[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Reported in House (RH)]
<DOC>
Union Calendar No. 78
119th CONGRESS
1st Session
H. R. 1
[Report No. 119-106]
To provide for reconciliation pursuant to title II of H. Con. Res. 14.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 20, 2025
Mr. Arrington, from the Committee on the Budget, reported the following
bill; which was committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
A BILL
To provide for reconciliation pursuant to title II of H. Con. Res. 14.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``One Big Beautiful Bill Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--COMMITTEE ON AGRICULTURE
Subtitle A--Nutrition
Sec. 10001. Thrifty food plan.
Sec. 10002. Able bodied adults without dependents work requirements.
Sec. 10003. Able bodied adults without dependents waivers.
Sec. 10004. Availability of standard utility allowances based on
receipt of energy assistance.
Sec. 10005. Restrictions on internet expenses.
Sec. 10006. Matching funds requirements.
Sec. 10007. Administrative cost sharing.
Sec. 10008. General work requirement age.
Sec. 10009. National Accuracy Clearinghouse.
Sec. 10010. Quality control zero tolerance.
Sec. 10011. National education and obesity prevention grant program
repealer.
Sec. 10012. Alien SNAP eligibility.
Sec. 10012. Emergency food assistance.
Subtitle B--Investment in Rural America
Sec. 10101. Safety net.
Sec. 10102. Conservation.
Sec. 10103. Trade.
Sec. 10104. Research.
Sec. 10105. Secure rural schools; forestry.
Sec. 10106. Energy.
Sec. 10107. Horticulture.
Sec. 10108. Miscellaneous.
TITLE II--COMMITTEE ON ARMED SERVICES
Sec. 20001. Enhancement of Department of Defense resources for
improving the quality of life for military
personnel.
Sec. 20002. Enhancement of Department of Defense resources for
shipbuilding.
Sec. 20003. Enhancement of Department of Defense resources for
integrated air and missile defense.
Sec. 20004. Enhancement of Department of Defense resources for
munitions and defense supply chain
resiliency.
Sec. 20005. Enhancement of Department of Defense resources for scaling
low-cost weapons into production.
Sec. 20006. Enhancement of Department of Defense resources for
improving the efficiency and cybersecurity
of the Department of Defense.
Sec. 20007. Enhancement of Department of Defense resources for air
superiority.
Sec. 20008. Enhancement of resources for nuclear forces.
Sec. 20009. Enhancement of Department of Defense resources to improve
capabilities of United States Indo-Pacific
Command.
Sec. 20010. Enhancement of Department of Defense resources for
improving the readiness of the Armed
Forces.
Sec. 20011. Improving Department of Defense border support and counter-
drug missions.
Sec. 20012. Enhancement of military intelligence programs.
Sec. 20013. Department of Defense oversight.
Sec. 20014. Military construction projects authorized.
Sec. 20015. Plan required.
Sec. 20016. Limitation on availability of funds.
TITLE III--COMMITTEE ON EDUCATION AND WORKFORCE
Subtitle A--Student Eligibility
Sec. 30001. Student eligibility.
Sec. 30002. Amount of need; cost of attendance; median cost of college.
Subtitle B--Loan Limits
Sec. 30011. Loan Limits.
Subtitle C--Loan Repayment
Sec. 30021. Loan repayment.
Sec. 30022. Deferment; forbearance.
Sec. 30023. Loan rehabilitation.
Sec. 30024. Public Service Loan Forgiveness.
Sec. 30025. Student loan servicing.
Subtitle D--Pell Grants
Sec. 30031. Eligibility.
Sec. 30032. Workforce pell grants.
Sec. 30033. Pell shortfall.
Subtitle E--Accountability
Sec. 30041. Agreements with institutions.
Sec. 30042. Campus-based aid programs.
Subtitle F--Regulatory Relief
Sec. 30051. Regulatory relief.
Subtitle G--Limitation on Authority
Sec. 30061. Limitation on authority of the Secretary to propose or
issue regulations and executive actions.
TITLE IV--ENERGY AND COMMERCE
Subtitle A--Energy
Sec. 41001. Rescissions relating to certain Inflation Reduction Act
programs.
Sec. 41002. FERC certificates and fees for certain energy
infrastructure at international boundaries
of the United States.
Sec. 41003. Natural gas exports and imports.
Sec. 41004. Funding for Department of Energy loan guarantee expenses.
Sec. 41005. Expedited permitting.
Sec. 41006. Carbon dioxide, hydrogen, and petroleum pipeline
permitting.
Sec. 41007. De-risking Compensation Program.
Sec. 41008. Strategic Petroleum Reserve.
Sec. 41009. Rescissions of previously appropriated unobligated funds.
Subtitle B--Environment
Part 1--Repeals and Rescissions
Sec. 42101. Repeal and rescission relating to clean heavy-duty
vehicles.
Sec. 42102. Repeal and rescission relating to grants to reduce air
pollution at ports.
Sec. 42103. Repeal and rescission relating to Greenhouse Gas Reduction
Fund.
Sec. 42104. Repeal and rescission relating to diesel emissions
reductions.
Sec. 42105. Repeal and rescission relating to funding to address air
pollution.
Sec. 42106. Repeal and rescission relating to funding to address air
pollution at schools.
Sec. 42107. Repeal and rescission relating to low emissions electricity
program.
Sec. 42108. Repeal and rescission relating to funding for section
211(o) of the Clean Air Act.
Sec. 42109. Repeal and rescission relating to funding for
implementation of the American Innovation
and Manufacturing Act.
Sec. 42110. Repeal and rescission relating to funding for enforcement
technology and public information.
Sec. 42111. Repeal and rescission relating to greenhouse gas corporate
reporting.
Sec. 42112. Repeal and rescission relating to environmental product
declaration assistance.
Sec. 42113. Repeal of funding for methane emissions and waste reduction
incentive program for petroleum and natural
gas systems.
Sec. 42114. Repeal and rescission relating to greenhouse gas air
pollution plans and implementation grants.
Sec. 42115. Repeal and rescission relating to Environmental Protection
Agency efficient, accurate, and timely
reviews.
Sec. 42116. Repeal and rescission relating to low-embodied carbon
labeling for construction materials.
Sec. 42117. Repeal and rescission relating to environmental and climate
justice block grants.
Part 2--Repeal of EPA Rule Relating to Multi-pollutant Emissions
Standards
Sec. 42201. Repeal of EPA rule relating to multi-pollutant emissions
standards for light- and medium-duty
vehicles.
Part 3--Repeal of NHTSA Rule Relating to CAFE Standards
Sec. 42301. Repeal of NHTSA rule relating to CAFE standards for
passenger cars and light trucks.
Subtitle C--Communications
Part 1--Spectrum Auctions
Sec. 43101. Identification and auction of spectrum.
Part 2--Artificial Intelligence and Information Technology
Modernization
Sec. 43201. Artificial intelligence and information technology
modernization initiative.
Subtitle D--Health
Part 1--Medicaid
subpart a--reducing fraud and improving enrollment processes
Sec. 44101. Moratorium on implementation of rule relating to
eligibility and enrollment in Medicare
Savings Programs.
Sec. 44102. Moratorium on implementation of rule relating to
eligibility and enrollment for Medicaid,
CHIP, and the Basic Health Program.
Sec. 44103. Ensuring appropriate address verification under the
Medicaid and CHIP programs.
Sec. 44104. Modifying certain State requirements for ensuring deceased
individuals do not remain enrolled.
Sec. 44105. Medicaid provider screening requirements.
Sec. 44106. Additional Medicaid provider screening requirements.
Sec. 44107. Removing good faith waiver for payment reduction related to
certain erroneous excess payments under
Medicaid.
Sec. 44108. Increasing frequency of eligibility redeterminations for
certain individuals.
Sec. 44109. Revising home equity limit for determining eligibility for
long-term care services under the Medicaid
program.
Sec. 44110. Prohibiting Federal financial participation under Medicaid
and CHIP for individuals without verified
citizenship, nationality, or satisfactory
immigration status.
Sec. 44111. Reducing expansion FMAP for certain States providing
payments for health care furnished to
certain individuals.
subpart b--preventing wasteful spending
Sec. 44121. Moratorium on implementation of rule relating to staffing
standards for long-term care facilities
under the Medicare and Medicaid programs.
Sec. 44122. Modifying retroactive coverage under the Medicaid and CHIP
programs.
Sec. 44123. Ensuring accurate payments to pharmacies under Medicaid.
Sec. 44124. Preventing the use of abusive spread pricing in Medicaid.
Sec. 44125. Prohibiting Federal Medicaid and CHIP funding for gender
transition procedures for minors.
Sec. 44126. Federal payments to prohibited entities.
subpart c--stopping abusive financing practices
Sec. 44131. Sunsetting eligibility for increased FMAP for new expansion
States.
Sec. 44132. Moratorium on new or increased provider taxes.
Sec. 44133. Revising the payment limit for certain State directed
payments.
Sec. 44134. Requirements regarding waiver of uniform tax requirement
for Medicaid provider tax.
Sec. 44135. Requiring budget neutrality for Medicaid demonstration
projects under section 1115.
subpart d--increasing personal accountability
Sec. 44141. Requirement for States to establish Medicaid community
engagement requirements for certain
individuals.
Sec. 44142. Modifying cost sharing requirements for certain expansion
individuals under the Medicaid program.
Part 2--Affordable Care Act
Sec. 44201. Addressing waste, fraud, and abuse in the ACA Exchanges.
Part 3--Improving Americans' Access to Care
Sec. 44301. Expanding and clarifying the exclusion for orphan drugs
under the Drug Price Negotiation Program.
Sec. 44302. Streamlined enrollment process for eligible out-of-state
providers under Medicaid and CHIP.
Sec. 44303. Delaying DSH reductions.
Sec. 44304. Modifying update to the conversion factor under the
physician fee schedule under the Medicare
program.
Sec. 44305. Modernizing and Ensuring PBM Accountability.
TITLE V--COMMITTEE ON FINANCIAL SERVICES
Sec. 50001. Green and resilient retrofit program for multifamily family
housing.
Sec. 50002. Public Company Accounting Oversight Board.
Sec. 50003. Bureau of Consumer Financial Protection.
Sec. 50004. Consumer Financial Civil Penalty Fund.
Sec. 50005. Financial Research Fund.
TITLE VI--COMMITTEE ON HOMELAND SECURITY
Sec. 60001. Border barrier system construction, invasive species, and
border security facilities improvements.
Sec. 60002. U.S. Customs and Border Protection personnel and fleet
vehicles.
Sec. 60003. U.S. Customs and Border Protection technology, National
Vetting Center, and other efforts to
enhance border security.
Sec. 60004. State and local law enforcement presidential residence
protection.
Sec. 60005. State homeland security grant program.
TITLE VII--COMMITTEE ON THE JUDICIARY
Subtitle A--Immigration Matters
Part 1--Immigration Fees
Sec. 70001. Applicability of the immigration laws.
Sec. 70002. Asylum fee.
Sec. 70003. Employment authorization document fees.
Sec. 70004. Parole fee.
Sec. 70005. Special immigrant juvenile fee.
Sec. 70006. Temporary protected status fee.
Sec. 70007. Unaccompanied alien child sponsor fee.
Sec. 70008. Visa integrity fee.
Sec. 70009. Form I-94 fee.
Sec. 70010. Yearly asylum fee.
Sec. 70011. Fee for continuances granted in immigration court
proceedings.
Sec. 70012. Fee relating to renewal and extension of employment
authorization for parolees.
Sec. 70013. Fee relating to termination, renewal, and extension of
employment authorization for asylum
applicants.
Sec. 70014. Fee relating to renewal and extension of employment
authorization for aliens granted temporary
protected status.
Sec. 70015. Diversity immigrant visa fees.
Sec. 70016. EOIR fees.
Sec. 70017. ESTA fee.
Sec. 70018. Immigration user fees.
Sec. 70019. EVUS fee.
Sec. 70020. Fee for sponsor of unaccompanied alien child who fails to
appear in immigration court.
Sec. 70021. Fee for aliens ordered removed in absentia.
Sec. 70022. Customs and Border Protection inadmissible alien
apprehension fee.
Sec. 70023. Amendment to authority to apply for asylum.
Part 2--Use of Funds
Sec. 70100. Executive Office for Immigration Review.
Sec. 70101. Adult alien detention capacity and family residential
centers.
Sec. 70102. Retention and signing bonuses for U.S. Immigration and
Customs Enforcement personnel.
Sec. 70103. Hiring of additional U.S. Immigration and Customs
Enforcement personnel.
Sec. 70104. U.S. Immigration and Customs Enforcement hiring capability.
Sec. 70105. Transportation and removal operations.
Sec. 70106. Information technology investments.
Sec. 70107. Facilities upgrades.
Sec. 70108. Fleet modernization.
Sec. 70109. Promoting family unity.
Sec. 70110. Funding section 287(g) of the Immigration and Nationality
Act.
Sec. 70111. Compensation for incarceration of criminal aliens.
Sec. 70112. Office of the Principal Legal Advisor.
Sec. 70113. Return of aliens arriving from contiguous territory.
Sec. 70114. State and local participation in homeland security efforts.
Sec. 70115. Unaccompanied alien children capacity.
Sec. 70116. Department of Homeland Security criminal and gang checks
for unaccompanied alien children.
Sec. 70117. Department of Health and Human Services criminal and gang
checks for unaccompanied alien children.
Sec. 70118. Information about sponsors and adult residents of sponsor
households.
Sec. 70119. Repatriation of unaccompanied alien children.
Sec. 70120. United States Secret Service.
Sec. 70121. Combating drug trafficking and illegal drug use.
Sec. 70122. Investigating and prosecuting immigration related matters.
Sec. 70123. Expedited removal for criminal aliens.
Sec. 70124. Removal of certain criminal aliens without further hearing.
Subtitle B--Regulatory Matters
Sec. 70200. Review of agency rulemaking.
Sec. 70201. Congressional review act compliance.
Subtitle C--Other Matters
Sec. 70300. Limitation on donations made pursuant to settlement
agreements to which the United States is a
party.
Sec. 70301. Solicitation of orders defined.
Sec. 70302. Restriction of funds.
TITLE VIII--COMMITTEE ON NATURAL RESOURCES
Subtitle A--Energy and Mineral Resources
Part I--Oil and Gas
Sec. 80101. Onshore oil and gas lease sales.
Sec. 80102. Noncompetitive leasing.
Sec. 80103. Permit fees.
Sec. 80104. Permitting fee for non-Federal land.
Sec. 80105. Reinstate reasonable royalty rates.
Part II--Geothermal
Sec. 80111. Geothermal leasing.
Sec. 80112. Geothermal royalties.
Part III--Alaska
Sec. 80121. Coastal plain oil and gas leasing.
Sec. 80122. National Petroleum Reserve-Alaska.
Part IV--Mining
Sec. 80131. Superior National Forest lands in Minnesota.
Sec. 80132. Ambler Road in Alaska.
Part V--Coal
Sec. 80141. Coal leasing.
Sec. 80142. Future coal leasing.
Sec. 80143. Coal royalty.
Sec. 80144. Authorization to mine Federal minerals.
Part VI--NEPA
Sec. 80151. Project sponsor opt-in fees for environmental reviews.
Sec. 80152. Rescission relating to environmental and climate data
collection.
Part VII--Miscellaneous
Sec. 80161. Protest fees.
Part VIII--Offshore Oil and Gas Leasing
Sec. 80171. Mandatory offshore oil and gas lease sales.
Sec. 80172. Offshore commingling.
Sec. 80173. Limitations on amount of distributed qualified outer
Continental Shelf revenues.
Part IX--Renewable Energy
Sec. 80181. Renewable energy fees on Federal lands.
Sec. 80182. Renewable energy revenue sharing.
Subtitle B--Water, Wildlife, and Fisheries
Sec. 80201. Rescission of funds for investing in coastal communities
and climate resilience.
Sec. 80202. Rescission of funds for facilities of National Oceanic and
Atmospheric Administration and national
marine sanctuaries.
Sec. 80203. Surface water storage enhancement.
Sec. 80204. Water conveyance enhancement.
Subtitle C--Federal Lands
Sec. 80301. Prohibition on the Implementation of the Rock Springs Field
Office, Wyoming, Resource Management Plan.
Sec. 80302. Prohibition on the Implementation of the Buffalo Field
Office, Wyoming, Resource Management Plan.
Sec. 80303. Prohibition on the Implementation of the Miles City Field
Office, Montana, Resource Management Plan.
Sec. 80304. Prohibition on the Implementation of the North Dakota
Resource Management Plan.
Sec. 80305. Prohibition on the Implementation of the Colorado River
Valley Field Office and Grand Junction
Field Office Resource Management Plans.
Sec. 80306. Rescission of Forest Service Funds.
Sec. 80307. Rescission of National Park Service and Bureau of Land
Management Funds.
Sec. 80308. Rescission of Bureau of Land Management and National Park
Service Funds.
Sec. 80309. Rescission of National Park Service Funds.
Sec. 80310. Celebrating America's 250th Anniversary.
Sec. 80311. Long-Term Contracts for the Forest Service.
Sec. 80312. Long-Term Contracts for the Bureau of Land Management.
Sec. 80313. Timber production for the Forest Service.
Sec. 80314. Timber Production for the Bureau of Land Management.
Sec. 80315. Bureau of Land Management Land in Nevada.
Sec. 80316. Forest Service Land in Nevada.
Sec. 80317. Federal land in Utah.
TITLE IX--COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM
Sec. 90001. Increase in FERS employee contribution requirements.
Sec. 90002. Elimination of FERS annuity supplement.
Sec. 90003. High-5 average pay for calculating CSRS and FERS pension.
Sec. 90004. Election for at-will employment and lower FERS
contributions for new Federal civil service
hires.
Sec. 90005. Filing fee for Merit Systems Protection Board claims and
appeals.
Sec. 90006. FEHB protection.
TITLE X--COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
Sec. 100001. Coast Guard assets necessary to secure the maritime border
and interdict migrants and drugs.
Sec. 100002. Changes to mandatory benefits programs to allow selected
reserve orders for preplanned missions to
secure maritime borders and interdict
persons and drugs.
Sec. 100003. Vessel tonnage duties.
Sec. 100004. Registration fee on motor vehicles.
Sec. 100005. Deposit of registration fee on motor vehicles.
Sec. 100006. Motor carrier data.
Sec. 100007. IRA rescissions.
Sec. 100008. Air traffic control staffing and modernization.
Sec. 100009. John F. Kennedy Center for the Performing Arts
appropriations.
TITLE XI--COMMITTEE ON WAYS AND MEANS, ``THE ONE, BIG, BEAUTIFUL BILL''
Sec. 110000. References to the Internal Revenue Code of 1986, etc.
Subtitle A--Make American Families and Workers Thrive Again
Part 1--Permanently Preventing Tax Hikes on American Families and
Workers
Sec. 110001. Extension of modification of rates.
Sec. 110002. Extension of increased standard deduction and temporary
enhancement.
Sec. 110003. Termination of deduction for personal exemptions.
Sec. 110004. Extension of increased child tax credit and temporary
enhancement.
Sec. 110005. Extension of deduction for qualified business income and
permanent enhancement.
Sec. 110006. Extension of increased estate and gift tax exemption
amounts and permanent enhancement.
Sec. 110007. Extension of increased alternative minimum tax exemption
and phase-out thresholds.
Sec. 110008. Extension of limitation on deduction for qualified
residence interest.
Sec. 110009. Extension of limitation on casualty loss deduction.
Sec. 110010. Termination of miscellaneous itemized deduction.
Sec. 110011. Limitation on tax benefit of itemized deductions.
Sec. 110012. Termination of qualified bicycle commuting reimbursement
exclusion.
Sec. 110013. Extension of limitation on exclusion and deduction for
moving expenses.
Sec. 110014. Extension of limitation on wagering losses.
Sec. 110015. Extension of increased limitation on contributions to ABLE
accounts and permanent enhancement.
Sec. 110016. Extension of savers credit allowed for ABLE contributions.
Sec. 110017. Extension of rollovers from qualified tuition programs to
ABLE accounts permitted.
Sec. 110018. Extension of treatment of certain individuals performing
services in the Sinai Peninsula and
enhancement to include additional areas.
Sec. 110019. Extension of exclusion from gross income of student loans
discharged on account of death or
disability.
Part 2--Additional Tax Relief for American Families and Workers
Sec. 110101. No tax on tips.
Sec. 110102. No tax on overtime.
Sec. 110103. Enhanced deduction for seniors.
Sec. 110104. No tax on car loan interest.
Sec. 110105. Enhancement of employer-provided child care credit.
Sec. 110106. Extension and enhancement of paid family and medical leave
credit.
Sec. 110107. Enhancement of adoption credit.
Sec. 110108. Recognizing Indian tribal governments for purposes of
determining whether a child has special
needs for purposes of the adoption credit.
Sec. 110109. Tax credit for contributions of individuals to scholarship
granting organizations.
Sec. 110110. Additional elementary, secondary, and home school expenses
treated as qualified higher education
expenses for purposes of 529 accounts.
Sec. 110111. Certain postsecondary credentialing expenses treated as
qualified higher education expenses for
purposes of 529 accounts.
Sec. 110112. Reinstatement of partial deduction for charitable
contributions of individuals who do not
elect to itemize.
Sec. 110113. Exclusion for certain employer payments of student loans
under educational assistance programs made
permanent and adjusted for inflation.
Sec. 110114. Extension of rules for treatment of certain disaster-
related personal casualty losses.
Sec. 110115. MAGA accounts.
Sec. 110116. MAGA accounts contribution pilot program.
Part 3--Investing in Health of American Families and Workers
Sec. 110201. Treatment of health reimbursement arrangements integrated
with individual market coverage.
Sec. 110202. Participants in CHOICE arrangement eligible for purchase
of Exchange insurance under cafeteria plan.
Sec. 110203. Employer credit for CHOICE arrangement.
Sec. 110204. Individuals entitled to part A of Medicare by reason of
age allowed to contribute to health savings
accounts.
Sec. 110205. Treatment of direct primary care service arrangements.
Sec. 110206. Allowance of bronze and catastrophic plans in connection
with health savings accounts.
Sec. 110207. On-site employee clinics.
Sec. 110208. Certain amounts paid for physical activity, fitness, and
exercise treated as amounts paid for
medical care.
Sec. 110209. Allow both spouses to make catch-up contributions to the
same health savings account.
Sec. 110210. FSA and HRA terminations or conversions to fund HSAs.
Sec. 110211. Special rule for certain medical expenses incurred before
establishment of health savings account.
Sec. 110212. Contributions permitted if spouse has health flexible
spending arrangement.
Sec. 110213. Increase in health savings account contribution limitation
for certain individuals.
Sec. 110214. Regulations.
Subtitle B--Make Rural America and Main Street Grow Again
Part 1--Extension of Tax Cuts and Jobs Act Reforms for Rural America
and Main Street
Sec. 111001. Extension of special depreciation allowance for certain
property.
Sec. 111002. Deduction of domestic research and experimental
expenditures.
Sec. 111003. Modified calculation of adjusted taxable income for
purposes of business interest deduction.
Sec. 111004. Extension of deduction for foreign-derived intangible
income and global intangible low-taxed
income.
Sec. 111005. Extension of base erosion minimum tax amount.
Part 2--Additional Tax Relief for Rural America and Main Street
Sec. 111101. Special depreciation allowance for qualified production
property.
Sec. 111102. Renewal and enhancement of opportunity zones.
Sec. 111103. Increased dollar limitations for expensing of certain
depreciable business assets.
Sec. 111104. Repeal of revision to de minimis rules for third party
network transactions.
Sec. 111105. Increase in threshold for requiring information reporting
with respect to certain payees.
Sec. 111106. Repeal of excise tax on indoor tanning services.
Sec. 111107. Exclusion of interest on loans secured by rural or
agricultural real property.
Sec. 111108. Treatment of certain qualified sound recording
productions.
Sec. 111109. Modifications to low-income housing credit.
Sec. 111110. Increased gross receipts threshold for small manufacturing
businesses.
Sec. 111111. Global intangible low-taxed income determined without
regard to certain income derived from
services performed in the Virgin Islands.
Sec. 111112. Extension and modification of clean fuel production
credit.
Part 3--Investing in the Health of Rural America and Main Street
Sec. 111201. Expanding the definition of rural emergency hospital under
the Medicare program.
Subtitle C--Make America Win Again
Part 1--Working Families Over Elites
Sec. 112001. Termination of previously-owned clean vehicle credit.
Sec. 112002. Termination of clean vehicle credit.
Sec. 112003. Termination of qualified commercial clean vehicles credit.
Sec. 112004. Termination of alternative fuel vehicle refueling property
credit.
Sec. 112005. Termination of energy efficient home improvement credit.
Sec. 112006. Termination of residential clean energy credit.
Sec. 112007. Termination of new energy efficient home credit.
Sec. 112008. Phase-out and restrictions on clean electricity production
credit.
Sec. 112009. Phase-out and restrictions on clean electricity investment
credit.
Sec. 112010. Repeal of transferability of clean fuel production credit.
Sec. 112011. Restrictions on carbon oxide sequestration credit.
Sec. 112012. Phase-out and restrictions on zero-emission nuclear power
production credit.
Sec. 112013. Termination of clean hydrogen production credit.
Sec. 112014. Phase-out and restrictions on advanced manufacturing
production credit.
Sec. 112015. Phase-out of credit for certain energy property.
Sec. 112016. Income from hydrogen storage, carbon capture added to
qualifying income of certain publicly
traded partnerships treated as
corporations.
Sec. 112017. Limitation on amortization of certain sports franchises.
Sec. 112018. Limitation on individual deductions for certain State and
local taxes, etc.
Sec. 112019. Excessive employee remuneration from controlled group
members and allocation of deduction.
Sec. 112020. Expanding application of tax on excess compensation within
tax-exempt organizations.
Sec. 112021. Modification of excise tax on investment income of certain
private colleges and universities.
Sec. 112022. Increase in rate of tax on net investment income of
certain private foundations.
Sec. 112023. Certain purchases of employee-owned stock disregarded for
purposes of foundation tax on excess
business holdings.
Sec. 112024. Unrelated business taxable income increased by amount of
certain fringe benefit expenses for which
deduction is disallowed.
Sec. 112025. Name and logo royalties treated as unrelated business
taxable income.
Sec. 112026. Exclusion of research income limited to publicly available
research.
Sec. 112027. Limitation on excess business losses of noncorporate
taxpayers.
Sec. 112028. 1-percent floor on deduction of charitable contributions
made by corporations.
Sec. 112029. Enforcement of remedies against unfair foreign taxes.
Sec. 112030. Reduction of excise tax on firearms silencers.
Sec. 112031. Modifications to de minimis entry privilege for commercial
shipments.
Sec. 112032. Limitation on drawback of taxes paid with respect to
substituted merchandise.
Part 2--Removing Taxpayer Benefits for Illegal Immigrants
Sec. 112101. Permitting premium tax credit only for certain
individuals.
Sec. 112102. Certain aliens treated as ineligible for premium tax
credit.
Sec. 112103. Disallowing premium tax credit during periods of Medicaid
ineligibility due to alien status.
Sec. 112104. Limiting Medicare coverage of certain individuals.
Sec. 112105. Excise tax on remittance transfers.
Sec. 112106. Social security number requirement for American
opportunity and lifetime learning credits.
Part 3--Preventing Fraud, Waste, and Abuse
Sec. 112201. Requiring Exchange verification of eligibility for health
plan.
Sec. 112202. Disallowing premium tax credit in case of certain coverage
enrolled in during special enrollment
period.
Sec. 112203. Eliminating limitation on recapture of advance payment of
premium tax credit.
Sec. 112204. Implementing artificial intelligence tools for purposes of
reducing and recouping improper payments
under Medicare.
Sec. 112205. Enforcement provisions with respect to COVID-related
employee retention credits.
Sec. 112206. Earned income tax credit reforms.
Sec. 112207. Task force on the termination of Direct File.
Sec. 112208. Postponement of tax deadlines for hostages and individuals
wrongfully detained abroad.
Sec. 112209. Termination of tax-exempt status of terrorist supporting
organizations.
Sec. 112210. Increase in penalties for unauthorized disclosures of
taxpayer information.
Sec. 112211. Restriction on regulation of contingency fees with respect
to tax returns, etc.
Subtitle D--Increase in Debt Limit
Sec. 113001. Modification of limitation on the public debt.
TITLE I--COMMITTEE ON AGRICULTURE
Subtitle A--Nutrition
SEC. 10001. THRIFTY FOOD PLAN.
Section 3(u) of the Food and Nutrition Act of 2008 (7 U.S.C.
2012(u)) is amended to read as follows:
``(u)(1) `Thrifty food plan' means the diet required to feed a
family of 4 persons consisting of a man and a woman 20 through 50, a
child 6 through 8, and a child 9 through 11 years of age, based on
relevant market baskets that shall only be changed pursuant to
paragraph (3). The cost of such diet shall be the basis for uniform
allotments for all households regardless of their actual composition.
The Secretary shall only adjust the cost of the diet as specified in
paragraphs (2) and (4).
``(2) Household Adjustments.--The Secretary shall make household-
size adjustments based on the following ratios of household size as a
percentage of the maximum 4-person allotment:
``(A) For a 1-person household, 30 percent.
``(B) For a 2-person household, 55 percent.
