[Congressional Record Volume 171, Number 86 (Wednesday, May 21, 2025)]
[House]
[Pages H2235-H2358]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ONE BIG BEAUTIFUL BILL ACT
Mr. ARRINGTON. Mr. Speaker, pursuant to House Resolution 436, I call
up the bill (H.R. 1) to provide for reconciliation pursuant to title II
of H. Con. Res. 14, and ask for its immediate consideration in the
House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 436, an
amendment in the nature of a substitute consisting of the text of Rules
Committee Print 119-3, modified by the amendment printed in House
Report 119-113, is adopted and the bill, as amended, is considered
read.
The text of the bill, as amended, is as follows:
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. Enhancement of military intelligence programs.
Sec. 20013. Department of Defense oversight.
Sec. 20014. Military construction projects authorized.
Sec. 20015. Plan required.
Sec. 20016. 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.
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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 for minors.
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 the payment limit 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.
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 and local law enforcement presidential residence
protection.
Sec. 60005. 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.
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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.
Sec. 80122. National Petroleum Reserve-Alaska.
Part 4--Mining
Sec. 80131. Superior National Forest lands in Minnesota.
Sec. 80132. Ambler Road in Alaska.
Part 5--Coal
Sec. 80141. Coal leasing.
Sec. 80142. Future coal leasing.
Sec. 80143. Coal royalty.
Sec. 80144. Authorization to mine Federal minerals.
Part 6--NEPA
Sec. 80151. Project sponsor opt-in fees for environmental reviews.
Sec. 80152. Rescission relating to environmental and climate data
collection.
Part 7--Miscellaneous
Sec. 80161. Protest fees.
Part 8--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 9--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. Prohibition on the Implementation of the Rock Springs Field
Office, Wyoming, Resource Management Plan.
Sec. 80302. Prohibition on the Implementation of the Buffalo Field
Office, Wyoming, Resource Management Plan.
Sec. 80303. Prohibition on the Implementation of the Miles City Field
Office, Montana, Resource Management Plan.
Sec. 80304. Prohibition on the Implementation of the North Dakota
Resource Management Plan.
Sec. 80305. Prohibition on the Implementation of the Colorado River
Valley Field Office and Grand Junction Field Office
Resource Management Plans.
Sec. 80306. Rescission of Forest Service Funds.
Sec. 80307. Rescission of National Park Service and Bureau of Land
Management Funds.
Sec. 80308. Rescission of Bureau of Land Management and National Park
Service Funds.
Sec. 80309. Rescission of National Park Service Funds.
Sec. 80310. Celebrating America's 250th Anniversary.
Sec. 80311. Long-Term Contracts for the Forest Service.
Sec. 80312. Long-Term Contracts for the Bureau of Land Management.
Sec. 80313. Timber production for the Forest Service.
Sec. 80314. Timber Production for the Bureau of Land Management.
Sec. 80315. Bureau of Land Management Land in Nevada.
Sec. 80316. Forest Service Land in Nevada.
Sec. 80317. Federal land in Utah.
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.
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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. Repeal of excise tax on indoor tanning services.
Sec. 111107. Exclusion of interest on loans secured by rural or
agricultural real property.
Sec. 111108. Treatment of certain qualified sound recording
productions.
Sec. 111109. Modifications to low-income housing credit.
Sec. 111110. Increased gross receipts threshold for small manufacturing
businesses.
Sec. 111111. Global intangible low-taxed income determined without
regard to certain income derived from services performed
in the Virgin Islands.
Sec. 111112. Extension and modification of clean fuel production
credit.
Sec. 111113. 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. Reduction of excise tax on firearms 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. Enforcement provisions with respect to COVID-related
employee retention credits.
Sec. 112206. Earned income tax credit reforms.
Sec. 112207. Task force on the termination of Direct File.
Sec. 112208. Increase in penalties for unauthorized disclosures of
taxpayer information.
Sec. 112209. 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
[[Page H2239]]
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.--
(1) Standard utility allowance.--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''.
(2) Conforming amendments.--Section 2605(f)(2)(A) of the
Low-Income Home Energy Assistance Act is amended by inserting
``received by a household with an elderly or disabled
member'' before ``, consistent with section
5(e)(6)(C)(iv)(I)''.
(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.
[[Page H2240]]
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)--
[[Page H2241]]
(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.--
[[Page H2242]]
(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--
[[Page H2243]]
``(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
[[Page H2244]]
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).''.
[[Page H2245]]
(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
[[Page H2246]]
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.
(a) Biobased Markets Program.--Section 9002(k)(1) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8102(k)(1)) is amended by striking ``2024'' and inserting
``2031''.
(b) Bioenergy Program for Advanced Biofuels.--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''.
[[Page H2247]]
(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.
[[Page H2248]]
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 and intelligence;
(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;
[[Page H2249]]
(21) $500,000,000 for the development, procurement, and
integration of exportable low-cost cruise missiles;
(22) $124,000,000 for improvements to Test Resource
Management Center artificial intelligence capabilities;
(23) $145,000,000 for the development of artificial
intelligence to enable one-way attack unmanned aerial systems
and naval systems;
(24) $250,000,000 for the development of the Test Resource
Management Center digital test environment;
(25) $250,000,000 for the advancement of the artificial
intelligence ecosystem;
(26) $250,000,000 for the expansion of Cyber Command
artificial intelligence lines of effort;
(27) $250,000,000 for the acceleration of the Quantum
Benchmarking Initiative;
(28) $500,000,000 for the expansion and acceleration of
qualification activities and technical data management to
enhance competition in defense industrial base;
(29) $400,000,000 for the expansion of the defense
manufacturing technology program; and
(30) $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) $62,000,000 to convert Ohio-class submarine tubes to
accept additional missiles;
(9) $22,000,000 to enhance nuclear deterrence through
classified programs;
(10) $168,000,000 to accelerate the production of the
Survivable Airborne Operations Center program;
(11) $65,000,000 to accelerate the modernization of nuclear
command, control, and communications; and
(12) $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 intelligence, surveillance, and
reconnaissance capabilities for United States Africa Command;
(17) $30,000,000 for intelligence, 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.
[[Page H2250]]
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. ENHANCEMENT OF MILITARY INTELLIGENCE PROGRAMS.
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,
$2,000,000,000 for the enhancement of military intelligence
programs.
SEC. 20013. 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. 20014. 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. 20015. 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. 20016. 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
[[Page H2251]]
``(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).
[[Page H2252]]
``(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.
[[Page H2253]]
``(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
[[Page H2254]]
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.).
[[Page H2255]]
(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
[[Page H2256]]
``(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--
[[Page H2257]]
``(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,
[[Page H2258]]
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
[[Page H2259]]
``(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
[[Page H2260]]
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
[[Page H2261]]
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.
[[Page H2262]]
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.
[[Page H2263]]
(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;
[[Page H2264]]
``(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
[[Page H2265]]
(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,
[[Page H2266]]
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
[[Page H2267]]
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 (or any successor regulation) 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, or any successor regulation) 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.
[[Page H2268]]
``(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 (or a successor regulation)
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 Socal 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).
(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 (or a successor regulation) 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 (or a successor regulation) 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 (or a successor regulation).
(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
[[Page H2269]]
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 (or a
successor regulation).
(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
[[Page H2270]]
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.
[[Page H2271]]
(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
[[Page H2272]]
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 (or any successor regulation), 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 (or a successor regulation), 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 (or a successor regulation), 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 (or a successor regulation), 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 (or a successor
regulation) 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
(or any successor regulation) 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;
[[Page H2273]]
``(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 pregancy is a result of an act of rape or inces.''.
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
[[Page H2274]]
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 any successor regulation), 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, or a successor regulation;
``(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, or a successor regulation;
``(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
[[Page H2275]]
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.
[[Page H2276]]
``(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.
[[Page H2277]]
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--
[[Page H2278]]
(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. 60004. 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. 60005. 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
[[Page H2279]]
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
[[Page H2280]]
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.
[[Page H2281]]
(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
[[Page H2282]]
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.
[[Page H2283]]
(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.
[[Page H2284]]
(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
[[Page H2285]]
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
[[Page H2286]]
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
[[Page H2287]]
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.--
``(A) Lease terms and conditions.--A lease issued by the
Secretary under this section--
``(i) shall include any terms and conditions of the land
use plan that apply to the area of the lease; and
``(ii) shall not require any stipulations or mitigation
requirements not included in such land use plan.
``(B) Effect of revisions.--The revision of a land use plan
shall not prevent or delay the Secretary from offering land
for leasing under this section if the other requirements of
this section have been met, as determined by the
Secretary.'';
(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:
[[Page H2288]]
``(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;
[[Page H2289]]
``(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
[[Page H2290]]
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.
``SEC. 100. PURPOSE.
``The purpose of this Act is to require and facilitate a
leasing program in the National Petroleum Reserve in Alaska
for the expeditious exploration, development, and production
of petroleum to meet the energy needs of the Nation and the
world. In order to accomplish this purpose, the Secretary
shall, in consultation with the State of Alaska and the North
Slope Borough, Alaska, expedite administration of the Program
for domestic energy production and Federal revenue as
prescribed in section 107(d) of the Naval Petroleum Reserves
Production Act of 1976 (42 U.S.C. 6506a(d)).''.
(c) Required Lease Sales.--Section 107(d) of the Naval
Petroleum Reserves Production Act of 1976 (42 U.S.C.
6506a(d)) is amended--
(1) by striking ``First Lease Sale.--The first lease'' and
inserting ``Required Lease Sales.--
``(1) First lease sale.--The first lease''; and
(2) by adding at the end the following:
``(2) Subsequent lease sales.--
``(A) In general.--Subject to subparagraph (B), beginning
in the first full calendar year after the date of enactment
of this paragraph, the Secretary shall conduct an oil and gas
lease sale in the reserve not less frequently than once every
two years.
``(B) Acreages.--The Secretary shall offer not fewer than
4,000,000 acres in each lease sale conducted under
subparagraph (A).
``(C) Terms and stipulations for npr-a lease sales.--In
conducting lease sales under this paragraph, the Secretary
shall offer the same lease form as lease form AK-3130-1
(March 2018) and the same lease terms, economic conditions,
and stipulations as described in the NPR-A record of decision
published by the Bureau of Land Management entitled `National
Petroleum Reserve in Alaska Integrated Activity Plan Record
of Decision' (December 2020).''.
(d) Receipts.--Section 107(l) of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6506a(l)) is
amended--
(1) by striking ``All receipts from'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), all
receipts from''; and
(2) by adding at the end the following:
``(2) Percent share for fiscal year 2035 and thereafter.--
Beginning in fiscal year 2035, of the receipts described in
paragraph (1)--
``(A) 90 percent shall be paid to the State of Alaska; and
``(B) 10 percent shall be paid into the Treasury of the
United States.''.
(e) Facilitation.--Section 107(n)(2) of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6506a(n)(2)) is
amended to read as follows:
``(2) Subsequent lease sales.--The detailed environmental
study and assessments that have been conducted and identified
in the document titled `Notice of Availability of the
National Petroleum Reserve in Alaska Integrated Activity Plan
Final Environmental Impact Statement' (85 Fed. Reg. 38388
(June 26, 2020)) are deemed to fulfill the requirements of
the National Environmental Policy Act of 1969 with regard to
the oil and gas lease sales required by subsection (d)(2).''.
(f) Geophysical Surveys; Judicial Preclusion.--Section 107
of the Naval Petroleum Reserves Production Act of 1976 (42
U.S.C. 6506a) is amended by adding at the end the following:
``(q) Geophysical Surveys.--Not later than 30 days after
the date on which the Secretary of the Interior 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 National Petroleum Reserve in Alaska, the Secretary of
the Interior shall approve such application.
``(r) Judicial Preclusion.--
``(1) In general.--Except as provided in paragraph (2), no
court shall have jurisdiction to review any action taken by
the Secretary of the Interior or a State or municipal
government administrative agency to grant or issue a right-
of-way, easement, authorization, permit, verification,
biological opinion, incidental take statement, or other
approval for a lease issued under this Act, whether issued
prior to, on, or after the date of the enactment of this
subsection, and including any lawsuit or any other action
pending in a court as of the date of enactment of this
subsection.
``(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 of the
Interior to act in accordance with this Act 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 Act, 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--MINING
SEC. 80131. SUPERIOR NATIONAL FOREST LANDS IN MINNESOTA.
(a) Rescission.--The Public Land Order of the Bureau of
Land Management titled ``Public Land Order No. 7917 for
Withdrawal of Federal Lands; Cook, Lake, and Saint Louis
Counties, MN'' (88 Fed. Reg. 6308; published January 31,
2023) is hereby rescinded and shall have no force or effect.
(b) Reinstatement, Issuance, and Modification of Certain
Hardrock Mineral Leases.--
(1) Reinstatement and term modification.--
(A) Reinstatement.--Notwithstanding Reorganization Plan No.
3 of 1946 (5 U.S.C. App.), section 2478 of the Revised
Statutes (43 U.S.C. 1457c), the Act of June 30, 1950 (64
Stat. 311; 16 U.S.C. 508b), and the Act of March 4, 1917 (39
Stat. 1150; 16 U.S.C. 520), and not later than 5 calendar
days after the date of the enactment of this section, the
Secretary shall reinstate each covered lease.
(B) Lease term.--Upon reinstatement of each covered lease
under subparagraph (A)--
(i) each covered lease shall have an initial term of 20
years from the date of such reinstatement and a right to
successive renewals in accordance with paragraph (4);
(ii) the Secretary shall toll the initial term of a covered
lease during any period in which permitting activities of the
covered lease are delayed by legal or administrative
proceedings not initiated by the holder of the covered lease;
and
(iii) the Secretary shall extend the initial term of a
covered lease by a period equal to any tolling period under
clause (ii).
(C) Applicable terms.--Except as modified by this section,
all terms and conditions of each covered lease shall be in
accordance with the original terms of the covered lease.
(2) Revenue provisions.--
(A) Reinstatement fee.--Upon reinstatement of each covered
lease under paragraph (1)(A), the holder of a covered lease
shall pay to the Secretary a one-time fee of $100 per acre of
the covered lease.
(B) Supplemental rental.--In addition to the rental payment
specified in the reinstated covered lease, the holder of a
covered lease shall pay to the Secretary an annual
supplemental rental of $10 per acre of the covered lease
during years 6 through 10 of the initial term of the covered
lease.
(C) Revenue allocation.--All revenues collected under this
paragraph shall be deposited in the Treasury as miscellaneous
receipts.
(3) Grant of preference right hardrock mineral lease.--
(A) Congressional grant.--Notwithstanding Reorganization
Plan No. 3 of 1946 (5 U.S.C. App.), section 2478 of the
Revised Statutes (43 U.S.C. 1457c), the Act of June 30, 1950
(64 Stat. 311; 16 U.S.C. 508b), and the Act of March 4, 1917
(39 Stat. 1150; 16 U.S.C. 520), and in recognition of the
valid existing rights created through the finding of a
valuable mineral deposit as determined by the issuance of a
Notice of Preliminary Valuable Deposit Determination from the
Bureau of Land Management, Congress hereby grants to any
holder of a Notice of Preliminary Valuable Deposit
Determination issued between January 20, 2017, and January
20, 2021, a preference right hardrock mineral lease subject
to the terms described in this paragraph.
(B) Lease terms.--Each preference right hardrock mineral
lease granted under subparagraph (A) shall--
[[Page H2291]]
(i) have an initial term of 20 years from the date of such
grant and a right to successive renewals in accordance with
paragraph (4);
(ii) except as provided in clause (iv), be subject to the
same terms and conditions as adjacent covered leases, as
modified by this section;
(iii) be deemed part of the unified mining operation with
adjacent covered leases for purposes of mine planning and
operations; and
(iv) not be required to meet the diligence requirements of
adjacent covered leases until the date on which the first
term of the preference right hardrock mineral lease after the
lease is renewed under paragraph (4) begins.
(C) Revenue provisions.--
(i) In general.--Upon the grant of each preference right
hardrock mineral lease under subparagraph (A), the holder of
each lease shall pay to the Secretary--
(I) a one-time issuance fee of $250 per acre of the
preference right hardrock mineral lease;
(II) an annual rental payment of $1 per acre of the
preference right hardrock mineral lease per year; and
(III) a production royalty in accordance with the terms and
conditions described in subparagraph (B)(ii).
(ii) Deposit of amounts.--Amounts collected under this
subparagraph shall be deposited in the Treasury as
miscellaneous receipts.
(4) Renewal provisions.--
(A) Renewal qualification.--If, during the last 2 years of
each initial or renewal term of a lease reinstated, granted,
or renewed under this subsection, the holder of the lease
requests renewal, the Secretary shall renew the lease in
accordance with this paragraph.
(B) Renewal process.--
(i) In general.--Not later than 90 days before the date on
which the term of a lease for which the holder of the lease
requests renewal under subparagraph (A) ends, the holder of
the lease shall pay to the Secretary a renewal fee of $100
per acre of the lease.
(ii) Renewal required.--Upon receipt of a renewal request
under subparagraph (A) and the renewal fee required under
clause (i) of this subparagraph, the Secretary shall renew
the lease that is the subject of the renewal request for an
additional 10-year term.
(C) Renewal conditions.--
(i) In general.--
(I) Mine plan of operations not required during initial
term.--Approval of a mine plan of operations is not required
during the initial term of a lease reinstated or granted
under this subsection.
(II) Minimum production requirements.--Minimum production
requirements as described in adjacent covered leases shall
begin with respect to a lease reinstated or granted under
this subsection on the date that is 5 years after the
approval of a mine plan of operations for such lease.
(ii) Annual rental payments.--The annual rental payment for
a lease renewed under this subsection shall be $2 per acre
more than the annual rental payment of such lease during the
preceding term of such lease.
(5) Judicial review.--
(A) In general.--The reinstatement, modification, or grant
of a lease, or a combination thereof, under this section is
not subject to judicial review.
(B) Exception.--Notwithstanding subparagraph (A), the
holder of a lease reinstated, modified, or granted under this
subsection may seek review of an alleged failure by the
Secretary to act in accordance with this section.
(6) Definitions.--In this section:
(A) Covered lease.--The term ``covered lease'' means a
hardrock mineral lease--
(i) located within the Superior National Forest in the
State of Minnesota;
(ii) issued or renewed in between January 20, 2017, and
January 19, 2021; and
(iii) cancelled or otherwise rescinded between January 20,
2021, and January 20, 2025.
(B) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
PART 5--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 6--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
[[Page H2292]]
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 7--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 8--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
[[Page H2293]]
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 9--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 B ((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.
[[Page H2294]]
(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. 80306. 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. 80307. 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. 80308. 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. 80309. 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. 80310. 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. 80311. 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. 80312. 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
[[Page H2295]]
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. 80313. 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. 80314. 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
[[Page H2296]]
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
[[Page H2297]]
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
[[Page H2298]]
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.
[[Page H2299]]
``(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
[[Page H2300]]
(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.''.
[[Page H2301]]
(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.
[[Page H2302]]
``(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:
[[Page H2303]]
``(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.
[[Page H2304]]
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
[[Page H2305]]
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
[[Page H2306]]
(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
[[Page H2307]]
``(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),
[[Page H2308]]
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
[[Page H2309]]
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)
[[Page H2310]]
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.
[[Page H2311]]
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
[[Page H2312]]
(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,
[[Page H2313]]
(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:
[[Page H2314]]
``(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
[[Page H2315]]
``(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
[[Page H2316]]
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. 111107. 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
[[Page H2317]]
``(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. 111108. 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. 111109. 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
[[Page H2318]]
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. 111110. 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. 111111. 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. 111112. 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. 111113. 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
[[Page H2319]]
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
[[Page H2320]]
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.''.
(d) 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
[[Page H2321]]
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), and
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)).
[[Page H2322]]
``(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 Date.--
(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--
[[Page H2323]]
``(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).
[[Page H2324]]
``(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--
[[Page H2325]]
``(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
[[Page H2326]]
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
[[Page H2327]]
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.
[[Page H2328]]
``(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
[[Page H2329]]
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,
[[Page H2330]]
``(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
[[Page H2331]]
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. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID-
RELATED EMPLOYEE RETENTION CREDITS.
(a) Increase in Assessable Penalty on COVID-ERTC Promoters
for Aiding and Abetting Understatements of Tax Liability.--
(1) In general.--If any COVID-ERTC promoter is subject to
penalty under section 6701(a) of the Internal Revenue Code of
1986 with respect to any COVID-ERTC document, notwithstanding
paragraphs (1) and (2) of section 6701(b) of such Code, the
amount of the penalty imposed under such section 6701(a)
shall be the greater of--
(A) $200,000 ($10,000, in the case of a natural person), or
(B) 75 percent of the gross income derived (or to be
derived) by such promoter with respect to the aid,
assistance, or advice referred to in section 6701(a)(1) of
such Code with respect to such document.
(2) No inference.--Paragraph (1) shall not be construed to
create any inference with respect to the proper application
of the knowledge requirement of section 6701(a)(3) of the
Internal Revenue Code of 1986.
(b) Failure to Comply With Due Diligence Requirements
Treated as Knowledge for Purposes of Assessable Penalty for
Aiding and Abetting Understatement of Tax Liability.--In the
case of any COVID-ERTC promoter, the knowledge requirement of
section 6701(a)(3) of the Internal Revenue Code of 1986 shall
be treated as satisfied with respect to any COVID-ERTC
document with respect to which such promoter provided aid,
assistance, or advice, if such promoter fails to comply with
the due diligence requirements referred to in subsection
(c)(1).
(c) Assessable Penalty for Failure to Comply With Due
Diligence Requirements.--
(1) In general.--Any COVID-ERTC promoter which provides
aid, assistance, or advice with respect to any COVID-ERTC
document and which fails to comply with due diligence
requirements imposed by the Secretary with respect to
determining eligibility for, or the amount of, any COVID-
related employee retention tax credit, shall pay a penalty of
$1,000 for each such failure.
(2) Due diligence requirements.--Except as otherwise
provided by the Secretary, the due diligence requirements
referred to in paragraph (1) shall be similar to the due
diligence requirements imposed under section 6695(g) of the
Internal Revenue Code of 1986.
(3) Restriction to documents used in connection with
returns or claims for refund.--Paragraph (1) shall not apply
with respect to any COVID-ERTC document unless such document
constitutes, or relates to, a return or claim for refund.
(4) Treatment as assessable penalty, etc.--For purposes of
the Internal Revenue Code of 1986, the penalty imposed under
paragraph (1) shall be treated in the same manner as a
penalty imposed under section 6695(g) of such Code.
(5) Secretary.--For purposes of this subsection, the term
``Secretary'' means the Secretary of the Treasury or the
Secretary's delegate.
(d) Assessable Penalties for Failure to Disclose
Information, Maintain Client Lists, etc.--For purposes of
sections 6111, 6112, 6707 and 6708 of the Internal Revenue
Code of 1986--
(1) any COVID-related employee retention tax credit
(whether or not the taxpayer claims such COVID-related
employee retention tax credit) shall be treated as a listed
transaction (and as a reportable transaction) with respect to
any COVID-ERTC promoter if such promoter provides any aid,
assistance, or advice with respect to any COVID-ERTC document
relating to such COVID-related employee retention tax credit,
and
(2) such COVID-ERTC promoter shall be treated as a material
advisor with respect to such transaction.
