    [119th Congress Public Law 21]
    [From the U.S. Government Publishing Office]

    [[Page 71]]

    [[Page 139 STAT. 72]]

    Public Law 119-21
    119th Congress

                                     An Act

       To provide for reconciliation pursuant to title II of H. Con. Res.
                     14. <<NOTE: July 4, 2025 -  [H.R. 1]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled,
    SECTION 1. TABLE OF CONTENTS.

        The table of contents of this Act is as follows:

    Sec. 1. Table of contents.

           TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

                              Subtitle A--Nutrition

    Sec. 10101. Re-evaluation of thrifty food plan.
    Sec. 10102. Modifications to SNAP work requirements for able-bodied
               adults.
    Sec. 10103. Availability of standard utility allowances based on receipt
               of energy assistance.
    Sec. 10104. Restrictions on internet expenses.
    Sec. 10105. Matching funds requirements.
    Sec. 10106. Administrative cost sharing.
    Sec. 10107. National education and obesity prevention grant program.
    Sec. 10108. Alien SNAP eligibility.

                              Subtitle B--Forestry

    Sec. 10201. Rescission of amounts for forestry.

                             Subtitle C--Commodities

    Sec. 10301. Effective reference price; reference price.
    Sec. 10302. Base acres.
    Sec. 10303. Producer election.
    Sec. 10304. Price loss coverage.
    Sec. 10305. Agriculture risk coverage.
    Sec. 10306. Equitable treatment of certain entities.
    Sec. 10307. Payment limitations.
    Sec. 10308. Adjusted gross income limitation.
    Sec. 10309. Marketing loans.
    Sec. 10310. Repayment of marketing loans.
    Sec. 10311. Economic adjustment assistance for textile mills.
    Sec. 10312. Sugar program updates.
    Sec. 10313. Dairy policy updates.
    Sec. 10314. Implementation.

                    Subtitle D--Disaster Assistance Programs

    Sec. 10401. Supplemental agricultural disaster assistance.

                           Subtitle E--Crop Insurance

    Sec. 10501. Beginning farmer and rancher benefit.
    Sec. 10502. Area-based crop insurance coverage and affordability.
    Sec. 10503. Administrative and operating expense adjustments.
    Sec. 10504. Premium support.
    Sec. 10505. Program compliance and integrity.
    Sec. 10506. Reviews, compliance, and integrity.
    Sec. 10507. Poultry insurance pilot program.

               Subtitle F--Additional Investments in Rural America

    Sec. 10601. Conservation.

    [[Page 139 STAT. 73]]

    Sec. 10602. Supplemental agricultural trade promotion program.
    Sec. 10603. Nutrition.
    Sec. 10604. Research.
    Sec. 10605. Energy.
    Sec. 10606. Horticulture.
    Sec. 10607. 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 Department of Defense.
    Sec. 20011. Improving Department of Defense border support and counter-
               drug missions.
    Sec. 20012. Department of Defense oversight.
    Sec. 20013. Military construction projects authorized.

           TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

    Sec. 30001. Funding cap for the Bureau of Consumer Financial Protection.
    Sec. 30002. Rescission of funds for Green and Resilient Retrofit Program
               for Multifamily Housing.
    Sec. 30003. Securities and Exchange Commission Reserve Fund.
    Sec. 30004. Appropriations for Defense Production Act.

          TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

    Sec. 40001. Coast Guard mission readiness.
    Sec. 40002. Spectrum auctions.
    Sec. 40003. Air traffic control improvements.
    Sec. 40004. Space launch and reentry licensing and permitting user fees.
    Sec. 40005. Mars missions, Artemis missions, and Moon to Mars program.
    Sec. 40006. Corporate average fuel economy civil penalties.
    Sec. 40007. Payments for lease of Metropolitan Washington Airports.
    Sec. 40008. Rescission of certain amounts for the National Oceanic and
               Atmospheric Administration.
    Sec. 40009. Reduction in annual transfers to Travel Promotion Fund.
    Sec. 40010. Treatment of unobligated funds for alternative fuel and low-
               emission aviation technology.
    Sec. 40011. Rescission of amounts appropriated to Public Wireless Supply
               Chain Innovation Fund.

               TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

                         Subtitle A--Oil and Gas Leasing

    Sec. 50101. Onshore oil and gas leasing.
    Sec. 50102. Offshore oil and gas leasing.
    Sec. 50103. Royalties on extracted methane.
    Sec. 50104. Alaska oil and gas leasing.
    Sec. 50105. National Petroleum Reserve-Alaska.

                               Subtitle B--Mining

    Sec. 50201. Coal leasing.
    Sec. 50202. Coal royalty.
    Sec. 50203. Leases for known recoverable coal resources.
    Sec. 50204. Authorization to mine Federal coal.

                                Subtitle C--Lands

    Sec. 50301. Timber sales and long-term contracting for the Forest
               Service and the Bureau of Land Management.

    [[Page 139 STAT. 74]]

    Sec. 50302. Renewable energy fees on Federal land.
    Sec. 50303. Renewable energy revenue sharing.
    Sec. 50304. Rescission of National Park Service and Bureau of Land
               Management funds.
    Sec. 50305. Celebrating America's 250th anniversary.

                               Subtitle D--Energy

    Sec. 50401. Strategic Petroleum Reserve.
    Sec. 50402. Repeals; rescissions.
    Sec. 50403. Energy dominance financing.
    Sec. 50404. Transformational artificial intelligence models.

                                Subtitle E--Water

    Sec. 50501. Water conveyance and surface water storage enhancement.

               TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

    Sec. 60001. Rescission of funding for clean heavy-duty vehicles.
    Sec. 60002. Repeal of Greenhouse Gas Reduction Fund.
    Sec. 60003. Rescission of funding for diesel emissions reductions.
    Sec. 60004. Rescission of funding to address air pollution.
    Sec. 60005. Rescission of funding to address air pollution at schools.
    Sec. 60006. Rescission of funding for the low emissions electricity
               program.
    Sec. 60007. Rescission of funding for section 211(o) of the Clean Air
               Act.
    Sec. 60008. Rescission of funding for implementation of the American
               Innovation and Manufacturing Act.
    Sec. 60009. Rescission of funding for enforcement technology and public
               information.
    Sec. 60010. Rescission of funding for greenhouse gas corporate
               reporting.
    Sec. 60011. Rescission of funding for environmental product declaration
               assistance.
    Sec. 60012. Rescission of funding for methane emissions and waste
               reduction incentive program for petroleum and natural gas
               systems.
    Sec. 60013. Rescission of funding for greenhouse gas air pollution plans
               and implementation grants.
    Sec. 60014. Rescission of funding for environmental protection agency
               efficient, accurate, and timely reviews.
    Sec. 60015. Rescission of funding for low-embodied carbon labeling for
               construction materials.
    Sec. 60016. Rescission of funding for environmental and climate justice
               block grants.
    Sec. 60017. Rescission of funding for ESA recovery plans.
    Sec. 60018. Rescission of funding for environmental and climate data
               collection.
    Sec. 60019. Rescission of neighborhood access and equity grant program.
    Sec. 60020. Rescission of funding for Federal building assistance.
    Sec. 60021. Rescission of funding for low-carbon materials for Federal
               buildings.
    Sec. 60022. Rescission of funding for GSA emerging and sustainable
               technologies.
    Sec. 60023. Rescission of environmental review implementation funds.
    Sec. 60024. Rescission of low-carbon transportation materials grants.
    Sec. 60025. John F. Kennedy Center for the Performing Arts.
    Sec. 60026. Project sponsor opt-in fees for environmental reviews.

                               TITLE VII--FINANCE

                                 Subtitle A--Tax

    Sec. 70001. References to the Internal Revenue Code of 1986, etc.

    Chapter 1--Providing Permanent Tax Relief for Middle-class Families and
                                     Workers

    Sec. 70101. Extension and enhancement of reduced rates.
    Sec. 70102. Extension and enhancement of increased standard deduction.
    Sec. 70103. Termination of deduction for personal exemptions other than
               temporary senior deduction.
    Sec. 70104. Extension and enhancement of increased child tax credit.
    Sec. 70105. Extension and enhancement of deduction for qualified
               business income.
    Sec. 70106. Extension and enhancement of increased estate and gift tax
               exemption amounts.
    Sec. 70107. Extension of increased alternative minimum tax exemption
               amounts and modification of phaseout thresholds.
    Sec. 70108. Extension and modification of limitation on deduction for
               qualified residence interest.
    Sec. 70109. Extension and modification of limitation on casualty loss
               deduction.

    [[Page 139 STAT. 75]]

    Sec. 70110. Termination of miscellaneous itemized deductions other than
               educator expenses.
    Sec. 70111. Limitation on tax benefit of itemized deductions.
    Sec. 70112. Extension and modification of qualified transportation
               fringe benefits.
    Sec. 70113. Extension and modification of limitation on deduction and
               exclusion for moving expenses.
    Sec. 70114. Extension and modification of limitation on wagering losses.
    Sec. 70115. Extension and enhancement of increased limitation on
               contributions to ABLE accounts.
    Sec. 70116. Extension and enhancement of savers credit allowed for ABLE
               contributions.
    Sec. 70117. Extension of rollovers from qualified tuition programs to
               ABLE accounts permitted.
    Sec. 70118. Extension of treatment of certain individuals performing
               services in the Sinai Peninsula and enhancement to include
               additional areas.
    Sec. 70119. Extension and modification of exclusion from gross income of
               student loans discharged on account of death or disability.
    Sec. 70120. Limitation on individual deductions for certain state and
               local taxes, etc.

     Chapter 2--Delivering on Presidential Priorities to Provide New Middle-
                                class Tax Relief

    Sec. 70201. No tax on tips.
    Sec. 70202. No tax on overtime.
    Sec. 70203. No tax on car loan interest.
    Sec. 70204. Trump accounts and contribution pilot program.

     Chapter 3--Establishing Certainty and Competitiveness for American Job
                                    Creators

     subchapter a--permanent u.s. business tax reform and boosting domestic
                                   investment

    Sec. 70301. Full expensing for certain business property.
    Sec. 70302. Full expensing of domestic research and experimental
               expenditures.
    Sec. 70303. Modification of limitation on business interest.
    Sec. 70304. Extension and enhancement of paid family and medical leave
               credit.
    Sec. 70305. Exceptions from limitations on deduction for business meals.
    Sec. 70306. Increased dollar limitations for expensing of certain
               depreciable business assets.
    Sec. 70307. Special depreciation allowance for qualified production
               property.
    Sec. 70308. Enhancement of advanced manufacturing investment credit.
    Sec. 70309. Spaceports are treated like airports under exempt facility
               bond rules.

         subchapter b--permanent america-first international tax reforms

                           PART I--Foreign Tax Credit

    Sec. 70311. Modifications related to foreign tax credit limitation.
    Sec. 70312. Modifications to determination of deemed paid credit for
               taxes properly attributable to tested income.
    Sec. 70313. Sourcing certain income from the sale of inventory produced
               in the United States.

     PART II--Foreign-derived Deduction Eligible Income and Net CFC Tested
                                     Income

    Sec. 70321. Modification of deduction for foreign-derived deduction
               eligible income and net CFC tested income.
    Sec. 70322. Determination of deduction eligible income.
    Sec. 70323. Rules related to deemed intangible income.

                       PART III--Base Erosion Minimum Tax

    Sec. 70331. Extension and modification of base erosion minimum tax
               amount.

                      PART IV--Business Interest Limitation

    Sec. 70341. Coordination of business interest limitation with interest
               capitalization provisions.
    Sec. 70342. Definition of adjusted taxable income for business interest
               limitation.

                     PART V--Other International Tax Reforms

    Sec. 70351. Permanent extension of look-thru rule for related controlled
               foreign corporations.

    [[Page 139 STAT. 76]]

    Sec. 70352. Repeal of election for 1-month deferral in determination of
               taxable year of specified foreign corporations.
    Sec. 70353. Restoration of limitation on downward attribution of stock
               ownership in applying constructive ownership rules.
    Sec. 70354. Modifications to pro rata share rules.

       Chapter 4--Investing in American Families, Communities, and Small
                                   Businesses

          subchapter a--permanent investments in families and children

    Sec. 70401. Enhancement of employer-provided child care credit.
    Sec. 70402. Enhancement of adoption credit.
    Sec. 70403. Recognizing Indian tribal governments for purposes of
               determining whether a child has special needs for purposes of
               the adoption credit.
    Sec. 70404. Enhancement of the dependent care assistance program.
    Sec. 70405. Enhancement of child and dependent care tax credit.

       subchapter b--permanent investments in students and reforms to tax-
                               exempt institutions

    Sec. 70411. Tax credit for contributions of individuals to scholarship
               granting organizations.
    Sec. 70412. Exclusion for employer payments of student loans.
    Sec. 70413. Additional expenses treated as qualified higher education
               expenses for purposes of 529 accounts.
    Sec. 70414. Certain postsecondary credentialing expenses treated as
               qualified higher education expenses for purposes of 529
               accounts.
    Sec. 70415. Modification of excise tax on investment income of certain
               private colleges and universities.
    Sec. 70416. Expanding application of tax on excess compensation within
               tax-exempt organizations.

          subchapter c--permanent investments in community development

    Sec. 70421. Permanent renewal and enhancement of opportunity zones.
    Sec. 70422. Permanent enhancement of low-income housing tax credit.
    Sec. 70423. Permanent extension of new markets tax credit.
    Sec. 70424. Permanent and expanded reinstatement of partial deduction
               for charitable contributions of individuals who do not elect
               to itemize.
    Sec. 70425. 0.5 percent floor on deduction of contributions made by
               individuals.
    Sec. 70426. 1-percent floor on deduction of charitable contributions
               made by corporations.
    Sec. 70427. Permanent increase in limitation on cover over of tax on
               distilled spirits.
    Sec. 70428. Nonprofit community development activities in remote native
               villages.
    Sec. 70429. Adjustment of charitable deduction for certain expenses
               incurred in support of Native Alaskan subsistence whaling.
    Sec. 70430. Exception to percentage of completion method of accounting
               for certain residential construction contracts.

     subchapter d--permanent investments in small business and rural america

    Sec. 70431. Expansion of qualified small business stock gain exclusion.
    Sec. 70432. Repeal of revision to de minimis rules for third party
               network transactions.
    Sec. 70433. Increase in threshold for requiring information reporting
               with respect to certain payees.
    Sec. 70434. Treatment of certain qualified sound recording productions.
    Sec. 70435. Exclusion of interest on loans secured by rural or
               agricultural real property.
    Sec. 70436. Reduction of transfer and manufacturing taxes for certain
               devices.
    Sec. 70437. Treatment of capital gains from the sale of certain farmland
               property.
    Sec. 70438. Extension of rules for treatment of certain disaster-related
               personal casualty losses.
    Sec. 70439. Restoration of taxable REIT subsidiary asset test.

       Chapter 5--Ending Green New Deal Spending, Promoting America-first
                            Energy, and Other Reforms

              subchapter a--termination of green new deal subsidies

    Sec. 70501. Termination of previously-owned clean vehicle credit.
    Sec. 70502. Termination of clean vehicle credit.
    Sec. 70503. Termination of qualified commercial clean vehicles credit.

    [[Page 139 STAT. 77]]

    Sec. 70504. Termination of alternative fuel vehicle refueling property
               credit.
    Sec. 70505. Termination of energy efficient home improvement credit.
    Sec. 70506. Termination of residential clean energy credit.
    Sec. 70507. Termination of energy efficient commercial buildings
               deduction.
    Sec. 70508. Termination of new energy efficient home credit.
    Sec. 70509. Termination of cost recovery for energy property.
    Sec. 70510. Modifications of zero-emission nuclear power production
               credit.
    Sec. 70511. Termination of clean hydrogen production credit.
    Sec. 70512. Termination and restrictions on clean electricity production
               credit.
    Sec. 70513. Termination and restrictions on clean electricity investment
               credit.
    Sec. 70514. Phase-out and restrictions on advanced manufacturing
               production credit.
    Sec. 70515. Restriction on the extension of advanced energy project
               credit program.

            subchapter b--enhancement of america-first energy policy

    Sec. 70521. Extension and modification of clean fuel production credit.
    Sec. 70522. Restrictions on carbon oxide sequestration credit.
    Sec. 70523. Intangible drilling and development costs taken into account
               for purposes of computing adjusted financial statement
               income.
    Sec. 70524. Income from hydrogen storage, carbon capture, advanced
               nuclear, hydropower, and geothermal energy added to
               qualifying income of certain publicly traded partnerships.
    Sec. 70525. Allow for payments to certain individuals who dye fuel.

                           subchapter c--other reforms

    Sec. 70531. Modifications to de minimis entry privilege for commercial
               shipments.

      Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and
                                  Other Reforms

    Sec. 70601. Modification and extension of limitation on excess business
               losses of noncorporate taxpayers.
    Sec. 70602. Treatment of payments from partnerships to partners for
               property or services.
    Sec. 70603. Excessive employee remuneration from controlled group
               members and allocation of deduction.
    Sec. 70604. Excise tax on certain remittance transfers.
    Sec. 70605. Enforcement provisions with respect to COVID-related
               employee retention credits.
    Sec. 70606. Social security number requirement for American Opportunity
               and Lifetime Learning credits.
    Sec. 70607. Task force on the replacement of Direct File.

                               Subtitle B--Health

                               Chapter 1--Medicaid

         subchapter a--reducing fraud and improving enrollment processes

    Sec. 71101. Moratorium on implementation of rule relating to eligibility
               and enrollment in Medicare Savings Programs.
    Sec. 71102. Moratorium on implementation of rule relating to eligibility
               and enrollment for Medicaid, CHIP, and the Basic Health
               Program.
    Sec. 71103. Reducing duplicate enrollment under the Medicaid and CHIP
               programs.
    Sec. 71104. Ensuring deceased individuals do not remain enrolled.
    Sec. 71105. Ensuring deceased providers do not remain enrolled.
    Sec. 71106. Payment reduction related to certain erroneous excess
               payments under Medicaid.
    Sec. 71107. Eligibility redeterminations.
    Sec. 71108. Revising home equity limit for determining eligibility for
               long-term care services under the Medicaid program.
    Sec. 71109. Alien Medicaid eligibility.
    Sec. 71110. Expansion FMAP for emergency Medicaid.

                   subchapter b--preventing wasteful spending

    Sec. 71111. Moratorium on implementation of rule relating to staffing
               standards for long-term care facilities under the Medicare
               and Medicaid programs.
    Sec. 71112. Reducing State Medicaid costs.
    Sec. 71113. Federal payments to prohibited entities.

               subchapter c--stopping abusive financing practices

    Sec. 71114. Sunsetting increased FMAP incentive.

    [[Page 139 STAT. 78]]

    Sec. 71115. Provider taxes.
    Sec. 71116. State directed payments.
    Sec. 71117. Requirements regarding waiver of uniform tax requirement for
               Medicaid provider tax.
    Sec. 71118. Requiring budget neutrality for Medicaid demonstration
               projects under section 1115.

                subchapter d--increasing personal accountability

    Sec. 71119. Requirement for States to establish Medicaid community
               engagement requirements for certain individuals.
    Sec. 71120. Modifying cost sharing requirements for certain expansion
               individuals under the Medicaid program.

                     subchapter e--expanding access to care

    Sec. 71121. Making certain adjustments to coverage of home or community-
               based services under Medicaid.

                               Chapter 2--Medicare

              subchapter a--strengthening eligibility requirements

    Sec. 71201. Limiting Medicare coverage of certain individuals.

                  subchapter b--improving services for seniors

    Sec. 71202. Temporary payment increase under the medicare physician fee
               schedule to account for exceptional circumstances.
    Sec. 71203. Expanding and clarifying the exclusion for orphan drugs
               under the Drug Price Negotiation Program.

                              Chapter 3--Health Tax

                  subchapter a--improving eligibility criteria

    Sec. 71301. Permitting premium tax credit only for certain individuals.
    Sec. 71302. Disallowing premium tax credit during periods of medicaid
               ineligibility due to alien status.

                subchapter b--preventing waste, fraud, and abuse

    Sec. 71303. Requiring verification of eligibility for premium tax
               credit.
    Sec. 71304. Disallowing premium tax credit in case of certain coverage
               enrolled in during special enrollment period.
    Sec. 71305. Eliminating limitation on recapture of advance payment of
               premium tax credit.

                   subchapter c--enhancing choice for patients

    Sec. 71306. Permanent extension of safe harbor for absence of deductible
               for telehealth services.
    Sec. 71307. Allowance of bronze and catastrophic plans in connection
               with health savings accounts.
    Sec. 71308. Treatment of direct primary care service arrangements.

               Chapter 4--Protecting Rural Hospitals and Providers

    Sec. 71401. Rural Health Transformation Program.

                       Subtitle C--Increase in Debt Limit

    Sec. 72001. Modification of limitation on the public debt.

                            Subtitle D--Unemployment

    Sec. 73001. Ending unemployment payments to jobless millionaires.

         TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS

                     Subtitle A--Exemption of Certain Assets

    Sec. 80001. Exemption of certain assets.

                             Subtitle B--Loan Limits

    Sec. 81001. Establishment of loan limits for graduate and professional
               students and parent borrowers; termination of graduate and
               professional PLUS loans.

                           Subtitle C--Loan Repayment

    Sec. 82001. Loan repayment.

    [[Page 139 STAT. 79]]

    Sec. 82002. Deferment; forbearance.
    Sec. 82003. Loan rehabilitation.
    Sec. 82004. Public service loan forgiveness.
    Sec. 82005. Student loan servicing.

                             Subtitle D--Pell Grants

    Sec. 83001. Eligibility.
    Sec. 83002. Workforce Pell Grants.
    Sec. 83003. Pell shortfall.
    Sec. 83004. Federal Pell Grant exclusion relating to other grant aid.

                           Subtitle E--Accountability

    Sec. 84001. Ineligibility based on low earning outcomes.

                          Subtitle F--Regulatory Relief

    Sec. 85001. Delay of rule relating to borrower defense to repayment.
    Sec. 85002. Delay of rule relating to closed school discharges.

                          Subtitle G--Garden of Heroes

    Sec. 86001. Garden of Heroes.

                   Subtitle H--Office of Refugee Resettlement

    Sec. 87001. Potential sponsor vetting for unaccompanied alien children
               appropriation.

        TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    Subtitle A--Homeland Security Provisions

    Sec. 90001. Border infrastructure and wall system.
    Sec. 90002. U.S. Customs and Border Protection personnel, fleet
               vehicles, and facilities.
    Sec. 90003. Detention capacity.
    Sec. 90004. Border security, technology, and screening.
    Sec. 90005. State and local assistance.
    Sec. 90006. Presidential residence protection.
    Sec. 90007. Department of Homeland Security appropriations for border
               support.

                   Subtitle B--Governmental Affairs Provisions

    Sec. 90101. FEHB improvements.
    Sec. 90102. Pandemic Response Accountability Committee.
    Sec. 90103. Appropriation for the Office of Management and Budget.

                       TITLE X--COMMITTEE ON THE JUDICIARY

               Subtitle A--Immigration and Law Enforcement Matters

                            PART I--Immigration Fees

    Sec. 100001. Applicability of the immigration laws.
    Sec. 100002. Asylum fee.
    Sec. 100003. Employment authorization document fees.
    Sec. 100004. Immigration parole fee.
    Sec. 100005. Special immigrant juvenile fee.
    Sec. 100006. Temporary protected status fee.
    Sec. 100007. Visa integrity fee.
    Sec. 100008. Form I-94 fee.
    Sec. 100009. Annual asylum fee.
    Sec. 100010. Fee relating to renewal and extension of employment
               authorization for parolees.
    Sec. 100011. Fee relating to renewal or extension of employment
               authorization for asylum applicants.
    Sec. 100012. Fee relating to renewal and extension of employment
               authorization for aliens granted temporary protected status.
    Sec. 100013. Fees relating to applications for adjustment of status.
    Sec. 100014. Electronic System for Travel Authorization fee.
    Sec. 100015. Electronic Visa Update System fee.
    Sec. 100016. Fee for aliens ordered removed in absentia.
    Sec. 100017. Inadmissible alien apprehension fee.
    Sec. 100018. Amendment to authority to apply for asylum.

                PART II--Immigration and Law Enforcement Funding

    Sec. 100051. Appropriation for the Department of Homeland Security.

    [[Page 139 STAT. 80]]

    Sec. 100052. Appropriation for U.S. Immigration and Customs Enforcement.
    Sec. 100053. Appropriation for Federal Law Enforcement Training Centers.
    Sec. 100054. Appropriation for the Department of Justice.
    Sec. 100055. Bridging Immigration-related Deficits Experienced
               Nationwide Reimbursement Fund.
    Sec. 100056. Appropriation for the Bureau of Prisons.
    Sec. 100057. Appropriation for the United States Secret Service.

                          Subtitle B--Judiciary Matters

    Sec. 100101. Appropriation to the Administrative Office of the United
               States Courts.
    Sec. 100102. Appropriation to the Federal Judicial Center.

               Subtitle C--Radiation Exposure Compensation Matters

    Sec. 100201. Extension of fund.
    Sec. 100202. Claims relating to atmospheric testing.
    Sec. 100203. Claims relating to uranium mining.
    Sec. 100204. Claims relating to Manhattan Project waste.
    Sec. 100205. Limitations on claims.

           TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

                              Subtitle A--Nutrition

    SEC. 10101. RE-EVALUATION OF THRIFTY FOOD PLAN.

        (a) In General.--Section 3 of the Food and Nutrition Act of 2008 (7
    U.S.C. 2012) is amended by striking subsection (u) and inserting the
    following:
        ``(u) Thrifty Food Plan.--
                ``(1) <<NOTE: Definition.>> In general.--The term `thrifty
            food plan' means the diet required to feed a family of 4 persons
            consisting of a man and a woman ages 20 through 50, a child ages
            6 through 8, and a child ages 9 through 11 using the items and
            quantities of food described in the report of the Department of
            Agriculture entitled `Thrifty Food Plan, 2021', and each
            successor report updated pursuant to this subsection, subject to
            the conditions that--
                        ``(A) the relevant market baskets of the thrifty
                    food plan shall only be changed pursuant to paragraph
                    (4);
                        ``(B) the cost of the thrifty food plan shall be the
                    basis for uniform allotments for all households,
                    regardless of the actual composition of the household;
                    and
                        ``(C) the cost of the thrifty food plan may only be
                    adjusted in accordance with this subsection.
                ``(2) Household adjustments.--The Secretary shall make
            household adjustments using 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.

    [[Page 139 STAT. 81]]

                        ``(I) For a household of 9 persons or more, an
                    additional 22 percent per person, which additional
                    percentage shall not total more than 200 percent.
                ``(3) Allowable cost adjustments.--The Secretary shall--
                        ``(A) <<NOTE: Hawaii. Alaska.>> make cost
                    adjustments in the thrifty food plan for Hawaii and the
                    urban and rural parts of Alaska to reflect the cost of
                    food in Hawaii and urban and rural Alaska;
                        ``(B) <<NOTE: Guam. Virgin Islands.>> 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; and
                        ``(C) <<NOTE: Effective dates. Time
                    period. Expiration date.>> on October 1, 2025, and on
                    each October 1 thereafter, 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.
                ``(4) Re-evaluation of market baskets.--
                        ``(A) <<NOTE: Deadline.>> Re-evaluation.--Not
                    earlier than October 1, 2027, the Secretary may re-
                    evaluate the market baskets of the thrifty food plan
                    based on current food prices, food composition data,
                    consumption patterns, and dietary guidance.
                        ``(B) Cost neutrality.--The Secretary shall not
                    increase the cost of the thrifty food plan based on a
                    re-evaluation under this paragraph.''.

        (b) Conforming Amendments.--
                (1) Section 16(c)(1)(A)(ii)(II) of the Food and Nutrition
            Act of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)(II)) is amended by
            striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''.
                (2) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of
            2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking
            ``section 3(u)(4)'' and inserting ``section 3(u)(3)''.
                (3) Section 27(a)(2) of the Food and Nutrition Act of 2008
            (7 U.S.C. 2036(a)(2))) is amended by striking ``section
            3(u)(4)'' each place it appears and inserting ``section
            3(u)(3)''.
    SEC. 10102. MODIFICATIONS TO SNAP WORK REQUIREMENTS FOR ABLE-
                                BODIED ADULTS.

        (a) Exceptions.--Section 6(o) of the Food and Nutrition Act of 2008
    (7 U.S.C. 2015(o)) is amended by striking paragraph (3) and inserting
    the following:
                ``(3) Exceptions.--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 14 years of
                    age;
                        ``(D) otherwise exempt under subsection (d)(2);
                        ``(E) a pregnant woman;
                        ``(F) 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); or

    [[Page 139 STAT. 82]]

                        ``(G) a California Indian described in section
                    809(a) of the Indian Health Care Improvement Act.''.

        (b) Standardizing Enforcement.--Section 6(o)(4) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2015(o)(4)) is amended--
                (1) in subparagraph (A), by striking clause (ii) and
            inserting the following:
                              ``(ii) is in a noncontiguous State and has an
                          unemployment rate that is at or above 1.5 times
                          the national unemployment rate.''; and
                (2) by adding at the end the following:
                        ``(C) Definition of noncontiguous state.--
                              ``(i) In general.--In this paragraph, the term
                          `noncontiguous State' means a State that is not 1
                          of the contiguous 48 States or the District of
                          Columbia.
                              ``(ii) Exclusions.--The term `noncontiguous
                          State' does not include Guam or the Virgin Islands
                          of the United States.''.

        (c) Waiver for Noncontiguous States.--Section 6(o) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended--
                (1) by redesignating paragraph (7) as paragraph (8); and
                (2) by inserting after paragraph (6) the following:
                ``(7) Exemption for noncontiguous states.--
                        ``(A) Definition of noncontiguous state.--
                              ``(i) In general.--In this paragraph, the term
                          `noncontiguous State' means a State that is not 1
                          of the contiguous 48 States or the District of
                          Columbia.
                              ``(ii) Exclusions.--In this paragraph, the
                          term `noncontiguous State' does not include Guam
                          or the Virgin Islands of the United States.
                        ``(B) Exemption.--Subject to subparagraph (D), the
                    Secretary may exempt individuals in a noncontiguous
                    State from compliance with the requirements of paragraph
                    (2) if--
                              ``(i) the State agency submits to the
                          Secretary a request for that exemption, made in
                          such form and at such time as the Secretary may
                          require, and including the information described
                          in subparagraph (C); and

                          ``(ii) <<NOTE: Determination. Compliance.>> the
                          Secretary determines that based on that request,
                          the State agency is demonstrating a good faith
                          effort to comply with the requirements of
                          paragraph (2).
                        ``(C) Good faith effort determination.--In
                    determining whether a State agency is demonstrating a
                    good faith effort for purposes of subparagraph (B)(ii),
                    the Secretary shall consider--
                              ``(i) any actions taken by the State agency
                          toward compliance with the requirements of
                          paragraph (2);
                              ``(ii) any significant barriers to or
                          challenges in meeting those requirements,
                          including barriers or challenges relating to
                          funding, design, development, procurement, or
                          installation of necessary systems or resources;
                              ``(iii) the detailed plan and timeline of the
                          State agency for achieving full compliance with
                          those requirements, including any milestones (as
                          defined by the Secretary); and

    [[Page 139 STAT. 83]]

                              ``(iv) any other criteria determined
                          appropriate by the Secretary.
                        ``(D) Duration of exemption.--
                              ``(i) <<NOTE: Deadline.>> In general.--An
                          exemption granted under subparagraph (B) shall
                          expire not later than December 31, 2028, and may
                          not be renewed beyond that date.
                              ``(ii) <<NOTE: Determination.>> Early
                          termination.--The Secretary may terminate an
                          exemption granted under subparagraph (B) prior to
                          the expiration date of that exemption if the
                          Secretary determines that the State agency--
                                        ``(I) <<NOTE: Compliance.>> has
                                    failed to comply with the reporting
                                    requirements described in subparagraph
                                    (E); or
                                        ``(II) based on the information
                                    provided pursuant to subparagraph (E),
                                    failed to make continued good faith
                                    efforts toward compliance with the
                                    requirements of this subsection.
                        ``(E) Reporting requirements.--A State agency
                    granted an exemption under subparagraph (B) shall submit
                    to the Secretary--
                              ``(i) quarterly progress reports on the status
                          of the State agency in achieving the milestones
                          toward full compliance described in subparagraph
                          (C)(iii); and
                              ``(ii) <<NOTE: Plan.>> information on specific
                          risks or newly identified barriers or challenges
                          to full compliance, including the plan of the
                          State agency to mitigate those risks, barriers, or
                          challenges.''.
    SEC. 10103. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED ON
                                RECEIPT OF ENERGY ASSISTANCE.

        (a) Standard Utility Allowance.--Section 5(e)(6)(C)(iv)(I) of the
    Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is
    amended by inserting ``with an elderly or disabled member'' after
    ``households''.
        (b) Third-party Energy Assistance Payments.--Section 5(k)(4) of the
    Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended--
                (1) in subparagraph (A), by inserting ``without an elderly
            or disabled member'' before ``shall be''; and
                (2) in subparagraph (B), by inserting ``with an elderly or
            disabled member'' before ``under a State law''.
    SEC. 10104. 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.--Any
                    service fee associated with internet connection shall
                    not be used in computing the excess shelter expense
                    deduction under this paragraph.''.
    SEC. 10105. 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) State quality control incentive.--

    [[Page 139 STAT. 84]]

                        ``(A) Definition of payment error rate.--In this
                    paragraph, the term `payment error rate' has the meaning
                    given the term in section 16(c)(2).
                        ``(B) <<NOTE: Time periods.>> State cost share.--
                              ``(i) <<NOTE: Effective date.>> In general.--
                          Subject to clause (iii), beginning in fiscal year
                          2028, if the payment error rate of a State as
                          determined under clause (ii) is--
                                        ``(I) less than 6 percent, the
                                    Federal share of the cost of the
                                    allotment described in paragraph (1) for
                                    that State in a fiscal year shall be 100
                                    percent, and the State share shall be 0
                                    percent;
                                        ``(II) equal to or greater than 6
                                    percent but less than 8 percent, the
                                    Federal share of the cost of the
                                    allotment described in paragraph (1) for
                                    that State in a fiscal year shall be 95
                                    percent, and the State share shall be 5
                                    percent;
                                        ``(III) equal to or greater than 8
                                    percent but less than 10 percent, the
                                    Federal share of the cost of the
                                    allotment described in paragraph (1) for
                                    that State in a fiscal year shall be 90
                                    percent, and the State share shall be 10
                                    percent; and
                                        ``(IV) equal to or greater than 10
                                    percent, the Federal share of the cost
                                    of the allotment described in paragraph
                                    (1) for that State in a fiscal year
                                    shall be 85 percent, and the State share
                                    shall be 15 percent.
                              ``(ii) Elections.--
                                        ``(I) Fiscal year 2028.--For fiscal
                                    year 2028, to calculate the applicable
                                    State share under clause (i), a State
                                    may elect to use the payment error rate
                                    of the State from fiscal year 2025 or
                                    2026.
                                        ``(II) Fiscal year 2029 and
                                    thereafter.--For fiscal year 2029 and
                                    each fiscal year thereafter, to
                                    calculate the applicable State share
                                    under clause (i), the Secretary shall
                                    use the payment error rate of the State
                                    for the third fiscal year preceding the
                                    fiscal year for which the State share is
                                    being calculated.
                              ``(iii) Delayed implementation.--
                                        ``(I) Fiscal year 2025.--If, for
                                    fiscal year 2025, the payment error rate
                                    of a State multiplied by 1.5 is equal to
                                    or above 20 percent, the implementation
                                    date under clause (i) for that State
                                    shall be fiscal year 2029.
                                        ``(II) Fiscal year 2026.--If, for
                                    fiscal year 2026, the payment error rate
                                    of a State multiplied by 1.5 is equal to
                                    or above 20 percent, the implementation
                                    date under clause (i) for that State
                                    shall be fiscal year 2030.
                ``(3) Maximum federal payment.--The Secretary may not pay
            towards the cost of an allotment described in paragraph (1) an
            amount that is greater than the applicable Federal share under
            paragraph (2).''.

        (b) Limitation on Authority.--Section 13(a)(1) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in

    [[Page 139 STAT. 85]]

    the first sentence by inserting ``or the payment or disposition of a
    State share under section 4(a)(2)'' after ``16(c)(1)(D)(i)(II)''.
    SEC. 10106. ADMINISTRATIVE COST SHARING.

        Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2025(a)) is amended in the matter preceding paragraph (1) by striking
    ``agency an amount equal to 50 per centum'' and inserting ``agency,
    through fiscal year 2026, 50 percent, and for fiscal year 2027 and each
    fiscal year thereafter, 25 percent,''.
    SEC. 10107. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT
                                PROGRAM.

        Section 28(d)(1)(F) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2036a(d)(1)(F)) is amended by striking ``for fiscal year 2016 and each
    subsequent fiscal year'' and inserting ``for each of fiscal years 2016
    through 2025''.
    SEC. 10108. 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 has been granted the status of
                    Cuban and Haitian entrant, as defined in section 501(e)
                    of the Refugee Education Assistance Act of 1980 (Public
                    Law 96-422); or
                        ``(D) an individual who lawfully resides in the
                    United States in accordance with a Compact of Free
                    Association referred to in section 402(b)(2)(G) of the
                    Personal Responsibility and Work Opportunity
                    Reconciliation Act of 1996.
            The income (less, at State option, a pro rata share) and
            financial resources of the individual rendered ineligible to
            participate in the supplemental nutrition assistance program
            under this subsection shall be considered in determining the
            eligibility and the value of the allotment of the household of
            which such individual is a member.''.

                              Subtitle B--Forestry

    SEC. 10201. RESCISSION OF AMOUNTS FOR FORESTRY.

        The unobligated balances of amounts appropriated by the following
    provisions of Public Law 117-169 are rescinded:
                (1) Paragraphs (3) and (4) of section 23001(a) (136 Stat.
            2023).

    [[Page 139 STAT. 86]]

                (2) Paragraphs (1) through (4) of section 23002(a) (136
            Stat. 2025).
                (3) Section 23003(a)(2) (136 Stat. 2026).
                (4) Section 23005 (136 Stat. 2027).

                             Subtitle C--Commodities

    SEC. 10301. EFFECTIVE REFERENCE PRICE; REFERENCE PRICE.

        (a) Effective Reference Price.--Section 1111(8)(B)(ii) of the
    Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by
    striking ``85'' and inserting ``beginning with the crop year 2025, 88''.
        (b) Reference Price.--Section 1111 of the Agricultural Act of 2014
    (7 U.S.C. 9011) is amended by striking paragraph (19) and inserting the
    following:
                ``(19) <<NOTE: Effective dates.>> Reference price.--
                        ``(A) In general.--Effective beginning with the 2025
                    crop year, 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 113 percent of the
                    reference price for such covered commodity listed in
                    subparagraph (A).''.
    SEC. 10302. 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.--

    [[Page 139 STAT. 87]]

                ``(1) <<NOTE: Notice.>> 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 (3) 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. <<NOTE: Notification. Deadline.>> 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
            not later than 90 days after receipt of the notice provided by
            the Secretary under this paragraph.
                ``(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
                    (3).
                        ``(C) <<NOTE: Process.>> Information regarding how
                    an owner may appeal a determination of ineligibility for
                    an allocation of base acres under paragraph (3) through
                    an appeals process established by the Secretary.
                ``(3) Eligibility.--
                        ``(A) <<NOTE: Effective date.>> 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) <<NOTE: Determination.>> 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) <<NOTE: Determination.>> a
                                            ny 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.

    [[Page 139 STAT. 88]]

                        ``(C) Total number of base acres for covered
                    commodities.-- <<NOTE: Effective date.>> 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.
                ``(4) Number of base acres.--Subject to paragraphs (3) and
            (8), 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 (3) from the amount determined under
                    subparagraph (B) of that paragraph; and
                        ``(B) include unassigned crop base.
                ``(5) <<NOTE: Time periods. Determinations.>> Allocation of
            acres.--
                        ``(A) Allocation.--The Secretary shall allocate the
                    number of base acres under paragraph (4) 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 (3)(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

    [[Page 139 STAT. 89]]

                    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.
                ``(6) <<NOTE: Applicability.>> 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.
                ``(7) <<NOTE: Effective date.>> 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).
                ``(8) <<NOTE: Time period.>> 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 (3);
                        ``(B) eligible acres under paragraph (4); and
                        ``(C) the allocation of acres under paragraph
                    (5).''.
    SEC. 10303. PRODUCER ELECTION.

        (a) In General.--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'';
                (2) in subsection (c)--
                        (A) in the matter preceding paragraph (1)--
                              (i) by striking ``crop year or'' and inserting
                          ``crop year,''; and
                              (ii) by inserting ``or the 2026 crop year,''
                          after ``2019 crop year,'';
                        (B) in paragraph (1)--
                              (i) by striking ``crop year or'' and inserting
                          ``crop year,''; and
                              (ii) by inserting ``or the 2026 crop year,''
                          after ``2019 crop year,''; and

    [[Page 139 STAT. 90]]

                        (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 2027 through 2031 crop years as was
                    applicable for the 2025 crop year.''; and
                (3) by adding at the end the following:

        ``(i) Higher of Price Loss Coverage Payments and Agriculture Risk
    Coverage Payments.-- <<NOTE: Time period.>> For the 2025 crop year, the
    Secretary shall, on a covered commodity-by-covered commodity basis, make
    the higher of price loss coverage payments under section 1116 and
    agriculture risk coverage county coverage payments under section 1117 to
    the producers on a farm for the payment acres for each covered commodity
    on the farm.''.

        (b) Federal Crop Insurance Supplemental Coverage Option.--Section
    508(c)(4)(C)(iv) of the Federal Crop Insurance Act (7 U.S.C.
    1508(c)(4)(C)(iv)) is amended by striking ``Crops for which the producer
    has elected under section 1116 of the Agricultural Act of 2014 to
    receive agriculture risk coverage and acres'' and inserting ``Acres''.
    SEC. 10304. PRICE LOSS COVERAGE.

        Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is
    amended--
                (1) in subsection (a)(2), in the matter preceding
            subparagraph (A), by striking ``2023'' and inserting ``2031'';
                (2) in subsection (c)(1)(B)--
                        (A) in the subparagraph heading, by striking
                    ``2023'' and inserting ``2031''; and
                        (B) in the matter preceding clause (i), by striking
                    ``2023'' and inserting ``2031'';
                (3) in subsection (d), in the matter preceding paragraph
            (1), by striking ``2025'' and inserting ``2031''; and
                (4) in subsection (g)--
                        (A) by striking ``subparagraph (F) of section
                    1111(19)'' and inserting ``paragraph (19)(A)(vi) of
                    section 1111''; and
                        (B) by striking ``2012 through 2016'' each place it
                    appears and inserting ``2017 through 2021''.
    SEC. 10305. 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) in subsection (d)(1), by striking subparagraph (B) and
            inserting the following:

    [[Page 139 STAT. 91]]

                        ``(B)(i) for each of the 2014 through 2024 crop
                    years, 10 percent of the benchmark revenue for the crop
                    year applicable under subsection (c); and
                        ``(ii) for each of the 2025 through 2031 crop years,
                    12 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''.
    SEC. 10306. EQUITABLE TREATMENT OF CERTAIN ENTITIES.

        (a) In General.--Section 1001 of the Food Security Act of 1985 (7
    U.S.C. 1308) is amended--
                (1) in subsection (a)--
                        (A) by redesignating paragraph (5) as paragraph (6);
                    and
                        (B) by inserting after paragraph (4) the following:
                ``(5) <<NOTE: Definition.>> 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.'';
                (2) 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
                (3) in subsection (d), by striking ``subtitle B of title I
            of the Agricultural Act of 2014 or''.

        (b) 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--
                (1) in the clause heading, by striking ``joint ventures and
            general partnerships'' and inserting ``qualified pass-through
            entities'';
                (2) by striking ``a joint venture or a general partnership''
            and inserting ``a qualified pass-through entity'';
                (3) by striking ``joint ventures and general partnerships''
            and inserting ``qualified pass-through entities''; and
                (4) by striking ``the joint venture or general partnership''
            and inserting ``the qualified pass-through entity''.

        (c) 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--
                (1) subparagraphs (A) and (B), by striking ``a general
            partnership, a participant in a joint venture'' each place it
            appears and inserting ``a qualified pass-through entity''; and
                (2) in subparagraph (C), by striking ``a general
            partnership, joint venture, or similar entity'' and inserting
            ``a qualified pass-through entity or a similar entity''.

        (d) 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''.
        (e) Exclusion From AGI Calculation.--Section 1001D(d) of the Food
    Security Act of 1985 (7 U.S.C. 1308-3a(d)) is amended

    [[Page 139 STAT. 92]]

    by striking ``, general partnership, or joint venture'' each place it
    appears.
    SEC. 10307. 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) <<NOTE: Time periods.>> 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.''.
    SEC. 10308. 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 <<NOTE: Determination.>> term
                          `farming, ranching, or silviculture activities'
                          includes agri-tourism, direct-to-consumer
                          marketing of agricultural products, the sale of
                          agricultural equipment owned by the person or
                          legal entity, 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.''.

    [[Page 139 STAT. 93]]

    SEC. 10309. MARKETING LOANS.

        (a) 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''.
        (b) Loan Rates for Nonrecourse Marketing Assistance Loans.--Section
    1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended--
                (1) in subsection (b)--
                        (A) in the subsection heading, by striking ``2023''
                    and inserting ``2025''; and
                        (B) in the matter preceding paragraph (1), by
                    striking ``2023'' and inserting ``2025'';
                (2) by redesignating subsections (c) and (d) as subsections
            (d) and (e), respectively;
                (3) 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.'';
                (4) in subsection (d) (as so redesignated), by striking
            ``(a)(11) and (b)(11)'' and inserting ``(a)(11), (b)(11), and
            (c)(11)''; and

    [[Page 139 STAT. 94]]

                (5) in subsection (e) (as so redesignated), in paragraph
            (1), by striking ``$0.25'' and inserting ``$0.30''.

        (c) Payment of Cotton Storage Costs.--Section 1204(g) of the
    Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended--
                (1) by striking ``Effective'' and inserting the following:
                ``(1) Crop years 2014 through 2025.--Effective'';
                (2) in paragraph (1) (as so designated), by striking
            ``2023'' and inserting ``2025''; and
                (3) by adding at the end the following:
                ``(2) <<NOTE: Time periods.>> 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 storage charge for the current
                    marketing year; and
                        ``(B) in the case of storage in--

                          ``(i) <<NOTE: California. Arizona.>> California or
                          Arizona, a payment rate of $4.90; and
                              ``(ii) any other State, a payment rate of
                          $3.00.''.

        (d) Loan Deficiency Payments.--
                (1) 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''.
                (2) 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''.

        (e) 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''.
        (f) 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''.
    SEC. 10310. 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) <<NOTE: Determinations.>> 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

    [[Page 139 STAT. 95]]

                        ``(ii) in the case of upland cotton, the prevailing
                    world market price for the commodity, as determined and
                    adjusted by the Secretary in accordance with this
                    section.
                ``(2) <<NOTE: Time period.>> 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, as determined and adjusted by the Secretary
            in accordance with this section, during the 30-day period
            following the date on which the producer repays the marketing
            assistance loan and the repayment rate.'';
                (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 inserting
                          ``Upland'' before ``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) <<NOTE: Determinations.>> 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

    [[Page 139 STAT. 96]]

                        ``(B) <<NOTE: Time period. Expiration date.>> may be
                    further adjusted, during the period beginning on the
                    date of enactment of the Act entitled `An Act to provide
                    for reconciliation pursuant to title II of H. Con. Res.
                    14' (119th Congress) 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.''.
    SEC. 10311. 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) <<NOTE: Time period.>> for the period
                    beginning on August 1, 2013, and ending on July 31,
                    2025, 3 cents per pound; and
                        ``(B) <<NOTE: Effective date.>> beginning on August
                    1, 2025, 5 cents per pound.''.
    SEC. 10312. SUGAR PROGRAM UPDATES.

        (a) Loan Rate Modifications.--Section 156 of the Federal Agriculture
    Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (4), by striking ``and'' at the
                    end;
                        (B) in paragraph (5), by striking ``2023 crop
                    years.'' and inserting ``2024 crop years; and''; and
                        (C) 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.'';
                (2) in subsection (b)--
                        (A) in paragraph (1), by striking ``and'' at the
                    end;
                        (B) in paragraph (2), by striking ``2023 crop
                    years.'' and inserting ``2024 crop years; and''; and
                        (C) 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
                (3) in subsection (i), by striking ``2023'' and inserting
            ``2031''.

        (b) 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--
                (1) by striking subsection (a) and inserting the following:

        ``(a) <<NOTE: Time period.>> In General.--For the 2025 crop year and
    each subsequent crop year, the Commodity Credit Corporation shall
    establish rates

    [[Page 139 STAT. 97]]

    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
                (2) in subsection (b)--
                        (A) in the subsection heading, by striking
                    ``Subsequent'' and inserting ``Prior''; and
                        (B) by striking ``and subsequent'' and inserting
                    ``through 2024''.

        (c) Modernizing Beet Sugar Allotments.--
                (1) 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''.
                (2) Allocation to processors.--Section 359c(g)(2) of the
            Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2)) is
            amended--
                        (A) by striking ``In the case'' and inserting the
                    following:
                        ``(A) In general.--Except as provided in
                    subparagraph (B), in the case''; and
                        (B) 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.''.
                (3) Timing of reassignment.--Section 359e(b)(2) of the
            Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2)) is
            amended--
                        (A) by redesignating subparagraphs (A) through (C)
                    as clauses (i) through (iii), respectively, and
                    indenting appropriately;
                        (B) in the matter preceding clause (i) (as so
                    redesignated), by striking ``If the Secretary'' and
                    inserting the following:
                        ``(A) In general.--If the Secretary''; and
                        (C) by adding at the end the following:
                        ``(B) Timing.--In carrying out subparagraph (A), the
                    Secretary shall--
                              ``(i) <<NOTE: Determination.>> make an initial
                          determination based on the World Agricultural
                          Supply and Demand Estimates approved by the World
                          Agricultural Outlook Board for January that shall
                          be applicable to the crop year for which
                          allotments are required; and
                              ``(ii) <<NOTE: Deadline.>> provide for an
                          initial reassignment under subparagraph (A)(i) not
                          later than 30 days after the date on which the
                          World Agricultural Supply and Demand Estimates
                          described in clause (i) is released.''.

        (d) 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--

    [[Page 139 STAT. 98]]

                        ``(A) <<NOTE: Determination.>> 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) <<NOTE: Deadline.>> Subsequent reallocation.--Subject
            to paragraph (3), not later than March 1 of a quota year, the
            Secretary shall reallocate any additional forecasted shortfall
            in the fulfillment of the tariff-rate quotas for raw cane sugar
            established under subsection (a)(1) for that quota year.
                ``(3) Cessation of effectiveness.--Paragraphs (1) and (2)
            shall cease to be in effect if--
                        ``(A) the Agreement Suspending the Countervailing
                    Duty Investigation on Sugar from Mexico, signed December
                    19, 2014, is terminated; and
                        ``(B) no countervailing duty order under subtitle A
                    of title VII of the Tariff Act of 1930 (19 U.S.C. 1671
                    et seq.) is in effect with respect to sugar from Mexico.

        ``(d) Refined Sugar.--
                ``(1) Definition of domestic sugar industry.--In this
            subsection, the term `domestic sugar industry' means domestic--
                        ``(A) sugar beet producers and processors;
                        ``(B) producers and processors of sugar cane; and
                        ``(C) refiners of raw cane sugar.
                ``(2) Study required.--
                        ``(A) <<NOTE: Deadline.>> 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 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

    [[Page 139 STAT. 99]]

                          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) <<NOTE: Notice. Regulations.>> 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.''.

        (e) 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''.
        (f) 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''.
    SEC. 10313. DAIRY POLICY UPDATES.

        (a) Dairy Margin Coverage Production History.--
                (1) 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''.
                (2) Production history of participating dairy operations.--
            Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is
            amended by striking subsections (a) and (b) and inserting the
            following:

        ``(a) <<NOTE: Time periods.>> 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 1 of the 2021, 2022, or
    2023 calendar years.

    [[Page 139 STAT. 100]]

        ``(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) <<NOTE: Estimate.>> 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.''.

        (b) 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'' each place it appears and inserting ``6,000,000''.
        (c) Premiums for Dairy Margins.--
                (1) Tier i.--Section 1407(b) of the Agricultural Act of 2014
            (7 U.S.C. 9057(b)) is amended--
                        (A) in the subsection heading, by striking
                    ``5,000,000'' and inserting ``6,000,000''; and
                        (B) in paragraph (1), by striking ``5,000,000'' and
                    inserting ``6,000,000''.
                (2) Tier ii.--Section 1407(c) of the Agricultural Act of
            2014 (7 U.S.C. 9057(c)) is amended--
                        (A) in the subsection heading, by striking
                    ``5,000,000'' and inserting ``6,000,000''; and
                        (B) in paragraph (1), by striking ``5,000,000'' and
                    inserting ``6,000,000''.
                (3) Premium discounts.--Section 1407(g) of the Agricultural
            Act of 2014 (7 U.S.C. 9057(g)) is amended--
                        (A) 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
                        (B) in paragraph (2), by striking ``2023'' each
                    place it appears and inserting ``2031''.

        (d) Duration.--Section 1409 of the Agricultural Act of 2014 (7
    U.S.C. 9059) is amended by striking ``2025'' and inserting ``2031''.
    SEC. 10314. 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) Further funding.--The Secretary shall make available
            to carry out subtitle C of title I of the Act entitled `An Act
            to provide for reconciliation pursuant to title II of H. Con.
            Res. 14' (119th Congress) and the amendments made by that
            subtitle $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);
                        ``(C) $3,000,000 shall be used for activities
                    described in paragraph (3)(B);
                        ``(D) $9,000,000 shall be used--

    [[Page 139 STAT. 101]]

                              ``(i) <<NOTE: Surveys.>> to 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) <<NOTE: Publication. Time period.>> to
                          publish the results of such surveys biennially;
                          and
                        ``(E) <<NOTE: Study.>> $1,000,000 shall be used to
                    conduct the study under subsection (d) of section 359k
                    of the Agricultural Adjustment Act of 1938 (7 U.S.C.
                    1359kk).''.

    Subtitle D-- <<NOTE: Determinations.>> Disaster Assistance Programs
    SEC. 10401. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

        (a) Livestock Indemnity Payments.--Section 1501(b) of the
    Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended--
                (1) by striking paragraph (2) and inserting the following:
                ``(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
                (2) by adding at the end the following:
                ``(5) Additional payment for unborn livestock.--
                        ``(A) <<NOTE: Effective date.>> 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

    [[Page 139 STAT. 102]]

                              ``(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.''.

        (b) <<NOTE: Time periods. Payments.>> Livestock Forage Disaster
    Program.--Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014
    (7 U.S.C. 9081(c)(3)(D)(ii)(I)) is amended--
                (1) by striking ``1 monthly payment'' and inserting ``2
            monthly payments''; and
                (2) 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) 7 of the previous 8
                                            consecutive''.

        (c) Emergency Assistance for Livestock, Honey Bees, and Farm-raised
    Fish.--
                (1) In general.--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) Definition of farm-raised fish.--In this
                    paragraph, the term `farm-raised fish' means fish
                    propagated and reared in a controlled fresh water
                    environment.
                        ``(B) Payments.--Eligible producers 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.
                        ``(C) 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;

    [[Page 139 STAT. 103]]

                                        ``(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.
                        ``(D) 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.''.
                (2) <<NOTE: 7 USC 9081 note.>> 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.

        (d) Tree Assistance Program.--Section 1501(e) of the Agricultural
    Act of 2014 (7 U.S.C. 9081(e)) is amended--
                (1) in paragraph (2)(B), by striking ``15 percent (adjusted
            for normal mortality)'' and inserting ``normal mortality''; and
                (2) in paragraph (3)--
                        (A) in subparagraph (A)(i), by striking ``15 percent
                    mortality (adjusted for normal mortality)'' and
                    inserting ``normal mortality''; and
                        (B) 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''.

                           Subtitle E--Crop Insurance

    SEC. 10501. BEGINNING FARMER AND RANCHER BENEFIT.

        (a) Definitions.--
                (1) In general.--Section 502(b)(3) of the Federal Crop
            Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking ``5''
            and inserting ``10''.
                (2) 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).

        (b) 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:
                ``(9) Additional support.--
                        ``(A) In general.--In addition to any other
                    provision of this subsection (except paragraph (2)(A))
                    regarding payment of a portion of premiums, a beginning
                    farmer or rancher shall receive additional premium
                    assistance that is the number of percentage points
                    specified in subparagraph (B) greater than the premium
                    assistance that would otherwise be available for the
                    applicable policy, plan of

    [[Page 139 STAT. 104]]

                    insurance, and coverage level selected by the beginning
                    farmer or rancher.
                        ``(B) <<NOTE: Time periods.>> Percentage points
                    adjustments.--The percentage points referred to in
                    subparagraph (A) 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.''.
    SEC. 10502. AREA-BASED CROP INSURANCE COVERAGE AND AFFORDABILITY.

        (a) Coverage Level.--Section 508(c)(4) of the Federal Crop Insurance
    Act (7 U.S.C. 1508(c)(4)) is amended--
                (1) in subparagraph (A), by striking clause (ii) and
            inserting the following:
                              ``(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
                (2) in subparagraph (C)--
                        (A) in clause (ii), by striking ``14'' and inserting
                    ``10''; and
                        (B) in clause (iii)(I), by striking ``86'' and
                    inserting ``90''.

        (b) Premium Subsidy.--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''.
    SEC. 10503. <<NOTE: Effective dates.>> 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) <<NOTE: Payment.>> 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) <<NOTE: Contracts.>> 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.

    [[Page 139 STAT. 105]]

                        ``(C) Definitions.--In this paragraph:
                              ``(i) Eligible contract.--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.
                              ``(ii) Eligible state.--The term `eligible
                          State' means a State 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.
                ``(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 the Specialty Crops Competitiveness Act
                    of 2004 (7 U.S.C. 1621 note; Public Law 108-465) shall
                    be equal to or greater than the percentage 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.--
                    <<NOTE: Reimbursements.>> Subject to subparagraph (B),
                    beginning with the 2026 reinsurance year, and for 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

    [[Page 139 STAT. 106]]

                    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) <<NOTE: Applicability. Contracts. Time
                          period.>> 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 a renegotiation
                          under paragraph (8)(A).''.
    SEC. 10504. 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''.
    SEC. 10505. 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.''.
    SEC. 10506. 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, in the matter preceding subclause (I), by
    striking ``for each fiscal year'' and inserting ``for each of fiscal
    years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each
    fiscal year thereafter''.
    SEC. 10507. 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) <<NOTE: Determination.>> 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

    [[Page 139 STAT. 107]]

            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) <<NOTE: Evaluation.>> 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, 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) <<NOTE: Deadline.>> not later than 2 years
                    after the date of enactment of this subsection.''.

      Subtitle F-- <<NOTE: Time periods.>> Additional Investments in Rural
    America
    SEC. 10601. CONSERVATION.

        (a) In General.--Section 1241(a) of the Food Security Act of 1985
    (16 U.S.C. 3841(a)) is amended--
                (1) 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
                (2) in paragraph (3)--
                        (A) 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
                        (B) 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.''.

        (b) 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--

    [[Page 139 STAT. 108]]

                ``(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.''.

        (c) 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 ``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) <<NOTE: Effective date.>> $1,000,000 beginning
                    in fiscal year 2026, to remain available until
                    expended.''.

        (d) 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 ``2023, and'' and inserting ``2023,''; and
                (2) by inserting ``, and $70,000,000 for the period of
            fiscal years 2025 through 2031'' before the period at the end.

        (e) Watershed Protection and Flood Prevention.--Section 15 of the
    Watershed Protection and Flood Prevention Act (16 U.S.C. 1012a) is
    amended by striking ``$50,000,000 for fiscal year 2019 and each fiscal
    year thereafter'' and inserting ``$150,000,000 for fiscal year 2026 and
    each fiscal year thereafter, to remain available until expended''.
        (f) 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 ``2023 and'' and inserting ``2023,''; and
                (2) by inserting ``, and $105,000,000 for the period of
            fiscal years 2025 through 2031'' before the period at the end.

        (g) Rescission.--The unobligated balances of amounts appropriated by
    section 21001(a) of Public Law 117-169 (136 Stat. 2015) are rescinded.
    SEC. 10602. <<NOTE: 7 USC 5623a.>> SUPPLEMENTAL AGRICULTURAL TRADE
                                PROMOTION PROGRAM.

        (a) In General.--The Secretary of Agriculture shall carry out 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 of Agriculture shall make available to carry out this section
    $285,000,000 for fiscal year 2027 and each fiscal year thereafter.
    SEC. 10603. NUTRITION.

        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''.

    [[Page 139 STAT. 109]]

    SEC. 10604. 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 by adding at the end the following:
                              ``(iv) <<NOTE: Deadline. Transfer.>> Further
                          funding.--Not later than 30 days after the date of
                          enactment of this clause, of the funds of the
                          Commodity Credit Corporation, the Secretary shall
                          transfer to the Foundation to carry out this
                          section $37,000,000, to remain available until
                          expended.''.

        (c) Scholarships for Students at 1890 Institutions.--Section
    1446(b)(1) of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3222a(b)(1)) is amended by adding
    at the end the following:
                        ``(C) Further 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 of the Food, Agriculture, Conservation, and Trade Act of
    1990 (7 U.S.C. 5933) is amended--
                (1) in subsection (c)(2), by inserting ``and subsection
            (d)'' after ``paragraph (1)''; and
                (2) by adding at the end the following:

        ``(d) Mandatory Funding.--Subject to subsection (c)(2), of the funds
    of the Commodity Credit Corporation, the Secretary shall use to carry
    out this section $8,000,000 for fiscal year 2026, to remain available
    until expended.''.
        (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 subsection (c), by striking ``subsection (a)'' and
            inserting ``subsections (a) and (e)''; and
                (2) by adding at the end the following:

        ``(e) Mandatory Funding.--Subject to subsections (b), (c), and (d),
    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 fiscal year 2026 and each fiscal year thereafter.''.
    SEC. 10605. ENERGY.

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

    [[Page 139 STAT. 110]]

    SEC. 10606. HORTICULTURE.

        (a) Plant Pest and Disease Management and Disaster Prevention.--
    Section 420(f) of the Plant Protection Act (7 U.S.C. 7721(f)) 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.--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 ``2024'' and inserting
    ``2031''.
        (f) Multiple Crop and Pesticide Use Survey.--Section 10109(c) of the
    Agriculture Improvement Act of 2018 (Public Law 115-334; 132 Stat. 4907)
    is amended by adding at the end the following:
                ``(3) Further mandatory funding.--Of the funds of the
            Commodity Credit Corporation, the Secretary shall use to carry
            out this section $5,000,000 for fiscal year 2026, to remain
            available until expended.''.
    SEC. 10607. 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--

    [[Page 139 STAT. 111]]

                (1) in subparagraph (B)--
                        (A) in the heading, by striking ``Subsequent fiscal
                    years'' and inserting ``Fiscal years 2023 through
                    2025''; and
                        (B) by striking ``fiscal year 2023 and each fiscal
                    year thereafter'' and inserting ``each of fiscal years
                    2023 through 2025''; and
                (2) by adding at the end the following:
                        ``(C) 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).
                        ``(D) 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 ``2019, and'' and inserting ``2019,''; and
                (2) by inserting ``and $3,000,000 for fiscal year 2026,''
            after ``fiscal year 2024,''

        (c) 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--
                (1) in subsection (b), in the matter preceding paragraph
            (1), by striking ``2024'' and inserting ``2031''; and
                (2) in subsection (h), by striking ``2024''and inserting
            ``2031''.

        (d) 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''.
        (e) 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''.
        (f) 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''.

    [[Page 139 STAT. 112]]

             TITLE II-- <<NOTE: Appropriations authorizations. Time
    periods. Expiration date.>> 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 under the
            Marine Corps;
                (3) $1,000,000,000 for Army, Navy, Air Force, and Space
            Force sustainment, restoration, and modernization 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 Army, Air Force, Navy, Marine
            Corps, and Space Force , notwithstanding section 403 of title
            37, United States Code;
                (6) $50,000,000 for bonuses, special pays, and incentive
            pays for members of the Army, Air Force, Navy, Marine Corps, and
            Space Force 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 Army, Air Force, Navy, Marine Corps, and Space
            Force;
                (8) $100,000,000 for tuition assistance for members of the
            Army, Air Force, Navy, Marine Corps, and Space Force pursuant to
            title 10, United States Code;
                (9) $100,000,000 for child care fee assistance for members
            of the Army, Air Force, Navy, Marine Corps, and Space Force
            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;
                (14) $100,000,000 for the Defense Community Infrastructure
            Program;
                (15) $100,000,000 for Defense Advanced Research Projects
            Agency (DARPA) casualty care research; and
                (16) $62,000,000 for modernization of Department of Defense
            childcare center staffing.

        (b) <<NOTE: 10 USC 2875 note.>>  Temporary Increase in Percentage of
    Value of Authorized Investment in Certain Privatized Military Housing
    Projects.--

    [[Page 139 STAT. 113]]

                (1) <<NOTE: Applicability.>> 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, <<NOTE: 10 USC prec. 2871.>> 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;

    [[Page 139 STAT. 114]]

                (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 advanced procurement for light
            replenishment oiler program;
                (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) $1,470,000,000 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) $2,100,000,000 for development, procurement, and
            integration of purpose-built medium unmanned surface vessels;
                (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;

    [[Page 139 STAT. 115]]

                (35) $250,000,000 for the development, production, and
            integration of wave-powered unmanned underwater vehicles; and
                (36) $150,000,000 for retention of inactive reserve fleet
            ships.
    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) $250,000,000 for development and testing of directed
            energy capabilities by the Under Secretary for Research and
            Engineering;
                (2) $500,000,000 for national security space launch
            infrastructure;
                (3) $2,000,000,000 for air moving target indicator military
            satellites;
                (4) $400,000,000 for expansion of Multi-Service Advanced
            Capability Hypersonic Test Bed program;
                (5) $5,600,000,000 for development of space-based and boost
            phase intercept capabilities;
                (6) $7,200,000,000 for the development, procurement, and
            integration of military space-based sensors; and
                (7) $2,550,000,000 for the development, procurement, and
            integration of military missile defense capabilities.

        (b) Layered Homeland Defense.--In addition to amounts otherwise
    available, there are appropriated to the Secretary of Defense for fiscal
    year 2025, out of any money in the Treasury not otherwise appropriated,
    to remain available until September 30, 2029--
                (1) $2,200,000,000 for acceleration of hypersonic defense
            systems;
                (2) $800,000,000 for accelerated development and deployment
            of next-generation intercontinental ballistic missile defense
            systems;
                (3) $408,000,000 for Army space and strategic missile test
            range infrastructure restoration and modernization in the United
            States Indo-Pacific Command area of operations west of the
            international dateline;
                (4) $1,975,000,000 for improved ground-based missile defense
            radars; and
                (5) $530,000,000 for the design and construction of Missile
            Defense Agency missile instrumentation range safety ship.
    SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
                                MUNITIONS AND DEFENSE SUPPLY CHAIN
                                RESILIENCY.

        (a) Appropriations.--In addition to amounts otherwise available,
    there are appropriated to the Secretary of Defense for fiscal year 2025,
    out of any money in the Treasury not otherwise appropriated, to remain
    available until September 30, 2029--
                (1) $400,000,000 for the development, production, and
            integration of Navy and Air Force long-range anti-ship missiles;
                (2) $380,000,000 for production capacity expansion for Navy
            and Air Force long-range anti-ship missiles;

    [[Page 139 STAT. 116]]

                (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 mass-producible autonomous underwater munitions;
                (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;

    [[Page 139 STAT. 117]]

                (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) $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;
                (33) $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;
                (34) $42,000,000 for investments in second sources for
            large-diameter solid rocket motors for hypersonic missiles;
                (35) $1,000,000,000 for the creation of next-generation
            automated munitions production factories;
                (36) $170,000,000 for the development of advanced radar
            depot for repair, testing, and production of radar and
            electronic warfare systems;
                (37) $25,000,000 for the expansion of the Department of
            Defense industrial base policy analysis workforce;
                (38) $30,300,000 for the repair of Army missiles;
                (39) $100,000,000 for the production of small and medium
            ammunition;
                (40) $2,000,000,000 for additional activities to improve the
            United States stockpile of critical minerals through the
            National Defense Stockpile Transaction Fund, authorized by
            subchapter III of chapter 5 of title 50, United States Code;
                (41) $10,000,000 for the expansion of the Department of
            Defense armaments cooperation workforce;
                (42) $500,000,000 for the expansion of the Defense
            Exportability Features program;
                (43) $350,000,000 for production of Navy long-range air and
            missile defense interceptors;
                (44) $93,000,000 for replacement of Navy long-range air and
            missile defense interceptors;
                (45) $100,000,000 for development of a second solid rocket
            motor source for Navy air defense and anti ship missiles;
                (46) $65,000,000 for expansion of production capacity of
            Missile Defense Agency long-range anti-ballistic missiles;
                (47) $225,000,000 for expansion of production capacity for
            Navy air defense and anti-ship missiles;
                (48) $103,300,000 for expansion of depot level maintenance
            facility for Navy long-range air and missile defense
            interceptors;
                (49) $18,000,000 for creation of domestic source for
            guidance section of Navy short-range air defense missiles;
                (50) $65,000,000 for integration of Army medium-range air
            and missile defense interceptor with Navy ships;
                (51) $176,100,000 for production of Army long-range movable
            missile defense radar;
                (52) $167,000,000 for accelerated fielding of Army short-
            range gun-based air and missile defense system;
                (53) $40,000,000 for development of low-cost alternatives to
            air and missile defense interceptors;
                (54) $50,000,000 for acceleration of Army next-generation
            shoulder-fired air defense system;

    [[Page 139 STAT. 118]]

                (55) $91,000,000 for production of Army next-generation
            shoulder-fired air defense system;
                (56) $500,000,000 for development, production, and
            integration of counter-unmanned aerial systems programs;
                (57) $350,000,000 for development, production, and
            integration of non-kinetic counter-unmanned aerial systems
            programs;
                (58) $250,000,000 for development, production, and
            integration of land-based counter-unmanned aerial systems
            programs;
                (59) $200,000,000 for development, production, and
            integration of ship-based counter-unmanned aerial systems
            programs;
                (60) $400,000,000 for acceleration of hypersonic strike
            programs;
                (61) $167,000,000 for procurement of additional launchers
            for Army medium-range air and missile defense interceptors;
                (62) $500,000,000 for expansion of defense advanced
            manufacturing techniques;
                (63) $1,000,000 for establishment of the Joint Energetics
            Transition Office;
                (64) $200,000,000 for acceleration of Army medium-range air
            and missile defense interceptors;
                (65) $150,000,000 for additive manufacturing for propellant;
                (66) $250,000,000 for expansion and acceleration of
            penetrating munitions production; and
                (67) $50,000,000 for development, procurement, and
            integration of precision extended-range artillery.

        (b) Appropriation.--In addition to amounts otherwise available,
    there is 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, $3,300,000,000 for grants and
    purchase commitments made pursuant to the Industrial Base Fund
    established under section 4817 of title 10, United States Code.
        (c) Appropriation.--In addition to amounts otherwise available,
    there is 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 investments in
    critical minerals supply chains made pursuant to the Industrial Base
    Fund established under section 4817 of title 10, United States Code.
        (d) 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.

    [[Page 139 STAT. 119]]

    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) $1,400,000,000 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) $600,000,000 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) $125,000,000 for the acceleration of development of
            small, portable modular nuclear reactors for military use;
                (16) $1,000,000,000 for the expansion of programs to
            accelerate the procurement and fielding of innovative
            technologies;
                (17) $90,000,000 for the development of reusable hypersonic
            technology for military strikes;
                (18) $2,000,000,000 for the expansion of Defense Innovation
            Unit scaling of commercial technology for military use;
                (19) $500,000,000 to prevent delays in delivery of
            attritable autonomous military capabilities;
                (20) $1,500,000,000 for the development, procurement, and
            integration of low-cost cruise missiles;
                (21) $124,000,000 for improvements to Test Resource
            Management Center artificial intelligence capabilities;

    [[Page 139 STAT. 120]]

                (22) $145,000,000 for the development of artificial
            intelligence to enable one-way attack unmanned aerial systems
            and naval systems;
                (23) $250,000,000 for the development of the Test Resource
            Management Center digital test environment;
                (24) $250,000,000 for the advancement of the artificial
            intelligence ecosystem;
                (25) $250,000,000 for the expansion of Cyber Command
            artificial intelligence lines of effort;
                (26) $250,000,000 for the acceleration of the Quantum
            Benchmarking Initiative;
                (27) $1,000,000,000 for the expansion and acceleration of
            qualification activities and technical data management to
            enhance competition in defense industrial base;
                (28) $400,000,000 for the expansion of the defense
            manufacturing technology program;
                (29) $1,685,000,000 for military cryptographic modernization
            activities;
                (30) $90,000,000 for APEX Accelerators, the Mentor-Protege
            Program, and cybersecurity support to small non-traditional
            contractors;
                (31) $250,000,000 for the development, procurement, and
            integration of Air Force low-cost counter-air capabilities;
                (32) $10,000,000 for additional Air Force wargaming
            activities; and
                (33) $20,000,000 for the Office of Strategic Capital
            workforce.

