capabilities by the Under Secretary for Research and
            Engineering;
                (3) $300,000,000 for classified military space superiority
            programs run by the Strategic Capabilities Office;
                (4) $500,000,000 for national security space launch
            infrastructure;
                (5) $2,000,000,000 for air moving target indicator military
            satellites;
                (6) $400,000,000 for expansion of Multi-Service Advanced
            Capability Hypersonic Test Bed program;
                (7) $5,600,000,000 for development of space-based and boost
            phase intercept capabilities;
                (8) $2,400,000,000 for the development of military non-
            kinetic missile defense effects; and
                (9) $7,200,000,000 for the development, procurement, and
            integration of military space-based sensors.
        (b) Layered Homeland Defense.--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--
                (1) $2,200,000,000 for acceleration of hypersonic defense
            systems;
                (2) $800,000,000 for accelerated development and deployment
            of next-generation intercontinental ballistic missile defense
            systems;
                (3) $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;
                (4) $1,975,000,000 for improved ground-based missile
            defense radars; and
                (5) $530,000,000 for the design and construction of Missile
            Defense Agency missile instrumentation range safety ship.

    SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
                  MUNITIONS AND DEFENSE SUPPLY CHAIN RESILIENCY.

        (a) Appropriations.--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--
                (1) $400,000,000 for the development, production, and
            integration of Navy and Air Force long-range anti-ship
            missiles;
                (2) $380,000,000 for production capacity expansion for Navy
            and Air Force long-range anti-ship missiles;
                (3) $490,000,000 for the development, production, and
            integration of Navy and Air Force long-range air-to-surface
            missiles;
                (4) $94,000,000 for the development, production, and
            integration of alternative Navy and Air Force long-range air-
            to-surface missiles;
                (5) $630,000,000 for the development, production, and
            integration of long-range Navy air defense and anti-ship
            missiles;
                (6) $688,000,000 for the development, production, and
            integration of long-range multi-service cruise missiles;
                (7) $250,000,000 for production capacity expansion and
            supplier base strengthening of long-range multi-service cruise
            missiles;
                (8) $70,000,000 for the development, production, and
            integration of short-range Navy and Marine Corps anti-ship
            missiles;
                (9) $100,000,000 for the development of an anti-ship seeker
            for short-range Army ballistic missiles;
                (10) $175,000,000 for production capacity expansion for
            next-generation Army medium-range ballistic missiles;
                (11) $50,000,000 for the mitigation of diminishing
            manufacturing sources for medium-range air-to-air missiles;
                (12) $250,000,000 for the procurement of medium-range air-
            to-air missiles;
                (13) $225,000,000 for the expansion of production capacity
            for medium-range air-to-air missiles;
                (14) $50,000,000 for the development of second sources for
            components of short-range air-to-air missiles;
                (15) $325,000,000 for production capacity improvements for
            air-launched anti-radiation missiles;
                (16) $50,000,000 for the accelerated development of Army
            next-generation medium-range anti-ship ballistic missiles;
                (17) $114,000,000 for the production of Army next-
            generation medium-range ballistic missiles;
                (18) $300,000,000 for the production of Army medium-range
            ballistic missiles;
                (19) $85,000,000 for the accelerated development of Army
            long-range ballistic missiles;
                (20) $400,000,000 for the production of heavyweight
            torpedoes;
                (21) $200,000,000 for the development, procurement, and
            integration of commercial heavyweight torpedoes;
                (22) $70,000,000 for the improvement of heavyweight torpedo
            maintenance activities;
                (23) $200,000,000 for the production of lightweight
            torpedoes;
                (24) $500,000,000 for the development, procurement, and
            integration of maritime mines;
                (25) $50,000,000 for the development, procurement, and
            integration of new underwater explosives;
                (26) $55,000,000 for the development, procurement, and
            integration of lightweight multi-mission torpedoes;
                (27) $80,000,000 for the production of sonobuoys;
                (28) $150,000,000 for the development, procurement, and
            integration of air-delivered long-range maritime mines;
                (29) $61,000,000 for the acceleration of Navy expeditionary
            loitering munitions deployment;
                (30) $50,000,000 for the acceleration of one-way attack
            unmanned aerial systems with advanced autonomy;
                (31) $1,000,000,000 for the expansion of the one-way attack
            unmanned aerial systems industrial base;
                (32) $3,500,000,000 for grants made pursuant to the
            Industrial Base Fund established under section 4817 of title
            10, United States Code;
                (33) $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;
                (34) $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;
                (35) $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;
                (36) $42,000,000 for investments in second sources for
            large-diameter solid rocket motors for hypersonic missiles;
                (37) $1,000,000,000 for the creation of next-generation
            automated munitions production factories;
                (38) $170,000,000 for the development of advanced radar
            depot for repair, testing, and production of radar and
            electronic warfare systems;
                (39) $25,000,000 for the expansion of the Department of
            Defense industrial base policy analysis workforce;
                (40) $30,300,000 for the repair of Army missiles;
                (41) $100,000,000 for the production of small and medium
            ammunition;
                (42) $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
            chapter 5 of title 50, United States Code;
                (43) $10,000,000 for the expansion of the Department of
            Defense armaments cooperation workforce;
                (44) $500,000,000 for the expansion of the Defense
            Exportability Features program;
                (45) $350,000,000 for production of Navy long-range air and
            missile defense interceptors;
                (46) $93,000,000 for replacement of Navy long-range air and
            missile defense interceptors;
                (47) $100,000,000 for development of a second solid rocket
            motor source for Navy air defense and anti ship missiles;
                (48) $65,000,000 for expansion of production capacity of
            Missile Defense Agency long-range anti-ballistic missiles;
                (49) $225,000,000 for expansion of production capacity for
            Navy air defense and anti-ship missiles;
                (50) $103,300,000 for expansion of depot level maintenance
            facility for Navy long-range air and missile defense
            interceptors;
                (51) $18,000,000 for creation of domestic source for
            guidance section of Navy short-range air defense missiles;
                (52) $65,000,000 for integration of Army medium-range air
            and missile defense interceptor with Navy ships;
                (53) $176,100,000 for production of Army long-range movable
            missile defense radar;
                (54) $100,000,000 for accelerated fielding of Army short-
            range gun-based air and missile defense system;
                (55) $40,000,000 for development of low-cost alternatives
            to air and missile defense interceptors;
                (56) $50,000,000 for acceleration of Army next-generation
            shoulder-fired air defense system;
                (57) $91,000,000 for production of Army next-generation
            shoulder-fired air defense system;
                (58) $500,000,000 for development, production, and
            integration of counter-unmanned aerial systems programs;
                (59) $350,000,000 for development, production, and
            integration of non-kinetic counter-unmanned aerial systems
            programs;
                (60) $250,000,000 for development, production, and
            integration of land-based counter-unmanned aerial systems
            programs;
                (61) $200,000,000 for development, production, and
            integration of ship-based counter-unmanned aerial systems
            programs; and
                (62) $400,000,000 for acceleration of hypersonic strike
            programs.
        (b) Appropriations.--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 ``Department of Defense Credit
    Program Account'' 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: Provided, That--
                (1) 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
                (2) such amounts are available to cover all costs and
            expenditures as provided under section 149(e)(5)(B) of title
            10, United States Code.

    SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SCALING
                  LOW-COST WEAPONS INTO PRODUCTION.

        (a) Appropriations.--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--
                (1) $25,000,000 for the Office of Strategic Capital Global
            Technology Scout program;
                (2) $1,100,000,000 for the expansion of the small unmanned
            aerial system industrial base;
                (3) $400,000,000 for the development and deployment of the
            Joint Fires Network and associated joint battle management
            capabilities;
                (4) $400,000,000 for the expansion of advanced command-and-
            control tools to combatant commands and military departments;
                (5) $100,000,000 for the development of shared secure
            facilities for the defense industrial base;
                (6) $50,000,000 for the creation of additional Defense
            Innovation Unit OnRamp Hubs;
                (7) $250,000,000 for the acceleration of Strategic
            Capabilities Office programs;
                (8) $650,000,000 for the expansion of Mission Capabilities
            office joint prototyping and experimentation activities for
            military innovation;
                (9) $500,000,000 for the accelerated development and
            integration of advanced 5G/6G technologies for military use;
                (10) $25,000,000 for testing of simultaneous transmit and
            receive technology for military spectrum agility;
                (11) $50,000,000 for the development, procurement, and
            integration of high-altitude stratospheric balloons for
            military use;
                (12) $120,000,000 for the development, procurement, and
            integration of long-endurance unmanned aerial systems for
            surveillance;
                (13) $40,000,000 for the development, procurement, and
            integration of alternative positioning and navigation
            technology to enable military operations in contested
            electromagnetic environments;
                (14) $750,000,000 for the acceleration of innovative
            military logistics and energy capability development and
            deployment;
                (15) $120,000,000 for the acceleration of development of
            small, portable modular nuclear reactors for military use;
                (16) $1,000,000,000 for the expansion of programs to
            accelerate the procurement and fielding of innovative
            technologies;
                (17) $90,000,000 for the development of reusable hypersonic
            technology for military strikes;
                (18) $2,000,000,000 for the expansion of Defense Innovation
            Unit scaling of commercial technology for military use;
                (19) $500,000,000 to prevent delays in delivery of
            attritable autonomous military capabilities;
                (20) $1,000,000,000 for the development, procurement, and
            integration of low-cost cruise missiles;
                (21) $124,000,000 for improvements to Test Resource
            Management Center artificial intelligence capabilities;
                (22) $145,000,000 for the development of artificial
            intelligence to enable one-way attack unmanned aerial systems
            and naval systems;
                (23) $250,000,000 for the development of the Test Resource
            Management Center digital test environment;
                (24) $250,000,000 for the advancement of the artificial
            intelligence ecosystem;
                (25) $250,000,000 for the expansion of Cyber Command
            artificial intelligence lines of effort;
                (26) $250,000,000 for the acceleration of the Quantum
            Benchmarking Initiative;
                (27) $500,000,000 for the expansion and acceleration of
            qualification activities and technical data management to
            enhance competition in defense industrial base;
                (28) $400,000,000 for the expansion of the defense
            manufacturing technology program; and
                (29) $685,000,000 for military cryptographic modernization
            activities.
        (b) Appropriations.--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 ``Department of Defense
    Credit Program Account'' 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: Provided, That--
                (1) 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
                (2) such amounts are available to cover all costs and
            expenditures as provided under section 149(e)(5)(B) of title
            10, United States Code.

    SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
                  IMPROVING THE EFFICIENCY AND CYBERSECURITY OF THE
                  DEPARTMENT OF DEFENSE.

        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--
                (1) $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;
                (2) $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;
                (3) $10,000,000 for the improvement of the budgetary and
            programmatic infrastructure of the Office of the Secretary of
            Defense; and
                (4) $20,000,000 for defense cybersecurity programs of the
            Defense Advanced Research Projects Agency.

    SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR AIR
                  SUPERIORITY.

        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--
                (1) $3,150,000,000 to increase F-15EX aircraft production;
                (2) $361,220,000 to prevent the retirement of F-22
            aircraft;
                (3) $127,460,000 to prevent the retirement of F-15E
            aircraft;
                (4) $50,000,000 to accelerate installation of F-16
            electronic warfare capability;
                (5) $116,000,000 for C-17A Mobility Aircraft Connectivity;
                (6) $84,000,000 for KC-135 Mobility Aircraft Connectivity;
                (7) $440,000,000 to increase C-130J production;
                (8) $474,000,000 to increase EA-37B production;
                (9) $300,000,000 for Air Force classified programs;
                (10) $678,000,000 to accelerate the Collaborative Combat
            Aircraft program;
                (11) $400,000,000 to accelerate production of the F-47
            aircraft;
                (12) $230,000,000 for Navy classified programs;
                (13) $500,000,000 accelerate the FA/XX aircraft;
                (14) $100,000,000 for production of Advanced Aerial
            Sensors;
                (15) $160,000,000 to accelerate V-22 nacelle improvement;
            and
                (16) $100,000,000 to accelerate production of MQ-25
            aircraft.

    SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR FORCES.

        (a) DOD Appropriations.--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--
                (1) $1,500,000,000 for risk reduction activities for the
            Sentinel intercontinental ballistic missile program;
                (2) $4,500,000,000 for acceleration of the B-21 long-range
            bomber aircraft;
                (3) $500,000,000 for improvements to the Minuteman III
            intercontinental ballistic missile system;
                (4) $100,000,000 for capability enhancements to
            intercontinental ballistic missile reentry vehicles;
                (5) $148,000,000 for the expansion of D5 missile motor
            production;
                (6) $400,000,000 to accelerate the development of Trident
            D5LE2 submarine-launched ballistic missiles;
                (7) $2,000,000,000 to accelerate the development,
            procurement, and integration of the nuclear-armed sea-launched
            cruise missile;
                (8) $22,000,000 to enhance nuclear deterrence through
            classified programs;
                (9) $168,000,000 to accelerate the production of the
            Survivable Airborne Operations Center program;
                (10) $65,000,000 to accelerate the modernization of nuclear
            command, control, and communications; and
                (11) $210,300,000 for the increased production of MH-139
            helicopters.
        (b) NNSA Appropriations.--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--
                (1) $200,000,000 to perform National Nuclear Security
            Administration Phase 1 studies pursuant to section 3211 of the
            National Nuclear Security Administration Act (50 U.S.C. 2401);
                (2) $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 (50 U.S.C. 2401);
                (3) $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 (50 U.S.C. 2401);
                (4) $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 (50 U.S.C.
            2401);
                (5) $500,000,000 to accelerate primary capability
            modernization pursuant to section 3211 of the National Nuclear
            Security Administration Act (50 U.S.C. 2401);
                (6) $500,000,000 to accelerate secondary capability
            modernization pursuant to section 3211 of the National Nuclear
            Security Administration Act (50 U.S.C. 2401); and
                (7) $100,000,000 to accelerate domestic uranium enrichment
            centrifuge deployment for defense purposes pursuant to section
            3211 of the National Nuclear Security Administration Act (50
            U.S.C. 2401).

    SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES TO IMPROVE
                  CAPABILITIES OF UNITED STATES INDO-PACIFIC COMMAND.

        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--
                (1) $365,000,000 for Army exercises and operations in the
            Western Pacific area of operations;
                (2) $53,000,000 for Special Operations Command exercises
            and operations in the Western Pacific area of operations;
                (3) $47,000,000 for Marine Corps exercises and operations
            in Western Pacific area of operations;
                (4) $90,000,000 for Air Force exercises and operations in
            Western Pacific area of operations;
                (5) $532,600,000 for the Pacific Air Force biennial large-
            scale exercise;
                (6) $19,000,000 for the development of naval small craft
            capabilities;
                (7) $35,000,000 for military additive manufacturing
            capabilities in the United States Indo-Pacific Command area of
            operations west of the international dateline;
                (8) $450,000,000 for the development of airfields within
            the area of operations of United States Indo-Pacific Command;
                (9) $1,100,000,000 for development of infrastructure within
            the area of operations of United States Indo-Pacific Command;
                (10) $124,000,000 for mission networks for United States
            Indo-Pacific Command;
                (11) $100,000,000 for Air Force regionally based cluster
            pre-position base kits;
                (12) $25,000,000 to explore the revitalization of existing
            Arctic naval infrastructure;
                (13) $90,000,000 for the accelerated development of non-
            kinetic capabilities;
                (14) $20,000,000 for United States Indo-Pacific Command
            military exercises;
                (15) $23,000,000 for anti-submarine sonar arrays;
                (16) $30,000,000 for surveillance and reconnaissance
            capabilities for United States Africa Command;
                (17) $30,000,000 for surveillance and reconnaissance
            capabilities for United States Indo-Pacific Command;
                (18) $400,000,000 for the development, coordination, and
            deployment of economic competition effects within the
            Department of Defense;
                (19) $10,000,000 for the expansion of Department of Defense
            workforce for economic competition;
                (20) $1,000,000,000 for offensive cyber operations;
                (21) $500,000,000 for personnel and operations costs
            associated with forces assigned to United States Indo-Pacific
            Command;
                (22) $300,000,000 for the procurement of mesh network
            communications capabilities for Special Operations Command
            Pacific;
                (23) $850,000,000 for the replenishment of military
            articles;
                (24) $200,000,000 for acceleration of Guam Defense System
            program;
                (25) $4,029,000,000 for classified military space
            superiority programs;
                (26) $68,000,000 for Space Force facilities improvements;
                (27) $100,000,000 for ground moving target indicator
            military satellites; and
                (28) $528,000,000 for DARC and SILENTBARKER military space
            situational awareness programs.

    SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
                  IMPROVING THE READINESS OF THE ARMED FORCES.

        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--
                (1) $1,400,000,000 for a pilot program on OPN-8 maritime
            spares and repair rotable pool;
                (2) $700,000,000 for a pilot program on OPN-8 maritime
            spares and repair rotable pool for amphibious ships;
                (3) $2,118,000,000 for spares and repairs to keep Air Force
            aircraft mission capable;
                (4) $1,500,000,000 for Army depot modernization and
            capacity enhancement;
                (5) $2,000,000,000 for Navy depot and shipyard
            modernization and capacity enhancement;
                (6) $250,000,000 for Air Force depot modernization and
            capacity enhancement;
                (7) $1,391,000,000 for the enhancement of Special
            Operations Command equipment and readiness;
                (8) $500,000,000 for National Guard unit readiness;
                (9) $400,000,000 for Marine Corps readiness and
            capabilities;
                (10) $20,000,000 for upgrades to Marine Corps utility
            helicopters;
                (11) $310,000,000 for next-generation vertical lift,
            assault, and intra-theater aeromedical evacuation aircraft;
                (12) $75,000,000 for the procurement of anti-lock braking
            systems for Army wheeled transport vehicles;
                (13) $230,000,000 for the procurement of Army wheeled
            combat vehicles;
                (14) $63,000,000 for the development of advanced rotary-
            wing engines;
                (15) $241,000,000 for the development, procurement, and
            integration of Marine Corps amphibious vehicles;
                (16) $250,000,000 for the procurement of Army tracked
            combat transport vehicles; and
                (17) $98,000,000 for additional Army light rotary-wing
            capabilities.

    SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BORDER SUPPORT AND COUNTER-
                  DRUG MISSIONS.

        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.

    SEC. 20012. DEPARTMENT OF DEFENSE OVERSIGHT.

        (a) Office of the Secretary of Defense.--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.
        (b) Oversight of Programs.--The Inspector General shall monitor
    Department of Defense activities for which funding is appropriated in
    this title, including--
                (1) programs with mutual technological dependencies;
                (2) programs with related data management and data
            ownership considerations;
                (3) programs particularly vulnerable to supply chain
            disruptions and long lead time components; and
                (4) programs involving classified matters.
        (c) Classified Matters.--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.

    SEC. 20013. MILITARY CONSTRUCTION PROJECTS AUTHORIZED.

        (a) Authorization of Appropriations.--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.
        (b) Spending Plan.--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.

    SEC. 20014. PLAN REQUIRED.

        (a) In General.--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
    (Public Law 118-47; 138 Stat. 482).
        (b) Expenditure Report.--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).

    SEC. 20015. LIMITATION ON AVAILABILITY OF FUNDS.

        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.

                TITLE III--COMMITTEE ON EDUCATION AND WORKFORCE

                        Subtitle A--Student Eligibility

    SEC. 30001. STUDENT ELIGIBILITY.

        (a) In General.--Section 484(a)(5) of the Higher Education Act of
    1965 (20 U.S.C. 1091(a)(5)) is amended to read as follows:
                ``(5) be--
                        ``(A) a citizen or national of the United States;
                        ``(B) an alien who is lawfully admitted for
                    permanent residence under the Immigration and
                    Nationality Act (8 U.S.C. 1101 et seq.);
                        ``(C) an alien who--
                                ``(i) is a citizen or national of the
                            Republic of Cuba;
                                ``(ii) is the beneficiary of an approved
                            petition under section 203(a) of the
                            Immigration and Nationality Act (8 U.S.C.
                            1153(a));
                                ``(iii) meets all eligibility requirements
                            for an immigrant visa but for whom such a visa
                            is not immediately available;
                                ``(iv) is not otherwise inadmissible under
                            section 212(a) of such Act (8 U.S.C. 1182(a));
                            and
                                ``(v) 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
                            Communique 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
                        ``(D) 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 (8 U.S.C. 1612(b)(2)(G));
                    and''.
        (b) Effective Date and Application.--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 (20 U.S.C. 1001 et
    seq.).

    SEC. 30002. AMOUNT OF NEED; COST OF ATTENDANCE; MEDIAN COST OF COLLEGE.

        (a) Amount of Need.--Section 471 of the Higher Education Act of
    1965 (20 U.S.C. 1087kk) is amended by amending paragraph (1) to read as
    follows:
                ``(1)(A) for award year 2025-2026, the cost of attendance
            of such student; or
                ``(B) for award year 2026-2027, and each subsequent award
            year, the median cost of college of the program of study of
            such student, minus''.
        (b) Cost of Attendance of a Program of Study.--
                (1) Determination of cost of attendance of a program of
            study.--
                        (A) In general.--Section 472(a) of the Higher
                    Education Act of 1965 (20 U.S.C. 1087ll(a)) is
                    amended--
                                (i) in paragraph (1), by striking
                            ``carrying the same academic workload'' and
                            inserting ``enrolled in the same program of
                            study'';
                                (ii) in paragraph (2), by striking ``same
                            course of study'' and inserting ``same program
                            of study''; and
                                (iii) in paragraph (14), by striking
                            ``program'' and inserting ``program of study''.
                        (B) Effective date.--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.
                (2) Disclosure.--Section 472(c) of the Higher Education Act
            of 1965 (20 U.S.C. 1087ll(c)) is amended--
                        (A) by inserting ``of each program of study at the
                    institution'' after ``cost of attendance''; and
                        (B) by striking ``of the institution'' and
                    inserting ``of such programs of study at the
                    institution''.
        (c) Determination of Median Cost of College.--Part F of title IV of
    the Higher Education Act of 1965 (20 U.S.C. 1087kk) is amended by
    inserting after section 472 (as so amended), the following:

    ``SEC. 472A. DETERMINATION OF MEDIAN COST OF COLLEGE.

        ``(a) In General.--For the purpose of this title, the term `median
    cost of college', 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.
        ``(b) Program of Study Defined.--In this section and section 472,
    and part D:
                ``(1) In general.--The term `program of study'--
                        ``(A) means an eligible program at an institution
                    of higher education that is classified by a combination
                    of--
                                ``(i) one or more CIP codes; and
                                ``(ii) one credential level, determined by
                            the credential awarded upon completion of the
                            program; and
                        ``(B) does not include a program of study abroad.
                ``(2) CIP code.--The term `CIP code' 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.
                ``(3) Credential level.--
                        ``(A) In general.--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.
                        ``(B) Undergraduate credential.--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)).
                        ``(C) Graduate credential.--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.''.
        (d) Exemption of Certain Assets.--
                (1) In general.--Section 480(f)(2) of the Higher Education
            Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended--
                        (A) by striking ``net value of the'' and inserting
                    the following: ``net value of--
                        ``(A) the'';
                        (B) by striking the period at the end and inserting
                    a semicolon; and
                        (C) by adding at the end the following:
                        ``(B) a family farm on which the family resides; or
                        ``(C) 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.''.
                (2) Effective date.--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.

                            Subtitle B--Loan Limits

    SEC. 30011. LOAN LIMITS.

        (a) Terminations of and Restrictions on Loan Authority.--
                (1) Termination of authority to make subsidized loans to
            undergraduate students.--Section 455(a)(3) of the Higher
            Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is amended by
            adding at the end the following:
                        ``(C) Termination of authority to make subsidized
                    loans to undergraduate students.--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--
                                ``(i) an undergraduate student shall not be
                            eligible to receive a Federal Direct Stafford
                            loan under this part; and
                                ``(ii) 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)).''.
                (2) Termination of authority to make federal direct plus
            loans to any student borrower.--Section 455(a)(3) of the Higher
            Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is further
            amended by adding at the end the following:
                        ``(D) Termination of authority to make federal
                    direct plus loans to any student borrower.--
                    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.''.
                (3) Restriction on authority to make federal direct plus
            loans to any parent borrower.--Section 455(a)(3) of the Higher
            Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is further
            amended by adding at the end the following:
                        ``(E) Restriction on authority to make federal
                    direct plus loans to any parent borrower.--
                                ``(i) In general.--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.
                                ``(ii) Exception.--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--
                                        ``(I) such student borrows the
                                    maximum annual amount of Federal Direct
                                    Unsubsidized Stafford loans such
                                    student may borrow in such academic
                                    year; and
                                        ``(II) such maximum annual amount
                                    is less than the cost of attendance of
                                    the program of study of such
                                    student.''.
                (4) Conforming amendments.--Section 455(a)(3) of the Higher
            Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is further
            amended--
                        (A) in the paragraph heading, by striking
                    ``Termination of authority to make interest subsidized
                    loans to graduate and professional students'' and
                    inserting ``Terminations of and restrictions on loan
                    authority'';
                        (B) in subparagraph (A)--
                                (i) in the heading, by striking ``In
                            general'' and inserting ``Termination of
                            authority to make subsidized loans to graduate
                            and professional students'';
                                (ii) in the matter preceding clause (i), by
                            striking ``beginning on or after July 1,
                            2012'';
                                (iii) in clause (i), by striking ``a
                            graduate'' and inserting ``beginning on or
                            after July 1, 2012, a graduate''; and
                                (iv) in clause (ii), by striking ``the
                            maximum annual amount of Federal'' and
                            inserting ``beginning on or after July 1, 2012,
                            and ending June 30, 2026, the maximum annual
                            amount of Federal''; and
                        (C) in subparagraph (B)--
                                (i) in the heading, by striking
                            ``Exception'' and inserting ``Exception for
                            subsidized loans to individuals enrolled in
                            certain course work''.
                                (ii) by striking ``Subparagraph (A)'' and
                            inserting ``For any period of instruction
                            beginning on or after July 1, 2012, and ending
                            June 30, 2026, subparagraph (A)''.
        (b) Interim Rules for Enrolled Borrowers.--Section 455(a) of the
    Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended by adding
    at the end the following:
                ``(4) Interim exception for certain students.--
                        ``(A) Application of prior limits.--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--
                                ``(i) is enrolled in a program of study at
                            an institution of higher education; and
                                ``(ii) has received a loan (or on whose
                            behalf a loan was made) under this part for
                            such program of study.
                        ``(B) Expected time to credential.--For purposes of
                    this paragraph, the expected time to credential of an
                    individual shall be equal to the lesser of--
                                ``(i) three academic years; or
                                ``(ii) the period determined by calculating
                            the difference between--
                                        ``(I) the program length (as
                                    defined in section 420W) for the
                                    program of study in which the
                                    individual is enrolled; and
                                        ``(II) the period of such program
                                    of study that such individual has
                                    completed as of the date of the
                                    determination under this
                                    subparagraph.''.
        (c) Loan Limits for Unsubsidized Loans and Certain Federal Direct
    PLUS Loans.--
                (1) Annual and aggregate unsubsidized loan limits.--Section
            455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a))
            is further amended by adding at the end the following:
                ``(5) Annual and aggregate unsubsidized loan limits.--
                        ``(A) Undergraduate students.--
                                ``(i) Annual loan limits.--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--
                                        ``(I) the amount of the median cost
                                    of college of the program of study in
                                    which the student is enrolled; and
                                        ``(II) the amount of the Federal
                                    Pell Grant under section 401 awarded to
                                    the student for such academic year.
                                ``(ii) Aggregate limits.--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.
                        ``(B) Graduate and professional students.--
                                ``(i) Annual limits.--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.
                                ``(ii) Aggregate limits.--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)--
                                        ``(I) a graduate student--
                                                ``(aa) 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
                                                ``(bb) 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--

                                                        ``(AA) $150,000,
                                                    minus

                                                        ``(BB) the amount
                                                    such student borrowed
                                                    for programs of study
                                                    described in subclauses
                                                    (I) and (II) of
                                                    subparagraph (D)(ii);
                                                    and

                                        ``(II) a professional student--
                                                ``(aa) 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
                                                ``(bb) 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--

                                                        ``(AA) $150,000,
                                                    minus

                                                        ``(BB) the amount
                                                    such student borrowed
                                                    for programs of study
                                                    described in
                                                    subparagraph (D)(i).

                        ``(C) Less than full-time enrollment.--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.
                        ``(D) Definition.--For purposes of this subsection:
                                ``(i) Graduate student.--The term `graduate
                            student' means a student enrolled in a program
                            of study that awards a graduate credential
                            (other than a professional degree) upon
                            completion of the program.
                                ``(ii) Professional student.--The term
                            `professional student' means a student enrolled
                            in a program of study that--
                                        ``(I) awards a professional degree
                                    upon completion of the program; or
                                        ``(II) provides the training
                                    described in part 141 of title 14, Code
                                    of Federal Regulations (or any
                                    successor regulations).
                                ``(iii) Undergraduate student.--The term
                            `undergraduate student' means a student
                            enrolled in a program of study that awards an
                            undergraduate credential upon completion of the
                            program.''.
                (2) Annual and aggregate federal direct plus loans limits
            for parent borrowers.--Section 455(a) of the Higher Education
            Act of 1965 (20 U.S.C. 1087e(a)) is further amended by adding
            at the end the following:
                ``(6) Annual and aggregate federal direct plus loans limits
            for parent borrowers.--
                        ``(A) Annual limits.--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--
                                ``(i) the cost of attendance of the program
                            of study of such student; minus
                                ``(ii) the maximum annual amount of Federal
                            Direct Unsubsidized Stafford loans such student
                            may borrow in such academic year.
                        ``(B) Lifetime maximum aggregate limits.--
                    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--
                                ``(i) the number of dependent students on
                            behalf of whom such parent borrows such a loan;
                            or
                                ``(ii) any amounts repaid, forgiven,
                            canceled, or otherwise discharged on any such
                            loan.''.
                (3) Lifetime maximum aggregate amount for all students.--
            Section 455(a) of the Higher Education Act of 1965 (20 U.S.C.
            1087e(a)) is further amended by adding at the end the
            following:
                ``(7) Lifetime maximum aggregate amount for all students.--
            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.''.
                (4) Institutionally determined limits.--Section 455(a) of
            the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is
            further amended by adding at the end the following:
                ``(8) Institutionally determined limits.--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.''.

                           Subtitle C--Loan Repayment

    SEC. 30021. LOAN REPAYMENT.

        (a) Transition to Income-based Repayment Plans.--
                (1) Authority to transition to income-based repayment
            plans.--
                        (A) Authority to carry out transition.--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).
                        (B) Deadline for transition.--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.
                (2) Limitation of regulatory authority.--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--
                        (A) 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 paragraph (1);
                        (B) 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 subsection (f) of this title; and
                        (C) 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).
                (3) Waiver of negotiated rulemaking.--Any guidance or
            regulations issued or modified in accordance with subparagraph
            (A) or (B) of paragraph (2) shall not be subject to negotiated
            rulemaking requirements under section 492 of the Higher
            Education Act of 1965 (20 U.S.C. 1098a).
        (b) Repayment Plans.--Section 455(d) of the Higher Education Act of
    1965 (20 U.S.C. 1087e(d)) is amended--
                (1) in paragraph (1)--
                        (A) in the matter preceding subparagraph (A), by
                    inserting ``before July 1, 2026, who has not received a
                    loan made under this part on or after July 1, 2026,''
                    after ``made under this part'';
                        (B) by amending subparagraph (D) to read as
                    follows:
                        ``(D) beginning on July 1, 2026, the income-based
                    Repayment Assistance Plan under subsection (q),
                    provided that--
                                ``(i) the borrower is required to pay each
                            outstanding loan of the borrower made under
                            this part under such Repayment Assistance Plan;
                                ``(ii) such Plan shall not be available to
                            borrowers with an excepted loan (as defined in
                            paragraph (7)); and
                                ``(iii) the borrower may not change the
                            borrower's selection of the Repayment
                            Assistance Plan except in accordance with
                            paragraph (7)(C).''; and
                        (C) in subparagraph (E)--
                                (i) by striking ``that enables borrowers
                            who have a partial financial hardship to make a
                            lower monthly payment''; and
                                (ii) by striking ``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'' and inserting ``an excepted
                            Consolidation Loan (as defined in section
                            493C(a)(2))'';
                (2) in paragraph (5), by amending subparagraph (B) to read
            as follows:
                        ``(B) repay the loan pursuant to an income-based
                    repayment plan under subsection (q) or section 493C, as
                    applicable.''; and
                (3) by adding at the end the following:
                ``(6) Termination and limitation of repayment authority.--
                        ``(A) Sunset of repayment plans available before
                    july 1, 2026.--Paragraphs (1) through (4) of this
                    subsection shall only apply to loans made under this
                    part before July 1, 2026.
                        ``(B) Prohibitions.--The Secretary may not, for any
                    loan made under this part on or after July 1, 2026--
                                ``(i) authorize a borrower of such a loan
                            to repay such loan pursuant to a repayment plan
                            that is not described in paragraph (7)(A); or
                                ``(ii) carry out or modify a repayment plan
                            that is not described in such paragraph.
                ``(7) Repayment plans for loans made on or after july 1,
            2026.--
                        ``(A) Design and selection.--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--
                                ``(i) a standard repayment plan--
                                        ``(I) with a fixed monthly
                                    repayment amount paid over a fixed
                                    period of time equal to the applicable
                                    period determined under subclause (II);
                                    and
                                        ``(II) 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--
                                                ``(aa) for a borrower with
                                            total outstanding principal of
                                            less than $25,000, a period of
                                            10 years;
                                                ``(bb) for a borrower with
                                            total outstanding principal of
                                            not less than $25,000 and less
                                            than $50,000, a period of 15
                                            years;
                                                ``(cc) for a borrower with
                                            total outstanding principal of
                                            not less than $50,000 and less
                                            than $100,000, a period of 20
                                            years; and
                                                ``(dd) for a borrower with
                                            total outstanding principal of
                                            $100,000 or more, a period of
                                            25 years; or
                                ``(ii) the income-based Repayment
                            Assistance Plan under subsection (q).
                        ``(B) Selection by secretary.--If a borrower of a
                    loan made under this part on or after July 1, 2026,
                    does not select a repayment plan described in
                    subparagraph (A), the Secretary shall provide the
                    borrower with the standard repayment plan described in
                    subparagraph (A)(i).
                        ``(C) Selection available for each new loan;
                    selection applies to all outstanding loans.--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 subparagraph (A)(i) or
                    the Repayment Assistance Plan under subparagraph
                    (A)(ii), provided that the borrower is required to pay
                    each outstanding loan of the borrower made under this
                    part under such selected repayment plan.
                        ``(D) Permissible changes of repayment plan.--
                                ``(i) Changing from standard repayment
                            plan.--A borrower may change the borrower's
                            selection of the standard repayment plan under
                            subparagraph (A)(i), or the Secretary's
                            selection of such plan for the borrower under
                            subparagraph (C), as the case may be, to the
                            Repayment Assistance Plan under subparagraph
                            (A)(ii) at any time.
                                ``(ii) Limited change from repayment
                            assistance plan.--A borrower may not change the
                            borrower's selection of the Repayment
                            Assistance Plan under subparagraph (A)(ii),
                            except in accordance with subparagraph (C).
                        ``(E) Special rule for excepted loan borrowers with
                    loans made on or after july 1, 2026.--
                                ``(i) Standard repayment plan required.--
                            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
                            subparagraph (A)(i). The borrower shall be
                            entitled to accelerate, without penalty,
                            repayment on such loans.
                                ``(ii) Excepted loan defined.--For the
                            purposes of this paragraph, the term `excepted
                            loan' means a loan with an outstanding balance
                            that is--
                                        ``(I) a Federal Direct PLUS Loan
                                    that is made on behalf of a dependent
                                    student; or
                                        ``(II) a Federal Direct
                                    Consolidation Loan, if the proceeds of
                                    such loan were used to the discharge
                                    the liability on--
                                                ``(aa) an excepted PLUS
                                            loan, as defined in section
                                            493C(a)(1); or
                                                ``(bb) an excepted
                                            consolidation loan (as such
                                            term is defined in section
                                            493C(a)(2)(A), notwithstanding
                                            subparagraph (B) of such
                                            section).
                        ``(F) Treatment of borrowers without loans made on
                    or after july 1, 2026.--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 subparagraph (A)(i).''.
        (c) Elimination of Authority to Provide Income Contingent Repayment
    Plans.--
                (1) Repeal.--Subsection (e) of section 455 the Higher
            Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed.
                (2) Further amendments to eliminate income contingent
            repayment.--
                        (A) Section 428 of the Higher Education Act of 1965
                    (20 U.S.C. 1078) is amended--
                                (i) in subsection (b)(1)(D), by striking
                            ``be subject to income contingent repayment in
                            accordance with subsection (m)'' and inserting
                            ``be subject to income-based repayment in
                            accordance with subsection (m)''; and
                                (ii) in subsection (m)--
                                        (I) in the subsection heading, by
                                    striking ``Income Contingent and'';
                                        (II) by amending paragraph (1) to
                                    read as follows:
                ``(1) Authority of secretary to require.--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.''; and
                                        (III) in the heading of paragraph
                                    (2), by striking ``income contingent
                                    or''.
                        (B) Section 428C of the Higher Education Act of
                    1965 (20 U.S.C. 1078-3) is amended--
                                (i) in subsection (a)(3)(B)(i)(V)(aa), by
                            striking ``for the purposes of obtaining income
                            contingent repayment or income-based
                            repayment'' and inserting ``for the purposes of
                            qualifying for an income-based repayment plan
                            under section 455(q) or section 493C, as
                            applicable'';
                                (ii) in subsection (b)(5), by striking ``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'' and inserting ``be repaid
                            pursuant to an income-based repayment plan
                            under section 493C or any other repayment
                            provision under this section''; and
                                (iii) in subsection (c)--
                                        (I) in paragraph (2)(A), by
                                    striking ``or by the terms of repayment
                                    pursuant to income contingent repayment
                                    offered by the Secretary under
                                    subsection (b)(5)'' and inserting ``or
                                    by the terms of repayment pursuant to
                                    an income-based repayment plan under
                                    section 493C''; and
                                        (II) in paragraph (3)(B), by
                                    striking ``except as required by the
                                    terms of repayment pursuant to income
                                    contingent repayment offered by the
                                    Secretary under subsection (b)(5)'' and
                                    inserting ``except as required by the
                                    terms of repayment pursuant to an
                                    income-based repayment plan under
                                    section 493C''.
                        (C) Section 485(d)(1) of the Higher Education Act
                    of 1965 (20 U.S.C. 1092(d)(1)) is amended by striking
                    ``income-contingent and''.
                        (D) Section 494(a)(2) of the Higher Education Act
                    of 1965 (20 U.S.C. 1098h(a)(2)) is amended--
                                (i) in the paragraph heading, by striking
                            ``Income-contingent and income-based'' and
                            inserting ``Income-based'';
                                (ii) in subparagraph (A)--
                                        (I) in the matter preceding clause
                                    (i), by striking ``income-contingent
                                    or''; and
                                        (II) in clause (ii)(I), by
                                    inserting ``(as in effect on the day
                                    before the date of repeal of subsection
                                    (e) of section 455)'' after ``section
                                    455(e)(8)''.
        (d) Repayment Assistance Plan.--Section 455 of the Higher Education
    Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the
    following new subsection:
        ``(q) Repayment Assistance Plan.--
                ``(1) In general.--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
            `Repayment Assistance Plan'), that shall have the following
            terms and conditions:
                        ``(A) 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 paragraph (3)(B), except that
                    the borrower may not be precluded from repaying an
                    amount that exceeds such amount for any month.
                        ``(B) 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.
                        ``(C) Any principal due and not paid under
                    subparagraph (B) or paragraph (2)(B) shall be deferred.
                        ``(D) 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--
                                ``(i) 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
                                ``(ii) the date on which the borrower has
                            made 360 qualifying monthly payments.
                        ``(E) The Secretary shall repay or cancel any
                    outstanding balance of principal and interest due on a
                    loan made under this part to a borrower--
                                ``(i) who, for any period of time,
                            participated in the Repayment Assistance Plan
                            under this subsection;
                                ``(ii) whose most recent payment for such
                            loan prior to the loan cancellation under this
                            subparagraph was made under such Repayment
                            Assistance Plan; and
                                ``(iii) who has made 360 qualifying monthly
                            payments on such loan.
                        ``(F) For the purposes of this subsection, the term
                    `qualifying monthly payment' means any of the
                    following:
                                ``(i) An on-time applicable monthly payment
                            under this subsection.
                                ``(ii) 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.
                                ``(iii) 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.
                                ``(iv) 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.
                                ``(v) 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.
                                ``(vi) 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).
                                ``(vii) 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).
                        ``(G) 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).
                ``(2) Balance assistance for distressed borrowers.--
                        ``(A) Interest subsidy.--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 paragraph (1)(A) 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.
                        ``(B) Matching principal payment.--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 paragraph (1)(A) 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--
                                ``(i) the amount that is the lesser of--
                                        ``(I) $50; or
                                        ``(II) the total amount paid by the
                                    borrower for such month pursuant to
                                    paragraph (1)(A), minus
                                ``(ii) the total amount paid by the
                            borrower for such month pursuant to paragraph
                            (1)(A) that is applied to such total
                            outstanding principal balance.
                ``(3) Definitions.--In this paragraph:
                        ``(A) Adjusted gross income.--The term `adjusted
                    gross income', when used with respect to a borrower,
                    means the adjusted gross income (as such term is
                    defined in section 62 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.
                        ``(B) Applicable monthly payment.--
                                ``(i) In general.--Except as provided in
                            clause (ii), (iii), or (vi), the term
                            `applicable monthly payment' means, when used
                            with respect to a borrower, the amount equal
                            to--
                                        ``(I) the applicable base payment
                                    of the borrower, divided by 12; minus
                                        ``(II) $50 for each dependent child
                                    of the borrower.
                                ``(ii) Minimum amount.--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.
                                ``(iii) Final payment.--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.
                                ``(iv) Base payment.--The amount of the
                            applicable base payment for a borrower with an
                            adjusted gross income of--
                                        ``(I) not more than $10,000, is
                                    $120;
                                        ``(II) more than $10,000 and not
                                    more than $20,000, is 1 percent of such
                                    adjusted gross income;
                                        ``(III) more than $20,000 and not
                                    more than $30,000, is 2 percent of such
                                    adjusted gross income;
                                        ``(IV) more than $30,000 and not
                                    more than $40,000, is 3 percent of such
                                    adjusted gross income;
                                        ``(V) more than $40,000 and not
                                    more than $50,000, is 4 percent of such
                                    adjusted gross income;
                                        ``(VI) more than $50,000 and not
                                    more than $60,000, is 5 percent of such
                                    adjusted gross income;
                                        ``(VII) more than $60,000 and not
                                    more than $70,000, is 6 percent of such
                                    adjusted gross income;
                                        ``(VIII) more than $70,000 and not
                                    more than $80,000, is 7 percent of such
                                    adjusted gross income;
                                        ``(IX) more than $80,000 and not
                                    more than $90,000, is 8 percent of such
                                    adjusted gross income;
                                        ``(X) more than $90,000 and not
                                    more than $100,000, is 9 percent of
                                    such adjusted gross income; and
                                        ``(XI) more than $100,000, is 10
                                    percent of such adjusted gross income.
                                ``(v) Dependent child of the borrower.--For
                            the purposes of this paragraph, the term
                            `dependent child of the borrower' means an
                            individual who--
                                        ``(I) is under 17 years of age; and
                                        ``(II) is the borrower's dependent
                                    child or another person who lives with
                                    and receives more than one-half of
                                    their support from the borrower.
                                ``(vi) Special rule.--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--
                                        ``(I) 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
                                        ``(II) determined pursuant to this
                                    clause until the date on which the
                                    borrower provides such information to
                                    the Secretary.''.
        (e) Federal Consolidation Loans.--Section 455(g) of the Higher
    Education Act of 1965 (20 U.S.C. 1087e(g)) is amended by adding at the
    end the following new paragraph:
                ``(3) Consolidation loans made on or after july 1, 2026.--
            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.''.
        (f) Income-based Repayment.--
                (1) Amendments.--
                        (A) Excepted consolidation loan defined.--Section
                    493C(a)(2) of the Higher Education Act of 1965 (20
                    U.S.C. 1098e(a)(2)) is amended to read as follows:
                ``(2) Excepted consolidation loan.--
                        ``(A) In general.--The term `excepted consolidation
                    loan' means--
                                ``(i) 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
                                ``(ii) 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).
                        ``(B) Exclusion.--The term `excepted consolidation
                    loan' 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).''.
                        (B) Terms of income-based repayment.--Section
                    493C(b) of the Higher Education Act of 1965 (20 U.S.C.
                    1098e(b)) is amended--
                                (i) by amending paragraph (1) to read as
                            follows:
                ``(1) 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;'';
                                (ii) in paragraph (3)--
                                        (I) in subparagraph (B)--
                                                (aa) in clause (i)--

                                                        (AA) by striking
                                                    subclause (II); and

                                                        (BB) by striking
                                                    ``the borrower'' and
                                                    all the follows through
                                                    ``ends'' and inserting
                                                    ``the borrower ends'';
                                                    and

                                                (bb) in clause (ii)--

                                                        (AA) by striking
                                                    subclause (II);

                                                        (BB) by striking
                                                    ``the borrower'' and
                                                    all the follows through
                                                    ``ends'' and inserting
                                                    ``the borrower ends'';
                                                    and

                                                        (CC) by striking
                                                    ``or'' at the end;

                                (iii) by repealing paragraph (6);
                                (iv) in paragraph (7)(B)--
                                        (I) in the matter preceding clause
                                    (i), by striking ``for a period of time
                                    prescribed by the Secretary, not to
                                    exceed 25 years'' and inserting the
                                    following: ``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)'';
                                        (II) in clause (i), by inserting
                                    ``(as such paragraph was in effect on
                                    the day before the date of the repeal
                                    of paragraph (6))'' after ``paragraph
                                    (6)''; and
                                        (III) in clause (iv), by inserting
                                    ``(as such section was in effect on the
                                    day before the date of the repeal of
                                    paragraph (6))'' after ``section
                                    455(d)(1)(D)''; and
                                (v) in paragraph (8), by striking
                            ``standard repayment plan'' and inserting
                            ``standard repayment plan under section
                            428(b)(9)(A)(i) or 455(d)(1)(A), or the
                            Repayment Assistance Program under section
                            455(q)''.
                        (C) Eligibility determinations.--Section 493C(c)(2)
                    of the Higher Education Act of 1965 (20 U.S.C.
                    1098e(c)(2)) is further amended--
                                (i) in subparagraph (A), by inserting ``(as
                            in effect on the day before the date of repeal
                            of subsection (e) of section 455)'' after
                            ``section 455(e)(1)''; and
                                (ii) in subparagraph (B), by inserting
                            ``(as in effect on the day before the date of
                            repeal of subsection (e) of section 455)''
                            after ``section 455(e)(8)''.
                        (D) Termination of special terms for new borrowers
                    on and after july 1, 2014.--Section 493C of the Higher
                    Education Act of 1965 (20 U.S.C. 1098e(e)) is further
                    amended by striking subsection (e).
                (2) Effective date and application.--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.

    SEC. 30022. DEFERMENT; FORBEARANCE.

        (a) Heading Amendment.--Section 455(f) of the Higher Education Act
    of 1965 (20 U.S.C. 1087e(f)) is amended by striking the subsection
    heading and inserting the following: ``Deferment; Forbearance''.
        (b) Sunset of Economic Hardship and Unemployment Deferments.--
    Section 455(f) of the Higher Education Act of 1965 (20 U.S.C.1087e(f))
    is amended--
                (1) in paragraph (2)--
                        (A) in subparagraph (B), by striking ``not in'' and
                    inserting ``subject to paragraph (7), not in''; and
                        (B) in subparagraph (D), by striking ``not in'' and
                    inserting ``subject to paragraph (7), not in''; and
                (2) by adding at the end the following:
                ``(7) Sunset of unemployment and economic hardship
            deferments.--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).''.
        (c) Forbearance on Loans Made Under This Part on or After July 1,
    2025.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C.
    1087e(f)) is amended by adding at the end the following:
                ``(8) Forbearance on loans made under this part on or after
            july 1, 2025.--A borrower who receives a loan made under this
            part on or after July 1, 2025--
                        ``(A) 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
                        ``(B) 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--
                                ``(i) for the first 4 12-month intervals,
                            interest shall not accrue; and
                                ``(ii) for any subsequent 12-month
                            interval, interest shall accrue.''.

    SEC. 30023. LOAN REHABILITATION.

        (a) Updating Loan Rehabilitation Limits.--
                (1) FFEL and direct loans.--Section 428F(a)(5) of the
            Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(5)) is
            amended by striking ``one time'' and inserting ``two times''.
                (2) Perkins loans.--Section 464(h)(1)(D) of the Higher
            Education Act of 1965 (20 U.S.C. 1087dd(h)(1)(D)) is amended by
            striking ``once'' and inserting ``twice''.
                (3) Effective date.--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
            (20 U.S.C. 1070 et seq.).
        (b) Minimum Monthly Payment Amount.--Section 428F(a)(1)(B) of the
    Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(1)(B)) is amended by
    adding at the end the following: ``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.''.

    SEC. 30024. PUBLIC SERVICE LOAN FORGIVENESS.

        (a) Repayment Assistance Plan.--Section 455(m)(1)(A) of the Higher
    Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)) is amended--
                (1) in clause (iii), by striking ``; or'' and inserting a
            semicolon;
                (2) in clause (iv), by striking ``; and'' and inserting
            ``(as in effect on the day before the date of the repeal of
            subsection (e) of this section); or''; and
                (3) by adding at the end the following new clause:
                                ``(v) on-time payments under the Repayment
                            Assistance Plan under section 455(q); and''.
        (b) Public Service Job.--Section 455(m)(3)(B) of the Higher
    Education Act of 1965 (20 U.S.C. 1087e(m)(3)(B)) is amended--
                (1) by redesignating clauses (i) and (ii) as subclauses (I)
            and (II), respectively, and adjusting the margins accordingly;
                (2) by striking ``The term'' and inserting the following:
                                ``(i) In general.--The term''; and
                (3) by adding at the end the following:
                                ``(ii) Exclusion.--The term `public service
                            job' 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.''.

    SEC. 30025. STUDENT LOAN SERVICING.

        Paragraph (1) of section 458(a) of the Higher Education Act of 1965
    (20 U.S.C. 1087h(a)(1)) is amended to read as follows:
                ``(1) Additional mandatory funds for fiscal years 2025 and
            2026.--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.''.

                            Subtitle D--Pell Grants

    SEC. 30031. ELIGIBILITY.

        (a) Foreign Income and Federal Pell Grant Eligibility.--
                (1) Adjusted gross income defined.--Section 401(a)(2)(A) of
            the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is
            amended to read as follows:
                        ``(A) the term `adjusted gross income' means--
                                ``(i) in the case of a dependent student,
                            for the second tax year preceding the academic
                            year--
                                        ``(I) the adjusted gross income (as
                                    defined in section 62 of the Internal
                                    Revenue Code of 1986) of the student's
                                    parents; plus
                                        ``(II) the foreign income (as
                                    described in section 480(b)(5)) of the
                                    student's parents; and
                                ``(ii) in the case of an independent
                            student, for the second tax year preceding the
                            academic year--
                                        ``(I) the adjusted gross income (as
                                    defined in section 62 of the Internal
                                    Revenue Code of 1986) of the student
                                    (and the student's spouse, if
                                    applicable); plus
                                        ``(II) the foreign income (as
                                    described in section 480(b)(5)) of the
                                    student (and the student's spouse, if
                                    applicable);''.
                (2) Sunset.--Section 401(b)(1)(D) of the Higher Education
            Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended by striking
            ``A student'' and inserting ``For each academic year beginning
            before July 1, 2026, a student''.
                (3) Conforming amendment.--Section 479A(b)(1)(B) of the
            Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is
            amended--
                        (A) by striking clause (v); and
                        (B) by redesignating clauses (vi) and (vii) as
                    clauses (v) and (vi), respectively.
        (b) Definition of Full Time Enrollment for Federal Pell Grant
    Eligibility.--Section 401(a)(2) of the Higher Education Act of 1965 (20
    U.S.C. 1070a(a)(2)) is further amended--
                (1) in subparagraph (E), by striking ``and'' after the
            semicolon;
                (2) in subparagraph (F), by striking the period and
            inserting ``; and''; and
                (3) by adding at the end the following new subparagraph:
                        ``(G) notwithstanding section 481(a)(2)(A)(iii),
                    the terms `full time' and `full-time' (except with
                    respect to subsection (d)(4) when used as part of the
                    term `normal full-time workload') 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.''.
        (c) Federal Pell Grant Ineligibility Due to a High Student Aid
    Index.--Section 401(b)(1) of the Higher Education Act of 1965 (20
    U.S.C. 1070a-1(b)(1)) is amended by adding at the end the following:
                        ``(F) Ineligibility of students with a high student
                    aid index.--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.''.
        (d) No Federal Pell Grant Eligibility for Students Enrolled Less
    Than Half Time.--Section 401 of the Higher Education Act of 1965 (20
    U.S.C. 1070a) is further amended--
                (1) in subsection (b)--
                        (A) by striking ``(2) Less'' and inserting ``(2)(A)
                    Less''; and
                        (B) by inserting after subparagraph (A) (as so
                    designated by subparagraph (A) of this subsection) the
                    following new subparagraph:
                ``(B) Less than half-time enrollment.--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.'';
                (2) in subsection (c)(6)(A), by inserting ``, and the
            eligibility requirement of enrollment on at least a half-time
            basis under subsection (b)(2),'' after ``(b)(1)''; and
                (3) in subsection (d)(5)(A), by inserting ``(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)'' after ``full time''.
        (e) Effective Date and Application.--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.

    SEC. 30032. WORKFORCE PELL GRANTS.

        (a) In General.--Section 401 of the Higher Education Act of 1965
    (20 U.S.C. 1070a) is amended by adding at the end the following:--
        ``(k) Workforce Pell Grant Program.--
                ``(1) In general.--For the award year beginning on July 1,
            2026, and each subsequent award year, the Secretary shall award
            grants (to be known as `Workforce Pell Grants') to eligible
            students under paragraph (2) in accordance with this
            subsection.
                ``(2) Eligible students.--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--
                        ``(A) shall be enrolled, or accepted for
                    enrollment, in an eligible program under section
                    481(b)(3) (hereinafter referred to as an `eligible
                    workforce program'); and
                        ``(B) may not--
                                ``(i) be enrolled, or accepted for
                            enrollment, in a program of study that leads to
                            a graduate credential; or
                                ``(ii) have attained such a credential.
                ``(3) Terms and conditions of awards.--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--
                        ``(A) each use of the term `eligible program'
                    (except in subsections (b)(9)(A) and (d)(2)) shall be
                    substituted by `eligible workforce program under
                    section 481(b)(3)'; and
                        ``(B) 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.
                ``(4) Prevention of double benefits.--No eligible student
            described in paragraph (2) may concurrently receive a grant
            under both this subsection and--
                        ``(A) subsection (b); or
                        ``(B) subsection (c).
                ``(5) Duration limit.--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).''.
        (b) Program Eligibility for Workforce Pell Grants.--Section 481(b)
    of the Higher Education Act of 1965 (20 U.S.C. 1088(b)) is amended--
                (1) by redesignating paragraphs (3) and (4) as paragraphs
            (4) and (5), respectively; and
                (2) by inserting after paragraph (2) the following:
        ``(3)(A) A program is an eligible program for purposes of the
    Workforce Pell Grant program under section 401(k) only if--
                ``(i) 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;
                ``(ii) 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);
                ``(iii) the Governor of a State, after consultation with
            the State board, determines that the program--
                        ``(I) 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 (20 U.S.C.
                    2342)), or in-demand industry sectors or occupations;
                        ``(II) meets the hiring requirements of potential
                    employers in the sectors or occupations described in
                    subclause (I);
                        ``(III) either--
                                ``(aa) leads to a recognized postsecondary
                            credential that is stackable and portable
                            across more than one employer; or
                                ``(bb) with respect to students enrolled in
                            the program--
                                        ``(AA) prepares such students for
                                    employment in an occupation for which
                                    there is only one recognized
                                    postsecondary credential; and
                                        ``(BB) provides such students with
                                    such a credential upon completion of
                                    such program; and
                        ``(IV) 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--
                                ``(aa) 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
                                ``(bb) the acceptability of such credit
                            toward meeting such certificate or degree
                            program requirements; and
                ``(iv) after the Governor of such State makes the
            determination that the program meets the requirements under
            clause (iii), the Secretary determines that--
                        ``(I) 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;
                        ``(II) 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;
                        ``(III) for each award year, the program has a
                    verified job placement rate of at least 70 percent,
                    measured 180 days after completion; and
                        ``(IV) 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.
                ``(B) In this paragraph:
                        ``(i) The term `eligible institution' 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--
                                ``(I) any suspension, emergency action, or
                            termination under this title;
                                ``(II) 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
                                ``(III) 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.
                        ``(ii) The term `Governor' means the chief
                    executive of a State.
                        ``(iii) The terms `industry or sector partnership',
                    `in-demand industry sector or occupation', `recognized
                    postsecondary credential', and `State board' have the
                    meanings given such terms in section 3 of the Workforce
                    Innovation and Opportunity Act.''.
        (c) Student Eligibility.--Section 484(a)(1) of the Higher Education
    Act of 1965 (20 U.S.C. 1091(a)(1)) is amended by inserting ``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)'' after ``section 487''.
        (d) Effective Date; Applicability.--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.

    SEC. 30033. PELL SHORTFALL.

        Section 401(b)(7)(A) of the Higher Education Act of 1965 (20 U.S.C.
    1070a(b)(7)(A)) is amended--
                (1) in clause (iii)--
                        (A) by striking ``$2,170,000,000'' and inserting
                    ``$5,351,000,000''; and
                        (B) by striking ``and'' at the end;
                (2) in clause (iv)--
                        (A) by striking ``$1,236,000,000'' and inserting
                    ``$6,058,000,000''; and
                        (B) by striking `` and each succeeding fiscal
                    year.'' and inserting a semicolon; and
                (3) by adding at the end the following:
                                ``(v) $3,743,000,000 for fiscal year 2028;
                            and
                                ``(vi) $1,236,000,000 for each succeeding
                            fiscal year.''.

                           Subtitle E--Accountability

    SEC. 30041. AGREEMENTS WITH INSTITUTIONS.

        Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d)
    is amended--
                (1) in subsection (a)--
                        (A) in paragraph (5), by striking ``and'' after the
                    semicolon;
                        (B) by redesignating paragraph (6) as paragraph
                    (7); and
                        (C) by inserting after paragraph (5) the following
                    new paragraph:
                ``(6) provide annual reimbursements to the Secretary in
            accordance with the requirements under subsection (d); and'';
            and
                (2) by adding at the end the following new subsection:
        ``(d) Reimbursement Requirements.--
                ``(1) Annual reimbursements required.--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).
                ``(2) Student cohorts.--
                        ``(A) Cohorts established.--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:
                                ``(i) Completing student cohort.--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.
                                ``(ii) Undergraduate non-completing student
                            cohort.--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--
                                        ``(I) have not completed such
                                    program of study; and
                                        ``(II) are not enrolled at the
                                    institution in any program of study
                                    leading to an undergraduate credential.
                                ``(iii) Graduate non-completing student
                            cohort.--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--
                                        ``(I) have not completed such
                                    program of study; and
                                        ``(II) are not enrolled in such
                                    program.
                        ``(B) Qualifying student loan.--For the purposes of
                    this subsection, the term `qualifying student loan'
                    means a loan made under this part on or after July 1,
                    2027, that--
                                ``(i) was made to a student included in a
                            student cohort of an institution or to a parent
                            on behalf of such a student;
                                ``(ii) 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;
                                ``(iii) is not in--
                                        ``(I) 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;
                                        ``(II) a graduate fellowship
                                    deferment described in section
                                    455(f)(2)(A)(ii);
                                        ``(III) rehabilitation training
                                    program deferment described under
                                    section 455(f)(2)(A)(ii);
                                        ``(IV) an in-school deferment
                                    described under section
                                    455(f)(2)(A)(i);
                                        ``(V) a cancer deferment described
                                    under section 455(f)(3);
                                        ``(VI) a military service deferment
                                    described under section 455(f)(2)(C);
                                    or
                                        ``(VII) a post-active duty student
                                    deferment described under section 493D;
                                    and
                                ``(iv) is not in default.
                        ``(C) Special circumstances.--
                                ``(i) Multiple credentials.--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.
                                ``(ii) Treatment of certain consolidation
                            loans.--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.
                                ``(iii) Consolidation after inclusion in a
                            student cohort.--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.
                ``(3) Calculation of reimbursement.--
                        ``(A) Reimbursement payment formula.--For each
                    student cohort of an institution of higher education
                    established under this subsection, the annual
                    reimbursement for such cohort shall be equal to--
                                ``(i) the reimbursement percentage for the
                            cohort, determined in accordance with
                            subparagraph (B); multiplied by
                                ``(ii) the non-repayment balance for the
                            cohort for the award year, determined in
                            accordance with subparagraph (C).
                        ``(B) Reimbursement percentage.--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:
                                ``(i) Completing student cohorts.--The
                            reimbursement percentage of a completing
                            student cohort shall be equal to the percentage
                            determined by--
                                        ``(I) subtracting from one the
                                    quotient of--
                                                ``(aa) 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
                                                ``(bb) the median total
                                            price charged to students
                                            included in such cohort; and
                                        ``(II) multiplying the difference
                                    determined under subclause (I) by 100.
                                ``(ii) Special circumstances for completing
                            student cohorts.--
                                        ``(I) High-risk cohorts.--
                                    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.
                                        ``(II) Low-risk cohorts.--
                                    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.
                                ``(iii) Non-completing student cohorts.--
                            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--
                                        ``(I) 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--
                                                ``(aa) did not complete an
                                            undergraduate program of study
                                            at the institution within 150
                                            percent of the program length
                                            of such program; or
                                                ``(bb) 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
                                        ``(II) 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.
                        ``(C) Non-repayment loan balance.--
                                ``(i) In general.--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--
                                        ``(I) 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
                                        ``(II) 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
                                        ``(III) 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).
                                ``(ii) Special circumstances.--For the
                            purpose of calculating the non-repayment loan
                            balance of student cohorts under this
                            paragraph, the Secretary shall--
                                        ``(I) 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
                                        ``(II) for each consolidation loan
                                    in a student cohort--
                                                ``(aa) determine the
                                            percentage of the outstanding
                                            principal balance of the
                                            consolidation loan attributable
                                            to such student cohort--

                                                        ``(AA) at the time
                                                    of that loan was
                                                    included in such
                                                    cohort, in the case of
                                                    a loan consolidated
                                                    before inclusion in
                                                    such cohort; or

                                                        ``(BB) at the time
                                                    of consolidation, in
                                                    the case of a loan
                                                    consolidated after
                                                    inclusion in such
                                                    cohort; and

                                                ``(bb) 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).
                        ``(D) Total price.--With respect to a student who
                    received Federal financial assistance under this title
                    and who completes a program of study, the term `total
                    price' 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--
                                ``(i) 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
                                ``(ii) 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.
                ``(4) Notification and remittance.--Beginning with the
            first award year for which reimbursements are required under
            this subsection, and for each succeeding award year, the
            Secretary shall--
                        ``(A) 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
                        ``(B) require the institution to remit such
                    payments within 90 days of such notification.
                ``(5) Penalty for late payments.--
                        ``(A) Three-month delinquency.--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.
                        ``(B) Twelve-month delinquency.--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.
                        ``(C) Eighteen-month delinquency.--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.
                        ``(D) Two-year delinquency.--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.
                ``(6) Relief for voluntary cessation of federal direct
            loans for a program of study.--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.
                ``(7) Reservation of funds for promise grants.--
            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.''.

    SEC. 30042. CAMPUS-BASED AID PROGRAMS.

        (a) Promise Grants.--Part A of title IV of the Higher Education Act
    of 1965 (20 U.S.C. 1070c et seq.) is amended by adding at the end the
    following:

    ``Subpart 11--Promoting Real Opportunities to Maximize Investments and
                              Savings in Education

    ``SEC. 420S. PROMISE GRANTS.

        ``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.

    ``SEC. 420T. ELIGIBLE INSTITUTIONS; APPLICATION.

        ``(a) Eligible Institution.--To be eligible for a PROMISE grant
    under this subpart, an institution shall--
                ``(1) 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
                ``(2) meet the maximum total price guarantee requirements
            under subsection (c).
        ``(b) Application.--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--
                ``(1) demonstrate that the institution--
                        ``(A) meets the maximum total price guarantee
                    requirements under subsection (c); and
                        ``(B) 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;
                ``(2) describe how grant funds awarded under this subpart
            will be used by the institution to carry out activities related
            to--
                        ``(A) increasing postsecondary affordability,
                    including--
                                ``(i) the expansion and continuation of the
                            maximum total price guarantee requirements
                            under subsection (c); and
                                ``(ii) 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;
                        ``(B) increasing postsecondary access, which may
                    include--
                                ``(i) the activities described in section
                            485E of this Act; and
                                ``(ii) any other activities to be carried
                            out by the institution to increase
                            postsecondary access and expand opportunities
                            for low- and middle-income students; and
                        ``(C) increasing postsecondary student success,
                    which may include--
                                ``(i) activities to improve completion
                            rates and reduce time to credential;
                                ``(ii) 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 (29
                            U.S.C. 3102)); and
                                ``(iii) any other activities to be carried
                            out by the institution to increase value-added
                            earnings and postsecondary student success;
                ``(3) describe--
                        ``(A) how the institution will evaluate the
                    effectiveness of the institution's use of grant funds
                    awarded under this subpart; and
                        ``(B) how the institution will collect and
                    disseminate information on promising practices
                    developed with the use of such grant funds; and
                ``(4) 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.
        ``(c) Maximum Total Price Guarantee Requirements.--As a condition
    of eligibility for a PROMISE grant under this subpart, an institution
    shall--
                ``(1) 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;
                ``(2) 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
                ``(3) 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.
        ``(d) Duration of Minimum Guarantee Period.--
                ``(1) In general.--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.
                ``(2) Limitation.--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.
        ``(e) Determination of Maximum Total Price for Completion.--
                ``(1) In general.--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.
                ``(2) Multiple maximum total price guarantees.--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.

    ``SEC. 420U. GRANT AMOUNTS; FLEXIBLE USE OF FUNDS.

        ``(a) Grant Amount Formula.--
                ``(1) Formula.--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--
                        ``(A) the lesser of--
                                ``(i) the difference determined by
                            subtracting one from the quotient of--
                                        ``(I) 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
                                        ``(II) 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
                                ``(ii) the number two;
                        ``(B) 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
                        ``(C) 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--
                                ``(i) completed a program of study at the
                            institution within 100 percent of the program
                            length of such program; or
                                ``(ii) only in the case of a two-year
                            institution or a less than two-year
                            institution--
                                        ``(I) transfer to a four-year
                                    institution; and
                                        ``(II) 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.
                ``(2) Definition of low-income.--In this section, the term
            `low-income', 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).
        ``(b) Maximum Grant Amount.--Notwithstanding subsection (a), the
    maximum amount an eligible institution may receive annually for a grant
    under this subpart shall be the amount equal to--
                ``(1) 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
                ``(2) $5,000.
        ``(c) Flexible Use of Funds.--A PROMISE grant awarded under this
    subpart shall be used by an eligible institution to--
                ``(1) carry out activities included in the institution's
            application for such grant related to postsecondary
            affordability, access, and student success;
                ``(2) evaluate the effectiveness of the activities carried
            out with such grant in accordance with section 420T(b)(3)(A);
            and
                ``(3) collect and disseminate promising practices related
            to the activities carried out with such grant, in accordance
            with section 420T(b)(3)(B).

    ``SEC. 420V. AVAILABILITY OF FUNDS.

        ``(a) Used of Reserved Funds.--
                ``(1) Primary funds.--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.
                ``(2) Secondary funds.--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.
        ``(b) Reduction of Grant Amount in Case of Insufficient Funds.--
                ``(1) In general.--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).
                ``(2) Applicable percentage.--The applicable percentage
            described in this paragraph is the percentage determined by
            dividing--
                        ``(A) the amounts made available under subsection
                    (a) for the award year described in paragraph (1); by
                        ``(B) 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.

    ``SEC. 420W. DEFINITIONS.

        ``In this title:
                ``(1) Value-added earnings.--
                        ``(A) In general.--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 `value-added earnings'
                    means--
                                ``(i) the annual earnings of such student
                            measured during the applicable earnings
                            measurement period for such program (as
                            determined under subparagraph (C)); minus
                                ``(ii) in the case of a student who
                            completed a program of study that awards--
                                        ``(I) 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 (42
                                    U.S.C. 9902(2)) for such year; or
                                        ``(II) 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 (42 U.S.C.
                                    9902(2)) for such year.
                        ``(B) Geographic adjustment.--
                                ``(i) In general.--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--
                                        ``(I) the difference between
                                    clauses (i) and (ii) of such
                                    subparagraph; by
                                        ``(II) 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.
                                ``(ii) Exception.--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.
                        ``(C) Earnings measurement period.--
                                ``(i) In general.--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--
                                        ``(I) 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;
                                        ``(II) 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
                                        ``(III) 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.
                                ``(ii) Exception.--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--
                                        ``(I) 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
                                        ``(II) 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),
                            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.
                ``(2) Program length.--The term `program length' 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.''.
        (b) Institutional Refunds.--Section 484B of the Higher Education
    Act of 1965 (20 U.S.C. 1091b) is amended by adding at the end the
    following:
        ``(f) Reservation of Funds for PROMISE Grants.--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.''.

                         Subtitle F--Regulatory Relief

    SEC. 30051. REGULATORY RELIEF.

        (a) 90/10 Rule.--Section 487 of the Higher Education Act of 1965
    (20 U.S.C. 1094) is amended--
                (1) in subsection (a), by repealing paragraph (24); and
                (2) by repealing subsection (d).
        (b) Gainful Employment.--The Higher Education Act of 1965 (20
    U.S.C. 1001 et seq.) is amended--
                (1) in section 101(b)(1), by striking ``gainful employment
            in'';
                (2) in section 102--
                        (A) in subsection (b)(1)(A)(i), by striking
                    ``gainful employment in''; and
                        (B) in subsection (c)(1)(A), by striking ``gainful
                    employment in''; and
                (3) in section 481(b)(1)(A)(i), by striking ``gainful
            employment in''.
        (c) Other Repeals.--The following regulations (including any
    supplement or revision to such regulations) are repealed and shall have
    no legal effect:
                (1) Closed school discharges.--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.).
                (2) Borrower defense to repayment.--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.).
        (d) Effect of Repeals.--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.
        (e) Prohibition.--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.

                      Subtitle G--Limitation on Authority

    SEC. 30061. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR
                  ISSUE REGULATIONS AND EXECUTIVE ACTIONS.

        Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
    1088 et seq.) is amended by inserting after section 492 the following:

    ``SEC. 492A. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR
                  ISSUE REGULATIONS AND EXECUTIVE ACTIONS.

        ``(a) Draft Regulations.--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):
                ``(1) The Secretary shall determine whether the draft
            regulation, if implemented, would result in an increase in a
            subsidy cost.
                ``(2) 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.
        ``(b) Proposed or Final Regulations and Executive Actions.--
    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--
                ``(1) is economically significant; and
                ``(2) would result in an increase in a subsidy cost.
        ``(c) Relationship to Other Requirements.--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.
        ``(d) Definition.--In this section, the term `economically
    significant', 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--
                ``(1) to have an annual effect on the economy of
            $100,000,000 or more; or
                ``(2) 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.''.

                         TITLE IV--ENERGY AND COMMERCE

                               Subtitle A--Energy

    SEC. 41001. RESCISSIONS RELATING TO CERTAIN INFLATION REDUCTION ACT
                  PROGRAMS.

        (a) State-based Home Energy Efficiency Contractor Training
    Grants.--The unobligated balance of any amounts made available under
    subsection (a) of section 50123 of Public Law 117-169 (42 U.S.C.
    18795b) is rescinded.
        (b) Funding for Department of Energy Loan Programs Office.--The
    unobligated balance of any amounts made available under subsection (b)
    of section 50141 of Public Law 117-169 (136 Stat. 2042) is rescinded.
        (c) Advanced Technology Vehicle Manufacturing.--The unobligated
    balance of any amounts made available under subsection (a) of section
    50142 of Public Law 117-169 (136 Stat. 2044) is rescinded.
        (d) Energy Infrastructure Reinvestment Financing.--The unobligated
    balance of any amounts made available under subsection (a) of section
    50144 of Public Law 117-169 (136 Stat. 2044) is rescinded.
        (e) Tribal Energy Loan Guarantee Program.--The unobligated balance
    of any amounts made available under subsection (a) of section 50145 of
    Public Law 117-169 (136 Stat. 2045) is rescinded.
        (f) Transmission Facility Financing.--The unobligated balance of
    any amounts made available under subsection (a) of section 50151 of
    Public Law 117-169 (42 U.S.C. 18715) is rescinded.
        (g) Grants to Facilitate the Siting of Interstate Electricity
    Transmission Lines.--The unobligated balance of any amounts made
    available under subsection (a) of section 50152 of Public Law 117-169
    (42 U.S.C. 18715a) is rescinded.
        (h) Interregional and Offshore Wind Electricity Transmission
    Planning, Modeling, and Analysis.--The unobligated balance of any
    amounts made available under subsection (a) of section 50153 of Public
    Law 117-169 (42 U.S.C. 18715b) is rescinded.
        (i) Advanced Industrial Facilities Deployment Program.--The
    unobligated balance of any amounts made available under subsection (a)
    of section 50161 of Public Law 117-169 (42 U.S.C. 17113a) is rescinded.

    SEC. 41002. NATURAL GAS EXPORTS AND IMPORTS.

        Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by
    adding at the end the following:
        ``(g) Charge for Exportation or Importation of Natural Gas.--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.''.

    SEC. 41003. FUNDING FOR DEPARTMENT OF ENERGY LOAN GUARANTEE EXPENSES.

        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 (15 U.S.C. 720n).

    SEC. 41004. EXPEDITED PERMITTING.

        The Natural Gas Act is amended by adding after section 15 (15
    U.S.C. 717n) the following:

    ``SEC. 15A. EXPEDITED PERMITTING.

        ``(a) Definitions.--In this section:
                ``(1) Covered application.--The term `covered application'
            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.
                ``(2) Federal authorization.--The term `Federal
            authorization' has the meaning given such term in section
            15(a).
        ``(b) Expedited Review.--
                ``(1) Notification of election and payment of fee.--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--
                        ``(A) submitting to the Commission a written
                    notification--
                                ``(i) of the election; and
                                ``(ii) 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
                        ``(B) making a payment to the Secretary of the
                    Treasury in an amount that is the lesser of--
                                ``(i) one percent of the expected cost of
                            the applicable construction, as determined by
                            the applicant; or
                                ``(ii) $10,000,000 (adjusted for inflation,
                            as the Secretary of the Treasury determines
                            necessary).
                ``(2) Submission and review of applications.--
                        ``(A) Application.--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--
                                ``(i) the scope of the applicable
                            activities, including capital investment,
                            siting, temporary construction, and final
                            workforce numbers;
                                ``(ii) the industrial sector of the
                            applicant, as classified by the North American
                            Industry Classification System; and
                                ``(iii) a list of the statutes and
                            regulations that are relevant to the covered
                            application.
                        ``(B) Approval.--
                                ``(i) Standard deadline.--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)--
                                        ``(I) each Federal, State, or
                                    interstate agency identified under
                                    paragraph (1)(A)(ii) shall--
                                                ``(aa) review the relevant
                                            Natural Gas Act sections 3 or 7
                                            authorization identified under
                                            such paragraph; and
                                                ``(bb) 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
                                        ``(II) the Commission shall--
                                                ``(aa) review the covered
                                            application; and
                                                ``(bb) subject to any
                                            conditions determined by the
                                            Commission to be necessary to
                                            comply with the requirements of
                                            this Act, approve the covered
                                            application.
                                ``(ii) Extended deadline.--
                                        ``(I) Extension.--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.
                                        ``(II) Applicability.--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.
                        ``(C) Effect of failure to meet deadline.--
                                ``(i) Deemed approval.--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.
                                ``(ii) Compliance.--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.
        ``(c) Judicial Review.--
                ``(1) Reviewable claims.--
                        ``(A) In general.--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 chapter 7 of title 5, United States
                    Code, filed not later than 180 days after the date of
                    such approval by--
                                ``(i) the applicant; or
                                ``(ii) a person who has suffered, or likely
                            and imminently will suffer, direct and
                            irreparable economic harm from the approval.
                        ``(B) Claims by certain non-applicants.--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).
                ``(2) Standard of review.--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 `clear and convincing evidence' for `substantial
            evidence'.
                ``(3) Exclusive jurisdiction.--The United States Court of
            Appeals for the District of Columbia Circuit shall have
            original and exclusive jurisdiction over any claim--
                        ``(A) alleging the invalidity of subsection (b); or
                        ``(B) 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.''.

    SEC. 41005. DE-RISKING COMPENSATION PROGRAM.

        (a) Appropriation.--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:
    Provided, That no disbursements may be made under this section after
    September 30, 2034.
        (b) De-Risking Compensation Program.--
                (1) Establishment.--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.
                (2) Eligibility.--A sponsor may enroll in the program with
            respect to a covered energy project if--
                        (A) 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;
                        (B) 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
                        (C) 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.
                (3) Application.--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.
                (4) Enrollment.--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.
        (c) Fees and Premiums.--
                (1) Enrollment fee.--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.
                (2) Annual premiums.--
                        (A) In general.--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.
                        (B) Requirements.--A premium established and
                    collected from a sponsor under subparagraph (A) shall--
                                (i) be equal to 1.5 percent of the sponsor
                            capital contribution for the applicable covered
                            energy project; and
                                (ii) be paid beginning with the year of
                            enrollment and continuing until the earlier
                            of--
                                        (I) fiscal year 2033; or
                                        (II) the year in which the sponsor
                                    withdraws from the program with respect
                                    to the applicable covered energy
                                    project.
                        (C) Adjustment.--The Secretary may adjust the
                    percentage required by subparagraph (B)(i) once every
                    two fiscal years to ensure Fund solvency, except that--
                                (i) the Secretary may not vary such
                            percentage between sponsors or projects; and
                                (ii) such percentage may not exceed 5
                            percent.
                        (D) Publication.--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.
        (d) Compensation.--
                (1) In general.--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--
                        (A) 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
                        (B) 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.
                (2) Request for compensation.--A request under paragraph
            (1) shall contain the following:
                        (A) Information on each Federal approval or permit
                    relating to the covered energy project, including the
                    date on which such approval or permit was issued.
                        (B) A certified accounting of capital expenditures
                    made in reliance on each such Federal approval or
                    permit.
                        (C) A description of, and, if applicable, a
                    citation to, the applicable qualifying Federal action.
                        (D) 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.
                        (E) Any supporting economic analysis demonstrating
                    the financial effects of the covered energy project
                    being rendered unviable.
                (3) Approval.--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.
                (4) Limitations on denials.--The Secretary may not deny a
            request submitted under paragraph (1) based on--
                        (A) the merit of the applicable covered energy
                    project, as determined by the Secretary; or
                        (B) the type of technology used in the applicable
                    covered energy project.
                (5) Limitations on compensation amount.--
                        (A) Sponsors.--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.
                        (B) Available funds.--In determining the amount of
                    compensation to be provided to a sponsor under this
                    subsection--
                                (i) 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
                                (ii) 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).
        (e) De-Risking Compensation Fund.--
                (1) Establishment.--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).
                (2) Use of funds.--Amounts in the Fund--
                        (A) shall remain available until September 30,
                    2034; and
                        (B) may be used, without further appropriation--
                                (i) to make compensation payments to
                            sponsors under this section; and
                                (ii) to administer the program.
                (3) Limitation on administrative expenses.--Not more than 3
            percent of amounts in the Fund may be used to administer the
            program.
                (4) Deposits.--The Secretary shall deposit the fees and
            premiums received under subsection (c) into the Fund.
        (f) Fund Management and Investment.--The Fund shall be managed and
    invested as follows:
                (1) The Fund shall be maintained and administered by the
            Secretary.
                (2) 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.
                (3) The interest on such investments shall be credited to
            the Fund.
        (g) Definitions.--For purposes of this section:
                (1) Covered energy project.--The term ``covered energy
            project'' 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.
                (2) Fund.--The term ``Fund'' means the De-Risking
            Compensation Fund established in subsection (e)(1).
                (3) Program.--The term ``program'' means the De-Risking
            Compensation Program established in subsection (b)(1).
                (4) Qualifying federal action.--The term ``qualifying
            Federal action'' means a regulation, administrative decision,
            or executive action--
                        (A) issued or taken after a sponsor received a
                    Federal approval or permit for a covered energy
                    project; and
                        (B) 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.
                (5) Secretary.--The term ``Secretary'' means the Secretary
            of Energy.
                (6) Sponsor.--The term ``sponsor'' means an entity
            incorporated and headquartered in the United States with an
            ownership or development interest in a covered energy project.
                (7) Sponsor capital contribution.--The term ``sponsor
            capital contribution'' 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.

    SEC. 41006. STRATEGIC PETROLEUM RESERVE.

        (a) Appropriations.--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--
                (1) $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 (42 U.S.C. 6232)) of the Strategic Petroleum Reserve; and
                (2) $1,321,000,000 to acquire, by purchase, petroleum
            products for storage in the Strategic Petroleum Reserve.
        (b) Repeal of Strategic Petroleum Reserve Drawdown and Sale
    Mandate.--Section 20003 of Public Law 115-97 (42 U.S.C. 6241 note) is
    repealed.

                            Subtitle B--Environment

                        PART 1--REPEALS AND RESCISSIONS

    SEC. 42101. REPEAL AND RESCISSION RELATING TO CLEAN HEAVY-DUTY
                  VEHICLES.

        (a) Repeal.--Section 132 of the Clean Air Act (42 U.S.C. 7432) is
    repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 132 of the Clean Air Act (42 U.S.C. 7432) (as
    in effect on the day before the date of enactment of this Act) is
    rescinded.

    SEC. 42102. REPEAL AND RESCISSION RELATING TO GRANTS TO REDUCE AIR
                  POLLUTION AT PORTS.

        (a) Repeal.--Section 133 of the Clean Air Act (42 U.S.C. 7433) is
    repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 133 of the Clean Air Act (42 U.S.C. 7433) (as
    in effect on the day before the date of enactment of this Act) is
    rescinded.

    SEC. 42103. REPEAL AND RESCISSION RELATING TO GREENHOUSE GAS REDUCTION
                  FUND.

        (a) Repeal.--Section 134 of the Clean Air Act (42 U.S.C. 7434) is
    repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 134 of the Clean Air Act (42 U.S.C. 7434) (as
    in effect on the day before the date of enactment of this Act) is
    rescinded.

    SEC. 42104. REPEAL AND RESCISSION RELATING TO DIESEL EMISSIONS
                  REDUCTIONS.

        (a) Repeal.--Section 60104 of Public Law 117-169 is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60104 of Public Law 117-169 (as in effect on
    the day before the date of enactment of this Act) is rescinded.

    SEC. 42105. REPEAL AND RESCISSION RELATING TO FUNDING TO ADDRESS AIR
                  POLLUTION.

        (a) Repeal.--Section 60105 of Public Law 117-169 is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60105 of Public Law 117-169 (as in effect on
    the day before the date of enactment of this Act) is rescinded.

    SEC. 42106. REPEAL AND RESCISSION RELATING TO FUNDING TO ADDRESS AIR
                  POLLUTION AT SCHOOLS.

        (a) Repeal.--Section 60106 of Public Law 117-169 is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60106 of Public Law 117-169 (as in effect on
    the day before the date of enactment of this Act) is rescinded.

    SEC. 42107. REPEAL AND RESCISSION RELATING TO LOW EMISSIONS ELECTRICITY
                  PROGRAM.

        (a) Repeal.--Section 135 of the Clean Air Act (42 U.S.C. 7435) is
    repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 135 of the Clean Air Act (42 U.S.C. 7435) (as
    in effect on the day before the date of enactment of this Act) is
    rescinded.

    SEC. 42108. REPEAL AND RESCISSION RELATING TO FUNDING FOR SECTION
                  211(O) OF THE CLEAN AIR ACT.

        (a) Repeal.--Section 60108 of Public Law 117-169 is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60108 of Public Law 117-169 (as in effect on
    the day before the date of enactment of this Act) is rescinded.

    SEC. 42109. REPEAL AND RESCISSION RELATING TO FUNDING FOR
                  IMPLEMENTATION OF THE AMERICAN INNOVATION AND
                  MANUFACTURING ACT.

        (a) Repeal.--Section 60109 of Public Law 117-169 is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60109 of Public Law 117-169 (as in effect on
    the day before the date of enactment of this Act) is rescinded.

    SEC. 42110. REPEAL AND RESCISSION RELATING TO FUNDING FOR ENFORCEMENT
                  TECHNOLOGY AND PUBLIC INFORMATION.

        (a) Repeal.--Section 60110 of Public Law 117-169 is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60110 of Public Law 117-169 (as in effect on
    the day before the date of enactment of this Act) is rescinded.

    SEC. 42111. REPEAL AND RESCISSION RELATING TO GREENHOUSE GAS CORPORATE
                  REPORTING.

        (a) Repeal.--Section 60111 of Public Law 117-169 is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60111 of Public Law 117-169 (as in effect on
    the day before the date of enactment of this Act) is rescinded.

    SEC. 42112. REPEAL AND RESCISSION RELATING TO ENVIRONMENTAL PRODUCT
                  DECLARATION ASSISTANCE.

        (a) Repeal.--Section 60112 of Public Law 117-169 (42 U.S.C. 4321
    note) is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60112 of Public Law 117-169 (42 U.S.C. 4321
    note) (as in effect on the day before the date of enactment of this
    Act) is rescinded.

    SEC. 42113. REPEAL OF FUNDING FOR METHANE EMISSIONS AND WASTE REDUCTION
                  INCENTIVE PROGRAM FOR PETROLEUM AND NATURAL GAS SYSTEMS.

        (a) Repeal and Rescission.--Subsections (a) and (b) of section 136
    of the Clean Air Act (42 U.S.C. 7436) 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.
        (b) Conforming Amendments.--Section 136 of the Clean Air Act (42
    U.S.C. 7436) is amended--
                (1) by redesignating subsections (c) through (i) as
            subsections (a) through (g), respectively;
                (2) by striking ``subsection (c)'' each place it appears
            and inserting ``subsection (a)'';
                (3) by striking ``subsection (d)'' each place it appears
            and inserting ``subsection (b)'';
                (4) by striking ``subsection (f)'' each place it appears
            and inserting ``subsection (d)'';
                (5) in subsection (e) (as so redesignated), by striking
            ``calendar year 2024'' and inserting ``calendar year 2034'';
            and
                (6) in subsection (f) (as so redesignated)--
                        (A) by striking ``subsections (e) and (f)'' and
                    inserting ``subsections (c) and (d)''; and
                        (B) by striking ``including data collected pursuant
                    to subsection (a)(4),''.

    SEC. 42114. REPEAL AND RESCISSION RELATING TO GREENHOUSE GAS AIR
                  POLLUTION PLANS AND IMPLEMENTATION GRANTS.

        (a) Repeal.--Section 137 of the Clean Air Act (42 U.S.C. 7437) is
    repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 137 of the Clean Air Act (42 U.S.C. 7437) (as
    in effect on the day before the date of enactment of this Act) is
    rescinded.

    SEC. 42115. REPEAL AND RESCISSION RELATING TO ENVIRONMENTAL PROTECTION
                  AGENCY EFFICIENT, ACCURATE, AND TIMELY REVIEWS.

        (a) Repeal.--Section 60115 of Public Law 117-169 is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60115 of Public Law 117-169 (as in effect on
    the day before the date of enactment of this Act) is rescinded.

    SEC. 42116. REPEAL AND RESCISSION RELATING TO LOW-EMBODIED CARBON
                  LABELING FOR CONSTRUCTION MATERIALS.

        (a) Repeal.--Section 60116 of Public Law 117-169 (42 U.S.C. 4321
    note) is repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 60116 of Public Law 117-169 (42 U.S.C. 4321
    note) (as in effect on the day before the date of enactment of this
    Act) is rescinded.

    SEC. 42117. REPEAL AND RESCISSION RELATING TO ENVIRONMENTAL AND CLIMATE
                  JUSTICE BLOCK GRANTS.

        (a) Repeal.--Section 138 of the Clean Air Act (42 U.S.C. 7438) is
    repealed.
        (b) Rescission.--The unobligated balance of any amounts made
    available under section 138 of the Clean Air Act (42 U.S.C. 7438) (as
    in effect on the day before the date of enactment of this Act) is
    rescinded.

       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.

        The final rules issued by the Environmental Protection Agency
    relating to ``Revised 2023 and Later Model Year Light-Duty Vehicle
    Greenhouse Gas Emissions Standards'' (86 Fed. Reg. 74434 (December 30,
    2021)) and ``Multi-Pollutant Emissions Standards for Model Years 2027
    and Later Light-Duty and Medium-Duty Vehicles'' (89 Fed. Reg. 27842
    (April 18, 2024)) shall have no force or effect.

            PART 3--REPEAL OF NHTSA RULES RELATING TO CAFE STANDARDS

    SEC. 42301. REPEAL OF NHTSA RULES RELATING TO CAFE STANDARDS.

        The final rules issued by the National Highway Traffic Safety
    Administration relating to ``Corporate Average Fuel Economy Standards
    for Model Years 2024-2026 Passenger Cars and Light Trucks'' (87 Fed.
    Reg. 25710 (May 2, 2022)) and ``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'' (89 Fed. Reg. 52540 (June 24,
    2024)) shall have no force or effect.

                           Subtitle C--Communications

                           PART 1--SPECTRUM AUCTIONS

    SEC. 43101. IDENTIFICATION AND AUCTION OF SPECTRUM.

        (a) Identification.--
                (1) In general.--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.
                (2) Withdrawal or modification of federal government
            assignments.--The President, acting through the Assistant
            Secretary, shall--
                        (A) 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
                        (B) 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.
                (3) Rule of construction.--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.
        (b) Auction.--
                (1) In general.--The Commission shall, through 1 or more
            systems of competitive bidding under section 309(j) of the
            Communications Act of 1934 (47 U.S.C. 309(j)), 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.
                (2) Schedule.--Notwithstanding paragraph (15)(A) of section
            309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)),
            the Commission shall auction spectrum under paragraph (1) of
            this subsection according to the following schedule:
                        (A) 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.
                        (B) 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.
        (c) Auction Proceeds to Cover 110 Percent of Federal Relocation or
    Sharing Costs.--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 (47 U.S.C. 309(j)(16)(B)).
        (d) Auction Authority.--Section 309(j)(11) of the Communications
    Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a
    license or permit under this subsection shall expire March 9, 2023''
    and all that follows and inserting ``complete a system of competitive
    bidding under this subsection shall expire September 30, 2034.''.
        (e) Definitions.--In this section:
                (1) Assistant secretary.--The term ``Assistant Secretary''
            means the Assistant Secretary of Commerce for Communications
            and Information.
                (2) Commission.--The term ``Commission'' means the Federal
            Communications Commission.
                (3) Covered band.--
                        (A) In general.--The term ``covered band'' means
                    the band of frequencies between 1.3 gigahertz and 10
                    gigahertz, inclusive.
                        (B) Exclusion.--The term ``covered band'' does not
                    include the following:
                                (i) The band of frequencies between 3.1
                            gigahertz and 3.45 gigahertz, inclusive.
                                (ii) The band of frequencies between 5.925
                            gigahertz and 7.125 gigahertz, inclusive.

          PART 2--ARTIFICIAL INTELLIGENCE AND INFORMATION TECHNOLOGY
                                 MODERNIZATION

    SEC. 43201. ARTIFICIAL INTELLIGENCE AND INFORMATION TECHNOLOGY
                  MODERNIZATION INITIATIVE.

        (a) Appropriation of Funds.--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).
        (b) Authorized Uses.--The Secretary of Commerce shall use the funds
    appropriated under subsection (a) for the following:
                (1) 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.
                (2) To facilitate, within the Department of Commerce, the
            adoption of artificial intelligence models that increase
            operational efficiency and service delivery.
                (3) 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.
        (c) Moratorium.--
                (1) In general.--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.
                (2) Rule of construction.--Paragraph (1) may not be
            construed to prohibit the enforcement of--
                        (A) any law or regulation that--
                                (i) the primary purpose and effect of which
                            is to--
                                        (I) remove legal impediments to, or
                                    facilitate the deployment or operation
                                    of, an artificial intelligence model,
                                    artificial intelligence system, or
                                    automated decision system; or
                                        (II) 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;
                                (ii) 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--
                                        (I) is imposed under Federal law;
                                    or
                                        (II) 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
                                (iii) does not impose a fee or bond
                            unless--
                                        (I) such fee or bond is reasonable
                                    and cost-based; and
                                        (II) 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
                        (B) any provision of a law or regulation to the
                    extent that the violation of such provision carries a
                    criminal penalty.
        (d) Definitions.--In this section:
                (1) Artificial intelligence.--The term ``artificial
            intelligence'' has the meaning given such term in section 5002
            of the National Artificial Intelligence Initiative Act of 2020
            (15 U.S.C. 9401).
                (2) Artificial intelligence model.--The term ``artificial
            intelligence model'' 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.
                (3) Artificial intelligence system.--The term ``artificial
            intelligence system'' means any data system, hardware, tool, or
            utility that operates, in whole or in part, using artificial
            intelligence.
                (4) Automated decision system.--The term ``automated
            decision system'' 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.

                               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.

        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 ``Streamlining
    Medicaid; Medicare Savings Program Eligibility Determination and
    Enrollment'' (88 Fed. Reg. 65230).

    SEC. 44102. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO
                  ELIGIBILITY AND ENROLLMENT FOR MEDICAID, CHIP, AND THE
                  BASIC HEALTH PROGRAM.

        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 ``Medicaid Program;
    Streamlining the Medicaid, Children's Health Insurance Program, and
    Basic Health Program Application, Eligibility Determination,
    Enrollment, and Renewal Processes'' (89 Fed. Reg. 22780).

    SEC. 44103. ENSURING APPROPRIATE ADDRESS VERIFICATION UNDER THE
                  MEDICAID AND CHIP PROGRAMS.

        (a) Medicaid.--
                (1) In general.--Section 1902 of the Social Security Act
            (42 U.S.C. 1396a) is amended--
                        (A) in subsection (a)--
                                (i) in paragraph (86), by striking ``and''
                            at the end;
                                (ii) in paragraph (87), by striking the
                            period and inserting ``; and''; and
                                (iii) by inserting after paragraph (87) the
                            following new paragraph:
                ``(88) provide--
                        ``(A) 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
                        ``(B) beginning not later than October 1, 2029--
                                ``(i) 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)--
                                        ``(I) 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
                                        ``(II) 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;
                                ``(ii) for the use of such system to
                            prevent such simultaneous enrollment; and
                                ``(iii) 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).''; and
                        (B) by adding at the end the following new
                    subsections:
        ``(uu) Prevention of Enrollment Under Multiple State Plans.--
                ``(1) In general.--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--
                        ``(A) provide for the receipt of information
                    submitted by a State under subsection (a)(88)(B)(i);
                    and
                        ``(B) 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.
                ``(2) Standards.--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).
                ``(3) Implementation funding.--There are appropriated to
            the Secretary, out of amounts in the Treasury not otherwise
            appropriated, in addition to amounts otherwise available--
                        ``(A) for fiscal year 2026, $10,000,000 for
                    purposes of establishing the system required under this
                    subsection, to remain available until expended; and
                        ``(B) for fiscal year 2029, $20,000,000 for
                    purposes of maintaining such system, to remain
                    available until expended.
        ``(vv) Process to Obtain Enrollee Address Information.--
                ``(1) In general.--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 paragraph (2) and take such actions as the Secretary shall
            specify with respect to any changes to such address based on
            such information.
                ``(2) Reliable data sources described.--For purposes of
            paragraph (1), the reliable data sources described in this
            paragraph are the following:
                        ``(A) Mail returned to the State by the United
                    States Postal Service with a forwarding address.
                        ``(B) The National Change of Address Database
                    maintained by the United States Postal Service.
                        ``(C) 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.
                        ``(D) Other data sources as identified by the State
                    and approved by the Secretary.''.
                (2) Conforming amendments.--
                        (A) PARIS.--Section 1903(r)(3) of the Social
                    Security Act (42 U.S.C. 1396b(r)(3)) is amended--
                                (i) by striking ``In order'' and inserting
                            ``(A) In order'';
                                (ii) by striking ``through the Public'' and
                            inserting ``through--
                        ``(i) the Public'';
                                (iii) by striking the period at the end and
                            inserting ``; and
                        ``(ii) beginning October 1, 2029, the system
                    established by the Secretary under section 1902(uu).'';
                    and
                                (iv) by adding at the end the following new
                            subparagraph:
                ``(B) 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.''.
                        (B) Managed care.--Section 1932 of the Social
                    Security Act (42 U.S.C. 1396u-2) is amended by adding
                    at the end the following new subsection:
        ``(j) Transmission of Address Information.--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.''.
        (b) CHIP.--
                (1) In general.--Section 2107(e)(1) of the Social Security
            Act (42 U.S.C. 1397gg(e)(1)) is amended--
                        (A) by redesignating subparagraphs (H) through (U)
                    as subparagraphs (I) through (V), respectively; and
                        (B) by inserting after subparagraph (G) the
                    following new subparagraph:
                        ``(H) Section 1902(a)(88) (relating to address
                    information for enrollees and prevention of
                    simultaneous enrollments).''.
                (2) Managed care.--Section 2103(f)(3) of the Social
            Security Act (42 U.S.C. 1397cc(f)(3)) is amended by striking
            ``and (e)'' and inserting ``(e), and (j)''.

    SEC. 44104. MODIFYING CERTAIN STATE REQUIREMENTS FOR ENSURING DECEASED
                  INDIVIDUALS DO NOT REMAIN ENROLLED.

        Section 1902 of the Social Security Act (42 U.S.C. 1396a), as
    amended by section 44103, is further amended--
                (1) in subsection (a)--
                        (A) in paragraph (87), by striking ``; and'' and
                    inserting a semicolon;
                        (B) in paragraph (88), by striking the period at
                    the end and inserting ``; and''; and
                        (C) by inserting after paragraph (88) the following
                    new paragraph:
                ``(89) 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.''; and
                (2) by adding at the end the following new subsection:
        ``(ww) Verification of Certain Eligibility Criteria.--
                ``(1) In general.--For purposes of subsection (a)(89), the
            eligibility verification requirements, beginning January 1,
            2028, are as follows:
                        ``(A) Quarterly screening to verify enrollee
                    status.--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.
                        ``(B) Disenrollment under state plan.--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--
                                ``(i) 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;
                                ``(ii) disenroll such individual from the
                            State plan (or waiver of such plan); and
                                ``(iii) 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).
                        ``(C) Reinstatement of coverage in the event of
                    error.--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.
                ``(2) Rule of construction.--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).''.

    SEC. 44105. MEDICAID PROVIDER SCREENING REQUIREMENTS.

        Section 1902(kk)(1) of the Social Security Act (42 U.S.C.
    1396a(kk)(1)) is amended--
                (1) by striking ``The State'' and inserting:
                        ``(A) In general.--The State''; and
                (2) by adding at the end the following new subparagraph:
                        ``(B) Additional provider screening.--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).''.

    SEC. 44106. ADDITIONAL MEDICAID PROVIDER SCREENING REQUIREMENTS.

        Section 1902(kk)(1) of the Social Security Act (42 U.S.C.
    1396a(kk)(1)), as amended by section 44105, is further amended by
    adding at the end the following new subparagraph:
                        ``(C) Provider screening against death master
                    file.--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.''.

    SEC. 44107. REMOVING GOOD FAITH WAIVER FOR PAYMENT REDUCTION RELATED TO
                  CERTAIN ERRONEOUS EXCESS PAYMENTS UNDER MEDICAID.

        (a) In General.--Section 1903(u)(1) of the Social Security Act (42
    U.S.C. 1396b(u)(1)) is amended--
                (1) in subparagraph (B)--
                        (A) by striking ``The Secretary'' and inserting
                    ``(i) Subject to clause (ii), the Secretary''; and
                        (B) by adding at the end the following new clause:
                ``(ii) The amount waived under clause (i) for a fiscal year
            may not exceed an amount equal to the difference between--
                        ``(I) the amount of the reduction required under
                    subparagraph (A) for such fiscal year (without
                    application of this subparagraph); and
                        ``(II) 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.'';
                (2) in subparagraph (C), by striking ``he'' in each place
            it appears and inserting ``the Secretary'' in each such place;
            and
                (3) in subparagraph (D)--
                        (A) in clause (i)--
                                (i) in subclause (I), by striking ``and''
                            at the end;
                                (ii) in subclause (II), by striking the
                            period at the end and inserting ``, and''; and
                                (iii) by adding at the end the following
                            new subclause:
                ``(III) 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.''; and
                        (B) by adding at the end the following new clause:
        ``(vi) 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.''.
        (b) Effective Date.--The amendments made by subsection (a) shall
    apply beginning with respect to fiscal year 2030.

    SEC. 44108. INCREASING FREQUENCY OF ELIGIBILITY REDETERMINATIONS FOR
                  CERTAIN INDIVIDUALS.

        Section 1902(e)(14) of the Social Security Act (42 U.S.C.
    1396a(e)(14)) is amended by adding at the end the following new
    subparagraph:
                        ``(L) Frequency of eligibility redeterminations for
                    certain individuals.--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:
                                ``(i) Individuals enrolled under subsection
                            (a)(10)(A)(i)(VIII).
                                ``(ii) 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 section 5000A(f)(1)(A) 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).''.

    SEC. 44109. REVISING HOME EQUITY LIMIT FOR DETERMINING ELIGIBILITY FOR
                  LONG-TERM CARE SERVICES UNDER THE MEDICAID PROGRAM.

        (a) Revising Home Equity Limit.--Section 1917(f)(1) of the Social
    Security Act (42 U.S.C. 1396p(f)(1)) is amended--
                (1) in subparagraph (B)--
                        (A) by striking ``A State'' and inserting ``(i) A
                    State'';
                        (B) in clause (i), as inserted by subparagraph
                    (A)--
                                (i) by striking ```$500,000''' and
                            inserting ``the amount specified in
                            subparagraph (A)''; and
                                (ii) by inserting ``, in the case of an
                            individual's home that is located on a lot that
                            is zoned for agricultural use,'' after ``apply
                            subparagraph (A)''; and
                        (C) by adding at the end the following new clause:
                ``(ii) 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.''; and
                (2) in subparagraph (C)--
                        (A) by inserting ``(other than the amount specified
                    in subparagraph (B)(ii) (relating to certain non-
                    agricultural homes))'' after ``specified in this
                    paragraph''; and
                        (B) by adding at the end the following new
                    sentence: ``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.''.
        (b) Clarification.--Section 1902 of the Social Security Act (42
    U.S.C. 1396a) is amended--
                (1) in subsection (r)(2), by adding at the end the
            following new subparagraph:
        ``(C) 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).'';
    and
                (2) in subsection (e)(14)(D)(iv)--
                        (A) by striking ``Subparagraphs'' and inserting
                                        ``(I) In general.--Subparagraphs'';
                                    and
                        (B) by adding at the end the following new
                    subclause:
                                        ``(II) Application of home equity
                                    interest limit.--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.''.
        (c) Effective Date.--The amendments made by subsection (a) shall
    apply beginning on January 1, 2028.

    SEC. 44110. PROHIBITING FEDERAL FINANCIAL PARTICIPATION UNDER MEDICAID
                  AND CHIP FOR INDIVIDUALS WITHOUT VERIFIED CITIZENSHIP,
                  NATIONALITY, OR SATISFACTORY IMMIGRATION STATUS.

        (a) In General.--
                (1) Medicaid.--Section 1903(i)(22) of the Social Security
            Act (42 U.S.C. 1396b(i)(22)) is amended--
                        (A) by adding ``and'' at the end;
                        (B) by striking ``to amounts'' and inserting ``to--
                        ``(A) amounts''; and
                        (C) by adding at the end the following new
                    subparagraph:
                        ``(B) in the case that the State elects under
                    section 1902(a)(46)(C) to provide for making medical
                    assistance available to an individual during--
                                ``(i) 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);
                                ``(ii) the 90-day period described in
                            section 1902(ee)(1)(B)(ii)(II); or
                                ``(iii) the period in which the individual
                            is provided the reasonable opportunity to
                            submit evidence indicating a satisfactory
                            immigration status under section 1137(d)(4),
                    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;''.
                (2) CHIP.--Section 2107(e)(1)(N) of the Social Security Act
            (42 U.S.C. 1397gg(e)(1)(N)) is amended by striking ``and (17)''
            and inserting ``(17), and (22)''.
        (b) Eliminating State Requirement to Provide Medical Assistance
    During Reasonable Opportunity Period.--
                (1) Documentary evidence of citizenship or nationality.--
            Section 1903(x)(4) of the Social Security Act (42 U.S.C.
            1396b(x)) is amended--
                        (A) by striking ``under clauses (i) and (ii) of
                    section 1137(d)(4)(A)'' and inserting ``under section
                    1137(d)(4)''; and
                        (B) by inserting ``, 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)'' before the period at the end.
                (2) Social security data match.--Section 1902(ee) of the
            Social Security Act (42 U.S.C. 1396a(ee)) is amended--
                        (A) in paragraph (1)(B)(ii)--
                                (i) in subclause (II), by striking ``(and
                            continues to provide the individual with
                            medical assistance during such 90-day period)''
                            and inserting ``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'';
                            and
                                (ii) in subclause (III), by inserting ``,
                            or denies eligibility for medical assistance
                            under this title for such individual, as
                            applicable'' after ``under this title''; and
                        (B) in paragraph (2)(C)--
                                (i) by striking ``under clauses (i) and
                            (ii) of section 1137(d)(4)(A)'' and inserting
                            ``under section 1137(d)(4)''; and
                                (ii) by inserting ``, 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)'' before the period at the end.
                (3) Individuals with satisfactory immigration status.--
            Section 1137(d)(4) of the Social Security Act (42 U.S.C. 1320b-
            7(d)(4)) is amended--
                        (A) in subparagraph (A)(ii), by inserting ``(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))'' after ``has been provided''; and
                        (B) in subparagraph (B)(ii), by inserting ``(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))'' after ``status''.
        (c) Option to Continue Providing Medical Assistance During
    Reasonable Opportunity Period.--
                (1) Medicaid.--Section 1902(a)(46) of the Social Security
            Act (42 U.S.C. 1396a(a)(46)) is amended--
                        (A) in subparagraph (A), by striking ``and'' at the
                    end;
                        (B) in subparagraph (B)(ii), by adding ``and'' at
                    the end; and
                        (C) by inserting after subparagraph (B)(ii) the
                    following new subparagraph:
                ``(C) provide, at the option of the State, for making
            medical assistance available--
                        ``(i) 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
                        ``(ii) 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);''.
                (2) CHIP.--Section 2105(c)(9) of the Social Security Act
            (42 U.S.C. 1397ee(c)(9)) is amended by adding at the end the
            following new subparagraph:
                        ``(C) Option to continue providing child health
                    assistance during reasonable opportunity period.--
                    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.''.
        (d) Effective Date.--The amendments made by this section shall
    apply beginning October 1, 2026.

    SEC. 44111. REDUCING EXPANSION FMAP FOR CERTAIN STATES PROVIDING
                  PAYMENTS FOR HEALTH CARE FURNISHED TO CERTAIN
                  INDIVIDUALS.

        Section 1905 of the Social Security Act (42 U.S.C. 1395d) is
    amended--
                (1) in subsection (y)--
                        (A) in paragraph (1)(E), by inserting ``(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)'' after
                    ``thereafter''; and
                        (B) in paragraph (2), by adding at the end the
                    following new subparagraph:
                        ``(C) Specified state.--The term `specified State'
                    means, with respect to a quarter, a State that--
                                ``(i) 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
                                ``(ii) 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.
                        ``(D) Immigration terms.--
                                ``(i) Alien.--The term `alien' has the
                            meaning given such term in section 101(a) of
                            the Immigration and Nationality Act.
                                ``(ii) Qualified alien.--The term
                            `qualified alien' has the meaning given such
                            term in section 431 of the Personal
                            Responsibility and Work Opportunity
                            Reconciliation Act of 1996, except that--
                                        ``(I) 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);
                                        ``(II) the reference to `at the
                                    time the alien applies for, receives,
                                    or attempts to receive a Federal public
                                    benefit' in subsection (b) of such
                                    section 431 shall be treated as a
                                    reference to `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'; and
                                        ``(III) the references to `(in the
                                    opinion of the agency providing such
                                    benefits)' in subsection (c) of such
                                    section 431 shall be treated as
                                    references to `(in the opinion of the
                                    State in which such comprehensive
                                    health benefits coverage or such
                                    financial assistance is provided, as
                                    applicable)'.''; and
                (2) in subsection (z)(2)--
                        (A) in subparagraph (A), by striking ``for such
                    year'' and inserting ``for such quarter''; and
                        (B) in subparagraph (B)(i)--
                                (i) in the matter preceding subclause (I),
                            by striking ``for a year'' and inserting ``for
                            a calendar quarter in a year''; and
                                (ii) in subclause (II), by striking ``for
                            the year'' and inserting ``for the quarter for
                            the State''.

                    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.

        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 ``Medicare and Medicaid
    Programs; Minimum Staffing Standards for Long-Term Care Facilities and
    Medicaid Institutional Payment Transparency Reporting'' (89 Fed. Reg.
    40876).

    SEC. 44122. MODIFYING RETROACTIVE COVERAGE UNDER THE MEDICAID AND CHIP
                  PROGRAMS.

        (a) In General.--Section 1902(a)(34) of the Social Security Act (42
    U.S.C. 1396a(a)(34)) is amended--
                (1) by striking ``him'' and inserting ``the individual'';
                (2) by striking ``the third month'' and inserting ``the
            month'';
                (3) by striking ``he'' and inserting ``the individual'';
            and
                (4) by striking ``his'' and inserting ``the individual's''.
        (b) Definition of Medical Assistance.--Section 1905(a) of the
    Social Security Act (42 U.S.C. 1396d(a)) is amended by striking ``in or
    after the third month before the month in which the recipient makes
    application for assistance'' and inserting ``in or after the month
    before the month in which the recipient makes application for
    assistance''.
        (c) CHIP.--Section 2102(b)(1)(B) of the Social Security Act (42
    U.S.C. 1397bb(b)(1)(B)) is amended--
                (1) in clause (iv), by striking ``and'' at the end;
                (2) in clause (v), by striking the period and inserting ``;
            and''; and
                (3) by adding at the end the following new clause:
                                ``(vi) 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.''.
        (d) Effective Date.--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.

    SEC. 44123. ENSURING ACCURATE PAYMENTS TO PHARMACIES UNDER MEDICAID.

        (a) In General.--Section 1927(f) of the Social Security Act (42
    U.S.C. 1396r-8(f)) is amended--
                (1) in paragraph (1)(A)--
                        (A) by redesignating clause (ii) as clause (iii);
                    and
                        (B) by striking ``and'' after the semicolon at the
                    end of clause (i) and all that precedes it through
                    ``(1)'' and inserting the following:
                ``(1) Determining pharmacy actual acquisition costs.--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:
                        ``(A) Use of vendor.--The Secretary may contract
                    services for--
                                ``(i) 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;
                                ``(ii) with respect to applicable non-
                            retail pharmacies--
                                        ``(I) 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
                                        ``(II) 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'';
                (2) in subparagraph (B) of paragraph (1), by striking
            ``subparagraph (A)(ii)'' and inserting ``subparagraph
            (A)(iii)'';
                (3) in subparagraph (D) of paragraph (1), by striking
            clauses (ii) and (iii) and inserting the following:
                                ``(ii) The vendor must update the Secretary
                            no less often than monthly on the survey prices
                            for covered outpatient drugs.
                                ``(iii) 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 `An Act to
                            provide for reconciliation pursuant to title II
                            of H. Con. Res. 14'.'';
                (4) by adding at the end of paragraph (1) the following:
                        ``(F) Survey reporting.--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.
                        ``(G) Survey information.--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:
                                ``(i) The monthly response rate to the
                            survey including a list of pharmacies not in
                            compliance with subparagraph (F).
                                ``(ii) The sampling methodology and number
                            of pharmacies sampled monthly.
                                ``(iii) 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.
                        ``(H) Penalties.--
                                ``(i) In general.--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.
                                ``(ii) Basis for penalties.--The Secretary
                            shall impose a civil money penalty established
                            under this subparagraph on a retail community
                            pharmacy or applicable non-retail pharmacy if--
                                        ``(I) 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;
                                        ``(II) knowingly provides false
                                    information in response to such a
                                    survey; or
                                        ``(III) otherwise fails to comply
                                    with the requirements established under
                                    this paragraph.
                                ``(iii) Parameters for penalties.--
                                        ``(I) In general.--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.
                                        ``(II) Considerations.--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.
                                ``(iv) Rule of application.--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).
                        ``(I) Limitation on use of applicable non-retail
                    pharmacy pricing information.--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.'';
                (5) in paragraph (2)--
                        (A) in subparagraph (A), by inserting ``, 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)),'' after ``under this
                    title''; and
                        (B) in subparagraph (B), by inserting ``and the
                    basis for such dispensing fees'' before the semicolon;
                (6) by redesignating paragraph (4) as paragraph (5);
                (7) by inserting after paragraph (3) the following new
            paragraph:
                ``(4) Oversight.--
                        ``(A) In general.--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.
                        ``(B) Appropriation.--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.''; and
                (8) in paragraph (5), as so redesignated--
                        (A) by inserting ``, and $8,000,000 for each of
                    fiscal years 2026 through 2033,'' after ``2010''; and
                        (B) by inserting ``Funds appropriated under this
                    paragraph for each of fiscal years 2026 through 2033
                    shall remain available until expended.'' after the
                    period.
        (b) Definitions.--Section 1927(k) of the Social Security Act (42
    U.S.C. 1396r-8(k)) is amended--
                (1) in the matter preceding paragraph (1), by striking ``In
            the section'' and inserting ``In this section''; and
                (2) by adding at the end the following new paragraphs:
                ``(12) Applicable non-retail pharmacy.--The term
            `applicable non-retail pharmacy' 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).
                ``(13) Affiliate.--The term `affiliate' 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)).''.
        (c) Effective Date.--
                (1) In general.--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.
                (2) Delayed application to applicable non-retail
            pharmacies.--The pharmacy survey requirements established by
            the amendments to section 1927(f) of the Social Security Act
            (42 U.S.C. 1396r-8(f)) 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.
        (d) Identification of Applicable Non-retail Pharmacies.--
                (1) In general.--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 (42 U.S.C.
            1396r-8), 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).
                (2) Inclusion of pharmacy type indicators.--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.
        (e) Implementation.--Implementation of the amendments made by this
    section shall be exempt from the requirements of section 553 of title
    5, United States Code.
        (f) Nonapplication of Paperwork Reduction Act.--Chapter 35 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 (42 U.S.C. 1396r-8(f)), as amended
    by this section.

    SEC. 44124. PREVENTING THE USE OF ABUSIVE SPREAD PRICING IN MEDICAID.

        (a) In General.--Section 1927 of the Social Security Act (42 U.S.C.
    1396r-8) is amended--
                (1) in subsection (e), by adding at the end the following
            new paragraph:
                ``(6) Transparent prescription drug pass-through pricing
            required.--
                        ``(A) In general.--A contract between the State and
                    a pharmacy benefit manager (referred to in this
                    paragraph as a `PBM'), 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
                    `entity') 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--
                                ``(i) any payment made by the entity or the
                            PBM (as applicable) for such a drug--
                                        ``(I) is limited to--
                                                ``(aa) ingredient cost; and
                                                ``(bb) 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;
                                        ``(II) 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
                                        ``(III) 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--
                                                ``(aa) such drug was
                                            subject to an agreement under
                                            section 340B of the Public
                                            Health Service Act;
                                                ``(bb) 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
                                                ``(cc) 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;
                                ``(ii) 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;
                                ``(iii) 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
                                ``(iv) 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.
                        ``(B) Publication of information.--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:
                                ``(i) Covered entities described in
                            subparagraph (A) of section 340B(a)(4) of the
                            Public Health Service Act.
                                ``(ii) Covered entities described in
                            subparagraphs (B) through (K) of such section.
                                ``(iii) Covered entities described in
                            subparagraph (L) of such section.
                                ``(iv) Covered entities described in
                            subparagraph (M) of such section.
                                ``(v) Covered entities described in
                            subparagraph (N) of such section.
                                ``(vi) Covered entities described in
                            subparagraph (O) of such section.''; and
                (2) in subsection (k), as previously amended by this
            subtitle, by adding at the end the following new paragraph:
                ``(14) Pharmacy benefit manager.--The term `pharmacy
            benefit manager' 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.''.
        (b) Conforming Amendments.--Section 1903(m) of such Act (42 U.S.C.
    1396b(m)) is amended--
                (1) in paragraph (2)(A)(xiii)--
                        (A) by striking ``and (III)'' and inserting
                    ``(III)'';
                        (B) by inserting before the period at the end the
                    following: ``, 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)''; and
                        (C) by moving the left margin 2 ems to the left;
                    and
                (2) by adding at the end the following new paragraph:
                ``(10) 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).''.
        (c) Effective Date.--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.
        (d) Implementation.--Implementation of the amendments made by this
    section shall be exempt from the requirements of section 553 of title
    5, United States Code.
        (e) Nonapplication of Paperwork Reduction Act.--Chapter 35 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 (42 U.S.C. 1396r-8(e)), as amended
    by this section.

    SEC. 44125. PROHIBITING FEDERAL MEDICAID AND CHIP FUNDING FOR GENDER
                  TRANSITION PROCEDURES.