(e) COVID-ERTC Promoter.--For purposes of this section--
(1) In general.--The term ``COVID-ERTC promoter'' means,
with respect to any COVID-ERTC document, any person which
provides aid, assistance, or advice with respect to such
document if--
(A) such person charges or receives a fee for such aid,
assistance, or advice which is based on the amount of the
refund or credit with respect to such document and, with
respect to such person's taxable year in which such person
provided such assistance or the preceding taxable year, the
aggregate gross receipts of such person for aid, assistance,
and advice with respect to all COVID-ERTC documents exceeds
20 percent of the gross receipts of such person for such
taxable year, or
(B) with respect to such person's taxable year in which
such person provided such assistance or the preceding taxable
year--
(i) the aggregate gross receipts of such person for aid,
assistance, and advice with respect to all COVID-ERTC
documents exceeds 50 percent of the gross receipts of such
person for such taxable year, or
(ii) both--
(I) such aggregate gross receipts exceeds 20 percent of the
gross receipts of such person for such taxable year, and
(II) the aggregate gross receipts of such person for aid,
assistance, and advice with respect to all COVID-ERTC
documents (determined after application of paragraph (3))
exceeds $500,000.
(2) Exception for certified professional employer
organizations.--The term ``COVID-ERTC promoter'' shall not
include a certified professional employer organization (as
defined in section 7705 of the Internal Revenue Code of
1986).
(3) Aggregation rule.--For purposes of paragraph
(1)(B)(ii)(II), all persons treated as a single employer
under subsection (a) or (b) of section 52 of the Internal
Revenue Code of 1986, or subsection (m) or (o) of section 414
of such Code, shall be treated as 1 person.
(4) Short taxable years.--In the case of any taxable year
of less than 12 months, paragraph (1) shall be applied with
respect to the calendar year in which such taxable year
begins (in addition to applying to such taxable year).
(f) COVID-ERTC Document.--For purposes of this section, the
term ``COVID-ERTC document'' means any return, affidavit,
claim, or other document related to any COVID-related
employee retention tax credit, including any document related
to eligibility for, or the calculation or determination of
any amount directly related to any COVID-related employee
retention tax credit.
(g) COVID-related Employee Retention Tax Credit.--For
purposes of this section, the term ``COVID-related employee
retention tax credit'' means--
(1) any credit, or advance payment, under section 3134 of
the Internal Revenue Code of 1986, and
(2) any credit, or advance payment, under section 2301 of
the CARES Act.
(h) Limitation on Credit and Refund of COVID-related
Employee Retention Tax Credits.--Notwithstanding section 6511
of the
[[Page H2332]]
Internal Revenue Code of 1986, no credit or refund of any
COVID-related employee retention tax credit shall be allowed
or made after the date of the enactment of this Act, unless a
claim for such credit or refund is filed by the taxpayer on
or before January 31, 2024.
(i) Amendments to Extend Limitation on Assessment.--
(1) In general.--Section 3134(l) is amended to read as
follows:
``(l) Extension of Limitation on Assessment.--
``(1) In general.--Notwithstanding section 6501, the
limitation on the time period for the assessment of any
amount attributable to a credit claimed under this section
shall not expire before the date that is 6 years after the
latest of--
``(A) the date on which the original return which includes
the calendar quarter with respect to which such credit is
determined is filed,
``(B) the date on which such return is treated as filed
under section 6501(b)(2), or
``(C) the date on which the claim for credit or refund with
respect to such credit is made.
``(2) Deduction for wages taken into account in determining
improperly claimed credit.--
``(A) In general.--Notwithstanding section 6511, in the
case of an assessment attributable to a credit claimed under
this section, the limitation on the time period for credit or
refund of any amount attributable to a deduction for
improperly claimed ERTC wages shall not expire before the
time period for such assessment expires under paragraph (1).
``(B) Improperly claimed ertc wages.--For purposes of this
paragraph, the term `improperly claimed ERTC wages' means,
with respect to an assessment attributable to a credit
claimed under this section, the wages with respect to which a
deduction would not have been allowed if the portion of the
credit to which such assessment relates had been properly
claimed.''.
(2) Application to cares act credit.--Section 2301 of the
CARES Act is amended by adding at the end the following new
subsection:
``(o) Extension of Limitation on Assessment.--
``(1) In general.--Notwithstanding section 6501 of the
Internal Revenue Code of 1986, the limitation on the time
period for the assessment of any amount attributable to a
credit claimed under this section shall not expire before the
date that is 6 years after the latest of--
``(A) the date on which the original return which includes
the calendar quarter with respect to which such credit is
determined is filed,
``(B) the date on which such return is treated as filed
under section 6501(b)(2) of such Code, or
``(C) the date on which the claim for credit or refund with
respect to such credit is made.
``(2) Deduction for wages taken into account in determining
improperly claimed credit.--
``(A) In general.--Notwithstanding section 6511 of such
Code, in the case of an assessment attributable to a credit
claimed under this section, the limitation on the time period
for credit or refund of any amount attributable to a
deduction for improperly claimed ERTC wages shall not expire
before the time period for such assessment expires under
paragraph (1).
``(B) Improperly claimed ertc wages.--For purposes of this
paragraph, the term `improperly claimed ERTC wages' means,
with respect to an assessment attributable to a credit
claimed under this section, the wages with respect to which a
deduction would not have been allowed if the portion of the
credit to which such assessment relates had been properly
claimed.''.
(j) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the provisions of this section shall apply to
aid, assistance, and advice provided after March 12, 2020.
(2) Due diligence requirements.--Subsections (b) and (c)
shall apply to aid, assistance, and advice provided after the
date of the enactment of this Act.
(3) Limitation on credit and refund of covid-related
employee retention tax credits.--Subsection (h) shall apply
to credits and refunds allowed or made after the date of the
enactment of this Act.
(4) Amendments to extend limitation on assessment.--The
amendments made by subsection (i) shall apply to assessments
made after the date of the enactment of this Act.
(k) Transition Rule With Respect to Requirements to
Disclose Information, Maintain Client Lists, etc.--Any return
under section 6111 of the Internal Revenue Code of 1986, or
list under section 6112 of such Code, required by reason of
subsection (d) of this section to be filed or maintained,
respectively, with respect to any aid, assistance, or advice
provided by a COVID-ERTC promoter with respect to a COVID-
ERTC document before the date of the enactment of this Act,
shall not be required to be so filed or maintained (with
respect to such aid, assistance or advice) before the date
which is 90 days after the date of the enactment of this Act.
(l) Provisions Not to Be Construed to Create Negative
Inferences.--
(1) No inference with respect to application of knowledge
requirement to pre-enactment conduct of covid-ertc promoters,
etc.--Subsection (b) shall not be construed to create any
inference with respect to the proper application of section
6701(a)(3) of the Internal Revenue Code of 1986 with respect
to any aid, assistance, or advice provided by any COVID-ERTC
promoter on or before the date of the enactment of this Act
(or with respect to any other aid, assistance, or advice to
which such subsection does not apply).
(2) Requirements to disclose information, maintain client
lists, etc.--Subsections (d) and (k) shall not be construed
to create any inference with respect to whether any COVID-
related employee retention tax credit is (without regard to
subsection (d)) a listed transaction (or reportable
transaction) with respect to any COVID-ERTC promoter; and,
for purposes of subsection (k), a return or list shall not be
treated as required (with respect to such aid, assistance, or
advice) by reason of subsection (d) if such return or list
would be so required without regard to subsection (d).
(m) Regulations.--The Secretary (as defined in subsection
(c)(5)) shall issue such regulations or other guidance as may
be necessary or appropriate to carry out the purposes of this
section (and the amendments made by this section).
SEC. 112206. 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).
[[Page H2333]]
``(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. 112207. 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. 112208. 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. 112209. 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.
[[Page H2334]]
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.
The SPEAKER pro tempore (Mr. Simpson). The bill, as amended, shall be
debatable for 2 hours equally divided among and controlled by the chair
and ranking minority member of the Committee on the Budget or their
respective designees and the chair and ranking minority member of the
Committee on Ways and Means or their respective designees.
The gentleman from Texas (Mr. Arrington), the gentleman from
Pennsylvania (Mr. Boyle), the gentleman from Missouri (Mr. Smith), and
the gentleman from Massachusetts (Mr. Neal) each will control 30
minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. ARRINGTON. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and include extraneous material on H.R. 1.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. ARRINGTON. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, for the last 4 years, the American people have suffered
one self-inflicted crisis after another--from the chaos at our southern
border, to our crime ridden streets, to a cost-of-living crisis that
decimated working families from sea to shining sea--leaving Americans
weaker, our country more divided, and more vulnerable than it has been
in generations.
Mr. Speaker, lest we forget how we got here and why this moment is so
important and so consequential in the life of our country. Let's
reflect on the recent history.
Under the leadership of Biden-Harris and congressional Democrats, our
Federal Government failed to enforce the laws of our land and
unilaterally surrendered our sovereign border to terrorist drug
cartels.
On top of that, our military mission was reduced from warfighter
readiness to ideological indoctrination. We lost the confidence of our
allies, the respect of our enemies, and America's influence on the
world stage.
Unbridled spending and failed fiscal policies sent our country's
economy into a tailspin. Trillions in deficit spending, trillions more
in regulations, cradle-to-grave welfare without work, and an all-out
assault on American energy independence wreaked havoc on our economy
and created the worst inflation crisis in 40 years.
In November, the American people gave President Trump a historic
mandate and unified Republican leadership in Congress to reverse course
on these failed policies and their disastrous consequences.
That is exactly what this bill does, Mr. Speaker.
The One Big Beautiful Bill Act delivers:
The greatest single investment in border security and national
defense.
The largest tax cuts for families and small businesses.
The most significant commitment to unlocking America's energy
resources.
The largest reduction in spending in the history of the United States
by two-fold.
However, in an attempt to derail our efforts, Mr. Speaker, you can be
sure of this: Our Democratic colleagues will use their tired, old
tactics of fear-mongering and false claims.
Mr. Speaker, they would like to lead you to believe that this
reconciliation bill is a ``tax cut for the rich on the backs of the
poor.'' Their narrative throughout this process has not only been
misleading, Mr. Speaker, and completely untrue, it preys on the fears
of our Nation's most vulnerable.
Here is the truth: The 2017 tax cuts lowered tax rates for every
American household at every income level with the lower income families
benefiting the most while actually increasing the amount of taxes paid
at the top 1 percent.
Mr. Speaker, $3 out of every $4 in the Trump tax cuts didn't go to
corporations. They went to individuals.
Workers experienced a record 25-year wage increase. Families received
an additional $5,000 in median household income, and income for the
bottom 50 percent grew three times faster than the top 1 percent.
As a result, Mr. Speaker, a record 6 million Americans were lifted
out of poverty.
This won't stop our Democrat colleagues from scaring you, Mr.
Speaker, with fallacious statements that children will go without food,
seniors will be stranded without healthcare, and the disabled will be
left to die in the streets.
All of this is just a cover for what they really want to do. They
want to protect healthcare and welfare at any cost for illegal
immigrants at the expense of hardworking taxpayers and our--our--
citizens who depend on them.
Crazily enough, Mr. Speaker, they also want to abandon the
commonsense, Clinton-era work requirements that reduced government
dependency by 80 percent. Instead, they would trap millions of people
in poverty and rob them of the dignity of work.
By the overwhelming results of this last election, it is abundantly
clear that the American people see through this too, and they have
totally rejected the Democrats' radical agenda.
Their message to Washington was clear, Mr. Speaker. They want
competent leaders, commonsense policies, and a commitment from all of
us to put America and Americans first.
Now let's give the people what they voted for.
Mr. Speaker, I reserve the balance of my time.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, by my calculation, I have now been up 43 of the last 45
hours, and I am not quitting yet. We are not quitting yet. That is
because the stakes are just too damn high.
This is one of the most significant pieces of legislation we will
ever vote on. This bill will bring about the greatest loss of
healthcare in American history.
{time} 0300
More than 6 million Americans who are currently on the Affordable
Care Act will lose their health insurance if this Republican bill
becomes law. More than 7 million Americans currently on Medicaid will
lose their healthcare if this Republican bill becomes law. In fact, in
total, 13.7 million Americans will lose their healthcare, according to
the nonpartisan CBO.
That is bad enough, but then, late last night, we also got
confirmation from CBO that something else is in this bill: over $500
billion worth of cuts to Medicare.
All told, given the cuts to the ACA, the cuts to Medicaid, and the
cuts to Medicare, it is the largest loss of healthcare in American
history as a result of this bill. Not even during the Great Depression
did so many people lose their healthcare as will lose it in this bill.
There are even more cuts beyond that: cuts to nutrition assistance
programs, cuts to Head Start, cuts to other education programs. The
list goes on and on. Why? To help pay for over $5 trillion worth of tax
cuts, most of which go to the top 1 percent.
As draconian as these cuts are, they actually don't even come close
to paying for the size of the tax cuts.
How is the rest subsidized? With more debt financing, so much so that
we have finally seen for the first time ever the Moody's Credit Agency
on Friday downgrade the quality of the credit of the United States.
Today, we saw more market churn. Markets are worried. Now, most
ordinary Americans, most people I call neighbors and friends back home
in Northeast Philly, a very working-class and middle-class place, most
people I know aren't paying attention to credit agencies and what Wall
Street is doing, but it will affect interest rates. In fact, it already
is.
Mortgage rates have gone back up over 7 percent and are set to rise
by more. It is not just mortgage rates but auto loan rates and the rate
that your credit card company charges.
At a time of increasing unaffordability in America, this bill doesn't
make the situation better. It makes it far, far worse.
Mr. Speaker, this is not the kind of bill that is worthy of the
Congress of
[[Page H2335]]
the United States. This is class warfare. It makes the poor poorer, the
rich richer, and the middle class left behind.
Again, these aren't Democratic talking points. These aren't coming
from progressive organizations. Last night, the nonpartisan
Congressional Budget Office released the distribution tables in terms
of who will get what from this tax bill. They found the bottom 10
percent will be 4 percent poorer in household wealth under this bill,
with most of the benefits going to the top 10 percent of Americans. Of
that top 10 percent, of course, it is the top 1 percent that will get
the most benefit of all.
Robbing the poor to reward the rich is wrong, bad economics, and, as
one Republican Senator called it, morally wrong.
Mr. Speaker, I reserve the balance of my time.
Mr. ARRINGTON. Mr. Speaker, just to be clear, the CBO doesn't say
economic benefits. It talks about Federal resources. That letter
actually affirms the success of our bill.
Because of reasonable, commonsense work requirements and because of
prohibitions on illegal immigrants getting taxpayer-funded social
services, we will actually have people moving up and out of the welfare
trap. We won't have people siphoning off money who are not eligible.
That is success--not to them, but success to my Republican
colleagues.
Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania
(Mr. Thompson), my good friend from the Keystone State and the chair of
the Agriculture Committee.
Mr. THOMPSON of Pennsylvania. Mr. Speaker, I rise in support of the
One Big Beautiful Bill Act that will halt the largest tax increase on
American families, bolster our hardworking farmers and rural
communities, and give President Trump the tools he needs to make
America safe again.
The Agriculture Committee was tasked with $230 billion in net deficit
reduction. I am proud to say that we exceeded that instruction. We
achieved these savings for America's taxpayers by restoring integrity
to the SNAP program, reinforcing work, rooting out waste, and ending
the unchecked overreach by States and the executive branch that has
driven costs through the roof.
SNAP is the only State-administered welfare program that does not
have a cost-share component. While the Federal Government funds 100
percent of the benefit, States are tasked with operating it. The only
problem is that they aren't operating it well.
In 2023 alone, over $13 billion in improper payments were made. That
is not just a slap in the face of taxpayers but of the needy families
who rely on SNAP, as well.
We don't just stop at restoring the SNAP program to its original
intent. We are also delivering big wins for rural America by shoring up
the safety net for farmers and ranchers and providing critical tax
relief.
The One Big Beautiful Bill Act makes permanent and expands the Trump
tax cuts. It also prevents the death tax from hitting over 2 million
family farms.
It locks in the small business deduction, helping 98 percent of
American farms stay afloat. It expands immediate expensing so farmers
can expense the tools that they use today to secure the harvests of
tomorrow. It protects domestic biofuels from being crowded out by
Chinese imports. It lowers the cost of borrowing for our farmers hit by
Biden's sky-high interest rates. It reduces regulatory burdens on small
farmers hiring seasonal workers.
In short, this bill secures the safety net our farmers deserve and
delivers to SNAP the accountability taxpayers demand.
America's farmers, ranchers, and rural communities sent us here to
fight for them, and the one big, beautiful bill delivers on that
mandate.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I remind my friend that this
bill will kick 404,000 people in our State of Pennsylvania off their
health insurance.
Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr.
Doggett), the ranking member of the Health Subcommittee on the Ways and
Means Committee.
Mr. DOGGETT. Mr. Speaker, breaking yet another promise, Republicans
are cutting Medicare by $500 billion.
On October 1 of this year, every Medicare healthcare provider will
see a 4 percent cut, and that will occur year after year as seniors try
to find someone who will accept Medicare.
On January 1, millions of Americans who rely on the Affordable Care
Act will lose their access to a family physician. Medicaid for those in
nursing homes and for half the babies born in my hometown of Austin is
cut. Almost 14 million Americans will lose their access to healthcare.
The new Trump school voucher sabotage plan atop State vouchers
incentivizes removing students from public schools. Meanwhile, our
national debt, soaring by trillions from Republicans who talk fiscal
responsibility but serve their cult leader, the deficit hawks have
become chicken hawks tonight in submission to Trump, the self-described
king of debt, all to reward billionaires with even more tax breaks.
Mr. ARRINGTON. Mr. Speaker, I yield 2 minutes to the gentleman from
Arkansas (Mr. Hill), the chairman of the House Committee on Financial
Services.
Mr. HILL of Arkansas. Mr. Speaker, I rise tonight in support of this
reconciliation effort, and I thank my friend from west Texas, the home
of national security, for supporting this bill and working hard to
bring it to fruition, bringing it to the House floor.
Last month, the House Financial Services Committee completed our work
assigned to us under the Budget Committee's reconciliation instruction.
The resolution asked us to decrease the deficit by $1 billion during
the planning period of 10 years. The Financial Services Committee
exceeded that objective. We saved for the American taxpayers by cutting
the deficit in our plan by $5.2 billion in savings.
During the markup, we spent 9 hours debating and considering 40
amendments from our friends on the other side of the aisle. After this
exhaustive process, we favorably reported the Financial Services
Committee's print to fulfill our obligations under this bill.
{time} 0310
Mr. Speaker, we can't lose sight of the reason that we are here
tonight on this House floor. In 2024, the American people voted for
fiscal responsibility and real change.
Our country is currently $37 trillion in debt, paying billions of
dollars in interest each day on that debt. Congress must act. Today, we
start that process. For too long the government spending has been a
one-way road in the wrong direction.
I am proud of the good work of the Financial Services Committee in
doing our part to reduce this deficit.
Mr. Speaker, I ask all my colleagues to support this bill.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I would remind my friend from
Arkansas this bill would kick 131,000 people in Arkansas off their
health insurance.
Mr. Speaker, I yield 1 minute to the gentleman from the Commonwealth
of Virginia (Mr. Scott), the distinguished ranking member of the
Education and Workforce Committee and also a member of the Budget
Committee.
Mr. SCOTT of Virginia. Mr. Speaker, it is hard to take my colleagues
on the other side of the aisle seriously when they give speech after
speech after speech complaining about the deficit and then support this
reconciliation bill that adds trillions of dollars to the national
debt.
The bill not only increases the deficit, but also 4 million students
who will lose their Pell grants, 18 million children who could
potentially lose their free school lunch, 13.7 million people who are
set to lose their healthcare, and everybody loses when the National
Institutes of Health research is cut.
This big, bad billionaire's bill steals educational opportunities
from students, cuts healthcare and food from working families, all to
fund tax cuts for millionaires and billionaires and then increases the
national debt.
Mr. Speaker, to paraphrase Harry Truman: This is not fearmongering.
It is the truth, but they just think it is fearmongering. Vote ``no.''
Mr. ARRINGTON. Mr. Speaker, my Democratic colleagues surely recognize
and remember that for the last 4 years they racked up $8 trillion in
record debt. If we add the record interest rates
[[Page H2336]]
from the record inflation, that would be another $5 trillion. I don't
know that we need a whole lot more lecturing on the national debt.
Our balanced budget reconciliation bill actually reduces the deficit
in the 10-year window by $140 billion, and it brings the debt to GDP
down by 10 percentage points.
Mr. Speaker, I yield 2 minutes to the gentleman from Kentucky (Mr.
Guthrie), the chairman of the Energy and Commerce Committee.
Mr. GUTHRIE. Mr. Speaker, today I rise in support of the One Big
Beautiful Bill Act, which includes a title from the Energy and Commerce
Committee that unleashes American energy, promotes American innovation,
and protects care for our most vulnerable Americans.
In 1965, President Lyndon B. Johnson created the Medicaid program to
protect low-income families, individuals who were disabled, and
seniors. House Republicans share this commitment to this vulnerable
population.
This bill protects coverage for those individuals by ensuring
ineligible recipients do not cut the line in front of our most
vulnerable Americans.
The decision by left-leaning State governments to spend taxpayer
dollars on people who are ineligible for the program is indefensible.
Medicaid should not cover illegal immigrants, deceased, or duplicative
beneficiaries or able-bodied adults without dependents who choose not
to work.
Let's be clear about what my Democrat colleagues are prioritizing
when they say they oppose our bill. What they are really saying is that
4.8 million people who refuse to work a part-time job or volunteer in
their community are entitled to free healthcare paid by hardworking
taxpayers.
When they say they are opposed to our bill, what they are really
saying is that the 1.4 million illegal immigrants should be prioritized
over U.S. citizens.
When they say they oppose our bill, what they are really saying is
that people who aren't eligible for Medicaid should be prioritized over
children, mothers, or people with disabilities for whom the program was
intended.
House Republicans make no apologies for prioritizing Americans in
need over illegal immigrants or other able-bodied beneficiaries who are
choosing not to work.
Along with work requirements, our bill rolls back restrictive Biden-
Harris era regulations, promotes transparency for pharmacy benefit
managers, and increases seniors' access to medication.
These are all commonsense policies that will strengthen our
healthcare system and return taxpayer dollars to middle-class families.
House Republicans are fighting for America's children. We are
fighting for pregnant women and mothers. We are fighting for
individuals with disabilities, and we are fighting for seniors who need
long-term care.
That is why I urge my colleagues to support this legislation as part
of our effort.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I would remind my good friend
that this bill will kick 159,000 people in the Commonwealth of Kentucky
off their health insurance.
Mr. Speaker, I yield 1 minute to the gentlewoman from Vermont (Ms.
Balint), a distinguished member of the Budget Committee.
Ms. BALINT. Mr. Speaker, ask yourself why. Why are we here at 3 a.m.
fast-tracking this bill? This bill is nothing to be proud of. It is
best to pass it in the night when most folks are asleep.
What kind of a nation are we when leaders choose to take food away
from children? What kind of a nation are we when they choose to take
healthcare away from people? What kind of a nation are we when they
choose to add trillions of dollars to the deficit and pass those
financial handcuffs on to our grandchildren? What kind of a nation are
we when they choose to make those deficits, that it will force $500
billion in cuts to Medicare?
What has happened this week is shocking. It is unconscionable. It is
not leadership. It is moral failure, kicking the poor in the teeth
while rewarding the richest among us.
Mr. Speaker, Americans deserve so much better than this, so much
better. I urge my colleagues to reject this cruel, cynical bill.
Mr. ARRINGTON. Mr. Speaker, 91 percent, on average, of my colleagues,
voters, constituents, friends, and families, pay the standard
deduction. Democrats' opposition to this bill, if they were successful,
would actually cut the standard deduction in half.
Mr. Speaker, I yield 2 minutes to the gentleman from Missouri (Mr.
Graves), our Transportation and Infrastructure chair.
Mr. GRAVES. Mr. Speaker, I rise today in support of the One Big
Beautiful Bill Act which fulfills President Trump's agenda by securing
our border, keeping taxes low for families and job creators, and
restoring the Nation's energy dominance in cutting waste, fraud, and
abuse.
The Transportation and Infrastructure Committee's portion of today's
legislation combines critical investments in border security, national
defense, and modernization of America's air traffic control system,
while eliminating wasteful spending and other deficit reduction
measures.