        (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

    [[Page 139 STAT. 121]]

            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) $187,000,000 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) $678,000,000 to accelerate the Collaborative Combat
            Aircraft program;
                (10) $400,000,000 to accelerate production of the F-47
            aircraft;
                (11) $750,000,000 accelerate the FA/XX aircraft;
                (12) $100,000,000 for production of Advanced Aerial Sensors;
                (13) $160,000,000 to accelerate V-22 nacelle and reliability
            and safety improvements;
                (14) $100,000,000 to accelerate production of MQ-25
            aircraft;
                (15) $270,000,000 for development, procurement, and
            integration of Marine Corps unmanned combat aircraft;
                (16) $96,000,000 for the procurement and integration of
            infrared search and track pods;
                (17) $50,000,000 for the procurement and integration of
            additional F-15EX conformal fuel tanks;
                (18) $600,000,000 for the development, procurement, and
            integration of Air Force long-range strike aircraft; and
                (19) $500,000,000 for the development, procurement, and
            integration of Navy long-range strike 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) $2,500,000,000 for risk reduction activities for the
            Sentinel intercontinental ballistic missile program;
                (2) $4,500,000,000 only for expansion of production capacity
            of B-21 long-range bomber aircraft and the purchase of aircraft
            only available through the expansion of production capacity;
                (3) $500,000,000 for improvements to the Minuteman III
            intercontinental ballistic missile system;

    [[Page 139 STAT. 122]]

                (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, not to be obligated before March 1,
            2026;
                (9) $168,000,000 to accelerate the production of the
            Survivable Airborne Operations Center program;
                (10) $65,000,000 to accelerate the modernization of nuclear
            command, control, and communications;
                (11) $210,300,000 for the increased production of MH-139
            helicopters; and
                (12) $150,000,000 to accelerate the development,
            procurement, and integration of military nuclear weapons
            delivery programs.

        (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) $750,000,000 to accelerate primary capability
            modernization pursuant to section 3211 of the National Nuclear
            Security Administration Act (50 U.S.C. 2401);
                (6) $750,000,000 to accelerate secondary capability
            modernization pursuant to section 3211 of the National Nuclear
            Security Administration Act (50 U.S.C. 2401);
                (7) $120,000,000 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);
                (8) $10,000,000 for National Nuclear Security Administration
            evaluation of spent fuel reprocessing technology; and
                (9) $115,000,000 for accelerating nuclear national security
            missions through artificial intelligence.

    [[Page 139 STAT. 123]]

    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) $115,000,000 for exploration and development of
            existing Arctic 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) $143,000,000 for anti-submarine sonar arrays;
                (16) $30,000,000 for surveillance and reconnaissance
            capabilities for United States Africa Command;
                (17) $30,000,000 for surveillance and reconnaissance
            capabilities for United States Indo-Pacific Command;
                (18) $500,000,000 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) $68,000,000 for Space Force facilities improvements;

    [[Page 139 STAT. 124]]

                (26) $150,000,000 for ground moving target indicator
            military satellites;
                (27) $528,000,000 for DARC and SILENTBARKER military space
            situational awareness programs;
                (28) $80,000,000 for Navy Operational Support Division;
                (29) $1,000,000,000 for the X-37B military spacecraft
            program;
                (30) $3,650,000,000 for the development, procurement, and
            integration of United States military satellites and the
            protection of United States military satellites.
                (31) $125,000,000 for the development, procurement, and
            integration of military space communications.
                (32) $350,000,000 for the development, procurement, and
            integration of military space command and control systems.
    SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
                                IMPROVING THE READINESS 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) $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) $1,640,000,000 for Special Operations Command equipment,
            readiness, and operations;
                (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;
                (17) $98,000,000 for additional Army light rotary-wing
            capabilities;
                (18) $1,500,000,000 for increased depot maintenance and
            shipyard maintenance activities;

    [[Page 139 STAT. 125]]

                (19) $2,500,000,000 for Air Force facilities sustainment,
            restoration, and modernization;
                (20) $92,500,000 for the completion of Robotic Combat
            Vehicle prototyping;
                (21) $125,000,000 for Army operations;
                (22) $10,000,000 for the Air Force Concepts, Development,
            and Management Office; and
                (23) $320,000,000 for Joint Special Operations Command.
    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, $1,000,000,000 for the deployment of military
    personnel in support of border operations, operations and maintenance
    activities in support of border operations, counter-narcotics and
    counter-transnational criminal organization mission support, the
    operation of national defense areas and construction in national defense
    areas, and the temporary detention of migrants on Department of Defense
    installations, in accordance with chapter 15 of title 10, United States
    Code.
    SEC. 20012. DEPARTMENT OF DEFENSE OVERSIGHT.

        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 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; and
                (3) programs particularly vulnerable to supply chain
            disruptions and long lead time components.
    SEC. 20013. MILITARY CONSTRUCTION PROJECTS AUTHORIZED.

        (a) Authorization of Appropriations.--Funds are hereby authorized to
    be appropriated for military construction, land acquisition, and
    military family housing functions of each military department (as
    defined in section 101(a) of title 10, United States Code) as specified
    in this title.
        (b) <<NOTE: Deadline.>> 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.

    [[Page 139 STAT. 126]]

     TITLE III-- <<NOTE: Time periods.>> COMMITTEE ON BANKING, HOUSING, AND
    URBAN AFFAIRS
    SEC. 30001. FUNDING CAP FOR THE BUREAU OF CONSUMER FINANCIAL
                                PROTECTION.

        Section 1017(a)(2)(A)(iii) of the Consumer Financial Protection Act
    of 2010 (12 U.S.C. 5497(a)(2)(A)(iii)) is amended by striking ``12'' and
    inserting ``6.5''.
    SEC. 30002. RESCISSION OF FUNDS FOR GREEN AND RESILIENT RETROFIT
                                PROGRAM FOR MULTIFAMILY HOUSING.

        The unobligated balances of amounts made available under section
    30002(a) of the Act entitled ``An Act to provide for reconciliation
    pursuant to title II of S. Con. Res. 14'', approved August 16, 2022
    (Public Law 117-169; 136 Stat. 2027) are rescinded.
    SEC. 30003. SECURITIES AND EXCHANGE COMMISSION RESERVE FUND.

        (a) In General.--Section 4 of the Securities Exchange Act of 1934
    (15 U.S.C. 78d) is amended--
                (1) by striking subsection (i); and
                (2) by redesignating subsections (j) and (k) as subsections
            (i) and (j), respectively.

        (b) Technical and Conforming Amendment.--Section 21F(g)(2) of the
    Securities Exchange Act of 1934 (15 U.S.C. 78u-6(g)(2)) is amended to
    read as follows:
        ``(a) Use of Fund.--The Fund shall be available to the Commission,
    without further appropriation or fiscal year limitation, for paying
    awards to whistleblowers as provided in subsection (b).''.
        (c) <<NOTE: Effective date. 15 USC 78d note.>> Transition
    Provision.--During the period beginning on the date of enactment of this
    Act and ending on October 1, 2025, the Securities and Exchange
    Commission may expend amounts in the Securities and Exchange Commission
    Reserve Fund that were obligated before the date of enactment of this
    Act for any program, project, or activity that is ongoing (as of the day
    before the date of enactment of this Act) in accordance with subsection
    (i) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d),
    as in effect on the day before the date of enactment of this Act.

        (d) <<NOTE: Effective date.>> Transfer of Remaining Amounts.--
    Effective on October 1, 2025, the obligated and unobligated balances of
    amounts in the Securities and Exchange Commission Reserve Fund shall be
    transferred to the general fund of the Treasury.

        (e) Closing of Account.--For the purposes of section 1555 of title
    31, United States Code, the Securities and Exchange Commission Reserve
    Fund shall be considered closed, and thereafter shall not be available
    for obligation or expenditure for any purpose, upon execution of the
    transfer required under subsection (d).
    SEC. 30004. <<NOTE: Expiration date.>> APPROPRIATIONS FOR DEFENSE
                                PRODUCTION ACT.

        In addition to amounts otherwise available, there is appropriated
    for fiscal year 2025, out of amounts not otherwise appropriated,
    $1,000,000,000, to remain available until September 30, 2027, to carry
    out the Defense Production Act (50 U.S.C. 4501 et seq.).

    [[Page 139 STAT. 127]]

          TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

    SEC. 40001. COAST GUARD MISSION READINESS.

        (a) In General.--Chapter 11 of title 14, <<NOTE: 14 USC prec.
    1181.>> United States Code, is amended by adding at the end the
    following:

                  ``Subchapter V--Coast Guard Mission Readiness

    ``Sec. 1181. <<NOTE: 14 USC 1181.>> Special appropriations

        ``In <<NOTE: Time period. Expiration date.>> addition to amounts
    otherwise available, there is appropriated to the Coast Guard for fiscal
    year 2025, out of any money in the Treasury not otherwise appropriated,
    $24,593,500,000, to remain available until September 30, 2029,
    notwithstanding paragraphs (1) and (2) of section 1105(a) and sections
    1131, 1132, 1133, and 1156, to use expedited processes to procure or
    acquire new operational assets and systems, to maintain existing assets
    and systems, to design, construct, plan, engineer, and improve necessary
    shore infrastructure, and to enhance operational resilience for
    monitoring, search and rescue, interdiction, hardening of maritime
    approaches, and navigational safety, of which--
                ``(1) $1,142,500,000 is provided for procurement and
            acquisition of fixed-wing aircraft, equipment related to such
            aircraft and training simulators and program management for such
            aircraft, to provide for security of the maritime border;
                ``(2) $2,283,000,000 is provided for procurement and
            acquisition of rotary-wing aircraft, equipment related to such
            aircraft and training simulators and program management for such
            aircraft, to provide for security of the maritime border;
                ``(3) $266,000,000 is provided for procurement and
            acquisition of long-range unmanned aircraft and base stations,
            equipment related to such aircraft and base stations, and
            program management for such aircraft and base stations, to
            provide for security of the maritime border;
                ``(4) $4,300,000,000 is provided for procurement of Offshore
            Patrol Cutters, equipment related to such cutters, and program
            management for such cutters, to provide operational presence and
            security of the maritime border and for interdiction of persons
            and controlled substances;
                ``(5) $1,000,000,000 is provided for procurement of Fast
            Response Cutters, equipment related to such cutters, and program
            management for such cutters, to provide operational presence and
            security of the maritime border and for interdiction of persons
            and controlled substances;
                ``(6) $4,300,000,000 is provided for procurement of Polar
            Security Cutters, equipment related to such cutters, and program
            management for such cutters, to ensure timely presence of the
            Coast Guard in the Arctic and Antarctic regions;
                ``(7) $3,500,000,000 is provided for procurement of Arctic
            Security Cutters, equipment related to such cutters, and program
            management for such cutters, to ensure timely presence of the
            Coast Guard in the Arctic and Antarctic regions;
                ``(8) $816,000,000 is provided for procurement of light and
            medium icebreaking cutters, and equipment relating to such
            cutters, from shipyards that have demonstrated success in the

    [[Page 139 STAT. 128]]

            cost-effective application of design standards and in
            delivering, on schedule and within budget, vessels of a size and
            tonnage that are not less than the size and tonnage of the
            cutters described in this paragraph, and for program management
            for such cutters, to expand domestic icebreaking capacity;
                ``(9) $162,000,000 is provided for procurement of Waterways
            Commerce Cutters, equipment related to such cutters, and program
            management for such cutters, to support aids to navigation,
            waterways and coastal security, and search and rescue in inland
            waterways;
                ``(10) $4,379,000,000 is provided for design, planning,
            engineering, recapitalization, construction, rebuilding, and
            improvement of, and program management for, shore facilities, of
            which--
                        ``(A) $425,000,000 is provided for design, planning,
                    engineering, construction of, and program management
                    for--
                              ``(i) the enlisted boot camp barracks and
                          multi-use training center; and
                              ``(ii) other related facilities at the
                          enlisted boot camp;
                        ``(B) $500,000,000 is provided for--
                              ``(i) construction, improvement, and dredging
                          at the Coast Guard Yard; and
                              ``(ii) acquisition of a floating drydock for
                          the Coast Guard Yard;
                        ``(C) not more than $2,729,500,000 is provided for
                    homeports and hangars for cutters and aircraft for which
                    funds are appropriated under paragraph (1) through (9);
                    and
                        ``(D) $300,000,000 is provided for homeporting of
                    the existing polar icebreaker commissioned into service
                    in 2025;
                ``(11) $2,200,000,000 is provided for aviation, cutter, and
            shore facility depot maintenance and maintenance of command,
            control, communication, computer, and cyber assets;
                ``(12) $170,000,000 is provided for improving maritime
            domain awareness on the maritime border, at United States ports,
            at land-based facilities and in the cyber domain; and
                ``(13) $75,000,000 is provided to contract the services of,
            acquire, or procure autonomous maritime systems.''.

        (b) Technical and Conforming Amendment.--The analysis for chapter 11
    of title 14, United <<NOTE: 14 USC prec. 1101.>> States Code, is amended
    by adding at the end the following:

                  ``subchapter v--coast guard mission readiness

    ``1181. Special appropriations.''.

    SEC. 40002. <<NOTE: Deadlines. 47 USC 309 note.>> SPECTRUM
                                AUCTIONS.

        (a) 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.--The term ``covered band''--
                        (A) except as provided in subparagraph (B), means
                    the band of frequencies between 1.3 gigahertz and 10.5
                    gigahertz; and

    [[Page 139 STAT. 129]]

                        (B) does not include--
                              (i) the band of frequencies between 3.1
                          gigahertz and 3.45 gigahertz for purposes of
                          auction, reallocation, modification, or
                          withdrawal; or
                              (ii) the band of frequencies between 7.4
                          gigahertz and 8.4 gigahertz for purposes of
                          auction, reallocation, modification, or
                          withdrawal.
                (4) Full-power commercial licensed use cases.--The term
            ``full-power commercial licensed use cases'' means flexible use
            wireless broadband services with base station power levels
            sufficient for high-power, high-density, and wide-area
            commercial mobile services, consistent with the service rules
            under part 27 of title 47, Code of Federal Regulations, or any
            successor regulations, for wireless broadband deployments
            throughout the covered band.

        (b) General Auction Authority.--
                (1) <<NOTE: Expiration date.>> Amendment.--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 the following: "complete a system of
            competitive bidding under this subsection shall expire September
            30, 2034, except that, with respect to the electromagnetic
            spectrum-- ``
                        ``(A) between the frequencies of 3.1 gigahertz and
                    3.45 gigahertz, such authority shall not apply; and
                        ``(B) between the frequencies of 7.4 gigahertz and
                    8.4 gigahertz, such authority shall not apply.''.
                (2) Spectrum auctions.--The Commission shall grant licenses
            through systems of competitive bidding, before the expiration of
            the general auction authority of the Commission under section
            309(j)(11) of the Communications Act of 1934 (47 U.S.C.
            309(j)(11)), as amended by paragraph (1) of this subsection, for
            not less than 300 megahertz, including by completing a system of
            competitive bidding not later than 2 years after the date of
            enactment of this Act for not less than 100 megahertz in the
            band between 3.98 gigahertz and 4.2 gigahertz.

        (c) Identification for Reallocation.--
                (1) In general.--The Assistant Secretary, in consultation
            with the Commission, shall identify 500 megahertz of frequencies
            in the covered band for reallocation to non-Federal use, shared
            Federal and non-Federal use, or a combination thereof, for full-
            power commercial licensed use cases, that--
                        (A) as of the date of enactment of this Act, are
                    allocated for Federal use; and
                        (B) shall be in addition to the 300 megahertz of
                    frequencies for which the Commission grants licenses
                    under subsection (b)(2).
                (2) Schedule.--The Assistant Secretary shall identify the
            frequencies under paragraph (1) according to the following
            schedule:
                        (A) Not later than 2 years after the date of
                    enactment of this Act, the Assistant Secretary shall
                    identify not less than 200 megahertz of frequencies
                    within the covered band.
                        (B) Not later than 4 years after the date of
                    enactment of this Act, the Assistant Secretary shall
                    identify any

    [[Page 139 STAT. 130]]

                    remaining bandwidth required to be identified under
                    paragraph (1).
                (3) Required analysis.--
                        (A) <<NOTE: Determination.>> In general.--In
                    determining under paragraph (1) which specific
                    frequencies within the covered band to reallocate, the
                    Assistant Secretary shall determine the feasibility of
                    the reallocation of frequencies.
                        (B) <<NOTE: Assessment.>> Requirements.--In
                    conducting the analysis under subparagraph (A), the
                    Assistant Secretary shall assess net revenue potential,
                    relocation or sharing costs, as applicable, and the
                    feasibility of reallocating specific frequencies, with
                    the goal of identifying the best approach to maximize
                    net proceeds of systems of competitive bidding for the
                    Treasury, consistent with section 309(j) of the
                    Communications Act of 1934 (47 U.S.C. 309(j)).

        (d) <<NOTE: Notifications.>> Auctions.--The Commission shall grant
    licenses for the frequencies identified for reallocation under
    subsection (c) through systems of competitive bidding in accordance with
    the following schedule:
                (1) Not later than 4 years after the date of enactment of
            this Act, the Commission shall, after notifying the Assistant
            Secretary, complete 1 or more systems of competitive bidding for
            not less than 200 megahertz of the frequencies.
                (2) <<NOTE: Compliance.>> Not later than 8 years after the
            date of enactment of this Act, the Commission shall, after
            notifying the Assistant Secretary, complete 1 or more systems of
            competitive bidding for any frequencies identified under
            subsection (c) that remain to be auctioned after compliance with
            paragraph (1) of this subsection.

        (e) <<NOTE: President. Determination.>> Limitation.--The President
    shall modify or withdraw any frequency proposed for reallocation under
    this section not later than 60 days before the commencement of a system
    of competitive bidding scheduled by the Commission with respect to that
    frequency, if the President determines that such modification or
    withdrawal is necessary to protect the national security of the United
    States.

        (f) <<NOTE: Time period. Expiration date.>> Appropriation.--In
    addition to amounts otherwise available, there is appropriated to the
    Department of Commerce for fiscal year 2025, out of any money in the
    Treasury not otherwise appropriated, $50,000,000, to remain available
    through September 30, 2034, to provide additional support to the
    Assistant Secretary to--
                (1) <<NOTE: Analysis.>> conduct a timely spectrum analysis
            of the bands of frequencies--
                        (A) between 2.7 gigahertz and 2.9 gigahertz;
                        (B) between 4.4 gigahertz and 4.9 gigahertz; and
                        (C) between 7.25 gigahertz and 7.4 gigahertz; and
                (2) <<NOTE: Publication. Reports. Assessments.>> publish a
            biennial report, with the last report to be published not later
            than June 30, 2034, on the value of all spectrum used by Federal
            entities (as defined in section 113(l) of the National
            Telecommunications and Information Administration Organization
            Act (47 U.S.C. 923(l))), that assesses the value of bands of
            frequencies in increments of not more than 100 megahertz.

    [[Page 139 STAT. 131]]

    SEC. 40003. <<NOTE: Time periods.>> AIR TRAFFIC CONTROL
                                IMPROVEMENTS.

        (a) <<NOTE: Appropriation authorization. Expiration date.>> In
    General.--For the purpose of the acquisition, construction, sustainment,
    and improvement of facilities and equipment necessary to improve or
    maintain aviation safety, 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) $4,750,000,000 for telecommunications infrastructure
            modernization and systems upgrades;
                (2) $3,000,000,000 for radar systems replacement;
                (3) $500,000,000 for runway safety technologies, runway
            lighting systems, airport surface surveillance technologies, and
            to carry out section 347 of the FAA Reauthorization Act of 2024;
                (4) $300,000,000 for Enterprise Information Display Systems;
                (5) $80,000,000 to acquire and install not less than 50
            Automated Weather Observing Systems, to acquire and install not
            less than 60 Visual Weather Observing Systems, to acquire and
            install not less than 64 weather camera sites, and to acquire
            and install weather stations;
                (6) $40,000,000 to carry out section 44745 of title 49,
            United States Code, (except for activities described in
            paragraph (5));
                (7) $1,900,000,000 for necessary actions to construct a new
            air route traffic control center (in this subsection referred to
            as ``ARTCC''):  Provided, That not more than 2 percent of such
            amount is used for planning or administrative purposes:
            Provided further, That at least 3 existing ARTCCs are divested
            and integrated into the newly constructed ARTCC;
                (8) $100,000,000 to conduct an ARTCC Realignment and
            Consolidation Effort under which at least 10 existing ARTCCs are
            closed or consolidated to facilitate recapitalization of ARTCC
            facilities owned and operated by the Federal Aviation
            Administration;
                (9) $1,000,000,000 to support recapitalization and
            consolidation of terminal radar approach control facilities (in
            this subsection referred to as ``TRACONs''), the analysis and
            identification of TRACONs for divestment, consolidation, or
            integration, planning, site selection, facility acquisition, and
            transition activities and other appropriate activities for
            carrying out such divestment, consolidation, or integration, and
            the establishment of brand new TRACONs;
                (10) $350,000,000 for unstaffed infrastructure sustainment
            and replacement;
                (11) $50,000,000 to carry out section 961 of the FAA
            Reauthorization Act of 2024;
                (12) $300,000,000 to carry out section 619 of the FAA
            Reauthorization Act of 2024;
                (13) $50,000,000 to carry out section 621 of the FAA
            Reauthorization Act of 2024 and to deploy remote tower
            technology at untowered airports; and
                (14) $100,000,000 for air traffic controller 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
    of the Federal Aviation Administration shall submit

    [[Page 139 STAT. 132]]

    to Congress a report that describes any expenditures under this section.
    SEC. 40004. SPACE LAUNCH AND REENTRY LICENSING AND PERMITTING USER
                                FEES.

        (a) In General.--Chapter 509 of title 51, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 50924. Space <<NOTE: 51 USC 50924.>> launch and reentry
                        licensing and permitting user fees

        ``(a) <<NOTE: Time periods.>> Fees.--
                ``(1) In general.--The Secretary of Transportation shall
            impose a fee, which shall be deposited in the account
            established under subsection (b), on each launch or reentry
            carried out under a license or permit issued under section 50904
            during 2026 or a subsequent year, in an amount equal to the
            lesser of--
                        ``(A) the amount specified in paragraph (2) for the
                    year involved per pound of the weight of the payload; or
                        ``(B) the amount specified in paragraph (3) for the
                    year involved.
                ``(2) Paragraph (2) specified amount.--The amount specified
            in this paragraph is--
                        ``(A) for 2026, $0.25;
                        ``(B) for 2027, $0.35;
                        ``(C) for 2028, $0.50;
                        ``(D) for 2029, $0.60;
                        ``(E) for 2030, $0.75;
                        ``(F) for 2031, $1;
                        ``(G) for 2032, $1.25;
                        ``(H) for 2033, $1.50; and
                        ``(I) for 2034 and each subsequent year, the amount
                    specified in this paragraph for the previous year
                    increased by the percentage increase in the consumer
                    price index for all urban consumers (all items; United
                    States city average) over the previous year.
                ``(3) Paragraph (3) specified amount.--The amount specified
            in this paragraph is--
                        ``(A) for 2026, $30,000;
                        ``(B) for 2027, $40,000;
                        ``(C) for 2028, $50,000;
                        ``(D) for 2029, $75,000;
                        ``(E) for 2030, $100,000;
                        ``(F) for 2031, $125,000;
                        ``(G) for 2032, $170,000;
                        ``(H) for 2033, $200,000; and
                        ``(I) for 2034 and each subsequent year, the amount
                    specified in this paragraph for the previous year
                    increased by the percentage increase in the consumer
                    price index for all urban consumers (all items; United
                    States city average) over the previous year.

        ``(b) Office of Commercial Space Transportation Launch and Reentry
    Licensing and Permitting Fund.--There is established in the Treasury of
    the United States a separate account, which shall be known as the
    `Office of Commercial Space Transportation Launch and Reentry Licensing
    and Permitting Fund', for

    [[Page 139 STAT. 133]]

    the purposes of expenses of the Office of Commercial Space
    Transportation of the Federal Aviation Administration and to carry out
    section 630(b) of the FAA Reauthorization Act of 2024. 70 percent of the
    amounts deposited into the fund shall be available for such purposes and
    shall be available without further appropriation and without fiscal year
    limitation.''.
        (b) Clerical Amendment.--The table of sections for chapter 509 of
    title 51, United States Code, <<NOTE: 51 USC prec. 50901.>> is amended
    by inserting after the item relating to section 50923 the following:

    ``50924. Space launch and reentry licensing and permitting user fees.''.

    SEC. 40005. MARS MISSIONS, ARTEMIS MISSIONS, AND MOON TO MARS
                                PROGRAM.

        (a) In General.--Chapter 203 of title 51, United States Code, is
    amended by adding at the end the following:
    ``Sec. 20306. <<NOTE: Deadlines. 51 USC 20306.>> Special
                        appropriations for Mars missions, Artemis
                        missions, and Moon to Mars program

        ``(a) <<NOTE: Time periods. Expiration date.>> In General.--In
    addition to amounts otherwise available, there is appropriated to the
    Administration for fiscal year 2025, out of any money in the Treasury
    not otherwise appropriated, $9,995,000,000, to remain available until
    September 30, 2032, to use as follows:
                ``(1) $700,000,000, to be obligated not later than fiscal
            year 2026, for the procurement, using a competitively bid, firm
            fixed-price contract with a United States commercial provider
            (as defined in section 50101(7)), of a high-performance Mars
            telecommunications orbiter--
                        ``(A) that--
                              ``(i) is capable of providing robust,
                          continuous communications for--
                                        ``(I) a Mars sample return mission,
                                    as described in section 432(3)(C) of the
                                    National Aeronautics and Space
                                    Administration Transition Authorization
                                    Act of 2017 (51 U.S.C. 20302 note;
                                    Public Law 115-10); and
                                        ``(II) future Mars surface, orbital,
                                    and human exploration missions;
                              ``(ii) supports autonomous operations, onboard
                          processing, and extended mission duration
                          capabilities; and
                              ``(iii) is selected from among the commercial
                          proposals that--
                                        ``(I) received funding from the
                                    Administration in fiscal year 2024 or
                                    2025 for commercial design studies for
                                    Mars Sample Return; and
                                        ``(II) proposed a separate,
                                    independently launched Mars
                                    telecommunication orbiter supporting an
                                    end-to-end Mars sample return mission;
                                    and
                        ``(B) which shall be delivered to the Administration
                    not later than December 31, 2028.
                ``(2) $2,600,000,000 to meet the requirements of section
            20302(a) using the program of record known, as of the date of
            the enactment of this section, as `Gateway', and as described in
            section 10811(b)(2)(B)(iv) of the National Aeronautics and Space
            Administration Authorization Act of 2022 (51 U.S.C.

    [[Page 139 STAT. 134]]

            20302 note; Public Law 117-167), of which not less than
            $750,000,000 shall be obligated for each of fiscal years 2026,
            2027, and 2028.
                ``(3) $4,100,000,000 for expenses related to meeting the
            requirements of section 10812 of the National Aeronautics and
            Space Administration Authorization Act of 2022 (51 U.S.C. 20301;
            Public Law 117-167) for the procurement, transportation,
            integration, operation, and other necessary expenses of the
            Space Launch System for Artemis Missions IV and V, of which not
            less than $1,025,000,000 shall be obligated for each of fiscal
            years 2026, 2027, 2028, and 2029.
                ``(4) $20,000,000 for expenses related to the continued
            procurement of the multi-purpose crew vehicle described in
            section 303 of the National Aeronautics and Space Administration
            Authorization Act of 2010 (42 U.S.C. 18323), known as the
            `Orion', for use with the Space Launch System on the Artemis IV
            Mission and reuse in subsequent Artemis Missions, of which not
            less than $20,000,000 shall be obligated not later than fiscal
            year 2026.
                ``(5) $1,250,000,000 for expenses related to the operation
            of the International Space Station and for the purpose of
            meeting the requirement under section 503(a) of the National
            Aeronautics and Space Administration Authorization Act of 2010
            (42 U.S.C. 18353(a)), of which not less than $250,000,000 shall
            be obligated for such expenses for each of fiscal years 2025,
            2026, 2027, 2028, and 2029.
                ``(6) <<NOTE: State listing.>> $1,000,000,000 for
            infrastructure improvements at the manned spaceflight centers of
            the Administration, of which not less than--
                        ``(A) $120,000,000 shall be obligated not later than
                    fiscal year 2026 for construction, revitalization,
                    recapitalization, or other infrastructure projects and
                    improvements at the center described in Executive Order
                    12641 (53 Fed. Reg. 18816; relating to designating
                    certain facilities of the National Aeronautics and Space
                    Administration in the State of Mississippi as the John
                    C. Stennis Space Center);
                        ``(B) $250,000,000 shall be obligated not later than
                    fiscal year 2026 for construction, revitalization,
                    recapitalization, or other infrastructure projects and
                    improvements at the center described in Executive Order
                    11129 (28 Fed. Reg. 12787; relating to designating
                    certain facilities of the National Aeronautics and Space
                    Administration and of the Department of Defense, in the
                    State of Florida, as the John F. Kennedy Space Center);
                        ``(C) $300,000,000 shall be obligated not later than
                    fiscal year 2026 for construction, revitalization,
                    recapitalization, or other infrastructure projects and
                    improvements at the center described in the Joint
                    Resolution entitled `Joint Resolution to designate the
                    Manned Spacecraft Center in Houston, Texas, as the
                    ``Lyndon B. Johnson Space Center'' in honor of the late
                    President', approved February 17, 1973 (Public Law 93-8;
                    87 Stat. 7);
                        ``(D) $100,000,000 shall be obligated not later than
                    fiscal year 2026 for construction, revitalization,
                    recapitalization, or other infrastructure projects and
                    improvements at the center described in Executive Order
                    10870 (25 Fed. Reg. 2197; relating to designating the
                    facilities of the

    [[Page 139 STAT. 135]]

                    National Aeronautics and Space Administration at
                    Huntsville, Alabama, as the George C. Marshall Space
                    Flight Center);
                        ``(E) $30,000,000 shall be obligated not later than
                    fiscal year 2026 for construction, revitalization,
                    recapitalization, or other infrastructure projects and
                    improvements at the Michoud Assembly Facility in New
                    Orleans, Louisiana; and
                        ``(F) <<NOTE: Transfer.>> $85,000,000 shall be
                    obligated to carry out subsection (b), of which not less
                    than $5,000,000 shall be obligated for the
                    transportation of the space vehicle described in that
                    subsection, with the remainder transferred not later
                    than the date that is 18 months after the date of the
                    enactment of this section to the entity designated under
                    that subsection, for the purpose of construction of a
                    facility to house the space vehicle referred to in that
                    subsection.
                ``(7) $325,000,000 to fulfill contract number 80JSC024CA002
            issued by the National Aeronautics and Space Administration on
            June 26, 2024.

        ``(b) Space Vehicle Transfer.--
                ``(1) In general.--Not later than 30 days after the date of
            the enactment of this section, the Administrator shall identify
            a space vehicle described in paragraph (2) to be--
                        ``(A) transferred to a field center of the
                    Administration that is involved in the administration of
                    the Commercial Crew Program (as described in section 302
                    of the National Aeronautics and Space Administration
                    Transition Authorization Act of 2017 (51 U.S.C. 50111
                    note; Public Law 115-10)); and
                        ``(B) placed on public exhibition at an entity
                    within the Metropolitan Statistical Area where such
                    center is located.
                ``(2) Space vehicle described.--A space vehicle described in
            this paragraph is a vessel that--
                        ``(A) has flown into space;
                        ``(B) has carried astronauts; and
                        ``(C) is selected with the concurrence of an entity
                    designated by the Administrator.
                ``(3) Transfer.--Not later than 18 months after the date of
            the enactment of this section, the space vehicle identified
            under paragraph (1) shall be transferred to an entity designated
            by the Administrator.

        ``(c) Obligation of Funds.--Funds appropriated under subsection (a)
    shall be obligated as follows:
                ``(1) Not less than 50 percent of the total funds in
            subsection (a) shall be obligated not later than September 30,
            2028.
                ``(2) 100 percent of funds shall be obligated not later than
            September 30, 2029.
                ``(3) All associated outlays shall occur not later than
            September 30, 2034.''.

    [[Page 139 STAT. 136]]

        (b) Clerical Amendment.--The table of sections for chapter 203 of
    title 51, United States Code, <<NOTE: 51 USC prec. 20301.>> is amended
    by adding at the end the following:

    ``20306. Special appropriations for Mars missions, Artemis missions, and
               Moon to Mars program.''.

    SEC. 40006. CORPORATE AVERAGE FUEL ECONOMY CIVIL PENALTIES.

        (a) In General.--Section 32912 of title 49, United States Code, is
    amended--
                (1) in subsection (b), in the matter preceding paragraph
            (1), by striking ``$5'' and inserting ``$0.00''; and
                (2) in subsection (c)(1)(B), by striking ``$10'' and
            inserting ``$0.00''.

        (b) <<NOTE: 49 USC 32912 note.>> Effect; Applicability.--The
    amendments made by subsection (a) shall--
                (1) take effect on the date of enactment of this section;
            and
                (2) apply to all model years of a manufacturer for which the
            Secretary of Transportation has not provided a notification
            pursuant to section 32903(b)(2)(B) of title 49, United States
            Code, specifying the penalty due for the average fuel economy of
            that manufacturer being less than the applicable standard
            prescribed under section 32902 of that title.
    SEC. 40007. PAYMENTS FOR LEASE OF METROPOLITAN WASHINGTON
                                AIRPORTS.

        Section 49104(b) of title 49, United States Code, is amended to read
    as follows:
        ``(b) <<NOTE: Time periods.>> Payments.--
                ``(1) In general.--Subject to paragraph (2), under the
            lease, the Airports Authority must pay to the general fund of
            the Treasury annually an amount, computed using the GNP Price
            Deflator--
                        ``(A) during the period from 1987 to 2026, equal to
                    $3,000,000 in 1987 dollars; and
                        ``(B) for 2027 and subsequent years, equal to
                    $15,000,000 in 2027 dollars.
                ``(2) Renegotiation.--The Secretary and the Airports
            Authority shall renegotiate the level of lease payments at least
            once every 10 years to ensure that in no year the amount
            specified in paragraph (1)(B) is less than $15,000,000 in 2027
            dollars.''.
    SEC. 40008. RESCISSION OF CERTAIN AMOUNTS FOR THE NATIONAL OCEANIC
                                AND ATMOSPHERIC ADMINISTRATION.

        Any unobligated balances of amounts appropriated or otherwise made
    available by sections 40001, 40002, 40003, and 40004 of Public Law 117-
    169 (136 Stat. 2028) are hereby rescinded.
    SEC. 40009. REDUCTION IN ANNUAL TRANSFERS TO TRAVEL PROMOTION
                                FUND.

        Subsection (d)(2)(B) of the Travel Promotion Act of 2009 (22 U.S.C.
    2131(d)(2)(B)) is amended by striking ``$100,000,000'' and inserting
    ``$20,000,000''.

    [[Page 139 STAT. 137]]

    SEC. 40010. <<NOTE: Rescission.>> TREATMENT OF UNOBLIGATED FUNDS
                                FOR ALTERNATIVE FUEL AND LOW-EMISSION
                                AVIATION TECHNOLOGY.

        Out of the amounts made available by section 40007(a) of title IV of
    Public Law 117-169 (49 U.S.C. 44504 note), any unobligated balances of
    such amounts are hereby rescinded.
    SEC. 40011. RESCISSION OF AMOUNTS APPROPRIATED TO PUBLIC WIRELESS
                                SUPPLY CHAIN INNOVATION FUND.

        Of the unobligated balances of amounts made available under section
    106(a) of the CHIPS Act of 2022 (Public Law 117-167; 136 Stat. 1392),
    $850,000,000 are permanently rescinded.

               TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

                         Subtitle A--Oil and Gas Leasing

    SEC. 50101. ONSHORE OIL AND GAS LEASING.

        (a) <<NOTE: 30 USC 188 and note.>> Repeal of Inflation Reduction Act
    Provisions.--
                (1) Onshore oil and gas royalty rates.--Subsection (a) of
            section 50262 of Public Law 117-169 <<NOTE: 30 USC 226.>> (136
            Stat. 2056) is repealed, and any provision of law amended or
            repealed by that subsection is restored or revived as if that
            subsection had not been enacted into law.
                (2) Noncompetitive leasing.--Subsection (e) of section 50262
            of Public Law 117-169 <<NOTE: 30 USC 226.>> (136 Stat. 2057) is
            repealed, and any provision of law amended or repealed by that
            subsection is restored or revived as if that subsection had not
            been enacted into law.

        (b) <<NOTE: Compliance.>> Requirement to Immediately Resume Onshore
    Oil and Gas Lease Sales.--
                (1) <<NOTE: Time period. 30 USC 226 note.>> In general.--The
            Secretary of the Interior shall immediately resume quarterly
            onshore oil and gas lease sales in compliance with the Mineral
            Leasing Act (30 U.S.C. 181 et seq.).
                (2) Requirement.--The Secretary of the Interior shall
            ensure--
                        (A) that any oil and gas lease sale required under
                    paragraph (1) is conducted immediately on completion of
                    all applicable scoping, public comment, and
                    environmental analysis requirements under the Mineral
                    Leasing Act (30 U.S.C. 181 et seq.) and the National
                    Environmental Policy Act of 1969 (42 U.S.C. 4321 et
                    seq.); and
                        (B) that the processes described in subparagraph (A)
                    are conducted in a timely manner to ensure compliance
                    with subsection (b)(1).
                (3) <<NOTE: Definition.>> Lease of oil and gas lands.--
            Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C.
            226(b)(1)(A)), as amended by subsection (a), is amended by
            inserting ``For purposes of the previous sentence, the term
            `eligible lands' means all lands that are subject to leasing
            under this Act and are not excluded from leasing by a statutory
            prohibition, and the term `available', with respect to eligible
            lands, means those lands that have been designated as open for
            leasing under a land use plan developed under section 202 of the
            Federal Land Policy and

    [[Page 139 STAT. 138]]

            Management Act of 1976 (43 U.S.C. 1712) and that have been
            nominated for leasing through the submission of an expression of
            interest, are subject to drainage in the absence of leasing, or
            are otherwise designated as available pursuant to regulations
            adopted by the Secretary.'' after ``sales are necessary.''.

        (c) <<NOTE: 30 USC 226 note.>> Quarterly Lease Sales.--
                (1) <<NOTE: State listing.>> In general.--In accordance with
            the Mineral Leasing Act (30 U.S.C. 181 et seq.), each fiscal
            year, the Secretary of the Interior shall conduct a minimum of 4
            oil and gas lease sales of available land 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.
                (2) Requirement.--In conducting a lease sale under paragraph
            (1) in a State described in that paragraph, the Secretary of the
            Interior--
                        (A) shall offer not less than 50 percent of
                    available parcels nominated for oil and gas development
                    under the applicable resource management plan in effect
                    for relevant Bureau of Land Management resource
                    management areas within the applicable State; and
                        (B) shall not restrict the parcels offered to 1
                    Bureau of Land Management field office within the
                    applicable State unless all nominated parcels are
                    located within the same Bureau of Land Management field
                    office.
                (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.

        (d) Mineral Leasing Act Reforms.--Section 17 of the Mineral Leasing
    Act (30 U.S.C. 226), as amended by subsection (a), 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 PARCELS.

        ``(a) Leasing Authorized.--
                ``(1) <<NOTE: Deadline. Determination.>> In general.--Any
            parcel of land subject to disposition under this Act that is
            known or believed to contain oil or gas deposits shall be made
            available for leasing, subject to paragraph (2), by the
            Secretary of the Interior, not later than 18 months after the
            date of receipt by the Secretary of an expression of interest in
            leasing the applicable parcel of land available for disposition
            under this section, if the Secretary determines that the parcel
            of land is open to oil or gas leasing under the approved
            resource management plan applicable to

    [[Page 139 STAT. 139]]

            the planning area in which the parcel of land is located that is
            in effect on the date on which the expression of interest was
            submitted to the Secretary (referred to in this subsection as
            the `approved resource management plan').
                ``(2) Resource management plans.--
                        ``(A) Lease terms and conditions.--A lease issued by
                    the Secretary under this section with respect to an
                    applicable parcel of land made available for leasing
                    under paragraph (1)--
                              ``(i) shall be subject to the terms and
                          conditions of the approved resource management
                          plan; and
                              ``(ii) may not require any stipulations or
                          mitigation requirements not included in the
                          approved resource management plan.
                        ``(B) Effect of amendment.--The initiation of an
                    amendment to an approved resource management plan shall
                    not prevent or delay the Secretary from making the
                    applicable parcel of land available for leasing in
                    accordance with that approved resource management plan
                    if the other requirements of this section have been met,
                    as determined by the Secretary.'';
                (2) in subsection (p), by adding at the end the following:
                ``(4) <<NOTE: Effective date.>> Term.--A permit to drill
            approved under this subsection shall be valid for a single, non-
            renewable 4-year period beginning on the date that the permit to
            drill is approved.''; and
                (3) by striking subsection (q) and inserting the following:

        ``(q) <<NOTE: Approval.>> Commingling of Production.--The Secretary
    of the Interior shall approve applications allowing for the commingling
    of production from 2 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 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.''.
    SEC. 50102. OFFSHORE OIL AND GAS LEASING.

        (a) <<NOTE: 43 USC 1331 note.>> Lease Sales.--
                (1) Gulf of america region.--
                        (A) In general.--Notwithstanding the 2024-2029
                    National Outer Continental Shelf Oil and Gas Leasing
                    Program (and any successor leasing program that does not
                    satisfy the requirements of this section), in addition
                    to lease sales which may be held under that program, and
                    except within areas subject to existing oil and gas

    [[Page 139 STAT. 140]]

                    leasing moratoria, the Secretary of the Interior shall
                    conduct a minimum of 30 region-wide oil and gas lease
                    sales, in a manner consistent with the schedule
                    described in subparagraph (B), in the region identified
                    in the map depicting lease terms and economic conditions
                    accompanying the final notice of sale of the Bureau of
                    Ocean Energy Management entitled ``Gulf of Mexico Outer
                    Continental Shelf Region-Wide Oil and Gas Lease Sale
                    254'' (85 Fed. Reg. 8010 (February 12, 2020)).
                        (B) <<NOTE: Deadlines. Time periods.>> Timing
                    requirement.--Of the not fewer than 30 region-wide lease
                    sales required under this paragraph, the Secretary of
                    the Interior shall--
                              (i) hold not fewer than 1 lease sale in the
                          region described in subparagraph (A) by December
                          15, 2025;
                              (ii) hold not fewer than 2 lease sales in that
                          region in each of calendar years 2026 through
                          2039, 1 of which shall be held by March 15 of the
                          applicable calendar year and 1 of which shall be
                          held after March 15 but not later than August 15
                          of the applicable calendar year; and
                              (iii) hold not fewer than 1 lease sale in that
                          region in calendar year 2040, which shall be held
                          by March 15, 2040.
                (2) Alaska region.--
                        (A) In general.--The Secretary of the Interior shall
                    conduct a minimum of 6 offshore lease sales, in a manner
                    consistent with the schedule described in subparagraph
                    (B), in the Cook Inlet Planning Area as identified in
                    the 2017-2022 Outer Continental Shelf Oil and Gas
                    Leasing Proposed Final Program published on November 18,
                    2016, by the Bureau of Ocean Energy Management (as
                    announced in the notice of availability of the Bureau of
                    Ocean Energy Management entitled ``Notice of
                    Availability of the 2017-2022 Outer Continental Shelf
                    Oil and Gas Leasing Proposed Final Program'' (81 Fed.
                    Reg. 84612 (November 23, 2016))).
                        (B) <<NOTE: Deadlines.>> Timing requirement.--Of the
                    not fewer than 6 lease sales required under this
                    paragraph, the Secretary of the Interior shall hold not
                    fewer than 1 lease sale in the area described in
                    subparagraph (A) in each of calendar years 2026 through
                    2028, and in each of calendar years 2030 through 2032,
                    by March 15 of the applicable calendar year.

        (b) Requirements.--
                (1) Terms and stipulations for gulf of america sales.--In
            conducting lease sales under subsection (a)(1), the Secretary of
            the Interior--
                        (A) shall, subject to subparagraph (C), offer the
                    same lease form, lease terms, economic conditions, and
                    lease stipulations 4 through 9 as contained in the final
                    notice of sale of the Bureau of Ocean Energy Management
                    entitled ``Gulf of Mexico Outer Continental Shelf
                    Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg.
                    8010 (February 12, 2020));
                        (B) <<NOTE: Update.>> may update lease stipulations
                    1 through 3 and 10 described in that final notice of
                    sale to reflect current conditions for lease sales
                    conducted under subsection (a)(1);

    [[Page 139 STAT. 141]]

                        (C) shall set the royalty rate at not less than
                    12\1/2\ percent but not greater than 16\2/3\ percent;
                    and
                        (D) shall, for a lease in water depths of 800 meters
                    or deeper issued as a result of a sale, set the primary
                    term for 10 years.
                (2) Terms and stipulations for alaska region sales.--
                        (A) In general.--In conducting lease sales under
                    subsection (a)(2), the Secretary of the Interior shall
                    offer the same lease form, lease terms, economic
                    conditions, and stipulations as contained in the final
                    notice of sale of the Bureau of Ocean Energy Management
                    entitled ``Cook Inlet Planning Area Outer Continental
                    Shelf Oil and Gas Lease Sale 244'' (82 Fed. Reg. 23291
                    (May 22, 2017)).
                        (B) <<NOTE: Effective date.>> Revenue sharing.--
                    Notwithstanding section 8(g) and section 9 of the Outer
                    Continental Shelf Lands Act (43 U.S.C. 1337(g), 1338),
                    and beginning in fiscal year 2034, of the bonuses,
                    rents, royalties, and other revenues derived from lease
                    sales conducted under subsection (a)(2)--
                              (i) 70 percent shall be paid to the State of
                          Alaska; and
                              (ii) 30 percent shall be deposited in the
                          Treasury and credited to miscellaneous receipts.
                (3) Area offered for lease.--
                        (A) Gulf of america region.--For each offshore lease
                    sale conducted under subsection (a)(1), the Secretary of
                    the Interior shall--
                              (i) offer not fewer than 80,000,000 acres; or
                              (ii) if there are fewer than 80,000,000 acres
                          that are unleased and available, offer all
                          unleased and available acres.
                        (B) Alaska region.--For each offshore lease sale
                    conducted under subsection (a)(2), the Secretary of the
                    Interior shall--
                              (i) offer not fewer than 1,000,000 acres; or
                              (ii) if there are fewer than 1,000,000 acres
                          that are unleased and available, offer all
                          unleased and available acres.

        (c) <<NOTE: Approval. Determination.>> Offshore Commingling.--The
    Secretary of the Interior shall approve a request of an operator to
    commingle oil or gas production from multiple reservoirs within a single
    wellbore completed on the outer Continental Shelf in the Gulf of America
    Region unless the Secretary of the Interior determines that conclusive
    evidence establishes that the commingling--
                (1) could not be conducted by the operator in a safe manner;
            or
                (2) would result in an ultimate recovery from the applicable
            reservoirs to be reduced in comparison to the expected recovery
            of those reservoirs if they had not been commingled.

        (d) Offshore Oil and Gas Royalty Rate.--
                (1) <<NOTE: 43 USC 1337 and note.>> Repeal.--Section 50261
            of Public Law 117-169 (136 Stat. 2056) is repealed, and any
            provision of law amended or repealed by that section is restored
            or revived as if that section had not been enacted into law.
                (2) Royalty rate.--Section 8(a)(1) of the Outer Continental
            Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph
            (1)) is amended--

    [[Page 139 STAT. 142]]

                        (A) in subparagraph (A), by striking ``not less than
                    12\1/2\ per centum'' and inserting ``not less than 12\1/
                    2\ percent, but not more than 16\2/3\ percent,'';
                        (B) in subparagraph (C), by striking ``not less than
                    12\1/2\ per centum'' and inserting ``not less than 12\1/
                    2\ percent, but not more than 16\2/3\ percent,'';
                        (C) in subparagraph (F), by striking ``no less than
                    12\1/2\ per centum'' and inserting ``not less than 12\1/
                    2\ percent, but not more than 16\2/3\ percent,''; and
                        (D) in subparagraph (H), by striking ``no less than
                    12 and \1/2\ per centum'' and inserting ``not less than
                    12\1/2\ percent, but not more than 16\2/3\ percent,''.

        (e) 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; Public Law 109-432) 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.''.
    SEC. 50103. <<NOTE: Repeal.>> ROYALTIES ON EXTRACTED METHANE.

        Section 50263 of Public Law 117-169 (30 U.S.C. 1727) is repealed.
    SEC. 50104. <<NOTE: 16 USC 3143 note.>> ALASKA 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, acting through the Bureau of Land Management.

        (b) Lease Sales Required.--
                (1) <<NOTE: Deadline.>> In general.--Subject to paragraph
            (3), 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 enactment of this Act.
                (2) Terms and conditions.--In conducting lease sales under
            paragraph (1), the Secretary shall offer the same terms and
            conditions as contained in 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)).
                (3) Sale acreages; schedule.--
                        (A) Acreages.--In conducting the lease sales
                    required under paragraph (1), the Secretary shall offer
                    for lease under the oil and gas program--

    [[Page 139 STAT. 143]]

                              (i) not fewer than 400,000 acres area-wide in
                          each lease sale; and
                              (ii) those areas that have the highest
                          potential for the discovery of hydrocarbons.
                        (B) <<NOTE: Deadlines.>> Schedule.--The Secretary
                    shall offer--
                              (i) the initial lease sale under paragraph (1)
                          not later than 1 year after the date of enactment
                          of this Act;
                              (ii) a second lease sale under paragraph (1)
                          not later than 3 years after the date of enactment
                          of this Act;
                              (iii) a third lease sale under paragraph (1)
                          not later than 5 years after the date of enactment
                          of this Act; and
                              (iv) a fourth lease sale under paragraph (1)
                          not later than 7 years after the date of enactment
                          of this Act.
                (4) <<NOTE: Applicability.>> Rights-of-way.--Section
            20001(c)(2) of Public Law 115-97 (16 U.S.C. 3143 note) shall
            apply to leases awarded under this subsection.
                (5) <<NOTE: Applicability.>> Surface development.--Section
            20001(c)(3) of Public Law 115-97 (16 U.S.C. 3143 note) shall
            apply to leases awarded under this subsection.

        (c) <<NOTE: Time periods.>> 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. 3143 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 each of fiscal years 2025 through 2033, 50
            percent shall be paid to the State of Alaska; and
                (B) for fiscal year 2034 and each fiscal year thereafter, 70
            percent shall be paid to the State of Alaska; and
                (2) the balance shall be deposited into the Treasury as
            miscellaneous receipts.
    SEC. 50105. NATIONAL PETROLEUM RESERVE-ALASKA.

        (a) <<NOTE: 42 USC 6506a note.>> Definitions.--In this section:
                (1) NPR-A final environmental impact statement.--The term
            ``NPR-A final environmental impact statement'' means the final
            environmental impact statement published by the Bureau of Land
            Management entitled ``National Petroleum Reserve in Alaska
            Integrated Activity Plan Final Environmental Impact Statement''
            and dated June 2020, including the errata sheet dated October 6,
            2020, and excluding the errata sheet dated September 20, 2022.
                (2) NPR-A record of decision.--The term ``NPR-A record of
            decision'' means the record of decision published by the Bureau
            of Land Management entitled ``National Petroleum Reserve in
            Alaska Integrated Activity Plan Record of Decision'' and dated
            December 2020.
                (3) Program.--The term ``Program'' means the competitive oil
            and gas leasing, exploration, development, and production
            program established under section 107 of the Naval Petroleum
            Reserves Production Act of 1976 (42 U.S.C. 6506a).
                (4) Secretary.--The term ``Secretary'' means the Secretary
            of the Interior.

    [[Page 139 STAT. 144]]

        (b) Restoration of NPR-A Oil and Gas Leasing Program.--Effective
    beginning <<NOTE: Effective date.>> on the date of enactment of this
    Act, the Secretary shall expeditiously restore and resume oil and gas
    lease sales under the Program for domestic energy production and Federal
    revenue in the areas designated for oil and gas leasing as described in
    the NPR-A final environmental impact statement and the NPR-A record of
    decision.

        (c) <<NOTE: Deadlines.>> Resumption of NPR-A Lease Sales.--
                (1) In general.--Subject to paragraph (2), the Secretary
            shall conduct not fewer than 5 lease sales under the Program by
            not later than 10 years after the date of enactment of this Act.
                (2) Sales acreages; schedule.--
                        (A) Acreages.--In conducting the lease sales
                    required under paragraph (1), the Secretary shall offer
                    not fewer than 4,000,000 acres in each lease sale.
                        (B) Schedule.--The Secretary shall offer--
                              (i) an initial lease sale under paragraph (1)
                          not later than 1 year after the date of enactment
                          of this Act; and
                              (ii) an additional lease sale under paragraph
                          (1) not later than every 2 years after the date of
                          enactment of this Act.

        (d) Terms and Stipulations for NPR-A Lease Sales.--In conducting
    lease sales under subsection (c), the Secretary shall offer the same
    lease form, lease terms, economic conditions, and stipulations as
    described in the NPR-A final environmental impact statement and the NPR-
    A record of decision.
        (e) 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 2034 and thereafter.--
            Beginning <<NOTE: Effective date.>> in fiscal year 2034, of the
            receipts from sales, rentals, bonuses, and royalties on leases
            issued pursuant to this section after the date of enactment of
            the Act entitled `An Act to provide for reconciliation pursuant
            to title II of H. Con. Res. 14' (119th Congress)--
                        ``(A) 70 percent shall be paid to the State of
                    Alaska; and
                        ``(B) 30 percent shall be paid into the Treasury of
                    the United States.''.

                               Subtitle B--Mining

    SEC. 50201. COAL LEASING.

        (a) 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 the
            terms of a coal lease).

    [[Page 139 STAT. 145]]

                (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 (30 U.S.C. 181 et seq.) for which any required environmental
            review has commenced or the Director of the Bureau of Land
            Management determines can commence within 90 days after
            receiving the application.

        (b) <<NOTE: Deadline.>> Coal Leasing Activities.--Not later than 90
    days after the date of enactment of this Act, the Secretary of the
    Interior--
                (1) shall--
                        (A) with respect to each qualified application--
                              (i) <<NOTE: Publication.>> if not previously
                          published for public comment, publish any required
                          environmental review;
                              (ii) establish the fair market value of the
                          applicable coal tract;
                              (iii) hold a lease sale with respect to the
                          applicable coal tract; and
                              (iv) identify the highest bidder at or above
                          the fair market value and take all other
                          intermediate actions necessary to identify the
                          winning bidder and grant the qualified
                          application; and
                (2) may--
                        (A) with respect to a previously issued coal lease,
                    grant any additional approvals of the Department of the
                    Interior required for mining activities to commence; and
                        (B) after completing the actions required by clauses
                    (i) through (iv) of paragraph (1)(A), grant the
                    qualified application and issue the applicable lease to
                    the person that submitted the qualified application if
                    that person submitted the winning bid in the lease sale
                    held under clause (iii) of paragraph (1)(A).
    SEC. 50202. COAL ROYALTY.

        (a) Rate.-- <<NOTE: Time period.>> Section 7(a) of the Mineral
    Leasing Act (30 U.S.C. 207(a)) is amended, in the fourth sentence, 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 the Act entitled `An Act to provide
    for reconciliation pursuant to title II of H. Con. Res. 14' (119th
    Congress) and ends September 30, 2034,''.

        (b) <<NOTE: 30 USC 207 note.>> Applicability to Existing Leases.--
    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 Act; and
                (2) that has not been terminated.

        (c) <<NOTE: 30 USC 207 note.>> Advance Royalties.--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 Act and the amount the lessee would have been required
    to pay if the amendment made by subsection

    [[Page 139 STAT. 146]]

    (a) had been made before the lessee paid advance royalties for the
    lease.
    SEC. 50203. <<NOTE: 30 USC 201 note.>> LEASES FOR KNOWN
                                RECOVERABLE COAL RESOURCES.

        Notwithstanding <<NOTE: Deadline.>> 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 located in the 48 contiguous States and Alaska subject
    to the jurisdiction of the Secretary, 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; or
                (9) a unit of the National Park System.
    SEC. 50204. <<NOTE: 30 USC 201 note.>> AUTHORIZATION TO MINE
                                FEDERAL COAL.

        (a) Authorization.--In order to provide access to coal reserves in
    adjacent State or private land that without an authorization could not
    be mined economically, Federal coal reserves located in Federal land
    subject to a mining plan previously approved by the Secretary of the
    Interior as of the date of enactment of this Act and adjacent to coal
    reserves in adjacent State or private land are authorized to be mined.
        (b) <<NOTE: Deadline.>> Requirement.--Not later than 90 days after
    the date of enactment of this Act, the Secretary of the Interior shall,
    without substantial modification, take such steps as are necessary to
    authorize the mining of Federal land described in subsection (a).

        (c) NEPA.--Nothing in this section shall prevent a review under the
    National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

                                Subtitle C--Lands

    SEC. 50301. <<NOTE: Time periods.>> TIMBER SALES AND LONG-TERM
                                CONTRACTING FOR THE FOREST SERVICE AND
                                THE BUREAU OF LAND MANAGEMENT.

        (a) <<NOTE: 16 USC 472a note.>> Forest Service.--
                (1) Definitions.--In this subsection:
                        (A) Forest plan.--The term ``forest plan'' means a
                    land and resource management plan prepared by the
                    Secretary 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).
                        (B) National forest system.--
                              (i) In general.--The term ``National Forest
                          System'' means land of the National Forest System
                          (as defined in section 11(a) of the Forest and
                          Rangeland

    [[Page 139 STAT. 147]]

                          Renewable Resources Planning Act of 1974 (16
                          U.S.C. 1609(a))) administered by the Secretary.
                              (ii) Exclusions.--The term ``National Forest
                          System'' does not include any forest reserve not
                          created from the public domain.
                        (C) Secretary.--The term ``Secretary'' means the
                    Secretary of Agriculture, acting through the Chief of
                    the Forest Service.
                (2) Timber sales on public domain forest reserves.--
                        (A) In general.--For each of fiscal years 2026
                    through 2034, the Secretary shall sell timber annually
                    on National Forest System land in a total quantity that
                    is not less than 250,000,000 board-feet greater than the
                    quantity of board-feet sold in the previous fiscal year.
                        (B) Limitation.--The timber sales under subparagraph
                    (A) shall be subject to the maximum allowable sale
                    quantity of timber or the projected timber sale quantity
                    under the applicable forest plan in effect on the date
                    of enactment of this Act.
                (3) Long-term contracting for the forest service.--
                        (A) Long-term contracting.--For the period of fiscal
                    years 2025 through 2034, the Secretary shall enter into
                    not fewer than 40 long-term timber sale contracts with
                    private persons or other public or private entities
                    under subsection (a) of section 14 of the National
                    Forest Management Act of 1976 (16 U.S.C. 472a) for the
                    sale of national forest materials (as defined in
                    subsection (e)(1) of that section) in the National
                    Forest System.
                        (B) Contract length.--The period of a timber sale
                    contract entered into to meet the requirement under
                    subparagraph (A) shall be not less than 20 years, with
                    options for extensions or renewals, as determined by the
                    Secretary.
                        (C) Receipts.--Any monies derived from a timber sale
                    contract entered into to meet the requirements under
                    subparagraphs (A) and (B) shall be deposited in the
                    general fund of the Treasury.

        (b) <<NOTE: 43 USC 1701 note.>> Bureau of Land Management.--
                (1) Definitions.--In this subsection:
                        (A) Public lands.--The term ``public lands'' has the
                    meaning given the term in section 103 of the Federal
                    Land Policy and Management Act of 1976 (43 U.S.C. 1702).
                        (B) Resource management plan.--The term ``resource
                    management plan'' means a land use plan prepared for
                    public lands under section 202 of the Federal Land
                    Policy and Management Act of 1976 (43 U.S.C. 1712).
                        (C) Secretary.--The term ``Secretary'' means the
                    Secretary of the Interior, acting through the Director
                    of the Bureau of Land Management.
                (2) Timber sales on public lands.--
                        (A) In general.--For each of fiscal years 2026
                    through 2034, the Secretary shall sell timber annually
                    on public lands in a total quantity that is not less
                    than 20,000,000 board-feet greater than the quantity of
                    board-feet sold in the previous fiscal year.

    [[Page 139 STAT. 148]]

                        (B) Limitation.--The timber sales under subparagraph
                    (A) shall be subject to the applicable resource
                    management plan in effect on the date of enactment of
                    this Act.
                (3) Long-term contracting for the bureau of land
            management.--
                        (A) Long-term contracting.--For the period of fiscal
                    years 2025 through 2034, the Secretary shall enter into
                    not fewer than 5 long-term contracts with private
                    persons or other public or private entities under
                    section 1 of the Act of July 31, 1947 (commonly known as
                    the ``Materials Act of 1947'') (61 Stat. 681, chapter
                    406; 30 U.S.C. 601), for the disposal of vegetative
                    materials described in that section on public lands.
                        (B) Contract length.--The period of a contract
                    entered into to meet the requirement under subparagraph
                    (A) shall be not less than 20 years, with options for
                    extensions or renewals, as determined by the Secretary.
                        (C) Receipts.--Any monies derived from a contract
                    entered into to meet the requirements under
                    subparagraphs (A) and (B) shall be deposited in the
                    general fund of the Treasury.
    SEC. 50302. <<NOTE: 43 USC 3007.>> RENEWABLE ENERGY FEES ON
                                FEDERAL LAND.

        (a) 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 a solar energy generation
                    facility; and
                        (B) an amount determined by the Secretary, but not
                    less than 10 percent for a wind energy generation
                    facility.
                (3) National forest system.--
                        (A) In general.--The term ``National Forest System''
                    means land of the National Forest System (as defined in
                    section 11(a) of the Forest and Rangeland Renewable
                    Resources Planning Act of 1974 (16 U.S.C. 1609(a)))
                    administered by the Secretary of Agriculture.
                        (B) Exclusion.--The term ``National Forest System''
                    does not include any forest reserve not created from the
                    public domain.
                (4) Per-acre rate.--The term ``Per-Acre Rate'', with respect
            to a right-of-way, means the average of the 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.
                (5) Project.--The term ``project'' means a system described
            in section 2801.9(a)(4) of title 43, Code of Federal Regulations
            (as in effect on the date of enactment of this Act).
                (6) Public land.--The term ``public land'' means--
                        (A) public lands (as defined in section 103 of the
                    Federal Land Policy and Management Act of 1976 (43
                    U.S.C. 1702)); and
                        (B) National Forest System land.

    [[Page 139 STAT. 149]]

                (7) Renewable energy project.--The term ``renewable energy
            project'' means a project located on public land that uses wind
            or solar energy to generate energy.
                (8) Right-of-way.--The term ``right-of-way'' has the meaning
            given the term in section 103 of the Federal Land Policy and
            Management Act of 1976 (43 U.S.C. 1702).
                (9) Secretary.--The term ``Secretary'' means--
                        (A) the Secretary of the Interior, with respect to
                    land controlled or administered by the Secretary of the
                    Interior; and
                        (B) the Secretary of Agriculture, with respect to
                    National Forest System land.

        (b) Acreage Rent for Wind and Solar Rights-of-way.--
                (1) <<NOTE: Deadlines.>> In general.--Pursuant to 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 determined by 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 <dbl-dagger> B
                    <dbl-dagger> ((1 + C)\D\)).
                        (B) Definitions.--For purposes of the equation
                    described in 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.

        (c) Capacity Fees.--
                (1) In general.--The Secretary shall, subject to paragraph
            (3), 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 (b); and
                        (B) 3.9 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 multiple-use reduction factor of 10-
                    percent to the amount of a capacity fee determined under
                    paragraph (2) by submitting to the Secretary an
                    application at such time, in such manner, and containing
                    such information as the Secretary may require.

    [[Page 139 STAT. 150]]

                        (B) Approval.--The Secretary may approve an
                    application submitted under subparagraph (A) only 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.--
                              (i) <<NOTE: Applicability. Effective
                          date. Time periods.>> In general.--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 described in
                          subparagraph (A) to the capacity fee for the first
                          year beginning after the date of approval and each
                          year thereafter for the period during which the
                          right-of-way remains in effect.
                              (ii) Refund.--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.

        (d) <<NOTE: Deadlines.>> 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 (b) or the capacity fee under subsection (c) 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 (b) or the capacity fee under subsection (c) by the
            date that is 90 days after the date on which the payment was
            due.
    SEC. 50303. <<NOTE: 43 USC 3008.>> RENEWABLE ENERGY REVENUE
                                SHARING.

        (a) Definitions.--In this section:
                (1) County.--The term ``county'' includes a parish,
            township, borough, and any other similar, independent unit of
            local government.
                (2) Covered land.--The term ``covered land'' means land that
            is--
                        (A) public land 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.
                (3) National forest system.--
                        (A) In general.--The term ``National Forest System''
                    means land of the National Forest System (as defined in
                    section 11(a) of the Forest and Rangeland Renewable
                    Resources Planning Act of 1974 (16 U.S.C. 1609(a)))
                    administered by the Secretary of Agriculture.
                        (B) Exclusion.--The term ``National Forest System''
                    does not include any forest reserve not created from the
                    public domain.
                (4) Public land.--The term ``public land'' means--

    [[Page 139 STAT. 151]]

                        (A) public lands (as defined in section 103 of the
                    Federal Land Policy and Management Act of 1976 (43
                    U.S.C. 1702)); and
                        (B) National Forest System land.
                (5) 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 in effect on the date
            of enactment of this Act), located on covered land that uses
            wind or solar energy to generate energy.
                (6) Secretary.--The term ``Secretary'' means--
                        (A) the Secretary of the Interior, with respect to
                    land controlled or administered by the Secretary of the
                    Interior; and
                        (B) the Secretary of Agriculture, with respect to
                    National Forest System land.

        (b) Disposition of Revenue.--
                (1) <<NOTE: Effective date.>> 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--
                        (A) be deposited in the general fund of the
                    Treasury; and
                        (B) <<NOTE: Allocations.>> without further
                    appropriation or fiscal year limitation, be 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 in
                          a State within the boundaries of which the revenue
                          is derived, to be allocated among each applicable
                          county based on the percentage of county land from
                          which the revenue is derived.
                (2) Payments to states and counties.--
                        (A) In general.--Amounts paid to States and counties
                    under paragraph (1) shall be used in accordance with the
                    requirements of 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 in the fiscal year that immediately
                    follows the fiscal year for which the amounts were
                    collected.
    SEC. 50304. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU OF LAND
                                MANAGEMENT FUNDS.

        There are rescinded the unobligated balances of amounts made
    available by the following sections of Public Law 117-169 (commonly
    known as the ``Inflation Reduction Act of 2022'') (136 Stat. 1818):
                (1) Section 50221 (136 Stat. 2052).
                (2) Section 50222 (136 Stat. 2052).
                (3) Section 50223 (136 Stat. 2052).

    [[Page 139 STAT. 152]]

    SEC. 50305. <<NOTE: Appropriation authorization. Time
                                period. Expiration date.>> CELEBRATING
                                AMERICA'S 250TH ANNIVERSARY.

        In addition to amounts otherwise available, there is appropriated to
    the Secretary of the Interior (acting through the Director of the
    National Park Service) for fiscal year 2025, out of any money in the
    Treasury not otherwise appropriated, $150,000,000 for events,
    celebrations, and activities surrounding the observance and
    commemoration of the 250th anniversary of the founding of the United
    States, to remain available through fiscal year 2028.

                               Subtitle D--Energy

    SEC. 50401. STRATEGIC PETROLEUM RESERVE.

        (a) Energy Policy and Conservation Act Definitions.--In this
    section, the terms ``related facility'', ``storage facility'', and
    ``Strategic Petroleum Reserve'' have the meanings given those terms in
    section 152 of the Energy Policy and Conservation Act (42 U.S.C. 6232).
        (b) <<NOTE: Time period. Expiration date.>> 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 of the Strategic
            Petroleum Reserve; and
                (2) $171,000,000 to acquire, by purchase, petroleum products
            for storage in the Strategic Petroleum Reserve.

        (c) Repeal of Strategic Petroleum Reserve Drawdown and Sale
    Mandate.--Section 20003 of Public Law 115-97 (42 U.S.C. 6241 note) is
    repealed.
    SEC. 50402. REPEALS; RESCISSIONS.

        (a) Repeal and Rescission.--Section 50142 of Public Law 117-169 (136
    Stat. 2044) (commonly known as the ``Inflation Reduction Act of 2022'')
    is repealed and the unobligated balance of amounts made available under
    that section (as in effect on the day before the date of enactment of
    this Act) is rescinded.
        (b) Rescissions.--
                (1) In general.--The unobligated balances of amounts made
            available under the sections described in paragraph (2) are
            rescinded.
                (2) Sections described.--The sections referred to in
            paragraph (1) are the following sections of Public Law 117-169
            (commonly known as the ``Inflation Reduction Act of 2022''):
                        (A) Section 50123 (42 U.S.C. 18795b).
                        (B) Section 50141 (136 Stat. 2042).
                        (C) Section 50144 (136 Stat. 2044).
                        (D) Section 50145 (136 Stat. 2045).
                        (E) Section 50151 (42 U.S.C. 18715).
                        (F) Section 50152 (42 U.S.C. 18715a).
                        (G) Section 50153 (42 U.S.C. 18715b).
                        (H) Section 50161 (42 U.S.C. 17113b).
    SEC. 50403. ENERGY DOMINANCE FINANCING.

        (a) In General.--Section 1706 of the Energy Policy Act of 2005 (42
    U.S.C. 16517) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by striking ``or'' at the end;

    [[Page 139 STAT. 153]]

                        (B) in paragraph (2), by striking ``avoid'' and all
                    that follows through the period at the end and inserting
                    ``increase capacity or output; or''; and
                        (C) by adding at the end the following:
                ``(3) support or enable the provision of known or
            forecastable electric supply at time intervals necessary to
            maintain or enhance grid reliability or other system adequacy
            needs.'';
                (2) by striking subsection (c);
                (3) by redesignating subsections (d) through (f) as
            subsections (c) through (e), respectively;
                (4) in subsection (c) (as so redesignated)--
                        (A) in paragraph (1), by adding ``and'' at the end;
                        (B) by striking paragraph (2); and
                        (C) by redesignating paragraph (3) as paragraph (2);
                (5) in subsection (e) (as so redesignated), by striking
            ``for--'' in the matter preceding paragraph (1) and all that
            follows through the period at the end of paragraph (2) and
            inserting ``for enabling the identification, leasing,
            development, production, processing, transportation,
            transmission, refining, and generation needed for energy and
            critical minerals.''; and
                (6) by adding at the end the following:

        ``(f) Funding.--
                ``(1) <<NOTE: Time period. Expiration date.>> In general.--
            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,
            $1,000,000,000, to remain available through September 30, 2028,
            to carry out activities under this section.
                ``(2) Administrative costs.--Of the amount made available
            under paragraph (1), the Secretary shall use not more than 3
            percent for administrative expenses.''.

        (b) Commitment Authority.--Section 50144(b) of Public Law 117-169
    (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat.
    2045) is amended by striking ``2026'' and inserting ``2028''.
    SEC. 50404. <<NOTE: 15 USC 9461 note.>> TRANSFORMATIONAL
                                ARTIFICIAL INTELLIGENCE MODELS.

        (a) Definitions.--In this section:
                (1) American science cloud.--The term ``American science
            cloud'' means a system of United States government, academic,
            and private sector programs and infrastructures utilizing cloud
            computing technologies to facilitate and support scientific
            research, data sharing, and computational analysis across
            various disciplines while ensuring compliance with applicable
            legal, regulatory, and privacy standards.
                (2) Artificial intelligence.--The term ``artificial
            intelligence'' has the meaning given the term in section 5002 of
            the National Artificial Intelligence Initiative Act of 2020 (15
            U.S.C. 9401).

        (b) Transformational Models.--The Secretary of Energy shall--
                (1) mobilize National Laboratories to partner with industry
            sectors within the United States to curate the scientific data
            of the Department of Energy across the National Laboratory
            complex so that the data is structured, cleaned, and
            preprocessed in a way that makes it suitable for use in
            artificial intelligence and machine learning models; and

    [[Page 139 STAT. 154]]

                (2) initiate seed efforts for self-improving artificial
            intelligence models for science and engineering powered by the
            data described in paragraph (1).

        (c) Uses.--
                (1) Microelectronics.--The curated data described in
            subsection (b)(1) may be used to rapidly develop next-generation
            microelectronics that have greater capabilities beyond Moore's
            law while requiring lower energy consumption.
                (2) New energy technologies.--The artificial intelligence
            models developed under subsection (b)(2) shall be provided to
            the scientific community through the American science cloud to
            accelerate innovation in discovery science and engineering for
            new energy technologies.

        (d) Appropriations.--There is appropriated, out of any funds in the
    Treasury not otherwise appropriated, $150,000,000, to remain available
    through September 30, 2026, to carry out this section.

                                Subtitle E--Water

    SEC. 50501. <<NOTE: Appropriation authorization. Time
                                period. Expiration date.>> WATER
                                CONVEYANCE AND 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 funds in the Treasury not
    otherwise appropriated, $1,000,000,000, to remain available through
    September 30, 2034, for construction and associated activities that
    restore or increase the capacity or use of existing conveyance
    facilities constructed by the Bureau of Reclamation or 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 of the Interior, acting through the
    Commissioner of Reclamation:  Provided, That,
    for <<NOTE: Contracts.>> 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; 106 Stat. 4708), a contract or agreement entered into
    pursuant to this section shall not be treated as a new or amended
    contract:  Provided further, That none of the funds provided under this
    section shall be reimbursable or subject to matching or cost-sharing
    requirements.

               TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

    SEC. 60001. RESCISSION OF FUNDING FOR CLEAN HEAVY-DUTY VEHICLES.

        The unobligated balances of amounts made available to carry out
    section 132 of the Clean Air Act (42 U.S.C. 7432) are rescinded.
    SEC. 60002. <<NOTE: Rescission.>> REPEAL OF GREENHOUSE GAS
                                REDUCTION FUND.

        Section 134 of the Clean Air Act (42 U.S.C. 7434) is repealed and
    the unobligated balances of amounts made available to carry out that
    section (as in effect on the day before the date of enactment of this
    Act) are rescinded.

    [[Page 139 STAT. 155]]

    SEC. 60003. RESCISSION OF FUNDING FOR DIESEL EMISSIONS REDUCTIONS.

        The unobligated balances of amounts made available to carry out
    section 60104 of Public Law 117-169 (136 Stat. 2067) are rescinded.
    SEC. 60004. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION.

        The unobligated balances of amounts made available to carry out
    section 60105 of Public Law 117-169 (136 Stat. 2067) are rescinded.
    SEC. 60005. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION AT
                                SCHOOLS.

        The unobligated balances of amounts made available to carry out
    section 60106 of Public Law 117-169 (136 Stat. 2069) are rescinded.
    SEC. 60006. RESCISSION OF FUNDING FOR THE LOW EMISSIONS
                                ELECTRICITY PROGRAM.