        (a) Medicaid.--Section 1903(i) of the Social Security Act (42
    U.S.C. 1396b(i)) is amended--
                (1) in paragraph (26), by striking ``; or'' and inserting a
            semicolon;
                (2) in paragraph (27), by striking the period at the end
            and inserting ``; or'';
                (3) by inserting after paragraph (27) the following new
            paragraph:
                ``(28) 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).''; and
                (4) in the flush left matter at the end, by striking ``and
            (18),'' and inserting ``(18), and (28)''.
        (b) CHIP.--Section 2107(e)(1)(N) of the Social Security Act (42
    U.S.C. 1397gg(e)(1)(N)) is amended by striking ``and (17)'' and
    inserting ``(17), and (28)''.
        (c) Specified Gender Transition Procedures Defined.--Section 1905
    of the Social Security Act (42 U.S.C. 1396d) is amended by adding at
    the end the following new subsection:
        ``(kk) Specified Gender Transition Procedures.--
                ``(1) In general.--For purposes of section 1903(i)(28),
            except as provided in paragraph (2), the term `specified gender
            transition procedure' 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:
                        ``(A) Performing any surgery, including--
                                ``(i) castration;
                                ``(ii) sterilization;
                                ``(iii) orchiectomy;
                                ``(iv) scrotoplasty;
                                ``(v) vasectomy;
                                ``(vi) tubal ligation;
                                ``(vii) hysterectomy;
                                ``(viii) oophorectomy;
                                ``(ix) ovariectomy;
                                ``(x) metoidioplasty;
                                ``(xi) clitoroplasty;
                                ``(xii) reconstruction of the fixed part of
                            the urethra with or without a metoidioplasty or
                            a phalloplasty;
                                ``(xiii) penectomy;
                                ``(xiv) phalloplasty;
                                ``(xv) vaginoplasty;
                                ``(xvi) vaginectomy;
                                ``(xvii) vulvoplasty;
                                ``(xviii) reduction thyrochondroplasty;
                                ``(xix) chondrolaryngoplasty;
                                ``(xx) mastectomy; and
                                ``(xxi) any plastic, cosmetic, or aesthetic
                            surgery that feminizes or masculinizes the
                            facial or other body features of an individual.
                        ``(B) Any placement of chest implants to create
                    feminine breasts or any placement of erection or
                    testicular prostheses.
                        ``(C) Any placement of fat or artificial implants
                    in the gluteal region.
                        ``(D) Administering, prescribing, or dispensing to
                    an individual medications, including--
                                ``(i) gonadotropin-releasing hormone (GnRH)
                            analogues or other puberty-blocking drugs to
                            stop or delay normal puberty; and
                                ``(ii) 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.
                ``(2) Exception.--Paragraph (1) 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:
                        ``(A) Puberty suppression or blocking prescription
                    drugs for the purpose of normalizing puberty for an
                    individual experiencing precocious puberty.
                        ``(B) Medically necessary procedures or treatments
                    to correct for--
                                ``(i) a medically verifiable disorder of
                            sex development, including--
                                        ``(I) 46,XX chromosomes with
                                    virilization;
                                        ``(II) 46,XY chromosomes with
                                    undervirilization; and
                                        ``(III) both ovarian and testicular
                                    tissue;
                                ``(ii) sex chromosome structure, sex
                            steroid hormone production, or sex hormone
                            action, if determined to be abnormal by a
                            physician through genetic or biochemical
                            testing;
                                ``(iii) 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
                                ``(iv) 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 paragraph
                            (1), which may include the removal of a pseudo
                            phallus or breast augmentation.
                ``(3) Sex.--For purposes of paragraph (1), the term `sex'
            means either male or female, as biologically determined and
            defined in paragraphs (4) and (5), respectively.
                ``(4) Female.--For purposes of paragraph (3), the term
            `female' 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.
                ``(5) Male.--For purposes of paragraph (3), the term `male'
            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.''.

    SEC. 44126. FEDERAL PAYMENTS TO PROHIBITED ENTITIES.

        (a) In General.--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.
        (b) Definitions.--In this section:
                (1) Prohibited entity.--The term ``prohibited entity''
            means an entity, including its affiliates, subsidiaries,
            successors, and clinics--
                        (A) that, as of the date of enactment of this Act--
                                (i) is an organization described in section
                            501(c)(3) of the Internal Revenue Code of 1986
                            and exempt from tax under section 501(a) of
                            such Code;
                                (ii) 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
                                (iii) provides for abortions, other than an
                            abortion--
                                        (I) if the pregnancy is the result
                                    of an act of rape or incest; or
                                        (II) 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
                        (B) 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.
                (2) Direct spending.--The term ``direct spending'' has the
            meaning given that term under section 250(c) of the Balanced
            Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
            900(c)).
                (3) Covered organization.--The term ``covered
            organization'' means a managed care entity (as defined in
            section 1932(a)(1)(B) of the Social Security Act (42 U.S.C.
            1396u-2(a)(1)(B))) 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 (42 U.S.C. 1396b(m)(9)(D))).
                (4) State.--The term ``State'' has the meaning given such
            term in section 1101 of the Social Security Act (42 U.S.C.
            1301).

                Subpart C--Stopping Abusive Financing Practices

    SEC. 44131. SUNSETTING ELIGIBILITY FOR INCREASED FMAP FOR NEW EXPANSION
                  STATES.

        Section 1905(ii)(3) of the Social Security Act (42 U.S.C.
    1396d(ii)(3)) is amended--
                (1) by striking ``which has not'' and inserting the
            following: ``which--
                        ``(A) has not'';
                (2) in subparagraph (A), as so inserted, by striking the
            period at the end and inserting ``; and''; and
                (3) by adding at the end the following new subparagraph:
                        ``(B) begins to expend amounts for all such
                    individuals prior to January 1, 2026.''.

    SEC. 44132. MORATORIUM ON NEW OR INCREASED PROVIDER TAXES.

        Section 1903(w)(1)(A)(iii) of the Social Security Act (42 U.S.C.
    1396b(w)(1)(A)(iii)) is amended--
                (1) by striking ``or'' at the end;
                (2) by striking ``if there'' and inserting ``if--
                        ``(I) there''; and
                (3) by adding at the end the following new subclauses:
                        ``(II) 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
                        ``(III) 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''.

    SEC. 44133. REVISING PAYMENTS FOR CERTAIN STATE DIRECTED PAYMENTS.

        (a) In General.--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--
                (1) 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 (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) that
            is equivalent to minimum essential coverage (as described in
            section 5000A(f)(1)(A) 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
                (2) 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).
        (b) Grandfathering Certain Payments.--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.
        (c) Treatment of Expansion States.--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.
        (d) Definitions.--In this section:
                (1) Equivalent medicare payment rate.--The term
            ``equivalent Medicare payment rate'' 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 (42 U.S.C. 1396 et
            seq.).
                (2) Rating period.--The term ``rating period'' has the
            meaning given such term in section 438.2 of title 42, Code of
            Federal Regulations.
                (3) Total published medicare payment rate.--The term
            ``total published Medicare payment rate'' 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 (42 U.S.C. 1395 et
            seq.).
                (4) Written prior approval.--The term ``written prior
            approval'' has the meaning given such term in section
            438.6(c)(2)(i) of title 42, Code of Federal Regulations.
        (e) Funding.--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.

    SEC. 44134. REQUIREMENTS REGARDING WAIVER OF UNIFORM TAX REQUIREMENT
                  FOR MEDICAID PROVIDER TAX.

        (a) In General.--Section 1903(w) of the Social Security Act (42
    U.S.C. 1396b(w)) is amended--
                (1) in paragraph (3)(E), by inserting after clause (ii)(II)
            the following new clause:
        ``(iii) For purposes of clause (ii)(I), a tax is not considered to
    be generally redistributive if any of the following conditions apply:
                ``(I) 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.
                ``(II) 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)).
                ``(III) 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--
                        ``(aa) based on payments or expenditures made under
                    the program under this title without mentioning the
                    term `Medicaid' (or any similar term) to accomplish the
                    same effect as described in subclause (I) or (II); or
                        ``(bb) 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).'';
                    and
                (2) in paragraph (7), by adding at the end the following
            new subparagraphs:
                ``(H) The term `Medicaid taxable unit' 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--
                        ``(i) payment under the program under this title
                    (such as Medicaid bed days);
                        ``(ii) Medicaid revenue;
                        ``(iii) costs associated with the program under
                    this title (such as Medicaid charges, claims, or
                    expenditures); and
                        ``(iv) other units associated with the program
                    under this title, as determined by the Secretary.
                ``(I) The term `non-Medicaid taxable unit' 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--
                        ``(i) payment by non-Medicaid payers (such as non-
                    Medicaid bed days);
                        ``(ii) non-Medicaid revenue;
                        ``(iii) costs that are not associated with the
                    program under this title (such as non-Medicaid charges,
                    non-Medicaid claims, or non-Medicaid expenditures); and
                        ``(iv) other units not associated with the program
                    under this title, as determined by the Secretary.
                ``(J) The term `tax rate group' means a group of entities
            contained within a permissible class of a health care related
            tax that are taxed at the same rate.''.
        (b) Effective Date.--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.

    SEC. 44135. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEMONSTRATION
                  PROJECTS UNDER SECTION 1115.

        Section 1115 of the Social Security Act (42 U.S.C. 1315) is amended
    by adding at the end the following new subsection:
        ``(g) Requirement of Budget Neutrality for Medicaid Demonstration
    Projects.--
                ``(1) In general.--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 `Medicaid demonstration project')
            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.
                ``(2) Treatment of savings.--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.''.

                 Subpart D--Increasing Personal Accountability

    SEC. 44141. REQUIREMENT FOR STATES TO ESTABLISH MEDICAID COMMUNITY
                  ENGAGEMENT REQUIREMENTS FOR CERTAIN INDIVIDUALS.

        (a) In General.--Section 1902 of the Social Security Act (42 U.S.C.
    1396a), as amended by sections 44103 and 44104, is further amended by
    adding at the end the following new subsection:
        ``(xx) Community Engagement Requirement for Applicable
    Individuals.--
                ``(1) In general.--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 paragraph (2)--
                        ``(A) 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
                        ``(B) 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--
                                ``(i) 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
                                ``(ii) in the case of a State that has
                            elected under paragraph (4) 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.
                ``(2) Community engagement compliance described.--Subject
            to paragraph (3), 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:
                        ``(A) The individual works not less than 80 hours.
                        ``(B) The individual completes not less than 80
                    hours of community service.
                        ``(C) The individual participates in a work program
                    for not less than 80 hours.
                        ``(D) The individual is enrolled in an educational
                    program at least half-time.
                        ``(E) The individual engages in any combination of
                    the activities described in subparagraphs (A) through
                    (D), for a total of not less than 80 hours.
                        ``(F) 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.
                ``(3) Exceptions.--
                        ``(A) Mandatory exception for certain
                    individuals.--The State shall deem an applicable
                    individual to have demonstrated community engagement
                    under paragraph (2) for a month if--
                                ``(i) for part or all of such month, the
                            individual--
                                        ``(I) was a specified excluded
                                    individual (as defined in paragraph
                                    (9)(A)(ii)); or
                                        ``(II) was--
                                                ``(aa) under the age of 19;
                                                ``(bb) pregnant or entitled
                                            to postpartum medical
                                            assistance under paragraph (5)
                                            or (16) of subsection (e);
                                                ``(cc) entitled to, or
                                            enrolled for, benefits under
                                            part A of title XVIII, or
                                            enrolled for benefits under
                                            part B of title XVIII; or
                                                ``(dd) described in any of
                                            subclauses (I) through (VII) of
                                            subsection (a)(10)(A)(i); or
                                ``(ii) 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.
                        ``(B) Optional exception for short-term hardship
                    events.--
                                ``(i) In general.--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
                            paragraph (2) for such month.
                                ``(ii) Short-term hardship event defined.--
                            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--
                                        ``(I) 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
                                        ``(II) such individual resides in a
                                    county (or equivalent unit of local
                                    government)--
                                                ``(aa) 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
                                                ``(bb) 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--

                                                        ``(AA) 8 percent;
                                                    or

                                                        ``(BB) 1.5 times
                                                    the national
                                                    unemployment rate.

                ``(4) Option to conduct more frequent compliance
            verifications.--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 paragraph (1) during
            each such individual's regularly scheduled redetermination of
            eligibility, except that a State may provide for such
            verifications more frequently.
                ``(5) Ex parte verifications.--For purposes of verifying
            that an applicable individual has met the requirement to
            demonstrate community engagement under paragraph (1), 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.
                ``(6) Procedure in the case of noncompliance.--
                        ``(A) In general.--If a State is unable to verify
                    that an applicable individual has met the requirement
                    to demonstrate community engagement under paragraph (1)
                    (including, if applicable, by verifying that such
                    individual was deemed to have demonstrated community
                    engagement under paragraph (3)) the State shall (in
                    accordance with standards specified by the Secretary)--
                                ``(i) provide such individual with the
                            notice of noncompliance described in
                            subparagraph (B);
                                ``(ii)(I) 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--
                                        ``(aa) 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 paragraph (3)); or
                                        ``(bb) 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 paragraph (9)(A); and
                                ``(II) 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
                                ``(iii) if no such satisfactory showing is
                            made and the individual is not a specified
                            excluded individual described in paragraph
                            (9)(A)(ii), 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--
                                        ``(I) 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
                                        ``(II) the individual is provided
                                    written notice and granted an
                                    opportunity for a fair hearing in
                                    accordance with subsection (a)(3).
                        ``(B) Notice.--The notice of noncompliance provided
                    to an applicable individual under subparagraph (A)(i)
                    shall include information (in accordance with standards
                    specified by the Secretary) on--
                                ``(i) how such individual may make a
                            satisfactory showing of compliance with such
                            requirement (as described in subparagraph
                            (A)(ii)) 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 paragraph (9)(A); and
                                ``(ii) 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).
                ``(7) Treatment of noncompliant individuals in relation to
            certain other provisions.--
                        ``(A) Certain fmap increases.--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 paragraph (1).
                        ``(B) Other provisions.--For purposes of section
                    36B(c)(2)(B) 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
                    paragraph (1).
                ``(8) Outreach.--
                        ``(A) In general.--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--
                                ``(i) how to comply with such requirement,
                            including an explanation of the exceptions to
                            such requirement under paragraph (3) and the
                            definition of the term `applicable individual'
                            under paragraph (9)(A);
                                ``(ii) the consequences of noncompliance
                            with such requirement; and
                                ``(iii) how to report to the State any
                            change in the individual's status that could
                            result in--
                                        ``(I) the applicability of an
                                    exception under paragraph (3) (or the
                                    end of the applicability of such an
                                    exception); or
                                        ``(II) the individual qualifying as
                                    a specified excluded individual under
                                    paragraph (9)(A)(ii).
                        ``(B) Form of outreach notice.--A notice required
                    under subparagraph (A) shall be delivered--
                                ``(i) by regular mail (or, if elected by
                            the individual, in an electronic format); and
                                ``(ii) 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.
                ``(9) Definitions.--In this subsection:
                        ``(A) Applicable individual.--
                                ``(i) In general.--The term `applicable
                            individual' means an individual (other than a
                            specified excluded individual (as defined in
                            clause (ii)))--
                                        ``(I) who is eligible to enroll (or
                                    is enrolled) under the State plan under
                                    subsection (a)(10)(A)(i)(VIII); or
                                        ``(II) who--
                                                ``(aa) 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 section
                                            5000A(f)(1)(A) of the Internal
                                            Revenue Code of 1986 and as
                                            determined in accordance with
                                            standards prescribed by the
                                            Secretary in regulations); and
                                                ``(bb) 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.
                                ``(ii) Specified excluded individual.--For
                            purposes of clause (i), the term `specified
                            excluded individual' means an individual, as
                            determined by the State (in accordance with
                            standards specified by the Secretary)--
                                        ``(I) who is described in
                                    subsection (a)(10)(A)(i)(IX);
                                        ``(II) who--
                                                ``(aa) 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);
                                                ``(bb) is a California
                                            Indian described in section
                                            809(a) of such Act; or
                                                ``(cc) has otherwise been
                                            determined eligible as an
                                            Indian for the Indian Health
                                            Service under regulations
                                            promulgated by the Secretary;
                                        ``(III) who is the parent,
                                    guardian, or caretaker relative of a
                                    disabled individual or a dependent
                                    child;
                                        ``(IV) who is a veteran with a
                                    disability rated as total under section
                                    1155 of title 38, United States Code;
                                        ``(V) who is medically frail or
                                    otherwise has special medical needs (as
                                    defined by the Secretary), including an
                                    individual--
                                                ``(aa) who is blind or
                                            disabled (as defined in section
                                            1614);
                                                ``(bb) with a substance use
                                            disorder;
                                                ``(cc) with a disabling
                                            mental disorder;
                                                ``(dd) with a physical,
                                            intellectual or developmental
                                            disability that significantly
                                            impairs their ability to
                                            perform 1 or more activities of
                                            daily living; or
                                                ``(ee) with a serious or
                                            complex medical condition;
                                        ``(VI) who--
                                                ``(aa) is in compliance
                                            with any requirements imposed
                                            by the State pursuant to
                                            section 407; or
                                                ``(bb) 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;
                                        ``(VII) 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
                                        ``(VIII) who is an inmate of a
                                    public institution.
                        ``(B) Educational program.--The term `educational
                    program' includes--
                                ``(i) an institution of higher education
                            (as defined in section 101 of the Higher
                            Education Act of 1965); and
                                ``(ii) a program of career and technical
                            education (as defined in section 3 of the Carl
                            D. Perkins Career and Technical Education Act
                            of 2006).
                        ``(C) State.--The term `State' means 1 of the 50
                    States or the District of Columbia.
                        ``(D) Work program.--The term `work program' has
                    the meaning given such term in section 6(o)(1) of the
                    Food and Nutrition Act of 2008.
                ``(10) Prohibiting waiver of community engagement
            requirements.--Notwithstanding section 1115(a), the provisions
            of this subsection may not be waived.''.
        (b) Conforming Amendment.--Section 1902(a)(10)(A)(i)(VIII) of the
    Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is amended by
    striking ``subject to subsection (k)'' and inserting ``subject to
    subsections (k) and (xx)''.
        (c) Guidance.--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.
        (d) Development of Government Efficiency Grants to States.--
                (1) In general.--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.
                (2) Amount specified.--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.
                (3) Funding.--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).
                (4) Definition.--In this subsection, the term ``State''
            means 1 of the 50 States and the District of Columbia.
        (e) Implementation Funding.--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.

    SEC. 44142. MODIFYING COST SHARING REQUIREMENTS FOR CERTAIN EXPANSION
                  INDIVIDUALS UNDER THE MEDICAID PROGRAM.

        (a) In General.--Section 1916 of the Social Security Act (42 U.S.C.
    1396o) is amended--
                (1) in subsection (a), in the matter preceding paragraph
            (1), by inserting ``(other than, beginning October 1, 2028,
            specified individuals (as defined in subsection (k)(3)))''
            after ``individuals''; and
                (2) by adding at the end the following new subsection:
        ``(k) Special Rules for Certain Expansion Individuals.--
                ``(1) Premiums.--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.
                ``(2) Required imposition of cost sharing.--
                        ``(A) In general.--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.
                        ``(B) Limitations.--
                                ``(i) Exclusion of certain services.--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.
                                ``(ii) Item and service limitation.--
                                        ``(I) In general.--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.
                                        ``(II) Special rules for
                                    prescription drugs.--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.
                                ``(iii) Maximum limit on cost sharing.--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).
                        ``(C) Cases of nonpayment.--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.
                ``(3) Specified individual defined.--For purposes of this
            subsection, the term `specified individual' 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--
                        ``(A) is enrolled under section
                    1902(a)(10)(A)(i)(VIII); or
                        ``(B) 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 section 5000A(f)(1)(A) 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).''.
        (b) Conforming Amendments.--
                (1) Required application.--Section 1902(a)(14) of the
            Social Security Act (42 U.S.C. 1396a(a)(14)) is amended by
            inserting ``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''
            after ``section 1916''.
                (2) Nonapplicability of alternative cost sharing.--Section
            1916A(a)(1) of the Social Security Act (42 U.S.C. 1396o-
            1(a)(1)) is amended, in the second sentence, by striking ``or
            (j)'' and inserting ``(j), or (k)''.

                          PART 2--AFFORDABLE CARE ACT

    SEC. 44201. ADDRESSING WASTE, FRAUD, AND ABUSE IN THE ACA EXCHANGES.

        (a) Changes to Enrollment Periods for Enrolling in Exchanges.--
    Section 1311 of the Patient Protection and Affordable Care Act (42
    U.S.C. 18031) is amended--
                (1) in subsection (c)(6)--
                        (A) by striking subparagraph (A);
                        (B) by striking ``The Secretary'' and inserting the
                    following:
                        ``(A) In general.--The Secretary'';
                        (C) by redesignating subparagraphs (B) through (D)
                    as clauses (i) through (iii), respectively, and
                    adjusting the margins accordingly;
                        (D) in clause (i), as so redesignated, by striking
                    ``periods, as determined by the Secretary for calendar
                    years after the initial enrollment period;'' and
                    inserting the following: ``periods for plans offered in
                    the individual market--
                                        ``(I) for enrollment for plan years
                                    beginning before January 1, 2026, as
                                    determined by the Secretary; and
                                        ``(II) 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;'';
                        (E) in clause (ii), as so redesignated, by
                    inserting ``subject to subparagraph (B),'' before
                    ``special enrollment periods specified''; and
                        (F) by adding at the end the following new
                    subparagraph:
                        ``(B) Prohibited special enrollment period.--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.'';
                    and
                (2) in subsection (d), by adding at the end the following
            new paragraphs:
                ``(8) Prohibited enrollment periods.--An Exchange may not
            provide for, with respect to enrollment for plan years
            beginning on or after January 1, 2026--
                        ``(A) an annual open enrollment period other than
                    the period described in subparagraph (A)(i) of
                    subsection (c)(6); or
                        ``(B) a special enrollment period described in
                    subparagraph (B) of such subsection.
                ``(9) Verification of eligibility for special enrollment
            periods.--
                        ``(A) In general.--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.
                        ``(B) Selected special enrollment periods.--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.''.
        (b) Verifying Income for Individuals Enrolling in a Qualified
    Health Plan Through an Exchange.--
                (1) In general.--Section 1411(e)(4) of the Patient
            Protection and Affordable Care Act (42 U.S.C. 18081(e)(4)) is
            amended--
                        (A) by redesignating subparagraph (C) as
                    subparagraph (E); and
                        (B) by inserting after subparagraph (B) the
                    following new subparagraphs:
                        ``(C) Requiring verification of income and family
                    size when tax data is unavailable.--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).
                        ``(D) Requiring verification of income in the case
                    of certain income discrepancies.--
                                ``(i) In general.--Subject to clause (iii),
                            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 clause (ii) 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).
                                ``(ii) Specified income discrepancy.--For
                            purposes of clause (i), a specified income
                            discrepancy exists with respect to the
                            information provided by an applicant under
                            subsection (b)(3) if--
                                        ``(I) the applicant attests to a
                                    projected annual household income that
                                    would qualify such applicant to be an
                                    applicable taxpayer under section
                                    36B(c)(1)(A) of the Internal Revenue
                                    Code of 1986 with respect to the
                                    taxable year involved;
                                        ``(II) 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;
                                        ``(III) such attested projected
                                    annual household income exceeds the
                                    income reflected in the data described
                                    in subclause (II) 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
                                        ``(IV) the Exchange has not
                                    assessed or determined based on the
                                    data described in subclause (II) 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.
                                ``(iii) Exclusion of certain individuals
                            ineligible for medicaid.--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.''.
                (2) Requiring individuals on whose behalf advance payments
            of the premium tax credits are made to file and reconcile on an
            annual basis.--Section 1412(b) of the Patient Protection and
            Affordable Care Act (42 U.S.C. 18082(b)) is amended by adding
            at the end the following new paragraph:
                ``(3) Annual requirement to file and reconcile.--
                        ``(A) In general.--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 section 36B 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--
                                ``(i) 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
                                ``(ii) 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.
                        ``(B) Relevant prior tax year.--For purposes of
                    subparagraph (A), the term `relevant prior tax year'
                    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)).
                        ``(C) Preliminary attestation.--If an individual
                    subject to subparagraph (A) 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.
                        ``(D) Notice.--If the Secretary determines that an
                    individual did not meet the requirements described in
                    subparagraph (A) 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).''.
                (3) Removing automatic extension of period to resolve
            income inconsistencies.--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 (42 U.S.C. 18021 et seq.)
            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.
        (c) Revising Rules on Allowable Variation in Actuarial Value of
    Health Plans.--The Secretary of Health and Human Services shall--
                (1) 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;
                (2) 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
                (3) 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 ``de minimis variation for a
            silver plan variation'' means a minus 1 percentage point and
            plus 1 percentage point allowable actuarial value variation.
        (d) Updating Premium Adjustment Percentage Methodology.--Section
    1302(c)(4) of the Patient Protection and Affordable Care Act (42 U.S.C.
    18022(c)(4)) is amended--
                (1) by striking ``For purposes'' and inserting:
                        ``(A) In general.--For purposes''; and
                (2) by adding at the end the following new subparagraph:
                        ``(B) Update to methodology.--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).''.
        (e) Eliminating the Fixed-dollar and Gross-percentage Thresholds
    Applicable to Exchange Enrollments.--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.
        (f) Prohibiting Automatic Reenrollment From Bronze to Silver Level
    Qualified Health Plans Offered by Exchanges.--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 (42 U.S.C. 18021 et
    seq.) 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.
        (g) Reducing Advance Payments of Premium Tax Credits for Certain
    Individuals Reenrolled in Exchanges.--Section 1412 of the Patient
    Protection and Affordable Care Act (42 U.S.C. 18082) is amended--
                (1) in subsection (a)(3), by inserting ``, subject to
            subsection (c)(2)(C),'' after ``qualified health plans''; and
                (2) in subsection (c)(2)--
                        (A) in subparagraph (A), by striking ``The'' and
                    inserting ``Subject to subparagraph (C), the''; and
                        (B) by adding at the end the following new
                    subparagraph:
                        ``(C) Reduction in advance payment for specified
                    reenrolled individuals.--
                                ``(i) In general.--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).
                                ``(ii) Definitions.--In this subparagraph:
                                        ``(I) Applicable month.--The term
                                    `applicable month' 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).
                                        ``(II) Specified reenrolled
                                    individual.--The term `specified
                                    reenrolled individual' 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.''.
        (h) Prohibiting Coverage of Gender Transition Procedures as an
    Essential Health Benefit Under Plans Offered by Exchanges.--
                (1) In general.--Section 1302(b)(2) of the Patient
            Protection and Affordable Care Act (42 U.S.C. 18022(b)(2)) is
            amended by adding at the end the following new subparagraph:
                        ``(C) Gender transition procedures.--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.''.
                (2) Gender transition procedure defined.--Section 1304 of
            the Patient Protection and Affordable Care Act (42 U.S.C.
            18024) is amended by adding at the end the following new
            subsection:
        ``(f) Gender Transition Procedure.--
                ``(1) In general.--In this title, except as provided in
            paragraph (2), the term `gender transition procedure' 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:
                        ``(A) Performing any surgery, including--
                                ``(i) castration;
                                ``(ii) sterilization;
                                ``(iii) orchiectomy;
                                ``(iv) scrotoplasty;
                                ``(v) vasectomy;
                                ``(vi) tubal ligation;
                                ``(vii) hysterectomy;
                                ``(viii) oophorectomy;
                                ``(ix) ovariectomy;
                                ``(x) metoidioplasty;
                                ``(xi) clitoroplasty;
                                ``(xii) reconstruction of the fixed part of
                            the urethra with or without a metoidioplasty or
                            a phalloplasty;
                                ``(xiii) penectomy;
                                ``(xiv) phalloplasty;
                                ``(xv) vaginoplasty;
                                ``(xvi) vaginectomy;
                                ``(xvii) vulvoplasty;
                                ``(xviii) reduction thyrochondroplasty;
                                ``(xix) chondrolaryngoplasty;
                                ``(xx) mastectomy; and
                                ``(xxi) any plastic, cosmetic, or aesthetic
                            surgery that feminizes or masculinizes the
                            facial or other body features of an individual.
                        ``(B) Any placement of chest implants to create
                    feminine breasts or any placement of erection or
                    testicular prosetheses.
                        ``(C) Any placement of fat or artificial implants
                    in the gluteal region.
                        ``(D) Administering, prescribing, or dispensing to
                    an individual medications, including--
                                ``(i) gonadotropin-releasing hormone (GnRH)
                            analogues or other puberty-blocking drugs to
                            stop or delay normal puberty; and
                                ``(ii) 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.
                ``(2) Exception.--Paragraph (1) shall not apply to the
            following:
                        ``(A) Puberty suppression or blocking prescription
                    drugs for the purpose of normalizing puberty for an
                    individual experiencing precocious puberty.
                        ``(B) Medically necessary procedures or treatments
                    to correct for--
                                ``(i) a medically verifiable disorder of
                            sex development, including--
                                        ``(I) 46,XX chromosomes with
                                    virilization;
                                        ``(II) 46,XY chromosomes with
                                    undervirilization; and
                                        ``(III) both ovarian and testicular
                                    tissue;
                                ``(ii) sex chromosome structure, sex
                            steroid hormone production, or sex hormone
                            action, if determined to be abnormal by a
                            physician through genetic or biochemical
                            testing;
                                ``(iii) 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
                                ``(iv) 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 paragraph
                            (1), which may include the removal of a pseudo
                            phallus or breast augmentation.
                ``(3) Sex.--For purposes of this subsection, the term `sex'
            means either male or female, as biologically determined and
            defined by subparagraph (A) and subparagraph (B).
                        ``(A) Female.--The term `female' 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.
                        ``(B) Male.--The term `male' 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.''.
        (i) Clarifying Lawful Presence for Purposes of the Exchanges.--
                (1) In general.--Section 1312(f) of the Patient Protection
            and Affordable Care Act (42 U.S.C. 18032(f)) is amended by
            adding at the end the following new paragraph:
                ``(4) Clarification of lawful presence.--In this title, the
            term `alien lawfully present in the United States' 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
            `Exercising Prosecutorial Discretion with Respect to
            Individuals Who Came to the United States as Children' issued
            on June 15, 2012.''.
                (2) Cost-sharing reductions.--Section 1402(e)(2) of the
            Patient Protection and Affordable Care Act (42 U.S.C.
            18071(e)(2)) is amended by adding at the end the following new
            sentence: ``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 `Exercising
            Prosecutorial Discretion with Respect to Individuals Who Came
            to the United States as Children' issued on June 15, 2012.''.
                (3) Payment prohibition.--Section 1412(d) of the Patient
            Protection and Affordable Care Act (42 U.S.C. 18082(d)) is
            amended by adding at the end the following new sentence: ``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 `Exercising Prosecutorial
            Discretion with Respect to Individuals Who Came to the United
            States as Children' issued on June 15, 2012.''.
                (4) Effective date.--The amendments made by this section
            shall apply with respect to plan years beginning on or after
            January 1, 2026.
        (j) Ensuring Appropriate Application of Guaranteed Issue
    Requirements in Case of Nonpayment of Past Premiums.--
                (1) In general.--Section 2702 of the Public Health Service
            Act (42 U.S.C. 300gg-1) is amended by adding at the end the
            following new subsection:
        ``(e) Nonpayment of Past Premiums.--
                ``(1) In general.--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.
                ``(2) Attribution of initial premium payment to owed
            amount.--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.
                ``(3) Controlled group defined.--For purposes of this
            subsection, the term `controlled group' 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.''.
                (2) Effective date.--The amendment made by paragraph (1)
            shall apply with respect to plan years beginning on or after
            January 1, 2026.

    SEC. 44202. FUNDING COST SHARING REDUCTION PAYMENTS.

        Section 1402 of the Patient Protection and Affordable Care Act (42
    U.S.C. 18071) is amended by adding at the end the following new
    subsection:
        ``(h) Funding.--
                ``(1) In general.--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.
                ``(2) Limitation.--
                        ``(A) In general.--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.
                        ``(B) Exception.--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.''.

                  PART 3--IMPROVING AMERICANS' ACCESS TO CARE

    SEC. 44301. EXPANDING AND CLARIFYING THE EXCLUSION FOR ORPHAN DRUGS
                  UNDER THE DRUG PRICE NEGOTIATION PROGRAM.

        (a) In General.--Section 1192(e) of the Social Security Act (42
    U.S.C. 1320f-1(e)) is amended--
                (1) in paragraph (1), in the matter preceding subparagraph
            (A), by striking ``and (3)'' and inserting ``through (4)'';
                (2) in paragraph (3)(A)--
                        (A) by striking ``only one rare disease or
                    condition'' and inserting ``one or more rare diseases
                    or conditions''; and
                        (B) by striking ``such disease or condition'' and
                    inserting ``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)''; and
                (3) by adding at the end the following new paragraph:
                ``(4) Treatment of former orphan drugs.--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 `the date of such approval' or `the date of such
            licensure', respectively, were instead a reference to `the
            first day after the date of such approval for which such drug
            is not a drug described in paragraph (3)(A)' or `the first day
            after the date of such licensure for which such biological
            product is not a biological product described in paragraph
            (3)(A)', respectively.''.
        (b) Application.--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 (42 U.S.C. 1320f(b)))
    beginning on or after January 1, 2028.

    SEC. 44302. STREAMLINED ENROLLMENT PROCESS FOR ELIGIBLE OUT-OF-STATE
                  PROVIDERS UNDER MEDICAID AND CHIP.

        (a) In General.--Section 1902(kk) of the Social Security Act (42
    U.S.C. 1396a(kk)) is amended by adding at the end the following new
    paragraph:
                ``(10) Streamlined enrollment process for eligible out-of-
            state providers.--
                        ``(A) In general.--The State--
                                ``(i) 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
                                ``(ii) 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.
                        ``(B) Definitions.--In this paragraph:
                                ``(i) Eligible out-of-state provider.--The
                            term `eligible out-of-State provider' means,
                            with respect to a State, a provider--
                                        ``(I) that is located in any other
                                    State;
                                        ``(II) that--
                                                ``(aa) 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
                                                ``(bb) 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
                                        ``(III) that has not been--
                                                ``(aa) excluded from
                                            participation in any Federal
                                            health care program pursuant to
                                            section 1128 or 1128A;
                                                ``(bb) 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
                                                ``(cc) 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).
                                ``(ii) Qualifying individual.--The term
                            `qualifying individual' means an individual
                            under 21 years of age who is enrolled under the
                            State plan (or waiver of such plan).
                                ``(iii) State.--The term `State' means 1 of
                            the 50 States or the District of Columbia.''.
        (b) Conforming Amendments.--
                (1) Section 1902(a)(77) of the Social Security Act (42
            U.S.C. 1396a(a)(77)) is amended by inserting ``enrollment,''
            after ``screening,''.
                (2) The subsection heading for section 1902(kk) of such Act
            (42 U.S.C. 1396a(kk)) is amended by inserting ``Enrollment,''
            after ``Screening,''.
                (3) Section 2107(e)(1)(G) of such Act (42 U.S.C.
            1397gg(e)(1)(G)) is amended by inserting ``enrollment,'' after
            ``screening,''.
        (c) Effective Date.--The amendments made by this section shall
    apply beginning on the date that is 4 years after the date of enactment
    of this Act.

    SEC. 44303. DELAYING DSH REDUCTIONS.

        (a) In General.--Section 1923(f) of the Social Security Act (42
    U.S.C. 1396r-4(f)) is amended--
                (1) in paragraph (7)(A)--
                        (A) in clause (i)--
                                (i) in the matter preceding subclause (I),
                            by striking ``2026 through 2028'' and inserting
                            ``2029 through 2031''; and
                                (ii) in subclause (II), by striking ``or
                            period''; and
                        (B) in clause (ii), by striking ``2026 through
                    2028'' and inserting ``2029 through 2031''; and
                (2) in paragraph (8), by striking ``2027'' and inserting
            ``2031''.
        (b) Tennessee DSH Allotment.--Section 1923(f)(6)(A)(vi) of the
    Social Security Act (42 U.S.C. 1396r-4(f)(6)(A)(vi)) is amended--
                (1) in the header, by striking ``2025'' and inserting
            ``2028''; and
                (2) by striking ``fiscal year 2025'' and inserting ``fiscal
            year 2028''.

    SEC. 44304. MODIFYING UPDATE TO THE CONVERSION FACTOR UNDER THE
                  PHYSICIAN FEE SCHEDULE UNDER THE MEDICARE PROGRAM.

        Section 1848(d) of the Social Security Act (42 U.S.C. 1395w-4(d))
    is amended--
                (1) in paragraph (1)--
                        (A) in subparagraph (A)--
                                (i) in the first sentence, by striking
                            ``and ending with 2025''; and
                                (ii) by striking the second sentence; and
                        (B) in subparagraph (D), by striking ``(or,
                    beginning with 2026, applicable conversion factor)'';
                    and
                (2) by amending paragraph (20) to read as follows:
                ``(20) Update for 2026 and subsequent years.--The update to
            the single conversion factor established in paragraph (1)(A)--
                        ``(A) 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
                        ``(B) for 2027 and each subsequent year is 10
                    percent of the Secretary's estimate of the percentage
                    increase in the MEI for the year.''.

    SEC. 44305. MODERNIZING AND ENSURING PBM ACCOUNTABILITY.

        (a) In General.--
                (1) Prescription drug plans.--Section 1860D-12 of the
            Social Security Act (42 U.S.C. 1395w-112) is amended by adding
            at the end the following new subsection:
        ``(h) Requirements Relating to Pharmacy Benefit Managers.--For plan
    years beginning on or after January 1, 2028:
                ``(1) Agreements with pharmacy benefit managers.--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:
                        ``(A) No income other than bona fide service
                    fees.--
                                ``(i) In general.--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).
                                ``(ii) Incentive payments.--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 `bona fide
                            service fee' (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.
                                ``(iii) Clarification on rebates and
                            discounts used to lower costs for covered part
                            d drugs.--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.
                                ``(iv) Evaluation of remuneration
                            arrangements.--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.
                                ``(v) Disgorgement.--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.
                                ``(vi) Additional requirements.--The
                            pharmacy benefit manager shall--
                                        ``(I) 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
                                        ``(II) 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.
                        ``(B) Transparency regarding guarantees and cost
                    performance evaluations.--The pharmacy benefit manager
                    shall--
                                ``(i) 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--
                                        ``(I) `generic drug', in a manner
                                    consistent with the definition of the
                                    term under section 423.4 of title 42,
                                    Code of Federal Regulations;
                                        ``(II) `brand name drug', in a
                                    manner consistent with the definition
                                    of the term under section 423.4 of
                                    title 42, Code of Federal Regulations;
                                        ``(III) `specialty drug';
                                        ``(IV) `rebate'; and
                                        ``(V) `discount';
                                ``(ii) identify any drugs, claims, or price
                            concessions excluded from any pricing guarantee
                            or other cost performance measure in a clear
                            and consistent manner; and
                                ``(iii) 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.
                        ``(C) Provision of information.--
                                ``(i) In general.--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:
                                        ``(I) A list of all drugs covered
                                    by the plan that were dispensed
                                    including, with respect to each such
                                    drug--
                                                ``(aa) the brand name,
                                            generic or non-proprietary
                                            name, and National Drug Code;
                                                ``(bb) 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;
                                                ``(cc) 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;
                                                ``(dd) 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);
                                                ``(ee) 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);
                                                ``(ff) 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;
                                                ``(gg) 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;
                                                ``(hh) 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;
                                                ``(ii) the average pharmacy
                                            reimbursement amount paid by
                                            the plan for the drug in the
                                            aggregate and disaggregated by
                                            dispensing channel identified
                                            in item (cc);
                                                ``(jj) the average National
                                            Average Drug Acquisition Cost
                                            (NADAC); and
                                                ``(kk) 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.
                                        ``(II) 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:
                                                ``(aa) The percentage of
                                            total prescriptions that were
                                            dispensed by pharmacies that
                                            are an affiliate of the
                                            pharmacy benefit manager for
                                            each drug.
                                                ``(bb) 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.
                                                ``(cc) 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.
                                                ``(dd) 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.
                                                ``(ee) 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.
                                                ``(ff) 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.
                                        ``(III) Where a drug approved under
                                    section 505(c) of the Federal Food,
                                    Drug, and Cosmetic Act (referred to in
                                    this subclause as the `listed drug') is
                                    covered by the plan, the following
                                    information:
                                                ``(aa) 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.
                                                ``(bb) The estimated
                                            average beneficiary cost-
                                            sharing under the plan for a
                                            30-day supply of the listed
                                            drug.
                                                ``(cc) 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.
                                                ``(dd) A written
                                            justification for providing
                                            more favorable coverage of the
                                            listed drug than the generic
                                            drugs described in item (aa).
                                                ``(ee) 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.
                                        ``(IV) Where a reference product
                                    (as defined in section 351(i) of the
                                    Public Health Service Act) is covered
                                    by the plan, the following information:
                                                ``(aa) 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.
                                                ``(bb) The estimated
                                            average beneficiary cost-
                                            sharing under the plan for a
                                            30-day supply of the reference
                                            product.
                                                ``(cc) 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.
                                                ``(dd) A written
                                            justification for providing
                                            more favorable coverage of the
                                            reference product than the
                                            biosimilar biological product
                                            described in item (aa).
                                                ``(ee) 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.
                                        ``(V) Total gross spending on
                                    covered part D drugs by the plan, not
                                    net of rebates, fees, discounts, or
                                    other direct or indirect remuneration.
                                        ``(VI) 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.
                                        ``(VII) The total spending on
                                    covered part D drugs net of rebates,
                                    fees, discounts, or other direct and
                                    indirect remuneration by the plan.
                                        ``(VIII) 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.
                                        ``(IX) The following information:
                                                ``(aa) 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.
                                                ``(bb) The amount of
                                            compensation provided by such
                                            pharmacy benefit manager or
                                            affiliate to each such broker,
                                            consultant, advisor, and
                                            auditor.
                                                ``(cc) The methodology for
                                            calculating the amount of
                                            compensation provided by such
                                            pharmacy benefit manager or
                                            affiliate, for each such
                                            broker, consultant, advisor,
                                            and auditor.
                                        ``(X) A list of all affiliates of
                                    the pharmacy benefit manager.
                                        ``(XI) A summary document submitted
                                    in a standardized template developed by
                                    the Secretary that includes such
                                    information described in subclauses (I)
                                    through (X).
                                ``(ii) Written explanation of contracts or
                            agreements with drug manufacturers.--
                                        ``(I) In general.--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.
                                        ``(II) Requirements.--A written
                                    explanation under subclause (I) shall--
                                                ``(aa) 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
                                                ``(bb) 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.
                                        ``(III) Definition of other
                                    prescription drugs.--For purposes of
                                    this clause, the term `other
                                    prescription drugs' means prescription
                                    drugs covered as supplemental benefits
                                    under this part or prescription drugs
                                    paid outside of this part.
                        ``(D) Audit rights.--
                                ``(i) In general.--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).
                                ``(ii) Auditor.--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.
                                ``(iii) Provision of information.--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.
                                ``(iv) Timing.--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.
                                ``(v) Information from affiliates.--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.
                ``(2) Enforcement.--
                        ``(A) In general.--Each PDP sponsor shall--
                                ``(i) disgorge to the Secretary any amounts
                            disgorged to the PDP sponsor by a pharmacy
                            benefit manager under paragraph (1)(A)(v);
                                ``(ii) 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
                                ``(iii) 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).
                        ``(B) Reporting of alleged violations.--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).
                        ``(C) Anti-retaliation and anti-coercion.--
                    Consistent with applicable Federal or State law, a PDP
                    sponsor shall not--
                                ``(i) retaliate against an individual or
                            entity for reporting an alleged violation under
                            subparagraph (B); or
                                ``(ii) coerce, intimidate, threaten, or
                            interfere with the ability of an individual or
                            entity to report any such alleged violations.
                ``(3) Certification of compliance.--
                        ``(A) In general.--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.
                        ``(B) Implementation.--The Secretary may implement
                    this paragraph by program instruction or otherwise.
                ``(4) Rule of construction.--Nothing in this subsection
            shall be construed as--
                        ``(A) 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
                        ``(B) modifying regulatory requirements or sub-
                    regulatory program instruction or guidance related to
                    pharmacy payment, reimbursement, or dispensing fees.
                ``(5) Standard formats.--
                        ``(A) In general.--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).
                        ``(B) Implementation.--The Secretary may implement
                    this paragraph by program instruction or otherwise.
                ``(6) Confidentiality.--
                        ``(A) In general.--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:
                                ``(i) As the Secretary determines necessary
                            to carry out this part.
                                ``(ii) To permit the Comptroller General to
                            review the information provided.
                                ``(iii) To permit the Executive Director of
                            the Medicare Payment Advisory Commission to
                            review the information provided.
                                ``(iv) To the Attorney General for the
                            purposes of conducting oversight and
                            enforcement under this title.
                                ``(v) 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.
                        ``(B) Restriction on use of information.--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--
                                ``(i) a specific pharmacy benefit manager,
                            affiliate, pharmacy, manufacturer, wholesaler,
                            PDP sponsor, or plan; or
                                ``(ii) 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.
                ``(7) Definitions.--For purposes of this subsection:
                        ``(A) Affiliate.--The term `affiliate' means, with
                    respect to any pharmacy benefit manager or PDP sponsor,
                    any entity that, directly or indirectly--
                                ``(i) 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
                                ``(ii) 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).
                        ``(B) Bona fide service fee.--The term `bona fide
                    service fee' 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--
                                ``(i) drug price, such as wholesale
                            acquisition cost or drug benchmark price (such
                            as average wholesale price);
                                ``(ii) 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);
                                ``(iii) coverage or formulary placement
                            decisions or the volume or value of any
                            referrals or business generated between the
                            parties to the arrangement; or
                                ``(iv) any other amounts or methodologies
                            prohibited by the Secretary.
                        ``(C) Pharmacy benefit manager.--The term `pharmacy
                    benefit manager' 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 `pharmacy
                    benefit manager'.''.
                (2) MA-PD plans.--Section 1857(f)(3) of the Social Security
            Act (42 U.S.C. 1395w-27(f)(3)) is amended by adding at the end
            the following new subparagraph:
                        ``(F) Requirements relating to pharmacy benefit
                    managers.--For plan years beginning on or after January
                    1, 2028, section 1860D-12(h).''.
                (3) Nonapplication of paperwork reduction act.--Chapter 35
            of title 44, United States Code, shall not apply to the
            implementation of this subsection.
                (4) Funding.--
                        (A) Secretary.--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.
                        (B) OIG.--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.
        (b) MedPAC Reports on Agreements With Pharmacy Benefit Managers
    With Respect to Prescription Drug Plans and MA-PD Plans.--
                (1) In general.--The Medicare Payment Advisory Commission
            shall submit to Congress the following reports:
                        (A) Initial report.--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--
                                (i) a description of trends and patterns,
                            including relevant averages, totals, and other
                            figures for the types of information submitted;
                                (ii) 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
                                (iii) any recommendations the Commission
                            determines appropriate.
                        (B) Final report.--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.
                (2) Funding.--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.

                    TITLE V--COMMITTEE ON FINANCIAL SERVICES

    SEC. 50001. GREEN AND RESILIENT RETROFIT PROGRAM FOR MULTIFAMILY FAMILY
                  HOUSING.

        The unobligated balance of amounts made available under section
    30002(a) of Public Law 117-169 (commonly referred to as the ``Inflation
    Reduction Act''; 136 Stat. 2027) are rescinded.

    SEC. 50002. PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD.

        (a) During the period beginning on the date of enactment of this
    Act and ending on the transfer date--
                (1) all intellectual property retained by the Public
            Company Accounting Oversight Board (``Board'') in support of
            its programs for registration, standard-setting, and inspection
            shall be shared with the Securities and Exchange Commission
            (``Commission''); and
                (2) 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 (15 U.S.C. 6809)) in accordance with section
            105 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215).
        (b) Effective on the transfer date--
                (1) 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);
                (2) 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 (15 U.S.C. 7217),
            shall be transferred to the Commission;
                (3) the Commission may not use funds to carry out section
            107 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7217) for
            activities related to overseeing the Board;
                (4) the Board shall transfer all intellectual property
            described in subsection (a)(1) to the Commission;
                (5) 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
                (6) 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 (15 U.S.C. 6809)), in
            any rule or guidance issued by a Federal functional regulator
            (as defined in section 509 of the Gramm-Leach-Bliley Act (15
            U.S.C. 6809)), 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 (15 U.S.C. 6809)),
            shall be deemed a reference to the Commission.
        (c) Any employee of the Board as of the date of enactment of this
    Act may--
                (1) be offered equivalent positions on the Commission
            staff, as determined by the Commission, and submit to the
            Commission's standard employment policies; and
                (2) receive pay that is not higher than the highest paid
            employee of similarly situated employees of the Commission.
        (d) In this section, the term ``transfer date'' 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.

    SEC. 50003. BUREAU OF CONSUMER FINANCIAL PROTECTION.

        Section 1017(a)(2) of the Consumer Financial Protection Act of 2010
    (12 U.S.C. 5497(a)(2)) is amended--
                (1) in subparagraph (A)(iii)--
                        (A) by striking ``12 percent'' and inserting ``5
                    percent''; and
                        (B) by striking ``2013'' and inserting ``2025'';
                    and
                (2) by striking subparagraph (C) and inserting the
            following:
                        ``(C) Limitation on unobligated balances.--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.''.

    SEC. 50004. CONSUMER FINANCIAL CIVIL PENALTY FUND.

        Section 1017(d) of the Consumer Financial Protection Act of 2010
    (12 U.S.C. 5497(d)) is amended--
                (1) in paragraph (2)--
                        (A) in the first sentence, by inserting ``direct''
                    before ``victims''; and
                        (B) by striking the second sentence; and
                (2) by adding at the end the following:
                ``(3) Treatment of excess amounts.--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.''.

    SEC. 50005. FINANCIAL RESEARCH FUND.

        Section 155 of the Financial Stability Act of 2010 (12 U.S.C. 5345)
    is amended by adding at the end the following:
        ``(e) Limitation on Assessments and the Financial Research Fund.--
                ``(1) Limitation on assessments.--Assessments may not be
            collected under subsection (d) if the assessments would result
            in--
                        ``(A) the Financial Research Fund exceeding the
                    average annual budget amount; or
                        ``(B) the total assessments collected during a
                    single fiscal year exceeding the average annual budget
                    amount.
                ``(2) Transfer of excess funds.--Any amounts in the
            Financial Research Fund exceeding the average annual budget
            amount shall be deposited into the general fund of the
            Treasury.
                ``(3) Average annual budget amount defined.--In this
            subsection the term `average annual budget amount' 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).''.

                    TITLE VI--COMMITTEE ON HOMELAND SECURITY

    SEC. 60001. BORDER BARRIER SYSTEM CONSTRUCTION, INVASIVE SPECIES, AND
                  BORDER SECURITY FACILITIES IMPROVEMENTS.

        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:
                (1) $46,500,000,000 for necessary expenses relating to the
            following:
                        (A) Construction, installation, or improvement of
                    primary, waterborne, and secondary barriers.
                        (B) Access roads.
                        (C) Barrier system attributes, including cameras,
                    lights, sensors, roads, and other detection technology.
                (2) $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.
                (3) $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.

    SEC. 60002. U.S. CUSTOMS AND BORDER PROTECTION PERSONNEL AND FLEET
                  VEHICLES.

        (a) CBP Personnel.--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.
        (b) Restrictions.--None of the funds made available by subsection
    (a) may be used to recruit, hire, or train personnel for the duties of
    processing coordinators.
        (c) CBP Retention and Hiring Bonuses.--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.
        (d) CBP Vehicles.--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.
        (e) FLETC.--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--
                (1) $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
                (2) $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.
        (f) Border Security Workforce Recruitment and Applicant Sourcing.--
    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.

    SEC. 60003. U.S. CUSTOMS AND BORDER PROTECTION TECHNOLOGY, VETTING
                  ACTIVITIES, AND OTHER EFFORTS TO ENHANCE BORDER SECURITY.

        (a) CBP Technology.--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:
                (1) $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.
                (2) $2,766,000,000 for necessary expenses relating to
            upgrades and procurement of border surveillance technologies
            along the southwest, northern, and maritime borders.
                (3) $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 (8 U.S.C. 1365b).
        (b) Restrictions.--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--
                (1) tested, and
                (2) accepted,
    by the Federal Government to deliver autonomous capabilities.
        (c) Air and Marine Operations.--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.
        (d) CBP Vetting Activities.--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.
        (e) Other Efforts to Combat Drug Trafficking to Enhance Border
    Security.--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.
        (f) Commemorations.--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.
        (g) Definition.--In this section, the term ``autonomous'' 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.

    SEC. 60004. STATE BORDER SECURITY REIMBURSEMENT.

        (a) In General.--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.
        (b) Use of Funds.--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.
        (c) Application.--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).
        (d) Prohibition.--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.

    SEC. 60005. STATE AND LOCAL LAW ENFORCEMENT PRESIDENTIAL RESIDENCE
                  PROTECTION.

        (a) Presidential Residence Protection.--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 (Public Law 94-524) to be secured by
    the United States Secret Service.
        (b) Availability.--Funds under subsection (a) shall be available
    only for costs that a State or local agency--
                (1) incurred or incurs on or after July 1, 2024;
                (2) can demonstrate to the Administrator of the Federal
            Emergency Management Agency as being--
                        (A) in excess of the costs of normal and typical
                    law enforcement operations;
                        (B) directly attributable to the provision of
                    protection described in such subsection; and
                        (C) associated with a non-governmental property
                    designated pursuant to section 3 of the Presidential
                    Protection Assistance Act of 1976 (Public Law 94-524)
                    to be secured by the United States Secret Service; and
                (3) certifies to the Administrator as being for protection
            activities requested by the Director of the United States
            Secret Service.

    SEC. 60006. STATE HOMELAND SECURITY GRANT PROGRAM.

        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 (6 U.S.C. 605), to enhance State, local, and Tribal
    security through grants, contracts, cooperative agreements, and other
    activities, of which--
                (1) $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);
                (2) $625,000,000, to remain available until September 30,
            2029, for security, planning, and other costs related to the
            2026 FIFA World Cup;
                (3) $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
                (4) $450,000,000, to remain available until September 30,
            2029, for the Operation Stonegarden Grant Program.

                     TITLE VII--COMMITTEE ON THE JUDICIARY

                        Subtitle A--Immigration Matters

                            PART 1--IMMIGRATION FEES

    SEC. 70001. APPLICABILITY OF THE IMMIGRATION LAWS.

        (a) Applicability.--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.
        (b) Terms.--The terms used under this subtitle shall have the
    meanings given such terms in section 101 of the Immigration and
    Nationality Act.
        (c) References to Immigration and Nationality Act.--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.

    SEC. 70002. ASYLUM FEE.

        (a) In General.--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.
        (b) Initial Amount.--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.
        (c) Subsequent Adjustment.--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--
                (1) the amount imposed under this section for the prior
            fiscal year; and
                (2) 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.
        (d) Crediting Certain Funds.--During any fiscal year, the total
    amount of fees received under this section shall be subject to the
    following:
                (1) 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.
                (2) 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 (8 U.S.C.
            1356(m)) to retain and spend without further appropriation.
                (3) 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.
        (e) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70003. EMPLOYMENT AUTHORIZATION DOCUMENT FEES.

        (a) Asylum Applicants.--
                (1) In general.--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.
                (2) Initial amount.-- 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.
                (3) Subsequent adjustment.--Beginning in fiscal year 2026
            and each fiscal year thereafter, the amount for a fiscal year
            shall be equal to the sum of--
                        (A) the amount imposed under this section for the
                    prior fiscal year; and
                        (B) 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.
                (4) Crediting of funds.--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 (8 U.S.C. 1356(m)) 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.
                (5) No waiver.--A fee imposed under this subsection shall
            not be waived or reduced.
        (b) Parole.--
                (1) In general.--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.
                (2) Initial amount.--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.
                (3) Subsequent adjustment.--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--
                        (A) the amount imposed under this subsection for
                    the prior fiscal year; and
                        (B) 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.
                (4) Crediting of funds.--The fees received under this
            section shall be deposited into the general fund of the
            Treasury.
                (5) No waiver.--A fee imposed under this subsection shall
            not be waived or reduced.
        (c) Temporary Protected Status.--
                (1) In general.--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.
                (2) Initial amount.--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.
                (3) Subsequent adjustment.--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--
                        (A) the amount imposed under this subsection for
                    the prior fiscal year; and
                        (B) 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.
                (4) Crediting of certain funds.--The fees received under
            this section shall be deposited into the general fund of the
            Treasury.
                (5) No waiver.--A fee imposed under this subsection shall
            not be waived or reduced.

    SEC. 70004. PAROLE FEE.

        (a) In General.--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--
                (1) the alien has a medical emergency, and--
                        (A) the alien cannot obtain necessary treatment in
                    the foreign state in which the alien is residing; or
                        (B) 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;
                (2) 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;
                (3) 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;
                (4) 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;
                (5) 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;
                (6) 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;
                (7) 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;
                (8) 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;
                (9) the alien--
                        (A) is a national of the Republic of Cuba and is
                    living in the Republic of Cuba;
                        (B) is the beneficiary of an approved petition
                    under section 203(a) of the Immigration and Nationality
                    Act;
                        (C) is an alien for whom an immigrant visa is not
                    immediately available;
                        (D) meets all eligibility requirements for an
                    immigrant visa;
                        (E) is not otherwise inadmissible; and
                        (F) 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
                    Communique 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
                (10) the Secretary of Homeland Security determines that a
            significant public benefit has resulted or will result from the
            parole of an alien only if--
                        (A) the alien has assisted or will assist the
                    United States Government in a law enforcement matter;
                        (B) the alien's presence is required by the
                    Government in furtherance of such law enforcement
                    matter; and
                        (C) 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.
        (b) Initial Amount.--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.
        (c) Subsequent Adjustment.--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--
                (1) the amount imposed under this section for the prior
            fiscal year; and
                (2) 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.
        (d) Crediting of Funds.--Fees received under this section shall be
    deposited in the general fund of the Treasury.
        (e) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70005. SPECIAL IMMIGRANT JUVENILE FEE.

        (a) In General.--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.
        (b) Initial Amount.--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.
        (c) Subsequent Adjustment.--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--
                (1) the amount imposed under this section for the prior
            fiscal year; and
                (2) 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.
        (d) Crediting of Funds.--Fees received under this section shall be
    deposited in the general fund of the Treasury.
        (e) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70006. TEMPORARY PROTECTED STATUS FEE.

        (a) In General.--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--
                (1) has not been admitted into the United States; or
                (2) has been admitted to the United States as a
            nonimmigrant but at the time of application for temporary
            protected status has failed--
                        (A) 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
                        (B) to comply with the conditions of such
                    nonimmigrant status.
        (b) Initial Amount.--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.
        (c) Subsequent Adjustment.--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--
                (1) the amount imposed under this section for the prior
            fiscal year; and
                (2) 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.
        (d) Crediting of Funds.--Fees received under this section shall be
    deposited in the general fund of the Treasury.
        (e) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70007. UNACCOMPANIED ALIEN CHILD SPONSOR FEE.

        (a) In General.--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.
        (b) Initial Amount.--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.
        (c) Subsequent Adjustment.--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--
                (1) the amount imposed under this section for the prior
            fiscal year; and
                (2) 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.
        (d) Crediting of Funds.--During any fiscal year, the total amount
    of fees received under this section shall be subject to the following:
                (1) 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--
                        (A) the name of the individual and all adult
                    residents of the individual's household;
                        (B) the social security number of the individual
                    and all adult residents of the individual's household;
                        (C) the date of birth of the individual and all
                    adult residents of the individual's household;
                        (D) the validated location of the individual's
                    residence where the child will be placed;
                        (E) the immigration status of the individual and
                    all adult residents of the individual's household;
                        (F) contact information for the individual and all
                    adult residents of the individual's household; and
                        (G) 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.
                (2) Any amounts not credited to the Department of Health
            and Human Services shall be deposited into the general fund of
            the Treasury.
        (e) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70008. VISA INTEGRITY FEE.

        (a) Visa Integrity Fee.--
                (1) In general.--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.
                (2) Initial amount.--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.
                (3) Subsequent adjustment.--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--
                        (A) the amount imposed under this section for the
                    prior fiscal year; and
                        (B) 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.
                (4) Crediting of funds.--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.
                (5) No waiver.--A fee imposed under this subsection shall
            not be waived or reduced.
        (b) Fee Reimbursement.--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--
                (1) the alien has not sought admission during such period
            of validity;
                (2) 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
                (3) the alien filed to extend, change, or adjust such
            status within the nonimmigrant visa's period of validity.

    SEC. 70009. FORM I-94 FEE.