Specifically, this bill addresses long-overdue needs of the United
States Coast Guard, which for over two decades has received less than
half of the capital investment necessary to effectively carry out its
critical missions. The Transportation and Infrastructure Committee
included more than $21 billion to recapitalize Coast Guard assets,
including the acquisition of cutters, aircraft, polar icebreakers,
along with the facilities needed to support them.
In light of serious operational and financial challenges facing the
FAA, the Transportation and Infrastructure Committee provided a $12.5
billion downpayment for finally modernizing our outdated air traffic
control infrastructure.
Finally, the bill addresses the chronic shortfall in the highway
trust fund by instituting a $250 annual fee on electric vehicles and
$100 on hybrid vehicles, ensuring that all drivers contribute their
fair share to maintaining our roads and bridges.
In this measure, the Transportation and Infrastructure Committee
prioritized core Federal responsibilities, which included national
defense, transportation safety, and infrastructure modernization, while
also responsibly offsetting these investments with cuts to wasteful
spending.
Mr. Speaker, I urge my colleagues to support the legislation.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I would correct a
disingenuous argument that has been offered repeatedly.
Folks on the other side throughout this past week and a half, 2
weeks, and we heard it tonight, say: Well, if we don't pass this bill,
most Americans will face a tax increase. That is completely false.
Time and again over the past 2 weeks, both in Ways and Means and
Rules, Democratic Members offered amendments to protect and extend the
tax cuts for every American making under $1 billion a year. Every
single Democrat voted for those amendments. Every single Republican
voted against them.
{time} 0320
Mr. Speaker, I yield 1 minute to the gentlewoman from Ohio (Ms.
Kaptur), a distinguished member of the Budget Committee.
Ms. KAPTUR. Mr. Speaker, I thank Ranking Member Boyle for yielding me
time.
Mr. Speaker, Federal budgets are moral documents. They tell the
American people who we value and who we leave behind.
This budget is a bonanza for billionaires. It is paid for by cutting
healthcare and food for millions of working families and seniors.
The U.S. national debt stands at $36 trillion, and this bill will
raise it to over $40 trillion. Historically, Republican administrations
have ballooned the debt--Reagan, both Bushes, and Trump--through tax
cuts to the very rich coupled with endless wars. It is clear where the
debt has come from. Trillions were added and not paid for. Now
Republicans are coming after health coverage and food assistance.
President Trump has already added $8.4 trillion to the debt from his
last tax cuts. Meanwhile, his billionaires use their tax refunds to do
stock buybacks. American workers are left behind.
Mr. Speaker, let's call it what it is: another Republican budget
buster, betraying working people while causing prices to rise.
[[Page H2337]]
Mr. Speaker, 40,000 people across the district I represent and nearly
14 million people nationwide will lose coverage for healthcare to pay
for these bonanzas for billionaires.
Mr. Speaker, this bill must be benched. I urge my colleagues to vote
``no.''
Mr. ARRINGTON. Mr. Speaker, I remind my colleagues that, over the
last 4 years, their failed economic policies and their unbridled
spending put a 20 percent regressive inflation tax on working families
all across this great land.
Mr. Speaker, I yield 2 minutes to the gentleman from Ohio (Mr.
Jordan), my good friend and our GOP chair of the Judiciary Committee.
Mr. JORDAN. Mr. Speaker, my colleagues know it is a good bill because
the left hates it--the left that defunded the police; the left that let
10 million people illegally enter our country in a 4-year time span;
the left that wants men to compete against women in sports; the left
that lied to us about Benghazi, lied to us about the Hunter Biden
laptop, lied to us about President Biden's health; and the left that
lied to us about COVID.
The Speaker will remember that. Democrats got to go to the fancy
restaurants, but all the people we represent couldn't go to church,
couldn't go to work, and couldn't go to school.
The left doesn't like this bill. That tells my colleagues it is a
good bill.
This bill is about fundamental conservative principles, regular
things that the American people appreciate. This bill cuts taxes. This
bill requires work for able-bodied adults in our welfare system. This
bill gives school choice to parents. This bill secures the border.
We are the party that believes in letting moms and dads keep more of
their money to spend on their goals and their dreams. We are the party
that says that if you get taxpayer funds and you are able-bodied, you
should work. That is fair to the taxpayers. That is good for our
economy. Most importantly, it is good for the recipients.
We are the party that says that parents, regular moms and dads,
should get to pick where their kid goes to school so they get the kind
of education that will allow them to achieve the American Dream. That
is in this bill. This bill secures the border. The primary issue of
last fall's election, the issue that decided the election, the issue
that put President Trump in the White House and Republicans in control
of the Congress, this bill helps secure the border, and President Trump
already has it under control.
That is why we should support this legislation. It cuts taxes,
requires work for able-bodied adults, empowers parents to pick the
school where their kid is going to get the best education, and secures
the border like the American people want us to do.
This bill is doing exactly what we told the voters we were going to
do, and that is why we should support it.
Mr. Speaker, I thank the Committee on the Budget chairman for his
good work on this legislation.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I remind the gentleman that
this bill will kick 404,000 people in Ohio off of their health
insurance.
Mr. Speaker, I yield 1 minute to the gentlewoman from Washington (Ms.
Jayapal), a distinguished member of the Budget Committee.
Ms. JAYAPAL. Mr. Speaker, this bill is a massive betrayal of working
people and poor people across America. It strips at least 14 million
Americans of their healthcare. It slashes food for the hungry, and it
cuts basic needs for Americans across the country.
Why? It is so that you can give a $5 trillion tax break to the
wealthiest billionaires, like Elon Musk.
If you had a giant corporate lobby outside, you get a tax break. If
you are in the top 0.1 of 1 percent of billionaires, you get a $398,000
tax break. If you are a millionaire, you get an average $83,000 tax
break.
Yet, if you are a working person or a poor person, you are SOL. You
get kicked off of your healthcare. You don't get the $2 a meal in SNAP
benefits, and you get hungrier. You get poorer. You get sicker.
Here is the thing: If you are so proud about this bill, why are we
debating it at 1 o'clock in the morning and 3 o'clock in the morning?
Why are these schedules getting rigged so that people don't even get to
see what we are doing here in this Chamber?
I am a ``hell no.''
The SPEAKER pro tempore. Members are reminded to direct their remarks
to the Chair.
Mr. ARRINGTON. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I have great respect for my ranking member, but he is
rattling off numbers and saying that this many people will come off of
the welfare rolls in my colleagues' districts.
Let's remind the American people: The people he is talking about are
folks who are in this country illegally, or they are able to work, and
they are not working. They are able to work, and they are not working.
Mr. Speaker, for the record, Democrats are opposing the commonsense
policy and what every American's expectation is at a base level that
people who are able to work will work. It is good for their soul. It is
good for this country. It is the right policy, and my Democratic
colleagues are fighting us on it.
Mr. Speaker, I yield 1 minute to the gentleman from the Keystone
State, Pennsylvania (Mr. Smucker), my friend and vice chairman of the
Budget Committee.
Mr. SMUCKER. Mr. Speaker, I thank the chairman for his work on this
bill.
Mr. Speaker, we are charting a bold new course today for American
prosperity. This bill not only builds on the progrowth legacy of the
Tax Cuts and Jobs Act, it prevents the largest tax hike in American
history.
Across the country, years of inflation have taken a bite out of
everyone's paycheck. Groceries, gas, and housing all cost more.
Americans feel left behind, and this bill is the solution. It delivers
immediate relief for working families. It locks in permanent tax cuts,
unleashes economic growth, and puts American workers first.
We are talking about saving 6 million jobs, cutting red tape,
securing our borders, and supercharging Made in America manufacturing.
We do all of this while achieving historic Federal savings. It is
possible to reduce spending, provide tax relief, and protect core
services for Americans all at once.
This is real, responsible leadership.
Mr. Speaker, this bill is bold, immediately effective, and above all,
it is common sense. It is time to pass this act and get America back on
the path to prosperity.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I have good news for my
friend, the chairman of the Budget Committee.
We just verified with the Congressional Budget Office, and of the
13.7 million Americans who will lose their healthcare because of their
bill, exactly zero are undocumented immigrants.
Mr. Speaker, the complete artifice that the other side is attempting
to convince you of is that almost 14 million Americans will lose their
healthcare, but don't worry about it. They are all illegals. They are
all people who are defrauding the system. It is completely false, and
every independent source has verified that it is false.
Mr. Speaker, I yield 1 minute to the gentlewoman from California (Ms.
Chu), a distinguished member of the Budget Committee.
Ms. CHU. Mr. Speaker, I rise in strong opposition to the Republicans'
unbelievably ugly bill. This bill is worse than we thought.
By ripping Medicaid and food assistance away from many millions of
vulnerable Americans while slashing taxes for the ultrawealthy, the
nonpartisan CBO found that it would make the poorest 10 percent poorer
while making the richest 10 percent richer.
This bill would also increase the debt so much that it will trigger
cuts to Medicare benefits by almost $500 billion.
To my Republican colleagues: Think of my constituent, Maria. Maria
needs Medicaid, Medicare, and Social Security to care for her daughter
who resides in a nursing home, uses a feeding tube to eat, and can't
recognize her mother.
Maria asked: If Medicaid is cut, where would my daughter go?
Tax cuts for the wealthiest at the expense of Maria's daughter
getting the care she needs to survive is despicable.
Mr. Speaker, I urge my colleagues to vote ``no'' on this bill.
[[Page H2338]]
{time} 0330
Mr. ARRINGTON. Mr. Speaker, according to NumbersUSA, over the last 4
years when the Democrats were in charge of this town and millions of
people were flooding into this country from across our border, we were
spending $9,000 per illegal immigrant on taxpayer-funded social
services.
Mr. Speaker, that is more than we spend on our own citizens who
depend on Medicaid. That is more than we spend on military benefits for
our veterans.
Mr. Speaker, I yield 1 minute to the gentleman from California (Mr.
McClintock), my friend and fellow Budget Committee member.
Mr. McCLINTOCK. Mr. Speaker, if this bill fails, an average family's
taxes will rise 22 percent next year, about $1,700 a year. It would be
the biggest tax increase in American history.
If it succeeds, working families will be able to keep more of their
earnings. We will be able to complete the border wall and protect our
communities from the violent cartels the Democrats allowed into our
country.
We will relieve pressure on Medicaid by requiring able-bodied adults
on it to look for work, and we can free up America's vast energy
resources.
The most important economic indicator is how Americans answer this
question next year: Are you better off today than you were 2 years ago?
By this time next year, Americans could be enjoying one of the most
explosive periods of growth in our history and all that means: secure
borders, safer communities, lower taxes, abundant energy, an increase
in better jobs, a higher standard of living, and a better quality of
life--a big, beautiful future for all Americans.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I remind the gentleman that
this bill would kick 1.98 million people in California off their health
insurance.
Mr. Speaker, I yield 1 minute to the gentleman from New York (Mr.
Tonko), a distinguished member of the Budget Committee.
Mr. TONKO. Mr. Speaker, I thank the gentleman for yielding.
Mr. Speaker, one of the very first bills I ever voted on as a
Representative in Congress was passing the Affordable Care Act and
bringing historic access to healthcare to millions. That action
reflects what Congress should be all about, helping everyday Americans,
serving our communities, and fighting against the forces that seek to
make us sicker, hungrier, and poorer.
Unfortunately, today, those forces are the Republican majority, the
President of the United States, and the richest people on the planet.
On top of constitutional crises, in the throes of a housing and cost-
of-living emergency, and in the face of catastrophic climate change,
Congress is set to make the largest cuts to healthcare, food
assistance, and environmental protections in American history.
Families in my district and across our country are hurting. You don't
fix that pain by further ripping away the basic needs programs that
help those struggling to get by. For me, the choice is clear: I will
never stop fighting for my constituents and all Americans whose lives
will be destroyed by this monstrosity of a bill.
Mr. ARRINGTON. Mr. Speaker, I yield 1 minute to the gentleman from
Texas (Mr. Gill), a fellow Texan who is also on the Budget Committee.
Mr. GILL of Texas. Mr. Speaker, so much of what we have heard tonight
from the other side of the aisle is nothing but shrill and hysterical
calumny from a political party who have nothing to offer the American
people but confiscatory taxes, open borders, and men in women's sports.
They talk about cruelty, Mr. Speaker. I will tell you what is cruel:
Cruelty is deliberately facilitating the mass importation of millions
of illegal aliens, many of whom are murdering and raping and pillaging
our people on our soil.
Mr. Speaker, this bill will fund border security. It will fund ICE,
and it will fund the largest deportation operation in American history.
Mr. Speaker, we are taking our country back. I encourage my
colleagues to vote ``yes'' on this bill.
Mr. BOYLE of Pennsylvania. Mr. Speaker, the reality is, this bill,
not according to our numbers, according to independent, certified,
nonpartisan authority on this matter, verified at least 13.7 million
Americans will lose their health insurance. Do you know why they want
to talk about every subject under the Sun other than this? Because they
know it is going to have devastating consequences for the American
people, and it will have devastating consequences for them next
November.
Mr. Speaker, I yield 1 minute to the gentleman from Kentucky (Mr.
McGarvey), a distinguished member of the Budget Committee.
Mr. McGARVEY. Mr. Speaker, 13.7 million Americans will lose their
healthcare. We are going to gut America's premier antihunger program.
It is going to add trillions of dollars to the Nation's debt. Mr.
Speaker, you don't believe me? The Congressional Budget Office says it.
My colleagues: Mr. Schweikert, Mr. Roy, and Mr. Massie all say this is
going to add to the debt and to the deficit of this country, and for
what? So Donald Trump's small circle of billionaire donors get a tax
break.
We know who it helps, but let's talk about who it hurts.
Mr. Speaker, 40 percent of the people who get Medicaid in this
country are children. That is whose healthcare we are taking away. It
is the kids who rely on this for lifesaving care, kids like my
constituent June who has quadriplegic cerebral palsy. She has had three
spinal cord surgeries in the last month.
This enables her to stay at home with her family and to have a life.
It will hurt children across this country. We shouldn't do it. We
should vote ``no.''
Mr. ARRINGTON. Mr. Speaker, I reserve the balance of my time.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I yield 1 minute to the
gentleman from Rhode Island (Mr. Amo), a distinguished member of the
Budget Committee.
Mr. AMO. Mr. Speaker, budgets are a statement of values, and
Republicans have made their values crystal clear. They value those who
can buy crystals over the working class. They value putting the needs
of the wealthy few over the vulnerable. They value making the rich
richer, the sick sicker, the hungry hungrier, and, yes, the poor
poorer. It is a moral inversion, a reverse Robin Hood scheme, to steal
from the poor and give to the rich. It is just plain wrong.
This big, bad bill is an abomination that will hurt tens of thousands
of Rhode Islanders just to give billionaires a break on their taxes.
Republicans have made their values clear, so will I.
My Rhode Island values are healing the sick, feeding the hungry, and
uplifting the poor, ensuring that there is opportunity in this country
for everyone, especially the working people in the middle class. You
have my word that I will never stop fighting for vulnerable Rhode
Islanders and against this dangerous bill.
If I thought they had it, I would urge my colleagues on the other
side of the aisle to show some backbone and do the same, but I know
they will fall in line.
Mr. ARRINGTON. Mr. Speaker, I agree with the gentleman. Budgets do
reflect values. The values of the Republican Party and my colleagues
are to protect 40 million families from having their child tax credit
cut in half, 26 million small businesses who have the highest marginal
rates would lose the 20 percent deduction, 2 million family-owned farms
and the farming families would have the debt tax exemption slashed in
half.
Mr. Speaker, those are our values. We want people to keep more of
their money. We want this economy to grow. We want people to have
better opportunities and bigger paychecks. We want to give folks hope
for a better life to come up and out of poverty, out of welfare, and
put their God-given talents to use.
Mr. Speaker, I yield 1 minute to the gentleman from Georgia (Mr.
Carter), a friend and fellow member of the Budget Committee.
Mr. CARTER of Georgia. Mr. Speaker, I rise today in strong support of
the One Big Beautiful Bill Act.
The American people are suffering. They are suffering from 4 years of
government overreach and out-of-control spending that has put us on the
edge of fiscal ruin.
That stops now. This bill will make President Trump's tax cuts for
American families permanent, remove taxes
[[Page H2339]]
on tips and overtime, unleash American energy dominance, and eliminate
waste, fraud, and abuse from key Federal programs.
Passing this bill means preserving Medicaid, preserving Medicaid for
generations to come, and keeping our promise to ensure it is there for
Americans who truly need it. This bill will allow families still
feeling the pain of inflation to take home tax-free tips and hard-
earned overtime.
This bill will rein in out-of-control spending by government agencies
such as EPA that had little or no oversight under President Biden.
Let me be clear: This is a bill that works for America. It will put
us back to the path toward fiscal responsibility, keep money in the
pockets of Americans, unleash American energy dominance, and preserve
key programs for those who need them.
{time} 0340
Mr. BOYLE of Pennsylvania. Mr. Speaker, this bill will kick 494,000
people in Georgia off their health insurance.
Mr. Speaker, I yield 1 minute to the gentleman from Washington (Mr.
Larsen), the distinguished ranking member of the Transportation and
Infrastructure Committee.
Mr. LARSEN of Washington. Mr. Speaker, Transportation and
Infrastructure Committee Democrats are for bills that invest in job-
creating infrastructure. We are against jamming through fiscally
reckless bills that rip healthcare away from 13 million Americans and
take food assistance away from millions of families so that we can hand
out tax breaks to billionaires.
Democrats want to continue historic funding for transportation
infrastructure and stronger and healthier communities. Unfortunately,
this reconciliation package leaves very little room for those
investments--to make the needed safety investments for the entire air
traffic control system, the safety investments that we need to tackle
the highway safety crisis, and the investments that we need to meet the
Coast Guard members' healthcare, housing, and childcare needs.
This bill causes immediate harm by yanking money from locally
selected projects that our constituents in Republican and Democratic
districts alike are counting on. For what? To help pay for the tax cuts
for the richest Americans and largest corporations.
Mr. Speaker, I look forward to a future where the Members of this
body work together on priorities for transportation infrastructure, but
this big, ugly bill ain't it.
Mr. ARRINGTON. Mr. Speaker, I reserve the balance of my time.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I yield 1 minute to the
gentleman from Maryland (Mr. Raskin), the distinguished ranking member
of the Judiciary Committee.
Mr. RASKIN. Mr. Speaker, it is telling that President Trump and his
cult followers have chosen to name their bill after its size and looks
instead of its contents and values.
They don't want anybody looking inside this monstrosity. There is
nothing beautiful or big about stripping 14 million Americans of their
healthcare or removing food security from 11 million people, including
4 million kids. That is ugly. That is small.
I know Donald Trump has increased his net worth by more than $3
billion since taking office from his global crypto scam and that
yesterday he brought home a $400 million jumbo jet from the monarch
dictator of Qatar, a flying constitutional violation packed with
threats of espionage and surveillance.
There is nothing big or beautiful about plundering the wealth of the
people of America to give to the people who have already profited from
Donald Trump's prior schemes. Let's vote this whole monstrosity down.
Mr. ARRINGTON. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I will tell you what is big: $900 billion in special
interest tax breaks to green energy corporations that my colleagues
passed unilaterally in the Inflation Reduction Act. That is big.
The billionaires that got rich off their tax breaks got a big break,
and we aim to phase them out or repeal them so we can bring energy
costs down and strengthen America's energy independence.
Mr. Speaker, I yield 1 minute to the gentleman from Indiana (Mr.
Stutzman), my friend.
Mr. STUTZMAN. Mr. Speaker, I rise in strong support for H.R. 1, the
One Big Beautiful Bill Act.
Despite the claims from our colleagues on the other side of the
aisle, this bill will give huge benefits to everyday working Americans
in all of our districts. This bill includes many tax benefits,
including a made-in-America auto tax break, which will not only support
American families trying to buy a car but will further support new jobs
in manufacturing facilities like General Motors and Toyota in Indiana.
On top of this, the One Big Beautiful Bill Act supports building
America's Golden Dome defense system, securing the homeland and
bolstering America's capabilities that will start with the skilled
workforce in my district in northeast Indiana.
This bill also puts money back into working Americans' pockets. It
supports those who work tirelessly in restaurants and nurses and
factory workers who work overtime to support their families by
establishing no tax on tips and no tax on overtime.
This bill supports every American, from small business owners to
hourly wage workers, and propels America's economic performance.
Mr. Speaker, I urge all of my colleagues to vote in favor of this
bill.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, one challenge with doing this massive bill literally in
the middle of the night--as I look up, if I am reading that correctly,
it is 3:45 a.m. right now--there are all sorts of provisions that we
are discovering in this massive piece of legislation being rushed
through in the dead of the night.
I want to call out just one deeply troubling provision hidden in this
bill, a provision that blocks States from regulating artificial
intelligence for the next 10 years.
AI has the potential to be transformative, but only if it is
developed and used in a safe, responsible way. That requires strong
guardrails. This bill does the opposite.
The fact this was quietly tucked into this budget bill is reckless
and wrong. It shows exactly who this bill was written for--not working
families, but powerful special interests.
Mr. Speaker, I yield 1 minute to the gentleman from California (Mr.
Takano), the ranking member of the Veterans' Affairs Committee.
Mr. TAKANO. Mr. Speaker, I rise in opposition to this big billionaire
payout.
We are voting in the dead of night, out of sight of the American
people, because the Republican majority knows that the public will be
outraged after they find out what is in this bill.
It strips health insurance from nearly 14 million people across the
country. It puts 11 million people on food assistance at risk of
hunger. It increases the deficit by $2.3 trillion. For what? To give
billionaires a tax break.
Don't just take my word for it. The independent data crunchers at the
Congressional Budget Office found that the richest 10 percent of
Americans would see their incomes go up, while the poorest 10 percent
would see theirs go down.
This bill is reverse Robin Hood. It takes from the poor and gives to
the rich.
Mr. Speaker, I urge my colleagues to reject this shameful bill.
Mr. ARRINGTON. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, one of the problems with the work requirements in the
supplemental nutrition program--and I am sure Mr. Takano knows this--is
that States have been allowed to game the system and not effectively
enforce those for able-bodied adults receiving services.
In California, in fact, nobody is working who is on food stamps who
is able to work. Nobody is working, so it is not fair to those people.
It is not fair to rob them of the dignity of work. It is not fair in
our fiduciary role to the taxpayer.
Mr. Speaker, we are turning this ship around. We are cleaning the
mess up here in Washington. We are putting incentives in place that
will do well by everybody involved.
Mr. Speaker, I yield 1 minute to the gentleman from Pennsylvania (Mr.
Joyce), my friend.
[[Page H2340]]
Mr. JOYCE of Pennsylvania. Mr. Speaker, I rise in strong support of
the One Big Beautiful Bill Act.
This important legislation will strengthen Medicaid by cutting waste,
fraud, and abuse to ensure that the most vulnerable Americans have
access to the critical services on which they rely. Pregnant women,
children, seniors, and disabled Americans need and deserve Medicaid
benefits, not illegal immigrants or able-bodied adults simply choosing
not to work.
This bill also fixes a provision in the Inflation Reduction Act to
ensure that new, innovative therapies for rare diseases are brought to
market, restoring the hope of future cures for millions of Americans.
In November, the American people sent a clear message with the
election of President Donald Trump. Now, it is our job in Congress to
deliver this One Big, Beautiful Bill and produce results for the
American people. I encourage all of my colleagues to support this
legislation.
{time} 0350
Mr. BOYLE of Pennsylvania. Mr. Speaker, I would remind my friend from
the great Commonwealth of Pennsylvania that this bill will kick 404,000
people in our State off their health insurance.
Mr. Speaker, I yield 1 minute to the gentleman from California (Mr.