        The unobligated balances of amounts made available to carry out
    section 135 of the Clean Air Act (42 U.S.C. 7435) are rescinded.
    SEC. 60007. RESCISSION OF FUNDING FOR SECTION 211(O) OF THE CLEAN
                                AIR ACT.

        The unobligated balances of amounts made available to carry out
    section 60108 of Public Law 117-169 (136 Stat. 2070) are rescinded.
    SEC. 60008. RESCISSION OF FUNDING FOR IMPLEMENTATION OF THE
                                AMERICAN INNOVATION AND MANUFACTURING
                                ACT.

        The unobligated balances of amounts made available to carry out
    section 60109 of Public Law 117-169 (136 Stat. 2071) are rescinded.
    SEC. 60009. RESCISSION OF FUNDING FOR ENFORCEMENT TECHNOLOGY AND
                                PUBLIC INFORMATION.

        The unobligated balances of amounts made available to carry out
    section 60110 of Public Law 117-169 (136 Stat. 2071) are rescinded.
    SEC. 60010. RESCISSION OF FUNDING FOR GREENHOUSE GAS CORPORATE
                                REPORTING.

        The unobligated balances of amounts made available to carry out
    section 60111 of Public Law 117-169 (136 Stat. 2072) are rescinded.
    SEC. 60011. RESCISSION OF FUNDING FOR ENVIRONMENTAL PRODUCT
                                DECLARATION ASSISTANCE.

        The unobligated balances of amounts made available to carry out
    section 60112 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat.
    2072) are rescinded.
    SEC. 60012. RESCISSION OF FUNDING FOR METHANE EMISSIONS AND WASTE
                                REDUCTION INCENTIVE PROGRAM FOR
                                PETROLEUM AND NATURAL GAS SYSTEMS.

        (a) Rescission.--The unobligated balances of amounts made available
    to carry out subsections (a) and (b) of section 136 of the Clean Air Act
    (42 U.S.C. 7436) are rescinded.

    [[Page 139 STAT. 156]]

        (b) Period.--Section 136(g) of the Clean Air Act (42 U.S.C. 7436(g))
    is amended by striking ``calendar year 2024'' and inserting ``calendar
    year 2034''.
    SEC. 60013. RESCISSION OF FUNDING FOR GREENHOUSE GAS AIR POLLUTION
                                PLANS AND IMPLEMENTATION GRANTS.

        The unobligated balances of amounts made available to carry out
    section 137 of the Clean Air Act (42 U.S.C. 7437) are rescinded.
    SEC. 60014. RESCISSION OF FUNDING FOR ENVIRONMENTAL PROTECTION
                                AGENCY EFFICIENT, ACCURATE, AND TIMELY
                                REVIEWS.

        The unobligated balances of amounts made available to carry out
    section 60115 of Public Law 117-169 (136 Stat. 2077) are rescinded.
    SEC. 60015. RESCISSION OF FUNDING FOR LOW-EMBODIED CARBON LABELING
                                FOR CONSTRUCTION MATERIALS.

        The unobligated balances of amounts made available to carry out
    section 60116 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat.
    2077) are rescinded.
    SEC. 60016. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE
                                JUSTICE BLOCK GRANTS.

        The unobligated balances of amounts made available to carry out
    section 138 of the Clean Air Act (42 U.S.C. 7438) are rescinded.
    SEC. 60017. RESCISSION OF FUNDING FOR ESA RECOVERY PLANS.

        The unobligated balances of amounts made available to carry out
    section 60301 of Public Law 117-169 (136 Stat. 2079) are rescinded.
    SEC. 60018. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE
                                DATA COLLECTION.

        The unobligated balances of amounts made available to carry out
    section 60401 of Public Law 117-169 (136 Stat. 2079) are rescinded.
    SEC. 60019. RESCISSION OF NEIGHBORHOOD ACCESS AND EQUITY GRANT
                                PROGRAM.

        The unobligated balances of amounts made available to carry out
    section 177 of title 23, United States Code, are rescinded.
    SEC. 60020. RESCISSION 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) are rescinded.
    SEC. 60021. RESCISSION OF FUNDING FOR LOW-CARBON MATERIALS FOR
                                FEDERAL BUILDINGS.

        The unobligated balances of amounts made available to carry out
    section 60503 of Public Law 117-169 (136 Stat. 2083) are rescinded.
    SEC. 60022. RESCISSION OF FUNDING FOR GSA EMERGING AND SUSTAINABLE
                                TECHNOLOGIES.

        The unobligated balances of amounts made available to carry out
    section 60504 of Public Law 117-169 (136 Stat. 2083) are rescinded.

    [[Page 139 STAT. 157]]

    SEC. 60023. RESCISSION OF ENVIRONMENTAL REVIEW IMPLEMENTATION
                                FUNDS.

        The unobligated balances of amounts made available to carry out
    section 178 of title 23, United States Code, are rescinded.
    SEC. 60024. RESCISSION OF LOW-CARBON TRANSPORTATION MATERIALS
                                GRANTS.

        The unobligated balances of amounts made available to carry out
    section 179 of title 23, United States Code, are rescinded.
    SEC. 60025. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS.

        (a) <<NOTE: Appropriation authorization. Time period. Expiration
    date.>> 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.
    SEC. 60026. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS.

        Title I of the National Environmental Policy Act of 1969 (42 U.S.C.
    4331 et seq.) is amended by adding at the end the following:
    ``SEC. 112. <<NOTE: 42 USC 4336f.>> PROJECT SPONSOR OPT-IN FEES
                            FOR ENVIRONMENTAL REVIEWS.

        ``(a) Process.--
                ``(1) Project sponsor.--A project sponsor that intends to
            pay a fee under this section for the preparation, or supervision
            of the preparation, of an environmental assessment or
            environmental impact statement for a project 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).
                ``(2) <<NOTE: Deadline. Notice.>> Council on environmental
            quality.--Not later than 15 days after the date on which the
            Council receives information described in paragraph (1) from a
            project sponsor, the Council shall provide to the project
            sponsor notice of the amount of the fee to be paid under this
            section, 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 is
                    paid under this section shall be completed not later
                    than 180 days after the date on which the fee is paid;
                    and
                        ``(B) an environmental impact statement for which a
                    fee is paid under this section shall be completed not
                    later than 1 year after the date of publication of the
                    notice of intent to prepare the environmental impact
                    statement.

    [[Page 139 STAT. 158]]

        ``(b) Fee Amount.--The amount of a fee under this section shall be--
                ``(1) 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.''.

                               TITLE VII--FINANCE

                                 Subtitle A--Tax

    SEC. 70001. 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) <<NOTE: 26 USC 15 note.>> 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.

    CHAPTER 1--PROVIDING PERMANENT TAX RELIEF FOR MIDDLE-CLASS FAMILIES AND
                                     WORKERS

    SEC. 70101. EXTENSION AND ENHANCEMENT OF REDUCED RATES.

        (a) In General.-- <<NOTE: 26 USC 1.>> 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 ``solely for purposes of determining the dollar amounts at
    which any rate bracket higher than 12 percent ends and at which any rate
    bracket higher than 22 percent begins,'' before ``subsection (f)(3)''.
        (c) <<NOTE: 26 USC 1 note.>> Effective Date.--The amendments made by
    this section shall apply to taxable years beginning after December 31,
    2025.
    SEC. 70102. EXTENSION AND ENHANCEMENT OF INCREASED STANDARD
                                DEDUCTION.

        (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) Additional Increase in Standard Deduction.--Paragraph (7) of
    section 63(c) is amended--
                (1) by striking ``$18,000'' both places it appears in
            subparagraphs (A)(i) and (B)(ii) and inserting ``$23,625'',

    [[Page 139 STAT. 159]]

                (2) by striking ``$12,000'' both places it appears in
            subparagraphs (A)(ii) and (B)(ii) and inserting ``$15,750'',
                (3) by striking ``2018'' in subparagraph (B)(ii) and
            inserting ``2025'', and
                (4) by striking ``2017'' in subparagraph (B)(ii)(II) and
            inserting ``2024''.

        (c) <<NOTE: 26 USC 63 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2024.
    SEC. 70103. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER
                                THAN TEMPORARY SENIOR DEDUCTION.

        (a) In General.--Section 151(d)(5) is amended--.
                (1) by striking ``2018 through 2025'' in the heading and
            inserting ``beginning after 2017'',
                (2) by striking ``, and before January 1, 2026'', and
                (3) by adding at the end the following new subparagraph:
                        ``(C) <<NOTE: Definitions.>> Deduction for
                    seniors.--
                              ``(i) <<NOTE: Effective date.>> In general.--
                          In the case of a taxable year beginning before
                          January 1, 2029, there shall be allowed a
                          deduction in an amount equal to $6,000 for each
                          qualified individual with respect to the taxpayer.
                              ``(ii) Qualified individual.--For purposes of
                          clause (i), the term `qualified individual'
                          means--
                                        ``(I) the taxpayer, if the taxpayer
                                    has attained age 65 before the close of
                                    the taxable year, and
                                        ``(II) in the case of a joint
                                    return, the taxpayer's spouse, if such
                                    spouse has attained age 65 before the
                                    close of the taxable year.
                              ``(iii) Limitation based on modified adjusted
                          gross income.--
                                        ``(I) In general.--In the case of
                                    any taxpayer for any taxable year, the
                                    $6,000 amount in clause (i) shall be
                                    reduced (but not below zero) by 6
                                    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).
                                        ``(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
                                    increased by any amount excluded from
                                    gross income under section 911, 931, or
                                    933.
                              ``(iv) Social security number required.--
                                        ``(I) In general.--Clause (i) shall
                                    not apply with respect to a qualified
                                    individual unless the taxpayer includes
                                    such qualified individual's social
                                    security number on the return of tax for
                                    the taxable year.
                                        ``(II) Social security number.--For
                                    purposes of subclause (I), the term
                                    `social security number' has the meaning
                                    given such term in section 24(h)(7).
                              ``(v) <<NOTE: Applicability.>> Married
                          individuals.--If the taxpayer is a married
                          individual (within the meaning of section

    [[Page 139 STAT. 160]]

                          7703), this subparagraph shall apply only if the
                          taxpayer and the taxpayer's spouse file a joint
                          return for the taxable year.''.

        (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 151(d)(5)(C) (relating to
                    deduction for seniors).''.

        (c) <<NOTE: 26 USC 151 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2024.
    SEC. 70104. EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX
                                CREDIT.

        (a) Extension and Increase of Expanded Child Tax Credit.--Section
    24(h) is amended--
                (1) in paragraph (1), by striking ``, and before January 1,
            2026'',
                (2) in paragraph (2), by striking ``$2,000'' and inserting
            ``$2,200'', and
                (3) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.

        (b) 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) the taxpayer's social security number
                          (or, in the case of a joint return, the social
                          security number of at least 1 spouse), and
                              ``(ii) the social security number of such
                          qualifying child.
                        ``(B) <<NOTE: Definition.>> Social security
                    number.--For purposes of this paragraph, the term
                    `social security number' means a social security number
                    issued to an individual by the Social Security
                    Administration, but only if the social security number
                    is issued--
                              ``(i) to a citizen of the United States or
                          pursuant to subclause (I) (or that portion of
                          subclause (III) that relates to subclause (I)) of
                          section 205(c)(2)(B)(i) of the Social Security
                          Act, and
                              ``(ii) before the due date for such return.''.

        (c) Inflation Adjustments.--Section 24(i) is amended to read as
    follows:
        ``(i) <<NOTE: Effective dates.>> 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

    [[Page 139 STAT. 161]]

                    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 2025, the $2,200 amount
            in subsection (h)(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 `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.''.

        (d) Conforming Amendment.--Section 24(h)(5) is amended to read as
    follows:
                ``(5) <<NOTE: Applicability.>> 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.''.

        (e) 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''.
        (f) <<NOTE: 26 USC 24 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2024.
    SEC. 70105. EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED
                                BUSINESS INCOME.

        (a) Increase in Taxable Income Limitation Phase-in Amounts.--
                (1) In general.--Subparagraph (B) of section 199A(b)(3) is
            amended by striking ``$50,000 ($100,000 in the case of a joint
            return)'' each place it appears and inserting ``$75,000
            ($150,000 in the case of a joint return)''.
                (2) Conforming amendment.--Paragraph (3) of section 199A(d)
            is amended by striking ``$50,000 ($100,000 in the case of a
            joint return)'' each place it appears and inserting ``$75,000
            ($150,000 in the case of a joint return)''.

        (b) Minimum Deduction for Active Qualified Business Income.--
                (1) In general.--Subsection (i) of section 199A is amended
            to read as follows:

        ``(i) Minimum Deduction for Active Qualified Business Income.--
                ``(1) In general.--In the case of an applicable taxpayer for
            any taxable year, the deduction allowed under subsection (a) for
            the taxable year shall be equal to the greater of--
                        ``(A) the amount of such deduction determined
                    without regard to this subsection, or
                        ``(B) $400.
                ``(2) <<NOTE: Definitions.>> Applicable taxpayer.--For
            purposes of this subsection--
                        ``(A) In general.--The term `applicable taxpayer'
                    means, with respect to any taxable year, a taxpayer
                    whose aggregate qualified business income with respect
                    to all

    [[Page 139 STAT. 162]]

                    active qualified trades or businesses of the taxpayer
                    for such taxable year is at least $1,000.
                        ``(B) Active qualified trade or business.--The term
                    `active qualified trade or business' means, with respect
                    to any taxpayer for any taxable year, any qualified
                    trade or business of the taxpayer in which the taxpayer
                    materially participates (within the meaning of section
                    469(h)).
                ``(3) <<NOTE: Effective date.>> Inflation adjustment.--In
            the case of any taxable year beginning after 2026, the $400
            amount in paragraph (1)(B) and the $1,000 amount in paragraph
            (2)(A) shall each 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.
            If any increase under this paragraph is not a multiple of $5,
            such increase shall be rounded to the nearest multiple of $5.''.
                (2) Conforming amendment.--Section 199A(a) is amended by
            inserting ``except as provided in subsection (i),'' before
            ``there''.

        (c) <<NOTE: 26 USC 199A note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT
                                TAX EXEMPTION AMOUNTS.

        (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) <<NOTE: 26 USC 2010 note.>> Effective Date.--The amendments made
    by this section shall apply to estates of decedents dying and gifts made
    after December 31, 2025.
    SEC. 70107. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
                                EXEMPTION AMOUNTS AND MODIFICATION OF
                                PHASEOUT 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'' and inserting ``2018 (2026, in the
            case of the $1,000,000 amount in subparagraph (A)(ii)(I))'', and
                (2) by striking ``determined by substituting `calendar year
            2017' for `calendar year 2016' in subparagraph (A)(ii)
            thereof.'' and inserting ``determined by substituting for
            `calendar year 2016' in subparagraph (A)(ii) thereof--

    [[Page 139 STAT. 163]]

                ``(1) `calendar year 2017', in the case of the $109,400
            amount in subparagraph (A)(i)(I) and the $70,300 amount in
            subparagraph (A)(i)(II), and
                ``(2) `calendar year 2025', in the case of the $1,000,000
            amount in subparagraph (A)(ii)(I).''.

        (c) Modification of Phaseout Amount.--Section 55(d)(4)(A)(ii) is
    amended by striking ``and'' at the end of subclause (II), and by adding
    at the end the following new subclause:
                                        ``(IV) by substituting `50 percent'
                                    for `25 percent', and''.

        (d) <<NOTE: 26 USC 55 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70108. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION
                                FOR QUALIFIED RESIDENCE INTEREST.

        (a) In General.--Section 163(h)(3)(F) is amended--
                (1) in clause (i)--
                        (A) by striking ``, and before January 1, 2026'',
                        (B) by redesignating subclauses (III) and (IV) as
                    subclauses (IV) and (V), respectively,
                        (C) by striking ``subclause (III)'' in subclause
                    (V), as so redesignated, and inserting ``subclause
                    (IV)'', and
                        (D) by inserting after subclause (II) the following
                    new subclause:
                                        ``(III) Mortgage insurance premiums
                                    treated as interest.--Clause (iv) of
                                    subparagraph (E) shall not apply.'',
                (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) <<NOTE: 26 USC 163 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70109. EXTENSION AND MODIFICATION 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) Extension to State Declared Disasters.--
                (1) In general.--Subparagraph (A) of section 165(h)(5), as
            amended by subsection (a), is further amended by striking
            ``(i)(5))'' and inserting ``(i)(5)) or a State declared
            disaster''.
                (2) Exception related to personal casualty gains.--Clause
            (i) of section 165(h)(5)(B) is amended by striking ``(as so
            defined)'' and inserting ``(as so defined) or a State declared
            disaster''.
                (3) State declared disaster.--Paragraph (5) of section
            165(h) is amended by adding at the end the following new
            subparagraph:
                        ``(C) <<NOTE: Definitions.>> State declared
                    disaster.--For purposes of this paragraph--
                              ``(i) In general.--The term `State declared
                          disaster' means, with respect to any State, any
                          natural catastrophe (including any hurricane,
                          tornado, storm, high water, wind-driven water,
                          tidal wave, tsunami,

    [[Page 139 STAT. 164]]

                          earthquake, volcanic eruption, landslide,
                          mudslide, snowstorm, or drought), or, regardless
                          of cause, any fire, flood, or explosion, in any
                          part of the State, which in the determination of
                          the Governor of such State (or the Mayor, in the
                          case of the District of Columbia) and the
                          Secretary causes damage of sufficient severity and
                          magnitude to warrant the application of the rules
                          of this section.
                              ``(ii) State.--The term `State' includes the
                          District of Columbia, the Commonwealth of Puerto
                          Rico, the Virgin Islands, Guam, American Samoa,
                          and the Commonwealth of the Northern Mariana
                          Islands.''.

        (c) <<NOTE: 26 USC 165 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70110. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER
                                THAN EDUCATOR EXPENSES.

        (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) Deduction for Educator Expenses.--
                (1) In general.--Section 67(b) is amended by striking
            ``and'' at the end of paragraph (11), by striking the period at
            the end of paragraph (12) and inserting ``, and'', and by adding
            at the end the following new paragraph:
                ``(13) the deductions allowed by section 162 for educator
            expenses (as defined in subsection (g)).''.
                (2) Inclusion of coaches and certain nonathletic
            instructional equipment.--Section 67 is amended by redesignating
            subsection (g), as amended by this section, as subsection (h),
            and by inserting after subsection (f) the following new section:

        ``(g) <<NOTE: Definition.>> Educator Expenses.--For purposes of
    subsection (b)(13), the term `educator expenses' means expenses of a
    type which would be described in section 62(a)(2)(D) if--
                ``(1) such section were applied--
                        ``(A) without regard to the dollar limitation,
                        ``(B) without regard to `(other than nonathletic
                    supplies for courses of instruction in health or
                    physical education)' in clause (ii) thereof, and
                        ``(C) by substituting `as part of instructional
                    activity' for `in the classroom' in clause (ii) thereof,
                    and
                ``(2) section 62(d)(1)(A) were applied by inserting `,
            interscholastic sports administrator or coach,' after
            `counselor'.''.

        (c) <<NOTE: 26 USC 67 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70111. 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
    itemized deductions otherwise allowable for the taxable year (determined
    without regard to this section) shall be reduced by \2/37\ of the lesser
    of--
                ``(1) such amount of itemized deductions, or
                ``(2) so much of the taxable income of the taxpayer for the
            taxable year (determined without regard to this section and
            increased by such amount of itemized deductions) as

    [[Page 139 STAT. 165]]

            exceeds the dollar amount at which the 37 percent rate bracket
            under section 1 begins with respect to the taxpayer.

        ``(b) <<NOTE: Applicability.>> Coordination With Other
    Limitations.--This section shall be applied after the application of any
    other limitation on the allowance of any itemized deduction.''.

        (b) Limitation Not Applicable to Determination of Deduction for
    Qualified Business Income.--
                (1) In general.--Section 199A(e)(1) is amended by inserting
            ``without regard to section 68 and'' after ``shall be
            computed''.
                (2) Patrons of specified agricultural and horticultural
            cooperatives.--Section 199A(g)(2)(B) is amended by inserting
            ``section 68 or'' after ``without regard to''.

        (c) <<NOTE: 26 USC 68 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70112. EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION
                                FRINGE BENEFITS.

        (a) In General.--Section 132(f) is amended--
                (1) by striking subparagraph (D) of paragraph (1),
                (2) in paragraph (2), by inserting ``and'' at the end of
            subparagraph (A), by striking ``, and'' at the end of
            subparagraph (B) and inserting a period, and by striking
            subparagraph (C),
                (3) by striking ``(other than a qualified bicycle commuting
            reimbursement)'' in paragraph (4),
                (4) by striking subparagraph (F) of paragraph (5), and
                (5) by striking paragraph (8).

        (b) Inflation Adjustment.--Clause (ii) of section 132(f)(6)(A) is
    amended by striking ``1998'' in clause (ii) and inserting ``1997''.
        (c) Coordination With Disallowance of Certain Expenses.--Subsection
    (l) of section 274 is amended--
                (1) by striking ``Benefits.--'' and all that follows through
            ``No deduction'' and inserting ``Benefits.--No deduction'', and
                (2) by striking paragraph (2).

        (d) <<NOTE: 26 USC 132 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70113. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION
                                AND EXCLUSION FOR MOVING EXPENSES.

        (a) Extension of Limitation on Deduction.--Section 217(k) is
    amended--
                (1) by striking ``, and before January 1, 2026'', and
                (2) by striking ``2018 Through 2025'' in the heading and
            inserting ``Beginning After 2017''.

        (b) Allowance of Deduction for Members of the Intelligence
    Community.--Section 217(k), as amended by subsection (a), is further
    amended--
                (1) by striking ``2017.--Except in the case'' and inserting
            ``2017.--
                ``(1) In general.--Except in the case'', and
                (2) by adding at the end the following new paragraph:
                ``(2) Members of the intelligence community.--An employee or
            new appointee of the intelligence community (as defined in
            section 3 of the National Security Act of 1947 (50 U.S.C. 3003))
            (other than a member of the Armed Forces of the United States)
            who moves pursuant to a change in assignment which requires
            relocation shall be treated for purposes

    [[Page 139 STAT. 166]]

            of this section in the same manner as an individual to whom
            subsection (g) applies.''.

        (c) Extension of Limitation on Exclusion.--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''.

        (d) Allowance of Exclusion for Members of the Intelligence
    Community.--Section 132(g)(2) of the Internal Revenue Code of 1986 is
    amended by inserting ``, or an employee or new appointee of the
    intelligence community (as defined in section 3 of the National Security
    Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces
    of the United States) who moves pursuant to a change in assignment that
    requires relocation'' after ``change of station''.
        (e) <<NOTE: 26 USC 132 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70114. EXTENSION AND MODIFICATION OF LIMITATION ON WAGERING
                                LOSSES.

        (a) In General.--Section 165 is amended by striking subsection (d)
    and inserting the following:
        ``(d) Wagering Losses.--
                ``(1) In general.--For purposes of losses from wagering
            transactions, the amount allowed as a deduction for any taxable
            year--
                        ``(A) shall be equal to 90 percent of the amount of
                    such losses during such taxable year, and
                        ``(B) shall be allowed only to the extent of the
                    gains from such transactions during such taxable year.
                ``(2) <<NOTE: Definition.>> Special rule.--For purposes of
            paragraph (1), the term `losses from wagering transactions'
            includes any deduction otherwise allowable under this chapter
            incurred in carrying on any wagering transaction.''.

        (b) <<NOTE: 26 USC 165 note.>> Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70115. EXTENSION AND ENHANCEMENT OF INCREASED LIMITATION ON
                                CONTRIBUTIONS TO ABLE ACCOUNTS.

        (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) <<NOTE: Applicability. 26 USC 529A note.>> Effective Dates.--
                (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. 70116. EXTENSION AND ENHANCEMENT OF SAVERS CREDIT ALLOWED FOR
                                ABLE CONTRIBUTIONS.

        (a) Extension.--
                (1) In general.--Section 25B(d)(1) is amended to read as
            follows:

    [[Page 139 STAT. 167]]

                ``(1) <<NOTE: Definition.>> 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)).''.
                (2) <<NOTE: Applicability. 26 USC 25B note.>> Coordination
            with secure 2.0 act of 2022 amendment.--Paragraph (1) of section
            103(e) of the SECURE 2.0 Act of 2022 is <<NOTE: 26 USC
            25B.>> repealed, and the Internal Revenue Code of 1986 shall be
            applied and administered as though such paragraph were never
            enacted.
                (3) <<NOTE: 26 USC 25B note.>> Effective date.--The
            amendments and repeal made by this subsection shall apply to
            taxable years ending after December 31, 2025.

        (b) Increase of Credit Amount.--
                (1) In general.--Section 25B(a) is amended by striking
            ``$2,000'' and inserting ``$2,100''.
                (2) <<NOTE: 26 USC 25B note.>> Effective date.--The
            amendment made by this subsection shall apply to taxable years
            beginning after December 31, 2026.
    SEC. 70117. 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) <<NOTE: 26 USC 529 note.>> Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70118. 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 <<NOTE: 26 USC 112 note.>> 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) <<NOTE: Definition.>> Qualified Hazardous Duty Area.--For
    purposes of this section, the term `qualified hazardous duty area' means
    each of the following locations, but only during the period for which
    any member of the Armed Forces of the United States is entitled to

    [[Page 139 STAT. 168]]

    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:
                ``(1) the Sinai Peninsula of Egypt.
                ``(2) Kenya.
                ``(3) Mali.
                ``(4) Burkina Faso.
                ``(5) Chad.''.

        (c) Conforming Amendment.--Section 11026 of Public Law 115-97 is
    amended by striking subsections (c) and (d).
        (d) <<NOTE: 26 USC 112 note.>> Effective Date.--The amendments made
    by this section shall take effect on January 1, 2026.
    SEC. 70119. EXTENSION AND MODIFICATION 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 the
                          taxpayer's social security number on the return of
                          tax for such taxable year.
                              ``(ii) <<NOTE: Definition.>> Social security
                          number.--For purposes of this subparagraph, the
                          term `social security number' has the meaning
                          given such term in section 24(h)(7).''.

        (b) Omission of Correct Social Security Number Treated as
    Mathematical or Clerical Error.--Section 6213(g)(2), as amended by this
    Act, is further 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:

    [[Page 139 STAT. 169]]

                        ``(X) 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) <<NOTE: 26 USC 108 note.>> Effective Date.--The amendments made
    by this section shall apply to discharges after December 31, 2025.
    SEC. 70120. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE
                                AND LOCAL TAXES, ETC.

        (a) In General.--Section 164(b)(6) is amended--
                (1) by striking ``and before January 1, 2026'', and
                (2) by striking ``$10,000 ($5,000 in the case of a married
            individual filing a separate return)'' and inserting ``the
            applicable limitation amount (half the applicable limitation
            amount in the case of a married individual filing a separate
            return)''.

        (b) Applicable Limitation Amount.--Section 164(b) is amended by
    adding at the end the following new paragraph:
                ``(7) <<NOTE: Definitions.>> Applicable limitation amount.--
                        ``(A) In general.--For purposes of paragraph (6),
                    the term `applicable limitation amount' means--
                              ``(i) in the case of any taxable year
                          beginning in calendar year 2025, $40,000,
                              ``(ii) in the case of any taxable year
                          beginning in calendar year 2026, $40,400,
                              ``(iii) in the case of any taxable year
                          beginning after calendar year 2026 and before
                          2030, 101 percent of the dollar amount in effect
                          under this subparagraph for taxable years
                          beginning in the preceding calendar year, and
                              ``(iv) in the case of any taxable year
                          beginning after calendar year 2029, $10,000.
                        ``(B) Phasedown based on modified adjusted gross
                    income.--
                              ``(i) In general.--Except as provided in
                          clause (iii), in the case of any taxable year
                          beginning before January 1, 2030, the applicable
                          limitation amount shall be reduced by 30 percent
                          of the excess (if any) of the taxpayer's modified
                          adjusted gross income over the threshold amount
                          (half the threshold amount in the case of a
                          married individual filing a separate return).
                              ``(ii) Threshold amount.--For purposes of this
                          subparagraph, the term `threshold amount' means--
                                        ``(I) in the case of any taxable
                                    year beginning in calendar year 2025,
                                    $500,000,
                                        ``(II) in the case of any taxable
                                    year beginning in calendar year 2026,
                                    $505,000, and
                                        ``(III) in the case of any taxable
                                    year beginning after calendar year 2026,
                                    101 percent of the dollar amount in
                                    effect under this subparagraph for
                                    taxable years beginning in the preceding
                                    calendar year.
                              ``(iii) Limitation on reduction.--The
                          reduction under clause (i) shall not result in the
                          applicable limitation amount being less than
                          $10,000.
                              ``(iv) Modified adjusted gross income.--For
                          purposes of this paragraph, the term `modified
                          adjusted

    [[Page 139 STAT. 170]]

                          gross income' means adjusted gross income
                          increased by any amount excluded from gross income
                          under section 911, 931, or 933.''.

        (c) <<NOTE: 26 USC 164 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2024.

     CHAPTER 2--DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE-
                                CLASS TAX RELIEF

    SEC. 70201. 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. <<NOTE: 26 USC 224.>> 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), or 6051(a)(18), or reported by the
    taxpayer on Form 4137 (or successor).
        ``(b) Limitation.--
                ``(1) In general.--The amount allowed as a deduction under
            this section for any taxable year shall not exceed $25,000.
                ``(2) Limitation based on adjusted gross income.--
                        ``(A) In general.--The amount allowable as a
                    deduction under subsection (a) (after application of
                    paragraph (1)) shall be reduced (but not below zero) by
                    $100 for each $1,000 by which the taxpayer's modified
                    adjusted gross income exceeds $150,000 ($300,000 in the
                    case of a joint return).
                        ``(B) <<NOTE: Definition.>> 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.

        ``(c) 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 a trade or business (other than the trade or business of
    performing services as an employee) of such individual, such qualified
    tips shall be taken into account under subsection (a) only to the extent
    that the gross income for the taxpayer from such trade or business for
    such taxable year (including such qualified tips) exceeds the sum of the
    deductions (other than the deduction allowed under this section)
    allocable to the trade or business in which such qualified tips are
    received by the individual for such taxable year.
        ``(d) <<NOTE: Definitions.>> Qualified Tips.--For purposes of this
    section--
                ``(1) In general.--The term `qualified tips' means cash tips
            received by an individual in an occupation which customarily and
            regularly 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,

    [[Page 139 STAT. 171]]

                        ``(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)), and
                        ``(C) such other requirements as may be established
                    by the Secretary in regulations or other guidance are
                    satisfied.
            For purposes of subparagraph (B), in the case of an individual
            receiving tips in the trade or business of performing services
            as an employee, such individual shall be treated as receiving
            tips in the course of a trade or business which is a specified
            service trade or business if the trade or business of the
            employer is a specified service trade or business.
                ``(3) Cash tips.--For purposes of paragraph (1), the term
            `cash tips' includes tips received from customers that are paid
            in cash or charged and, in the case of an employee, tips
            received under any tip-sharing arrangement.

        ``(e) 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 such individual's social security number.
                ``(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).

        ``(f) <<NOTE: Applicability.>> Married Individuals.--If the taxpayer
    is a married individual (within the meaning of section 7703), this
    section shall apply only if the taxpayer and the taxpayer's spouse file
    a joint return for the taxable year.

        ``(g) <<NOTE: Guidance.>> 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.

        ``(h) Termination.--No deduction shall be allowed under this section
    for any taxable year beginning after December 31, 2028.''.
        (b) Deduction Allowed to Non-itemizers.--Section 63(b) is amended by
    striking ``and'' at the end of paragraph (3), by striking the period at
    the end of paragraph (4) and inserting ``, and'', and by adding at the
    end the following new paragraph:
                ``(5) the deduction provided in section 224.''.

        (c) Omission of Correct Social Security Number Treated as
    Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
    preceding provisions of this Act, is amended by striking ``and'' at the
    end of subparagraph (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 224(e) (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.--

    [[Page 139 STAT. 172]]

                (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 reasonably designated as
                    cash tips and the occupation described in section
                    224(d)(1) of the person receiving such tips)'' 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 reasonably designated as cash
            tips and the occupation described in section 224(d)(1) of the
            person receiving such tips.''.
                (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 reasonably designated as
                    cash tips and the occupation described in section
                    224(d)(1) of the person receiving such tips)'' 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) in the case of subsection (a), the portion of payments
            that have been reasonably designated as cash tips and the

    [[Page 139 STAT. 173]]

            occupation described in section 224(d)(1) of the person
            receiving such tips.''.
                (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
            reasonably designated by payors as cash tips and the occupation
            described in section 224(d)(1) of the person receiving such
            tips.''.
                        (B) Statement furnished to payee.--Section
                    6050W(f)(2) is amended by inserting ``(including a
                    separate accounting of any such amounts that have been
                    reasonably designated by payors as cash tips and the
                    occupation described in section 224(d)(1) of the person
                    receiving such tips)'' 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 cash tips reported by the
            employee under section 6053(a) and the occupation described in
            section 224(d)(1) such person.''.

        (g) Clerical Amendment.--The table of sections for part VII of
    subchapter B of chapter 1 is amended <<NOTE: 26 USC prec. 211.>>  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. <<NOTE: Deadline. 26 USC 224 note.>> --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 customarily and regularly received tips on or before
    December 31, 2024, for purposes of section 224(d)(1) of the Internal
    Revenue Code of 1986 (as added by subsection (a)).

        (i) <<NOTE: Procedures. Effective date. 26 USC 3402 note.>>
    Withholding.--The Secretary of the Treasury (or the Secretary's
    delegate) shall modify the procedures prescribed under section 3402(a)
    of the Internal Revenue Code of 1986 for taxable years beginning after
    December 31, 2025, to take into account the deduction allowed under
    section 224 of such Code (as added by this Act).

        (j) <<NOTE: 26 USC 45B note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2024.

        (k) <<NOTE: Time periods. 26 USC 6041 note.>>  Transition Rule.--In
    the case of any cash tips required to be reported for periods before
    January 1, 2026, persons required to file returns or statements under
    section 6041(a), 6041(d)(3), 6041A(a), 6041A(e)(3), 6050W(a), or
    6050W(f)(2) of the Internal Revenue Code of 1986 (as amended by this
    section) may approximate a separate accounting of amounts designated as
    cash tips by any reasonable method specified by the Secretary.

    [[Page 139 STAT. 174]]

    SEC. 70202. 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. <<NOTE: 26 USC 225.>>  QUALIFIED OVERTIME
                            COMPENSATION.

        ``(a) <<NOTE: Statements.>>  In General.--There shall be allowed as
    a deduction an amount equal to the qualified overtime compensation
    received during the taxable year and included on statements furnished to
    the individual pursuant to section 6041(d)(4) or 6051(a)(19).

        ``(b) Limitation.--
                ``(1) In general.--The amount allowed as a deduction under
            this section for any taxable year shall not exceed $12,500
            ($25,000 in the case of a joint return).
                ``(2) Limitation based on adjusted gross income.--
                        ``(A) In general.--The amount allowable as a
                    deduction under subsection (a) (after application of
                    paragraph (1)) shall be reduced (but not below zero) by
                    $100 for each $1,000 by which the taxpayer's modified
                    adjusted gross income exceeds $150,000 ($300,000 in the
                    case of a joint return).
                        ``(B) <<NOTE: Definition.>>  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.

        ``(c) Qualified Overtime Compensation.--
                ``(1) <<NOTE: Definition.>>  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 any qualified
            tip (as defined in section 224(d)).

        ``(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 such individual's social security number.
                ``(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) <<NOTE: Applicability.>>  Married Individuals.--If the
    taxpayer is a married individual (within the meaning of section 7703),
    this section shall apply only if the taxpayer and the taxpayer's spouse
    file a joint return for the taxable year.

        ``(f) <<NOTE: Guidance.>>  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 abuse of the deduction allowed by this section.

        ``(g) 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

    [[Page 139 STAT. 175]]

    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) Reporting.--
                (1) 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(c)).''.
                (2) Payments to persons not treated as employees under tax
            laws.--
                        (A) Statement furnished to secretary.--Section
                    6041(a), as amended by section 70201(e)(1)(A), is
                    amended by inserting ``and a separate accounting of any
                    amount of qualified overtime compensation (as defined in
                    section 225(c))'' after ``occupation of the person
                    receiving such tips''.
                        (B) Statement furnished to payee.--Section 6041(d),
                    as amended by section 70201(e)(1)(B), is amended by
                    striking ``and'' at the end of paragraph (2), by
                    striking the period at the end of paragraph (3) and
                    inserting ``, and'', and by inserting after paragraph
                    (3) the following new paragraph:
                ``(4) the portion of payments that are qualified overtime
            compensation (as defined in section 225(c)).''.

        (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 (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 225(d) (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, <<NOTE: 26 USC prec. 211.>>  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) <<NOTE: Procedures. Effective date. 26 USC 3402 note.>>
    Withholding.--The Secretary of the Treasury (or the Secretary's
    delegate) shall modify the procedures prescribed under section 3402(a)
    of the Internal Revenue Code of 1986 for taxable years beginning after
    December 31, 2025, to take into account the deduction allowed under
    section 225 of such Code (as added by this Act).

        (g) <<NOTE: 26 USC 63 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2024.

        (h) <<NOTE: Time periods. 26 USC 6041 note.>>  Transition Rule.--In
    the case of qualified overtime compensation required to be reported for
    periods before January 1, 2026, persons required to file returns or
    statements under section 6051(a)(19), 6041(a), or 6041(d)(4) of the
    Internal Revenue Code of 1986 (as amended by this section) may
    approximate a separate

    [[Page 139 STAT. 176]]

    accounting of amounts designated as qualified overtime compensation by
    any reasonable method specified by the Secretary.
    SEC. 70203. 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) <<NOTE: Definitions.>>  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 loan incurred for the
                                    purchase of a commercial vehicle that is
                                    not used for personal purposes.
                                        ``(III) Any lease financing.
                                        ``(IV) A loan to finance the
                                    purchase of a vehicle with a salvage
                                    title.
                                        ``(V) A loan to finance the purchase
                                    of a vehicle intended to be used for
                                    scrap or parts.
                              ``(iii) VIN requirement.--Interest shall not
                          be treated as qualified passenger vehicle loan
                          interest under this paragraph unless the taxpayer
                          includes the vehicle identification number of the
                          applicable passenger vehicle described in clause
                          (i) on the return of tax for the taxable year.
                        ``(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

    [[Page 139 STAT. 177]]

                                    of the taxpayer for the taxable year
                                    increased by any amount excluded from
                                    gross income under section 911, 931, or
                                    933.
                        ``(D) Applicable passenger vehicle.--The term
                    `applicable passenger vehicle' means any vehicle--
                              ``(i) the original use of which commences with
                          the taxpayer,
                              ``(ii) which is manufactured primarily for use
                          on public streets, roads, and highways (not
                          including a vehicle operated exclusively on a rail
                          or rails),
                              ``(iii) which has at least 2 wheels,
                              ``(iv) which is a car, minivan, van, sport
                          utility vehicle, pickup truck, or motorcycle,
                              ``(v) which is treated as a motor vehicle for
                          purposes of title II of the Clean Air Act, and
                              ``(vi) which has a gross vehicle weight rating
                          of less than 14,000 pounds.
                    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) 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 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.
                              ``(ii) 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.
                              ``(iii) 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 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 (5), by striking the period at the end of
    paragraph (6) and inserting ``and'', and by adding at the end the
    following new paragraph:
                ``(7) 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:

    [[Page 139 STAT. 178]]

    ``SEC. 6050AA. <<NOTE: 26 USC 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, model, and vehicle
                    identification number 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 <<NOTE: Deadline.>>  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) <<NOTE: Guidance.>>  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

    [[Page 139 STAT. 179]]

    guidance to prevent the duplicate reporting of information under this
    section.

        ``(f) Applicability.--No return shall be required under this section
    for any period to which section 163(h)(4) does not apply.''.
                (2) Penalties.--Section 6724(d) is amended--
                        (A) in paragraph (1)(B), by striking ``or'' at the
                    end of clause (xxvii), by striking ``and'' at the end of
                    clause (xxviii) and inserting ``or'', and by adding at
                    the end the following new clause:
                              ``(xxix) section 6050AA(a) (relating to
                          returns relating to applicable passenger vehicle
                          loan interest received in trade or business from
                          individuals),'', and
                        (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(c) (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) The table of sections for subpart B of part III of
            subchapter A of chapter 61 <<NOTE: 26 USC prec. 6041.>>  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) <<NOTE: 26 USC 56 note.>>  Effective Date.--The amendments made
    by this section shall apply to indebtedness incurred after December 31,
    2024.
    SEC. 70204. TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM.

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

    ``PART IX-- <<NOTE: 26 USC prec. 530A.>> TRUMP ACCOUNTS

    ``Sec. 530A. Trump accounts.

    ``SEC. 530A. <<NOTE: Definitions. 26 USC 530A.>> TRUMP ACCOUNTS.

        ``(a) General Rule.--Except as provided in this section or under
    regulations or guidance established by the Secretary, a Trump account
    shall be treated for purposes of this title in the same manner as an
    individual retirement account under section 408(a).
        ``(b) Trump Account.--For purposes of this section--
                ``(1) In general.--The term `Trump account' means an
            individual retirement account (as defined in section 408(a))
            which is not designated as a Roth IRA and which meets the
            following requirements:
                        ``(A) The account--
                              ``(i) is created or organized by the Secretary
                          for the exclusive benefit of an eligible
                          individual or such eligible individual's
                          beneficiaries, or
                              ``(ii) is--
                                        ``(I) created or organized in the
                                    United States for the exclusive benefit
                                    of an individual who has

    [[Page 139 STAT. 180]]

                                    not attained the age of 18 before the
                                    end of the calendar year, or such
                                    individual's beneficiaries, and
                                        ``(II) funded by a qualified
                                    rollover contribution.
                        ``(B) The account is designated (in such manner as
                    the Secretary shall prescribe) at the time of the
                    establishment of the account as a Trump account.
                        ``(C) The written governing instrument creating the
                    account meets the following requirements:
                              ``(i) No contribution will be accepted--
                                        ``(I) before the date that is 12
                                    months after the date of the enactment
                                    of this section, or
                                        ``(II) in the case of a contribution
                                    made in any calendar year before the
                                    calendar year in which the account
                                    beneficiary attains age 18, if such
                                    contribution would result in aggregate
                                    contributions (other than exempt
                                    contributions) for such calendar year in
                                    excess of the contribution limit
                                    specified in subsection (c)(2)(A).
                              ``(ii) Except as provided in subsection (d),
                          no distribution will be allowed before the first
                          day of the calendar year in which the account
                          beneficiary attains age 18.
                              ``(iii) No part of the account funds will be
                          invested in any asset other than an eligible
                          investment during any period before the first day
                          of the calendar year in which the account
                          beneficiary attains age 18.
                ``(2) Eligible individual.--The term `eligible individual'
            means any individual--
                        ``(A) who has not attained the age of 18 before the
                    close of the calendar year in which the election under
                    subparagraph (C) is made,
                        ``(B) for whom a social security number (within the
                    meaning of section 24(h)(7)) has been issued before the
                    date on which an election under subsection (C) is made,
                    and
                        ``(C) for whom--
                              ``(i) an election is made under this
                          subparagraph by the Secretary if the Secretary
                          determines (based on information available to the
                          Secretary from tax returns or otherwise) that such
                          individual meets the requirements of subparagraphs
                          (A) and (B) and no prior election has been made
                          for such individual under clause (ii), or
                              ``(ii) an election is made under this
                          subparagraph by a person other than the Secretary
                          (at such time and in such manner as the Secretary
                          may prescribe) for the establishment of a Trump
                          account if no prior election has been made for
                          such individual under clause (i).
                ``(3) Eligible investment.--
                        ``(A) In general.--The term `eligible investment'
                    means any mutual fund or exchange traded fund which--
                              ``(i) tracks the returns of a qualified index,
                              ``(ii) does not use leverage,

    [[Page 139 STAT. 181]]

                              ``(iii) does not have annual fees and expenses
                          of more than 0.1 percent of the balance of the
                          investment in the fund, and
                              ``(iv) meets such other criteria as the
                          Secretary determines appropriate for purposes of
                          this section.
                        ``(B) Qualified index.--The term `qualified index'
                    means--
                              ``(i) the Standard and Poor's 500 stock market
                          index, or
                              ``(ii) any other index--
                                        ``(I) which is comprised of equity
                                    investments in primarily United States
                                    companies, and
                                        ``(II) for which regulated futures
                                    contracts (as defined in section
                                    1256(g)(1)) are traded on a qualified
                                    board or exchange (as defined in section
                                    1256(g)(7)).
                          Such term shall not include any industry or
                          sector-specific index, but may include an index
                          based on market capitalization.
                ``(4) Account beneficiary.--The term `account beneficiary'
            means the individual on whose behalf the Trump account was
            established.

        ``(c) Treatment of Contributions.--
                ``(1) No deduction allowed.--No deduction shall be allowed
            under section 219 for any contribution which is made before the
            first day of the calendar year in which the account beneficiary
            attains age 18.
                ``(2) Contribution limit.--In the case of any contribution
            made before the calendar year in which the account beneficiary
            attains age 18--
                        ``(A) In general.--The aggregate amount of
                    contributions (other than exempt contributions) for such
                    calendar year shall not exceed $5,000.
                        ``(B) Exempt contribution.--For purposes of this
                    paragraph, the term `exempt contribution' means--
                              ``(i) a qualified rollover contribution,
                              ``(ii) any qualified general contribution, or
                              ``(iii) any contribution provided under
                          section 6434.
                        ``(C) Cost-of-living adjustment.--
                              ``(i) In general.--In the case of any taxable
                          year after 2027, the $5,000 amount under
                          subparagraph (A) 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 the taxable year
                                    begins, determined by substituting
                                    `calendar year 2026' for `calendar year
                                    2016' in subparagraph (A)(ii) thereof.
                              ``(ii) Rounding.--If any increase under this
                          subparagraph is not a multiple of $100, such
                          amount shall be rounded to the next lowest
                          multiple of $100.
                ``(3) Timing of contributions.--Section 219(f)(3) shall not
            apply to any contribution made to a Trump account for any
            taxable year ending before the calendar year in which the
            account beneficiary attains age 18.

        ``(d) Distributions.--

    [[Page 139 STAT. 182]]

                ``(1) In general.--Except as otherwise provided in this
            subsection, no distribution shall be allowed before the first
            day of the calendar year in which the account beneficiary
            attains age 18.
                ``(2) Tax treatment of allowable distributions.--For
            purposes of applying section 72 to any amount distributed from a
            Trump account, the investment in the contract shall not
            include--
                        ``(A) any qualified general contribution,
                        ``(B) any contribution provided under section 6434,
                    and
                        ``(C) the amount of any contribution which is
                    excluded from gross income under section 128.
                ``(3) Qualified rollover contributions.--Paragraph (1) shall
            not apply to any distribution which is a qualified rollover
            contribution and the amount of such distribution shall not be
            included in the gross income of the beneficiary.
                ``(4) Qualified able rollover contributions.--
                        ``(A) In general.--Paragraph (1) shall not apply to
                    any distribution which is a qualified ABLE rollover
                    contribution and the amount of such distribution shall
                    not be included in the gross income of the beneficiary.
                        ``(B) Qualified able rollover contribution.--For
                    purposes of this section, the term `qualified ABLE
                    rollover contribution' means an amount which is paid
                    during the calendar year in which the account
                    beneficiary attains age 17 in a direct trustee-to-
                    trustee transfer from a Trump account maintained for the
                    benefit of the account beneficiary to an ABLE account
                    (as defined in section 529A(e)(6)) for the benefit of
                    the such account beneficiary, but only if the amount of
                    such payment is equal to the entire balance of the Trump
                    account from which the payment is made.
                ``(5) Distributions of excess contributions.--In the case of
            any contribution which is made before the calendar year in which
            the account beneficiary attains age 18 and which is in excess of
            the limitation in effect under subsection (c)(2)(A) for the
            calendar year--
                        ``(A) paragraph (1) shall not apply to the
                    distribution of such excess,
                        ``(B) the amount of such distribution shall not be
                    included in gross income of the account beneficiary, and
                        ``(C) the tax imposed by this chapter on the
                    distributee for the taxable year in which the
                    distribution is made shall be increased by 100 percent
                    of the amount of net income attributable to such excess
                    (determined without regard to subparagraph (B)).
                ``(6) Treatment of death of account beneficiary.--If, by
            reason of the death of the account beneficiary before the first
            day of the calendar year in which the account beneficiary
            attains age 18, any person acquires the account beneficiary's
            interest in the Trump account--
                        ``(A) paragraph (1) shall not apply,
                        ``(B) such account shall cease to be a Trump account
                    as of the date of death, and
                        ``(C) an amount equal to the fair market value of
                    the assets (reduced by the investment in the contract)
                    in such account on such date shall--

    [[Page 139 STAT. 183]]

                              ``(i) if such person is not the estate of such
                          beneficiary, be includible in such person's gross
                          income for the taxable year which includes such
                          date, or
                              ``(ii) if such person is the estate of such
                          beneficiary, be includible in such beneficiary's
                          gross income for the last taxable year of such
                          beneficiary.

        ``(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, but only if the amount of such
    payment is equal to the entire balance of the Trump account from which
    the payment is made.
        ``(f) Qualified General Contribution.--For purposes of this
    section--
                ``(1) In general.--The term `qualified general contribution'
            means any contribution which--
                        ``(A) is made by the Secretary pursuant to a general
                    funding contribution,
                        ``(B) is made to the Trump account of an account
                    beneficiary in the qualified class of account
                    beneficiaries specified in the general funding
                    contribution, and
                        ``(C) is in an amount which is equal to the ratio
                    of--
                              ``(i) the amount of such general funding
                          contribution, to
                              ``(ii) the number of account beneficiaries in
                          such qualified class.
                ``(2) General funding contribution.--The term `general
            funding contribution' means a contribution which--
                        ``(A) is made by--
                              ``(i) an entity described in section 170(c)(1)
                          (other than a possession of the United States or a
                          political subdivision thereof) or an Indian tribal
                          government, or
                              ``(ii) an organization described in section
                          501(c)(3) and exempt from tax under section
                          501(a), and
                        ``(B) which specifies a qualified class of account
                    beneficiaries to whom such contribution is to be
                    distributed.
                ``(3) Qualified class.--
                        ``(A) In general.--The term `qualified class' means
                    any of the following:
                              ``(i) All account beneficiaries who have not
                          attained the age of 18 before the close of the
                          calendar year in which the contribution is made.
                              ``(ii) All account beneficiaries who have not
                          attained the age of 18 before the close of the
                          calendar year in which the contribution is made
                          and who reside in one or more States or other
                          qualified geographic areas specified by the terms
                          of the general funding contribution.
                              ``(iii) All account beneficiaries who have not
                          attained the age of 18 before the close of the
                          calendar year in which the contribution is made
                          and who were born in one or more calendar years
                          specified by the terms of the general funding
                          contribution.
                        ``(B) Qualified geographic area.--The term
                    `qualified geographic area' means any geographic area in
                    which not

    [[Page 139 STAT. 184]]

                    less than 5,000 account beneficiaries reside and which
                    is designated by the Secretary as a qualified geographic
                    area under this subparagraph.

        ``(g) Trustee Selection.--In the case of any Trump account created
    or organized by the Secretary, the Secretary shall take into account the
    following criteria in selecting the trustee:
                ``(1) The history of reliability and regulatory compliance
            of the trustee.
                ``(2) The customer service experience of the trustee.
                ``(3) The costs imposed by the trustee on the account or the
            account beneficiary.

        ``(h) Other Special Rules and Coordination With Individual
    Retirement Account Rules.--
                ``(1) In general.--The rules of subsections (k) and (p) of
            section 408 shall not apply to a Trump account, and the rules of
            subsections (d) and (i) of section 408 shall not apply to a
            Trump account for any taxable year beginning before the calendar
            year in which the account beneficiary attains age 18.
                ``(2) Custodial accounts.--In the case of a Trump account,
            section 408(h) shall be applied by substituting `a Trump account
            described in section 530A(b)(1)' for `an individual retirement
            account described in subsection (a)'.
                ``(3) Contributions.--In the case of any taxable year
            beginning before the first day of the calendar year in which the
            account beneficiary attains age 18, a contribution to a Trump
            account shall not be taken into account in applying any
            contribution limit to any individual retirement plan other than
            a Trump account.
                ``(4) Distributions.--Section 408(d)(2) shall be applied
            separately with respect to Trump Accounts and other individual
            retirement plans.
                ``(5) Excess contributions.--For purposes of applying
            section 4973(b) to a Trump account for any taxable year
            beginning before the first day of the calendar year in which the
            account beneficiary attains age 18, the term `excess
            contributions' means the sum of--
                        ``(A) the amount by which the amount contributed to
                    the account for the calendar year in which taxable year
                    begins exceeds the amount permitted to be contributed to
                    the account under subsection (c)(2), and
                        ``(B) the amount determined under this paragraph for
                    the preceding taxable year.
            For purposes of this paragraph, the excess contributions for a
            taxable year are reduced by the distributions to which
            subsection (d)(5) applies that are made during the taxable year
            or by the date prescribed by law (including extensions of time)
            for filing the account beneficiary's return for the taxable
            year.

        ``(i) Reports.--
                ``(1) In general.--The trustee of a Trump account shall make
            such reports regarding such account to the Secretary and to the
            beneficiary of the account at such time and in such manner as
            may be required by the Secretary. Such reports shall include
            information with respect to--
                        ``(A) contributions (including the amount and source
                    of any contribution in excess of $25 made from a person

    [[Page 139 STAT. 185]]

                    other than the Secretary, the account beneficiary, or
                    the parent or legal guardian of the account
                    beneficiary),
                        ``(B) distributions (including distributions which
                    are qualified rollover contributions),
                        ``(C) the fair market value of the account,
                        ``(D) the investment in the contract with respect to
                    such account, and
                        ``(E) such other matters as the Secretary may
                    require.
                ``(2) Qualified rollover contributions.--Not later than 30
            days after the date of any qualified rollover contribution, the
            trustee of the Trump account to which the contribution was made
            shall make a report to the Secretary. Such report shall
            include--
                        ``(A) the name, address, and social security number
                    of the account beneficiary,
                        ``(B) the name and address of such trustee,
                        ``(C) the account number,
                        ``(D) the routing number of the trustee, and
                        ``(E) such other information as the Secretary may
                    require.
                ``(3) Period of reporting.--This subsection shall not apply
            to any period after the calendar year in which the beneficiary
            attains age 17.''.
                (2) Qualified able rollover contributions exempt from able
            contribution limitation.--
                        (A) In general.--Section 529A(b)(2)(B) is amended by
                    inserting ``or received in a qualified ABLE rollover
                    contribution described in section 530A(d)(4)(B)'' after
                    ``except as provided in the case of contributions under
                    subsection (c)(1)(C)''.
                        (B) Prohibition on excess contributions.--The second
                    sentence of section 529A(b)(6) is amended by inserting
                    ``but do not include any contributions received in a
                    qualified ABLE rollover contribution described in
                    section 530A(d)(4)(B)'' before the period at the end.
                        (C) Conforming amendment.--Section 4973(h)(1) is
                    amended by inserting ``or contributions received in a
                    qualified ABLE rollover contribution described in
                    section 530A(d)(4)(B)'' after ``other than contributions
                    under section 529A(c)(1)(C)''.
                (3) Failure to provide reports on trump accounts.--Section
            6693(a)(2) is amended by striking ``and'' at the end of
            subparagraph (E), by striking the period at the end of
            subparagraph (F) and inserting ``, and'', and by inserting after
            subparagraph (F) the following new subparagraph:
                        ``(G) section 530A(i) (relating to Trump
                    accounts).''.
                (4) Clerical amendment.--
                        (A) The table of parts for subchapter F of chapter 1
                    is amended <<NOTE: 26 USC prec. 501.>>  by adding at the
                    end the following new item:

                          ``PART IX--Trump Accounts''.

        (b) Employer Contributions.--
                (1) In general.--Part III of subchapter B of chapter 1 is
            amended by inserting after section 127 the following new
            section:

    [[Page 139 STAT. 186]]

    ``SEC. 128. <<NOTE: 26 USC 128.>>  EMPLOYER CONTRIBUTIONS TO TRUMP
                            ACCOUNTS.

        ``(a) In General.--Gross income of an employee does not include
    amounts paid by the employer as a contribution to the Trump account of
    such employee or of any dependent of such employee if the amounts are
    paid or incurred pursuant to a program which is described in subsection
    (c).
        ``(b) Limitation.--
                ``(1) In general.--The amount which may be excluded under
            subsection (a) with respect to any employee shall not exceed
            $2,500.
                ``(2) Inflation adjustment.--
                        ``(A) <<NOTE: Effective date.>>  In general.--In the
                    case of any taxable year beginning after 2027, the
                    $2,500 amount in paragraph (1) shall be increased by an
                    amount equal to--
                              ``(i) such dollar amount, multiplied by
                              ``(ii) the cost-of-living adjustment
                          determined under section 1(f)(3) for the calendar
                          year in which the taxable year begins by
                          substituting `calendar year 2026' for `calendar
                          year 2016' in subparagraph (A)(ii) thereof.
                        ``(B) Rounding.--If any increase determined under
                    subparagraph (A) is not a multiple of $100, such
                    increase shall be rounded to the next lowest multiple of
                    $100.

        ``(c) Trump Account Contribution Program.--For purposes of this
    section, a Trump account contribution program is a separate written plan
    of an employer for the exclusive benefit of his employees to provide
    contributions to the Trump accounts of such employees or dependents of
    such employees which meets requirements similar to the requirements of
    paragraphs (2), (3), (6), (7), and (8) of section 129(d).''.
                (2) Clerical amendment.--The table of sections for part III
            of subchapter B of chapter 1 <<NOTE: 26 USC prec. 101.>>  is
            amended by inserting after the item relating to section 127 the
            following new item:

    ``Sec. 128. Employer contributions to Trump accounts.''.

        (c) Certain Contributions Excluded From Gross Income.--
                (1) In general.--Part III of subchapter B of chapter 1 is
            amended by inserting before section 140 the following new
            section:
    ``SEC. 139J. <<NOTE: 26 USC 139J.>>  CERTAIN CONTRIBUTIONS TO
                              TRUMP ACCOUNTS.

        ``(a) In General.--Gross income of an account beneficiary shall not
    include any qualified general contribution to a Trump account of the
    account beneficiary.
        ``(b) Definitions.--Any term used in this section which is used in
    section 530A shall have the meaning given such term under section
    530A.''.
                (2) Clerical amendment.--The table of sections for part III
            of subchapter B is amended <<NOTE: 26 USC prec. 101.>>  by
            inserting before the item relating to section 140 the following
            new item:

    ``Sec. 139J. Certain contributions to Trump accounts.''.

        (d) Trump Accounts Contribution Pilot Program.--
                (1) In general.--Subchapter B of chapter 65 is amended by
            adding at the end the following new section:

    [[Page 139 STAT. 187]]

    ``SEC. 6434. <<NOTE: 26 USC 6434.>>  TRUMP ACCOUNTS CONTRIBUTION
                              PILOT PROGRAM.

        ``(a) In General.--In the case of an individual who makes an
    election under this section with respect to an eligible child of the
    individual, such eligible child shall be treated as making a payment
    against the tax imposed by subtitle A (for the taxable year for which
    the election was made) in an amount equal to $1,000.
        ``(b) Refund of Payment.--The amount treated as a payment under
    subsection (a) shall be paid by the Secretary to the Trump account with
    respect to which such eligible child is the account beneficiary.
        ``(c) <<NOTE: Definition.>>  Eligible Child.--For purposes of this
    section, the term `eligible child' means a qualifying child (as defined
    in section 152(c))--
                ``(1) who is born after December 31, 2024, and before
            January 1, 2029,
                ``(2) with respect to whom no prior election has been made
            under this section by such individual or any other individual,
            and
                ``(3) who is a United States citizen.

        ``(d) Election.--An election under this section shall be made at
    such time and in such manner as the Secretary shall provide.
        ``(e) Social Security Number Required.--
                ``(1) In general.--This section shall not apply to any
            taxpayer unless such individual includes with the election made
            under this section the social security number of the eligible
            child with respect to whom the election is made.
                ``(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), determined by
            substituting `before the date of the election made under section
            6434' for `before the due date of such return' in subparagraph
            (B) thereof.

        ``(f) Exception From Reduction or Offset.--Any payment made to any
    individual under this section shall not be--
                ``(1) subject to reduction or offset pursuant to subsection
            (c), (d), (e), or (f) of section 6402 or any similar authority
            permitting offset, or
                ``(2) reduced or offset by other assessed Federal taxes that
            would otherwise be subject to levy or collection.

        ``(g) <<NOTE: Effective date.>>  Special Rule Regarding Interest.--
    The period determined under section 6611(a) with respect to any payment
    under this section shall not begin before January 1, 2028.

        ``(h) Mirror Code Possessions.--In the case of any possession of the
    United States with a mirror code tax system (as defined in section
    24(k)), this section shall not be treated as part of the income tax laws
    of the United States for purposes of determining the income tax law of
    such possession unless such possession elects to have this section be so
    treated.
        ``(i) Definitions.--For purposes of this section, the terms `Trump
    account' and `account beneficiary' have the meaning given such terms in
    section 530A(b).''.
                (2) Penalty for negligent claim or fraudulent claim.--Part I
            of subchapter A of chapter 68 is amended by adding at the end
            the following new section:

    [[Page 139 STAT. 188]]

    ``SEC. 6659. <<NOTE: 26 USC 6659.>>  IMPROPER CLAIM FOR TRUMP
                              ACCOUNT CONTRIBUTION PILOT PROGRAM
                              CREDIT.

        ``(a) In General.--In the case of any individual who makes an
    election under section 6434 with respect to an individual who is not an
    eligible child of the taxpayer--
                ``(1) if such election was made due to negligence or
            disregard of the rules or regulations, there shall be imposed a
            penalty of $500, or
                ``(2) if such election was made due to fraud, there shall be
            imposed a penalty of $1,000.

        ``(b) Definitions.--
                ``(1) Eligible child.--The term `eligible child' has the
            meaning given such term under section 6434.
                ``(2) Negligence; disregard.--The terms `negligence' and
            `disregard' have the same meaning as when such terms are used in
            section 6662.''.
                (3) 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 (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(e)(1) (relating to
                    the Trump accounts contribution pilot program).''.
                (4) Conforming amendments.--
                        (A) The table of sections for subchapter B of
                    chapter 65 <<NOTE: 26 USC prec. 6411.>>  is amended by
                    adding at the end the following new item:

    ``Sec. 6434. Trump accounts contribution pilot program.''.

                        (B) The table of sections for part I of subchapter A
                    of chapter 68 <<NOTE: 26 USC prec. 6651.>>  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) <<NOTE: 26 USC 128 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.

        (f) <<NOTE: Expiration date.>>  Funding.--In addition to amounts
    otherwise available, there is appropriated to the Department of the
    Treasury, out of any money in the Treasury not otherwise appropriated,
    $410,000,000, to remain available until September 30, 2034, to carry out
    the amendments made by this section.

     CHAPTER 3--ESTABLISHING CERTAINTY AND COMPETITIVENESS FOR AMERICAN JOB
                                    CREATORS

     Subchapter A--Permanent U.S. Business Tax Reform and Boosting Domestic
                                   Investment

    SEC. 70301. <<NOTE: Applicability.>> FULL EXPENSING FOR CERTAIN
                                BUSINESS PROPERTY.

        (a) Made Permanent.--
                (1) In general.--Section 168(k)(2)(A) is amended by adding
            ``and'' at the end of clause (i), by striking ``, and'' at the
            end of clause (ii) and inserting a period, and by striking
            clause (iii).

    [[Page 139 STAT. 189]]

                (2) Property with longer production periods.--Section
            168(k)(2)(B) is amended--
                        (A) in clause (i), by striking subclauses (II) and
                    (III) and redesignating subclauses (IV), (V), and (VI),
                    as subclauses (II), (III), and (IV), respectively, and
                        (B) by striking clause (ii) and redesignating
                    clauses (iii) and (iv) as clauses (ii) and (iii),
                    respectively.
                (3) Self-constructed property.--Section 168(k)(2)(E) is
            amended by striking clause (i) and redesignating clauses (ii)
            and (iii) as clauses (i) and (ii), respectively.
                (4) Certain plants.--Section 168(k)(5)(A) is amended by
            striking ``planted before January 1, 2027, or is grafted before
            such date to a plant that has already been planted,'' in the
            matter preceding clause (i) and inserting ``planted or
            grafted''.
                (5) Conforming amendments.--
                        (A) Section 168(k)(2)(A)(ii) is amended by striking
                    ``clause (ii) of subparagraph (E)'' and inserting
                    ``clause (i) of subparagraph (E)''.
                        (B) Section 168(k)(2)(C)(i) is amended by striking
                    ``and subclauses (II) and (III) of subparagraph
                    (B)(i)''.
                        (C) Section 168(k)(2)(C)(ii) is amended by striking
                    ``subparagraph (B)(iii)'' and inserting ``subparagraph
                    (B)(ii)''.
                        (D) 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.''.

        (b) 100 Percent Expensing.--
                (1) In general.--Section 168(k) is amended--
                        (A) in paragraph (1)(A), by striking ``the
                    applicable percentage'' and inserting ``100 percent'',
                    and
                        (B) by striking paragraphs (6) and (8).
                (2) Certain plants.--Section 168(k)(5)(A)(i) is amended by
            striking ``the applicable percentage'' and inserting ``100
            percent''.
                (3) <<NOTE: Time period.>> Transitional election of reduced
            percentage.--Section 168(k)(10) 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 the case of qualified property
                    placed in service by the taxpayer during the first
                    taxable year ending after January 19, 2025, if the
                    taxpayer elects to have this paragraph apply for such
                    taxable year, paragraph (1)(A) shall be applied--
                              ``(i) in the case of property which is not
                          described in clause (ii), by substituting `40
                          percent' for `100 percent', or
                              ``(ii) in the case of property which is
                          described in subparagraph (B) or (C) of paragraph
                          (2), by substituting `60 percent' for `100
                          percent'.
                        ``(B) Specified plants.--In the case of any
                    specified plant planted or grafted by the taxpayer
                    during the first taxable year ending after January 19,
                    2025, if the taxpayer elects to have this paragraph
                    apply for such taxable year, paragraph (5)(A)(i) shall
                    be applied by substituting `40 percent' for `100
                    percent'.''.

        (c) <<NOTE: 26 USC 168 note.>>  Effective Date.--

    [[Page 139 STAT. 190]]

                (1) In general.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply to
            property acquired after January 19, 2025.
                (2) Specified plants.--Except as provided in paragraph (3),
            in the case of any specified plant (as defined in section
            168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by
            this section), the amendments made by this section shall apply
            to such plants which are planted or grafted after January 19,
            2025.
                (3) Transitional election of reduced percentage.--The
            amendment made by subsection (b)(3) shall apply to taxable years
            ending after January 19, 2025.
                (4) Acquisition date determination.--For purposes of
            paragraph (1), property shall not be treated as acquired after
            the date on which a written binding contract is entered into for
            such acquisition.
    SEC. 70302. FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL
                                EXPENDITURES.

        (a) In General.--Part VI of subchapter B of chapter 1 is amended by
    inserting after section 174 the following new section:
    ``SEC. 174A. <<NOTE: 26 USC 174A.>>  DOMESTIC RESEARCH OR
                              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 <<NOTE: Definition.>>  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 or 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) <<NOTE: Time period.>>  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 month in
                    which the taxpayer first realizes benefits from such
                    expenditures).
                ``(2) <<NOTE: Deadline.>>  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). <<NOTE: Approval.>> 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

    [[Page 139 STAT. 191]]

            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.''.

        (b) Coordination With Certain Other Provisions.--
                (1) Foreign research expenses.--Section 174 is amended--
                        (A) in subsection (a)--
                              (i) by striking ``a taxpayer's specified
                          research or experimental expenditures'' and
                          inserting ``a taxpayer's foreign research or
                          experimental expenditures'', and
                              (ii) by striking ``over the 5-year period (15-
                          year period in the case of any specified research
                          or experimental expenditures which are
                          attributable to foreign research (within the
                          meaning of section 41(d)(4)(F)))'' in paragraph
                          (2)(B) and inserting ``over the 15-year period'',
                        (B) in subsection (b)--
                              (i) by striking ``specified research'' and
                          inserting ``foreign research'',
                              (ii) by inserting ``and which are attributable
                          to foreign research (within the meaning of section
                          41(d)(4)(F))'' before the period at the end, and
                              (iii) by striking ``Specified'' in the heading
                          thereof and inserting ``Foreign'', and
                        (C) in subsection (d)--
                              (i) by striking ``specified research or
                          experimental expenditures'' and inserting
                          ``foreign research or experimental expenditures'',
                          and
                              (ii) by inserting ``or reduction to amount
                          realized'' after ``no deduction''.
                (2) Research credit.--
                        (A) Section 41(d)(1)(A) is amended to read as
                    follows:
                        ``(A) with respect to which expenditures are treated
                    as domestic research or experimental expenditures under
                    section 174A,''.
                        (B) Section 280C(c)(1) is amended to read as
                    follows:

    [[Page 139 STAT. 192]]

                ``(1) <<NOTE: Reduction.>>  In general.--The domestic
            research or experimental expenditures (as defined in section
            174A(b)) otherwise taken into account as a deduction or charged
            to capital account under this chapter shall be reduced by the
            amount of the credit allowed under section 41(a).''.
                (3) AMT adjustment.--Section 56(b)(2) is amended--
                        (A) in subparagraph (A)--
                              (i) by striking ``or 174(a)'' in the matter
                          preceding clause (i) and inserting ``, 174(a), or
                          174A(a)'', and
                              (ii) by striking ``research and experimental
                          expenditures described in section 174(a)'' in
                          clause (ii) thereof and inserting ``foreign
                          research or experimental expenditures described in
                          section 174(a) and domestic research or
                          experimental expenditures in section 174A(a)'',
                          and
                        (B) in subparagraph (C), by inserting ``or 174A(a)''
                    after ``174(a)''.
                (4) 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 domestic research or experimental expenditures)''.
                (5) Qualified small issue bonds.--Section 144(a)(4)(C)(iv)
            is amended by striking ``174(a)'' and inserting ``174A(a)''.
                (6) Start-up expenditures.--Section 195(c)(1) is amended by
            striking ``or 174'' in the last sentence and inserting ``174, or
            174A''.
                (7) 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''.
                (8) Active business computer software royalties.--Section
            543(d)(4)(A)(i) is amended by inserting ``174A,'' after
            ``174,''.
                (9) Source rules.--Section 864(g)(2) is amended--
                        (A) by striking ``research and experimental
                    expenditures within the meaning of section 174'' in the
                    first sentence and inserting ``foreign research or
                    experimental expenditures within the meaning of section
                    174 or domestic research or experimental expenditures
                    within the meaning of section 174A'', and
                        (B) in the last sentence--
                              (i) 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
                              (ii) by striking ``such subsection'' and
                          inserting ``such section (as the case may be)''.
                (10) 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)''.
                (11) Small business stock.--Section 1202(e)(2)(B) is amended
            by striking ``which may be treated as research and experimental
            expenditures under section 174'' and inserting ``which are
            treated as foreign research or experimental expenditures under
            section 174 or domestic research or experimental expenditures
            under section 174A''.

    [[Page 139 STAT. 193]]

        (c) <<NOTE: Applicability. Effective dates. 26 USC 174A note.>>
    Change in Method of Accounting.--
                (1) In general.--The amendments made by subsection (a) shall
            be treated as a change in method of accounting for purposes of
            section 481 of the Internal Revenue Code of 1986 and--
                        (A) such change shall be treated as initiated by the
                    taxpayer,
                        (B) such change shall be treated as made with the
                    consent of the Secretary, and
                        (C) such change shall be applied only on a cut-off
                    basis for any domestic research or experimental
                    expenditures (as defined in section 174A(b) of such Code
                    (as added by this section) and determined by applying
                    the rules of section 174A(d) of such Code) paid or
                    incurred in taxable years beginning after December 31,
                    2024, and no adjustments under section 481(a) shall be
                    made.
                (2) Special rules.--In the case of a taxable year which
            begins after December 31, 2024, and ends before the date of the
            enactment of this Act--
                        (A) paragraph (1)(C) shall not apply, and
                        (B) the change in method of accounting under
                    paragraph (1) shall be applied on a modified cut-off
                    basis, taking into account for purposes of section
                    481(a) of such Code only the domestic research or
                    experimental expenditures (as defined in section 174A(b)
                    of such Code (as added by this section) and determined
                    by applying the rules of section 174A(d) of such Code)
                    paid or incurred in such taxable year but not allowed as
                    a deduction in such taxable year.

        (d) Clerical Amendment.--The table of sections for part VI of
    subchapter B of chapter 1 is amended <<NOTE: 26 USC prec. 161.>>  by
    inserting after the item relating to section 174 the following new item:

    ``Sec. 174A. Domestic research or experimental expenditures.''.

        (e) <<NOTE: Applicability. 26 USC 174A note.>>  Effective Date.--
                (1) In general.--Except as otherwise provided in this
            subsection or subsection (f)(1), 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.--
                        (A) In general.--The amendment by subsection
                    (b)(1)(C)(ii) shall apply to property disposed, retired,
                    or abandoned after May 12, 2025.
                        (B) No inference.--The amendment made by subsection
                    (b)(1)(C)(ii) shall not be construed to create any
                    inference with respect to the proper application of
                    section 174(d) of the Internal Revenue Code of 1986 with
                    respect to taxable years beginning before May 13, 2025.
                (3) Coordination with research credit.--The amendment made
            by subsection (b)(2)(B) shall apply to taxable years beginning
            after December 31, 2024.
                (4) No inference with respect to coordination with research
            credit for prior periods.--The amendment made by subsection
            (b)(2)(B) 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.