``(C) For a 3-person household, 79 percent.
``(D) For a 4-person household, 100 percent.
``(E) For a 5-person household, 119 percent.
``(F) For a 6-person household, 143 percent.
``(G) For a 7-person household, 158 percent.
``(H) For an 8-person household, 180 percent.
``(I) For a 9-person household, 203 percent.
``(J) For a 10-person household, 224 percent.
``(K) For households with more than 10 persons, such
adjustment for each additional person shall be 224 percent plus
the product of 21 percent and the difference in the number of
persons in the household and 10.
``(3) Reevaluation of market baskets.--
``(A) Evaluation.--Not earlier than October 1,
2028, and at not more frequently than 5-year intervals
thereafter, the Secretary may reevaluate the market
baskets of the thrifty food plan taking into
consideration current food prices, food composition
data, consumption patterns, and dietary guidance.
``(B) Notice.--Prior to any update of the market
baskets of the thrifty food plan based on a
reevaluation pursuant to subparagraph (A), the
methodology and results of any such revelation shall be
published in the Federal Register with an opportunity
for comment of not less than 60 days.
``(C) Cost neutrality.--The Secretary shall not
increase the cost of the thrifty food plan based on a
reevaluation or update under this paragraph.
``(4) Allowable cost adjustments.--On October 1 immediately
following the effective date of this paragraph and on each
October 1 thereafter, the Secretary shall--
``(A) adjust the cost of the thrifty food plan to
reflect changes in the Consumer Price Index for All
Urban Consumers, published by the Bureau of Labor
Statistics of the Department of Labor, for the most
recent 12-month period ending in June;
``(B) make cost adjustments in the thrifty food
plan for urban and rural parts of Hawaii and urban and
rural parts of Alaska to reflect the cost of food in
urban and rural Hawaii and urban and rural Alaska
provided such cost adjustment shall not exceed the rate
of increase described in the Consumer Price Index for
All Urban Consumers, published by the Bureau of Labor
Statistics of the Department of Labor, for the most
recent 12-month period ending in June; and
``(C) make cost adjustments in the separate thrifty
food plans for Guam and the Virgin Islands of the
United States to reflect the cost of food in those
States, but not to exceed the cost of food in the 50
States and the District of Columbia, provided that such
cost adjustment shall not exceed the rate of increase
described in the Consumer Price Index for All Urban
Consumers, published by the Bureau of Labor Statistics
of the Department of Labor, for the most recent 12-
month period ending in June.''.
SEC. 10002. ABLE BODIED ADULTS WITHOUT DEPENDENTS WORK REQUIREMENTS.
(a) Section 6(o)(3) of the Food and Nutrition Act of 2008 is
amended to read as follows:
``(3) Exception.--Paragraph (2) shall not apply to an
individual if the individual is--
``(A) under 18 or over 65 years of age;
``(B) medically certified as physically or mentally
unfit for employment;
``(C) a parent or other member of a household with
responsibility for a dependent child under 7 years of
age;
``(D) otherwise exempt under subsection (d)(2);
``(E) a pregnant woman;
``(F) currently homeless;
``(G) a veteran;
``(H) 24 years of age or younger and was in foster
care under the responsibility of a State on the date of
attaining 18 years of age or such higher age as the
State has elected under section 475(8)(B)(iii) of the
Social Security Act (42 U.S.C. 675(8)(B)(iii)); or
``(I) responsible for a dependent child 7 years of
age or older and is married to, and resides with, an
individual who is in compliance with the requirements
of paragraph (2).''.
(b) Sunset Provision.--The exceptions in subparagraphs (F) through
(H) shall cease to have effect on October 1, 2030.
SEC. 10003. ABLE BODIED ADULTS WITHOUT DEPENDENTS WAIVERS.
Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(o)) is amended--
(1) by amending paragraph (4)(A) to read as follows:
``(A) In general.--On the request of a State agency
and with the support of the chief executive officer of
the State, the Secretary may waive the applicability of
paragraph (2) for not more than 12 consecutive months
to any group of individuals in the State if the
Secretary makes a determination that the county, or
county-equivalent (as recognized by the Census Bureau)
in which the individuals reside has an unemployment
rate of over 10 percent.''; and
(2) in paragraph (6)(F) by striking ``8 percent'' and
inserting ``1 percent''.
SEC. 10004. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED ON
RECEIPT OF ENERGY ASSISTANCE.
(a) Allowance to Recipients of Energy Assistance.--
(1) Standard utility allowance.--Section 5(e)(6)(C)(iv)(I)
of the of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(e)(6)(C)(iv)(I)) is amended by inserting ``with an elderly
or disabled member'' after ``households''.
(2) Conforming amendments.--Section 2605(f)(2)(A) of the
Low-Income Home Energy Assistance Act is amended by inserting
``received by a household with an elderly or disabled member''
before ``, consistent with section 5(e)(6)(C)(iv)(I)''.
(b) Third-party Energy Assistance Payments.--Section 5(k)(4) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended--
(1) in subparagraph (A) by inserting ``without an elderly
or disabled member'' after ``household'' the 1st place it
appears; and
(2) in subparagraph (B) by inserting ``with an elderly or
disabled member'' after ``household'' the 1st place it appears.
SEC. 10005. RESTRICTIONS ON INTERNET EXPENSES.
Section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(e)(6)) is amended by adding at the end the following:
``(E) Restrictions on internet expenses.--Service
fees associated with internet connection, including,
but not limited to, monthly subscriber fees (i.e., the
base rate paid by the household each month in order to
receive service, which may include high-speed
internet), taxes and fees charged to the household by
the provider that recur on regular bills, the cost of
modem rentals, and fees charged by the provider for
initial installation, shall not be used in computing
the excess shelter expense deduction.''.
SEC. 10006. MATCHING FUNDS REQUIREMENTS.
(a) In General.--Section 4(a) of the Food and Nutrition Act of 2008
(7 U.S.C. 2013(a)) is amended--
(1) by striking ``(a) Subject to'' and inserting the
following:
``(a) Program.--
``(1) Establishment.--Subject to''; and
(2) by adding at the end the following:
``(2) Matching Funds Requirements.--
``(A) In general.--
``(i) Federal share.--Subject to subparagraph (B),
the Federal share of the cost of allotments described
in paragraph (1) in a fiscal year shall be--
``(I) for each of fiscal years 2026 and
2027, 100 percent; and
``(II) for fiscal year 2028 and each fiscal
year thereafter, 95 percent.
``(ii) State share.--Subject to subparagraph (B),
the State share of the cost of allotments described in
paragraph (1) in a fiscal year shall be--
``(I) for each of fiscal years 2026 and
2027, 0 percent; and
``(II) for fiscal year 2028 and each fiscal
year thereafter, 5 percent.
``(B) State quality control incentive.--Beginning in fiscal
year 2028, any State that has a payment error rate, as defined
in section 16, for the most recent complete fiscal year for
which data is available, of--
``(i) equal to or greater than 6 percent but less
than 8 percent, shall have its Federal share of the
cost of allotments described in paragraph (1) for the
current fiscal year equal 85 percent, and its State
share equal 15 percent;
``(ii) equal to or greater than 8 percent but less
than 10 percent, shall have its Federal share of the
cost of allotments described in paragraph (1) for the
current fiscal year equal 80 percent, and its State
share equal 20 percent; and
``(iii) equal to or greater than 10 percent, shall
have its Federal share of the cost of allotments
described in paragraph (1) for the current fiscal year
equal 75 percent, and its State share equal 25
percent.''.
(b) Rule of Construction.--The Secretary of Agriculture may not pay
towards the cost of allotments described in paragraph (1) of section
4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)), as
designated by subsection (a), an amount greater than the applicable
Federal share described in paragraph (2) of such section 4(a), as added
by subsection (a).
SEC. 10007. ADMINISTRATIVE COST SHARING.
Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(a)) is amended by striking ``50 per centum'' and inserting ``25
percent''.
SEC. 10008. GENERAL WORK REQUIREMENT AGE.
Section 6(d) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(d)) is amended--
(1) in paragraph (1)(A), in the matter preceding clause
(i), by striking ``over the age of 15 and under the age of 60''
and inserting ``over the age of 17 and under the age of 65'';
and
(2) in paragraph (2)--
(A) by striking ``child under age six'' and
inserting ``child under age seven''; and
(B) by striking ``between 1 and 6 years of age''
and inserting ``between 1 and 7 years of age''.
SEC. 10009. NATIONAL ACCURACY CLEARINGHOUSE.
Section 11(x)(2) of the Food and Nutrition Act of 2008 (7 U.S.C.
2020(x)(2)) is amended by adding at the end the following:
``(D) Data sharing to prevent other multiple
issuances.--A State agency shall use each indication of
multiple issuance, or each indication that an
individual receiving supplemental nutrition assistance
program benefits in 1 State has applied to receive
supplemental nutrition assistance program benefits in
another State, to prevent multiple issuances of other
Federal and State assistance program benefits that a
State agency administers through the integrated
eligibility system that the State uses to administer
the supplemental nutrition assistance program in the
State.''.
SEC. 10010. QUALITY CONTROL ZERO TOLERANCE.
Section 16(c)(1)(A)(ii) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(c)(1)(A)(ii)) is amended--
(1) in subclause (I), by striking ``and'' at the end;
(2) in subclause (II)--
(A) by striking ``fiscal year thereafter'' and
inserting ``of fiscal years 2015 through 2025''; and
(B) by striking the period at the end and inserting
``; and''; and
(3) by adding at the end the following:
``(III) for each fiscal year
thereafter, $0.''.
SEC. 10011. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT PROGRAM
REPEALER.
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is
amended by striking section 28 (7 U.S.C. 2036a).
SEC. 10012. ALIEN SNAP ELIGIBILITY.
Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(f)) is amended--
(1) in the 1st sentence--
(A) by striking ``No'' and inserting ``In addition
to the limitations on eligibility in the Personal
Responsibility and Work Opportunity Reconciliation Act
of 1996, no''; and
(B) by striking ``; or (C) an alien who entered the
United States prior to June 30, 1948, or such
subsequent date as is enacted by law, has continuously
maintained his or her residence in the United States
since then, and is not ineligible for citizenship, but
who is deemed to be lawfully admitted for permanent
residence as a result of an exercise of discretion by
the Attorney General pursuant to section 249 of the
Immigration and Nationality Act (8 U.S.C. 1259); or (D)
an alien who has qualified for conditional entry
pursuant to sections 207 and 208 of the Immigration and
Nationality Act (8 U.S.C. 1157 and 1158); or (E) an
alien who is lawfully present in the United States as a
result of an exercise of discretion by the Attorney
General for emergent reasons or reasons deemed strictly
in the public interest pursuant to section 212(d)(5) of
the Immigration and Nationality Act (8 U.S.C.
1182(d)(5)); or (F) an alien within the United States
as to whom the Attorney General has withheld
deportation pursuant to section 243 of the Immigration
and Nationality Act (8 U.S.C. 1253(h))''; and
(2) in the 2d sentence by striking ``clauses (B) through
(F)'' and inserting ``paragraph (2)(B)''.
SEC. 10012. EMERGENCY FOOD ASSISTANCE.
Section 203D(d)(5) of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7507(d)(5)) is amended by striking ``2024'' and inserting
``2031''.
Subtitle B--Investment in Rural America
SEC. 10101. SAFETY NET.
(a) Reference Price.--Section 1111(19) of the Agricultural Act of
2014 (7 U.S.C. 9011(19)) is amended to read as follows:
``(19) Reference price.--
``(A) In general.--Subject to subparagraphs (B) and
(C), the term `reference price', with respect to a
covered commodity for a crop year, means the following:
``(i) For wheat, $6.35 per bushel.
``(ii) For corn, $4.10 per bushel.
``(iii) For grain sorghum, $4.40 per
bushel.
``(iv) For barley, $5.45 per bushel.
``(v) For oats, $2.65 per bushel.
``(vi) For long grain rice, $16.90 per
hundredweight.
``(vii) For medium grain rice, $16.90 per
hundredweight.
``(viii) For soybeans, $10.00 per bushel.
``(ix) For other oilseeds, $23.75 per
hundredweight.
``(x) For peanuts, $630.00 per ton.
``(xi) For dry peas, $13.10 per
hundredweight.
``(xii) For lentils, $23.75 per
hundredweight.
``(xiii) For small chickpeas, $22.65 per
hundredweight.
``(xiv) For large chickpeas, $25.65 per
hundredweight.
``(xv) For seed cotton, $0.42 per pound.
``(B) Effectiveness.--Effective beginning with the
2031 crop year, the reference prices defined in
subparagraph (A) with respect to a covered commodity
shall equal the reference price in the previous crop
year multiplied by 1.005.
``(C) Limitation.--In no case shall a reference
price for a covered commodity exceed 115 percent of the
reference price for such covered commodity listed in
subparagraph (A).''.
(b) Base Acres.--Section 1112 of the Agricultural Act of 2014 (7
U.S.C. 9012) is amended--
(1) in subsection (d)(3)(A), by striking ``2023'' and
inserting ``2031''; and
(2) by adding at the end the following:
``(e) Additional Base Acres.--
``(1) In general.--As soon as practicable after the date of
enactment of this subsection, and notwithstanding subsection
(a), the Secretary shall provide notice to owners of eligible
farms pursuant to paragraph (4) and allocate to those eligible
farms a total of not more than an additional 30,000,000 base
acres in the manner provided in this subsection.
``(2) Content of notice.--The notice under paragraph (1)
shall include the following:
``(A) Information that the allocation is occurring.
``(B) Information regarding the eligibility of the
farm for an allocation of base acres under paragraph
(4).
``(C) Information regarding how an owner may appeal
a determination of ineligibility for an allocation of
base acres under paragraph (4) through an appeals
process established by the Secretary.
``(3) Opt-out.--An owner of a farm that is eligible to
receive an allocation of base acres may elect to not receive
that allocation by notifying the Secretary.
``(4) Eligibility.--
``(A) In general.--Subject to subparagraph (D),
effective beginning with the 2026 crop year, a farm is
eligible to receive an allocation of base acres if,
with respect to the farm, the amount described in
subparagraph (B) exceeds the amount described in
subparagraph (C).
``(B) 5-year average sum.--The amount described in
this subparagraph, with respect to a farm, is the sum
of--
``(i) the 5-year average of--
``(I) the acreage planted on the
farm to all covered commodities for
harvest, grazing, haying, silage or
other similar purposes for the 2019
through 2023 crop years; and
``(II) any acreage on the farm that
the producers were prevented from
planting during the 2019 through 2023
crop years to covered commodities
because of drought, flood, or other
natural disaster, or other condition
beyond the control of the producers, as
determined by the Secretary; plus
``(ii) the lesser of--
``(I) 15 percent of the total acres
on the farm; and
``(II) the 5-year average of--
``(aa) the acreage planted
on the farm to eligible
noncovered commodities for
harvest, grazing, haying,
silage, or other similar
purposes for the 2019 through
2023 crop years; and
``(bb) any acreage on the
farm that the producers were
prevented from planting during
the 2019 through 2023 crop
years to eligible noncovered
commodities because of drought,
flood, or other natural
disaster, or other condition
beyond the control of the
producers, as determined by the
Secretary.
``(C) Total number of base acres for covered
commodities.--The amount described in this
subparagraph, with respect to a farm, is the total
number of base acres for covered commodities on the
farm (excluding unassigned crop base), as in effect on
September 30, 2024.
``(D) Effect of no recent plantings of covered
commodities.--In the case of a farm for which the
amount determined under clause (i) of subparagraph (B)
is equal to zero, that farm shall be ineligible to
receive an allocation of base acres under this
subsection.
``(E) Acreage planted on the farm to eligible
noncovered commodities defined.--In this paragraph, the
term `acreage planted on the farm to eligible
noncovered commodities' means acreage planted on a farm
to commodities other than covered commodities, trees,
bushes, vines, grass, or pasture (including cropland
that was idle or fallow), as determined by the
Secretary.
``(5) Number of base acres.--Subject to paragraphs (4) and
(7), the number of base acres allocated to an eligible farm
shall--
``(A) be equal to the difference obtained by
subtracting the amount determined under subparagraph
(C) of paragraph (4) from the amount determined under
subparagraph (B) of that paragraph; and
``(B) include unassigned crop base.
``(6) Allocation of acres.--
``(A) Allocation.--The Secretary shall allocate the
number of base acres under paragraph (5) among those
covered commodities planted on the farm at any time
during the 2019 through 2023 crop years.
``(B) Allocation formula.--The allocation of
additional base acres for covered commodities shall be
in proportion to the ratio of--
``(i) the 5-year average of--
``(I) the acreage planted on the
farm to each covered commodity for
harvest, grazing, haying, silage, or
other similar purposes for the 2019
through 2023 crop years; and
``(II) any acreage on the farm that
the producers were prevented from
planting during the 2019 through 2023
crop years to that covered commodity
because of drought, flood, or other
natural disaster, or other condition
beyond the control of the producers, as
determined by the Secretary; to
``(ii) the 5-year average determined under
paragraph (4)(B)(i).
``(C) Inclusion of all 5 years in average.--For the
purpose of determining a 5-year acreage average under
subparagraph (B) for a farm, the Secretary shall not
exclude any crop year in which a covered commodity was
not planted.
``(D) Treatment of multiple planting or prevented
planting.--For the purpose of determining under
subparagraph (B) the acreage on a farm that producers
planted or were prevented from planting during the 2019
through 2023 crop years to covered commodities, if the
acreage that was planted or prevented from being
planted was devoted to another covered commodity in the
same crop year (other than a covered commodity produced
under an established practice of double cropping), the
owner may elect the covered commodity to be used for
that crop year in determining the 5-year average, but
may not include both the initial covered commodity and
the subsequent covered commodity.
``(E) Limitation.--The allocation of additional
base acres among covered commodities on a farm under
this paragraph may not result in a total number of base
acres for the farm in excess of the total number of
acres on the farm.
``(7) Reduction by the secretary.--In carrying out this
subsection, if the total number of eligible acres allocated to
base acres across all farms in the United States under this
subsection would exceed 30,000,000 acres, the Secretary shall
apply an across-the-board, pro-rata reduction to the number of
eligible acres to ensure the number of allocated base acres
under this subsection is equal to 30,000,000 acres.
``(8) Payment yield.--Beginning with crop year 2026, for
the purpose of making price loss coverage payments under
section 1116, the Secretary shall establish payment yields to
base acres allocated under this subsection equal to--
``(A) the payment yield established on the farm for
the applicable covered commodity; and
``(B) if no such payment yield for the applicable
covered commodity exists, a payment yield--
``(i) equal to the average payment yield
for the covered commodity for the county in
which the farm is situated; or
``(ii) determined pursuant to section
1113(c).
``(9) Treatment of new owners.--In the case of a farm for
which the owner on the date of enactment of this subsection was
not the owner for the 2019 through 2023 crop years, the
Secretary shall use the planting history of the prior owner or
owners of that farm for purposes of determining--
``(A) eligibility under paragraph (4);
``(B) eligible acres under paragraph (5); and
``(C) the allocation of acres under paragraph
(6).''.
(c) Producer Election.--Section 1115 of the Agricultural Act of
2014 (7 U.S.C. 9015) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1) by striking ``2023'' and inserting ``2031''; and
(2) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``2014 crop year or the 2019 crop year, as
applicable'' and inserting ``2014 crop year, 2019 crop
year, or 2026 crop year, as applicable'';
(B) in paragraph (1), by striking ``2014 crop year
or the 2019 crop year, as applicable,'' and inserting
``2014 crop year, 2019 crop year, or 2026 crop year, as
applicable,''; and
(C) in paragraph (2)--
(i) in subparagraph (A), by striking
``and'' at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) the same coverage for each covered commodity
on the farm for the 2026 through 2031 crop years as was
applicable for the 2024 crop year.''.
(d) Price Loss Coverage.--Section 1116 of the Agricultural Act of
2014 (7 U.S.C. 9016) is amended--
(1) in subsection (a)(2), in the matter preceding
subparagraph (A), by striking ``2023'' and inserting ``2031'';
(2) in subsection (c)(1)(B)--
(A) in the subparagraph heading, by striking
``2023'' and inserting ``2031''; and
(B) in the matter preceding clause (i), by striking
``2023'' and inserting ``2031'';
(3) in subsection (d), by striking ``2025'' and inserting
``2031''; and
(4) in subsection (g), by striking ``2012 through 2016''
each place it appears and inserting ``2017 through 2021''.
(e) Agriculture Risk Coverage.--Section 1117 of the Agricultural
Act of 2014 (7 U.S.C. 9017) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ``2023'' and inserting ``2031'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``for each of
the 2014 through 2024 crop years and 90 percent of the
benchmark revenue for each of the 2025 through 2031
crop years'' before the period at the end;
(B) by striking ``2023'' each place it appears and
inserting ``2031''; and
(C) in paragraph (4)(B), in the subparagraph
heading, by striking ``2023'' and inserting ``2031'';
(3) by amending subsection (d)(1)(B) to read as follows:
``(B)(i) for each of the crop years 2014 through
2024, 10 percent of the benchmark revenue for the crop
year applicable under subsection (c); and
``(ii) for each of the crop years 2025 through
2031, 12.5 percent of the benchmark revenue for the
crop year applicable under subsection (c).''; and
(4) in subsections (e), (g)(5), and (i)(5), by striking
``2023'' each place it appears and inserting ``2031''.
(f) Equitable Treatment of Certain Entities.--
(1) In general.--Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) is amended--
(A) in subsection (a)--
(i) by redesignating paragraph (5) as
paragraph (6); and
(ii) by inserting after paragraph (4) the
following:
``(5) Qualified pass-through entity.--The term `qualified
pass-through entity' means--
``(A) a partnership (within the meaning of
subchapter K of chapter 1 of the Internal Revenue Code
of 1986);
``(B) an S corporation (as defined in section 1361
of that Code);
``(C) a limited liability company that does not
affirmatively elect to be treated as a corporation; and
``(D) a joint venture or general partnership.'';
(B) in subsections (b) and (c), by striking
``except a joint venture or general partnership'' each
place it appears and inserting ``except a qualified
pass-through entity''; and
(C) in subsection (d), by striking ``subtitle B''
and all that follows through the end and inserting
``title I of the Agricultural Act of 2014.''.
(2) Attribution of payments.--Section 1001(e)(3)(B)(ii) of
the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is
amended--
(A) in the clause heading, by striking ``joint
ventures and general partnerships'' and inserting
``qualified pass-through entities'';
(B) by striking ``a joint venture or a general
partnership'' and inserting ``a qualified pass-through
entity'';
(C) by striking ``joint ventures and general
partnerships'' and inserting ``qualified pass-through
entities''; and
(D) by striking ``the joint venture or general
partnership'' and inserting ``the qualified pass-
through entity''.
(3) Persons actively engaged in farming.--Section
1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308-
1(b)(2)) is amended--
(A) subparagraphs (A) and (B), by striking ``in a
general partnership, a participant in a joint venture''
each place it appears and inserting ``a qualified pass-
through entity''; and
(B) in subparagraph (C), by striking ``a general
partnership, joint venture, or similar entity'' and
inserting ``a qualified pass-through entity or a
similar entity''.
(4) Joint and several liability.--Section 1001B(d) of the
Food Security Act of 1985 (7 U.S.C. 1308-2(d)) is amended by
striking ``partnerships and joint ventures'' and inserting
``qualified pass-through entities''.
(5) Exclusion from agi calculation.--Section 1001D(d) of
the Food Security Act of 1985 (7 U.S.C. 1308-3a(d)) is amended
by striking ``, general partnership, or joint venture'' each
place it appears.
(g) Payment Limitations.--Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) is amended--
(1) in subsection (b)--
(A) by striking ``The'' and inserting ``Subject to
subsection (i), the''; and
(B) by striking ``$125,000'' and inserting
``$155,000'';
(2) in subsection (c)--
(A) by striking ``The'' and inserting ``Subject to
subsection (i), the''; and
(B) by striking ``$125,000'' and inserting
``$155,000''; and
(3) by adding at the end the following:
``(i) Adjustment.--For the 2025 crop year and each crop year
thereafter, the Secretary shall annually adjust the amounts described
in subsections (b) and (c) for inflation based on the Consumer Price
Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.''.
(h) Adjusted Gross Income Limitation.--Section 1001D(b) of the Food
Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended--
(1) in paragraph (1), by striking ``paragraph (3)'' and
inserting ``paragraphs (3) and (4)''; and
(2) by adding at the end the following:
``(4) Exception for certain operations.--
``(A) Definitions.--In this paragraph:
``(i) Excepted payment or benefit.--The
term `excepted payment or benefit' means--
``(I) a payment or benefit under
subtitle E of title I of the
Agricultural Act of 2014 (7 U.S.C. 9081
et seq.);
``(II) a payment or benefit under
section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7
U.S.C. 7333); and
``(III) a payment or benefit
described in paragraph (2)(C) received
on or after October 1, 2024.
``(ii) Farming, ranching, or silviculture
activities.--The term `farming, ranching, or
silviculture activities' includes agritourism,
direct-to-consumer marketing of agricultural
products, the sale of agricultural equipment by
a person or legal entity that owns such
equipment, and other agriculture-related
activities, as determined by the Secretary.
``(B) Exception.--In the case of an excepted
payment or benefit, the limitation established by
paragraph (1) shall not apply to a person or legal
entity during a crop, fiscal, or program year, as
appropriate, if greater than or equal to 75 percent of
the average gross income of the person or legal entity
derives from farming, ranching, or silviculture
activities.''.
(i) Marketing Loans.--
(1) Availability of nonrecourse marketing assistance loans
for loan commodities.--Section 1201(b)(1) of the Agricultural
Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking
``2023'' and inserting ``2031''.
(2) Loan rates for nonrecourse marketing assistance
loans.--Section 1202 of the Agricultural Act of 2014 (7 U.S.C.
9032) is amended--
(A) in subsection (b)--
(i) in the subsection heading, by striking
``2023'' and inserting ``2025''; and
(ii) in the matter preceding paragraph (1),
by striking ``2023'' and inserting ``2025'';
(B) by redesignating subsection (c) and (d) as
subsections (d) and (e), respectively;
(C) by inserting after subsection (b) the
following:
``(c) 2026 Through 2031 Crop Years.--For purposes of each of the
2026 through 2031 crop years, the loan rate for a marketing assistance
loan under section 1201 for a loan commodity shall be equal to the
following:
``(1) In the case of wheat, $3.72 per bushel.
``(2) In the case of corn, $2.42 per bushel.
``(3) In the case of grain sorghum, $2.42 per bushel.
``(4) In the case of barley, $2.75 per bushel.
``(5) In the case of oats, $2.20 per bushel.
``(6) In the case of upland cotton, $0.55 per pound.
``(7) In the case of extra long staple cotton, $1.00 per
pound.
``(8) In the case of long grain rice, $7.70 per
hundredweight.
``(9) In the case of medium grain rice, $7.70 per
hundredweight.
``(10) In the case of soybeans, $6.82 per bushel.
``(11) In the case of other oilseeds, $11.10 per
hundredweight for each of the following kinds of oilseeds:
``(A) Sunflower seed.
``(B) Rapeseed.
``(C) Canola.
``(D) Safflower.
``(E) Flaxseed.
``(F) Mustard seed.
``(G) Crambe.
``(H) Sesame seed.
``(I) Other oilseeds designated by the Secretary.
``(12) In the case of dry peas, $6.87 per hundredweight.
``(13) In the case of lentils, $14.30 per hundredweight.
``(14) In the case of small chickpeas, $11.00 per
hundredweight.
``(15) In the case of large chickpeas, $15.40 per
hundredweight.
``(16) In the case of graded wool, $1.60 per pound.
``(17) In the case of nongraded wool, $0.55 per pound.
``(18) In the case of mohair, $5.00 per pound.
``(19) In the case of honey, $1.50 per pound.
``(20) In the case of peanuts, $390 per ton.'';
(D) in subsection (d) (as so redesignated), by
striking ``(a)(11) and (b)(11)'' and inserting
``(a)(11), (b)(11), and (c)(11)''; and
(E) by amending subsection (e) (as so redesignated)
to read as follows:
``(e) Special Rule for Seed Cotton and Corn.--
``(1) In general.--For purposes of section 1116(b)(2) and
paragraphs (1)(B)(ii) and (2)(A)(ii)(II) of section 1117(b),
the loan rate shall be deemed to equal--
``(A) for seed cotton, $0.30 per pound; and
``(B) for corn, $3.30 per bushel.
``(2) Effect.--Nothing in this subsection authorizes any
nonrecourse marketing assistance loan under this subtitle for
seed cotton.''.
(3) Payment of cotton storage costs.--Section 1204(g) of
the Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended--
(A) by striking ``Effective'' and inserting the
following:
``(1) Crop years 2014 through 2025.--Effective'';
(B) in paragraph (1) (as so designated), by
striking ``2023'' and inserting ``2025''; and
(C) by adding at the end the following:
``(2) Payment of cotton storage costs.--Effective for each
of the 2026 through 2031 crop years, the Secretary shall make
cotton storage payments for upland cotton and extra long staple
cotton available in the same manner as the Secretary provided
storage payments for the 2006 crop of upland cotton, except
that the payment rate shall be equal to the lesser of--
``(A) the submitted tariff rate for the current
marketing year; and
``(B) in the case of storage in--
``(i) California or Arizona, a payment rate
of $4.90; and
``(ii) any other State, a payment rate of
$3.00.''.