Ruiz), a distinguished member of the Energy and Commerce Committee.
Mr. RUIZ. Mr. Speaker, I have a question for Republicans who are,
under the cover of night, forcing this one, big, ugly bill on working
families. What the hell is wrong with them?
They are taking away over $300 billion worth of food from the mouths
of millions of hungry children, seniors, and veterans. They are taking
away healthcare from over 14 million people by cutting Medicaid by
nearly $800 billion.
Despite these and many more cuts to working families, they are
raising the debt by more than $5 trillion. For what? Is it to give
billions of dollars in tax cuts to billionaires like Elon Musk? What
the hell is wrong with them?
The millions of uninsured will be millions of uncompensated care for
hospitals that rely on Medicaid. Hospitals will cost more. Services
like pediatrics, maternal health, and labor and delivery will be cut.
Many hospitals will close. Premiums will rise and cost more.
Mr. Speaker, whether people have private insurance or Medicaid, if
their community hospital closes, where the hell will they get their
care?
The SPEAKER pro tempore. Members are reminded to address their
remarks to the Chair.
Mr. ARRINGTON. Mr. Speaker, I yield 1 minute to the gentleman from
South Carolina (Mr. Fry).
Mr. FRY. Mr. Speaker, the Big Beautiful Bill Act is exactly what this
country needs. It is bold. It is clear. It is packed with real
solutions.
While Democrats have buried their heads in the sand on the biggest
issues facing America, Republicans are stepping up. They ignored the
border crisis while towns are overrun. They downplay inflation while
families can't afford groceries. They pretend crime isn't skyrocketing
while our cities become war zones.
Democrats would rather police our speech than protect our streets.
They will rush to ban plastic straws but look the other way when
fentanyl overruns our cities. When parents speak up at school board
meetings, they get labeled as extremists, while actual criminals walk
free.
The one big, beautiful bill does exactly what they won't. It secures
the border, and it protects our communities. It strengthens our
economy. It cuts taxes. It cuts waste. It unleashes American energy and
puts the American people first.
Mr. Speaker, there are no more excuses and no more distractions. It
is time to fix what is broken, and this bill is the blueprint.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I would remind the gentleman
this bill will kick 220,000 people in South Carolina off their health
insurance.
Mr. Speaker, I yield 1 minute to the gentlewoman from Massachusetts
(Mrs. Trahan), a distinguished member of the Energy and Commerce
Committee.
Mrs. TRAHAN. Mr. Speaker, I oppose this bill because it is a targeted
attack on Planned Parenthood, one of the most trusted providers of
reproductive healthcare in our country.
The bill bans Federal Medicaid and CHIP dollars from going to Planned
Parenthood for 10 years, without even naming the organization, by using
vague criteria clearly designed to single them out.
This provision threatens access to cancer screenings, birth control,
and other essential care for millions of Americans, particularly low-
income women.
For this reason, at the appropriate time, I will offer a motion to
recommit this bill back to the committee. If the House would have
permitted, I would have offered the motion with an important amendment
to this bill.
My amendment would strike the provision that blocks Medicaid
reimbursements to Planned Parenthood. No one should lose access to
basic care just because of where they go to get it. I hope my
colleagues will join me in voting for this motion to recommit.
Mr. Speaker, I ask unanimous consent to insert the text of the
amendment in the Record immediately prior to the vote on the motion to
recommit.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Massachusetts.
There was no objection.
Mr. ARRINGTON. Mr. Speaker, I yield 1 minute to the gentleman from
Michigan (Mr. Walberg), my good friend and the chairman of the
Education and Workforce Committee.
Mr. WALBERG. Mr. Speaker, I thank the gentleman for yielding time.
Mr. Speaker, I hear a lot of hyperbole today. Of course, we
understand the louder we speak, the more fear we produce in people and
the more ultimate power there is over them.
As chair of the Education and Workforce Committee, I am concerned,
though, as young people are going to colleges and universities and
trying to lift themselves up, we find another challenge that goes on
with Big Government and the control through student debt.
The Education and Workforce Committee's portion of the Big Beautiful
Bill Act delivers the kind of accountability students need and our
economy demands.
The bill saves taxpayers almost $350 billion. It also streamlines
loan repayment options, making it easier for borrowers to repay, while
also targeting assistance to those who actually need it.
By curbing excessive student loan debt and holding colleges
accountable, this legislation also puts an end to colleges hiking
tuition and spending recklessly.
Simply put, it provides schools with the incentive to deliver real
value for students and taxpayers. The American people want this. Let's
support this bill and make America free.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I would remind the gentleman
this bill will kick 370,000 people in Michigan off their health
insurance.
Mr. Speaker, I yield 1 minute to the gentleman from Maryland (Mr.
Olszewski), a distinguished member of the Small Business Committee.
Mr. OLSZEWSKI. Mr. Speaker, there is nothing beautiful about this
bill, but at least the deficit growth is big. Maybe that is why my
Republican colleagues are debating it under the cloak of darkness
again.
This bill is ugly. The bill is a scam. The nonpartisan CBO has
confirmed that under the bill, the poor will get poorer and the rich
will get richer.
To fund tax breaks for the wealthy, the bill borrows trillions, while
taking away food from hungry kids and healthcare away from hardworking
Americans.
My amendment to address the hypocrisy of the Medicaid work
requirements imposed under this bill was not included. The amendment
was simple. Before prying healthcare away from able-bodied
constituents, make sure they actually have access to a job.
Mr. Speaker, 14,000 will lose Medicaid coverage in my district alone.
Thousands more will see their premiums soar, and 20,000 who rely on
SNAP for their next meal could go hungry; nationwide, it is millions.
It does nothing to lower costs for average Americans. It does the
exact opposite. This bill is cruel. We should all vote ``no.''
[[Page H2341]]
Mr. ARRINGTON. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I don't think it is a scam to prevent a 22 percent tax
hike on average Americans. Let's be clear. My colleagues and I don't
think it is a scam to steward tax dollars and root out waste, fraud,
and abuse across the people's government.
We don't think it is a scam to prohibit people who are not citizens
of our country from draining the Social Security safety net and
impacting its sustainability for future vulnerable Americans. That is
not a scam. That is our job. We intend to do it.
Mr. Speaker, I reserve the balance of my time.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I yield 1 minute to the
gentlewoman from Virginia (Ms. McClellan), a distinguished member of
the Energy and Commerce Committee.
Ms. McCLELLAN. Mr. Speaker, this big, bad billionaire bonus extends
tax cuts for the wealthiest few at the expense of the most vulnerable
Americans.
It kicks millions of Americans off their health insurance and takes
food out of the mouths of millions more, including children, seniors,
veterans, and people with disabilities.
This bill will make someone who earns up to $300 a week pay a copay
of up to $35 because they need to have skin in the game, ignoring the
fact they also have to pay their rent, childcare, utilities, and on and
on.
This disastrous bill mandates that States implement burdensome red
tape requirements and force Medicaid recipients to prove they are
working, even though, when given a chance to implement such
requirements, only two States did. Mr. Speaker, 18,000 working people
in Arkansas were kicked off of Medicaid because they couldn't meet the
State's requirements which are no longer in place. Georgia spent more
on administrative costs for their work requirements than on the cost of
care.
Once kicked off Medicaid, these people won't be eligible for
subsidies to purchase marketplace plans, but they will get sick. They
will go to the hospital. The costs will flow to the rest of us.
Mr. Speaker, this big, bad bill is a bust, and I urge a ``no'' vote.
Mr. ARRINGTON. Mr. Speaker, I yield 1 minute to the gentleman from
North Carolina (Mr. Edwards), also a House Budget Committee member.
Mr. EDWARDS. Mr. Speaker, this big, beautiful bill delivers on two of
our Nation's urgent priorities. It secures our southern border and
unleashes American energy independence.
It invests nearly $70 billion to finish the border wall, expand
surveillance technology, and hire thousands of new border agents. It
gives Customs and Border Protection the tools they finally need to stop
illegal crossings, combat drug trafficking, and protect our
communities.
{time} 0400
At the same time, we are rolling back the Biden administration's
reckless energy mandates and cutting red tape to expand American oil,
gas, and infrastructure. By restoring the free market and prioritizing
domestic production, this bill lowers costs for American families and
strengthens our national security.
It is just common sense. Secure the border and power America with
American energy. Let's get this done for our agents, for our workers,
and for the future of this country.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I yield 1 minute to the
gentlewoman from California (Ms. Kamlager-Dove), who is a distinguished
member of the Judiciary Committee.
Ms. KAMLAGER-DOVE. Mr. Speaker, with this backstabbing billionaire
bill, House Republicans are selling their soul and constituents to the
highest bidder: Donald Trump.
First, he crashed the economy with his temper taxes, driving up the
cost of groceries and down our credit rating with Moody's. Now Trump
and Republicans want to steal even more from hardworking Americans to
provide tax breaks to those who kiss the Mar-a-Lago ring.
Mr. Speaker, they are stealing your food, healthcare, and security.
My district in Los Angeles has the fourth highest Medicaid enrollment
in the entire Nation.
Mr. Speaker, 225,000 of my constituents rely on food assistance to
feed their families. Nearly 1 million people in my State live in
subsidized housing. My constituents call my office asking me to protect
their Medicaid. They don't ask that their lifesaving benefits be taken
away and given to the top 1 percent.
Daylight is the best disinfectant, which is why all their dirty deeds
with this bill have been happening at night.
Mr. Speaker, I urge my colleagues to listen to their constituents
instead of tasing them at townhalls, and vote against this dangerous
bill.
Mr. Speaker, I urge America to keep the receipts on these votes.
Mr. ARRINGTON. Mr. Speaker, I yield 1 minute to the gentleman from
Georgia (Mr. Clyde), who is a great champion for the Second Amendment,
a good friend, and a Budget Committee member.
Mr. CLYDE. Mr. Speaker, my Democrat colleagues have challenged why
the deregulation of silencers is in this bill and why are we removing
the $200 tax.
Under the law, they are firearms and therefore are protected by
another law enacted in 1791 called the Second Amendment of our beloved
Constitution. The right of the people to keep and bear arms shall not
be infringed, and neither shall it be taxed.
Chief Justice John Marshall in 1819 declared that ``the power to tax
includes the power to destroy.'' If you can tax it, then you can
destroy it. Mr. Speaker, you can raise the tax so high that almost no
one can afford it, and then you really don't have a right at all.
However, the Second Amendment is an unalienable constitutional right,
God-given, that governments are required to protect, not to tax.
The Supreme Court in the Heller decision of 2008 declared the Second
Amendment to be an individual constitutional right further protecting
it from taxation, just like the right to speak and the right to vote.
This bill simply restores that right from over 90 years of draconian
tax.
My Democratic colleagues have asked: How did this get in the bill?
What was the deal? Who asked for it?
There was no deal. I believe the Speaker with the purest of motives
simply wanted to restore a constitutional right. Who asked? It was me.
I asked.
Mr. BOYLE of Pennsylvania. Mr. Speaker, perhaps it is because it is
now past 4 a.m., but I feel like I have entered the twilight zone. We
have 13.7 million Americans, at least, who are going to lose their
health insurance because of this bill, another $500 million worth of
cuts to Medicare on top of that, and what is one of their last speakers
talking about?
A tax cut if you buy silencers, Mr. Speaker. This is bizarre. The
reality is millions and millions of Americans are going to lose their
health coverage all to help subsidize tax cuts for billionaires, oh,
yes, and also tax cuts for those who buy gun silencers.
Mr. Speaker, I yield 1 minute to the gentleman from New York (Mr.
Riley), who is a distinguished member of the Agriculture Committee.
Mr. RILEY of New York. Mr. Speaker, I am new here, but this bill
confirms what I suspected: This place is corrupt as hell.
My amendment would have used this opportunity to negotiate
prescription drug prices. It would have saved us billions of dollars
that we could have used for tax cuts for the middle class.
However, Mr. Speaker, you know what happened. The drug companies sent
their armies of lobbyists here to kill it. That is because you all are
fine taking food off the tables of kids, Mr. Speaker, but God forbid
you would do anything to rein in the profits of the drug companies.
We could have used this opportunity to close the carried interest
loophole and make Wall Street finally pay its fair share. That is
common sense.
We know where all that super-PAC cash comes from. Mr. Speaker, you
would rather close rural hospitals than close tax loopholes. Then you
wonder why the American people hate this place, Mr. Speaker.
If you really want to drain the swamp, Mr. Speaker, start by killing
[[Page H2342]]
this bill and working across the aisle to deliver real tax cuts for the
middle class instead of your handlers.
Mr. ARRINGTON. Mr. Speaker, I am prepared to close, and I reserve the
balance of my time.
Mr. BOYLE of Pennsylvania. Mr. Speaker, I yield myself the balance of
my time.
Mr. Speaker, it has been a long debate. I think we started, I don't
know, 48 hours ago or whatever it is by now.
However, make no mistake about it. This is not a debate that should
have been happening in the middle of the night. It shouldn't have
happened in the middle of the night last night in the Rules Community,
and it shouldn't be happening in the middle of the night tonight.
Frankly, if I had a bill that I was proud of, I would want to put it
on when people are paying most attention. I can understand, however,
why there are some folks on the other side who might want folks to not
quite pay attention to what is in this bill.
Mr. Speaker, you have heard speaker after speaker on this side,
however, expose the damage that this bill for billionaires will do:
13.6 million Americans at least would lose their health insurance
because of devastating cuts to Medicaid and the Affordable Care Act.
Another one-half trillion dollars more will be cut in Medicare. There
are all sorts of cuts to nutrition programs and food assistance,
education programs and Head Start. The list goes on and on. Why? It is
to subsidize tax cuts for the top 1 percent.
For the bottom 10 percent, we learned in the last 24 hours they won't
even get a little bit of a tax cut. In fact, when all of the components
of this bill are factored in, they will be 4 percent worse off than
they were before.
Oh, by the way, for the side that always talks about deficit and
debt, they really care about the national debt when there is a Democrat
in the White House, but then when there is a Republican in the White
House, they go about adding more to it.
Don't take my word for it, Mr. Speaker. The nonpartisan CBO shows,
the bipartisan Committee for a Responsible Federal Budget shows, the
right-of-center Cato Institute shows, and left-of-center groups show--
they have actually united the right, the center, and the left who are
all in agreement that this bill adds trillions more to our national
debt.
We can do better. As I said in the very beginning, this is one of the
most important votes we will ever cast in this Chamber. I am proud to
stand here on behalf of this side of the aisle and say: Hell no to this
bill.
Mr. Speaker, I yield back the balance of my time.
Mr. ARRINGTON. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, the nonpartisan CBO was off by $1 trillion in projecting
the annual deficit back in 2022. They were off by $1 trillion in
projecting what the revenue would be. It was record revenue after we
passed the Tax Cuts and Jobs Act. I just thought I would say that for
the Record.
For the remainder of my time, I will say thank you to my ranking
member. He is a great guy. He is a good friend and an excellent partner
in this endeavor. I know he loves the country. We disagree today, and
we have disagreed along the way, but we have also worked together to
have record bipartisan legislation for the Budget Committee. I am just
grateful for the gentleman. I thank the ranking member.
Mr. Speaker, I urge passage of the bill, and I yield back the balance
of my time.
The SPEAKER pro tempore. All time for debate by the Budget Committee
has expired.
{time} 0410
The SPEAKER pro tempore. The gentleman from Missouri (Mr. Smith) and
the gentleman from Massachusetts (Mr. Neal) each will control 30
minutes.
The Chair recognizes the gentleman from Missouri (Mr. Smith).
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, today, we embark on a golden age for working families
and small businesses with the One Big Beautiful Bill Act.
We make permanent the 2017 Trump tax cuts. We add a $1,300 tax cut
for families, compared to what they are paying this year, and halt a
$1,700 tax increase.
Working families, farmers, and small businesses win with this bill.
We expand and make permanent the small business deduction and increase
the child tax credit, the standard deduction, and the death tax
exemption.
President Trump promised no tax on tips, overtime pay, and car loan
interest. Hardworking Americans working overtime get up to $1,750 more
in their pockets under this bill. Those working for tips get $1,700
more. Families buying U.S.-made cars can deduct their auto loan
interest.
President Trump promised no taxes on Social Security, and in this
bill, we deliver. Low- and middle-income seniors on Social Security
will now have their tax liability erased with an increase in their
standard deduction.
Under this bill, if you build businesses here in America, you win.
Not only do we renew incentives for domestic research and development,
but we do 100 percent immediate expensing and the deduction for
interest expenses.
We also deliver on President Trump's promise to revitalize American
manufacturing, with 100 percent expensing for new factories and
improvements of existing facilities. Small- and medium-sized
manufacturers also win with greater tax benefits.
We replace bad tax policy with good tax policy, ending Biden-era tax
breaks and special interest giveaways to the wealthy, the well-
connected, and China. We hold accountable woke elite universities and
tax-exempt organizations that abuse their generous tax benefits.
President Trump stopped the flow of illegal immigrants over our
borders. This bill will stop the flow of taxpayer benefits to their
pockets.
After the October 7 attacks on Israel, rampant anti-Semitism stormed
college campuses. The Ways and Means Committee investigated, given the
schools' massive tax benefits. Jewish students testified about living
in fear as administrators failed to condemn the behavior. No longer.
Some of the worst offenders, colleges with endowments reaching into the
tens of billions, will now face the same taxation rate as corporations.
The One Big Beautiful Bill Act gives America a big, beautiful raise,
with the average American household seeing real take-home pay go up by
as much as $13,300.
We will save or create 7.4 million jobs, add 1 million new small
business jobs annually, and unlock $1.5 trillion in additional small
business economic growth, including $284 billion in growth just from
manufacturing alone. We can boost short-run real GDP by as much as 5.2
percent and long-run real GDP by over 3 percent.
Renewing the successful Opportunity Zone program will help distressed
communities, especially rural ones, by spurring over $100 billion in
new investments.
Parents win with expanded education savings accounts to choose the
education that best fits their kids' needs. Americans get greater
control over their healthcare with expanded health savings accounts.
Working families get better access to childcare and a permanent paid
leave tax credit.
Supporting the working class is deeply personal for me. I was raised
in a single-wide trailer in a town of less than 5,000 people. My
grandparents never had running water. The average income in my hometown
of Salem, Missouri, is just over $24,000. My priority is the working
class because the working class raised me.
Mr. Speaker, I urge my colleagues to support the One Big Beautiful
Bill Act. Make American families and workers thrive again. Make rural
America and Main Street grow again. Help America win again.
Mr. Speaker, I reserve the balance of my time.
Mr. NEAL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this big, beautiful bill must be so beautiful that we
are debating it at a quarter past 4 in the morning to avoid the
scrutiny of the public for a piece of legislation that was authored
just hours ago.
I would challenge some Members on the other side to take an exam on
what was added to this legislation before we have a chance to vet it.
[[Page H2343]]
The chairman, my friend, said how challenging his modest youth was. I
share a similar story. Do you know what? We can both thank Franklin
Roosevelt's New Deal for those opportunities.
When the chairman was talking about growth rates, I thought he was
going to say bring back Bill Clinton because that is where those growth
rates came from.
The cat is out of the bag: $2.3 trillion was borrowed in 2017 to pay
for a tax cut that overwhelmingly went to people at the very top.
What are we about to do this evening, or this morning, or last night?
We are going to borrow $4 trillion--and with interest payments over the
next 10 years, $5 trillion--to justify a tax cut for the billionaire
class. That is what this is about.
As the gentleman from Kentucky, no raving liberal, said, you are
talking about adding $30 trillion to the debt over the next few years.
Mr. Speaker, 14 million people are going to lose their health
insurance to pay for this tax cut for wealthy people. We gut Medicaid,
food assistance, childcare, and healthcare.
Do you know what? Everybody in this Chamber, every Member of this
House, should call their local hospitals and ask them to lay out the
formula for how their pay works in terms of reimbursements.
Overwhelmingly, it is almost two-thirds for Medicare and Medicaid. This
is going to lead, particularly in red States, to closures.
Mr. Speaker, let me give you some numbers that I think are really
intriguing, despite the argument that we heard from the other side
about how all of this money is going to go to people at the lower end.
Their slogan ought to be: We are rich, and we are not going to take it
anymore. That is where this argument is headed.
Mr. Speaker, let me give you some numbers. If you made a million
dollars last year, you are going to get $81,000 of tax relief. If you
made less than $50,000--guess what?--you are not quite so lucky, but do
you know what? A dollar a day goes a long way. That is where the
numbers land.
When they talk about broken promises, I listened to a Republican
tonight on TV, a younger guy. He said that they reject what CBO has had
to say.
In the Ways and Means Committee and in the tax world, this is
scripture. That is how important it is. We might not like the answers
we get from time to time and might be upset about it, but we know that
the people who delivered it are not Democrats, not Republicans. They
are economists, tax attorneys, and CPAs.
Let me just remind everybody on the Republican side about a couple of
other things that I think are really important. Most of them supported
postal reform; that cost money. Republicans voted for the CHIPS Act;
that cost money. They voted for the infrastructure bill; that cost
money. Thirty of them voted for the Butch Lewis Act; that cost money.
How about the PACT Act for our veterans? That cost money.
{time} 0420
The Inflation Reduction Act, despite their efforts to deride it,
their Members are going to groundbreakings and taking advantage of it
right now. One piece of testimony the other night in the committee said
that there is one congressional district that is receiving $6 billion
of investment. Boy, I would hate to explain that to my constituents
that I was sending $6 billion back to Washington.
I call attention to this because they supported these issues along
the way, and now they want an excuse to cut taxes for the people at the
very top. That is where these cuts are going, to the people at the very
top. That is not to be denied.
I hope as we listen in the next few minutes, we hear the contrast
that we would offer if we were in the majority, so we could agree
tonight on the very basic fact that I am going to offer. We could agree
with 98 percent of the tax legislation if they kept the number at
$400,000 and fewer. People under $400,000 would keep their tax cuts,
and people at the top would go to 39.6. Those are Clinton-Obama rates,
and they worked fine for the country.
We all have some degree of honor to keep here. How about those
soldiers from Afghanistan and Iraq? They deserve our care. They are
closing veterans service organizations. I just did a townhall with
veterans. They are astounded by what is happening already.
I am looking forward to the next 25 minutes of debate on this side
and the next 25 minutes of debate on the other side because they are
trying to sell Americans, at 4:22 in the morning, a bad piece of
legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. SMITH of Missouri, Mr. Speaker, I yield 1 minute to the gentleman
from Nebraska (Mr. Smith).
Mr. SMITH of Nebraska. Mr. Speaker, I rise in strong support of this
package, which fulfills commitments to secure our border, rein in
waste, and strengthen the economy for American families.
In the Ways and Means Committee portion of this bill, we build on the
huge success of the Tax Cuts and Jobs Act by further increasing the
standard deduction, increasing the child tax credit, and further
reducing taxes on income earned by family-owned farms, ranches, and
small businesses.
We also make a landmark investment in educating kids with the
inclusion of my bill, the Educational Choice For Children Act, which
creates a tax credit for scholarships to meet the needs of K-12
students and puts more parents back in control of their child's
education, regardless of ZIP Code.
In addition, we are bringing an end to the unauthorized, wasteful,
and redundant IRS direct file program which directly contradicts
taxpayers' best interests.
This moment is years in the making, and we now have the opportunity
to deliver on the job Americans elected us to do in a fiscally
responsible way.
I strongly urge my colleagues to support this bill.
Mr. NEAL. Mr. Speaker, I yield 1 minute to the gentleman from
California (Mr. Thompson), a recipient of the Purple Heart, who knows
something about veteran issues.
Mr. THOMPSON of California. Mr. Speaker, I rise in strong opposition
to this big, terrible bill.
This bill takes healthcare away from 14 million people. With this
bill, 9 million people lose food assistance. It adds $4.3 trillion to
the debt, and that is before the interest on that.