    [[Page 139 STAT. 194]]

        (f) Transition Rules.--
                (1) Election for retroactive application by certain small
            businesses.--
                        (A) In general.--At the election of an eligible
                    taxpayer, paragraphs (1) and (3) of subsection (e) shall
                    each be applied by substituting ``December 31, 2021''
                    for ``December 31, 2024''. <<NOTE: Deadline.>> An
                    election made under this subparagraph shall be made in
                    such manner as the Secretary may provide and not later
                    than the date that is 1 year after the date of the
                    enactment of this Act. The taxpayer shall file an
                    amended return for each taxable year affected by such
                    election.
                        (B) <<NOTE: Definition.>>  Eligible taxpayer.--For
                    purposes of this paragraph, the term ``eligible
                    taxpayer'' means any taxpayer (other than a tax shelter
                    prohibited from using the cash receipts and
                    disbursements method of accounting under section
                    448(a)(3)) which meets the gross receipts test of
                    section 448(c) for the first taxable year beginning
                    after December 31, 2024.
                        (C) Election treated as change in method of
                    accounting.--In the case of any taxpayer which elects
                    the application of subparagraph (A)--
                              (i) such election may be treated as a change
                          in method of accounting for purposes of section
                          481 of such Code for the taxpayer's first taxable
                          year affected by such election,
                              (ii) such change shall be treated as initiated
                          by the taxpayer for such taxable year,
                              (iii) such change shall be treated as made
                          with the consent of the Secretary, and
                              (iv) subsection (c) shall not apply to such
                          taxpayer.
                        (D) Election regarding coordination with research
                    credit. <<NOTE: Effective date. Time period.>> --An
                    election under section 280C(c)(2) of the Internal
                    Revenue Code of 1986 (or revocation of such election)
                    for any taxable year beginning after December 31, 2021,
                    by an eligible taxpayer making an election under
                    subparagraph (A) shall not fail to be treated as timely
                    made (or as made on the return) if made during the 1-
                    year period beginning on the date of the enactment of
                    this Act on an amended return for such taxable year.
                (2) Election to deduct certain unamortized amounts paid or
            incurred in taxable years beginning before january 1, 2025.--
                        (A) <<NOTE: Time periods.>>  In general.--In the
                    case of any domestic research or experimental
                    expenditures (as defined in section 174A, as added by
                    subsection (a)) which are paid or incurred in taxable
                    years beginning after December 31, 2021, and before
                    January 1, 2025, and which was charged to capital
                    account, a taxpayer may elect--
                              (i) to deduct any remaining unamortized amount
                          with respect to such expenditures in the first
                          taxable year beginning after December 31, 2024, or
                              (ii) to deduct such remaining unamortized
                          amount with respect to such expenditures ratably
                          over the 2-taxable year period beginning with the
                          first taxable year beginning after December 31,
                          2024.

    [[Page 139 STAT. 195]]

                        (B) Change in method of accounting.--In the case of
                    a taxpayer who makes an election under this paragraph--
                              (i) such taxpayer shall be treated as
                          initiating a change in method of accounting for
                          purposes of section 481 of the Internal Revenue
                          Code of 1986 with respect to the expenditures to
                          which the election applies,
                              (ii) such change shall be treated as made with
                          the consent of the Secretary, and
                              (iii) <<NOTE: Applicability.>>  such change
                          shall be applied only on a cut-off basis for such
                          expenditures and no adjustments under section
                          481(a) shall be made.
                        (C) <<NOTE: Publication. Guidance. Time periods.>>
                    Regulations.--The Secretary of the Treasury (or the
                    Secretary's delegate) shall publish such guidance or
                    regulations as may be necessary to carry out the
                    purposes of this paragraph, including regulations or
                    guidance allowing for the deduction allowed under
                    subparagraph (A) in the case of taxpayers with taxable
                    years beginning after December 31, 2024, and ending
                    before the date of the enactment of this Act.
    SEC. 70303. MODIFICATION OF LIMITATION ON BUSINESS INTEREST.

        (a) In General.--Section 163(j)(8)(A)(v) is amended by striking ``in
    the case of taxable years beginning before January 1, 2022,''.
        (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) <<NOTE: 26 USC 163 note.>>  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) <<NOTE: Time period.>>  Special rule for short taxable
            years.--The Secretary of the Treasury (or the Secretary's
            delegate) 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. 70304. 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

    [[Page 139 STAT. 196]]

                    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. <<NOTE: Definition.>> --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'',
                        (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

    [[Page 139 STAT. 197]]

                (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) <<NOTE: 26 USC 45S note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70305. EXCEPTIONS FROM LIMITATIONS ON DEDUCTION FOR BUSINESS
                                MEALS.

        (a) Exception to Denial of Deduction for Business Meals.--Section
    274(o), as added by section 13304 of Public Law 115-97, is amended by
    striking ``No deduction'' and inserting ``Except in the case of an
    expense described in subsection (e)(8) or (n)(2)(C), no deduction''.
        (b) Meals Provided on Certain Fishing Boats and at Certain Fish
    Processing Facilities Not Subject to 50 Percent Limitation.--Section
    274(n)(2)(C) of the Internal Revenue Code of 1986 is amended by striking
    ``or'' at the end of clause (iii) and by adding at the end the following
    new clause:
                              ``(v) provided--
                                        ``(I) on a fishing vessel, fish
                                    processing vessel, or fish tender vessel
                                    (as such terms are defined in section
                                    2101 of title 46, United States Code),
                                    or
                                        ``(II) at a facility for the
                                    processing of fish for commercial use or
                                    consumption which--
                                                ``(aa) is located in the
                                            United States north of 50
                                            degrees north latitude, and
                                                ``(bb) is not located in a
                                            metropolitan statistical area
                                            (within the meaning of section
                                            143(k)(2)(B)), or''.

        (c) <<NOTE: 26 USC 274 note.>>  Effective Date.--The amendments made
    by this section shall apply to amounts paid or incurred after December
    31, 2025.
    SEC. 70306. 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

    [[Page 139 STAT. 198]]

                                        ``(II) in the case of the amount in
                                    paragraph (5)(A), `calendar year 2017'
                                    for `calendar year 2016'.''.

        (c) <<NOTE: 26 USC 179 note.>>  Effective Date.--The amendments made
    by this section shall apply to property placed in service in taxable
    years beginning after December 31, 2024.
    SEC. 70307. 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 of a taxpayer making an election under this
            subsection--
                        ``(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) <<NOTE: Reduction.>>  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) <<NOTE: Definition.>> 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) which is designated by the taxpayer in
                          the election made under this subsection, and
                              ``(vii) which is placed in service before
                          January 1, 2031.
                    For purposes of clause (ii), in the case of property
                    with respect to which the taxpayer is a lessor, property
                    used by a lessee shall not be considered to be used by
                    the taxpayer as part of a qualified production activity.
                        ``(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--
                                        ``(I) <<NOTE: Time period.>>  such
                                    property was not used in a qualified
                                    production activity (determined without
                                    regard to the second sentence of
                                    subparagraph (D)) by any

    [[Page 139 STAT. 199]]

                                    person at any time during the period
                                    beginning on January 1, 2021, and ending
                                    on May 12, 2025,
                                        ``(II) such property was not used by
                                    the taxpayer at any time prior to such
                                    acquisition, and
                                        ``(III) the acquisition of such
                                    property meets the requirements of
                                    paragraphs (2)(A), (2)(B), (2)(C), and
                                    (3) of section 179(d).
                              ``(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
                    development or engineering activities, or other
                    functions unrelated to the manufacturing, production, or
                    refining of tangible personal property.
                        ``(D) <<NOTE: Definition.>> 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) <<NOTE: Definition.>> Qualified product.--The
                    term `qualified product' means any tangible personal
                    property if such property is not a food or beverage
                    prepared in the same building as a retail establishment
                    in which such property is sold.
                        ``(G) <<NOTE: Applicability.>>  Syndication.--For
                    purposes of subparagraph (A)(iv), rules similar to the
                    rules of subsection (k)(2)(E)(iii) shall apply.
                        ``(H) Extension of placed in service date under
                    certain circumstances. <<NOTE: Determination.>> --The
                    Secretary may extend the date under subparagraph
                    (A)(vii) with respect to any property that meets the
                    requirements of clauses (i) through (vi) of subparagraph
                    (A) if the Secretary determines that an act of God (as
                    defined in section 101(1) of the Comprehensive
                    Environmental Response, Compensation, and Liability Act
                    of 1980) prevents the taxpayer from placing such
                    property in service before such date.
                ``(3) <<NOTE: Determination.>> 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.--

    [[Page 139 STAT. 200]]

                        ``(A) Other special depreciation allowances.--For
                    purposes of subsections (k)(7), (l)(3)(D), and
                    (m)(2)(B)(iii)--
                              ``(i) qualified production property shall be
                          treated as a separate class of property, and
                              ``(ii) the taxpayer shall be treated as having
                          made an election under such subsections with
                          respect to such class.
                        ``(B) Alternative depreciation property.--The term
                    `qualified production property' shall not include any
                    property to which the alternative depreciation system
                    under subsection (g)
                    applies. <<NOTE: Applicability.>> For purposes of
                    subsection (g)(7)(A), qualified production property to
                    which this subsection applies shall be treated as
                    separate nonresidential real property.
                ``(5) <<NOTE: Time period.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: Adjustment.>>  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) Election.--
                        ``(A) In general.--An election under this subsection
                    for any taxable year shall--
                              ``(i) specify the nonresidential real property
                          subject to the election and the portion of such
                          property designated under paragraph (2)(A)(vi),
                          and
                              ``(ii) except as otherwise provided by the
                          Secretary, be made on the taxpayer's return of the
                          tax imposed by this chapter for the taxable year.
                    Such election shall be made in such manner as the
                    Secretary may prescribe by regulations or other
                    guidance.
                        ``(B) Election.--Any election made under this
                    subsection, and any specification contained in any such
                    election, may not be revoked except with the consent of
                    the Secretary (and the Secretary shall provide such
                    consent only in extraordinary circumstances).
                ``(7) <<NOTE: Guidance.>>  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) providing rules for regarding what constitutes
                    substantial transformation of property which are
                    consistent with guidance provided under section 954(d),
                    and

    [[Page 139 STAT. 201]]

                        ``(B) <<NOTE: Applicability.>>  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) <<NOTE: 26 USC 168 note.>>  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. 70308. ENHANCEMENT OF ADVANCED MANUFACTURING INVESTMENT
                                CREDIT.

        (a) In General.--Section 48D(a) is amended by striking ``25
    percent'' and inserting ``35 percent''.
        (b) <<NOTE: 26 USC 48D note.>>  Effective Date.--The amendments made
    by this section shall apply to property placed in service after December
    31, 2025.
    SEC. 70309. SPACEPORTS ARE TREATED LIKE AIRPORTS UNDER EXEMPT
                                FACILITY BOND RULES.

        (a) In General.--Section 142(a)(1) is amended to read as follows:
                ``(1) airports and spaceports,''.

        (b) Treatment of Ground Leases.--Section 142(b)(1) is amended by
    adding at the end the following new subparagraph:
                        ``(C) Special rule for spaceport ground leases.--For
                    purposes of subparagraph (A), spaceport property located
                    on land leased by a governmental unit from the United
                    States shall not fail to be treated as owned by a
                    governmental unit if the requirements of this paragraph
                    are met by the lease and any subleases of the
                    property.''.

        (c) Definition of Spaceport.--Section 142 is amended by adding at
    the end the following new subsection:
        ``(p) Spaceport.--
                ``(1) In general.--For purposes of subsection (a)(1), the
            term `spaceport' means any facility located at or in close
            proximity to a launch site or reentry site used for--
                        ``(A) manufacturing, assembling, or repairing
                    spacecraft, space cargo, other facilities described in
                    this paragraph, or any component of the foregoing,
                        ``(B) flight control operations,
                        ``(C) providing launch services and reentry
                    services, or
                        ``(D) transferring crew, spaceflight participants,
                    or space cargo to or from spacecraft.
                ``(2) Additional terms.--For purposes of paragraph (1)--
                        ``(A) Space cargo.--The term `space cargo' includes
                    satellites, scientific experiments, other property
                    transported into space, and any other type of payload,
                    whether or not such property returns from space.
                        ``(B) Spacecraft.--The term `spacecraft' means a
                    launch vehicle or a reentry vehicle.
                        ``(C) Other terms.--The terms `launch site', `crew',
                    `space flight participant', `launch services', `launch
                    vehicle',

    [[Page 139 STAT. 202]]

                    `payload', `reentry services', `reentry site', a
                    `reentry vehicle' shall have the respective meanings
                    given to such terms by section 50902 of title 51, United
                    States Code (as in effect on the date of enactment of
                    this subsection).
                ``(3) Public use requirement.--A facility shall not be
            required to be available for use by the general public to be
            treated as a spaceport for purposes of this section.
                ``(4) Manufacturing facilities and industrial parks
            allowed.--With respect to spaceports, subsection (c)(2)(E) shall
            not apply to spaceport property described in paragraph
            (1)(A).''.

        (d) Exception From Federally Guaranteed Bond Prohibition.--Section
    149(b)(3) is amended by adding at the end the following new
    subparagraph:
                        ``(F) Exception for spaceports.--A bond shall not be
                    treated as federally guaranteed merely because of the
                    payment of rent, user fees, or other charges by the
                    United States (or any agency or instrumentality thereof)
                    in exchange for the use of the spaceport by the United
                    States (or any agency or instrumentality thereof).''.

        (e) Conforming Amendment.--The heading for section 142(c) is amended
    by inserting ``Spaceports,'' after ``Airports,''.
        (f) <<NOTE: 26 USC 142 note.>>  Effective Date.--The amendments made
    by this section shall apply to obligations issued after the date of the
    enactment of this Act.

         Subchapter B--Permanent America-first International Tax Reforms

                           PART I--FOREIGN TAX CREDIT

    SEC. 70311. MODIFICATIONS RELATED TO FOREIGN TAX CREDIT
                                LIMITATION.

        (a) Rules for Allocation of Certain Deductions to Foreign Source Net
    CFC Tested Income for Purposes of Foreign Tax Credit Limitation.--
    Section 904(b) is amended by adding at the end the following new
    paragraph:
                ``(5) Deductions treated as allocable to foreign source net
            cfc tested income.--Solely for purposes of the application of
            subsection (a) with respect to amounts described in subsection
            (d)(1)(A), the taxpayer's taxable income from sources without
            the United States shall be determined by allocating and
            apportioning--
                        ``(A) any deduction allowed under section
                    250(a)(1)(B) (and any deduction allowed under section
                    164(a)(3) for taxes imposed on amounts described in
                    section 250(a)(1)(B)) to such income,
                        ``(B) no amount of interest expense or research and
                    experimental expenditures to such income, and
                        ``(C) any other deduction to such income only if
                    such deduction is directly allocable to such income.
            Any amount or deduction which would (but for subparagraphs (B)
            and (C)) have been allocated or apportioned to such income shall
            only be allocated or apportioned to income which is from sources
            within the United States.''.

        (b) Other Modifications.--
                (1) Section 904(d)(2)(H)(i) is amended by striking
            ``paragraph (1)(B)'' and inserting ``paragraph (1)(D)''.

    [[Page 139 STAT. 203]]

                (2) Section 904(d)(4)(C)(ii) is amended by striking
            ``paragraph (1)(A)'' and inserting ``paragraph (1)(C)''.
                (3) Section 951A(f)(1)(A) is amended by striking
            ``904(h)(1)'' and inserting ``904(h)''.

        (c) <<NOTE: 26 USC 904 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70312. MODIFICATIONS TO DETERMINATION OF DEEMED PAID CREDIT
                                FOR TAXES PROPERLY ATTRIBUTABLE TO
                                TESTED INCOME.

        (a) Increase in Deemed Paid Credit.--
                (1) In general.--Section 960(d)(1) is amended by striking
            ``80 percent'' and inserting ``90 percent''.
                (2) Gross up for deemed paid foreign tax credit.--Section 78
            is amended--
                        (A) by striking ``subsections (a), (b), and (d)''
                    and inserting ``subsections (a) and (d)'', and
                        (B) by striking ``80 percent'' and inserting ``90
                    percent''.

        (b) Disallowance of Foreign Tax Credit With Respect to Distributions
    of Previously Taxed Net CFC Tested Income.--Section 960(d) is amended by
    adding at the end the following new paragraph:
                ``(4) Disallowance of foreign tax credit with respect to
            distributions of previously taxed net cfc tested income.--No
            credit shall be allowed under section 901 for 10 percent of any
            foreign income taxes paid or accrued (or deemed paid under
            subsection (b)(1)) with respect to any amount excluded from
            gross income under section 959(a) by reason of an inclusion in
            gross income under section 951A(a).''.

        (c) <<NOTE: 26 USC 78 note.>>  Effective Dates.--
                (1) In general.--The amendments made by subsection (a) shall
            apply to taxable years beginning after December 31, 2025.
                (2) Disallowance.--The amendment made by subsection (b)
            shall apply to foreign income taxes paid or accrued (or deemed
            paid under section 960(b)(1) of the Internal Revenue Code of
            1986) with respect to any amount excluded from gross income
            under section 959(a) of such Code by reason of an inclusion in
            gross income under section 951A(a) of such Code after June 28,
            2025.
    SEC. 70313. SOURCING CERTAIN INCOME FROM THE SALE OF INVENTORY
                                PRODUCED IN THE UNITED STATES.

        (a) In General.--Section 904(b), as amended by section 70311, is
    amended by adding at the end the following new paragraph:
                ``(6) Source rules for certain inventory produced in the
            united states and sold through foreign branches.--For purposes
            of this section, if a United States person maintains an office
            or other fixed place of business in a foreign country
            (determined under rules similar to the rules of section
            864(c)(5)), the portion of income which--
                        ``(A) is from the sale or exchange outside the
                    United States of inventory property (within the meaning
                    of section 865(i)(1))--
                              ``(i) which is produced in the United States,
                              ``(ii) which is for use outside the United
                          States, and

    [[Page 139 STAT. 204]]

                              ``(iii) to which the third sentence of section
                          863(b) applies, and
                        ``(B) is attributable (determined under rules
                    similar to the rules of section 864(c)(5)) to such
                    office or other fixed place of business,
            shall be treated as from sources without the United States,
            except that the amount so treated shall not exceed 50 percent of
            the income from the sale or exchange of such inventory
            property.''.

        (b) <<NOTE: 26 USC 904 note.>>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2025.

     PART II--FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED
                                     INCOME

    SEC. 70321. MODIFICATION OF DEDUCTION FOR FOREIGN-DERIVED
                                DEDUCTION ELIGIBLE INCOME AND NET CFC
                                TESTED INCOME.

        (a) In General.--Section 250(a) is amended--
                (1) by striking ``37.5 percent'' in paragraph (1)(A) and
            inserting ``33.34 percent'',
                (2) by striking ``50 percent'' in paragraph (1)(B) and
            inserting ``40 percent'', and
                (3) by striking paragraph (3).

        (b) <<NOTE: 26 USC 250 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70322. DETERMINATION OF DEDUCTION ELIGIBLE INCOME.

        (a) Sales or Other Dispositions of Certain Property.--
                (1) In general.--Section 250(b)(3)(A)(i) is amended--
                        (A) by striking ``and'' at the end of subclause (V),
                        (B) by striking ``over'' at the end of subclause
                    (VI) and inserting ``and'', and
                        (C) by adding at the end the following new
                    subclause:
                                        ``(VII) except as otherwise provided
                                    by the Secretary, any income and gain
                                    from the sale or other disposition
                                    (including pursuant to the deemed sale
                                    or other deemed disposition or a
                                    transaction subject to section 367(d))
                                    of--
                                                ``(aa) intangible property
                                            (as defined in section
                                            367(d)(4)), and
                                                ``(bb) any other property of
                                            a type that is subject to
                                            depreciation, amortization, or
                                            depletion by the seller, over''.
                (2) Conforming amendment.--Section 250(b)(5)(E) is amended
            by inserting ``(other than paragraph (3)(A)(i)(VII))'' after
            ``For purposes of this subsection''.
                (3) <<NOTE: 26 USC 250 note.>>  Effective date.--The
            amendments made by this subsection shall apply to sales or other
            dispositions (including pursuant to deemed sales or other deemed
            dispositions or a transaction subject to section 367(d) of the
            Internal Revenue Code of 1986) occurring after June 16, 2025.

        (b) Expense Apportionment Limited to Properly Allocable Expenses.--

    [[Page 139 STAT. 205]]

                (1) In general.--Section 250(b)(3)(A)(ii) is amended to read
            as follows:
                              ``(ii) expenses and deductions (including
                          taxes), other than interest expense and research
                          or experimental expenditures, properly allocable
                          to such gross income.''.
                (2) <<NOTE: 26 USC 250 note.>>  Effective date.--The
            amendment made by this subsection shall apply to taxable years
            beginning after December 31, 2025.
    SEC. 70323. RULES RELATED TO DEEMED INTANGIBLE INCOME.

        (a) Taxation of Net CFC Tested Income.--
                (1) In general.--Section 951A(a) is amended by striking
            ``global intangible low-taxed income'' and inserting ``net CFC
            tested income''.
                (2) Repeal of tax-free deemed return on foreign
            investments.--Section 951A, as amended by the preceding
            provisions of this Act, is amended by striking subsections (b)
            and (d) and by redesignating subsections (c), (e), and (f) as
            subsections (b), (c), and (d), respectively.
                (3) Conforming amendments.--
                        (A)(i) Section 250 is amended by striking ``global
                    intangible low-taxed income'' each place it appears in
                    subsections (a)(1)(B)(i), (a)(2), and (b)(3)(A)(i)(II)
                    and inserting ``net CFC tested income''.
                        (ii) The heading for section 250 of such Code is
                    amended by striking ``global intangible low-taxed
                    income'' and inserting ``net cfc tested income''.
                        (iii) The item relating to section 250 in the table
                    of sections for part VII of subchapter B of chapter 1 of
                    such Code <<NOTE: 26 USC prec. 241.>>  is amended by
                    striking ``global intangible low-taxed income'' and
                    inserting ``net CFC tested income''.
                        (B) Section 951A(c)(1), as redesignated by paragraph
                    (2), is amended by striking ``subsections (b),
                    (c)(1)(A), and (c)(1)(B)'' and inserting ``subsections
                    (b)(1)(A) and (b)(1)(B)''.
                        (C) Section 951A(d), as redesignated by paragraph
                    (2), is amended--
                              (i) by striking ``global intangible low-taxed
                          income'' each place it appears and inserting ``net
                          CFC tested income'', and
                              (ii) by striking ``subsection (c)(1)(A)'' in
                          paragraph (2)(B)(ii) and inserting ``subsection
                          (b)(1)(A)''.
                        (D) Section 960(d)(2) is amended--
                              (i) by striking ``global intangible low-taxed
                          income'' in subparagraph (A) and inserting ``net
                          CFC tested income'', and
                              (ii) by striking ``section 951A(c)(1)(A)'' in
                          subparagraph (B) and inserting ``section
                          951A(b)(1)(A)''.
                        (E)(i) The heading for section 951A is amended by
                    striking ``global intangible low-taxed income'' and
                    inserting ``net cfc tested income''.
                        (ii) The item relating to section 951A in the table
                    of sections for subpart F of part III of subchapter N of
                    chapter 1 <<NOTE: 26 USC prec. 951.>>  is amended by
                    striking ``Global intangible low-taxed income'' and
                    inserting ``Net CFC tested income''.

        (b) Deduction for Foreign-derived Deduction Eligible Income.--

    [[Page 139 STAT. 206]]

                (1) In general.--Section 250(a)(1)(A) is amended by striking
            ``foreign-derived intangible income'' and inserting ``foreign-
            derived deduction eligible income''.
                (2) Conforming amendments.--
                        (A) Section 250(a)(2) is amended by striking
                    ``foreign-derived intangible income'' each place it
                    appears and inserting ``foreign-derived deduction
                    eligible income''.
                        (B) Section 250(b), as amended by subsection (a), is
                    amended--
                              (i) by striking paragraphs (1) and (2),
                              (ii) by redesignating paragraphs (4) and (5)
                          as paragraphs (1) and (2), respectively, and by
                          moving such paragraphs before paragraph (3),
                              (iii) in paragraph (2)(B)(ii), as so
                          redesignated, by striking ``paragraph (4)(B)'' and
                          inserting ``paragraph (1)(B)'', and
                              (iv) by striking ``Intangible'' in the heading
                          thereof and inserting ``Deduction Eligible''.
                        (C)(i) The heading for section 250 is amended by
                    striking ``intangible'' in the heading thereof and
                    inserting ``deduction eligible''.
                        (ii) The heading for section 172(d)(9) is amended by
                    striking ``intangible'' and inserting ``deduction
                    eligible''.
                        (iii) The item relating to section 250 in the table
                    of sections for part VIII of subchapter B of chapter
                    1 <<NOTE: 26 USC prec. 241.>>  is amended by striking
                    ``intangible'' and inserting ``deduction eligible''.

        (c) <<NOTE: 26 USC 172 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.

                       PART III--BASE EROSION MINIMUM TAX

    SEC. 70331. EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX
                                AMOUNT.

        (a) In General.--Section 59A(b) is amended--
                (1) by striking ``10 percent'' in paragraph (1) and
            inserting ``10.5 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) Other Modifications.--
                (1) Section 59A(b)(2)(B)(ii), as redesignated by subsection
            (a)(2), is amended by striking ``registered securities dealer''
            and inserting ``securities dealer registered''.

    [[Page 139 STAT. 207]]

                (2) Section 59A(h)(2)(B) is amended by striking ``section
            6038B(b)(2)'' and inserting ``section 6038A(b)(2)''.
                (3) Section 59A(i)(2) is amended--
                        (A) by striking ``subsection (g)'' and inserting
                    ``subsection (h)'', and
                        (B) by striking ``subsection (g)(3)'' and inserting
                    ``subsection (h)(3)''.

        (d) <<NOTE: 26 USC 59A note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.

                      PART IV--BUSINESS INTEREST LIMITATION

    SEC. 70341. COORDINATION OF BUSINESS INTEREST LIMITATION WITH
                                INTEREST CAPITALIZATION PROVISIONS.

        (a) In General.--Section 163(j) is amended by redesignating
    paragraphs (10) and (11) as paragraphs (11) and (12) and by inserting
    after paragraph (9) the following:
                ``(10) Coordination with interest capitalization
            provisions.--
                        ``(A) <<NOTE: Applicability.>>  In general.--In
                    applying this subsection--
                              ``(i) the limitation under paragraph (1) shall
                          apply to business interest without regard to
                          whether the taxpayer would otherwise deduct such
                          business interest or capitalize such business
                          interest under an interest capitalization
                          provision, and
                              ``(ii) any reference in this subsection to a
                          deduction for business interest shall be treated
                          as including a reference to the capitalization of
                          business interest.
                        ``(B) Amount allowed applied first to capitalized
                    interest.--The amount allowed after taking into account
                    the limitation described in paragraph (1)--
                              ``(i) shall be applied first to the aggregate
                          amount of business interest which would otherwise
                          be capitalized, and
                              ``(ii) the remainder (if any) shall be applied
                          to the aggregate amount of business interest which
                          would be deducted.
                        ``(C) Treatment of disallowed interest carried
                    forward.--No portion of any business interest carried
                    forward under paragraph (2) from any taxable year to any
                    succeeding taxable year shall, for purposes of this
                    title (including any interest capitalization provision
                    which previously applied to such portion) be treated as
                    interest to which an interest capitalization provision
                    applies.
                        ``(D) <<NOTE: Definition.>>  Interest capitalization
                    provision.--For purposes of this section, the term
                    `interest capitalization provision' means any provision
                    of this subtitle under which interest--
                              ``(i) is required to be charged to capital
                          account, or
                              ``(ii) may be deducted or charged to capital
                          account.''.

        (b) Certain Capitalized Interest Not Treated as Business Interest.--
    Section 163(j)(5) is amended by adding at the end the following new
    sentence: ``Such term shall not include any interest which is
    capitalized under section 263(g) or 263A(f).''.

    [[Page 139 STAT. 208]]

        (c) Regulatory Authority.--Section 163(j), as amended by subsection
    (a), is amended by redesignating paragraphs (11) and (12) as paragraphs
    (12) and (13) and by inserting after paragraph (10) the following:
                ``(11) <<NOTE: Guidance. Determination.>>  Regulatory
            authority.--The Secretary shall issue such regulations or
            guidance as may be necessary or appropriate to carry out the
            purposes of this subsection, including regulations or guidance
            to determine which business interest is taken into account under
            this subsection and section 59A(c)(3).''.

        (d) <<NOTE: 26 USC 163 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70342. DEFINITION OF ADJUSTED TAXABLE INCOME FOR BUSINESS
                                INTEREST LIMITATION.

        (a) In General.--Subparagraph (A) of section 163(j)(8) is amended--
                (1) by striking ``and'' at the end of clause (iv), and
                (2) by adding at the end the following new clause:
                              ``(vi) the amounts included in gross income
                          under sections 951(a), 951A(a), and 78 (and the
                          portion of the deductions allowed under sections
                          245A(a) (by reason of section 964(e)(4)) and
                          250(a)(1)(B) by reason of such inclusions), and''.

        (b) <<NOTE: 26 USC 163 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.

                     PART V--OTHER INTERNATIONAL TAX REFORMS

    SEC. 70351. PERMANENT EXTENSION OF LOOK-THRU RULE FOR RELATED
                                CONTROLLED FOREIGN CORPORATIONS.

        (a) In General.--Section 954(c)(6)(C) is amended by striking ``and
    before January 1, 2026,''.
        (b) <<NOTE: 26 USC 954 note.>>  Effective Date.--The amendment made
    by this section shall apply to taxable years of foreign corporations
    beginning after December 31, 2025.
    SEC. 70352. REPEAL OF ELECTION FOR 1-MONTH DEFERRAL IN
                                DETERMINATION OF TAXABLE YEAR OF
                                SPECIFIED FOREIGN CORPORATIONS.

        (a) In General.--Section 898(c) is amended by striking paragraph (2)
    and redesignating paragraph (3) as paragraph (2).
        (b) <<NOTE: 26 USC 898 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years of specified foreign
    corporations beginning after November 30, 2025.

        (c) Transition Rule.--
                (1) <<NOTE: Effective date.>>  In general.--In the case of a
            corporation that is a specified foreign corporation as of
            November 30, 2025, such corporation's first taxable year
            beginning after such date shall end at the same time as the
            first required year (within the meaning of section 898(c)(1) of
            the Internal Revenue Code of 1986) ending after such date. If
            any specified foreign corporation is required by the amendments
            made by this section to change its taxable year for its first
            taxable year beginning after November 30, 2025--

    [[Page 139 STAT. 209]]

                        (A) such change shall be treated as initiated by
                    such corporation,
                        (B) such change shall be treated as having been made
                    with the consent of the Secretary, and
                        (C) <<NOTE: Regulations. Guidance. Allocations.>>
                    the Secretary shall issue regulations or other guidance
                    for allocating foreign taxes that are paid or accrued in
                    such first taxable year and the succeeding taxable year
                    among such taxable years in the manner the Secretary
                    determines appropriate to carry out the purposes of this
                    section.
                (2) <<NOTE: Definition.>>  Secretary.--For purposes of this
            subsection, the term ``Secretary'' means the Secretary of the
            Treasury or the Secretary's delegate.
    SEC. 70353. RESTORATION OF LIMITATION ON DOWNWARD ATTRIBUTION OF
                                STOCK OWNERSHIP IN APPLYING
                                CONSTRUCTIVE OWNERSHIP RULES.

        (a) In General.--Section 958(b) is amended--
                (1) by inserting after paragraph (3) the following:
                ``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3)
            shall not be applied so as to consider a United States person as
            owning stock which is owned by a person who is not a United
            States person.'', and
                (2) by striking ``Paragraph (1)'' in the last sentence and
            inserting ``Paragraphs (1) and (4)''.

        (b) Foreign Controlled United States Shareholders.--Subpart F of
    part III of subchapter N of chapter 1 is amended by inserting after
    section 951A the following new section:
    ``SEC. 951B. <<NOTE: Definitions. 26 USC 951B.>>  AMOUNTS INCLUDED
                              IN GROSS INCOME OF FOREIGN CONTROLLED
                              UNITED STATES SHAREHOLDERS.

        ``(a) <<NOTE: Applicability.>> In General.--In the case of any
    foreign controlled United States shareholder of a foreign controlled
    foreign corporation--
                ``(1) this subpart (other than sections 951A, 951(b), and
            957) shall be applied with respect to such shareholder
            (separately from, and in addition to, the application of this
            subpart without regard to this section)--
                        ``(A) by substituting `foreign controlled United
                    States shareholder' for `United States shareholder' each
                    place it appears therein, and
                        ``(B) by substituting `foreign controlled foreign
                    corporation' for `controlled foreign corporation' each
                    place it appears therein, and
                ``(2) section 951A (and such other provisions of this
            subpart as provided by the Secretary) shall be applied with
            respect to such shareholder--
                        ``(A) by treating each reference to `United States
                    shareholder' in such section as including a reference to
                    such shareholder, and
                        ``(B) by treating each reference to `controlled
                    foreign corporation' in such section as including a
                    reference to such foreign controlled foreign
                    corporation.

        ``(b) Foreign Controlled United States Shareholder.--For purposes of
    this section, the term `foreign controlled United States shareholder'
    means, with respect to any foreign corporation, any United States person
    which would be a United States shareholder with respect to such foreign
    corporation if--

    [[Page 139 STAT. 210]]

                ``(1) section 951(b) were applied by substituting `more than
            50 percent' for `10 percent or more', and
                ``(2) section 958(b) were applied without regard to
            paragraph (4) thereof.

        ``(c) Foreign Controlled Foreign Corporation.--For purposes of this
    section, the term `foreign controlled foreign corporation' means a
    foreign corporation, other than a controlled foreign corporation, which
    would be a controlled foreign corporation if section 957(a) were
    applied--
                ``(1) by substituting `foreign controlled United States
            shareholders' for `United States shareholders', and
                ``(2) by substituting `section 958(b) (other than paragraph
            (4) thereof)' for `section 958(b)'.

        ``(d) <<NOTE: Guidance.>>  Regulations.--The Secretary shall
    prescribe such regulations or other guidance as may be necessary or
    appropriate to carry out the purposes of this section, including
    regulations or other guidance--
                ``(1) to treat a foreign controlled United States
            shareholder or a foreign controlled foreign corporation as a
            United States shareholder or as a controlled foreign
            corporation, respectively, for purposes of provisions of this
            title other than this subpart (including any reporting
            requirement), and
                ``(2) with respect to the treatment of foreign controlled
            foreign corporations that are passive foreign investment
            companies (as defined in section 1297).''.

        (c) Clerical Amendment.--The table of sections for subpart F of part
    III of subchapter N of chapter 1 <<NOTE: 26 USC prec. 951.>>  is amended
    by inserting after the item relating to section 951A the following new
    item:

    ``Sec. 951B. Amounts included in gross income of foreign controlled
               United States shareholders.''.

        (d) <<NOTE: 26 USC 951B note.>>  Effective Date.--The amendments
    made by this section shall apply to taxable years of foreign
    corporations beginning after December 31, 2025.

        (e) <<NOTE: 26 USC 951B note.>>  Special Rule.--
                (1) In general.--Except to the extent provided by the
            Secretary of the Treasury (or the Secretary's delegate), the
            effective date of any amendment to the Internal Revenue Code of
            1986 shall be applied by treating references to United States
            shareholders as including references to foreign controlled
            United States shareholders, and by treating references to
            controlled foreign corporations as including references to
            foreign controlled foreign corporations.
                (2) Definitions.--Any term used in paragraph (1) which is
            used in subpart F of part III of subchapter N of chapter 1 of
            the Internal Revenue Code of 1986 (as amended by this section)
            shall have the meaning given such term in such subpart.

        (f) <<NOTE: 26 USC 951B note.>>  No Inference.--The amendments made
    by this section shall not be construed to create any inference with
    respect to the proper application of any provision of the Internal
    Revenue Code of 1986 with respect to taxable years beginning before the
    taxable years to which such amendments apply.
    SEC. 70354. MODIFICATIONS TO PRO RATA SHARE RULES.

        (a) In General.--Subsection (a) of section 951 is amended to read as
    follows:
        ``(a) Amounts Included.--

    [[Page 139 STAT. 211]]

                ``(1) In general.--If a foreign corporation is a controlled
            foreign corporation at any time during a taxable year of the
            foreign corporation (in this subsection referred to as the `CFC
            year')--
                        ``(A) each United States shareholder which owns
                    (within the meaning of section 958(a)) stock in such
                    corporation on any day during the CFC year shall include
                    in gross income such shareholder's pro rata share
                    (determined under paragraph (2)) of the corporation's
                    subpart F income for the CFC year, and
                        ``(B) each United States shareholder which owns
                    (within the meaning of section 958(a)) stock in such
                    corporation on the last day, in the CFC year, on which
                    such corporation is a controlled foreign corporation
                    shall include in gross income the amount determined
                    under section 956 with respect to such shareholder for
                    the CFC year (but only to the extent not excluded from
                    gross income under section 959(a)(2)).
                ``(2) Pro rata share of subpart f income.--A United States
            shareholder's pro rata share of a controlled foreign
            corporation's subpart F income for a CFC year shall be the
            portion of such income which is attributable to--
                        ``(A) the stock of such corporation owned (within
                    the meaning of section 958(a)) by such shareholder, and
                        ``(B) any period of the CFC year during which--
                              ``(i) such shareholder owned (within the
                          meaning of section 958(a)) such stock,
                              ``(ii) such shareholder was a United States
                          shareholder of such corporation, and
                              ``(iii) such corporation was a controlled
                          foreign corporation.
                ``(3) Taxable year of inclusion.--Any amount required to be
            included in gross income by a United States shareholder under
            paragraph (1) with respect to a CFC year shall be included in
            gross income for the shareholder's taxable year which includes
            the last day on which the shareholder owns (within the meaning
            of section 958(a)) stock in the controlled foreign corporation
            during such CFC year.
                ``(4) <<NOTE: Guidance.>>  Regulatory authority.--The
            Secretary shall prescribe such regulations or other guidance as
            may be necessary or appropriate to carry out the purposes of
            this subsection, including regulations or other guidance
            allowing taxpayers to elect, or requiring taxpayers, to close
            the taxable year of a controlled foreign corporation upon a
            direct or indirect disposition of stock of such corporation.''.

        (b) Coordination With Section 951A.--
                (1) Tested income.--Section 951A(b), as redesignated by
            section 70323(a)(2), is amended--
                        (A) in paragraph (1)(A), by striking ``(determined
                    for each taxable year of such controlled foreign
                    corporation which ends in or with such taxable year of
                    such United States shareholder)'', and
                        (B) in paragraph (1)(B), by striking ``(determined
                    for each taxable year of such controlled foreign
                    corporation which ends in or with such taxable year of
                    such United States shareholder)''.

    [[Page 139 STAT. 212]]

                (2) Pro rata share.--Section 951A(c), as redesignated by
            section 70323(a)(2), is amended--
                        (A) in paragraph (1), by striking ``in which or with
                    which the taxable year of the controlled foreign
                    corporation ends'' and inserting ``determined under
                    section 951(a)(3)'', and
                        (B) in paragraph (2), by striking ``the last day in
                    the taxable year of such foreign corporation on which
                    such foreign corporation is a controlled foreign
                    corporation'' and inserting ``any day in such taxable
                    year''.

        (c) <<NOTE: 26 USC 951 note.>>  Effective Dates.--
                (1) In general.--The amendments made by this section shall
            apply to taxable years of foreign corporations beginning after
            December 31, 2025.
                (2) Transition rule for dividends.--Except to the extent
            provided by the Secretary of the Treasury (or the Secretary's
            delegate), a dividend paid (or deemed paid) by a controlled
            foreign corporation shall not be treated as a dividend for
            purposes of applying section 951(a)(2)(B) of the Internal
            Revenue Code of 1986 (as in effect before the amendments made by
            this section) if--
                        (A) such dividend--
                              (i) was paid (or deemed paid) on or before
                          June 28, 2025, during the taxable year of such
                          controlled foreign corporation which includes such
                          date and the United States shareholder described
                          in section 951(a)(1) of such Code (as so in
                          effect) did not own (within the meaning of section
                          958(a) of such Code) the stock of such controlled
                          foreign corporation during the portion of such
                          taxable year on or before June 28, 2025, or
                              (ii) was paid (or deemed paid) after June 28,
                          2025, and before such controlled foreign
                          corporation's first taxable year beginning after
                          December 31, 2025, and
                        (B) such dividend does not increase the taxable
                    income of a United States person that is subject to
                    Federal income tax for the taxable year (including by
                    reason of a dividends received deduction, an exclusion
                    from gross income, or an exclusion from subpart F
                    income).

       CHAPTER 4--INVESTING IN AMERICAN FAMILIES, COMMUNITIES, AND SMALL
                                   BUSINESSES

          Subchapter A--Permanent Investments in Families and Children

    SEC. 70401. 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.--

    [[Page 139 STAT. 213]]

                ``(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) <<NOTE: Effective date.>>  Inflation adjustment.--In
            the case of any taxable year beginning after 2026, the $500,000
            and $600,000 amounts in paragraph (1) shall each 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) <<NOTE: Definition.>>  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' 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) <<NOTE: 26 USC 45F note.>>  Effective Date.--The amendments made
    by this section shall apply to amounts paid or incurred after December
    31, 2025.
    SEC. 70402. 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) <<NOTE: Effective date.>>  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

    [[Page 139 STAT. 214]]

            (2)(A)(i) of subsection (b) shall be increased by an amount
            equal to--
                        ``(A) such dollar amount, multiplied by
                        ``(B) <<NOTE: Determination.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: 26 USC 23 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2024.
    SEC. 70403. 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) <<NOTE: 26 USC 23 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2024.
    SEC. 70404. ENHANCEMENT OF THE DEPENDENT CARE ASSISTANCE PROGRAM.

        (a) In General.--Section 129(a)(2)(A) is amended by striking
    ``$5,000 ($2,500'' and inserting ``$7,500 ($3,750''.
        (b) <<NOTE: 26 USC 129 note.>>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70405. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT.

        (a) In General.--Paragraph (2) of section 21(a) is amended to read
    as follows:
                ``(2) Applicable percentage defined.--For purposes of
            paragraph (1), the term `applicable percentage' means 50
            percent--
                        ``(A) reduced (but not below 35 percent) by 1
                    percentage point for each $2,000 or fraction thereof by
                    which the taxpayer's adjusted gross income for the
                    taxable year exceeds $15,000, and
                        ``(B) further reduced (but not below 20 percent) by
                    1 percentage point for each $2,000 ($4,000 in the case
                    of a joint return) or fraction thereof by which the
                    taxpayer's

    [[Page 139 STAT. 215]]

                    adjusted gross income for the taxable year exceeds
                    $75,000 ($150,000 in the case of a joint return).''.

        (b) <<NOTE: 26 USC 21 note.>>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2025.

       Subchapter B--Permanent Investments in Students and Reforms to Tax-
                               exempt Institutions

    SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO
                                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. <<NOTE: 26 USC 25F.>>  QUALIFIED ELEMENTARY AND
                            SECONDARY EDUCATION SCHOLARSHIPS.

        ``(a) Allowance of Credit.--In the case of an individual who is a
    citizen or resident of the United States (within the meaning of section
    7701(a)(9)), 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 $1,700.
                ``(2) 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) Covered state.--The term `covered State' means one of
            the States, or the District of Columbia, that, for a calendar
            year, voluntarily elects to participate under this section and
            to identify scholarship granting organizations in the State, in
            accordance with subsection (g).
                ``(2) Eligible student.--The term `eligible student' means
            an individual who--
                        ``(A) is a member of a household with an income
                    which, for the calendar year prior to the date of the
                    application for a scholarship, 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.
                ``(3) Qualified contribution.--The term `qualified
            contribution' means a charitable contribution of cash to a
            scholarship granting organization that uses the contribution to
            fund scholarships for eligible students solely within the State
            in which the organization is listed pursuant to subsection (g).
                ``(4) Qualified elementary or secondary education expense.--
            The term `qualified elementary or secondary education expense'
            means any expense of an eligible student which is described in
            section 530(b)(3)(A).

    [[Page 139 STAT. 216]]

                ``(5) 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) which prevents the co-mingling of qualified
                    contributions with other amounts by maintaining one or
                    more separate accounts exclusively for qualified
                    contributions,
                        ``(C) which satisfies the requirements of subsection
                    (d), and
                        ``(D) which is included on the list submitted for
                    the applicable covered State under subsection (g) for
                    the applicable year.

        ``(d) Requirements for Scholarship Granting Organizations.--
                ``(1) In general.--An organization meets the requirements of
            this subsection if--
                        ``(A) such organization provides scholarships to 10
                    or more students who do not all attend the same school,
                        ``(B) such organization spends not less than 90
                    percent of the income of the organization on
                    scholarships for eligible students,
                        ``(C) such organization does not provide
                    scholarships for any expenses other than qualified
                    elementary or secondary education expenses,
                        ``(D) 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
                          eligible students who have a sibling who was
                          awarded a scholarship from such organization,
                        ``(E) such organization does not earmark or set
                    aside contributions for scholarships on behalf of any
                    particular student, and
                        ``(F) such organization--
                              ``(i) verifies the annual household income and
                          family size of eligible students who apply for
                          scholarships to ensure such students meet the
                          requirement of subsection (c)(2)(A), and
                              ``(ii) limits the awarding of scholarships to
                          eligible students who are a member of a household
                          for which the income does not exceed the amount
                          established under subsection (c)(2)(A).
                ``(2) 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.--

    [[Page 139 STAT. 217]]

                ``(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) State List of Scholarship Granting Organizations.--
                ``(1) List.--
                        ``(A) <<NOTE: Deadlines.>>  In general.--Not later
                    than January 1 of each calendar year (or, with respect
                    to the first calendar year for which this section
                    applies, as early as practicable), a State that
                    voluntarily elects to participate under this section
                    shall provide to the Secretary a list of the scholarship
                    granting organizations that meet the requirements
                    described in subsection (c)(5) and are located in the
                    State.
                        ``(B) Process.--The election under this paragraph
                    shall be made by the Governor of the State or by such
                    other individual, agency, or entity as is designated
                    under State law to make such elections on behalf of the
                    State with respect to Federal tax benefits.
                ``(2) Certification.--Each list submitted under paragraph
            (1) shall include a certification that the individual, agency,
            or entity submitting such list on behalf of the State has the
            authority to perform this function.

        ``(h) Regulations and Guidance.--The Secretary shall issue such
    regulations or other guidance as the Secretary determines necessary to
    carry out the purposes of this section, including regulations or other
    guidance--
                ``(1) providing for enforcement of the requirements under
            subsections (d) and (g), and
                ``(2) with respect to recordkeeping or information reporting
            for purposes of administering the requirements of this
            section.''.
                (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 <<NOTE: 26 USC prec. 21.>>
                    is amended by inserting after the item relating to
                    section 25E the following new item:

    ``Sec. 25F. Qualified elementary and secondary education
               scholarships.''.

        (b) Exclusion 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. 139K. <<NOTE: 26 USC 139K.>>  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 such individual or any

    [[Page 139 STAT. 218]]

    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).''.
                (2) Conforming amendment.--The table of sections for part
            III of subchapter B of chapter 1 <<NOTE: 26 USC prec. 101.>>  is
            amended by inserting before the item relating to section 140 the
            following new item:

    ``Sec. 139K. Scholarships for qualified elementary or secondary
               education expenses of eligible students.''.

        (c) <<NOTE: 26 USC 25 note.>>  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, 2026.
                (2) Exclusion from gross income.--The amendments made by
            subsection (b) shall apply to amounts received after December
            31, 2026, in taxable years ending after such date.
    SEC. 70412. EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT LOANS.

        (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) <<NOTE: Effective date.>>  In general.--In the case of
            any taxable year beginning after 2026, both of the $5,250
            amounts in subsection (a)(2) shall each be increased by an
            amount equal to--
                        ``(A) such dollar amount, multiplied by
                        ``(B) <<NOTE: Determination.>>  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) <<NOTE: 26 USC 127 note.>>  Effective Date.--The amendment made
    by this section shall apply to payments made after December 31, 2025.
    SEC. 70413. ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER
                                EDUCATION EXPENSES FOR PURPOSES OF 529
                                ACCOUNTS.

        (a) In General.--
                (1) In general.--Section 529(c)(7) is amended to read as
            follows:
                ``(7) Treatment of elementary and secondary tuition.--Any
            reference in this section <<NOTE: Definition.>>  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.

    [[Page 139 STAT. 219]]

                        ``(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.''.
                (2) <<NOTE: 26 USC 529 note.>>  Effective date.--The
            amendment made by this subsection shall apply to distributions
            made after the date of the enactment of this Act.

        (b) Increase in Limitation.--
                (1) In general.--The last sentence of section 529(e)(3) is
            amended by striking ``$10,000'' and inserting ``$20,000''.
                (2) <<NOTE: 26 USC 529 note.>>  Effective date.--The
            amendment made by this subsection shall apply to taxable years
            beginning after December 31, 2025.
    SEC. 70414. <<NOTE: Definitions.>>  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),

    [[Page 139 STAT. 220]]

                        ``(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 public directory
                    of the Web Enabled Approval Management System (WEAMS) of
                    the Veterans Benefits Administration, or successor
                    directory such program,
                        ``(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
                    subparagraph.
                ``(3) Recognized postsecondary credential.--The term
            `recognized postsecondary credential' means--
                        ``(A) any postsecondary employment credential that
                    is industry recognized and is--
                              ``(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 Forces, or
                              ``(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 Act of August 16, 1937
                    (commonly known as the `National Apprenticeship Act'; 50
                    Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),
                        ``(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(52) of the Workforce Innovation and
                    Opportunity Act (29 U.S.C. 3102(52)), provided through a
                    program described in paragraph (2)(A).''.

    [[Page 139 STAT. 221]]

        (c) <<NOTE: 26 USC 529 note.>> Effective Date.--The amendments made
    by this section shall apply to distributions made after the date of the
    enactment of this Act.
    SEC. 70415. 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) <<NOTE: Applicability. Definitions.>> 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 of at least $500,000, and not in
            excess of $750,000,
                ``(2) 4 percent in the case of an institution with a student
            adjusted endowment in excess of $750,000, and not in excess of
            $2,000,000, and
                ``(3) 8 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, the term `applicable educational institution' means an
    eligible educational institution (as defined in section 25A(f)(2))--
                ``(1) which had at least 3,000 tuition-paying students
            during the preceding taxable year,
                ``(2) more than 50 percent of the tuition-paying students of
            which are located in the United States,
                ``(3) the student adjusted endowment of which is at least
            $500,000, and
                ``(4) which is not described in the first sentence of
            section 511(a)(2)(B) (relating to State colleges and
            universities).

        ``(d) Student Adjusted Endowment.--For purposes of this section, the
    term `student adjusted endowment' means, with respect to any institution
    for any taxable year--
                ``(1) 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
                ``(2) the number of students of such institution.

        ``(e) Determination of Number of Students.--For purposes of
    subsections (c) 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.

    [[Page 139 STAT. 222]]

                        ``(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) <<NOTE: Guidance.>> 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

    [[Page 139 STAT. 223]]

    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 tuition-paying students taken into
            account under section 4968(c), and
                ``(2) the number of students of such institution (determined
            under the rules of section 4968(e)).''.

        (c) <<NOTE: 26 USC 4968 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70416. 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) <<NOTE: Definition.>> Covered employee.--For purposes
            of this section, the term `covered employee' means any employee
            of an applicable tax-exempt organization (or any predecessor of
            such an organization) and any former employee of such an
            organization (or predecessor) who was such an employee during
            any taxable year beginning after December 31, 2016.''.

        (b) <<NOTE: 26 USC 4960 note.>> Effective Date.--The amendment made
    by subsection (a) shall apply to taxable years beginning after December
    31, 2025.

          Subchapter C--Permanent Investments in Community Development

    SEC. 70421. PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY
                                ZONES.

        (a) Decennial Designations.--
                (1) Determination period.--Section 1400Z-1(c)(2)(B) is
            amended by striking ``beginning on the date of the enactment of
            the Tax Cuts and Jobs Act'' and inserting ``beginning on the
            decennial determination date''.
                (2) Decennial determination date.--Section 1400Z-1(c)(2) is
            amended by adding at the end the following new subparagraph:
                        ``(C) <<NOTE: Definition.>> Decennial determination
                    date.--The term `decennial determination date' means--
                              ``(i) July 1, 2026, and
                              ``(ii) each July 1 of the year that is 10
                          years after the preceding decennial determination
                          date under this subparagraph.''.
                (3) Repeal of special rule for puerto rico.--Section 1400Z-
            1(b) is amended by striking paragraph (3).

    [[Page 139 STAT. 224]]

                (4) Limitation on number of designations.--Section 1400Z-
            1(d)(1) is amended--
                        (A) in paragraph (1)--
                              (i) by striking ``and subsection (b)(3)'', and
                              (ii) by inserting ``during any period'' after
                          ``the number of population census tracts in a
                          State that may be designated as qualified
                          opportunity zones under this section'', and
                        (B) in paragraph (2), by inserting ``during any
                    period'' before the period at the end.
                (5) <<NOTE: 26 USC 1400Z-1 note.>> Effective dates.--
                        (A) In general.--Except as provided in subparagraph
                    (B), the amendments made by this subsection shall take
                    effect on the date of the enactment of this Act.
                        (B) Puerto rico.--The amendment made by paragraph
                    (3) shall take effect on December 31, 2026.

        (b) Qualification for Designations.--
                (1) Determination of low-income communities.--Section 1400Z-
            1(c) is amended by striking all that precedes paragraph (2) and
            inserting the following:

        ``(c) Other Definitions.--For purposes of this section--
                ``(1) Low-income communities.--The term `low-income
            community' means any population census tract if--
                        ``(A) such population census tract has a median
                    family income that--
                              ``(i) in the case of a population census tract
                          not located within a metropolitan area, does not
                          exceed 70 percent of the statewide median family
                          income, or
                              ``(ii) in the case of a population census
                          tract located within a metropolitan area, does not
                          exceed 70 percent of the metropolitan area median
                          family income, or
                        ``(B) such population census tract--
                              ``(i) has a poverty rate of at least 20
                          percent, and
                              ``(ii) has a median family income that--
                                        ``(I) in the case of a population
                                    census tract not located within a
                                    metropolitan area, does not exceed 125
                                    percent of the statewide median family
                                    income, or
                                        ``(II) in the case of a population
                                    census tract located within a
                                    metropolitan area, does not exceed 125
                                    percent of the metropolitan area median
                                    family income.''.
                (2) Repeal of rule for contiguous census tracts.--Section
            1400Z-1 is amended by striking subsection (e) and by
            redesignating subsection (f) as subsection (e).
                (3) Period for which designation is in effect.--Section
            1400Z-1(e), as redesignated by paragraph (2), is amended to read
            as follows:

        ``(e) Period for Which Designation Is in Effect.--
                ``(1) In general.--A designation as a qualified opportunity
            zone shall remain in effect for the period beginning on the
            applicable start date and ending on the day before the date that
            is 10 years after the applicable start date.
                ``(2) <<NOTE: Definition.>> Applicable start date.--For
            purposes of this section, the term `applicable start date'
            means, with respect to any qualified opportunity zone designated
            under this section, the

    [[Page 139 STAT. 225]]

            January 1 following the date on which such qualified opportunity
            zone was certified and designated by the Secretary under
            subsection (b)(1)(B).''.
                (4) <<NOTE: 26 USC 1400Z-1 note.>> Effective date.--The
            amendments made by this subsection shall apply to areas
            designated under section 1400Z-1 of the Internal Revenue Code of
            1986 after the date of the enactment of this Act.

        (c) Application of Special Rules for Capital Gains.--
                (1) Repeal of sunset on election.--Section 1400Z-2(a)(2) is
            amended to read as follows:
                ``(2) Election.--No election may be made under paragraph (1)
            with respect to a sale or exchange if an election previously
            made with respect to such sale or exchange is in effect.''.
                (2) Modification of rules for deferral of gain.--Section
            1400Z-2(b) is amended to read as follows:

        ``(b) Deferral of Gain Invested in Opportunity Zone Property.--
                ``(1) <<NOTE: Applicability.>> Year of inclusion.--Gain to
            which subsection (a)(1)(B) applies shall be included in gross
            income in the taxable year which includes the earlier of--
                        ``(A) the date on which such investment is sold or
                    exchanged, or
                        ``(B) the date which is 5 years after the date the
                    investment in the qualified opportunity fund was made.
                ``(2) Amount includible.--
                        ``(A) In general.--The amount of gain included in
                    gross income under subsection (a)(1)(B) shall be the
                    excess of--
                              ``(i) the lesser of the amount of gain
                          excluded under subsection (a)(1)(A) or the fair
                          market value of the investment as determined as of
                          the date described in paragraph (1), over
                              ``(ii) the taxpayer's basis in the investment.
                        ``(B) Determination of basis.--
                              ``(i) In general.--Except as otherwise
                          provided in this subparagraph or subsection (c),
                          the taxpayer's basis in the investment shall be
                          zero.
                              ``(ii) Increase for gain recognized under
                          subsection (a)(1)(B).--The basis in the investment
                          shall be increased by the amount of gain
                          recognized by reason of subsection (a)(1)(B) with
                          respect to such investment.
                              ``(iii) Investments held for 5 years.--
                                        ``(I) In general.--In the case of
                                    any investment held for at least 5
                                    years, the basis of such investment
                                    shall be increased by an amount equal to
                                    10 percent (30 percent in the case of
                                    any investment in a qualified rural
                                    opportunity fund) of the amount of gain
                                    deferred by reason of subsection
                                    (a)(1)(A).
                                        ``(II) Application of increase.--For
                                    purposes of this subsection, any
                                    increase in basis under this clause
                                    shall be treated as occurring before the
                                    date described in paragraph (1)(B).
                        ``(C) <<NOTE: Definitions.>> Qualified rural
                    opportunity fund.--For purposes of subparagraph
                    (B)(iii)--

    [[Page 139 STAT. 226]]

                              ``(i) Qualified rural opportunity fund.--The
                          term `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).
                              ``(ii) Rural area.--The term `rural area'
                          means any area other than--
                                        ``(I) a city or town that has a
                                    population of greater than 50,000
                                    inhabitants, and
                                        ``(II) any urbanized area contiguous
                                    and adjacent to a city or town described
                                    in subclause (I).''.
                (3) Special rule for investments held at least 10 years.--
            Section 1400Z-2(c) is amended by striking ``makes an election
            under this clause'' and all that follows and inserting ``makes
            an election under this subsection, the basis of such investment
            shall be equal to--
                        ``(A) in the case of an investment sold before the
                    date that is 30 years after the date of the investment,
                    the fair market value of such investment on the date
                    such investment is sold or exchanged, or
                        ``(B) in any other case, the fair market value of
                    such investment on the date that is 30 years after the
                    date of the investment.''.
                (4) Determination of qualified opportunity zone property.--
                        (A) Qualified opportunity zone business property.--
                    Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking
                    ``December 31, 2017'' and inserting ``the applicable
                    start date (as defined in section 1400Z-1(e)(2)) with
                    respect to the qualified opportunity zone described in
                    subclause (III)''.
                        (B) Qualified opportunity zone stock and partnership
                    interests.--Section 1400Z-2(d)(2) is amended--
                              (i) by striking ``December 31, 2017,'' each
                          place it appears in subparagraphs (B)(i)(I) and
                          (C)(i) and inserting ``the applicable date'', and
                              (ii) by adding at the end the following new
                          subparagraph:
                        ``(E) <<NOTE: Definition.>> Applicable date.--For
                    purposes of this subparagraph, the term `applicable
                    date' means, with respect to

    [[Page 139 STAT. 227]]

                    any corporation or partnership which is a qualified
                    opportunity zone business, the earliest date described
                    in subparagraph (D)(i)(I) with respect to the qualified
                    opportunity zone business property held by such
                    qualified opportunity zone business.''.
                        (C) Special rule for improvement of existing
                    structures in rural areas.--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 (as defined in
                    subsection (b)(2)(C)(ii))'' after ``the adjusted basis
                    of such property''.
                (5) <<NOTE: 26 USC 1400Z-2 note.>> Effective dates.--
                        (A) In general.--Except as otherwise provided in
                    this paragraph, the amendments made by this subsection
                    shall apply to amounts invested in qualified opportunity
                    funds after December 31, 2026.
                        (B) Acquisition of qualified opportunity zone
                    property.--The amendments made by subparagraphs (A) and
                    (B) of paragraph (4) shall apply to property acquired
                    after December 31, 2026.
                        (C) Substantial improvement.--The amendment made by
                    paragraph (4)(C) shall take effect on the date of the
                    enactment of this Act.

        (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. <<NOTE: 26 USC 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,

    [[Page 139 STAT. 228]]

                        ``(C) the population census tract or 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, the 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, address, 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) (at such time and in such manner as the Secretary
    may prescribe) a written statement showing--

    [[Page 139 STAT. 229]]

                ``(1) the name, address, and phone number of the information
            contact of the person required to make such return, and
                ``(2) the information required to be shown on such return by
            reason of subsection (b)(8) with respect to the person whose
            name is required to be so set forth.

        ``(d) Definitions.--For purposes of this section--
                ``(1) In general.--Any term used in this section which is
            also used in subchapter Z of chapter 1 shall have the meaning
            given such term under such subchapter.
                ``(2) Full-time equivalent employees.--The term `full-time
            equivalent employees' means, with respect to any month, the sum
            of--
                        ``(A) the number of full-time employees (as defined
                    in section 4980H(c)(4)) for the month, plus
                        ``(B) the number of employees determined (under
                    rules similar to the rules of section 4980H(c)(2)(E)) by
                    dividing the aggregate number of hours of service of
                    employees who are not full-time employees for the month
                    by 120.

        ``(e) Application to Qualified Rural Opportunity Funds.--Every
    qualified rural opportunity fund (as defined in section 1400Z-
    2(b)(2)(C)) 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)(C)' 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)(C)(i).
    ``SEC. 6039L. <<NOTE: 26 USC 6039L.>> INFORMATION REQUIRED FROM
                                QUALIFIED OPPORTUNITY ZONE BUSINESSES
                                AND QUALIFIED RURAL OPPORTUNITY ZONE
                                BUSINESSES.

        ``(a) <<NOTE: Statement. Regulations.>> In General.--Every
    applicable qualified opportunity zone business shall furnish to the
    qualified opportunity fund described in subsection (b) a written
    statement at such time, 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 <<NOTE: Definition.>> 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.

    [[Page 139 STAT. 230]]

        ``(d) Application to Qualified Rural Opportunity
    Businesses. <<NOTE: Determination.>> --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)(C)(i).''.
                (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. <<NOTE: 26 USC 6726.>> FAILURE TO COMPLY WITH
                              INFORMATION REPORTING REQUIREMENTS
                              RELATING TO QUALIFIED OPPORTUNITY FUNDS
                              AND QUALIFIED RURAL OPPORTUNITY FUNDS.

        ``(a) <<NOTE: Penalty.>> In General.--If 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) <<NOTE: Applicability.>> 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) <<NOTE: Effective date.>> 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--
                        ``(A) such dollar amount, multiplied by
                        ``(B) 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

    [[Page 139 STAT. 231]]

                    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
                          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 under section 6039K 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 <<NOTE: 26 USC prec.
                    6031.>> 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 <<NOTE: 26 USC prec.
                    6721.>> 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) <<NOTE: 26 USC 6011 note.>> Effective date.--The
            amendments made by this subsection shall apply to taxable years
            beginning after the date of the enactment of this Act.

        (e) <<NOTE: 26 USC 6039K note.>> Secretary Reporting of Data on
    Opportunity Zone and Rural Opportunity Zone Tax Incentives.--
                (1) <<NOTE: Appropriation authorization. Expiration
            date.>> In general.--In addition to amounts otherwise available,
            there is appropriated, out of any money in the Treasury not
            otherwise appropriated, $15,000,000, to remain available until
            September 30, 2028, for necessary expenses of the Internal

    [[Page 139 STAT. 232]]

            Revenue Service to make the reports described in paragraph (2).
                (2) Reports.--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.
                (3) Information included.--The report required under
            paragraph (2) 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.
                (4) Additional information.--
                        (A) <<NOTE: Effective date.>> In general.--Beginning
                    with the report submitted under paragraph (2) for the
                    6th year after the date of the enactment of this Act,
                    the Secretary shall include in such report the impacts
                    and outcomes of a designation of a population census
                    tract as a qualified opportunity zone as measured by
                    economic indicators, such as job creation, poverty
                    reduction, new business starts, and other metrics as
                    determined by the Secretary.
                        (B) Semi-decennial information.--
                              (i) In general.--In the case of any report
                          submitted under paragraph (2) 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

    [[Page 139 STAT. 233]]

                                    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 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 of new business
                                    starts in the population census tract.
                                        (XII) The distribution of employees
                                    in the population census tract by North
                                    American Industry Classification System
                                    (NAICS) code.
                (5) Protection of identifiable return information.--In
            making reports required under this subsection, the Secretary--
                        (A) <<NOTE: Procedures.>> 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

    [[Page 139 STAT. 234]]

                        (B) if necessary to protect taxpayer return
                    information, may combine information required with
                    respect to individual population census tracts into
                    larger geographic areas.
                (6) 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.
                (7) 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)(C)(i) of the Internal Revenue Code of
                    1986.
    SEC. 70422. PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING TAX
                                CREDIT.

        (a) Permanent State Housing Credit Ceiling Increase for Low-income
    Housing Credit.--
                (1) In general.--Section 42(h)(3)(I) is amended--
                        (A) by striking ``2018, 2019, 2020, and 2021,'' and
                    inserting ``beginning after December 31, 2025,'',
                        (B) by striking ``1.125'' and inserting ``1.12'',
                    and
                        (C) by striking ``2018, 2019, 2020, and 2021'' in
                    the heading and inserting ``calendar years after 2025''.
                (2) <<NOTE: 26 USC 42 note.>> Effective date.--The
            amendments made by this subsection shall apply to calendar years
            beginning after December 31, 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
                          obligations described in subparagraph (A), and
                              ``(II) 1 or more of such obligations--
                                        ``(aa) are part of an issue the
                                    issue date of which is after December
                                    31, 2025, and

    [[Page 139 STAT. 235]]

                                        ``(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.''.
                (2) <<NOTE: 26 USC 42 note.>>  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.
    SEC. 70423. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.

        (a) In General.--Section 45D(f)(1)(H) is amended by striking ``for
    for each of calendar years 2020 through 2025'' and inserting `` for each
    calendar year after 2019''.
        (b) Carryover of Unused Limitation.--Section 45D(f)(3) is amended--
                (1) by striking ``If the'' and inserting the following:
                        ``(A) In general.--If the'', and
                (2) by striking the second sentence and inserting the
            following:
                        ``(B) Limitation.--No amount may be carried under
                    subparagraph (A) to any calendar year afer the fifth
                    calendar year after the calendar year in which the
                    excess described in such subparagraph occurred. For
                    purposes of this subparagraph, any excess described in
                    subparagraph (A) with respect to any calendar year
                    before 2026 shall be treated as occurring in calendar
                    year 2025.''.

        (c) <<NOTE: 26 USC 45D note.>> Effective Date.--The amendments made
    by this section shall apply to calendar years beginning after December
    31, 2025.
    SEC. 70424. PERMANENT AND EXPANDED 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 ``$1,000
            ($2,000'', and
                (2) by striking ``beginning in 2021''.

        (b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE
                                BY INDIVIDUALS.

        (a) In General.--
                (1) In general.--Paragraph (1) of section 170(b) is amended
            by adding at the end the following new subparagraph:
                        ``(I) 0.5-percent floor.--Any charitable
                    contribution otherwise allowable (without regard to this
                    subparagraph) as a deduction under this section shall be
                    allowed only to the extent that the aggregate of such
                    contributions exceeds 0.5 percent of the taxpayer's
                    contribution base

    [[Page 139 STAT. 236]]

                    for the taxable year. <<NOTE: Applicability.>> The
                    preceding sentence shall be applied--
                              ``(i) first, by taking into account charitable
                          contributions to which subparagraph (D) applies to
                          the extent thereof,
                              ``(ii) second, by taking into account
                          charitable contributions to which subparagraph (C)
                          applies to the extent thereof,
                              ``(iii) third, by taking into account
                          charitable contributions to which subparagraph (B)
                          applies to the extent thereof,
                              ``(iv) fourth, by taking into account
                          charitable contributions to which subparagraph (E)
                          applies to the extent thereof,
                              ``(v) fifth, by taking into account charitable
                          contributions to which subparagraph (A) applies to
                          the extent thereof, and
                              ``(vi) sixth, by taking into account
                          charitable contributions to which subparagraph (G)
                          applies to the extent thereof.''.
                (2) Application of carryforward.--Paragraph (1) of section
            170(d) is amended by adding at the end the following new
            subparagraph:
                        ``(C) <<NOTE: Definitions.>> Contributions
                    disallowed by 0.5-percent floor carried forward only
                    from years in which limitation is exceeded.--
                              ``(i) In general.--In the case of any taxable
                          year from which an excess is carried forward
                          (determined without regard to this subparagraph)
                          under any carryover rule, the applicable carryover
                          rule shall be applied by increasing the excess
                          determined under such applicable carryover rule
                          for the contribution year (before the application
                          of subparagraph (B)) by the amount attributable to
                          the charitable contributions to which such rule
                          applies which is not allowed as a deduction for
                          the contribution year by reason of subsection
                          (b)(1)(I).
                              ``(ii) Carryover rule.--For purposes of this
                          subparagraph, the term `carryover rule' means--
                                        ``(I) subparagraph (A) of this
                                    paragraph,
                                        ``(II) subparagraphs (C)(ii),
                                    (D)(ii), (E)(ii), and (G)(ii) of
                                    subsection (b)(1), and
                                        ``(III) the second sentence of
                                    subsection (b)(1)(B).
                              ``(iii) Applicable carryover rule.--For
                          purposes of this subparagraph, the term
                          `applicable carryover rule' means any carryover
                          rule applicable to charitable contributions which
                          were (in whole or in part) not allowed as a
                          deduction for the contribution year by reason of
                          subsection (b)(1)(I).''.
                (3) Coordination with deduction for nonitemizers.--Section
            170(p), as amended by this Act, is further amended by inserting
            ``, (b)(1)(I),'' after ``subsections (b)(1)(G)(ii)''.

        (b) Modification of Limitation for Cash Contributions.--
                (1) In general.--Clause (i) of section 170(b)(1)(G) is
            amended to read as follows:

    [[Page 139 STAT. 237]]

                              ``(i) <<NOTE: Effective date.>> In general.--
                          For taxable years beginning after December 31,
                          2017, any contribution of cash to an organization
                          described in subparagraph (A) shall be allowed as
                          a deduction under subsection (a) to the extent
                          that the aggregate of such contributions does not
                          exceed the excess of--
                                        ``(I) 60 percent of the taxpayer's
                                    contribution base for the taxable year,
                                    over
                                        ``(II) the aggregate amount of
                                    contributions taken into account under
                                    subparagraph (A) for such taxable
                                    year.''.
                (2) Coordination with other limitations.--
                        (A) In general.--Clause (iii) of section
                    170(b)(1)(G) is amended--
                              (i) by striking ``subparagraphs (a) and (b)''
                          in the heading and inserting ``subparagraph (a)'',
                          and
                              (ii) in subclause (II), by striking ``, and
                          subparagraph (B)'' and all that follows through
                          ``this subparagraph''.
                        (B) Other contributions.--Subparagraph (B) of
                    section 170(b)(1) is amended--
                              (i) by striking ``to which subparagraph (A)''
                          both places it appears and inserting ``to which
                          subparagraph (A) or (G)'', and
                              (ii) in clause (ii), by striking ``over the
                          amount'' and all that follows through
                          ``subparagraph (C)).'' and inserting ``over--
                                        ``(I) the amount of charitable
                                    contributions allowable under
                                    subparagraph (A) (determined without
                                    regard to subparagraph (C)) and
                                    subparagraph (G), reduced by
                                        ``(II) so much of the contributions
                                    taken into account under subparagraph
                                    (G) as does not exceed 10 percent of the
                                    taxpayer's contribution base.''.

        (c) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70426. 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
                    otherwise allowable (without regard to this
                    subparagraph) as a deduction under this section for any
                    taxable year, other than any contribution to which
                    subparagraph (B) or (C) applies, shall be allowed only
                    to the extent that the aggregate of such contributions--
                              ``(i) exceeds 1 percent of the taxpayer's
                          taxable income for the taxable year, and
                              ``(ii) does not exceed 10 percent of the
                          taxpayer's taxable income for the taxable year.''.

        (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

    [[Page 139 STAT. 238]]

                    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. <<NOTE: Reduction.>> --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.--Subparagraphs (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) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70427. PERMANENT INCREASE IN LIMITATION ON COVER OVER OF TAX
                                ON DISTILLED SPIRITS.

        (a) In General.--Paragraph (1) of section 7652(f) is amended to read
    as follows:
                ``(1) $13.25, or''.

        (b) <<NOTE: 26 USC 7652 note.>> Effective Date.--The amendment made
    by this section shall apply to distilled spirits brought into the United
    States after December 31, 2025.
    SEC. 70428. <<NOTE: Alaska. Fish and fishing. 26 USC 501
                                note.>> NONPROFIT COMMUNITY
                                DEVELOPMENT ACTIVITIES IN REMOTE
                                NATIVE VILLAGES.

        (a) In General.--For purposes of subchapter F of chapter 1 of the
    Internal Revenue Code of 1986, any activity substantially related to
    participation or investment in fisheries in the Bering Sea and Aleutian
    Islands statistical and reporting areas (as described in Figure 1 of
    section 679 of title 50, Code of Federal Regulations) carried on by an
    entity identified in section 305(i)(1)(D) of the Magnuson-Stevens
    Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in
    effect on the date of enactment of this section) shall be considered
    substantially related to the exercise or performance of the purpose
    constituting the basis of such entity's exemption under section 501(a)
    of such Code if the

    [[Page 139 STAT. 239]]

    conduct of such activity is in furtherance of 1 or more of the purposes
    specified in section 305(i)(1)(A) of such Act (as so in effect). For
    purposes of this paragraph, activities substantially related to
    participation or investment in fisheries include the harvesting,
    processing, transportation, sales, and marketing of fish and fish
    products of the Bering Sea and Aleutian Islands statistical and
    reporting areas.
        (b) Application to Certain Wholly Owned Subsidiaries.--If
    the <<NOTE: Deadline.>>  assets of a trade or business relating to an
    activity described in subsection (a) of any subsidiary wholly owned by
    an entity identified in section 305(i)(1)(D) of the Magnuson-Stevens
    Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in
    effect on the date of enactment of this section) are transferred to such
    entity (including in liquidation of such subsidiary) not later than 18
    months after the date of the enactment of this Act--
                (1) no gain or income resulting from such transfer shall be
            recognized to either such subsidiary or such entity under such
            Code, and
                (2) all income derived from such subsidiary from such
            transferred trade or business shall be exempt from taxation
            under such Code.