        (a) Fee Authorized.--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.
        (b) Fee Specified.--
                (1) Initial amount.--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.
                (2) Subsequent adjustment.--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--
                        (A) the amount imposed under this section for the
                    prior fiscal year; and
                        (B) 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.
        (c) Crediting of Funds.--During any fiscal year, the total amount
    of fees received under this section shall be subject to the following:
                (1) 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 (8 U.S.C.
            1356(q)(2)) 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.
                (2) Any amounts not credited to U.S. Customs and Border
            Protection shall be deposited in the general fund of the
            Treasury.
        (d) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70010. YEARLY ASYLUM FEE.

        (a) Fee Authorized.--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.
        (b) Fee Specified.--
                (1) Initial amount.--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.
                (2) Subsequent adjustment.--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--
                        (A) the amount imposed under this section for the
                    prior fiscal year; and
                        (B) 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.
        (c) Crediting of Funds.--The fees received under this section shall
    be deposited in the general fund of the Treasury.
        (d) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70011. FEE FOR CONTINUANCES GRANTED IN IMMIGRATION COURT
                  PROCEEDINGS.

        (a) In General.--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.
        (b) Fee Specified.--
                (1) Initial amount.--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.
                (2) Subsequent adjustment.--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--
                        (A) the amount imposed under this section for the
                    prior fiscal year; and
                        (B) 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.
        (c) Crediting of Certain Funds.--Amounts received as fees under
    this section shall be deposited in the general fund of the Treasury.
        (d) No Waiver.--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).

    SEC. 70012. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT
                  AUTHORIZATION FOR PAROLEES.

        (a) Fee Imposed.--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).
        (b) Fee Specified.--
                (1) Initial amount.--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.
                (2) Subsequent adjustment.--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--
                        (A) the amount imposed under this subsection for
                    the prior fiscal year; and
                        (B) 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.
        (c) In General.--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.
        (d) Crediting of Funds.--The fees received under this section shall
    be deposited into the general fund of the Treasury.
        (e) No Waiver.--A fee imposed under this subsection shall not be
    waived or reduced.

    SEC. 70013. FEE RELATING TO TERMINATION, RENEWAL, AND EXTENSION OF
                  EMPLOYMENT AUTHORIZATION FOR ASYLUM APPLICANTS.

        (a) Fee Imposed.--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).
        (b) Employment Authorization.--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.
        (c) Termination.--Each initial employment authorization, or renewal
    or extension of such authorization, shall terminate as follows:
                (1) Immediately following the denial of an asylum
            application by an asylum officer, unless the case is referred
            to an immigration judge.
                (2) 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.
                (3) Immediately following the denial by the Board of
            Immigration Appeals of an appeal of a denial of an asylum
            application.
        (d) Prohibition.--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.
        (e) Crediting of Funds.--The total amount of fees received under
    this section shall be deposited in the general fund of the Treasury.
        (f) No Waiver.--A fee imposed under this subsection shall not be
    waived or reduced.

    SEC. 70014. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT
                  AUTHORIZATION FOR ALIENS GRANTED TEMPORARY PROTECTED
                  STATUS.

        (a) Fee Imposed.--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.
        (b) Fee Specified.--
                (1) Initial amount.--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.
                (2) Subsequent adjustment.--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--
                        (A) the amount imposed under this subsection for
                    the prior fiscal year; and
                        (B) 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.
        (c) Employment Authorization.--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.
        (d) Crediting of Funds.--The fees received under this section shall
    be deposited into the general fund of the Treasury.
        (e) No Waiver.--A fee imposed under this subsection shall not be
    waived or reduced.

    SEC. 70015. DIVERSITY IMMIGRANT VISA FEES.

        (a) Fee for Filing a Diversity Immigrant Visa Application.--
                (1) In general.--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 (8 U.S.C. 1153(c)), in the amount specified in
            this subsection at the time such application is filed.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
        (b) Fee for Aliens Who Register for the Diversity Immigrant Visa
    Program.--
                (1) In general.--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 (8 U.S.C. 1153(c)), in the amount specified in
            this subsection at the time of registration.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
        (c) Funds.--During any fiscal year, the total amount of fees
    received under this section shall be subject to the following:
                (1) 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.
                (2) 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.
                (3) Any amounts not used or credited under this subsection
            shall be deposited into the general fund of the Treasury.
        (d) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70016. EOIR FEES.

        (a) Fee for Filing an Application to Adjust Status to That of a
    Lawful Permanent Resident.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Crediting certain funds.--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.
        (b) Fee for Filing an Application for Waiver of Grounds of
    Inadmissibility.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Crediting certain funds.--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.
        (c) Fee for Filing an Application for Temporary Protected Status.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Crediting certain funds.--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.
        (d) Fee for Filing an Appeal From a Decision of an Immigration
    Judge.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Exception.--The fee described in this section shall not
            apply to the appeal of a bond decision.
                (4) Crediting certain funds.--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.
        (e) Fee for Filing an Appeal From a Decision of an Officer of the
    Department of Homeland Security.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Crediting certain funds.--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.
        (f) Fee for Filing an Appeal From a Decision of an Adjudicating
    Official in a Practitioner Disciplinary Case.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Crediting certain funds.--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.
        (g) Fee for Filing a Motion to Reopen or a Motion to Reconsider.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Exceptions.--The fee described in this section shall
            not apply to any motion that is:
                        (A) 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
                        (B) 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.
                (4) Crediting certain funds.--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.
        (h) Fee for Filing an Application for Suspension of Deportation.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Crediting certain funds.--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.
        (i) Fee for Filing an Application for Cancellation of Removal for
    Certain Permanent Residents.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Crediting certain funds.--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.
        (j) Fee for Filing an Application for Cancellation of Removal and
    Adjustment of Status for Certain Nonpermanent Residents.--
                (1) In general.--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.
                (2) Fee specified.--
                        (A) Initial amount.--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.
                        (B) Subsequent adjustment.--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--
                                (i) the amount imposed under this
                            subsection for the prior fiscal year; and
                                (ii) 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.
                (3) Crediting certain funds.--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.
        (k) No Waiver.--Any fee imposed under this section shall not be
    waived or reduced.
        (l) Condition on Funds.--No fees received under this section shall
    be used to fund the Legal Orientation Program or any successor program.

    SEC. 70017. ESTA FEE.

        Section 217(h)(3)(B) of the Immigration and Nationality Act (8
    U.S.C. 1187(h)(3)(B)) is amended--
                (1) in clause (i)--
                        (A) in subclause (I), by striking ``and'' at the
                    end;
                        (B) in subclause (II)--
                                (i) by inserting after ``an amount'' the
                            following ``of not less than $10''; and
                                (ii) by striking the period at the end and
                            inserting ``; and''; and
                        (C) by adding at the end the following:
                                        ``(III) not less than $13.'';
                (2) in clause (ii)--
                        (A) by striking ``Amounts collected under clause
                    (i)(I)'' and inserting the following:
                                        ``(I) In general.--Of the amounts
                                    collected under clause (i)(I) during a
                                    fiscal year, not more than
                                    $20,000,000'';
                        (B) by inserting before the period at the end of
                    the first sentence the following: ``, and the remainder
                    of the amounts collected under clause (i)(I) shall be
                    deposited in the general fund of the Treasury''; and
                        (C) by inserting after ``to pay the costs incurred
                    to administer the System.'' the following: ``Amounts
                    collected under clause (i)(III) shall be deposited in
                    the general fund of the Treasury.'';
                (3) in clause (iii), by striking ``2028'' and inserting
            ``2034''; and
                (4) by adding at the end the following:
                                ``(iv) Subsequent adjustment.--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--
                                        ``(I) the amount imposed under this
                                    subsection for the prior fiscal year;
                                    and
                                        ``(II) 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.''.

    SEC. 70018. IMMIGRATION USER FEES.

        Section 286 of the Immigration and Nationality Act (8 U.S.C. 1356)
    is amended--
                (1) in subsection (d)--
                        (A) by striking ``In addition to any other fee''
                    and inserting the following:
                ``(1) In general.--In addition to any other fee'';
                        (B) by inserting ``and except as provided in
                    subsection (e),'' before ``the Attorney General shall
                    charge and collect'';
                        (C) by striking ``$7'' and inserting ``a fee in an
                    amount specified in paragraph (2)''; and
                        (D) by adding at the end the following:
                ``(2) Initial amount.--For purposes of this section, the
            amount specified in this section for fiscal year 2025 shall be
            not less than $10.
                ``(3) Subsequent adjustment.--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--
                        ``(A) the amount imposed under this subsection for
                    the prior fiscal year; and
                        ``(B) 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.
                ``(4) Crediting of amounts.--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.
                ``(5) No waiver.--A fee imposed under this subsection shall
            not be waived or reduced.''; and
                (2) in subsection (e)--
                        (A) by striking paragraph (1);
                        (B) by redesignating paragraphs (2) and (3) as
                    paragraphs (1) and (2); and
                        (C) in paragraph (2) (as redesignated by
                    subparagraph (B) above), by striking ``The Attorney
                    General shall charge'' and all that follows through
                    ``this requirement shall not apply to'' and inserting
                    the following: ``No fee shall be charged under
                    subsection (d) for''.

    SEC. 70019. EVUS FEE.

        (a) In General.-- 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.
        (b) Amount.--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.
        (c) Subsequent Adjustment.--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--
                (1) the amount imposed under this section for the prior
            fiscal year; and
                (2) 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.
        (d) Crediting of Funds.--
                (1) In general.--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.
                (2) Establishment.--There is hereby established in the
            Treasury of the United States a separate account which shall be
            known as the ``CBP Electronic Visa Update System Account''.
                (3) Appropriation.-- 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.
        (e) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70020. FEE FOR SPONSOR OF UNACCOMPANIED ALIEN CHILD WHO FAILS TO
                  APPEAR IN IMMIGRATION COURT.

        (a) Fee Imposed.--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.
        (b) Fee Specified.--
                (1) Initial amount.--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.
                (2) Subsequent adjustment.--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--
                        (A) the amount imposed under this subsection for
                    the prior fiscal year; and
                        (B) 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.
        (c) Fee Reimbursement.--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.
        (d) Crediting of Funds.--The fees received under this section shall
    be deposited into the general fund of the Treasury.
        (e) No Waiver.--A fee imposed under this subsection shall not be
    waived or reduced.

    SEC. 70021. FEE FOR ALIENS ORDERED REMOVED IN ABSENTIA.

        (a) In General .--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--
                (1) is ordered removed in absentia under section 240(b)(5)
            of the Immigration and Nationality Act (8 U.S.C. 1229a(b)(5));
            and
                (2) is subsequently arrested by U.S. Immigration and
            Customs Enforcement.
        (b) Initial Amount.--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.
        (c) Subsequent Adjustment.--Beginning in fiscal year 2026 and each
    fiscal year thereafter, the amount for a fiscal year shall be equal to
    the sum of--
                (1) the amount imposed under this section for the prior
            fiscal year; and
                (2) 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.
        (d) Crediting of Funds.--The fees received under this section shall
    be deposited into the general fund of the Treasury.
        (e) No Waiver.--A fee imposed under this subsection shall not be
    waived or reduced.
        (f) Exception.--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.

    SEC. 70022. CUSTOMS AND BORDER PROTECTION INADMISSIBLE ALIEN
                  APPREHENSION FEE.

        (a) Fee Imposed.--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.
        (b) Fee Specified.--
                (1) Initial amount.--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.
                (2) Subsequent adjustment.--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--
                        (A) the amount imposed under this subsection for
                    the prior fiscal year; and
                        (B) 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.
        (c) Crediting of Funds.--The fees received under this section shall
    be deposited into the general fund of the Treasury.
        (d) No Waiver.--A fee imposed under this section shall not be
    waived or reduced.

    SEC. 70023. AMENDMENT TO AUTHORITY TO APPLY FOR ASYLUM.

        Section 208(d)(3) of the Immigration and Nationality Act (8 U.S.C.
    1158(d)(3)) is amended--
                (1) in the first sentence, by striking ``may'' and
            inserting ``shall'';
                (2) by striking ``Such fees shall not exceed'' and all that
            follows; and
                (3) by inserting after the first sentence ``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).''.

                              PART 2--USE OF FUNDS

    SEC. 70100. EXECUTIVE OFFICE FOR IMMIGRATION REVIEW.

        (a) Appropriation.--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).
        (b) Use of Funds.--Amounts made available under subsection (a)
    shall only be used for purposes of--
                (1) hiring the support staff necessary to support
            immigration judges;
                (2) hiring immigration judges; and
                (3) expanding courtroom capacity and infrastructure.

    SEC. 70101. ADULT ALIEN DETENTION CAPACITY AND FAMILY RESIDENTIAL
                  CENTERS.

        (a) Appropriation.--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).
        (b) Use of Funds.--Amounts made available under subsection (a)
    shall only be used for family residential center capacity and single
    adult alien detention capacity.
        (c) Duration.--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.
        (d) Family Residential Center Defined.--In this section, the term
    ``family residential center'' 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.
        (e) Detention Standards.--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.

    SEC. 70102. RETENTION AND SIGNING BONUSES FOR U.S. IMMIGRATION AND
                  CUSTOMS ENFORCEMENT PERSONNEL.

        (a) Appropriation.--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).
        (b) Retention Bonuses.--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.
        (c) Signing Bonuses.--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.
        (d) Rules for Bonuses.--U.S. Customs and Immigration Enforcement
    shall provide qualifying individuals with written service agreements
    that include--
                (1) the commencement and termination dates of the required
            service period (or provisions for the determination thereof);
                (2) the amount of the bonus; and
                (3) other terms and conditions under which the bonus is
            payable, subject to the requirements of this subsection,
            including--
                        (A) the conditions under which the agreement may be
                    terminated before the agreed-upon service period has
                    been completed; and
                        (B) the effect of a termination described in
                    subparagraph (A).

    SEC. 70103. HIRING OF ADDITIONAL U.S. IMMIGRATION AND CUSTOMS
                  ENFORCEMENT PERSONNEL.

        (a) Appropriation.--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).
        (b) Use of Funds.--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--
                (1) 2,500 individuals hired in fiscal year 2025;
                (2) 1,875 individuals hired in 2026;
                (3) 1,875 individuals hired in 2027;
                (4) 1,875 individuals hired in 2028; and
                (5) 1,875 individuals hired in 2029.

    SEC. 70104. U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT HIRING CAPABILITY.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70105. TRANSPORTATION AND REMOVAL OPERATIONS.

        (a) Appropriation.--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).
        (b) Use of Funds.--Amounts made available under subsection (a)
    shall only be used for transportation and removal operations and for
    ensuring the departure of aliens.

    SEC. 70106. INFORMATION TECHNOLOGY INVESTMENTS.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70107. FACILITIES UPGRADES.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70108. FLEET MODERNIZATION.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70109. PROMOTING FAMILY UNITY.

        (a) Appropriation.--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).
        (b) Use of Funds.--The funds made available under subsection (a)
    shall only be used to--
                (1) maintain the care and custody, during the period in
            which the charges described in subparagraph (A) are pending, of
            an alien who--
                        (A) is charged only with a misdemeanor offense
                    under section 275(a) of the Immigration and Nationality
                    Act (8 U.S.C. 1325(a)); and
                        (B) entered the United States with the alien's
                    child who has not attained 18 years of age; and
                (2) detain the alien with the alien's child.

    SEC. 70110. FUNDING SECTION 287(G) OF THE IMMIGRATION AND NATIONALITY
                  ACT.

        (a) Appropriation.--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).
        (b) Use of Funds.--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
    (8 U.S.C. 1357(g)).

    SEC. 70111. COMPENSATION FOR INCARCERATION OF CRIMINAL ALIENS.

        (a) Appropriation.--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).
        (b) Use of Funds.--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--
                (1) has been convicted of a felony or two or more
            misdemeanors; and
                (2)(A) entered the United States without inspection or at
            any time or place other than as designated by the Secretary of
            Homeland Security;
                (B) 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
                (C) 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.
        (c) Limitation.--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:
                (1) Complying with the immigration laws (as defined in
            section 101(a)(17) of the Immigration and Nationality Act (8
            U.S.C. 1101(a)(17)).
                (2) Assisting or cooperating with Federal law enforcement
            entities, officials, or other personnel regarding the
            enforcement of the immigration laws.
                (3) 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:
                        (A) Making inquiries to any individual to obtain
                    such information regarding such individual or any other
                    individuals.
                        (B) 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.
                        (C) Complying with requests for such information
                    from Federal law enforcement entities, officials, or
                    other personnel.

    SEC. 70112. OFFICE OF THE PRINCIPAL LEGAL ADVISOR.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70113. RETURN OF ALIENS ARRIVING FROM CONTIGUOUS TERRITORY.

        (a) Appropriation.--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).
        (b) Use of Funds.--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 (8 U.S.C.
    1225(b)(2)(C)).

    SEC. 70114. STATE AND LOCAL PARTICIPATION IN HOMELAND SECURITY EFFORTS.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70115. UNACCOMPANIED ALIEN CHILDREN CAPACITY.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70116. DEPARTMENT OF HOMELAND SECURITY CHECKS FOR UNACCOMPANIED
                  ALIEN CHILDREN.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.
        (c) Unaccompanied Alien Child Defined.--In this section, the term
    ``unaccompanied alien child'' shall have the meaning given such term in
    section 462(g) of the Homeland Security Act of 2002.

    SEC. 70117. DEPARTMENT OF HEALTH AND HUMAN SERVICES CHECKS FOR
                  UNACCOMPANIED ALIEN CHILDREN.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.
        (c) Unaccompanied Alien Child Defined.--In this section, the term
    ``unaccompanied alien child'' shall have the meaning given such term in
    section 462(g) of the Homeland Security Act of 2002.

    SEC. 70118. INFORMATION ABOUT SPONSORS AND ADULT RESIDENTS OF SPONSOR
                  HOUSEHOLDS.

        (a) Appropriation.--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).
        (b) Information About Individuals With Whom Unaccompanied Alien
    Children Are Placed and Reside.--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--
                (1) the name of the individual and all adult residents of
            the individual's household;
                (2) the social security number of the individual and all
            adult residents of the individual's household;
                (3) the date of birth of the individual and all adult
            residents of the individual's household;
                (4) the validated location of the individual's residence
            where the child will be placed;
                (5) the immigration status of the individual and all adult
            residents of the individual's household;
                (6) contact information for the individual and all adult
            residents of the individual's household; and
                (7) 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.
        (c) Unaccompanied Alien Child Defined.--In this section, the term
    ``unaccompanied alien child'' shall have the meaning given such term in
    section 462(g) of the Homeland Security Act of 2002.

    SEC. 70119. REPATRIATION OF UNACCOMPANIED ALIEN CHILDREN.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.
        (c) Definitions.--In this section--
                (1) Specified unaccompanied alien child.--The term
            ``specified unaccompanied alien child'' 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--
                        (A) 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;
                        (B) 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
                        (C) 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.
                (2) Severe forms of trafficking in persons.--The term
            ``severe forms of trafficking in persons'' shall have the
            meaning given such term in section 103 of the Trafficking
            Victims Protection Act of 2000.

    SEC. 70120. UNITED STATES SECRET SERVICE.

        (a) Appropriation.--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).
        (b) Use of Funds.--Amounts made available under subsection (a)
    shall only be used for additional United States Secret Service
    resources, including personnel, training facilities, and technology.

    SEC. 70121. COMBATING DRUG TRAFFICKING AND ILLEGAL DRUG USE.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70122. INVESTIGATING AND PROSECUTING IMMIGRATION RELATED MATTERS.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70123. EXPEDITED REMOVAL FOR CRIMINAL ALIENS.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

    SEC. 70124. REMOVAL OF CERTAIN CRIMINAL ALIENS WITHOUT FURTHER HEARING.

        (a) Appropriation.--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).
        (b) Use of Funds.--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.

                         Subtitle B--Regulatory Matters

    SEC. 70200. REVIEW OF AGENCY RULEMAKING.

        (a) Deregulation Initiative.--
                (1) Appropriation.--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.
                (2) Use of funds.--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.
        (b) Definitions.--In this section:
                (1) Covered agency.--The term ``covered agency''--
                        (A) means--
                                (i) the Department of Education;
                                (ii) the Department of Energy;
                                (iii) the Department of Health and Human
                            Services;
                                (iv) the Department of Homeland Security;
                                (v) the Department of Justice;
                                (vi) the Consumer Financial Protection
                            Bureau; and
                                (vii) the Environmental Protection Agency;
                            and
                        (B) does not include the Social Security
                    Administration.
                (2) Rule.--The term ``rule'' 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.

                           Subtitle C--Other Matters

    SEC. 70300. LIMITATION ON DONATIONS MADE PURSUANT TO SETTLEMENT
                  AGREEMENTS TO WHICH THE UNITED STATES IS A PARTY.

        (a) Limitation on Required Donations.--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.
        (b) Penalty.--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.
        (c) Effective Date.--Subsections (a) and (b) apply only in the case
    of a settlement agreement entered on or after the date of enactment of
    this Act.
        (d) Definition.--The term ``settlement agreement'' means a
    settlement agreement resolving a civil action or potential civil
    action.
        (e) Annual Audit Requirement.--
                (1) In general.--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--
                        (A) the Committee on the Judiciary of the Senate;
                    and
                        (B) the Committee on the Judiciary of the House of
                    Representatives.
                (2) Prohibition on additional funding.--No additional funds
            are authorized to be appropriated to carry out this subsection.

    SEC. 70301. SOLICITATION OF ORDERS DEFINED.

        Section 101(d) of Public Law 86--272 (73 Stat. 555) is amended--
                (1) in paragraph (1) by striking ``and'' at the end,
                (2) in paragraph (2) by striking the period at the end and
            inserting ``; and'', and
                (3) by adding at the end the following:
                ``(3) the term `solicitation of orders' 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.''.

    SEC. 70302. RESTRICTION ON ENFORCEMENT.

        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.

                   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.

        (a) Requirement to Immediately Resume Onshore Oil and Gas Lease
    Sales.--
                (1) In general.--The Secretary of the Interior shall
            immediately resume quarterly onshore oil and gas lease sales in
            compliance with the Mineral Leasing Act.
                (2) Requirement.--The Secretary of the Interior shall
            ensure--
                        (A) 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
                        (B) that the processes described in subparagraph
                    (A) are conducted in a timely manner to ensure
                    compliance with subsection (b)(1).
                (3) Lease of oil and gas lands.--Section 17(b)(1)(A) of the
            Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)) is amended by
            inserting ``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.'' after ``sales are
            necessary.''.
        (b) Quarterly Lease Sales.--
                (1) In general.--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:
                        (A) Wyoming.
                        (B) New Mexico.
                        (C) Colorado.
                        (D) Utah.
                        (E) Montana.
                        (F) North Dakota.
                        (G) Oklahoma.
                        (H) Nevada.
                        (I) Alaska.
                        (J) 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.
                (2) Requirement.--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.
                (3) Replacement sales.--The Secretary of the Interior shall
            conduct a replacement sale during the same fiscal year if--
                        (A) a lease sale under paragraph (1) is canceled,
                    delayed, or deferred, including for a lack of eligible
                    parcels; or
                        (B) 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.
        (c) Leasing of Oil and Gas.--Section 17 of the Mineral Leasing Act
    (30 U.S.C. 226) is amended--
                (1) by striking the section designation and all that
            follows through the end of subsection (a) and inserting the
            following:

    ``SEC. 17. LEASING OF OIL AND GAS.

        ``(a) Leasing.--
                ``(1) In general.--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 (43 U.S.C. 1712) and such land use
            plan--
                        ``(A) applies to the planning area in which the
                    land is located; and
                        ``(B) is in effect on the date on which the
                    expression of interest was submitted to the Secretary.
                ``(2) Land use plans terms and conditions.--A lease issued
            by the Secretary under this section--
                        ``(A) shall include any terms and conditions of the
                    land use plan that apply to the area of the lease; and
                        ``(B) shall not require any stipulations or
                    mitigation requirements not included in such land use
                    plan.'';
                (2) in subsection (p)--
                        (A) in paragraph (1), by inserting ``conduct a
                    complete review of the application with all applicable
                    agency staff required for the Secretary to determine
                    the application is complete and'' after ``drill, the
                    Secretary shall''; and
                        (B) by adding at the end the following:
                ``(4) Term.--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.
                ``(5) Effect of pending civil action on processing
            applications for permits to drill.--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.''; and
                (3) by striking subsection (q) and inserting the following:
        ``(q) Other Requirements.--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.''.

    SEC. 80102. NONCOMPETITIVE LEASING.

        (a) Noncompetitive Leasing.--Section 17 of the Mineral Leasing Act
    (30 U.S.C. 226) is further amended--
                (1) in subsection (b)--
                        (A) in paragraph (1)(A)--
                                (i) in the first sentence, by striking
                            ``paragraph (2)'' and inserting ``paragraph (2)
                            or (3)''; and
                                (ii) by adding at the end ``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.''; and
                        (B) by adding at the end the following:
        ``(3)(A) 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).
        ``(B) An election under this paragraph is effective--
                ``(i) 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;
                ``(ii) 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
                ``(iii) 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.'';
                (2) by striking subsection (c) and inserting the following:
        ``(c) Lands Subject to Leasing Under Subsection (b); First
    Qualified Applicant.--
                ``(1) 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.
                ``(2)(A) 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.
                ``(B) 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.''; and
                (3) by striking subsection (e) and inserting the following:
        ``(e) Primary Term.--Competitive and noncompetitive leases issued
    under this section shall be for a primary term of 10 years: Provided,
    however, 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.''.
        (b) Failure to Comply With Provisions of Lease.--Section 31 of the
    Mineral Leasing Act (30 U.S.C. 188) is amended--
                (1) in subsection (d)(1), by striking ``section 17(b)'' and
            inserting ``subsection (b) or (c) of section 17 of this Act'';
                (2) in subsection (e)--
                        (A) in paragraph (2)--
                                (i) by inserting ``either'' after ``rentals
                            and''; and
                                (ii) by inserting ``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''
                            before ``as determined by the Secretary''; and
                        (B) by amending paragraph (3) to read as follows:
                ``(3)(A) 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\2/3\ 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:
            Provided, 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;
                ``(B) 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\2/3 \percent: Provided, 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'';
                (3) in subsection (f)--
                        (A) in paragraph (1), by striking ``in the same
                    manner as the original lease issued pursuant to section
                    17'' and inserting ``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'';
                        (B) by adding at the end the following:
        ``(4) 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.'';
                (4) in subsection (g), by striking ``subsection (d)'' and
            inserting ``subsections (d) and (j)'';
                (5) by amending subsection (h) to read as follows:
        ``(h) Royalty Reductions.--
                ``(1) 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.
                ``(2) 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.''; and
                (6) by adding at the end the following:
        ``(j) Issuance of Noncompetitive Oil and Gas Lease; Conditions.--
    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--
                ``(1) 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--
                        ``(A) 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
                        ``(B) 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;
                ``(2) 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: Provided, however, 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;
                ``(3) 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;
                ``(4) 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 12\1/2\ percent; and
                ``(5) 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.''.

    SEC. 80103. PERMIT FEES.

        Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is further
    amended by adding at the end the following:
        ``(r) Fee for Commingling of Production.--
                ``(1) In general.--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.
                ``(2) Revenue allocation.--Fees received under this
            subsection shall be deposited into the Treasury as
            miscellaneous receipts.
        ``(s) Fees for Permits-by-rule.--
                ``(1) In general.--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.
                ``(2) Revenue allocation.--Fees received under this
            subsection shall be deposited into the Treasury as
            miscellaneous receipts.''.

    SEC. 80104. PERMITTING FEE FOR NON-FEDERAL LAND.

        (a) In General.--Notwithstanding section 17 of the Mineral Leasing
    Act (30 U.S.C. 226), 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--
                (1) the Federal Government--
                        (A) owns less than 50 percent of the minerals
                    within the oil and gas drilling or spacing unit; and
                        (B) does not own or lease the surface estate within
                    the area directly impacted by the action; or
                (2) 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.
        (b) Notification.--For each State permit to drill or drilling plan
    that would impact or extract oil and gas owned by the Federal
    Government--
                (1) each lessee of Federal minerals in the unit, or
            designee of a lessee, shall--
                        (A) 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;
                        (B) 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
                        (C) pay to the Secretary of the Interior the $5,000
                    fee referenced in subsection (a) of this section;
                (2) 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
                (3) 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.
        (c) Effect.--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.
        (d) Revenue Allocation.--Fees received under this section shall be
    deposited into the Treasury as miscellaneous receipts.
        (e) Authority on Non-Federal Land.--Section 17(g) of the Mineral
    Leasing Act (30 U.S.C. 226(g)) is amended--
                (1) by striking the subsection designation and all that
            follows through ``Secretary of the Interior, or'' in the first
            sentence and inserting the following:
        ``(g) Regulation of Surface Disturbing Activities.--
                ``(1) In general.--The Secretary of the Interior, or''; and
                (2) by adding at the end the following:
                ``(2) Authority on non-federal land.--
                        ``(A) In general.--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--
                                ``(i) require a bond to protect non-Federal
                            land;
                                ``(ii) enter non-Federal land without the
                            consent of the applicable landowner;
                                ``(iii) impose mitigation requirements; or
                                ``(iv) require approval for surface
                            reclamation.
                        ``(B) Land.--Land referred to in subparagraph (A)
                    is land where--
                                ``(i) the Federal Government--
                                        ``(I) owns less than 50 percent of
                                    the minerals within the oil and gas
                                    drilling or spacing unit; and
                                        ``(II) does not own or lease the
                                    surface estate within the area directly
                                    impacted by the action;
                                ``(ii) 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
                                ``(iii) 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.
                        ``(C) No federal action.--An oil and gas
                    exploration or production activity carried out under a
                    lease described in subparagraph (A)--
                                ``(i) shall require no Federal action; and
                                ``(ii) may commence 30 days after the
                            leaseholder submits the State permit to the
                            Secretary.''.

    SEC. 80105. REINSTATE REASONABLE ROYALTY RATES.

        (a) Offshore Oil and Gas Royalty Rate.--Section 8(a)(1) of the
    Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) is amended--
                (1) in subparagraph (A), by striking ``not less than 16\2/
            3\ percent, but not more than 18\3/4\ percent, during the 10-
            year period beginning on the date of enactment of the Act
            titled `An Act to provide for reconciliation pursuant to title
            II of S. Con. Res. 14', and not less than 16\2/3\ percent
            thereafter,'' and inserting ``not less than 12.5 percent, but
            not more than 18\3/4\ percent,'';
                (2) in subparagraph (C), by striking ``not less than 16\2/
            3\ percent, but not more than 18\3/4\ percent, during the 10-
            year period beginning on the date of enactment of the Act
            titled `An Act to provide for reconciliation pursuant to title
            II of S. Con. Res. 14', and not less than 16\2/3\ percent
            thereafter,'' and inserting ``not less than 12.5 percent, but
            not more than 18\3/4\ percent,'';
                (3) in subparagraph (F), by striking ``not less than 16\2/
            3\ percent, but not more than 18\3/4\ percent, during the 10-
            year period beginning on the date of enactment of the Act
            titled `An Act to provide for reconciliation pursuant to title
            II of S. Con. Res. 14', and not less than 16\2/3\ percent
            thereafter,'' and inserting ``not less than 12.5 percent, but
            not more than 18\3/4\ percent,''; and
                (4) in subparagraph (H), by striking ``not less than 16\2/
            3\ percent, but not more than 18\3/4\ percent, during the 10-
            year period beginning on the date of enactment of the Act
            titled `An Act to provide for reconciliation pursuant to title
            II of S. Con. Res. 14', and not less than 16\2/3\ percent
            thereafter,'' and inserting ``not less than 12.5 percent, but
            not more than 18\3/4\ percent,''.
        (b) Onshore Oil and Gas Royalty Rates.--Section 17 of the Mineral
    Leasing Act (30 U.S.C. 226) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (1)(A), by striking ``the Act
                    titled `An Act to provide for reconciliation pursuant
                    to title II of S. Con. Res. 14', 16\2/3\'' and
                    inserting ``subsection (s), 12.5''; and
                        (B) in paragraph (2)(A)(ii), by striking ``16\2/3\
                    percent'' and inserting ``16\2/3\ percent or, in the
                    case of a lease issued on or after the date of
                    enactment of subsection (s), 12.5 percent'';
                (2) in subsection (l), by striking ``16\2/3\ percent'' each
            place it appears and inserting ``16\2/3\ percent or, in the
            case of a lease issued on or after the date of enactment of
            subsection (s), 12.5 percent''; and
                (3) in subsection (n)(1)(C), by striking ``16\2/3\
            percent'' and inserting ``16\2/3\ percent or, in the case of a
            lease issued on or after the date of enactment of subsection
            (s), 12.5 percent''.

                               PART 2--GEOTHERMAL

    SEC. 80111. GEOTHERMAL LEASING.

        Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C.
    1003(b)) is amended--
                (1) in paragraph (2), by striking ``2 years'' and inserting
            ``year''; and
                (2) by adding at the end the following:
                ``(5) Replacement sales.--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.
                ``(6) Requirement.--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.''.

    SEC. 80112. GEOTHERMAL ROYALTIES.

        Section 5(a)(1) of the Geothermal Steam Act of 1970 (30 U.S.C.
    1004(a)(1)) is amended--
                (1) in subparagraph (A)--
                        (A) by inserting ``with respect to each electric
                    generating facility producing electricity,'' before
                    ``not less than''; and
                        (B) by inserting by ``by such facility'' after
                    ``produced''; and
                (2) in subparagraph (B)--
                        (A) by inserting ``with respect to each electric
                    generating facility producing electricity,'' before
                    ``not less than''; and
                        (B) by inserting by ``by such facility'' after
                    ``produced''.

                                 PART 3--ALASKA

    SEC. 80121. COASTAL PLAIN OIL AND GAS LEASING.

        (a) Definitions.--In this section:
                (1) Coastal plain.--The term ``Coastal Plain'' has the
            meaning given the term in section 20001(a) of Public Law 115-97
            (16 U.S.C. 3143 note).
                (2) Oil and gas program.--The term ``oil and gas program''
            means the oil and gas program established under section
            20001(b)(2) of Public Law 115-97 (16 U.S.C. 3143 note).
                (3) Secretary.--The term ``Secretary'' means the Secretary
            of the Interior.
        (b) Administration.--Not later than 30 days after the date of
    enactment of this Act, the Secretary shall--
                (1) withdraw--
                        (A) the supplemental environmental impact statement
                    described in the notice of availability of the Bureau
                    of Land Management entitled ``Notice of Availability of
                    the Final Coastal Plain Oil and Gas Leasing Program
                    Supplemental Environmental Impact Statement, Alaska''
                    (89 Fed. Reg. 88805 (November 8, 2024)); and
                        (B) the record of decision described in the notice
                    of availability of the Bureau of Land Management
                    entitled ``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'' (89 Fed. Reg. 101042
                    (December 13, 2024)); and
                (2) reinstate--
                        (A) the environmental impact statement described in
                    the notice of availability of the Bureau of Land
                    Management entitled ``Notice of Availability of the
                    Final Environmental Impact Statement for the Coastal
                    Plain Oil and Gas Leasing Program, Alaska'' (84 Fed.
                    Reg. 50472 (September 25, 2019)); and
                        (B) the record of decision described in the notice
                    of availability of the Bureau of Land Management
                    entitled ``Notice of Availability of the Record of
                    Decision for the Final Environmental Impact Statement
                    for the Coastal Plain Oil and Gas Leasing Program,
                    Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)).
        (c) Reissuance of Cancelled Leases.--
                (1) Acceptance of bids.--Not later than 30 days after the
            date of enactment of this Act, the Secretary shall, without
            modification or delay--
                        (A) 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
                    Public Law 115-97 (16 U.S.C. 3143 note); and
                        (B) provide the appropriate lease form to each
                    successful bidder under subparagraph (A) to execute and
                    return to the Secretary.
                (2) Lease issuance.--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--
                        (A) the applicable regulations, as in effect on
                    January 6, 2021; and
                        (B) the terms and conditions of the record of
                    decision described in subsection (b)(2)(B).
                (3) Terms and conditions.--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 ``Notice of Availability
            of the Record of Decision for the Final Environmental Impact
            Statement for the Coastal Plain Oil and Gas Leasing Program,
            Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)).
                (4) Exception.--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.
        (d) Lease Sales Required.--
                (1) In general.--Subject to paragraph (2), in addition to
            the lease sales required under section 20001(c)(1)(A) of Public
            Law 115-97 (16 U.S.C. 3143 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.
                (2) Sale acreages; schedule.--The Secretary shall offer--
                        (A) an initial lease sale under paragraph (1) not
                    later than 1 year after the date of the enactment of
                    this Act;
                        (B) a second lease sale under paragraph (1) not
                    later than 3 years after the date of the enactment of
                    this Act;
                        (C) a third lease sale under paragraph (1) not
                    later than 5 years after the date of the enactment of
                    this Act;
                        (D) a fourth lease sale under paragraph (1) not
                    later than 7 years after the date of the enactment of
                    this Act; and
                        (E)(i) 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
                        (ii) 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.
                (3) Leasing certainty.--The record of decision described in
            subsection (b)(2)(B) shall be considered to satisfy the
            requirements of--
                        (A) the Alaska National Interest Lands Conservation
                    Act;
                        (B) the National Environmental Policy Act of 1969;
                        (C) Public Law 115-97;
                        (D) the Endangered Species Act of 1973;
                        (E) subchapter II of chapter 5 of title 5, United
                    States Code, and chapter 7 of title 5, United States
                    Code; and
                        (F) the Marine Mammal Protection Act of 1972.
        (e) Lease Issuance.--Leases shall be reissued or issued under
    subsections (c) and (d)--
                (1) 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;
                (2) in accordance with the applicable regulations, as in
            effect on January 6, 2021; and
                (3) 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 ``Notice of Availability
            of the Record of Decision for the Final Environmental Impact
            Statement for the Coastal Plain Oil and Gas Leasing Program,
            Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)).
        (f) Geophysical Surveys.--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.
        (g) Receipts.--Notwithstanding section 35 of the Mineral Leasing
    Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law 115-97 (16
    U.S.C. 668dd 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--
                (1)(A) for fiscal years 2025 through 2034, 50 percent shall
            be paid to the State of Alaska; and
                (B) for fiscal year 2035 and thereafter, 90 percent shall
            be paid to the State of Alaska; and
                (2) the balance shall be deposited into the Treasury as
            miscellaneous receipts.
        (h) Judicial Preclusion.--
                (1) In general.--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--
                        (A) reissue a lease pursuant to subsection (c) or
                    issue a lease under a lease sale conducted under
                    subsection (d); or
                        (B) 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.
                (2) Petition by leaseholder.--
                        (A) In general.--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.
                        (B) Deadlines.--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.

                                  PART 4--COAL

    SEC. 80141. COAL LEASING.

        (a) Mandatory Leasing and Other Required Approvals.--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--
                (1) with respect to each qualified application--
                        (A) if not previously published for public comment,
                    publish any required environmental review;
                        (B) finalize the fair market value of the
                    applicable coal tract;
                        (C) hold a lease sale with respect to the
                    applicable coal tract;
                        (D) take all other intermediate actions necessary
                    to grant the qualified application; and
                        (E) 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
                (2) with respect to previously issued coal leases, grant
            any additional approvals of the Department of the Interior
            required for mining activities to commence.
        (b) Leases for Known Recoverable Coal Resources.--Notwithstanding
    section 2(a)(3)(A) of the Mineral Leasing Act (30 U.S.C. 201(a)(3)(A))
    and section 202(a) of the Federal Land Policy and Management Act of
    1976 (43 U.S.C. 1712(a)), 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--
                (1) a National Monument;
                (2) a National Recreation Area;
                (3) a component of the National Wilderness Preservation
            System;
                (4) a component of the National Wild and Scenic Rivers
            System;
                (5) a component of the National Trails System;
                (6) a National Conservation Area;
                (7) a unit of the National Wildlife Refuge System;
                (8) a unit of the National Fish Hatchery System;
                (9) a unit of the National Park System;
                (10) a National Preserve;
                (11) a National Seashore or National Lakeshore;
                (12) a National Historic Site;
                (13) a National Memorial;
                (14) a National Battlefield, National Battlefield Park,
            National Battlefield Site, or National Military Park; or
                (15) a National Historical Park.
        (c) Definitions.--In this section:
                (1) Coal lease.--The term ``coal lease'' 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.
                (2) Qualified application.--The term ``qualified
            application'' 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.

    SEC. 80142. FUTURE COAL LEASING.

        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.

    SEC. 80143. COAL ROYALTY.

        (a) Rate.--Section 7(a) of the Mineral Leasing Act (30 U.S.C.
    207(a)) is amended by striking ``12\1/2\ per centum'' and inserting
    ``12\1/2\ 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,''.
        (b) Retroactivity.--The amendment made by subsection (a) shall
    apply to a coal lease--
                (1) issued under section 2 of the Mineral Leasing Act (30
            U.S.C. 201) before, on, or after the date of the enactment of
            this subtitle; and
                (2) that has not been terminated.
        (c) Advance Royalties.--
                (1) In general.--With respect to a lease issued under
            section 2 of the Mineral Leasing Act (30 U.S.C. 201) for which
            the lessee has paid advance royalties under section 7(b) of
            that Act (30 U.S.C. 207(b)), 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.
                (2) Refund of excess credits.--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.

    SEC. 80144. AUTHORIZATION TO MINE FEDERAL MINERALS.

        (a) In General.--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.
        (b) Definitions.--In this section:
                (1) Bull mountains mining plan modification.--The term
            ``Bull Mountains Mining Plan Modification'' 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 ``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'' (November
            18, 2020).
                (2) Covered federal land.--The term ``covered Federal
            land'' means the following land comprising approximately 800
            acres:
                        (A) The NE \1/4\ of sec. 8, T. 6 N., R. 27 E.,
                    Montana Principal Meridian.
                        (B) The SW \1/4\ of sec. 10, T. 6 N., R. 27 E.,
                    Montana Principal Meridian.
                        (C) The W \1/2\, SE \1/4\ of sec. 22, T. 6 N., R.
                    27 E., Montana Principal Meridian.

                                  PART 5--NEPA

    SEC. 80151. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS.

         The National Environmental Policy Act of 1969 is amended by
    inserting after section 111 (42 U.S.C. 4336e) the following:

    ``SEC. 112. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS.

        ``(a) Process.--
                ``(1) Project sponsor.--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--
                        ``(A) a description of the project; and
                        ``(B) a declaration of whether the project sponsor
                    intends to prepare the environmental assessment or
                    environmental impact statement under section 107(f) of
                    this title.
                ``(2) Notice of amount of fee.--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).
                ``(3) Payment of fee.--A project sponsor may pay a fee
            under this section after receipt of the notice described in
            paragraph (2).
                ``(4) Deadline for environmental reviews for which a fee is
            paid.--Notwithstanding section 107(g)(1)--
                        ``(A) 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
                        ``(B) 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).
        ``(b) Fee Amount.--The amount of a fee under this section shall
    be--
                ``(1) 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
                ``(2) 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.
        ``(c) Judicial Review.--
                ``(1) EA; eis.--There shall be no judicial review of an
            environmental assessment or environmental impact statement for
            which a fee is paid under this section.
                ``(2) FONSI; rod.--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.
        ``(d) Revenue Allocation.--Fees received under this section shall
    be deposited into the Treasury as miscellaneous receipts.''.

    SEC. 80152. RESCISSION RELATING TO ENVIRONMENTAL AND CLIMATE DATA
                  COLLECTION.

        The unobligated balance of any amounts made available under section
    60401 of Public Law 117-169 is rescinded.

                             PART 6--MISCELLANEOUS

    SEC. 80161. PROTEST FEES.

        Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is further
    amended by adding at the end the following:
        ``(t) Protest Filing Fee.--
                ``(1) In general.--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.
                ``(2) Amount.--The amount described in this paragraph is
            calculated as follows:
                        ``(A) For each protest filed in a submission not
                    exceeding 10 pages in length, the base filing fee shall
                    be $150.
                        ``(B) 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.
                        ``(C) 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.
                ``(3) Adjustment.--
                        ``(A) In general.--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.
                        ``(B) Publication of adjusted filing fees.--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.
                ``(4) Revenue allocation.--All revenues collected under
            this paragraph shall be deposited in the Treasury as
            miscellaneous receipts.''.

                      PART 7--OFFSHORE OIL AND GAS LEASING

    SEC. 80171. MANDATORY OFFSHORE OIL AND GAS LEASE SALES.

        (a) In General.--
                (1) Gulf of america.--
                        (A) In general.--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.
                        (B) Location requirement.--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 ``Notice
                    of Availability of the 2017-2022 Outer Continental
                    Shelf Oil and Gas Leasing Proposed Final Program'' (81
                    Fed. Reg. 84612; published November 23, 2016).
                        (C) Acreage requirement.--For each lease sale held
                    under this paragraph, the Secretary shall offer for
                    lease--
                                (i) not fewer than 80,000,000 acres; or
                                (ii) if there are fewer than 80,000,000
                            acres that are unleased, all such unleased
                            acres.
                        (D) Timing requirement.--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:
                                (i) December 15, 2025.
                                (ii) March 15, 2026.
                                (iii) August 15, 2026.
                                (iv) March 15, 2027.
                                (v) August 15, 2027.
                                (vi) March 15, 2028.
                                (vii) August 15, 2028.
                                (viii) March 15, 2029.
                                (ix) August 15, 2029.
                                (x) March 15, 2030.
                                (xi) August 15, 2030.
                                (xii) March 15, 2031.
                                (xiii) August 15, 2031.
                                (xiv) March 15, 2032.
                                (xv) August 15, 2032.
                                (xvi) March 15, 2033.
                                (xvii) August 15, 2033.
                                (xviii) March 15, 2034.
                                (xix) August 15, 2034.
                                (xx) March 15, 2035.
                                (xxi) August 15, 2035.
                                (xxii) March 15, 2036.
                                (xxiii) August 15, 2036.
                                (xxiv) March 15, 2037.
                                (xxv) August 15, 2037.
                                (xxvi) March 15, 2038.
                                (xxvii) August 15, 2038.
                                (xxviii) March 15, 2039.
                                (xxix) August 15, 2039.
                                (xxx) March 15, 2040.
                        (E) Lease terms and conditions.--
                                (i) In general.--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 ``Gulf
                            of Mexico Outer Continental Shelf Region-Wide
                            Oil and Gas Lease Sale 254'' (85 Fed. Reg.
                            8010; published February 12, 2020).
                                (ii) Update.--The Secretary is authorized
                            to update stipulations 1 through 3 of the final
                            notice of sale titled ``Gulf of Mexico Outer
                            Continental Shelf Region-Wide Oil and Gas Lease
                            Sale 254'' (85 Fed. Reg. 8010; published
                            February 12, 2020) to reflect current
                            conditions for lease sales held under this
                            paragraph.
                                (iii) Deepwater term.--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.
                (2) Cook inlet planning area.--
                        (A) In general.--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.
                        (B) Location requirement.--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 ``Notice of Availability of the 2017-2022 Outer
                    Continental Shelf Oil and Gas Leasing Proposed Final
                    Program'' (81 Fed. Reg. 84612; published November 23,
                    2016).
                        (C) Acreage requirement.--For each lease sale held
                    under this paragraph, the Secretary shall offer for
                    lease--
                                (i) not fewer than 1,000,000 acres; or
                                (ii) if there are fewer than 1,000,000
                            acres that are unleased, all such unleased
                            acres.
                        (D) Timing requirement.--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:
                                (i) March 15, 2026.
                                (ii) March 15, 2027.
                                (iii) August 15, 2028.
                                (iv) March 15, 2030.
                                (v) August 15, 2031.
                                (vi) March 15, 2032.
                        (E) Lease terms and conditions.--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 ``Outer Continental Shelf Cook
                    Inlet, Alaska, Oil and Gas Lease Sale 244'' (82 Fed.
                    Reg. 23163; published May 22, 2017).
                        (F) Revenue sharing.--Notwithstanding section 8(g)
                    and 9 of the Outer Continental Shelf Lands Act (43
                    U.S.C. 1337(g) and 1338), and beginning in fiscal year
                    2035, of the bonuses, rents, royalties, and other
                    revenues derived from leases issued pursuant to this
                    paragraph--
                                (i) 90 percent shall be paid to the State
                            of Alaska; and
                                (ii) 10 percent shall be deposited in the
                            Treasury as miscellaneous receipts.
        (b) Lease Sales Held Under Proposed Final Program.--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 ``Notice of Availability of the 2024-2029 National Outer
    Continental Shelf Oil and Gas Leasing Proposed Final Program and Final
    Programmatic Environmental Impact Statement'' (88 Fed. Reg. 67798;
    published October 2, 2023).
        (c) Other Requirements.--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 Public Law 117-169 in
    the Gulf of America--
                (1) 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;
                (2) the final programmatic environmental impact statement
            referenced in the notice of availability titled ``Final
            Programmatic Environmental Impact Statement for the 2017-2022
            Outer Continental Shelf (OCS) Oil and Gas Leasing Program'' (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 ``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'' (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
                (3) the consistency determinations prepared by the Bureau
            of Ocean Energy Management under section 307 of the Coastal
            Zone Management Act of 1972 (16 U.S.C. 1456) for Lease Sale 261
            for the States of Texas, Louisiana, Mississippi, Alabama, and
            Florida shall satisfy the Secretary's obligations under that
            section (16 U.S.C. 1456).
        (d) Issuance of Leases.--If the Secretary receives an acceptable
    bid for an area offered in a lease sale held under this section, the
    Secretary shall--
                (1) in accordance with section 8 of the Outer Continental
            Shelf Lands Act (43 U.S.C. 1337), accept the highest acceptable
            bid for such area; and
                (2) 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.
        (e) Nomination of Areas for Inclusion in Lease Sale by Governor.--
                (1) In general.--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--
                        (A) adjacent to the waters of the State; and
                        (B) unleased and available for leasing.
                (2) Inclusion of nominated area.--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).
        (f) Geological and Geophysical Surveys.--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.
        (g) Lease Sale 259 and Lease Sale 261 Leases.--
                (1) Leasing revenue certainty.--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 (43 U.S.C. 1334).
                (2) No additional terms or conditions.--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
            ``Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale
            259'' (88 Fed. Reg. 12404; published Feb. 27, 2023) or the
            final notice of sale titled ``Gulf of Mexico Outer Continental
            Shelf Oil and Gas Lease Sale 261'' (88 Fed. Reg. 80750;
            published on Nov. 20, 2023).
        (h) Judicial Review.--Section 23(c)(2) of the Outer Continental
    Shelf Lands Act (43 U.S.C. 1349(c)(2)) is amended to read as follows:
        ``(2) 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.''.
        (i) Definitions.--In this section:
                (1) Acceptable bid.--The term ``acceptable bid'' means a
            bid that meets the requirements of the document published by
            the Bureau of Ocean Energy Management titled ``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''.
                (2) Biological opinion.--The term ``Biological Opinion''--
                        (A) means the biological opinion issued by the
                    National Marine Fisheries Service titled ``Biological
                    Opinion on the Federally Regulated Oil and Gas Program
                    Activities in the Gulf of Mexico'' and the incidental
                    take statement associated with such biological opinion
                    (published March 12, 2020, and updated April 26, 2021);
                    and
                        (B) does not include sections 3.3.1 through 3.3.3
                    of such biological opinion.
                (3) Lease.--The term ``lease'' means an oil and gas lease.
                (4) Lease sale 259.--The term ``Lease Sale 259'' means the
            lease sale held by the Bureau of Ocean Energy Management on
            March 29, 2023.
                (5) Lease sale 261.--The term ``Lease Sale 261'' means the
            lease sale held by the Bureau of Ocean Energy Management on
            December 20, 2023.
                (6) Outer continental shelf.--The term ``outer Continental
            Shelf'' has the meaning given such term in section 2 of the
            Outer Continental Shelf Lands Act (43 U.S.C. 1331).
                (7) Secretary.--The term ``Secretary'' means the Secretary
            of the Interior.

    SEC. 80172. OFFSHORE COMMINGLING.

         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--
                (1) could not be conducted in a safe manner; or
                (2) would result in the ultimate recovery from such
            formations being reduced.

    SEC. 80173. LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALIFIED OUTER
                  CONTINENTAL SHELF REVENUES.

        Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006
    (43 U.S.C. 1331 note) is amended--
                (1) in subparagraph (B), by striking ``and'' at the end;
                (2) in subparagraph (C), by striking ``2055.'' and
            inserting ``2024;''; and
                (3) by adding at the end the following:
                        ``(D) $650,000,000 for each of fiscal years 2025
                    through 2034; and
                        ``(E) $500,000,000 for each of fiscal years 2035
                    through 2055.''.

                            PART 8--RENEWABLE ENERGY

    SEC. 80181. RENEWABLE ENERGY FEES ON FEDERAL LANDS.

        (a) Acreage Rent for Wind and Solar Rights-of-way.--
                (1) In general.--Under the second sentence of section
            504(g) of the Federal Land Policy and Management Act of 1976
            (43 U.S.C. 1764(g)), 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).
                (2) Calculation of acreage rent rate.--
                        (A) Equation.--The amount of an acreage rent
                    collected under paragraph (1) shall be determined using
                    the following equation: Acreage rent = A  x  B  x  ((1
                    + C)\D\)).
                        (B) Definitions.--For purposes of subparagraph (A):
                                (i) The letter ``A'' means the Per-Acre
                            Rate.
                                (ii) The letter ``B'' means the Encumbrance
                            Factor.
                                (iii) The letter ``C'' means the Annual
                            Adjustment Factor.
                                (iv) The letter ``D'' means the year in the
                            term of the right-of-way.
                (3) Payment until production.--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.
        (b) Capacity Fees.--
                (1) In general.--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).
                (2) Calculation of capacity fee.--The amount of a capacity
            fee collected under paragraph (1) shall be equal to the greater
            of--
                        (A) an amount equal to the acreage rent described
                    in subsection (a); and
                        (B) 4.58 percent of the gross proceeds from the
                    sale of electricity produced by the renewable energy
                    project.
                (3) Multiple-use reduction factor.--
                        (A) Application.--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.
                        (B) Approval.--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.
                        (C) Late determination.--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.
        (c) Late Payment Fee; Termination.--
                (1) In general.--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.
                (2) Termination of right-of-way.--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.
        (d) Revenue Accuracy, Transparency, and Accountability.--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.
        (e) Ensuring Fee Certainty.--Section 3103 of the Energy Act of 2020
    (43 U.S.C. 3003) is repealed.
        (f) Definitions.--In this section:
                (1) Annual adjustment factor.--The term ``Annual Adjustment
            Factor'' means 3 percent.
                (2) Encumbrance factor.--The term ``Encumbrance Factor''
            means--
                        (A) 100 percent for solar energy generation
                    facilities; and
                        (B) an amount determined by the Secretary not less
                    than 10 percent for wind energy generation facilities.
                (3) Per-acre rate.--The term ``Per-Acre Rate'' 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.
                (4) Project.--The term ``project'' 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).
                (5) Public lands.--The term ``public lands'' means--
                        (A) public lands as such term is defined in section
                    103 of the Federal Land Policy and Management Act of
                    1976 (43 U.S.C. 1702); and
                        (B) the lands of the National Forest System as
                    described in section 11(a) of the Forest and Rangeland
                    Renewable Resources Planning Act of 1974 (16 U.S.C.
                    1609(a)).
                (6) Renewable energy project.--The term ``renewable energy
            project'' means a project located on public lands that uses
            wind or solar energy to generate energy.
                (7) Right-of-way.--The term ``right-of-way'' has the
            meaning given such term in section 103 of the Federal Land
            Policy and Management Act of 1976 (43 U.S.C. 1702).
                (8) Secretary.--The term ``Secretary'' means--
                        (A) the Secretary of the Interior with respect to
                    land controlled or administered by the Secretary of the
                    Interior; or
                        (B) the Secretary of Agriculture with respect to
                    the lands of the National Forest System controlled or
                    administered by the Secretary of Agriculture.

    SEC. 80182. RENEWABLE ENERGY REVENUE SHARING.

        (a) Disposition of Revenue.--
                (1) Disposition of revenues.--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--
                        (A) deposited in the general fund of the Treasury;
                    and
                        (B) without further appropriation or fiscal year
                    limitation, allocated as follows:
                                (i) 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.
                                (ii) 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.
                (2) Payments to states and counties.--
                        (A) In general.--The amounts paid to States and
                    counties under paragraph (1) shall be used consistent
                    with section 35 of the Mineral Leasing Act (30 U.S.C.
                    191).
                        (B) Payments in lieu of taxes.--A payment to a
                    county under paragraph (1) shall be in addition to a
                    payment in lieu of taxes received by the county under
                    chapter 69 of title 31, United States Code.
                        (C) Timing.--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.
        (b) Definitions.--In this section:
                (1) Covered land.--The term ``covered land'' means land
            that is--
                        (A) public lands administered by the Secretary; and
                        (B) not excluded from the development of solar or
                    wind energy under--
                                (i) a land use plan; or
                                (ii) other Federal law.
                (2) Public lands.--The term ``public lands'' means--
                        (A) public lands as such term is defined in section
                    103 of the Federal Land Policy and Management Act of
                    1976 (43 U.S.C. 1702); and
                        (B) lands of the National Forest System as
                    described in section 11(a) of the Forest and Rangeland
                    Renewable Resources Planning Act of 1974 (16 U.S.C.
                    1609(a)).
                (3) Renewable energy project.--The term ``renewable energy
            project'' 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.
                (4) Secretary.--The term ``Secretary'' means--
                        (A) the Secretary of the Interior with respect to
                    land controlled or administered by the Secretary of the
                    Interior; or
                        (B) the Secretary of Agriculture with respect to
                    the lands of the National Forest System controlled or
                    administered by the Secretary of Agriculture.

                   Subtitle B--Water, Wildlife, and Fisheries

    SEC. 80201. RESCISSION OF FUNDS FOR INVESTING IN COASTAL COMMUNITIES
                  AND CLIMATE RESILIENCE.

        There is hereby rescinded the unobligated balance of funds made
    available by section 40001 of Public Law 117-169.

    SEC. 80202. RESCISSION OF FUNDS FOR FACILITIES OF NATIONAL OCEANIC AND
                  ATMOSPHERIC ADMINISTRATION AND NATIONAL MARINE
                  SANCTUARIES.

        There is hereby rescinded the unobligated balance of funds made
    available by section 40002 of Public Law 117-169.

    SEC. 80203. SURFACE WATER STORAGE ENHANCEMENT.

        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:
    Provided, That, for the purposes of section 203 of the Reclamation
    Reform Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the
    Reclamation Projects Authorization and Adjustment Act of 1992 (Public
    Law 102-575), 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.

    SEC. 80204. WATER CONVEYANCE ENHANCEMENT.

        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.

                           Subtitle C--Federal Lands

    SEC. 80301. RESCISSION OF FOREST SERVICE FUNDS.

        Paragraph (4) of section 23001(a) of Public Law 117-169 is repealed
    and all unobligated balances of amounts made available under such
    paragraph are hereby rescinded.

    SEC. 80302. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU OF LAND
                  MANAGEMENT FUNDS.

        There is hereby rescinded the unobligated balances of amounts made
    available by section 50221 of Public Law 117-169.

    SEC. 80303. RESCISSION OF BUREAU OF LAND MANAGEMENT AND NATIONAL PARK
                  SERVICE FUNDS.

        There is hereby rescinded the unobligated balances of amounts made
    available by section 50222 of Public Law 117-169.

    SEC. 80304. RESCISSION OF NATIONAL PARK SERVICE FUNDS.

        There is hereby rescinded the unobligated balances of amounts made
    available by section 50223 of Public Law 117-169.

    SEC. 80305. CELEBRATING AMERICA'S 250TH ANNIVERSARY.

        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--
                (1) $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
                (2) $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.

    SEC. 80306. LONG-TERM CONTRACTS FOR THE FOREST SERVICE.