This bill also advances China in the race for renewable energy
superiority at a time when energy demand is soaring off the top of the
charts. All of this is to give a tax cut to the Musk billionaire-type
donors.
Mr. Neal talked about the distribution charts. The distribution
charts are the coin of the realm. That is what we go by. Look at those
distribution charts. They tell the truth. If someone makes under
$50,000 a year, they get a tax cut of about $260. If they make a
million dollars a year, they get a tax cut of about $81,500. All of
this is to give a big tax cut to the richest people in the country. At
the same time our constituents lose and our hospitals and our clinics
will close. Our veterans' community loses. This is a bad bill. I urge a
``no'' vote.
Mr. SMITH of Missouri. Mr. Speaker, I would like to remind the
gentleman from California that a family of four making $96,334, the
median income in California's Fourth District, would see a $2,167 tax
increase if the Trump tax cuts expire.
Mr. Speaker, I yield 1 minute to the gentleman from Kansas (Mr.
Estes).
Mr. ESTES. Mr. Speaker, I rise today to urge my colleagues to support
Republicans' One Big Beautiful Bill Act.
First, let me outline what this bill doesn't do. It doesn't take away
Medicare, Medicaid, or Social Security for Americans who need it, and
it doesn't give lavish tax breaks to millionaires and billionaires.
Here is what it does do: It ends benefits for illegal immigrants.
Instead of giving Medicaid to able-bodied adults, it prioritizes the
benefit for children, seniors, and low-income Americans. It provides a
tax credit for seniors, exceeding President Trump's plan to end taxes
on Social Security. It provides funding for more border security to
keep our country safe. Perhaps more importantly, it extends the
profamily, progrowth policies from the Tax Cuts and Jobs Act that even
The New York Times and The Washington Post admitted gave tax cuts to
middle-class Americans.
How do we know this will work? We know it will work because we saw
[[Page H2344]]
TCJA boost wages, job growth, and tax revenue, despite the CBO's biased
and inaccurate scoring in 2017.
Mr. Speaker, I urge our colleagues to vote in favor of this one big,
beautiful bill.
Mr. NEAL. Mr. Speaker, I yield 2 minutes to the gentleman from New
Jersey (Mr. Pallone), the ranking member of the Energy and Commerce
Committee.
Mr. PALLONE. Mr. Speaker, for months President Trump and
congressional Republicans have been promising that they would not cut
Medicaid or Medicare.
The reality is that Republicans are cutting both Medicaid and
Medicare in this bill. They are essentially repealing parts of the
Affordable Care Act. This bill will destroy the healthcare system of
this country. It keeps getting worse with each GOP amendment.
The GOP tax scam takes healthcare away from at least 13.7 million
Americans so they can give giant tax breaks to billionaires and big
corporate interests. It is a shameful reverse Robin Hood scheme. They
are stealing from the American people to give to the rich.
Republicans are stripping healthcare away from people by putting all
sorts of burdensome and time-consuming roadblocks in the way of people
just trying to get by. The vast majority of people on Medicaid are
already working. This is not about work. It is about burying people in
so much paperwork that they fall behind and lose their health coverage.
If someone loses their health coverage through Medicaid, this GOP tax
scam also bans them from getting coverage through the ACA marketplace.
It is just one of the cruel ways that this bill basically repeals the
ACA and makes it more difficult for people to get affordable health
insurance.
Now, the Republican bill also makes it more difficult for States to
finance their share of Medicaid costs by preventing them from
implementing new provider taxes. This will be catastrophic for States
as their healthcare needs change over time and will force them to
either increase taxes on their residents or cut healthcare services.
For those of you who say it doesn't impact Medicare, the GOP tax scam
will also cut Medicare, I repeat, Medicare. It is basically a $500
billion cut to Medicare because of the sequestration under the paygo.
The Medicare cuts will lead to reduced access to care for seniors,
longer wait times for appointments, and increase costs.
Mr. Speaker, the GOP tax scam destroys America's healthcare system by
cutting over $1 trillion dollars, and this bill should be defeated.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman
from Illinois (Mr. LaHood).
Mr. LaHOOD. Mr. Speaker, I rise in support of the One Big Beautiful
Bill Act.
For the past year, Republicans on the Ways and Means Committee have
worked to craft tax policy legislation that delivers on our promises to
the American people and will provide rocket fuel to our economy.
By making President Trump's historic tax cuts permanent, expanding
the child tax credit, removing taxes on tips and overtime pay,
delivering tax relief for seniors, permanently expanding the small
business deduction, and putting in place the research and development
tax credit, and much more, H.R. 1 will give a vital boost to our
families, workers, farmers, and businesses nationwide.
I am proud to say that this package also includes language from my
bipartisan legislation, the Affordable Housing Credit Improvement Act.
I have heard from constituents and local leaders across Illinois' 16th
Congressional District that have expressed that a lack of available,
affordable housing is one of the most significant barriers to economic
success in their communities and across the country.
By expanding and improving the Low-Income Housing Tax Credit, H.R. 1
will jump-start the development and construction of affordable housing
nationwide and support the needs of our growing workforce.
Mr. Speaker, I urge my colleagues to support the bill.
{time} 0430
Mr. NEAL. Mr. Speaker, I yield 1 minute to the gentleman from
Illinois (Mr. Davis), who has worked in the adoption space and is a
model for America.
Mr. DAVIS of Illinois. Mr. Speaker, Margaret Wolfe Hungerford said:
``Beauty is in the eye of the beholder.''
I behold no beauty in cutting and seeing cut the heart out of
healthcare in America.
I see no beauty in children not being able to take care of themselves
because their parents don't have the resources.
I see no beauty in a bill that promotes wealth for the wealthy and
decreases services and resources for those at the bottom.
It is a bad bill. It is not good for America.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman
from Iowa (Mr. Feenstra).
Mr. FEENSTRA. Mr. Speaker, I thank Chairman Smith for yielding me
time.
Mr. Speaker, President Trump's one big, beautiful bill delivers on
the promises that we made to Iowa's workers, manufacturers, farmers,
small businesses, and our families.
The bill increases the small business deduction, helping Iowa's small
businesses invest in their workers and grow their operations. It also
doubles section 179 small business expensing, which means better-paying
jobs for every Iowan worker.
President Trump promised a manufacturing revival in our country, and
Iowa will be the first to deliver it. We restored R&D expensing and 100
percent bonus depreciation to rebuild domestic manufacturing, creating
new jobs, and bringing investment back to our country and back to our
State.
President Trump promised a strong economy and manufacturing
dominance, and our big, beautiful bill delivers this for our country
and for Iowans.
Mr. Speaker, I thank President Trump for that promise.
Mr. NEAL. Mr. Speaker, I yield 1 minute to the gentlewoman from
California (Ms. Sanchez).
Ms. SANCHEZ. Mr. Speaker, the bill that we are debating this morning
is an insult to every American who works for a living. American
families are struggling. Under President Trump and Republican
leadership, they have seen nothing but chaos.
Prices for everyday necessities, such as food, clothing, diapers, and
formula, keep rising because of Trump's tariffs. Premiums for health
insurance, car insurance, and housing are going up, making it harder to
make ends meet.
Americans are worried about their future. People are afraid of losing
their jobs, their healthcare, student aid, and food assistance. This
bill brings that pain.
Almost 14 million people will lose their healthcare coverage under
this Republican bill, and for what? It is so billionaires can get even
richer while the rest of us drown in debt. This is outrageous.
Republicans are doling out tax cuts for the wealthiest while destroying
the means of survival for hardworking families.
This bill assaults those seeking the American Dream by stealing tax
benefits and services from working people who are paying taxes. It
would deny the child credit to 2 million children who live in the
United States.
Here is an idea: How about you start working for the people who you
represent, not your wealthy donors? I guess that is asking too much
from people who have lost their moral compass.
Mr. SMITH of Missouri. Mr. Speaker, if the Trump tax cuts expire, in
the Congresswoman's district, 95,070 of California-38 families would
see their household child tax credit slashed in half.
That is helping your constituents.
Mr. Speaker, I yield 1 minute to the gentleman from Oklahoma (Mr.
Hern).
Mr. HERN of Oklahoma. Mr. Speaker, I rise in strong support of this
one big, beautiful bill.
The American people have heard a lot of lies about this bill. The
left and their friends in the media have settled for demagoguing and
fear-mongering to try to stop President Trump from delivering on his
promises to the American people.
Fortunately for all of us, the bill that they conjured up just simply
doesn't exist.
What does exist is a bill that champions working-class families. It
strengthens the middle class and provides much-needed support to small
businesses.
[[Page H2345]]
It is thanks to President Trump's leadership on this big, beautiful
bill that we have something we can all be proud of.
Mr. Speaker, I thank all of the committees and the chairs who worked
on this legislation, but particularly our chairman of the Ways and
Means Committee, Jason Smith, who knew 2 years ago that this might
happen, that this might occur and that we would be in exactly this
position. He spent those years ensuring that our committee was
prepared, educated, and empowered to be ambassadors for the President's
tax policies.
Mr. Speaker, I urge my colleagues to vote ``yes.''
The SPEAKER pro tempore (Mr. Womack). Before I recognize the
gentlement from Massachusetts, let me remind both sides to direct their
comments to the Chair as we continue through debate.
Mr. NEAL. I always do, Mr. Speaker, thank you. I yield 1 minute to
the gentlewoman from Alabama (Ms. Sewell), whose hospitals I have
visited.
Ms. SEWELL. Mr. Speaker, I rise in strong opposition to the one big,
billionaire, boondoggle bill. We are here because, according to
President Trump, Elon Musk, and Republicans in Congress, billionaires
and giant corporations don't have enough money.
We could be working to help Americans deal with the high cost of
living. We could be working to make sure that healthcare is affordable
for all, but what are we doing? At 4:35 a.m. in the morning, we are
preparing to vote on a bill that will provide a $4 trillion tax
giveaway to the wealthy, well-connected, and well-off.
How will we pay for it? We will pay for it by kicking 13.7 million
Americans off of Medicaid and cutting $300 billion in SNAP benefits
from hungry families. The people who I represent in Alabama's Seventh
Congressional District are good and honest Americans. They work hard
every day. They make enormous sacrifices to support themselves and
their families, but they are hurting. They are hurting and being
crushed by the high cost of living, and they live paycheck to paycheck.
Meanwhile, my Republican colleagues are hell-bent on providing and
making life much harder for them. It is outrageous. It is simply
unacceptable. This is a sad day in Congress. I strongly oppose this
bill, and I give this warning: Hands off Medicaid, and hands off SNAP.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the
gentlewoman from West Virginia (Mrs. Miller).
Mrs. MILLER of West Virginia. Mr. Speaker, I rise today in strong
support of the One Big Beautiful Bill Act. Ways and Means Committee
Republicans have worked tirelessly for 2 years, traveling across
America, and hearing from real people about the impacts that the 2017
Trump tax cuts had on them. Working families got more money back in
their paychecks from a simplified tax code. Main Street America was
able to utilize the small business deduction to weather the storm of
high inflation during the Biden years, and larger businesses were able
to invest more of their money domestically because of a globally
competitive corporate rate.
This one big, beautiful bill builds on all of that successful tax
policy and then some.
This bill gives the average working family a $1,300 tax cut. It
delivers on President Trump's promises of no tax on tips and no tax on
overtime pay.
It makes the 199A small business deduction permanent to keep our
economy humming. It provides relief to gig workers by ending the
Democrats' ridiculous $600 1099(k) reporting threshold and reverting
back to the time-tested standard of $20,000 and 200 transactions. This
legislation will undoubtedly make the life of the average American
better.
Mr. NEAL. Mr. Speaker, I yield 1 minute to the gentlewoman from
Washington (Ms. DelBene), who really knows something about the child
credit.
Ms. DelBENE. Mr. Speaker, President Trump and Republicans love
calling this one big, beautiful bill, but it is really one big, broken
promise.
Republicans swore that they would lower costs on day one. Instead,
families are paying more for groceries, energy, and healthcare bills.
Republicans have spent months fighting over how many Americans they are
going to kick off of Medicaid and how fast.
This is literally a matter of life and death, and for what? Another
massive round of tax breaks to pad the wallets of the ultrawealthy and
big corporations.
A mom from Kirkland told me recently that she was horrified to see
what Republicans are doing to these programs. She raised two kids with
the support of Medicaid, SNAP, and the child tax credit. She said that
the supports that Republicans are cutting help real people live real,
productive lives.
Mr. Speaker, I urge Republicans to listen to their constituents and
vote ``no'' on this big, broken promise.
Mr. SMITH of Missouri. Mr. Speaker, this is what this one big,
beautiful bill is all about.
{time} 0440
This is what 77 million Americans voted for: make the 2017 Trump tax
cuts permanent, no tax on tips, no tax on overtime, no tax on car loan
interest, and tax relief for seniors. The one big, beautiful bill puts
money back in the pockets of the people who make this country run.
President Trump promised a new golden age, and House Republicans are
delivering on that promise. The American people are counting on
Congress to get the job done.
Let's pass this bill. Let's deliver for American workers, farmers,
families, and small businesses.
Mr. Speaker, I yield 1\1/4\ minutes to the gentlewoman from New York
(Ms. Malliotakis).
Ms. MALLIOTAKIS. Mr. Speaker, in this bill, we are providing real tax
relief for hardworking Americans, middle-class families, and our senior
citizens, not the billionaires like the Democrats claim.
We increased the State and local tax deduction, the standard
deduction, and the child tax credit. The last two would be cut in half
if we take no action today.
We provide tax relief by including my legislation to provide a bonus
deduction to reduce the taxes that our seniors pay on their Social
Security income.
We fulfill President Trump's commitment to eliminate taxes on tips
and overtime.
We stopped the return of the alternative minimum tax that crushed
middle-class families.
We allow Americans to fully deduct auto loan interest on their
American-made vehicles.
We help young graduates with student loan debt get reimbursed by
their employers tax-free.
All of that is for the working and middle class, not billionaires.
We also make sure that this bill keeps our borders secure and funds
the deportation of criminal illegal immigrants. We increase and
strengthen domestic energy production and security. We safeguard
Medicaid for our seniors, disabled, and children with disabilities. We
crack down on fraudsters by targeting waste, fraud, and abuse.
The Democrats can continue to fight for the fraudsters. They continue
to fight for the illegal immigrants. We are going to deliver for the
working families, middle class, and senior citizens.
Mr. NEAL. Mr. Speaker, I remind the gentlewoman that the SALT
deduction that we offered in our tax bill on a secret ballot would have
gotten all the Republicans from New York, New Jersey, and California.
Mr. Speaker, I yield 1 minute to the gentlewoman from Wisconsin (Ms.
Moore), who nobody has ever walked away from saying that they think she
is undecided.
Ms. MOORE of Wisconsin. Mr. Speaker, I will just say this: The
greatest trick that the devil plays is to convince you that it won't be
you who he devours. It will be those others, those so-called illegals,
those trans people, the welfare queens, and the boy in the basement who
won't work.
The majority justifies slashing hundreds of billions of dollars from
Medicaid, undermining the ACA, cutting half a trillion dollars in
Medicare, adding trillions to the debt, and facilitating the
dismantling of care from hospitals, community health centers, and
nursing homes to finance billionaire tax cuts.
Then, the bell sounds, and they screech: ``For whom does the bell
toll?'' It tolls for thee.
[[Page H2346]]
Mr. Speaker, I will yield back, but I will not yield my soul. Do not
vote for this bill.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman
from Tennessee (Mr. Kustoff).
Mr. KUSTOFF. Mr. Speaker, I rise today to speak in favor of the One
Big Beautiful Bill Act.
My colleagues and I on the House Ways and Means Committee on the
Republican side have been preparing for this moment for 2 years.
Mr. Speaker, we have traveled across the country and conducted field
hearings, meeting and hearing from individuals, manufacturers, farmers,
and small business owners. The message that we got from them was clear:
Make permanent all those successful provisions from the Tax Cuts and
Jobs Act of 2017.
There is no doubt that when we passed the Tax Cuts and Jobs Act of
2017, we ushered in a red-hot economy that created jobs and
opportunities for all Americans.
It is essential that the House of Representatives pass this bill
today to cement a progrowth tax code and usher our Nation into a new
era of prosperity for all.
The American people in November voted overwhelmingly for this, and
now it is our time to deliver.
Mr. NEAL. Mr. Speaker, I yield 2 minutes to the gentleman from
Massachusetts (Mr. Lynch), the ranking member of the Oversight
Committee and my friend.
Mr. LYNCH. Mr. Speaker, I thank the gentleman from Springfield for
yielding.
Mr. Speaker, I rise this morning on behalf of our friend and
colleague Gerry Connolly, the gentleman from Virginia, with the hope of
infusing this debate with his passion and wisdom on behalf of the
Federal workers for whom there was no greater champion.
Gerry was especially grateful for the Federal workers at the VA and
the Walter Reed Medical Center, especially the nurses, therapists,
physicians, and support staff who care for our veterans and active
military.
In all honesty, Gerry was furious at the way the Federal workers and
veterans are being treated under this bill. He was angry that Donald
Trump purged 325,000 Federal workers, including at least 3,000 workers
at the VA. He was angry that the cuts in this reconciliation bill will
require the firing of 80,000 more workers at the VA. At least 27,000 of
those workers are veterans themselves.
While the termination of these workers at the VA is outrageous and
disrespectful, it is only half the story because it is the mission of
those workers at the VA to care for our veterans that will be ended, as
well.
Each of us should remember that veterans' benefits are different.
They are special obligations taken on by our country, our society, and
our Congress. Veterans' benefits are obligations owed to our veterans
for courageous service previously rendered. It is the promise to every
son and daughter who puts on that uniform that if you come home from
service with the scars of war, visible or invisible, we will take care
of you and your family.
That promise has been maintained throughout this Nation's history by
Democratic and Republican administrations without pause until now,
until tonight, until Donald Trump signs this bill.
Mr. Speaker, this is a disgraceful way to treat both workers at the
VA and the veterans they serve. I urge my colleagues to vote against
this bill.
Mr. SMITH of Missouri. Mr. Speaker, I yield 2 minutes to the
gentleman from Arkansas (Mr. Westerman), the chairman of the Natural
Resources Committee.
Mr. WESTERMAN. Mr. Speaker, I thank Chairman Smith for yielding and
for his leadership, patience, and unwavering dedication to putting this
tax policy and budget reconciliation bill before us.
Mr. Speaker, I rise today in support of the opportunity we have to
not only provide historic tax relief for hardworking Americans but also
to spur investments in our economy by developing the resources of our
land.
This is our unique opportunity to do something truly worthy to be
remembered in our day and in our generation. The Natural Resources
Committee is proud to have played a key part in this legislation.
Our title far exceeds our $1 billion instruction. The Congressional
Budget Office estimates it will generate over $20 billion in savings
and new revenue for the Federal Government, primarily by direct royalty
and lease fees from the sale of oil, gas, timber, and mined resources,
while curbing wasteful spending.
CBO's direct revenue evaluation is only a paragraph in a much larger
story.
Mr. Speaker, it is impossible to utilize billions of dollars of
resources without massive investments in oil rigs, pipelines, LNG
facilities, mines, refineries, sawmills, mobile equipment, machinery,
workforce development, and the list goes on and on with the upstream
and downstream economic benefits of resource development.
Our title reinstates onshore and offshore oil and gas lease sales,
holds annual geothermal lease sales, and ensures a fair process for
critical mineral development nationwide.
We have also directed the Forest Service and the Bureau of Land
Management to utilize long-term timber sale contracts. We are putting
our fiscal foot forward by using America's resources to generate wealth
for America while restoring American energy dominance and giving
Americans the opportunity to make products from America, in America,
and for America and the world.
Mr. Speaker, I urge my colleagues to join me in kick-starting this
new golden age of America by voting ``yes.''
{time} 0450
Mr. NEAL. Mr. Speaker, I yield 1 minute to the gentleman from
Virginia (Mr. Beyer), who really knows something about the bond market.
Mr. BEYER. Mr. Speaker, our dearly departed friend and colleague
Gerry Connolly used to say our job was to comfort the afflicted and
afflict the comfortable. This bill does the opposite.
My Republican friends say this act is about helping the working
families in America, but nothing could be further from the truth. This
monstrous bill strips healthcare from 14 million Americans and cuts
$300 billion in food and nutrition assistance from working Americans
while giving a temporary head fake to those working overtime and
working for tips. It actually raises taxes on the poorest 20 percent of
Americans, exactly the folks my Republican friends pretend it helps.
The overwhelming benefits of H.R. 1 flow to the wealthiest Americans,
the largest transfer of wealth from working Americans to the rich in
the history of our country.
Mr. Speaker, Gerry Connolly was a devout Catholic who studied to be a
priest. He and I agreed that the essence of this bill sends the
opposite of the message of the New Testament, which is to give our
lives to help the poor.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman
from Texas (Mr. Moran).
Mr. MORAN. Mr. Speaker, today, I rise in strong support of the One
Big Beautiful Bill Act.
This bill is our opportunity to deliver on the promises we made to
the American people. It is our chance to put working families, small
businesses, and communities back at the center of our economic future.
In the First District of Texas, the median income is just $62,000. If
we fail to pass this bill, a family of four at that income level will
see their taxes go up by over $1,100, a staggering 22 percent increase.
That is not just a number. That is 6 weeks' worth of groceries. That
is money that could be used to fix a truck, invest in a small business,
or save for a child's future.
If we do pass this bill, we protect that $1,100 of hard-earned
income. In fact, we protect every American's money.
At its core, the One Big Beautiful Bill Act is about more than
dollars and cents. It is about liberty and empowering the American
people. It is about giving families, workers, and small businesses the
freedom to thrive without government taking more of their money.
We have the chance in this moment to expand opportunity, restore
dignity and work, and strengthen the American Dream. That is worth
fighting for.
Let us not fail in this task. Let us pass the one big, beautiful
bill.
Mr. NEAL. Mr. Speaker, I yield 1 minute to the gentleman from
Illinois
[[Page H2347]]
(Mr. Schneider), a very thoughtful member of the Ways and Means
Committee.
Mr. SCHNEIDER. Mr. Speaker, I rise in opposition to this bill and in
support of America's working families, families who are trying to
provide healthcare, feed their children, and secure their futures.
My Republican colleagues continue hiding under the cover of darkness
as we sit here at almost 5 in the morning, wrapping up. What are they
trying to hide? Are they trying to hide the largest cut ever to
Medicaid with 14 million losing healthcare, the largest cut ever to
fighting child hunger, and adding $5 trillion to the Nation's debt, all
to line the pockets of Trump's superrich family and friends?
Just yesterday, the nonpartisan Congressional Budget Office assessed
that the bottom 10 percent of taxpayers will be poorer because of this
bill while the top 10 percent will get richer. Not only that but the
CBO also determined that the Republican plan to explode the deficit
will trigger mandatory cuts to Medicare totaling $500 billion.
My Republican colleagues are attempting to hide the truth of this
bill because they know the pain it will inflict on American families.
This is not one beautiful bill. It is one awful deal for the country.
Mr. Speaker, I urge my colleagues to oppose the bill and to stand up
for their constituents, who will be worse off if this bill passes.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman
from Indiana (Mr. Yakym).
Mr. YAKYM. Mr. Speaker, I rise in strong support of the One Big
Beautiful Bill Act, the profamily, proworker, progrowth bill before us.
We keep hearing the same tired claims from my friends on the other
side of the aisle about giveaways to the rich. They said the same
things about the Tax Cuts and Jobs Act. Do you know what? It wasn't
true.
Even The New York Times admitted that most payers got a tax cut, but
many didn't believe it. Why? ``To a large degree, the gap between
perception and reality on the tax cuts appears to flow from a sustained
and misleading effort by liberal opponents.''