(4) Loan deficiency payments.--
(A) Continuation.--Section 1205(a)(2)(B) of the
Agricultural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is
amended by striking ``2023'' and inserting ``2031''.
(B) Payments in lieu of ldps.--Section 1206 of the
Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in
subsections (a) and (d), by striking ``2023'' each
place it appears and inserting ``2031''.
(5) Special competitive provisions for extra long staple
cotton.--Section 1208(a) of the Agricultural Act of 2014 (7
U.S.C. 9038(a)) is amended, in the matter preceding paragraph
(1), by striking ``2026'' and inserting ``2032''.
(6) Availability of recourse loans.--Section 1209 of the
Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in
subsections (a)(2), (b), and (c), by striking ``2023'' each
place it appears and inserting ``2031''.
(j) Repayment of Marketing Loans.--Section 1204 of the Agricultural
Act of 2014 (7 U.S.C. 9034) is amended--
(1) in subsection (b)--
(A) by redesignating paragraph (1) as subparagraph
(A) and indenting appropriately;
(B) in the matter preceding subparagraph (A) (as so
redesignated), by striking ``The Secretary'' and
inserting the following:
``(1) In general.--The Secretary''; and
(C) by striking paragraph (2) and inserting the
following:
``(B)(i) in the case of long grain rice and medium
grain rice, the prevailing world market price for the
commodity, as determined and adjusted by the Secretary
in accordance with this section; or
``(ii) in the case of upland cotton, the lowest
prevailing world market price for the commodity, as
determined and adjusted by the Secretary in accordance
with this section, during the 30-day period following
the day on which the producer repays the marketing
assistance loan.
``(2) Refund for upland cotton.--In the case of a repayment
for a marketing assistance loan for upland cotton at a rate
described in paragraph (1)(B)(ii), the Secretary shall provide
to the producer a refund (if any) in an amount equal to the
difference between the lowest prevailing world market price
described in that paragraph and the repayment amount.'';
(2) in subsection (c)--
(A) by striking the period at the end and inserting
``; and'';
(B) by striking ``at the loan rate'' and inserting
the following: ``at a rate that is the lesser of--
``(1) the loan rate''; and
(C) by adding at the end the following:
``(2) the prevailing world market price for the commodity,
as determined and adjusted by the Secretary in accordance with
this section.'';
(3) in subsection (d)--
(A) in paragraph (1), by striking ``and medium
grain rice'' and inserting ``medium grain rice, and
extra long staple cotton'';
(B) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(C) in the matter preceding subparagraph (A) (as so
redesignated), by striking ``For purposes'' and
inserting the following:
``(1) In general.--For purposes''; and
(D) by adding at the end the following:
``(2) Upland cotton.--In the case of upland cotton, for any
period when price quotations for Middling (M) 1\3/32\-inch
cotton are available, the formula under paragraph (1)(A) shall
be based on the average of the 3 lowest-priced growths that are
quoted.''; and
(4) in subsection (e)--
(A) in the subsection heading, by inserting ``Extra
Long Staple Cotton,'' after ``Upland Cotton,'';
(B) in paragraph (2)--
(i) in the paragraph heading, by 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) Extra long staple cotton.--The prevailing world
market price for extra long staple cotton determined under
subsection (d)--
``(A) shall be adjusted to United States quality
and location, with the adjustment to include the
average costs to market the commodity, including
average transportation costs, as determined by the
Secretary; and
``(B) may be further adjusted, during the period
beginning on the date of enactment of this paragraph
and ending on July 31, 2032, if the Secretary
determines the adjustment is necessary--
``(i) to minimize potential loan
forfeitures;
``(ii) to minimize the accumulation of
stocks of extra long staple cotton by the
Federal Government;
``(iii) to ensure that extra long staple
cotton produced in the United States can be
marketed freely and competitively, both
domestically and internationally; and
``(iv) to ensure an appropriate transition
between current-crop and forward-crop price
quotations, except that the Secretary may use
forward-crop price quotations prior to July 31
of a marketing year only if--
``(I) there are insufficient
current-crop price quotations; and
``(II) the forward-crop price
quotation is the lowest such quotation
available.''.
(k) Economic Adjustment Assistance for Textile Mills.--Section
1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) is amended
by striking paragraph (2) and inserting the following:
``(2) Value of assistance.--The value of the assistance
provided under paragraph (1) shall be--
``(A) for the period beginning on August 1, 2013,
and ending on July 31, 2025, 3 cents per pound; and
``(B) beginning on August 1, 2025, 5 cents per
pound.''.
(l) Sugar Program Updates.--
(1) Loan rate modifications.--Section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272)
is amended--
(A) in subsection (a)--
(i) in paragraph (4), by striking ``and''
at the end;
(ii) in paragraph (5), by striking ``2023
crop years.'' and inserting ``2024 crop years;
and''; and
(iii) by adding at the end the following:
``(6) 24.00 cents per pound for raw cane sugar for each of
the 2025 through 2031 crop years.'';
(B) in subsection (b)--
(i) in paragraph (1), by striking ``and''
at the end;
(ii) in paragraph (2), by striking ``2023
crop years.'' and inserting ``2024 crop years;
and''; and
(iii) by adding at the end the following:
``(3) a rate that is equal to 136.55 percent of the loan
rate per pound of raw cane sugar under subsection (a)(6) for
each of the 2025 through 2031 crop years.''; and
(C) in subsection (i), by striking ``2023'' and
inserting ``2031''.
(2) Adjustments to commodity credit corporation storage
rates.--Section 167 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7287) is amended--
(A) by striking subsection (a) and inserting the
following:
``(a) In General.--Notwithstanding any other provision of law, for
the 2025 crop year and each subsequent crop year, the Commodity Credit
Corporation shall establish rates for the storage of forfeited sugar in
an amount that is not less than--
``(1) in the case of refined sugar, 34 cents per
hundredweight per month; and
``(2) in the case of raw cane sugar, 27 cents per
hundredweight per month.''; and
(B) in subsection (b)--
(i) in the subsection heading, by striking
``Subsequent'' and inserting ``Prior''; and
(ii) by striking ``and subsequent'' and
inserting ``through 2024''.
(3) Modernizing beet sugar allotments.--
(A) Sugar estimates.--Section 359b(a)(1) of the
Agricultural Adjustment Act of 1938 (7 U.S.C.
1359bb(a)(1)) is amended by striking ``2023'' and
inserting ``2031''.
(B) Allocation to processors.--Section 359c(g)(2)
of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359cc(g)(2)) is amended--
(i) by striking ``In the case'' and
inserting the following:
``(A) In general.--Except as provided in
subparagraph (B), in the case''; and
(ii) by adding at the end the following:
``(B) Exception.--If the Secretary makes an upward
adjustment under paragraph (1)(A), in adjusting
allocations among beet sugar processors, the Secretary
shall give priority to beet sugar processors with
available sugar.''.
(C) Timing of reassignment.--Section 359e(b)(2) of
the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359ee(b)(2)) is amended--
(i) by redesignating subparagraphs (A)
through (C) as clauses (i) through (iii),
respectively, and indenting appropriately;
(ii) in the matter preceding clause (i) (as
so redesignated), by striking ``If the
Secretary determines that a sugar beet
processor who has been allocated a share of the
beet sugar allotment will be unable to market
that allocation'' and inserting the following:
``(A) In general.--If the Secretary determines that
a sugar beet processor who has been allocated a share
of the beet sugar allotment for the crop year will be
unable to market that allocation''; and
(iii) by adding at the end the following:
``(B) Timing.--In carrying out subparagraph (A),
the Secretary shall--
``(i) make an initial determination
following the publication of the World
Agricultural Supply and Demand Estimates (in
this subparagraph referred to as `WASDE')
approved by the World Agricultural Outlook
Board for the month of January that is
applicable to the crop year for which a
determination under subparagraph (A) is made;
and
``(ii) provide for an initial reassignment
under subparagraph (A)(i) not later than 30
days after the date of the announcement of such
WASDE.''.
(4) Reallocations of tariff-rate quota shortfall.--Section
359k of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359kk) is amended by adding at the end the following:
``(c) Reallocation.--
``(1) Initial reallocation.--Subject to paragraph (3),
following the establishment of the tariff-rate quotas under
subsection (a) for a quota year, the United States Trade
Representative, in consultation with the Secretary, shall--
``(A) determine which countries do not intend to
fulfill their allocation for the quota year; and
``(B) reallocate any forecasted shortfall in the
fulfillment of the tariff-rate quotas as soon as
practicable.
``(2) Subsequent reallocation.--Subject to paragraph (3),
not later than March 1 of a quota year, the United States Trade
Representative, in consultation with the Secretary, shall
reallocate any additional forecasted shortfall in the
fulfillment of the tariff-rate quotas for raw cane sugar
established under subsection (a)(1) for that quota year.
``(3) Cessation of effectiveness.--Paragraphs (1) and (2)
shall cease to be in effect if--
``(A) the Agreement Suspending the Countervailing
Duty Investigation on Sugar from Mexico, signed
December 19, 2014, is terminated; and
``(B) no countervailing duty order under subtitle A
of title VII of the Tariff Act of 1930 (19 U.S.C. 1671
et seq.) is in effect with respect to sugar from
Mexico.
``(d) Refined Sugar.--
``(1) Definition of domestic sugar industry.--In this
subsection, the term `domestic sugar industry' means domestic--
``(A) sugar beet producers and processors;
``(B) producers and processors of sugar cane; and
``(C) refiners of raw cane sugar.
``(2) Study required.--
``(A) In general.--Not later than 180 days after
the date of enactment of this subsection, the Secretary
shall conduct a study on whether the establishment of
additional terms and conditions with respect to refined
sugar imports is necessary and appropriate.
``(B) Elements.--In conducting the study under
subparagraph (A), the Secretary shall examine the
following:
``(i) The need for--
``(I) defining `refined sugar' as
having a minimum polarization of 99.8
degrees or higher;
``(II) establishing a standard for
color- or reflectance-based units for
refined sugar such as those utilized by
the International Commission of Uniform
Methods of Sugar Analysis;
``(III) prescribing specifications
for packaging type for refined sugar;
``(IV) prescribing specifications
for transportation modes for refined
sugar;
``(V) requiring affidavits or other
evidence that sugar imported as refined
sugar will not undergo further refining
in the United States;
``(VI) prescribing appropriate
terms and conditions to avoid the
circumvention of Federal laws relating
to any sugar imports; and
``(VII) establishing other
definitions, terms and conditions, or
other requirements.
``(ii) The potential impact of
modifications described in each of subclauses
(I) through (VII) of clause (i) on the domestic
sugar industry.
``(iii) Whether, based on the needs
described in clause (i) and the impact
described in clause (ii), the establishment of
additional terms and conditions is appropriate.
``(C) Consultation.--In conducting the study under
subparagraph (A), the Secretary shall consult with
representatives of the domestic sugar industry, users
of refined sugar, and relevant State and Federal
agencies.
``(D) Report.--Not later than 1 year after the date
of enactment of this subsection, the Secretary shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
describes the findings of the study conducted under
subparagraph (A).
``(3) Establishment of additional terms and conditions
permitted.--
``(A) In general.--Based on the findings in the
report submitted under paragraph (2)(D), and after
providing notice to the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, the
Secretary may issue regulations in accordance with
subparagraph (B) to establish additional terms and
conditions with respect to refined sugar imports that
are necessary and appropriate.
``(B) Promulgation of regulations.--The Secretary
may issue regulations under subparagraph (A) if the
regulations--
``(i) do not have an adverse impact on the
domestic sugar industry; and
``(ii) are consistent with the requirements
of this part, section 156 of the Federal
Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7272), and obligations under
international trade agreements that have been
approved by Congress.''.
(5) Clarification of tariff-rate quota adjustments.--
Section 359k(b)(1) of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359kk(b)(1)) is amended, in the matter preceding
subparagraph (A)--
(A) by striking ``Before'' and inserting
``Notwithstanding any other provision of law, before'';
and
(B) by striking ``if there is an'' and inserting
``for the sole purpose of responding directly to an''.
(6) Period of effectiveness.--Section 359l(a) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is
amended by striking ``2023'' and inserting ``2031''.
(m) Dairy Policy Updates.--
(1) Dairy margin coverage production history.--
(A) Definition.--Section 1401(8) of the
Agricultural Act of 2014 (7 U.S.C. 9051(8)) is amended
by striking ``when the participating dairy operation
first registers to participate in dairy margin
coverage''.
(B) Production history of participating dairy
operations.--Section 1405 of the Agricultural Act of
2014 (7 U.S.C. 9055) is amended--
(i) by amending subsection (a) to read as
follows:
``(a) Production History.--Except as provided in subsection (b),
the production history of a dairy operation for dairy margin coverage
is equal to the highest annual milk marketings of the participating
dairy operation during any one of the 2021, 2022, or 2023 calendar
years.''; and
(ii) by amending subsection (b) to read as
follows:
``(b) Election by New Dairy Operations.--In the case of a
participating dairy operation that has been in operation for less than
a year, the participating dairy operation shall elect 1 of the
following methods for the Secretary to determine the production history
of the participating dairy operation:
``(1) The volume of the actual milk marketings for the
months the participating dairy operation has been in operation
extrapolated to a yearly amount.
``(2) An estimate of the actual milk marketings of the
participating dairy operation based on the herd size of the
participating dairy operation relative to the national rolling
herd average data published by the Secretary.''.
(2) Dairy margin coverage payments.--Section 1406(a)(1)(C)
of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is
amended by striking ``5,000,000'' and inserting ``6,000,000''
each place it appears.
(3) Premiums for dairy margins.--
(A) Tier i.--Section 1407(b) of the Agricultural
Act of 2014 (7 U.S.C. 9057(b)) is amended--
(i) in the heading, by striking
``5,000,000'' and inserting ``6,000,000''; and
(ii) in paragraph (1), by striking
``5,000,000'' and inserting ``6,000,000''.
(B) Tier ii.--Section 1407(c) of the Agricultural
Act of 2014 (7 U.S.C. 9057(c)) is amended--
(i) in the heading, by striking
``5,000,000'' and inserting ``6,000,000''; and
(ii) in paragraph (1), by striking
``5,000,000'' and inserting ``6,000,000''.
(C) Premium discounts.--Section 1407(g) of the
Agricultural Act of 2014 (7 U.S.C. 9057(g)) is
amended--
(i) in paragraph (1)--
(I) by striking ``2019 through
2023'' and inserting ``2026 through
2031''; and
(II) by striking ``January 2019''
and inserting ``January 2026''; and
(ii) in paragraph (2), by striking ``2023''
each place it appears and inserting ``2031''.
(4) Duration.--Section 1409 of the Agricultural Act of 2014
(7 U.S.C. 9059) is amended by striking ``2025'' and inserting
``2031''.
(n) Suspension of Permanent Price Support Authority.--Section 1602
of the Agricultural Act of 2014 (7 U.S.C. 9092) is amended by striking
``2023'' each place it appears and inserting ``2031''.
(o) Implementation.--Section 1614(c) of the Agricultural Act of
2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following:
``(5) Fiscal year 2025 reconciliation.--The Secretary shall
make available to the Farm Service Agency to carry out section
10101 of the Act titled `An Act to provide for reconciliation
pursuant to title II of H. Con. Res. 14', and the amendments
made by that section, $50,000,000, to remain available until
expended, of which--
``(A) not less than $5,000,000 shall be used to
carry out paragraphs (3) and (4) of subsection (b);
``(B) $3,000,000 shall be used for activities
described in paragraph (3)(A) of this subsection;
``(C) $3,000,000 shall be used for activities
described in paragraph (3)(B) of this subsection; and
``(D) $10,000,000 shall be used to--
``(i) carry out mandatory surveys of dairy
production cost and product yield information
to be reported by manufacturers required to
report under section 273 of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637b), for all
products processed in the same facility or
facilities; and
``(ii) publish the results of such surveys
biennially.''.
(p) Livestock Safety Net Updates.--
(1) In general.--Section 1501(b) of the Agricultural Act of
2014 (7 U.S.C. 9081(b)) is amended--
(A) by amending paragraph (2) to read as follows:
``(2) Payment rates.--
``(A) Losses due to predation.--Indemnity payments
to an eligible producer on a farm under paragraph
(1)(A) shall be made at a rate of 100 percent of the
market value of the affected livestock on the
applicable date, as determined by the Secretary.
``(B) Losses due to adverse weather or disease.--
Indemnity payments to an eligible producer on a farm
under subparagraph (B) or (C) of paragraph (1) shall be
made at a rate of 75 percent of the market value of the
affected livestock on the applicable date, as
determined by the Secretary.
``(C) Determination of market value.--In
determining the market value described in subparagraphs
(A) and (B), the Secretary may consider the ability of
eligible producers to document regional price premiums
for affected livestock that exceed the national average
market price for those livestock.
``(D) Applicable date defined.--In this paragraph,
the term `applicable date' means, with respect to
livestock, as applicable--
``(i) the day before the date of death of
the livestock; or
``(ii) the day before the date of the event
that caused the harm to the livestock that
resulted in a reduced sale price.''; and
(B) by adding at the end the following:
``(5) Additional payment for unborn livestock.--
``(A) In general.--In the case of unborn livestock
death losses incurred on or after January 1, 2024, the
Secretary shall make an additional payment to eligible
producers on farms that have incurred such losses in
excess of the normal mortality due to a condition
specified in paragraph (1).
``(B) Payment rate.--Additional payments under
subparagraph (A) shall be made at a rate--
``(i) determined by the Secretary; and
``(ii) less than or equal to 85 percent of
the payment rate established with respect to
the lowest weight class of the livestock, as
determined by the Secretary, acting through the
Administrator of the Farm Service Agency.
``(C) Payment amount.--The amount of a payment to
an eligible producer that has incurred unborn livestock
death losses shall be equal to the payment rate
determined under subparagraph (B) multiplied, in the
case of livestock described in--
``(i) subparagraph (A), (B), or (F) of
subsection (a)(4), by 1;
``(ii) subparagraph (D) of such subsection,
by 2;
``(iii) subparagraph (E) of such
subsection, by 12; and
``(iv) subparagraph (G) of such subsection,
by the average number of birthed animals (for
one gestation cycle) for the species of each
such livestock, as determined by the Secretary.
``(D) Unborn livestock death losses defined.--In
this paragraph, the term `unborn livestock death
losses' means losses of any livestock described in
subparagraph (A), (B), (D), (E), (F), or (G) of
subsection (a)(4) that was gestating on the date of the
death of the livestock.''.
(2) Livestock forage disaster program.--Section
1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (7 U.S.C.
9081(c)(3)(D)(ii)(I)) is amended--
(A) by striking ``1 monthly payment'' and inserting
``2 monthly payments''; and
(B) by striking ``county for at least 8
consecutive'' and inserting the following: ``county for
not less than--
``(aa) 4 consecutive weeks
during the normal grazing
period for the county, as
determined by the Secretary,
shall be eligible to receive
assistance under this paragraph
in an amount equal to 1 monthly
payment using the monthly
payment rate determined under
subparagraph (B); or
``(bb) any of the 7 of the
previous 8 consecutive''.
(3) Emergency assistance for livestock, honey bees, and
farm-raised fish.--Section 1501(d) of the Agricultural Act of
2014 (7 U.S.C. 9081(d)) is amended by adding at the end the
following:
``(5) Assistance for losses due to bird depredation.--
``(A) Payments.--Eligible producers on a farm of
farm-raised fish, including fish grown as food for
human consumption, shall be eligible to receive
payments under this subsection to aid in the reduction
of losses due to piscivorous birds.
``(B) Payment rate.--
``(i) In general.--The payment rate for
payments under subparagraph (B) shall be
determined by the Secretary, taking into
account--
``(I) costs associated with the
deterrence of piscivorous birds;
``(II) the value of lost fish and
revenue due to bird depredation; and
``(III) costs associated with
disease loss from bird depredation.
``(ii) Minimum rate.--The payment rate for
payments under subparagraph (B) shall be not
less than $600 per acre of farm-raised fish.
``(C) Payment amount.--The amount of a payment
under subparagraph (B) shall be the product obtained by
multiplying--
``(i) the applicable payment rate under
subparagraph (C); and
``(ii) 85 percent of the total number of
acres of farm-raised fish farms that the
eligible producer has in production for the
calendar year.''.
(4) Tree assistance program.--Section 1501(e) of the
Agricultural Act of 2014 (7 U.S.C. 9081(e)) is amended--
(A) in paragraph (2)(B), by striking ``15 percent
(adjusted for normal mortality)'' and inserting
``normal mortality''; and
(B) in paragraph (3)--
(i) in subparagraph (A)(i), by striking
``15 percent mortality (adjusted for normal
mortality)'' and inserting ``normal
mortality''; and
(ii) in subparagraph (B)--
(I) by striking ``50'' and
inserting ``65''; and
(II) by striking ``15 percent
damage or mortality (adjusted for
normal tree damage and mortality)'' and
inserting ``normal tree damage or
mortality''.
(q) Emergency Assistance for Honeybees.--In determining honeybee
colony losses eligible for assistance under section 1501(d) of the
Agricultural Act of 2014 (7 U.S.C. 9081(d)), the Secretary shall
utilize a normal mortality rate of 15 percent.
(r) Beginning and Veteran Farmer and Rancher Benefit.--
(1) Definitions.--
(A) In general.--Section 502(b) of the Federal Crop
Insurance Act (7 U.S.C. 1502(b)) is amended--
(i) in paragraph (3), by striking ``5'' and
inserting ``10''; and
(ii) in paragraph (14)(B)--
(I) in clause (i), by adding ``or''
at the end after the semicolon;
(II) in clause (ii), by striking
``5 years; or'' and inserting ``10
years.''; and
(III) in clause (iii), by striking
``5-year'' and inserting ``10-year''.
(B) Conforming amendment.--Section 522(c)(7) of the
Federal Crop Insurance Act (7 U.S.C. 1522(c)(7)) is
amended by striking subparagraph (F).
(2) Increase in assistance.--Section 508(e)(8) of the
Federal Crop Insurance Act (7 U.S.C. 1508(e)(8)) is amended--
(A) by striking ``Notwithstanding'' and inserting
the following:
``(A) In general.--Notwithstanding'';
(B) in subparagraph (A) (as so designated), by
striking ``is 10 percentage points greater than'' and
inserting ``is the number of percentage points
specified in subparagraph (B) greater than''; and
(C) by adding at the end the following:
``(B) 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 or veteran farmer or rancher
participates as a beginning farmer or rancher
or veteran farmer or rancher, respectively, in
the applicable policy or plan of insurance, 15
percentage points.
``(ii) For the third reinsurance year that
a beginning farmer or rancher or veteran farmer
or rancher participates as a beginning farmer
or rancher or veteran farmer or rancher,
respectively, in the applicable policy or plan
of insurance, 13 percentage points.
``(iii) For the fourth reinsurance year
that a beginning farmer or rancher or veteran
farmer or rancher participates as a beginning
farmer or rancher or veteran farmer or rancher,
respectively, in the applicable policy or plan
of insurance, 11 percentage points.
``(iv) For each of the fifth through tenth
reinsurance years that a beginning farmer or
rancher or veteran farmer or rancher
participates as a beginning farmer or rancher
or veteran farmer or rancher, respectively, in
the applicable policy or plan of insurance, 10
percentage points.''.
(s) Area-based Crop Insurance Coverage and Affordability.--
(1) Coverage level.--Section 508(c)(4) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)(4)) is amended--
(A) by amending subparagraph (A)(ii) to read as
follows:
``(ii) may be purchased at any level not to
exceed--
``(I) in the case of the individual
yield or revenue coverage, 85 percent;
``(II) in the case of individual
yield or revenue coverage aggregated
across multiple commodities, 90
percent; and
``(III) in the case of area yield
or revenue coverage (as determined by
the Corporation), 95 percent.''; and
(B) in subparagraph (C)--
(i) in clause (ii), by striking ``14'' and
inserting ``10''; and
(ii) in clause (iii)(I), by striking ``86''
and inserting ``90''.
(2) Premium cost share.--Section 508(e)(2)(H)(i) of the
Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is
amended by striking ``65'' and inserting ``80''.
(t) Premium Support.--Section 508(e)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1508(e)(2)) is amended--
(1) in subparagraph (C)(i), by striking ``64'' and
inserting ``69'';
(2) in subparagraph (D)(i), by striking ``59'' and
inserting ``64'';
(3) in subparagraph (E)(i), by striking ``55'' and
inserting ``60'';
(4) in subparagraph (F)(i), by striking ``48'' and
inserting ``51''; and
(5) in subparagraph (G)(i), by striking ``38'' and
inserting ``41''.
(u) Administrative and Operating Expense Adjustments.--Section
508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended
by adding at the end the following:
``(10) Additional expenses.--
``(A) In general.--Beginning with the 2026
reinsurance year and for each reinsurance year
thereafter, in addition to the terms and conditions of
the Standard Reinsurance Agreement, to cover additional
expenses for loss adjustment procedures, the
Corporation shall pay an additional administrative and
operating expense subsidy to approved insurance
providers for eligible contracts.
``(B) Payment amount.--In the case of an eligible
contract, the payment to an approved insurance provider
required under subparagraph (A) shall be the amount
equal to 6 percent of the net book premium.
``(C) Definitions.--In this paragraph:
``(i) Eligible state.--The term `eligible
State' means a State--
``(I) identified in State Group 2
or State Group 3 (as defined in the
Standard Reinsurance Agreement for
reinsurance year 2026); and
``(II) in which, with respect to an
insurance year, the loss ratio for
eligible contracts is greater than 120
percent of the total net book premium
written by all approved insurance
providers.
``(ii) Eligible contracts.--The term
`eligible contract'--
``(I) means a crop insurance
contract entered into by an approved
insurance provider in an eligible
State; and
``(II) does not include a contract
for--
``(aa) catastrophic risk
protection under subsection
(b);
``(bb) an area-based plan
of insurance or similar plan of
insurance, as determined by the
Corporation; or
``(cc) a policy under which
an approved insurance provider
does not incur loss adjustment
expenses, as determined by the
Corporation.
``(11) Specialty crops.--
``(A) Minimum reimbursement.--Beginning with the
2026 reinsurance year and for each reinsurance year
thereafter, the rate of reimbursement to approved
insurance providers and agents for administrative and
operating expenses with respect to crop insurance
contracts covering agricultural commodities described
in section 101 of title I of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note) shall
be equal to or greater than the percent that is the
greater of the following:
``(i) 17 percent of the premium used to
define loss ratio.
``(ii) The percent of the premium used to
define loss ratio that is otherwise applicable
for the reinsurance year under the terms of the
Standard Reinsurance Agreement in effect for
the reinsurance year.
``(B) Other contracts.--In carrying out
subparagraph (A), the Corporation shall not reduce,
with respect to any reinsurance year, the amount or the
rate of reimbursement to approved insurance providers
and agents under the Standard Reinsurance Agreement
described in clause (ii) of such subparagraph for
administrative and operating expenses with respect to
contracts covering agricultural commodities that are
not subject to such subparagraph.
``(C) Administration.--The requirements of this
paragraph and the adjustments made pursuant to this
paragraph shall not be considered a renegotiation under
paragraph (8)(A).
``(12) A&O inflation adjustment.--
``(A) In general.--Subject to subparagraph (B), for
the 2026 reinsurance year, and each reinsurance year
thereafter, the Corporation shall increase the total
administrative and operating expense reimbursements
otherwise required under the Standard Reinsurance
Agreement in effect for the reinsurance year in order
to account for inflation, in a manner consistent with
the increases provided with respect to the 2011 through
2015 reinsurance years under the enclosure included in
Risk Management Agency Bulletin numbered MGR-10-007 and
dated June 30, 2010.
``(B) Special rule for 2026 reinsurance year.--The
increase under subparagraph (A) for the 2026
reinsurance year shall not exceed the percentage change
for the preceding reinsurance year included in the
Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Department of
Labor.
``(C) Administration.--An increase under
subparagraph (A)--
``(i) shall apply with respect to all
contracts covering agricultural commodities
that were subject to an increase during the
period of the 2011 through 2015 reinsurance
years under the enclosure referred to in that
subparagraph; and
``(ii) shall not be considered to be a
renegotiation of the Standard Reinsurance
Agreement for purposes of paragraph (8)(A).''.
(v) Program Compliance and Integrity.--Section 515(l)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1515(l)(2)) is amended by striking
``than'' and all that follows through the period at the end and
inserting the following: ``than--
``(A) $4,000,000 for each of fiscal years 2009
through 2025; and
``(B) $6,000,000 for fiscal year 2026 and each
subsequent fiscal year.''.
(w) Reviews, Compliance, and Integrity.--Section 516(b)(2)(C)(i) of
the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended
by striking ``each fiscal year'' and inserting ``each of fiscal years
2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal
year thereafter''.
(x) Poultry Insurance Pilot Program.--Section 523 of the Federal
Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the
following:
``(j) Poultry Insurance Pilot Program.--
``(1) In general.--Notwithstanding subsection (a)(2), the
Corporation shall establish a pilot program under which
contract poultry growers, including growers of broilers and
laying hens, may elect to receive index-based insurance from
extreme weather-related risk resulting in increased utility
costs (including costs of natural gas, propane, electricity,
water, and other appropriate costs, as determined by the
Corporation) associated with poultry production.