        (a) In General.--For each of fiscal years 2025 through 2034, the
    Chief of the Forest Service (in this section referred to as the
    ``Chief'') 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 (16 U.S.C.
    472a(a)) with respect to covered National Forest System lands in each
    region of the Forest Service that contains covered National Forest
    System lands.
        (b) Terms.--
                (1) In general.--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 (16 U.S.C. 472a).
                (2) Contract length.--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.
                (3) Cancellation ceilings.--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 (16 U.S.C. 6591c(d)).
        (c) Receipts.--Any monies derived from an agreement or contract
    under this section by the Chief shall be deposited in the general fund
    of the Treasury.
        (d) Covered National Forest System Lands Defined.--In this section,
    the term ``covered National Forest System lands'' means the proclaimed
    National Forest System lands reserved or withdrawn from the public
    domain of the United States.

    SEC. 80307. LONG-TERM CONTRACTS FOR THE BUREAU OF LAND MANAGEMENT.

        (a) In General.--For each of fiscal years 2025 through 2034, the
    Director of the Bureau of Land Management (in this section referred to
    as the ``Director'') 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 (30 U.S.C. 601)
    with respect to vegetative materials on covered public lands.
        (b) Terms.--
                (1) In general.--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 (30 U.S.C. 602(a)).
                (2) Contract length.--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.
                (3) Cancellation ceilings.--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 (16 U.S.C. 6591c(d)).
        (c) Location.--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.
        (d) Receipts.--Any monies derived from an agreement or contract
    under this section by the Director shall be deposited in the general
    fund of the Treasury.
        (e) Covered Public Lands Defined.--The term ``covered public
    lands'' has the meaning given the term ``public lands'' in section 103
    of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702),
    except that the term includes Coos Bay Wagon Road Grant lands and
    Oregon and California Railroad Grant lands.

    SEC. 80308. TIMBER PRODUCTION FOR THE FOREST SERVICE.

        (a) In General.--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--
                (1) 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
                (2) 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.
        (b) Definitions.--In this section:
                (1) Covered national forest system lands.--
                        (A) In general.--Except as provided in subparagraph
                    (B), the term ``covered National Forest System lands''
                    means the proclaimed National Forest System lands
                    reserved or withdrawn from the public domain of the
                    United States.
                        (B) Exclusions.--The term ``covered National Forest
                    System lands'' does not include lands--
                                (i) that are included in the National
                            Wilderness Preservation System;
                                (ii) that are located within a national or
                            State-specific inventoried roadless area
                            established by the Secretary of Agriculture
                            through regulation, unless--
                                        (I) the forest management activity
                                    to be carried out under such authority
                                    is consistent with the forest plan
                                    applicable to the area; or
                                        (II) the activity is allowed under
                                    the applicable roadless rule governing
                                    such lands, including--
                                                (aa) the Idaho roadless
                                            rule under subpart C of part
                                            294 of title 36, Code of
                                            Federal Regulations;
                                                (bb) the Colorado roadless
                                            rule under subpart D of part
                                            294 of title 36, Code of
                                            Federal Regulations; or
                                                (cc) any other roadless
                                            rule developed after the date
                                            of the enactment of this
                                            section by the Secretary with
                                            respect to a specific State; or
                                (iii) on which timber harvesting for any
                            purpose is prohibited by Federal statute.
                (2) Forest plan.--The term ``forest plan'' 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
            (16 U.S.C. 1604).

    SEC. 80309. TIMBER PRODUCTION FOR THE BUREAU OF LAND MANAGEMENT.

        (a) In General.--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--
                (1) 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
                (2) are in accordance with the applicable forest plan.
        (b) Definitions.--In this section:
                (1) Covered public lands.--
                        (A) In general.--Except as provided in subparagraph
                    (B), the term ``covered public lands'' has the meaning
                    given the term ``public lands'' in section 103 of the
                    Federal Land Policy and Management Act of 1976 (43
                    U.S.C. 1702), except that the term includes Coos Bay
                    Wagon Road Grant lands and Oregon and California
                    Railroad Grant lands.
                        (B) Exclusions.--The term ``covered public lands''
                    does not include lands--
                                (i) that are included in the National
                            Wilderness Preservation System; or
                                (ii) on which timber harvesting for any
                            purpose is prohibited by Federal statute.
                (2) Forest plan.--The term ``forest plan'' 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 (43 U.S.C. 1712).

             TITLE IX--COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM

    SEC. 90001. ELIMINATION OF THE FERS ANNUITY SUPPLEMENT FOR CERTAIN
                  EMPLOYEES.

        (a) In General.--Section 8421(a) of title 5, United States Code, is
    amended--
                (1) in paragraph (1), by inserting ``separated from service
            under section 8425 or entitled to an annuity under subsection
            (d) or (e) of section 8412 of this title'' after
            ``individual''; and
                (2) in paragraph (2), by inserting ``separated from service
            under section 8425 or entitled to an annuity under subsection
            (d) or (e) of section 8412 of this title'' after ``an
            individual''.
        (b) Applicability.--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.

    SEC. 90002. ELECTION FOR AT-WILL EMPLOYMENT AND LOWER FERS
                  CONTRIBUTIONS FOR NEW FEDERAL CIVIL SERVICE HIRES.

        (a) Election.--
                (1) In general.--Subchapter I of chapter 33 of title 5,
            United States Code, is amended by adding at the end the
            following:
    ``Sec. 3330g. Election for at-will employment and lower FERS
                  contributions
        ``(a) Election.--
                ``(1) In general.--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.
                ``(2) Failure to make election.--An individual who does not
            make the election under paragraph (1) shall be subject to the
            requirements of section 8422(a)(3)(D).
        ``(b) At-will Employment.--Notwithstanding chapter 43, 71, or 75 of
    this title, any individual who makes an affirmative election under
    subsection (a)(1) shall--
                ``(1) be considered an at-will employee; and
                ``(2) 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.
        ``(c) Application of Other Laws.--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:
                ``(1) The protections relating to prohibited personnel
            practices (as that term is defined in section 2302).
                ``(2) The Congressional Accountability Act of 1995, in the
            case of employees of the legislative branch who are subject to
            this section.
        ``(d) Covered Position.--In this section, the term `covered
    position'--
                ``(1) means--
                        ``(A) any position in the competitive service;
                        ``(B) a career appointee position in the Senior
                    Executive Service;
                        ``(C) a position in the excepted service; and
                ``(2) does not include--
                        ``(A) any position excepted from the competitive
                    service because of its confidential, policy-
                    determining, policy-making, or policy-advocating
                    character;
                        ``(B) any position excluded from the coverage of
                    section 2302 (by operation of subsection (a)(2)(B) of
                    such section) or chapter 75; or
                        ``(C) any position subject to mandatory separation
                    under section 8335 or 8425.''.
                (2) Clerical amendment.--The table of sections for such
            subchapter is amended by adding after the item relating to
            section 3330f the following:

    ``3330g. Election for at-will employment and lower FERS
                                contributions.''.
        (b) Increase in FERS Contributions.--Section 8422(a) of title 5,
    United States Code, is amended by adding at the end the following:
                        ``(D) 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.''.
        (c) Application.--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.

    SEC. 90003. FILING FEE FOR MERIT SYSTEMS PROTECTION BOARD CLAIMS AND
                  APPEALS.

        (a) In General.--Section 7701 of title 5, United States Code, is
    amended--
                (1) in redesignating subsection (k) as subsection (l); and
                (2) by inserting after subsection (j) the following:
        ``(k)(1) 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.
        ``(2) The filing fee under paragraph (1) shall--
                ``(A) be in an amount equal to the filing fee for a civil
            action, suit, or proceeding under section 1914(a) of title 28;
                ``(B) be paid on the date the individual submits a claim or
            appeal to the Board; and
                ``(C) if the individual is the prevailing party under such
            claim or appeal, be returned to such individual.
        ``(3) The filing fee under this subsection shall not be required
    for any--
                ``(A) action brought by the Special Counsel under section
            1214, 1215, or 1216; or
                ``(B) 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.
        ``(4) 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.''.
        (b) Application.--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.

    SEC. 90004. FEHB PROTECTION.

        (a) FEHB Improvements.--
                (1) Definitions.--In this subsection:
                        (A) Director.--The term ``Director'' means the
                    Director of the Office of Personnel Management.
                        (B) Employing office.--The term ``employing
                    office'' has the meaning given the term in section
                    890.101(a) of title 5, Code of Federal Regulations, or
                    any successor regulation.
                        (C) Health benefits plan; member of family.--The
                    terms ``health benefits plan'' and ``member of family''
                    have the meanings given those terms in section 8901 of
                    title 5, United States Code.
                        (D) Inspector general.--The term ``Inspector
                    General'' means the Inspector General of the Office of
                    Personnel Management.
                        (E) Open season.--The term ``open season'' means an
                    open season described in section 890.301(f) of title 5,
                    Code of Federal Regulations, or any successor
                    regulation.
                        (F) Program.--The term ``Program'' means the health
                    insurance programs carried out under chapter 89 of
                    title 5, United States Code, including the program
                    carried out under section 8903c of that title.
                        (G) Qualifying life event.--The term ``qualifying
                    life event'' has the meaning given the term in section
                    892.101 of title 5, Code of Federal Regulations, or any
                    successor regulation.
                (2) Verification requirements.--
                        (A) In general.--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--
                                (i) 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
                                (ii) 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.
                        (B) Record retention.--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.
                (3) Fraud risk assessment.--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.
                (4) Family member eligibility verification audit.--
                        (A) In general.--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.
                        (B) Contents.--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.
                        (C) Record retention.--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.
                        (D) Referral to inspector general.--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.
                (5) Disenrollment or removal.--
                        (A) In general.--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.
                        (B) Notify inspector general.--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).
        (b) Earned Benefits and Healthcare Administrative Services
    Associated Oversight and Audit Funding.--
                (1) In general.--Section 8909(a)(2) of title 5, United
            States Code, is amended by striking ``Congress.'' and inserting
            ``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.''.
                (2) Oversight.--Section 8909(b) of title 5, United States
            Code, is amended--
                        (A) by redesignating paragraph (2) as paragraph
                    (5); and
                        (B) by inserting after paragraph (1) the following:
                ``(2) 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:
                        ``(A) In fiscal year 2026, $36,792,000.
                        ``(B) In fiscal year 2027, $44,733,161.
                        ``(C) In fiscal year 2028, $50,930,778.
                        ``(D) In fiscal year 2029, $54,198,238.
                        ``(E) In fiscal year 2030, $54,855,425.
                        ``(F) In fiscal year 2031, $56,062,244.
                        ``(G) In fiscal year 2032, $57,295,613.
                        ``(H) In fiscal year 2033, $58,556,117.
                        ``(I) In fiscal year 2034, $59,844,351.
                        ``(J) 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.
                ``(3) 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'.
                ``(4) 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:
                        ``(A) In fiscal year 2026, $5,090,278.
                        ``(B) 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.''.

            TITLE X--COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

    SEC. 100001. COAST GUARD ASSETS NECESSARY TO SECURE THE MARITIME BORDER
                  AND INTERDICT MIGRANTS AND DRUGS.

        (a) In General.--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--
                (1) $571,500,000 for fixed wing aircraft and spare parts,
            training simulators, support equipment, and program management
            for such aircraft;
                (2) $1,283,000,000 for rotary wing aircraft and spare
            parts, training simulators, support equipment, and program
            management for such aircraft;
                (3) $140,000,000 for long-range unmanned aircraft systems
            and base stations, support equipment, and program management
            for such systems;
                (4) $4,300,000,000 for Offshore Patrol Cutters and spare
            parts and program management for such Cutters;
                (5) $1,000,000,000 for Fast Response Cutters and spare
            parts and program management for such Cutters;
                (6) $4,300,000,000 for Polar Security Cutters and spare
            parts and program management for such Cutters;
                (7) $4,978,000,000 for Arctic Security Cutters and domestic
            icebreakers and spare parts and program management for such
            Cutters and icebreakers;
                (8) $3,154,500,000 for design, planning, engineering,
            construction of, and program management for shoreside
            infrastructure, of which--
                        (A) $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);
                        (B) $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
                        (C) $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;
                (9) $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
                (10) $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.
        (b) Requirements.--
                (1) In general.--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).
                (2) Permissible acquisition, procurement, or construction
            methods.--Notwithstanding paragraph (1) of this subsection and
            section 1105(a) of title 14, United States Code, the Commandant
            may, through September 30, 2030--
                        (A) 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;
                        (B) construct a floating dry dock at the Coast
                    Guard Yard; or
                        (C) acquire or procure a commercially available
                    floating dry dock.
                (3) Floating dry dock defined.--In this section, the term
            ``floating dry dock'' means equipment that is--
                        (A) documented under chapter 121 of title 46,
                    United States Code; and
                        (B) capable of meeting the lifting and maintenance
                    requirements of an Offshore Patrol Cutter or a National
                    Security Cutter.
        (c) Limitation.--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.
        (d) Application.--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.
        (e) Entity Other Than the Coast Guard.--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.
        (f) Compliance With Applicable Reporting Requirements.--None of the
    amounts provided in--
                (1) 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
                (2) 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 (Public Law 117-
            263) to the Committee on Transportation and Infrastructure of
            the House of Representatives and the Committee on Commerce,
            Science, and Transportation of the Senate.
        (g) Notification Requirement.--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.
        (h) Expenditure Plan.--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).
        (i) Exception.--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--
                (1) a confirmation that there are insufficient qualified
            United States shipyards to meet the national security interest
            without such exception; and
                (2) actions taken by the President to enable qualified
            United States shipyards to meet national security requirements
            prior to the issuance of such an exception.

    SEC. 100002. VESSEL TONNAGE DUTIES.

        Section 60301 of title 46, United States Code, is amended--
                (1) in subsection (a) by striking ``, 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,''; and
                (2) in subsection (b) by striking ``, 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,''.

    SEC. 100003. REGISTRATION FEE ON MOTOR VEHICLES.

        (a) In General.--Chapter 1 of title 23, United States Code, is
    amended by adding at the end the following:
    ``Sec. 180. Registration fee on motor vehicles.
        ``(a) In General.--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:
                ``(1) $250 for a covered electric vehicle.
                ``(2) $100 for a covered hybrid vehicle.
        ``(b) Withholding of Funds for Noncompliance.--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).
        ``(c) Collection and Remittance of Fee.--
                ``(1) Collection of fee.--A State motor vehicle department
            shall--
                        ``(A) 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
                        ``(B) obtain approval from the Administrator to
                    establish an alternate means of compliance for the
                    collection of such fees that is acceptable to the
                    Administrator.
                ``(2) Remittance of fee.--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).
        ``(d) Fee Assessment.--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.
        ``(e) Administrative Expenses.--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.
        ``(f) Applicability of Fees.--The fees imposed under paragraphs (1)
    and (2) of subsection (a) shall terminate on October 1, 2035.
        ``(g) Definitions.--In this section:
                ``(1) Covered electric vehicle.--The term `covered electric
            vehicle' means a covered motor vehicle with an electric motor
            as the sole means of propulsion of such vehicle.
                ``(2) Covered motor vehicle.--The term `covered motor
            vehicle' has the meaning given the term `motor vehicle' 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).
                ``(3) Covered hybrid vehicle.--The term `covered hybrid
            vehicle' 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.''.
        (b) Implementation of Certain Processes.--
                (1) Implementation.--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.
                (2) Funding.--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).
                (3) Eligible amounts.--Each State motor vehicle department
            may receive not more than $2,000,000 under this subsection.
        (c) Regulations.--The Administrator shall issue such regulations
    and guidance as are necessary to--
                (1) carry out section 180 of title 23, United States Code
            (as added by this Act); and
                (2) establish a process for the timely and accurate
            remittance of fees collected under such section through an
            electronic method.
        (d) Report.--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).
        (e) Clerical Amendment.--The analysis for chapter 1 of title 23,
    United States Code, is amended by adding at the end the following:

    ``180. Registration fee on motor vehicles.''.

    SEC. 100004. DEPOSIT OF REGISTRATION FEE ON MOTOR VEHICLES.

        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.

    SEC. 100005. MOTOR CARRIER DATA.

        (a) Public Confirmation of Authorized Motor Carriers.--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:
                (1) ``This motor carrier meets Federal Motor Carrier Safety
            Administration operating requirements and is authorized to
            operate on the nation's roadways.''.
                (2) ``This motor carrier does not meet Federal Motor
            Carrier Safety Administration operating requirements and is not
            authorized to operate on the nation's roadways.''.
        (b) Usage Fee.--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--
                (1) 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
                (2) available for establishing, maintaining, and updating
            such website without further appropriation.
        (c) Determination.--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.

    SEC. 100006. IRA RESCISSIONS.

        (a) Repeal of Funding for Alternative Fuel and Low-emission
    Aviation Technology Program.--The unobligated balances of amounts made
    available to carry out section 40007 of Public Law 117-169 (49 U.S.C.
    44504 note) (as in effect on the day before the date of enactment of
    this Act) are permanently rescinded.
        (b) Repeal of Funding for Neighborhood Access and Equity Grant
    Program.--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.
        (c) Repeal of Funding for Federal Building Assistance.--The
    unobligated balances of amounts made available to carry out section
    60502 of Public Law 117-169 (136 Stat. 2083) (as in effect on the day
    before the date of enactment of this Act) are permanently rescinded.
        (d) Repeal of Funding for Use of Low-carbon Materials for Federal
    Building Assistance.-- The unobligated balances of amounts made
    available to carry out section 60503 of Public Law 117-169 (136 Stat.
    2083) (as in effect on the day before the date of enactment of this
    Act) are permanently rescinded.
        (e) Repeal of Funding for General Services Administration Emerging
    Technologies.--The unobligated balances of amounts made available to
    carry out section 60504 of Public Law 117-169 (136 Stat. 2083) (as in
    effect on the day before the date of enactment of this Act) are
    permanently rescinded.
        (f) Repeal of Environmental Review Implementation Funds.--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.
        (g) Repeal of Funding for Low-carbon Transportation Materials
    Grants.-- 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.

    SEC. 100007. AIR TRAFFIC CONTROL STAFFING AND MODERNIZATION.

        (a) In General.--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--
                (1) $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;
                (2) $3,000,000,000 for radar systems replacement;
                (3) $4,750,000,000 for telecommunications infrastructure
            and systems replacement;
                (4) $500,000,000 for runway safety projects, airport
            surface surveillance projects, and to carry out section 347 of
            the FAA Reauthorization Act of 2024;
                (5) $550,000,000 for unstaffed infrastructure sustainment
            and replacement;
                (6) $300,000,000 to carry out section 619 of the FAA
            Reauthorization Act of 2024;
                (7) $260,000,000 to carry out section 44745 of title 49,
            United States Code; and
                (8) $1,000,000,000 for air traffic controller recruitment,
            retention, training, and advanced training technologies.
        (b) Quarterly Reporting.--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.

    SEC. 100008. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS.

        (a) In General.--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.
        (b) Administrative Costs.--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.

    TITLE XI--COMMITTEE ON WAYS AND MEANS, ``THE ONE, BIG, BEAUTIFUL BILL''

    SEC. 110000. REFERENCES TO THE INTERNAL REVENUE CODE OF 1986, ETC.

        (a) References.--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.
        (b) Certain Rules Regarding Effect of Rate Changes Not
    Applicable.--Section 15 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.

          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.

        (a) In General.--Section 1(j) is amended--
                (1) in paragraph (1), by striking ``, and before January 1,
            2026'', and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (b) Inflation Adjustment.--Section 1(j)(3)(B)(i) is amended by
    inserting ``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,'' before ``subsection (f)(3)''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110002. EXTENSION OF INCREASED STANDARD DEDUCTION AND TEMPORARY
                  ENHANCEMENT.

        (a) In General.--Section 63(c)(7) is amended--
                (1) by striking ``, and before January 1, 2026'' in the
            matter preceding subparagraph (A), and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (b) Temporary Additional Increase in Standard Deduction.--Section
    63(c)(7) is amended by adding at the end the following new
    subparagraph:
                        ``(C) Temporary additional increase in standard
                    deduction.--In the case of any taxable year beginning
                    after December 31, 2024, and before January 1, 2029--
                                ``(i) the dollar amount otherwise in effect
                            under paragraph (2)(B) shall be increased by
                            $1,500, and
                                ``(ii) the dollar amount otherwise in
                            effect under paragraph (2)(C) shall be
                            increased by $1,000.''.
        (c) Recalculation of Inflation Adjustment.--Section
    63(c)(7)(B)(ii)(II) is amended by striking ``, determined by
    substituting `2017' for `2016' in subparagraph (A)(ii) thereof''.
        (d) Effective Date.--
                (1) In general.--The amendments made by subsection (a)
            shall apply to taxable years beginning after December 31, 2025.
                (2) Temporary additional increase in standard deduction.--
            The amendment made by subsection (b) shall apply to taxable
            years beginning after December 31, 2024.

    SEC. 110003. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS.

        (a) In General.--Section 151(d)(5) is amended--
                (1) by striking ``and before January 1, 2026'', and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110004. EXTENSION OF INCREASED CHILD TAX CREDIT AND TEMPORARY
                  ENHANCEMENT.

        (a) Extension of Expanded Child Tax Credit.--Section 24(h) is
    amended--
                (1) in paragraph (1), by striking ``and before January 1,
            2026,'', and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (b) Increase in Child Tax Credit.--Section 24(h)(2) is amended to
    read as follows:
                ``(2) Credit amount.--Subsection (a) shall be applied by
            substituting--
                        ``(A) in the case of taxable years beginning after
                    December 31, 2024, and before December 31, 2028,
                    `$2,500' for `$1,000', or
                        ``(B) in the case of any subsequent taxable year,
                    `$2,000' for `$1,000'.''.
        (c) Social Security Number Required.--Section 24(h)(7) is amended
    to read as follows:
                ``(7) Social security number required.--
                        ``(A) In general.--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--
                                ``(i) such individual's social security
                            number,
                                ``(ii) the social security number of such
                            qualifying child, and
                                ``(iii) if the individual is married, the
                            social security number of such individual's
                            spouse.
                        ``(B) Social security number.--For purposes of this
                    paragraph, the term `social security number' means a
                    social security number issued to an individual by the
                    Social Security Administration, but only if the social
                    security number is issued--
                                ``(i) 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
                                ``(ii) before the due date for such return.
                        ``(C) Married individuals.--Rules similar to the
                    rules of section 32(d) shall apply to this section.''.
        (d) Inflation Adjustments.--
                (1) In general.--Section 24(i) is amended to read as
            follows:
        ``(i) Inflation Adjustments.--
                ``(1) Maximum amount of refundable credit.--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--
                        ``(A) such dollar amount, multiplied by
                        ``(B) the cost-of-living adjustment determined
                    under section 1(f)(3) for the calendar year in which
                    the taxable year begins, determined by substituting
                    `2017' for `2016' in subparagraph (A)(ii) thereof.
                ``(2) Special rule for adjustment of credit amount.--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--
                        ``(A) such dollar amount, multiplied by
                        ``(B) the cost-of-living adjustment determined
                    under section 1(f)(3) for the calendar year in which
                    the taxable year begins, determined by substituting
                    `2024' for `2016' in subparagraph (A)(ii) thereof.
                ``(3) Rounding.--If any increase under this subsection is
            not a multiple of $100, such increase shall be rounded to the
            next lowest multiple of $100.''.
        (e) Conforming Amendment.--Section 24(h)(5) is amended to read as
    follows:
                ``(5) Maximum amount of refundable credit.--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.''.
        (f) Treatment of Certain Benefits of Members of Religious and
    Apostolic Associations as Earned Income.--Section 24(d)(1) is amended
    by adding at the end the following: ``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.''.
        (g) Omission of Correct Social Security Number Treated as
    Mathematical or Clerical Error.--Section 6213(g)(2)(I) is amended by
    striking ``section 24(e)'' and inserting ``section 24''.
        (h) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

    SEC. 110005. EXTENSION OF DEDUCTION FOR QUALIFIED BUSINESS INCOME AND
                  PERMANENT ENHANCEMENT.

        (a) Made Permanent.--Section 199A is amended by striking subsection
    (i).
        (b) Increase in Deduction.--Subsections (a)(2), (b)(1)(B), and
    (b)(2)(A) of section 199A are each amended by striking ``20 percent''
    and inserting ``23 percent''.
        (c) Modification of Limitations Based on Taxable Income.--
                (1) In general.--Section 199A(b)(3) is amended to read as
            follows:
                ``(3) Modification of determination of combined qualified
            business income amount based on taxable income.--
                        ``(A) Exception from limitations.--In the case of
                    any taxpayer whose taxable income for the taxable year
                    does not exceed the threshold amount--
                                ``(i) paragraph (2) shall be applied
                            without regard to subparagraph (B), and
                                ``(ii) 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).
                        ``(B) Phase-in of limitations.--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--
                                ``(i) the sum described in paragraph (1)(A)
                            (determined by applying the rules of clauses
                            (i) and (ii) of subparagraph (A)), over
                                ``(ii) the limitation phase-in amount.
                        ``(C) Limitation phase-in amount.--For purposes of
                    subparagraph (B), the limitation phase-in amount shall
                    be an amount equal to 75 percent of the excess (if any)
                    of--
                                ``(i) the taxable income of the taxpayer
                            for the taxable year, over
                                ``(ii) the threshold amount.''.
                (2) Conforming amendment.--Section 199A(d) is amended by
            striking paragraph (3).
        (d) Deduction for Qualified Business Income to Apply to Certain
    Interest Dividends of Qualified Business Development Companies.--
                (1) In general.--Subsections (b)(1)(B) and (c)(1) of
            section 199A are each amended by inserting ``, qualified BDC
            interest dividends,'' after ``qualified REIT dividends''.
                (2) Qualified bdc interest dividend defined.--Section
            199A(e) is amended by adding at the end the following new
            paragraph:
                ``(5) Qualified bdc interest dividend.--
                        ``(A) In general.--The term `qualified BDC interest
                    dividend' 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.
                        ``(B) Electing business development company.--For
                    purposes of this paragraph, the term `electing business
                    development company' 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.''.
        (e) Modified Inflation Adjustment.--Section 199A(e)(2)(B) is
    amended--
                (1) by striking ``2018'' and inserting ``2025'', and
                (2) in clause (ii), by striking ``, determined by
            substituting `calendar year 2017' for `calendar year 2016' in
            subparagraph (A)(ii) thereof''.
        (f) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110006. EXTENSION OF INCREASED ESTATE AND GIFT TAX EXEMPTION
                  AMOUNTS AND PERMANENT ENHANCEMENT.

        (a) In General.--Section 2010(c)(3) is amended--
                (1) in subparagraph (A) by striking ``$5,000,000'' and
            inserting ``$15,000,000'',
                (2) in subparagraph (B)--
                        (A) in the matter preceding clause (i), by striking
                    ``2011'' and inserting ``2026'', and
                        (B) in clause (ii), by striking ``calendar year
                    2010'' and inserting ``calendar year 2025'', and
                (3) by striking subparagraph (C).
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110007. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION
                  AND PHASE-OUT THRESHOLDS.

        (a) In General.--Section 55(d)(4) is amended--
                (1) in subparagraph (A), by striking ``, and before January
            1, 2026'', and
                (2) by striking ``and Before 2026'' in the heading.
        (b) Modification of Inflation Adjustment.--Section 55(d)(4)(B) is
    amended--
                (1) by striking ``2018'' in clause (i) and inserting
            ``2026'', and
                (2) by striking ``2017'' in clause (i)(II) and inserting
            ``2025''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110008. EXTENSION OF LIMITATION ON DEDUCTION FOR QUALIFIED
                  RESIDENCE INTEREST.

        (a) In General.--Section 163(h)(3)(F) is amended--
                (1) in clause (i), by striking ``, and before January 1,
            2026'',
                (2) by striking clause (ii) and redesignating clauses (iii)
            and (iv) as clauses (ii) and (iii), respectively, and
                (3) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110009. EXTENSION OF LIMITATION ON CASUALTY LOSS DEDUCTION.

        (a) In General.--Section 165(h)(5) is amended--
                (1) in subparagraph (A), by striking ``and before January
            1, 2026,'', and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110010. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTION.

        (a) In General.--Section 67(g) is amended--
                (1) by striking ``, and before January 1, 2026'', and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110011. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS.

        (a) In General.--Section 68 is amended to read as follows:
        ``(a) In General.--In the case of an individual, the amount of the
    taxpayer's itemized deductions shall be reduced by the sum of--
                ``(1) \5/37\ of the lesser of--
                        ``(A) the amount of the deduction allowable to the
                    taxpayer under section 164 for such taxable year
                    (determined without regard to this section), or
                        ``(B) the excess (if any) of--
                                ``(i) 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
                                ``(ii) the dollar amount at which the 37
                            percent rate bracket under section 1 begins
                            with respect to the taxpayer, plus
                ``(2) \2/37\ of the lesser of--
                        ``(A) so much (if any) of the taxpayer's itemized
                    deductions as exceed the amount described in paragraph
                    (1)(A), or
                        ``(B) the excess (if any) of--
                                ``(i) the amount described in subparagraph
                            (1)(B)(i), over
                                ``(ii) the sum of the amounts described in
                            paragraphs (1)(A) and (1)(B)(ii).
        ``(b) Itemized Deductions.--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.
        ``(c) Coordination With Other Limitations.--This section shall be
    applied after the application of any other limitation on the allowance
    of any itemized deduction.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2025.

    SEC. 110012. TERMINATION OF QUALIFIED BICYCLE COMMUTING REIMBURSEMENT
                  EXCLUSION.

        (a) In General.--Section 132(f)(8) is amended by striking ``, and
    before January 1, 2026''.
        (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2025.

    SEC. 110013. EXTENSION OF LIMITATION ON EXCLUSION AND DEDUCTION FOR
                  MOVING EXPENSES.

        (a) Termination of Deduction.--Section 217(k) is amended--
                (1) by striking ``, and before January 1, 2026'', and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (b) Termination of Reimbursement.--Section 132(g)(2) is amended--
                (1) by striking ``, and before January 1, 2026'', and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110014. EXTENSION OF LIMITATION ON WAGERING LOSSES.

        (a) In General.--Section 165(d) is amended by striking ``and before
    January 1, 2026,''.
        (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2025.

    SEC. 110015. EXTENSION OF INCREASED LIMITATION ON CONTRIBUTIONS TO ABLE
                  ACCOUNTS AND PERMANENT ENHANCEMENT.

        (a) In General.--Section 529A(b)(2)(B) is amended--
                (1) in clause (i), by inserting ``(determined by
            substituting `1996' for `1997' in paragraph (2)(B) thereof)''
            after ``section 2503(b)'', and
                (2) in clause (ii), by striking ``before January 1, 2026''.
        (b) Effective Date.--
                (1) In general.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply to
            contributions made after December 31, 2025.
                (2) Modified inflation adjustment.--The amendment made by
            subsection (a)(1) shall apply to taxable years beginning after
            December 31, 2025.

    SEC. 110016. EXTENSION OF SAVERS CREDIT ALLOWED FOR ABLE CONTRIBUTIONS.

        (a) In General.--Section 25B(d)(1) is amended to read as follows:
                ``(1) In general.--The term `qualified retirement savings
            contributions' means, with respect to any taxable year, the sum
            of--
                        ``(A) 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
                        ``(B) in the case of any taxable year beginning
                    before January 1, 2027--
                                ``(i) the amount of the qualified
                            retirement contributions (as defined in section
                            219(e)) made by the eligible individual,
                                ``(ii) the amount of--
                                        ``(I) any elective deferrals (as
                                    defined in section 402(g)(3)) of such
                                    individual, and
                                        ``(II) 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
                                ``(iii) the amount of voluntary employee
                            contributions by such individual to any
                            qualified retirement plan (as defined in
                            section 4974(c)).''.
        (b) Coordination With SECURE 2.0 Act of 2022 Amendment.--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.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years ending after December 31, 2025.

    SEC. 110017. EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION PROGRAMS TO
                  ABLE ACCOUNTS PERMITTED.

        (a) In General.--Section 529(c)(3)(C)(i)(III) is amended by
    striking ``before January 1, 2026,''.
        (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2025.

    SEC. 110018. EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS PERFORMING
                  SERVICES IN THE SINAI PENINSULA AND ENHANCEMENT TO
                  INCLUDE ADDITIONAL AREAS.

        (a) Treatment Made Permanent.--Section 11026(a) of Public Law 115-
    97 is amended by striking ``with respect to the applicable period,''.
        (b) Kenya, Mali, Burkina Faso, and Chad Included as Hazardous Duty
    Areas.--Section 11026(b) of Public Law 115-97 is amended to read as
    follows:
        ``(b) Qualified Hazardous Duty Area.--For purposes of this section,
    the term 'qualified hazardous duty area' means--
                ``(1) 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
                ``(2) 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.
    Such term includes any such location only during the period such
    entitlement is in effect with respect to such location.''.
        (c) Conforming Amendment.--Section 11026 of Public Law 115-97 is
    amended by striking subsections (c) and (d).
        (d) Effective Date.--The amendments made by this section shall take
    effect on January 1, 2026.

    SEC. 110019. EXTENSION OF EXCLUSION FROM GROSS INCOME OF STUDENT LOANS
                  DISCHARGED ON ACCOUNT OF DEATH OR DISABILITY.

        (a) In General.--Section 108(f)(5) is amended to read as follows:
                ``(5) Discharges on account of death or disability.--
                        ``(A) In general.--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--
                                ``(i) 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),
                                ``(ii) pursuant to section 464(c)(1)(F) of
                            such Act, or
                                ``(iii) otherwise discharged on account of
                            death or total and permanent disability of the
                            student.
                        ``(B) Loans discharged.--A loan is described in
                    this subparagraph if such loan is--
                                ``(i) a student loan (as defined in
                            paragraph (2)), or
                                ``(ii) a private education loan (as defined
                            in section 140(a) of the Consumer Credit
                            Protection Act (15 U.S.C. 1650(a)).
                        ``(C) Social security number requirement.--
                                ``(i) In general.--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--
                                        ``(I) the taxpayer's social
                                    security number, and
                                        ``(II) if the taxpayer is married,
                                    the social security number of such
                                    taxpayers's spouse.
                                ``(ii) Social security number.--For
                            purposes of this subparagraph, the term `social
                            security number' has the meaning given such
                            term in section 24(h)(7).
                                ``(iii) Married individuals.--Rules similar
                            to the rules of section 32(d) shall apply to
                            this subparagraph.''.
        (b) Omission of Correct Social Security Number Treated as
    Mathematical or Clerical Error.--Section 6213(g)(2) is amended by
    striking ``and'' at the end of subparagraph (U), by striking the period
    at the end of subparagraph (V) and inserting ``, and'', and by
    inserting after subparagraph (V) the following new subparagraph:
                        ``(W) an omission of a correct social security
                    number required under section 108(f)(5)(C) (relating to
                    discharges on account of death or disability).''.
        (c) Effective Date.--The amendments made by this section shall
    apply to discharges after December 31, 2025.

        PART 2--ADDITIONAL TAX RELIEF FOR AMERICAN FAMILIES AND WORKERS

    SEC. 110101. NO TAX ON TIPS.

        (a) Deduction Allowed.--Part VII of subchapter B of chapter 1 is
    amended by redesignating section 224 as section 225 and by inserting
    after section 223 the following new section:

    ``SEC. 224. QUALIFIED TIPS.

        ``(a) In General.--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).
        ``(b) Tips Received in Course of Trade or Business.--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--
                ``(1) cost of goods sold that are allocable to such
            receipts, plus
                ``(2) other expenses, losses, or deductions (other than the
            deduction allowed under this section), which are properly
            allocable to such receipts.
        ``(c) Qualified Tips.--For purposes of this section--
                ``(1) In general.--The term `qualified tip' 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.
                ``(2) Exclusions.--Such term shall not include any amount
            received by an individual unless--
                        ``(A) 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,
                        ``(B) 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)),
                        ``(C) 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
                        ``(D) such other requirements as may be established
                    by the Secretary in regulations or other guidance are
                    satisfied.
        ``(d) Social Security Number Required.--
                ``(1) In general.--No deduction shall be allowed under this
            section unless the taxpayer includes on the return of tax for
            the taxable year--
                        ``(A) such individual's social security number, and
                        ``(B) if the individual is married, the social
                    security number of such individual's spouse.
                ``(2) Married individuals.--Rules similar to the rules of
            section 32(d) shall apply to this section.
                ``(3) Social security number defined.--For purposes of
            paragraph (1), the term `social security number' shall have the
            meaning given such term in section 24(h)(7).
        ``(e) Regulations.--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.
        ``(f) Termination.--No deduction shall be allowed under this
    section for any taxable year beginning after December 31, 2028.''.
        (b) Deduction Allowed to Non-itemizers.--Section 63(b) is amended
    by striking ``and'' at the end of paragraph (3), by striking the period
    at the end of paragraph (4) and inserting ``and'', and by adding at the
    end the following new paragraph:
                ``(5) the deduction provided in section 224.''.
        (c) Omission of Correct Social Security Number Treated as
    Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
    preceding provisions of this Act, is amended by striking ``and'' at the
    end of subparagraph (V), by striking the period at the end of
    subparagraph (W) and inserting ``, and'', and by inserting after
    subparagraph (W) the following new subparagraph:
                        ``(X) an omission of a correct social security
                    number required under section 224(d) (relating to
                    deduction for qualified tips).''.
        (d) Exclusion From Qualified Business Income.--Section 199A(c)(4)
    is amended by striking ``and'' at the end of subparagraph (B), by
    striking the period at the end of subparagraph (C) and inserting ``,
    and'', and by adding at the end the following new subparagraph:
                        ``(D) any amount with respect to which a deduction
                    is allowable to the taxpayer under section 224(a) for
                    the taxable year.''.
        (e) Extension of Tip Credit to Beauty Service Business.--
                (1) In general.--Section 45B(b)(2) is amended to read as
            follows:
                ``(2) Application only to certain lines of business.--In
            applying paragraph (1) there shall be taken into account only
            tips received from customers or clients in connection with the
            following services:
                        ``(A) 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.
                        ``(B) The providing of any of the following
                    services to a customer or client if the tipping of
                    employees providing such services is customary:
                                ``(i) Barbering and hair care.
                                ``(ii) Nail care.
                                ``(iii) Esthetics.
                                ``(iv) Body and spa treatments.''.
                (2) Credit determined with respect to minimum wage in
            effect.--Section 45B(b)(1)(B) is amended--
                        (A) by striking ``as in effect on January 1, 2007,
                    and'', and
                        (B) by inserting ``, and in the case of food or
                    beverage establishments, as in effect on January 1,
                    2007'' after ``without regard to section 3(m) of such
                    Act''.
        (f) Reporting Requirements.--
                (1) Returns for payments made in the course of a trade or
            business.--
                        (A) Statement furnished to secretary.-- Section
                    6041(a) is amended by inserting ``(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))'' after
                    ``such gains, profits, and income''.
                        (B) Statement furnished to payee.--Section 6041(d)
                    is amended by striking ``and'' at the end of paragraph
                    (1), by striking the period at the end of paragraph (2)
                    and inserting ``, and'', and by inserting after
                    paragraph (2) the following new paragraph:
                ``(3) 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).''.
                (2) Returns for payments made for services and direct
            sales.--
                        (A) Statement furnished to secretary.-- Section
                    6041A(a) is amended by inserting ``(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))''
                    after ``amount of such payments''.
                        (B) Statement furnished to payee.--Section 6041A(e)
                    is amended by striking ``and'' at the end of paragraph
                    (1), by striking the period at the end of paragraph (2)
                    and inserting ``, and'', and by inserting after
                    paragraph (2) the following new paragraph:
                ``(3) 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).''.
                (3) Returns relating to third party settlement
            organizations.--
                        (A) Statement furnished to secretary.--Section
                    6050W(a) is amended by striking ``and'' at the end of
                    paragraph (1), by striking the period at the end of
                    paragraph (2) and inserting ``and'', and by adding at
                    the end the following new paragraph:
                ``(3) 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).''.
                        (B) Statement furnished to payee.--Section
                    6050W(f)(2) is amended by inserting ``(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))'' after ``reportable payment transactions''.
                (4) Returns related to wages.--Section 6051(a) is amended
            by striking ``and'' at the end of paragraph (16), by striking
            the period at the end of paragraph (17) and inserting ``,
            and'', and by inserting after paragraph (17) the following new
            paragraph:
                ``(18) the total amount of tips reported by the employee
            under section 6053(a).''.
        (g) Clerical Amendment.--The table of sections for part VII of
    subchapter B of chapter 1 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:

    ``Sec. 224. Qualified tips.''.
        (h) Published List of Occupations Traditionally Receiving Tips.--
    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)).
        (i) Withholding.--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).
        (j) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

    SEC. 110102. NO TAX ON OVERTIME.

        (a) Deduction Allowed.--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:

    ``SEC. 225. QUALIFIED OVERTIME COMPENSATION.

        ``(a) In General.--There shall be allowed as a deduction an amount
    equal to the qualified overtime compensation received during the
    taxable year.
        ``(b) Qualified Overtime Compensation.--
                ``(1) In general.--For purposes of this section, the term
            `qualified overtime compensation' 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.
                ``(2) Exclusions.--Such term shall not include--
                        ``(A) any qualified tip (as defined in section
                    224(c)), or
                        ``(B) 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.
        ``(c) Social Security Number Required.--
                ``(1) In general.--No deduction shall be allowed under this
            section unless the taxpayer includes on the return of tax for
            the taxable year--
                        ``(A) such individual's social security number, and
                        ``(B) if the individual is married, the social
                    security number of such individual's spouse.
                ``(2) Married individuals.--Rules similar to the rules of
            section 32(d) shall apply to this section.
                ``(3) Social security number defined.--For purposes of
            paragraph (1), the term `social security number' shall have the
            meaning given such term in section 24(h)(7).
        ``(d) Regulations.--The Secretary shall issue such regulations or
    other guidance as may be necessary or appropriate to carry out the
    purposes of this section.
        ``(e) Termination.--No deduction shall be allowed under this
    section for any taxable year beginning after December 31, 2028.''.
        (b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended
    by the preceding provisions of this Act, is amended by striking ``and''
    at the end of paragraph (4), by striking the period at the end of
    paragraph (5) and inserting ``and'', and by adding at the end the
    following new paragraph:
                ``(6) the deduction provided in section 225.''.
        (c) Requirement to Include Overtime Compensation on W-2.--Section
    6051(a), as amended by the preceding provision of this Act, is amended
    by striking ``and'' at the end of paragraph (17), by striking the
    period at the end of paragraph (18) and inserting ``, and'', and by
    inserting after paragraph (18) the following new paragraph:
                ``(19) the total amount of qualified overtime compensation
            (as defined in section 225(b)).''.
        (d) Omission of Correct Social Security Number Treated as
    Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
    preceding provisions of this Act, is amended by striking ``and'' at the
    end of subparagraph (W), by striking the period at the end of
    subparagraph (X) and inserting ``, and'', and by inserting after
    subparagraph (X) the following new subparagraph:
                        ``(Y) an omission of a correct social security
                    number required under section 225(c) (relating to
                    deduction for qualified overtime).''.
        (e) Clerical Amendment.--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:

    ``Sec. 225. Qualified overtime compensation.''.
        (f) Withholding.--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).
        (g) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

    SEC. 110103. ENHANCED DEDUCTION FOR SENIORS.

        (a) In General.--Section 63(f) is amended by adding at the end the
    following new paragraph:
                ``(5) Bonus additional amount for seniors.--
                        ``(A) In general.--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.
                        ``(B) Limitation based on modified adjusted gross
                    income.--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).
                        ``(C) Modified adjusted gross income.--For purposes
                    of this paragraph, the term `modified adjusted gross
                    income' 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.
                        ``(D) Social security number required.--
                                ``(i) In general.--Subparagraph (A) shall
                            not apply unless the taxpayer includes on the
                            return of tax for the taxable year--
                                        ``(I) such individual's social
                                    security number, and
                                        ``(II) if the individual is
                                    married, the social security number of
                                    such individual's spouse.
                                ``(ii) Married individuals.--Rules similar
                            to the rules of section 32(d) shall apply to
                            this section.
                                ``(iii) Social security number defined.--
                            For purposes of clause (i), the term `social
                            security number' shall have the meaning given
                            such term in section 24(h)(7).
                        ``(E) Coordination with inflation adjustment.--
                    Subsection (c)(4) shall not apply to any dollar amount
                    contained in this paragraph.
                        ``(F) Allowance to seniors who elect to itemize.--
                    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.''.
        (b) Omission of Correct Social Security Number Treated as
    Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
    preceding provisions of this Act, is amended by striking ``and'' at the
    end of subparagraph (X), by striking the period at the end of
    subparagraph (Y) and inserting ``, and'', and by inserting after
    subparagraph (Y) the following new subparagraph:
                        ``(Z) an omission of a correct social security
                    number required under section 63(f)(5)(D) (relating to
                    bonus additional amount for seniors).''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

    SEC. 110104. NO TAX ON CAR LOAN INTEREST.

        (a) In General.--Section 163(h) is amended by redesignating
    paragraph (4) as paragraph (5) and by inserting after paragraph (3) the
    following new paragraph:
                ``(4) Special rules for taxable years 2025 through 2028
            relating to qualified passenger vehicle loan interest.--
                        ``(A) In general.--In the case of taxable years
                    beginning after December 31, 2024, and before January
                    1, 2029, for purposes of this subsection the term
                    `personal interest' shall not include qualified
                    passenger vehicle loan interest.
                        ``(B) Qualified passenger vehicle loan interest
                    defined.--
                                ``(i) In general.--For purposes of this
                            paragraph, the term `qualified passenger
                            vehicle loan interest' 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.
                                ``(ii) Exceptions.--Such term shall not
                            include any amount paid or incurred on any of
                            the following:
                                        ``(I) A loan to finance fleet
                                    sales.
                                        ``(II) A personal cash loan secured
                                    by a vehicle previously purchased by
                                    the taxpayer.
                                        ``(III) A loan incurred for the
                                    purchase of a commercial vehicle that
                                    is not used for personal purposes.
                                        ``(IV) Any lease financing.
                                        ``(V) A loan to finance the
                                    purchase of a vehicle with a salvage
                                    title.
                                        ``(VI) A loan to finance the
                                    purchase of a vehicle intended to be
                                    used for scrap or parts.
                        ``(C) Limitations.--
                                ``(i) Dollar limit.--The amount of interest
                            taken into account by a taxpayer under
                            subparagraph (B) for any taxable year shall not
                            exceed $10,000.
                                ``(ii) Limitation based on modified
                            adjusted gross income.--
                                        ``(I) In general.--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).
                                        ``(II) Modified adjusted gross
                                    income.--For purposes of this clause,
                                    the term `modified adjusted gross
                                    income' 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.
                        ``(D) Applicable passenger vehicle.--The term
                    `applicable passenger vehicle' means any vehicle--
                                ``(i)(I) which is manufactured primarily
                            for use on public streets, roads, and highways,
                                ``(II) which has at least 2 wheels, and
                                ``(III) which is a car, minivan, van, sport
                            utility vehicle, pickup truck, or motorcycle,
                                ``(ii) which is an all-terrain vehicle
                            (designed for use on land), or
                                ``(iii) any trailer, camper, or vehicle
                            (designed for use on land) which--
                                        ``(I) is designed to provide
                                    temporary living quarters for
                                    recreational, camping, or seasonal use,
                                    and
                                        ``(II) is a motor vehicle or is
                                    designed to be towed by, or affixed to,
                                    a motor vehicle.
                    Such term shall not include any vehicle the final
                    assembly of which did not occur within the United
                    States.
                        ``(E) Other definitions and special rules.--For
                    purposes of this paragraph--
                                ``(i) All-terrain vehicle.--The term `all-
                            terrain vehicle' means any motorized vehicle
                            which has 3 or 4 wheels, a seat designed to be
                            straddled by the operator, and handlebars for
                            steering control.
                                ``(ii) Final assembly.--For purposes of
                            subparagraph (D), the term `final assembly'
                            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.
                                ``(iii) Treatment of refinancing.--
                            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.
                                ``(iv) Related parties.--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.''.
        (b) Deduction Allowed Whether or Not Taxpayer Itemizes.--Section
    62(a) is amended by inserting after paragraph (21) the following new
    paragraph:
                ``(22) Qualified passenger vehicle loan interest.--So much
            of the deduction allowed by section 163(a) as is attributable
            to the exception under section 163(h)(4)(A).''.
        (c) Reporting.--
                (1) In general.--Subpart B of part III of subchapter A of
            chapter 61 is amended by adding at the end the following new
            section:

    ``SEC. 6050AA. RETURNS RELATING TO APPLICABLE PASSENGER VEHICLE LOAN
                  INTEREST RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS.

        ``(a) In General.--Any person--
                ``(1) who is engaged in a trade or business, and
                ``(2) 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,
    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.
        ``(b) Form and Manner of Returns.--A return is described in this
    subsection if such return--
                ``(1) is in such form as the Secretary may prescribe, and
                ``(2) contains--
                        ``(A) the name and address of the individual from
                    whom the interest described in subsection (a)(2) was
                    received,
                        ``(B) the amount of such interest received for the
                    calendar year,
                        ``(C) the amount of outstanding principal on the
                    specified passenger vehicle loan as of the beginning of
                    such calendar year,
                        ``(D) the date of the origination of such loan,
                        ``(E) 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
                        ``(F) such other information as the Secretary may
                    prescribe.
        ``(c) Statements to Be Furnished to Individuals With Respect to
    Whom Information Is Required.--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--
                ``(1) the name, address, and phone number of the
            information contact of the person required to make such return,
            and
                ``(2) 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).
    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.
        ``(d) Definitions.--For purposes of this section--
                ``(1) In general.--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.
                ``(2) Specified passenger vehicle loan.--The term
            `specified passenger vehicle loan' means the indebtedness
            described in section 163(h)(4)(B) with respect to any
            applicable passenger vehicle.
        ``(e) Regulations.--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.''.
                (2) Penalties.--Section 6724(d) is amended--
                        (A) in paragraph (1)(B), by striking ``or'' at the
                    end of clause (xxvii), by striking ``and'' at the end
                    of clause (xxviii) and inserting ``or'', and by adding
                    at the end the following new clause:
                                ``(xxix) section 6050AA(a) (relating to
                            returns relating to applicable passenger
                            vehicle loan interest received in trade or
                            business from individuals), and'', and
                        (B) in paragraph (2), by striking ``or'' at the end
                    of subparagraph (KK), by striking the period at the end
                    of subparagraph (LL) and inserting ``, or'', and by
                    inserting after subparagraph (LL) the following new
                    subparagraph:
                        ``(MM) section 6050AA(b) (relating to statements
                    relating to applicable passenger vehicle loan interest
                    received in trade or business from individuals).''.
        (d) Conforming Amendments.--
                (1) Section 56(e)(1)(B) is amended by striking ``section
            163(h)(4)'' and inserting ``section 163(h)(5)''.
                (2) Section 85 is amended by striking subsection (c).
                (3) Section 86(b)(2)(A) is amended by inserting
            ``163(h)(4),'' after ``137,''.
                (4) Section 135(c)(4)(A) is amended by inserting
            ``163(h)(4),'' after ``137,''.
                (5) Section 137(b)(3)(A) is amended by inserting ``,
            163(h)(4),'' after ``85(c)''.
                (6) Section 219(g)(3)(A)(ii) is amended by inserting
            ``163(h)(4),'' after ``137,''.
                (7) Section 221(b)(1)(C)(i) is amended by inserting ``,
            163(h)(4),'' after ``85(c)''.
                (8) Section 469(i)(3)(E)(iii) is amended by inserting
            ``163(h)(4),'' after ``sections''.
                (9) The table of sections for subpart B of part III of
            subchapter A of chapter 61 is amended by adding at the end the
            following new item:

    ``Sec. 6050AA. Returns relating to applicable passenger vehicle loan
                                interest received in trade or business from
                                individuals.''.
        (e) Effective Date.--The amendments made by this section shall
    apply to indebtedness incurred after December 31, 2024.

    SEC. 110105. ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT.

        (a) Increase of Amount of Qualified Child Care Expenditures Taken
    Into Account.--Section 45F(a)(1) is amended by striking ``25 percent''
    and inserting ``40 percent (50 percent in the case of an eligible small
    business)''.
        (b) Increase of Maximum Credit Amount.--Subsection (b) of section
    45F is amended to read as follows:
        ``(b) Dollar Limitation.--
                ``(1) In general.--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).
                ``(2) Inflation adjustment.--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--
                        ``(A) such dollar amount, multiplied by
                        ``(B) the cost-of-living adjustment determined
                    under section 1(f)(3) for the calendar year in which
                    the taxable year begins, determined by substituting
                    `calendar year 2025' for `calendar year 2016' in
                    subparagraph (A)(ii) thereof.''.
        (c) Eligible Small Business.--Section 45F(c) is amended by adding
    at the end the following new paragraph:
                ``(4) Eligible small business.--The term `eligible small
            business' means a business that meets the gross receipts test
            of section 448(c), determined--
                        ``(A) by substituting `5-taxable-year' for `3-
                    taxable-year' in paragraph (1) thereof, and
                        ``(B) by substituting `5-year' for `3-year' each
                    place such term appears in paragraph (3)(A) thereof.''.
        (d) Credit Allowed for Third-party Intermediaries.--Section
    45F(c)(1)(A)(iii) is amended by inserting ``, or under a contract with
    an intermediate entity that contracts with one or more qualified child
    care facilities to provide such child care services'' before the period
    at the end.
        (e) Treatment of Jointly Owned or Operated Child Care Facility.--
    Section 45F(c)(2) is amended by adding at the end the following new
    subparagraph:
                        ``(C) Treatment of jointly owned or operated child
                    care facility.--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.''.
        (f) Regulations and Guidance.--Section 45F is amended by adding at
    the end the following new subsection:
        ``(g) Regulations and Guidance.--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).''.
        (g) Effective Date.--The amendments made by this section shall
    apply to amounts paid or incurred after December 31, 2025.

    SEC. 110106. EXTENSION AND ENHANCEMENT OF PAID FAMILY AND MEDICAL LEAVE
                  CREDIT.

        (a) In General.--Section 45S is amended--
                (1) in subsection (a)--
                        (A) by striking paragraph (1) and inserting the
                    following:
                ``(1) In general.--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):
                        ``(A) 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.
                        ``(B) 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.'', and
                        (B) by adding at the end the following:
                ``(3) Rate of payment determined without regard to whether
            leave is taken.--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.'',
                (2) in subsection (b)(1), by striking ``credit allowed''
            and inserting ``wages taken into account'',
                (3) in subsection (c), by striking paragraphs (3) and (4)
            and inserting the following:
                ``(3) Aggregation rule.--
                        ``(A) In general.--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.
                        ``(B) Exception.--
                                ``(i) In general.--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).
                                ``(ii) Substantial and legitimate business
                            reason.--For purposes of clause (i), the term
                            `substantial and legitimate business reason'
                            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.
                ``(4) Treatment of benefits mandated or paid for by state
            or local governments.--For purposes of this section, any leave
            which is paid by a State or local government or required by
            State or local law--
                        ``(A) 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
                        ``(B) shall not be taken into account in
                    determining the amount of the paid family and medical
                    leave credit under subsection (a).'',
                (4) in subsection (d)--
                        (A) in paragraph (1), by inserting ``(or, at the
                    election of the employer, for not less than 6 months)''
                    after ``1 year or more'', and
                        (B) in paragraph (2)--
                                (i) by inserting ``, as determined on an
                            annualized basis (pro-rata for part-time
                            employees),'' after ``compensation'', and
                                (ii) by striking the period at the end and
                            inserting ``, and'', and
                        (C) by adding at the end the following:
                ``(3) is customarily employed for not less than 20 hours
            per week.'', and
                (5) by striking subsection (i).
        (b) No Double Benefit.--Section 280C(a) is amended--
                (1) by striking ``45S(a)'' and inserting ``45S(a)(1)(A)'',
            and
                (2) by inserting after the first sentence the following:
            ``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).''
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110107. ENHANCEMENT OF ADOPTION CREDIT.

        (a) In General.--Section 23(a) is amended by adding at the end the
    following new paragraph:
                ``(4) Portion of credit refundable.--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.''.
        (b) Adjustments for Inflation.--Section 23(h) is amended to read as
    follows:
        ``(h) Adjustments for Inflation.--
                ``(1) In general.--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--
                        ``(A) such dollar amount, multiplied by
                        ``(B) the cost-of-living adjustment determined
                    under section 1(f)(3) for the calendar year in which
                    the taxable year begins, determined by substituting
                    `calendar year 2001' for `calendar year 2016' in
                    subparagraph (A)(ii) thereof.
                ``(2) Rounding.--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.
                ``(3) Special rule for refundable portion.--In the case of
            the dollar amount in subsection (a)(4), paragraph (1) shall be
            applied--
                        ``(A) by substituting `2025' for `2002' in the
                    matter preceding subparagraph (A), and
                        ``(B) by substituting `calendar year 2024' for
                    `calendar year 2001' in subparagraph (B) thereof.''.
        (c) Exclusion of Refundable Portion of Credit From Carryforward.--
    Section 23(c)(1) is amended by striking ``credit allowable under
    subsection (a)'' and inserting ``portion of the credit allowable under
    subsection (a) which is allowed under this subpart''.
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

    SEC. 110108. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF
                  DETERMINING WHETHER A CHILD HAS SPECIAL NEEDS FOR
                  PURPOSES OF THE ADOPTION CREDIT.

        (a) In General.--Section 23(d)(3) is amended--
                (1) in subparagraph (A), by inserting ``or Indian tribal
            government'' after ``a State'', and
                (2) in subparagraph (B), by inserting ``or Indian tribal
            government'' after ``such State''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

    SEC. 110109. SCHOLARSHIP GRANTING ORGANIZATIONS.

        (a) Allowance of Credit for Contributions of Individuals to
    Scholarship Granting Organizations.--
                (1) In general.--Subpart A of part IV of subchapter A of
            chapter 1 is amended by inserting after section 25E the
            following new section:

    ``SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS.