Are the American people going to believe their bank accounts, or will
they believe the same people who told them it was a racist conspiracy
theory that COVID originated in a Wuhan lab, who censored Hunter
Biden's laptop as Russian disinformation, and who insisted that the
former President was doing cartwheels in the Oval Office?
Mr. Speaker, I urge my colleagues to support this bill.
Mr. NEAL. Mr. Speaker, I might say that the former President was
writing historic legislation in the Oval Office and at least signing
the products that came from these committees.
I yield 1 minute to the gentleman from California (Mr. Panetta), a
very important member of the Committee on Ways and Means.
Mr. PANETTA. Mr. Speaker, this Republican partisan tax bill will be
the largest self-inflicted wound on America's working families in our
Nation's history, with the largest cut in healthcare and food
assistance to pay for the largest tax cuts for billionaires.
I get that this bill is about fulfilling the President's promises,
but like the President, we can't rely on it for working families, as
the bottom 10 percent would lose basic services so that the top 10
percent can increase their wealth.
What is worse is that, in order to pay for this bill, they are
relying on not just the cuts but fabricated economic growth numbers,
ignoring costs of the TCJA, and hoping that there are revenues from
tariffs.
Yet, even with all of that, they stick it to our children by adding
trillions to our Federal debt.
Look, not only are our creditors and allies losing faith in our
Nation, but Americans watching this tonight are losing faith in
Congress. If we work together, we could help working families, bring
down prices, and bring down our national debt. Ultimately, we could
have restored faith in this institution.
Instead, Mr. Speaker, I am voting ``no'' on this partisan bill
because it gives in to the President's politics, breaks promises to
working families, and gives up on our promise to the future of our
children.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the
gentlewoman from Texas (Ms. Van Duyne).
Ms. VAN DUYNE. Mr. Speaker, over the past 2 years, my colleagues and
I on the Ways and Means Committee have traveled around the country,
listening to working families, small business owners, and job creators.
North Texans have been very clear: They want relief, certainty, and a
tax code that works for them, not against them.
Last week, we delivered. The bill that we passed out of committee
reflects the real needs of our communities and the promises that we
made to the American people. It is a strong, commonsense compromise
that builds on the success of the 2017 Tax Cuts and Jobs Act.
This bill expands the child tax credit, makes the small business
deduction permanent, and boosts the standard deduction with a new
enhancement for seniors. It restores immediate expensing for R&D and
increases access to tax-free health savings accounts.
In short, this one big, beautiful bill stops the largest tax increase
in American history and delivers historic tax relief instead.
I look forward to its swift passage and to President Trump signing it
into law.
Mr. NEAL. Mr. Speaker, I yield 1 minute to the distinguished
gentleman from California (Mr. Gomez), a valuable member of the Ways
and Means Committee.
Mr. GOMEZ. Mr. Speaker, let's get it straight. This is one big bill,
but it is a bill that steals Medicaid. It steals SNAP. It steals all
the assistance for working people in order to give tax breaks to the
billionaires in this country.
Those making less than $30,000 a year will pay $20 billion more in
taxes over the 10-year period. If you make $50,000 a year, you have a
50/50 chance of seeing any kind of change in your taxes while the
billionaire establishment gets a cut of $270,000.
This is the biggest transfer of wealth in our Nation's history. It is
literally stealing from the poor to give to the rich.
They want to talk about how they went around the country to listen.
Well, they didn't listen very hard because what the Republicans are
doing is hurting average working people. They are not helping when it
comes to housing. They are not helping when it comes to childcare. They
are not helping.
When they do talk about housing, it is 20,000 units a year for 10
years. That is a drop in the bucket.
We need our Republican colleagues to actually do something besides
the cheap talk and theatrics of going around the town but only
listening to the billionaires at the end of the day.
Mr. SMITH of Missouri. Mr. Speaker, if the Trump tax cuts were to
expire in Mr. Gomez's district, a family of four making $62,008, the
median income in California's 34th District, would see a $1,139 tax
increase.
Mr. Speaker, I yield 1 minute to the gentleman from Florida (Mr.
Bean).
Mr. BEAN of Florida. Mr. Speaker, it is a scary time for taxpayers in
the United States or those who own small businesses. Both are facing a
tsunami of tax increases, the largest in U.S. history.
Mr. Speaker, I have good news: Help is on the way. The One Big
Beautiful Bill Act is real tax relief for real Americans. It is for
those who are paid in tips, for hourly workers who are working
overtime, and for families and seniors who have been struggling under
the weight of inflation. It is for the 91 percent of Americans who use
the standard deduction.
The bill expands the child tax credit. It secures our border and
enhances education and health savings options. It unleashes American
energy. It will encourage production on U.S. soil. Made in America will
mean something once more.
Buckle up, America, and put your seat in the upright position
because, with the passage of this bill, the golden age of America is
ready for takeoff.
{time} 0500
Mr. NEAL. Mr. Speaker, may I inquire as to how much time is
remaining.
The SPEAKER pro tempore. The gentleman from Massachusetts has 10\1/2\
minutes remaining. The gentleman from Missouri has 8\1/2\ minutes
remaining.
[[Page H2348]]
Mr. NEAL. Mr. Speaker, I yield 1 minute to the gentleman from Nevada
(Mr. Horsford), who is a terrific advocate for the people of his
constituency.
Mr. HORSFORD. Mr. Speaker, I thank the chairman for yielding time.
Mr. Speaker, this is no way to govern. In the dead of the night,
congressional Republicans are passing this partisan, big, ugly bill for
billionaires.
Who are they here to serve? Are they here to serve billionaires or
the constituents who elected them to bring down costs and to make life
more affordable?
Their constituents, like mine, rely on Medicaid and public education,
veterans' programs, SNAP, childcare, Head Start, and Medicare.
Republicans claim to be for the working people, and yet the meager
tax relief of about $1 a day that middle-class workers and families
receive under their plan is temporary. The tax cuts for billionaires
and big corporations are permanent. That is a choice.
I am for permanent tax cuts for moms and dads and for small business
owners. Who are they here to serve? The GOP budget cuts from the masses
to give to the few, to billionaires who barely pay taxes to begin with.
I know who I am here to serve. I serve the 750,000 people from Nevada
who elected me. I will continue to fight for them to make their lives
better and not worse.
Mr. Speaker, I urge my colleagues to stand with their constituents
and against the billionaires.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, let's talk about who benefits from this bill. A single
mom, a waitress in Nevada is working long hours. She is raising one
child. She is living paycheck to paycheck. She gets a bigger standard
deduction underneath our legislation. She won't pay taxes on tips in
our legislation. She gets a boosted child tax credit.
That is a tax cut of $4,891. That is not pennies. That is real money
for working Americans. This is what it means to stand with the working
class and millions of tipped workers.
Mr. Speaker, I yield 1 minute to the gentleman from Ohio (Mr.
Miller).
Mr. MILLER of Ohio. Mr. Speaker, I thank Chairman Smith and the Ways
and Means Committee for all the hard work they put into this
legislation.
Mr. Speaker, strengthening our economy starts at home. I am proud to
rise in support of the One Big Beautiful Bill Act which delivers much-
needed tax relief to the American workers, farmers, and families.
This legislation builds on the foundation laid by the 2017 tax
reforms, allowing families to keep more of their hard-earned money,
empowering them to invest in their futures, support their children, and
build brighter lives.
I am especially pleased that this bill includes making the increased
standard deduction levels from 2017 permanent. Simplifying the tax code
has been transformative, especially for working-class communities where
most taxpayers claim the standard deduction. The guaranteed standard
deduction has made tax season faster, easier, and far less stressful
for millions of Americans.
Mr. Speaker, the facts are clear. Over 93 percent of my constituents
claim the standard deduction. If we fail to act, millions of Americans
will see a tax hike of nearly $2,000 per household.
Permanency gives working families the certainty they need to plan
ahead, whether it is saving for college, investing at home, or simply
trying to make ends meet with confidence and greater financial
security.
Mr. Speaker, I urge my colleagues to vote ``yes.''
Mr. NEAL. Mr. Speaker, I yield 1 minute to the distinguished
gentlewoman from Massachusetts (Ms. Pressley).
Ms. PRESSLEY. Mr. Speaker, I rise in vigorous opposition to this bill
that is callous and cruel and clueless about what the American people
are dealing with.
We are talking about generations of harm, lives lost because of
defunded cancer research, pregnant mothers denied essential healthcare,
school lunch programs gutted, and our babies hungry if this bill is
passed.
For what? It will line the pockets and stroke the egos of a fewer
petty billionaires.
I believe in the promise of this Nation. I believe in the possibility
that government can do right by people and help us through our most
vulnerable moments. This bill is the antithesis of that. This bill is a
threat to the lives and livelihoods of so many people.
The mood up here is somber. Republicans are gleeful. It is somber
because this is shameful. We just need four Republicans to be people of
conscience and stand up against this.
In exchange, my colleagues across the aisle can save lives. They can
look their kids in the eye. They can say that when everything was at
stake, they had clarity and did the right thing.
Mr. Speaker, I am not begging my Republican colleagues for
benevolence. I am asking them for decency. I ask them to do right by
the people that sent them here.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman
from Virginia (Mr. McGuire).
Mr. McGUIRE. Mr. Chairman, I thank the chairman for yielding time.
Mr. Speaker, President Trump and the Republican trifecta were elected
this November to deliver results for the American people.
This one big, beautiful bill we are considering today pinpoints
waste, fraud, and abuse. It secures our borders. It reignites economic
growth.
These are impactful tax cuts, reducing Social Security taxes,
eliminating taxes on tips, and eliminating taxes on overtime will help
the middle-class American people.
If the 2017 tax cuts are allowed to expire, 56,000 small businesses
in my district alone would experience a 43.4 percent tax hike. Over
8,000 family-owned farms would have their death tax exemption slashed
in half.
I came to Congress to deliver real results, and that is what this
bill does. In the defense portion of the bill, $34 billion is allocated
for shipbuilding and the maritime industrial base in my district of
Virginia and the United States.
Mr. Speaker, this bill delivers on the America First promises
President Trump and congressional Republicans made to the American
people.
Mr. NEAL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, before I yield to the Democratic leader, I want to talk
a little bit about what I began with.
First of all, let me just say as a courtesy and as a member of the
Ways and Means Committee for 33 years, this debate should be taking
place during the day. I know the Members on the other side feel the
same way.
There is no reason at 10 minutes after 5 o'clock in the morning to
debate a bill of this consequence. It is as simple as that. These were
legislative courtesies that we once extended to each other. There is no
reason for it to play out at a time when most Americans can't dial in
to hear the debate.
Mr. Speaker, there is no getting away from the fact that the
Republican Party, the party of fiscal rectitude, the party that has
lectured us for decades on spending patterns, is about to borrow $4
trillion for a tax cut that is overwhelmingly going to go to people at
the very top including the billionaire class.
What is troubling about it is that if we look back at these tax cuts,
as I noted, it is $10 trillion of tax cuts from 2001 to this moment. In
2017, it is borrowed money. It is $2.3 trillion of borrowed money.
This is $4 trillion. When we are done paying the interest on it over
the next 5 years, as the bond market reminded us again today, it is
closer to $5 trillion, and the Republicans are the party of fiscal
rectitude.
{time} 0510
I call attention, again, to this because we would say that if you
kept these tax cuts for people under $400,000 a year, Mr. Speaker, then
you would get a buy-in from us. We are okay with that. We object to the
idea that people who are about to derive the biggest benefit don't need
it, and in most instances, they weren't asking for it as well.
The theology that tax cuts pay for themselves is nonsense. We have
heard that forever, but it is that continued effort that Republicans
have to suggest that no matter what happens, a tax cut should be the
most important consideration.
There were two wars, Iraq and Afghanistan, two tax cuts during those
[[Page H2349]]
years? During the years of the collapse of Wall Street, there were $2.3
trillion of tax cuts?
Ronald Reagan had the good sense when he found out what the tax cuts
meant against spending cuts, he reversed the position during that time.
However, Mr. Speaker, the current Republican Party subscribes to this
notion that you can be for infrastructure--you can take defense
spending now that is heading over $1 trillion, you can vote for the
infrastructure bill, you can vote for the CHIPS Act, you can vote for
postal reform--and, yes, 30 Members voted on that side for the Butch
Lewis Act--and you can do all these things and simultaneously cut
taxes.
No, Mr. Speaker, you can't, and we know that.
We are in a position to argue, I think, with great force for the
American people because I know what happened. For all their talk about
what happened in the tax cut of 2017, we easily won the House the next
year.
The American people don't buy this. That is because they know where
these tax cuts are going. They are intended to help people at the top
when it is really the people at the bottom and in the middle who need
help.
Hospitals are going to close. Children are going to go hungry, and
healthcare is going to be denied, but the billionaire class is going to
pick up a considerable number of dollars.
Again, the number that I cited earlier, Mr. Speaker, was that if you
make $1 million, then you will pick up 90,000 additional dollars. That
is almost 10 percent. If you make under $50,000, Mr. Speaker, you are
getting $1 a day? Is that what this tax package means?
Defeat this bill. Send it back to the Ways and Means Committee.
Compel that committee to negotiate. We can come up with a plan where
the middle class would get the tax cuts, and then we would address
subsequently the debt that is plaguing this Nation.
This legislation will take us to $40 trillion worth of debt, and they
are going to lecture us on debt?
It is the old story: On Monday they blame us for debt, and on Tuesday
they add $4 trillion to it.
Mr. Speaker, I reserve what I have remaining of time unfinished, but
I will yield at the appropriate moment to the Democratic leader.
Mr. Speaker, I thank you for the fair manner in which you have done
this, as well.
Mr. SMITH of Missouri. Mr. Speaker, I yield 30 seconds to the
gentleman from New York (Mr. Lawler).
Mr. LAWLER. Mr. Speaker, when I ran for Congress, I said that I would
never support a tax bill that did not adequately lift the cap on SALT.
This bill does that. It increases the cap on SALT by 300 percent.
I would remind my Democratic colleagues when they had full control in
Washington, they lifted the cap on SALT by exactly zero dollars, zilch,
zip, nada. There was not $1 of increase in tax relief for hardworking
New Yorkers.
To all my New York colleagues on the other side of the aisle: Before
you speak out and say that you don't support a 300 percent increase on
the cap on SALT, the fact is that this bill adequately addresses the
cap on SALT and provides tax relief to hardworking middle-class
families.
Mr. NEAL. Mr. Speaker, I had not intended to rebut, Mr. Speaker,
however, our tax bill had an $80,000 cap on SALT, and it passed the
House of Representatives.
Mr. Speaker, I reserve the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman
from Georgia (Mr. Collins).
Mr. COLLINS. Mr. Speaker, as a small businessman who started his
business career under George H.W. Bush and operated that business all
the way through all the administrations up to and including the Biden
administration, I can unequivocally say that the Trump tax policies in
the Trump administration were the best for small businesses, period.
That is why I joined the majority of the Americans across this country
to vote to make those Trump policies permanent.
You see, Mr. Speaker, it doesn't matter if you have two college
degrees, no college degrees, Brown, Black, White, Trump's policies
lifted all boats. That is why I encourage my colleagues to join me,
pass this bill, and vote for Main Street.
Mr. NEAL. Mr. Speaker, I reserve the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman
from Louisiana (Mr. Scalise).
Mr. SCALISE. Mr. Speaker, I thank my friend from Missouri for his
leadership and getting us to this point. So many other chairmen will
talk about that, too.
I rise in strong support, Mr. Speaker, of this one big, beautiful
bill, this bill that is going to deliver on so many promises that the
American people asked us to do for them.
We have elections in this country, and we had an election that had a
lot of crystal-clear messages sent in November. We had a contrast,
maybe one of the sharpest contrasts between two candidates for
President.
If you read this bill, Mr. Speaker, and maybe some of my friends on
the other side haven't read it by some of the comments they have made,
because you would think it is 2017 all over again when you listen to
the things that they said. They have said the same things they are
saying tonight that they said in 2017, none of which turned out to be
reality.
They had an opportunity to make their case for raising taxes on the
American people. In fact, their candidate for President was for a lot
of the same things they are for tonight: Letting the Trump tax cuts
expire to punish those middle-class and low-income workers who
benefited the most from those tax cuts. They benefited tremendously.
President Trump said that he was going to lock those tax rates in,
not giving all these tax breaks the minority is talking about to
millionaires and billionaires but, in fact, to help the working
families of this country who are struggling.
They struggled after 4 years of the last administration. The weight
of the failures of their policies raised inflation, raised interest
rates, made homeownership unachievable, and made the ability to fill
their own grocery carts unachievable. President Trump said he would
reverse it.
How else did he say he was going to reverse it? President Trump said
that we were going to produce more American energy.
Now, the other side of the aisle has been very clear for years with
an all-out assault on American energy. They have carried it out. They
have voted for it. They campaigned on it, and the voters rejected that
false premise, that failed approach.
Now, maybe they are upset that the voters said: We want to produce
more energy in America. However, Mr. Speaker, President Trump was
crystal clear: If you elect us, elect President Trump, elect a
Republican House and Senate, then we will deliver for you. We will open
up more American energy from ANWAR in Alaska to the Gulf of America.
That is what he campaigned on. Maybe they are upset that he is actually
delivering on those promises and that this bill delivers on those
promises.
It is a promise that will lower prices at the pump. When you go to
the gas station, Mr. Speaker, you will be able to fill up your car. So
that is in this bill.
It also creates more jobs. Now, there are some people, clearly, who
don't like that. It is not just my friends on the other side of the
aisle who don't want to produce more American energy.
Do you know who else doesn't want those provisions in this bill, Mr.
Speaker? It is countries like Russia and countries like Iran who have
been making billions of dollars a month selling their energy on world
markets because of the failed Biden policies, the policies that allowed
them to enrich their countries and use that money for evil to fund the
war in Ukraine and to fund wars on terror around the world.
Terrorist organizations like Hamas, Hezbollah, and the Houthis were
funded by the billions of dollars a month that those countries got from
selling their oil on world markets because America was shut down.
America will be shut down no more when this one big, beautiful bill
is passed into law because we will be able to produce our own energy
here in America.
My friend Chairman Smith worked incredibly hard to make sure that
this
[[Page H2350]]
bill delivers for the whole country to get economic growth again.
{time} 0520
You will see an American renaissance, a golden age in this country
that we haven't seen in generations. Why would people vote against
that? Who knows.
The press talks about the other side being a party in disarray, and
maybe we are seeing it on display right now. When they are vocally
opposed to these kinds of policies that will get the country back on
track, why do they say tax cuts for the millionaires and the
billionaires when they know it is not true?
I will tell you why, Mr. Speaker, because not only do they know that
is not the case, but they know who benefits the most from this bill.
One of the great new provisions of this bill that President Trump
campaigned on and that Chairman Smith made sure to deliver on was no
tax on tips. Now, the last time I checked, Elon Musk does not get paid
in tips. Do you know who does? A lot of hardworking people across this
country.
Any restaurant you go to, Mr. Speaker, talk to the waiters and
waitresses. Ask them about their hopes and dreams, ask them about their
families, and what they would do with just a little bit more money in
their paycheck. Do you know, Mr. Speaker, that big provision that every
Democrat is going to vote against, the average tip worker makes $32,000
a year, and every Democrat will vote ``no'' on that benefit while they
hide behind the lie of the millionaires and the billionaires. They know
that is not the case.
They also know if they are going to vote against every hardworking
waiter and waitress who averages $32,000 a year--how do they get away
with it? They have to create some fake boogeyman that they can point to
and say, gee whiz, look at the billionaire over there.
Class warfare, dividing Americans, is their way to try to get more
power in Washington. How about we give people in America more power?
Take it away from Washington and empower the people in this country who
have been struggling for too long.
If you want to live the American Dream, it can still exist. For a lot
of people, they thought it was going away. President Trump ran and said
that he will renew that promise, but it only happens if Congress
delivers.
The other side will vote against it, every single one of them in
lockstep, and they will root against the success of this bill. Then, if
it were to fail, they would just go, look at that, the country is still
in demise, because they were against it every step of the way.
We saw this play out, by the way, in the state of the Union just a
few months ago, right here in this Chamber, and America watched in
shock. They want to see us come together. Can we at least come together
on things we agree on?
There stood President Trump, right at that podium, Mr. Speaker. He
talked about so many of the great things of this country--not partisan
things, things that we used to all celebrate.
Mr. Speaker, President Trump pointed over there to the balcony where
not only was the Presidential family seated, but they also had some
special guests. He pointed to a 13-year-old boy who had just beaten
cancer.
You want to talk about something that can unite the whole country,
that can bring us all together to say that, yes, we might disagree on
issues big and small--that happens; that is America--but we can all
celebrate a 13-year-old boy who just beat cancer, Mr. Speaker.
What happened when he said that? We rose up and applauded, as we all
should have. What else happened? The other side sat there, sat down
grumpy, angry. I don't know why. I would not say it was because he beat
cancer, but it was just because President Trump happened to point out
that he beat cancer.
We should not root for or against a person like that based on what
President Trump says he is for just because the talking points of the
party went out that said be against anything President Trump is for.
That is not a party platform.
This country wants direction. President Trump ran on a direction, and
their party did, too. It wasn't like it wasn't laid out in the
campaign. President Trump said that he would secure America's border.
That actually was the number one issue all across the country.
I got to go around to a lot of parts of this country. You hear from a
lot of different people. You see what their hopes and dreams are. You
will also see from them, and they will tell you, what they want to see
us come together to address. It didn't matter what part of the country
you went to. They all said, for goodness' sake, can we secure America's
border?
Millions of people were coming in illegally, many of them really bad
people, gang members, violent people who were harming Americans. We saw
it over and over again.
Laken Riley was murdered. By the way, the first bill President Trump
signed into law was the Laken Riley Act to say that if you come here
and harm an American citizen, you are gone, deported.
This bill allows for the deportation of violent criminals who come
here illegally and harm American citizens. We should all support that.
The other side doesn't. They will fly to Venezuela and El Salvador, Mr.
Speaker, to try to get out of prison a gang member who beats his wife.
This bill allows President Trump to continue securing America's
border. He has done phenomenal work on his own through executive action
protecting America, but he needs money to build the wall. He needs
money to let our Border Patrol agents have the ability to compete with
the drug cartels of Mexico.
It is embarrassing that today the drug cartels of Mexico have better
technology than America's Border Patrol agents. We said we are not
going to allow that to happen again like the other side did. We are
going to do something about it. We are going to give them those tools,
night vision goggles, drones, other things so that they can actually do
the job that they came here to do.
They put their lives on the line to keep us safe. The least we can do
is allow them to have the ability to be safe themselves, to go home at
night to their families while keeping our country safe. It is in this
bill. We deliver on that promise and so many others.
We are making America competitive again in our military so that we
can finally confront the threat that China poses militarily. We all
talk about it and know what it means, but are we going to talk about it
or do something about it?
President Trump wants to do something about it. This Republican
majority wants to do something about it. In this bill, we deliver on
that promise. Everybody who votes no is saying no to that.
Again, the minority can hide behind the millionaires and
billionaires, but they are voting against strengthening America's
military. That is in the bill. They are sure not talking about it on
the other side, Mr. Speaker. We haven't heard them talking about it
because they are about to vote against that. Let's be honest about it.
Mr. Speaker, when you think about those benefits, you also have to
recognize what a ``no'' vote means today. We have two buttons. You can
press ``yes'' or press ``no.'' If you vote ``no,'' you are voting
against American energy, securing America's border, and helping those
middle-class families. Mr. Speaker, you can run all the numbers. It
would be a 22 percent tax increase on low- and middle-income families.
We are not talking about the millionaires and billionaires. We are
talking about a family making $70,000 a year combined who is struggling
to get by and would like to make a little bit more investment, maybe in
their kids' education, and might want to take a family vacation. This
bill gives them the opportunity to do it.
It also gives every small business in America the opportunity to make
investments in America again. The 199A provision is locked in
permanently so there is no uncertainty so we can grow more jobs in
America. That is a good thing. It is a good thing for a lot of us here.