``(2) Stakeholder engagement.--The Corporation shall engage
with poultry industry stakeholders in establishing the pilot
program under paragraph (1).
``(3) Location.--The pilot program established under
paragraph (1) shall be conducted in a sufficient number of
counties to provide a comprehensive evaluation of the
feasibility, effectiveness, and demand among producers in the
top poultry producing States, including Alabama, Arkansas, and
Mississippi, as determined by the Corporation.
``(4) Approval of policy or plan.--Notwithstanding section
508(l), the Board shall approve a policy or plan of insurance
based on the pilot program under paragraph (1)--
``(A) in accordance with section 508(h); and
``(B) not later than 24 months after the date of
enactment of this subsection.''.
SEC. 10102. CONSERVATION.
(a) Grassroots Source Water Protection Program.--Section 1240O(b)
of the Food Security Act of 1985 (16 U.S.C. 3839bb-2(b)) is amended--
(1) in paragraph (1), by striking ``2023'' and inserting
``2031''; and
(2) in paragraph (3)--
(A) in subparagraph (A), by striking the ``and'' at
the end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) $1,000,000 beginning in fiscal year 2026, to
remain available until expended.''.
(b) Voluntary Public Access and Habitat Incentive Program.--Section
1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb-5(f)(1))
is amended--
(1) by striking the ``and'' after ``2023,''; and
(2) by inserting ``, and $10,000,000 for each of fiscal
years 2025 through 2031'' before the period at the end.
(c) Feral Swine Eradication and Control Pilot Program.--Section
2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351
note; Public Law 115-334) is amended--
(1) by striking ``and'' and inserting a comma; and
(2) by inserting ``, and $15,000,000 for each of fiscal
years 2025 through 2031'' before the period at the end.
(d) Funding.--
(1) In general.--Section 1241(a) of the Food Security Act
of 1985 (16 U.S.C. 3841(a)) is amended--
(A) in paragraph (2), by striking subparagraphs (A)
through (F) and inserting the following:
``(A) $625,000,000 for fiscal year 2026;
``(B) $650,000,000 for fiscal year 2027;
``(C) $675,000,000 for fiscal year 2028;
``(D) $700,000,000 for fiscal year 2029;
``(E) $700,000,000 for fiscal year 2030; and
``(F) $700,000,000 for fiscal year 2031.''; and
(B) in paragraph (3)--
(i) in subparagraph (A), by striking
clauses (i) through (v) and inserting the
following:
``(i) $2,655,000,000 for fiscal year 2026;
``(ii) $2,855,000,000 for fiscal year 2027;
``(iii) $3,255,000,000 for fiscal year
2028;
``(iv) $3,255,000,000 for fiscal year 2029;
``(v) $3,255,000,000 for fiscal year 2030;
and
``(vi) $3,255,000,000 for fiscal year 2031;
and''; and
(ii) in subparagraph (B), by striking
clauses (i) through (v) and inserting the
following:
``(i) $1,300,000,000 for fiscal year 2026;
``(ii) $1,325,000,000 for fiscal year 2027;
``(iii) $1,350,000,000 for fiscal year
2028;
``(iv) $1,375,000,000 for fiscal year 2029;
``(v) $1,375,000,000 for fiscal year 2030;
and
``(vi) $1,375,000,000 for fiscal year
2031.''.
(2) Regional conservation partnership program.--Section
1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is
amended by striking subsection (a) and inserting the following:
``(a) Availability of Funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out the program,
to the maximum extent practicable--
``(1) $425,000,000 for fiscal year 2026;
``(2) $450,000,000 for fiscal year 2027;
``(3) $450,000,000 for fiscal year 2028;
``(4) $450,000,000 for fiscal year 2029;
``(5) $450,000,000 for fiscal year 2030; and
``(6) $450,000,000 for fiscal year 2031.''.
(3) Watershed protection and flood prevention.--Section 15
of the Watershed Protection and Flood Prevention Act (16 U.S.C.
1012a) is amended--
(A) by striking ``$50,000,000 for fiscal year
2019'' and inserting ``$150,000,000 for fiscal year
2026''; and
(B) by inserting ``, to remain available until
expended'' before the period at the end.
(4) Rescission.--The unobligated balances of amounts
appropriated by section 21001(a) of Public Law 117-169 (136
Stat. 2015) are rescinded.
SEC. 10103. TRADE.
Section 203(f) of the Agricultural Trade Act of 1978 (7 U.S.C.
5623(f)) is amended--
(1) in paragraph (2)--
(A) by striking ``For each of fiscal years'' and
inserting ``(A) in general.--For each of fiscal
years''; and
(B) by adding at the end the following new
subparagraph:
``(B) Fiscal years 2026 through 2031.--For each of
fiscal years 2026 through 2031, of the funds of, or an
equal value of commodities owned by, the Commodity
Credit Corporation, the Secretary shall use to carry
out this section $489,500,000, to remain available
until expended.'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively;
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) Allocations for fiscal years 2026 through 2031.--
``(A) In general.--For each of fiscal years 2026
through 2031, the Secretary shall allocate funds to
carry out this section in accordance with the
following:
``(i) Market access program.--For market
access activities authorized under subsection
(b), of the funds of, or an equal value of
commodities owned by, the Commodity Credit
Corporation, not less than $400,000,000 for
each fiscal year.
``(ii) Foreign market development
cooperator program.--To carry out subsection
(c), of the funds of, or an equal value of
commodities owned by, the Commodity Credit
Corporation, not less than $69,000,000 for each
fiscal year.
``(iii) E (kika) de la garza emerging
markets program.--To provide assistance under
subsection (d), of the funds of, or an equal
value of commodities owned by, the Commodity
Credit Corporation, not more than $8,000,000
for each fiscal year.
``(iv) Technical assistance for specialty
crops.--To carry out subsection (e), of the
funds of, or an equal value of the commodities
owned by, the Commodity Credit Corporation,
$9,000,000 for each fiscal year.
``(v) Priority trade fund.--
``(I) In general.--In addition to
the amounts allocated under clauses (i)
through (iv), and notwithstanding any
limitations in those clauses, as
determined by the Secretary, for 1 or
more programs under this section for
authorized activities to access,
develop, maintain, and expand markets
for United States agricultural
commodities, $3,500,000 for each fiscal
year.
``(II) Considerations.--In
allocating funds made available under
subclause (I), the Secretary may
consider providing a greater allocation
to 1 or more programs under this
section for which the amounts requested
under applications exceed available
funding for the 1 or more programs.
``(B) Reallocation.--Any funds allocated under
clauses (i) through (iv) of subparagraph (A) that
remain unobligated one year after the end of the fiscal
year in which they are first made available shall be
reallocated to the priority trade fund under
subparagraph (A)(v). To the maximum extent practicable,
the Secretary shall allocate such reallocated funds to
support exports of those types of United States
agricultural commodities eligible for assistance under
the program for which the funds were originally
allocated under subparagraph (A).''; and
(4) in paragraph (6), as so redesignated, by inserting ``,
paragraph (4)(A)(v),'' after ``paragraph (3)(A)(v)''.
SEC. 10104. RESEARCH.
(a) Urban, Indoor, and Other Emerging Agricultural Production
Research, Education, and Extension Initiative.--Section 1672E(d)(1)(B)
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925g(d)(1)(B)) is amended by striking ``fiscal year 2024, to remain
available until expended'' and inserting ``each of fiscal years 2024
through 2031''.
(b) Foundation for Food and Agriculture Research.--Section
7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A))
is amended adding at the end the following:
``(iv) Further funding.--Of the funds of
the Commodity Credit Corporation, the Secretary
shall transfer to the Foundation to carry out
this section, to remain available until
expended, not later than 30 days after the date
of enactment of this clause, $37,000,000.''.
(c) Scholarships for Students at 1890 Institutions.--Section 1446
of the National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3222a) is amended--
(1) in subsection (a)--
(A) by striking paragraph (3); and
(B) by redesignating paragraph (4) as paragraph
(3); and
(2) in subsection (b), by amending paragraph (1) to read as
follows:
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall make available to carry
out this section $60,000,000 for fiscal year 2026, to remain
available until expended.''.
(d) Assistive Technology Program for Farmers With Disabilities.--
Section 1680(c) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5933(c)) is amended--
(1) in the subsection heading, by striking ``Authorization
of Appropriations'' and inserting ``Funding'';
(2) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(3) by inserting before paragraph (2), as so redesignated,
the following:
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section $8,000,000, to remain available until expended.''; and
(4) in paragraph (2), as so redesignated--
(A) in the paragraph heading, by striking ``In
general'' and inserting ``Authorization of
appropriations''; and
(B) by striking ``Subject to paragraph (2)'' and
inserting ``Subject to paragraph (3)''.
(e) Specialty Crop Research Initiative.--Section 412(k)(1)(B) of
the Agricultural Research, Extension, and Education Reform Act of 1998
(7 U.S.C. 7632(k)(1)(B)) is amended by striking ``section $80,000,000
for fiscal year 2014'' and inserting the following: ``section--
``(i) $80,000,000 for each of fiscal years
2014 through 2025; and
``(ii) $175,000,000 for fiscal year 2026''.
(f) Research Facilities Act.--Section 6 of the Research Facilities
Act (7 U.S.C. 390d) is amended--
(1) in the section heading by striking ``authorization of
appropriations'' and inserting ``funding''; and
(2) in subsection (a)--
(A) by striking ``(a) In General.--Subject to'' and
inserting the following:
``(a) In General.--
``(1) Authorization of appropriations.--Subject to''; and
(B) by adding at the end the following:
``(2) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall make available to carry
out the competitive grant program under section 4, $125,000,000
for each fiscal year beginning with fiscal year 2026.''.
SEC. 10105. SECURE RURAL SCHOOLS; FORESTRY.
(a) Extension of Certain Provisions of Secure Rural Schools and
Community Self-Determination Act of 2000.--
(1) Secure payments for states and counties containing
federal land.--
(A) Secure payments.--Section 101 of the Secure
Rural Schools and Community Self-Determination Act of
2000 (16 U.S.C. 7111) is amended--
(i) in subsections (a) and (b), by striking
``2023'' each place it appears and inserting
``2026''; and
(ii) by adding at the end the following:
``(e) Special Rule for Fiscal Year 2024 Payments.--
``(1) State payment.--If an eligible county in a State that
will receive a share of the State payment for fiscal year 2024
has already received, or will receive, a share of the 25-
percent payment for fiscal year 2024 distributed to the State
before the date of enactment of this subsection--
``(A) if the amount of the State payment exceeds
the amount of the 25-percent payment, the amount of the
State payment shall be reduced by the amount of the
share of the eligible county of the 25-percent payment;
or
``(B) if the amount of the State payment is less
than or equal to the amount of the 25-percent payment,
the eligible county--
``(i) may retain the amount of the share of
the eligible county of the 25-percent payment;
and
``(ii) if so retained, such amount shall be
treated as if it were received by the county as
a State payment for purposes of this Act.
``(2) County payment.--If an eligible county that will
receive a county payment for fiscal year 2024 has already
received a 50-percent payment for fiscal year 2024--
``(A) if the amount of the county payment exceeds
the amount of the 50-percent payment, the amount of the
county payment shall be reduced by the amount of the
50-percent payment; or
``(B) if the amount of the county payment is less
than or equal to the amount of the 50-percent payment,
the eligible county--
``(i) may retain the amount of the 50-
percent payment; and
``(ii) if so retained, such amount shall be
treated as if it were received as a county
payment for purposes of this Act.
``(3) Timely payment.--Not later than 90 days after the
date of enactment of this subsection, the Secretary of the
Treasury shall make all payments under this title for fiscal
year 2024.''.
(B) Distribution of payments to eligible
counties.--Section 103(d)(2) of the Secure Rural
Schools and Community Self-Determination Act of 2000
(16 U.S.C. 7113(d)(2)) is amended by striking ``2023''
and inserting ``2026''.
(2) Payments to states and counties.--Section 102 of the
Secure Rural Schools and Community Self-Determination Act of
2000 (16 U.S.C. 7112) is amended--
(A) in subsection (b)--
(i) in paragraph (1), by adding at the end
the following:
``(E) Payments for each of fiscal years 2024 and
2025.--The election otherwise required by subparagraph
(A) shall not apply for each of fiscal years 2024 and
2025.''; and
(ii) in paragraph (2), by adding at the end
the following:
``(C) Fiscal years 2024 and 2025.--The election
described in paragraph (1)(A) applicable to a county in
fiscal year 2023 shall be effective for each of fiscal
years 2024 and 2025.''; and
(B) in subsection (d)--
(i) in paragraph (1), by adding at the end
the following:
``(G) Payments for each of fiscal years 2024 and
2025.--The election made by an eligible county under
subparagraph (B), (C), or (D) for fiscal year 2023, or
deemed to be made by the county under paragraph (3)(B)
for that fiscal year, shall be effective for each of
fiscal years 2024 and 2025.''; and
(ii) in paragraph (3), by adding at the end
the following:
``(E) Payments for each of fiscal years 2024 and
2025.--This paragraph does not apply for each of fiscal
years 2024 and 2025.''.
(3) Extension of authority to conduct special projects on
federal land.--
(A) Committee on composition waiver authority.--
Section 205(d)(6)(C) of the Secure Rural Schools and
Community Self-Determination Act of 2000 (16 U.S.C.
7125(d)(6)(C)) is amended by striking ``2023'' and
inserting ``2026''.
(B) Extension of authority.--Section 208 of the
Secure Rural Schools and Community Self-Determination
Act of 2000 (16 U.S.C. 7128) is amended--
(i) in subsection (a), by striking ``2025''
and inserting ``2028''; and
(ii) in subsection (b), by striking
``2026'' and inserting ``2029''.
(4) Extension of authority to expend county funds.--Section
305 of the Secure Rural Schools and Community Self-
Determination Act of 2000 (16 U.S.C. 7144) is amended--
(A) in subsection (a), by striking ``2025'' and
inserting ``2028''; and
(B) in subsection (b), by striking ``2026'' and
inserting ``2029''.
(b) Resource Advisory Committee Pilot Program Extension.--Section
205(g) of the Secure Rural Schools and Community Self-Determination Act
of 2000 (16 U.S.C. 7125(g)) is amended--
(1) in paragraph (5), by striking ``2023'' and inserting
``2026''; and
(2) by striking paragraph (6).
(c) Technical Corrections.--
(1) Resource advisory committees.--Section 205 of the
Secure Rural Schools and Community Self-Determination Act of
2000 (16 U.S.C. 7125) is amended--
(A) in subsection (c)--
(i) in paragraph (1), by striking
``concerned,'' and inserting ``concerned''; and
(ii) in paragraph (3), by striking ``the
date of the enactment of this Act'' and
inserting ``October 3, 2008''; and
(B) in subsection (d)(4), by striking ``to extent''
and inserting ``to the extent''.
(2) Use of project funds.--Section 206(b)(2) of the Secure
Rural Schools and Community Self-Determination Act of 2000 (16
U.S.C. 7126(b)(2)) is amended by striking ``concerned,'' and
inserting ``concerned''.
(d) Rescissions.--
(1) Competitive grants for non-federal forest landowners.--
All of the unobligated balances of the funds made available
under each of paragraphs (1) through (4) of section 23002(a) of
subtitle D of Public Law 117-169 are rescinded.
(2) State and private forestry conservation programs.--Of
the unobligated balances available under section 23003(a)(1) of
subtitle D of Public Law 117-169, $100,719,676 are rescinded.
SEC. 10106. ENERGY.
(a) Biobased Markets Program.--Section 9002(k)(1) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8102(k)(1)) is
amended by striking ``2024'' and inserting ``2031''.
(b) Bioenergy Program for Advanced Biofuels.--Section 9005(g)(1)(F)
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8105(g)(1)(F)) is amended by striking ``2024'' and inserting ``2031''.
SEC. 10107. HORTICULTURE.
(a) Plant Pest and Disease Management and Disaster Prevention.--
Section 420(f) of the Plant Protection Act (7 U.S.C. 7721) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) by redesignating paragraph (6) as paragraph (7);
(3) by inserting after paragraph (5) the following:
``(6) $75,000,000 for each of fiscal years 2018 through
2025; and''; and
(4) in paragraph (7) (as so redesignated), by striking
``$75,000,000 for fiscal year 2018'' and inserting
``$90,000,000 for fiscal year 2026''.
(b) Specialty Crop Block Grants.--Section 101(l)(1) of the
Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
Law 108-465) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) by redesignating subparagraph (E) as subparagraph (F);
(3) by inserting after subparagraph (D) the following:
``(E) $85,000,000 for each of fiscal years 2018
through 2025; and''; and
(4) in subparagraph (F) (as so redesignated), by striking
``$85,000,000 for fiscal year 2018'' and inserting
``$100,000,000 for fiscal year 2026''.''.
(c) Organic Production and Market Data Initiative.--Section
7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 5925c(d)(1)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(D) $10,000,000 for the period of fiscal years
2026 through 2031.''.
(d) Modernization and Improvement of International Trade Technology
Systems and Data Collection Funding.--Section 2123(c)(4) of the Organic
Foods Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the
matter preceding subparagraph (A), by striking ``and $1,000,000 for
fiscal year 2024'' and inserting ``, $1,000,000 for fiscal years 2024
and 2025, and $5,000,000 for fiscal year 2026''.
(e) National Organic Certification Cost-share Program.--Section
10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 6523(d)(1)(C)) is amended by striking ``for each of fiscal years
2022 through 2024'' and inserting ``for each of fiscal years 2022
through 2031''.
(f) Multiple Crop and Pesticide Use Survey.--Section 10109(c)(1) of
the Agriculture Improvement Act of 2018 (Public Law 115-334; 132 Stat.
4906) is amended to read as follows:
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section--
``(A) $500,000 for fiscal year 2019, to remain
available until expended;
``(B) $100,000 for fiscal year 2024, to remain
available until expended; and
``(C) $5,000,000 for fiscal year 2026, to remain
available until expended.''.
SEC. 10108. MISCELLANEOUS.
(a) Animal Disease Prevention and Management.--Section 10409A(d)(1)
of the Animal Health Protection Act (7 U.S.C. 8308a(d)(1)) is amended
to read as follows:
``(1) Mandatory funding.--
``(A) Fiscal years 2023 through 2025.--Of the funds
of the Commodity Credit Corporation, the Secretary
shall make available to carry out this section
$30,000,000 for each of fiscal years 2023 through 2025,
of which not less than $18,000,000 shall be made
available for each of those fiscal years to carry out
subsection (b).
``(B) Fiscal years 2026 through 2030.--Of the funds
of the Commodity Credit Corporation, the Secretary
shall make available to carry out this section
$233,000,000 for each of fiscal years 2026 through
2030, of which--
``(i) not less than $10,000,000 shall be
made available for each such fiscal year to
carry out subsection (a);
``(ii) not less than $70,000,000 shall be
made available for each such fiscal year to
carry out subsection (b); and
``(iii) not less than $153,000,000 shall be
made available for each such fiscal year to
carry out subsection (c).
``(C) Subsequent fiscal years.--Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available to carry out this section $75,000,000 for
fiscal year 2031 and each fiscal year thereafter, of
which not less than $45,000,000 shall be made available
for each of those fiscal years to carry out subsection
(b).''.
(b) Sheep Production and Marketing Grant Program.--Section 209(c)
of the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is
amended--
(1) by striking ``$2,000,000 for fiscal year 2019, and'';
and
(2) by inserting ``and $3,000,000 for fiscal year 2026''
after ``fiscal year 2024''.
(c) Miscellaneous Trust Funds.--
(1) Pima agriculture cotton trust fund.--Section 12314 of
the Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law
113-79) is amended--
(A) in subsection (b), in the matter preceding
paragraph (1), by striking ``2024'' and inserting
``2031''; and
(B) in subsection (h), by striking ``2024'' and
inserting ``2031''.
(2) Agriculture wool apparel manufacturers trust fund.--
Section 12315 of the Agricultural Act of 2014 (7 U.S.C. 7101
note; Public Law 113-79) is amended by striking ``2024'' each
place it appears and inserting ``2031''.
(3) Wool research and promotion.--Section 12316(a) of the
Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113-
79) is amended by striking ``2024'' and inserting ``2031''.
(4) Emergency citrus disease research and development trust
fund.--Section 12605(d) of the Agriculture Improvement Act of
2018 (7 U.S.C. 7632 note; Public Law 115-334) is amended by
striking ``2024'' and inserting ``2031''.
TITLE II--COMMITTEE ON ARMED SERVICES
SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
IMPROVING THE QUALITY OF LIFE FOR MILITARY PERSONNEL.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense for fiscal year
2025, out of any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2029--
(1) $230,480,000 for restoration and modernization costs
under the Marine Corps Barracks 2030 initiative;
(2) $119,000,000 for base operating support costs under the
Marine Corps Barracks 2030 initiative;
(3) $1,000,000,000 for Army, Navy, Air Force, and Space
Force sustainment, restoration, and modernizations of military
unaccompanied housing;
(4) $2,000,000,000 for the Defense Health Program;
(5) $2,900,000,000 to supplement the basic allowance for
housing payable to members of the Armed Forces, notwithstanding
section 403 of title 37, United States Code;
(6) $50,000,000 for bonuses, special pays, and incentive
pays for members of the Armed Forces pursuant to titles 10 and
37, United States Code;
(7) $10,000,000 for the Defense Activity for Non-
Traditional Education Support's Online Academic Skills Course
program for members of the Armed Forces;
(8) $100,000,000 for tuition assistance for members of the
Armed Forces pursuant to title 10, United States Code;
(9) $100,000,000 for child care fee assistance for members
of the Armed Forces under part II of chapter 88 of title 10,
United States Code;
(10) $590,000,000 to increase the Temporary Lodging Expense
Allowance under chapter 8 of title 37, United States Code, to
21 days;
(11) $100,000,000 for Department of Defense Impact Aid
payments to local educational agencies under section 2008 of
title 10, United States Code;
(12) $10,000,000 for military spouse professional licensure
under section 1784 of title 10, United States Code;
(13) $6,000,000 for Armed Forces Retirement Home
facilities; and
(14) $100,000,000 for the Defense Community Infrastructure
Program.
(b) Temporary Increase in Percentage of Value of Authorized
Investment in Certain Privatized Military Housing Projects.--
(1) In general.--During the period beginning on the date of
the enactment of this section and ending on September 30, 2029,
the Secretary concerned shall apply--
(A) paragraph (1) of subsection (c) of section 2875
of title 10, United States Code, by substituting ``60
percent'' for ``33\ 1/3\ percent''; and
(B) paragraph (2) of such subsection by
substituting ``60 percent'' for ``45 percent''.
(2) Secretary concerned defined.--In this subsection, the
term ``Secretary concerned'' has the meaning given such term in
section 101 of title 10, United States Code.
(c) Temporary Authority for Acquisition or Construction of
Privatized Military Unaccompanied Housing.--Section 2881a of title 10,
United States Code, is amended--
(1) by striking the heading and inserting ``Temporary
authority for acquisition or construction of privatized
military unaccompanied housing'';
(2) by striking ``Secretary of the Navy'' each place it
appears and inserting ``Secretary concerned'';
(3) by striking ``under the pilot projects'' each place it
appears and inserting ``pursuant to this section'';
(4) in subsection (a)--
(A) by striking the heading and inserting ``In
General''; and
(B) by striking ``carry out not more than three
pilot projects under the authority of this section or
another provision of this subchapter to use the private
sector'' and inserting ``use the authority under this
subchapter to enter into contracts with appropriate
private sector entities'';
(5) in subsection (c), by striking ``privatized housing''
and inserting ``privatized housing units'';
(6) by redesignating subsection (f) as subsection (e); and
(7) in subsection (e) (as so redesignated)--
(A) by striking ``under the pilot programs'' and
inserting ``under this section''; and
(B) by striking ``September 30, 2009'' and
inserting ``September 30, 2029''.
SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
SHIPBUILDING.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $250,000,000 for the expansion of accelerated Training
in Defense Manufacturing program;
(2) $250,000,000 for United States production of turbine
generators for shipbuilding industrial base;
(3) $450,000,000 for United States additive manufacturing
for wire production and machining capacity for shipbuilding
industrial base;
(4) $492,000,000 for next-generation shipbuilding
techniques;
(5) $85,000,000 for United States-made steel plate for
shipbuilding industrial base;
(6) $50,000,000 for machining capacity for naval propellers
for shipbuilding industrial base;
(7) $110,000,000 for rolled steel and fabrication facility
for shipbuilding industrial base;
(8) $400,000,000 for expansion of collaborative campus for
naval shipbuilding;
(9) $450,000,000 for application of autonomy and artificial
intelligence to naval shipbuilding;
(10) $500,000,000 for the adoption of advanced
manufacturing techniques in the maritime 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 2027;
(17) $5,400,000,000 for two additional Guided Missile
Destroyer (DDG) ships;
(18) $160,000,000 for advanced procurement for Landing Ship
Medium;
(19) $1,803,941,000 for procurement of Landing Ship Medium;
(20) $295,000,000 for development of a second Landing Craft
Utility shipyard and production of additional Landing Craft
Utility;
(21) $100,000,000 for the procurement of commercial
logistics ships;
(22) $600,000,000 for the lease or purchase of new ships
through the National Defense Sealift Fund;
(23) $2,725,000,000 for the procurement of T-AO oilers;
(24) $500,000,000 for cost-to-complete for rescue and
salvage ships;
(25) $300,000,000 for production of ship-to-shore
connectors;
(26) $695,000,000 for the implementation of a multi-ship
amphibious warship contract;
(27) $80,000,000 for accelerated development of vertical
launch system reloading at sea;
(28) $250,000,000 for expansion of Navy corrosion control
programs;
(29) $159,000,000 for leasing of ships for Marine Corps
operations;
(30) $1,534,000,000 for expansion of small unmanned surface
vessel production;
(31) $1,800,000,000 for expansion of medium unmanned
surface vessel production;
(32) $1,300,000,000 for expansion of unmanned underwater
vehicle production;
(33) $188,360,000 for the development and testing of
maritime robotic autonomous systems and enabling technologies;
(34) $174,000,000 for the development of a Test Resource
Management Center robotic autonomous systems proving ground;
(35) $250,000,000 for the development, production, and
integration of wave-powered unmanned underwater vehicles;
(36) $2,100,000,000 for San Antonio-class Amphibious
Transport Dock (LPD); and
(37) $3,700,000,000 for America-class Amphibious Assault
Ship (LHA).
SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
INTEGRATED AIR AND MISSILE DEFENSE.
(a) Next Generation Missile Defense Technologies.--In addition to
amounts otherwise available, there are appropriated to the Secretary of
Defense for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, to remain available until September 30, 2029--
(1) $183,000,000 for Missile Defense Agency special
programs;
(2) $250,000,000 for development and testing of directed
energy capabilities by the Under Secretary for Research and
Engineering;
(3) $300,000,000 for classified military space superiority
programs run by the Strategic Capabilities Office;
(4) $500,000,000 for national security space launch
infrastructure;
(5) $2,000,000,000 for air moving target indicator military
satellites;
(6) $400,000,000 for expansion of Multi-Service Advanced
Capability Hypersonic Test Bed program;
(7) $5,600,000,000 for development of space-based and boost
phase intercept capabilities;
(8) $2,400,000,000 for the development of military non-
kinetic missile defense effects; and
(9) $7,200,000,000 for the development, procurement, and
integration of military space-based sensors.
(b) Layered Homeland Defense.--In addition to amounts otherwise
available, there are appropriated to the Secretary of Defense for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2029--
(1) $2,200,000,000 for acceleration of hypersonic defense
systems;
(2) $800,000,000 for accelerated development and deployment
of next-generation intercontinental ballistic missile defense
systems;
(3) $408,000,000 for Army space and strategic missile test
range infrastructure restoration and modernization in the
United States Indo-Pacific Command area of operations west of
the international dateline;
(4) $1,975,000,000 for improved ground-based missile
defense radars; and
(5) $530,000,000 for the design and construction of Missile
Defense Agency missile instrumentation range safety ship.
SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
MUNITIONS AND DEFENSE SUPPLY CHAIN RESILIENCY.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense for fiscal year
2025, out of any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2029--
(1) $400,000,000 for the development, production, and
integration of Navy and Air Force long-range anti-ship
missiles;
(2) $380,000,000 for production capacity expansion for Navy
and Air Force long-range anti-ship missiles;
(3) $490,000,000 for the development, production, and
integration of Navy and Air Force long-range air-to-surface
missiles;
(4) $94,000,000 for the development, production, and
integration of alternative Navy and Air Force long-range air-
to-surface missiles;
(5) $630,000,000 for the development, production, and
integration of long-range Navy air defense and anti-ship
missiles;
(6) $688,000,000 for the development, production, and
integration of long-range multi-service cruise missiles;
(7) $250,000,000 for production capacity expansion and
supplier base strengthening of long-range multi-service cruise
missiles;
(8) $70,000,000 for the development, production, and
integration of short-range Navy and Marine Corps anti-ship
missiles;
(9) $100,000,000 for the development of an anti-ship seeker
for short-range Army ballistic missiles;
(10) $175,000,000 for production capacity expansion for
next-generation Army medium-range ballistic missiles;
(11) $50,000,000 for the mitigation of diminishing
manufacturing sources for medium-range air-to-air missiles;
(12) $250,000,000 for the procurement of medium-range air-
to-air missiles;
(13) $225,000,000 for the expansion of production capacity
for medium-range air-to-air missiles;
(14) $50,000,000 for the development of second sources for
components of short-range air-to-air missiles;
(15) $325,000,000 for production capacity improvements for
air-launched anti-radiation missiles;
(16) $50,000,000 for the accelerated development of Army
next-generation medium-range anti-ship ballistic missiles;
(17) $114,000,000 for the production of Army next-
generation medium-range ballistic missiles;
(18) $300,000,000 for the production of Army medium-range
ballistic missiles;
(19) $85,000,000 for the accelerated development of Army
long-range ballistic missiles;
(20) $400,000,000 for the production of heavyweight
torpedoes;
(21) $200,000,000 for the development, procurement, and
integration of commercial heavyweight torpedoes;
(22) $70,000,000 for the improvement of heavyweight torpedo
maintenance activities;
(23) $200,000,000 for the production of lightweight
torpedoes;
(24) $500,000,000 for the development, procurement, and
integration of maritime mines;
(25) $50,000,000 for the development, procurement, and
integration of new underwater explosives;
(26) $55,000,000 for the development, procurement, and
integration of lightweight multi-mission torpedoes;
(27) $80,000,000 for the production of sonobuoys;
(28) $150,000,000 for the development, procurement, and
integration of air-delivered long-range maritime mines;
(29) $61,000,000 for the acceleration of Navy expeditionary
loitering munitions deployment;
(30) $50,000,000 for the acceleration of one-way attack
unmanned aerial systems with advanced autonomy;
(31) $1,000,000,000 for the expansion of the one-way attack
unmanned aerial systems industrial base;
(32) $3,500,000,000 for grants made pursuant to the
Industrial Base Fund established under section 4817 of title
10, United States Code;
(33) $1,000,000,000 for grants and purchase commitments
made pursuant to the Industrial Base Fund established under
section 4817 of title 10, United States Code;
(34) $200,000,000 for investments in solid rocket motor
industrial base through the Industrial Base Fund established
under section 4817 of title 10, United States Code;
(35) $400,000,000 for investments in the emerging solid
rocket motor industrial base through the Industrial Base Fund
established under section 4817 of title 10, United States Code;
(36) $42,000,000 for investments in second sources for
large-diameter solid rocket motors for hypersonic missiles;
(37) $1,000,000,000 for the creation of next-generation
automated munitions production factories;
(38) $170,000,000 for the development of advanced radar
depot for repair, testing, and production of radar and
electronic warfare systems;
(39) $25,000,000 for the expansion of the Department of
Defense industrial base policy analysis workforce;
(40) $30,300,000 for the repair of Army missiles;
(41) $100,000,000 for the production of small and medium
ammunition;
(42) $2,500,000,000 for additional activities to improve
the United States production of critical minerals through the
National Defense Stockpile, authorized by subchapter III of
chapter 5 of title 50, United States Code;
(43) $10,000,000 for the expansion of the Department of
Defense armaments cooperation workforce;
(44) $250,000,000 for the expansion of the Defense
Exportability Features program;
(45) $250,000,000 for the development of new armaments
cooperation programs;
(46) $350,000,000 for production of Navy long-range air and
missile defense interceptors;
(47) $93,000,000 for replacement of Navy long-range air and
missile defense interceptors;
(48) $100,000,000 for development of a second solid rocket
motor source for Navy air defense and anti ship missiles;
(49) $65,000,000 for expansion of production capacity of
Missile Defense Agency long-range anti-ballistic missiles;
(50) $225,000,000 for expansion of production capacity for
Navy air defense and anti-ship missiles;
(51) $103,300,000 for expansion of depot level maintenance
facility for Navy long-range air and missile defense
interceptors;
(52) $18,000,000 for creation of domestic source for
guidance section of Navy short-range air defense missiles;
(53) $65,000,000 for integration of Army medium-range air
and missile defense interceptor with Navy ships;
(54) $176,100,000 for production of Army long-range movable
missile defense radar;
(55) $100,000,000 for accelerated fielding of Army short-
range gun-based air and missile defense system;
(56) $40,000,000 for development of low-cost alternatives
to air and missile defense interceptors;
(57) $50,000,000 for acceleration of Army next-generation
shoulder-fired air defense system;
(58) $91,000,000 for production of Army next-generation
shoulder-fired air defense system;
(59) $500,000,000 for development, production, and
integration of counter-unmanned aerial systems programs;
(60) $350,000,000 for development, production, and
integration of non-kinetic counter-unmanned aerial systems
programs;
(61) $250,000,000 for development, production, and
integration of land-based counter-unmanned aerial systems
programs;
(62) $200,000,000 for development, production, and
integration of ship-based counter-unmanned aerial systems
programs; and
(63) $400,000,000 for acceleration of hypersonic strike
programs.
(b) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Defense, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029, $500,000,000 to the ``Department of Defense Credit
Program Account'' to carry out the capital assistance program,
including loans, loan guarantees, and technical assistance, established
under section 149(e) of title 10, United States Code, for the
development of reliable sources of critical minerals: Provided, That--
(1) such amounts are available to subsidize gross
obligations for the principal amount of direct loans, and total
loan principal, any part of which is to be guaranteed, not to
exceed $100,000,000,000; and
(2) such amounts are available to cover all costs and
expenditures as provided under section 149(e)(5)(B) of title
10, United States Code.
SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SCALING
LOW-COST WEAPONS INTO PRODUCTION.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense for fiscal year
2025, out of any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2029--
(1) $25,000,000 for the Office of Strategic Capital Global
Technology Scout program;
(2) $1,100,000,000 for the expansion of the small unmanned
aerial system industrial base;
(3) $400,000,000 for the development and deployment of the
Joint Fires Network and associated joint battle management
capabilities;
(4) $400,000,000 for the expansion of advanced command-and-
control tools to combatant commands and military departments;
(5) $100,000,000 for the development of shared secure
facilities for the defense industrial base;
(6) $50,000,000 for the creation of additional Defense
Innovation Unit OnRamp Hubs;
(7) $250,000,000 for the acceleration of Strategic
Capabilities Office programs;
(8) $650,000,000 for the expansion of Mission Capabilities
office joint prototyping and experimentation activities for
military innovation;
(9) $500,000,000 for the accelerated development and
integration of advanced 5G/6G technologies for military use;
(10) $25,000,000 for testing of simultaneous transmit and
receive technology for military spectrum agility;
(11) $50,000,000 for the development, procurement, and
integration of high-altitude stratospheric balloons for
military use;
(12) $120,000,000 for the development, procurement, and
integration of long-endurance unmanned aerial systems for
surveillance;
(13) $40,000,000 for the development, procurement, and
integration of alternative positioning and navigation
technology to enable military operations in contested
electromagnetic environments;
(14) $750,000,000 for the acceleration of innovative
military logistics and energy capability development and
deployment;
(15) $120,000,000 for the acceleration of development of
small modular nuclear reactors for military use;
(16) $1,000,000,000 for the expansion of programs to
accelerate the procurement and fielding of innovative
technologies;
(17) $90,000,000 for the development of reusable hypersonic
technology for military strikes and intelligence;
(18) $2,000,000,000 for the expansion of Defense Innovation
Unit scaling of commercial technology for military use;
(19) $500,000,000 to prevent delays in delivery of
attritable autonomous military capabilities;
(20) $1,000,000,000 for the development, procurement, and
integration of low-cost cruise missiles;
(21) $500,000,000 for the development, procurement, and
integration of exportable low-cost cruise missiles;
(22) $124,000,000 for improvements to Test Resource
Management Center artificial intelligence capabilities;
(23) $145,000,000 for the development of artificial
intelligence to enable one-way attack unmanned aerial systems
and naval systems;
(24) $250,000,000 for the development of the Test Resource
Management Center digital test environment;
(25) $250,000,000 for the advancement of the artificial
intelligence ecosystem;
(26) $250,000,000 for the expansion of Cyber Command
artificial intelligence lines of effort;
(27) $250,000,000 for the acceleration of the Quantum
Benchmarking Initiative;
(28) $500,000,000 for the expansion and acceleration of
qualification activities and technical data management to
enhance competition in defense industrial base;
(29) $400,000,000 for the expansion of the defense
manufacturing technology program; and
(30) $685,000,000 for military cryptographic modernization
activities.
(b) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029, $1,000,000,000 to the ``Department of Defense
Credit Program Account'' to carry out the capital assistance program,
including loans, loan guarantees, and technical assistance, established
under section 149(e) of title 10, United States Code: Provided, That--
(1) such amounts are available to subsidize gross
obligations for the principal amount of direct loans, and total
loan principal, any part of which is to be guaranteed, not to
exceed $100,000,000,000; and
(2) such amounts are available to cover all costs and
expenditures as provided under section 149(e)(5)(B) of title
10, United States Code.
SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
IMPROVING THE EFFICIENCY AND CYBERSECURITY OF THE
DEPARTMENT OF DEFENSE.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $150,000,000 for business systems replacement to
accelerate the audits of the financial statements of the
Department of Defense pursuant to chapter 9A and section 2222
of title 10, United States Code;
(2) $200,000,000 for the deployment of automation and
artificial intelligence to accelerate the audits of the
financial statements of the Department of Defense pursuant to
chapter 9A and section 2222 of title 10, United States Code;
(3) $10,000,000 for the improvement of the budgetary and
programmatic infrastructure of the Office of the Secretary of
Defense; and
(4) $20,000,000 for defense cybersecurity programs of the
Defense Advanced Research Projects Agency.
SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR AIR
SUPERIORITY.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $3,150,000,000 to increase F-15EX aircraft production;
(2) $361,220,000 to prevent the retirement of F-22
aircraft;
(3) $127,460,000 to prevent the retirement of F-15E
aircraft;
(4) $50,000,000 to accelerate installation of F-16
electronic warfare capability;
(5) $116,000,000 for C-17A Mobility Aircraft Connectivity;
(6) $84,000,000 for KC-135 Mobility Aircraft Connectivity;
(7) $440,000,000 to increase C-130J production;
(8) $474,000,000 to increase EA-37B production;
(9) $300,000,000 for Air Force classified programs;
(10) $678,000,000 to accelerate the Collaborative Combat
Aircraft program;
(11) $400,000,000 to accelerate production of the F-47
aircraft;
(12) $230,000,000 for Navy classified programs;
(13) $500,000,000 accelerate the FA/XX aircraft;
(14) $100,000,000 for production of Advanced Aerial
Sensors;
(15) $160,000,000 to accelerate V-22 nacelle improvement;
and
(16) $100,000,000 to accelerate production of MQ-25
aircraft.
SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR FORCES.
(a) DOD Appropriations.--In addition to amounts otherwise
available, there are appropriated to the Secretary of Defense for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2029--
(1) $1,500,000,000 for risk reduction activities for the
Sentinel intercontinental ballistic missile program;
(2) $4,500,000,000 for acceleration of the B-21 long-range
bomber aircraft;
(3) $500,000,000 for improvements to the Minuteman III
intercontinental ballistic missile system;
(4) $100,000,000 for capability enhancements to
intercontinental ballistic missile reentry vehicles;
(5) $148,000,000 for the expansion of D5 missile motor
production;
(6) $400,000,000 to accelerate the development of Trident
D5LE2 submarine-launched ballistic missiles;
(7) $2,000,000,000 to accelerate the development,
procurement, and integration of the nuclear-armed sea-launched
cruise missile;
(8) $62,000,000 to convert Ohio-class submarine tubes to
accept additional missiles;
(9) $22,000,000 to enhance nuclear deterrence through
classified programs;
(10) $168,000,000 to accelerate the production of the
Survivable Airborne Operations Center program;
(11) $65,000,000 to accelerate the modernization of nuclear
command, control, and communications; and
(12) $210,300,000 for the increased production of MH-139
helicopters.
(b) NNSA Appropriations.--In addition to amounts otherwise
available, there are appropriated to the Administrator of the National
Nuclear Security Administration for fiscal year 2025, out of any money
in the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $200,000,000 to perform National Nuclear Security
Administration Phase 1 studies pursuant to section 3211 of the
National Nuclear Security Administration Act (50 U.S.C. 2401);
(2) $540,000,000 to address deferred maintenance and repair
needs of the National Nuclear Security Administration pursuant
to section 3211 of the National Nuclear Security Administration
Act (50 U.S.C. 2401);
(3) $1,000,000,000 to accelerate the construction of
National Nuclear Security Administration facilities pursuant to
section 3211 of the National Nuclear Security Administration
Act (50 U.S.C. 2401);
(4) $400,000,000 to accelerate the development,
procurement, and integration of the warhead for the nuclear-
armed sea-launched cruise missile pursuant to section 3211 of
the National Nuclear Security Administration Act (50 U.S.C.
2401);
(5) $500,000,000 to accelerate primary capability
modernization pursuant to section 3211 of the National Nuclear
Security Administration Act (50 U.S.C. 2401);
(6) $500,000,000 to accelerate secondary capability
modernization pursuant to section 3211 of the National Nuclear
Security Administration Act (50 U.S.C. 2401); and
(7) $100,000,000 to accelerate domestic uranium enrichment
centrifuge deployment for defense purposes pursuant to section
3211 of the National Nuclear Security Administration Act (50
U.S.C. 2401).
SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES TO IMPROVE
CAPABILITIES OF UNITED STATES INDO-PACIFIC COMMAND.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $365,000,000 for Army exercises and operations in the
Western Pacific area of operations;
(2) $53,000,000 for Special Operations Command exercises
and operations in the Western Pacific area of operations;
(3) $47,000,000 for Marine Corps exercises and operations
in Western Pacific area of operations;
(4) $90,000,000 for Air Force exercises and operations in
Western Pacific area of operations;
(5) $532,600,000 for the Pacific Air Force biennial large-
scale exercise;
(6) $19,000,000 for the development of naval small craft
capabilities;
(7) $35,000,000 for military additive manufacturing
capabilities in the United States Indo-Pacific Command area of
operations west of the international dateline;
(8) $450,000,000 for the development of airfields within
the area of operations of United States Indo-Pacific Command;
(9) $1,100,000,000 for development of infrastructure within
the area of operations of United States Indo-Pacific Command;
(10) $124,000,000 for mission networks for United States
Indo-Pacific Command;
(11) $100,000,000 for Air Force regionally based cluster
pre-position base kits;
(12) $25,000,000 to explore the revitalization of existing
Arctic naval infrastructure;
(13) $90,000,000 for the accelerated development of non-
kinetic capabilities;
(14) $20,000,000 for military exercises with Taiwan;
(15) $23,000,000 for anti-submarine sonar arrays;
(16) $30,000,000 for intelligence, surveillance, and
reconnaissance capabilities for United States Africa Command;
(17) $30,000,000 for intelligence, surveillance, and
reconnaissance capabilities for United States Indo-Pacific
Command;
(18) $400,000,000 for the development, coordination, and
deployment of economic competition effects within the
Department of Defense;
(19) $10,000,000 for the expansion of Department of Defense
workforce for economic competition;
(20) $1,000,000,000 for offensive cyber operations;
(21) $500,000,000 for the Joint Training Team;
(22) $300,000,000 for the procurement of mesh network
communications capabilities for Special Operations Command
Pacific;
(23) $850,000,000 for activities to protect United States
interests and deter Chinese Communist Party aggression through
provision of military support and assistance to the military,
central government security forces, and central government
security agencies of Taiwan;
(24) $200,000,000 for acceleration of Guam Defense System
program;
(25) $4,029,000,000 for classified military space
superiority programs;
(26) $68,000,000 for Space Force facilities improvements;
(27) $100,000,000 for ground moving target indicator
military satellites; and
(28) $528,000,000 for DARC and SILENTBARKER military space
situational awareness programs.
SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
IMPROVING THE READINESS OF THE ARMED FORCES.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $1,400,000,000 for a pilot program on OPN-8 maritime
spares and repair rotable pool;
(2) $700,000,000 for a pilot program on OPN-8 maritime
spares and repair rotable pool for amphibious ships;
(3) $2,118,000,000 for readiness packages to keep Air Force
aircraft mission capable;
(4) $1,500,000,000 for Army depot modernization and
capacity enhancement;
(5) $2,000,000,000 for Navy depot and shipyard
modernization and capacity enhancement;
(6) $250,000,000 for Air Force depot modernization and
capacity enhancement;
(7) $1,391,000,000 for the enhancement of Special
Operations Command equipment and readiness;
(8) $500,000,000 for National Guard unit readiness;
(9) $400,000,000 for Marine Corps readiness and
capabilities;
(10) $20,000,000 for upgrades to Marine Corps utility
helicopters;
(11) $310,000,000 for next-generation vertical lift,
assault, and intra-theater aeromedical evacuation aircraft;
(12) $75,000,000 for the procurement of anti-lock braking
systems for Army wheeled transport vehicles;
(13) $230,000,000 for the procurement of Army wheeled
combat vehicles;
(14) $63,000,000 for the development of advanced rotary-
wing engines;
(15) $241,000,000 for the development, procurement, and
integration of Marine Corps amphibious vehicles;
(16) $250,000,000 for the procurement of Army tracked
combat transport vehicles; and
(17) $98,000,000 for the enhancement of Army light rotary-
wing capabilities.
SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BORDER SUPPORT AND COUNTER-
DRUG MISSIONS.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029, $5,000,000,000 for activities in support of border
operations, including deployment of military personnel, operations and
maintenance, counter-narcotics and counter-transnational criminal
organization mission support, the operation of and construction in
national defense areas, the temporary detention of migrants on
Department of Defense installations, and the repatriation of persons in
support of law enforcement activities, pursuant to sections 272, 277,
284, and 2672 of title 10, United States Code.
SEC. 20012. ENHANCEMENT OF MILITARY INTELLIGENCE PROGRAMS.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029, $2,000,000,000 for the enhancement of military
intelligence programs.
SEC. 20013. DEPARTMENT OF DEFENSE OVERSIGHT.
(a) Office of the Secretary of Defense.--In addition to amounts
otherwise available, there is appropriated to the Inspector General of
the Department of Defense for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, $10,000,000, to remain available
through September 30, 2029, to carry out this section.
(b) Oversight of Programs.--The Inspector General shall monitor
Department of Defense activities for which funding is appropriated in
this title, including--
(1) programs with mutual technological dependencies;
(2) programs with related data management and data
ownership considerations;
(3) programs particularly vulnerable to supply chain
disruptions and long lead time components; and
(4) programs involving classified matters.
(c) Classified Matters.--Not later than 30 days after the date of
the enactment of this title, the Chairs of the Committees on Armed
Services of the Senate and House of Representatives shall jointly
transmit to the Department of Defense a classified memorandum regarding
amounts made available in this title related to classified matters.
SEC. 20014. MILITARY CONSTRUCTION PROJECTS AUTHORIZED.
(a) Authorization of Appropriations.--Funds are hereby authorized
to be appropriated for military construction, land acquisition, and
military family housing functions of each military department (as
defined in section 101(a) of title 10, United States Code) as specified
in this title.
(b) Spending Plan.--Not later than 30 days after the date of the
enactment of this title, the Secretary of each military department
shall submit to the congressional defense committees (as defined in
section 101(a) of title 10, United States Code) a detailed spending
plan by project for all funds made available by this title to be
expended on military construction projects.
SEC. 20015. PLAN REQUIRED.
(a) In General.--Not later than 45 days after the date of the
enactment of this title, the Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a spending, expenditure, or operating plan for amounts
made available pursuant to this title. Such plan shall include the same
level of detail as required for the report submitted under section 8007
of division A of the Further Consolidated Appropriations Act, 2024
(Public Law 118-47; 138 Stat. 482).
(b) Expenditure Report.--Not later than one year after the date of
enactment of this title, and annually thereafter, the Secretary shall
submit to the Committees on Armed Services of the Senate and the House
of Representative a report that includes a description of any
expenditures made pursuant to the plan required under subsection (a).
SEC. 20016. LIMITATION ON AVAILABILITY OF FUNDS.
The funds made available under this title may not be used to enter
into any agreement under which any payment of such funds could be
outlaid or disbursed after September 30, 2034.
TITLE III--COMMITTEE ON EDUCATION AND WORKFORCE
Subtitle A--Student Eligibility
SEC. 30001. STUDENT ELIGIBILITY.
(a) In General.--Section 484(a)(5) of the Higher Education Act of
1965 (20 U.S.C. 1091(a)(5)) is amended to read as follows:
``(5) be--
``(A) a citizen or national of the United States;
``(B) an alien who is lawfully admitted for
permanent residence under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.);
``(C) an alien who--
``(i) is a citizen or national of the
Republic of Cuba;
``(ii) is the beneficiary of an approved
petition under section 203(a) of the
Immigration and Nationality Act (8 U.S.C.
1153(a));
``(iii) meets all eligibility requirements
for an immigrant visa but for whom such a visa
is not immediately available;
``(iv) is not otherwise inadmissible under
section 212(a) of such Act (8 U.S.C. 8 U.S.C.
1182(a)); and
``(v) is physically present in the United
States pursuant to a grant of parole in
furtherance of the commitment of the United
States to the minimum level of annual legal
migration of Cuban nationals to the United
States specified in the U.S.-Cuba Joint
Communique on Migration, done at New York
September 9, 1994, and reaffirmed in the Cuba-
United States: Joint Statement on Normalization
of Migration, Building on the Agreement of
September 9, 1994, done at New York May 2,
1995;
``(D) an alien described in section 401(a) of the
Additional Ukraine Supplemental Appropriations Act,
2022 (Public Law 117-128; 8 U.S.C. 1101 note);
``(E) an alien described in section 2502(a) of the
Afghanistan Supplemental Appropriations Act, 2022
(division C of Public Law 117-43; 8 U.S.C. 1101 note);
or
``(F) an individual who lawfully resides in the
United States in accordance with a Compact of Free
Association referred to in section 402(b)(2)(G) of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G));
and''.
(b) Effective Date and Application.--The amendment made by
subsection (a) shall take effect on July 1, 2025, and shall apply with
respect to award year 2025-2026 and each subsequent award year, as
determined under the Higher Education Act of 1965.
SEC. 30002. AMOUNT OF NEED; COST OF ATTENDANCE; MEDIAN COST OF COLLEGE.
(a) Amount of Need.--Section 471 of the Higher Education Act of
1965 (20 U.S.C. 1087kk) is amended by amending paragraph (1) to read as
follows:
``(1)(A) for award year 2025-2026, the cost of attendance
of such student; or
``(B) for award year 2026-2027, and each subsequent award
year, the median cost of college of the program of study of
such student, minus''.
(b) Cost of Attendance of a Program of Study.--
(1) Determination of cost of attendance of a program of
study.--
(A) In general.--Section 472(a) of the Higher
Education Act of 1965 (20 U.S.C. 1087ll(a)) is
amended--
(i) in paragraph (1), by striking
``carrying the same academic workload'' and
inserting ``enrolled in the same program of
study'';
(ii) in paragraph (2), by striking ``same
course of study'' and inserting ``same program
of study''; and
(iii) in paragraph (14), by striking
``program'' and inserting ``program of study''.
(B) Effective date.--The amendments made by
subparagraph (A) shall take effect on July 1, 2026, and
shall apply with respect to award year 2026-2027 and
each subsequent award year, as determined under the
Higher Education Act of 1965.
(2) Disclosure.--Section 472(c) of the Higher Education Act
of 1965 (20 U.S.C. 1087ll(c)) is amended--
(A) by inserting ``of each program of study at the
institution'' after ``cost of attendance''; and
(B) by striking ``of the institution'' and
inserting ``of such programs of study at the
institution''.
(c) Determination of Median Cost of College.--Part F of title IV of
the Higher Education Act of 1965 (20 U.S.C. 1087kk) is amended by
inserting after section 472 (as so amended), the following:
``SEC. 472A. DETERMINATION OF MEDIAN COST OF COLLEGE.
``(a) In General.--For the purpose of this title, the term `median
cost of college', when used with respect to a program of study, offered
by one or more institutions of higher education for an award year,
means the median of the cost of attendance of the program of study (as
determined under section 472) across all institutions of higher
education offering such a program of study for the preceding award
year.
``(b) Program of Study Defined.--In this section and section 472,
and part D:
``(1) In general.--The term `program of study'--
``(A) means an eligible program at an institution
of higher education that is classified by a combination
of--
``(i) one or more CIP codes; and
``(ii) one credential level, determined by
the credential awarded upon completion of the
program; and
``(B) does not include a program of study abroad.
``(2) CIP code.--The term `CIP code' means the six-digit
taxonomic identification code assigned by an institution of
higher education to a specific program of study at the
institution, determined by the institution of higher education
in accordance with the Classification of Instructional Programs
published by the National Center for Education Statistics.
``(3) Credential level.--
``(A) In general.--The term `credential level'
means the level of the degree or other credential
awarded by an institution of higher education to
students who complete a program of study of the
institution. Each degree or other credential awarded by
an institution shall be categorized by the institution
as either undergraduate credential level or graduate
credential level.
``(B) Undergraduate credential.--When used with
respect to a credential or credential level, the term
`undergraduate credential' includes credentials such as
an undergraduate certificate, an associate degree, a
bachelor's degree, and a post-baccalaureate certificate
(including the coursework specified in paragraphs
(3)(B) and (4)(B) of section 484(b)).
``(C) Graduate credential.--When used with respect
to a credential or credential level, the term `graduate
credential' includes credentials such as a master's
degree, a doctoral degree, a professional degree, and a
postgraduate certificate.''.
(d) Exemption of Certain Assets.--
(1) In general.--Section 480(f)(2) of the Higher Education
Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended--
(A) by striking ``net value of the'' and inserting
the following: ``net value of--
``(A) the'';
(B) by striking the period at the end and inserting
a semicolon; and
(C) by adding at the end the following:
``(B) a family farm on which the family resides; or
``(C) a small business with not more than 100 full-
time or full-time equivalent employees (or any part of
such a small business) that is owned and controlled by
the family.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on July 1, 2026, and shall apply with respect
to award year 2026-2027 and each subsequent award year, as
determined under the Higher Education Act of 1965.
Subtitle B--Loan Limits
SEC. 30011. LOAN LIMITS.
(a) Terminations of and Restrictions on Loan Authority.--
(1) Termination of authority to make subsidized loans to
undergraduate students.--Section 455(a)(3) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is amended by
adding at the end the following:
``(C) Termination of authority to make subsidized
loans to undergraduate students.--Notwithstanding any
provision of this part or part B, except as provided in
paragraph (4), for any period of instruction beginning
on or after July 1, 2026--
``(i) an undergraduate student shall not be
eligible to receive a Federal Direct Stafford
loan under this part; and
``(ii) the maximum annual amount of Federal
Direct Unsubsidized Stafford loans such a
student may borrow in any academic year (as
defined in section 481(a)(2)) or its equivalent
shall be the maximum annual amount for such
student determined under paragraph (5)).''.
(2) Termination of authority to make federal direct plus
loans to any student borrower.--Section 455(a)(3) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is further
amended by adding at the end the following:
``(D) Termination of authority to make federal
direct plus loans to any student borrower.--
Notwithstanding any provision of this part or part B,
except as provided in paragraph (4), for any period of
instruction beginning on or after July 1, 2026, a
graduate student or professional student shall not be
eligible to receive a Federal Direct PLUS Loan under
this part.''.
(3) Restriction on authority to make federal direct plus
loans to any parent borrower.--Section 455(a)(3) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is further
amended by adding at the end the following:
``(E) Restriction on authority to make federal
direct plus loans to any parent borrower.--
``(i) In general.--Notwithstanding any
provision of this part or part B, except as
provided in clause (ii) and paragraph (4), for
any period of instruction beginning on or after
July 1, 2026, a parent, on behalf of a
dependent student, shall not be eligible to
receive a Federal Direct PLUS Loan under this
part.
``(ii) Exception.--A parent may receive a
Federal Direct PLUS Loan under this part, on
behalf of a dependent student, in any academic
year (as defined in section 481(a)(2)) or its
equivalent if--
``(I) such student borrows the
maximum annual amount of Federal Direct
Unsubsidized Stafford loans such
student may borrow in such academic
year; and
``(II) such maximum annual amount
is less than the cost of attendance of
the program of study of such
student.''.
(4) Conforming amendments.--Section 455(a)(3) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is further
amended--
(A) in the paragraph heading, by striking
``Termination of authority to make interest subsidized
loans to graduate and professional students'' and
inserting ``Terminations of and restrictions on loan
authority'';
(B) in subparagraph (A)--
(i) in the heading, by striking ``In
general'' and inserting ``Termination of
authority to make subsidized loans to graduate
and professional students'';
(ii) in the matter preceding clause (i), by
striking ``beginning on or after July 1,
2012'';
(iii) in clause (i), by striking ``a
graduate'' and inserting ``beginning on or
after July 1, 2012, a graduate''; and
(iv) in clause (ii), by striking ``the
maximum annual amount of Federal'' and
inserting ``beginning on or after July 1, 2012,
and ending June 30, 2026, the maximum annual
amount of Federal''; and
(C) in subparagraph (B)--
(i) in the heading, by striking
``Exception'' and inserting ``Exception for
subsidized loans to individuals enrolled in
certain course work''.
(ii) by striking ``Subparagraph (A)'' and
inserting ``For any period of instruction
beginning on or after July 1, 2012, and ending
June 30, 2026, subparagraph (A)''.