        (c) Effective Date.--This section shall take effect on the date of
    the enactment of this Act and shall remain effective during the
    existence of the western Alaska community development quota program
    established by Section 305(i)(1) of the Magnuson-Stevens Fishery
    Conservation and Management Act (16 U.S.C. 1855(i)(1)), as amended.
    SEC. 70429. ADJUSTMENT OF CHARITABLE DEDUCTION FOR CERTAIN
                                EXPENSES INCURRED IN SUPPORT OF NATIVE
                                ALASKAN SUBSISTENCE WHALING.

        (a) In General.--Section 170(n)(1) of the Internal Revenue Code of
    1986 is amended by striking ``$10,000'' and inserting ``$50,000''.
        (b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70430. EXCEPTION TO PERCENTAGE OF COMPLETION METHOD OF
                                ACCOUNTING FOR CERTAIN RESIDENTIAL
                                CONSTRUCTION CONTRACTS.

        (a) In General.--Section 460(e) is amended--
                (1) in paragraph (1)--
                        (A) by striking ``home construction contract'' both
                    places it appears and inserting ``residential
                    construction contract'', and
                        (B) by inserting ``(determined by substituting `3-
                    year' for `2-year' in subparagraph (B)(i) for any
                    residential construction contract which is not a home
                    construction contract)'' after ``the requirements of
                    clauses (i) and (ii) of subparagraph (B)'',
                (2) by striking paragraph (4) and redesignating paragraph
            (5) as paragraph (4), and
                (3) in subparagraph (A) of paragraph (4), as so
            redesignated, by striking ``paragraph (4)'' and inserting
            ``paragraph (3)''.

        (b) Application of Exception for Purposes of Alternative Minimum
    Tax.--Section 56(a)(3) is amended by striking ``any home construction
    contract (as defined in section 460(e)(6))'' and inserting

    [[Page 139 STAT. 240]]

    ``any residential construction contract (as defined in section
    460(e)(4))''.
        (c) <<NOTE: 26 USC 56 note.>> Effective Date.--The amendments made
    by this section shall apply to contracts entered into in taxable years
    beginning after the date of the enactment of this Act.

     Subchapter D--Permanent Investments in Small Business and Rural America

    SEC. 70431. EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN
                                EXCLUSION.

        (a) Phased Increase in Exclusion for Gain From Qualified Small
    Business Stock.--
                (1) In general.--Section 1202(a)(1) is amended to read as
            follows:
                ``(1) <<NOTE: Time periods.>> In general.-- In the case of a
            taxpayer other than a corporation, gross income shall not
            include--
                        ``(A) except as provided in paragraphs (3) and (4),
                    50 percent of any gain from the sale or exchange of
                    qualified small business stock acquired on or before the
                    applicable date and held for more than 5 years, and
                        ``(B) the applicable percentage of any gain from the
                    sale or exchange of qualified small business stock
                    acquired after the applicable date and held for at least
                    3 years.''.
                (2) Applicable percentage.--Section 1202(a) is amended by
            adding at the end the following new paragraph:
                ``(5) Applicable percentage.--The applicable percentage
            under paragraph (1) shall be determined under the following
            table:

                                                                Applicable
                      ``Years stock held:                      percentage:

    3 years................................................              50%
    4 years................................................              75%
    5 years or more........................................          100%''.

            ''.    (3) Applicable date; acquisition date.--Section 1202(a),
            as amended by paragraph (2), is amended by adding at the end the
            following new paragraph:
                ``(6) Applicable date; acquisition date.--For purposes of
            this section--
                        ``(A) <<NOTE: Definition.>> Applicable date.--The
                    term `applicable date' means the date of the enactment
                    of this paragraph.
                        ``(B) Acquisition date.--In the case of any stock
                    which would (but for this paragraph) be treated as
                    having been acquired before, on, or after the applicable
                    date, whichever is applicable, the acquisition date for
                    purposes of this section shall be the first day on which
                    such stock was held by the taxpayer determined after the
                    application of section 1223.''.
                (4) Continued treatment as not item of tax preference.--
                        (A) In general.--Section 57(a)(7) is amended by
                    striking ``An amount'' and inserting ``In the case of
                    stock

    [[Page 139 STAT. 241]]

                    acquired on or before the date of the enactment of the
                    Creating Small Business Jobs Act of 2010, an amount''.
                        (B) Conforming amendment.--Section 1202(a)(4) is
                    amended--
                              (i) by striking ``, and'' at the end of
                          subparagraph (B) and inserting a period, and
                              (ii) by striking subparagraph (C).
                (5) Other conforming amendments.--
                        (A) Paragraphs (3)(A) and (4)(A) of section 1202(a)
                    are each amended by striking ``paragraph (1)'' and
                    inserting ``paragraph (1)(A)''.
                        (B) Paragraph (4)(A) of section 1202(a) is amended
                    by inserting ``and on or before the applicable date''
                    after ``2010''.
                        (C) Sections 1202(b)(2), 1202(g)(2)(A), and
                    1202(j)(1)(A) are each amended by striking ``more than 5
                    years'' and inserting ``at least 3 years (more than 5
                    years in the case of stock acquired on or before the
                    applicable date)''.
                (6) <<NOTE: 26 USC 57 note.>> Effective dates.--
                        (A) In general.--Except as provided in subparagraph
                    (B), the amendments made by this subsection shall apply
                    to taxable years beginning after the date of the
                    enactment of this Act.
                        (B) Continued treatment as not item of tax
                    preference.--The amendments made by paragraph (4) shall
                    take effect as if included in the enactment of section
                    2011 of the Creating Small Business Jobs Act of 2010.

        (b) Increase in Per Issuer Limitation.--
                (1) In general.--Subparagraph (A) of section 1202(b)(1) is
            amended to read as follows:
                        ``(A) the applicable dollar limit for the taxable
                    year, or''.
                (2) Applicable dollar limit.--Section 1202 (b) is amended by
            adding at the end the following:
                ``(4) Applicable dollar limit.--For purposes of paragraph
            (1)(A), the applicable dollar limit for any taxable year with
            respect to eligible gain from 1 or more dispositions by a
            taxpayer of qualified business stock of a corporation is--
                        ``(A) if such stock was acquired by the taxpayer on
                    or before the applicable date, $10,000,000, reduced by
                    the aggregate amount of eligible gain taken into account
                    by the taxpayer under subsection (a) for prior taxable
                    years and attributable to dispositions of stock issued
                    by such corporation and acquired by the taxpayer before,
                    on, or after the applicable date, and
                        ``(B) if such stock was acquired by the taxpayer
                    after the applicable date, $15,000,000, reduced by the
                    sum of--
                              ``(i) the aggregate amount of eligible gain
                          taken into account by the taxpayer under
                          subsection (a) for prior taxable years and
                          attributable to dispositions of stock issued by
                          such corporation and acquired by the taxpayer
                          before, on, or after the applicable date, plus
                              ``(ii) the aggregate amount of eligible gain
                          taken into account by the taxpayer under
                          subsection (a) for the taxable year and
                          attributable to dispositions of

    [[Page 139 STAT. 242]]

                          stock issued by such corporation and acquired by
                          the taxpayer on or before the applicable date.
                ``(5) Inflation adjustment.--
                        ``(A) <<NOTE: Effective date.>> In general.--In the
                    case of any taxable year beginning after 2026, the
                    $15,000,000 amount in paragraph (4)(B) 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 the taxable year begins, determined
                          by substituting `calendar year 2025' for `calendar
                          year 2016' in subparagraph (A)(ii) thereof.
                    If any increase under this subparagraph is not a
                    multiple of $10,000, such increase shall be rounded to
                    the nearest multiple of $10,000.
                        ``(B) No increase once limit reached.--If, for any
                    taxable year, the eligible gain attributable to
                    dispositions of stock issued by a corporation and
                    acquired by the taxpayer after the applicable date
                    exceeds the applicable dollar limit, then
                    notwithstanding any increase under subparagraph (A) for
                    any subsequent taxable year, the applicable dollar limit
                    for such subsequent taxable year shall be zero.''.
                (3) Separate returns.--Subparagraph (A) of section
            1202(b)(3) is amended to read as follows:
                        ``(A) <<NOTE: Applicability.>> Separate returns.--In
                    the case of a separate return by a married individual
                    for any taxable year--
                              ``(i) paragraph (4)(A) shall be applied by
                          substituting `$5,000,000' for `$10,000,000', and
                              ``(ii) paragraph (4)(B) shall be applied by
                          substituting one-half of the dollar amount in
                          effect under such paragraph for the taxable year
                          for the amount so in effect.''.
               <<NOTE: 26 USC 1202 note.>>   (4) Effective date.--The
            amendments made by this subsection shall apply to taxable years
            beginning after the date of the enactment of this Act.

        (c) Increase in Limit in Aggregate Gross Assets.--
                (1) In general.--Subparagraphs (A) and (B) of section
            1202(d)(1) are each amended by striking ``$50,000,000'' and
            inserting ``$75,000,000''.
                (2) Inflation adjustment.--Section 1202(b) is amended by
            adding at the end the following:
                ``(4) <<NOTE: Effective date.>> Inflation adjustment.--In
            the case of any taxable year beginning after 2026, the
            $75,000,000 amounts in paragraphs (1)(A) and (1)(B) shall each
            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.
            If any increase under this paragraph is not a multiple of
            $10,000, such increase shall be rounded to the nearest multiple
            of $10,000.''.
                (3) <<NOTE: 26 USC 1202 note.>> Effective date.--The
            amendments made by this subsection shall apply to stock issued
            after the date of the enactment of this Act.

    [[Page 139 STAT. 243]]

    SEC. 70432. 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 <<NOTE: Reports.>> 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) <<NOTE: 26 USC 6050W note.>> 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) <<NOTE: 26 USC 3406 note.>> Effective date.--The
            amendment made by this subsection shall apply to calendar years
            beginning after December 31, 2024.
    SEC. 70433. 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''.

    [[Page 139 STAT. 244]]

        (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 Where 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) <<NOTE: 26 USC 3406 note.>> Effective Date.--The amendments made
    by this section shall apply with respect to payments made after December
    31, 2025.
    SEC. 70434. 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

    [[Page 139 STAT. 245]]

    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(h), as redesignated by
    subsection (e), 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, or 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) 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 <<NOTE: 26 USC prec. 161.>> by striking the
            item relating to section 181 and inserting the following new
            item:

    ``Sec. 181. Treatment of certain qualified productions.''.

        (i) <<NOTE: 26 USC 168 note.>> 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. 70435. 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 139K the following new section:

    [[Page 139 STAT. 246]]

    ``SEC. 139L. <<NOTE: Definitions. 26 USC 139L.>> 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, and
                        ``(B) the principal place of business of such entity
                    is in the United States (including any territory of the
                    United States),
                ``(4) any entity wholly owned, directly or indirectly, by a
            company that is considered an insurance holding company under
            the laws of any State if such entity satisfies the requirements
            described in subparagraphs (A) and (B) of paragraph (3), and
                ``(5) with respect to interest received on a qualified real
            estate loan secured by real estate described in subsection
            (c)(3)(A), any federally chartered instrumentality of the United
            States established under section 8.1(a) of the Farm Credit Act
            of 1971 (12 U.S.C. 2279aa-1(a)).

        ``(c) Qualified Real Estate Loan.--For purposes of this section--
                ``(1) In general.--The term `qualified real estate loan'
            means any loan--
                        ``(A) secured by--
                              ``(i) rural or agricultural real estate, or
                              ``(ii) a leasehold mortgage (with a status as
                          a lien) on rural or agricultural real estate,
                        ``(B) made to a person other than a specified
                    foreign entity (as defined in section 7701(a)(51)), and
                        ``(C) made after the date of the enactment of this
                    section.
            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--

    [[Page 139 STAT. 247]]

                        ``(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) <<NOTE: Applicability.>> Coordination With Section 265.--In
    the case of any qualified real estate loan, section 265 shall be
    applied--
                ``(1) by treating any qualified real estate loan for
            purposes of subsection (a)(2) thereof as an obligation the
            interest on which is wholly exempt from the taxes imposed by
            this subtitle,
                ``(2) by substituting `25 percent of the interest on
            indebtedness' for `Interest on indebtedness' in such subsection
            (a)(2),
                ``(3) by treating 25 percent of the adjusted basis of any
            qualified real estate loan as adjusted basis of a tax-exempt
            obligation described in subsection (b)(4)(B) thereof, and
                ``(4) by substituting `25 percent of the amount of such
            indebtedness' for `the amount of such indebtedness' in
            subsection (b)(6)(A)(a)(ii) thereof.''.

        (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 <<NOTE: 26 USC prec. 101>> amended by inserting after the
    item relating to section 139K the following new item:

    ``Sec. 139L. Interest on loans secured by rural or agricultural real
               property.''.

        (c) Effective Date.-- <<NOTE: 26 USC 139L note.>> The amendments
    made by this section shall apply to taxable years ending after the date
    of the enactment of this Act.
    SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR
                                CERTAIN DEVICES.

        (a) 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) $200 for each firearm transferred in the case of a
            machinegun or a destructive device, and
                ``(2) $0 for any firearm transferred which is not described
            in paragraph (1).''.

        (b) 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) $200 for each firearm made in the case of a machinegun
            or a destructive device, and
                ``(2) $0 for any firearm made which is not described in
            paragraph (1).''.

        (c) Conforming Amendment.--Section 4182(a) is amended by adding at
    the end the following: ``For purposes of the preceding sentence, any
    firearm described in section 5811(a)(2) shall be deemed to be a firearm
    on which the tax provided by section 5811 has been paid.''

    [[Page 139 STAT. 248]]

        (d) <<NOTE: 26 USC 4182 note.>>  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. 70437. TREATMENT OF CAPITAL GAINS FROM THE SALE OF CERTAIN
                                FARMLAND PROPERTY.

        (a) In General.--Part IV of subchapter O of chapter 1 is amended by
    redesignating section 1062 as section 1063 and by inserting after
    section 1061 the following new section:
    ``SEC. 1062. <<NOTE: 26 USC 1062 note.>> GAIN FROM THE SALE OR
                              EXCHANGE OF QUALIFIED FARMLAND PROPERTY
                              TO QUALIFIED FARMERS.

        ``(a) Election to Pay Tax in Installments.--In the case of gain from
    the sale or exchange of qualified farmland property to a qualified
    farmer, at the election of the taxpayer, the portion of the net income
    tax of such taxpayer for the taxable year of the sale or exchange which
    is equal to the applicable net tax liability shall be paid in 4 equal
    installments.
        ``(b) Rules Relating to Installment Payments.--
                ``(1) Date for payment of installments.--If an election is
            made under subsection (a), the first installment shall be paid
            on the due date (determined without regard to any extension of
            time for filing the return) for the return of tax for the
            taxable year in which the sale or exchange occurs and each
            succeeding installment shall be paid on the due date (as so
            determined) for the return of tax for the taxable year following
            the taxable year with respect to which the preceding installment
            was made.
                ``(2) Acceleration of payment.--
                        ``(A) In general.--If there is an addition to tax
                    for failure to timely pay any installment required under
                    this section, then the unpaid portion of all remaining
                    installments shall be due on the date of such failure.
                        ``(B) Individuals.--In the case of an individual, if
                    the individual dies, then the unpaid portion of all
                    remaining installment shall be paid on the due date for
                    the return of tax for the taxable year in which the
                    taxpayer dies.
                        ``(C) C corporations.--In the case of a taxpayer
                    which is a C corporation, trust, or estate, if there is
                    a liquidation or sale of substantially all the assets of
                    the taxpayer (including in a title 11 or similar case),
                    a cessation of business by the taxpayer (in the case of
                    a C corporation), or any similar circumstance, then the
                    unpaid portion of all remaining installments shall be
                    due on the date of such event (or in the case of a title
                    11 or similar case, the day before the petition is
                    filed). <<NOTE: Contracts.>> The preceding sentence
                    shall not apply to the sale of substantially all the
                    assets of a taxpayer to a buyer if such buyer enters
                    into an agreement with the Secretary under which such
                    buyer is liable for the remaining installments due under
                    this subsection in the same manner as if such buyer were
                    the taxpayer.
                ``(3) Proration of deficiency to installments.--If an
            election is made under subsection (a) to pay the applicable net
            tax liability in installments and a deficiency has been assessed
            with respect to such applicable net tax liability, the
            deficiency shall be prorated to the installments payable under
            subsection (a). The part of the deficiency so prorated to any

    [[Page 139 STAT. 249]]

            installment the date for payment of which has not arrived shall
            be collected at the same time as, and as a part of, such
            installment. <<NOTE: Notice.>> The part of the deficiency so
            prorated to any installment the date for payment of which has
            arrived shall be paid upon notice and demand from the Secretary.
            This section shall not apply if the deficiency is due to
            negligence, to intentional disregard of rules and regulations,
            or to fraud with intent to evade tax.

        ``(c) Election.--
                ``(1) <<NOTE: Deadline.>> In general.--Any election under
            subsection (a) shall be made not later than the due date for the
            return of tax for the taxable year described in subsection (a).
                ``(2) Partnerships and s corporations.--In the case of a
            sale or exchange described in subsection (a) by a partnership or
            S corporation, the election under subsection (a) shall be made
            at the partner or
            shareholder <<NOTE: Regulations. Guidance.>> level. The
            Secretary may prescribe such regulations or other guidance as
            necessary to carry out the purposes of this paragraph.

        ``(d) Definitions.--For purposes of this section--
                ``(1) Applicable net tax liability.--
                        ``(A) In general.--The applicable net tax liability
                    with respect to the sale or exchange of any property
                    described in subsection (a) is the excess (if any) of--
                              ``(i) such taxpayer's net income tax for the
                          taxable year, over
                              ``(ii) such taxpayer's net income tax for such
                          taxable year determined without regard to any gain
                          recognized from the sale or exchange of such
                          property.
                        ``(B) Net income tax.--The term `net income tax'
                    means the regular tax liability reduced by the credits
                    allowed under subparts A, B, and D of part IV of
                    subchapter A.
                ``(2) Qualified farmland property.--
                        ``(A) In general.--The term `qualified farmland
                    property' means real property located in the United
                    States--
                              ``(i) which--
                                        ``(I) has been used by the taxpayer
                                    as a farm for farming purposes, or
                                        ``(II) leased by the taxpayer to a
                                    qualified farmer for farming purposes,
                          during substantially all of the 10-year period
                          ending on the date of the qualified sale or
                          exchange, and
                              ``(ii) which is subject to a covenant or other
                          legally enforceable restriction which prohibits
                          the use of such property other than as a farm for
                          farming purposes for any period before the date
                          that is 10 years after the date of the sale or
                          exchange described in subsection (a).
                    For purposes of clause (i), property which is used or
                    leased by a partnership or S corporation in a manner
                    described in such clause shall be treated as used or
                    leased in such manner by each person who holds a direct
                    or indirect interest in such partnership or S
                    corporation.
                        ``(B) Farm; farming purposes.--The terms `farm' and
                    `farming purposes' have the respective meanings given
                    such terms under section 2032A(e).

    [[Page 139 STAT. 250]]

                ``(3) Qualified farmer.--The term `qualified farmer' means
            any individual who is actively engaged in farming (within the
            meaning of subsections (b) and (c) of section 1001 of the Food
            Security Act of 1986 (7 U.S.C. 1308-1(b) and (c))).

        ``(e) Return Requirement.--A taxpayer making an election under
    subsection (a) shall include with the return for the taxable year of the
    sale or exchange described in subsection (a) a copy of the covenant or
    other legally enforceable restriction described in subsection
    (d)(2)(A)(ii).''.
        (b) Clerical Amendment.--The table of sections for part IV of
    subchapter O of chapter 1 is amended by redesignating the item relating
    to section 1062 <<NOTE: 26 USC prec. 1051.>> as relating to section 1063
    and by inserting after the item relating to section 1061 the following
    new item:

    ``Sec. 1062. Gain from the sale or exchange of qualified farmland
               property to qualified farmers.''.

        (c) <<NOTE: 26 USC 1062 note.>> Effective Date.--The amendments made
    by this section shall apply to sales or exchanges in taxable years
    beginning after the date of the enactment of this Act.
    SEC. 70438. <<NOTE: Applicability.>> 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. 70439. 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) <<NOTE: 26 USC 856 note.>> Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2025.

       CHAPTER 5--ENDING GREEN NEW DEAL SPENDING, PROMOTING AMERICA-FIRST
                            ENERGY, AND OTHER REFORMS

              Subchapter A--Termination of Green New Deal Subsidies

    SEC. 70501. TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDIT.

        Section 25E(g) is amended by striking ``December 31, 2032'' and
    inserting ``September 30, 2025''.
    SEC. 70502. TERMINATION OF CLEAN VEHICLE CREDIT.

        (a) In General.--Section 30D(h) is amended by striking ``placed in
    service after December 31, 2032'' and inserting ``acquired after
    September 30, 2025''.
        (b) 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)--

    [[Page 139 STAT. 251]]

                        (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).
    SEC. 70503. TERMINATION OF QUALIFIED COMMERCIAL CLEAN VEHICLES
                                CREDIT.

        Section 45W(g) is amended by striking ``December 31, 2032'' and
    inserting ``September 30, 2025''.
    SEC. 70504. TERMINATION OF ALTERNATIVE FUEL VEHICLE REFUELING
                                PROPERTY CREDIT.

        Section 30C(i) is amended by striking ``December 31, 2032'' and
    inserting ``June 30, 2026''.
    SEC. 70505. TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT
                                CREDIT.

        (a) In General.--Section 25C(h) is amended by striking ``placed in
    service'' and all that follows through ``December 31, 2032'' and
    inserting ``placed in service after December 31, 2025''.
        (b) Conforming Amendment.--Section 25C(d)(2)(C) is amended to read
    as follows:
                        ``(C) Any oil furnace or hot water boiler which--
                              ``(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.''.
    SEC. 70506. TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT.

        (a) In General.--Section 25D(h) is amended by striking ``to property
    placed in service after December 31, 2034'' and inserting ``with respect
    to any expenditures made after 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 `` and before January 1,
            2033, 30 percent,'' and inserting ``30 percent.'', and
                (3) by striking paragraphs (4) and (5).
    SEC. 70507. TERMINATION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
                                DEDUCTION.

        Section 179D is amended by adding at the end the following new
    subsection:
        ``(i) Termination.--This section shall not apply with respect to
    property the construction of which begins after June 30, 2026.''.
    SEC. 70508. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT.

        Section 45L(h) is amended by striking ``December 31, 2032'' and
    inserting ``June 30, 2026''.
    SEC. 70509. TERMINATION OF COST RECOVERY FOR ENERGY PROPERTY.

        (a) Energy Property.--Section 168(e)(3)(B)(vi), as amended by
    section 13703 of Public Law 117-169, is amended--
                (1) by striking subclause (I), and
                (2) by redesignating subclauses (II) and (III) as subclauses
            (I) and (II), respectively.

    [[Page 139 STAT. 252]]

        (b) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendments made
    by subsection (a) shall apply to property the construction of which
    begins after December 31, 2024.
    SEC. 70510. MODIFICATIONS OF 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 shall be determined
                    under subsection (a) 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
                    shall be determined under subsection (a) 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), without regard to clause (i)(II)
                    thereof).''.

        (b) <<NOTE: 26 USC 45U note.>> Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after the date of
    enactment of this Act.
    SEC. 70511. TERMINATION OF CLEAN HYDROGEN PRODUCTION CREDIT.

        Section 45V(c)(3)(C) is amended by striking ``January 1, 2033'' and
    inserting ``January 1, 2028''.
    SEC. 70512. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY
                                PRODUCTION CREDIT.

        (a) <<NOTE: Definitions.>> Termination for Wind and Solar
    Facilities.--Section 45Y(d) is amended--
                (1) in paragraph (1), by striking ``The amount of'' and
            inserting ``Subject to paragraph (4), the amount of'', and
                (2) by striking paragraph (3) and inserting the following
            new paragraphs:
                ``(3) Applicable year.--For purposes of this subsection, the
            term `applicable year' means calendar year 2032.
                ``(4) Termination for wind and solar facilities.--
                        ``(A) In general.--This section shall not apply with
                    respect to any applicable facility placed in service
                    after December 31, 2027.
                        ``(B) Applicable facility.--For purposes of this
                    paragraph, the term `applicable facility' means a
                    qualified facility which--
                              ``(i) uses wind to produce electricity (within
                          the meaning of such term as used in section
                          45(d)(1), as determined without regard to any
                          requirement under such section with respect to the
                          date on which construction of property begins), or
                              ``(ii) uses solar energy to produce
                          electricity (within the meaning of such term as
                          used in section 45(d)(4), as determined without
                          regard to any requirement under such section with
                          respect to the date on which construction of
                          property begins).''.

    [[Page 139 STAT. 253]]

        (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 shall be determined
                    under subsection (a) for any taxable year if the
                    taxpayer is--
                              ``(i) a specified foreign entity (as defined
                          in section 7701(a)(51)(B)), or
                              ``(ii) a foreign-influenced entity (as defined
                          in section 7701(a)(51)(D), without regard to
                          clause (i)(II) thereof).

                    ``(B) <<NOTE: Determination. Applicability.>> Effective
                    control.--In the case of a taxpayer for which section
                    7701(a)(51)(D)(i)(II) is determined to apply for any
                    taxable year, no credit shall be determined under
                    subsection (a) for such taxable year if such
                    determination relates to a qualified facility described
                    in subsection (b)(1).''.

        (c) Definitions Relating to Prohibited Foreign Entities.--Section
    7701(a) is amended by adding at the end the following new paragraphs:
                ``(51) Prohibited foreign entity.--
                        ``(A) In general.--
                              ``(i) Definition.--The term `prohibited
                          foreign entity' means a specified foreign entity
                          or a foreign-influenced entity.
                              ``(ii) Determination.--
                                        ``(I) In general.--Subject to
                                    subclause (II), for any taxable year,
                                    the determination as to whether an
                                    entity is a specified foreign entity or
                                    foreign-influenced entity shall be made
                                    as of the last day of such taxable year.
                                        ``(II) Initial taxable year.--For
                                    purposes of the first taxable year
                                    beginning after the date of enactment of
                                    this paragraph, the determination as to
                                    whether an entity is a specified foreign
                                    entity described in clauses (i) through
                                    (iv) of subparagraph (B) shall be made
                                    as of the first day of such taxable
                                    year.
                        ``(B) Specified foreign entity.--For purposes of
                    this paragraph, 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

    [[Page 139 STAT. 254]]

                          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 (including any level of
                          government below the national level) of a covered
                          nation,
                              ``(ii) an agency or instrumentality of a
                          government described in clause (i),
                              ``(iii) a person who is a citizen or national
                          of a covered nation, provided that such person is
                          not an individual who is a citizen, national, or
                          lawful permanent resident of the United States,
                              ``(iv) 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
                              ``(v) an entity (including subsidiary
                          entities) controlled (as determined under
                          subparagraph (G)) by an entity described in clause
                          (i), (ii), (iii), or (iv).
                        ``(D) Foreign-influenced entity.--
                              ``(i) In general.--For purposes of
                          subparagraph (A), the term `foreign-influenced
                          entity' means an entity--
                                        ``(I) with respect to which, during
                                    the taxable year--
                                                ``(aa) a specified foreign
                                            entity has the direct authority
                                            to appoint a covered officer of
                                            such entity,
                                                ``(bb) a single specified
                                            foreign entity owns at least 25
                                            percent of such entity,
                                                ``(cc) one or more specified
                                            foreign entities own in the
                                            aggregate at least 40 percent of
                                            such entity, or
                                                ``(dd) at least 15 percent
                                            of the debt of such entity has
                                            been issued, in the aggregate,
                                            to 1 or more specified foreign
                                            entities, or
                                        ``(II) which, during the previous
                                    taxable year, made a payment to a
                                    specified foreign entity pursuant to a
                                    contract, agreement, or other
                                    arrangement which entitles such
                                    specified foreign entity (or an entity
                                    related to such specified foreign
                                    entity) to exercise effective control
                                    over--
                                                ``(aa) any qualified
                                            facility or energy storage
                                            technology of the taxpayer (or
                                            any person related to the
                                            taxpayer), or

    [[Page 139 STAT. 255]]

                                                ``(bb) with respect to any
                                            eligible component produced by
                                            the taxpayer (or any person
                                            related to the taxpayer)--
                                                    ``(AA) the extraction,
                                                processing, or recycling of
                                                any applicable critical
                                                mineral, or
                                                    ``(BB) the production of
                                                an eligible component which
                                                is not an applicable
                                                critical mineral.
                              ``(ii) Effective control.--
                                        ``(I) In general.--
                                                ``(aa) General rule.--
                                            Subject to subclause (II), for
                                            purposes of clause (i)(II), the
                                            term `effective control' means 1
                                            or more agreements or
                                            arrangements similar to those
                                            described in subclauses (II) and
                                            (III) which provide 1 or more
                                            contractual counterparties of a
                                            taxpayer with specific authority
                                            over key aspects of the
                                            production of eligible
                                            components, energy generation in
                                            a qualified facility, or energy
                                            storage which are not included
                                            in the measures of control
                                            through authority, ownership, or
                                            debt held which are described in
                                            clause (i)(I).

                                            ``(bb) <<NOTE: Regulations. Contr
                                            acts.>> Guidance.--The Secretary
                                            shall issue such guidance as is
                                            necessary to carry out the
                                            purposes of this clause,
                                            including the establishment of
                                            rules to prevent entities from
                                            evading, circumventing, or
                                            abusing the application of the
                                            restrictions described
                                            subparagraph (C) and subclauses
                                            (II) and (III) of this clause
                                            through a contract, agreement,
                                            or other arrangement.
                                        ``(II) Application of rules prior to
                                    issuance of guidance.--During any period
                                    prior to the date that the guidance
                                    described in subclause (I)(bb) is issued
                                    by the Secretary, for purposes of clause
                                    (i)(II), the term `effective control'
                                    means the unrestricted contractual right
                                    of a contractual counterparty to--
                                                ``(aa) determine the
                                            quantity or timing of production
                                            of an eligible component
                                            produced by the taxpayer,
                                                ``(bb) determine the amount
                                            or timing of activities related
                                            to the production of electricity
                                            undertaken at a qualified
                                            facility of the taxpayer or the
                                            storage of electrical energy in
                                            energy storage technology of the
                                            taxpayer,
                                                ``(cc) determine which
                                            entity may purchase or use the
                                            output of a production unit of
                                            the taxpayer that produces
                                            eligible components,
                                                ``(dd) determine which
                                            entity may purchase or use the
                                            output of a qualified facility
                                            of the taxpayer,
                                                ``(ee) restrict access to
                                            data critical to production or
                                            storage of energy undertaken at
                                            a qualified facility of the
                                            taxpayer, or to

    [[Page 139 STAT. 256]]

                                            the site of production or any
                                            part of a qualified facility or
                                            energy storage technology of the
                                            taxpayer, to the personnel or
                                            agents of such contractual
                                            counterparty, or
                                                ``(ff) on an exclusive
                                            basis, maintain, repair, or
                                            operate any plant or equipment
                                            which is necessary to the
                                            production by the taxpayer of
                                            eligible components or
                                            electricity.
                                        ``(III) <<NOTE: Intellectual
                                    property.>> Licensing and other
                                    agreements.--
                                                ``(aa) In general.--In
                                            addition to subclause (II), for
                                            purposes of clause (i)(II), the
                                            term `effective control' means,
                                            with respect to a licensing
                                            agreement for the provision of
                                            intellectual property (or any
                                            other contract, agreement or
                                            other arrangement entered into
                                            with a contractual counterparty
                                            related to such licensing
                                            agreement) with respect to a
                                            qualified facility, energy
                                            storage technology, or the
                                            production of an eligible
                                            component, any of the following:
                                                    ``(AA) A contractual
                                                right retained by the
                                                contractual counterparty to
                                                specify or otherwise direct
                                                1 or more sources of
                                                components, subcomponents,
                                                or applicable critical
                                                minerals utilized in a
                                                qualified facility, energy
                                                storage technology, or in
                                                the production of an
                                                eligible component.
                                                    ``(BB) A contractual
                                                right retained by the
                                                contractual counterparty to
                                                direct the operation of any
                                                qualified facility, any
                                                energy storage technology,
                                                or any production unit that
                                                produces an eligible
                                                component.
                                                    ``(CC) A contractual
                                                right retained by the
                                                contractual counterparty to
                                                limit the taxpayer's
                                                utilization of intellectual
                                                property related to the
                                                operation of a qualified
                                                facility or energy storage
                                                technology, or in the
                                                production of an eligible
                                                component.
                                                    ``(DD) A contractual
                                                right retained by the
                                                contractual counterparty to
                                                receive royalties under the
                                                licensing agreement or any
                                                similar agreement (or
                                                payments under any related
                                                agreement) beyond the 10th
                                                year of the agreement
                                                (including modifications or
                                                extensions thereof).
                                                    ``(EE) A contractual
                                                right retained by the
                                                contractual counterparty to
                                                direct or otherwise require
                                                the taxpayer to enter into
                                                an agreement for the
                                                provision of services for a
                                                duration longer than 2 years
                                                (including any modifications
                                                or extensions thereof).
                                                    ``(FF) Such contract,
                                                agreement, or other
                                                arrangement does not provide
                                                the licensee with all the
                                                technical data, information,
                                                and know-how necessary to

    [[Page 139 STAT. 257]]

                                                enable the licensee to
                                                produce the eligible
                                                component or components
                                                subject to the contract,
                                                agreement, or other
                                                arrangement without further
                                                involvement from the
                                                contractual counterparty or
                                                a specified foreign entity.
                                                    ``(GG) Such contract,
                                                agreement, or other
                                                arrangement was entered into
                                                (or modified) on or after
                                                the date of enactment of
                                                this paragraph.
                                                ``(bb) Exception.--
                                                    ``(AA) In general.--Item
                                                (aa) shall not apply in the
                                                case of a bona fide purchase
                                                or sale of intellectual
                                                property.
                                                    ``(BB) Bona fide
                                                purchase or sale.--For
                                                purposes of item (aa), any
                                                purchase or sale of
                                                intellectual property where
                                                the agreement provides that
                                                ownership of the
                                                intellectual property
                                                reverts to the contractual
                                                counterparty after a period
                                                of time shall not be
                                                considered a bona-fide
                                                purchase or sale.
                                        ``(IV) Persons related to the
                                    taxpayer.--For purposes of subclauses
                                    (I), (II), and (III), the term
                                    `taxpayer' shall include any person
                                    related to the taxpayer.
                                        ``(V) Contractual counterparty.--For
                                    purposes of this clause, the term
                                    `contractual counterparty' means an
                                    entity with which the taxpayer has
                                    entered into a contract, agreement, or
                                    other arrangement.

                          ``(iii) <<NOTE: Deadline. Regulations. Intellectual
                           property.>> Guidance.--Not later than December
                          31, 2026, the Secretary shall issue such guidance
                          as is necessary to carry out the purposes of this
                          subparagraph, including establishment of rules to
                          prevent entities from evading, circumventing, or
                          abusing the application of the restrictions
                          against impermissible technology licensing
                          arrangements with specified foreign entities, such
                          as through temporary transfers of intellectual
                          property, retention by a specified foreign entity
                          of a reversionary interest in transferred
                          intellectual property, or otherwise.
                        ``(E) Publicly traded entities.--
                              ``(i) In general.--
                                        ``(I) Nonapplication of certain
                                    foreign-controlled entity rules.--
                                    Subparagraph (C)(v) shall not apply in
                                    the case of any entity the securities of
                                    which are regularly traded on--
                                                ``(aa) a national securities
                                            exchange which is registered
                                            with the Securities and Exchange
                                            Commission,
                                                ``(bb) the national market
                                            system established pursuant to
                                            section 11A of the Securities
                                            and Exchange Act of 1934, or
                                                ``(cc) any other exchange or
                                            other market which the Secretary
                                            has determined in guidance
                                            issued under section
                                            1296(e)(1)(A)(ii) has

    [[Page 139 STAT. 258]]

                                            rules adequate to carry out the
                                            purposes of part VI of
                                            subchapter P of chapter 1 of
                                            subtitle A.
                                        ``(II) Nonapplication of certain
                                    foreign-influenced entity rules.--
                                    Subparagraph (D)(i)(I) shall not apply
                                    in the case of any entity--
                                                ``(aa) the securities of
                                            which are regularly traded in a
                                            manner described in subclause
                                            (I), or
                                                ``(bb) for which not less
                                            than 80 percent of the equity
                                            securities of such entity are
                                            owned directly or indirectly by
                                            an entity which is described in
                                            item (aa).
                                        ``(III) Exclusion of exchanges or
                                    markets in covered nations.--Subclause
                                    (I)(cc) shall not apply with respect to
                                    any exchange or market which--
                                                ``(aa) is incorporated or
                                            organized under the laws of a
                                            covered nation, or
                                                ``(bb) has its principal
                                            place of business in a covered
                                            nation.
                              ``(ii) Additional foreign-controlled entity
                          requirements for publicly traded companies.--In
                          the case of an entity described in clause (i)(I),
                          such entity shall be deemed to be a foreign-
                          controlled entity under subparagraph (C)(v) if
                          such entity is controlled (as determined under
                          subparagraph (G)) by--
                                        ``(I) 1 or more specified foreign
                                    entities (as determined without regard
                                    to subparagraph (B)(v)) that are each
                                    required to report their beneficial
                                    ownership pursuant to a rule described
                                    in clause (iii)(I)(bb), or
                                        ``(II) 1 or more foreign-controlled
                                    entities (as determined without regard
                                    to subparagraph (C)(v)) that are each
                                    required to report their beneficial
                                    ownership pursuant to a rule described
                                    in such clause.
                              ``(iii) Additional foreign-influenced entity
                          requirements for publicly traded companies.--In
                          the case of an entity described in clause (i)(II),
                          such entity shall be deemed to be a foreign-
                          influenced entity under subparagraph (D)(i)(I)
                          if--
                                        ``(I) during the taxable year--
                                                ``(aa) a specified foreign
                                            entity has the authority to
                                            appoint a covered officer of
                                            such entity,
                                                ``(bb) a single specified
                                            foreign entity required to
                                            report its beneficial ownership
                                            under Rule 13d-3 of the
                                            Securities and Exchange Act of
                                            1934 (or, in the case of an
                                            exchange or market described in
                                            clause (i)(I)(cc), an equivalent
                                            rule) owns not less than 25
                                            percent of such entity, or
                                                ``(cc) 1 or more specified
                                            foreign entities that are each
                                            required to report their
                                            beneficial ownership under Rule
                                            13d-3 of the Securities and
                                            Exchange Act of 1934 own, in the

    [[Page 139 STAT. 259]]

                                            aggregate, not less than 40
                                            percent of such entity, or
                                        ``(II) such entity has issued debt,
                                    as part of an original issuance, in
                                    excess of 15 percent of its publicly-
                                    traded debt to 1 or more specified
                                    foreign entities.
                        ``(F) 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).
                        ``(G) Determination of control.--For purposes of
                    subparagraph (C)(v), 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.
                        ``(H) <<NOTE: Applicability.>> Determination of
                    ownership.--For purposes of this paragraph, section
                    318(a)(2) 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.
                        ``(I) Other definitions.--For purposes of this
                    paragraph--
                              ``(i) Applicable critical mineral.--The term
                          `applicable critical mineral' has the same meaning
                          given such term under section 45X(c)(6).
                              ``(ii) Covered nation.--The term `covered
                          nation' has the same meaning given such term under
                          section 4872(f)(2) of title 10, United States
                          Code.
                              ``(iii) Eligible component.--The term
                          `eligible component' has the same meaning given
                          such term under section 45X(c)(1).
                              ``(iv) Energy storage technology.--The term
                          `energy storage technology' has the same meaning
                          given such term under section 48E(c)(2).
                              ``(v) Qualified facility.--The term `qualified
                          facility' means--
                                        ``(I) a qualified facility, as
                                    defined in section 45Y(b)(1), and
                                        ``(II) a qualified facility, as
                                    defined in section 48E(b)(3).
                              ``(vi) Related.--The term `related' shall have
                          the same meaning given such term under sections
                          267(b) and 707(b).

    [[Page 139 STAT. 260]]

                        ``(J) <<NOTE: Applicability. Effective
                    date.>> Beginning of construction.--For purposes of
                    applying any provision under this paragraph, the
                    beginning of construction with respect to any property
                    shall be determined pursuant to rules similar to the
                    rules under Internal Revenue Service Notice 2013-29 and
                    Internal Revenue Service Notice 2018-59 (as well as any
                    subsequently issued guidance clarifying, modifying, or
                    updating either such Notice), as in effect on January 1,
                    2025.
                        ``(K) 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, including rules to prevent the
                    circumvention of any rules or restrictions with respect
                    to prohibited foreign entities.
                ``(52) Material assistance from a prohibited foreign
            entity.--
                        ``(A) <<NOTE: Definition.>> In general.--The term
                    `material assistance from a prohibited foreign entity'
                    means--
                              ``(i) with respect to any qualified facility
                          or energy storage technology, a material
                          assistance cost ratio which is less than the
                          threshold percentage applicable under subparagraph
                          (B), or
                              ``(ii) with respect to any facility which
                          produces eligible components, a material
                          assistance cost ratio which is less than the
                          threshold percentage applicable under subparagraph
                          (C).
                        ``(B) Threshold percentage for qualified facilities
                    and energy storage technology. <<NOTE: Time
                    periods. Effective date.>> --For purposes of
                    subparagraph (A)(i), the threshold percentage shall be--
                              ``(i) in the case of a qualified facility the
                          construction of which begins--
                                        ``(I) during calendar year 2026, 40
                                    percent,
                                        ``(II) during calendar year 2027, 45
                                    percent,
                                        ``(III) during calendar year 2028,
                                    50 percent,
                                        ``(IV) during calendar year 2029, 55
                                    percent, and
                                        ``(V) after December 31, 2029, 60
                                    percent, and
                              ``(ii) in the case of energy storage
                          technology the construction of which begins--
                                        ``(I) during calendar year 2026, 55
                                    percent,
                                        ``(II) during calendar year 2027, 60
                                    percent,
                                        ``(III) during calendar year 2028,
                                    65 percent,
                                        ``(IV) during calendar year 2029, 70
                                    percent, and
                                        ``(V) after December 31, 2029, 75
                                    percent.
                        ``(C) Threshold percentage for eligible
                    components.--
                              ``(i) <<NOTE: Time periods. Effective
                          dates.>> In general.--For purposes of subparagraph
                          (A)(ii), the threshold percentage shall be--
                                        ``(I) in the case of any solar
                                    energy component (as such term is
                                    defined in section 45X(c)(3)(A)) which
                                    is sold--
                                                ``(aa) during calendar year
                                            2026, 50 percent,
                                                ``(bb) during calendar year
                                            2027, 60 percent,

    [[Page 139 STAT. 261]]

                                                ``(cc) during calendar year
                                            2028, 70 percent,
                                                ``(dd) during calendar year
                                            2029, 80 percent, and
                                                ``(ee) after December 31,
                                            2029, 85 percent,
                                        ``(II) in the case of any wind
                                    energy component (as such term is
                                    defined in section 45X(c)(4)(A)) which
                                    is sold--
                                                ``(aa) during calendar year
                                            2026, 85 percent, and
                                                ``(bb) during calendar year
                                            2027, 90 percent,
                                        ``(III) in the case of any inverter
                                    described in subparagraphs (B) through
                                    (G) of section 45X(c)(2) which is sold--
                                                ``(aa) during calendar year
                                            2026, 50 percent,
                                                ``(bb) during calendar year
                                            2027, 55 percent,
                                                ``(cc) during calendar year
                                            2028, 60 percent,
                                                ``(dd) during calendar year
                                            2029, 65 percent, and
                                                ``(ee) after December 31,
                                            2029, 70 percent,
                                        ``(IV) in the case of any qualifying
                                    battery component (as such term is
                                    defined in section 45X(c)(5)(A)) which
                                    is sold--
                                                ``(aa) during calendar year
                                            2026, 60 percent,
                                                ``(bb) during calendar year
                                            2027, 65 percent,
                                                ``(cc) during calendar year
                                            2028, 70 percent,
                                                ``(dd) during calendar year
                                            2029, 80 percent, and
                                                ``(ee) after December 31,
                                            2029, 85 percent, and
                                        ``(V) subject to clause (ii), in the
                                    case of any applicable critical mineral
                                    (as such term is defined in section
                                    45X(c)(6)) which is sold--
                                                ``(aa) after December 31,
                                            2025, and before January 1,
                                            2030, 0 percent,
                                                ``(bb) during calendar year
                                            2030, 25 percent,
                                                ``(cc) during calendar year
                                            2031, 30 percent,
                                                ``(dd) during calendar year
                                            2032, 40 percent, and
                                                ``(ee) after December 31,
                                            2032, 50 percent.
                              ``(ii) Adjusted threshold percentage for
                          applicable critical
                          minerals. <<NOTE: Deadline.>> --Not later than
                          December 31, 2027, the Secretary shall issue
                          threshold percentages for each of the applicable
                          critical minerals described in section 45X(c)(6)),
                          which shall--
                                        ``(I) apply in lieu of the threshold
                                    percentage determined under clause
                                    (i)(V) for each calendar year, and

    [[Page 139 STAT. 262]]

                                        ``(II) equal or exceed the threshold
                                    percentage which would otherwise apply
                                    with respect to such applicable critical
                                    mineral under such clause for such
                                    calendar year, taking into account--
                                                ``(aa) domestic geographic
                                            availability,
                                                ``(bb) supply chain
                                            constraints,
                                                ``(cc) domestic processing
                                            capacity needs, and
                                                ``(dd) national security
                                            concerns.
                        ``(D) Material assistance cost ratio.--
                              ``(i) Qualified facilities and energy storage
                          technology. <<NOTE: Definition.>> --For purposes
                          of subparagraph (A)(i), the term `material
                          assistance cost ratio' means the amount (expressed
                          as a percentage) equal to the quotient of--
                                        ``(I) an amount equal to--
                                                ``(aa) the total direct
                                            costs to the taxpayer
                                            attributable to all manufactured
                                            products (including components)
                                            which are incorporated into the
                                            qualified facility or energy
                                            storage technology upon
                                            completion of construction,
                                            minus
                                                ``(bb) the total direct
                                            costs to the taxpayer
                                            attributable to all manufactured
                                            products (including components)
                                            which are--
                                                    ``(AA) incorporated into
                                                the qualified facility or
                                                energy storage technology
                                                upon completion of
                                                construction, and
                                                    ``(BB) mined, produced,
                                                or manufactured by a
                                                prohibited foreign entity,
                                                divided by
                                        ``(II) the amount described in
                                    subclause (I)(aa).
                              ``(ii) <<NOTE: Definition.>> Eligible
                          components.--For purposes of subparagraph (A)(ii),
                          the term `material assistance cost ratio' means
                          the amount (expressed as a percentage) equal to
                          the quotient of--
                                        ``(I) an amount equal to--
                                                ``(aa) with respect to an
                                            eligible component, the total
                                            direct material costs that are
                                            paid or incurred (within the
                                            meaning of section 461 and any
                                            regulations issued under section
                                            263A) by the taxpayer for
                                            production of such eligible
                                            component, minus
                                                ``(bb) with respect to an
                                            eligible component, the total
                                            direct material costs that are
                                            paid or incurred (within the
                                            meaning of section 461 and any
                                            regulations issued under section
                                            263A) by the taxpayer for
                                            production of such eligible
                                            component that are mined,
                                            produced, or manufactured by a
                                            prohibited foreign entity,
                                            divided by
                                        ``(II) the amount described in
                                    subclause (I)(aa).
                              ``(iii) Safe harbor tables.--

                                    ``(I) <<NOTE: Deadline. Guidance.>> In
                                    general.--Not later than December 31,
                                    2026, the Secretary shall issue safe
                                    harbor tables (and such other guidance
                                    as deemed necessary) to--

    [[Page 139 STAT. 263]]

                                                ``(aa) identify the
                                            percentage of total direct costs
                                            of any manufactured product
                                            which is attributable to a
                                            prohibited foreign entity,
                                                ``(bb) identify the
                                            percentage of total direct
                                            material costs of any eligible
                                            component which is attributable
                                            to a prohibited foreign entity,
                                            and

                                            ``(cc) <<NOTE: Determination.>> p
                                            rovide all rules necessary to
                                            determine the amount of a
                                            taxpayer's material assistance
                                            from a prohibited foreign entity
                                            within the meaning of this
                                            paragraph.
                                        ``(II) <<NOTE: Effective
                                    date.>> Safe harbors prior to
                                    issuance.--For purposes of this
                                    paragraph, prior to the date on which
                                    the Secretary issues the safe harbor
                                    tables described in subclause (I), and
                                    for construction of a qualified facility
                                    or energy storage technology which
                                    begins on or before the date which is 60
                                    days after the date of issuance of such
                                    tables, a taxpayer may--
                                                ``(aa) use the tables
                                            included in Internal Revenue
                                            Service Notice 2025-08 to
                                            establish the percentage of the
                                            total direct costs of any listed
                                            eligible component and any
                                            manufactured product, and

                                            ``(bb) <<NOTE: Certification.>> r
                                            ely on a certification by the
                                            supplier of the manufactured
                                            product, eligible component, or
                                            constituent element, material,
                                            or subcomponent of an eligible
                                            component--
                                                    ``(AA) of the total
                                                direct costs or the total
                                                direct material costs, as
                                                applicable, of such product
                                                or component that was not
                                                produced or manufactured by
                                                a prohibited foreign entity,
                                                or
                                                    ``(BB) that such product
                                                or component was not
                                                produced or manufactured by
                                                a prohibited foreign entity.
                                        ``(III) Exception.--Notwithstanding
                                    subclauses (I) and (II)--
                                                ``(aa) if the taxpayer knows
                                            (or has reason to know) that a
                                            manufactured product or eligible
                                            component was produced or
                                            manufactured by a prohibited
                                            foreign entity, the taxpayer
                                            shall treat all direct costs
                                            with respect to such
                                            manufactured product, or all
                                            direct material costs with
                                            respect to such eligible
                                            component, as attributable to a
                                            prohibited foreign entity, and
                                                ``(bb) if the taxpayer knows
                                            (or has reason to know) that the
                                            certification referred to in
                                            subclause (II)(bb) pertaining to
                                            a manufactured product or
                                            eligible component is
                                            inaccurate, the taxpayer may not
                                            rely on such certification.
                                        ``(IV) Certification requirement.--
                                    In a manner consistent with Treasury
                                    Regulation section 1.45X-4(c)(4)(i) (as
                                    in effect on the date of

    [[Page 139 STAT. 264]]

                                    enactment of this paragraph), the
                                    certification referred to in subclause
                                    (II)(bb) shall--
                                                ``(aa) include--
                                                    ``(AA) the supplier's
                                                employer identification
                                                number, or
                                                    ``(BB) any such similar
                                                identification number issued
                                                by a foreign government,
                                                ``(bb) be signed under
                                            penalties of perjury,
                                                ``(cc) <<NOTE: Time
                                            period.>> be retained by the
                                            supplier and the taxpayer for a
                                            period of not less than 6 years
                                            and shall be provided to the
                                            Secretary upon request, and
                                                ``(dd) be from the supplier
                                            from which the taxpayer
                                            purchased any manufactured
                                            product, eligible component, or
                                            constituent elements, materials,
                                            or subcomponents of an eligible
                                            component, stating--
                                                    ``(AA) that such
                                                property was not produced or
                                                manufactured by a prohibited
                                                foreign entity and that the
                                                supplier does not know (or
                                                have reason to know) that
                                                any prior supplier in the
                                                chain of production of that
                                                property is a prohibited
                                                foreign entity,
                                                    ``(BB) for purposes of
                                                section 45X, the total
                                                direct material costs for
                                                each component, constituent
                                                element, material, or
                                                subcomponent that were not
                                                produced or manufactured by
                                                a prohibited foreign entity,
                                                or
                                                    ``(CC) for purposes of
                                                section 45Y or section 48E,
                                                the total direct costs
                                                attributable to all
                                                manufactured products that
                                                were not produced or
                                                manufactured by a prohibited
                                                foreign entity.
                              ``(iv) <<NOTE: Designation. Effective
                          dates.>> Existing contract.--Upon the election of
                          the taxpayer (in such form and manner as the
                          Secretary shall designate), in the case of any
                          manufactured product, eligible component, or
                          constituent element, material, or subcomponent of
                          an eligible component which is--
                                        ``(I) acquired by the taxpayer, or
                                    manufactured or assembled by or for the
                                    taxpayer, pursuant to a binding written
                                    contract which was entered into prior to
                                    June 16, 2025, and
                                        ``(II)(aa) placed into service
                                    before January 1, 2030 (or, in the case
                                    of an applicable facility, as defined in
                                    section 45Y(d)(4)(B), before January 1,
                                    2028) in a facility the construction of
                                    which began before August 1, 2025, or
                                        ``(bb) in the case of a constituent
                                    element, material, or subcomponent, used
                                    in a product sold before January 1,
                                    2030,
                          the cost to the taxpayer with respect to such
                          product, component, element, material, or
                          subcomponent shall not be included for purposes of
                          determining the material assistance cost ratio
                          under this subparagraph.

    [[Page 139 STAT. 265]]

                              ``(v) <<NOTE: Guidance.>> Anti-circumvention
                          rules.--The Secretary shall prescribe such
                          regulations and guidance as may be necessary or
                          appropriate to prevent circumvention of the rules
                          under this subparagraph, including prevention of--
                                        ``(I) any abuse of the exception
                                    provided under clause (iv) through the
                                    stockpiling of any manufactured product,
                                    eligible component, or constituent
                                    element, material, or subcomponent of an
                                    eligible component during any period
                                    prior to the application of the
                                    requirements under this paragraph, or
                                        ``(II) any evasion with respect to
                                    the requirements of this subparagraph
                                    where the facts and circumstances
                                    demonstrate that the beginning of
                                    construction of a qualified facility or
                                    energy storage technology has not in
                                    fact occurred.
                        ``(E) Other definitions.--For purposes of this
                    paragraph--
                              ``(i) Eligible component.--The term `eligible
                          component' means--
                                        ``(I) any property described in
                                    section 45X(c)(1), or
                                        ``(II) any component which is
                                    identified by the Secretary pursuant to
                                    regulations or guidance issued under
                                    subparagraph (G).
                              ``(ii) Energy storage technology.--The term
                          `energy storage technology' has the same meaning
                          given such term under section 48E(c)(2).
                              ``(iii) Manufactured product.--The term
                          `manufactured product' means--
                                        ``(I) a manufactured product which
                                    is a component of a qualified facility,
                                    as described in section 45Y(g)(11)(B)
                                    and any guidance issued thereunder, or
                                        ``(II) any product which is
                                    identified by the Secretary pursuant to
                                    regulations or guidance issued under
                                    subparagraph (G).
                              ``(iv) Qualified facility.--The term
                          `qualified facility' means--
                                        ``(I) a qualified facility, as
                                    defined in section 45Y(b)(1),
                                        ``(II) a qualified facility, as
                                    defined in section 48E(b)(3), and
                                        ``(III) any qualified
                                    interconnection property (as defined in
                                    section 48E(b)(4)) which is part of the
                                    qualified investment with respect to a
                                    qualified facility (as described in
                                    section 48E(b)(1)).
                        ``(F) Determination of ownership; beginning of
                    construction. <<NOTE: Applicability.>> --Rules similar
                    to the rules under subparagraphs (H) and (J) of
                    paragraph (51) shall apply for purposes of this
                    paragraph.
                        ``(G) 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, including--

    [[Page 139 STAT. 266]]

                              ``(i) identification of components or products
                          for purposes of clauses (i) and (iii) of
                          subparagraph (E), and
                              ``(ii) for purposes of subparagraph (A)(ii),
                          rules to address facilities which produce more
                          than one eligible component.''.

        (d) Denial of Credit for Certain Wind and Solar Leasing
    Arrangements.--Section 45Y is amended by adding at the end the following
    new subsection:
        ``(h) Denial of Credit for Wind and Solar Leasing Arrangements.--No
    credit shall be determined under this section with respect to any
    production of electricity during the taxable year with respect to
    property described in paragraph (1) or (4) of section 25D(d) (as applied
    by substituting `lessee' for `taxpayer') if the taxpayer rents or leases
    such property to a third party during such taxable year.''.
        (e) Emissions Rates Tables.--Section 45Y(b)(2)(C) is amended by
    adding at the end the following new clause:
                              ``(iii) <<NOTE: Determinations.>> Existing
                          studies.--For purposes of clause (i), in
                          determining greenhouse gas emissions rates for
                          types or categories of facilities for the purpose
                          of determining whether a facility satisfies the
                          requirements under paragraph (1), the Secretary
                          shall consider studies published on or before the
                          date of enactment of this clause which demonstrate
                          a net lifecycle greenhouse gas emissions rate
                          which is not greater than zero using widely
                          accepted lifecycle assessment concepts, such as
                          concepts described in standards developed by the
                          International Organization for Standardization.''.

        (f) Nuclear Energy Communities.--
                (1) In general.--Section 45(b)(11) is amended--
                        (A) in subparagraph (B)--
                              (i) in clause (ii)(II), by striking ``or'' at
                          the end,
                              (ii) in clause (iii)(II), by striking the
                          period at the end and inserting ``, or'', and
                              (iii) by adding at the end the following new
                          clause:
                              ``(iv) <<NOTE: Time period.>> for purposes of
                          any qualified facility which is an advanced
                          nuclear facility, a metropolitan statistical area
                          which has (or, at any time during the period
                          beginning after December 31, 2009, had) 0.17
                          percent or greater direct employment related to
                          the advancement of nuclear power, including
                          employment related to--
                                        ``(I) an advanced nuclear facility,
                                        ``(II) advanced nuclear power
                                    research and development,
                                        ``(III) nuclear fuel cycle research,
                                    development, or production, including
                                    mining, enrichment, manufacture,
                                    storage, disposal, or recycling of
                                    nuclear fuel, and
                                        ``(IV) the manufacturing or assembly
                                    of components used in an advanced
                                    nuclear facility.'', and
                        (B) by adding at the end the following new
                    subparagraph:
                        ``(C) Advanced nuclear facilities.--

    [[Page 139 STAT. 267]]

                              ``(i) <<NOTE: Definition.>> In general.--
                          Subject to clause (ii), for purposes of
                          subparagraph (B)(iv), the term `advanced nuclear
                          facility' means any nuclear facility the reactor
                          design for which is approved in the manner
                          described in section 45J(d)(2).
                              ``(ii) Special rule.--For purposes of clause
                          (i), a facility shall be deemed to have a reactor
                          design which is approved in the manner described
                          in section 45J(d)(2) if the Nuclear Regulatory
                          Commission has authorized construction and issued
                          a site-specific construction permit or combined
                          license with respect to such facility (without
                          regard to whether the reactor design was approved
                          after December 31, 1993).''.
                (2) Nonapplication for clean electricity investment
            credit.--Section 48E(a)(3)(A)(i) is amended by inserting ``, as
            applied without regard to clause (iv) thereof'' after ``section
            45(b)(11)(B)''.

        (g) Conforming Amendments.--Section 45Y(b)(1) is amended--
                (1) by redesignating subparagraph (D) as subparagraph (E),
            and
                (2) by inserting after subparagraph (C) the following new
            subparagraph:
                        ``(D) Determination of capacity.--For purposes of
                    subparagraph (C), additions of capacity of a facility
                    shall be determined in any reasonable manner, including
                    based on--
                              ``(i) determinations by, or reports to, the
                          Federal Energy Regulatory Commission (including
                          interconnection agreements), the Nuclear
                          Regulatory Commission, or any similar entity,
                          reflecting additions of capacity,
                              ``(ii) determinations or reports reflecting
                          additions of capacity made by an independent
                          professional engineer,
                              ``(iii) reports to, or issued by, regional
                          transmission organizations or independent system
                          operators reflecting additions of capacity, or
                              ``(iv) any other method or manner provided by
                          the Secretary.''.

        (h) Prohibition on Transfer of Credits to Specified Foreign
    Entities.--Section 6418(g) is amended by adding at the end the following
    new paragraph:
                ``(5) Prohibition on transfer of credits to specified
            foreign entities.--With respect to any eligible credit described
            in clause (iii), (iv), (vi), (vii), (viii), or (xi) of
            subsection (f)(1)(A), an eligible taxpayer may not elect to
            transfer any portion of such credit to a taxpayer that is a
            specified foreign entity (as defined in section
            7701(a)(51)(B)).''.

        (i) Extension of Period of Limitations for Errors Relating to
    Determining of Material Assistance From a Prohibited Foreign Entity.--
    Section 6501 is amended--
                (1) by redesignating subsection (o) as subsection (p), and
                (2) by inserting after subsection (n) the following new
            subsection:

        ``(o) Material Assistance From a Prohibited Foreign Entity.--In the
    case of a deficiency attributable to an error with

    [[Page 139 STAT. 268]]

    respect to the determination under section 7701(a)(52) for any taxable
    year, such deficiency may be assessed at any time within 6 years after
    the return for such year was filed.''.
        (j) Imposition of Accuracy-related Penalties.--
                (1) In general.--Section 6662 is amended by adding at the
            end the following new subsection:

        ``(m) Substantial Understatement of Income Tax Due to Disallowance
    of Applicable Energy Credits.--
                ``(1) In general.--In the case of a taxpayer for which there
            is a disallowance of an applicable energy credit for any taxable
            year, for purposes of determining whether there is a substantial
            understatement of income tax for such taxable year, subsection
            (d)(1) shall be applied--
                        ``(A) in subparagraphs (A) and (B), by substituting
                    `1 percent' for `10 percent' each place it appears, and
                        ``(B) without regard to subparagraph (C).
                ``(2) Disallowance of an applicable energy credit.--
            For <<NOTE: Definition.>>  purposes of this subsection, the term
            `disallowance of an applicable energy credit' means the
            disallowance of a credit under section 45X, 45Y, or 48E by
            reason of overstating the material assistance cost ratio (as
            determined under section 7701(a)(52)) with respect to any
            qualified facility, energy storage technology, or facility which
            produces eligible components.''.
                (2) Conforming amendment.--Section 6417(d)(6) is amended by
            adding at the end the following new subparagraph:
                        ``(D) Disallowance of an applicable energy credit.--
                    In the case of an applicable entity which made an
                    election under subsection (a) with respect to an
                    applicable credit for which there is a disallowance
                    described in section 6662(m)(2), subparagraph (A) shall
                    apply with respect to any excessive payment resulting
                    from such disallowance.''.

        (k) Penalty for Substantial Misstatements on Certification Provided
    by Supplier.--
                (1) In general.--Part I of subchapter B of chapter 68 is
            amended by inserting after section 6695A the following new
            section:
    ``SEC. 6695B. <<NOTE: 26 USC 6695B.>> PENALTY FOR SUBSTANTIAL
                                MISSTATEMENTS ON CERTIFICATION
                                PROVIDED BY SUPPLIER.

        ``(a) Imposition of Penalty.--If--
                ``(1) a person--
                        ``(A) provides a certification described in clause
                    (iii)(II)(bb) of section 7701(a)(52)(D) with respect to
                    any manufactured product, eligible component, or
                    constituent element, material, or subcomponent of an
                    eligible component, and
                        ``(B) knows, or reasonably should have known, that
                    the certification would be used in connection with a
                    determination under such section,
                ``(2) such person knows, or reasonably should have known,
            that such certification is inaccurate or false with respect to--
                        ``(A) whether such property was produced or
                    manufactured by a prohibited foreign entity, or
                        ``(B) the total direct costs or total direct
                    material costs of such property that was not produced or
                    manufactured

    [[Page 139 STAT. 269]]

                    by a prohibited foreign entity that were provided on
                    such certification, and
                ``(3) the inaccuracy or falsity described in paragraph (2)
            resulted in the disallowance of an applicable energy credit (as
            defined in section 6662(m)(2)) and an understatement of income
            tax (within the meaning of section 6662(d)(2)) for the taxable
            year in an amount which exceeds the lesser of--
                        ``(A) 5 percent of the tax required to be shown on
                    the return for the taxable year, or
                        ``(B) $100,000,
            then such person shall pay a penalty in the amount determined
            under subsection (b).

        ``(b) Amount of Penalty.--The amount of the penalty imposed under
    subsection (a) on any person with respect to a certification shall be
    equal to the greater of--
                ``(1) 10 percent of the amount of the underpayment (as
            defined in section 6664(a)) solely attributable to the
            inaccuracy or falsity described in subsection (a)(2), or
                ``(2) $5,000.

        ``(c) Exception.--No penalty shall be imposed under subsection (a)
    if the person establishes to the satisfaction of the Secretary that any
    inaccuracy or falsity described in subsection (a)(2) is due to a
    reasonable cause and not willful neglect.
        ``(d) Definitions.--Any term used in this section which is also used
    in section 7701(a)(52) shall have the meaning given such term in such
    section.''.
                (2) Clerical amendments.--
                        (A) Section 6696 is amended--
                              (i) in the heading, by striking ``and 6695a''
                          and inserting ``6695a, and 6695b'',
                              (ii) in subsections (a), (b), and (e), by
                          striking ``and 6695A'' each place it appears and
                          inserting ``6695A, and 6695B'',
                              (iii) in subsection (c), by striking ``or
                          6695A'' and inserting ``6695A, or 6695B'', and
                              (iv) in subsection (d)--
                                        (I) in paragraph (1), by inserting
                                    ``(or, in the case of any penalty under
                                    section 6695B, 6 years)'' after
                                    ``assessed within 3 years'', and
                                        (II) in paragraph (2), by inserting
                                    ``(or, in the case of any claim for
                                    refund of an overpayment of any penalty
                                    assessed under section 6695B, 6 years)''
                                    after ``filed within 3 years''.
                        (B) The table of sections for part I of subchapter B
                    of chapter 68 <<NOTE: 26 USC prec. 6671.>> is amended by
                    inserting after item relating to section 6695A the
                    following new item:

    ``Sec. 6695B. Penalty for substantial misstatements on certification
               provided by supplier.''.

        (l) <<NOTE: Applicability. 26 USC 45 note.>> Effective Dates.--
                (1) In general.--Except as provided in paragraphs (2), (3),
            and (4), the amendments made by this section shall apply to
            taxable years beginning after the date of enactment of this Act.
                (2) Material assistance from prohibited foreign entities.--
            The amendments made by subsection (b)(1) shall apply to
            facilities for which construction begins after December 31,
            2025.

    [[Page 139 STAT. 270]]

                (3) Penalty for substantial misstatements on certification
            provided by supplier.--The amendments made by subsection (k)
            shall apply to certifications provided after December 31, 2025.
                (4) Termination for wind and solar facilities.--The
            amendments made by subsection (a) shall apply to facilities the
            construction of which begins after the date which is 12 months
            after the date of enactment of this Act.
    SEC. 70513. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY
                                INVESTMENT CREDIT.

        (a) Termination for Wind and Solar Facilities.--Section 48E(e) is
    amended--
                (1) in paragraph (1), by striking ``The amount of'' and
            inserting ``Subject to paragraph (4), the amount of'', and
                (2) by adding at the end the following new paragraph:
                ``(4) Termination for wind and solar facilities.--
                        ``(A) In general.--This section shall not apply to
                    any qualified property placed in service by the taxpayer
                    after December 31, 2027, which is part of an applicable
                    facility.
                        ``(B) <<NOTE: Definition.>>  Applicable facility.--
                    For purposes of this paragraph, the term `applicable
                    facility' means a qualified facility which--
                              ``(i) uses wind to produce electricity (within
                          the meaning of such term as used in section
                          45(d)(1), as determined without regard to any
                          requirement under such section with respect to the
                          date on which construction of property begins), or
                              ``(ii) uses solar energy to produce
                          electricity (within the meaning of such term as
                          used in section 45(d)(4), as determined without
                          regard to any requirement under such section with
                          respect to the date on which construction of
                          property begins).
                        ``(C) Exception.--This paragraph shall not apply
                    with respect to any energy storage technology which is
                    placed in service at any applicable facility.''.

        (b) Restrictions Relating to Prohibited Foreign Entities.--
                (1) In general.--Section 48E is amended--
                        (A) in subsection (b)--
                              (i) by redesignating paragraph (6) as
                          paragraph (7), and
                              (ii) by inserting after paragraph (5) the
                          following new paragraph:
                ``(6) Material assistance from prohibited foreign
            entities.--The terms `qualified facility' and `qualified
            interconnection property' shall not include any facility or
            property the construction, reconstruction, or erection of which
            begins after December 31, 2025, if the construction,
            reconstruction, or erection of such facility or property
            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

    [[Page 139 STAT. 271]]

            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) Additional restrictions.--Section 48E(d) is amended by
            adding at the end the following new paragraph:
                ``(6) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--No credit shall be determined
                    under subsection (a) for any taxable year if the
                    taxpayer is--
                              ``(i) a specified foreign entity (as defined
                          in section 7701(a)(51)(B)), or
                              ``(ii) a foreign-influenced entity (as defined
                          in section 7701(a)(51)(D), without regard to
                          clause (i)(II) thereof).

                    ``(B) <<NOTE: Determination. Applicability.>> Effective
                    control.--In the case of a taxpayer for which section
                    7701(a)(51)(D)(i)(II) is determined to apply for any
                    taxable year, no credit shall be determined under
                    subsection (a) for such taxable year if such
                    determination relates to a qualified facility described
                    in subsection (b)(3) or energy storage technology
                    described in subsection (c)(2).''.
                (3) Recapture.--
                        (A) In general.--Section 50(a) is amended--
                              (i) by redesignating paragraphs (4) through
                          (6) as paragraphs (5) through (7), respectively,
                              (ii) by inserting after paragraph (3) the
                          following new paragraph:
                ``(4) <<NOTE: Definitions.>> Payments to prohibited foreign
            entities.--
                        ``(A) <<NOTE: Time period.>> 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 section 7701(a)(51)(D)(i)(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.'',
                              (iii) in paragraph (5), as redesignated by
                          clause (i), 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

    [[Page 139 STAT. 272]]

                              (iv) in paragraph (7), as redesignated by
                          clause (i), by striking ``or (3)'' and inserting
                          ``(3), or (4)''.
                        (B) Conforming amendments.--
                              (i) Section 1371(d)(1) is amended by striking
                          ``section 50(a)(5)'' and inserting ``section
                          50(a)(6)''.
                              (ii) Section 6418(g)(3) is amended by striking
                          ``subsection (a)(5)'' each place it appears and
                          inserting ``subsection (a)(7)''.

        (c) Denial of Credit for Expenditures for Certain Wind and Solar
    Leasing Arrangements.--
                (1) In general.--Section 48E is amended--
                        (A) by redesignating subsection (i) as subsection
                    (j), and
                        (B) by inserting after subsection (h) the following
                    new subsection:

        ``(i) Denial of Credit for Expenditures for Wind and Solar Leasing
    Arrangements.--No credit shall be determined under this section for any
    qualified investment during the taxable year with respect to property
    described in paragraph (1) or (4) of section 25D(d) (as applied by
    substituting `lessee' for `taxpayer') if the taxpayer rents or leases
    such property to a third party during such taxable year.''.
                (2) Conforming rules.--Section 50 is amended by adding at
            the end the following new subsection:

        ``(e) <<NOTE: Determination.>>  Rules for Geothermal Heat Pumps.--
    For purposes of this section and section 168, the ownership of energy
    property described in section 48(a)(3)(A)(vii) shall be determined
    without regard to whether such property is readily usable by a person
    other than the lessee or service recipient.''.

        (d) Domestic Content Rules.--Subparagraph (B) of section 48E(a)(3)
    is amended to read as follows:
                        ``(B) <<NOTE: Applicability. Determination. Time
                    periods.>>  Domestic content.--Rules similar to the
                    rules of section 48(a)(12) shall apply, except that, for
                    purposes of subparagraph (B) of such section and the
                    application of rules similar to the rules of section
                    45(b)(9)(B), the adjusted percentage (as determined
                    under section 45(b)(9)(C)) shall be determined as
                    follows:
                              ``(i) In the case of any qualified investment
                          with respect to any qualified facility or energy
                          storage technology the construction of which
                          begins before June 16, 2025, 40 percent (or, in
                          the case of a qualified facility which is an
                          offshore wind facility, 20 percent).
                              ``(ii) In the case of any qualified investment
                          with respect to any qualified facility or energy
                          storage technology the construction of which
                          begins on or after June 16, 2025, and before
                          January 1, 2026, 45 percent (or, in the case of a
                          qualified facility which is an offshore wind
                          facility, 27.5 percent).
                              ``(iii) In the case of any qualified
                          investment with respect to any qualified facility
                          or energy storage technology the construction of
                          which begins during calendar year 2026, 50 percent
                          (or, in the case of a qualified facility which is
                          an offshore wind facility, 35 percent).

    [[Page 139 STAT. 273]]

                              ``(iv) <<NOTE: Effective date.>>  In the case
                          of any qualified investment with respect to any
                          qualified facility or energy storage technology
                          the construction of which begins after December
                          31, 2026, 55 percent.''.

        (e) Elimination of Energy Credit for Certain Energy Property.--
    Section 48(a)(2) is amended--
                (1) in subparagraph (A)(ii), by striking ``2 percent'' and
            inserting ``0 percent'', and
                (2) by adding at the end the following new subparagraph:
                        ``(C) Nonapplication of increases to energy
                    percentage.--For purposes of energy property described
                    in subparagraph (A)(ii), the energy percentage
                    applicable to such property pursuant to such
                    subparagraph shall not be increased or otherwise
                    adjusted by any provision of this section.''.