That is what a ``yes'' vote gets.
A ``no'' vote tells every small business in America that they will be
at a competitive disadvantage with the big corporations. You hear them
rallying, Mr. Speaker, against the fat cats and the big corporations.
Yet, if they vote ``no''--these are the facts--the big corporations,
the global companies, get a
[[Page H2351]]
21 percent rate, and your local small business would end up with a 43
percent rate, more than double.
Your local small businesses would be noncompetitive with the big
corporations. We said that is not fair. We want to allow our small
businesses to compete on a global stage with the big national
corporations, and we do that in this bill. A ``no'' vote doesn't do
that.
{time} 0530
Yes, we root out waste, fraud, and abuse, Mr. Speaker, waste, fraud,
and abuse so that vital programs in America actually work better for
the people who deserve them. Why would somebody come up here and defend
hundreds of billions of dollars of waste, fraud, and abuse in
Washington? There are hardworking families who are struggling and
barely able to get by and pay their taxes. They are infuriated when
they find out some of the waste that is going on up here. They are
saying: When is somebody going to finally do something about the fraud
so that I feel comfortable that if I am funding my government, it is
going to go to help the people who deserve it and not some 35-year-old
kid, who is fully able-bodied, who is sitting in his mom's basement
playing video games, getting over $40,000 in taxpayer-funded benefits,
while they are working two jobs, while the waiter/waitress averaging
$32,000 a year is struggling to get by. We help them. That is who we
are helping, those families who are struggling. We will get this
economy moving again.
You can vote ``yes'' or you can vote ``no.'' I wish everybody would
vote ``yes.'' A ``yes'' vote gets America's economy moving again. It
allows President Trump to continue fighting for the hardworking
families who elected him. All across this country, every swing State,
the majority of the American population wants this kind of relief.
Republicans are going to keep moving forward, Mr. Speaker, and are
going to deliver for those families who deserve this help, who want to
see America come back. They know America can come back. They know
America has been held back for the last 4 years. The same people who
have been telling us that President Biden's health was just fine are
now telling us all these other things about millionaires and
billionaires.
We are going to get this right. This bill finally starts to right the
ship of state. We all should come together and do that, Mr. Speaker. We
have got so many great people who have worked so hard to get to this
point, and we are still at the early stages. Let's send this bill over
to the Senate, and give them an opportunity to have their say as well.
Ultimately, let's go deliver. Let's go deliver for that single mom
who is working the night shift at a diner right now, who is going to
have more money in her pocket because of this bill, who is maybe going
to be able to send her kid to college because of this bill.
We are going to deliver for those families. You can say ``yes'' or
``no.'' America is absolutely watching. America went to the polls in
November and said: We want this relief, and we are calling on Congress
to provide this relief.
Republicans ran and said: We will do something about it, and we will
fix it. We are actually following through, Mr. Speaker, on that promise
made to the American people. President Trump is leading the way.
President Trump is going to turn this country around, and this bill
gives him the tools to do just that.
I urge everybody to vote ``yes.''
Mr. NEAL. Mr. Speaker, let me say to my friend, the majority leader,
everybody on this side was cheering for the success of that young man
defeating cancer. The way we are going to defeat cancer is not to cut
NIH.
I yield 1 minute to the gentleman from New York (Mr. Jeffries), the
very capable and distinguished minority leader.
Mr. JEFFRIES. Mr. Speaker, I thank the distinguished gentlemen from
the Commonwealth of Massachusetts (Mr. Neal), who has done a tremendous
job leading the Ways and Means Committee on our side.
I also thank Ranking Member Brendan Boyle, Ranking Member Jim
McGovern, all the members of the Ways and Means Committee, the Budget
Committee, the Rules Committee, every single Member of the House
Democratic Caucus who have stood on this floor, stood before the Rules
Committee, participated in markups on behalf of the American people, in
defense of the American people.
Mr. Speaker, I rise today in strong opposition to this reckless,
regressive, and reprehensible GOP tax scam. This is one big, ugly bill
that House Republicans are trying to jam down the throats of the
American people under the cover of darkness.
This legislation will not make life better for the American people.
The GOP tax scam represents an assault on the economy, an assault on
healthcare, an assault on nutritional assistance, an assault on tax
fairness, and an assault on fiscal responsibility.
There are more than 100 other reasons to vote against this one big,
ugly bill that can be found by reading this more than 1,000-page
document. Those reasons are too numerous to mention, but this
legislation also undermines reproductive freedom, undermines the
progress that we have made in combating the climate crisis, undermines
gun safety, undermines the rule of law and the independence of the
Federal judiciary. It even undermines the ability of hardworking and
law-abiding immigrant families to provide remittances to their loved
ones who just may happen to live abroad.
There are more than a hundred different reasons to vote against the
GOP tax scam. In the days, the weeks, and the months to come, all of
those reasons will be exposed for the American people in each and every
one of your districts.
This bill represents a failed promise. Last year, Donald Trump and
House Republicans spent all of their time talking about their promise
to lower the high cost of living in the United States of America. In
fact, Donald Trump and Republicans promised that costs would go down on
day one.
We are now more than 120 days past the inauguration. Costs aren't
going down. They are going up. Inflation is out of control. Insurance
rates remain stubbornly high. Our Moody's rating, our credit rating has
been downgraded. We have got people losing confidence in this economy.
Republicans are crashing this economy in real time and driving us
toward a recession.
Beyond that, costs are actually going up. The trade war that Donald
Trump has recklessly launched, his tariff scheme, will raise the cost
of goods, groceries, and gas for everyday Americans, the Americans that
Republicans claim they were going to help, but the Americans that they
are clearly hurting.
Republicans have destabilized the business environment. Small
businesses are at risk of closing. Farmers, small family farmers are in
distress. Businesses can't invest. People are not hiring. Republicans
are actively crashing the economy, driving America toward a recession.
Republicans promised to lower costs on day one. Costs aren't going
down. They are going up.
Now, as House Democrats, we believe that we have to build an
affordable economy for hardworking, American taxpayers. We are
committed to lowering housing costs, grocery costs, insurance costs,
childcare costs, and utility costs. In America, the wealthiest country
in the history of the world, there are far too many people living
paycheck to paycheck, struggling to make ends meet.
Here in this country, no American should find themselves in that
situation. Republicans promised that they would do something about it,
but things are not getting better. They are getting worse.
We could have partnered together to try and find a bipartisan path
toward building an affordable economy for hardworking American
taxpayers, but Republicans chose to go it alone, to try to drive their
extreme right-wing policies down the throats of the American people.
That is what this one big, ugly bill represents, not simply a broken
promise as it relates to your failures on the economy. Despite the
gentleman from Louisiana trying to articulate all of the so-called
successes that have taken place, we know that this Presidency has
already been a failure, filled with crisis and chaos, cruelty, and
corruption.
[[Page H2352]]
{time} 0540
The American people know it, which is why Donald Trump, at the 100-
day mark, was the most unpopular President in American history. The
American people understand. It is unfolding right before their eyes. No
matter what kind of MAGA spin you try to put on the situation, things
are going to get worse.
Why? It is because of this big, ugly bill. It is not simply an
assault on the economy, a broken promise, but it is an assault on the
healthcare of the American people.
You see, as Democrats, we believe in this country that healthcare is
not simply a privilege. Healthcare is a right.
From Medicare, to Medicaid, to the passage of the Affordable Care Act
and subsequently enhancing it, we have begun to move America to a place
where every single person in this land could have access to the
healthcare that they need to live a life of dignity and respect.
At this moment in America, we have the lowest rate of uninsured
people in our Nation's history, but this GOP tax scam will reverse that
with this assault on healthcare. It is the largest cut to Medicaid in
American history.
Here is what it will mean for the American people: Children will get
hurt. Women will get hurt. Older Americans who rely on Medicaid for
nursing home care and for home care will get hurt. People with
disabilities who rely on Medicaid to survive will get hurt. Hospitals
in your districts will close. Nursing homes will shut down, and people
will die.
That is not hype. That is not hyperbole. That is not a hypothetical.
The people that you all represent have been writing to us to make that
clear. Thousands of people who have written to us--everyday Americans--
have made that clear. I will just present a few of those stories in the
Record.
I have type 1 diabetes and was diagnosed when I was 7 years
old. I have had jobs with private insurance in the past, but
I lost my job during the pandemic. With childcare becoming a
major challenge, it made more sense for me to stay home with
the kids, but that also meant losing my health benefits.
Right now, we are all on Medicaid. It is crucial for me to
stay alive and healthy. I need insulin and supplies to manage
my diabetes every single day. Without it, I could die.
That is Shauna, who lives in Arizona's Sixth Congressional District.
My youngest son has leukemia. He was a self-employed
handyman and, therefore, he didn't have sufficient insurance.
When the cancer became more debilitating, he could no longer
work. He has undergone radiation, stem cell transplant, and
then more radiation. He is still fighting cancer, and without
Medicaid and the fine physicians, he would surely die.
That is Gregg, who lives in the Eighth Congressional District of
Colorado.
As a cancer survivor with chronic illnesses, I rely heavily
on Medicaid and food stamps to get by. Without these
essential programs, people like me would suffer. I am
currently taking expensive medication to stay in remission,
but my condition and the side-effects of my treatment make it
impossible for me to work. Unfortunately, my work history
also disqualifies me from receiving Social Security benefits.
I am not alone in my dependence on these Medicaid and food
stamp benefits. Children, elders, and many others who are
sick or struggling also rely on them to survive. I urge you
to do the right thing for the people you represent. Without
food stamps and Medicaid, the consequences would be painful
and even deadly.
That is Julisa, who had a message for her Representative in
Pennsylvania's Eighth Congressional District.
What we are here to say as House Democrats to Shauna, to Gregg, and
to Julisa is that if your Representatives won't fight for you, we will.
We will. We will. If they won't fight for you, we will fight for you,
for your healthcare, for your decency, for your well-being, for your
grace, and for your dignity.
Now, in addition to visiting the largest cut to Medicaid in American
history, that is not enough for the MAGA extremists. CBO has
independently confirmed that this one big, ugly bill will also set in
motion a $490 billion cut to Medicare in this country.
Unfortunately, that should come as no surprise because we know that
our Republican colleagues have been trying to attack Social Security
for decades, as they are doing right now, not necessarily in this bill.
Why? It is because the 1974 Budget Control Act prevents you from doing
it, but you have been going after Social Security for a long time and
going after Medicare for a long time. Elon Musk, who seems to function
as your puppet master, has made clear his intentions, which you just
follow as if you work for him.
Elon Musk wants to take a chain saw to Social Security, a chain saw
to Medicare, as you are doing in this bill. Elon Musk wants to take a
chain saw to Medicaid, as you are doing in this bill. Here is our
message to you and the American people: No matter how long it takes,
House Democrats are going to take a chain saw to Project 2025 because
it is not in the best interests of the American people.
What this bill represents is your effort to try to put into law
Project 2025. You acted like you didn't know anything about it. This is
why you have no credibility right now. You spent all of last year lying
to the American people, saying to them that you were going to lower the
high cost of living. In fact, you are doing the exact opposite.
At the same period of time, you acted like you knew nothing about
Project 2025, and this bill is an effort to try to implement it into
law.
You mentioned credibility issues. I think it exists on the right side
of this Chamber.
Not only have you gone after Medicaid. Not only have you gone after
Medicare.
The SPEAKER pro tempore. The Chair has been very patient. The
gentleman is reminded to direct his comments to the Chair.
Mr. JEFFRIES. Mr. Speaker, you know what is interesting, is that
every time I have come on this floor, I can use sharp language, he can
use sharp language. You choose to admonish me. I don't work for you,
sir. I work for the American people.
The SPEAKER pro tempore. As I said, Mr. Leader, we have been very
patient. We just listened to the majority leader of the other side who
directed all of his comments to the Chair. It is important for the
decorum of the institution for you to do the same. You may proceed.
{time} 0550
Mr. JEFFRIES. We can continue this. Every time I am interrupted, that
is going to add another 15 minutes to my remarks.
Mr. Speaker, what we have seen is the largest cut to Medicaid in
American history. It is an effort to devastate Medicare. Of course,
what this bill also does is strip away some of the coverage provided by
the Affordable Care Act.
Millions of people will lose their coverage as a result of this GOP
tax scam. When you aggregate the assault on healthcare that is taking
place, what we are likely to see is, at least, 13.7 million people are
going to lose their healthcare in the United States of America.
That is what we are fighting for. That is why we are a ``no,''
amongst several other reasons on this bill. It is an assault on the
economy. It is an assault on healthcare. It is also an assault on
nutritional assistance.
Now, in the 1960s, the American people were shaken up and disturbed
by images they saw after some investigations exposed the conditions of
some people in America who were dealing with intense hunger in rural
America, in underresourced communities, and communities of color,
images of children with distended bellies, families rummaging through
garbage in order to find food so they wouldn't starve.
That is what eventually led to the creation of what is now the
Supplemental Nutritional Assistance Program because the American people
concluded that in this great country, not a single child should ever go
hungry. That is our position.
Apparently, it is not the position of our Republican colleagues. In
this bill, SNAP, the Supplemental Nutrition Assistance Program, will
experience more than $300 billion in cuts, the largest cut to
nutritional assistance in American history.
Literally, Mr. Speaker, Republicans are taking food out of the mouths
of children, disabled Americans, veterans, and older Americans. That is
another reason why we are strongly opposed to this bill.
This is the United States of America, the wealthiest country in the
history of the world. It is indecent to rip food out of the mouths of
children and everyday Americans. It is indecent.
[[Page H2353]]
To make matters worse, we know that as a result of this bill,
according to an analysis from the Urban Institute, there are 18 million
children in this country who are at risk of losing school meals. Decade
after decade after decade in America, we have made great progress. That
progress, as it relates to alleviating hunger and food insecurity, is
now at risk of being rolled back.
One of the excuses that I am sure we will hear from the Speaker of
this institution is that this one big, ugly bill is all about waste,
fraud, and abuse.
It is interesting because month after month after month, we continue
to hear that phrase. Let's be clear: As Democrats, we believe in trying
to make sure that Federal taxpayer dollars are spent in an efficient
and effective way. We are all for that, but that is not what is being
done in this bill. No evidence of waste, fraud, and abuse has been
presented in a compelling way.
In fact, you know what is interesting, you are talking about taking
away nutritional benefits that amount to $2 per meal, $6 per day, at
the same time, when Elon Musk and his Federal contracts are worth $8
million a day.
If you are trying to find waste, fraud, and abuse, I have a
suggestion: Start right there. Start right there. Don't take food from
the mouths of our children. Start right there.
This is one big, ugly bill. It is a GOP tax scam. It is a reckless
Republican budget. It is an assault on the economy. It is an assault on
healthcare. It is an assault on nutritional benefits. It is also an
assault on tax fairness.
Here is the thing: It is the largest cut to healthcare in American
history coupled by the largest cut to nutritional assistance in
American history in order to enact the largest tax breaks for
billionaires in American history.
That is unacceptable. That is unconscionable, and that is un-
American. That is un-American because my Republican colleagues promised
that they would actually focus their efforts on trying to make life
better for everyday Americans. However, disproportionately the benefits
of this bill, as confirmed by independent observers, don't go to those
who may be at the lower end of the socioeconomic spectrum. They
actually go disproportionately to those at the highest end of the
economic spectrum.
A CBO analysis requested by Congressman Boyle and myself just
confirmed that. It is not hype, not hyperbole, not a hypothetical; it
is what will happen if this one big, ugly bill became law.
It is an assault on tax fairness and, of course, that is coupled with
the assault on fiscal responsibility.
{time} 0600
It is ironic to me that many of my colleagues on the other side of
the aisle claim to be the party of fiscal responsibility, but as Richie
Neal has often eloquently articulated, that is not what the record
shows. The record shows something very different.
This fiscal irresponsibility that comes from the other side of the
aisle is actually connected to the obsession with massive tax cuts for
the wealthy, the well-off, and the well-connected. We have seen this
rinse-and-repeat scenario play itself out over and over again.
President Reagan comes in to office, and what is his signature
domestic priority? His signature domestic priority is massive tax cuts
for the superwealthy. As a result, he escalates the debt and deficit.
Those policies, of course, are continued by his successor, President
George H.W. Bush, but then President Clinton takes office. In his 8
years, he turns a deficit into a budget surplus. That is fiscal
responsibility.
Then, after 8 years in office, President Clinton is replaced by
President George W. Bush, who proceeds to follow the same playbook.
They used to call it trickle-down economics. The American people aren't
buying it because they figured out what trickle-down economics means:
We may get a trickle, but we are guaranteed to stay down. That is what
has happened over and over again.
President Bush comes into office, and he introduces massive tax cuts
for the wealthy, the well-off, and the well-connected. The 2001 tax
cuts and the 2003 tax cuts turned a budget surplus into a massive
deficit. His administration then further exacerbated the problem with a
failed war in Iraq and a failed war in Afghanistan. They were asleep at
the switch as it related to the economy, which resulted in the Great
Recession.
Then, President Obama takes office to once again demonstrate what
fiscal responsibility is all about. In 8 years, he takes the deficit
that he inherited of $1.5 trillion and cuts it by a trillion dollars,
notwithstanding the economic mess that he inherited, having to dig the
country out of the Great Recession.
Of course, 8 years of President Obama brings us to the current
administration in its first term. As my colleague from Louisiana talked
about, what is their signature legislative accomplishment? The 2017
version of the GOP tax scam, where, by some estimates, 83 percent of
the benefits were set in motion for the wealthiest 1 percent, and you
borrow more than $2 trillion to do it, once again exploding the debt
and deficit in the United States of America.
President Biden comes into office in his first 2 years,
notwithstanding all the signature accomplishments--many of which did
have some bipartisan support, particularly in the Senate. There were
significant accomplishments led by President Biden, Speaker Pelosi, and
Democrats in the House, partnering with our colleagues in the Senate.
Notwithstanding all of those accomplishments, he reduces the deficit in
his first 2 years by $1.7 trillion.
That is what fiscal responsibility looks like, so we are not going to
be lectured on this issue.
Then, my colleagues have the nerve to talk about fiscal
responsibility and to try to pass a bill that disproportionately
benefits their billionaire donors like Elon Musk, and borrows--will add
to the debt--more than $5 trillion.
That is an assault on fiscal responsibility. That is forcing our
children and our grandchildren, all of them, to shoulder an unnecessary
burden that will limit their ability to fully experience the American
Dream.
That is why we oppose this bill. It is an assault on the economy, an
assault on healthcare, an assault on nutritional assistance, including
on our veterans, an assault on tax fairness, and an assault on fiscal
responsibility.
As I close, let me make one other observation. I believe that there
are people of faith on both sides of this Chamber, authentically people
of faith on both sides of this Chamber. I am not one to question
anyone's faith, but I do think we have to ask the question,
particularly when you study the Gospel, and the Gospel in particular of
Matthew 25:35-40, where Jesus talks about the importance of standing up
for the least, the lost, the left behind, the poor, the sick, the
afflicted, the homeless, the people who are confined, strangers in a
foreign land.
When you know the Gospel, when you are charged with trying to live
the Gospel, it cannot be the case that one goes to synagogue or one
goes to the mosque or one goes to church, as I do, but one goes to
church to pray on Sunday, and then comes to Washington, D.C., to prey
on the American people the rest of the week.
You can't prey on the poor, prey on the sick, prey on the afflicted,
prey on our children, prey on people with disabilities, prey on our
veterans who served this country, and project that that is consistent
with the faith that I at least know, anchored in Matthew 25:35.
Mr. Speaker, I think this, in some ways, is a sad day here for this
institution. James Madison, one of our great thinkers, I believe it was
in Federalist No. 51, talks about Congress at its best should function
as a rival to the executive branch, serve as a check and balance on the
out-of-control impulses of an executive that may emerge from time to
time. Congress, according to James Madison, at its best would serve as
a rival to the executive branch.
Unfortunately, our House Republican colleagues haven't followed the
vision of this Madisonian version of democracy because they have
consistently proven to be nothing more than a rubberstamp for Donald
Trump's extreme agenda, and the American people are paying attention.
The American people are paying attention.
I think that when the story is told of the 119th Congress, when the
votes are ultimately cast on that first Tuesday in November next year,
this day may
[[Page H2354]]
very well turn out to be the day that House Republicans lost control of
the United States House of Representatives because the American people
are paying attention.
They are smarter than you think, and they know when they are being
hurt. They know when their interests are not being served, and they
know when they have been lied to and deceived.
See, they know that Congress was meant to be a separate and coequal
branch of government. We don't work for President Trump. We don't work
for J.D. Vance. We don't work for Elon Musk. We work for the American
people. That is what House Democrats are all about.
Mr. Speaker, because we work for the American people, we will
continue to stand up for an economy that is affordable and makes life
better for hardworking American taxpayers. We will stand up for Social
Security, stand up for Medicare, stand up for Medicaid, stand up for
nutritional assistance, stand up for our children, stand up for our
veterans, stand up for our seniors, stand up for our families, stand up
for the American way of life. That is what House Democrats will
continue to do.
We will stand up today, stand up tomorrow, stand up this week, stand
up next week, stand up this month, stand up next month, stand up this
year, stand up next year, stand up at all times until we end this
national nightmare and restore the American Dream for every single
person in this great land, from sea to shining sea.
Vote ``no.''
{time} 0610
Mr. SMITH of Missouri. Mr. Speaker, the Democrat leader is mistaken.
We aren't currently in the dead of night. We are voting for the one
big, beautiful bill first thing in the morning. The relief for working
families simply can't wait. We will work until the job is done, and we
are going to do that.
Mr. Speaker, I yield 1 minute to the gentleman from Louisiana (Mr.
Johnson), the Speaker of the House.
Mr. JOHNSON of Louisiana. Mr. Speaker, after that very long and
wandering speech, my friends, and after a long week and a long night
and countless hours of work over the past year, a lot of prayer and a
lot of teamwork, my friends, it quite literally is again morning in
America, isn't it?
After 4 long years of President Biden's failures, President Trump's
America First agenda is finally here. We are advancing that today. What
we are going to do this morning is truly historic, and it will make all
the difference in the daily lives of hardworking Americans.
The Dallas waitress pulling overtime, the Detroit mom counting bills
late at night, and the Kentucky coal miner waiting on his second chance
are the forgotten men and women of our country that we are all called
here to serve.
The one big, beautiful bill will deliver for those people. It revives
our economy. It will deliver historic tax relief. It will make the
largest investment in our border security in a generation.
It will unleash affordable American energy again, restore common
sense to government, secure generational savings, and strengthen our
national defense, while it also strengthens our essential programs like
Medicaid for the people who need it the most. That is what we are doing
with the one big, beautiful bill.
To put it simply, this bill gets Americans back to winning again, and
it has been a long time coming. This one big, beautiful bill is the
most consequential legislation that any party has ever passed,
certainly under a majority this thin.
Legislation of this magnitude is truly Nation-shaping and life-
changing. It is the kind of transformational change that future
generations will study one day. They will look back at this day as a
turning point in American history. It is exactly what we were sent here
to do.
Let the record show that when the House Democrats vote in a few
moments, this is what they will be voting for. Their vote will show
that they are apparently for the largest tax increase in the history of
our country. When they vote against this bill, they will be voting for
waste, fraud, and abuse. They will be voting against safer communities,
American energy dominance, and American strength on the world stage.
Today wouldn't be possible without the leadership of arguably the
most powerful, the most successful, and the most respected President in
the modern era of the United States.
Our Democratic colleagues mock the objective truth. We were delivered
unified government, my friends, in November. The White House, the
Senate, and the House were delivered to the party on this side of the
aisle. My Democrat colleagues can laugh all they want.
None of this would be possible without the leadership of the 45th and
the 47th President of the United States, Donald J. Trump. It would not
be possible without the really hard work of the men and women on this
side of the aisle.