        ``(a) Allowance of Credit.--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.
        ``(b) Limitations.--
                ``(1) In general.--The credit allowed under subsection (a)
            to any taxpayer for any taxable year shall not exceed an amount
            equal to the greater of--
                        ``(A) 10 percent of the adjusted gross income of
                    the taxpayer for the taxable year, or
                        ``(B) $5,000.
                ``(2) Allocation of volume cap.--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.
                ``(3) Reduction based on state credit.--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.
        ``(c) Definitions.--For purposes of this section--
                ``(1) Eligible student.--The term `eligible student' means
            an individual who--
                        ``(A) 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
                        ``(B) is eligible to enroll in a public elementary
                    or secondary school.
                ``(2) Qualified contribution.--The term `qualified
            contribution' means a charitable contribution (as defined by
            section 170(c)) to a scholarship granting organization in the
            form of cash or marketable securities.
                ``(3) Qualified elementary or secondary education
            expense.--The term `qualified elementary or secondary education
            expense' 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:
                        ``(A) Tuition.
                        ``(B) Curriculum and curricular materials.
                        ``(C) Books or other instructional materials.
                        ``(D) Online educational materials.
                        ``(E) 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--
                                ``(i) is licensed as a teacher in any
                            State,
                                ``(ii) has taught at an eligible
                            educational institution, or
                                ``(iii) is a subject matter expert in the
                            relevant subject.
                        ``(F) Fees for a nationally standardized norm-
                    referenced achievement test, an advanced placement
                    examination, or any examinations related to college or
                    university admission.
                        ``(G) Fees for dual enrollment in an institution of
                    higher education.
                        ``(H) Educational therapies for students with
                    disabilities provided by a licensed or accredited
                    practitioner or provider, including occupational,
                    behavioral, physical, and speech-language therapies.
            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.
                ``(4) Scholarship granting organization.--The term
            `scholarship granting organization' means any organization--
                        ``(A) which--
                                ``(i) is described in section 501(c)(3) and
                            exempt from tax under section 501(a), and
                                ``(ii) is not a private foundation,
                        ``(B) substantially all of the activities of which
                    are providing scholarships for qualified elementary or
                    secondary education expenses of eligible students,
                        ``(C) which prevents the co-mingling of qualified
                    contributions with other amounts by maintaining one or
                    more separate accounts exclusively for qualified
                    contributions, and
                        ``(D) which either--
                                ``(i) meets the requirements of subsection
                            (d), or
                                ``(ii) 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.
        ``(d) Requirements for Scholarship Granting Organizations.--
                ``(1) In general.--An organization meets the requirements
            of this subsection if--
                        ``(A) such organization provides scholarships to 2
                    or more students, provided that not all such students
                    attend the same school,
                        ``(B) such organization does not provide
                    scholarships for any expenses other than qualified
                    elementary or secondary education expenses,
                        ``(C) such organization provides a scholarship to
                    eligible students with a priority for--
                                ``(i) students awarded a scholarship the
                            previous school year, and
                                ``(ii) after application of clause (i), any
                            such students who have a sibling who was
                            awarded a scholarship from such organization,
                        ``(D) such organization does not earmark or set
                    aside contributions for scholarships on behalf of any
                    particular student,
                        ``(E) 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),
                        ``(F) such organization--
                                ``(i) obtains from an independent certified
                            public accountant annual financial and
                            compliance audits, and
                                ``(ii) 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
                        ``(G) no officer or board member of such
                    organization has been convicted of a felony.
                ``(2) Income verification.--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:
                        ``(A) Federal and State income tax returns or tax
                    return transcripts with applicable schedules for the
                    taxable year prior to application.
                        ``(B) Income reporting statements for tax purposes
                    or wage and income transcripts from the Internal
                    Revenue Service.
                        ``(C) Notarized income verification letter from
                    employers.
                        ``(D) Unemployment or workers compensation
                    statements.
                        ``(E) Budget letters regarding public assistance
                    payments and Supplemental Nutrition Assistance Program
                    (SNAP) payments including a list of household members.
                ``(3) Independent certified public accountant.--For
            purposes of paragraph (1)(F), the term `independent certified
            public accountant' 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.
                ``(4) Prohibition on self-dealing.--
                        ``(A) In general.--A scholarship granting
                    organization may not award a scholarship to any
                    disqualified person.
                        ``(B) Disqualified person.--For purposes of this
                    paragraph, a disqualified person shall be determined
                    pursuant to rules similar to the rules of section 4946.
        ``(e) Denial of Double Benefit.--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.
        ``(f) Carryforward of Unused Credit.--
                ``(1) In general.--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.
                ``(2) Limitation.--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.
        ``(g) Volume Cap.--
                ``(1) In general.--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.
                ``(2) First-come, first-serve.--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.
                ``(3) Real-time information.--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.
                ``(4) Annual increases.--
                        ``(A) In general.--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.
                        ``(B) High-use calendar year.--For purposes of this
                    subsection, the term `high-use calendar year' 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.
                        ``(C) Prevention of decreases in annual volume
                    cap.--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.
                        ``(D) Publication of annual volume cap.--The
                    Secretary shall make publicly available the dollar
                    amount of the volume cap in effect under paragraph (1)
                    for each calendar year.
                ``(5) States.--For purposes of this subsection, the term
            `State' includes the District of Columbia.''.
                (2) Conforming amendments.--
                        (A) Section 25(e)(1)(C) is amended by striking
                    ``and 25D'' and inserting ``25D, and 25F''.
                        (B) The table of sections for subpart A of part IV
                    of subchapter A of chapter 1 is amended by inserting
                    after the item relating to section 25E the following
                    new item:

    ``Sec. 25F. Qualified elementary and secondary education
                                scholarships.''.
        (b) Exemption From Gross Income for Scholarships for Qualified
    Elementary or Secondary Education Expenses of Eligible Students.--
                (1) In general.--Part III of subchapter B of chapter 1 is
            amended by inserting before section 140 the following new
            section:

    ``SEC. 139J. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY
                  EDUCATION EXPENSES OF ELIGIBLE STUDENTS.

        ``(a) In General.--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.
        ``(b) Definitions.--In this section, the terms `qualified
    elementary or secondary education expense', `eligible student', and
    `scholarship granting organization' have the same meaning given such
    terms under section 25F(c).
        ``(c) Termination.--Subsection (a) shall not apply to amounts
    received after December 31, 2029.''.
                (2) Conforming amendment.--The table of sections for part
            III of subchapter B of chapter 1 is amended by inserting before
            the item relating to section 140 the following new item:

    ``Sec. 139J. Scholarships for qualified elementary or secondary
                                education expenses of eligible students.''.
        (c) Failure of Scholarship Granting Organizations to Make
    Distributions.--
                (1) In general.--Chapter 42 is amended by adding at the end
            the following new subchapter:

               ``Subchapter I--Scholarship Granting Organizations

    ``Sec. 4969. Failure to distribute receipts.

    ``SEC. 4969. FAILURE TO DISTRIBUTE RECEIPTS.

        ``(a) In General.--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.
        ``(b) Requirement.--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.
        ``(c) Definitions.--For purposes of this section--
                ``(1) Required distribution amount.--
                        ``(A) In general.--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--
                                ``(i) 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
                                ``(ii) increased by the amount of the
                            carryover under subparagraph (C) from the
                            preceding taxable year.
                        ``(B) Safe harbor for reasonable administrative
                    expenses.--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.
                        ``(C) Carryover.--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.
                ``(2) Distributions.--The term `distribution' 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.
                ``(3) Distribution deadline.--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.''.
                (2) Clerical amendment.--The table of subchapters for
            chapter 42 is amended by adding at the end the following new
            item:

             ``subchapter i--scholarship granting organizations''.

        (d) Effective Date.--
                (1) In general.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply to
            taxable years ending after December 31, 2025.
                (2) Exemption from gross income.--The amendments made by
            subsection (b) shall apply to amounts received after December
            31, 2025, in taxable years ending after such date.
        (e) Organizational and Parental Autonomy.--
                (1) Prohibition of control over scholarship
            organizations.--
                        (A) In general.--
                                (i) Treatment.--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.
                                (ii) No governmental control.--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.
                                (iii) Maximum freedom.--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.
                        (B) Prohibition of control over non-public
                    schools.--
                                (i) No governmental control.--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.
                                (ii) No exclusion of private or religious
                            schools.--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.
                                (iii) No exclusion of qualified expenses
                            due to institution's religious character or
                            affiliation.--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.
                        (C) Parental rights to use scholarships.--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.
                        (D) Parental right to intervene.--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.
                (2) Definitions.--For purposes of this subsection, the
            terms ``eligible student'', ``scholarship granting
            organization'', and ``qualified elementary or secondary
            education expense'' shall have the same meanings given such
            terms under section 25F(c) of the Internal Revenue Code of 1986
            (as added by this Act).

    SEC. 110110. ADDITIONAL ELEMENTARY, SECONDARY, AND HOME SCHOOL EXPENSES
                  TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR
                  PURPOSES OF 529 ACCOUNTS.

        (a) In General.--Section 529(c)(7) is amended to read as follows:
                ``(7) Treatment of elementary and secondary tuition.--Any
            reference in this section to the term `qualified higher
            education expense' 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:
                        ``(A) Tuition.
                        ``(B) Curriculum and curricular materials.
                        ``(C) Books or other instructional materials.
                        ``(D) Online educational materials.
                        ``(E) 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--
                                ``(i) is licensed as a teacher in any
                            State,
                                ``(ii) has taught at an eligible
                            educational institution, or
                                ``(iii) is a subject matter expert in the
                            relevant subject.
                        ``(F) Fees for a nationally standardized norm-
                    referenced achievement test, an advanced placement
                    examination, or any examinations related to college or
                    university admission.
                        ``(G) Fees for dual enrollment in an institution of
                    higher education.
                        ``(H) Educational therapies for students with
                    disabilities provided by a licensed or accredited
                    practitioner or provider, including occupational,
                    behavioral, physical, and speech-language therapies.
            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).''.
        (b) Effective Date.--The amendment made by this section shall apply
    to distributions made after the date of the enactment of this Act.

    SEC. 110111. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS
                  QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529
                  ACCOUNTS.

        (a) In General.--Section 529(e)(3) is amended by adding at the end
    the following new subparagraph:
                        ``(C) Certain postsecondary credentialing
                    expenses.--The term `qualified higher education
                    expenses' includes qualified postsecondary
                    credentialing expenses (as defined in subsection
                    (f)).''.
        (b) Qualified Postsecondary Credentialing Expenses.--Section 529 is
    amended by redesignating subsection (f) as subsection (g) and by
    inserting after subsection (e) the following new subsection:
        ``(f) Qualified Postsecondary Credentialing Expenses.--For purposes
    of this section--
                ``(1) In general.--The term `qualified postsecondary
            credentialing expenses' means--
                        ``(A) 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),
                        ``(B) fees for testing if such testing is required
                    to obtain or maintain a recognized postsecondary
                    credential, and
                        ``(C) fees for continuing education if such
                    education is required to maintain a recognized
                    postsecondary credential.
                ``(2) Recognized postsecondary credential program.--The
            term `recognized postsecondary credential program' means any
            program to obtain a recognized postsecondary credential if--
                        ``(A) such program is included on a State list
                    prepared under section 122(d) of the Workforce
                    Innovation and Opportunity Act (29 U.S.C. 3152(d)),
                        ``(B) such program is listed in the WEAMS Public
                    directory (or successor directory) maintained by the
                    Department of Veterans Affairs,
                        ``(C) 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
                        ``(D) 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.
                ``(3) Recognized postsecondary credential.--The term
            `recognized postsecondary credential' means--
                        ``(A) any postsecondary employment credential that
                    is industry recognized, including--
                                ``(i) 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,
                                ``(ii) 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
                                ``(iii) any postsecondary employment
                            credential identified for purposes of this
                            clause by the Secretary, after consultation
                            with the Secretary of Labor, as being industry
                            recognized,
                        ``(B) any certificate of completion of an
                    apprenticeship that is registered and certified with
                    the Secretary of Labor under the National
                    Apprenticeship Act (29 U.S.C. 50),
                        ``(C) 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
                        ``(D) any recognized postsecondary credential as
                    defined in section 3 of the Workforce Innovation and
                    Opportunity Act (29 U.S.C. 3102).''.
        (c) Effective Date.--The amendments made by this section shall
    apply to distributions made after the date of the enactment of this
    Act.

    SEC. 110112. REINSTATEMENT OF PARTIAL DEDUCTION FOR CHARITABLE
                  CONTRIBUTIONS OF INDIVIDUALS WHO DO NOT ELECT TO ITEMIZE.

        (a) In General.--Section 170(p) is amended--
                (1) by striking ``$300 ($600'' and inserting ``$150
            ($300'', and
                (2) by striking ``in 2021'' and inserting ``after December
            31, 2024, and before January 1, 2029''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

    SEC. 110113. EXCLUSION FOR CERTAIN EMPLOYER PAYMENTS OF STUDENT LOANS
                  UNDER EDUCATIONAL ASSISTANCE PROGRAMS MADE PERMANENT AND
                  ADJUSTED FOR INFLATION.

        (a) In General.--Section 127(c)(1)(B) is amended by striking ``in
    the case of payments made before January 1, 2026,''.
        (b) Inflation Adjustment.--Section 127 is amended--
                (1) by redesignating subsection (d) as subsection (e), and
                (2) by inserting after subsection (c) the following new
            subsection:
        ``(d) Inflation Adjustment.--
                ``(1) In general.--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--
                        ``(A) such dollar amount, multiplied by
                        ``(B) the cost-of-living adjustment determined
                    under section 1(f)(3) for the calendar year in which
                    the taxable year begins, determined by substituting
                    `calendar year 2025' for `calendar year 2016' in
                    subparagraph (A)(ii) thereof.
                ``(2) Rounding.--If any increase under paragraph (1) is not
            a multiple of $50, such increase shall be rounded to the
            nearest multiple of $50.''.
        (c) Effective Date.--The amendment made by this section shall apply
    to payments made after December 31, 2025.

    SEC. 110114. EXTENSION OF RULES FOR TREATMENT OF CERTAIN DISASTER-
                  RELATED PERSONAL CASUALTY LOSSES.

        For purposes of applying section 304(b) of the Taxpayer Certainty
    and Disaster Tax Relief Act of 2020 (division EE of Public Law 116-
    260), section 301 of such Act shall be applied by substituting the date
    of the enactment of this section for ``the date of the enactment of
    this Act'' each place it appears.

    SEC. 110115. TRUMP ACCOUNTS.

        (a) In General.--Subchapter F of chapter 1 is amended by adding at
    the end the following new part:

                           ``PART IX--TRUMP ACCOUNTS

    ``SEC. 530A. TRUMP ACCOUNTS.

        ``(a) General Rule.--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).
        ``(b) Trump Account.--For purposes of this section--
                ``(1) In general.--The term `Trump account' 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:
                        ``(A) The individual establishing the account shall
                    provide to the trustee the social security number of
                    such individual and of the account beneficiary.
                        ``(B) Except in the case of a qualified rollover
                    contribution described in subsection (e), no
                    contribution will be accepted--
                                ``(i) before January 1, 2026,
                                ``(ii) unless it is in cash,
                                ``(iii) unless the account beneficiary has
                            not attained age 18, and
                                ``(iv) if such contribution would result in
                            aggregate contributions for the taxable year
                            exceeding the contribution limit specified in
                            subsection (c)(1).
                        ``(C) No distribution (other than a distribution of
                    a qualified rollover contribution) will be allowed--
                                ``(i) before the date on which the account
                            beneficiary attains age 18, or
                                ``(ii) 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 \1/2\
                            the cash equivalent value of the account on the
                            date on which the account beneficiary attains
                            age 18.
                        ``(D) The account beneficiary has not attained age
                    8 on the date of the establishment of the account.
                        ``(E) 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.
                        ``(F) The interest of an individual in the balance
                    of his account is nonforfeitable.
                        ``(G) The assets of the trust shall not be
                    commingled with other property except in a common trust
                    fund or common investment fund.
                        ``(H) No part of the trust funds will be invested
                    in any asset other than eligible investments.
                ``(2) Eligible investments.--The term `eligible
            investments' means stock of a regulated investment company
            (within the meaning of section 851) which--
                        ``(A) tracks a well-established index of United
                    States equities (or which invests in an equivalent
                    diversified portfolio of United States equities),
                        ``(B) does not use leverage,
                        ``(C) minimizes fees and expenses, and
                        ``(D) meets such other criteria as the Secretary
                    determines appropriate for purposes of this section.
                ``(3) Account beneficiary.--The term `account beneficiary'
            means the individual on whose behalf the Trump account was
            established.
        ``(c) Treatment of Contributions.--
                ``(1) Contribution limit.--The contribution limit for any
            taxable year is $5,000.
                ``(2) Contributions from tax exempt sources and rollover
            contributions.--The amount contributed to a Trump account for
            purposes of paragraph (1) shall be determined without regard
            to--
                        ``(A) a qualified rollover contribution,
                        ``(B) any contribution from the Federal Government
                    or any State, local, or tribal government, or
                        ``(C) any contribution made through the program
                    established under subsection (l).
                ``(3) Cost-of-living adjustment.--
                        ``(A) In general.--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--
                                ``(i) such dollar amount, multiplied by
                                ``(ii) the cost-of-living adjustment
                            determined under section 1(f)(3) for the
                            calendar year, determined by substituting
                            `calendar year 2025' for `calendar year 2016'
                            in subparagraph (A)(ii) thereof.
                        ``(B) Rounding.--If any increase under subparagraph
                    (A) is not a multiple of $100, such amount shall be
                    rounded to the next lower multiple of $100.
        ``(d) Distributions.--
                ``(1) Amounts allocable to investment in the contract.--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.
                ``(2) Amounts allocable to income on the contract used for
            qualified expenses.--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).
                ``(3) Amounts includible in gross income.--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.
                ``(4) Qualified expenses.--For purposes of this subsection,
            the term `qualified expenses' means any of the following
            expenses paid or incurred for the benefit of the account
            beneficiary:
                        ``(A) Qualified higher education expenses (as
                    defined in section 529(e)(3)) determined without regard
                    to section 529(c)(7).
                        ``(B) Qualified post-secondary credentialing
                    expenses (as defined in section 529(f)).
                        ``(C) 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.
                        ``(D) 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.
                ``(5) Exceptions.--Paragraphs (2) and (3) shall not apply
            to any distribution which is a qualified rollover contribution.
                ``(6) Additional tax on certain distributions.--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.
        ``(e) Qualified Rollover Contribution.--For purposes of this
    section, the term `qualified rollover contribution' 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.
        ``(f) Treatment After Death of Account Beneficiary.--Rules similar
    to the rules of section 223(f)(8) shall apply for purposes of this
    section.
        ``(g) Determinations of Aggregate Distributions and Investment in
    Contract in the Case of Certain Rollover Contributions.--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.
        ``(h) Custodial Accounts.--For purposes of this section, a
    custodial account shall be treated as a trust under this section if--
                ``(1) 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
                ``(2) 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.
    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.
        ``(i) Termination.--
                ``(1) Age 31.--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).
                ``(2) Multiple accounts of one beneficiary.--
                        ``(A) In general.--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--
                                ``(i) 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
                                ``(ii) 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.
                        ``(B) Withholding requirement.--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).
                        ``(C) Notification.--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.
                        ``(D) Duplicate account.--For purposes of this
                    paragraph, the term `duplicate account' means--
                                ``(i) 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
                                ``(ii) 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.
        ``(j) Investment in the Contract.--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).
        ``(k) Reports.--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.
        ``(l) Contributions to Predominately Unrelated Children.--The
    Secretary shall establish a program through which contributions may be
    made to the Trump accounts of a large group of account beneficiaries
    if--
                ``(1) the contribution is made by any person described in
            any paragraph of section 501(c) and exempt from taxation under
            section 501(a),
                ``(2) 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
                ``(3) all individuals who are account beneficiaries of such
            an account who meet the selected criteria receive an equal
            portion of the contribution.''.
        (b) Distribution Taxed at Same Rate as Net Capital Gains.--Section
    1(h) is amended by adding at the end the following new paragraph:
                ``(12) Distributions from trump account taxed as net
            capital gain.--For purposes of this subsection, the term `net
            capital gain' 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).''.
        (c) Tax on Excess Contributions.--
                (1) In general.--Section 4973(a) is amended by striking
            ``or'' at the end of paragraph (5), by inserting ``or'' at the
            end of paragraph (6), and by inserting after paragraph (6) the
            following new paragraph:
                ``(7) a Trump account (as defined in section 530A(b)),''.
                (2) Excess contribution.--Section 4973 is amended by adding
            at the end the following new subsection:
        ``(i) Excess Contributions to a Trump Account.--For purposes of
    this section, in the case of Trump accounts (within the meaning of
    section 530A), the term `excess contributions' means the sum of--
                ``(1) 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
                ``(2) 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)).''.
        (d) Disclosure of Return Information to Facilitate Certain
    Contributions.--Section 6103(l) is amended by adding at the end the
    following new paragraph:
                ``(23) Disclosure of return information to enable certain
            contributions to trump accounts.--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):
                        ``(A) Information necessary to identify the account
                    holders in a particular class of beneficiaries
                    identified by a donor as the intended recipients.
                        ``(B) The name, address, and social security number
                    of a beneficiary.
                        ``(C) The account custodian and the address of such
                    custodian.
                        ``(D) The account number.
                        ``(E) The routing number.
                        ``(F) To the extent determined by the Secretary in
                    regulations, such other return information as the
                    Secretary determines necessary to ensure proper routing
                    of funds
            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.''.
        (e) Failure to Provide Reports on Trump Accounts.--Section
    6693(a)(2) is amended by striking ``and'' at the end of subparagraph
    (E), by striking the period at the end of subparagraph (F) and
    inserting ``, and'', and by adding at the end the following new
    subparagraph:
                        ``(G) section 530A(h) (relating to Trump
                    accounts).''.
        (f) Conforming Amendment.--The table of parts for subchapter F of
    chapter 1 is amended by adding at the end the following new item:

                          ``Part IX. Trump Accounts''.

        (g) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

    SEC. 110116. TRUMP ACCOUNTS CONTRIBUTION PILOT PROGRAM.

        (a) In General.--Subchapter B of chapter 65 is amended by adding at
    the end the following new section:

    ``SEC. 6434. TRUMP ACCOUNTS CONTRIBUTION PILOT PROGRAM.

        ``(a) In General.--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.
        ``(b) Account Established by Secretary.--
                ``(1) In general.--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.
                ``(2) Qualifying date.--For purposes of paragraph (1), the
            term `qualifying date' 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.
                ``(3) Notification.--In the case of any eligible individual
            for the benefit of whom the Secretary establishes an account
            under paragraph (1), the Secretary shall--
                        ``(A) 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
                        ``(B) shall provide an opportunity to such
                    individual to elect to decline the application of this
                    subsection to such qualifying child.
                ``(4) Determination of default trustee.--For purposes of
            selecting a trustee for an account established under paragraph
            (1), the Secretary shall take into account--
                        ``(A) the history of reliability and regulatory
                    compliance of such trustee,
                        ``(B) the customer service experience of such
                    trustee,
                        ``(C) the costs imposed by such trustee on the
                    account or account beneficiary, and
                        ``(D) to the extent practicable, the preferences of
                    any individual described in paragraph (3)(A) with
                    respect to such eligible individual.
        ``(c) Eligible Individual.--For purposes of subsection (a), the
    term eligible individual means an individual--
                ``(1) who is born after December 31, 2024, and before
            January 1, 2029, and
                ``(2) who is a United States citizen at birth.
        ``(d) Social Security Number Required.--
                ``(1) In general.--No credit shall be allowed under
            subsection (a) to a taxpayer unless such taxpayer includes on
            the return of tax for the taxable year--
                        ``(A) such individual's social security number,
                        ``(B) if such individual is married, the social
                    security number of such individual's spouse, and
                        ``(C) the social security number of the eligible
                    individual with respect to whom such credit is allowed.
                ``(2) Social security number defined.--For purposes of
            paragraph (1), the term `social security number' shall have the
            meaning given such term in section 24(h)(7).
        ``(e) Definitions.--For purposes of this section--
                ``(1) Qualifying child.--The term qualifying child has the
            meaning given such term in section 152(c).
                ``(2) Trump account; account beneficiary.--The terms `Trump
            account' and `account beneficiary' have the meaning given such
            terms in section 530A(b).''.
        (b) Penalty for Negligent Claim or Fraudulent Claim.--Part I of
    subchapter A of chapter 68 of subtitle F is amended by adding at the
    end the following new section:

    ``SEC. 6659. IMPROPER CLAIM FOR TRUMP ACCOUNT CONTRIBUTION PILOT
                  PROGRAM CREDIT.

        ``(a) In General.--In the case of any taxpayer that makes an
    excessive claim for a credit under section 6434--
                ``(1) if such excess is a result of negligence or disregard
            of the rules or regulations, there shall be imposed a penalty
            of $500, or
                ``(2) if such excess is a result of fraud, there shall be
            imposed a penalty of $1,000.
        ``(b) Definitions.--The terms `negligence' and `disregard' have the
    same meaning as when such terms are used in section 6662.''.
        (c) Omission of Correct Social Security Number Treated Mathematical
    or Clerical Error.--Section 6213(g)(2), as amended by the preceding
    provisions of this Act, is amended by striking ``and'' at the end of
    subparagraph (Y), by striking the period at the end of subparagraph (Z)
    and inserting ``, and'', and by inserting after subparagraph (Z) the
    following new subparagraph:
                        ``(AA) an omission of a correct social security
                    number required under section 6434(d)(1) (relating to
                    the Trump accounts contribution pilot program).''.
        (d) Clerical Amendments.--
                (1) The table of sections for subchapter B of chapter 65 is
            amended by adding at the end the following new item:

    ``Sec. 6434. Trump accounts contribution pilot program.''.
                (2) 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:

    ``Sec. 6659. Improper claim for Trump account contribution pilot
                                program credit.''.
        (e) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2024.

          PART 3--INVESTING IN HEALTH OF AMERICAN FAMILIES AND WORKERS

    SEC. 110201. TREATMENT OF HEALTH REIMBURSEMENT ARRANGEMENTS INTEGRATED
                  WITH INDIVIDUAL MARKET COVERAGE.

        (a) In General.--Section 9815(b) is amended--
                (1) by striking ``Exception.--Notwithstanding subsection
            (a)'' and inserting the following: ``Exceptions.--
                ``(1) Self-insured group health plans.--Notwithstanding
            subsection (a)'', and
                (2) by adding at the end the following new paragraph:
                ``(2) Custom health option and individual care expense
            arrangements.--
                        ``(A) In general.--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.
                        ``(B) Custom health option and individual care
                    expense arrangements defined.--For purposes of this
                    section, the term `custom health option and individual
                    care expense arrangement' means a health reimbursement
                    arrangement--
                                ``(i) 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,
                                ``(ii) under which such payments or
                            reimbursements may only be made for medical
                            care provided during periods during which the
                            individual is covered--
                                        ``(I) under individual health
                                    insurance coverage (other than coverage
                                    that consists solely of excepted
                                    benefits), or
                                        ``(II) under part A and B of title
                                    XVIII of the Social Security Act or
                                    part C of such title,
                                ``(iii) which meets the nondiscrimination
                            requirements of subparagraph (C),
                                ``(iv) which meets the substantiation
                            requirements of subparagraph (D), and
                                ``(v) which meets the notice requirements
                            of subparagraph (E).
                        ``(C) Nondiscrimination.--
                                ``(i) In general.--An arrangement meets the
                            requirements of this subparagraph if an
                            employer offering such arrangement to an
                            employee within a specified class of employee--
                                        ``(I) offers such arrangement to
                                    all employees within such specified
                                    class on the same terms, and
                                        ``(II) 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.
                            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.
                                ``(ii) Specified class of employee.--For
                            purposes of this subparagraph, any of the
                            following may be designated as a specified
                            class of employee:
                                        ``(I) Full-time employees.
                                        ``(II) Part-time employees.
                                        ``(III) Salaried employees.
                                        ``(IV) Non-salaried employees.
                                        ``(V) Employees whose primary site
                                    of employment is in the same rating
                                    area.
                                        ``(VI) 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)).
                                        ``(VII) 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.
                                        ``(VIII) Seasonal employees.
                                        ``(IX) 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)).
                                        ``(X) Such other classes of
                                    employees as the Secretary may
                                    designate.
                            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.
                                ``(iii) Special rule for new hires.--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).
                                ``(iv) Rules for determining type of
                            employee.--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.
                                ``(v) Permitted variation.--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--
                                        ``(I) increases as additional
                                    dependents of the employee are covered
                                    under the arrangement, and
                                        ``(II) 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.
                        ``(D) Substantiation requirements.--An arrangement
                    meets the requirements of this subparagraph if the
                    arrangement has reasonable procedures to substantiate--
                                ``(i) 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
                                ``(ii) any requests made for payment or
                            reimbursement of medical care under the
                            arrangement and that the participant and any
                            dependents remain so enrolled.
                        ``(E) Notice.--
                                ``(i) In general.--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--
                                        ``(I) is sufficiently accurate and
                                    comprehensive to apprise the employee
                                    of such rights and obligations, and
                                        ``(II) is written in a manner
                                    calculated to be understood by the
                                    average employee eligible to
                                    participate.
                                ``(ii) Notice requirements.--Such notice
                            shall include such information as the Secretary
                            may by regulation prescribe.
                                ``(iii) Notice deadline for certain
                            employees.--In the case of an employee--
                                        ``(I) 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
                                        ``(II) whose employer is first
                                    established fewer than 120 days before
                                    the beginning of the first plan year of
                                    the arrangement,
                            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.''.
        (b) Inclusion of CHOICE Arrangement Permitted Benefits on W-2.--
                (1) In general.--Section 6051(a), as amended by the
            preceding provisions of this Act, is amended by striking
            ``and'' at the end of paragraph (18), by striking the period at
            the end of paragraph (19) and inserting ``, and'', and by
            inserting after paragraph (19) the following new paragraph:
                ``(20) 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.''.
        (c) Treatment of Current Rules Relating to Certain Arrangements.--
                (1) No inference.--To the extent not inconsistent with the
            amendments made by this section--
                        (A) 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
                        (B) 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.
                (2) Other conforming of rules.--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.
        (d) Effective Date.--The amendments made by this section shall
    apply to plan years beginning after December 31, 2025.

    SEC. 110202. PARTICIPANTS IN CHOICE ARRANGEMENT ELIGIBLE FOR PURCHASE
                  OF EXCHANGE INSURANCE UNDER CAFETERIA PLAN.

        (a) In General.--Section 125(f)(3) is amended by adding at the end
    the following new subparagraph:
                        ``(C) Exception for participants in CHOICE
                    arrangement.--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.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2025.

    SEC. 110203. EMPLOYER CREDIT FOR CHOICE ARRANGEMENT.

        (a) In General.--Subpart D of part IV of subchapter A of chapter 1
    is amended by adding at the end the following new section:

    ``SEC. 45BB. EMPLOYER CREDIT FOR CHOICE ARRANGEMENT.

        ``(a) In General.--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--
                ``(1) $100 multiplied by the number of months for which the
            employee is so enrolled during the first year in the credit
            period, and
                ``(2) 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.
        ``(b) Arrangement Must Constitute Minimum Essential Coverage.--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)).
        ``(c) Definitions.--For purposes of this section--
                ``(1) CHOICE arrangement.--The term `CHOICE arrangement'
            means a custom health option and individual care expense
            arrangement (as defined in section 9815(b)(2)(B)).
                ``(2) Credit period.--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.
                ``(3) Eligible employer.--The term `eligible employer'
            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.
        ``(d) Inflation Adjustment.--
                ``(1) In general.--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--
                        ``(A) such dollar amount, multiplied by
                        ``(B) the cost-of-living adjustment determined
                    under section 1(f)(3) for the calendar year in which
                    such taxable year begins by substituting `calendar year
                    2025' for `calendar year 2016' in subparagraph (A)(ii)
                    thereof.
                ``(2) Rounding.--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.''.
        (b) Credit Made Part of General Business Credit.--Section 38(b) is
    amended by striking ``plus'' at the end of paragraph (40), by striking
    the period at the end of paragraph (41) and inserting ``, plus'', and
    by adding at the end the following new paragraph:
                ``(42) the CHOICE arrangement credit determined under
            section 45BB(a).''.
        (c) Credit Allowed Against Alternative Minimum Tax.--Section
    38(c)(4)(B) is amended--
                (1) by redesignating clauses (x), (xi), and (xii) as
            clauses (xi), (xii), and (xiii), respectively, and
                (2) by inserting after clause (ix) the following new
            clause:
                                ``(x) the credit determined under section
                            45BB,''.
        (d) Clerical Amendment.--The table of sections for subpart D of
    part IV of subchapter A of chapter 1 is amended by adding at the end
    the following new item:

    ``Sec. 45BB. Employer credit for CHOICE arrangement.''.
        (e) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110204. INDIVIDUALS ENTITLED TO PART A OF MEDICARE BY REASON OF
                  AGE ALLOWED TO CONTRIBUTE TO HEALTH SAVINGS ACCOUNTS.

        (a) In General.--Section 223(c)(1)(B) is amended by striking
    ``and'' at the end of clause (ii), by striking the period at the end of
    clause (iii) and inserting ``, and'', and by adding at the end the
    following new clause:
                                ``(iv) 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.''.
        (b) Treatment of Health Insurance Purchased From Account.--Section
    223(d)(2)(C)(iv) is amended by inserting ``and who is not an eligible
    individual'' after ``who has attained the age specified in section 1811
    of the Social Security Act''.
        (c) Coordination With Penalty on Distributions Not Used for
    Qualified Medical Expenses.--Section 223(f)(4)(C) is amended by
    striking ``Subparagraph (A)'' and inserting ``Except in the case of an
    eligible individual, subparagraph (A)''
        (d) Conforming Amendment.--Section 223(b)(7) is amended by
    inserting ``(other than an entitlement to benefits described in
    subsection (c)(1)(B)(iv))'' after ``Social Security Act''.
        (e) Effective Date.--The amendments made by this section shall
    apply to months beginning after December 31, 2025.

    SEC. 110205. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS.

        (a) In General.--Section 223(c)(1) is amended by adding at the end
    the following new subparagraph:
                        ``(E) Treatment of direct primary care service
                    arrangements.--
                                ``(i) In general.--A direct primary care
                            service arrangement shall not be treated as a
                            health plan for purposes of subparagraph
                            (A)(ii).
                                ``(ii) Direct primary care service
                            arrangement.--For purposes of this
                            subparagraph--
                                        ``(I) In general.--The term `direct
                                    primary care service arrangement'
                                    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.
                                        ``(II) Limitation.--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).
                                ``(iii) Certain services specifically
                            excluded from treatment as primary care
                            services.--For purposes of this subparagraph,
                            the term `primary care services' shall not
                            include--
                                        ``(I) procedures that require the
                                    use of general anesthesia,
                                        ``(II) prescription drugs (other
                                    than vaccines), and
                                        ``(III) laboratory services not
                                    typically administered in an ambulatory
                                    primary care setting.
                            The Secretary, after consultation with the
                            Secretary of Health and Human Services, shall
                            issue regulations or other guidance regarding
                            the application of this clause.''.
        (b) Direct Primary Care Service Arrangement Fees Treated as Medical
    Expenses.--Section 223(d)(2)(C) is amended by striking ``or'' at the
    end of clause (iii), by striking the period at the end of clause (iv)
    and inserting ``, or'', and by adding at the end the following new
    clause:
                                ``(v) any direct primary care service
                            arrangement.''.
        (c) Inflation Adjustment.--Section 223(g)(1) is amended--
                (1) by inserting ``, (c)(1)(E)(ii)(II),'' after ``(b)(2)''
            each place it appears, and
                (2) in subparagraph (B), by striking ``clause (ii)'' in
            clause (i) and inserting ``clauses (ii) and (iii)'', by
            striking ``and'' at the end of clause (i), by striking the
            period at the end of clause (ii) and inserting ``, and'', and
            by inserting after clause (ii) the following new clause:
                                ``(iii) in the case of the dollar amount in
                            subsection (c)(1)(E)(ii)(II) for taxable years
                            beginning in calendar years after 2026,
                            `calendar year 2025'.''.''.
        (d) Effective Date.--The amendments made by this section shall
    apply to months beginning after December 31, 2025.

    SEC. 110206. ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN CONNECTION
                  WITH HEALTH SAVINGS ACCOUNTS.

        (a) In General.--Section 223(c)(2) is amended by adding at the end
    the following new subparagraph:
                        ``(H) Bronze and catastrophic plans treated as high
                    deductible health plans.--The term `high deductible
                    health plan' shall include any plan--
                                ``(i) available as individual coverage
                            through an Exchange established under section
                            1311 or 1321 of the Patient Protection and
                            Affordable Care Act, and
                                ``(ii) described in subsection (d)(1)(A) or
                            (e) of section 1302 of such Act.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to months beginning after December 31, 2025.

    SEC. 110207. ON-SITE EMPLOYEE CLINICS.

        (a) In General.--Section 223(c)(1), as amended by the preceding
    provisions of this Act, is amended by adding at the end the following
    new subparagraph:
                        ``(F) Special rule for qualified items and
                    services.--
                                ``(i) In general.--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--
                                        ``(I) at a healthcare facility
                                    located at a facility owned or leased
                                    by the employer of the individual (or
                                    of the individual's spouse), or
                                        ``(II) at a healthcare facility
                                    operated primarily for the benefit of
                                    employees of the employer of the
                                    individual (or of the individual's
                                    spouse).
                                ``(ii) Qualified items and services
                            defined.--For purposes of this subparagraph,
                            the term `qualified items and services' means
                            the following:
                                        ``(I) Physical examination.
                                        ``(II) Immunizations, including
                                    injections of antigens provided by
                                    employees.
                                        ``(III) Drugs or biologicals other
                                    than a prescribed drug (as such term is
                                    defined in section 213(d)(3)).
                                        ``(IV) Treatment for injuries
                                    occurring in the course of employment.
                                        ``(V) Preventive care for chronic
                                    conditions (as defined in clause (iv)).
                                        ``(VI) Drug testing.
                                        ``(VII) Hearing or vision
                                    screenings and related services.
                                ``(iii) Aggregation.--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.
                                ``(iv) Preventive care for chronic
                            conditions.--For purposes of this subparagraph,
                            the term `preventive care for chronic
                            conditions' 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.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to months in taxable years beginning after December 31, 2025.

    SEC. 110208. CERTAIN AMOUNTS PAID FOR PHYSICAL ACTIVITY, FITNESS, AND
                  EXERCISE TREATED AS AMOUNTS PAID FOR MEDICAL CARE.

        (a) In General.--Section 223(d)(2)(A) is amended by adding at the
    end the following: ``For purposes of this subparagraph, amounts paid
    for qualified sports and fitness expenses shall be treated as paid for
    medical care.''.
        (b) Qualified Sports and Fitness Expenses.--Section 223(d)(2) is
    amended by adding at the end the following new subparagraph:
                        ``(E) Qualified sports and fitness expenses.--For
                    purposes of this paragraph--
                                ``(i) In general.--The term `qualified
                            sports and fitness expenses' means amounts paid
                            exclusively for the sole purpose of
                            participating in a physical activity
                            including--
                                        ``(I) for membership at a fitness
                                    facility, or
                                        ``(II) for participation or
                                    instruction in physical exercise or
                                    physical activity.
                                ``(ii) Overall dollar limitation.--
                                        ``(I) In general.--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))).
                                        ``(II) Monthly limit.--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).
                                ``(iii) Fitness facility.--For purposes of
                            clause (i)(I), the term `fitness facility'
                            means a facility--
                                        ``(I) 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,
                                        ``(II) which is not a private club
                                    owned and operated by its members,
                                        ``(III) which does not offer golf,
                                    hunting, sailing, or riding facilities,
                                        ``(IV) the health or fitness
                                    component of which is not incidental to
                                    its overall function and purpose, and
                                        ``(V) which is fully compliant with
                                    the State of jurisdiction and Federal
                                    anti-discrimination laws.
                                ``(iv) Treatment of personal trainers,
                            exercise videos, etc.--The term `qualified
                            sports and fitness expenses' shall not include
                            any amount paid for--
                                        ``(I) videos, books, or similar
                                    materials,
                                        ``(II) remote or virtual
                                    instruction in a physical exercise or
                                    physical activity, unless such
                                    instruction is live, or
                                        ``(III) one-on-one personal
                                    training.
                                ``(v) Programs which include components
                            other than physical exercise and physical
                            activity.--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.
                                ``(vi) Membership, participation, and
                            instruction must be continuing.--An amount
                            shall not be treated as paid for the purpose of
                            participating in a physical activity unless--
                                        ``(I) in the case of a membership
                                    at a fitness facility, such membership
                                    is for more than 1 day, and
                                        ``(II) 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.
                                ``(vii) Cost-of-living adjustment.--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--
                                        ``(I) such dollar amount,
                                    multiplied by
                                        ``(II) the cost-of-living
                                    adjustment determined under section
                                    1(f)(3) for the calendar year in which
                                    such taxable year begins by
                                    substituting `calendar year 2025' for
                                    `calendar year 2016' in subparagraph
                                    (A)(ii) thereof.
                            If any increase under the preceding sentence is
                            not a multiple of $50, such increase shall be
                            rounded to the nearest multiple of $50.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110209. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE
                  SAME HEALTH SAVINGS ACCOUNT.

        (a) In General.--Section 223(b)(5) is amended to read as follows:
                ``(5) Special rule for married individuals with family
            coverage.--
                        ``(A) In general.--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--
                                ``(i) 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),
                                ``(ii) 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
                                ``(iii) such limitation (after application
                            of clauses (i) and (ii)) shall be divided
                            equally between such spouses unless they agree
                            on a different division.
                        ``(B) Treatment of additional contribution
                    amounts.--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.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 110210. FSA AND HRA TERMINATIONS OR CONVERSIONS TO FUND HSAS.

        (a) In General.--Section 106(e)(2) is amended to read as follows:
                ``(2) Qualified HSA distribution.--For purposes of this
            subsection--
                        ``(A) In general.--The term `qualified HSA
                    distribution' 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--
                                ``(i) 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
                                ``(ii) 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.
                        ``(B) Dollar limitation.--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)).''.
        (b) Partial Reduction of Limitation on Deductible HSA
    Contributions.--Section 223(b)(4) is amended by striking ``and'' at the
    end of subparagraph (B), by striking the period at the end of
    subparagraph (C) and inserting ``, and'', and by inserting after
    subparagraph (C) the following new subparagraph:
                        ``(D) 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).''.
        (c) Conversion to Hsa-compatible Arrangement for Remainder of Plan
    Year.--Section 223(c)(1)(B), as amended by this preceding provisions of
    this Act, is amended by striking ``and'' at the end of clause (iii), by
    striking the period at the end of clause (iv) and inserting ``, and'',
    and by adding at the end the following new clause:
                                ``(v) 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.''.
        (d) Inclusion of Qualified HSA Distributions on w-2.--
                (1) In general.--Section 6051(a), as amended by the
            preceding provisions of this Act, is amended by striking
            ``and'' at the end of paragraph (19), by striking the period at
            the end of paragraph (20) and inserting ``, and'', and by
            inserting after paragraph (20) the following new paragraph:
                ``(21) the amount of any qualified HSA distribution (as
            defined in section 106(e)(2)) with respect to such employee.''.
                (2) Conforming amendment.--Section 6051(a)(12) is amended
            by inserting ``(other than any qualified HSA distribution, as
            defined in section 106(e)(2))'' before the comma at the end.
        (e) Effective Date.--The amendments made by this section shall
    apply to distributions made after December 31, 2025.

    SEC. 110211. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE
                  ESTABLISHMENT OF HEALTH SAVINGS ACCOUNT.

        (a) In General.--Section 223(d)(2), as amended by the preceding
    provisions of this Act, is amended by adding at the end the following
    new subparagraph:
                        ``(F) Treatment of certain medical expenses
                    incurred before establishment of account.--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.''.
        (b) Effective Date.--The amendment made by this section shall apply
    with respect to coverage beginning after December 31, 2025.

    SEC. 110212. CONTRIBUTIONS PERMITTED IF SPOUSE HAS HEALTH FLEXIBLE
                  SPENDING ARRANGEMENT.

        (a) Contributions Permitted if Spouse Has a Health Flexible
    Spending Arrangement.--Section 223(c)(1)(B), as amended by this
    preceding provisions of this Act, is amended by striking ``and'' at the
    end of clause (iv), by striking the period at the end of clause (v) and
    inserting ``, and'', and by adding at the end the following new clause:
                                ``(vi) 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.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to plan years beginning after December 31, 2025.

    SEC. 110213. INCREASE IN HEALTH SAVINGS ACCOUNT CONTRIBUTION LIMITATION
                  FOR CERTAIN INDIVIDUALS.

        (a) Increase.--
                (1) In general.--Section 223(b) is amended by adding at the
            end the following new paragraph:
                ``(9) Increase in limitation for certain taxpayers.--
                        ``(A) In general.--The applicable limitation under
                    subparagraphs (A) and (B) of paragraph (2) shall be
                    increased by $4,300 and $8,550, respectively.
                        ``(B) Limitation based on modified adjusted gross
                    income.--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--
                                ``(i) the excess (if any) of--
                                        ``(I) the taxpayer's adjusted gross
                                    income for such taxable year, over
                                        ``(II) $75,000 ($150,000 in the
                                    case of a joint return, if the eligible
                                    individual has family coverage), bears
                                    to
                                ``(ii) $25,000 ($50,000 in the case of a
                            joint return, if the eligible individual has
                            family coverage).
                    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.''.
                (2) Only to apply to employee contributions.--Section
            106(d)(1) is amended by inserting ``and section 223(b)(9)''
            after ``determined without regard to this subsection''.
        (b) Inflation Adjustment.--Section 223(g), as amended by the
    preceding provisions of this Act, is amended--
                (1) by inserting ``, (b)(9)(A), (b)(9)(B)(i)(II),'' before
            ``and (c)(2)(A)'' each place it appears,
                (2) by striking ``clauses (ii) and (ii)'' in paragraph
            (1)(B)(i) and inserting ``clauses (ii), (iii), and (iv)'',
                (3) by striking ``and'' at the end of paragraph (1)(B)(ii),
                (4) by striking the period at the end of paragraph
            (1)(B)(iii) and inserting ``, and'', and
                (5) by inserting after paragraph (1)(B)(iii) the following
            new clause:
                                ``(iv) in the case of the dollar amounts in
                            subsections (b)(9)(A) and (b)(9)(B)(i)(II),
                            `calendar year 2025'.''.
        (c) Effective Date.--
                (1) Subsection (a).--The amendments made by subsection (a)
            shall apply to taxable years beginning after December 31, 2025.
                (2) Subsection (b).--The amendments made by subsection (b)
            shall apply to taxable years beginning after December 31, 2026.

    SEC. 110214. REGULATIONS.

        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.

           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.

        (a) In General.--Section 168(k) is amended--
                (1) in paragraph (2)--
                        (A) by striking ``January 1, 2027'' each place it
                    appears and inserting ``January 1, 2030'', and
                        (B) in subparagraph (B)--
                                (i) in clause (i)(II), by striking
                            ``January 1, 2028'' and inserting ``January 1,
                            2031'', and
                                (ii) in the heading of clause (ii), by
                            striking ``pre-january 1, 2027 basis'' and
                            inserting ``pre-january 1, 2030 basis'',
                (2) in paragraph (5)(A), by striking ``January 1, 2027''
            and inserting ``January 1, 2030'', and
                (3) in paragraph (6)--
                        (A) in subparagraph (A)--
                                (i) by inserting ``in the case of property
                            acquired by the taxpayer before January 20,
                            2025,'' after ``Except as otherwise provided in
                            this paragraph,'', and
                                (ii) by striking ``and'' at the end of
                            clause (iv), by striking the period at the end
                            of clause (v) and inserting ``, and'', and by
                            adding at the end the following new clause:
                                ``(vi) in the case of property placed in
                            service after December 31, 2026, 0 percent.'',
                        (B) in subparagraph (B)--
                                (i) by striking ``In the case of property
                            described'' and inserting ``In the case of
                            property acquired by the taxpayer before
                            January 20, 2025 and described'', and
                                (ii) by striking ``and'' at the end of
                            clause (iv), by striking the period at the end
                            of clause (v) and inserting ``, and'', and by
                            adding at the end the following new clause:
                                ``(vi) in the case of property placed in
                            service after December 31, 2027, 0 percent.'',
                        (C) in subparagraph (C), by inserting ``and'' at
                    the end of clause (iii), by striking clauses (iv) and
                    (v), and by adding at the end the following new clause:
                                ``(iv) in the case of a plant which is
                            planted or grafted after January 19, 2025, and
                            before January 1, 2030, 100 percent.'', and
                        (D) by adding at the end the following new
                    subparagraph:
                        ``(D) Rule for property acquired after january 19,
                    2025.--
                                ``(i) In general.--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 `applicable
                            percentage' means 100 percent.
                                ``(ii) Acquisition date determination.--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.''.
        (b) Conforming Amendment.--Section 460(c)(6)(B) is amended by
    striking ``which'' and all that follows through the period and
    inserting ``which has a recovery period of 7 years or less.''.
        (c) Effective Dates.--
                (1) In general.--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.
                (2) Specified plants.--The amendments made by this section
            shall apply to specified plants planted or grafted after
            January 19, 2025.

    SEC. 111002. DEDUCTION OF DOMESTIC RESEARCH AND EXPERIMENTAL
                  EXPENDITURES.

        (a) Suspension of Amortization for Domestic Research and
    Experimental Expenditures.--Section 174 is amended by adding at the end
    the following new subsection:
        ``(e) Suspension of Application to Domestic Research and
    Experimental Expenditures.--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.''.
        (b) Reinstatement of Expensing for Domestic Research and
    Experimental Expenditures.--Part VI of subchapter B of chapter 1 is
    amended by inserting after section 174 the following new section:

    ``SEC. 174A. TEMPORARY RULES FOR DOMESTIC RESEARCH AND EXPERIMENTAL
                  EXPENDITURES.

        ``(a) Treatment as Expenses.--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.
        ``(b) Domestic Research or Experimental Expenditures.--For purposes
    of this section, the term `domestic research or experimental
    expenditures' 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)).
        ``(c) Amortization of Certain Domestic Research and Experimental
    Expenditures.--
                ``(1) In general.--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--
                        ``(A) charge such expenditures to capital account,
                    and
                        ``(B) 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).
                ``(2) Time for and scope of election.--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.
        ``(d) Special Rules.--
                ``(1) Land and other property.--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.
                ``(2) Exploration expenditures.--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).
                ``(3) Software development.--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.
        ``(e) Termination.--
                ``(1) In general.--This section shall not apply to amounts
            paid or incurred in taxable years beginning after December 31,
            2029.
                ``(2) Change in method of accounting.--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--
                        ``(A) such change shall be treated as initiated by
                    the taxpayer,
                        ``(B) such change shall be treated as made with the
                    consent of the Secretary, and
                        ``(C) 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.''.
        (c) Treatment of Foreign Research or Experimental Expenditures Upon
    Disposition.--Section 174(d) is amended by inserting ``or reduction to
    amount realized'' after ``no deduction''.
        (d) Coordination With Certain Other Provisions.--
                (1) Research credit.--
                        (A) Section 41(d)(1)(A) is amended by inserting
                    ``or domestic research or experimental expenditures
                    under section 174A'' after ``section 174''.
                        (B) Section 280C(c) is amended by adding at the end
                    the following new paragraph:
                ``(4) Domestic research or experimental expenditures.--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).''.
                        (C) Section 280C(c) is amended--
                                (i) in paragraph (1)(B)--
                                        (I) by striking ``a deduction'' and
                                    inserting ``an amortization
                                    deduction'', and
                                        (II) by inserting ``under section
                                    174'' after ``basic research
                                    expenses'', and
                                (ii) in paragraph (2)(A)(i), by striking
                            ``paragraph (1)'' and inserting ``paragraphs
                            (1) and (4)''.
                (2) AMT adjustment.--Section 56(b)(2) is amended--
                        (A) by striking ``174(a)'' each place it appears
                    and inserting ``174A(a)'', and
                        (B) by adding at the end of subparagraph (A) the
                    following new flush sentence:
                    ``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).''.
                (3) Optional 10-year writeoff.--Section 59(e)(2)(B) is
            amended by striking ``section 174(a) (relating to research and
            experimental expenditures)'' and inserting ``section 174A(a)
            (relating to temporary rules for domestic research and
            experimental expenditures)''.
                (4) Qualified small issue bonds.--Section 144(a)(4)(C)(iv)
            is amended by inserting ``or 174A(a)'' after ``174(a)''.
                (5) Start-up expenditures.--Section 195(c)(1) is amended by
            striking ``or 174'' in the last sentence and inserting ``174,
            or 174A''.
                (6) Capital expenditures.--
                        (A) Section 263(a)(1)(B) is amended by inserting ``
                    or 174A'' after ``174''.
                        (B) Section 263A(c)(2) is amended by inserting ``or
                    174A'' after ``174''.
                (7) Active business computer software royalties.--Section
            543(d)(4)(A)(i) is amended by inserting ``174A,'' after
            ``174,''.
                (8) Source rules.--Section 864(g)(2) is amended in the last
            sentence--
                        (A) by striking ``treated as deferred expenses
                    under subsection (b) of section 174'' and inserting
                    ``allowed as an amortization deduction under section
                    174(a) or section 174A(c),'', and
                        (B) by striking ``such subsection'' and inserting
                    ``such section (as the case may be)''.
                (9) Basis adjustment.--Section 1016(a)(14) is amended by
            striking ``deductions as deferred expenses under section
            174(b)(1) (relating to research and experimental
            expenditures)'' and inserting ``deductions under section 174 or
            174A(c)''.
                (10) Small business stock.--Section 1202(e)(2)(B) is
            amended by striking ``research and experimental expenditures
            under section 174'' and inserting ``specified research or
            experimental expenditures under section 174 or domestic
            research or experimental expenditures under section 174A''.
        (e) Clerical Amendment.--The table of sections for part VI of
    subchapter B of chapter 1 is amended by inserting after the item
    relating to section 174 the following new item:

    ``Sec. 174A. Temporary rules for domestic research and experimental
                                expenditures.''.
        (f) Effective Date and Special Rule.--
                (1) In general.--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.
                (2) Treatment of foreign research or experimental
            expenditures upon disposition.--The amendment made by
            subsection (c) shall apply to property disposed, retired, or
            abandoned after May 12, 2025.
                (3) Coordination with research credit.--The amendments made
            by subparagraphs (B) and (C) of subsection (d)(1) shall apply
            to taxable years beginning after December 31, 2024.
                (4) Special rule for short taxable years.--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.
                (5) Change in method of accounting.--The amendments made by
            this section shall be treated as a change in method of
            accounting for purposes of section 481 of the Internal Revenue
            Code of 1986 and--
                        (A) such change shall be treated as initiated by
                    the taxpayer,
                        (B) such change shall be treated as made with the
                    consent of the Secretary, and
                        (C) 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.
                (6) No inference.--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 section
            280C(c) of the Internal Revenue Code of 1986 with respect to
            taxable years beginning before January 1, 2025.

    SEC. 111003. MODIFIED CALCULATION OF ADJUSTED TAXABLE INCOME FOR
                  PURPOSES OF BUSINESS INTEREST DEDUCTION.

        (a) In General.--Section 163(j)(8)(A)(v) is amended by striking
    ``beginning before January 1, 2022'' and inserting ``beginning after
    December 31, 2024 and before January 1, 2030''.
        (b) Floor Plan Financing Applicable to Certain Trailers and
    Campers.--Section 163(j)(9)(C) is amended by adding at the end the
    following new flush sentence:
                    ``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.''.
        (c) Effective Date and Special Rule.--
                (1) In general.--The amendments made by this section shall
            apply to taxable years beginning after December 31, 2024.
                (2) Special rule for short taxable years.--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.

    SEC. 111004. EXTENSION OF DEDUCTION FOR FOREIGN-DERIVED INTANGIBLE
                  INCOME AND GLOBAL INTANGIBLE LOW-TAXED INCOME.

        (a) In General.--Section 250(a) is amended--
                (1) by striking ``37.5 percent'' in paragraph (1)(A) and
            inserting ``36.5 percent'',
                (2) by striking ``50 percent'' in paragraph (1)(B) and
            inserting ``49.2 percent'', and
                (3) by striking paragraph (3).
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 111005. EXTENSION OF BASE EROSION MINIMUM TAX AMOUNT.

        (a) In General.--Section 59A(b) is amended--
                (1) by striking ``10 percent'' in paragraph (1) and
            inserting ``10.1 percent'', and
                (2) by striking paragraph (2) and by redesignating
            paragraphs (3) and (4) as paragraphs (2) and (3), respectively.
        (b) Conforming Amendments.--
                (1) Section 59A(b)(1) is amended by striking ``Except as
            provided in paragraphs (2) and (3)'' and inserting ``Except as
            provided in paragraph (2)''.
                (2) Section 59A(b)(2), as redesignated by subsection
            (a)(2), is amended by striking ``the percentage otherwise in
            effect under paragraphs (1)(A) and (2)(A) shall each be
            increased'' and inserting ``the percentages otherwise in effect
            under paragraph (1)(A) shall be increased''.
                (3) Section 59A(e)(1)(C) is amended by striking ``in the
            case of a taxpayer described in subsection (b)(3)(B)'' and
            inserting ``in the case of a taxpayer described in subsection
            (b)(2)(B)''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 111006. EXCEPTION TO DENIAL OF DEDUCTION FOR BUSINESS MEALS.

        (a) In General.--Section 274(o) is amended by striking ``No
    deduction'' and inserting ``Except in the case of an expense described
    in subsection (e)(8), no deduction''.
        (b) Effective Date.--The amendment made by this section shall apply
    to amounts paid or incurred after December 31, 2025.

        PART 2--ADDITIONAL TAX RELIEF FOR RURAL AMERICA AND MAIN STREET

    SEC. 111101. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED PRODUCTION
                  PROPERTY.

        (a) In General.--Section 168 is amended by adding at the end the
    following new subsection:
        ``(n) Special Allowance for Qualified Production Property.--
                ``(1) In general.--In the case of any qualified production
            property--
                        ``(A) 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
                        ``(B) 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.
                ``(2) Qualified production property.--For purposes of this
            subsection--
                        ``(A) In general.--The term `qualified production
                    property' means that portion of any nonresidential real
                    property--
                                ``(i) to which this section applies,
                                ``(ii) which is used by the taxpayer as an
                            integral part of a qualified production
                            activity,
                                ``(iii) which is placed in service in the
                            United States or any possession of the United
                            States,
                                ``(iv) the original use of which commences
                            with the taxpayer,
                                ``(v) the construction of which begins
                            after January 19, 2025, and before January 1,
                            2029,
                                ``(vi) with respect to which the taxpayer
                            has elected the application of this subsection,
                            and
                                ``(vii) which is placed in service before
                            January 1, 2033.
                        ``(B) Special rule for certain property not
                    previously used in qualified production activities.--
                                ``(i) In general.--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.
                                ``(ii) Written binding contracts.--For
                            purposes of determining under clause (i)--
                                        ``(I) 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
                                        ``(II) whether such property is
                                    acquired after such period, such
                                    property shall be treated as acquired
                                    not earlier than such date.
                        ``(C) Exclusion of office space, etc.--The term
                    `qualified production property' 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.
                        ``(D) Qualified production activity.--The term
                    `qualified production activity' 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.
                        ``(E) Production.--The term `production' shall not
                    include activities other than agricultural production
                    and chemical production.
                        ``(F) Qualified product.--The term `qualified
                    product' means any tangible personal property.
                        ``(G) Syndication.--For purposes of subparagraph
                    (A)(iv), rules similar to the rules of subsection
                    (k)(2)(E)(iii) shall apply.
                ``(3) Deduction allowed in computing minimum tax.--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.
                ``(4) Coordination with certain other provisions.--
                        ``(A) Other special depreciation allowances.--The
                    term `qualified production property' 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.
                        ``(B) Alternative depreciation property.--The term
                    `qualified production property' 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.
                ``(5) Recapture.--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)--
                        ``(A) section 1245 shall be applied--
                                ``(i) 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
                                ``(ii) 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
                        ``(B) 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).
                ``(6) Regulations.--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--
                        ``(A) regarding what constitutes a substantial
                    transformation of property, and
                        ``(B) 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.''.
        (b) Treatment of Qualified Production Property as Section 1245
    Property.--Section 1245(a)(3) is amended by striking ``or'' at the end
    of subparagraph (E), by striking the period at the end of subparagraph
    (F) and inserting ``, or'', and by adding at the end the following new
    subparagraph:
                        ``(G) any qualified production property (as defined
                    in section 168(n)(2)).''.
        (c) Effective Date.--The amendments made by this section shall
    apply to property placed in service after the date of the enactment of
    this Act.

    SEC. 111102. RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES.