        (f) Application of Clean Electricity Investment Credit to Qualified
    Fuel Cell Property.--Section 48E, as amended by subsection (c), is
    amended--
                (1) by redesignating subsection (j) as subsection (k), and
                (2) by inserting after subsection (i) the following new
            subsection:

        ``(j) Application to Qualified Fuel Cell Property.--For purposes of
    this section, in the case of any qualified fuel cell property (as
    defined in section 48(c)(1), as applied without regard to subparagraph
    (E) thereof)--
                ``(1) subsection (b)(3)(A) shall be applied without regard
            to clause (iii) thereof,
                ``(2) for purposes of subsection (a)(1), the applicable
            percentage shall be 30 percent and such percentage shall not be
            increased or otherwise adjusted by any other provision of this
            section, and
                ``(3) subsection (g) shall not apply.''.

        (g) <<NOTE: Applicability. 26 USC 48 note.>>  Effective Dates.--
                (1) In general.--Except as provided in paragraphs (2), (3),
            (4), and (5), the amendments made by this section shall apply to
            taxable years beginning after the date of enactment of this Act.
                (2) Domestic content rules.--The amendment made by
            subsection (d) shall apply on or after June 16, 2025.
                (3) Elimination of energy credit for certain energy
            property.--The amendments made by subsection (e) shall apply to
            property the construction of which begins on or after June 16,
            2025.
                (4) Application of clean electricity investment credit to
            qualified fuel cell property.--The amendments made by subsection
            (f) shall apply to property the construction of which begins
            after December 31, 2025.
                (5) <<NOTE: Time period.>>  Termination for wind and solar
            facilities.--The amendments made by subsection (a) shall apply
            to facilities the construction of which begins after the date
            which is 12 months after the date of enactment of this Act.
    SEC. 70514. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING
                                PRODUCTION CREDIT.

        (a) Modification of Provision Relating to Sale of Integrated
    Components.--Paragraph (4) of section 45X(d) is amended to read as
    follows:

    [[Page 139 STAT. 274]]

                ``(4) Sale of integrated components.--
                        ``(A) In general.--For purposes of this section, a
                    person shall be treated as having sold an eligible
                    component to an unrelated person if--
                              ``(i) such component (referred to in this
                          paragraph as the `primary component') is
                          integrated, incorporated, or assembled into
                          another eligible component (referred to in this
                          paragraph as the `secondary component') produced
                          within the same manufacturing facility as the
                          primary component, and
                              ``(ii) the secondary component is sold to an
                          unrelated person.
                        ``(B) <<NOTE: Applicability.>>  Additional
                    requirements.--Subparagraph (A) shall only apply with
                    respect to a secondary component for which not less than
                    65 percent of the total direct material costs which are
                    paid or incurred (within the meaning of section 461 and
                    any regulations issued under section 263A) by the
                    taxpayer to produce such secondary component are
                    attributable to primary components which are mined,
                    produced, or manufactured in the United States.''.

        (b) Phase Out and Termination.--Section 45X(b)(3) is amended--
                (1) in the heading, by inserting ``and termination'' after
            ``Phase out'',
                (2) in subparagraph (A), in the matter preceding clause (i),
            by striking ``subparagraph (C)'' and inserting ``subparagraphs
            (C) and (D)'', and
                (3) <<NOTE: Effective dates.>>  by striking subparagraph (C)
            and inserting the following:
                        ``(C) Phase out for applicable critical minerals
                    other than metallurgical coal.--
                              ``(i) In general.--In the case of any
                          applicable critical mineral (other than
                          metallurgical coal) produced after December 31,
                          2030, the amount determined under this subsection
                          with respect to such mineral shall be equal to the
                          product of--
                                        ``(I) the amount determined under
                                    paragraph (1) with respect to such
                                    mineral, as determined without regard to
                                    this subparagraph, multiplied by
                                        ``(II) the phase out percentage
                                    under clause (ii).
                              ``(ii) <<NOTE: Time periods.>>  Phase out
                          percentage for applicable critical minerals other
                          than metallurgical coal.--The phase out percentage
                          under this clause is equal to--
                                        ``(I) in the case of any applicable
                                    critical mineral produced during
                                    calendar year 2031, 75 percent,
                                        ``(II) in the case of any applicable
                                    critical mineral produced during
                                    calendar year 2032, 50 percent,
                                        ``(III) in the case of any
                                    applicable critical mineral produced
                                    during calendar year 2033, 25 percent,
                                    and
                                        ``(IV) in the case of any applicable
                                    critical mineral produced after December
                                    31, 2033, 0 percent.

    [[Page 139 STAT. 275]]

                        ``(D) Termination for wind energy components.--This
                    section shall not apply to any wind energy component
                    produced and sold after December 31, 2027.
                        ``(E) Termination for metallurgical coal.--This
                    section shall not apply to any metallurgical coal
                    produced after December 31, 2029.''.

        (c) 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 of enactment of this subparagraph, the term
                    `eligible component' shall not include any property
                    which includes any material assistance from a prohibited
                    foreign entity (as defined in section 7701(a)(52), as
                    applied by substituting `used in a product sold before
                    January 1, 2027' for `used in a product sold before
                    January 1, 2030' in subparagraph (D)(iv)(II)(bb)
                    thereof).'', and
                (2) in subsection (d), as amended by subsection (a) of this
            section, by adding at the end the following new paragraph:
                ``(4) Restrictions relating to prohibited foreign
            entities.--
                        ``(A) In general.--No credit shall be determined
                    under subsection (a) for any taxable year if the
                    taxpayer is--
                              ``(i) a specified foreign entity (as defined
                          in section 7701(a)(51)(B)), or
                              ``(ii) a foreign-influenced entity (as defined
                          in section 7701(a)(51)(D), without regard to
                          clause (i)(II) thereof).
                        ``(B) <<NOTE: Determination. Applicability.>>
                    Effective control.--In the case of a taxpayer for which
                    section 7701(a)(51)(D)(i)(II) is determined to apply for
                    any taxable year, no credit shall be determined under
                    subsection (a) for such taxable year if such
                    determination relates to an eligible component described
                    in subsection (c)(1).''.

        (d) Modification of Definition of Battery Module.--Section
    45X(c)(5)(B)(iii) is amended--
                (1) in subclause (I)(bb), by striking ``and'' at the end,
                (2) in subclause (II), by striking the period at the end and
            inserting ``, and'', and
                (3) by adding at the end the following new subclause:
                                        ``(III) which is comprised of all
                                    other essential equipment needed for
                                    battery functionality, such as current
                                    collector assemblies and voltage sense
                                    harnesses, or any other essential energy
                                    collection equipment.''.

        (e) Inclusion of Metallurgical Coal as an Applicable Critical
    Mineral for Purposes of the Advanced Manufacturing Production Credit.--
                (1) In general.--Section 45X(c)(6) is amended--
                        (A) by redesignating subparagraphs (R) through (Z)
                    as subparagraphs (S) through (AA), respectively, and
                        (B) by inserting after subparagraph (Q) the
                    following new subparagraph:
                        ``(R) Metallurgical coal.--Metallurgical coal which
                    is suitable for use in the production of steel (within
                    the

    [[Page 139 STAT. 276]]

                    meaning of the notice published by the Department of
                    Energy entitled `Critical Material List; Addition of
                    Metallurgical Coal Used for Steelmaking' (90 Fed. Reg.
                    22711 (May 29, 2025))), regardless of whether such
                    production occurs inside or outside of the United
                    States.''.
                (2) Credit amount.--Section 45X(b)(1)(M) is amended by
            inserting ``(2.5 percent in the case of metallurgical coal)''
            after ``10 percent''.

        (f) <<NOTE: Applicability. 26 USC 45X note.>>  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) Modification of provision relating to sale of integrated
            components.--The amendment made by subsection (a) shall apply to
            components sold during taxable years beginning after December
            31, 2026.
    SEC. 70515. RESTRICTION ON THE EXTENSION OF ADVANCED ENERGY
                                PROJECT CREDIT PROGRAM.

        (a) In General.--Section 48C(e)(3)(C) is amended by striking ``shall
    be increased'' and inserting ``shall not be increased''.
        (b) <<NOTE: 26 USC 48C note.>>  Effective Date.--The amendment made
    by this section shall take effect on the date of enactment of this Act.

            Subchapter B--Enhancement of America-first Energy Policy

    SEC. 70521. 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) <<NOTE: 26 USC 45Z note.>>  Effective date.--The
            amendments made by this subsection shall apply to transportation
            fuel produced after December 31, 2025.

        (b) Prohibition on Negative Emission Rates.--
                (1) In general.--Section 45Z(b)(1) is amended--
                        (A) by striking subparagraph (C) and inserting the
                    following:
                        ``(C) Rounding of emissions rate.--The Secretary may
                    round the emissions rates under subparagraph (B) to the
                    nearest multiple of 5 kilograms of CO2e per mmBTU.'',
                    and
                        (B) by adding at the end the following new
                    subparagraph:
                        ``(E) Prohibition on negative emission rates.--For
                    purposes of this section, the emissions rate for a
                    transportation fuel may not be less than zero.''.
                (2) <<NOTE: 26 USC 45Z note.>>  Effective date.--The
            amendments made by this subsection shall apply to emissions
            rates published for transportation fuel produced after December
            31, 2025.

        (c) Determination of Emissions Rate.--

    [[Page 139 STAT. 277]]

                (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 <<NOTE: Determination.>> (i), (ii), and
                          (iii), the emissions rate 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.
                              ``(v) Animal manures.--With respect to any
                          transportation fuel which is derived from animal
                          manure, the Secretary--
                                        ``(I) shall provide a distinct
                                    emissions rate with respect to such fuel
                                    based on the specific animal manure
                                    feedstock, which may include dairy
                                    manure, swine manure, poultry manure, or
                                    any other sources as are determined
                                    appropriate by the Secretary, and
                                        ``(II) notwithstanding subparagraph
                                    (E), may provide an emissions rate that
                                    is less than zero.''.
                (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) <<NOTE: 26 USC 45Z note.>>  Effective date.--The
            amendments made by this subsection shall apply to emissions
            rates published for transportation fuel produced after December
            31, 2025.

        (d) Extension of Clean Fuel Production Credit.--Section 45Z(g) is
    amended by striking ``December 31, 2027'' and inserting ``December 31,
    2029''.
        (e) Preventing Double Credit.--Section 45Z(d)(5) is amended--
                (1) in subparagraph (A)--
                        (A) in clause (ii), by striking ``and'' at the end,
                        (B) in clause (iii), by striking the period at the
                    end and inserting ``, and'', and
                        (C) by adding at the end the following new clause:
                              ``(iv) is not produced from a fuel for which a
                          credit under this section is allowable.'', and
                (2) by adding at the end the following new subparagraph:
                        ``(C) Regulations and guidance.--The Secretary shall
                    issue such regulations or other guidance as the
                    Secretary determines necessary to carry out the purposes
                    of subparagraph (A)(iv).''.

        (f) Sales to Unrelated Persons.--Section 45Z(f)(3) is amended by
    adding at the end the following: ``The Secretary may prescribe
    additional related person rules similar to the rule described in the
    preceding sentence for entities which are not described in such
    sentence, including rules for related persons with respect to which the
    taxpayer has reason to believe will sell fuel to an unrelated person in
    a manner described in subsection (a)(4).''.
        (g) Treatment of Sustainable Aviation Fuel.--
                (1) Coordination of credits.--
                        (A) In general.--Section 6426(k) is amended by
                    adding at the end the following new paragraph:
                ``(4) Coordination of credits.--With respect to any gallon
            of sustainable aviation fuel in a qualified mixture, this
            subsection shall not apply to any such gallon for which a credit

    [[Page 139 STAT. 278]]

            under section 45Z is allowable (as determined without regard to
            subsection (a)(1)(A) of such section).''.
                        (B) <<NOTE: Applicability. 26 USC 6426 note.>>
                    Effective date.--The amendment made by this paragraph
                    shall apply to--
                              (i) fuel sold or used on or after the date of
                          the enactment of this Act, and
                              (ii) fuel sold or used before the date of
                          enactment of this Act, but only to the extent that
                          claims for the credit under section 6426(k) of the
                          Internal Revenue Code of 1986 with respect to such
                          sale or use have not been paid or allowed as of
                          such date.
                (2) Elimination of special rate.--
                        (A) In general.--Paragraph (3) of section 45Z(a) is
                    amended to read as follows:
                ``(3) Definition of sustainable aviation fuel.--For purposes
            of this section, the term `sustainable aviation fuel' means
            liquid fuel, the portion of which is not kerosene, which is sold
            for use in an aircraft and which--
                        ``(A) meets the requirements of--
                              ``(i) ASTM International Standard D7566, or
                              ``(ii) the Fischer Tropsch provisions of ASTM
                          International Standard D1655, Annex A1, and
                        ``(B) is not derived from palm fatty acid
                    distillates or petroleum.''.
                        (B) Conforming amendment.--Section 45Z(c)(1) is
                    amended by striking ``, the $1.00 amount in subsection
                    (a)(2)(B), the 35 cent amount in subsection
                    (a)(3)(A)(i), and the $1.75 amount in subsection
                    (a)(3)(A)(ii)'' and inserting ``and the $1.00 amount in
                    subsection (a)(2)(B)''.
                        (C) <<NOTE: 26 USC 45Z note.>>  Effective date.--The
                    amendments made by this paragraph shall apply to fuel
                    produced after December 31, 2025.

        (h) Sustainable Aviation Fuel Credit.--Section 6426(k), as amended
    by the preceding provisions of this Act, is amended by adding at the end
    the following new paragraph:
                ``(5) Termination.--This subsection shall not apply to any
            sale or use for any period after September 30, 2025.''.

        (i) Registration of Producers of Fuel Eligible for Clean Fuel
    Production Credit.--
                (1) In general.--Section 13704(b)(5) of Public Law 117-169
            is <<NOTE: 26 USC 4101.>> amended by striking ``after `section
            6426(k)(3)),' '' and inserting ``after `section 40B),' ''.
                (2) Effective date. <<NOTE: 26 USC 4101 note.>> --The
            amendment made by this subsection shall apply to transportation
            fuel produced after December 31, 2024.

        (j) Extension and Modification of Small Agri-biodiesel Producer
    Credit.--
                (1) In general.--Section 40A is amended--
                        (A) in subsection (b)(4)--
                              (i) in subparagraph (A), by striking ``10
                          cents'' and inserting ``20 cents'',
                              (ii) in subparagraph (B), by inserting ``in a
                          manner which complies with the requirements under
                          section 45Z(f)(1)(A)(iii)'' after ``produced by an
                          eligible small agri-biodiesel producer'', and
                              (iii) by adding at the end the following new
                          subparagraph:

    [[Page 139 STAT. 279]]

                        ``(D) Coordination with clean fuel production
                    credit.--The credit determined under this paragraph with
                    respect to any gallon of fuel shall be in addition to
                    any credit determined under section 45Z with respect to
                    such gallon of fuel.'', and
                        (B) in subsection (g), by inserting ``(or, in the
                    case of the small agri-biodiesel producer credit, any
                    sale or use after December 31, 2026)'' after ``December
                    31, 2024''.
                (2) Transfer of credit.--Section 6418(f)(1)(A) is amended by
            adding at the end the following new clause:
                              ``(xii) So much of the biodiesel fuels credit
                          determined under section 40A which consists of the
                          small agri-biodiesel producer credit determined
                          under subsection (b)(4) of such section.''.
                (3) <<NOTE: 26 USC 40A note.>>  Effective date.--The
            amendments made by this subsection shall apply to fuel sold or
            used after June 30, 2025.

        (k) 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 shall be determined
                    under subsection (a) 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) <<NOTE: Effective date. Time period.>>  Other
                    prohibited foreign entities.--No credit shall be
                    determined under subsection (a) 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), without regard to clause (i)(II)
                    thereof).''.
                (2) <<NOTE: 26 USC 45Z note.>>  Effective date.--The
            amendment made by this subsection shall apply to taxable years
            beginning after the date of enactment of this Act.
    SEC. 70522. 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.--No credit shall be determined under subsection (a)
            for any taxable year beginning after the date of enactment of
            this paragraph if the taxpayer is--
                        ``(A) a specified foreign entity (as defined in
                    section 7701(a)(51)(B)), or
                        ``(B) a foreign-influenced entity (as defined in
                    section 7701(a)(51)(D), determined without regard to
                    clause (i)(II) thereof).''.

        (b) Parity for Different Uses and Utilizations of Qualified Carbon
    Oxide.--Section 45Q is amended--
                (1) in subsection (a)--
                        (A) in paragraph (2)(B)(ii), by adding ``and'' at
                    the end,

    [[Page 139 STAT. 280]]

                        (B) in paragraph (3), by striking subparagraph (B)
                    and inserting the following:
                        ``(B)(i) disposed of by the taxpayer in secure
                    geological storage and not used by the taxpayer as
                    described in clause (ii) or (iii),
                        ``(ii) used by the taxpayer as a tertiary injectant
                    in a qualified enhanced oil or natural gas recovery
                    project and disposed of by the taxpayer in secure
                    geological storage, or
                        ``(iii) utilized by the taxpayer in a manner
                    described in subsection (f)(5).'', and
                        (C) by striking paragraph (4),
                (2) in subsection (b)--
                        (A) in paragraph (1)--
                              (i) by striking subparagraph (A) and inserting
                          the following:
                        ``(A) In general.--Except as provided in
                    subparagraph (B) or (C), the applicable dollar amount
                    shall be an amount equal to--
                              ``(i) <<NOTE: Time period.>>  for any taxable
                          year beginning in a calendar year after 2024 and
                          before 2027, $17, and
                              ``(ii) for any taxable year beginning in a
                          calendar year after 2026, an amount equal to the
                          product of $17 and the inflation adjustment factor
                          for such calendar year determined under section
                          43(b)(3)(B) for such calendar year, determined by
                          substituting `2025' for `1990'.'', and
                              (ii) in subparagraph (B), by striking ``shall
                          be applied'' and all that follows through the
                          period and inserting ``shall be applied by
                          substituting `$36' for `$17' each place it
                          appears.'',
                        (B) in paragraph (2)(B), by striking ``paragraphs
                    (3)(A) and (4)(A)'' and inserting ``paragraph (3)(A)'',
                    and
                        (C) in paragraph (3), by striking ``the dollar
                    amounts applicable under paragraph (3) or (4)'' and
                    inserting ``the dollar amount applicable under paragraph
                    (3)'',
                (3) in subsection (f)--
                        (A) in paragraph (5)(B)(i), by striking
                    ``(4)(B)(ii)'' and inserting ``(3)(B)(iii)'', and
                        (B) in paragraph (9), by striking ``paragraphs (3)
                    and (4) of subsection (a)'' and inserting ``subsection
                    (a)(3)'', and
                (4) in subsection (h)(3)(A)(ii), by striking ``paragraph
            (3)(A) or (4)(A) of subsection (a)'' and inserting ``subsection
            (a)(3)(A)''.

        (c) Conforming Amendment.--Section 6417(d)(3)(C)(i)(II)(bb) is
    amended by striking ``paragraph (3)(A) or (4)(A) of section 45Q(a)'' and
    inserting ``section 45Q(a)(3)(A)''.
        (d) <<NOTE: Applicability. 26 USC 45Q note.>>  Effective Dates.--
                (1) Restrictions relating to prohibited foreign entities.--
            The amendment made by subsection (a) shall apply to taxable
            years beginning after the date of enactment of this Act.
                (2) Parity for different uses and utilizations of qualified
            carbon oxide.--The amendments made subsections (b) and (c) shall
            apply to facilities or equipment placed in service after the
            date of enactment of this Act.

    [[Page 139 STAT. 281]]

    SEC. 70523. INTANGIBLE DRILLING AND DEVELOPMENT COSTS TAKEN INTO
                                ACCOUNT FOR PURPOSES OF COMPUTING
                                ADJUSTED FINANCIAL STATEMENT INCOME.

        (a) In General.--Section 56A(c)(13) is amended--
                (1) by striking subparagraph (A) and inserting the
            following:
                        ``(A) reduced by--
                              ``(i) depreciation deductions allowed under
                          section 167 with respect to property to which
                          section 168 applies to the extent of the amount
                          allowed as deductions in computing taxable income
                          for the year, and
                              ``(ii) any deduction allowed for expenses
                          under section 263(c) (including any deduction for
                          such expenses under section 59(e) or 291(b)(2))
                          with respect to property described therein to the
                          extent of the amount allowed as deductions in
                          computing taxable income for the year, and'', and
                (2) by striking subparagraph (B)(i) and inserting the
            following:
                              ``(i) to disregard any amount of--
                                        ``(I) depreciation expense that is
                                    taken into account on the taxpayer's
                                    applicable financial statement with
                                    respect to such property, and
                                        ``(II) depletion expense that is
                                    taken into account on the taxpayer's
                                    applicable financial statement with
                                    respect to the intangible drilling and
                                    development costs of such property,
                                    and''.

        (b) <<NOTE: 26 USC 56A note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70524. INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE, ADVANCED
                                NUCLEAR, HYDROPOWER, AND GEOTHERMAL
                                ENERGY ADDED TO QUALIFYING INCOME OF
                                CERTAIN PUBLICLY TRADED PARTNERSHIPS.

        (a) In General.--Section 7704(d)(1)(E) is amended--
                (1) by striking ``income and gains derived from the
            exploration'' and inserting the following: ``income and gains
            derived from--
                              ``(i) the exploration''.
                (2) by inserting ``or'' before ``industrial source'', and
                (3) by striking ``or 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,
                              ``(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 or
                          equipment 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))--

    [[Page 139 STAT. 282]]

                                        ``(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,
                              ``(iv) the production of electricity from any
                          advanced nuclear facility (as defined in section
                          45J(d)(2)),
                              ``(v) the production of electricity or thermal
                          energy exclusively using a qualified energy
                          resource described in subparagraph (D) or (H) of
                          section 45(c)(1), or
                              ``(vi) the operation of energy property
                          described in clause (iii) or (vii) of section
                          48(a)(3)(A) (determined without regard to any
                          requirement under such section with respect to the
                          date on which construction of property begins).''.

        (b) <<NOTE: 26 USC 7704 note.>>  Effective Date.--The amendments
    made by this section shall apply to taxable years beginning after
    December 31, 2025.
    SEC. 70525. ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE
                                FUEL.

        (a) In General.--Subchapter B of chapter 65, as amended by the
    preceding provisions of this Act, is amended by adding at the end the
    following new section:
    ``SEC. 6435. <<NOTE: 26 USC 6435.>>  DYED FUEL.

        ``(a) In General.--If a person establishes to the satisfaction of
    the Secretary that such person meets the requirements of subsection (b)
    with respect to diesel fuel or kerosene, then the Secretary shall pay to
    such person an amount (without interest) equal to the tax described in
    subsection (b)(2)(A) with respect to such diesel fuel or kerosene.
        ``(b) Requirements.--
                ``(1) In general.--A person meets the requirements of this
            subsection with respect to diesel fuel or kerosene if such
            person removes from a terminal eligible indelibly dyed diesel
            fuel or kerosene.
                ``(2) Eligible indelibly dyed diesel fuel or kerosene
            defined.--The term `eligible indelibly dyed diesel fuel or
            kerosene' means diesel fuel or kerosene--
                        ``(A) with respect to which a tax under section 4081
                    was previously paid (and not credited or refunded), and
                        ``(B) which is exempt from taxation under section
                    4082(a).

        ``(c) Cross Reference.--For civil penalty for excessive claims under
    this section, see section 6675.''.
        (b) Conforming Amendments.--
                (1) Section 6206 is amended--
                        (A) by striking ``or 6427'' each place it appears
                    and inserting ``6427, or 6435'', and
                        (B) by striking ``6420 and 6421'' and inserting
                    ``6420, 6421, and 6435''.
                (2) Section 6430 is amended--
                        (A) by striking ``or'' at the end of paragraph (2),
                    by striking the period at the end of paragraph (3) and
                    inserting ``, or'', and by adding at the end the
                    following new paragraph:

    [[Page 139 STAT. 283]]

                ``(4) which are removed as eligible indelibly dyed diesel
            fuel or kerosene under section 6435.''.
                (3) Section 6675 is amended--
                        (A) in subsection (a), by striking ``or 6427
                    (relating to fuels not used for taxable purposes)'' and
                    inserting ``6427 (relating to fuels not used for taxable
                    purposes), or 6435 (relating to eligible indelibly dyed
                    fuel)'', and
                        (B) in subsection (b)(1), by striking ``6421, or
                    6427,'' and inserting ``6421, 6427, or 6435,''.
                (4) The table of sections for subchapter B of chapter 65, as
            amended by the preceding provisions of this Act, <<NOTE: 26
            USC prec. 6411.>>  is amended by adding at the end the following
            new item:

    ``Sec. 6435. Dyed fuel.''.

        (c) <<NOTE: 26 USC 6206 note.>>  Effective Date.--The amendments
    made by this section shall apply to eligible indelibly dyed diesel fuel
    or kerosene removed on or after the date that is 180 days after the date
    of the enactment of this section.

                           Subchapter C--Other Reforms

    SEC. 70531. 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) <<NOTE: Time period. 19 USC 1321 note.>>  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) of such Act (19 U.S.C.
            1321(a)(2)) 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) <<NOTE: 19 USC 1321 note.>>  Effective date.--The
            amendments made by this subsection shall take effect on July 1,
            2027.

      CHAPTER 6--ENHANCING DEDUCTION AND INCOME TAX CREDIT GUARDRAILS, AND
                                  OTHER REFORMS

    SEC. 70601. MODIFICATION AND EXTENSION OF 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) Adjustment of Amounts for Calculation of Excess Business Loss.--
    Section 461(l)(3)(C) is amended--

    [[Page 139 STAT. 284]]

                (1) in the matter preceding clause (i), by striking
            ``December 31, 2018'' and inserting ``December 31, 2025'', and
                (2) in clause (ii), by striking ``2017'' and inserting
            ``2024''.

        (c) <<NOTE: Applicability. 26 USC 461 note.>>  Effective Dates.--
                (1) Rule made permanent.--The amendments made by subsection
            (a) shall apply to taxable years beginning after December 31,
            2026.
                (2) Adjustment of amounts for calculation of excess business
            loss.--The amendments made by subsection (b) shall apply to
            taxable years beginning after December 31, 2025.
    SEC. 70602. 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) <<NOTE: 26 USC 707 note.>>  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) <<NOTE: 26 USC 707 note.>>  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.
    SEC. 70603. 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) <<NOTE: Definitions.>>  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

    [[Page 139 STAT. 285]]

                              ``(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) <<NOTE: 26 USC 162 note.>>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70604. EXCISE TAX ON CERTAIN REMITTANCE TRANSFERS.

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

    ``Subchapter C--Remittance Transfers <<NOTE: 26 USC prec. 4471.>>

    ``Sec. 4475. Imposition of tax.

    ``SEC. 4475. <<NOTE: 26 USC 4475.>>  IMPOSITION OF TAX.

        ``(a) In General.--There is hereby imposed on any remittance
    transfer a tax equal to 1 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 of tax.--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) Tax Limited to Cash and Similar Instruments.--The tax imposed
    under subsection (a) shall apply only to any remittance transfer for
    which the sender provides cash, a money order, a cashier's check, or any
    other similar physical instrument (as determined by the Secretary) to
    the remittance transfer provider.
        ``(d) Nonapplication to Certain Noncash Remittance Transfers.--
    Subsection (a) shall not apply to any remittance transfer for which the
    funds being transferred are--
                ``(1) withdrawn from an account held in or by a financial
            institution--

    [[Page 139 STAT. 286]]

                        ``(A) which is described in subparagraphs (A)
                    through (H) of section 5312(a)(2) of title 31, United
                    States Code, and
                        ``(B) that is subject to the requirements under
                    subchapter II of chapter 53 of such title, or
                ``(2) funded with a debit card or a credit card which is
            issued in the United States.

        ``(e) Definitions.--For purposes of this section--
                ``(1) In general.--The terms `remittance transfer',
            `remittance transfer provider', and `sender' shall each have the
            respective meanings given such terms by section 919(g) of the
            Electronic Fund Transfer Act (15 U.S.C. 1693o-1(g)).
                ``(2) Credit card.--The term `credit card' has the same
            meaning given such term under section 920(c)(3) of the
            Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(3)).
                ``(3) Debit card.--The term `debit card' has the same
            meaning given such term under section 920(c)(2) of the
            Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(2)), without
            regard to subparagraph (B) of such section.

        ``(f) 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) Conforming Amendment.--The table of subchapters for chapter
    36 <<NOTE: 26 USC prec. 4461.>>  is amended by inserting after the item
    relating to subchapter B the following new item:

                     ``subchapter c--remittance transfers''.

        (c) <<NOTE: 26 USC 4475.>>  Effective Date.--The amendments made by
    this section shall apply to transfers made after December 31, 2025.
    SEC. 70605. <<NOTE: Definitions. 26 USC 3134 note.>>  ENFORCEMENT
                                PROVISIONS WITH RESPECT TO COVID-
                                RELATED EMPLOYEE RETENTION CREDITS.

        (a) 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 credit or advance payment of a credit
            under section 3134 of the Internal Revenue Code of 1986, shall
            pay a penalty of $1,000 for each such failure.
                (2) Due diligence requirements.--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 as a penalty which is imposed
            under section 6695(g) of such Code and assessed under section
            6201 of such Code.

    [[Page 139 STAT. 287]]

                (5) <<NOTE: Definition.>>  Secretary.--For purposes of this
            subsection, the term ``Secretary'' means the Secretary of the
            Treasury or the Secretary's delegate.

        (b) COVID-ERTC Promoter.--For purposes of this section--
                (1) <<NOTE: Definition.>>  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 of the 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 of the 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
                                    exceed 20 percent of the gross receipts
                                    of such person for such taxable year,
                                    and
                                        (II) the aggregate of the 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), 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, a person shall be treated as a COVID-ERTC
            promoter if such person is described in paragraph (1) either
            with respect to such taxable year or by treating any reference
            to such taxable year as a reference to the calendar year in
            which such taxable year begins.

        (c) <<NOTE: Definition.>>  COVID-ERTC Document.--For purposes of
    this section, the term ``COVID-ERTC document'' means any return,
    affidavit, claim, or other document related to any credit or advance
    payment of a credit under section 3134 of the Internal Revenue Code of
    1986, including any document related to eligibility for, or the
    calculation or determination of any amount directly related to, any such
    credit or advance payment.

        (d) <<NOTE: Deadline.>>  Limitation on Credits and Refunds.--
    Notwithstanding section 6511 of the Internal Revenue Code of 1986, no
    credit under

    [[Page 139 STAT. 288]]

    section 3134 of the Internal Revenue Code of 1986 shall be allowed, and
    no refund with respect to any such credit shall be made, after the date
    of the enactment of this Act, unless a claim for such credit or refund
    was filed by the taxpayer on or before January 31, 2024.

        (e) Extension of Limitation on Assessment.--Section 3134(l) is
    amended to read as follows:
        ``(l) Extension of Limitation on Assessment.--
                ``(1) <<NOTE: Time period.>>  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) <<NOTE: Definition.>>  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.''.

        (f) Amendment to Penalty for Erroneous Claim for Refund or Credit.--
    Section 6676(a) is amended by striking ``income tax'' and inserting
    ``income or employment tax''.
        (g) <<NOTE: Applicability.>>  Effective Dates.--
                (1) In general.--The provisions of this section shall apply
            to aid, assistance, and advice provided after the date of the
            enactment of this Act.
                (2) Limitation on credits and refunds.--Subsection (d) shall
            apply to credits and refunds allowed or made after the date of
            the enactment of this Act.
                (3) Extension of limitation on assessment.--The amendment
            made by subsection (e) shall apply to assessments made after the
            date of the enactment of this Act.
                (4) Amendment to penalty for erroneous claim for refund or
            credit.--The amendment made by subsection (f) shall apply to
            claims for credit or refund after the date of the enactment of
            this Act.

        (h) <<NOTE: Guidance.>>  Regulations.--The Secretary (as defined in
    subsection (a)(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).

    [[Page 139 STAT. 289]]

    SEC. 70606. 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 an individual
                    unless the individual includes on the return of tax for
                    the taxable year--
                              ``(i) such individual's social security
                          number, and
                              ``(ii) 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) 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''.
        (c) <<NOTE: 26 USC 25A note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.
    SEC. 70607. <<NOTE: Appropriation authorization. Expiration
                                date. Reports.>>  TASK FORCE ON THE
                                REPLACEMENT OF DIRECT FILE.

        Out of any money in the Treasury not otherwise appropriated, there
    is hereby appropriated for the fiscal year ending September 30, 2026,
    $15,000,000, to remain available until 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 enhancing and establishing public-private
            partnerships which provide for free tax filing for up to 70
            percent of all taxpayers calculated by adjusted gross income,
            and to replace any direct e-file programs run by the Internal
            Revenue Service;
                (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, and 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 e-file tax return
            system, including costs to build and administer each release.

    [[Page 139 STAT. 290]]

                               Subtitle B--Health

                               CHAPTER 1--MEDICAID

         Subchapter A--Reducing Fraud and Improving Enrollment Processes

    SEC. 71101. <<NOTE: Time periods.>>  MORATORIUM ON IMPLEMENTATION
                                OF RULE RELATING TO ELIGIBILITY AND
                                ENROLLMENT IN MEDICARE SAVINGS
                                PROGRAMS.

        (a) In General.--The Secretary of Health and Human Services shall
    not, during the period beginning on the date of the enactment of this
    section and ending September 30, 2034, implement, administer, or enforce
    the amendments made by 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) to the following
    sections of title 42, Code of Federal Regulations:
                (1) Section 406.21(c).
                (2) Section 435.4.
                (3) Section 435.601.
                (4) Section 435.911.
                (5) Section 435.952.

        (b) Implementation Funding.--For the purposes of carrying out the
    provisions of this section and section 71102, there are appropriated,
    out of any monies in the Treasury not otherwise appropriated, to the
    Administrator of the Centers for Medicare & Medicaid Services,
    $1,000,000 for fiscal year 2026, to remain available until expended.
    SEC. 71102. <<NOTE: Time period.>>  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
    September 30, 2034, implement, administer, or enforce the amendments
    made by 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) to the
    following sections of title 42, Code of Federal Regulations:
                (1) Part 431.--
                        (A) Section 431.213(d).
                (2) Part 435.--
                        (A) Section 435.222.
                        (B) Section 435.407.
                        (C) Section 435.907.
                        (D) Section 435.911(c).
                        (E) Section 435.912.
                        (F) Section 435.916.
                        (G) Section 435.919.
                        (H) Section 435.1200(b)(3)(i)-(v).
                        (I) Section 435.1200(e )(1)(ii).
                        (J) Section 435.1200(h)(1).

    [[Page 139 STAT. 291]]

                (3) Part 447.--Section 447.56(a)(1)(v).
                (4) Part 457.--
                        (A) Section 457.344.
                        (B) Section 457.960.
                        (C) Section 457.1140(d)(4).
                        (D) Section 457.1170.
                        (E) Section 457.1180.
    SEC. 71103. REDUCING DUPLICATE ENROLLMENT 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) <<NOTE: Effective dates.>>  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) <<NOTE: Determination.>>  in the case
                          that such system indicates that an individual
                          enrolled or seeking to enroll under such plan (or
                          waiver 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:

    [[Page 139 STAT. 292]]

        ``(uu) Prevention of Enrollment Under Multiple State Plans.--
                ``(1) <<NOTE: Deadline.>>  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) <<NOTE: Time period.>>  not less than once
                    each month, transmit information to a State (or allow
                    the Secretary to 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) <<NOTE: Time periods.>>  Implementation funding.--
            There are appropriated to the Administrator of the Centers for
            Medicare & Medicaid Services, 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 and standards 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--

    [[Page 139 STAT. 293]]

                              (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) <<NOTE: Effective date. Determination.>>  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 (for purposes of address
            verification under section 1902(vv)) 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) <<NOTE: Effective date. Contracts.>>  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. 71104. ENSURING DECEASED INDIVIDUALS DO NOT REMAIN ENROLLED.

        Section 1902 of the Social Security Act (42 U.S.C. 1396a), as
    amended by section 71103, 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) <<NOTE: Compliance. Applicability.>>  provide that
            the State shall comply with the eligibility verification
            requirements under subsection (ww), except that

    [[Page 139 STAT. 294]]

            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) <<NOTE: Effective date. Determinations.>>  In
            general.--For purposes of subsection (a)(89), the eligibility
            verification requirements, beginning January 1, 2027, are as
            follows:
                        ``(A) Quarterly screening to verify enrollee
                    status. <<NOTE: Reviews.>> --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) or a successor system
                    that provides such information needed 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;
                              ``(ii) disenroll such individual from the
                          State plan (or waiver of such plan) in accordance
                          with subsection (a)(3); 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. 71105. ENSURING DECEASED PROVIDERS DO NOT REMAIN ENROLLED.

        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) Provider screening against death master
                    file. <<NOTE: Effective date. Time
                    period. Determination.>> --Beginning January 1, 2028, as
                    part of the enrollment (or reenrollment or revalidation
                    of enrollment) of a provider

    [[Page 139 STAT. 295]]

                    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. 71106. 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 (A)--
                        (A) by inserting ``for audits conducted by the
                    Secretary, or, at the option of the Secretary, audits
                    conducted by the State'' after ``exceeds 0.03''; and
                        (B) by inserting ``, to the extent practicable''
                    before the period at the end;
                (2) 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 erroneous excess payments
            for medical assistance described in subparagraph (D)(i)(II) made
            for such fiscal year that exceed the allowable error rate of
            0.03.''.
                (3) in subparagraph (C), by striking ``he'' in each place it
            appears and inserting ``the Secretary'' in each such place; and
                (4) in subparagraph (D)(i)--
                        (A) in subclause (I), by striking ``and'' at the
                    end;
                        (B) in subclause (II), by striking the period at the
                    end and inserting ``, or payments where insufficient
                    information is available to confirm eligibility, and'';
                    and
                        (C) 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 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, or
            payments where insufficient information is available to confirm
            eligibility.''.

        (b) <<NOTE: 42 USC 1396b note.>>  Effective Date.--The amendments
    made by subsection (a) shall apply beginning with respect to fiscal year
    2030.
    SEC. 71107. ELIGIBILITY REDETERMINATIONS.

        (a) In General.--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.--
                              ``(i) <<NOTE: Effective date. Time periods.>>
                          In general.--Subject to clause (ii), with respect
                          to redeterminations of eligibility for medical
                          assistance under a State plan (or waiver of such
                          plan) scheduled on or after the first day of the
                          first quarter that begins after December 31, 2026,
                          a State shall make such a redetermination once
                          every 6 months for the following individuals:

    [[Page 139 STAT. 296]]

                                        ``(I) Individuals enrolled under
                                    subsection (a)(10)(A)(i)(VIII).

                                    ``(II) <<NOTE: Determination. Standards.
                                    Regulations.>>  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).
                              ``(ii) Exemption.--The requirements described
                          in clause (i) shall not apply to any individual
                          described in subsection (xx)(9)(A)(ii)(II).
                              ``(iii) State defined.--For purposes of this
                          subparagraph, the term `State' means 1 of the 50
                          States or the District of Columbia.''.

        (b) <<NOTE: Deadline. 42 USC 1396a note.>>  Guidance.--Not later
    than 180 days after the date of enactment of this section, the Secretary
    of Health and Human Services, acting through the Administrator of the
    Centers for Medicare & Medicaid Services, shall issue guidance relating
    to the implementation of the amendments made by this section.

        (c) <<NOTE: Time period.>>  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 Administrator of the Centers for
    Medicare & Medicaid Services, $75,000,000 for fiscal year 2026, to
    remain available until expended.
    SEC. 71108. 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) <<NOTE: Applicability.>>  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

    [[Page 139 STAT. 297]]

                    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) <<NOTE: 42 USC 1396p note.>>  Effective Date.--The amendments
    made by subsection (a) shall apply beginning on January 1, 2028.
    SEC. 71109. ALIEN MEDICAID ELIGIBILITY.

        (a) Medicaid.--Section 1903(v) of the Social Security Act (42 U.S.C.
    1396b(v)) is amended--
                (1) in paragraph (1), by striking ``and (4)''and inserting
            ``, (4), and (5)''; and
                (2) by adding at the end the following new paragraph:

        ``(5) <<NOTE: Effective date.>>  Notwithstanding the preceding
    paragraphs of this subsection, beginning on October 1, 2026, except as
    provided in paragraphs (2) and (4), in no event shall payment be made to
    a State under this section for medical assistance furnished to an
    individual unless such individual is--
                ``(A) a resident of 1 of the 50 States, the District of
            Columbia, or a territory of the United States; and
                ``(B) either--
                        ``(i) a citizen or national of the United States;
                        ``(ii) 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;
                        ``(iii) an alien who has been granted the status of
                    Cuban and Haitian entrant, as defined in section 501(e)
                    of the Refugee Education Assistance Act of 1980 (Public
                    Law 96-422); or
                        ``(iv) 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) CHIP.--Section 2107(e)(1) of the Social Security Act, as amended
    by section 71103(b), <<NOTE: 42 USC 1397gg.>>  is further amended--

    [[Page 139 STAT. 298]]

                (1) by redesignating subparagraphs (R) through (V) as
            paragraphs (S) through (W), respectively; and
                (2) by inserting after paragraph (Q) the following:
                        ``(R) Section 1903(v)(5) (relating to payments for
                    medical assistance furnished to aliens), except in
                    relation to payments for services provided under section
                    2105(a)(1)(D)(ii).''.

        (c) <<NOTE: Time period.>>  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 Administrator of the Centers for
    Medicare & Medicaid Services, $15,000,000 for fiscal year 2026, to
    remain available until expended.
    SEC. 71110. EXPANSION FMAP FOR EMERGENCY MEDICAID.

        (a) In General.--Section 1905 of the Social Security Act (42 U.S.C.
    1396d) is amended by adding at the end the following new subsection:
        ``(kk) FMAP for Treatment of an Emergency Medical
    Condition. <<NOTE: Effective date.>> --Notwithstanding subsection (y)
    and (z), beginning on October 1, 2026, the Federal medical assistance
    percentage for payments for care and services described in paragraph (2)
    of subsection 1903(v) furnished to an alien described in paragraph (1)
    of such subsection shall not exceed the Federal medical assistance
    percentage determined under subsection (b) for such State.''.

        (b) <<NOTE: Time period.>>  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 Administrator of the Centers for
    Medicare & Medicaid Services, $1,000,000 for fiscal year 2026, to remain
    available until expended.

                   Subchapter B--Preventing Wasteful Spending

    SEC. 71111. <<NOTE: Time period.>>  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
    September 30, 2034, implement, administer, or enforce the amendments
    made by 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) to the following sections of part 483 of title 42,
    Code of Federal Regulations:
                (1) Section 483.5.
                (2) Section 483.35.
    SEC. 71112. REDUCING STATE MEDICAID COSTS.

        (a) In General.--Section 1902(a)(34) of the Social Security Act (42
    U.S.C. 1396a(a)(34)) is amended to read as follows:
                ``(34) provide that in the case of any individual who has
            been determined to be eligible for medical assistance under the
            plan and--

    [[Page 139 STAT. 299]]

                        ``(A) is enrolled under paragraph (10)(A)(i)(VIII),
                    such assistance will be made available to the individual
                    for care and services included under the plan and
                    furnished in or after the month before the month in
                    which the individual made application (or application
                    was made on the individual's behalf in the case of a
                    deceased individual) for such assistance if such
                    individual was (or upon application would have been)
                    eligible for such assistance at the time such care and
                    services were furnished; or
                        ``(B) is not described in subparagraph (A), such
                    assistance will be made available to the individual for
                    care and services included under the plan and furnished
                    in or after the second month before the month in which
                    the individual made application (or application was made
                    on the individual's behalf in the case of a deceased
                    individual) for such assistance if such individual was
                    (or upon application would have been) eligible for such
                    assistance at the time such care and services were
                    furnished;''.

        (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 ``, with respect to an
    individual described in section 1902(a)(34)(A), in or after the month
    before the month in which the recipient makes application for
    assistance, and with respect to an individual described in section
    1902(a)(34)(B), in or after the second 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 second month
                          preceding the month in which such individual made
                          application (or application was made on behalf of
                          such individual) for assistance.''.

        (d) <<NOTE: Applicability. 42 USC 1396a note.>>  Effective Date.--
    The amendments made by this section shall apply to medical assistance,
    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 the first day of the first quarter that
    begins after December 31, 2026.

        (e) <<NOTE: Time period.>>  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 Administrator of the Centers for

    [[Page 139 STAT. 300]]

    Medicare & Medicaid Services, $10,000,000 for fiscal year 2026, to
    remain available until expended.
    SEC. 71113. <<NOTE: Time periods.>> 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 1-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 first day of the first quarter
                    beginning after 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 for medical assistance
                    furnished in fiscal year 2023 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 $800,000.
                (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))).

    [[Page 139 STAT. 301]]

                (4) State.--The term ``State'' has the meaning given such
            term in section 1101 of the Social Security Act (42 U.S.C.
            1301).

        (c) Implementation Funding.--For the purposes of carrying out this
    section, there are appropriated, out of any monies in the Treasury not
    otherwise appropriated, to the Administrator of the Centers for Medicare
    & Medicaid Services, $1,000,000 for fiscal year 2026, to remain
    available until expended.

               Subchapter C--Stopping Abusive Financing Practices

    SEC. 71114. SUNSETTING INCREASED FMAP INCENTIVE.

        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. 71115. <<NOTE: Time periods.>> PROVIDER TAXES.

        (a) Change in Threshold for Hold Harmless Provision of Broad-based
    Health Care Related Taxes.--Section 1903(w)(4) of the Social Security
    Act (42 U.S.C. 1396b(w)(4)) is amended--
                (1) in subparagraph (C)(ii), by inserting ``, and for fiscal
            years beginning on or after October 1, 2026, the applicable
            percent determined under subparagraph (D) shall be substituted
            for `6 percent' each place it appears'' after ``each place it
            appears''; and
                (2) by inserting after subparagraph (C)(ii), the following
            new subparagraph:
                ``(D)(i) <<NOTE: Applicability. Determinations. Effective
            dates.>>  For purposes of subparagraph (C)(ii), the applicable
            percent determined under this subparagraph is--
                        ``(I) in the case of a non-expansion State or unit
                    of local government in such State and a class of health
                    care items or services described in section 433.56(a) of
                    title 42, Code of Federal Regulations (as in effect on
                    May 1, 2025)--
                              ``(aa) if, on the date of enactment of this
                          subparagraph, the non-expansion State or unit of
                          local government in such State has enacted a tax
                          and imposes such tax on such class and the
                          Secretary determines that the tax is within the
                          hold harmless threshold as of that date, the
                          applicable percent of net patient revenue
                          attributable to such class that has been so
                          determined; and
                              ``(bb) if, on the date of enactment of this
                          subparagraph, the non-expansion State or unit of
                          local government in such State has not enacted or
                          does not impose a tax with respect to such class,
                          0 percent; and
                        ``(II) in the case of an expansion State or unit of
                    local government in such State and a class of health
                    care items or services described in section 433.56(a) of
                    title 42, Code

    [[Page 139 STAT. 302]]

                    of Federal Regulations (as in effect on May 1, 2025),
                    subject to clause (iv)--
                              ``(aa) if, on the date of enactment of this
                          subparagraph, the expansion State or unit of local
                          government in such State has enacted a tax and
                          imposes such tax on such class and the Secretary
                          determines that the tax is within the hold
                          harmless threshold as of that date, the lower of--
                                        ``(AA) the applicable percent of net
                                    patient revenue attributable to such
                                    class that has been so determined; and
                                        ``(BB) the applicable percent
                                    specified in clause (ii) for the fiscal
                                    year; and
                              ``(bb) if, on the date of enactment of this
                          subparagraph, the expansion State or unit of local
                          government in such State has not enacted or does
                          not impose a tax with respect to such class, 0
                          percent.
                        ``(ii) For purposes of clause (i)(II)(aa)(BB), the
                    applicable percent is--
                              ``(I) for fiscal year 2028, 5.5 percent;
                              ``(II) for fiscal year 2029, 5 percent;
                              ``(III) for fiscal year 2030, 4.5 percent;
                              ``(IV) for fiscal year 2031, 4 percent; and
                              ``(V) for fiscal year 2032 and each subsequent
                          fiscal year, 3.5 percent.
                        ``(iii) <<NOTE: Definitions.>>  For purposes of
                    clause (i):
                              ``(I) Expansion state.--The term `expansion
                          State' means a State that, beginning on January 1,
                          2014, or on any date thereafter, elects to provide
                          medical assistance to all individuals described in
                          section 1902(a)(10)(A)(i)(VIII) under the State
                          plan under this title or under a waiver of such
                          plan.
                              ``(II) Non-expansion state.--The term `non-
                          expansion State' means a State that is not an
                          expansion State.
                        ``(iv) In the case of a tax of an expansion State or
                    unit of local government in such State in effect on the
                    date of enactment of this clause, that applies to a
                    class of health care items or services that is described
                    in paragraph (3) or (4) of section 433.56(a) of title
                    42, Code of Federal Regulations (as in effect on May 1,
                    2025), and for which, on such date of enactment, is
                    within the hold harmless threshold (as determined by the
                    Secretary), the applicable percent of net patient
                    revenue attributable to such class that has been so
                    determined shall apply for a fiscal year instead of the
                    applicable percent specified in clause (ii) for the
                    fiscal year.''.

        (b) <<NOTE: 42 USC 1396b note.>>  Non-application to Territories.--
    The amendments made by this section shall only apply with respect to a
    State that is 1 of the 50 States or the District of Columbia.

        (c) 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 Administrator of the Centers for Medicare &
    Medicaid Services, $20,000,000 for fiscal year 2026, to remain available
    until expended.

    [[Page 139 STAT. 303]]

    SEC. 71116. <<NOTE: 42 USC 1396a note.>>  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
            Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) that is
            equivalent to minimum essential coverage (as described in
            section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and
            determined in accordance with standards prescribed by the
            Secretary in regulations) under the State plan (or waiver of
            such plan) of such State under title XIX of such Act, 100
            percent of the specified total published Medicare payment rate
            (or, in the absence of a specified total published Medicare
            payment rate, the payment rate under a Medicaid State plan (or
            under a waiver of such plan)); 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, the payment rate under a
            Medicaid State plan (or under a waiver of such plan)).

        (b) <<NOTE: Determination. Effective dates. Time periods..>>
    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 (or a good faith
    effort to receive such approval, as determined by the Secretary) was
    made before May 1, 2025, or a payment described in such section for a
    rural hospital (as defined in subsection (d)(2)) for which written prior
    approval (or a good faith effort to receive such approval, as determined
    by the Secretary) was made by the date of enactment of this Act, for the
    rating period occurring within 180 days of the date of the enactment of
    this Act, or a payment so described for such rating period for which a
    completed preprint was submitted to the Secretary prior to the date of
    enactment of this Act, beginning with the rating period on or after
    January 1, 2028, the total amount of such payment shall be reduced by 10
    percentage points each year until the total payment rate for such
    service is equal to the rate for such service specified in subsection
    (a).

        (c) <<NOTE: Applicability.>>  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
    of enactment of this Act.

        (d) Definitions.--In this section:
                (1) 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).

    [[Page 139 STAT. 304]]

                (2) Rural hospital.--The term ``rural hospital'' means the
            following:
                        (A) A subsection (d) hospital (as defined in
                    paragraph (1)(B) of section 1886(d) of the Social
                    Security Act (42 U.S.C. 1395ww(d))) that--
                              (i) is located in a rural area (as defined in
                          paragraph (2)(D) of such section);
                              (ii) is treated as being located in a rural
                          area pursuant to paragraph (8)(E) of such section;
                          or
                              (iii) is located in a rural census tract of a
                          metropolitan statistical area (as determined under
                          the most recent modification of the Goldsmith
                          Modification, originally published in the Federal
                          Register on February 27, 1992 (57 Fed. Reg.
                          6725)).
                        (B) A critical access hospital (as defined in
                    section 1861(mm)(1) of such Act (42 U.S.C.
                    1395x(mm)(1))).
                        (C) A sole community hospital (as defined in section
                    1886(d)(5)(D)(iii) of such Act (42 U.S.C.
                    1395ww(d)(5)(D)(iii))).
                        (D) A Medicare-dependent, small rural hospital (as
                    defined in section 1886(d)(5)(G)(iv) of such Act (42
                    U.S.C. 1395ww(d)(5)(G)(iv))).
                        (E) A low-volume hospital (as defined in section
                    1886(d)(12)(C) of such Act (42 U.S.C.
                    1395ww(d)(12)(C))).
                        (F) A rural emergency hospital (as defined in
                    section 1861(kkk)(2) of such Act (42 U.S.C.
                    1395x(kkk)(2))).
                (3) State.--The term ``State'' means 1 of the 50 States or
            the District of Columbia.
                (4) Total published medicare payment rate.--The term ``total
            published Medicare payment rate'' has the meaning given to such
            term in section 438.6(a) of title 42, Code of Federal
            Regulations (or a successor regulation).
                (5) Written prior approval.--The term ``written prior
            approval'' has the meaning given to such term in section
            438.6(c)(2)(i) of title 42, Code of Federal Regulations (or a
            successor regulation).

        (e) <<NOTE: Time periods.>>  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, to remain available until expended.
    SEC. 71117. 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.

    [[Page 139 STAT. 305]]

                ``(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) <<NOTE: Definitions.>>  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) <<NOTE: 42 USC 1396b note.>>  Non-application to Territories.--
    The amendments made by this section shall only apply with respect to a
    State that is 1 of the 50 States or the District of Columbia.

        (c) <<NOTE: Applicability. Determination. Time period. 42 USC 1396b
    note.>>  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.

    [[Page 139 STAT. 306]]

    SEC. 71118. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEMONSTRATION
                                PROJECTS UNDER SECTION 1115.

        (a) In General.--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) <<NOTE: Effective date. Certification.>>  In
            general.--Beginning January 1 2027, 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 Chief Actuary for the Centers for Medicare
            & Medicaid Services certifies that such project, or, in the case
            of a renewal, the duration of the preceding waiver, is not
            expected to result in an increase in the amount of Federal
            expenditures compared to the amount that such expenditures would
            otherwise be in the absence of such project. For purposes of
            this subsection, expenditures for the coverage of populations
            and services that the State could have otherwise provided
            through its Medicaid State plan or other authority under title
            XIX, including expenditures that could be made under such
            authority but for the provision of such services at a different
            site of service than authorized under such State plan or other
            authority, shall be considered expenditures in the absence of
            such a 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 the subsequent approval
            period for such project for purposes of taking the difference
            between such expenditures into account.''.

        (b) <<NOTE: Time periods.>>  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 Administrator of the Centers for
    Medicare & Medicaid Services, $5,000,000 for each of fiscal years 2026
    and 2027, to remain available until expended.

                Subchapter D--Increasing Personal Accountability

    SEC. 71119. <<NOTE: Time periods.>> 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 71103 and 71104, is further amended by
    adding at the end the following new subsection:
        ``(xx) Community Engagement Requirement for Applicable
    Individuals.--
                ``(1) <<NOTE: Deadline.>>  In general.--Except as provided
            in paragraph (11), beginning not later than the first day of the
            first quarter that begins after December 31, 2026, or, at the
            option of the State under a waiver or demonstration project
            under section 1115 or the State plan, such earlier date as the
            State may specify, subject to the succeeding provisions of this
            subsection,

    [[Page 139 STAT. 307]]

            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 but not more than 3 (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 <<NOTE: Determination. Criteria. Regulations.>> (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.
                        ``(G) The individual had an average monthly income
                    over the preceding 6 months 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, and is a seasonal worker, as described in section
                    45R(d)(5)(B) of the Internal Revenue Code of 1986 .
                ``(3) Exceptions.--
                        ``(A) Mandatory exception for certain individuals.--
                    The State shall deem an applicable individual to

    [[Page 139 STAT. 308]]

                    have demonstrated community engagement under paragraph
                    (2) for a month, and may elect to not require an
                    individual to verify information resulting in such
                    deeming, 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) entitled to, or
                                            enrolled for, benefits under
                                            part A of title XVIII, or
                                            enrolled for benefits under part
                                            B of title XVIII; or
                                                ``(cc) 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) <<NOTE: Procedures.>>  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, under procedures
                          established by the State (in accordance with
                          standards specified by the Secretary), in the case
                          of a short-term hardship event described in clause
                          (ii)(II) and, upon the request of such individual,
                          a short-term hardship event described in subclause
                          (I) or (III) of clause (ii), 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;
                                        ``(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

    [[Page 139 STAT. 309]]

                                                    ``(BB) 1.5 times the
                                                national unemployment rate;
                                                or
                                        ``(III) such individual or their
                                    dependent must travel outside of their
                                    community for an extended period of time
                                    to receive medical services necessary to
                                    treat a serious or complex medical
                                    condition (as described in paragraph
                                    (9)(A)(ii)(V)(ee)) that are not
                                    available within their community of
                                    residence.
                ``(4) Option to conduct more frequent compliance
            verifications.--With respect to an applicable individual
            enrolled and receiving medical assistance under a State plan (or
            a waiver of such plan) under this title, the State shall verify
            (in accordance with procedures specified by the Secretary) that
            each such individual has met the requirement to demonstrate
            community engagement under paragraph (1) during each such
            individual's regularly scheduled redetermination of eligibility,
            except that a State may provide for such verifications more
            frequently.
                ``(5) <<NOTE: Standards. Processes.>>  Ex parte
            verifications.--For purposes of verifying that an applicable
            individual has met the requirement to demonstrate community
            engagement under paragraph (1), or determining such individual
            to be deemed to have demonstrated community engagement under
            paragraph (3), or that an individual is a specified excluded
            individual under paragraph (9)(A)(ii), 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 or payments or encounter data
            under this title for individuals and data on payments to such
            individuals for the provision of services covered under this
            title) without requiring, where possible, the applicable
            individual to submit additional information.
                ``(6) Procedure in the case of noncompliance.--
                        ``(A) <<NOTE: Notices.>>  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 or
                                    should be 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

    [[Page 139 STAT. 310]]

                              ``(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) <<NOTE: Deadline. Determination.>>  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

    [[Page 139 STAT. 311]]

                    the requirement to demonstrate community engagement
                    under paragraph (1).
                ``(8) Outreach.--
                        ``(A) <<NOTE: Effective date. Notification.>>  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) <<NOTE: Electronic formats.>>  Form of
                    outreach notice.--A notice required under subparagraph
                    (A) shall be delivered--
                              ``(i) <<NOTE: Mail.>>  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

    [[Page 139 STAT. 312]]

                                            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,
                                    caretaker relative, or family caregiver
                                    (as defined in section 2 of the RAISE
                                    Family Caregivers Act) of a dependent
                                    child 13 years of age and under or a
                                    disabled individual;
                                        ``(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);
                                        ``(VIII) who is an inmate of a
                                    public institution; or

    [[Page 139 STAT. 313]]

                                        ``(IX) who is pregnant or entitled
                                    to postpartum medical assistance under
                                    paragraph (5) or (16) of subsection (e).
                        ``(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.
                ``(11) <<NOTE: Determinations.>>  Special implementation
            rule.--
                        ``(A) In general.--Subject to subparagraph (C), the
                    Secretary may exempt a State from compliance with the
                    requirements of this subsection if--
                              ``(i) the State submits to the Secretary a
                          request for such exemption, made in such form and
                          at such time as the Secretary may require, and
                          including the information specified in
                          subparagraph (B); and
                              ``(ii) the Secretary determines that based on
                          such request, the State is demonstrating a good
                          faith effort to comply with the requirements of
                          this subsection.
                        ``(B) Good faith effort determination.--In
                    determining whether a State is demonstrating a good
                    faith effort for purposes of subparagraph (A)(ii), the
                    Secretary shall consider--
                              ``(i) any actions taken by the State toward
                          compliance with the requirements of this
                          subsection;
                              ``(ii) any significant barriers to or
                          challenges in meeting such requirements, including
                          related to funding, design, development,
                          procurement, or installation of necessary systems
                          or resources;
                              ``(iii) the State's detailed plan and timeline
                          for achieving full compliance with such
                          requirements, including any milestones of such
                          plan (as defined by the Secretary); and
                              ``(iv) any other criteria determined
                          appropriate by the Secretary.
                        ``(C) Duration of exemption.--
                              ``(i) <<NOTE: Expiration date.>>  In
                          general.--An exemption granted under subparagraph
                          (A) shall expire not later than December 31, 2028,
                          and may not be renewed beyond such date.
                              ``(ii) Early termination.--The Secretary may
                          terminate an exemption granted under subparagraph
                          (A) prior to the expiration date of such exemption
                          if the Secretary determined that the State has--
                                        ``(I) failed to comply with the
                                    reporting requirements described in
                                    subparagraph (D); or

    [[Page 139 STAT. 314]]

                                        ``(II) based on the information
                                    provided pursuant to subparagraph (D),
                                    failed to make continued good faith
                                    efforts toward compliance with the
                                    requirements of this subsection.
                        ``(D) Reporting requirements.--A State granted an
                    exemption under subparagraph (A) shall submit to the
                    Secretary--
                              ``(i) quarterly progress reports on the
                          State's status in achieving the milestones toward
                          full compliance described in subparagraph
                          (B)(iii); and
                              ``(ii) information on specific risks or newly
                          identified barriers or challenges to full
                          compliance, including the State's plan to mitigate
                          such risks, barriers, or challenges.''.

        (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) <<NOTE: 42 USC 1396b note.>>  Prohibiting Conflicts of
    Interest.--A State shall not use a Medicaid managed care entity or other
    specified entity (as such terms are defined in section 1903(m)(9)(D)),
    or other contractor to determine beneficiary compliance under such
    section unless the contractor has no direct or indirect financial
    relationship with any Medicaid managed care entity or other specified
    entity that is responsible for providing or arranging for coverage of
    medical assistance for individuals enrolled with the entity pursuant to
    a contract with such State.

        (d) <<NOTE: Deadline. 42 USC 1396a note.>>  Interim Final
    Rulemaking.--Not later than June 1, 2026, the Secretary of Health and
    Human Services shall promulgate an interim final rule for purposes of
    implementing the provisions of, and the amendments made by, this
    section. Any action taken to implement the provisions of, and the
    amendments made by, this section shall not be subject to the provisions
    of section 553 of title 5, United States Code.

        (e) <<NOTE: 42 USC 1396a note.>>  Development of Government
    Efficiency Grants to States.--
                (1) In general.--In order for States to establish systems
            necessary to carry out the provisions of, and amendments made
            by, this section or other sections of this chapter that pertain
            to conducting eligibility determinations or redeterminations,
            the Secretary of Health and Human Services shall--
                        (A) out of amounts appropriated under paragraph
                    (3)(A), award to each State a grant equal to the amount
                    specified in paragraph (2) for such State; and
                        (B) out of amounts appropriated under paragraph
                    (3)(B), distribute an equal amount among such States.
                (2) <<NOTE: Effective date.>>  Amount specified.--For
            purposes of paragraph (1)(A), the amount specified in this
            paragraph is an amount that bears the same ratio to the amount
            appropriated under paragraph (3)(A) 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, as of March 31, 2025.
                (3) Funding.--There are appropriated, out of any monies in
            the Treasury not otherwise appropriated--

    [[Page 139 STAT. 315]]

                        (A) $100,000,000 for fiscal year 2026 for purposes
                    of awarding grants under paragraph (1)(A), to remain
                    available until expended; and
                        (B) $100,000,000 for fiscal year 2026 for purposes
                    of award grants under paragraph (1)(B), to remain
                    available until expended.
                (4) Definition.--In this subsection, the term ``State''
            means 1 of the 50 States and the District of Columbia.

        (f) 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 Administrator of the Centers for Medicare &
    Medicaid Services, $200,000,000 for fiscal year 2026, to remain
    available until expended.
    SEC. 71120. <<NOTE: Time periods.>> MODIFYING COST SHARING
                                REQUIREMENTS FOR CERTAIN EXPANSION
                                INDIVIDUALS UNDER THE MEDICAID
                                PROGRAM.

        (a) <<NOTE: Effective dates.>>  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) <<NOTE: Determination.>>  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 certain care, items, or services
                    furnished to such an individual, as determined by the
                    State.
                        ``(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 care, items, or services described in
                          any of subparagraphs (B) through (J) of subsection
                          (a)(2), or any primary care services, mental
                          health care services, substance use disorder
                          services, or services provided by a Federally
                          qualified health center (as defined in
                          1905(l)(2)), certified community behavioral health
                          clinic (as defined in section 1905(jj)(2)), or
                          rural health clinic (as defined in 1905(l)(1)),
                          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

    [[Page 139 STAT. 316]]

                                    plan with respect to care or 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) <<NOTE: Applicability.>>  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 the State 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).
                ``(4) State defined.--For purposes of this subsection, the
            term `State' means 1 of the 50 States or the District of
            Columbia.''.

        (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 care, items, or services furnished to
            specified individuals (as defined in paragraph (3) of section
            1916(k)) in accordance with paragraph (2) of such section''
            after ``section 1916''.

    [[Page 139 STAT. 317]]

                (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)''.

        (c) 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 Administrator of the Centers for Medicare &
    Medicaid Services, $15,000,000 for fiscal year 2026, to remain available
    until expended.

                     Subchapter E--Expanding Access to Care

    SEC. 71121. <<NOTE: Time periods.>> MAKING CERTAIN ADJUSTMENTS TO
                                COVERAGE OF HOME OR COMMUNITY-BASED
                                SERVICES UNDER MEDICAID.

        (a) Expanding HCBS Coverage Under Section 1915(c) Waivers.--Section
    1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) is amended--
                (1) in paragraph (3), by inserting ``paragraph (11) or''
            before ``subsection (h)(2)''; and
                (2) by adding at the end the following new paragraph:

        ``(11) <<NOTE: Determinations.>>  Expanding Coverage for Home or
    Community-based Services.--
                ``(A) <<NOTE: Effective date.>>  In general.--Beginning July
            1, 2028, notwithstanding paragraph (1), the Secretary may
            approve a waiver that is standalone from any other waiver
            approved under this subsection to include as medical assistance
            under the State plan of such State payment for part or all of
            the cost of home or community-based services (other than room
            and board (as described in paragraph (1))) approved by the
            Secretary which are provided pursuant to a written plan of care
            to individuals described in subparagraph (B)(iii). A waiver
            approved under this paragraph shall be for an initial term of 3
            years and, upon the request of the State, shall be extended for
            additional 5-year periods unless the Secretary determines that
            for the previous waiver period the requirements specified under
            this subsection (excluding those excepted under subparagraph
            (B)) have not been met.
                ``(B) State requirements.--In addition to the requirements
            specified under this subsection (except for the requirements
            described in subparagraphs (C) and (D) of paragraph (2) and any
            other requirement specified under this subsection that the
            Secretary determines to be inapplicable in the context of a
            waiver that does not require individuals to have a determination
            described in paragraph (1)), a State shall meet the following
            requirements as a condition of waiver approval:
                        ``(i) As of the date that such State requests a
                    waiver under this subsection to provide home or
                    community-based services to individuals described in
                    clause (iii), all other waivers (if any) granted under
                    this subsection to such State meet the requirements of
                    this subsection.
                        ``(ii) The State demonstrates to the Secretary that
                    approval of a waiver under this subsection with respect
                    to individuals described in clause (iii) will not result
                    in a material increase of the average amount of time
                    that individuals with respect to whom a determination
                    described in paragraph (1) has been made will need to
                    wait to receive

    [[Page 139 STAT. 318]]

                    home or community-based services under any other waiver
                    granted under this subsection, as determined by the
                    Secretary.
                        ``(iii) <<NOTE: Criteria.>>  The State establishes
                    needs-based criteria, subject to the approval of the
                    Secretary, regarding who will be eligible for home or
                    community-based services under a waiver approved under
                    this paragraph without requiring such individuals to
                    have a determination described in paragraph (1), and
                    specifies the home or community-based services such
                    individuals so eligible will receive.
                        ``(iv) <<NOTE: Criteria.>>  The State establishes
                    needs-based criteria for determining whether an
                    individual described in clause (iii) requires the level
                    of care provided in a hospital, nursing facility, or an
                    intermediate care facility for individuals with
                    developmental disabilities under the State plan or under
                    any waiver of such plan that are more stringent than the
                    needs-based criteria established under clause (iii) for
                    determining eligibility for home or community-based
                    services.
                        ``(v) The State attests that the State's average per
                    capita expenditure for medical assistance under the
                    State plan (or waiver of such plan) provided with
                    respect to such individuals enrolled in a waiver under
                    this paragraph will not exceed the State's average per
                    capita expenditure for medical assistance for
                    individuals receiving institutional care under the State
                    plan (or waiver of such plan) for the duration that the
                    waiver under this paragraph is in effect.
                        ``(vi) <<NOTE: Data.>>  The State provides to the
                    Secretary data (in such form and manner as the Secretary
                    may specify) regarding the number of individuals
                    described in clause (iii) with respect to a State
                    seeking approval of a waiver under this subsection, to
                    whom the State will make such services available under
                    such waiver.
                        ``(vii) <<NOTE: Data.>>  The State agrees to provide
                    to the Secretary, not less frequently than annually,
                    data for purposes of paragraph (2)(E) (in such form and
                    manner as the Secretary may specify) regarding, with
                    respect to each preceding year in which a waiver under
                    this subsection to provide home or community-based
                    services to individuals described in clause (iii) was in
                    effect--
                              ``(I) the cost (as such term is defined by the
                          Secretary) of such services furnished to
                          individuals described in clause (iii), broken down
                          by type of service;
                              ``(II) with respect to each type of home or
                          community-based service provided under the waiver,
                          the length of time that such individuals have
                          received such service;
                              ``(III) a comparison between the data
                          described in subclause (I) and any comparable data
                          available with respect to individuals with respect
                          to whom a determination described in paragraph (1)
                          has been made and with respect to individuals
                          receiving institutional care under this title; and
                              ``(IV) the number of individuals who have
                          received home or community-based services under
                          the waiver during the preceding year.

    [[Page 139 STAT. 319]]

                ``(C) Limitation on payments.--No payments made to carry out
            this paragraph shall be used by a State to make payments to a
            third party on behalf of an individual practitioner for benefits
            such as health insurance, skills training, and other benefits
            customary for employees, in the case of a class of practitioners
            for which the program established under this title is the
            primary source of revenue.''.

        (b) Implementation Funding.--
                (1) In general.--There are appropriated, out of any monies
            in the Treasury not otherwise appropriated, to the Administrator
            of the Centers for Medicare & Medicaid Services--
                        (A) for fiscal year 2026, $50,000,000 for purposes
                    of carrying out the provisions of, and the amendments
                    made by, this section, to remain available until
                    expended; and
                        (B) for fiscal year 2027, $100,000,000 for purposes
                    of making payments to States, subject to paragraph (2),
                    to support State systems to deliver home or community-
                    based services under section 1915(c) of the Social
                    Security Act (42 U.S.C. 1396n(c)) (as amended by this
                    section) or under section 1115 of such Act (42 U.S.C.
                    1315), to remain available until expended.
                (2) Payments based on state hcbs eligible population.--
            Payments to States from amounts made available by paragraph
            (1)(B) shall be made, with respect to a State, on the basis of
            the proportion of the population of the State that is receiving
            home or community-based services under section1915(c) of the
            Social Security Act (42 U.S.C. 1396n(c)) (as amended by this
            section) or under section 1115 of such Act (42 U.S.C. 1315), as
            compared to all States.

                               CHAPTER 2--MEDICARE

              Subchapter A--Strengthening Eligibility Requirements

    SEC. 71201. 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. <<NOTE: 42 USC 1395mmm.>>  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 has been granted the status of Cuban and
            Haitian entrant, as defined in section 501(e) of the Refugee
            Education Assistance Act of 1980 (Public Law 96-422); 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.--

    [[Page 139 STAT. 320]]

                ``(1) <<NOTE: Effective date. Time period.>>  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 18 months after such date of enactment.
                ``(2) Review by commissioner of social security.--
                        ``(A) <<NOTE: Deadline.>>  In general.--Not later
                    than 1 year 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) <<NOTE: Termination date.>>  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 18 months 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.''.

                  Subchapter B--Improving Services for Seniors

    SEC. 71202. TEMPORARY PAYMENT INCREASE UNDER THE MEDICARE
                                PHYSICIAN FEE SCHEDULE TO ACCOUNT FOR
                                EXCEPTIONAL CIRCUMSTANCES.

        (a) In General.--Section 1848(t) of the Social Security Act (42
    U.S.C. 1395w-4(t)) is amended--
                (1) in the subsection heading, by striking ``During 2021
            Through 2024'';
                (2) in paragraph (1)--
                        (A) in the matter preceding subparagraph (A), by
                    striking ``and 2024'' and inserting ``2024, and 2026'';
                        (B) in subparagraph (D), by striking ``and'' at the
                    end;
                        (C) in subparagraph (E), by striking the period at
                    the end and inserting ``; and''; and
                        (D) by adding at the end the following new
                    subparagraph:
                        ``(F) such services furnished on or after January 1,
                    2026, and before January 1, 2027, by 2.5 percent.''; and
                (3) in paragraph (2)(C)--
                        (A) in the subparagraph heading, by inserting ``and
                    2026'' after ``2024''; and
                        (B) by striking ``or 2024'' each place it appears
                    and inserting ``2024, or 2026''.

        (b) Conforming Amendment.--Section 1848(c)(2)(B)(iv)(V) of the
    Social Security Act (42 U.S.C. 1395w-4(c)(2)(B)(iv)(V)) is amended by
    striking ``or 2024'' and inserting ``2024, or 2026''.
    SEC. 71203. 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--

    [[Page 139 STAT. 321]]

                (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 such 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) <<NOTE: Applicability.>>  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) <<NOTE: 42 USC 1320f-1 note.>>  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.

                              CHAPTER 3--HEALTH TAX

                  Subchapter A--Improving Eligibility Criteria

    SEC. 71301. 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 ``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 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 has been granted the
                          status of Cuban and Haitian entrant, as defined in
                          section 501(e) of the Refugee Education Assistance
                          Act of 1980 (Public Law 96-422); 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

    [[Page 139 STAT. 322]]

                          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 under
                                    section 36B of the Internal Revenue Code
                                    of 1986 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 credits under section 36B of the Internal Revenue Code of
            1986 for aliens who are not eligible aliens (within the meaning
            of section 36B(e)(2) of such Code)''.
                (3) <<NOTE: 42 USC 18081 note.>>  Effective date.--The
            amendments made by this subsection shall apply with respect to
            plan years beginning on or after January 1, 2027.