(b) Interim Rules for Enrolled Borrowers.--Section 455(a) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended by adding
at the end the following:
``(4) Interim exception for certain students.--
``(A) Application of prior limits.--Subparagraphs
(C), (D), and (E) of paragraph (3), and paragraphs (5)
and (6), shall not apply, during the expected time to
credential described in subparagraph (B), with respect
to an individual who, as of June 30, 2026--
``(i) is enrolled in a program of study at
an institution of higher education; and
``(ii) has received a loan (or on whose
behalf a loan was made) under this part for
such program of study.
``(B) Expected time to credential.--For purposes of
this paragraph, the expected time to credential of an
individual shall be equal to the lesser of--
``(i) three academic years; or
``(ii) the period determined by calculating
the difference between--
``(I) the program length (as
defined in section 420W) for the
program of study in which the
individual is enrolled; and
``(II) the period of such program
of study that such individual has
completed as of the date of the
determination under this
subparagraph.''.
(c) Loan Limits for Unsubsidized Loans and Certain Federal Direct
PLUS Loans.--
(1) Annual and aggregate unsubsidized loan limits.--Section
455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a))
is further amended by adding at the end the following:
``(5) Annual and aggregate unsubsidized loan limits.--
``(A) Undergraduate students.--
``(i) Annual loan limits.--Notwithstanding
any provision of this part or part B, subject
to subparagraph (C) and except as provided in
paragraph (4), beginning on July 1, 2026, the
maximum annual amount of Federal Direct
Unsubsidized Stafford loans that an
undergraduate student may borrow in any
academic year (as defined in section 481(a)(2))
or its equivalent shall be the difference
between--
``(I) the amount of the median cost
of college of the program of study in
which the student is enrolled; and
``(II) the amount of the Federal
Pell Grant under section 401 awarded to
the student for such academic year.
``(ii) Aggregate limits.--Notwithstanding
any provision of this part or part B, except as
provided in paragraph (4), beginning on July 1,
2026, the maximum aggregate amount of Federal
Direct Unsubsidized Stafford loans that a
student may borrow for programs of study that
award an undergraduate credential upon
completion of such a program shall be $50,000.
``(B) Graduate and professional students.--
``(i) Annual limits.--Notwithstanding any
provision of this part or part B, subject to
subparagraph (C) and except as provided in
paragraph (4), beginning on July 1, 2026, the
maximum annual amount of Federal Direct
Unsubsidized Stafford loans that a graduate
student or professional student may borrow in
any academic year (as defined in section
481(a)(2)) or its equivalent shall be the
amount of the median cost of college of the
program of study in which the student is
enrolled.
``(ii) Aggregate limits.--Notwithstanding
any provision of this part or part B, except as
provided in paragraph (4), beginning on July 1,
2026, the maximum aggregate amount of Federal
Direct Unsubsidized Stafford loans that, in
addition to the maximum aggregate amount
described in subparagraph (A)(ii)--
``(I) a graduate student--
``(aa) who is not (and has
not been) a professional
student, may borrow for
programs of study described in
subparagraph (D)(i) shall be
$100,000; or
``(bb) who is (or has been)
a professional student, may
borrow for programs of study
described in subparagraph
(D)(i) shall be an amount equal
to--
``(AA) $150,000,
minus
``(BB) the amount
such student borrowed
for programs of study
described in subclauses
(I) and (II) of
subparagraph (D)(ii);
and
``(II) a professional student--
``(aa) who is not (and has
not been) a graduate student,
may borrow for programs of
study described in subclauses
(I) and (II) of subparagraph
(D)(ii) shall be $150,000; or
``(bb) who is (or has been)
a graduate student, may borrow
for programs of study described
in subclauses (I) and (II) of
subparagraph (D)(ii) shall be
an amount equal to--
``(AA) $150,000,
minus
``(BB) the amount
such student borrowed
for programs of study
described in
subparagraph (D)(i).
``(C) Less than full-time enrollment.--In any case
where a student is enrolled in an program of study of
an institution of higher education on less than a full-
time basis during any academic year, the amount of a
loan that student may borrow for an academic year (as
defined in section 481(a)(2)) or its equivalent shall
be reduced in direct proportion to the degree to which
that student is not so enrolled on a full-time basis,
rounded to the nearest whole percentage point, as
provided in a schedule of reductions published by the
Secretary computed for purposes of this paragraph.
``(D) Definition.--For purposes of this subsection:
``(i) Graduate student.--The term `graduate
student' means a student enrolled in a program
of study that awards a graduate credential
(other than a professional degree) upon
completion of the program.
``(ii) Professional student.--The term
`professional student' means a student enrolled
in a program of study that--
``(I) awards a professional degree
upon completion of the program; or
``(II) provides the training
described in part 141 of title 14, Code
of Federal Regulations (or any
successor regulations).
``(iii) Undergraduate student.--The term
`undergraduate student' means a student
enrolled in a program of study that awards an
undergraduate credential upon completion of the
program.''.
(2) Annual and aggregate federal direct plus loans limits
for parent borrowers.--Section 455(a) of the Higher Education
Act of 1965 (20 U.S.C. 1087e(a)) is further amended by adding
at the end the following:
``(6) Annual and aggregate federal direct plus loans limits
for parent borrowers.--
``(A) Annual limits.--Notwithstanding any provision
of this part or part B, subject to paragraph (3)(E) and
except as provided in paragraph (4), beginning on July
1, 2026, the maximum annual amount of Federal Direct
PLUS loans that a parent may borrow, on behalf of a
dependent student, in any academic year (as defined in
section 481(a)(2)) or its equivalent shall be the
amount equal to--
``(i) the cost of attendance of the program
of study of such student; minus
``(ii) the maximum annual amount of Federal
Direct Unsubsidized Stafford loans such student
may borrow in such academic year.
``(B) Aggregate limits.--Notwithstanding any
provision of this part or part B, subject to paragraph
(3)(E) and except as provided in paragraph (4),
beginning on July 1, 2026, the maximum aggregate amount
of Federal Direct PLUS loans that a parent may borrow
shall be $50,000, without regard to the number of
dependent students on behalf of whom such parent
borrows such a loan.''.
(3) Lifetime maximum aggregate amount for all students.--
Section 455(a) of the Higher Education Act of 1965 (20 U.S.C.
1087e(a)) is further amended by adding at the end the
following:
``(7) Lifetime maximum aggregate amount for all students.--
Notwithstanding any provision of this part or part B, except as
provided in paragraph (4), beginning on July 1, 2026, the
maximum aggregate amount of loans made, insured, or guaranteed
under this title that a student may borrow, and that a parent
may borrow on behalf of such student, shall be $200,000,
without regard to any amounts repaid, forgiven, canceled, or
otherwise discharged on any such loan.''.
(4) Institutionally determined limits.--Section 455(a) of
the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is
further amended by adding at the end the following:
``(8) Institutionally determined limits.--Notwithstanding
the annual loan limits described in subparagraphs (A)(i) and
(B)(i) of paragraph (5) and subparagraph (A) of paragraph (6),
beginning on July 1, 2026, an institution of higher education
(at the discretion of a financial aid administrator at the
institution) may limit the total amount of loans made under
this part for a program of study for an academic year (as
defined in section 481(a)(2)) that a student may borrow, and
that a parent may borrow on behalf of such student, as long as
any such limit is applied consistently to all students enrolled
in such program of study.''.
Subtitle C--Loan Repayment
SEC. 30021. LOAN REPAYMENT.
(a) Transition to Income-based Repayment Plans.--
(1) Authority to transition to income-based repayment
plans.--
(A) Authority to carry out transition.--Beginning
on the date of enactment of this title, the Secretary
of Education shall take such steps as may be necessary
to apply the repayment plan under section 493C of the
Higher Education Act of 1965 (as amended by this title)
to the loans of each borrower who, on the day before
such date of enactment, is in a repayment status in
accordance with, or an administrative forbearance
associated with, an income-contingent repayment plan
authorized under section 455(e) of the Higher Education
Act of 1965 (as in effect on the day before the date of
enactment of this title).
(B) Deadline for transition.--The Secretary shall
complete the application of the repayment plan under
section 493C to the loans described in paragraph (1) as
soon as practicable, but not later than 9 months after
the date of enactment of this title.
(2) Limitation of regulatory authority.--The Secretary may
not establish, promulgate, issue, or modify any regulations or
guidance with respect to any income-based repayment plan under
the Higher Education Act of 1965, except that the Secretary
may--
(A) during the 270-day period after the date of
enactment of this title, issue an interim final rule as
necessary for the application of the repayment plan
under section 493C of such Act of 1965 in accordance
with paragraph (1);
(B) during the 270-day period after the date of
enactment of this title, issue an interim final rule as
necessary to implement the amendments to such section
493C made by subsection (f) of this title; and
(C) during the 18-month period after the date of
enactment of this title, issue an interim final rule as
necessary to implement the income-based Repayment
Assistance Program under section 455(q) of such Act of
1965 (as added by this title).
(3) Waiver of negotiated rulemaking.--Any guidance or
regulations issued or modified in accordance with subparagraph
(A) or (B) of paragraph (2) shall not be subject to negotiated
rulemaking requirements under section 492 of the Higher
Education Act of 1965 (20 U.S.C. 1098a).
(b) Repayment Plans.--Section 455(d) of the Higher Education Act of
1965 (20 U.S.C. 1087e(d)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
inserting ``before July 1, 2026, who has not received a
loan made under this part on or after July 1, 2026,''
after ``made under this part'';
(B) by amending subparagraph (D) to read as
follows:
``(D) beginning on July 1, 2026, the income-based
Repayment Assistance Plan under subsection (q),
provided that--
``(i) the borrower is required to pay each
outstanding loan of the borrower made under
this part under such Repayment Assistance Plan;
``(ii) such Plan shall not be available to
borrowers with an excepted loan (as defined in
paragraph (7)); and
``(iii) the borrower may not change the
borrower's selection of the Repayment
Assistance Plan except in accordance with
paragraph (7)(C).''; and
(C) in subparagraph (E)--
(i) by striking ``that enables borrowers
who have a partial financial hardship to make a
lower monthly payment''; and
(ii) by striking ``a Federal Direct
Consolidation Loan, if the proceeds of such
loan were used to discharge the liability on
such Federal Direct PLUS Loan or a loan under
section 428B made on behalf of a dependent
student'' and inserting ``an excepted
Consolidation Loan (as defined in section
493C(a)(2))'';
(2) in paragraph (5), by amending subparagraph (B) to read
as follows:
``(B) repay the loan pursuant to an income-based
repayment plan under subsection (q) or section 493C, as
applicable.''; and
(3) by adding at the end the following:
``(6) Termination and limitation of repayment authority.--
``(A) Sunset of repayment plans available before
july 1, 2026.--Paragraphs (1) through (4) of this
subsection shall only apply to loans made under this
part before July 1, 2026.
``(B) Prohibitions.--The Secretary may not, for any
loan made under this part on or after July 1, 2026--
``(i) authorize a borrower of such a loan
to repay such loan pursuant to a repayment plan
that is not described in paragraph (7)(A); or
``(ii) carry out or modify a repayment plan
that is not described in such paragraph.
``(7) Repayment plans for loans made on or after july 1,
2026.--
``(A) Design and selection.--Beginning on July 1,
2026, the Secretary shall offer a borrower of a loan
made under this part on or after such date (including
such a borrower who also has a loan made under this
part before such date) two plans for repayment of the
borrower's loans under this part, including principal
and interest on such loans. The borrower shall be
entitled to accelerate, without penalty, repayment on
such loans. The borrower may choose--
``(i) a standard repayment plan--
``(I) with a fixed monthly
repayment amount paid over a fixed
period of time equal to the applicable
period determined under subclause (II);
and
``(II) with the applicable period
of time for repayment determined based
on the total outstanding principal of
all loans of the borrower made under
this part before, on, or after July 1,
2026, at the time the borrower is
entering repayment under such plan, as
follows--
``(aa) for a borrower with
total outstanding principal of
less than $25,000, a period of
10 years;
``(bb) for a borrower with
total outstanding principal of
not less than $25,000 and less
than $50,000, a period of 15
years;
``(cc) for a borrower with
total outstanding principal of
not less than $50,000 and less
than $100,000, a period of 20
years; and
``(dd) for a borrower with
total outstanding principal of
$100,000 or more, a period of
25 years; or
``(ii) the income-based Repayment
Assistance Plan under subsection (q).
``(B) Selection by secretary.--If a borrower of a
loan made under this part on or after July 1, 2026,
does not select a repayment plan described in
subparagraph (A), the Secretary shall provide the
borrower with the standard repayment plan described in
subparagraph (A)(i).
``(C) Selection available for each new loan;
selection applies to all outstanding loans.--Each time
a borrower receives a loan made under this part on or
after July 1, 2026, the borrower may select either the
standard repayment plan under subparagraph (A)(i) or
the Repayment Assistance Plan under subparagraph
(A)(ii), provided that the borrower is required to pay
each outstanding loan of the borrower made under this
part under such selected repayment plan.
``(D) Permissible changes of repayment plan.--
``(i) Changing from standard repayment
plan.--A borrower may change the borrower's
selection of the standard repayment plan under
subparagraph (A)(i), or the Secretary's
selection of such plan for the borrower under
subparagraph (C), as the case may be, to the
Repayment Assistance Plan under subparagraph
(A)(ii) at any time.
``(ii) Limited change from repayment
assistance plan.--A borrower may not change the
borrower's selection of the Repayment
Assistance Plan under subparagraph (A)(ii),
except in accordance with subparagraph (C).
``(E) Special rule for excepted loan borrowers with
loans made on or after july 1, 2026.--
``(i) Standard repayment plan required.--
Notwithstanding subparagraphs (A) through (D),
beginning on July 1, 2026, the Secretary shall
require a borrower who has an excepted loan and
who has received a loan made under this part on
or after such date to repay each outstanding
loan of the borrower made under this part,
including principal and interest on such loans,
under the standard repayment plan under
subparagraph (A)(i). The borrower shall be
entitled to accelerate, without penalty,
repayment on such loans.
``(ii) Excepted loan defined.--For the
purposes of this paragraph, the term `excepted
loan' means a loan with an outstanding balance
that is--
``(I) a Federal Direct PLUS Loan
that is made on behalf of a dependent
student; or
``(II) a Federal Direct
Consolidation Loan, if the proceeds of
such loan were used to the discharge
the liability on--
``(aa) an excepted PLUS
loan, as defined in section
493C(a)(1); or
``(bb) an excepted
consolidation loan (as such
term is defined in section
493C(a)(2)(A), notwithstanding
subparagraph (B) of such
section).
``(F) Treatment of borrowers without loans made on
or after july 1, 2026.--A borrower who has an
outstanding loan (including an excepted loan) made
under this part before July 1, 2026, and who has not
received a loan made under this part on or after July
1, 2026, shall not be eligible to change the borrower's
selection of a repayment plan to the standard repayment
plan under subparagraph (A)(i).''.
(c) Elimination of Authority to Provide Income Contingent Repayment
Plans.--
(1) Repeal.--Subsection (e) of section 455 the Higher
Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed.
(2) Further amendments to eliminate income contingent
repayment.--
(A) Section 428 of the Higher Education Act of 1965
(20 U.S.C. 1078) is amended--
(i) in subsection (b)(1)(D), by striking
``be subject to income contingent repayment in
accordance with subsection (m)'' and inserting
``be subject to income-based repayment in
accordance with subsection (m)''; and
(ii) in subsection (m)--
(I) in the subsection heading, by
striking ``Income Contingent and'';
(II) by amending paragraph (1) to
read as follows:
``(1) Authority of secretary to require.--The Secretary may
require borrowers who have defaulted on loans made under this
part that are assigned to the Secretary under subsection (c)(8)
to repay those loans pursuant to an income-based repayment plan
under section 455(q) or section 493C, as applicable.''; and
(III) in the heading of paragraph
(2), by striking ``income contingent
or''.
(B) Section 428C of the Higher Education Act of
1965 (20 U.S.C. 1078-3) is amended--
(i) in subsection (a)(3)(B)(i)(V)(aa), by
striking ``for the purposes of obtaining income
contingent repayment or income-based
repayment'' and inserting ``for the purposes of
qualifying for an income-based repayment plan
under section 455(q) or section 493C, as
applicable'';
(ii) in subsection (b)(5), by striking ``be
repaid either pursuant to income contingent
repayment under part D of this title, pursuant
to income-based repayment under section 493C,
or pursuant to any other repayment provision
under this section'' and inserting ``be repaid
pursuant to an income-based repayment plan
under section 493C or any other repayment
provision under this section''; and
(iii) in subsection (c)--
(I) in paragraph (2)(A), by
striking ``or by the terms of repayment
pursuant to income contingent repayment
offered by the Secretary under
subsection (b)(5)'' and inserting ``or
by the terms of repayment pursuant to
an income-based repayment plan under
section 493C''; and
(II) in paragraph (3)(B), by
striking ``except as required by the
terms of repayment pursuant to income
contingent repayment offered by the
Secretary under subsection (b)(5)'' and
inserting ``except as required by the
terms of repayment pursuant to an
income-based repayment plan under
section 493C''.
(C) Section 485(d)(1) of the Higher Education Act
of 1965 (20 U.S.C. 1092(d)(1)) is amended by striking
``income-contingent and''.
(D) Section 494(a)(2) of the Higher Education Act
of 1965 (20 U.S.C. 1098h(a)(2)) is amended--
(i) in the paragraph heading, by striking
``Income-contingent and income-based'' and
inserting ``Income-based'';
(ii) in subparagraph (A)--
(I) in the matter preceding clause
(i), by striking ``income-contingent
or''; and
(II) in clause (ii)(I), by
inserting ``(as in effect on the day
before the date of repeal of subsection
(e) of section 455)'' after ``section
455(e)(8)''.
(d) Repayment Assistance Plan.--Section 455 of the Higher Education
Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the
following new subsection:
``(q) Repayment Assistance Plan.--
``(1) In general.--Notwithstanding any other provision of
this Act, beginning on July 1, 2026, the Secretary shall carry
out an income-based repayment plan (to be known as the
`Repayment Assistance Plan'), that shall have the following
terms and conditions:
``(A) The total monthly repayment amount owed by a
borrower for all of the loans of the borrower that are
repaid pursuant to the Repayment Assistance Plan shall
be equal to the applicable monthly payment of a
borrower calculated under paragraph (3)(B), except that
the borrower may not be precluded from repaying an
amount that exceeds such amount for any month.
``(B) The Secretary shall apply the borrower's
applicable monthly payment under this paragraph first
toward interest due on each such loan, next toward any
fees due on each loan, and then toward the principal of
each loan.
``(C) Any principal due and not paid under
subparagraph (B) or paragraph (2)(B) shall be deferred.
``(D) A borrower who is not in a period of
deferment or forbearance shall make an applicable
monthly payment for each month until the earlier of--
``(i) the date on which the outstanding
balance of principal and interest due on all of
the loans of the borrower that are repaid
pursuant to the Repayment Assistance Plan is
$0; or
``(ii) the date on which the borrower has
made 360 qualifying monthly payments.
``(E) The Secretary shall repay or cancel any
outstanding balance of principal and interest due on a
loan made under this part to a borrower--
``(i) who, for any period of time,
participated in the Repayment Assistance Plan
under this subsection;
``(ii) whose most recent payment for such
loan prior to the loan cancellation under this
subparagraph was made under such Repayment
Assistance Plan; and
``(iii) who has made 360 qualifying monthly
payments on such loan.
``(F) For the purposes of this subsection, the term
`qualifying monthly payment' means any of the
following:
``(i) An on-time applicable monthly payment
under this subsection.
``(ii) An on-time monthly payment under the
standard repayment plan under subsection
(d)(7)(A)(i) of not less than the monthly
payment required under such plan.
``(iii) A monthly payment under any
repayment plan of not less than the monthly
payment that would be required under a standard
repayment plan under section 455(d)(1)(A) with
a repayment period of 10 years.
``(iv) A monthly payment under section 493C
of not less than the monthly payment required
under such section, including a monthly payment
equal to the minimum payment amount permitted
under such section.
``(v) A monthly payment made before the
date of enactment of this subsection under an
income-contingent repayment plan carried out
under section 455(d)(1)(D) (or under an
alternative repayment plan in lieu of repayment
under such an income-contingent repayment plan,
if placed in such an alternative repayment plan
by the Secretary) of not less than the monthly
payment required under such a plan, including a
monthly payment equal to the minimum payment
amount permitted under such a plan.
``(vi) A month when the borrower did not
make a payment because the borrower was in
deferment due to an economic hardship described
in section 435(o).
``(vii) A month that ended before the date
of enactment of this subsection when the
borrower did not make a payment because the
borrower was in a period deferment or
forbearance described in section
685.209(k)(4)(iv) of title 34, Code of Federal
Regulations (as in effect on the date of
enactment of this subsection).
``(G) With respect to carrying out section
494(a)(2) for the Repayment Assistance Plan, an
individual may elect to opt out of the disclosures
required under section 494(a)(2)(A)(ii) in accordance
with the procedures established under section
493C(c)(2)(B).
``(2) Balance assistance for distressed borrowers.--
``(A) Interest subsidy.--With respect to a borrower
of a loan made under this part, for each month for
which such a borrower makes an on-time applicable
monthly payment required under paragraph (1)(A) and
such monthly payment is insufficient to pay the total
amount of interest that accrues for the month on all
loans of the borrower repaid pursuant to the Repayment
Assistance Plan under this subsection, the amount of
interest accrued and not paid for the month shall not
be charged to the borrower.
``(B) Matching principal payment.--With respect to
a borrower of a loan made under this part and not in a
period of deferment or forbearance, for each month for
which a borrower makes an on-time applicable monthly
payment required under paragraph (1)(A) and such
monthly payment reduces the total outstanding principal
balance of all loans of the borrower repaid pursuant to
the Repayment Assistance Plan under this subsection by
less than $50, the Secretary shall reduce such total
outstanding principal balance of the borrower by an
amount that is equal to--
``(i) the amount that is the lesser of--
``(I) $50; or
``(II) the total amount paid by the
borrower for such month pursuant to
paragraph (1)(A), minus
``(ii) the total amount paid by the
borrower for such month pursuant to paragraph
(1)(A) that is applied to such total
outstanding principal balance.
``(3) Definitions.--In this paragraph:
``(A) Adjusted gross income.--The term `adjusted
gross income', when used with respect to a borrower,
means the adjusted gross income (as such term is
defined in section 62 of the Internal Revenue Code of
1986) of the borrower (and the borrower's spouse, as
applicable) for the most recent taxable year, except
that, in the case of a married borrower who files a
separate Federal income tax return, the term does not
include the adjusted gross income of the borrower's
spouse.
``(B) Applicable monthly payment.--
``(i) In general.--Except as provided in
clause (ii) or (iii), the term `applicable
monthly payment' means, when used with respect
to a borrower, the amount equal to--
``(I) the applicable base payment
of the borrower, divided by 12; minus
``(II) $50 for each dependent child
of the borrower.
``(ii) Minimum amount.--In the case of a
borrower with an applicable monthly payment
amount calculated under clause (i) that is less
than $10, the applicable monthly payment of the
borrower shall be $10.
``(iii) Final payment.--In the case of a
borrower whose total outstanding balance of
principal and interest on all of the loans of
the borrower that are repaid pursuant to the
Repayment Assistance Plan is less than the
applicable monthly payment calculated pursuant
to clause (i) or (ii), as applicable, then the
applicable monthly payment of the borrower
shall be the total outstanding balance of
principal and interest on all such loans.
``(iv) Base payment.--The amount of the
applicable base payment for a borrower with an
adjusted gross income of--
``(I) not more than $10,000, is
$120;
``(II) more than $10,000 and not
more than $20,000, is 1 percent of such
adjusted gross income;
``(III) more than $20,000 and not
more than $30,000, is 2 percent of such
adjusted gross income;
``(IV) more than $30,000 and not
more than $40,000, is 3 percent of such
adjusted gross income;
``(V) more than $40,000 and not
more than $50,000, is 4 percent of such
adjusted gross income;
``(VI) more than $50,000 and not
more than $60,000, is 5 percent of such
adjusted gross income;
``(VII) more than $60,000 and not
more than $70,000, is 6 percent of such
adjusted gross income;
``(VIII) more than $70,000 and not
more than $80,000, is 7 percent of such
adjusted gross income;
``(IX) more than $80,000 and not
more than $90,000, is 8 percent of such
adjusted gross income;
``(X) more than $90,000 and not
more than $100,000, is 9 percent of
such adjusted gross income; and
``(XI) more than $100,000, is 10
percent of such adjusted gross income.
``(v) Dependent child of the borrower.--For
the purposes of this paragraph, the term
`dependent child of the borrower' means an
individual who--
``(I) is under 17 years of age; and
``(II) is the borrower's dependent
child or another person who lives with
and receives more than one-half of
their support from the borrower.''.
(e) Federal Consolidation Loans.--Section 455(g) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(g)) is amended by adding at the
end the following new paragraph:
``(3) Consolidation loans made on or after july 1, 2026.--
Notwithstanding subsections (b)(5), (c)(2), and (c)(3)(A) and
(B) of section 428C, a Federal Direct Consolidation Loan
offered to a borrower under this part on or after July 1, 2026,
may only be repaid pursuant to a repayment plan described in
subsection (d)(7)(A)(i) or (ii) of this section, as applicable,
and the repayment schedule of such a Consolidation Loan shall
be determined in accordance with such repayment plan.''.
(f) Income-based Repayment.--
(1) Amendments.--
(A) Excepted consolidation loan defined.--Section
493C(a)(2) of the Higher Education Act of 1965 (20
U.S.C. 1098e(a)(2)) is amended to read as follows:
``(2) Excepted consolidation loan.--
``(A) In general.--The term `excepted consolidation
loan' means--
``(i) a consolidation loan under section
428C, or a Federal Direct Consolidation Loan,
if the proceeds of such loan were used to the
discharge the liability on an excepted PLUS
loan; or
``(ii) a consolidation loan under section
428C, or a Federal Direct Consolidation Loan,
if the proceeds of such loan were used to
discharge the liability on a consolidation loan
under section 428C or a Federal Direct
Consolidation Loan described in clause (i).
``(B) Exclusion.--The term `excepted consolidation
loan' does not include a Federal Direct Consolidation
Loan described in subparagraph (A) that (on the day
before the date of enactment of this subparagraph) was
being repaid pursuant to the Income-Contingent
Repayment (ICR) plan in accordance with section
685.209(a) of title 34, Code of Federal Regulations (as
in effect on June 30, 2023).''.
(B) Terms of income-based repayment.--Section
493C(b) of the Higher Education Act of 1965 (20 U.S.C.
1098e(b)) is amended--
(i) by amending paragraph (1) to read as
follows:
``(1) a borrower of any loan made, insured, or guaranteed
under part B or D (other than an excepted PLUS loan or excepted
consolidation loan), may elect to have the borrower's aggregate
monthly payment for all such loans not exceed the result
described in subsection (a)(3)(B) divided by 12;'';
(ii) in paragraph (3)--
(I) in subparagraph (B)--
(aa) in clause (i)--
(AA) by striking
subclause (II); and
(BB) by striking
``the borrower'' and
all the follows through
``ends'' and inserting
``the borrower ends'';
and
(bb) in clause (ii)--
(AA) by striking
subclause (II);
(BB) by striking
``the borrower'' and
all the follows through
``ends'' and inserting
``the borrower ends'';
and
(CC) by striking
``or'' at the end;
(iii) by repealing paragraph (6);
(iv) in paragraph (7)(B)--
(I) in the matter preceding clause
(i), by striking ``for a period of time
prescribed by the Secretary, not to
exceed 25 years'' and inserting the
following: ``for 25 years (in the case
of a borrower who is repaying at least
one loan for a program of study for
which a graduate credential (as defined
in section 472A)) is awarded, or, for
20 years (in the case of a borrower who
is not repaying at least one such
loan)'';
(II) in clause (i), by inserting
``(as such paragraph was in effect on
the day before the date of the repeal
of paragraph (6))'' after ``paragraph
(6)''; and
(III) in clause (iv), by inserting
``(as such section was in effect on the
day before the date of the repeal of
paragraph (6))'' after ``section
455(d)(1)(D)''; and
(v) in paragraph (8), by striking
``standard repayment plan'' and inserting
``standard repayment plan under section
428(b)(9)(A)(i) or 455(d)(1)(A), or the
Repayment Assistance Program under section
455(q)''.
(C) Eligibility determinations.--Section 493C(c)(2)
of the Higher Education Act of 1965 (20 U.S.C.
1098e(c)(2)) is further amended--
(i) in subparagraph (A), by inserting ``(as
in effect on the day before the date of repeal
of subsection (e) of section 455)'' after
``section 455(e)(1)''; and
(ii) in subparagraph (B), by inserting
``(as in effect on the day before the date of
repeal of subsection (e) of section 455)''
after ``section 455(e)(8)''.
(D) Termination of special terms for new borrowers
on and after july 1, 2014.--Section 493C of the Higher
Education Act of 1965 (20 U.S.C. 1098e(e)) is further
amended by striking subsection (e).
(2) Effective date and application.--The amendments made by
this subsection shall take effect on the date of enactment of
this title, and shall apply with respect to any borrower who is
in repayment before, on, or after the date of enactment of this
title.
SEC. 30022. DEFERMENT; FORBEARANCE.