        (a) Modification of Low-income Community Definition.--Section
    1400Z-1(c)(1) is amended--
                (1) by striking ``communities.--The term'' and inserting
            the following: ``communities.--
                        ``(A) In general.--The term'', and
                (2) by adding at the end the following:
                        ``(B) Modifications.--For purposes of subparagraph
                    (A), section 45D(e)(1) shall be applied in subparagraph
                    (B) thereof, by substituting `70 percent' for `80
                    percent' each place it appears.
                        ``(C) Certain census tracts disallowed.--The term
                    `low-income community' shall not include any population
                    census tract if--
                                ``(i) 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
                                ``(ii) 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.''.
        (b) New Round of Qualified Opportunity Zone Designations.--
                (1) In general.--Section 1400Z-1 is amended by adding at
            the end the following new subsection:
        ``(g) New Round of Qualified Opportunity Zone Designations.--
                ``(1) In general.--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.
                ``(2) Number of designations; proportion of rural areas
            designated.--
                        ``(A) In general.--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:
                                ``(i) The applicable percentage of the
                            total number of qualified opportunity zone
                            designations which may be made within the State
                            under this subsection.
                                ``(ii) All low-income communities within
                            the State which are comprised entirely of a
                            rural area.
                        ``(B) Applicable percentage.--For purposes of this
                    paragraph, the applicable percentage shall be, for any
                    calendar year during which a designation is made, the
                    greater of--
                                ``(i) 33 percent, or
                                ``(ii) the percentage of the United States
                            population living within a rural area for the
                            preceding calendar year.
                ``(3) Rural area.--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 `rural area' has the
            meaning given such term by section 343(a)(13)(A) of the
            Consolidated Farm and Rural Development Act.
                ``(4) Period for which designation is in effect.--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.
                ``(5) Contiguous tracts not eligible.--Subsection (e) shall
            not apply to designations made under this subsection.''.
                (2) Election with respect to new round of zones.--Section
            1400Z-2(a)(2)(B) is amended by striking ``December 31, 2026''
            and inserting ``December 31, 2033''.
                (3) Year of inclusion.--Section 1400Z-2(b)(1)(B) is amended
            to read as follows:
                        ``(B)(i) December 31, 2026, in the case of an
                    amount invested before January 1, 2027, and
                        ``(ii) December 31, 2033, in the case of an amount
                    invested after December 31, 2026, and before January 1,
                    2034.''.
                (4) Winding down initial zone designations.--Section 1400Z-
            1(f) is amended--
                        (A) by striking ``and ending'' and all that follows
                    and inserting the following: ``and ending on December
                    31, 2026.'', and
                        (B) by striking ``A designation'' and inserting
                    ``Except as provided in subsection (g)(4), a
                    designation''.
        (c) Modification of Opportunity Zone Investment Incentives.--
                (1) Consolidated basis increases; rural zone basis
            increase.--Section 1400Z-2(b)(2)(B) is amended by adding at the
            end the following new clauses:
                                ``(v) Consolidated basis increase for
                            investments after 2026.--In the case of
                            investments made after December 31, 2026--
                                        ``(I) clauses (iii) and (iv) shall
                                    not apply, and
                                        ``(II) 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).
                                ``(vi) Special rule for rural opportunity
                            funds.--Clause (v) shall be applied by
                            substituting `30 percent' for `10 percent' in
                            the case of an investment in a qualified rural
                            opportunity fund.
                                ``(vii) Qualified rural opportunity fund.--
                            For purposes of clause (vi), a `qualified rural
                            opportunity fund' means a qualified opportunity
                            fund that holds at least 90 percent of its
                            assets in qualified opportunity zone property
                            which--
                                        ``(I) 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
                                        ``(II) 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.
                            For purposes of the preceding sentence,
                            property held in the fund shall be measured
                            under rules similar to the rules of subsection
                            (d)(1).''.
                (2) Limited treatment of ordinary income.--Section 1400Z-
            2(a) is amended by adding at the end the following new
            paragraph:
                ``(3) Special rule for ordinary income.--In the case of any
            ordinary income of the taxpayer for the taxable year--
                        ``(A) 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
                        ``(B) subsection (b)(2)(B) shall not apply to the
                    investment with respect to such election.''.
                (3) Special rule for improvement of existing structures in
            rural areas, including for data centers.--Section 1400Z-
            2(d)(2)(D)(ii) is amended by inserting ``(50 percent of such
            adjusted basis in the case of property in a qualified
            opportunity zone comprised entirely of a rural area)'' after
            ``the adjusted basis of such property''.
        (d) Information Reporting on Qualified Opportunity Funds and
    Qualified Rural Opportunity Funds.--
                (1) Filing requirements for funds and investors.--Subpart A
            of part III of subchapter A of chapter 61 is amended by
            inserting after section 6039J the following new sections:

    ``SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND
                  QUALIFIED RURAL OPPORTUNITY FUNDS.

        ``(a) In General.--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).
        ``(b) Information From Qualified Opportunity Funds.--The
    information described in this subsection is--
                ``(1) the name, address, and taxpayer identification number
            of the qualified opportunity fund,
                ``(2) whether the qualified opportunity fund is organized
            as a corporation or a partnership,
                ``(3) the value of the total assets held by the qualified
            opportunity fund as of each date described in section 1400Z-
            2(d)(1),
                ``(4) the value of all qualified opportunity zone property
            held by the qualified opportunity fund on each such date,
                ``(5) with respect to each investment held by the qualified
            opportunity fund in qualified opportunity zone stock or a
            qualified opportunity zone partnership interest--
                        ``(A) 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,
                        ``(B) each North American Industry Classification
                    System (NAICS) code that applies to the trades or
                    businesses conducted by such corporation or
                    partnership,
                        ``(C) the population census tracts in which the
                    qualified opportunity zone business property of such
                    corporation or partnership is located,
                        ``(D) the amount of the investment in such stock or
                    partnership interest as of each date described in
                    section 1400Z-2(d)(1),
                        ``(E) the value of tangible property held by such
                    corporation or partnership on each such date which is
                    owned by such corporation or partnership,
                        ``(F) the value of tangible property held by such
                    corporation or partnership on each such date which is
                    leased by such corporation or partnership,
                        ``(G) the approximate number of residential units
                    (if any) for any real property held by such corporation
                    or partnership, and
                        ``(H) 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,
                ``(6) with respect to the items of qualified opportunity
            zone business property held by the qualified opportunity fund--
                        ``(A) the North American Industry Classification
                    System (NAICS) code that applies to the trades or
                    businesses in which such property is held,
                        ``(B) the population census tract in which the
                    property is located,
                        ``(C) whether the property is owned or leased,
                        ``(D) 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
                        ``(E) in the case of real property, number of
                    residential units (if any),
                ``(7) 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,
                ``(8) with respect to each person who disposed of an
            investment in the qualified opportunity fund during the year--
                        ``(A) the name and taxpayer identification number
                    of such person,
                        ``(B) the date or dates on which the investment
                    disposed was acquired, and
                        ``(C) the date or dates on which any such
                    investment was disposed and the amount of the
                    investment disposed, and
                ``(9) such other information as the Secretary may require.
        ``(c) Statement Required to Be Furnished to Investors.--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--
                ``(1) the name, address and phone number of the information
            contact of the person required to make such return, and
                ``(2) 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.
        ``(d) Definitions.--For purposes of this section--
                ``(1) In general.--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.
                ``(2) Full-time equivalent employees.--The term `full-time
            equivalent employees' means, with respect to any month, the sum
            of--
                        ``(A) the number of full-time employees (as defined
                    in section 4980H(c)(4)) for the month, plus
                        ``(B) 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.
        ``(e) Application to Qualified Rural Opportunity Funds.--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--
                ``(1) by substituting `qualified rural opportunity' for
            `qualified opportunity' each place it appears,
                ``(2) by substituting `section 1400Z-2(b)(2)(B)(vii)' for
            `section 1400Z-2(d)(1)' each place it appears, and
                ``(3) 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).

    ``SEC. 6039L. INFORMATION REQUIRED FROM QUALIFIED OPPORTUNITY ZONE
                  BUSINESSES AND QUALIFIED RURAL OPPORTUNITY ZONE
                  BUSINESSES.

        ``(a) In General.--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).
        ``(b) Applicable Qualified Opportunity Zone Business.--For purposes
    of subsection (a), the term `applicable qualified opportunity zone
    business' means any qualified opportunity zone business--
                ``(1) which is a trade or business of a qualified
            opportunity fund,
                ``(2) in which a qualified opportunity fund holds qualified
            opportunity zone stock, or
                ``(3) in which a qualified opportunity fund holds a
            qualified opportunity zone partnership interest.
        ``(c) Other Terms.--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.
        ``(d) Application to Qualified Rural Opportunity Businesses.--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--
                ``(1) by substituting `qualified rural opportunity' for
            `qualified opportunity' each place it appears, and
                ``(2) 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).''.
                (2) Penalties.--
                        (A) In general.--Part II of subchapter B of chapter
                    68 is amended by inserting after section 6725 the
                    following new section:

    ``SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS
                  RELATING TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED
                  RURAL OPPORTUNITY FUNDS.

        ``(a) In General.--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.
        ``(b) Limitation.--
                ``(1) In general.--The maximum penalty under this section
            on failures with respect to any 1 return shall not exceed
            $10,000.
                ``(2) Large qualified opportunity funds.--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 `$50,000' for `$10,000'.
        ``(c) Penalty in Cases of Intentional Disregard.--If a failure
    described in subsection (a) is due to intentional disregard, then--
                ``(1) subsection (a) shall be applied by substituting
            `$2,500' for `$500',
                ``(2) subsection (b)(1) shall be applied by substituting
            `$50,000' for `$10,000', and
                ``(3) subsection (b)(2) shall be applied by substituting
            `$250,000' for `$50,000'.
        ``(d) Inflation Adjustment.--
                ``(1) In general.--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 `calendar year 2024' for `calendar year 2016' in
            subparagraph (A)(ii) thereof.
                ``(2) Rounding.--
                        ``(A) In general.--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.
                        ``(B) Asset threshold.--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.
                        ``(C) Other dollar amounts.--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.''.
                        (B) Information required to be sent to other
                    taxpayers.--Section 6724(d)(2), as amended by the
                    preceding provisions of this Act, is amended--
                                (i) by striking ``or'' at the end of
                            subparagraph (LL),
                                (ii) by striking the period at the end of
                            the subparagraph (MM) and inserting a comma,
                            and
                                (iii) by inserting after subparagraph (MM)
                            the following new subparagraphs:
                        ``(NN) section 6039K(c) (relating to disposition of
                    qualified opportunity fund investments), or
                        ``(OO) section 6039L (relating to information
                    required from certain qualified opportunity zone
                    businesses and qualified rural opportunity zone
                    businesses).''.
                (3) Electronic filing.--Section 6011(e) is amended by
            adding at the end the following new paragraph:
                ``(8) Qualified opportunity funds and qualified rural
            opportunity funds.--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.''.
                (4) Clerical amendments.--
                        (A) The table of sections for subpart A of part III
                    of subchapter A of chapter 61 is amended by inserting
                    after the item relating to section 6039J the following
                    new items:

    ``Sec. 6039K. Returns with respect to qualified opportunity funds and
                                qualified rural opportunity funds.
    ``Sec. 6039L. Information required from qualified opportunity zone
                                businesses and qualified rural opportunity
                                zone businesses.''.''.
                        (B) The table of sections for part II of subchapter
                    B of chapter 68 is amended by inserting after the item
                    relating to section 6725 the following new item:

    ``Sec. 6726. Failure to comply with information reporting requirements
                                relating to qualified opportunity funds and
                                qualified rural opportunity funds.''.
                (5) Effective date.--The amendments made by this subsection
            shall apply to taxable years beginning after the date of the
            enactment of this Act.
        (e) Secretary Reporting of Data on Opportunity Zone and Rural
    Opportunity Zone Tax Incentives.--
                (1) In general.--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 ``Secretary'') shall make publicly
            available a report on qualified opportunity funds.
                (2) Information included.--The report required under
            paragraph (1) shall include, to the extent available, the
            following information:
                        (A) The number of qualified opportunity funds.
                        (B) The aggregate dollar amount of assets held in
                    qualified opportunity funds.
                        (C) 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.
                        (D) The percentage of population census tracts
                    designated as qualified opportunity zones that have
                    received qualified opportunity fund investments.
                        (E) 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.
                        (F) The percentage of the total amount of
                    investments made by qualified opportunity funds in--
                                (i) qualified opportunity zone property
                            which is real property; and
                                (ii) other qualified opportunity zone
                            property.
                        (G) For each population census tract, the aggregate
                    approximate number of residential units resulting from
                    investments made by qualified opportunity funds in real
                    property.
                        (H) The aggregate dollar amount of investments made
                    by qualified opportunity funds in each population
                    census tract.
                (3) Additional information.--
                        (A) In general.--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.
                        (B) Semi-decennial information.--
                                (i) In general.--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:
                                        (I) 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
                                    Public Law 115-97 and the most recent
                                    5-year period for which data is
                                    available.
                                        (II) 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.
                                (ii) Control groups.--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.
                                (iii) Factors listed.--The factors listed
                            in this clause are the following:
                                        (I) The unemployment rate.
                                        (II) 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.
                                        (III) Individual, family, and
                                    household poverty rates.
                                        (IV) Median family income of
                                    residents of the population census
                                    tract.
                                        (V) Demographic information on
                                    residents of the population census
                                    tract, including age, income,
                                    education, race, and employment.
                                        (VI) The average percentage of
                                    income of residents of the population
                                    census tract spent on rent annually.
                                        (VII) The number of residences in
                                    the population census tract.
                                        (VIII) The rate of home ownership
                                    in the population census tract.
                                        (IX) The average value of
                                    residential property in the population
                                    census tract.
                                        (X) The number of affordable
                                    housing units in the population census
                                    tract.
                                        (XI) The number and percentage of
                                    residents in the population census
                                    tract that were not employed for the
                                    preceding year.
                                        (XII) The number of new business
                                    starts in the population census tract.
                                        (XIII) The distribution of
                                    employees in the population census
                                    tract by North American Industry
                                    Classification System (NAICS) code.
                (4) Protection of identifiable return information.--In
            making reports required under this subsection, the Secretary--
                        (A) 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
                        (B) if necessary to protect taxpayer return
                    information, may combine information required with
                    respect to individual population census tracts into
                    larger geographic areas.
                (5) Definitions.--Any term used in this subsection which is
            also used in subchapter Z of chapter 1 of the Internal Revenue
            Code of 1986 shall have the meaning given such term under such
            subchapter.
                (6) Reports on qualified rural opportunity funds.--The
            Secretary shall make publicly available, with respect to
            qualified rural opportunity funds, separate reports as required
            under this subsection, applied--
                        (A) by substituting ``qualified rural opportunity''
                    for ``qualified opportunity'' each place it appears,
                        (B) by substituting a reference to this Act for
                    ``Public Law 115-97'', and
                        (C) 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 section 1400Z-2(b)(2)(B)(vii) of
                    the Internal Revenue Code of 1986.

    SEC. 111103. INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF CERTAIN
                  DEPRECIABLE BUSINESS ASSETS.

        (a) In General.--Section 179(b) is amended--
                (1) in paragraph (1), by striking ``$1,000,000'' and
            inserting ``$2,500,000'', and
                (2) in paragraph (2), by striking ``$2,500,000'' and
            inserting ``$4,000,000''.
        (b) Conforming Amendments.--Section 179(b)(6)(A) is amended--
                (1) by inserting ``(2025 in the case of the dollar amounts
            in paragraphs (1) and (2))'' after ``In the case of any taxable
            year beginning after 2018'', and
                (2) in clause (ii), by striking ``determined by
            substituting `calendar year 2017' for `calendar year 2016' in
            subparagraph (A)(ii) thereof.'' and inserting ``determined by
            substituting in subparagraph (A)(ii) thereof--
                                        ``(I) in the case of amounts in
                                    paragraphs (1) and (2), `calendar year
                                    2024' for `calendar year 2016', and
                                        ``(II) in the case of the amount in
                                    paragraph (5)(A), `calendar year 2017'
                                    for `calendar year 2016'.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to property placed in service in taxable years beginning after
    December 31, 2024.

    SEC. 111104. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY
                  NETWORK TRANSACTIONS.

        (a) Reinstatement of Exception for De Minimis Payments as in Effect
    Prior to Enactment of American Rescue Plan Act of 2021.--
                (1) In general.--Section 6050W(e) is amended to read as
            follows:
        ``(e) Exception for De Minimis Payments by Third Party Settlement
    Organizations.--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--
                ``(1) the amount which would otherwise be reported under
            subsection (a)(2) with respect to such transactions exceeds
            $20,000, and
                ``(2) the aggregate number of such transactions exceeds
            200.''.
                (2) Effective date.--The amendment made by this subsection
            shall take effect as if included in section 9674 of the
            American Rescue Plan Act.
        (b) Application of De Minimis Rule for Third Party Network
    Transactions to Backup Withholding.--
                (1) In general.--Section 3406(b) is amended by adding at
            the end the following new paragraph:
                ``(8) Other reportable payments include payments in
            settlement of third party network transactions only where
            aggregate transactions exceed reporting threshold for the
            calendar year.--
                        ``(A) In general.--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--
                                ``(i) 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
                                ``(ii) 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.
                        ``(B) Exception if third party network transactions
                    made in prior year were reportable.--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.''.
                (2) Effective date.--The amendment made by this subsection
            shall apply to calendar years beginning after December 31,
            2024.

    SEC. 111105. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING
                  WITH RESPECT TO CERTAIN PAYEES.

        (a) In General.--Section 6041(a) is amended by striking ``$600''
    and inserting ``$2,000''.
        (b) Inflation Adjustment.--Section 6041 is amended by adding at the
    end the following new subsection:
        ``(h) Inflation Adjustment.--In the case of any calendar year after
    2026, the dollar amount in subsection (a) shall be increased by an
    amount equal to--
                ``(1) such dollar amount, multiplied by
                ``(2) the cost-of-living adjustment determined under
            section 1(f)(3) for such calendar year, determined by
            substituting `calendar year 2025' for `calendar year 2016' in
            subparagraph (A)(ii) thereof.
    If any increase under the preceding sentence is not a multiple of $100,
    such increase shall be rounded to the nearest multiple of $100.''.
        (c) Application to Reporting on Remuneration for Services.--Section
    6041A(a)(2) is amended by striking ``is $600 or more'' and inserting
    ``equals or exceeds the dollar amount in effect for such calendar year
    under section 6041(a)''.
        (d) Application to Backup Withholding.--Section 3406(b)(6) is
    amended--
                (1) by striking ``$600'' in subparagraph (A) and inserting
            ``the dollar amount in effect for such calendar year under
            section 6041(a)'', and
                (2) by striking ``only where aggregate for calendar year is
            $600 or more'' in the heading and inserting ``only if in excess
            of threshold''.
        (e) Conforming Amendments.--
                (1) The heading of section 6041(a) is amended by striking
            ``of $600 or More'' and inserting ``Exceeding Threshold''.
                (2) Section 6041(a) is amended by striking ``taxable year''
            and inserting ``calendar year''.
        (f) Effective Date.--The amendments made by this section shall
    apply with respect to payments made after December 31, 2025.

    SEC. 111106. EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL OR
                  AGRICULTURAL REAL PROPERTY.

        (a) In General.--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:

    ``SEC. 139K. INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL
                  PROPERTY.

        ``(a) In General.--Gross income shall not include 25 percent of the
    interest received by a qualified lender on any qualified real estate
    loan.
        ``(b) Qualified Lender.--For purposes of this section, the term
    `qualified lender' means--
                ``(1) any bank or savings association the deposits of which
            are insured under the Federal Deposit Insurance Act (12 U.S.C.
            1811 et seq.),
                ``(2) any State- or federally-regulated insurance company,
                ``(3) 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 (12
            U.S.C. 3106) if--
                        ``(A) such entity is organized, incorporated, or
                    established under the laws of the United States or any
                    State of the United States, and
                        ``(B) the principal place of business of such
                    entity is in the United States (including any territory
                    of the United States),
                ``(4) 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
                ``(5) 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 (12 U.S.C. 2279aa-1(a)).
        ``(c) Qualified Real Estate Loan.--For purposes of this section--
                ``(1) In general.--The term `qualified real estate loan'
            means any loan--
                        ``(A) secured by--
                                ``(i) rural or agricultural real estate, or
                                ``(ii) a leasehold mortgage (with a status
                            as a lien) on rural or agricultural real
                            estate,
                        ``(B) made to a person other than a specified
                    foreign entity (as defined in section 7701(a)(51)), and
                        ``(C) made after the date of the enactment of this
                    section and before January 1, 2029.
            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.
                ``(2) Refinancings.--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).
                ``(3) Rural or agricultural real estate.--The term `rural
            or agricultural real estate' means--
                        ``(A) any real property which is substantially used
                    for the production of one or more agricultural
                    products,
                        ``(B) any real property which is substantially used
                    in the trade or business of fishing or seafood
                    processing, and
                        ``(C) any aquaculture facility.
            Such term shall not include any property which is not located
            in a State or a possession of the United States.
                ``(4) Aquaculture facility.--The term `aquaculture
            facility' means any land, structure, or other appurtenance that
            is used for aquaculture (including any hatchery, rearing pond,
            raceway, pen, or incubator).
        ``(d) Coordination With Section 265.--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.''.
        (b) Clerical Amendment.--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:

    ``Sec. 139K. Interest on loans secured by rural or agricultural real
                                property.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years ending after the date of the enactment of this
    Act.

    SEC. 111107. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING
                  PRODUCTIONS.

        (a) Election To Treat Costs as Expenses.--Section 181(a)(1) is
    amended by striking ``qualified film or television production, and any
    qualified live theatrical production,'' and inserting ``qualified film
    or television production, any qualified live theatrical production, and
    any qualified sound recording production''.
        (b) Dollar Limitation.--Section 181(a)(2) is amended by adding at
    the end the following new subparagraph:
                        ``(C) Qualified sound recording production.--
                    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.''.
        (c) No Other Deduction or Amortization Deduction Allowable.--
    Section 181(b) is amended by striking ``qualified film or television
    production or any qualified live theatrical production'' and inserting
    ``qualified film or television production, any qualified live
    theatrical production, or any qualified sound recording production''.
        (d) Election.--Section 181(c)(1) is amended by striking ``qualified
    film or television production or any qualified live theatrical
    production'' and inserting ``qualified film or television production,
    any qualified live theatrical production, or any qualified sound
    recording production''.
        (e) Qualified Sound Recording Production Defined.--Section 181 is
    amended by redesignating subsections (f) and (g) as subsections (g) and
    (h), respectively, and by inserting after subsection (e) the following
    new subsection:
        ``(f) Qualified Sound Recording Production.--For purposes of this
    section, the term `qualified sound recording production' means a sound
    recording (as defined in section 101 of title 17, United States Code)
    produced and recorded in the United States.''.
        (f) Application of Termination.--Section 181(g) is amended by
    striking ``qualified film and television productions or qualified live
    theatrical productions'' and inserting ``qualified film and television
    productions, qualified live theatrical productions, and qualified sound
    recording productions''.
        (g) Bonus Depreciation.--
                (1) Qualified sound recording production as qualified
            property.--Section 168(k)(2)(A)(i) is amended--
                        (A) by striking ``or'' at the end of subclause
                    (IV), by inserting ``or'' at the end of subclause (V),
                    and by inserting after subclause (V) the following:
                                        ``(VI) 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'', and
                        (B) in subclauses (IV) and (V) (as so amended) by
                    striking ``without regard to subsections (a)(2) and
                    (g)'' both places it appears and inserting ``without
                    regard to subsections (a)(2) and (h)''.
                (2) Production placed in service.--Section 168(k)(2)(H) is
            amended by striking ``and'' at the end of clause (i), by
            striking the period at the end of clause (ii) and inserting ``,
            and'', and by adding after clause (ii) the following:
                                ``(iii) a qualified sound recording
                            production shall be considered to be placed in
                            service at the time of initial release or
                            broadcast.''.
        (h) Conforming Amendments.--
                (1) The heading for section 181 is amended to read as
            follows: ``treatment of certain qualified productions.''.
                (2) The table of sections for part VI of subchapter B of
            chapter 1 is amended by striking the item relating to section
            181 and inserting the following new item:

    ``Sec. 181. Treatment of certain qualified productions.''.
        (i) Effective Date.--The amendments made by this section shall
    apply to productions commencing in taxable years ending after the date
    of the enactment of this Act.

    SEC. 111108. MODIFICATIONS TO LOW-INCOME HOUSING CREDIT.

        (a) State Housing Credit Ceiling Increase for Low-income Housing
    Credit.--
                (1) In general.--Section 42(h)(3)(I) is amended--
                        (A) by striking ``and 2021,'' and inserting ``2021,
                    2026, 2027, 2028, and 2029,'', and
                        (B) by striking ``2018, 2019, 2020, and 2021'' in
                    the heading and inserting ``certain calendar years''.
                (2) Effective date.--The amendments made by this subsection
            shall apply to calendar years after 2025.
        (b) Tax-exempt Bond Financing Requirement.--
                (1) In general.--Section 42(h)(4) is amended by striking
            subparagraph (B) and inserting the following:
                        ``(B) Special rule where minimum percent of
                    buildings is financed with tax-exempt bonds subject to
                    volume cap.--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--
                                ``(i) 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
                                ``(ii)(I) 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
                                ``(II) 1 or more of such qualified
                            obligations--
                                        ``(aa) are part of an issue the
                                    issue date of which is after December
                                    31, 2025, and
                                        ``(bb) 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.
                        ``(C) Qualified obligation.--For purposes of
                    subparagraph (B)(ii), the term `qualified obligation'
                    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.''.
                (2) Effective date.--
                        (A) In general.--The amendment made by this
                    subsection shall apply to buildings placed in service
                    in taxable years beginning after December 31, 2025.
                        (B) Rehabilitation expenditures treated as separate
                    new building.--In the case of any building with respect
                    to which any expenditures are treated as a separate new
                    building under section 42(e) 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.
        (c) Temporary Inclusion of Indian Areas and Rural Areas as
    Difficult Development Areas for Purposes of Certain Buildings.--
                (1) In general.--Section 42(d)(5)(B)(iii)(I) is amended by
            inserting before the period the following: ``, and, in the case
            of buildings placed in service after December 31, 2025 and
            before January 1, 2030, any Indian area or rural area''.
                (2) Indian area; rural area.--Section 42(d)(5)(B)(iii) is
            amended by redesignating subclause (II) as subclause (IV) and
            by inserting after subclause (I) the following new subclauses:
                                        ``(II) Indian area.--For purposes
                                    of subclause (I), the term `Indian
                                    area' means any Indian area (as defined
                                    in section 4(11) of the Native American
                                    Housing Assistance and Self
                                    Determination Act of 1996 (25 U.S.C.
                                    4103(11))) and any housing area (as
                                    defined in section 801(5) of such Act
                                    (25 U.S.C. 4221(5))).
                                        ``(III) Rural area.--For purposes
                                    of subclause (I), the term `rural area'
                                    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).''.
                (3) Eligible buildings.--Section 42(d)(5)(B)(iii), as
            amended by paragraph (2), is further amended by adding at the
            end the following new subclause:
                                        ``(V) Special rule for buildings in
                                    indian areas.--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 (25 U.S.C.
                                    4101 et seq.) 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 (25 U.S.C.
                                    4103(22))), or wholly owned or
                                    controlled by such an Indian tribe or
                                    tribally designated housing entity.''.
                (4) Effective date.--The amendments made by this subsection
            shall apply to buildings placed in service after December 31,
            2025.

    SEC. 111109. INCREASED GROSS RECEIPTS THRESHOLD FOR SMALL MANUFACTURING
                  BUSINESSES.

        (a) In General.--Section 448(c) is amended by redesignating
    paragraph (4) as paragraph (5) and by inserting after paragraph (3) the
    following new paragraph:
                ``(4) Gross receipts test for manufacturing taxpayers.--In
            the case of a manufacturing taxpayer, paragraph (1) shall be
            applied by substituting `$80,000,000' for `$25,000,000'.''.
        (b) Inflation Adjustment.--Section 448(c)(5) (as so redesignated)
    is amended by striking ``the dollar amount in paragraph (1) shall be
    increased'' and inserting ``the dollar amounts in paragraphs (1) and
    (4) shall each be increased''.
        (c) Manufacturing Taxpayer Defined.--Section 448(d) is amended by
    redesignating paragraph (8) as paragraph (9) and by inserting after
    paragraph (7) the following new paragraph:
                ``(8) Manufacturing taxpayer.--
                        ``(A) In general.--The term `manufacturing
                    taxpayer' 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.
                        ``(B) Qualified product.--For purposes of
                    subparagraph (A), the term `qualified product' means a
                    product that is both--
                                ``(i) 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
                                ``(ii) 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.
                        ``(C) Aggregation rule.--Solely for purposes of
                    determining whether a taxpayer is a manufacturing
                    taxpayer under subparagraph (A)--
                                ``(i) gross receipts shall be determined
                            under the rules of paragraphs (2) and (3) of
                            subsection (c), and
                                ``(ii) for purposes of subsection (c)(2),
                            in applying section 52(b), the term `trade or
                            business' 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 `To the extent provided in
                            regulations' in such paragraph (6)).''.
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 111110. GLOBAL INTANGIBLE LOW-TAXED INCOME DETERMINED WITHOUT
                  REGARD TO CERTAIN INCOME DERIVED FROM SERVICES PERFORMED
                  IN THE VIRGIN ISLANDS.

        (a) In General.--Section 951A(c)(2)(A)(i) is amended by striking
    ``and'' at the end of subclause (IV), by striking ``, over'' at the end
    of subclause (V) and inserting ``, and'', and by adding at the end the
    following new subclause:
                                        ``(VI) in the case of any specified
                                    United States shareholder, any
                                    qualified Virgin Islands services
                                    income, over''.
        (b) Definitions and Special Rules.--Section 951A(c)(2) is amended
    by adding at the end the following new subparagraph:
                        ``(C) Provisions related to qualified virgin
                    islands services income.--For purposes of subparagraph
                    (A)(i)(VI)--
                                ``(i) Qualified virgin islands services
                            income.--The term `qualified Virgin Islands
                            services income' means any gross income which
                            satisfies all of the following requirements:
                                        ``(I) 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.
                                        ``(II) Such gross income is
                                    attributable to services performed from
                                    within the Virgin Islands by
                                    individuals for the benefit of such
                                    corporation.
                                        ``(III) Such gross income is
                                    effectively connected with the conduct
                                    of a trade or business within the
                                    Virgin Islands.
                                ``(ii) Specified united states
                            shareholder.--The term `specified United States
                            shareholder' means any United States
                            shareholder which is--
                                        ``(I) an individual, trust, or
                                    estate, or
                                        ``(II) 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.
                                ``(iii) Regulations.--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.''.
        (c) Effective Date.--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.

    SEC. 111111. EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION
                  CREDIT.

        (a) Prohibition on Foreign Feedstocks.--
                (1) In general.--Section 45Z(f)(1)(A) is amended--
                        (A) in clause (i)(II)(bb), by striking ``and'' at
                    the end,
                        (B) in clause (ii), by striking the period at the
                    end and inserting ``, and'', and
                        (C) by adding at the end the following new clause:
                                ``(iii) such fuel is exclusively derived
                            from a feedstock which was produced or grown in
                            the United States, Mexico, or Canada.''.
                (2) Effective date.--The amendments made by this subsection
            shall apply to transportation fuel sold after December 31,
            2025.
        (b) Determination of Emissions Rate.--
                (1) In general.--Section 45Z(b)(1)(B) is amended by adding
            at the end the following new clauses:
                                ``(iv) Exclusion of indirect land use
                            changes.--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.
                                ``(v) Animal manures.--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.''.
                (2) Conforming amendment.--Section 45Z(b)(1)(B)(i) is
            amended by striking ``clauses (ii) and (iii)'' and inserting
            ``clauses (ii), (iii), (iv), and (v)''.
                (3) Effective date.--The amendments made by this subsection
            shall apply to emissions rates published for taxable years
            beginning after December 31, 2025.
        (c) Extension of Clean Fuel Production Credit.--Section 45Z(g) is
    amended by striking ``December 31, 2027'' and inserting ``December 31,
    2031''.
        (d) Restrictions Relating to Prohibited Foreign Entities.--
                (1) In general.--Section 45Z(f) is amended by adding at the
            end the following new paragraph:
                ``(8) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--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)).
                        ``(B) Other prohibited foreign entities.--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)).''.
                (2) Effective date.--The amendment made by this subsection
            shall apply to taxable years beginning after the date of
            enactment of this Act.

    SEC. 111112. RESTORATION OF TAXABLE REIT SUBSIDIARY ASSET TEST.

        (a) In General.--Section 856(c)(4)(B)(ii) is amended by striking
    ``20 percent'' and inserting ``25 percent''.
        (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2025.

        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.

        (a) In General.--Section 1861(kkk) of the Social Security Act (42
    U.S.C. 1395x(kkk)) is amended--
                (1) in paragraph (2)--
                        (A) in subparagraph (A), by striking ``the detailed
                    transition plan'' and all that follows through ``such
                    paragraph'' and inserting ``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,'';
                        (B) in subparagraph (D)(vi), by striking the period
                    at the end and inserting ``; and''; and
                        (C) by adding at the end the following new
                    subparagraph:
                ``(E) in the case of a facility described in paragraph
            (3)(B)--
                        ``(i) submits an application under section 1866(j)
                    to enroll under this title as a rural emergency
                    hospital--
                                ``(I) 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
                                ``(II) 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
                        ``(ii) 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.'';
                (2) in paragraph (3)--
                        (A) by redesignating subparagraphs (A) and (B) as
                    clauses (i) and (ii), respectively, and adjusting the
                    margins accordingly;
                        (B) by striking ``A facility'' and inserting:
                ``(A) In general.--A facility''; and
                        (C) by adding at the end the following new
                    subparagraph:
                ``(B) Additional facilities.--Beginning January 1, 2027, a
            facility described in this paragraph shall also include a
            facility that--
                        ``(i) at any time during the period beginning
                    January 1, 2014, and ending December 26, 2020--
                                ``(I) was a critical access hospital; or
                                ``(II) 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
                        ``(ii) as of December 27, 2020, was not enrolled in
                    the program under this title under section 1866(j).'';
                    and
                (3) in paragraph (4)--
                        (A) in subparagraph (A)(i)--
                                (i) in subclause (IV), by striking the
                            period at the end and inserting ``; and'';
                                (ii) by redesignating subclauses (I)
                            through (IV) as items (aa) through (dd),
                            respectively, and adjusting the margins
                            accordingly;
                                (iii) by striking ``including a detailed''
                            and inserting ``including--
                                ``(I) except in the case of a facility
                            described in paragraph (3)(B), a detailed'';
                            and
                                (iv) by adding at the end the following new
                            subclause:
                                ``(II) 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--
                                        ``(aa) 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);
                                        ``(bb) a description of the reasons
                                    that the facility, as of December 27,
                                    2020, was no longer so enrolled;
                                        ``(cc) the population of such
                                    county (or equivalent unit);
                                        ``(dd) the percentage of such
                                    population who are individuals entitled
                                    to benefits under part A or enrolled
                                    under part B; and
                                        ``(ee) 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.''.
        (b) Amendments to Payment Rules.--Section 1834(x) of the Social
    Security Act (42 U.S.C. 1395m(x)) is amended--
                (1) in paragraph (1), by inserting ``, 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'' before the period at
            the end; and
                (2) in paragraph (2)(A), by inserting ``(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)'' after ``rural emergency hospital''.

                       Subtitle C--Make America Win Again

                      PART 1--WORKING FAMILIES OVER ELITES

    SEC. 112001. TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDIT.

        (a) In General.--Section 25E(g) is amended by striking ``December
    31, 2032'' and inserting ``December 31, 2025''.
        (b) Effective Date.--The amendment made by this section shall apply
    to vehicles acquired after December 31, 2025.

    SEC. 112002. TERMINATION OF CLEAN VEHICLE CREDIT.

        (a) In General.--Section 30D is amended--
                (1) by redesignating subsection (h) as subsection (i), and
                (2) in subsection (i), as so redesignated, by striking
            ``December 31, 2032'' and inserting ``December 31, 2026''.
        (b) Special Rule for Taxable Year 2026.--Section 30D is amended by
    inserting after subsection (g) the following new subsection:
        ``(h) Special Rule for Taxable Year 2026.--
                ``(1) In general.--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.
                ``(2) Covered vehicles.--For purposes of this subsection,
            the term `covered vehicles' means--
                        ``(A) 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
                        ``(B) new clean vehicles.
                ``(3) Controlled groups.--Rules similar to the rules of
            section 30B(f)(4) shall apply for purposes of this
            subsection.''.
        (c) Conforming Amendments.--Section 30D(e) is amended--
                (1) in paragraph (1)(B)--
                        (A) in clause (iii), by inserting ``and'' after the
                    comma at the end,
                        (B) in clause (iv), by striking ``, and'' and
                    inserting a period, and
                        (C) by striking clause (v), and
                (2) in paragraph (2)(B)--
                        (A) in clause (ii), by inserting ``and'' after the
                    comma at the end,
                        (B) in clause (iii), by striking the comma at the
                    end and inserting a period, and
                        (C) by striking clauses (iv) through (vi).
        (d) Effective Date.--The amendments made by this section shall
    apply to vehicles placed in service after December 31, 2025.

    SEC. 112003. TERMINATION OF QUALIFIED COMMERCIAL CLEAN VEHICLES CREDIT.

        (a) In General.--Section 45W(g) is amended to read as follows:
        ``(g) Termination.--
                ``(1) In general.--No credit shall be determined under this
            section with respect to any vehicle acquired after December 31,
            2025.
                ``(2) Exception for binding contracts.--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.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to vehicles acquired after December 31, 2025.

    SEC. 112004. TERMINATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY
                  CREDIT.

        (a) In General.--Section 30C(i) is amended by striking ``December
    31, 2032'' and inserting ``December 31, 2025''.
        (b) Effective Date.--The amendment made by this section shall apply
    to property placed in service after December 31, 2025.

    SEC. 112005. TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.

        (a) In General.--Section 25C(i) is amended to read as follows:
        ``(i) Termination.--This section shall not apply with respect to
    any property placed in service after December 31, 2025.''.
        (b) Conforming Amendments.--
                (1) Section 25C(d)(2)(C) is amended to read as follows:
                        ``(C) Any oil furnace or hot water boiler which is
                    placed in service before January 1, 2026, and--
                                ``(i) meets or exceeds 2021 Energy Star
                            efficiency criteria, and
                                ``(ii) is rated by the manufacturer for use
                            with fuel blends at least 20 percent of the
                            volume of which consists of an eligible
                            fuel.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to property placed in service after December 31, 2025.

    SEC. 112006. TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT.

        (a) In General.--Section 25D(h) is amended by striking ``December
    31, 2034'' and inserting ``December 31, 2025''.
        (b) Conforming Amendments.--Section 25D(g) is amended--
                (1) in paragraph (2), by inserting ``and'' after the comma
            at the end,
                (2) in paragraph (3), by striking ``January 1, 2033, 30
            percent,'' and inserting ``January 1, 2026, 30 percent.'', and
                (3) by striking paragraphs (4) and (5).
        (c) Effective Date.--The amendments made by this section shall
    apply to property placed in service after December 31, 2025.

    SEC. 112007. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT.

        (a) In General.--Section 45L(h) is amended to read as follows:
        ``(h) Termination.--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).''.
        (b) Effective Date.--The amendment made by this section shall apply
    to homes acquired after December 31, 2025.

    SEC. 112008. RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT.

        (a) Termination of Credit.--Section 45Y is amended by striking
    subsection (d) and by adding at the end the following new subsection:
        ``(h) Termination of Credit.--
                ``(1) In general.--Except as provided in paragraphs (2) and
            (3), no credit shall be allowed under this section for any
            qualified facility--
                        ``(A) the construction of which begins after the
                    date which is 60 days after the date of the enactment
                    of this subsection, or
                        ``(B) which is placed in service after December 31,
                    2028.
                ``(2) Advanced nuclear facilities.--In the case of any
            qualified facility that is an advanced nuclear facility (as
            defined in section 45J(d)(2))--
                        ``(A) paragraph (1) shall not apply, and
                        ``(B) no credit shall be allowed under this section
                    for any such facility the construction of which begins
                    after December 31, 2028.
                ``(3) Expansion of nuclear facilities.--In the case of any
            nuclear facility the reactor design for which is approved by
            the Nuclear Regulatory Commission--
                        ``(A) paragraph (1) shall not apply, and
                        ``(B) no credit shall be allowed under this section
                    for any such facility the expansion of which begins
                    after December 31, 2028.''.
        (b) Restrictions Relating to Prohibited Foreign Entities.--Section
    45Y is amended--
                (1) in subsection (b)(1), by adding at the end the
            following new subparagraph:
                        ``(E) Material assistance from prohibited foreign
                    entities.--The term `qualified facility' 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)).'', and
                (2) in subsection (g), by adding at the end the following
            new paragraph:
                ``(13) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--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)).
                        ``(B) Other prohibited foreign entities.--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--
                                ``(i) the taxpayer is a foreign-influenced
                            entity (as defined in section 7701(a)(51)(D)),
                            or
                                ``(ii) during such taxable year, the
                            taxpayer--
                                        ``(I) 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
                                        ``(II) 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.''.
        (c) Definitions Relating to Prohibited Foreign Entities.--Section
    7701(a) is amended by adding at the end the following new paragraphs:
                ``(51) Prohibited foreign entity.--
                        ``(A) In general.--The term `prohibited foreign
                    entity' means a specified foreign entity or a foreign-
                    influenced entity.
                        ``(B) Specified foreign entity.--For purposes of
                    subparagraph (A), the term `specified foreign entity'
                    means--
                                ``(i) 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 (Public Law 116-283; 15
                            U.S.C. 4651),
                                ``(ii) 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 (Public
                            Law 116-283; 10 U.S.C. 113 note),
                                ``(iii) an entity included on a list
                            required by clause (i), (ii), (iv), or (v) of
                            section 2(d)(2)(B) of Public Law 117-78 (135
                            Stat. 1527),
                                ``(iv) an entity specified under section
                            154(b) of the National Defense Authorization
                            Act for Fiscal Year 2024 (Public Law 118-31; 10
                            U.S.C. note prec. 4651), or
                                ``(v) a foreign-controlled entity.
                        ``(C) Foreign-controlled entity.--For purposes of
                    subparagraph (B), the term `foreign-controlled entity'
                    means--
                                ``(i) the government of a covered nation
                            (as defined in section 4872(f)(2) of title 10,
                            United States Code),
                                ``(ii) 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,
                                ``(iii) 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
                                ``(iv) an entity (including subsidiary
                            entities) controlled (as determined under
                            subparagraph (F)) by an entity described in
                            clause (i), (ii), or (iii).
                        ``(D) Foreign-influenced entity.--For purposes of
                    subparagraph (A), the term `foreign-influenced entity'
                    means an entity--
                                ``(i) with respect to which, during the
                            taxable year--
                                        ``(I) a specified foreign entity
                                    has the direct or indirect authority to
                                    appoint a covered officer of such
                                    entity,
                                        ``(II) a single specified foreign
                                    entity owns at least 10 percent of such
                                    entity,
                                        ``(III) one or more specified
                                    foreign entities own in the aggregate
                                    at least 25 percent of such entity, or
                                        ``(IV) at least 25 percent of the
                                    debt of such entity is held in the
                                    aggregate by one or more specified
                                    foreign entities, or
                                ``(ii) which, during the previous taxable
                            year--
                                        ``(I) 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
                                        ``(II) 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.
                            Clause (ii) shall not apply unless such entity
                            makes such payments knowingly (or has reason to
                            know).
                        ``(E) Covered officer.--For purposes of this
                    paragraph, the term `covered officer' means, with
                    respect to an entity--
                                ``(i) a member of the board of directors,
                            board of supervisors, or equivalent governing
                            body,
                                ``(ii) an executive-level officer,
                            including the president, chief executive
                            officer, chief operating officer, chief
                            financial officer, general counsel, or senior
                            vice president, or
                                ``(iii) an individual having powers or
                            responsibilities similar to those of officers
                            or members described in clause (i) or (ii).
                        ``(F) Determination of control.--For purposes of
                    subparagraph (C)(iv), the term `control' means--
                                ``(i) in the case of a corporation,
                            ownership (by vote or value) of more than 50
                            percent of the stock in such corporation,
                                ``(ii) in the case of a partnership,
                            ownership of more than 50 percent of the
                            profits interests or capital interests in such
                            partnership, or
                                ``(iii) in any other case, ownership of
                            more than 50 percent of the beneficial
                            interests in the entity.
                        ``(G) Determination of ownership.--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.
                        ``(H) Regulations and guidance.--The Secretary may
                    prescribe such regulations and guidance as may be
                    necessary or appropriate to carry out the provisions of
                    this paragraph.
                ``(52) Material assistance from a prohibited foreign
            entity.--
                        ``(A) In general.--The term `material assistance
                    from a prohibited foreign entity' means, with respect
                    to any property--
                                ``(i) 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
                                ``(ii) 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.
                        ``(B) Exclusion.--
                                ``(i) In general.--The term `material
                            assistance from a prohibited foreign entity'
                            shall not include any assembly part or
                            constituent material, provided that such part
                            or material is not acquired directly from a
                            prohibited foreign entity.
                                ``(ii) Assembly part.--For purposes of this
                            subparagraph, the term `assembly part' means a
                            subcomponent or collection of subcomponents
                            which is--
                                        ``(I) 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
                                        ``(II) not exclusively or
                                    predominantly produced by prohibited
                                    foreign entities.
                                ``(iii) Constituent material.--For purposes
                            of this subparagraph, the term `constituent
                            material' means any material which is--
                                        ``(I) not uniquely formulated for
                                    use in a qualified facility described
                                    in section 45Y or 48E or an eligible
                                    component described in section 45X, and
                                        ``(II) not exclusively or
                                    predominantly produced, processed, or
                                    extracted by prohibited foreign
                                    entities.
                                ``(iv) Regulations and guidance.--The
                            Secretary may prescribe such regulations and
                            guidance as may be necessary or appropriate to
                            carry out the provisions of this paragraph.''.
        (d) Denial of Credit for Expenditures for Certain Wind and Solar
    Leasing Arrangements.--Section 45Y, as amended by subsection (a), is
    amended by inserting after subsection (c) the following new subsection:
        ``(d) Denial of Credit for Expenditures for Wind and Solar Leasing
    Arrangements.--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--
                ``(1) the taxpayer rents or leases such property to a third
            party during such taxable year, and
                ``(2) the lessee would qualify for a credit under section
            25D with respect to such property if the lessee owned such
            property.''.
        (e) Effective Dates.--
                (1) In general.--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.
                (2) Termination of credit.--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.

    SEC. 112009. RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT.

        (a) Termination of Credit.--Section 48E is amended by striking
    subsection (e) and by adding at the end the following new subsection:
        ``(j) Termination of Credit.--
                ``(1) In general.--Except as provided in paragraph (2), no
            credit shall be allowed under this section for any qualified
            facility or energy storage technology--
                        ``(A) the construction of which begins after the
                    date which is 60 days after the date of the enactment
                    of this subsection, or
                        ``(B) which is placed in service after December 31,
                    2028.
                ``(2) Advanced nuclear facility.--In the case of any
            qualified facility that is an advanced nuclear facility (as
            defined in section 45J(d)(2))--
                        ``(A) paragraph (1) shall not apply, and
                        ``(B) no credit shall be allowed under this section
                    for any such facility the construction of which begins
                    after December 31, 2028.''.
        (b) Restrictions Relating to Prohibited Foreign Entities.--
                (1) In general.--Section 48E is amended--
                        (A) in subsection (b)(3), by adding at the end the
                    following new subparagraph:
                        ``(D) Material assistance from prohibited foreign
                    entities.--The term `qualified facility' 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)).'', and
                        (B) in subsection (c), by adding at the end the
                    following new paragraph:
                ``(3) Material assistance from prohibited foreign
            entities.--The term `energy storage technology' 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)).''.
                (2) Restrictions relating to prohibited foreign entities.--
            Section 48E(d) is amended by adding at the end the following
            new paragraph:
                ``(6) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--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)).
                        ``(B) Other prohibited foreign entities.--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--
                                ``(i) the taxpayer is a foreign-influenced
                            entity (as defined in section 7701(a)(51)(D)),
                            or
                                ``(ii) during such taxable year, the
                            taxpayer--
                                        ``(I) 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
                                        ``(II) 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.''.
                (3) Recapture.--Section 50(a) is amended--
                        (A) by redesignating paragraphs (4) through (6) as
                    paragraphs (5) through (7), respectively,
                        (B) by inserting after paragraph (3) the following
                    new paragraph:
                ``(4) Payments to prohibited foreign entities.--
                        ``(A) In general.--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.
                        ``(B) Applicable payment.--For purposes of this
                    paragraph, the term `applicable payment' means, with
                    respect to any taxable year, a payment or payments
                    described in subclause (I) or (II) of section
                    48E(d)(6)(B)(ii).
                        ``(C) Specified taxpayer.--For purposes of this
                    paragraph, the term `specified taxpayer' 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.'',
                        (C) in paragraph (5), as redesignated by
                    subparagraph (A), by striking ``or any applicable
                    transaction to which paragraph (3)(A) applies,'' and
                    inserting ``any applicable transaction to which
                    paragraph (3)(A) applies, or any applicable payment to
                    which paragraph (4)(A) applies,'', and
                        (D) in paragraph (7), as redesignated by
                    subparagraph (A), by striking ``or (3)'' and inserting
                    ``(3), or (4)''.
        (c) Denial of Credit for Expenditures for Certain Wind and Solar
    Leasing Arrangements.--Section 48E, as amended by subsection (a), is
    amended by inserting after subsection (d) the following new subsection:
        ``(e) Denial of Credit for Expenditures for Wind and Solar Leasing
    Arrangements.--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--
                ``(1) the taxpayer rents or leases such property to a third
            party during such taxable year, and
                ``(2) the lessee would qualify for a credit under section
            25D with respect to such property if the lessee owned such
            property.''.
        (d) Conforming Amendments.--Section 48E(h)(4) is amended--
                (1) in subparagraph (C), by striking ``December 31 of the
            applicable year (as defined in section 45Y(d)(3))'' and
            inserting ``December 31, 2028'',
                (2) in subparagraph (D), by striking ``the third calendar
            year following the applicable year (as defined in section
            45Y(d)(3))'' and inserting ``2028'', and
                (3) in subparagraph (E)(i), by striking ``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'' and
            inserting ``the earlier of--
                                        ``(I) 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
                                        ``(II) December 31, 2028.''.
        (e) Effective Dates.--
                (1) In general.--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.
                (2) Termination of credit.--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.

    SEC. 112010. REPEAL OF TRANSFERABILITY OF CLEAN FUEL PRODUCTION CREDIT.

        (a) In General.--Section 6418(f)(1)(A) is amended by striking
    clause (viii).
        (b) Effective Date.--The amendment made by this section shall apply
    to fuel produced after December 31, 2027.

    SEC. 112011. RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT.

        (a) Restrictions Relating to Prohibited Foreign Entities.--Section
    45Q(f) is amended by adding at the end the following new paragraph:
                ``(10) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--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)).
                        ``(B) Other prohibited foreign entities.--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)).''.
        (b) Repeal of Transferability.--Section 6418(f)(1), as amended by
    section 112010, is amended--
                (1) in subparagraph (A), by striking clause (iii), and
                (2) in subparagraph (B)--
                        (A) in the matter preceding clause (i), by striking
                    ``clause (ii), (iii), or (v)'' and inserting ``clause
                    (ii) or (v)'', and
                        (B) in clause (ii), by striking ``(or, in the
                    case'' and all that follows through ``at such
                    facility)''.
        (c) Effective Dates.--
                (1) Restrictions relating to prohibited foreign entities.--
            The amendments made by subsection (a) shall apply to taxable
            years beginning after the date of enactment of this Act.
                (2) Repeal of transferability.--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.

    SEC. 112012. RESTRICTIONS ON ZERO-EMISSION NUCLEAR POWER PRODUCTION
                  CREDIT.

        (a) Restrictions Relating to Prohibited Foreign Entities.--Section
    45U(c) is amended by adding at the end the following new paragraph:
                ``(3) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--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)).
                        ``(B) Other prohibited foreign entities.--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)).''.
        (b) Termination of Credit.--Section 45U(e) is amended by striking
    ``December 31, 2032'' and inserting ``December 31, 2031''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after the date of enactment of this
    Act.

    SEC. 112013. TERMINATION OF CLEAN HYDROGEN PRODUCTION CREDIT.

        (a) Termination.--Section 45V(c)(3)(C) is amended by striking
    ``January 1, 2033'' and inserting ``January 1, 2026''.
        (b) Effective Date.--The amendment made by this section shall apply
    to facilities the construction of which begins after December 31, 2025.

    SEC. 112014. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING
                  PRODUCTION CREDIT.

        (a) Phase-out.--Section 45X(b)(3) is amended--
                (1) in subparagraph (B)--
                        (A) in clause (ii), by adding ``and'' at the end,
                        (B) in clause (iii), by striking ``during calendar
                    year 2032, 25 percent,'' and inserting ``after December
                    31, 2031, 0 percent.'', and
                        (C) by striking clause (iv), and
                (2) by striking subparagraph (C) and inserting the
            following:
                        ``(C) Termination for wind energy components.--This
                    section shall not apply to wind energy components sold
                    after December 31, 2027.''.
        (b) Restrictions Relating to Prohibited Foreign Entities.--Section
    45X is amended--
                (1) in subsection (c)(1), by adding at the end the
            following new subparagraph:
                        ``(C) Material assistance from prohibited foreign
                    entities.--In the case of taxable years beginning after
                    the date which is 2 years after the date of enactment
                    of this subparagraph, the term `eligible component'
                    shall not include any property which--
                                ``(i) includes any material assistance from
                            a prohibited foreign entity (as defined in
                            section 7701(a)(52)), or
                                ``(ii) 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.'', and
                (2) in subsection (d), by adding at the end the following
            new paragraph:
                ``(5) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--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)).
                        ``(B) Other prohibited foreign entities.--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)).
                        ``(C) Payments to prohibited foreign entities.--
                                ``(i) In general.--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.
                                ``(ii) Taxpayer described.--A taxpayer is
                            described in this clause for a taxable year
                            with respect to any eligible component category
                            if such taxpayer--
                                        ``(I) 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
                                        ``(II) 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.
                                ``(iii) Eligible component category.--For
                            purposes of this subparagraph, the term
                            `eligible component category' means eligible
                            components which are included within each
                            respective clause under subsection
                            (c)(1)(A).''.
        (c) Repeal of Transferability.--Section 6418, as amended by
    sections 112010, 112011, and 112012 is amended--
                (1) in subsection (f)(1)--
                        (A) in subparagraph (A)--
                                (i) by striking clause (vi), and
                                (ii) by redesignating clauses (iv), (v),
                            (vii), (ix), (x), and (xi) as clauses (iii),
                            (iv), (v), (vi), (vii), and (viii),
                            respectively, and
                        (B) in subparagraph (B), by striking ``clause (ii)
                    or (v)'' and inserting ``clause (ii) or (iv)'', and
                (2) in subsection (g)(3), by striking ``clause (ix) or
            (x)'' and inserting ``clause (vi) or (vii)''.
        (d) Effective Dates.--
                (1) In general.--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.
                (2) Repeal of transferability.--The amendments made by
            subsection (c) shall apply to components sold after December
            31, 2027.

    SEC. 112015. PHASE-OUT OF CREDIT FOR CERTAIN ENERGY PROPERTY.

        (a) Phase-out.--Section 48(a) is amended--
                (1) in paragraph (3)(vii), by striking ``the construction
            of which begins before January 1, 2035'' and inserting ``the
            construction of which begins before January 1, 2032'', and
                (2) by striking paragraph (7) and inserting the following
            new paragraph:
                ``(7) Phase-out for certain energy property.--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--
                        ``(A) 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,
                        ``(B) in the case of any property the construction
                    of which begins after December 31, 2029, and before
                    January 1, 2031, 5.2 percent, and
                        ``(C) in the case of any property the construction
                    of which begins after December 31, 2030, and before
                    January 1, 2032, 4.4 percent.''.
        (b) Restrictions Relating to Prohibited Foreign Entities.--Section
    48(a) is amended by redesignating paragraph (16) as paragraph (17) and
    by inserting after paragraph (15) the following new paragraph:
                ``(16) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--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)).
                        ``(B) Other prohibited foreign entities.--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)).''.
        (c) Repeal of Transferability.--Section 6418(f)(1)(A)(iii), as
    redesignated by section 112014, is amended by inserting ``(except so
    much of the credit as is determined under paragraph (3)(A)(vii) of such
    section)'' after ``section 48''.
        (d) Effective Dates.--
                (1) In general.--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.
                (2) Repeal of transferability.--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.

    SEC. 112016. INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE ADDED TO
                  QUALIFYING INCOME OF CERTAIN PUBLICLY TRADED PARTNERSHIPS
                  TREATED AS CORPORATIONS.

        (a) In General.--Section 7704(d)(1)(E) is amended--
                (1) by striking ``income and gains derived from the
            exploration'' and inserting ``income and gains derived from--
                                ``(i) the exploration'',
                (2) by inserting ``or'' before ``industrial source'', and
                (3) by striking ``the transportation or storage'' and all
            that follows and inserting the following:
                                ``(ii) the transportation or storage of--
                                        ``(I) 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
                                        ``(II) liquified hydrogen or
                                    compressed hydrogen, or
                                ``(iii) 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))--
                                        ``(I) the generation, availability
                                    for such generation, or storage of
                                    electric power at such facility, or
                                        ``(II) the capture of carbon
                                    dioxide by such facility,''.
        (b) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 112017. LIMITATION ON AMORTIZATION OF CERTAIN SPORTS FRANCHISES.

        (a) In General.--Section 197 is amended by redesignating subsection
    (g) as subsection (h) and by inserting after subsection (f) the
    following new subsection:
        ``(g) Limitation on Amortization of Certain Sports Franchises.--
                ``(1) In general.--In the case of a specified sports
            franchise intangible, subsection (a) shall be applied by
            substituting `50 percent of the adjusted basis' for `the
            adjusted basis'.
                ``(2) Specified sports franchise intangible.--For purposes
            of this subsection, the term `specified sports franchise
            intangible' means any amortizable section 197 intangible which
            is--
                        ``(A) a franchise to engage in professional
                    football, basketball, baseball, hockey, soccer, or
                    other professional sport, or
                        ``(B) acquired in connection with such a
                    franchise.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to property acquired after the date of the enactment of this Act.

    SEC. 112018. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND
                  LOCAL TAXES, ETC.