        (d) Requirement to Maintain Minimum Essential Coverage.--Section
    5000A(d)(3) <<NOTE: 26 USC 5000A.>>  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))''.

        (e) <<NOTE: 26 USC 36B note.>>  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. 71302. 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).

    [[Page 139 STAT. 323]]

        (b) <<NOTE: 26 USC 36B note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.

                Subchapter B--Preventing Waste, Fraud, and Abuse

    SEC. 71303. REQUIRING VERIFICATION OF ELIGIBILITY FOR PREMIUM TAX
                                CREDIT.

        (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, and
                              ``(ii) for any advance payment under section
                          1412 of the Patient Protection and Affordable Care
                          Act of the credit allowed under this section.
                        ``(B) Applicable enrollment information.--For
                    purposes of subparagraph (A), applicable enrollment
                    information shall include affirmation of at least the
                    following information (to the extent relevant in
                    determining eligibility described in subparagraph (A)):
                              ``(i) Household income and family size.
                              ``(ii) Whether the individual is an eligible
                          alien.
                              ``(iii) Any health coverage status or
                          eligibility for coverage.
                              ``(iv) Place of residence.
                              ``(v) 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 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 and for any such advance
                    payment.
                        ``(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.
                        ``(E) Waiver for certain special enrollment
                    periods.--The Secretary may waive the application of
                    subparagraph (A) in the case of an individual who
                    enrolls in a qualified health plan through an Exchange
                    for 1 or more months of the taxable year during a
                    special enrollment period provided by the Exchange on
                    the basis of a change in the family size of the
                    individual.
                        ``(F) Information and reliance on third-party
                    sources.--An Exchange shall be permitted to use any

    [[Page 139 STAT. 324]]

                    data available to the Exchange and any reliable third-
                    party sources in collecting information for verification
                    by the applicant.
                ``(6) Exchange compliance with filing requirements.--The
            term <<NOTE: Applicability.>>  `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)(iii) of title 45, Code of Federal Regulations (as
            published in the Federal Register on June 25, 2025 (90 Fed. Reg.
            27074), applied as though it applied to all plan years after
            2025), 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
            ``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 household income and
                          eligibility for enrollment in such plan for plan
                          years beginning in the subsequent year.''.

        (c) Effective Date. <<NOTE: 26 USC 36B note.>> --The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2027.
    SEC. 71304. 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) <<NOTE: 26 USC 36B note.>>  Effective Date.--The amendments made
    by this section shall apply with respect to plan years beginning after
    December 31, 2025.
    SEC. 71305. ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT
                                OF PREMIUM TAX CREDIT.

        (a) In General.--Section 36B(f)(2) is amended by striking
    subparagraph (B).

    [[Page 139 STAT. 325]]

        (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) <<NOTE: 26 USC 35 note.>>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2025.

                   Subchapter C--Enhancing Choice for Patients

    SEC. 71306. PERMANENT EXTENSION OF SAFE HARBOR FOR ABSENCE OF
                                DEDUCTIBLE FOR TELEHEALTH SERVICES.

        (a) In General.--Subparagraph (E) of section 223(c)(2) is amended to
    read as follows:
                        ``(E) Safe harbor for absence of deductible for
                    telehealth.--A plan shall not fail to be treated as a
                    high deductible health plan by reason of failing to have
                    a deductible for telehealth and other remote care
                    services.''.

        (b) Certain Coverage Disregarded.--Clause (ii) of section
    223(c)(1)(B) is amended by striking ``(in the case of months or plan
    years to which paragraph (2)(E) applies)''.
        (c) <<NOTE: 26 USC 223 note.>>  Effective Date.--The amendments made
    by this section shall apply to plan years beginning after December 31,
    2024.
    SEC. 71307. 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 which is--
                              ``(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) <<NOTE: 26 USC 223 note.>> Effective Date.--The amendment made
    by this section shall apply to months beginning after December 31, 2025.
    SEC. 71308. 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) <<NOTE: Definition.>>  In
                                    general.--The term `direct primary care
                                    service arrangement' means, with respect
                                    to

    [[Page 139 STAT. 326]]

                                    any individual, an arrangement under
                                    which such individual is provided
                                    medical care (as defined in section
                                    213(d)) consisting solely of primary
                                    care services provided by primary care
                                    practitioners (as defined in section
                                    1833(x)(2)(A) of the Social Security
                                    Act, determined without regard to clause
                                    (ii) thereof), if the sole compensation
                                    for such care is a fixed periodic fee.
                                        ``(II) Limitation.--With respect to
                                    any individual for any month, such term
                                    shall not include any arrangement if the
                                    aggregate fees for all direct primary
                                    care service arrangements (determined
                                    without regard to this subclause) with
                                    respect to such individual for such
                                    month exceed $150 (twice such dollar
                                    amount in the case of an individual with
                                    any direct primary care service
                                    arrangement (as so determined) that
                                    covers more than one individual).
                              ``(iii) Certain services specifically excluded
                          from treatment as primary care services.--For
                          purposes of this subparagraph, the term `primary
                          care services' shall not include--
                                        ``(I) procedures that require the
                                    use of general anesthesia,
                                        ``(II) prescription drugs (other
                                    than vaccines), and
                                        ``(III) laboratory services not
                                    typically administered in an ambulatory
                                    primary care setting.
                          The Secretary, <<NOTE: Regulations. Guidance.>>
                          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 striking ``in subsections (b)(2) and (c)(2)(A)'' and
            inserting ``in subsections (b)(2), (c)(2)(A), and in the case of
            taxable years beginning after 2026, (c)(1)(E)(ii)(II)'',
                (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), `calendar year
                          2025'.'', and
                (3) by inserting ``, (c)(1)(E)(ii)(II),'' after ``(b)(2)''
            in the last sentence.

        (d) <<NOTE: 26 USC 223 note.>>  Effective Date.--The amendments made
    by this section shall apply to months beginning after December 31, 2025.

    [[Page 139 STAT. 327]]

               CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS

    SEC. 71401. <<NOTE: Time periods.>>  RURAL HEALTH TRANSFORMATION
                                PROGRAM.

        (a) In General.--Section 2105 of the Social Security Act (42 U.S.C.
    1397ee) is amended by adding at the end the following new subsection:
        ``(h) Rural Health Transformation Program.--
                ``(1) Appropriation.--
                        ``(A) In general.--There are appropriated, out of
                    any money in the Treasury not otherwise appropriated, to
                    the Administrator of the Centers for Medicare & Medicaid
                    Services (in this subsection referred to as the
                    `Administrator'), to provide allotments to States for
                    purposes of carrying out the activities described in
                    paragraph (6)--
                              ``(i) $10,000,000,000 for fiscal year 2026;
                              ``(ii) $10,000,000,000 for fiscal year 2027;
                              ``(iii) $10,000,000,000 for fiscal year 2028;
                              ``(iv) $10,000,000,000 for fiscal year 2029;
                          and
                              ``(v) $10,000,000,000 for fiscal year 2030.
                        ``(B) Unexpended or unobligated funds.--
                              ``(i) <<NOTE: Effective date.>>  In general.--
                          Any amounts appropriated under subparagraph (A)
                          that are unexpended or unobligated as of October
                          1, 2032, shall be returned to the Treasury of the
                          United States.
                              ``(ii) Redistribution of unexpended or
                          unobligated
                          funds. <<NOTE: Deadline. Determination.>> --In
                          carrying out subparagraph (A), the Administrator
                          shall, not later than March 31, 2028, and annually
                          thereafter through March 31, 2032, determine the
                          amount of funds, if any, that are available under
                          such subparagraph for a previous fiscal year, are
                          unexpended or unobligated with respect to such
                          fiscal year, and will not be available to a State
                          in the current fiscal year, pursuant to clause
                          (iii).
                              ``(iii) Availability of funds.--
                                        ``(I) In general.--Amounts allotted
                                    to a State under this subsection for a
                                    year shall be available for expenditure
                                    by the State through the end of the
                                    fiscal year following the fiscal year in
                                    which such amounts are allotted.
                                        ``(II) Availability of amounts
                                    redistributed.--Amounts redistributed to
                                    a State under clause (ii) with respect
                                    to a fiscal year shall be available for
                                    expenditure by the State through the end
                                    of the fiscal year following the fiscal
                                    year in which such amounts are
                                    redistributed (except in the case of
                                    amounts redistributed in fiscal year
                                    2032 which shall only be available for
                                    expenditure through September 30, 2032).
                              ``(iv) <<NOTE: Determination.>>  Misuse of
                          funds.--If the Administrator determines that a
                          State is not using amounts allotted or
                          redistributed to the State under this subsection
                          in a manner consistent with the description
                          provided by the State in its application approved
                          under paragraph (2), the Administrator may
                          withhold payments to, or reduce payments to, or
                          recover previous payments from, the State under
                          this subsection as the

    [[Page 139 STAT. 328]]

                          Administrator deems appropriate, and any amounts
                          so withheld, or that remain after any such
                          reduction, or so recovered, shall be returned to
                          the Treasury of the United States.
                ``(2) Application.--
                        ``(A) <<NOTE: Deadline.>>  In general.--To be
                    eligible for an allotment under this subsection, a State
                    shall submit to the Administrator during an application
                    submission period to be specified by the Administrator
                    (but that ends not later than December 31, 2025) an
                    application in such form and manner as the Administrator
                    may specify, that includes--
                              ``(i) <<NOTE: Transformation plan.>>  a
                          detailed rural health transformation plan--
                                        ``(I) to improve access to
                                    hospitals, other health care providers,
                                    and health care items and services
                                    furnished to rural residents of the
                                    State;
                                        ``(II) to improve health care
                                    outcomes of rural residents of the
                                    State;
                                        ``(III) to prioritize the use of new
                                    and emerging technologies that emphasize
                                    prevention and chronic disease
                                    management;
                                        ``(IV) to initiate, foster, and
                                    strengthen local and regional strategic
                                    partnerships between rural hospitals and
                                    other health care providers in order to
                                    promote measurable quality improvement,
                                    increase financial stability, maximize
                                    economies of scale, and share best
                                    practices in care delivery;
                                        ``(V) to enhance economic
                                    opportunity for, and the supply of,
                                    health care clinicians through enhanced
                                    recruitment and training;
                                        ``(VI) to prioritize data and
                                    technology driven solutions that help
                                    rural hospitals and other rural health
                                    care providers furnish high-quality
                                    health care services as close to a
                                    patient's home as is possible;
                                        ``(VII) that outlines strategies to
                                    manage long-term financial solvency and
                                    operating models of rural hospitals in
                                    the State; and
                                        ``(VIII) that identifies specific
                                    causes driving the accelerating rate of
                                    stand-alone rural hospitals becoming at
                                    risk of closure, conversion, or service
                                    reduction;
                              ``(ii) <<NOTE: Certification.>>  a
                          certification that none of the amounts provided
                          under this subsection shall be used by the State
                          for an expenditure that is attributable to an
                          intergovernmental transfer, certified public
                          expenditure, or any other expenditure to finance
                          the non-Federal share of expenditures required
                          under any provision of law, including under the
                          State plan established under this title, the State
                          plan established under title XIX, or under a
                          waiver of such plans; and
                              ``(iii) such other information as the
                          Administrator may require.
                        ``(B) Deadline for approval.--Not later than
                    December 31, 2025, the Administrator shall approve or
                    deny all applications submitted for an allotment under
                    this subsection.

    [[Page 139 STAT. 329]]

                        ``(C) One-time application.--If an application of a
                    State for an allotment under this subsection is approved
                    by the Administrator, the State shall be eligible for an
                    allotment under this subsection for each of fiscal years
                    2026 through 2030, except as provided in paragraph
                    (1)(B)(iv).
                        ``(D) Eligibility.--Only the 50 States shall be
                    eligible for an allotment under this subsection and all
                    references in this subsection to a State shall be
                    treated as only referring to the 50 States.
                ``(3) Allotments.--
                        ``(A) <<NOTE: Determination.>>  In general.--For
                    each of fiscal years 2026 through 2030, the
                    Administrator shall determine under subparagraph (B) the
                    amount of the allotment for such fiscal year for each
                    State with an approved application under this
                    subsection.
                        ``(B) Amount determined.--Subject to subparagraph
                    (C), from the amounts appropriated under paragraph
                    (1)(A) for each of fiscal years 2026 through 2030, the
                    Administrator shall allot--
                              ``(i) 50 percent of the amounts appropriated
                          for each such fiscal year equally among all States
                          with an approved application under this
                          subsection; and
                              ``(ii) 50 percent of the amounts appropriated
                          for each such fiscal year among all such States in
                          an amount to be determined by the Administrator in
                          accordance with subparagraph (C).
                        ``(C) <<NOTE: Determination.>>  Requirements.--In
                    determining the amount to be allotted to a State under
                    clause (ii) of subparagraph (B) for a fiscal year, the
                    Administrator shall--
                              ``(i) ensure that not less than \1/4\ of the
                          States with an approved application under this
                          subsection for a fiscal year are allotted funds
                          from amounts that are to be allotted under clause
                          (ii) of such subparagraph; and
                              ``(ii) consider--
                                        ``(I) the percentage of the State
                                    population that is located in a rural
                                    census tract of a metropolitan
                                    statistical area (as determined under
                                    the most recent modification of the
                                    Goldsmith Modification, originally
                                    published in the Federal Register on
                                    February 27, 1992 (57 Fed. Reg. 6725));
                                        ``(II) the proportion of rural
                                    health facilities (as defined in
                                    subparagraph (D)) in the State relative
                                    to the number of rural health facilities
                                    nationwide;
                                        ``(III) the situation of hospitals
                                    in the State, as described in section
                                    1902(a)(13)(A)(iv); and
                                        ``(IV) any other factors that the
                                    Administrator determines appropriate.
                        ``(D) Rural health facility defined.--For the
                    purposes of subparagraph (C)(ii), the term `rural health
                    facility' means the following:
                              ``(i) A subsection (d) hospital (as defined in
                          paragraph (1)(B) of section 1886(d)) that--
                                        ``(I) is located in a rural area (as
                                    defined in paragraph (2)(D) of such
                                    section);

    [[Page 139 STAT. 330]]

                                        ``(II) is treated as being located
                                    in a rural area pursuant to paragraph
                                    (8)(E) of such section; or
                                        ``(III) is located in a rural census
                                    tract of a metropolitan statistical area
                                    (as determined under the most recent
                                    modification of the Goldsmith
                                    Modification, originally published in
                                    the Federal Register on February 27,
                                    1992 (57 Fed. Reg. 6725)).
                              ``(ii) A critical access hospital (as defined
                          in section 1861(mm)(1)).
                              ``(iii) A sole community hospital (as defined
                          in section 1886(d)(5)(D)(iii)).
                              ``(iv) A Medicare-dependent, small rural
                          hospital (as defined in section
                          1886(d)(5)(G)(iv)).
                              ``(v) A low-volume hospital (as defined in
                          section 1886(d)(12)(C)).
                              ``(vi) A rural emergency hospital (as defined
                          in section 1861(kkk)(2)).
                              ``(vii) A rural health clinic (as defined in
                          section 1861(aa)(2)).
                              ``(viii) A Federally qualified health center
                          (as defined in section 1861(aa)(4)).
                              ``(ix) A community mental health center (as
                          defined in section 1861(ff)(3)(B)).
                              ``(x) A health center that is receiving a
                          grant under section 330 of the Public Health
                          Service Act.
                              ``(xi) An opioid treatment program (as defined
                          in section 1861(jjj)(2)) that is located in a
                          rural census tract of a metropolitan statistical
                          area (as determined under the most recent
                          modification of the Goldsmith Modification,
                          originally published in the Federal Register on
                          February 27, 1992 (57 Fed. Reg. 6725)).
                              ``(xii) A certified community behavioral
                          health clinic (as defined in section 1905(jj)(2))
                          that is located in a rural census tract of a
                          metropolitan statistical area (as determined under
                          the most recent modification of the Goldsmith
                          Modification, originally published in the Federal
                          Register on February 27, 1992 (57 Fed. Reg.
                          6725)).
                ``(4) No matching payment.--A State approved for an
            allotment under this subsection for a fiscal year shall not be
            required to provide any matching funds as a condition for
            receiving payments from the allotment.
                ``(5) Terms and conditions.--The Administrator shall specify
            such terms and conditions for allotments to States provided
            under this subsection as the Administrator deems appropriate,
            including the following:
                        ``(A) Each State shall submit to the Administrator
                    (at a time, and in a form and manner, specified by the
                    Administrator)--
                              ``(i) <<NOTE: Plan.>>  a plan for the State to
                          use its allotment to carry out 3 or more of the
                          activities described in paragraph (6); and
                              ``(ii) <<NOTE: Reports.>>  annual reports on
                          the use of allotments, including such additional
                          information as the Administrator determines
                          appropriate.

    [[Page 139 STAT. 331]]

                        ``(B) Not more than 10 percent of the amount
                    allotted to a State for a fiscal year may be used by the
                    State for administrative expenses.
                ``(6) Use of funds.--Amounts allotted to a State under this
            subsection shall be used for 3 or more of the following health-
            related activities:
                        ``(A) Promoting evidence-based, measurable
                    interventions to improve prevention and chronic disease
                    management.
                        ``(B) Providing payments to health care providers
                    for the provision of health care items or services, as
                    specified by the Administrator.
                        ``(C) Promoting consumer-facing, technology-driven
                    solutions for the prevention and management of chronic
                    diseases.
                        ``(D) Providing training and technical assistance
                    for the development and adoption of technology-enabled
                    solutions that improve care delivery in rural hospitals,
                    including remote monitoring, robotics, artificial
                    intelligence, and other advanced technologies.
                        ``(E) Recruiting and retaining clinical workforce
                    talent to rural areas, with commitments to serve rural
                    communities for a minimum of 5 years.
                        ``(F) Providing technical assistance, software, and
                    hardware for significant information technology advances
                    designed to improve efficiency, enhance cybersecurity
                    capability development, and improve patient health
                    outcomes.
                        ``(G) Assisting rural communities to right size
                    their health care delivery systems by identifying needed
                    preventative, ambulatory, pre-hospital, emergency, acute
                    inpatient care, outpatient care, and post-acute care
                    service lines.
                        ``(H) Supporting access to opioid use disorder
                    treatment services (as defined in section 1861(jjj)(1)),
                    other substance use disorder treatment services, and
                    mental health services.
                        ``(I) Developing projects that support innovative
                    models of care that include value-based care
                    arrangements and alternative payment models, as
                    appropriate.
                        ``(J) <<NOTE: Determination.>>  Additional uses
                    designed to promote sustainable access to high quality
                    rural health care services, as determined by the
                    Administrator.
                ``(7) Exemptions.--Paragraphs (2), (3), (5), (6), (8), (10),
            (11), and (12) of subsection (c) do not apply to payments under
            this subsection.
                ``(8) Review.--There shall be no administrative or judicial
            review under section 1116 or otherwise of amounts allotted or
            redistributed to States under this subsection, payments to
            States withheld or reduced under this subsection, or previous
            payments recovered from States under this subsection.
                ``(9) Health care provider defined.--For purposes of this
            subsection, the term `health care provider' means a provider of
            services or supplier who is enrolled under this title, title
            XVIII, or title XIX.''.

        (b) Conforming Amendments.--Title XXI of the Social Security Act (42
    U.S.C. 1397aa) is amended--
                (1) in section 2101--

    [[Page 139 STAT. 332]]

                        (A) in subsection (a), in the matter preceding
                    paragraph (1), by striking ``The purpose'' and inserting
                    ``Except with respect to the rural health transformation
                    program established in section 2105(h), the purpose'';
                    and
                        (B) in subsection (b), in the matter preceding
                    paragraph (1), by inserting ``subsection (a) or (g) of''
                    before ``section 2105'';
                (2) <<NOTE: 42 USC 1397ee.>>  in section 2105(c)(1), by
            striking ``and may not include'' and inserting ``or to carry out
            the rural health transformation program established in
            subsection (h) and, except in the case of amounts made available
            under subsection (h), may not include''; and
                (3) <<NOTE: 42 USC 1397ff.>>  in section 2106(a)(1), by
            inserting ``subsection (a) or (g) of'' before ``section 2105''.

        (c) <<NOTE: 42 USC 1397aa note.>> Implementation.--The Administrator
    of the Centers for Medicare & Medicaid Services shall implement this
    section, including the amendments made by this section, by program
    instruction or other forms of program guidance.

        (d) 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 Administrator of the Centers for Medicare &
    Medicaid Services, $200,000,000 for fiscal year 2025, to remain
    available until expended.

                       Subtitle C--Increase in Debt Limit

    SEC. 72001. <<NOTE: 31 USC 3101 note.>>  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 $5,000,000,000,000.

                            Subtitle D--Unemployment

    SEC. 73001. <<NOTE: 26 USC 3304 note.>>  ENDING UNEMPLOYMENT
                                PAYMENTS TO JOBLESS MILLIONAIRES.

        (a) Prohibition on Use of Federal Funds.--
                (1) In general.--No Federal funds may be used--
                        (A) to make payments of unemployment compensation
                    benefits under an unemployment compensation program of
                    the United States in a year to an individual whose wages
                    during the individual's base period are equal to or
                    exceed $1,000,000; or
                        (B) for any administrative costs associated with
                    making payments described in subparagraph (A).
                (2) Compliance.--
                        (A) <<NOTE: Procedure.>>  Self-certification.--Any
                    application for unemployment compensation under an
                    unemployment compensation program of the United States
                    shall include a form or procedure for an individual
                    applicant to certify that such individual's wages during
                    the individual's base period do not equal or exceed
                    $1,000,000.
                        (B) Verification.--Each State agency that is
                    responsible for administering any unemployment
                    compensation program of the United States shall utilize
                    available systems

    [[Page 139 STAT. 333]]

                    to verify wage eligibility by assessing claimant income
                    to the degree possible.
                (3) Recovery of overpayments.--Each State agency that is
            responsible for administering any unemployment compensation
            program of the United States shall require individuals who have
            received amounts of unemployment compensation under such a
            program to which they were not entitled to repay such amounts.
                (4) Effective date.--The prohibition under paragraph (1)
            shall apply to weeks of unemployment beginning on or after the
            date of the enactment of this Act.

        (b) Unemployment Compensation Program of the United States
    Defined.--In this section, the term ``unemployment compensation program
    of the United States'' means--
                (1) unemployment compensation for Federal civilian employees
            under subchapter I of chapter 85 of title 5, United States Code;
                (2) unemployment compensation for ex-servicemembers under
            subchapter II of chapter 85 of title 5, United States Code;
                (3) extended benefits under the Federal-State Extended
            Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note);
                (4) any Federal temporary extension of unemployment
            compensation;
                (5) any Federal program that increases the weekly amount of
            unemployment compensation payable to individuals; and
                (6) any other Federal program providing for the payment of
            unemployment compensation, as determined by the Secretary of
            Labor.

         TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS

                     Subtitle A--Exemption of Certain Assets

    SEC. 80001. EXEMPTION OF CERTAIN ASSETS.

        (a) Exemption of Certain Assets.--Section 480(f)(2) of the Higher
    Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended--
                (1) by striking ``net value of the'' and inserting the
            following: ``net value of--
                        ``(A) the'';
                (2) by striking the period at the end and inserting a
            semicolon; and
                (3) by adding at the end the following:
                        ``(B) a family farm on which the family resides;
                        ``(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; or
                        ``(D) a commercial fishing business and related
                    expenses, including fishing vessels and permits owned
                    and controlled by the family.''.

        (b) <<NOTE: Time period. 20 USC 1087vv note.>>  Effective Date and
    Application.--The amendments made by subsection (a) shall take effect on
    July 1, 2026, and shall apply

    [[Page 139 STAT. 334]]

    with respect to award year 2026-2027 and each subsequent award year, as
    determined under the Higher Education Act of 1965 (20 U.S.C. 1001 et
    seq.).

                             Subtitle B--Loan Limits

    SEC. 81001. <<NOTE: Effective dates.>>  ESTABLISHMENT OF LOAN
                                LIMITS FOR GRADUATE AND PROFESSIONAL
                                STUDENTS AND PARENT BORROWERS;
                                TERMINATION OF GRADUATE AND
                                PROFESSIONAL PLUS LOANS.

        Section 455(a) of the Higher Education Act of 1965 (20 U.S.C.
    1087e(a)) is amended--
                (1) in paragraph (3)--
                        (A) in the paragraph heading, by inserting ``and
                    federal direct plus loans'' after ``loans'';
                        (B) by striking subparagraph (A) and inserting the
                    following:
                        ``(A) Termination of authority to make interest
                    subsidized loans to graduate and professional
                    students.--Subject to subparagraph (B), and
                    notwithstanding any provision of this part or part B--
                              ``(i) for any period of instruction beginning
                          on or after July 1, 2012, a graduate or
                          professional student shall not be eligible to
                          receive a Federal Direct Stafford loan under this
                          part; and
                              ``(ii) <<NOTE: Time period.>>  for any period
                          of instruction beginning on July 1, 2012, and
                          ending on June 30, 2026, 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 section 428H, plus an
                          amount equal to the amount of Federal Direct
                          Stafford loans the student would have received in
                          the absence of this subparagraph.''; and
                        (C) by adding at the end the following:
                        ``(C) Termination of authority to make federal
                    direct plus loans to graduate and professional
                    students.--Subject to paragraph (8) and notwithstanding
                    any provision of this part or part B, for any period of
                    instruction beginning on or after July 1, 2026, a
                    graduate or professional student shall not be eligible
                    to receive a Federal Direct PLUS Loan under this
                    part.''; and
                (2) by adding at the end the following:
                ``(4) Graduate and professional annual and aggregate limits
            for federal direct unsubsidized stafford loans beginning july 1,
            2026.--
                        ``(A) Annual limits beginning july 1, 2026.--Subject
                    to paragraphs (7)(A) and (8), beginning on July 1, 2026,
                    the maximum annual amount of Federal Direct Unsubsidized
                    Stafford loans--
                              ``(i) a graduate student, who is not a
                          professional student, may borrow in any academic
                          year or its equivalent shall be $20,500; and
                              ``(ii) a professional student may borrow in
                          any academic year or its equivalent shall be
                          $50,000.

    [[Page 139 STAT. 335]]

                        ``(B) Aggregate limits.--Subject to paragraphs (6),
                    (7)(A), and (8), beginning on July 1, 2026, the maximum
                    aggregate amount of Federal Direct Unsubsidized Stafford
                    loans, in addition to the amount borrowed for
                    undergraduate education, that--
                              ``(i) a graduate student--
                                        ``(I) who is not (and has not been)
                                    a professional student, may borrow for
                                    programs of study described in
                                    subparagraph (C)(i) shall be $100,000;
                                    or
                                        ``(II) who is (or has been) a
                                    professional student, may borrow for
                                    programs of study described in
                                    subparagraph (C)(i) shall be an amount
                                    equal to--
                                                ``(aa) $200,000; minus
                                                ``(bb) the amount such
                                            student borrowed for programs of
                                            study described in subparagraph
                                            (C)(ii); and
                              ``(ii) a professional student--
                                        ``(I) who is not (and has not been)
                                    a graduate student, may borrow for
                                    programs of study described in
                                    subparagraph (C)(ii) shall be $200,000;
                                    or
                                        ``(II) who is (or has been) a
                                    graduate student, may borrow for
                                    programs of study described in
                                    subparagraph (C)(ii) shall be an amount
                                    equal to--
                                                ``(aa) $200,000; minus
                                                ``(bb) the amount such
                                            student borrowed for programs of
                                            study described in subparagraph
                                            (C)(i).
                        ``(C) Definitions.--
                              ``(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.--In this
                          paragraph, the term `professional student' means a
                          student enrolled in a program of study that awards
                          a professional degree, as defined under section
                          668.2 of title 34, Code of Federal Regulations (as
                          in effect on the date of enactment of this
                          paragraph), upon completion of the program.
                ``(5) Parent borrower annual and aggregate limits for
            federal direct plus loans beginning july 1, 2026.--
                        ``(A) Annual limits.--Subject to paragraph (8) and
                    notwithstanding any provision of this part or part B,
                    beginning on July 1, 2026, for each dependent student,
                    the total maximum annual amount of Federal Direct PLUS
                    loans that may be borrowed on behalf of that dependent
                    student by all parents of that dependent student shall
                    be $20,000.
                        ``(B) Aggregate limits.--Subject to paragraph (8)
                    and notwithstanding any provision of this part or part
                    B, beginning on July 1, 2026, for each dependent
                    student, the total maximum aggregate amount of Federal
                    Direct PLUS loans that may be borrowed on behalf of that
                    dependent student by all parents of that dependent
                    student shall

    [[Page 139 STAT. 336]]

                    be $65,000, without regard to any amounts repaid,
                    forgiven, canceled, or otherwise discharged on any such
                    loan.
                ``(6) Lifetime maximum aggregate amount for all students.--
            Subject to paragraph (8) and notwithstanding any provision of
            this part or part B, 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 $257,500, without regard to any amounts repaid,
            forgiven, canceled, or otherwise discharged on any such loan.
                ``(7) Additional rules regarding annual loan limits.--
                        ``(A) <<NOTE: Reduction. Publication.>>  Less than
                    full-time enrollment.--Notwithstanding any provision of
                    this part or part B, in any case in which a student is
                    enrolled in a 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 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 subparagraph.
                        ``(B) Institutionally determined limits.--
                    Notwithstanding the annual loan limits established under
                    this section and, for undergraduate students, under this
                    part and part B, 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 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.
                ``(8) Interim exception for certain students.--
                        ``(A) <<NOTE: Deadline.>>  Application of prior
                    limits.--Paragraphs (3)(C), (4), (5), and (6) shall not
                    apply, and paragraph (3)(A)(ii) shall apply as such
                    paragraph was in effect for periods of instruction
                    ending before June 30, 2026, 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 for the
                                    program of study in which the individual
                                    is enrolled; and

    [[Page 139 STAT. 337]]

                                        ``(II) the period of such program of
                                    study that such individual has completed
                                    as of the date of the determination
                                    under this subparagraph.
                        ``(C) Definition of program length.--In this
                    paragraph, 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.''.

                           Subtitle C--Loan Repayment

    SEC. 82001. LOAN REPAYMENT.

        (a) <<NOTE: 20 USC 1087e note.>>  Transition to Income-based
    Repayment Plans.--
                (1) <<NOTE: Deadline.>>  Selection.--The Secretary of
            Education shall take such steps as may be necessary to ensure
            that before July 1, 2028, each borrower who has one or more
            loans that are 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 (referred to in this subsection as
            ``covered income contingent loans'') selects one of the
            following income-based repayment plans that is otherwise
            applicable, and for which that borrower is otherwise eligible,
            for the repayment of the covered income contingent loans of the
            borrower:
                        (A) The Repayment Assistance Plan under section
                    455(q) of the Higher Education Act of 1965.
                        (B) The income-based repayment plan under section
                    493C of the Higher Education Act of 1965.
                        (C) Any other repayment plan as authorized under
                    section 455(d)(1) of the Higher Education Act of 1965.
                (2) Commencement of new repayment plan.--Beginning on July
            1, 2028, a borrower described in paragraph (1) shall begin
            repaying the covered income contingent loans of the borrower in
            accordance with the repayment plan selected under paragraph (1),
            unless the borrower chooses to begin repaying in accordance with
            the repayment plan selected under paragraph (1) before such
            date.
                (3) Failure to select.--In the case of a borrower described
            in paragraph (1) who fails to select a repayment plan in
            accordance with such paragraph, the Secretary of Education
            shall--
                        (A) enroll the covered income contingent loans of
                    such borrower in--
                              (i) the Repayment Assistance Plan under
                          section 455(q) of the Higher Education Act of 1965
                          with respect to loans that are eligible for the
                          Repayment Assistance Plan under such subsection;
                          or
                              (ii) the income-based repayment plan under
                          section 493C of such Act, with respect to loans
                          that are not eligible for the Repayment Assistance
                          Plan; and
                        (B) <<NOTE: Effective date.>>  require the borrower
                    to begin repaying covered income contingent loans
                    according to the plans under subparagraph (A) on July 1,
                    2028.

        (b) Repayment Plans.--Section 455(d) of the Higher Education Act of
    1965 (20 U.S.C. 1087e(d)) is amended--

    [[Page 139 STAT. 338]]

                (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) in subparagraph (D)--
                              (i) by inserting ``before June 30, 2028,''
                          before ``an income contingent repayment plan'';
                          and
                              (ii) by striking ``and'' after the semicolon;
                        (C) in subparagraph (E)--
                              (i) by striking ``that enables borrowers who
                          have a partial financial hardship to make a lower
                          monthly payment'';
                              (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))''; and
                              (iii) by striking the period at the end and
                          inserting ``; and''; and
                        (D) by adding at the end the following:
                        ``(F) <<NOTE: Effective date.>>  beginning on July
                    1, 2026, the income-based Repayment Assistance Plan
                    under subsection (q), provided that--
                              ``(i) such Plan shall not be available for the
                          repayment of excepted loans (as defined in
                          paragraph (7)(E)); and
                              ``(ii) the borrower is required to pay each
                          outstanding loan of the borrower made under this
                          part under such Repayment Assistance Plan, except
                          that a borrower of an excepted loan (as defined in
                          paragraph (7)(E)) may repay the excepted loan
                          separately from other loans under this part
                          obtained by the borrower.'';
                (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. <<NOTE: Applicability.>> --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) <<NOTE: Effective date.>>  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

    [[Page 139 STAT. 339]]

                    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) <<NOTE: Time periods.>>  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 applies to all outstanding loans.--A
                    borrower is required to pay each outstanding loan of the
                    borrower made under this part under the same selected
                    repayment plan, except that a borrower who selects the
                    Repayment Assistance Plan and also has an excepted loan
                    that is not eligible for repayment under such Repayment
                    Assistance Plan shall repay the excepted loan separately
                    from other loans under this part obtained by the
                    borrower.
                        ``(D) Changes of repayment plan.--A borrower may
                    change the borrower's selection of--
                              ``(i) the standard repayment plan under
                          subparagraph (A)(i), or the Secretary's selection
                          of such plan for the borrower under subparagraph
                          (B), as the case may be, to the Repayment
                          Assistance Plan under subparagraph (A)(ii) at any
                          time; and
                              ``(ii) the Repayment Assistance Plan under
                          subparagraph (A)(ii) to the standard repayment
                          plan under subparagraph (A)(i) at any time.
                        ``(E) Repayment for borrowers with excepted loans
                    made on or after july 1, 2026.--

    [[Page 139 STAT. 340]]

                              ``(i) Standard repayment plan required.--
                          Notwithstanding subparagraphs (A) through (D),
                          beginning on July 1, 2026, the Secretary shall
                          require a borrower who has received an excepted
                          loan made on or after such date (including such a
                          borrower who also has an excepted loan made before
                          such date) to repay each excepted loan, including
                          principal and interest on those excepted 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 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).''.

        (c) Elimination of Authority to Provide Income Contingent Repayment
    Plans.--
                (1) Repeal.--Subsection (e) of section 455 of 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 493C.''; 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'';

    [[Page 139 STAT. 341]]

                              (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''; and
                              (ii) in subparagraph (A)--
                                        (I) in the matter preceding clause
                                    (i), by striking ``income-contingent
                                    or''; and
                                        (II) in clause (ii)(I), by striking
                                    ``section 455(e)(8) or the equivalent
                                    procedures established under section
                                    493C(c)(2)(B), as applicable'' and
                                    inserting ``section 493C(c)(2)''.
                (3) <<NOTE: 20 USC 1078 note.>>  Effective date.--The
            amendments made by this subsection shall take effect on July 1,
            2028.

        (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) <<NOTE: Effective date.>>  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 (4)(B), except that the
                    borrower may not be precluded from repaying an amount
                    that exceeds such amount for any month.
                        ``(B) <<NOTE: Applicability.>>  The Secretary shall
                    apply the borrower's applicable monthly payment under
                    this paragraph first toward

    [[Page 139 STAT. 342]]

                    interest due on each such loan, next toward any fees due
                    on each loan, and then toward the principal of each
                    loan.
                        ``(C) <<NOTE: Deferment.>>  Any principal due and
                    not paid under subparagraph (B) or paragraph (2)(B)
                    shall be deferred.
                        ``(D) <<NOTE: Applicability. Time period.>>  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) <<NOTE: Cancellation.>>  The Secretary shall
                    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) <<NOTE: Time period.>>  who has made
                          360 qualifying monthly payments on such loan.
                        ``(F) <<NOTE: Definition.>>  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 (excluding the Repayment Assistance Plan
                          under this subsection) 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 July 1,
                          2028, 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
                          under subsection (f)(2)(B) or due to an economic
                          hardship described in subsection (f)(2)(D).

    [[Page 139 STAT. 343]]

                              ``(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 of 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) <<NOTE: Applicability. Time
                    period. Determination.>>  The procedures established by
                    the Secretary under section 493C(c) shall apply for
                    annually determining the borrower's eligibility for the
                    Repayment Assistance Plan, including verification of a
                    borrower's annual income and the annual amount due on
                    the total amount of loans eligible to be repaid under
                    this subsection, and such other procedures as are
                    necessary to effectively implement income-based
                    repayment under this subsection. 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).
                ``(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) <<NOTE: Reduction.>>  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) <<NOTE: Applicability.>>  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) Additional documents.--A borrower who chooses, or is
            required, to repay a loan under this subsection, and for whom
            adjusted gross income is unavailable or does not reasonably
            reflect the borrower's current income, shall provide to the
            Secretary other documentation of income satisfactory to the
            Secretary, which documentation the Secretary may use to
            determine repayment under this subsection.
                ``(4) Definitions.--In this subsection:

    [[Page 139 STAT. 344]]

                        ``(A) Adjusted gross income.--The term `adjusted
                    gross income', when used with respect to a borrower,
                    means the adjusted gross income (as such term is defined
                    in section 62 of the Internal Revenue Code of 1986) of
                    the borrower (and the borrower's spouse, as applicable)
                    for the most recent taxable year, except that, in the
                    case of a married borrower who files a separate Federal
                    income tax return, the term does not include the
                    adjusted gross income of the borrower's spouse.
                        ``(B) Applicable monthly payment.--
                              ``(i) In general.--Except as provided in
                          clause (ii), (iii), or (vi), the term `applicable
                          monthly payment' means, when used with respect to
                          a borrower, the amount equal to--
                                        ``(I) the applicable base payment of
                                    the borrower, divided by 12; minus
                                        ``(II) $50 for each dependent of the
                                    borrower (which, in the case of a
                                    married borrower filing a separate
                                    Federal income tax return, shall include
                                    only each dependent that the borrower
                                    claims on that return).
                              ``(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

    [[Page 139 STAT. 345]]

                                        ``(XI) more than $100,000, is 10
                                    percent of such adjusted gross income.
                              ``(v) Dependent.--For the purposes of this
                          paragraph, the term `dependent' means an
                          individual who is a dependent under section 152 of
                          the Internal Revenue Code of 1986.
                              ``(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) <<NOTE: Time period.>>  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) <<NOTE: Effective date.>>  Consolidation loans made on
            or after july 1, 2026.-- <<NOTE: Determination.>> 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 clause (i) or (ii) of subsection
            (d)(7)(A) 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 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) <<NOTE: Time period.>>  Exclusion.--The term
                    `excepted consolidation loan' does not include a Federal
                    Direct Consolidation Loan described in subparagraph (A)
                    that, on any date during the period beginning on the
                    date of enactment of this subparagraph and ending on
                    June 30, 2028, was being repaid--
                              ``(i) pursuant to the Income Contingent
                          Repayment (ICR) plan in accordance with section
                          685.209(b) of

    [[Page 139 STAT. 346]]

                          title 34, Code of Federal Regulations (as in
                          effect on June 30, 2023); or
                              ``(ii) pursuant to another income driven
                          repayment plan.''.
                        (B) Termination of partial financial hardship
                    eligibility.--Section 493C(a)(3) of the Higher Education
                    Act of 1965 (20 U.S.C. 1098e(a)(3)) is amended to read
                    as follows:
                ``(3) <<NOTE: Definition.>>  Applicable amount.--The term
            `applicable amount' means 15 percent of the result obtained by
            calculating, on at least an annual basis, the amount by which--
                        ``(A) the borrower's, and the borrower's spouse's
                    (if applicable), adjusted gross income; exceeds
                        ``(B) 150 percent of the poverty line applicable to
                    the borrower's family size as determined under section
                    673(2) of the Community Services Block Grant Act (42
                    U.S.C. 9902(2)).''.
                        (C) 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 applicable
            amount divided by 12;'';
                              (ii) by striking paragraph (6) and inserting
                          the following:
                ``(6) <<NOTE: Time period.>>  if the monthly payment amount
            calculated under this section for all loans made to the borrower
            under part B or D (other than an excepted PLUS loan or excepted
            consolidation loan) exceeds the monthly amount calculated under
            section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year
            repayment period, when the borrower first made the election
            described in this subsection (referred to in this paragraph as
            the `standard monthly repayment amount'), or if the borrower no
            longer wishes to continue the election under this subsection,
            then--
                        ``(A) the maximum monthly payment required to be
                    paid for all loans made to the borrower under part B or
                    D (other than an excepted PLUS loan or excepted
                    consolidation loan) shall be the standard monthly
                    repayment amount; and
                        ``(B) the amount of time the borrower is permitted
                    to repay such loans may exceed 10 years;'';
                              (iii) in paragraph (7)(B)(iv), by inserting
                          ``(as such section was in effect on the day before
                          the date of the repeal of section 455(e)'' after
                          ``section 455(d)(1)(D)''; and
                              (iv) in paragraph (8), by inserting ``or the
                          Repayment Assistance Program under section
                          455(q)'' after ``standard repayment plan''.
                        (D) Eligibility determinations.--Section 493C(c) of
                    the Higher Education Act of 1965 (20 U.S.C. 1098e(c)) is
                    amended to read as follows:

        ``(c) <<NOTE: Procedures.>>  Eligibility Determinations; Automatic
    Recertification.--

    [[Page 139 STAT. 347]]

                ``(1) <<NOTE: Time period.>>  In general.--The Secretary
            shall establish procedures for annually determining, in
            accordance with paragraph (2), the borrower's eligibility for
            income-based repayment, including the verification of a
            borrower's annual income and the annual amount due on the total
            amount of loans made, insured, or guaranteed under part B or D
            (other than an excepted PLUS loan or excepted consolidation
            loan), and such other procedures as are necessary to effectively
            implement income-based repayment under this section. The
            Secretary shall consider, but is not limited to, the procedures
            established in accordance with section 455(e)(1) (as in effect
            on the day before the date of repeal of subsection (e) of
            section 455) or in connection with income sensitive repayment
            schedules under section 428(b)(9)(A)(iii) or 428C(b)(1)(E).
                ``(2) Automatic recertification.--
                        ``(A) In general.--The Secretary shall establish and
                    implement, with respect to any borrower enrolled in an
                    income-based repayment program under this section or
                    under section 455(q), procedures to--
                              ``(i) use return information disclosed under
                          section 6103(l)(13) of the Internal Revenue Code
                          of 1986, pursuant to approval provided under
                          section 494, to determine the repayment obligation
                          of the borrower without further action by the
                          borrower;
                              ``(ii) allow the borrower (or the spouse of
                          the borrower), at any time, to opt out of
                          disclosure under such section 6103(l)(13) and
                          instead provide such information as the Secretary
                          may require to determine the repayment obligation
                          of the borrower (or withdraw from the repayment
                          plan under this section or under section 455(q),
                          as the case may be); and
                              ``(iii) provide the borrower with an
                          opportunity to update the return information so
                          disclosed before the determination of the
                          repayment obligation of the borrower.
                        ``(B) Applicability.--Subparagraph (A) shall apply
                    to each borrower of a loan eligible to be repaid under
                    this section or under section 455(q), who, on or after
                    the date on which the Secretary establishes procedures
                    under such subparagraph (A)--
                              ``(i) selects, or is required to repay such
                          loan pursuant to, an income-based repayment plan
                          under this section or under section 455(q); or
                              ``(ii) recertifies income or family size under
                          such plan.''.
                        (E) <<NOTE: Effective date.>>  Special terms for new
                    borrowers on and after july 1, 2014.--Section 493C(e) of
                    the Higher Education Act of 1965 (20 U.S.C. 1098e(e)) is
                    amended--
                              (i) in the subsection heading, by inserting
                          ``and Before July 1, 2026'' after ``After July 1,
                          2014''; and
                              (ii) by inserting ``and before July 1, 2026''
                          after ``after July 1, 2014''.
                (2) <<NOTE: 20 USC 1098e note.>>  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

    [[Page 139 STAT. 348]]

            who is in repayment before, on, or after the date of enactment
            of this title.

        (g) FFEL Adjustment.--Section 428(b)(9)(A)(v) of the Higher
    Education Act of 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended by
    striking ``who has a partial financial hardship''.
    SEC. 82002. DEFERMENT; FORBEARANCE.

        (a) 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) by striking the subsection heading and inserting the
            following: ``Deferment; Forbearance'';
                (2) 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
                (3) 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, 2027, shall not be eligible to defer such
            loan under subparagraph (B) or (D) of paragraph (2).''.

        (b) <<NOTE: Effective date.>>  Forbearance on Loans Made Under This
    Part on or After July 1, 2027.--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) <<NOTE: Time periods.>>  Forbearance on loans made
            under this part on or after july 1, 2027.--A borrower who
            receives a loan made under this part on or after July 1, 2027,
            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.''.
    SEC. 82003. 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) <<NOTE: Applicability. 20 USC 1078-6 note.>>  Effective
            date.--The amendments made by this subsection shall take effect
            beginning on July 1, 2027, and shall apply with respect to any
            loan made, insured, or guaranteed under title IV of the Higher
            Education Act of 1965 (20 U.S.C. 1070 et seq.).

        (b) <<NOTE: Effective date.>>  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 to a borrower who has 1 or more loans made under part D on or
    after July 1, 2027 that are described in subparagraph (A), the total
    monthly payment of the borrower for all such loans shall not be less
    than $10.''.
    SEC. 82004. PUBLIC SERVICE LOAN FORGIVENESS.

        Section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C.
    1087e(m)(1)(A)) is amended--

    [[Page 139 STAT. 349]]

                (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 subsection (q); and''.
    SEC. 82005. 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 servicing.--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) $1,000,000,000 to be
            obligated for administrative costs under this part and part B,
            including the costs of servicing the direct student loan
            programs under this part, which shall remain available until
            expended.''.

                             Subtitle D--Pell Grants

    SEC. 83001. 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) <<NOTE: Definition.>>  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) for Federal Pell Grant
                                    determinations made for academic years
                                    beginning on or after July 1, 2026, 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) for Federal Pell Grant
                                    determinations made for academic years
                                    beginning on or after July 1, 2026, 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--
                        (A) by striking ``A student'' and inserting ``For
                    each academic year beginning before July 1, 2026, a
                    student''; and

    [[Page 139 STAT. 350]]

                        (B) by inserting ``, as in effect for such academic
                    year,'' after ``section 479A(b)(1)(B)(v)''.
                (3) Conforming amendments.--
                        (A) In general.--Section 479A(b)(1)(B) of the Higher
                    Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is
                    amended--
                              (i) by striking clause (v); and
                              (ii) by redesignating clauses (vi) and (vii)
                          as clauses (v) and (vi), respectively.
                        (B) <<NOTE: 20 USC 1087tt note.>>  Effective date.--
                    The amendment made by subparagraph (A) shall take effect
                    on July 1, 2026.

        (b) Federal Pell Grant Ineligibility Due to a High Student Aid
    Index.--
                (1) In general.--Section 401(b)(1) of the Higher Education
            Act of 1965 (20 U.S.C. 1070a(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.''.
                (2) <<NOTE: 20 USC 1070a note.>>  Effective date.--The
            amendment made by paragraph (1) shall take effect on July 1,
            2026.
    SEC. 83002. <<NOTE: Time periods.>>  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) <<NOTE: Effective date.>>  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 subsection (b)(9)(A)) shall be substituted by
                    `eligible workforce program under section 481(b)(3)';

    [[Page 139 STAT. 351]]

                        ``(B) the provisions of subsection (d)(2) shall not
                    be applicable to eligible workforce programs; and
                        ``(C) 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) <<NOTE: Determination.>>  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 July 1, 2021);
                        ``(iii) <<NOTE: State and local
                    governments. Determination.>>  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

    [[Page 139 STAT. 352]]

                                                ``(BB) provides such
                                            students with such a credential
                                            upon completion of such program;
                                            and
                              ``(IV) prepares students to pursue 1 or more
                          certificate or degree programs at 1 or more
                          institutions of higher education (which may
                          include the eligible institution providing the
                          program), including by ensuring--
                                        ``(aa) that a student, upon
                                    completion of the program and enrollment
                                    in such a related certificate or degree
                                    program, will receive academic credit
                                    for the Workforce Pell program that will
                                    be accepted toward meeting such
                                    certificate or degree program
                                    requirements; and
                                        ``(bb) the acceptability of such
                                    credit toward meeting such certificate
                                    or degree program requirements; and
                        ``(iv) <<NOTE: State and local
                    governments. Determination.>>  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 total amount
                          of the published tuition and fees of the program
                          for such year is an amount that does not exceed
                          the value-added earnings of students who received
                          Federal financial aid under this title and who
                          completed the program 3 years prior to the award
                          year, as such earnings are determined by
                          calculating the difference between--
                                        ``(aa) the median earnings of such
                                    students, as adjusted by the State and
                                    metropolitan area regional price
                                    parities of the Bureau of Economic
                                    Analysis based on the location of such
                                    program; and
                                        ``(bb) 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.
                ``(B) <<NOTE: Definitions.>>  In this paragraph:
                        ``(i) The term `eligible institution' means an
                    eligible institution for purposes of section 401.
                        ``(ii) The term `Governor' means the chief executive
                    of a State.
                        ``(iii) The terms `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) <<NOTE: 20 USC 1070a note.>>  Effective Date; Applicability.--
    The amendments made by this section shall take effect on July 1, 2026,
    and shall apply

    [[Page 139 STAT. 353]]

    with respect to award year 2026-2027 and each succeeding award year.
    SEC. 83003. PELL SHORTFALL.

        Section 401(b)(7)(A)(iii) of the Higher Education Act of 1965 (20
    U.S.C. 1070a(b)(7)(A)(iii)) is amended by striking ``$2,170,000,000''
    and inserting ``$12,670,000,000''.
    SEC. 83004. FEDERAL PELL GRANT EXCLUSION RELATING TO OTHER GRANT
                                AID.

        Section 401(d) of the Higher Education Act of 1965 (20 U.S.C.
    1070a(d)) is amended by adding at the end the following:
                ``(6) <<NOTE: Effective date.>>  Exclusion.--Beginning on
            July 1, 2026, and notwithstanding this subsection or subsection
            (b), a student shall not be eligible for a Federal Pell Grant
            under subsection (b) during any period for which the student
            receives grant aid from non-Federal sources, including States,
            institutions of higher education, or private sources, in an
            amount that equals or exceeds the student's cost of attendance
            for such period.''.

                           Subtitle E--Accountability

    SEC. 84001. INELIGIBILITY BASED ON LOW EARNING OUTCOMES.

        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:
                ``(6) provide assurances that, beginning July 1, 2026, the
            institution will comply with all requirements of subsection (c);
            and'';
                (2) in subsection (b)(2), by striking ``and (6)'' and
            inserting ``(6), and (7)'';
                (3) by redesignating subsection (c) as subsection (d); and
                (4) by inserting after subsection (b) the following:

        ``(c) <<NOTE: Time periods.>>  Ineligibility for Certain Programs
    Based on Low Earning Outcomes.--
                ``(1) In general.--Notwithstanding section 481(b), an
            institution of higher education subject to this subsection shall
            not use funds under this part for student enrollment in an
            educational program offered by the institution that is described
            in paragraph (2).
                ``(2) <<NOTE: Determination.>>  Low-earning outcome programs
            described.--An educational program at an institution is
            described in this paragraph if the program awards an
            undergraduate degree, graduate or professional degree, or
            graduate certificate, for which the median earnings (as
            determined by the Secretary) of the programmatic cohort of
            students who received funds under this title for enrollment in
            such program, who completed such program during the academic
            year that is 4 years before the year of the determination, who
            are not enrolled in any institution of higher education, and who
            are working, are, for not less than 2 of the 3 years immediately
            preceding the date of the determination, less than the median
            earnings of a

    [[Page 139 STAT. 354]]

            working adult described in paragraph (3) for the corresponding
            year.
                ``(3) Calculation of median earnings.--
                        ``(A) Working adult.--For purposes of applying
                    paragraph (2) to an educational program at an
                    institution, a working adult described in this paragraph
                    is a working adult who, for the corresponding year--
                              ``(i) is aged 25 to 34;
                              ``(ii) is not enrolled in an institution of
                          higher education; and
                              ``(iii)(I) in the case of a determination made
                          for an educational program that awards a
                          baccalaureate or lesser degree, has only a high
                          school diploma or its recognized equivalent; or
                              ``(II) in the case of a determination made for
                          a graduate or professional program, has only a
                          baccalaureate degree.
                        ``(B) <<NOTE: Applicability.>>  Source of data.--For
                    purposes of applying paragraph (2) to an educational
                    program at an institution, the median earnings of a
                    working adult, as described in subparagraph (A), shall
                    be based on data from the Bureau of the Census--
                              ``(i) with respect to an educational program
                          that awards a baccalaureate or lesser degree--
                                        ``(I) for the State in which the
                                    institution is located; or
                                        ``(II) if fewer than 50 percent of
                                    the students enrolled in the institution
                                    reside in the State where the
                                    institution is located, for the entire
                                    United States; and
                              ``(ii) with respect to an educational program
                          that is a graduate or professional program--
                                        ``(I) for the lowest median earnings
                                    of--
                                                ``(aa) a working adult in
                                            the State in which the
                                            institution is located;
                                                ``(bb) a working adult in
                                            the same field of study (as
                                            determined by the Secretary,
                                            such as by using the 2-digit CIP
                                            code) in the State in which the
                                            institution is located; and
                                                ``(cc) a working adult in
                                            the same field of study (as so
                                            determined) in the entire United
                                            States; or
                                        ``(II) if fewer than 50 percent of
                                    the students enrolled in the institution
                                    reside in the State where the
                                    institution is located, for the lower
                                    median earnings of--
                                                ``(aa) a working adult in
                                            the entire United States; or
                                                ``(bb) a working adult in
                                            the same field of study (as so
                                            determined) in the entire United
                                            States.
                ``(4) Small programmatic cohorts.--For any year for which
            the programmatic cohort described in paragraph (2) for an
            educational program of an institution is fewer than 30
            individuals, the Secretary shall--

    [[Page 139 STAT. 355]]

                        ``(A) first, aggregate additional years of
                    programmatic data in order to achieve a cohort of at
                    least 30 individuals; and
                        ``(B) second, in cases in which the cohort
                    (including the individuals added under subparagraph (A))
                    is still fewer than 30 individuals, aggregate additional
                    cohort years of programmatic data for educational
                    programs of equivalent length in order to achieve a
                    cohort of at least 30 individuals.
                ``(5) Appeals process.--An educational program shall not
            lose eligibility under this subsection unless the institution
            has had the opportunity to appeal the programmatic median
            earnings of students working and not enrolled determination
            under paragraph (2), through a process established by the
            Secretary. During such appeal, the Secretary may permit the
            educational program to continue to participate in the program
            under this part.
                ``(6) Notice to students.--
                        ``(A) In general.--If an educational program of an
                    institution of higher education subject to this
                    subsection does not meet the cohort median earning
                    requirements, as described in paragraph (2), for one
                    year during the applicable covered period but has not
                    yet failed to meet such requirements for 2 years during
                    such covered period, the institution shall promptly
                    inform each student enrolled in the educational program
                    of the eligible program's low cohort median earnings and
                    that the educational program is at risk of losing its
                    eligibility for funds under this part.
                        ``(B) <<NOTE: Definition.>>  Covered period.--In
                    this paragraph, the term `covered period' means the
                    period of the 3 years immediately preceding the date of
                    a determination made under paragraph (2).
                ``(7) <<NOTE: Process.>>  Regaining programmatic
            eligibility.--The Secretary shall establish a process by which
            an institution of higher education that has an educational
            program that has lost eligibility under this subsection may,
            after a period of not less than 2 years of such program's
            ineligibility, apply to regain such eligibility, subject to the
            requirements established by the Secretary that further the
            purpose of this subsection.''.

                          Subtitle F--Regulatory Relief

    SEC. 85001. <<NOTE: Effective dates.>>  DELAY OF RULE RELATING TO
                                BORROWER DEFENSE TO REPAYMENT.

        (a) Delay.--Beginning on the date of enactment of this section, for
    loans that first originate before July 1, 2035, the provisions of
    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 on November 1,
    2022, and titled ``Institutional Eligibility Under the Higher Education
    Act of 1965, as Amended; Student Assistance General Provisions; Federal
    Perkins Loan Program; Federal Family Education Loan Program; and William
    D. Ford Federal Direct Loan Program'' (87 Fed. Reg. 65904) shall not be
    in effect.
        (b) Effect.--Beginning on the date of enactment of this section,
    with respect to loans that first originate before July 1, 2035, any
    regulations relating to borrower defense to repayment that took

    [[Page 139 STAT. 356]]

    effect on July 1, 2020, are restored and revived as such regulations
    were in effect on such date.
    SEC. 85002. <<NOTE: Effective dates.>>  DELAY OF RULE RELATING TO
                                CLOSED SCHOOL DISCHARGES.

        (a) Delay.--Beginning on the date of enactment of this section, for
    loans that first originate before July 1, 2035, the provisions of
    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 on
    November 1, 2022, and titled ``Institutional Eligibility Under the
    Higher Education Act of 1965, as Amended; Student Assistance General
    Provisions; Federal Perkins Loan Program; Federal Family Education Loan
    Program; and William D. Ford Federal Direct Loan Program'' (87 Fed. Reg.
    65904), shall not be in effect.
        (b) Effect.--Beginning on the date of enactment of this section,
    with respect to loans that first originate before July 1, 2035, the
    portions of the Code of Federal Regulations described in subsection (a)
    and amended by the final regulations described in subsection (a) shall
    be in effect as if the amendments made by such final regulations had not
    been made.

                          Subtitle G--Garden of Heroes

    SEC. 86001. <<NOTE: Appropriations authorization. Time period.>>
                                GARDEN OF HEROES.

        In addition to amounts otherwise available, there are appropriated
    to the National Endowment for the Humanities for fiscal year 2025, out
    of any money in the Treasury not otherwise appropriated, to remain
    available through fiscal year 2028, $40,000,000 for the procurement of
    statues as described in Executive Order 13934 (85 Fed. Reg. 41165;
    relating to building and rebuilding monuments to American heroes),
    Executive Order 13978 (86 Fed. Reg. 6809; relating to building the
    National Garden of American Heroes), and Executive Order 14189 (90 Fed.
    Reg. 8849; relating to celebrating America's birthday).

                   Subtitle H--Office of Refugee Resettlement

    SEC. 87001. POTENTIAL SPONSOR VETTING FOR UNACCOMPANIED ALIEN
                                CHILDREN APPROPRIATION.

        (a) <<NOTE: Time period.>>  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, $300,000,000, to remain available until
    September 30, 2028, for the purposes described in subsection (b).

        (b) Use of Funds.--The funds made available under subsection (a) may
    only be used for the Office of Refugee Resettlement to support costs
    associated with--
                (1) background checks on potential sponsors, which shall
            include--
                        (A) the name of the potential sponsor and of all
                    adult residents of the potential sponsor's household;
                        (B) the social security number or tax payer
                    identification number of the potential sponsor and of
                    all adult residents of the potential sponsor's
                    household;

    [[Page 139 STAT. 357]]

                        (C) the date of birth of the potential sponsor and
                    of all adult residents of the potential sponsor's
                    household;
                        (D) the validated location of the residence at which
                    the unaccompanied alien child will be placed;
                        (E) an in-person or virtual interview with, and
                    suitability study concerning, the potential sponsor and
                    all adult residents of the potential sponsor's
                    household;
                        (F) contact information for the potential sponsor
                    and for all adult residents of the potential sponsor's
                    household; and
                        (G) the results of all background and criminal
                    records checks for the potential sponsor and for all
                    adult residents of the potential sponsor'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) home studies of potential sponsors of unaccompanied
            alien children;
                (3) <<NOTE: Determination.>>  determining 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 and
            covering such tattoos or markings while the child is in the care
            of the Office of Refugee Resettlement;
                (4) data systems improvement and sharing that supports the
            health, safety, and well being of unaccompanied alien children
            by determining the appropriateness of potential sponsors of
            unaccompanied alien children and of adults residing in the
            household of the potential sponsor and by assisting with the
            identification and investigation of child labor exploitation and
            child trafficking; and
                (5) coordinating and communicating with State child welfare
            agencies regarding the placement of unaccompanied alien children
            in such States by the Office of Refugee Resettlement.

        (c) Definitions.--In this section:
                (1) Potential sponsor.--The term ``potential sponsor'' means
            an individual or entity who applies for the custody of an
            unaccompanied alien child.
                (2) Unaccompanied alien child.--The term ``unaccompanied
            alien child'' has the meaning given such term in section 462(g)
            of the Homeland Security Act of 2002 (6 U.S.C. 279(g)).

             TITLE IX-- <<NOTE: Appropriations authorization. Time
    periods.>> COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    Subtitle A--Homeland Security Provisions

    SEC. 90001. BORDER INFRASTRUCTURE AND WALL SYSTEM.

        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, $46,550,000,000 for necessary
    expenses relating to the following elements of the border infrastructure
    and wall system:

    [[Page 139 STAT. 358]]

                (1) Construction, installation, or improvement of new or
            replacement primary, waterborne, and secondary barriers.
                (2) Access roads.
                (3) Barrier system attributes, including cameras, lights,
            sensors, and other detection technology.
                (4) Any work necessary to prepare the ground at or near the
            border to allow U.S. Customs and Border Protection to conduct
            its operations, including the construction and maintenance of
            the barrier system.
    SEC. 90002. U.S. CUSTOMS AND BORDER PROTECTION PERSONNEL, FLEET
                                VEHICLES, AND FACILITIES.

        (a) In General.--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, the following:
                (1) Personnel.--$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 field support personnel.
                (2) Retention, hiring, and performance bonuses.--
            $2,052,630,000, to remain available until September 30, 2029, to
            provide recruitment bonuses, performance awards, or annual
            retention bonuses to eligible Border Patrol agents, Office of
            Field Operations officers, and Air and Marine agents.
                (3) Vehicles.--$855,000,000, to remain available until
            September 30, 2029, for the repair of existing patrol units and
            the lease or acquisition of additional patrol units.
                (4) Facilities.--$5,000,000,000 for necessary expenses
            relating to lease, acquisition, construction, design, or
            improvement of facilities and checkpoints owned, leased, or
            operated by U.S. Customs and Border Protection.

        (b) <<NOTE: Expiration date.>>  Restriction.--None of the funds made
    available by subsection (a) may be used to recruit, hire, or train
    personnel for the duties of processing coordinators after October 31,
    2028.
    SEC. 90003. DETENTION CAPACITY.

        (a) In General.--In addition to any amounts otherwise appropriated,
    there is appropriated to U.S. Immigration and Customs Enforcement for
    fiscal year 2025, out of any money in the Treasury not otherwise
    appropriated, to remain available until September 30, 2029,
    $45,000,000,000, for single adult alien detention capacity and family
    residential center capacity.
        (b) Duration and Standards.--Aliens may be detained at family
    residential centers, as described in subsection (a), pending a decision,
    under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), 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. The detention standards for the single adult detention capacity
    described in subsection (a) shall be set in the discretion of the
    Secretary of Homeland Security, consistent with applicable law.
        (c) Definition of Family Residential Center.--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 (as
    defined in section 462(g) of the Homeland Security

    [[Page 139 STAT. 359]]

    Act of 2002 (6 U.S.C. 279(g)))) who are encountered or apprehended by
    the Department of Homeland Security.
    SEC. 90004. BORDER SECURITY, TECHNOLOGY, AND SCREENING.

        (a) In General.--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,
    $6,168,000,000 for the following:
                (1) Procurement and integration of new nonintrusive
            inspection equipment and associated civil works, including
            artificial intelligence, machine learning, and other innovative
            technologies, as well as other mission support, to combat the
            entry or exit of illicit narcotics at ports of entry and along
            the southwest, northern, and maritime borders.
                (2) Air and Marine operations' upgrading and procurement of
            new platforms for rapid air and marine response capabilities.
                (3) Upgrades and procurement of border surveillance
            technologies along the southwest, northern, and maritime
            borders.
                (4) 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).
                (5) Screening persons entering or exiting the United States.
                (6) Initial screenings of unaccompanied alien children (as
            defined in section 462(g) of the Homeland Security Act of 2002
            (6 U.S.C. 279(g))), consistent with the William Wilberforce
            Trafficking Victims Protection Reauthorization Act of 2008
            (Public Law 110-457; 122 Stat. 5044).
                (7) Enhancing border security by combating drug trafficking,
            including fentanyl and its precursor chemicals, at the
            southwest, northern, and maritime borders.
                (8) Commemorating efforts and events related to border
            security.

        (b) Restrictions.--None of the funds made available under subsection
    (a) may be used for the procurement or deployment of surveillance towers
    along the southwest border and northern border that have not been tested
    and accepted by U.S. Customs and Border Protection to deliver autonomous
    capabilities.
        (c) Definition of Autonomous.--In this section, with respect to
    capabilities, the term ``autonomous'' means a system designed to apply
    artificial intelligence, machine learning, computer vision, or other
    algorithms to accurately detect, identify, classify, and track items of
    interest in real time such that the system can make operational
    adjustments without the active engagement of personnel or continuous
    human command or control.
    SEC. 90005. STATE AND LOCAL ASSISTANCE.

        (a) State Homeland Security Grant Programs.--
                (1) In general.--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 remain
            available until September 30, 2029, 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--

    [[Page 139 STAT. 360]]

                        (A) $500,000,000 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),
                    consistent with titles 18 and 49 of the United States
                    Code;
                        (B) $625,000,000 for security and other costs
                    related to the 2026 FIFA World Cup;
                        (C) $1,000,000,000 for security, planning, and other
                    costs related to the 2028 Olympics; and
                        (D) $450,000,000 for the Operation Stonegarden Grant
                    Program.
                (2) Terms and conditions.--None of the funds made available
            under subparagraph (B) or (C) of paragraph (1) shall be subject
            to the requirements of section 2004(e)(1) or section 2008(a)(12)
            of the Homeland Security Act of 2002 (6 U.S.C. 605(e)(1),
            609(a)(12)).

        (b) <<NOTE: 8 USC 1716.>>  State Border Security Reinforcement
    Fund.--
                (1) Establishment.--There is established, in the Department
            of Homeland Security, a fund to be known as the ``State Border
            Security Reinforcement Fund.''
                (2) Purposes.--The Secretary of Homeland Security shall use
            amounts appropriated or otherwise made available for the Fund
            for grants to eligible States and units of local government for
            any of the following purposes:
                        (A) Construction or installation of a border wall,
                    border fencing or other barrier, or buoys along the
                    southern border of the United States, which may include
                    planning, procurement of materials, and personnel costs
                    related to such construction or installation.
                        (B) Any work necessary to prepare the ground at or
                    near land borders to allow construction and maintenance
                    of a border wall or other barrier fencing.
                        (C) Detection and interdiction of illicit substances
                    and aliens who have unlawfully entered the United States
                    and have committed a crime under Federal, State, or
                    local law, and transfer or referral of such aliens to
                    the Department of Homeland Security as provided by law.
                        (D) Relocation of aliens who are unlawfully present
                    in the United States from small population centers to
                    other domestic locations.
                (3) Appropriation.--In addition to amounts otherwise
            available for the purposes described in paragraph (2), there is
            appropriated for fiscal year 2025, out of any money in the
            Treasury not otherwise appropriated, to the Department of
            Homeland Security for the State Border Security Reinforcement
            Fund established by paragraph (1), $10,000,000,000, to remain
            available until September 30, 2034, for qualified expenses for
            such purposes.
                (4) <<NOTE: Effective date.>>  Eligibility.--The Secretary
            of Homeland Security may provide grants from the fund
            established by paragraph (1) to State agencies and units of
            local governments for expenditures made for completed, ongoing,
            or new activities, in accordance with law, that occurred on or
            after January 20, 2021.
                (5) Application.--Each State desiring to apply for a grant
            under this subsection shall submit an application to the
            Secretary containing such information in support of the
            application as the Secretary may require. The Secretary shall
            require that

    [[Page 139 STAT. 361]]

            each State include in its application the purposes for which the
            State seeks the funds and a description of how the State plans
            to allocate the funds. <<NOTE: Deadline.>>  The Secretary shall
            begin to accept applications not later than 90 days after the
            date of the enactment of this Act.
                (6) Terms and conditions.--Nothing in this subsection shall
            authorize any State or local government to exercise immigration
            or border security authorities reserved exclusively to the
            Federal Government under the Immigration and Nationality Act (8
            U.S.C. 1101 et seq.) or the Homeland Security Act of 2002 (6
            U.S.C. 101 et seq.). The Federal Emergency Management Agency may
            use not more than 1 percent of the funds made available under
            this subsection for the purpose of administering grants provided
            for in this section.
    SEC. 90006. PRESIDENTIAL RESIDENCE PROTECTION.

        (a) In General.--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 designated
    pursuant to section 3 or 4 of the Presidential Protection Assistance Act
    of 1976 (Public Law 94-524; 18 U.S.C. 3056 note) to be secured by the
    United States Secret Service.
        (b) Availability.--Funds appropriated under this section shall be
    available only for costs that a State or local agency--
                (1) <<NOTE: Effective date.>>  incurred or incurs on or
            after July 1, 2024;
                (2) demonstrates to the Administrator of the Federal
            Emergency Management Agency as being--
                        (A) in excess of typical law enforcement operation
                    costs;
                        (B) directly attributable to the provision of
                    protection described in this section; and
                        (C) associated with a nongovernmental property
                    designated pursuant to section 3 or 4 of the
                    Presidential Protection Assistance Act of 1976 (Public
                    Law 94-524; 18 U.S.C. 3056 note) to be secured by the
                    United States Secret Service; and
                (3) <<NOTE: Certification.>>  certifies to the Administrator
            as compensating protection activities requested by the United
            States Secret Service.

        (c) Terms and Conditions.--The Federal Emergency Management Agency
    may use not more than 3 percent of the funds made available under this
    section for the purpose of administering grants provided for in this
    section.
    SEC. 90007. <<NOTE: Reimbursement.>>  DEPARTMENT OF HOMELAND
                                SECURITY APPROPRIATIONS FOR BORDER
                                SUPPORT.

        In addition to amounts otherwise available, there are appropriated
    to the Secretary of Homeland Security for fiscal year 2025, out of any
    money in the Treasury not otherwise appropriated, $10,000,000,000, to
    remain available until September 30, 2029, for reimbursement of costs
    incurred in undertaking activities in support of the Department of
    Homeland Security's mission to safeguard the borders of the United
    States.

    [[Page 139 STAT. 362]]

                   Subtitle B--Governmental Affairs Provisions

    SEC. 90101. <<NOTE: FEHB Protection Act of 2025.>>  FEHB
                                IMPROVEMENTS.

        (a) <<NOTE: 5 USC 8905 note.>>  Short Title.--This section may be
    cited as the ``FEHB Protection Act of 2025''.

        (b) Definitions.--In this section:
                (1) Director.--The term ``Director'' means the Director of
            the Office of Personnel Management.
                (2) 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.
                (3) 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.
                (4) 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.
                (5) 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.

        (c) <<NOTE: Deadline. Regulations. Process.>>  Verification
    Requirements.--Not later than 1 year after the date of enactment of this
    Act, the Director shall issue regulations and implement a process to
    verify--
                (1) 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
                (2) 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.

        (d) Fraud Risk Assessment.--In any fraud risk assessment conducted
    with respect to the Program on or after the date of 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.
        (e) Family Member Eligibility Verification Audit.--
                (1) <<NOTE: Time period. Effective date.>>  In general.--
            During the 3-year period beginning on the date that is 1 year
            after the date of enactment of this Act, the Director shall
            carry out a comprehensive audit regarding members of family who
            are covered under an enrollment in a health benefits plan under
            the Program.
                (2) Contents.--With respect to the audit carried out under
            paragraph (1), 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.

        (f) <<NOTE: Deadline. Process.>>  Disenrollment or Removal.--Not
    later than 180 days after the date of enactment of this Act, the
    Director shall develop a process by which any individual enrolled in, or
    covered under,

    [[Page 139 STAT. 363]]

    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,
    or coverage under, that health benefits plan.

        (g) Earned Benefits and Health Care Administrative Services
    Associated Oversight and Audit Funding.--Section 8909 of title 5, United
    States Code, is amended--
                (1) in subsection (a)(2), by inserting before the period at
            the end the following: ``, except that the amounts required to
            be set aside under subsection (b)(2) shall not be subject to the
            limitations that may be specified annually by Congress''; and
                (2) in subsection (b)--
                        (A) by redesignating paragraph (2) as paragraph (3);
                    and
                        (B) by inserting after paragraph (1) the following:
                ``(2) <<NOTE: Time periods.>>  In fiscal year 2026,
            $66,000,000, to be derived from all contributions, and to remain
            available until the end of fiscal year 2035, for the Director of
            the Office to carry out subsections (c) through (f) of the FEHB
            Protection Act of 2025.''.
    SEC. 90102. PANDEMIC RESPONSE ACCOUNTABILITY COMMITTEE.

        (a) Pandemic Response Accountability Committee Funding
    Availability.--In addition to amounts otherwise available, there is
    appropriated for fiscal year 2026, out of any money in the Treasury not
    otherwise appropriated, $88,000,000, to remain available until expended,
    for the Pandemic Response Accountability Committee to support oversight
    of the Coronavirus response and of funds provided in this Act or any
    other Act pertaining to the Coronavirus pandemic.
        (b) <<NOTE: 5 USC 424 note.>>  CARES Act.--Section 15010 of the
    CARES Act (Public Law 116-136; 134 Stat. 533) is amended--
                (1) in subsection (a)(6)--
                        (A) in subparagraph (E), by striking ``or'' at the
                    end;
                        (B) in subparagraph (F), by striking ``and'' at the
                    end and inserting ``or''; and
                        (C) by adding at the end the following:
                        ``(G) the Act titled `An Act to provide for
                    reconciliation pursuant to title II of H. Con. Res. 14';
                    and''; and
                (2) in subsection (k), by striking ``2025'' and inserting
            ``2034''.
    SEC. 90103. APPROPRIATION FOR THE OFFICE OF MANAGEMENT AND BUDGET.