(a) Heading Amendment.--Section 455(f) of the Higher Education Act
of 1965 (20 U.S.C. 1087e(f)) is amended by striking the subsection
heading and inserting the following: ``Deferment; Forbearance''.
(b) Sunset of Economic Hardship and Unemployment Deferments.--
Section 455(f) of the Higher Education Act of 1965 (20 U.S.C.1087e(f))
is amended--
(1) in paragraph (2)--
(A) in subparagraph (B), by striking ``not in'' and
inserting ``subject to paragraph (7), not in'' ; and
(B) in subparagraph (D), by striking ``not in'' and
inserting ``subject to paragraph (7), not in''; and
(2) by adding at the end the following:
``(7) Sunset of unemployment and economic hardship
deferments.--A borrower who receives a loan made under this
part on or after July 1, 2025, shall not be eligible to defer
such loan under subparagraph (B) or (D) of paragraph (2).''.
(c) Forbearance on Loans Made Under This Part on or After July 1,
2025.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C.
1087e(f)) is amended by adding at the end the following:
``(8) Forbearance on loans made under this part on or after
july 1, 2025.--A borrower who receives a loan made under this
part on or after July 1, 2025--
``(A) may only be eligible for a forbearance on
such loan pursuant to section 428(c)(3)(B) that does
not exceed 9 months during any 24-month period; and
``(B) in the case of a borrower who is serving in a
medical or dental internship or residency program (as
such program is described in section
428(c)(3)(A)(i)(I)), may be eligible for a forbearance
on such loan pursuant to 428(c)(3)(A)(i)(I), during
which--
``(i) for the first 4 12-month intervals,
interest shall not accrue; and
``(ii) for any subsequent 12-month
interval, interest shall accrue.''.
SEC. 30023. LOAN REHABILITATION.
(a) Updating Loan Rehabilitation Limits.--
(1) FFEL and direct loans.--Section 428F(a)(5) of the
Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(5)) is
amended by striking ``one time'' and inserting ``two times''.
(2) Perkins loans.--Section 464(h)(1)(D) of the Higher
Education Act of 1965 (20 U.S.C. 1087dd(h)(1)(D)) is amended by
striking ``once'' and inserting ``twice''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the date of enactment of this Act, and
shall apply with respect to any loan made, insured, or
guaranteed under title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.).
(b) Minimum Monthly Payment Amount.--Section 428F(a)(1)(B) of the
Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(1)(B)) is amended by
adding at the end the following: ``With respect a loan made under part
D on or after July 1, 2025, a monthly payment amount described in
subparagraph (A) may not be less than $10.''.
SEC. 30024. PUBLIC SERVICE LOAN FORGIVENESS.
(a) Repayment Assistance Plan.--Section 455(m)(1)(A) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)) is amended--
(1) in clause (iii), by striking ``; or'' and inserting a
semicolon;
(2) in clause (iv), by striking ``; and'' and inserting
``(as in effect on the day before the date of the repeal of
subsection (e) of this section); or''; and
(3) by adding at the end the following new clause:
``(v) on-time payments under the Repayment
Assistance Plan under section 455(q); and''.
(b) Public Service Job.--Section 455(m)(3)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(m)(3)(B)) is amended--
(1) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively, and adjusting the margins accordingly;
(2) by striking ``The term'' and inserting the following:
``(i) In general.--The term''; and
(3) by adding at the end the following:
``(ii) Exclusion.--The term `public service
job' does not include time served in a medical
or dental internship or residency program (as
such program is described in section
428(c)(3)(A)(i)(I)) by an individual who, as of
June 30, 2025, has not borrowed a Federal
Direct PLUS Loan or a Federal Direct
Unsubsidized Stafford Loan for a program of
study that awards a graduate credential upon
completion of such program.''.
SEC. 30025. STUDENT LOAN SERVICING.
Paragraph (1) of section 458(a) of the Higher Education Act of 1965
(20 U.S.C. 1087h(a)(1)) is amended to read as follows:
``(1) Additional mandatory funds for fiscal years 2025 and
2026.--For each of the fiscal years 2025 and 2026 there shall
be available to the Secretary (in addition to any other amounts
appropriated under any appropriations Act for administrative
costs under this part and part B and out of any money in the
Treasury not otherwise appropriated) funds to be obligated for
administrative costs under this part and part B, including the
costs of the direct student loan programs under this part, not
to exceed $500,000,000 in each such fiscal year.''.
Subtitle D--Pell Grants
SEC. 30031. ELIGIBILITY.
(a) Foreign Income and Federal Pell Grant Eligibility.--
(1) Adjusted gross income defined.--Section 401(a)(2)(A) of
the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is
amended to read as follows:
``(A) the term `adjusted gross income' means--
``(i) in the case of a dependent student,
for the second tax year preceding the academic
year--
``(I) the adjusted gross income (as
defined in section 62 of the Internal
Revenue Code of 1986) of the student's
parents; plus
``(II) the foreign income (as
described in section 480(b)(5)) of the
student's parents; and
``(ii) in the case of an independent
student, for the second tax year preceding the
academic year--
``(I) the adjusted gross income (as
defined in section 62 of the Internal
Revenue Code of 1986) of the student
(and the student's spouse, if
applicable); plus
``(II) the foreign income (as
described in section 480(b)(5)) of the
student (and the student's spouse, if
applicable);''.
(2) Sunset.--Section 401(b)(1)(D) of the Higher Education
Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended by striking
``A student'' and inserting ``For each academic year beginning
before July 1, 2025, a student''.
(3) Conforming amendment.--Section 479A(b)(1)(B) of the
Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is
amended--
(A) by striking clause (v); and
(B) by redesignating clauses (vi) and (vii) as
clauses (v) and (vi), respectively.
(b) Definition of Full Time Enrollment for Federal Pell Grant
Eligibility.--Section 401(a)(2) of the Higher Education Act of 1965 (20
U.S.C. 1070a(a)(2)) is further amended--
(1) in subparagraph (E), by striking ``and'' after the
semicolon;
(2) in subparagraph (F), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(G) notwithstanding section 481(a)(2)(A)(iii),
the terms `full time' and `full-time' (except with
respect to subsection (d)(4) when used as part of the
term `normal full-time workload') mean, with respect to
a student enrolled in an undergraduate course of study,
the student is expected to complete at least 30
semester or trimester hours or 45 quarter credit hours
(or the clock hour equivalent) in each academic year a
student is enrolled in the course of study.''.
(c) Federal Pell Grant Ineligibility Due to a High Student Aid
Index.--Section 401(b)(1) of the Higher Education Act of 1965 (20
U.S.C. 1070a-1(b)(1)) is amended by adding at the end the following:
``(F) Ineligibility of students with a high student
aid index.--Notwithstanding subparagraphs (A) through
(E), a student shall not be eligible for a Federal Pell
Grant under this subsection for an academic year in
which the student has a student aid index that equals
or exceeds twice the amount of the total maximum
Federal Pell Grant for such academic year.''.
(d) No Federal Pell Grant Eligibility for Students Enrolled Less
Than Half Time.--Section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a) is further amended--
(1) in subsection (b)--
(A) by striking ``(2) Less'' and inserting ``(2)(A)
Less''; and
(B) by inserting after subparagraph (A) (as so
designated by subparagraph (A) of this subsection) the
following new subparagraph:
``(B) Less than half-time enrollment.--Notwithstanding
subparagraph (A), a student who first receives a Federal Pell
Grant on or after July 1, 2025, shall not be eligible for an
award under this subsection for any academic year beginning
after such date in which the student is enrolled in an eligible
program of an institution of higher education on less than a
half-time basis. The Secretary shall update the schedule of
reductions described in subparagraph (A) in accordance with
this subparagraph, including for students receiving the minimum
Federal Pell Grant.'';
(2) in subsection (c)(6)(A), by inserting ``, and the
eligibility requirement of enrollment on at least a half-time
basis under subsection (b)(2),'' after ``(b)(1)''; and
(3) in subsection (d)(5)(A), by inserting ``(and at least
half time, in the case of a student who first receives a
Federal Pell Grant under subsection (b) on or after July 1,
2025)'' after ``full time''.
(e) Effective Date and Application.--The amendments made by this
section shall take effect on July 1, 2025, and shall apply with respect
to award year 2025-2026 and each subsequent award year.
SEC. 30032. WORKFORCE PELL GRANTS.
(a) In General.--Section 401 of the Higher Education Act of 1965
(20 U.S.C. 1070a) is amended by adding at the end the following:--
``(k) Workforce Pell Grant Program.--
``(1) In general.--For the award year beginning on July 1,
2026, and each subsequent award year, the Secretary shall award
grants (to be known as `Workforce Pell Grants') to eligible
students under paragraph (2) in accordance with this
subsection.
``(2) Eligible students.--To be eligible to receive a
Workforce Pell Grant under this subsection for any period of
enrollment, a student shall meet the eligibility requirements
for a Federal Pell Grant under this section, except that the
student--
``(A) shall be enrolled, or accepted for
enrollment, in an eligible program under section
481(b)(3) (hereinafter referred to as an `eligible
workforce program'); and
``(B) may not--
``(i) be enrolled, or accepted for
enrollment, in a program of study that leads to
a graduate credential; or
``(ii) have attained such a credential.
``(3) Terms and conditions of awards.--The Secretary shall
award Workforce Pell Grants under this subsection in the same
manner and with the same terms and conditions as the Secretary
awards Federal Pell Grants under this section, except that--
``(A) each use of the term `eligible program'
(except in subsections (b)(9)(A) and (d)(2)) shall be
substituted by `eligible workforce program under
section 481(b)(3)'; and
``(B) a student who is eligible for a grant equal
to less than the amount of the minimum Federal Pell
Grant because the eligible workforce program in which
the student is enrolled or accepted for enrollment is
less than an academic year (in hours of instruction or
weeks of duration) may still be eligible for a
Workforce Pell Grant in an amount that is prorated
based on the length of the program.
``(4) Prevention of double benefits.--No eligible student
described in paragraph (2) may concurrently receive a grant
under both this subsection and--
``(A) subsection (b); or
``(B) subsection (c).
``(5) Duration limit.--Any period of study covered by a
Workforce Pell Grant awarded under this subsection shall be
included in determining a student's duration limit under
subsection (d)(5).''.
(b) Program Eligibility for Workforce Pell Grants.--Section 481(b)
of the Higher Education Act of 1965 (20 U.S.C. 1088(b)) is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following:
``(3)(A) A program is an eligible program for purposes of the
Workforce Pell Grant program under section 401(k) only if--
``(i) it is a program of at least 150 clock hours of
instruction, but less than 600 clock hours of instruction, or
an equivalent number of credit hours, offered by an eligible
institution during a minimum of 8 weeks, but less than 15
weeks;
``(ii) it is not offered as a correspondence course, as
defined in 600.2 of title 34, Code of Federal Regulations (as
in effect on September 20, 2020);
``(iii) the Governor of a State, after consultation with
the State board, determines that the program--
``(I) provides an education aligned with the
requirements of high-skill, high-wage (as identified by
the State pursuant to section 122 of the Carl D.
Perkins Career and Technical Education Act (20 U.S.C.
2342)), or in-demand industry sectors or occupations;
``(II) meets the hiring requirements of potential
employers in the sectors or occupations described in
subclause (I);
``(III) either--
``(aa) leads to a recognized postsecondary
credential that is stackable and portable
across more than one employer; or
``(bb) with respect to students enrolled in
the program--
``(AA) prepares such students for
employment in an occupation for which
there is only one recognized
postsecondary credential; and
``(BB) provides such students with
such a credential upon completion of
such program; and
``(IV) prepares students to pursue 1 or more
certificate or degree programs at 1 or more
institutions of higher education (which may include the
eligible institution providing the program), including
by ensuring--
``(aa) that a student, upon completion of
the program and enrollment in such a related
certificate or degree program, will receive
academic credit for the Workforce Pell program
that will be accepted toward meeting such
certificate or degree program requirements; and
``(bb) the acceptability of such credit
toward meeting such certificate or degree
program requirements; and
``(iv) after the Governor of such State makes the
determination that the program meets the requirements under
clause (iii), the Secretary determines that--
``(I) the program has been offered by the eligible
institution for not less than 1 year prior to the date
on which the Secretary makes a determination under this
clause;
``(II) for each award year, the program has a
verified completion rate of at least 70 percent, within
150 percent of the normal time for completion;
``(III) for each award year, the program has a
verified job placement rate of at least 70 percent,
measured 180 days after completion; and
``(IV) for each award year, the median value-added
earnings (as defined in section 420W) of students who
completed such program for the most recent year for
which data is available exceeds the median total price
(as defined in section 454(d)(3)(D)) charged to
students in such award year.
``(B) In this paragraph:
``(i) The term `eligible institution' means an
institution of higher education (as defined in section
102), or any other entity that has entered into a
program participation agreement with the Secretary
under section 487(a) (without regard to whether that
entity is accredited by a national recognized
accrediting agency or association), which has not been
subject, during any of the preceding 3 years, to--
``(I) any suspension, emergency action, or
termination under this title;
``(II) in the case of an institution of
higher education, any adverse action by the
institution's accrediting agency or association
that revokes or denies accreditation for the
institution; or
``(III) any final action by the State in
which the institution or other entity holds its
legal domicile, authorization, or accreditation
that revokes the institution's or entity's
license or other authority to operate in such
State.
``(ii) The term `Governor' means the chief
executive of a State.
``(iii) The terms `industry or sector partnership',
`in-demand industry sector or occupation', `recognized
postsecondary credential', and `State board' have the
meanings given such terms in section 3 of the Workforce
Innovation and Opportunity Act.''.
(c) Student Eligibility.--Section 484(a)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1091(a)(1)) is amended by inserting ``or, for
purposes of section 401(k), at an entity (other than an institution of
higher education) that meets the requirements of section
481(b)(3)(B)(i)'' after ``section 487''.
(d) Effective Date; Applicability.--The amendments made by this
section shall take effect on July 1, 2026, and shall apply with respect
to award year 2026-2027 and each succeeding award year.
SEC. 30033. PELL SHORTFALL.
Section 401(b)(7)(A) of the Higher Education Act of 1965 (20 U.S.C.
1070a(b)(7)(A)) is amended--
(1) in clause (iii)--
(A) by striking ``$2,170,000,000'' and inserting
``$5,351,000,000''; and
(B) by striking ``and'' at the end;
(2) in clause (iv)--
(A) by striking ``$1,236,000,000'' and inserting
``$6,058,000,000''; and
(B) by striking `` and each succeeding fiscal
year.'' and inserting a semicolon; and
(3) by adding at the end the following:
``(v) $3,743,000,000 for fiscal year 2028;
and
``(vi) $1,236,000,000 for each succeeding
fiscal year.''.
Subtitle E--Accountability
SEC. 30041. AGREEMENTS WITH INSTITUTIONS.
Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d)
is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) by redesignating paragraph (6) as paragraph
(7); and
(C) by inserting after paragraph (5) the following
new paragraph:
``(6) provide annual reimbursements to the Secretary in
accordance with the requirements under subsection (d); and'';
and
(2) by adding at the end the following new subsection:
``(d) Reimbursement Requirements.--
``(1) Annual reimbursements required.--Beginning in award
year 2028-2029, each institution of higher education
participating in the direct student loan program under this
part shall, for qualifying student loans, remit to the
Secretary, at such time as the Secretary may specify, an annual
reimbursement for each student cohort of the institution, based
on the non-repayment balance of such cohort and calculated in
accordance with paragraph (3).
``(2) Student cohorts.--
``(A) Cohorts established.--For each institution of
higher education participating in the direct student
loan program under this part, the Secretary shall
establish student cohorts, beginning with award year
2027-2028, as follows:
``(i) Completing student cohort.--For each
program of study at such institution, a student
cohort comprised of all students who received
Federal financial assistance under this title
and who completed such program during such
award year.
``(ii) Undergraduate non-completing student
cohort.--For such institution, a student cohort
comprised of all students who received Federal
financial assistance under this title, who were
enrolled in the institution during the previous
award year in a program of study leading to an
undergraduate credential, and who at the time
the cohort is established--
``(I) have not completed such
program of study; and
``(II) are not enrolled at the
institution in any program of study
leading to an undergraduate credential.
``(iii) Graduate non-completing student
cohort.--For each program of study leading to a
graduate credential at such institution, a
student cohort comprised of all students who
received Federal financial assistance under
this title, who were enrolled in such program
during the previous award year, and who at the
time the cohort is established--
``(I) have not completed such
program of study; and
``(II) are not enrolled in such
program.
``(B) Qualifying student loan.--For the purposes of
this subsection, the term `qualifying student loan'
means a loan made under this part on or after July 1,
2027, that--
``(i) was made to a student included in a
student cohort of an institution or to a parent
on behalf of such a student;
``(ii) except in the case of a loan
described in clause (i) or (ii) of subparagraph
(C), is not included in any other student
cohort of any institution of higher education;
``(iii) is not in--
``(I) a medical or dental
internship or residency forbearance
described in section
428(c)(3)(A)(i)(I), section 428B(a)(2),
section 428H(a), or section
685.205(a)(3) of title 34, Code of
Federal Regulations;
``(II) a graduate fellowship
deferment described in section
455(f)(2)(A)(ii);
``(III) rehabilitation training
program deferment described under
section 455(f)(2)(A)(ii);
``(IV) an in-school deferment
described under section
455(f)(2)(A)(i);
``(V) a cancer deferment described
under section 455(f)(3);
``(VI) a military service deferment
described under section 455(f)(2)(C);
or
``(VII) a post-active duty student
deferment described under section 493D;
and
``(iv) is not in default.
``(C) Special circumstances.--
``(i) Multiple credentials.--In the case of
a student who completes two or more programs of
study during the same award year, each
qualifying student loan of the student shall be
included in the student cohort for each of such
program of study for such award year.
``(ii) Treatment of certain consolidation
loans.--A Federal Direct Consolidation loan
made under this title shall not be considered a
qualifying student loan for a student cohort
for an award year if all of the loans included
in such consolidation loan are attributable to
another student cohort.
``(iii) Consolidation after inclusion in a
student cohort.--If a qualifying student loan
is consolidated into a consolidation loan under
this title after such qualifying student loan
has been included in a student cohort, the
percentage of the consolidation loan that was
attributable to such student cohort at the time
of consolidation shall remain attributable to
the student cohort for the life of the
consolidation loan.
``(3) Calculation of reimbursement.--
``(A) Reimbursement payment formula.--For each
student cohort of an institution of higher education
established under this subsection, the annual
reimbursement for such cohort shall be equal to--
``(i) the reimbursement percentage for the
cohort, determined in accordance with
subparagraph (B); multiplied by
``(ii) the non-repayment balance for the
cohort for the award year, determined in
accordance with subparagraph (C).
``(B) Reimbursement percentage.--The reimbursement
percentage of a student cohort of an institution shall
be determined by the Secretary when the cohort is
established, shall remain constant for the life of the
student cohort, and shall be determined as follows:
``(i) Completing student cohorts.--The
reimbursement percentage of a completing
student cohort shall be equal to the percentage
determined by--
``(I) subtracting from one the
quotient of--
``(aa) the median value-
added earnings of students who
completed such program of study
in the most recent award year
for which such earnings data is
available; divided by
``(bb) the median total
price charged to students
included in such cohort; and
``(II) multiplying the difference
determined under subclause (I) by 100.
``(ii) Special circumstances for completing
student cohorts.--
``(I) High-risk cohorts.--
Notwithstanding clause (i), if the
median value-added earnings of a
completing student cohort under clause
(i)(I)(aa) is negative, the
reimbursement percentage of the student
cohort shall be 100 percent.
``(II) Low-risk cohorts.--
Notwithstanding clause (i), if the
median value-added earnings of a
completing student cohort under clause
(i)(I)(aa) exceeds the median total
price of such cohort under clause
(i)(I)(bb), the reimbursement
percentage of the student cohort shall
be 0 percent.
``(iii) Non-completing student cohorts.--
The reimbursement percentage of a non-
completing student cohort shall be determined
based on the most recent data available in the
award year in which the cohort is established,
and--
``(I) for an undergraduate non-
completing student cohort, shall be
equal to the percentage of
undergraduate students who received
Federal financial assistance under this
title at such institution who--
``(aa) did not complete an
undergraduate program of study
at the institution within 150
percent of the program length
of such program; or
``(bb) only in the case of
a two-year institution, did
not, within 6 years after first
enrolling at the two-year
institution, complete a program
of study at a four-year
institution for which a
bachelor's degree (or
substantially similar
credential) is awarded; and
``(II) for a graduate non-
completing student cohort, shall be
equal to the percentage of students who
received Federal financial assistance
under this title at the institution for
the applicable graduate program of
study and who did not complete such
program of study within 150 percent of
the program length.
``(C) Non-repayment loan balance.--
``(i) In general.--For each award year, the
Secretary shall determine the non-repayment
loan balance for such award year for each
student cohort of an institution of higher
education by calculating the sum of--
``(I) for loans in such cohort, the
difference between the total amount of
payments due from all borrowers on such
loans during such year and the total
amount of payments made by all such
borrowers on such loans during such
year; plus
``(II) the total amount of interest
waived, paid, or otherwise not charged
by the Secretary during such year under
the income-based repayment plan
described in section 455(q); plus
``(III) the total amount of
principal and interest forgiven,
cancelled, waived, discharged, repaid,
or otherwise reduced by the Secretary
under any act during such year that is
not included in subclause (II) and was
not discharged or forgiven under
section 437(a), 428J, or section
455(m).
``(ii) Special circumstances.--For the
purpose of calculating the non-repayment loan
balance of student cohorts under this
paragraph, the Secretary shall--
``(I) for each qualifying student
loan in a student cohort that is
included in another student cohort
because the student who borrowed such
loan completed two or more programs of
study during the same award year, the
sum of the amounts described in
subclauses (I) through (III) of clause
(i) for such qualifying student loan
shall be divided equally among each of
the student cohorts in which such loan
is included; and
``(II) for each consolidation loan
in a student cohort--
``(aa) determine the
percentage of the outstanding
principal balance of the
consolidation loan attributable
to such student cohort--
``(AA) at the time
of that loan was
included in such
cohort, in the case of
a loan consolidated
before inclusion in
such cohort; or
``(BB) at the time
of consolidation, in
the case of a loan
consolidated after
inclusion in such
cohort; and
``(bb) include in the
calculations under clause (i)
for such student cohort only
the percentage of the sum of
the amounts described in
subclauses (I) through (III) of
clause (i) for the
consolidation loan for such
year that is equal to the
percentage of the consolidation
loan determined under item
(aa).
``(D) Total price.--With respect to a student who
received Federal financial assistance under this title
and who completes a program of study, the term `total
price' means the total amount, before Federal financial
assistance under this title was applied, a student was
required to pay to complete the program of study. A
student's total price shall be calculated by the
Secretary as the difference between--
``(i) the total amount of tuition and fees
that were charged to such student before the
application of any Federal financial assistance
provided under this title; minus
``(ii) the total amount of grants and
scholarships described in section 480(i)
awarded to such student from non-Federal
sources for such program of study.
``(4) Notification and remittance.--Beginning with the
first award year for which reimbursements are required under
this subsection, and for each succeeding award year, the
Secretary shall--
``(A) notify each institution of higher education
of the amounts and due dates of each annual
reimbursement calculated under paragraph (3) for each
student cohort of the institution within 30 days of
calculating such amounts; and
``(B) require the institution to remit such
payments within 90 days of such notification.
``(5) Penalty for late payments.--
``(A) Three-month delinquency.--If an institution
fails to remit to the Secretary a reimbursement for a
student cohort as required under this subsection within
90 days of receiving notification from the Secretary in
accordance with paragraph (4), the institution shall
pay to the Secretary, in addition to such
reimbursement, interest on such reimbursement payment,
at a rate that is the average rate applicable to the
loans in such student cohort.
``(B) Twelve-month delinquency.--If an institution
fails to remit to the Secretary a reimbursement for a
student cohort as required under this subsection, plus
interest owed in under subparagraph (A), within 12
months of receiving notification from the Secretary in
accordance with paragraph (4), the institution shall be
ineligible to make direct loans to any student enrolled
in the program of study for which the institution has
failed to make the reimbursement payments until such
payment is made.
``(C) Eighteen-month delinquency.--If an
institution fails to remit to the Secretary a
reimbursement for a student cohort as required under
this subsection, plus interest owed under subparagraph
(A), within 18 months of receiving notification from
the Secretary in accordance with paragraph (4), the
institution shall be ineligible to make direct loans or
award Federal Pell Grants under section 401 to any
student enrolled in the institution until such payment
is made.
``(D) Two-year delinquency.--If an institution
fails to remit to the Secretary a reimbursement for a
student cohort as required under this subsection, plus
interest owed under subparagraph (A), within 2 years of
receiving notification from the Secretary in accordance
with paragraph (4), the institution shall be ineligible
to participate in any program under this title for a
period of not less than 10 years.
``(6) Relief for voluntary cessation of federal direct
loans for a program of study.--The Secretary shall, upon the
request of an institution that voluntarily ceases to make
Federal Direct loans to students enrolled in a specific program
of study, reduce the amount of the annual reimbursement owed by
the institution for each student cohort associated with such
program by 50 percent if the institution assures the Secretary
that the institution will not make Federal Direct loans to any
student enrolled in such program of study (or any substantially
similar program of study, as determined by the Secretary) for a
period of not less than 10 award years, beginning with the
first award year that begins after the date on which the
Secretary reduces such reimbursement.
``(7) Reservation of funds for promise grants.--
Notwithstanding any other provision of law, the Secretary shall
reserve the funds remitted to the Secretary as reimbursements
in accordance with this subsection, and such funds shall be
made available to the Secretary only for the purpose of
awarding PROMISE grants in accordance with subpart 11 of part A
of this title.''.
SEC. 30042. CAMPUS-BASED AID PROGRAMS.
(a) Promise Grants.--Part A of title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070c et seq.) is amended by adding at the end the
following:
``Subpart 11--Promoting Real Opportunities to Maximize Investments and
Savings in Education
``SEC. 420S. PROMISE GRANTS.
``For award year 2028-2029 and each succeeding award year, from
reserved funds remitted to the Secretary in accordance with section
454(d) and additional funds made available under section 420V, as
necessary, the Secretary shall award PROMISE grants to eligible
institutions to carry out the activities described in section 420U(c).
PROMISE grants awarded under this subpart shall be awarded on a
noncompetitive basis to each eligible institution that submits a
satisfactory application under section 420T for a 6-year period in an
amount that is determined in accordance with section 420U.
``SEC. 420T. ELIGIBLE INSTITUTIONS; APPLICATION.
``(a) Eligible Institution.--To be eligible for a PROMISE grant
under this subpart, an institution shall--
``(1) be an institution of higher education under section
102, except that an institution described in section
102(a)(1)(C) shall not be an eligible institution under this
subpart; and
``(2) meet the maximum total price guarantee requirements
under subsection (c).
``(b) Application.--An eligible institution seeking a PROMISE grant
under this subpart (including a renewal of such a grant) shall submit
to the Secretary an application, at such time as the Secretary may
require, containing the information required under this subsection.
Such application shall--
``(1) demonstrate that the institution--
``(A) meets the maximum total price guarantee
requirements under subsection (c); and
``(B) will continue to meet the maximum total price
guarantee requirements for each award year during the
grant period with respect to students first enrolling
at the institution for each such award year;
``(2) describe how grant funds awarded under this subpart
will be used by the institution to carry out activities related
to--
``(A) increasing postsecondary affordability,
including--
``(i) the expansion and continuation of the
maximum total price guarantee requirements
under subsection (c); and
``(ii) any other activities to be carried
out by the institution to increase
postsecondary affordability and minimize the
maximum total price for completion paid by
students receiving need-based student aid;
``(B) increasing postsecondary access, which may
include--
``(i) the activities described in section
485E of this Act; and
``(ii) any other activities to be carried
out by the institution to increase
postsecondary access and expand opportunities
for low- and middle-income students; and
``(C) increasing postsecondary student success,
which may include--
``(i) activities to improve completion
rates and reduce time to credential;
``(ii) activities to align programs of
study with the needs of employers, including
with respect to in-demand industry sectors or
occupations (as defined in section 3 of the
Workforce Innovation and Opportunity Act (29
U.S.C. 3102)); and
``(iii) any other activities to be carried
out by the institution to increase value-added
earnings and postsecondary student success;
``(3) describe--
``(A) how the institution will evaluate the
effectiveness of the institution's use of grant funds
awarded under this subpart; and
``(B) how the institution will collect and
disseminate information on promising practices
developed with the use of such grant funds; and
``(4) in the case of an institution that has previously
received a grant under this subpart, contain the evaluation
required under paragraph (3) for each previous grant.
``(c) Maximum Total Price Guarantee Requirements.--As a condition
of eligibility for a PROMISE grant under this subpart, an institution
shall--
``(1) for each award year beginning after the date of
enactment of this subpart, not later than 1 year before the
start of each such award year (except that, for the first award
year beginning after such date of enactment, the institution
shall meet these requirements as soon as practicable after such
date of enactment), determine the maximum total price for
completion, in accordance with subsection (e), for each program
of study at the institution applicable to students in each
income category and student aid index category (as determined
by the Secretary) and publish such information on the
institution's website and in the institution's catalog,
marketing materials, or other official publications;
``(2) for the award year for which the institution is
applying for a PROMISE grant, and at least 1 award year
preceding such award year, provide to each student who first
enrolls, or plans to enroll, in the institution during the
award year and who receives Federal financial aid under this
title a maximum total price guarantee, in accordance with this
section, for the minimum guarantee period applicable to the
student; and
``(3) provide to the Secretary an assurance that the
institution will continue to meet each of the maximum total
price guarantee requirements under this subsection for students
who first enroll, or plan to enroll, in the institution during
each award year included in the grant period.