I want to name our chairmen of our House committees that produced and
did all the hard work to produce the big, beautiful bill. Scripture
says that we give honor where honor is due, Mr. Speaker. We are going
to do that here quickly.
I recognize Chairman G.T. Thompson of the Agriculture Committee,
Chairman Mike Rogers of the Armed Services Committee, Chairman Jodey
Arrington of the Budget Committee, Chairman Tim Walberg of the
Education and Workforce Committee, Chairman Brett Guthrie of the Energy
and Commerce Committee, Chairman French Hill of the Financial Services
Committee, Chairman Mark Green of the Homeland Security Committee,
Chairman Jim Jordan of the Judiciary Committee, Chairman Bruce
Westerman of the Natural Resources Committee, Chairman James Comer of
the Oversight and Accountability Committee, Chairman Sam Graves of the
Transportation and Infrastructure Committee, and Chairman Jason Smith
of the Ways and Means Committee.
I make special mention of Chairwoman Virginia Foxx of the Rules
Committee who, by my count, sat in that chair and led that Rules
Committee for what seemed like 2 straight days. I think she took two
short breaks. She is the Iron Lady of the House.
Mr. Speaker, I am so grateful for all of their hard work. The beauty
of what we produced with the one big, beautiful bill over here is that
this was a team effort. These were men and women who were elected to
come here. They are the duly-elected Representatives of the people back
home. They rolled up their sleeves. They got down in the trenches.
We began this effort over a year ago. It was actually March of last
year because we anticipated and believed that we would be delivered a
unified government and that we would have a Republican leader in the
White House, which is Donald J. Trump. We believed that we would have
the Senate and the House and that we would have that moment of
opportunity.
We planned, we worked, and we locked arms together as a team. We have
delivered this against all odds. The media has tried to divide us. They
have written our eulogy about 10 times. Mr. Speaker, do you know what?
Sometimes it is good to be underestimated, isn't it?
We got this done, and I am so proud of the work of every Member of
this House Republican Conference who worked in their committees. Every
single Member had a say in this. Every single constituent, the millions
of people who are represented, have their voices and their interests
reflected because we did this together as a team. It is quite an
achievement.
I just want to say that all that tireless work has led to the hard
work of crafting this legislation, and we have been ready since day one
to deliver on this agenda. Unified control of government is a rare
mandate. It doesn't happen very often. It has happened just three times
for our party in the last half century. We do not take it for granted.
We are delivering on that mandate here today. The American people
gave us a mandate in November. They sent a message with their vote.
They gave this side of the aisle the power, and we are going to use it
to make their lives better. What we are achieving here today is nothing
short of historic, and that is true.
{time} 0620
House Republicans are getting it done again.
[[Page H2355]]
In the Republican Party, we believe in a simple principle. We believe
that America really is a shining city on a hill.
Ronald Reagan used to talk about that. He was referencing Scripture.
He understood that America is exceptional. He understood that, as it
says right there above the Speaker's rostrum, our national motto, that
we trust in God, in God is our trust.
These are the things that make our Nation exceptional, and the people
of our country deserve--they deserve--better. We have been working hard
to deliver so that the people of our country see this again as a
shining city on a hill and that people around the world see us for who
we should be.
One thing we can all agree on on both sides of the aisle is that a
strong America is good for everybody all around the world. All of us
together, regardless of party, were called here to stand together and
defend those freedoms and to defend those foundations that made us the
greatest Nation in the history of the world.
All of us have to look and recognize that the shine has not been on
that city in a while. We are here to restore it. This piece of
legislation, as large as it is and as historic as it is, will do that
very thing.
Mr. Speaker, we are accomplishing a big thing here today, but we know
this isn't the end of the road just yet. We have been working closely
with Leader Thune and our Senate colleagues, the Senate Republicans, to
get this done and delivered to the President's desk by Independence
Day. That is July 4th.
Today proves that we can do that, and we will do that. It doesn't
matter how much the media doubts this or how much the Democrats give us
their narratives, it doesn't matter how long the speeches are, it
doesn't change the facts. We are delivering, and we are doing it in a
big way.
So to our friends in the Senate, I would just say that the President
is waiting with his pen. The American people are waiting for this
relief. They are waiting for these life-changing results, and we are
going to finish this job.
This is a historic moment that we will be talking to our children and
our grandchildren about, and everyone will remember: America is back.
Mr. NEAL. Mr. Speaker, I yield back the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield back the balance of my
time.
Mr. DAVIS of Illinois. Mr. Speaker, government should help people,
not harm them. Government should aid the vulnerable in asking for help,
not exclude them from assistance with excessive barriers only to lavish
the wealthy with trillions.
This bill makes the rich richer and the poor poorer. It boosts
billionaires by dramatically cutting food, health care, nursing home
service, and education from tens of millions of children, seniors,
people with disabilities, veterans, and workers.
This bill rips health care from 13.7 million Americans, with over
449,000 Illinoisans expected to lose their health insurance, including
over 102,000 children and 27,000 seniors in my District.
Under this bill, a millionaire enjoys $81,500 in tax cuts while those
earning less than $30,000 get crushed by a $5 billion tax increase. As
any good grift, the Republican bill uses tricks to pretend it's helping
regular Americans while it shepherds the biggest loss of health care
and nutrition assistance in our Nation's history, exploding poverty and
suffering.
In addition to the direct harm, the bill's irresponsible explosion of
the deficit triggers statutory cuts to critical programs supporting
children and families. These Paygo reductions would zero out funding
for the Maternal Infant and Early Childhood Home Visiting program that
is proven to improve mother and child health, family safety, and child
development. It would eliminate the guaranteed funding for the MaryLee
Allen Promoting Safe and Stable Families program that helps prevent
child maltreatment and strengthen families. It would eradicate the
Social Services Block Grant that provides substantial investment in
child care, child welfare, and adult protective services. These
egregious cuts alone will cost Illinois over $72 million dollars and
hurt Illinois children, seniors, and families.
This isn't right. It is unAmerican. It is immoral. And, I oppose this
cruel bill.
Mr. DAVIS of Illinois. Mr. Speaker, the Good Book teaches us to care
for the least among us. In medicine, we vow to do no harm. Yet, the
Republican budget plan inflicts suffering on the least among us to
lavish riches on the wealthiest and most secure.
This bill rips health care from 13.7 million Americans, with 449,818
lllinoisans expected to lose their health insurance. In my
Congressional District alone, this cruel Republican plan threatens to
cut health insurance from over 240,000 people on the Illinois Medical
Assistance Program, including over 102,000 children and 27,000 seniors.
Thousands of seniors and persons with disabilities risk losing their
nursing home coverage. This Republican bill further raises taxes and
health premiums on 24 million Americans, and the $73 billion cuts to
Medicaid providers will close hospitals, nursing homes, and other cash-
strapped providers.
Government should help people, not harm them. Government should aid
the vulnerable in asking for relief, not exclude them from assistance
with excessive barriers.
Yet this ruthless Republican bill cuts $300 billion in food
assistance for millions of seniors, children, and parents--which then
costs farmers at least $30 billion in lost income. The loss of SNAP and
Medicaid then threatens the 15.6 million children who qualify for free
or reduced-price meals and the 20 million kids who get summer EBT via
direct certification. In my District, this bill likely increases hunger
for about 244,000 people who could lose SNAP and for over 80,000
children who could lose free lunch.
This Republican scam makes the rich richer and the poor poorer. It
boosts billionaires while cutting the food, health care, education, and
housing for tens of millions of children, seniors, people with
disabilities, veterans, and workers.
In addition to the direct harm, the bill's irresponsible explosion of
the deficit triggers statutory cuts to critical programs supporting
children and families. These Paygo cuts would zero out funding for the
Maternal Infant and Early Childhood Home Visiting program that is
proven to improve mother and child health, family safety, and child
development. It would eliminate the guaranteed funding for the MaryLee
Allen Promoting Safe and Stable Families program that helps prevent
child maltreatment and strengthen families. It would eradicate the
Social Services Block Grant that provides substantial investment in
child care, child welfare, and adult protective services. These cuts
cost Illinois over $41 million in SSBG, over $18 million in home
visiting, and over $13 million in Safe and Stable funding. These
egregious cuts hurt Illinois children, seniors, and families.
As any good grift, the Republican bill uses tricks to pretend it's
helping regular Americans while it shepherds the biggest loss of health
care and nutrition assistance in our Nation's history, exploding
poverty and inflicting suffering. Under this bill, a millionaire enjoys
a windfall 310 times greater than a hardworking American making $50,000
or less. A person making over one million dollars a year gets $81,500
in tax cuts while those earning less than $50,000 only get $265--a
laughable sum that evaporates in the face of trillions of dollars in
assistance cuts. Disgustingly, if you earn less than $30,000, you get
crushed with a $5 billion tax increase.
This isn't right. It is un-American. It is immoral. I oppose this
cruel bill.
Mr. THOMPSON of Mississippi. Mr. Speaker, we are here in the dark of
night because President Trump has one goal: to pass massive tax cuts
for billionaires by cruelly stealing healthcare away from millions of
Americans.
H.R. 1, the ``One Big Ugly Bill,'' isn't about securing the border,
and it never has been.
The bill recklessly throws an enormous amount of taxpayer money at
the border to buy the votes of Republicans who are reluctant to support
the GOP Tax Scam and devastating Medicaid cuts.
Just tonight, Republicans snuck into the bill a $12 billion
``Lonestar Kickback'' to give Texas Governor Greg Abbott a handout for
his unconstitutional border security operations.
The ``One Big Ugly Bill'' gives the Trump administration billions to
ramp up mass detentions and deportations, including American children
with cancer, and deny due process to whomever they can, including those
in the country legally.
The ``One Big Ugly Bill'' spends $46.5 billion on Trump's failed
border wall--which Trump originally said Mexico would pay for.
That amount is nearly four times what Trump originally promised the
wall would cost, and it is 10 times what the bill spends on Customs and
Border Protection personnel.
The ``One Big Ugly Bill'' allows the Homeland Security Department to
create a slush fund that will enable the worst impulses of the Trump
administration, like private jets for the Secretary and securing the
President's many multi-million-dollar golfing vacations at his branded
properties.
Mr. Speaker, I urge all my colleagues to reject the ``One Big Ugly
Bill.''
Mr. CARSON. Mr. Speaker, I rise in strong opposition to this Big Ugly
GOP Tax Scam. It's the biggest cut in health in our history. It's the
biggest wealth transfer in our history. It will hurt hard working
families to pay for tax cuts for billionaires like Elon Musk.
[[Page H2356]]
I offered 4 amendments to protect my constituents from this big,
ugly, dangerous Reconciliation Bill, but the Rules Committee rejected
all 547 amendments offered by my Democratic colleagues.
My first amendment, No. 168, protects Medicaid by preventing
implementation of provisions in this bill if they result in higher
mortality rates or if Americans receive reduced access to health care
services, as a result of this bill.
My second amendment, No. 428, requires a comprehensive audit by the
Comptroller General of the bill's tax cuts on our federal deficit and
national debt over the next 10, 20, and 30 years, plus the bill's
economic impacts on employment, investment and GDP. This audit will
become publicly available no later than 180 days after enactment, if
this bill is actually enacted.
My third amendment, No. 369, protects funding for Amtrak's National
Network by prohibiting any recission of funds that have already been
authorized and appropriated by Congress. Amtrak's National Network
provides services connecting local communities across 46 states, with
21,000 route miles. Unfortunately, this Administration has repeatedly
defied Congress' directions.
I shouldn't have to say this, but let's be clear: Congress passes the
laws, and the executive branch's job is to carry out our instructions.
No administration gets to pick and choose which laws they'll follow and
which laws they ignore. This administration has flagrantly ignored
Congress' directions to spend our appropriated dollars and carry out
programs authorized by Congress. The number of cancelled, terminated or
clawed back funds this year is unprecedented, and it must end. My
amendment puts the brakes on any short-sighted attempt to derail
Amtrak's National Network. I am proud to represent the workers at
Amtrak's largest passenger rail maintenance facility in the country--in
Beech Grove, Indiana--where they repair and restore passenger rail
cars, locomotives and other rolling stock that keeps America's trains
running. We should be expanding our investment in Amtrak, not stripping
transportation funds to pay for tax cuts for Elon Musk and his cronies.
My last amendment, No. 433, strikes Section 42109 of the underlying
bill, which repeals provisions of the American Innovation and
Manufacturing Act, which Congress passed to protect our environment and
grow jobs. My amendment will restore the law we passed and maintain
support for clean alternatives in the cooling manufacturing industry,
resulting in lower energy costs for families across the country.
All of these amendments are designed to help protect my constituents
and your constituents too from this big, ugly and dangerous bill. The
worst provisions are the cuts to Medicaid; they're the most devastating
to Hoosiers in my congressional district.
Just yesterday, I spoke on the House floor about three women from my
district in Indianapolis, Arica, Bethany, and Carol Ann. These women
expressed their fears that Congress will cut Medicaid and other
essential government programs.
These are just three of the thousands of people who have reached out
to me in recent weeks, folks who are scared for themselves, but also
terrified for their children and their family members.
In my Indianapolis community, we care about each other. We look out
for one another. It's what we do, and it's who we are. I have always
been proud of my hometown, but I am even more proud hearing the
groundswell of voices, especially over the last week, from constituents
in Indianapolis who have overwhelmingly told me: We must help our
neighbors. We must protect Medicaid.
I am here today to fight for the people of Indianapolis, who deserve
a government that stands with them, not billionaires.
This past week, our country has watched Members of Congress debate,
essentially, who deserves to live and who deserves to die in our
country. For 14 million Americans, healthcare and Medicaid cuts aren't
a political discussion. This is a matter of life and death. 14 million
Americans would lose healthcare in this historically horrible bill.
This includes children, newborns, seniors, and postpartum mothers. The
most vulnerable among us.
Republicans deny that this bill will slash Medicaid. Even though a
nonpartisan analysis found that this budget simply is not possible
without cutting Medicaid and essential healthcare. And yet many of my
colleagues on the other side of the aisle still deny that this budget
will drastically cut essential healthcare.
So I ask my colleagues: prove it. If you insist that this bill will
not hurt Medicaid, if you insist this bill will not snatch healthcare
out of the hands of 14 million men, women, and children, then prove it
by passing my amendment to ensure none of the provisions of this bill
will take effect if there is an increase in mortality rates or if
Americans receive reduced access to health care services, as a result
of this bill.
If Republicans truly believe this bill is not taking money away from
Medicaid to give tax breaks to billionaires, then they should have no
problem passing my amendment. We should make sure this Reconciliation
package does not cause Americans to die, then they should have no
problem passing my first amendment, and all of my amendments.
I would like to close by reminding you again of Arica, Bethany, and
Carol Ann in Indianapolis. I implore you to remember their humanity. 14
million people who stand to lose their healthcare--including those who
elected you to protect the health and well-being of all Americans, and
who are relying on you to do the right thing. Protect Medicaid. Protect
healthcare. Protect our children.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 436, the previous question is ordered on
the bill, as amended.
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit
Mrs. TRAHAN. Mr. Speaker, I have a motion to recommit at the desk.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit:
Ms. Trahan of Massachusetts moves to recommit the bill H.R.
1 to the Committee on the Budget.
The material previously referred to by Mrs. Trahan is as follow:
Mrs. TRAHAN moves to recommit the bill H.R. 1 to the
Committee on the Budget with instructions to report the same
back to the House with the following amendments:
In subtitle A of title I, strike sections 10001 through
10012.
Strike subtitle D of title IV.
Strike sections 112101 through 112103.
Strike sections 112201 through 112203.
The SPEAKER pro tempore. Pursuant to clause 2(b) of rule XIX, the
previous question is ordered on the motion to recommit.
The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mrs. TRAHAN. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
Announcement By the Speaker Pro Tempore
The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, this 15-
minute vote on the motion to recommit will be followed by 5-minute
votes on:
Passage of H.R. 1, if ordered; and
The motion to suspend the rules and pass H.R. 1701, if ordered.
The vote was taken by electronic device, and there were--yeas 212,
nays 216, not voting 4, as follows:
[Roll No. 144]
YEAS--212
Adams
Aguilar
Amo
Ansari
Auchincloss
Balint
Barragan
Beatty
Bell
Bera
Beyer
Bishop
Bonamici
Boyle (PA)
Brown
Brownley
Budzinski
Bynum
Carbajal
Carson
Carter (LA)
Casar
Case
Casten
Castor (FL)
Castro (TX)
Cherfilus-McCormick
Chu
Cisneros
Clark (MA)
Clarke (NY)
Cleaver
Clyburn
Cohen
Conaway
Correa
Costa
Courtney
Craig
Crockett
Crow
Cuellar
Davids (KS)
Davis (IL)
Davis (NC)
Dean (PA)
DeGette
DeLauro
DelBene
Deluzio
DeSaulnier
Dexter
Dingell
Doggett
Elfreth
Escobar
Espaillat
Evans (PA)
Fields
Figures
Fletcher
Foster
Foushee
Frankel, Lois
Friedman
Frost
Garamendi
Garcia (CA)
Garcia (IL)
Garcia (TX)
Gillen
Golden (ME)
Goldman (NY)
Gomez
Gonzalez, V.
Goodlander
Gottheimer
Gray
Green, Al (TX)
Harder (CA)
Hayes
Himes
Horsford
Houlahan
Hoyer
Hoyle (OR)
Huffman
Ivey
Jackson (IL)
Jacobs
Jayapal
Jeffries
Johnson (GA)
Johnson (TX)
Kamlager-Dove
Kaptur
Keating
Kelly (IL)
Kennedy (NY)
Khanna
Krishnamoorthi
Landsman
Larsen (WA)
Larson (CT)
Latimer
Lee (NV)
Lee (PA)
Leger Fernandez
Levin
Liccardo
Lieu
Lofgren
Lynch
Magaziner
Mannion
Matsui
McBath
McBride
McClain Delaney
McClellan
McCollum
McDonald Rivet
McGarvey
McGovern
McIver
Meeks
Menendez
Meng
Mfume
Min
Moore (WI)
Morelle
Morrison
Moskowitz
Moulton
Mrvan
Mullin
Nadler
Neal
Neguse
Norcross
Ocasio-Cortez
Olszewski
Omar
Pallone
Panetta
Pappas
Pelosi
Perez
Peters
Pettersen
Pingree
Pocan
Pou
Pressley
Quigley
Ramirez
Randall
Raskin
Riley (NY)
Rivas
Ross
Ruiz
Ryan
Salinas
Sanchez
Scanlon
Schakowsky
Schneider
Scholten
[[Page H2357]]
Schrier
Scott (VA)
Scott, David
Sewell
Sherman
Sherrill
Simon
Smith (WA)
Sorensen
Soto
Stansbury
Stanton
Stevens
Strickland
Subramanyam
Suozzi
Swalwell
Sykes
Takano
Thanedar
Thompson (CA)
Thompson (MS)
Titus
Tlaib
Tokuda
Tonko
Torres (CA)
Torres (NY)
Trahan
Tran
Underwood
Vargas
Vasquez
Veasey
Velazquez
Vindman
Wasserman Schultz
Waters
Watson Coleman
Whitesides
Williams (GA)
Wilson (FL)
NAYS--216
Aderholt
Alford
Allen
Amodei (NV)
Arrington
Babin
Bacon
Baird
Balderson
Barr
Barrett
Baumgartner
Bean (FL)
Begich
Bentz
Bergman
Bice
Biggs (AZ)
Biggs (SC)
Bilirakis
Boebert
Bost
Brecheen
Bresnahan
Buchanan
Burchett
Burlison
Calvert
Cammack
Carey
Carter (GA)
Carter (TX)
Ciscomani
Cline
Cloud
Clyde
Cole
Collins
Comer
Crane
Crank
Crawford
Crenshaw
Davidson
De La Cruz
DesJarlais
Diaz-Balart
Donalds
Downing
Dunn (FL)
Edwards
Ellzey
Emmer
Estes
Evans (CO)
Ezell
Fallon
Fedorchak
Feenstra
Fine
Finstad
Fischbach
Fitzgerald
Fitzpatrick
Fleischmann
Flood
Fong
Foxx
Franklin, Scott
Fry
Fulcher
Gill (TX)
Gimenez
Goldman (TX)
Gonzales, Tony
Gooden
Gosar
Graves
Green (TN)
Greene (GA)
Griffith
Grothman
Guest
Guthrie
Hageman
Hamadeh (AZ)
Haridopolos
Harrigan
Harris (MD)
Harris (NC)
Harshbarger
Hern (OK)
Higgins (LA)
Hill (AR)
Hinson
Houchin
Hudson
Huizenga
Hurd (CO)
Issa
Jack
Jackson (TX)
James
Johnson (LA)
Johnson (SD)
Jordan
Joyce (OH)
Joyce (PA)
Kean
Kelly (MS)
Kelly (PA)
Kennedy (UT)
Kiggans (VA)
Kiley (CA)
Kim
Knott
Kustoff
LaHood
LaLota
LaMalfa
Langworthy
Latta
Lawler
Lee (FL)
Letlow
Loudermilk
Lucas
Luna
Luttrell
Mace
Mackenzie
Malliotakis
Maloy
Mann
Massie
Mast
McCaul
McClain
McClintock
McCormick
McDowell
McGuire
Messmer
Meuser
Miller (IL)
Miller (OH)
Miller (WV)
Miller-Meeks
Mills
Moolenaar
Moore (AL)
Moore (NC)
Moore (UT)
Moore (WV)
Moran
Murphy
Nehls
Newhouse
Norman
Obernolte
Ogles
Onder
Owens
Palmer
Patronis
Perry
Pfluger
Reschenthaler
Rogers (AL)
Rogers (KY)
Rose
Rouzer
Roy
Rulli
Rutherford
Salazar
Scalise
Schmidt
Scott, Austin
Self
Sessions
Shreve
Simpson
Smith (MO)
Smith (NE)
Smith (NJ)
Smucker
Spartz
Stauber
Stefanik
Steil
Steube
Strong
Stutzman
Taylor
Tenney
Thompson (PA)
Tiffany
Timmons
Turner (OH)
Valadao
Van Drew
Van Duyne
Van Orden
Wagner
Walberg
Weber (TX)
Webster (FL)
Westerman
Wied
Williams (TX)
Wilson (SC)
Wittman
Womack
Yakym
Zinke
NOT VOTING--4
Garbarino
Hunt
Nunn (IA)
Schweikert
{time} 0646
Messrs. BRECHEEN and PALMER, Mrs. MILLER of Illinois,
=========================== NOTE ===========================
On May 21, 2025, page H2357, in the first column, the following
appeared: Messrs. BRECHEEN and PALMER, Mrs. MILLER of Illinois,
Ms. MACE,
The online version has been corrected to read: Messrs. BRECHEEN
and PALMER, Mrs. MILLER of Illinois,
========================= END NOTE =========================
and Mr. OBERNOLTE changed their vote from ``yea'' to ``nay.''Mrs.
TORRES of California and Ms. BROWN changed their vote from ``nay'' to
``yea.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore. The question is on passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. NEAL. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. This is a 5-minute vote.
The vote was taken by electronic device, and there were--yeas 215,
nays 214, answered ``present'' 1, not voting 2, as follows:
[Roll No. 145]
YEAS--215
Aderholt
Alford
Allen
Amodei (NV)
Arrington
Babin
Bacon
Baird
Balderson
Barr
Barrett
Baumgartner
Bean (FL)
Begich
Bentz
Bergman
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NAYS--214
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ANSWERED ``PRESENT''--1
Harris (MD)
NOT VOTING--2
Garbarino
Schweikert
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). There are 2 minutes
remaining.
{time} 0654
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
[[Page H2358]]
Stated for:
Mr. SCHWEIKERT. Mr. Speaker, had I been present, I would have voted
YEA on Roll Call No. 145.
____________________