        In addition to amounts otherwise available, there is appropriated to
    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 until September 30, 2029, for purposes of finding
    budget and accounting efficiencies in the executive branch.

    [[Page 139 STAT. 364]]

    TITLE X-- <<NOTE: Time periods.>> COMMITTEE ON THE JUDICIARY

               Subtitle A--Immigration and Law Enforcement Matters

    PART I-- <<NOTE: 8 USC 18013et seq.>> IMMIGRATION FEES
    SEC. 100001. <<NOTE: 8 USC 1801.>>  APPLICABILITY OF THE
                                  IMMIGRATION LAWS.

        (a) Applicability.--The fees under this subtitle shall apply to
    aliens in the circumstances described in this subtitle.
        (b) Terms.--The terms used under this subtitle shall have the
    meanings given such terms in section 101 of the Immigration and
    Nationality Act (8 U.S.C. 1101).
        (c) References to Immigration and Nationality Act.--Except as
    otherwise expressly provided, any reference in this subtitle to a
    section or other provision shall be considered to be to a section or
    other provision of the Immigration and Nationality Act (8 U.S.C. 1101 et
    seq.).
    SEC. 100002. <<NOTE: 8 USC 1802.>>  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 require the payment of a fee, equal to the amount specified in
    this section, by any alien who files an application for asylum under
    section 208 (8 U.S.C. 1158) at the time such application is filed.
        (b) Initial Amount.--During fiscal year 2025, the amount specified
    in this section shall be the greater of--
                (1) $100; or
                (2) such amount as the Secretary or the Attorney General, as
            applicable, may establish, by rule.

        (c) Annual Adjustments for Inflation.--During fiscal year 2026, and
    during each subsequent fiscal year, the amount specified in this section
    shall be equal to the sum of--
                (1) the amount of the fee required under this section for
            the most recently concluded fiscal year; and
                (2) the product resulting from the multiplication of the
            amount referred to in paragraph (1) 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,
            rounded to the next lowest multiple of $10.

        (d) Disposition of Asylum Fee Proceeds.--During each fiscal year--
                (1) 50 percent of the fees received from aliens filing
            applications with the Attorney General--
                        (A) shall be credited to the Executive Office for
                    Immigration Review; and
                        (B) may be retained and expended without further
                    appropriation;
                (2) 50 percent of fees received from aliens filing
            applications with the Secretary of Homeland Security--

    [[Page 139 STAT. 365]]

                        (A) shall be credited to U.S. Citizenship and
                    Immigration Services;
                        (B) shall be deposited into the Immigration
                    Examinations Fee Account established under section
                    286(m) (8 U.S.C. 1356(m)); and
                        (C) may be retained and expended without further
                    appropriation; and
                (3) any amounts received in fees required under this section
            that were not credited to the Executive Office for Immigration
            Review pursuant to paragraph (1) or to U.S. Citizenship and
            Immigration Services pursuant to paragraph (2) shall be
            deposited into the general fund of the Treasury.

        (e) No Fee Waiver.--Fees required to be paid under this section
    shall not be waived or reduced.
    SEC. 100003. <<NOTE: 8 USC 1803.>>  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 require the
            payment of a fee, equal to the amount specified in this
            subsection, by any alien who files an initial application for
            employment authorization under section 208(d)(2) (8 U.S.C.
            1158(d)(2)) at the time such initial employment authorization
            application is filed.
                (2) Initial amount.--During fiscal year 2025, the amount
            specified in this subsection shall be the greater of--
                        (A) $550; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (3) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this section shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    section for the most recently concluded fiscal year; and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded to
                    the next lowest multiple of $10.
                (4) Disposition of employment authorization document fees.--
            During each fiscal year--
                        (A) 25 percent of the fees collected pursuant to
                    this subsection--
                              (i) shall be credited to U.S. Citizenship and
                          Immigration Services;
                              (ii) shall be deposited into the Immigration
                          Examinations Fee Account established under section
                          286(m) (8 U.S.C. 1356(m)); and
                              (iii) may be retained and expended by U.S.
                          Citizenship and Immigration Services without
                          further appropriation, provided that not less than
                          50 percent is used to detect and prevent
                          immigration benefit fraud; and

    [[Page 139 STAT. 366]]

                        (B) any amounts collected pursuant to this
                    subsection that are not credited to U.S. Citizenship and
                    Immigration Services pursuant to subparagraph (A) shall
                    be deposited into the general fund of the Treasury.
                (5) No fee waiver.--Fees required to be paid under this
            subsection shall not be waived or reduced.

        (b) Parolees.--
                (1) In general.--In addition to any other fee authorized by
            law, the Secretary of Homeland Security shall require the
            payment of a fee, equal to the amount specified in this
            subsection, by any alien paroled into the United States for any
            initial application for employment authorization at the time
            such initial application is filed. Each initial employment
            authorization shall be valid for a period of 1 year or for the
            duration of the alien's parole, whichever is shorter.
                (2) Initial amount.--During fiscal year 2025, the amount
            specified in this subsection shall be the greater of--
                        (A) $550; or
                        (B) such amount as the Secretary of Homeland
                    Security may establish, by rule.
                (3) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this subsection shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded to
                    the next lowest multiple of $10.
                (4) Disposition of parolee employment authorization
            application fees.--All of the fees collected pursuant to this
            subsection shall be deposited into the general fund of the
            Treasury.
                (5) No fee waiver.--Fees required to be paid 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, the Secretary of Homeland Security shall require the
            payment of a fee, equal to the amount specified in this
            subsection, by any alien who files an initial application for
            employment authorization under section 244(a)(1)(B) (8 U.S.C.
            1254a(a)(1)(B)) at the time such initial application is filed.
            Each initial employment authorization shall be valid for a
            period of 1 year, or for the duration of the alien's temporary
            protected status, whichever is shorter.
                (2) Initial amount.--During fiscal year 2025, the amount
            specified in this subsection shall be the greater of--
                        (A) $550; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (3) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this subsection shall be equal to the sum of--

    [[Page 139 STAT. 367]]

                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded to
                    the next lowest multiple of $10.
                (4) Disposition of employment authorization application fees
            collected from aliens granted temporary protected status.--All
            of the fees collected pursuant to this subsection shall be
            deposited into the general fund of the Treasury.
                (5) No fee waiver.--Fees required to be paid under this
            subsection shall not be waived or reduced.
    SEC. 100004. <<NOTE: 8 USC 1804.>>  IMMIGRATION PAROLE FEE.

        (a) In General.--Except as provided under subsection (b), the
    Secretary of Homeland Security shall require the payment of a fee, equal
    to the amount specified in this section and in addition to any other fee
    authorized by law, by any alien who is paroled into the United States.
        (b) Exceptions.--An alien shall not be subject to the fee otherwise
    required under subsection (a) if the alien establishes, to the
    satisfaction of the Secretary of Homeland Security, on an individual,
    case-by-case basis, that the alien is being paroled because--
                (1)(A) the alien has a medical emergency; and
                (B)(i) the alien cannot obtain necessary treatment in the
            foreign state in which the alien is residing; or
                (ii) 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)(A) the alien is the parent or legal guardian of an alien
            described in paragraph (1); and
                (B) the alien described in paragraph (1) is a minor;
                (3)(A) the alien is needed in the United States to donate an
            organ or other tissue for transplant; and
                (B) there is insufficient time for the alien to be admitted
            to the United States through the normal visa process;
                (4)(A) the alien has a close family member in the United
            States whose death is imminent; and
                (B) 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)(A) the alien is seeking to attend the funeral of a close
            family member; and
                (B) 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--
                        (A) who has an urgent medical condition;
                        (B) who is in the legal custody of the petitioner
                    for a final adoption-related visa; and
                        (C) whose medical treatment is required before the
                    expected award of a final adoption-related visa;

    [[Page 139 STAT. 368]]

                (7) the alien--
                        (A) is a lawful applicant for adjustment of status
                    under section 245 (8 U.S.C. 1255); and
                        (B) is returning to the United States after
                    temporary travel abroad;
                (8) the alien--
                        (A) has been returned to a contiguous country
                    pursuant to section 235(b)(2)(C) (8 U.S.C.
                    1225(b)(2)(C)); and
                        (B) is being paroled into the United States to allow
                    the alien to attend the alien's immigration hearing;
                (9) the alien has been granted the status of Cuban and
            Haitian entrant (as defined in section 501(e) of the Refugee
            Education Assistance Act of 1980 (Public Law 96-422; 8 U.S.C.
            1522 note); or
                (10) <<NOTE: Determination.>>  the Secretary of Homeland
            Security determines that a significant public benefit has
            resulted or will result from the parole of an alien--
                        (A) who has assisted or will assist the United
                    States Government in a law enforcement matter;
                        (B) whose presence is required by the United States
                    Government in furtherance of such law enforcement
                    matter; and
                        (C)(i) who is inadmissible or does not satisfy the
                    eligibility requirements for admission as a
                    nonimmigrant; or
                        (ii) for which there is insufficient time for the
                    alien to be admitted to the United States through the
                    normal visa process.

        (c) Initial Amount.--For fiscal year 2025, the amount specified in
    this section shall be the greater of--
                (1) $1,000; or
                (2) <<NOTE: Regulations.>>  such amount as the Secretary of
            Homeland Security may establish, by rule.

        (d) Annual Adjustments for Inflation.--During fiscal year 2026, and
    during each subsequent fiscal year, the amount specified in this section
    shall be equal to the sum of--
                (1) the amount of the fee required under this subsection for
            the most recently concluded fiscal year; and
                (2) the product resulting from the multiplication of the
            amount referred to in paragraph (1) 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,
            rounded to the next lowest multiple of $10.

        (e) Disposition of Fees Collected From Aliens Granted Parole.--All
    of the fees collected pursuant to this section shall be deposited into
    the general fund of the Treasury.
        (f) No Fee Waiver.--Except as provided in subsection (b), fees
    required to be paid under this section shall not be waived or reduced.
    SEC. 100005. <<NOTE: 8 USC 1805.>>  SPECIAL IMMIGRANT JUVENILE
                                  FEE.

        (a) In General.--In addition to any other fee authorized by law, the
    Secretary of Homeland Security shall require the payment of a fee, equal
    to the amount specified in this section, by any alien, parent, or legal
    guardian of an alien applying for special

    [[Page 139 STAT. 369]]

    immigrant juvenile status under section 101(a)(27)(J) (8 U.S.C.
    1101(a)(27)(J)).
        (b) Initial Amount.--For fiscal year 2025, the amount specified in
    this section shall be the greater of--
                (1) $250; or
                (2) <<NOTE: Regulations.>>  such amount as the Secretary of
            Homeland Security may establish, by rule.

        (c) Annual Adjustments for Inflation.--During fiscal year 2026, and
    during each subsequent fiscal year, the amount specified in this section
    shall be equal to the sum of--
                (1) the amount of the fee required under this subsection for
            the most recently concluded fiscal year; and
                (2) the product resulting from the multiplication of the
            amount referred to in paragraph (1) 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,
            rounded to the next lowest multiple of $10.

        (d) Disposition of Special Immigrant Juvenile Fees.--All of the fees
    collected pursuant to this section shall be deposited into the general
    fund of the Treasury.
    SEC. 100006. TEMPORARY PROTECTED STATUS FEE.

        Section 244(c)(1)(B) of the Immigration and Nationality Act (8
    U.S.C. 1254a(c)(1)(B)) is amended--
                (1) by striking ``The Attorney General'' and inserting the
            following:
                              ``(i) In general.--The Attorney General'';
                (2) in clause (i), as redesignated, by striking ``$50'' and
            inserting ``$500, subject to the adjustments required under
            clause (ii)''; and
                (3) by adding at the end the following:
                              ``(ii) Annual adjustments for inflation.--
                          During fiscal year 2026, and during each
                          subsequent fiscal year, the maximum amount of the
                          fee authorized under clause (i) shall be equal to
                          the sum of--
                                        ``(I) the maximum amount of the fee
                                    authorized under this subparagraph for
                                    the most recently concluded fiscal year;
                                    and
                                        ``(II) the product resulting from
                                    the multiplication of the amount
                                    referred to in subclause (I) 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, rounded to the
                                    next lowest multiple of $10.
                              ``(iii) Disposition of temporary protected
                          status fees.--All of the fees collected pursuant
                          to this subparagraph shall be deposited into the
                          general fund of the Treasury.
                              ``(iv) No fee waiver.--Fees required to be
                          paid under this subparagraph shall not be waived
                          or reduced.''.

    [[Page 139 STAT. 370]]

    SEC. 100007. <<NOTE: 8 USC 1806.>>  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 require the
            payment of a fee, equal to the amount specified in this
            subsection, by any alien issued a nonimmigrant visa at the time
            of such issuance.
                (2) Initial amount.--For fiscal year 2025, the amount
            specified in this section shall be the greater of--
                        (A) $250; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (3) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this section shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded down
                    to the nearest dollar.
                (4) Disposition of visa integrity fees.--All of the fees
            collected pursuant to this section that are not reimbursed
            pursuant to subsection (b) shall be deposited into the general
            fund of the Treasury.
                (5) No fee waiver.--Fees required to be paid under this
            subsection shall not be waived or reduced.

        (b) Fee Reimbursement.--The Secretary of Homeland Security may
    provide a reimbursement to an alien of the fee required under subsection
    (a) for the issuance of a nonimmigrant visa after the expiration of such
    nonimmigrant visa's period of validity if such alien demonstrates that
    he or she--
                (1) 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
                (2)(A) <<NOTE: Deadline.>>  has not sought to extend his or
            her period of admission during such period of validity and
            departed the United States not later than 5 days after the last
            day of such period; or
                (B) during such period of validity, was granted an extension
            of such nonimmigrant status or an adjustment to the status of a
            lawful permanent resident.
    SEC. 100008. <<NOTE: 8 USC 1807.>>  FORM I-94 FEE.

        (a) Fee Authorized.--In addition to any other fee authorized by law,
    the Secretary of Homeland Security shall require the payment of a fee,
    equal to the amount specified in subsection (b), by any alien who
    submits an application for a Form I-94 Arrival/Departure Record.
        (b) Amount Specified.--
                (1) Initial amount.--For fiscal year 2025, the amount
            specified in this section shall be the greater of--

    [[Page 139 STAT. 371]]

                        (A) $24; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (2) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this section shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded down
                    to the nearest dollar.

        (c) Disposition of Form I-94 Fees.--During each fiscal year--
                (1) 20 percent of the fees collected pursuant to this
            section--
                        (A) shall be deposited into the Land Border
                    Inspection Fee Account in accordance with section
                    286(q)(2) (8 U.S.C. 1356(q)(2)); and
                        (B) shall be made available to U.S. Customs and
                    Border Protection to retain and spend without further
                    appropriation for the purpose of processing Form I-94;
                    and
                (2) any amounts not deposited into the Land Border
            Inspection Fee Account pursuant to paragraph (1)(A) shall be
            deposited in the general fund of the Treasury.

        (d) No Fee Waiver.--Fees required to be paid under this section
    shall not be waived or reduced.
    SEC. 100009. <<NOTE: 8 USC 1808.>>  ANNUAL 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 require the payment of a fee, equal to the amount
    specified in subsection (b), by such alien.
        (b) Amount Specified.--
                (1) Initial amount.--For fiscal year 2025, the amount
            specified in this section shall be the greater of--
                        (A) $100; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (2) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this section shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded down
                    to the nearest dollar.

    [[Page 139 STAT. 372]]

        (c) Disposition of Annual Asylum Fees.--All of the fees collected
    pursuant to this section shall be deposited into the general fund of the
    Treasury.
        (d) No Fee Waiver.--Fees required to be paid under this section
    shall not be waived or reduced.
    SEC. 100010. <<NOTE: 8 USC 1809.>>  FEE RELATING TO RENEWAL AND
                                  EXTENSION OF EMPLOYMENT
                                  AUTHORIZATION FOR PAROLEES.

        (a) In General.--In addition to any other fee authorized by law, the
    Secretary of Homeland Security shall require the payment of a fee, equal
    to the amount specified in subsection (b), for any parolee who seeks a
    renewal or extension of employment authorization based on a grant of
    parole. The employment authorization for each alien paroled into the
    United States, or any renewal or extension of such parole, shall be
    valid for a period of 1 year or for the duration of the alien's parole,
    whichever is shorter.
        (b) Amount Specified.--
                (1) Initial amount.--For fiscal year 2025, the amount
            specified in this subsection shall be the greater of--
                        (A) $275; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (2) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this section shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded to
                    the next lowest multiple of $10.

        (c) Disposition of Fees Relating to Renewal and Extension of
    Employment Authorization for Parolees.--During each fiscal year--
                (1) 25 percent of the fees collected pursuant to this
            section--
                        (A) shall be credited to U.S. Citizenship and
                    Immigration Services;
                        (B) shall be deposited into the Immigration
                    Examinations Fee Account established under section
                    286(m) (8 U.S.C. 1356(m)); and
                        (C) may be retained and expended by U.S. Citizenship
                    and Immigration Services without further appropriation;
                    and
                (2) any amounts collected pursuant to this section that are
            not credited to U.S. Citizenship and Immigration Services
            pursuant to subparagraph (A) shall be deposited into the general
            fund of the Treasury.

        (d) No Fee Waiver.--Fees required to be paid under this section
    shall not be waived or reduced.
    SEC. 100011. <<NOTE: 8 USC 1810.>>  FEE RELATING TO RENEWAL OR
                                  EXTENSION OF EMPLOYMENT
                                  AUTHORIZATION FOR ASYLUM APPLICANTS.

        (a) In General.--In addition to any other fee authorized by law, the
    Secretary of Homeland Security shall require the payment

    [[Page 139 STAT. 373]]

    of a fee of not less than $275 by any alien who has applied for asylum
    for each renewal or extension of employment authorization based on such
    application.
        (b) Termination.--Each initial employment authorization, or renewal
    or extension of such authorization, shall terminate--
                (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; or
                (3) immediately following the denial by the Board of
            Immigration Appeals of an appeal of a denial of an asylum
            application.

        (c) Disposition of Fees Relating to Renewal and Extension of
    Employment Authorization for Asylum Applicants.--During each fiscal
    year--
                (1) 25 percent of the fees collected pursuant to this
            section--
                        (A) shall be credited to U.S. Citizenship and
                    Immigration Services;
                        (B) shall be deposited into the Immigration
                    Examinations Fee Account established under section
                    286(m) (8 U.S.C. 1356(m)); and
                        (C) may be retained and expended by U.S. Citizenship
                    and Immigration Services without further appropriation;
                    and
                (2) any amounts collected pursuant to this section that are
            not credited to U.S. Citizenship and Immigration Services
            pursuant to subparagraph (A) shall be deposited into the general
            fund of the Treasury.

        (d) No Fee Waiver.--Fees required to be paid under this section
    shall not be waived or reduced.
    SEC. 100012. <<NOTE: 8 USC 1811.>>  FEE RELATING TO RENEWAL AND
                                  EXTENSION OF EMPLOYMENT
                                  AUTHORIZATION FOR ALIENS GRANTED
                                  TEMPORARY PROTECTED STATUS.

        (a) In General.--In addition to any other fee authorized by law, the
    Secretary of Homeland Security shall require the payment of a fee, equal
    to the amount specified in subsection (b), by any alien at the time such
    alien seeks a renewal or extension of employment authorization based on
    a grant of temporary protected status. Any employment authorization for
    an alien granted temporary protected status, or any renewal or extension
    of such employment authorization, shall be valid for a period of 1 year
    or for the duration of the designation of temporary protected status,
    whichever is shorter.
        (b) Amount Specified.--
                (1) Initial amount.--For fiscal year 2025, the amount
            specified in this subsection shall be the greater of--
                        (A) $275; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (2) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this section shall be equal to the sum of--

    [[Page 139 STAT. 374]]

                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded to
                    the next lowest multiple of $10.

        (c) Disposition of Fees Relating to Renewal and Extension of
    Employment Authorization for Temporary Protected Status Applicants.--
    During each fiscal year--
                (1) 25 percent of the fees collected pursuant to this
            section--
                        (A) shall be credited to U.S. Citizenship and
                    Immigration Services;
                        (B) shall be deposited into the Immigration
                    Examinations Fee Account established under section
                    286(m) (8 U.S.C. 1356(m)); and
                        (C) may be retained and expended by U.S. Citizenship
                    and Immigration Services without further appropriation;
                    and
                (2) any amounts collected pursuant to this section that are
            not credited to U.S. Citizenship and Immigration Services
            pursuant to subparagraph (A) shall be deposited into the general
            fund of the Treasury.

        (d) No Fee Waiver.--Fees required to be paid under this section
    shall not be waived or reduced.
    SEC. 100013. <<NOTE: Regulations. 8 USC 1812.>>  FEES RELATING TO
                                  APPLICATIONS FOR ADJUSTMENT OF
                                  STATUS.

    8 USC
    1812.

        (a) Fee for Filing an Application to Adjust Status to That of a
    Lawful Permanent Resident.--
                (1) <<NOTE: Courts.>>  In general.--In addition to any other
            fees authorized by law, the Attorney General shall require the
            payment of a fee, equal to the amount specified in paragraph
            (2), by any alien who files an application with an immigration
            court to adjust the alien's status to that of a lawful permanent
            resident, or whose application to adjust his or her status to
            that of a lawful permanent resident is adjudicated in
            immigration court. Such fee shall be paid at the time such
            application is filed or before such application is adjudicated
            by the immigration court.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $1,500; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and

    [[Page 139 STAT. 375]]

                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Disposition of adjustment of status application fees.--
            During each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) shall be deposited into the
                    general fund of the Treasury.

        (b) Fee for Filing Application for Waiver of Grounds of
    Inadmissibility.--
                (1) <<NOTE: Courts.>>  In general.--In addition to any other
            fees authorized by law, the Attorney General shall require the
            payment of a fee, equal to the amount specified in paragraph
            (2), by any alien at the time such alien files an application
            with an immigration court for a waiver of a ground of
            inadmissibility, or before such application is adjudicated by
            the immigration court.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $1,050; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Disposition of waiver of ground of admissibility
            application fees.--During each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--

    [[Page 139 STAT. 376]]

                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) shall be deposited into the
                    general fund of the Treasury.

        (c) Fee for Filing an Application for Temporary Protected Status.--
                (1) <<NOTE: Courts.>>  In general.--In addition to any other
            fees authorized by law, the Attorney General shall require the
            payment of a fee, equal to the amount specified in paragraph
            (2), by any alien at the time such alien files an application
            with an immigration court for temporary protected status, or
            before such application is adjudicated by the immigration court.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $500; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Disposition of temporary protected status application
            fees.--During each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) shall be deposited into the
                    general fund of the Treasury.

        (d) Fee for Filing an Appeal of a Decision of an Immigration
    Judge.--
                (1) In general.--Except as provided in paragraph (3), the
            Attorney General shall require, in addition to any other fees
            authorized by law, the payment of a fee, equal to the amount

    [[Page 139 STAT. 377]]

            specified in paragraph (2), by any alien at the time such alien
            files an appeal from a decision of an immigration judge.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $900; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Exception.--The fee required under paragraph (1) shall
            not apply to the appeal of a bond decision.
                (4) Disposition of fees for appealing immigration judge
            decisions.--During each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) 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 require the payment of a fee,
            equal to the amount specified in paragraph (2), by any alien at
            the time such alien files an appeal of a decision of an officer
            of the Department of Homeland Security.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $900; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--

    [[Page 139 STAT. 378]]

                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Disposition of fees for appealing department of homeland
            security officer decisions.--During each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) 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 require the payment of a fee,
            equal to the amount specified in paragraph (2), by any
            practitioner at the time such practitioner files an appeal from
            a decision of an adjudicating official in a practitioner
            disciplinary case.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $1,325; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Disposition of fees for appealing department of homeland
            security officer decisions.--During each fiscal year--

    [[Page 139 STAT. 379]]

                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) shall be deposited into the
                    general fund of the Treasury.

        (g) Fee for Filing a Motion to Reopen or a Motion to Reconsider.--
                (1) <<NOTE: Courts.>>  In general.--Except as provided in
            paragraph (3), in addition to any other fees authorized by law,
            the Attorney General shall require the payment of a fee, equal
            to the amount specified in paragraph (2), by any alien at the
            time such alien files a motion to reopen or motion to reconsider
            a decision of an immigration judge or the Board of Immigration
            Appeals.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $900; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Exceptions.--The fee required under paragraph (1) shall
            not apply to--
                        (A) a motion to reopen a removal order entered in
                    absentia if such motion is filed in accordance with
                    section 240(b)(5)(C)(ii) (8 U.S.C. 1229a(b)(5)(C)(ii));
                    or
                        (B) <<NOTE: Effective date.>>  a motion to reopen a
                    deportation order entered in absentia if such motion is
                    filed in accordance with section 242B(c)(3)(B) prior to
                    April 1, 1997.
                (4) Disposition of fees for filing certain motions.--During
            each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and

    [[Page 139 STAT. 380]]

                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) shall be deposited into the
                    general fund of the Treasury.

        (h) Fee for Filing Application for Suspension of Deportation.--
                (1) In general.--In addition to any other fees authorized by
            law, the Attorney General shall require the payment of a fee,
            equal to the amount specified in paragraph (2), by any alien at
            the time such alien files an application with an immigration
            court for suspension of deportation.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $600; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Disposition of fees for filing application for
            suspension of deportation.--During each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) shall be deposited into the
                    general fund of the Treasury.

        (i) Fee for Filing Application for Cancellation of Removal for
    Certain Permanent Residents.--
                (1) <<NOTE: Courts.>>  In general.--In addition to any other
            fees authorized by law, the Attorney General shall require the
            payment of a fee, equal to the amount specified in paragraph
            (2), by any alien at the time such alien files an application
            with an immigration court an application for cancellation of
            removal for an alien who is a lawful permanent resident.
                (2) Amount specified.--

    [[Page 139 STAT. 381]]

                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $600; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) 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, rounded to the
                          next lowest multiple of $10.
                (3) Disposition of fees for filing application for
            cancellation of removal.--During each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) 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 require the payment of a fee,
            equal to the amount specified in paragraph (2), by any alien who
            is not a lawful permanent resident at the time such alien files
            an application with an immigration court for cancellation of
            removal and adjustment of status for any alien.
                (2) Amount specified.--
                        (A) Initial amount.--For fiscal year 2025, the
                    amount specified in this paragraph shall be the greater
                    of--
                              (i) $1,500; or
                              (ii) such amount as the Attorney General may
                          establish, by rule.
                        (B) Annual adjustments for inflation.--During fiscal
                    year 2026, and during each subsequent fiscal year, the
                    amount specified in this paragraph shall be equal to the
                    sum of--
                              (i) the amount of the fee required under this
                          subsection for the most recently concluded fiscal
                          year; and
                              (ii) the product resulting from the
                          multiplication of the amount referred to in clause
                          (i) by the percentage

    [[Page 139 STAT. 382]]

                          (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, rounded to the next lowest multiple
                          of $10.
                (3) Disposition of fees for filing application for
            cancellation of removal.--During each fiscal year--
                        (A) not more than 25 percent of the fees collected
                    pursuant to this subsection--
                              (i) shall be derived by transfer from the
                          Immigration Examinations Fee Account under section
                          286(n) (8 U.S.C. 1356(n)); and
                              (ii) shall be credited to the Executive Office
                          for Immigration Review to retain and spend without
                          further appropriation; and
                        (B) any amounts not derived by transfer and credited
                    pursuant to subparagraph (A) shall be deposited into the
                    general fund of the Treasury.

        (k) Limitation on Use of Funds.--No fees collected pursuant to this
    section may be expended by the Executive Office for Immigration Review
    for the Legal Orientation Program, or for any successor program.
    SEC. 100014. ELECTRONIC SYSTEM FOR TRAVEL AUTHORIZATION FEE.

        Section 217(h)(3)(B) (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 ``of not less than $10''
                          after ``an amount''; 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 per travel
                                    authorization.'';
                (2) in clause (iii), by striking ``October 31, 2028'' and
            inserting ``October 31, 2034''; and
                (3) by adding at the end the following:
                              ``(iv) Subsequent adjustment.--During fiscal
                          year 2026 and each subsequent fiscal year, the
                          amount specified in clause (i)(II) for a fiscal
                          year shall be equal to the sum of--
                                        ``(I) the amount of the fee required
                                    under this subparagraph during the most
                                    recently concluded fiscal year; and
                                        ``(II) the product of 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. 100015. <<NOTE: 8 USC 1813.>>  ELECTRONIC VISA UPDATE SYSTEM
                                  FEE.

        (a) In General.--In addition to any other fee authorized by law, the
    Secretary of Homeland Security shall require the payment

    [[Page 139 STAT. 383]]

    of a fee, in the amount specified in subsection (b), by any alien
    subject to the Electronic Visa Update System at the time of such alien's
    enrollment in such system.
        (b) Amount Specified.--
                (1) In general.--For fiscal year 2025, the amount specified
            in this subsection shall be the greater of--
                        (A) $30; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (2) Annual adjustments for inflation.--During fiscal year
            2026 and each subsequent fiscal year, the amount specified in
            this subsection shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    subsection during the most recently concluded fiscal
                    year; and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded to
                    the next lowest multiple of $0.25.

        (c) Disposition of Electronic Visa Update System Fees.--
                (1) In general.--Section 286 (8 U.S.C. 1356) is amended by
            adding at the end the following:

        ``(w) CBP Electronic Visa Update System Account.--
                ``(1) Establishment.--There is established in the general
            fund of the Treasury a separate account, which shall be known as
            the `CBP Electronic Visa Update System Account' (referred to in
            this subsection as the `Account').
                ``(2) Deposits.--There shall be deposited into the Account
            an amount equal to the difference between--
                        ``(A) all of the fees received pursuant to section
                    100015 of the Act entitled `An Act to provide for
                    reconciliation pursuant to title II of H. Con. Res. 14'
                    (119th Congress); and
                        ``(B) an amount equal to $5 multiplied by the number
                    of payments collected pursuant to such section.
                ``(3) Appropriation.--Amounts deposited in the Account--
                        ``(A) are hereby appropriated to make payments and
                    offset program costs in accordance with section 100015
                    of the Act entitled `An Act to provide for
                    reconciliation pursuant to title II of H. Con. Res. 14'
                    (119th Congress), without further appropriation; and
                        ``(B) shall remain available until expended for any
                    U.S. Customs and Border Protection costs associated with
                    administering the CBP Electronic Visa Update System.''.
                (2) Remaining fees.--Of the fees collected pursuant to this
            section, an amount equal to $5 multiplied by the number of
            payments collected pursuant to this section shall be deposited
            to the general fund of the Treasury.

        (d) No Fee Waiver.--Fees required to be paid under this section
    shall not be waived or reduced.

    [[Page 139 STAT. 384]]

    SEC. 100016. <<NOTE: 8 USC 1814.>>  FEE FOR ALIENS ORDERED REMOVED
                                  IN ABSENTIA.

        (a) <<NOTE: Reimbursement.>>  In General.--As partial reimbursement
    for the cost of arresting an alien described in this section, the
    Secretary of Homeland Security, except as provided in subsection (c),
    shall require the payment of a fee, equal to the amount specified in
    subsection (b) on any alien who--
                (1) is ordered removed in absentia pursuant to section
            240(b)(5) (8 U.S.C. 1229a(b)(5)); and
                (2) is subsequently arrested by U.S. Immigration and Customs
            Enforcement.

        (b) Amount Specified.--
                (1) Initial amount.--For fiscal year 2025, the amount
            specified in this section shall be the greater of--
                        (A) $5,000; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (2) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this section shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded to
                    the next lowest multiple of $10.

        (c) Exception.--The fee described in this section shall not apply to
    any alien who was ordered removed in absentia if such order was
    rescinded pursuant to section 240(b)(5)(C) (8 U.S.C. 1229a(b)(5)(C)).
        (d) Disposition of Removal in Absentia Fees.--During each fiscal
    year--
                (1) 50 percent of the fees collected pursuant to this
            section--
                        (A) shall be credited to U.S. Immigration and
                    Customs Enforcement;
                        (B) shall be deposited into the Detention and
                    Removal Office Fee Account; and
                        (C) may be retained and expended by U.S. Immigration
                    and Customs Enforcement without further appropriation;
                    and
                (2) any amounts collected pursuant to this section that are
            not credited to U.S. Immigration and Customs Enforcement
            pursuant to paragraph (1) shall be deposited into the general
            fund of the Treasury.

        (e) No Fee Waiver.--Fees required to be paid under this section
    shall not be waived or reduced.
    SEC. 100017. <<NOTE: 8 USC 1815.>>  INADMISSIBLE ALIEN
                                  APPREHENSION FEE.

        (a) In General.--In addition to any other fee authorized by law, the
    Secretary of Homeland Security shall require the payment of a fee, equal
    to the amount specified in subsection (b), by any inadmissible alien at
    the time such alien is apprehended between ports of entry.
        (b) Amount Specified.--

    [[Page 139 STAT. 385]]

                (1) Initial amount.--For fiscal year 2025, the amount
            specified in this section shall be the greater of--
                        (A) $5,000; or
                        (B) <<NOTE: Regulations.>>  such amount as the
                    Secretary of Homeland Security may establish, by rule.
                (2) Annual adjustments for inflation.--During fiscal year
            2026, and during each subsequent fiscal year, the amount
            specified in this section shall be equal to the sum of--
                        (A) the amount of the fee required under this
                    subsection for the most recently concluded fiscal year;
                    and
                        (B) the product resulting from the multiplication of
                    the amount referred to in subparagraph (A) 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, rounded to
                    the next lowest multiple of $10.

        (c) Disposition of Inadmissible Alien Apprehension Fees.--During
    each fiscal year--
                (1) 50 percent of the fees collected pursuant to this
            section--
                        (A) shall be credited to U.S. Immigration and
                    Customs Enforcement;
                        (B) shall be deposited into the Detention and
                    Removal Office Fee Account; and
                        (C) may be retained and expended by U.S. Immigration
                    and Customs Enforcement without further appropriation;
                    and
                (2) any amounts collected pursuant to this section that are
            not credited to U.S. Immigration and Customs Enforcement
            pursuant to paragraph (1) shall be deposited into the general
            fund of the Treasury.

        (d) Disposition of Inadmissible Alien Apprehension Fees.--All of the
    fees collected pursuant to this section shall be deposited into the
    general fund of the Treasury.
    SEC. 100018. AMENDMENT TO AUTHORITY TO APPLY FOR ASYLUM.

        Section 208(d)(3) (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 inserting the following: ``Nothing in this paragraph
            may be construed to limit the authority of the Attorney General
            to set additional adjudication and naturalization fees in
            accordance with section 286(m).''.

        PART II <<NOTE: Appropriations authorizations. Time periods.>> --
    IMMIGRATION AND LAW ENFORCEMENT FUNDING
    SEC. 100051. APPROPRIATION FOR THE DEPARTMENT OF HOMELAND
                                  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, $2,055,000,000, to
    remain available through September 30, 2029, for the following purposes:

    [[Page 139 STAT. 386]]

                (1) Immigration and enforcement activities.--Hiring and
            training of additional U.S. Customs and Border Protection
            agents, and the necessary support staff, to carry out
            immigration enforcement activities.
                (2) Departures and removals.--Funding for transportation
            costs and related costs associated with the departure or removal
            of aliens.
                (3) Personnel assignments.--Funding for the assignment of
            Department of Homeland Security employees and State officers to
            carry out immigration enforcement activities pursuant to
            sections 103(a) and 287(g) of the Immigration and Nationality
            Act (8 U.S.C. 1103(a) and 1357(g)).
                (4) Background checks.--Hiring additional staff and
            investing the necessary resources to enhance screening and
            vetting of all aliens seeking entry into United States,
            consistent with section 212 of such Act (8 U.S.C. 1182), or
            intending to remain in the United States, consistent with
            section 237 of such Act (8 U.S.C. 1227).
                (5) Protecting alien children from exploitation.--In
            instances of aliens and alien children entering the United
            States without a valid visa, funding is provided for the
            purposes of--
                        (A) collecting fingerprints, in accordance with
                    section 262 of the Immigration and Nationality Act (8
                    U.S.C. 1302) and subsections (a)(3) and (b) of section
                    235 of such Act (8 U.S.C. 1225); and
                        (B) collecting DNA, in accordance with sections
                    235(d) and 287(b) of the Immigration and Nationality Act
                    (8 U.S.C. 1225(d) and 1357(b)).
                (6) Transporting and return of aliens from contiguous
            territory.--Transporting and facilitating the return, pursuant
            to section 235(b)(2)(C) of the Immigration and Nationality Act
            (8 U.S.C. 1225(b)(2)(C)), of aliens arriving from contiguous
            territory.
                (7) State and local participation.--Funding for State and
            local participation in homeland security efforts for purposes
            of--
                        (A) ending the presence of criminal gangs and
                    criminal organizations throughout the United States;
                        (B) addressing crime and public safety threats;
                        (C) combating human smuggling and trafficking
                    networks throughout the United States;
                        (D) supporting immigration enforcement activities;
                    and
                        (E) providing reimbursement for State and local
                    participation in such efforts.
                (8) Removal of specified unaccompanied alien children.--
                        (A) In general.--Funding removal operations for
                    specified unaccompanied alien children.
                        (B) Use of funds.--Amounts made available under this
                    paragraph shall only be used for permitting a specified
                    unaccompanied alien child to withdraw the application
                    for admission of the child pursuant to section 235(a)(4)
                    of the Immigration and Nationality Act (8 U.S.C.
                    1225(a)(4)).
                        (C) Definitions.--In this paragraph:
                              (i) Specified unaccompanied alien child.--The
                          term ``specified unaccompanied alien child'' means
                          an

    [[Page 139 STAT. 387]]

                          unaccompanied alien child (as defined in section
                          462(g) of the Homeland Security Act of 2002 (6
                          U.S.C. 279(g))) who the Secretary of Homeland
                          Security determines on a case-by-case basis--
                                        (I) 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 (8 U.S.C. 1101 et seq.);
                                        (II) 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 of the child to the child's
                                    country of nationality or country of
                                    last habitual residence; and
                                        (III) does not have a fear of
                                    returning to the child's country of
                                    nationality or country of last habitual
                                    residence owing to a credible fear of
                                    persecution.
                              (ii) Severe forms of trafficking in persons.--
                          The term ``severe forms of trafficking in
                          persons'' has the meaning given such term in
                          section 103 of the Trafficking Victims Protection
                          Act of 2000 (22 U.S.C. 7102).
                (9) Expedited removal of criminal aliens.--Funding for the
            expedited removal of criminal aliens, in accordance with the
            provisions of section 235(b)(1) of the Immigration and
            Nationality Act (8 U.S.C. 1225(b)(1)).
                (10) Removal of certain criminal aliens without further
            hearings.--Funding for the removal of certain criminal aliens
            without further hearings, in accordance with the provisions of
            section 235(c) of the Immigration and Nationality Act (8 U.S.C.
            1225(c)).
                (11) Criminal and gang checks for unaccompanied alien
            children.--Funding for criminal and gang checks of unaccompanied
            alien children (as defined in section 462(g) of the Homeland
            Security Act of 2002 (6 U.S.C. 279(g))) who are 12 years of age
            and older, including the examination of such unaccompanied alien
            children for gang-related tattoos and other gang-related
            markings.
                (12) Information technology.--Information technology
            investments to support immigration purposes, including
            improvements to fee and revenue collections.
    SEC. 100052. APPROPRIATION FOR U.S. IMMIGRATION AND CUSTOMS
                                  ENFORCEMENT.

        In addition to amounts otherwise available, there is appropriated to
    the Secretary of Homeland Security for U.S. Immigration and Customs
    Enforcement for fiscal year 2025, out of any money in the Treasury not
    otherwise appropriated, $29,850,000,000, to remain available through
    September 30, 2029, for the following purposes:
                (1) Hiring and training.--Hiring and training additional
            U.S. Immigration and Customs Enforcement personnel, including
            officers, agents, investigators, and support staff, to carry out
            immigration enforcement activities and prioritizing and
            streamlining the hiring of retired U.S. Immigration and Customs
            Enforcement personnel.

    [[Page 139 STAT. 388]]

                (2) Performance, retention, and signing bonuses.--
                        (A) In general.--Providing performance, retention,
                    and signing bonuses for qualified U.S. Immigration and
                    Customs Enforcement personnel in accordance with this
                    subsection.
                        (B) Performance bonuses.--The Director of U.S.
                    Immigration and Customs Enforcement, at the Director's
                    discretion, may provide performance bonuses to any U.S.
                    Immigration and Customs Enforcement agent, officer, or
                    attorney who demonstrates exemplary service.
                        (C) Retention bonuses.--The Director of 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 2
                    years of additional service with U.S. Immigration and
                    Customs Enforcement to carry out immigration enforcement
                    activities.
                        (D) Signing bonuses.--The Director of U.S.
                    Immigration and Customs Enforcement may provide a
                    signing bonus to any U.S. Immigration and Customs
                    Enforcement agent, officer, or attorney who--
                              (i) <<NOTE: Effective date.>>  is hired on or
                          after the date of the enactment of this Act; and
                              (ii) who commits to 5 years of service with
                          U.S. Immigration and Customs Enforcement to carry
                          out immigration enforcement activities.
                        (E) <<NOTE: Contracts.>>  Service agreement.--In
                    providing a retention or signing bonus under this
                    paragraph, the Director of U.S. Immigration and Customs
                    Enforcement shall provide each qualifying individual
                    with a written service agreement that includes--
                              (i) the commencement and termination dates of
                          the required service period (or provisions for the
                          determination of such dates);
                              (ii) the amount of the bonus; and
                              (iii) any other term or condition under which
                          the bonus is payable, subject to the requirements
                          of this paragraph, including--
                                        (I) the conditions under which the
                                    agreement may be terminated before the
                                    agreed-upon service period has been
                                    completed; and
                                        (II) the effect of a termination
                                    described in subclause (I).
                (3) Recruitment, hiring, and onboarding.--Facilitating the
            recruitment, hiring, and onboarding of additional U.S.
            Immigration and Customs Enforcement personnel to carry out
            immigration enforcement activities, including by--
                        (A) investing in information technology,
                    recruitment, and marketing; and
                        (B) hiring staff necessary to carry out information
                    technology, recruitment, and marketing activities.
                (4) Transportation.--Funding for transportation costs and
            related costs associated with alien departure or removal
            operations.
                (5) Information technology.--Funding for information
            technology investments to support enforcement and removal
            operations, including improvements to fee collections.

    [[Page 139 STAT. 389]]

                (6) Facility upgrades.--Funding for facility upgrades to
            support enforcement and removal operations.
                (7) Fleet modernization.--Funding for fleet modernization to
            support enforcement and removal operations.
                (8) Family unity.--Promoting family unity by--
                        (A) maintaining the care and custody, during the
                    period in which a charge described in clause (i) is
                    pending, in accordance with applicable laws, of an alien
                    who--
                              (i) is charged only with a misdemeanor offense
                          under section 275(a) of the Immigration and
                          Nationality Act (8 U.S.C. 1325(a)); and
                              (ii) entered the United States with the
                          alien's child who has not attained 18 years of
                          age; and
                        (B) detaining such an alien with the alien's child.
                (9) 287(g) agreements.--Expanding, facilitating, and
            implementing agreements under section 287(g) of the Immigration
            and Nationality Act (8 U.S.C. 1357(g)).
                (10) Victims of immigration crime engagement office.--Hiring
            and training additional staff to carry out the mission of the
            Victims of Immigration Crime Engagement Office and for providing
            nonfinancial assistance to the victims of crimes perpetrated by
            aliens who are present in the United States without
            authorization.
                (11) Office of the principal legal advisor.--Hiring
            additional attorneys and the necessary support staff within the
            Office of the Principal Legal Advisor to represent the
            Department of Homeland Security in immigration enforcement and
            removal proceedings.
    SEC. 100053. APPROPRIATION FOR FEDERAL LAW ENFORCEMENT TRAINING
                                  CENTERS.

        (a) Appropriation.--In addition to amounts otherwise available,
    there is appropriated to the Secretary of Homeland Security for the
    Federal Law Enforcement Training Centers for fiscal year 2025, out of
    any money in the Treasury not otherwise appropriated, $750,000,000, to
    remain available until September 30, 2029, for the purposes described in
    subsections (b) and (c).
        (b) Training.--Not less than $285,000,000 of the amounts available
    under subsection (a) shall be for supporting the training of newly hired
    Federal law enforcement personnel employed by the Department of Homeland
    Security and State and local law enforcement agencies operating in
    support of the Department of Homeland Security.
        (c) Facilities.--Not more than $465,000,000 of the amounts available
    under subsection (a) shall be for procurement, construction and
    maintenance of, improvements to, training equipment for, and related
    expenses, of facilities of the Federal Law Enforcement Training Centers.
    SEC. 100054. APPROPRIATION FOR THE DEPARTMENT OF JUSTICE.

        In addition to amounts otherwise available, there is appropriated to
    the Attorney General for the Department of Justice for fiscal year 2025,
    out of any money in the Treasury not otherwise appropriated,
    $3,330,000,000, to remain available through September 30, 2029, for the
    following purposes:
                (1) Executive office for immigration review.--

    [[Page 139 STAT. 390]]

                        (A) In general.--Hiring immigration judges and
                    necessary support staff for the Executive Office for
                    Immigration Review to address the backlog of petitions,
                    cases, and removals.
                        (B) <<NOTE: Effective date.>>  Staffing level.--
                    Effective November 1, 2028, the Executive Office for
                    Immigration Review shall be comprised of not more than
                    800 immigration judges, along with the necessary support
                    staff.
                (2) Combating drug trafficking.--Funding efforts to combat
            drug trafficking (including trafficking of fentanyl and its
            precursor chemicals) and illegal drug use.
                (3) Prosecution of immigration matters.--Funding efforts to
            investigate and prosecute immigration matters, gang-related
            crimes involving aliens, child trafficking and smuggling
            involving aliens within the United States, unlawful voting by
            aliens, violations of the Alien Registration Act, 1940 (54
            Stat., chapter 439), and violations of or fraud relating to
            title IV of the Personal Responsibility and Work Opportunity Act
            of 1996 (Public Law 104-193; 110 Stat. 2277), including hiring
            additional Department of Justice personnel to investigate and
            prosecute such matters.
                (4) <<NOTE: Courts.>>  Nonparty or other injunctive
            relief.--Hiring additional attorneys and necessary support staff
            for the purpose of continuing implementation of assignments by
            the Attorney General pursuant to sections 516, 517, and 518 of
            title 28, United States Code, to conduct litigation and attend
            to the interests of the United States in suits pending in a
            court of the United States or in a court of a State in suits
            seeking nonparty or other injunctive relief against the Federal
            Government.
                (5) Edward byrne memorial justice assistance grant program
            and office of community oriented policing.--
                        (A) In general.--Increasing funding for the Edward
                    Byrne Memorial Justice Assistance Grant Program and the
                    Office of Community Oriented Policing for initiatives
                    associated with--
                              (i) investigating and prosecuting violent
                          crime;
                              (ii) criminal enforcement initiatives; and
                              (iii) immigration enforcement and removal
                          efforts.
                        (B) Limitations.--No funds made available under this
                    subsection shall be made available to community violence
                    intervention and prevention initiative programs.
                        (C) <<NOTE: Determination.>>  Eligibility.--To be
                    eligible to receive funds made available under this
                    subsection, a State or local government shall be in full
                    compliance, as determined by the Attorney General, with
                    section 642 of the Illegal Immigration Reform and
                    Immigrant Responsibility Act of 1996 (8 U.S.C. 1373).
                (6) Fiscally responsible lawsuit settlements.--Hiring
            additional attorneys and necessary support staff for the purpose
            of maximizing lawsuit settlements that require the payment of
            fines and penalties to the Treasury of the United States in lieu
            of providing for the payment to any person or entity other than
            the United States, other than a payment that provides
            restitution or otherwise directly remedies actual harm directly
            and proximately caused by the party making the payment, or
            constitutes payment for services rendered in connection with the
            case.

    [[Page 139 STAT. 391]]

                (7) Compensation for incarceration of criminal aliens.--
                        (A) In general.--Providing compensation to a State
                    or political subdivision of a State for the
                    incarceration of criminal aliens.
                        (B) Use of funds.--The amounts made available under
                    subparagraph (A) shall only be used to compensate a
                    State or political subdivision of a State, as
                    appropriate, with respect to the incarceration of an
                    alien who--
                              (i) has been convicted of a felony or 2 or
                          more misdemeanors; and
                              (ii)(I) entered the United States without
                          inspection or at any time or place other than as
                          designated by the Secretary of Homeland Security;
                              (II) was the subject of removal proceedings at
                          the time the alien was taken into custody by the
                          State or a political subdivision of the State; or
                              (III) was admitted as a nonimmigrant and, at
                          the time the alien 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.--Amounts made available under this
                    subsection shall be distributed to more than 1 State.
                    The amounts made available under subparagraph (A) may
                    not be used to compensate any State or political
                    subdivision of a 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 doing any of the
                    following:
                              (i) 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))).
                              (ii) Assisting or cooperating with Federal law
                          enforcement entities, officials, or other
                          personnel regarding the enforcement of the
                          immigration laws.
                              (iii) Undertaking any of the following law
                          enforcement activities as such activities relate
                          to information regarding the citizenship or
                          immigration status, lawful or unlawful, the
                          inadmissibility or deportability, and the custody
                          status, of any individual:
                                        (I) Making inquiries to any
                                    individual to obtain such information
                                    regarding such individual or any other
                                    individuals.
                                        (II) 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.
                                        (III) Complying with requests for
                                    such information from Federal law
                                    enforcement entities, officials, or
                                    other personnel.

    [[Page 139 STAT. 392]]

    SEC. 100055. <<NOTE: 34 USC 61101.>>  BRIDGING IMMIGRATION-RELATED
                                  DEFICITS EXPERIENCED NATIONWIDE
                                  REIMBURSEMENT FUND.

        (a) Establishment.--There is established within the Department of
    Justice a fund, to be known as the ``Bridging Immigration-related
    Deficits Experienced Nationwide (BIDEN) Reimbursement Fund'' (referred
    to in this section as the ``Fund'').
        (b) Use of Funds.--The Attorney General shall use amounts
    appropriated or otherwise made available for the Fund for grants to
    eligible States, State agencies, and units of local government, pursuant
    to their existing statutory authorities, for any of the following
    purposes:
                (1) Locating and apprehending aliens who have committed a
            crime under Federal, State, or local law, in addition to being
            unlawfully present in the United States.
                (2) Collection and analysis of law enforcement investigative
            information within the United States to counter gang or other
            criminal activity.
                (3) Investigating and prosecuting--
                        (A) crimes committed by aliens within the United
                    States; and
                        (B) drug and human trafficking crimes committed
                    within the United States.
                (4) Court operations related to the prosecution of--
                        (A) crimes committed by aliens; and
                        (B) drug and human trafficking crimes.
                (5) Temporary criminal detention of aliens.
                (6) Transporting aliens described in paragraph (1) within
            the United States to locations related to the apprehension,
            detention, and prosecution of such aliens.
                (7) Vehicle maintenance, logistics, transportation, and
            other support provided to law enforcement agencies by a State
            agency to enhance the ability to locate and apprehend aliens who
            have committed crimes under Federal, State, or local law, in
            addition to being unlawfully present in the United States.

        (c) Appropriation.--In addition to amounts otherwise available for
    the purposes described in subsection (b), there is appropriated to the
    Attorney General for fiscal year 2025, out of any money in the Treasury
    not otherwise appropriated, not to exceed $3,500,000,000, to remain
    available until September 30, 2028, for the Fund for qualified and
    documented expenses that achieve any such purpose.
        (d) Grant Eligibility of Completed, Ongoing, or New
    Activities. <<NOTE: Determination. Effective date.>> --The Attorney
    General may provide grants under this section to State agencies and
    units of local government for expenditures made by State agencies or
    units of local government for completed, ongoing, or new activities
    determined to be eligible for such grant funding that occurred on or
    after January 20, 2021. Amounts made available under this section shall
    be distributed to more than 1 State.
    SEC. 100056. APPROPRIATION FOR THE BUREAU OF PRISONS.

        (a) Appropriation.--In addition to amounts otherwise available,
    there is appropriated to the Director of the Bureau of Prisons for
    fiscal year 2025, out of any money in the Treasury not otherwise
    appropriated, $5,000,000,000, to remain available through September 30,
    2029, for the purposes described in subsections (b) and (c).

    [[Page 139 STAT. 393]]

        (b) Salaries and Benefits.--Not less than $3,000,000,000 of the
    amounts made available under subsection (a) shall be for hiring and
    training of new employees, including correctional officers, medical
    professionals, and facilities and maintenance employees, the necessary
    support staff, and for additional funding for salaries and benefits for
    the current workforce of the Bureau of Prisons.
        (c) Facilities.--Not more than $2,000,000,000 of the amounts made
    available under subsection (a) shall be for addressing maintenance and
    repairs to facilities maintained or operated by the Bureau of Prisons.
    SEC. 100057. APPROPRIATION FOR THE UNITED STATES SECRET SERVICE.

        (a) Appropriation.--In addition to amounts otherwise available,
    there is appropriated to the Director of the United States Secret
    Service (referred to in this section as the ``Director'') for fiscal
    year 2025, out of any money in the Treasury not otherwise appropriated,
    $1,170,000,000, to remain available through September 30, 2029, for the
    purposes described in subsection (b).
        (b) Use of Funds.--Amounts made available under subsection (a) may
    only be used for--
                (1) additional United States Secret Service resources,
            including personnel, training facilities, programming, and
            technology; and
                (2) performance, retention, and signing bonuses for
            qualified United States Secret Service personnel in accordance
            with subsection (c).

        (c) Performance, Retention, and Signing Bonuses.--
                (1) Performance bonuses.--The Director, at the Director's
            discretion, may provide performance bonuses to any Secret
            Service agent, officer, or analyst who demonstrates exemplary
            service.
                (2) Retention bonuses.--The Director may provide retention
            bonuses to any Secret Service agent, officer, or analyst who
            commits to 2 years of additional service with the Secret
            Service.
                (3) Signing bonuses.--The Director may provide a signing
            bonus to any Secret Service agent, officer, or analyst who--
                        (A) is hired on or after the date of the enactment
                    of this Act; and
                        (B) commits to 5 years of service with the United
                    States Secret Service.
                (4) <<NOTE: Contracts.>>  Service agreement.--In providing a
            retention or signing bonus under this subsection, the Director
            shall provide each qualifying individual with a written service
            agreement that includes--
                        (A) the commencement and termination dates of the
                    required service period (or provisions for the
                    determination of such dates);
                        (B) the amount of the bonus; and
                        (C) any other term or condition under which the
                    bonus is payable, subject to the requirements under this
                    subsection, including--
                              (i) the conditions under which the agreement
                          may be terminated before the agreed-upon service
                          period has been completed; and

    [[Page 139 STAT. 394]]

                              (ii) the effect of a termination described in
                          clause (i).

                          Subtitle B--Judiciary Matters

    SEC.
                                  100101. <<NOTE: Analysis. Reports. Examination. Data. Assessmen
                                  t. Determination.>>  APPROPRIATION
                                  TO THE ADMINISTRATIVE OFFICE OF THE
                                  UNITED STATES COURTS.

        In addition to amounts otherwise available, there is appropriated to
    the Director of the Administrative Office of the United States Courts,
    out of amounts in the Treasury not otherwise appropriated, $1,250,000
    for each of fiscal years 2025 through 2028, for the purpose of
    continuing analyses and reporting pursuant to section 604(a)(2) of title
    28, United States Code, to examine the state of the dockets of the
    courts and to prepare and transmit statistical data and reports as to
    the business of the courts, including an assessment of the number,
    frequency, and related metrics of judicial orders issuing non-party
    relief against the Federal Government and their aggregate cost impact on
    the taxpayers of the United States, as determined by each court when
    imposing securities for the issuance of preliminary injunctions or
    temporary restraining orders against the Federal Government pursuant to
    rule 65(c) of the Federal Rules of Civil Procedure.
    SEC. 100102. APPROPRIATION TO THE FEDERAL JUDICIAL CENTER.

        (a) Appropriation.--In addition to amounts otherwise available,
    there is appropriated to the Director of the Federal Judicial Center,
    out of amounts in the Treasury not otherwise appropriated, $1,000,000
    for each of fiscal years 2025 through 2028, for the purpose described in
    subsection (b).
        (b) Use of Funds.--The Federal Judicial Center shall use the amounts
    appropriated under subsection (a) for the continued implementation of
    programs pursuant to section 620(b)(3) of title 28, United States Code,
    to stimulate, create, develop, and conduct programs of continuing
    education and training for personnel of the judicial branch, including
    training on the absence of constitutional and statutory authority
    supporting legal claims that seek non-party relief against the Federal
    Government, and strategic approaches for mitigating the aggregate cost
    impact of such legal claims on the taxpayers of the United States.

               Subtitle C--Radiation Exposure Compensation Matters

    SEC. 100201. EXTENSION OF FUND.

        Section 3(d) of the Radiation Exposure Compensation Act (Public Law
    101-426; 42 U.S.C. 2210 note) is amended--
                (1) by striking the first sentence and inserting ``The Fund
            shall terminate on December 31, 2028.''; and
                (2) by striking ``the end of that 2-year period'' and
            inserting ``such date''.
    SEC. 100202. CLAIMS RELATING TO ATMOSPHERIC TESTING.

        (a) Leukemia Claims Relating to Trinity Test in New Mexico and Tests
    at the Nevada Site.--Section 4(a)(1)(A) of

    [[Page 139 STAT. 395]]

    the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C.
    2210 note) is amended--
                (1) in clause (i)--
                        (A) in subclause (I), by striking ``October 31,
                    1958'' and inserting ``November 6, 1962'';
                        (B) in subclause (II)--
                              (i) by striking ``in the affected area'' and
                          inserting ``in an affected area''; and
                              (ii) by striking ``or'' after the semicolon;
                        (C) by redesignating subclause (III) as subclause
                    (IV); and
                        (D) by inserting after subclause (II) the following:
                                        ``(III) was physically present in an
                                    affected area for a period of at least 1
                                    year during the period beginning on
                                    September 24, 1944, and ending on
                                    November 6, 1962; or''; and
                (2) in clause (ii)(I), by striking ``physical presence
            described in subclause (I) or (II) of clause (i) or onsite
            participation described in clause (i)(III)'' and inserting
            ``physical presence described in subclause (I), (II), or (III)
            of clause (i) or onsite participation described in clause
            (i)(IV)''.

        (b) Amounts for Claims Related to Leukemia.--Section 4(a)(1) of the
    Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210
    note) is amended--
                (1) in subparagraph (A), by striking ``an amount'' and
            inserting ``the amount'';
                (2) by striking subparagraph (B) and inserting the
            following:
                        ``(B) Amount.--If the conditions described in
                    subparagraph (C) are met, an individual who is described
                    in subparagraph (A) shall receive $100,000.''; and
                (3) in subparagraph (C), by adding at the end the following:
                              ``(iv) No payment under this paragraph
                          previously has been made to the individual, on
                          behalf of the individual, or to a survivor of the
                          individual.''.

        (c) Conditions for Claims Related to Leukemia.--Section 4(a)(1)(C)
    of the Radiation Exposure Compensation Act (Public Law 101-426; 42
    U.S.C. 2210 note) is amended--
                (1) by striking clause (i); and
                (2) by redesignating clauses (ii) and (iii) as clauses (i)
            and (ii), respectively.

        (d) Specified Diseases Claims Relating to Trinity Test in New Mexico
    and Tests at the Nevada Site.--Section 4(a)(2) of the Radiation Exposure
    Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended--
                (1) in subparagraph (A)--
                        (A) by striking ``in the affected area'' and
                    inserting ``in an affected area'';
                        (B) by striking ``2 years'' and inserting ``1
                    year''; and
                        (C) by striking ``October 31, 1958,'' and inserting
                    ``November 6, 1962;'';
                (2) in subparagraph (B)--
                        (A) by striking ``in the affected area'' and
                    inserting ``in an affected area''; and
                        (B) by striking ``, or'' at the end and inserting a
                    semicolon;

    [[Page 139 STAT. 396]]

                (3) by redesignating subparagraph (C) as subparagraph (D);
            and
                (4) by inserting after subparagraph (B) the following:
                        ``(C) was physically present in an affected area for
                    a period of at least 1 year during the period beginning
                    on September 24, 1944, and ending on November 6, 1962;
                    or''.

        (e) Amounts for Claims Related to Specified Diseases.--Section
    4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101-426;
    42 U.S.C. 2210 note) is amended in the matter following subparagraph (D)
    (as redesignated by subsection (d) of this section)--
                (1) by striking ``$50,000 (in the case of an individual
            described in subparagraph (A) or (B)) or $75,000 (in the case of
            an individual described in subparagraph (C)),'' and inserting
            ``$100,000'';
                (2) in clause (i), by striking ``, and'' and inserting a
            semicolon;
                (3) in clause (ii), by striking the period at the end and
            inserting ``; and''; and
                (4) by adding at the end the following:
                              ``(iii) no payment under this paragraph
                          previously has been made to the individual, on
                          behalf of the individual, or to a survivor of the
                          individual.''.

        (f) Downwind States.--Section 4(b)(1) of the Radiation Exposure
    Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended to
    read as follows:
                ``(1) <<NOTE: Definition.>>  `affected area' means--
                        ``(A) except as provided under subparagraph (B)--
                              ``(i) the States of New Mexico, Utah, and
                          Idaho;
                              ``(ii) in the State of Nevada, the counties of
                          White Pine, Nye, Lander, Lincoln, Eureka, and that
                          portion of Clark County that consists of townships
                          13 through 16 at ranges 63 through 71; and
                              ``(iii) in the State of Arizona, the counties
                          of Coconino, Yavapai, Navajo, Apache, and Gila,
                          and Mohave; and
                        ``(B) with respect to a claim by an individual under
                    subsection (a)(1)(A)(i)(III) or subsection (a)(2)(C),
                    only New Mexico; and''.
    SEC. 100203. CLAIMS RELATING TO URANIUM MINING.

        (a) Employees of Mines and Mills.--Section 5(a)(1)(A)(i) of the
    Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210
    note) is amended to read as follows:
                              ``(i)(I) <<NOTE: State listing.>>  was
                          employed in a uranium mine or uranium mill
                          (including any individual who was employed in the
                          transport of uranium ore or vanadium-uranium ore
                          from such mine or mill) located in Colorado, New
                          Mexico, Arizona, Wyoming, South Dakota,
                          Washington, Utah, Idaho, North Dakota, Oregon, or
                          Texas at any time during the period beginning on
                          January 1, 1942, and ending on December 31, 1990;
                          or
                              ``(II) was employed as a core driller in a
                          State referred to in subclause (I) during the
                          period described in such subclause; and''.

    [[Page 139 STAT. 397]]

        (b) Miners.--Section 5(a)(1)(A)(ii)(I) of the Radiation Exposure
    Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by
    inserting ``or renal cancer or any other chronic renal disease,
    including nephritis and kidney tubal tissue injury'' after
    ``nonmalignant respiratory disease''.
        (c) Millers, Core Drillers, and Ore Transporters.--Section
    5(a)(1)(A)(ii)(II) of the Radiation Exposure Compensation Act (Public
    Law 101-426; 42 U.S.C. 2210 note) is amended--
                (1) by inserting ``, core driller,'' after ``was a miller'';
                (2) by inserting ``, or was involved in remediation efforts
            at such a uranium mine or uranium mill,'' after ``ore
            transporter'';
                (3) by inserting ``(I)'' after ``clause (i)''; and
                (4) by striking ``or renal cancers'' and all that follows
            and inserting ``or renal cancer or any other chronic renal
            disease, including nephritis and kidney tubal tissue injury;
            or''.

        (d) Combined Work Histories.--Section 5(a)(1)(A)(ii) of the
    Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210
    note), as amended by subsection (c), is further amended--
                (1) in subclause (I), by striking ``or'' at the end; and
                (2) by adding at the end the following:
                                        ``(III)(aa) does not meet the
                                    conditions of subclause (I) or (II);
                                        ``(bb) worked, during the period
                                    described in clause (i)(I), in 2 or more
                                    of the following positions: miner,
                                    miller, core driller, and ore
                                    transporter;
                                        ``(cc) meets the requirements under
                                    paragraph (4) or (5); and
                                        ``(dd) submits written medical
                                    documentation that the individual
                                    developed lung cancer, a nonmalignant
                                    respiratory disease, renal cancer, or
                                    any other chronic renal disease,
                                    including nephritis and kidney tubal
                                    tissue injury after exposure to
                                    radiation through work in one or more of
                                    the positions referred to in item
                                    (bb);''.

        (e) Special Rules Relating to Combined Work Histories.--Section 5(a)
    of the Radiation Exposure Compensation Act (Public Law 101-426; 42
    U.S.C. 2210 note) is amended by adding at the end the following:
                ``(4) Special rule relating to combined work histories for
            individuals with at least one year of experience.--An individual
            meets the requirements under this paragraph if the individual
            worked in one or more of the positions referred to in paragraph
            (1)(A)(ii)(III)(bb) for a period of at least one year during the
            period described in paragraph (1)(A)(i)(I).
                ``(5) Special rule relating to combined work histories for
            miners. <<NOTE: Determination.>> --An individual meets the
            requirements of this paragraph if the individual, during the
            period described in paragraph (1)(A)(i)(I), worked as a miner
            and was exposed to such number of working level months that the
            Attorney General determines, when combined with the exposure of
            such individual to radiation through work as a miller, core
            driller, or ore transporter during the period described in
            paragraph (1)(A)(i)(I), results in such individual being exposed
            to a total level of radiation that is greater or equal to the
            level of exposure of an individual described in paragraph
            (4).''.

    [[Page 139 STAT. 398]]

        (f) Definition of Core Driller.--Section 5(b) of the Radiation
    Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is
    amended--
                (1) in paragraph (7), by striking ``and'' at the end;
                (2) in paragraph (8), by striking the period at the end and
            inserting ``; and''; and
                (3) by adding at the end the following:
                ``(9) the term `core driller' means any individual employed
            to engage in the act or process of obtaining cylindrical rock
            samples of uranium or vanadium by means of a borehole drilling
            machine for the purpose of mining uranium or vanadium.''.
    SEC. 100204. CLAIMS RELATING TO MANHATTAN PROJECT WASTE.

        The Radiation Exposure Compensation Act (Public Law 101-426; 42
    U.S.C. 2210 note) is amended by inserting after section 5 the following:
    ``SEC. 5A. CLAIMS RELATING TO MANHATTAN PROJECT WASTE.

        ``(a) In General.--A claimant shall receive compensation for a claim
    made under this Act, as described in subsection (b) or (c), if--
                ``(1) a claim for compensation is filed with the Attorney
            General--
                        ``(A) by an individual described in paragraph (2);
                    or
                        ``(B) on behalf of that individual by an authorized
                    agent of that individual, if the individual is deceased
                    or incapacitated, such as--
                              ``(i) an executor of estate of that
                          individual; or
                              ``(ii) a legal guardian or conservator of that
                          individual;
                ``(2) that individual, or if applicable, an authorized agent
            of that individual, demonstrates that such individual--
                        ``(A) <<NOTE: Effective date.>>  was physically
                    present in an affected area for a period of at least 2
                    years after January 1, 1949; and
                        ``(B) contracted a specified disease after such
                    period of physical presence;
                ``(3) <<NOTE: Certification.>>  the Attorney General
            certifies that the identity of that individual, and if
            applicable, the authorized agent of that individual, is not
            fraudulent or otherwise misrepresented; and
                ``(4) <<NOTE: Determination.>>  the Attorney General
            determines that the claimant has satisfied the applicable
            requirements of this Act.

        ``(b) Losses Available to Living Affected Individuals.--
                ``(1) In general.--In the event of a claim qualifying for
            compensation under subsection (a) that is submitted to the
            Attorney General to be eligible for compensation under this
            section at a time when the individual described in subsection
            (a)(2) is living, the amount of compensation under this section
            shall be in an amount that is the greater of $50,000 or the
            total amount of compensation for which the individual is
            eligible under paragraph (2).
                ``(2) <<NOTE: Records.>>  Losses due to medical expenses.--A
            claimant described in paragraph (1) shall be eligible to
            receive, upon submission of contemporaneous written medical
            records, reports, or billing statements created by or at the
            direction of a licensed medical professional who provided
            contemporaneous medical care to the claimant, additional
            compensation in the amount of all documented out-of-pocket
            medical expenses

    [[Page 139 STAT. 399]]

            incurred as a result of the specified disease suffered by that
            claimant, such as any medical expenses not covered, paid for, or
            reimbursed through--
                        ``(A) any public or private health insurance;
                        ``(B) any employee health insurance;
                        ``(C) any workers' compensation program; or
                        ``(D) any other public, private, or employee health
                    program or benefit.
                ``(3) <<NOTE: Deadline.>>  Limitation.--No claimant is
            eligible to receive compensation under this subsection with
            respect to medical expenses unless the submissions described in
            paragraph (2) with respect to such expenses are submitted on or
            before December 31, 2028.

        ``(c) Payments to Beneficiaries of Deceased Individuals.--In the
    event that an individual described in subsection (a)(2) who qualifies
    for compensation under subsection (a) is deceased at the time of
    submission of the claim--
                ``(1) a surviving spouse may, upon submission of a claim and
            records sufficient to satisfy the requirements of subsection (a)
            with respect to the deceased individual, receive compensation in
            the amount of $25,000; or
                ``(2) <<NOTE: Records.>>  in the event that there is no
            surviving spouse, the surviving children, minor or otherwise, of
            the deceased individual may, upon submission of a claim and
            records sufficient to satisfy the requirements of subsection (a)
            with respect to the deceased individual, receive compensation in
            the total amount of $25,000, paid in equal shares to each
            surviving child.

        ``(d) <<NOTE: Definition.>>  Affected Areas.--For purposes of this
    section, the term `affected area' means--
                ``(1) in the State of Missouri, the ZIP Codes of 63031,
            63033, 63034, 63042, 63045, 63074, 63114, 63135, 63138, 63044,
            63121, 63140, 63145, 63147, 63102, 63304, 63134, 63043, 63341,
            63368, and 63367;
                ``(2) in the State of Tennessee, the ZIP Codes of 37716,
            37840, 37719, 37748, 37763, 37828, 37769, 37710, 37845, 37887,
            37829, 37854, 37830, and 37831;
                ``(3) in the State of Alaska, the ZIP Codes of 99546 and
            99547; and
                ``(4) in the State of Kentucky, the ZIP Codes of 42001,
            42003, and 42086.

        ``(e) <<NOTE: Definition.>>  Specified Disease.--For purposes of
    this section, the term `specified disease' means any of the following:
                ``(1) Any leukemia, provided that the initial exposure
            occurred after 20 years of age and the onset of the disease was
            at least 2 years after first exposure.
                ``(2) Any of the following diseases, provided that the onset
            was at least 2 years after the initial exposure:
                        ``(A) Multiple myeloma.
                        ``(B) Lymphoma, other than Hodgkin's disease.
                        ``(C) Primary cancer of the--
                              ``(i) thyroid;
                              ``(ii) male or female breast;
                              ``(iii) esophagus;
                              ``(iv) stomach;
                              ``(v) pharynx;
                              ``(vi) small intestine;

    [[Page 139 STAT. 400]]

                              ``(vii) pancreas;
                              ``(viii) bile ducts;
                              ``(ix) gall bladder;
                              ``(x) salivary gland;
                              ``(xi) urinary bladder;
                              ``(xii) brain;
                              ``(xiii) colon;
                              ``(xiv) ovary;
                              ``(xv) bone;
                              ``(xvi) renal;
                              ``(xvii) liver, except if cirrhosis or
                          hepatitis B is indicated; or
                              ``(xviii) lung.

        ``(f) Physical Presence.--
                ``(1) <<NOTE: Records. Effective date. Determinations.>>  In
            general.--For purposes of this section, the Attorney General may
            not determine that a claimant has satisfied the requirements
            under subsection (a) unless demonstrated by submission of--
                        ``(A) contemporaneous written residential
                    documentation or at least 1 additional employer-issued
                    or government-issued document or record that the
                    claimant, for at least 2 years after January 1, 1949,
                    was physically present in an affected area; or
                        ``(B) other documentation determined by the Attorney
                    General to demonstrate that the claimant, for at least 2
                    years after January 1, 1949, was physically present in
                    an affected area.
                ``(2) Types of physical presence.--For purposes of
            determining physical presence under this section, a claimant
            shall be considered to have been physically present in an
            affected area if--
                        ``(A) the claimant's primary residence was in the
                    affected area;
                        ``(B) the claimant's place of employment was in the
                    affected area; or
                        ``(C) the claimant attended school in the affected
                    area.

        ``(g) <<NOTE: Records.>>  Disease Contraction in Affected Areas.--
    For purposes of this section, the Attorney General may not determine
    that a claimant has satisfied the requirements under subsection (a)
    unless the claimant submits--
                ``(1) written medical records or reports created by or at
            the direction of a licensed medical professional, created
            contemporaneously with the provision of medical care to the
            claimant, that the claimant, after a period of physical presence
            in an affected area, contracted a specified disease; or
                ``(2) <<NOTE: Determination.>>  other documentation
            determined by the Attorney General to demonstrate that the
            claimant contracted a specified disease after a period of
            physical presence in an affected area.''.

    [[Page 139 STAT. 401]]

    SEC. 100205. LIMITATIONS ON CLAIMS.

        Section 8(a) of the Radiation Exposure Compensation Act (Public Law
    101-426; 42 U.S.C. 2210 note) is amended by striking ``2 years after the
    date of enactment of the RECA Extension Act of 2022'' and inserting
    ``December 31, 2027''.

        Approved July 4, 2025.

    LEGISLATIVE HISTORY--H.R. 1:
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 119-106 (Comm. on the Budget).
    CONGRESSIONAL RECORD, Vol. 171 (2025):
                May 21, considered and passed House.
                June 28, 30, considered and passed Senate, amended.
                July 2, House concurred in Senate amendment.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2025):
                July 4, Presidential remarks.

                                      <all>