        (a) In General.--Section 275 is amended by redesignating subsection
    (b) as subsection (c) and by inserting after subsection (a) the
    following new subsection:
        ``(b) Limitation on Individual Deductions for Certain State and
    Local Taxes, etc.--
                ``(1) Limitation.--
                        ``(A) In general.--In the case of an individual, no
                    deduction shall be allowed for--
                                ``(i) any disallowed foreign real property
                            taxes, and
                                ``(ii) any specified taxes to the extent
                            that such taxes for such taxable year in the
                            aggregate exceed--
                                        ``(I) half the dollar amount in
                                    effect under subclause (II), in the
                                    case of a married individual filing a
                                    separate return, and
                                        ``(II) $40,400, in the case of any
                                    other taxpayer.
                        ``(B) Phasedown based on modified adjusted gross
                    income.--
                                ``(i) In general.--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--
                                        ``(I) half the dollar amount in
                                    effect under subclause (II), in the
                                    case of a married individual filing a
                                    separate return, and
                                        ``(II) $505,000, in the case of any
                                    other taxpayer.
                                ``(ii) Limitation on reduction.--The
                            reduction under clause (i) shall not result
                            in--
                                        ``(I) the limitation in effect
                                    under subparagraph (A)(ii)(I) being
                                    less than $5,000, or
                                        ``(II) the limitation in effect
                                    under subparagraph (A)(ii)(II) being
                                    less than $10,000.
                        ``(C) Modified adjusted gross income.--For purposes
                    of this paragraph, the term `modified adjusted gross
                    income' means adjusted gross income increased by any
                    amount excluded from gross income under section 911,
                    931, or 933.
                        ``(D) Adjustment of certain dollar amounts.--
                                ``(i) In general.--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.
                                ``(ii) Maintenance of increase
                            thereafter.--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.
                ``(2) Disallowed foreign real property tax.--For purposes
            of this subsection, the term `disallowed foreign real property
            tax' means any tax which--
                        ``(A) is a foreign real property tax described in
                    section 164(a)(1) or 216(a)(1), and
                        ``(B) is not an excepted tax.
                ``(3) Specified tax.--For purposes of this subsection, the
            term `specified tax' means--
                        ``(A) any tax which--
                                ``(i) 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
                                ``(ii) is not an excepted tax or a
                            disallowed foreign real property tax, and
                        ``(B) any substitute payment.
                ``(4) Excepted tax.--For purposes of this subsection--
                        ``(A) In general.--The term `excepted tax' means--
                                ``(i) any foreign tax described in section
                            164(a)(3),
                                ``(ii) 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
                                ``(iii) 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.
                        ``(B) Qualifying entity.--For purposes of
                    subparagraph (A), the term `qualifying entity' 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.
                ``(5) Substitute payment.--For purposes of this
            subsection--
                        ``(A) In general.--The term `substitute payment'
                    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.
                        ``(B) Assumption regarding dollar value of tax
                    benefits.--The assumption described in this
                    subparagraph is that the dollar value of a specified
                    tax benefit is--
                                ``(i) in the case of a credit or refund,
                            the amount of such credit or refund,
                                ``(ii) in the case of a deduction or
                            exclusion, 15 percent of the amount of such
                            deduction or exclusion, and
                                ``(iii) in any other case, an amount
                            determined in such manner as the Secretary may
                            provide consistent with the principles of
                            clauses (i) and (ii).
                        ``(C) Assumption regarding status of partners or
                    shareholders.--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).
                        ``(D) Specified tax benefit.--For purposes of
                    subparagraph (A), the term `specified tax benefit'
                    means any benefit which--
                                ``(i) is determined with respect to the
                            amount referred to in subparagraph (A), and
                                ``(ii) is allowed against, or determined by
                            reference to, a tax described in paragraph
                            (3)(A) or section 164(b)(5).
                        ``(E) Exception for non-deductible payments.--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 `substitute payment' shall not
                    include such amount.
                        ``(F) Exception for certain withholding taxes.--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).
                ``(6) Regulations.--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--
                        ``(A) 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,
                        ``(B) to treat as a substitute payment any amount
                    that, in substance, substitutes for a specified tax,
                        ``(C) 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
                        ``(D) to otherwise prevent the avoidance of the
                    purposes of this subsection.''.
        (b) State and Local Income Taxes Paid by Partnerships and S
    Corporations Taken Into Account Separately by Partners and
    Shareholders.--
                (1) In general.--Section 702(a)(6) is amended to read as
            follows:
                ``(6)(A) taxes, described in section 901, paid or accrued
            to foreign countries,
                ``(B) taxes, described in section 901, paid or accrued to
            possessions of the United States,
                ``(C) specified taxes (within the meaning of section
            275(b)), other than taxes described in subparagraph (B), and
                ``(D) taxes described in section 275(b)(2),''.
                (2) Treatment of substitute payments.--Section 702 is
            amended by redesignating subsection (d) as subsection (e) and
            by inserting after subsection (c) the following new subsection:
        ``(d) Treatment of Substitute Payments.--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).''.
                (3) Disallowance of deduction to partnerships.--Section
            703(a)(2)(B) is amended to read as follows:
                        ``(B) any deduction under this chapter with respect
                    to taxes or payments described in section 702(a)(6),''.
                (4) S corporations.--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.
                (5) Allowable salt deductions taken into account for
            purposes of limitation on partnership losses.--Section
            704(d)(3) 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:
                        ``(A) In general.--In determining the amount of any
                    loss under paragraph (1), there shall be taken into
                    account--
                                ``(i) the partner's distributive share of
                            amounts described in paragraphs (4) and (6)(A)
                            of section 702(a),
                                ``(ii) 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
                                ``(iii) 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.
                        ``(B) Treatment of possession taxes in event
                    partner does not elect the foreign tax credit.--In the
                    case of a taxpayer not described in subparagraph
                    (A)(ii), subparagraph (A)(iii) shall be applied by
                    substituting `subparagraphs (B) and (C) of section
                    702(a)(6)' for `section 702(a)(6)(C)'.''.
                (6) Conforming amendment.--Section 56(b)(1)(A)(ii) is
            amended by inserting ``or for any substitute payment (as
            defined in section 275(b)(5))'' before the period at the end.
        (c) Addition to Tax for State and Local Tax Allocation Mismatch.--
                (1) In general.--Part I of subchapter A of chapter 68 is
            amended by adding at the end the following new section:

    ``SEC. 6659. STATE AND LOCAL TAX ALLOCATION MISMATCH.

        ``(a) In General.--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--
                ``(1) the highest rate of tax in effect under such section
            for such taxable year, multiplied by
                ``(2) 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.
        ``(b) Covered Individual.--For purposes of this section, the term
    `covered individual' means, with respect to any partnership specified
    tax payment, any individual (or estate or trust) who--
                ``(1) is entitled (directly or indirectly) to one or more
            specified tax benefits with respect to such payment, and
                ``(2) takes into account (directly or indirectly) any item
            of income, gain, deduction, loss, or credit of the partnership
            which made such payment.
        ``(c) State and Local Tax Allocation Mismatch.--For purposes of
    this section--
                ``(1) In general.--The term `State and local tax allocation
            mismatch' means, with respect to any partnership specified tax
            payment, the excess (if any) of--
                        ``(A) the aggregate dollar value of the specified
                    tax benefits of the covered individual with respect to
                    such payment, over
                        ``(B) the amount of such payment taken into account
                    by such individual under section 702(a) (without regard
                    to sections 275(b) and 704(d)).
                ``(2) Taxable year of individual in which mismatch taken
            into account.--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.
        ``(d) Determination of Dollar Value of Specified Tax Benefits.--
                ``(1) In general.--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--
                        ``(A) 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
                        ``(B) the deemed value of any carryforward of such
                    specified tax benefit (including any tax attribute
                    derived from such benefit) to any subsequent taxable
                    year.
                ``(2) Deemed value of carryforwards.--For purposes of
            paragraph (1), the deemed value of any carryforward is--
                        ``(A) in the case of a credit or refund, the amount
                    of such credit or refund,
                        ``(B) in the case of a deduction or exclusion, the
                    product of--
                                ``(i) 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
                                ``(ii) the amount of such deduction or
                            exclusion, and
                        ``(C) in any other case, an amount determined in
                    such manner as the Secretary may provide consistent
                    with the principles of subparagraphs (A) and (B).
                ``(3) Election of simplified method.--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).
        ``(e) Other Definitions and Special Rules.--For purposes of this
    section--
                ``(1) Partnership specified tax payment.--The term
            `partnership specified tax payment' means any specified tax
            paid, incurred, or accrued by a partnership.
                ``(2) Specified tax.--The term `specified tax' has the
            meaning given such term by section 275(b)(3).
                ``(3) Specified tax benefit.--The term `specified tax
            benefit' means any benefit which--
                        ``(A) is determined with respect to a partnership
                    specified tax payment, and
                        ``(B) is allowed against, or determined by
                    reference to, a tax described in section 275(b)(3)(A).
        ``(f) Regulations.--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.''.
                (2) Clerical amendment.--The table of sections for part I
            of subchapter A of chapter 68 is amended by adding at the end
            the following new item:

    ``Sec. 6659. State and local tax allocation mismatch.''.
        (d) Limitation on Capitalization of Specified Taxes.--Section 275,
    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:
        ``(c) Limitations on Capitalization of Specified Taxes.--
    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.''.
        (e) Reporting by Partnerships and S Corporations With Respect to
    Specified Service Trade or Business Income.--
                (1) Partnerships.--Section 6031 is amended by adding at the
            end the following new subsection:
        ``(g) Specified Service Trade or Business Income.--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).''.
                (2) S corporations.--Section 6037 is amended by adding at
            the end the following new subsection:
        ``(d) Specified Service Trade or Business Income.--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).''.
        (f) Temporary Increase for 2025.--
                (1) In general.--Section 164(b)(6) is amended by striking
            ``$10,000 ($5,000 in the case of a married individual filing a
            separate return)'' and inserting ``applicable limitation
            amount''.
                (2) Applicable limitation amount.--Section 164(b) is
            amended by adding at the end the following new paragraph:
                ``(7) Applicable limitation amount.--
                        ``(A) In general.--For purposes of paragraph (6),
                    the term `applicable limitation amount' means--
                                ``(i) $20,000, in the case of a married
                            individual filing a separate return, and
                                ``(ii) $40,000, in the case of any other
                            taxpayer.
                        ``(B) Phasedown based on modified adjusted gross
                    income.--
                                ``(i) In general.--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--
                                        ``(I) $250,000, in the case of a
                                    married individual filing a separate
                                    return, and
                                        ``(II) $500,000, in the case of any
                                    other taxpayer.
                                ``(ii) Limitation on reduction.--The
                            reduction under clause (i) shall not result
                            in--
                                        ``(I) the dollar amount in effect
                                    under subparagraph (A)(i) being less
                                    than $5,000, or
                                        ``(II) the dollar amount in effect
                                    under subparagraph (A)(ii) being less
                                    than $10,000.
                        ``(C) Modified adjusted gross income.--For purposes
                    of this paragraph, the term `modified adjusted gross
                    income' means adjusted gross income increased by any
                    amount excluded from gross income under section 911,
                    931, or 933.''.
                (3) Repeal after 2025.--Section 164(b), as amended by
            paragraphs (1) and (2), is amended by striking paragraphs (6)
            and (7).
        (g) Effective Date.--
                (1) In general.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply to
            taxable years beginning after December 31, 2025.
                (2) Temporary increase for 2025.--The amendments made by
            paragraphs (1) and (2) of subsection (f) shall apply to taxable
            years beginning after December 31, 2024.

    SEC. 112019. EXCESSIVE EMPLOYEE REMUNERATION FROM CONTROLLED GROUP
                  MEMBERS AND ALLOCATION OF DEDUCTION.

        (a) Application of Aggregation Rules.--Section 162(m) is amended by
    adding at the end the following new paragraph:
                ``(7) Remuneration from controlled group members.--
                        ``(A) In general.--In the case of any publicly held
                    corporation which is a member of a controlled group--
                                ``(i) paragraph (1) shall be applied by
                            substituting `specified covered employee' for
                            `covered employee', and
                                ``(ii) 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--
                                        ``(I) paragraph (1) shall apply to
                                    such person with respect to such
                                    remuneration, and
                                        ``(II) paragraph (1) shall apply to
                                    such publicly held corporation and to
                                    each such related person by
                                    substituting `the allocable limitation
                                    amount' for `$1,000,000'.
                        ``(B) Allocable limitation amount.--For purposes of
                    this paragraph, the term `allocable limitation amount'
                    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--
                                ``(i) the amount of applicable employee
                            remuneration provided by such member with
                            respect to such specified covered employee,
                            bears to
                                ``(ii) the aggregate amount of applicable
                            employee remuneration provided by all such
                            members with respect to such specified covered
                            employee.
                        ``(C) Specified covered employee.--For purposes of
                    this paragraph, the term `specified covered employee'
                    means, with respect to any controlled group--
                                ``(i) 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
                                ``(ii) 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.
                        ``(D) Controlled group.--For purposes of this
                    paragraph, the term `controlled group' means any group
                    treated as a single employer under subsection (b), (c),
                    (m), or (o) of section 414.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2025.

    SEC. 112020. EXPANDING APPLICATION OF TAX ON EXCESS COMPENSATION WITHIN
                  TAX-EXEMPT ORGANIZATIONS.

        (a) In General.--Section 4960(c)(2) is amended to read as follows:
                ``(2) Covered employee.--For purposes of this section, the
            term `covered employee' means any employee (including any
            former employee) of an applicable tax-exempt organization.''.
        (b) Effective Date.--The amendment made by subsection (a) shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 112021. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF CERTAIN
                  PRIVATE COLLEGES AND UNIVERSITIES.

        (a) In General.--Section 4968 is amended to read as follows:

    ``SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE COLLEGES
                  AND UNIVERSITIES.

        ``(a) Tax Imposed.--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.
        ``(b) Applicable Percentage.--For purposes of this section, the
    term `applicable percentage' means--
                ``(1) 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,
                ``(2) 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,
                ``(3) 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
                ``(4) 21 percent in the case of an institution with a
            student adjusted endowment in excess of $2,000,000.
        ``(c) Applicable Educational Institution.--For purposes of this
    subchapter--
                ``(1) In general.--The term `applicable educational
            institution' means an eligible educational institution (as
            defined in section 25A(f)(2))--
                        ``(A) which had at least 500 tuition-paying
                    students during the preceding taxable year,
                        ``(B) more than 50 percent of the tuition-paying
                    students of which are located in the United States,
                        ``(C) which is not--
                                ``(i) described in the first sentence of
                            section 511(a)(2)(B) (relating to State
                            colleges and universities), or
                                ``(ii) a qualified religious institution,
                            and
                        ``(D) the student adjusted endowment of which is at
                    least $500,000.
                ``(2) Qualified religious institution.--For purposes of
            this subsection, the term `qualified religious institution'
            means any institution--
                        ``(A) established after July 4, 1776,
                        ``(B) 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
                        ``(C) 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.
        ``(d) Student Adjusted Endowment.--For purposes of this section--
                ``(1) In general.--The term `student adjusted endowment'
            means, with respect to any institution for any taxable year--
                        ``(A) 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
                        ``(B) the number of eligible students of such
                    institution.
                ``(2) Eligible student.--For purposes of this subsection,
            the term `eligible student' means a student of the institution
            that meets the student eligibility requirements under section
            484(a)(5) of the Higher Education Act of 1965.
        ``(e) Determination of Number of Students.--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).
        ``(f) Net Investment Income.--For purposes of this section--
                ``(1) In general.--Net investment income shall be
            determined under rules similar to the rules of section 4940(c).
                ``(2) Override of certain regulatory exceptions.--
                        ``(A) Student loan interest.--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.
                        ``(B) Federally-subsidized royalty income.--
                                ``(i) In general.--Net investment income
                            shall be determined by taking into account any
                            Federally-subsidized royalty income as gross
                            investment income.
                                ``(ii) Federally-subsidized royalty
                            income.--For purposes of this subparagraph--
                                        ``(I) In general.--The term
                                    `Federally-subsidized royalty income'
                                    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.
                                        ``(II) Otherwise-regulatory-exempt
                                    royalty income.--For purposes of this
                                    subparagraph, the term `otherwise-
                                    regulatory-exempt royalty income' 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.
                                        ``(III) Federal funds.--The term
                                    `Federal funds' 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).
        ``(g) Assets and Net Investment Income of Related Organizations.--
                ``(1) In general.--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--
                        ``(A) no such amount shall be taken into account
                    with respect to more than 1 educational institution,
                    and
                        ``(B) 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.
                ``(2) Related organization.--For purposes of this
            subsection, the term `related organization' means, with respect
            to an educational institution, any organization which--
                        ``(A) controls, or is controlled by, such
                    institution,
                        ``(B) is controlled by 1 or more persons which also
                    control such institution, or
                        ``(C) 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.
        ``(h) Regulations.--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.''.
        (b) Requirement to Report Certain Information With Respect to
    Application of Excise Tax Based on Investment Income of Private
    Colleges and Universities.--Section 6033 is amended by redesignating
    subsection (o) as subsection (p) and by inserting after subsection (n)
    the following new subsection:
        ``(o) Requirement to Report Certain Information With Respect to
    Excise Tax Based on Investment Income of Private Colleges and
    Universities.--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)--
                ``(1) the number of eligible students taken into account
            under section 4968(c)(1)(D), and
                ``(2) the number of students of such institution
            (determined after application of section 4968(e)).''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 112022. INCREASE IN RATE OF TAX ON NET INVESTMENT INCOME OF
                  CERTAIN PRIVATE FOUNDATIONS.

        (a) In General.--Section 4940(a) is amended by striking ``1.39
    percent'' and inserting ``the applicable percentage''.
        (b) Applicable Percentage.--Section 4940(a) is amended--
                (1) by striking ``There is hereby'' and inserting the
            following:
                ``(1) Imposition of tax.--There is hereby'', and
                (2) by adding at the end the following new paragraphs:
                ``(2) Applicable percentage.--For purposes of this
            subsection, the term `applicable percentage' means, with
            respect to any taxable year--
                        ``(A) in the case of a private foundation with
                    assets of less than $50,000,000, 1.39 percent,
                        ``(B) in the case of a private foundation with
                    assets of at least $50,000,000, and less than
                    $250,000,000, 2.78 percent,
                        ``(C) 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
                        ``(D) in the case of a private foundation with
                    assets of at least $5,000,000,000, 10 percent.
                ``(3) Assets.--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.
                ``(4) Aggregation.--
                        ``(A) In general.--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--
                                ``(i) no such amount shall be taken into
                            account with respect to more than 1 private
                            foundation, and
                                ``(ii) 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.
                        ``(B) Related organization.--For purposes of this
                    paragraph, the term `related organization' means, with
                    respect to a private foundation, any organization
                    which--
                                ``(i) controls, or is controlled by, such
                            private foundation, or
                                ``(ii) is controlled by 1 or more persons
                            which also control such private foundation.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after the date of the enactment of
    this Act.

    SEC. 112023. CERTAIN PURCHASES OF EMPLOYEE-OWNED STOCK DISREGARDED FOR
                  PURPOSES OF FOUNDATION TAX ON EXCESS BUSINESS HOLDINGS.

        (a) In General.--Section 4943(c)(4)(A) is amended by adding at the
    end the following new clauses:
                        ``(v) For purposes of clause (i), subparagraph (D),
                    and paragraph (2), any voting stock which--
                                ``(I) is not readily tradable on an
                            established securities market,
                                ``(II) 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
                                ``(III) is held by the business enterprise
                            as treasury stock, cancelled, or retired,
                    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.
                        ``(vi) 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).''.
        (b) Effective Date.--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.

    SEC. 112024. UNRELATED BUSINESS TAXABLE INCOME INCREASED BY AMOUNT OF
                  CERTAIN FRINGE BENEFIT EXPENSES FOR WHICH DEDUCTION IS
                  DISALLOWED.

        (a) In General.--Section 512(a) is amended by adding at the end the
    following new paragraph:
                ``(7) Increase in unrelated business taxable income by
            disallowed fringe.--
                        ``(A) In general.--Unrelated business taxable
                    income of an organization shall be increased by any
                    amount--
                                ``(i) 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)),
                                ``(ii) which is not directly connected with
                            an unrelated trade or business which is
                            regularly carried on by the organization, and
                                ``(iii) for which a deduction is not
                            allowable under this chapter by reason of
                            section 274.
                        ``(B) Exception for church organizations.--
                    Subparagraph (A) shall not apply to--
                                ``(i) 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
                                ``(ii) 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).
                        ``(C) Treatment as income from separate trade or
                    business.--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.
                        ``(D) Regulations.-- 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.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to amounts paid or incurred after December 31, 2025.

    SEC. 112025. EXCLUSION OF RESEARCH INCOME LIMITED TO PUBLICLY AVAILABLE
                  RESEARCH.

        (a) In General.--Section 512(b)(9) is amended by striking ``from
    research'' and inserting ``from such research''.
        (b) Effective Date.--The amendment made by this section shall apply
    to amounts received or accrued after December 31, 2025.

    SEC. 112026. LIMITATION ON EXCESS BUSINESS LOSSES OF NONCORPORATE
                  TAXPAYERS.

        (a) Rule Made Permanent.--Section 461(l)(1) is amended by striking
    ``and before January 1, 2029,'' each place it appears.
        (b) Excess Business Loss Determined on a Cumulative Basis With
    Respect to Periods After 2024.--Section 461(l)(2) is amended to read as
    follows:
                ``(2) Disallowed loss carryover.--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.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to losses arising (or treated as arising under section 461(l)(2)
    of the Internal Revenue Code of 1986, as amended by this section) in
    taxable years beginning after December 31, 2024.

    SEC. 112027. 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CONTRIBUTIONS
                  MADE BY CORPORATIONS.

        (a) In General.--Section 170(b)(2)(A) is amended to read as
    follows:
                        ``(A) In general.--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--
                                ``(i) exceeds 1 percent of the taxpayer's
                            taxable income, and
                                ``(ii) does not exceed 10 percent of the
                            taxpayer's taxable income.''.
        (b) Application of Carryforward.--Section 170(d)(2) is amended to
    read as follows:
                ``(2) Corporations.--
                        ``(A) In general.--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.
                        ``(B) 5-year carryforward.--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.
                        ``(C) Contributions disallowed by 1-percent floor
                    carried forward only from years in which 10 percent
                    limitation is exceeded.--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 `clause (i) or (ii)' for
                    `clause (ii)'.
                        ``(D) Special rule for net operating loss
                    carryovers.--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.''.
        (c) Conforming Amendments.--Subparagraph (B)(ii) and (C)(ii) of
    section 170(b)(2) are each amended by inserting ``other than
    subparagraph (C) thereof'' after ``subsection (d)(2)''.
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 112028. ENFORCEMENT OF REMEDIES AGAINST UNFAIR FOREIGN TAXES.

        (a) In General.--Subpart D of part II of subchapter N of chapter 1
    is amended by adding at the end the following new section:

    ``SEC. 899. ENFORCEMENT OF REMEDIES AGAINST UNFAIR FOREIGN TAXES.

        ``(a) Increased Rates of Tax on Foreign Persons of Discriminatory
    Foreign Countries.--
                ``(1) Taxes other than withholding taxes.--
                        ``(A) In general.--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.
                        ``(B) Specified rate of tax.--For purposes of this
                    paragraph, the term `specified rate of tax' means--
                                ``(i) the rates of tax specified in
                            paragraphs (1) and (2) of section 871(a),
                                ``(ii) in the case of any applicable person
                            to which section 871(b) applies, each rate of
                            tax in effect under section 1,
                                ``(iii) the rate of tax specified in
                            section 881(a),
                                ``(iv) in the case of any applicable person
                            to which section 882(a) applies, the rate of
                            tax specified in section 11(b),
                                ``(v) the rate of tax specified in section
                            884(a), and
                                ``(vi) the rate of tax specified in section
                            4948(a).
                        ``(C) Application of increased rates to effectively
                    connected income of nonresident alien individuals
                    limited to gains on united states real property
                    interests.--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--
                                ``(i) the tax which would be imposed under
                            such section (after application of subparagraph
                            (A)) if FIRPTA items were not taken into
                            account, over
                                ``(ii) the tax which would be imposed under
                            such section if FIRPTA items were not taken
                            into account, and subparagraph (A) did not
                            apply.
                    For purposes of this clause, the term `FIRPTA items'
                    means gains and losses taken into account under section
                    871(b)(1) by reason of section 897(a)(1)(A).
                        ``(D) Application of increased rates to certain
                    foreign governments.--In the case of any applicable
                    person described in subsection (b)(1)(A), section
                    892(a) shall not apply.
                ``(2) Modification of base erosion and anti-abuse tax.--In
            the case of any corporation described in subsection (b)(1)(E)
            (applied by substituting `corporation' for `foreign
            corporation')--
                        ``(A) 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,
                        ``(B) section 59A(b)(1) shall be applied by--
                                ``(i) substituting `12.5 percent' for `10.1
                            percent' in subparagraph (A), and
                                ``(ii) by treating the amount described in
                            section 59A(b)(1)(B)(ii) as being zero,
                        ``(C) subsections (c)(2)(B), (c)(4)(B)(ii), and
                    (d)(5) of section 59A shall not apply, and
                        ``(D) 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.
                ``(3) Withholding taxes.--
                        ``(A) In general.--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).
                        ``(B) Disposition of united states real property
                    interests.--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.
                        ``(C) Other dispositions and distributions related
                    to united states real property interests.--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--
                                ``(i) 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,
                                ``(ii) in the case of section 1445(e)(2),
                            the foreign corporation referred to in such
                            section is an applicable person,
                                ``(iii) in the case of section 1445(e)(3),
                            the foreign shareholder referred to in such
                            section is an applicable person,
                                ``(iv) in the case of section 1445(e)(4),
                            the foreign person referred to in such section
                            is an applicable person,
                                ``(v) in the case of section 1445(e)(5),
                            the Secretary issues regulations or other
                            guidance providing for such increase, and
                                ``(vi) in the case of section 1445(e)(6),
                            the nonresident alien individual or foreign
                            corporation referred to in such section is an
                            applicable person.
                ``(4) Applicable number of percentage points.--For purposes
            of this paragraph--
                        ``(A) In general.--The term `applicable number of
                    percentage points' means, with respect to any
                    discriminatory foreign country--
                                ``(i) with respect to the 1-year period
                            beginning on the applicable date with respect
                            to such foreign country, 5 percentage points,
                            and
                                ``(ii) with respect to any period after the
                            1-year period to which clause (i) applies, the
                            sum of --
                                        ``(I) 5 percentage points, plus
                                        ``(II) an additional 5 percentage
                                    points for each annual anniversary of
                                    such applicable date which has occurred
                                    before the beginning of such period.
                        ``(B) Cap on increase.--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.
                        ``(C) Applicable date.--For purposes of this
                    section, the term `applicable date' means, with respect
                    to any discriminatory foreign country, the first day of
                    the first calendar year beginning on or after the
                    latest of--
                                ``(i) 90 days after the date of enactment
                            of this section,
                                ``(ii) 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
                                ``(iii) the first date that an unfair
                            foreign tax of such country begins to apply.
                        ``(D) Application to taxable years.--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.
                        ``(E) Application to withholding taxes.--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.
                        ``(F) Multiple discriminatory foreign countries.--
                    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.
                        ``(G) Increase not applicable to nondiscriminatory
                    foreign countries.--In the case of any foreign country
                    which is not a discriminatory foreign country, the
                    applicable number of percentage points is zero.
                ``(5) Years to which applicable.--
                        ``(A) Taxable year.--In the case of any person,
                    paragraphs (1) and (2) shall apply to each taxable year
                    beginning--
                                ``(i) after the later of--
                                        ``(I) 90 days after the date of
                                    enactment of this section,
                                        ``(II) 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
                                        ``(III) the first date that an
                                    unfair foreign tax of such country
                                    begins to apply, and
                                ``(ii) before the last date on which the
                            discriminatory foreign country imposes an
                            unfair foreign tax.
                        ``(B) Withholding.--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.
                        ``(C) Safe harbor for withholding.--Paragraph (3)
                    shall not apply--
                                ``(i) 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
                                ``(ii) 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.
                        ``(D) Temporary safe harbor for withholding
                    agents.--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.
        ``(b) Applicable Person.--For purposes of this section--
                ``(1) In general.--Except as otherwise provided by the
            Secretary, the term `applicable person' means--
                        ``(A) any government (within the meaning of section
                    892) of any discriminatory foreign country,
                        ``(B) any individual (other than a citizen or
                    resident of the United States) who is tax resident of a
                    discriminatory foreign country,
                        ``(C) 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,
                        ``(D) any private foundation (within the meaning of
                    section 4948) created or organized in a discriminatory
                    foreign country,
                        ``(E) any foreign corporation (other than a
                    publicly held corporation) if more than 50 percent of--
                                ``(i) the total combined voting power of
                            all classes of stock of such corporation
                            entitled to vote, or
                                ``(ii) the total value of the stock of such
                            corporation,
                    is owned (within the meaning of section 958(a)) by
                    persons described in this paragraph,
                        ``(F) any trust the majority of the beneficial
                    interests of which are held (directly or indirectly) by
                    persons described in this paragraph, and
                        ``(G) foreign partnerships, branches, and any other
                    entity identified with respect to a discriminatory
                    foreign country by the Secretary for purposes of this
                    subsection.
                ``(2) Continuation of treatment during certain periods.--
            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.
        ``(c) Unfair Foreign Tax.--For purposes of this section--
                ``(1) In general.--The term `unfair foreign tax' 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--
                        ``(A) any United States person (including a trade
                    or business of a United States person), nor
                        ``(B) 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.
                ``(2) Extraterritorial tax.--The term `extraterritorial
            tax' 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.
                ``(3) Discriminatory tax.--The term `discriminatory tax'
            means any tax imposed by a foreign country if--
                        ``(A) 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,
                        ``(B) such tax is imposed on a base other than net
                    income and is not computed by permitting recovery of
                    costs and expenses,
                        ``(C) 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
                        ``(D) 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.
                ``(4) Exceptions.--Except as otherwise provided by the
            Secretary, the terms `extraterritorial tax' and `discriminatory
            tax' shall not include any generally applicable tax which
            constitutes--
                        ``(A) 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,
                        ``(B) 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,
                        ``(C) 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,
                        ``(D) 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,
                        ``(E) a value added tax, goods and services tax,
                    sales tax, or other similar tax on consumption,
                        ``(F) a tax imposed with respect to transactions on
                    a per-unit or per-transaction basis rather than on an
                    ad valorem basis,
                        ``(G) a tax on real or personal property, an estate
                    tax, a gift tax, other similar tax,
                        ``(H) 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
                        ``(I) any other tax identified by the Secretary for
                    purposes of this paragraph.
        ``(d) Other Definitions.--For purposes of this section--
                ``(1) Discriminatory foreign country.--The term
            `discriminatory foreign country' means any foreign country
            which has one or more unfair foreign taxes.
                ``(2) Foreign country.--The term `foreign country' 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.
                ``(3) Tax.--The term `tax' 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.
        ``(e) Regulations and Other Guidance.--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--
                ``(1) 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),
                ``(2) list the discriminatory foreign countries (and each
            such country's applicable date) in guidance, and update such
            guidance on a quarterly basis,
                ``(3) provide notice to Congress with respect to changes to
            the list under paragraph (2),
                ``(4) exercise the authority to provide exceptions under
            subsections (b)(1), (c)(4), and
                ``(5) prevent the application of subsection (a)(2)(D) from
            resulting in double counting of amounts for purposes of section
            59A(c)(4)(A)(ii).''.
        (b) Clerical Amendment.--The table of sections for subpart D of
    part II of subchapter N of chapter 1 is amended by adding at the end
    the following new item:

    ``Sec. 899. Enforcement of remedies against unfair foreign taxes.''.

    SEC. 112029. MODIFICATION OF TREATMENT OF SILENCERS.

        (a) In General.--Section 5845(a) is amended by striking ``(7) any
    silencer'' and all that follows through ``; and (8)'' and inserting
    ``and (7)''.
        (b) Transfer Tax.--Section 5811(a) is amended to read as follows:
        ``(a) Rate.--There shall be levied, collected, and paid on firearms
    transferred a tax at the rate of--
                ``(1) $5 for each firearm transferred in the case of a
            weapon classified as any other weapon under section 5845(e),
                ``(2) $0 for each firearm transferred in the case of a
            silencer (as defined in section 921 of title 18, United States
            Code), and
                ``(3) $200 for any other firearm transferred.''.
        (c) Making Tax.--Section 5821(a) is amended to read as follows:
        ``(a) Rate.--There shall be levied, collected, and paid upon the
    making of a firearm a tax at the rate of--
                ``(1) $0 for each silencer (as defined in section 921 of
            title 18, United States Code) made, and
                ``(2) $200 for any other firearm made.''.
        (d) Effective Date.--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.

    SEC. 112030. MODIFICATIONS TO DE MINIMIS ENTRY PRIVILEGE FOR COMMERCIAL
                  SHIPMENTS.

        (a) Civil Penalty.--
                (1) Additional penalty imposed.--Section 321 of the Tariff
            Act of 1930 (19 U.S.C. 1321) is amended by adding at the end
            the following new subsection:
        ``(c) 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.''.
                (2) Effective date.--The amendment made by paragraph (1)
            shall take effect 30 days after the date of the enactment of
            this Act.
        (b) Repeal of Commercial Shipment Exception.--
                (1) Repeal.--Section 321(a)(2)(B) of such Act (19 U.S.C.
            1321(a)(2)(B)) is amended by striking ``of this Act, or'' and
            all that follows through ``subdivision (2); and'' and inserting
            ``of this Act; and''.
                (2) Conforming repeal.--Subsection (c) of such section 321,
            as added by subsection (a) of this section, is repealed.
                (3) Effective date.--The amendments made by this subsection
            shall take effect on July 1, 2027.

    SEC. 112031. LIMITATION ON DRAWBACK OF TAXES PAID WITH RESPECT TO
                  SUBSTITUTED MERCHANDISE.

        Effective for claims filed on or after July 1, 2026, for purposes
    of drawback of internal revenue tax imposed under chapter 52 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.

    SEC. 112032. TREATMENT OF PAYMENTS FROM PARTNERSHIPS TO PARTNERS FOR
                  PROPERTY OR SERVICES.

        (a) In General.--Section 707(a)(2) is amended by striking ``Under
    regulations prescribed'' and inserting ``Except as provided''.
        (b) Effective Date.--The amendment made by this section shall apply
    to services performed, and property transferred, after the date of the
    enactment of this Act.
        (c) Rule of Construction.--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 section 707(a) 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.

           PART 2--REMOVING TAXPAYER BENEFITS FOR ILLEGAL IMMIGRANTS

    SEC. 112101. PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN
                  INDIVIDUALS.

        (a) In General.--Section 36B(e)(1) is amended by inserting ``or, in
    the case of aliens who are lawfully present, are not eligible aliens''
    after ``individuals who are not lawfully present''.
        (b) Eligible Aliens.--Section 36B(e)(2) is amended--
                (1) by striking ``For purposes of this section, an
            individual'' and inserting the following: ``For purposes of
            this section--
                        ``(A) In general.--An individual'', and
                (2) by adding at the end the following new subparagraph:
                        ``(B) Eligible aliens.--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--
                                ``(i) an alien who is lawfully admitted for
                            permanent residence under the Immigration and
                            Nationality Act (8 U.S.C. 1101 et seq.),
                                ``(ii) an alien who--
                                        ``(I) is a citizen or national of
                                    the Republic of Cuba,
                                        ``(II) is the beneficiary of an
                                    approved petition under section 203(a)
                                    of the Immigration and Nationality Act
                                    (8 U.S.C. 1153(a)),
                                        ``(III) meets all eligibility
                                    requirements for an immigrant visa but
                                    for whom such a visa is not immediately
                                    available,
                                        ``(IV) is not otherwise
                                    inadmissible under section 212(a) of
                                    such Act (8 U.S.C. 1182(a)), and
                                        ``(V) 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
                                    Communique 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
                                ``(iii) 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 (8 U.S.C.
                            1612(b)(2)(G)).''.
        (c) Conforming Amendments.--
                (1) Verification of information.--Section 1411 of the
            Patient Protection and Affordable Care Act (42 U.S.C. 18081) is
            amended--
                        (A) in subsection (a)--
                                (i) in paragraph (1), by striking ``and
                            section 36B(e) of the Internal Revenue Code of
                            1986''; and
                                (ii) in paragraph (2)--
                                        (I) in subparagraph (A), by
                                    striking ``and'' at the end;
                                        (II) in subparagraph (B), by adding
                                    ``and'' at the end; and
                                        (III) by adding at the end the
                                    following new subparagraph:
                        ``(C) 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);'';
                        (B) in subsection (b)(3), by adding at the end the
                    following new subparagraph:
                        ``(D) Immigration status.--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).''; and
                        (C) in subsection (c)(2)(B)(ii), by adding at the
                    end the following new subclause:
                                        ``(III) In the case of an
                                    individual described in clause (i)(I)
                                    with respect to whom a premium tax
                                    credit or reduced cost-sharing under
                                    section 36B 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).''.
                (2) Advance determinations.--Section 1412(d) of the Patient
            Protection and Affordable Care Act (42 U.S.C. 18082(d)) is
            amended by inserting before the period at the end the
            following: ``or, in the case of aliens who are lawfully
            present, are not eligible aliens (within the meaning of section
            36B(e)(2) of the Internal Revenue Code of 1986)''.
                (3) Cost-sharing reductions.--Section 1402(e) of the
            Patient Protection and Affordable Care Act (42 U.S.C. 18071(e))
            is amended--
                        (A) in the header, by inserting ``or Not Eligible
                    Aliens'' after ``Individuals Not Lawfully Present'';
                        (B) in paragraph (1), in the matter preceding
                    subparagraph (A), by inserting ``or, in the case of an
                    alien who is lawfully present, is not an eligible alien
                    (within the meaning of section 36B(e)(2) of the
                    Internal Revenue Code of 1986)'' after ``not lawfully
                    present''; and
                        (C) by amending paragraph (2) to read as follows:
                ``(2) Eligible aliens.--For purposes of this section, an
            individual shall be treated as an eligible alien (within the
            meaning of section 36B(e)(2) 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.''.
                (4) Basic health programs.--Section 1331(e)(1) of the
            Patient Protection and Affordable Care Act (42 U.S.C.
            18051(e)(1)) is amended by inserting before the period at the
            end the following: ``or, in the case of an alien who is
            lawfully present, an individual who is not an eligible alien
            (as defined in section 36B(e)(2) of the Internal Revenue Code
            of 1986''.
                (5) Effective date.--The amendments made by this subsection
            shall apply with respect to plan years beginning on or after
            January 1, 2027.
        (d) Clerical Amendments.--
                (1) The heading for section 36B(e) is amended by inserting
            ``and Not Eligible Aliens'' after ``Individuals Not Lawfully
            Present''.
                (2) The heading for section 36B(e)(2) is amended by
            inserting ``; eligible aliens'' after ``Lawfully present''.
        (e) Requirement to Maintain Minimum Essential Coverage.--Section
    5000A(d)(3) is amended by striking ``an alien lawfully present in the
    United States'' and inserting ``an eligible alien (within the meaning
    of section 36B(e)(2))''.
        (f) Regulations.--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.
        (g) Effective Date.--The amendments made by this section (other
    than the amendments made by subsection (c)) shall apply to taxable
    years beginning after December 31, 2026.

    SEC. 112102. DISALLOWING PREMIUM TAX CREDIT DURING PERIODS OF MEDICAID
                  INELIGIBILITY DUE TO ALIEN STATUS.

        (a) In General.--Section 36B(c)(1) is amended by striking
    subparagraph (B) and by redesignating subparagraphs (C), (D), and (E)
    as subparagraphs (B), (C), and (D), respectively.
        (b) Conforming Amendments.--
                (1) Section 36B(g)(4)(A) is amended by striking
            ``subsection (c)(1)(C)'' and inserting ``subsection
            (c)(1)(B)''.
                (2) Section 1331(e)(1)(B) of the Patient Protection and
            Affordable Care Act (42 U.S.C. 18051(e)(1)(B)) is amended by
            striking ``, or, in the case of'' and all that follows through
            ``such alien status''.
                (3) Section 1402(b) of such Act (42 U.S.C. 18071(b)) is
            amended by striking the second sentence.
        (c) Regulations.--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.
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

    SEC. 112103. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS.

        Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is
    amended by adding at the end the following new section:

    ``SEC. 1899C. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS.

        ``(a) In General.--Subject to subsection (b), an individual may be
    entitled to, or enrolled for, benefits under this title only if the
    individual is--
                ``(1) a citizen or national of the United States;
                ``(2) an alien who is lawfully admitted for permanent
            residence under the Immigration and Nationality Act;
                ``(3) an alien who--
                        ``(A) is a citizen or national of the Republic of
                    Cuba;
                        ``(B) is the beneficiary of an approved petition
                    under section 203(a) of the Immigration and Nationality
                    Act;
                        ``(C) meets all eligibility requirements for an
                    immigrant visa but for whom such a visa is not
                    immediately available;
                        ``(D) is not otherwise inadmissible under section
                    212(a) of such Act; and
                        ``(E) 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 Communique 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
                ``(4) 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.
        ``(b) Application to Individuals Currently Entitled to or Enrolled
    for Benefits.--
                ``(1) In general.--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.
                ``(2) Review by commissioner of social security.--
                        ``(A) In general.--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).
                        ``(B) Notice.--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.''.

    SEC. 112104. EXCISE TAX ON REMITTANCE TRANSFERS.

        (a) In General.--Chapter 36 is amended by inserting after
    subchapter B the following new subchapter:

                      ``Subchapter C--Remittance Transfers

    ``Sec. 4475. Imposition of tax.

    ``SEC. 4475. IMPOSITION OF TAX.

        ``(a) In General.--There is hereby imposed on any remittance
    transfer a tax equal to 3.5 percent of the amount of such transfer.
        ``(b) Payment of Tax.--
                ``(1) In general.--The tax imposed by this section with
            respect to any remittance transfer shall be paid by the sender
            with respect to such transfer.
                ``(2) Collection.--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.
                ``(3) Secondary liability.--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.
        ``(c) Exception for Remittance Transfers Sent by Citizens and
    Nationals of the United States Through Certain Providers.--
                ``(1) In general.--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.
                ``(2) Qualified remittance transfer provider.--For purposes
            of this subsection, the term `qualified remittance transfer
            provider' 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.
                ``(3) Verified united states sender.--For purposes of this
            subsection, the term `verified United States sender' 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).
        ``(d) Definitions.--For purposes of this section, the terms
    `remittance transfer', `remittance transfer provider', `designated
    recipient', and `sender' shall each have the respective meanings given
    such terms by section 920(g) of the Electronic Fund Transfer Act (15
    U.S.C. 1693o-1; relating to ``Remittance Transfers'').
        ``(e) Application of Anti-conduit Rules.--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.''.
        (b) Refundable Income Tax Credit Allowed to Citizens and Nationals
    of the United States for Excise Tax on Remittance Transfers.--Subpart C
    of part IV of subchapter A of chapter 1 is amended by inserting after
    section 36B the following new section:

    ``SEC. 36C. CREDIT FOR EXCISE TAX ON REMITTANCE TRANSFERS OF CITIZENS
                  AND NATIONALS OF THE UNITED STATES.

        ``(a) In General.--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.
        ``(b) Social Security Number Requirement.--
                ``(1) In general.--No credit shall be allowed under this
            section unless the taxpayer includes on the return of tax for
            the taxable year--
                        ``(A) the individual's social security number, and
                        ``(B) if the individual is married, the social
                    security number of such individuals's spouse.
                ``(2) Social security number.--For purposes of this
            subsection, the term `social security number' has the meaning
            given such term in section 24(h)(7).
                ``(3) Married individuals.--Rules similar to the rules of
            section 32(d) shall apply to this section.
        ``(c) Substantiation Requirements.--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--
                ``(1) was paid by the taxpayer, and
                ``(2) 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).
        ``(d) Definitions.--Any term used in this section which is also
    used in section 4475 shall have the meaning given such term in section
    4475.
        ``(e) Application of Anti-conduit Rules.--For rules providing for
    the application of the anti-conduit rules of section 7701(l) to
    remittance transfers, see section 4475(e).''.
        (c) Reporting by Remittance Transfer Providers.--
                (1) In general.--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:

    ``SEC. 6050BB. RETURNS RELATING TO REMITTANCE TRANSFERS.

        ``(a) In General.--Each remittance transfer provider shall make a
    return at such time as the Secretary may provide setting forth--
                ``(1) 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,
                ``(2) 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)--
                        ``(A) the name, address, and social security number
                    of the sender,
                        ``(B) the amount of tax paid by the sender under
                    section 4475(b)(1), and
                        ``(C) the amount of tax remitted by the remittance
                    transfer provider under section 4475(b)(2), and
                ``(3) in the case of any remittance transfer not included
            under paragraph (1) or (2)--
                        ``(A) the aggregate amount of tax paid under
                    section 4475(b)(1) with respect to such transfers, and
                        ``(B) the aggregate amount of tax remitted under
                    section 4475(b)(2) with respect to such transfers.
        ``(b) Statement to Be Furnished to Named Persons.--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--
                ``(1) the name and address of the information contact of
            the required reporting person, and
                ``(2) the information described in subsection (a)(2) which
            relates to such person.
        ``(c) Definitions.--Any term used in this section which is also
    used in section 4475 shall have the meaning given such term in such
    section.''.
                (2) Penalties.--Section 6724(d), as amended by the
            preceding provisions of this Act, is amended--
                        (A) in paragraph (1)(B), by striking ``or'' at the
                    end of clause (xxviii), by striking ``and'' at the end
                    of clause (xxix) and inserting ``or'', and by adding at
                    the end the following new clause:
                                ``(xxx) section 6050BB(a) (relating to
                            returns relating to remittance transfers),
                            and'', and
                        (B) in paragraph (2), by striking ``or'' at the end
                    of subparagraph (NN), by striking the period at the end
                    of subparagraph (OO) and inserting ``, or'', and by
                    inserting after subparagraph (OO) the following new
                    subparagraph:
                        ``(PP) section 6050BB(b) (relating to statements
                    relating to remittance transfers).''.
        (d) Conforming Amendments.--
                (1) Section 6211(b)(4)(A) is amended by inserting ``36C,''
            after ``36B,''.
                (2) Section 6213(g)(2), as amended by the preceding
            provisions of this Act, is amended by striking ``and'' at the
            end of subparagraph (Z), by the striking the period at the end
            of subparagraph (AA) and inserting ``, and'', and by inserting
            after subparagraph (AA) the following new subparagraph:
                        ``(BB) an omission of a correct social security
                    number under section 36C(b) to be included on a
                    return.''.
                (3) Section 1324(b)(2) of title 31, United States Code, is
            amended by inserting ``36C,'' after ``36B,''.
                (4) The table of sections for subpart C of part IV of
            subchapter A of chapter 1 is amended by inserting after the
            item relating to section 36B the following new item:

    ``Sec. 36C. Credit for excise tax on remittance transfers of citizens
                                and nationals of the United States.''.
                (5) The table of sections for subpart B of part III of
            subchapter A of chapter 61 is amended by adding at the end the
            following new item:

    ``Sec. 6050BB. Returns relating to remittance transfers.''.
                (6) The table of subchapters for chapter 36 is amended by
            inserting after the item relating to subchapter B the following
            new item:

                    ``subchapter c--remittance transfers''.

        (e) Effective Date.--
                (1) In general.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply to
            transfers made after December 31, 2025.
                (2) Tax credit.--The amendments made by subsection (b), and
            paragraphs (1) through (4) of subsection (d), shall apply to
            taxable years ending after December 31, 2025.

    SEC. 112105. SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN
                  OPPORTUNITY AND LIFETIME LEARNING CREDITS.

        (a) Social Security Number of Taxpayer Required.--Section 25A(g)(1)
    is amended to read as follows:
                ``(1) Identification requirement.--
                        ``(A) Social security number requirement.--No
                    credit shall be allowed under subsection (a) to a
                    taxpayer unless the taxpayer includes on the return of
                    tax for the taxable year--
                                ``(i) such individual's social security
                            number,
                                ``(ii) if the individual is married, the
                            social security number of such individual's
                            spouse, and
                                ``(iii) 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.
                        ``(B) Institution.--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.
                        ``(C) Social security number defined.--For purposes
                    of this paragraph, the term `social security number'
                    shall have the meaning given such term in section
                    24(h)(7).''.
        (b) Rules Related to Married Individuals.--Section 25A(g)(6) is
    amended to read as follows:
                ``(6) Rules related to married individuals.--Rules similar
            to the rules of section 32(d) shall apply to this section.''.
        (c) Omission Treated as Mathematical or Clerical Error.--Section
    6213(g)(2)(J) is amended by striking ``TIN'' and inserting ``social
    security number or employer identification number''.
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2025.

                   PART 3--PREVENTING FRAUD, WASTE, AND ABUSE

    SEC. 112201. REQUIRING EXCHANGE VERIFICATION OF ELIGIBILITY FOR HEALTH
                  PLAN.

        (a) In General.--Section 36B(c) is amended by adding at the end the
    following new paragraphs:
                ``(5) Exchange enrollment verification requirement.--
                        ``(A) In general.--The term `coverage month' 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--
                                ``(i) to enroll in the plan through the
                            Exchange,
                                ``(ii) for any advance payment under
                            section 1412 of the Patient Protection and
                            Affordable Care Act of the credit allowed under
                            this section, and
                                ``(iii) for any reduced cost-sharing under
                            section 1402 of such Act.
                        ``(B) Applicable enrollment information.--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)):
                                ``(i) Income.
                                ``(ii) Any immigration status.
                                ``(iii) Any health coverage status or
                            eligibility for coverage.
                                ``(iv) Place of residence.
                                ``(v) Family size.
                                ``(vi) 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).
                        ``(C) Verification of past months.--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.
                        ``(D) Exchange participation; coordination with
                    other procedures for determining eligibility.--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.
                ``(6) Exchange compliance with filing requirements.--The
            term `coverage month' 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.''.
        (b) Pre-enrollment Verification Process Required.--Section
    36B(c)(3)(A) is amended--
                (1) by striking ``health plan.--The term'' and inserting
            the following: ``health plan.--
                                ``(i) In general.--The term'', and
                (2) by adding at the end the following new clause:
                                ``(ii) Pre-enrollment verification process
                            required.--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.''.
        (c) Regulations.--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.
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years beginning after December 31, 2027.

    SEC. 112202. DISALLOWING PREMIUM TAX CREDIT IN CASE OF CERTAIN COVERAGE
                  ENROLLED IN DURING SPECIAL ENROLLMENT PERIOD.

        (a) In General.--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:
                                ``(iii) Exception in case of certain
                            special enrollment periods.--Such term shall
                            not include any plan enrolled in during a
                            special enrollment period provided for by an
                            Exchange--
                                        ``(I) 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
                                        ``(II) 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.''.
        (b) Regulations.--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.
        (c) Effective Date.--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.

    SEC. 112203. ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT OF
                  PREMIUM TAX CREDIT.

        (a) In General.--Section 36B(f)(2) is amended by striking
    subparagraph (B).
        (b) Conforming Amendments.--
                (1) Section 36B(f)(2) is amended by striking ``advance
            payments.--'' and all that follows through ``If the advance
            payments'' and inserting the following: ``advance payments.--If
            the advance payments''.
                (2) Section 35(g)(12)(B)(ii) is amended by striking ``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)'' and inserting ``then the amount
            determined under clause (i) shall be substituted for the amount
            determined under section 36B(f)(2)''.
        (c) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2025.

    SEC. 112204. IMPLEMENTING ARTIFICIAL INTELLIGENCE TOOLS FOR PURPOSES OF
                  REDUCING AND RECOUPING IMPROPER PAYMENTS UNDER MEDICARE.

        (a) In General.--Part E of title XVIII of the Social Security Act
    (42 U.S.C. 1395x et seq.), as amended by the preceding provisions of
    this Act, is amended by adding at the end the following new section:

    ``SEC. 1899D. IMPLEMENTING ARTIFICIAL INTELLIGENCE TOOLS FOR PURPOSES
                  OF REDUCING AND RECOUPING IMPROPER PAYMENTS.

        ``(a) In General.--Not later than January 1, 2027, the Secretary
    shall implement such artificial intelligence tools determined
    appropriate by the Secretary for purposes of--
                ``(1) reducing improper payments made under parts A and B;
            and
                ``(2) identifying any such improper payments so made.
        ``(b) Contracts.--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).
        ``(c) Recoupment.--The Secretary shall, to the extent practicable,
    recoup payments identified using the artificial intelligence tools
    implemented under subsection (a).
        ``(d) Report.--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--
                ``(1) 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;
                ``(2) the total dollar amount of improper payments recouped
            in the most recent year for which data is available; and
                ``(3) 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.''.
        (b) Implementation Funding.--
                (1) Federal hospital insurance trust fund.--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 (42 U.S.C. 1395i)
            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.
                (2) Federal supplementary medical insurance trust fund.--
            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 (42 U.S.C. 1395t) 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.

    SEC. 112205. EARNED INCOME TAX CREDIT REFORMS.

        (a) Earned Income Tax Credit Certification Program.--
                (1) Establishment of program.--
                        (A) In general.--Chapter 77 is amended by adding at
                    the end the following new section:

    ``SEC. 7531. EARNED INCOME TAX CREDIT CERTIFICATION PROGRAM.

        ``(a) In General.--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.
        ``(b) Application Requirements.--
                ``(1) In general.--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.
                ``(2) Time and manner of application.--Such application
            shall be made, and such information and supporting
            documentation shall be provided--
                        ``(A) in such manner as may be provided by the
                    Secretary for purposes of this section (including
                    establishing an on-line portal), and
                        ``(B) not later than the due date for the return of
                    tax for the taxable year or (if later) when the return
                    is filed.
                ``(3) Competing claims.--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.
        ``(c) Treatment of Credit Without Certification Under Program.--For
    taxable years beginning after December 31, 2027--
                ``(1) In general.--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--
                        ``(A) 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
                        ``(B) if the taxpayer fails to so obtain an EITC
                    certificate, such failure shall be treated--
                                ``(i) as an omission of information
                            required by section 32 with respect to such
                            child, and
                                ``(ii) as arising out of a mathematical or
                            clerical error and assessed according to
                            section 6213(b)(1).
                ``(2) Termination of certification.--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).
        ``(d) Transition Rules for Taxable Years Beginning Before 2028.--
                ``(1) In general.--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.
                ``(2) Subsequent taxable years beginning before 2028.--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--
                        ``(A) 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
                        ``(B) 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--
                                ``(i) as an omission of information
                            required by section 32 with respect to such
                            child, and
                                ``(ii) as arising out of a mathematical or
                            clerical error and assessed according to
                            section 6213(b)(1).
        ``(e) Qualifying Child.--For purposes of this section, the term
    `qualifying child' has the meaning given such term under section
    32(c)(3).
        ``(f) Rebuttal of Treatment.--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.
        ``(g) Restrictions on Taxpayers Who Improperly Use Program.--
                ``(1) In general.--A taxpayer shall not be permitted to
            apply for an EITC certificate under the program for any taxable
            year in the disallowance period.
                ``(2) Disallowance period.--For purposes of paragraph (1),
            the disallowance period is--
                        ``(A) 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)),
                        ``(B) 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
                        ``(C) any disallowance period with respect to the
                    taxpayer under section 32(k)(1).
        ``(h) Regulations.--The Secretary shall prescribe such rules as may
    be necessary or appropriate to carry out the program and purposes of
    this section, including--
                ``(1) a process for establishing alternating taxable year
            treatment of a child as a qualifying child under a custodial
            arrangement,
                ``(2) notwithstanding subsection (d)(2), a process for--
                        ``(A) 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
                        ``(B) allowing credit or refunds attributable to
                    such status,
                ``(3) a simplified process for re-certifying a child as a
            qualifying child only of the taxpayer for a taxable year, and
                ``(4) 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.''.
                        (B) Conforming amendment.--Section 32 amended by
                    adding at the end the following new subsection:
        ``(o) EITC Certificate With Respect to Qualifying Children.--For
    rules relating to EITC certificates with respect to qualifying children
    and duplicate claims for the credit allowed under this section, see
    section 7531.''.
                        (C) Clerical amendment.--The table of sections for
                    chapter 77 is amended by adding at the end the
                    following new item:

    ``Sec. 7531. Earned income tax credit certification program.''.
                (2) Penalties for improper use of eitc certificate
            program.--
                        (A) In general.--Part I of subchapter B of chapter
                    68 is amended by adding at the end the following new
                    section:

    ``SEC. 6720D. PENALTIES WITH RESPECT TO EITC CERTIFICATE PROGRAM.

        ``(a) Reckless or Intentional Disregard.--If--
                ``(1) any person makes a material misstatement or
            inaccurate representation in an application under section 7531
            for an EITC certificate, and
                ``(2) such misstatement or representation was due to
            reckless or intentional disregard of rules and regulations (but
            not due to fraud),
    such person shall pay a penalty of $100 for each EITC certificate with
    respect to which such misstatement or representation was made.
        ``(b) Fraud.--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.''.
                        (B) Clerical amendment.--The table of sections for
                    part I of subchapter B of chapter 68 is amended by
                    adding at the end the following new item:

    ``Sec. 6720D. Penalties with respect to EITC certificate program.''.
                (3) Effective date.--The amendments made by this subsection
            shall apply to taxable years beginning after December 31, 2024.
        (b) Task Force to Design a Private Data Bouncing System for
    Improvements to the Earned Income Tax Credit.--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:
                (1) Recommendations for improvement of the integrity of
            such administration.
                (2) The potential use of third-party payroll and
            consumption datasets to verify income.
                (3) The integration of automated databases to allow
            horizontal verification to reduce improper payments, fraud, and
            abuse.
        (c) Increased Earned Income Tax Credit for Purple Heart Recipients
    Whose Social Security Disability Benefits Are Terminated by Reason of
    Work Activity.--
                (1) In general.--Section 32, as amended by the preceding
            provisions of this Act, is amended by adding at the end the
            following new subsection:
        ``(p) Increase in Credit for Purple Heart Recipients Whose Social
    Security Disability Benefits Are Terminated by Reason of Work
    Activity.--
                ``(1) In general.--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.
                ``(2) Specified purple heart recipient.--For purposes of
            this subsection, the term `specified Purple Heart recipient'
            means any individual--
                        ``(A) who received the Purple Heart,
                        ``(B) who received disability insurance benefit
                    payments under section 223(a) of the Social Security
                    Act, and
                        ``(C) with respect to whom such disability
                    insurance benefit payments ceased to be payable by
                    reason of section 223(e)(1) of such Act.
                ``(3) Qualified benefit termination month.--For purposes of
            this subsection--
                        ``(A) In general.--The term `qualified benefit
                    termination month' 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).
                        ``(B) Exception for months for which benefits are
                    reinstated, etc.--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.
                ``(4) SSDI benefit substitution amount.--For purposes of
            this subsection, the term `SSDI benefit substitution amount'
            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).
                ``(5) Certain eitc limitations not applicable.--Subsections
            (a)(2), (d), (e), (f), and (i) shall not apply with respect to
            the increase under paragraph (1).''.
                (2) Effective date.--The amendment made by this subsection
            shall apply to taxable years ending after the date of the
            enactment of this Act.
        (d) Social Security Number Defined.--
                (1) In general.--Section 32(m) is amended by striking
            ``issued to an individual'' and all that follows and inserting
            ``(as defined section 24(h)(7))''.
                (2) Effective date.--The amendment made by this section
            shall apply to taxable years beginning after December 31, 2024.

    SEC. 112206. TASK FORCE ON THE TERMINATION OF DIRECT FILE.

        (a) Termination of Direct File.--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.
        (b) 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.--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.

    SEC. 112207. INCREASE IN PENALTIES FOR UNAUTHORIZED DISCLOSURES OF
                  TAXPAYER INFORMATION.

        (a) In General.--Paragraphs (1), (2), (3), (4), and (5) of section
    7213(a) are each amended by striking ``$5,000, or imprisonment of not
    more than 5 years'' and inserting ``$250,000, or imprisonment of not
    more than 10 years''.
        (b) Disclosures of Return Information of Multiple Taxpayers Treated
    as Multiple Violations.--Section 7213(a) is amended by adding at the
    end the following new paragraph:
                ``(6) Disclosures of return information of multiple
            taxpayers treated as multiple violations.--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.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to disclosures made after the date of the enactment of this Act.

    SEC. 112208. RESTRICTION ON REGULATION OF CONTINGENCY FEES WITH RESPECT
                  TO TAX RETURNS, ETC.

        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.

                       Subtitle D--Increase in Debt Limit

    SEC. 113001. MODIFICATION OF LIMITATION ON THE PUBLIC DEBT.

        The limitation under section 3101(b) of title 31, United States
    Code, as most recently increased by section 401(b) of Public Law 118-5
    (31 U.S.C. 3101 note), is increased by $4,000,000,000,000.

                Passed the House of Representatives May 22 (legislative day
          May 21), 2025.

                Attest:

                                                 KEVIN F. MCCUMBER,

                                                                     Clerk.
                                                           Calendar No. 107

    119th CONGRESS

      1st Session

                                    H. R. 1

    _______________________________________________________________________

                                     AN ACT

     To provide for reconciliation pursuant to title II of H. Con. Res. 14.

    _______________________________________________________________________

                                 June 28, 2025

                Read the second time and placed on the calendar