``(d) Duration of Minimum Guarantee Period.--
``(1) In general.--The minimum period during which a
student shall be provided a guarantee under subsection (c) with
respect to the maximum total price for completion of a program
of study at an institution shall be the average, for the 3 most
recent award years for which data are available, of the median
time to credential of students who completed any undergraduate
program of study at the institution during each such award
year, except that such minimum guarantee period shall not be
less than the program length of the program of study in which
the student is enrolled.
``(2) Limitation.--An institution shall not be required to
provide a maximum total price guarantee under subsection (c) to
a student after the conclusion of the 6-year period beginning
on the first day on which the student enrolled at such
institution.
``(e) Determination of Maximum Total Price for Completion.--
``(1) In general.--For the purposes of subsection (c), an
institution shall determine, prior to the first award year in
which a student enrolls at the institution, the maximum total
price that may be charged to the student for completion of a
program of study at the institution for the minimum guarantee
period applicable to a student, before application of any
Federal Pell Grants or other Federal financial aid under this
title. Such a maximum total price for completion shall be
determined for students in each income category and student aid
index category (as determined by the Secretary). In determining
the maximum total price for completion to be charged to each
such category of students, the institution may consider the
ability of a category of students to pay tuition and fees, but
may not include in such consideration any Federal Pell Grants
or other Federal financial aid awards that may be available to
such category of students under this title.
``(2) Multiple maximum total price guarantees.--In the
event that a student receives more than 1 maximum total price
guarantee because the student is included in more than 1
category of students for which the institution determines a
maximum total price guarantee amount for the purposes of
subsection (c), the maximum total price guarantee applicable to
such student for the purposes of this section shall be equal to
the lowest such guarantee amount.
``SEC. 420U. GRANT AMOUNTS; FLEXIBLE USE OF FUNDS.
``(a) Grant Amount Formula.--
``(1) Formula.--Subject to subsection (b) and section
420V(b), the amount of a PROMISE grant for an eligible
institution for each year of the grant period shall be
calculated by the Secretary annually and shall be equal to the
amount determined by multiplying--
``(A) the lesser of--
``(i) the difference determined by
subtracting one from the quotient of--
``(I) the average, for the 3 most
recent award years for which data are
available, of the median value-added
earnings for each such award year of
students who completed any program of
study of the institution; divided by
``(II) the average, for the 3 most
recent award years for which data are
available, of the maximum total price
for completion determined under section
420T(e) applicable for each such award
year to students enrolled in the
institution in any program of study who
received financial aid under this
title; or
``(ii) the number two;
``(B) the average, for the 3 most recent award
years for which data are available, of the total dollar
amount of Federal Pell Grants awarded to students
enrolled in the institution in each such award year;
and
``(C) the average, for the 3 most recent award
years for which data are available, of the percentage
of low-income students who received Federal financial
assistance under this title who were enrolled in the
institution in each such award year who--
``(i) completed a program of study at the
institution within 100 percent of the program
length of such program; or
``(ii) only in the case of a two-year
institution or a less than two-year
institution--
``(I) transfer to a four-year
institution; and
``(II) within 4 years after first
enrolling at the two-year or less than
two-year institution, complete a
program of study at the four-year
institution for which a bachelor's
degree (or substantially similar
credential) is awarded.
``(2) Definition of low-income.--In this section, the term
`low-income', when used with respect to a student, means that
the student's family income does not exceed the maximum income
in the lowest income category (as determined by the Secretary).
``(b) Maximum Grant Amount.--Notwithstanding subsection (a), the
maximum amount an eligible institution may receive annually for a grant
under this subpart shall be the amount equal to--
``(1) the average, for the 3 most recent award years, of
the number of students enrolled in the institution in an award
year who receive Federal financial aid under this title;
multiplied by
``(2) $5,000.
``(c) Flexible Use of Funds.--A PROMISE grant awarded under this
subpart shall be used by an eligible institution to--
``(1) carry out activities included in the institution's
application for such grant related to postsecondary
affordability, access, and student success;
``(2) evaluate the effectiveness of the activities carried
out with such grant in accordance with section 420T(b)(3)(A);
and
``(3) collect and disseminate promising practices related
to the activities carried out with such grant, in accordance
with section 420T(b)(3)(B).
``SEC. 420V. AVAILABILITY OF FUNDS.
``(a) Used of Reserved Funds.--
``(1) Primary funds.--To carry out this subpart, there
shall be available to the Secretary any funds remitted to the
Secretary as reimbursements in accordance with section 454(d)
for any award year.
``(2) Secondary funds.--Beginning award year 2028-2029, if
the amounts made available to the Secretary under paragraph (1)
to carry out this subpart in any award year are insufficient to
fully fund the PROMISE grants awarded under this subpart in
such award year, there shall be available to the Secretary, in
addition to such amounts, any funds returned to the Secretary
under section 484B in the previous award year.
``(b) Reduction of Grant Amount in Case of Insufficient Funds.--
``(1) In general.--If the amounts made available to the
Secretary under subsection (a) to carry out this subpart for an
award year are not sufficient to provide grants to each
eligible institution in the amount determined under section
420U for such award year, the Secretary shall reduce each such
grant amount by the applicable percentage described in
paragraph (2).
``(2) Applicable percentage.--The applicable percentage
described in this paragraph is the percentage determined by
dividing--
``(A) the amounts made available under subsection
(a) for the award year described in paragraph (1); by
``(B) the total amount that would be necessary to
provide grants to all eligible institutions in the
amounts determined under section 420U for such award
year.
``SEC. 420W. DEFINITIONS.
``In this title:
``(1) Value-added earnings.--
``(A) In general.--With respect to a student who
received Federal financial aid under this title and who
completed a program of study offered by an institution
of higher education, the term `value-added earnings'
means--
``(i) the annual earnings of such student
measured during the applicable earnings
measurement period for such program (as
determined under subparagraph (C)); minus
``(ii) in the case of a student who
completed a program of study that awards--
``(I) an undergraduate credential,
150 percent of the poverty line
applicable to a single individual as
determined under section 673(2) of the
Community Services Block Grant Act (42
U.S.C. 9902(2)) for such year; or
``(II) a graduate credential, 300
percent of the poverty line applicable
to a single individual as determined
under section 673(2) of the Community
Services Block Grant Act (42 U.S.C.
9902(2)) for such year.
``(B) Geographic adjustment.--
``(i) In general.--Except as provided in
clause (ii), the Secretary shall use the
geographic location of the institution at which
a student completed a program of study to
adjust the value-added earnings of the student
calculated under subparagraph (A) by dividing--
``(I) the difference between
clauses (i) and (ii) of such
subparagraph; by
``(II) the most recent regional
price parity index of the Bureau of
Economics Analysis for the State or, as
applicable, metropolitan area in which
such institution is located.
``(ii) Exception.--The value-added earnings
of a student calculated under subparagraph (A)
shall not be adjusted based on geographic
location in accordance with clause (i) if such
student attended principally through distance
education.
``(C) Earnings measurement period.--
``(i) In general.--For the purpose of
calculating the value-added earnings of a
student, except as provided in clause (ii), the
annual earnings of a student shall be
measured--
``(I) in the case of a program of
study that awards an undergraduate
certificate, post baccalaureate
certificate, or graduate certificate, 1
year after the student completes such
program;
``(II) in the case of a program of
study that awards an associate's degree
or master's degree, 2 years after the
student completes such program; and
``(III) in the case of a program of
study that awards a bachelor's degree,
doctoral degree, or professional
degree, 4 years after the student
completes such program.
``(ii) Exception.--The Secretary may, as
the Secretary determines appropriate based on
the characteristics of a program of study,
extend an earnings measurement period described
in clause (i) for a program of study that--
``(I) requires completion of an
additional educational program after
completion of the program of study in
order to obtain a licensure associated
with the credential awarded for such
program of study; and
``(II) when combined with the
program length of such additional
educational program for licensure, has
a total program length that exceeds the
relevant earnings measurement period
prescribed for such program of study
under clause (i),
except that in no case shall the annual
earnings of a student be measured more than 1
year after the student completes such
additional educational program.
``(2) Program length.--The term `program length' means the
minimum amount of time in weeks, months, or years that is
specified in the catalog, marketing materials, or other
official publications of an institution of higher education for
a full-time student to complete the requirements for a specific
program of study.''.
(b) Institutional Refunds.--Section 484B of the Higher Education
Act of 1965 (20 U.S.C. 1091b) is amended by adding at the end the
following:
``(f) Reservation of Funds for PROMISE Grants.--Notwithstanding any
other provision of law, the Secretary shall reserve the funds returned
to the Secretary under this section for 1 year after the return of such
funds for the purpose of awarding PROMISE grants in accordance with
subpart 4 of part A of this title.''.
Subtitle F--Regulatory Relief
SEC. 30051. REGULATORY RELIEF.
(a) 90/10 Rule.--Section 487 of the Higher Education Act of 1965
(20 U.S.C. 1094) is amended--
(1) in subsection (a), by repealing paragraph (24);
(2) by striking subsection (d); and
(3) by redesignating subsections (e) through (j) as
subsections (d) through (i), respectively.
(b) Gainful Employment.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.) is amended--
(1) in section 101(b)(1), by striking ``gainful employment
in'';
(2) in section 102--
(A) in subsection (b)(1)(A)(i), by striking
``gainful employment in''; and
(B) in subsection (c)(1)(A), by striking ``gainful
employment in''; and
(3) in section 481(b)(1)(A)(i), by striking ``gainful
employment in''.
(c) Other Repeals.--The following regulations (including any
supplement or revision to such regulations) are repealed and shall have
no legal effect:
(1) Closed school discharges.--Sections 674.33(g),
682.402(d), and 685.214 of title 34, Code of Federal
Regulations (relating to closed school discharges), as added or
amended by the final regulations published by the Department of
Education in the Federal Register on November 1, 2022 (87 Fed.
Reg. 65904 et seq.).
(2) Borrower defense to repayment.--Subpart D of part 685
of title 34, Code of Federal Regulations (relating to borrower
defense to repayment), as added or amended by the final
regulations published by the Department of Education in the
Federal Register on November 1, 2022 (87 Fed. Reg. 65904 et
seq.).
(d) Effect of Repeal.--Any regulations repealed by subsection (c)
that were in effect on June 30, 2023, are restored and revived as if
the repeal of such regulations under such subsection had not taken
effect.
(e) Prohibition.--The Secretary of Education may not implement any
rule, regulation, policy, or executive action specified in this section
(or a substantially similar rule, regulation, policy, or executive
action) unless authority for such implementation is explicitly provided
in an Act of Congress.
Subtitle G--Limitation on Authority
SEC. 30061. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR
ISSUE REGULATIONS AND EXECUTIVE ACTIONS.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.) is amended by inserting after section 492 the following:
``SEC. 492A. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR
ISSUE REGULATIONS AND EXECUTIVE ACTIONS.
``(a) Draft Regulations.--Beginning on the date of enactment of
this section, a draft regulation implementing this title (as described
in section 492(b)(1)) that is determined by the Secretary to be
economically significant shall be subject to the following requirements
(regardless of whether negotiated rulemaking occurs):
``(1) The Secretary shall determine whether the draft
regulation, if implemented, would result in an increase in a
subsidy cost.
``(2) If the Secretary determines under paragraph (1) that
the draft regulation would result in an increase in a subsidy
cost, then the Secretary may not take any further action with
respect to such regulation.
``(b) Proposed or Final Regulations and Executive Actions.--
Beginning on the date of enactment of this section, the Secretary may
not issue a proposed rule, final regulation, or executive action
implementing this title if the Secretary determines that the rule,
regulation, or executive action--
``(1) is economically significant; and
``(2) would result in an increase in a subsidy cost.
``(c) Relationship to Other Requirements.--The analyses required
under subsections (a) and (b) shall be in addition to any other cost
analysis required under law for a regulation implementing this title,
including any cost analysis that may be required pursuant to Executive
Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and
review), Executive Order 13563 (76 Fed. Reg. 3821; relating to
improving regulation and regulatory review), or any related or
successor orders.
``(d) Definition.--In this section, the term `economically
significant', when used with respect to a draft, proposed, or final
regulation or executive action, means that the regulation or executive
action is likely, as determined by the Secretary--
``(1) to have an annual effect on the economy of
$100,000,000 or more; or
``(2) to adversely affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or
tribal governments or communities.''.
TITLE IV--ENERGY AND COMMERCE
Subtitle A--Energy
SEC. 41001. RESCISSIONS RELATING TO CERTAIN INFLATION REDUCTION ACT
PROGRAMS.
(a) State-based Home Energy Efficiency Contractor Training
Grants.--The unobligated balance of any amounts made available under
subsection (a) of section 50123 of Public Law 117-169 (42 U.S.C.
18795b) is rescinded.
(b) Funding for Department of Energy Loan Programs Office.--The
unobligated balance of any amounts made available under subsection (b)
of section 50141 of Public Law 117-169 (136 Stat. 2042) is rescinded.
(c) Advanced Technology Vehicle Manufacturing.--The unobligated
balance of any amounts made available under subsection (a) of section
50142 of Public Law 117-169 (136 Stat. 2044) is rescinded.
(d) Energy Infrastructure Reinvestment Financing.--The unobligated
balance of any amounts made available under subsection (a) of section
50144 of Public Law 117-169 (136 Stat. 2044) is rescinded.
(e) Tribal Energy Loan Guarantee Program.--The unobligated balance
of any amounts made available under subsection (a) of section 50145 of
Public Law 117-169 (136 Stat. 2045) is rescinded.
(f) Transmission Facility Financing.--The unobligated balance of
any amounts made available under subsection (a) of section 50151 of
Public Law 117-169 (42 U.S.C. 18715) is rescinded.
(g) Grants to Facilitate the Siting of Interstate Electricity
Transmission Lines.--The unobligated balance of any amounts made
available under subsection (a) of section 50152 of Public Law 117-169
(42 U.S.C. 18715a) is rescinded.
(h) Interregional and Offshore Wind Electricity Transmission
Planning, Modeling, and Analysis.--The unobligated balance of any
amounts made available under subsection (a) of section 50153 of Public
Law 117-169 (42 U.S.C. 18715b) is rescinded.
(i) Advanced Industrial Facilities Deployment Program.--The
unobligated balance of any amounts made available under subsection (a)
of section 50161 of Public Law 117-169 (42 U.S.C. 17113a) is rescinded.
SEC. 41002. FERC CERTIFICATES AND FEES FOR CERTAIN ENERGY
INFRASTRUCTURE AT INTERNATIONAL BOUNDARIES OF THE UNITED
STATES.
(a) Definitions.--In this section:
(1) Certificate of crossing.--The term ``certificate of
crossing'' means a permit for the construction, connection,
operation, or maintenance of a cross-border segment.
(2) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(3) Covered facility.--The term ``covered facility''
means--
(A) an oil, natural gas, hydrocarbon liquids,
refined petroleum products, hydrogen, or carbon dioxide
pipeline;
(B) a pipeline for the movement of any other
energy-related product; and
(C) an electric transmission facility.
(4) Cross-border segment.--The term ``cross-border
segment'' means a segment, as determined by the Commission, of
a covered facility that is located at an international boundary
between--
(A) the United States and Canada; or
(B) the United States and Mexico.
(5) Presidential permit.--The term ``Presidential permit''
means a permit or other approval issued or required by the
President under or pursuant to any provision of law, including
under or pursuant to any Executive order, with respect to the
construction, connection, operation, or maintenance of a cross-
border segment.
(b) Certificate of Crossing and Fee.--
(1) In general.--The Commission shall, upon payment of a
fee in the amount of $50,000 by a person requesting a
certificate of crossing, issue to such person such certificate
of crossing.
(2) Treatment of fee.--A fee paid under this subsection
shall not be considered a fee assessed under section 3401 of
the Omnibus Budget Reconciliation Act of 1986 (42 U.S.C. 7178).
(c) Prohibition.--Except as provided in subsection (d), no person
may construct, connect, operate, or maintain a cross-border segment for
the import or export of oil, natural gas, hydrocarbon liquids, refined
petroleum products, hydrogen, carbon dioxide, or other energy-related
products, or for the transmission of electricity, to or from Canada or
Mexico without obtaining a certificate of crossing from the Commission
under subsection (b) for the applicable construction, connection,
operation, or maintenance.
(d) Previously Authorized Facilities.--Subsection (c) shall not
apply to the construction, connection, operation, or maintenance of a
cross-border segment with respect to which a Presidential permit that
was issued before the date of enactment of this Act applies and is in
effect.
SEC. 41003. NATURAL GAS EXPORTS AND IMPORTS.
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by
adding at the end the following:
``(g) Charge for Exportation or Importation of Natural Gas.--The
Secretary of Energy shall, by rule, impose and collect, for each
application to export natural gas from the United States to a foreign
country with which there is not in effect a free trade agreement
requiring national treatment for trade in natural gas, or to import
natural gas from such a foreign country, a nonrefundable charge of
$1,000,000, and, for purposes of subsection (a), the importation or
exportation of natural gas that is proposed in an application for which
such a nonrefundable charge was imposed and collected shall be deemed
to be in the public interest, and such an application shall be granted
without modification or delay.''.
SEC. 41004. FUNDING FOR DEPARTMENT OF ENERGY LOAN GUARANTEE EXPENSES.
In addition to amounts otherwise available, there is appropriated
to the Secretary of Energy, out of any money in the Treasury not
otherwise appropriated, $5,000,000, to remain available for a period of
five years for administrative expenses associated with carrying out
section 116 of the Alaska Natural Gas Pipeline Act (15 U.S.C. 720n).
SEC. 41005. EXPEDITED PERMITTING.
The Natural Gas Act is amended by adding after section 15 (15
U.S.C. 717n) the following:
``SEC. 15A. EXPEDITED PERMITTING.
``(a) Definitions.--In this section:
``(1) Covered application.--The term `covered application'
means an application for an authorization under section 3 or a
certificate of public convenience and necessity under section
7, as applicable, for activities that include construction.
``(2) Federal authorization.--The term `Federal
authorization' has the meaning given such term in section
15(a).
``(b) Expedited Review.--
``(1) Notification of election and payment of fee.--Prior
to submitting a covered application, an applicant may elect to
obtain an expedited review of all Federal authorizations
required for the approval of such covered application by--
``(A) submitting to the Commission a written
notification--
``(i) of the election; and
``(ii) that identifies each Federal
authorization required for the approval of the
covered application and each Federal, State,
interstate, or Tribal agency that will consider
an aspect of each such Federal authorization;
and
``(B) making a payment to the Secretary of the
Treasury in an amount that is the lesser of--
``(i) one percent of the expected cost of
the applicable construction, as determined by
the applicant; or
``(ii) $10,000,000 (adjusted for inflation,
as the Secretary of the Treasury determines
necessary).
``(2) Submission and review of applications.--
``(A) Application.--Not later than 60 days after
the date on which an applicant elects to obtain an
expedited review under paragraph (1), the applicant
shall submit to the Commission the covered application
for which such election for an expedited review was
made, which shall include--
``(i) the scope of the applicable
activities, including capital investment,
siting, temporary construction, and final
workforce numbers;
``(ii) the industrial sector of the
applicant, as classified by the North American
Industry Classification System; and
``(iii) a list of the statutes and
regulations that are relevant to the covered
application.
``(B) Approval.--
``(i) Standard deadline.--Except as
provided in clause (ii), not later than one
year after the date on which an applicant
submits a covered application pursuant to
subparagraph (A)--
``(I) each Federal, State,
interstate, or Tribal agency identified
under paragraph (1)(A)(ii) shall--
``(aa) review the relevant
Federal authorization
identified under such
paragraph; and
``(bb) subject to any
conditions determined by such
agency to be necessary to
comply with the requirements of
the Federal law under which
such approval is required,
approve such Federal
authorization; and
``(II) the Commission shall--
``(aa) review the covered
application; and
``(bb) subject to any
conditions determined by the
Commission to be necessary to
comply with the requirements of
this Act, approve the covered
application.
``(ii) Extended deadline.--
``(I) Extension.--With respect to a
covered application submitted pursuant
to subparagraph (A), the Commission may
approve a request by an agency
identified under paragraph (1)(A)(ii)
for an extension of the one-year
deadline imposed by clause (i) of this
subparagraph for a period of 6 months
if the Commission receives consent from
the relevant applicant.
``(II) Applicability.--If the
Commission approves a request for an
extension under subclause (I), such
extension shall apply to the applicable
covered application and the Federal
authorization for which the extension
was requested.
``(C) Effect of failure to meet deadline.--
``(i) Deemed approval.--Any covered
application submitted pursuant to subparagraph
(A), or Federal authorization that is required
with respect to such covered application, that
is not approved by the applicable deadline
under subparagraph (B) shall be deemed approved
in perpetuity, notwithstanding any procedural
requirements relating to such approval under
the Federal law under which such approval was
required (including any requirements applicable
to the effective period of a Federal
authorization).
``(ii) Compliance.--A person carrying out
activities under a covered application or
Federal authorization that has been deemed
approved under clause (i) shall comply with the
requirements of the Federal law under which
such approval was required (other than with
respect to any procedural requirements relating
to such approval, including any requirements
relating to the effective period of the Federal
authorization).
``(c) Judicial Review.--
``(1) Reviewable claims.--
``(A) In general.--Notwithstanding any other
provision of law, no court shall have jurisdiction to
review a claim with respect to the approval of a
covered application or Federal authorization under
subparagraph (B) or (C)(i) of subsection (b)(2), except
for a claim under chapter 7 of title 5, United States
Code, filed not later than 180 days after the date of
such approval by--
``(i) the applicant; or
``(ii) a person who has suffered, or likely
and imminently will suffer, direct and
irreparable economic harm from the approval.
``(B) Claims by certain non-applicants.--An
association may only bring a claim on behalf of one or
more of its members pursuant to subparagraph (A)(ii) if
each member of the association has suffered, or likely
and imminently will suffer, the harm described in
subparagraph (A)(ii).
``(2) Standard of review.--If an applicant or other person
brings a claim described in paragraph (1) with respect to the
approval of a covered application or Federal authorization
under subsection (b)(2)(B), the court shall hold unlawful and
set aside any agency actions, findings, and conclusions in
accordance with section 706(2) of title 5, United States Code,
except that, for purposes of the application of subparagraph
(E) of such section, the court shall apply such subparagraph by
substituting `clear and convincing evidence' for `substantial
evidence'.
``(3) Exclusive jurisdiction.--Notwithstanding any other
provision of law, the United States Court of Appeals for the
District of Columbia Circuit shall have original and exclusive
jurisdiction over any claim--
``(A) alleging the invalidity of subsection (b); or
``(B) that an agency action relating to a covered
application or Federal authorization under subsection
(b) is beyond the scope of authority conferred by the
Federal law under which such agency action is made.''.
SEC. 41006. CARBON DIOXIDE, HYDROGEN, AND PETROLEUM PIPELINE
PERMITTING.
The Natural Gas Act is amended by inserting after section 7 (15
U.S.C. 717f) the following:
``SEC. 7A. CARBON DIOXIDE, HYDROGEN, AND PETROLEUM PIPELINE PERMITTING.
``(a) Covered Pipeline Defined.--In this section, the term `covered
pipeline' means--
``(1) a pipeline or pipeline facility for the
transportation of carbon dioxide that is regulated under
chapter 601 of title 49, United States Code, pursuant to
section 60102(i) of such chapter;
``(2) a gas pipeline facility, as such term is defined in
section 60101 of title 49, United States Code, for the
transportation of hydrogen that is regulated under chapter 601
of such title; or
``(3) a hazardous liquid pipeline facility, as such term is
defined in section 60101 of title 49, United States Code, for
the transportation of petroleum or a petroleum product that is
regulated under chapter 601 of such title.
``(b) Application and Fee.--Any person may submit to the
Commission--
``(1) an application for a license authorizing the whole or
any part of the operation, sale, service, construction,
extension, or acquisition of a covered pipeline, which
application shall be made in the same manner as, and in
accordance with the requirements for, an application for a
certificate of public convenience and necessity under section
7(d); and
``(2) a fee in the amount of $10,000,000 for the
consideration of such application.
``(c) Procedure.--
``(1) In general.--With respect to each application for
which a fee is submitted under subsection (b), the Commission
shall--
``(A) consider the application in accordance with
the procedures applicable to an application for a
certificate of public convenience and necessity under
the matter preceding the proviso in section 7(c)(1)(B),
including the procedure provided in section 7(e); and
``(B) in accordance with section 7(e), issue the
license for which the application was submitted or deny
such application.
``(2) Necessary modifications.--For purposes of this
section, the Commission may modify procedures in place under
section 7 as the Commission determines necessary to apply such
procedures to the consideration, issuance, or denial of an
application under this section.
``(d) Effect of License.--Notwithstanding any other provision of
law, if the Commission issues a license under subsection (c)(1) of this
section and the licensee is in compliance with such license, no
requirement of State or local law that requires approval of the
location of the covered pipeline with respect to which the license is
issued may be enforced against the licensee.
``(e) Application to Other Provisions.--
``(1) Extension of facilities; abandonment of service.--For
purposes of section 7--
``(A) subsection (b) of such section shall be
applied with respect to this section by substituting
`licensee under section 7A' for `natural-gas company';
``(B) subsection (c)(2) of such section shall be
applied with respect to this section--
``(i) by substituting `licensee under
section 7A' for `natural-gas company'; and
``(ii) by substituting `petroleum or a
petroleum product' for `natural gas' each place
it appears;
``(C) subsection (f)(1) shall be applied with
respect to this section--
``(i) by substituting `license under
section 7A' for `authorization under this
section'; and
``(ii) by substituting `licensee under
section 7A' for `natural-gas company';
``(D) subsection (f)(2) shall be applied with
respect to this section--
``(i) by substituting `transported liquid
or gas is consumed' for `gas is consumed'; and
``(ii) by substituting `a liquid or gas to
another licensee under section 7A' for `natural
gas to another natural gas company';
``(E) subsection (g) shall be applied with respect
to this section--
``(i) by substituting `licenses under
section 7A' for `certificates of public
convenience and necessity'; and
``(ii) by substituting `licensee under
section 7A' for `natural-gas company';
``(F) subsection (h) of such section shall be
applied with respect to this section--
``(i) by substituting `licensee under
section 7A' for `holder of a certificate of
public convenience and necessity'; and
``(ii) by substituting `to carry out an
activity authorized by the license issued under
such section' for `to construct, operate, and
maintain a pipe line or pipe lines for the
transportation of natural gas, and the
necessary land or other property, in addition
to right-of-way, for the location of compressor
stations, pressure apparatus, or other stations
or equipment necessary to the proper operation
of such pipe line or pipe lines'.
``(2) Process coordination; hearings; rules of procedure.--
For purposes of applying section 15 with respect to this
section, each reference to an application in subsection (a) of
such section shall be considered to be a reference to an
application for a license under this section.
``(3) Rehearing; court review of orders.--For purposes of
section 19--
``(A) subsection (b) of such section shall be
applied with respect to this section by substituting
`person who submitted the relevant application and paid
a fee under section 7A' for `natural gas company'; and
``(B) subsection (d) of such section shall be
applied with respect to this section by substituting
`covered pipeline with respect to which an application
and fee has been submitted under section 7A' for
`facility subject to section 3 or section 7' each place
it appears.
``(4) Enforcement of act; regulations and orders.--For
purposes of section 20(d), paragraph (1) of such section shall
be applied with respect to this section by substituting
`company that is a licensee under section 7A' for `natural gas
company'.''.
SEC. 41007. DE-RISKING COMPENSATION PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2026, out of any
money in the Treasury not otherwise appropriated, $10,000,000, to
remain available through September 30, 2034, to carry out this section:
Provided, That no disbursements may be made under this section after
September 30, 2034.
(b) De-Risking Compensation Program.--
(1) Establishment.--There is established in the Department
of Energy a program, to be known as the De-Risking Compensation
Program, to provide compensation to sponsors, with respect to
covered energy projects, that suffer unrecoverable losses due
to qualifying Federal actions.
(2) Eligibility.--A sponsor may enroll in the program with
respect to a covered energy project if--
(A) all approvals or permits required or authorized
under Federal law for the covered energy project have
been received, regardless of whether a court order
subsequently remands or vacates such approvals or
permits;
(B) the sponsor commenced construction of the
covered energy project or made capital expenditures
with respect to the covered energy project in reliance
on such approvals or permits; and
(C) at the time of enrollment, no qualifying
Federal action has been issued or taken that has an
effect described in subsection (g)(4)(B) on the covered
energy project.
(3) Application.--A sponsor may apply to enroll with
respect to a covered energy project in the program by
submitting to the Secretary an application containing such
information as the Secretary may require.
(4) Enrollment.--Not later than 90 days after the date on
which the Secretary receives an application submitted under
paragraph (3), the Secretary shall enroll the sponsor in the
program for the covered energy project with respect to which
the application was submitted if the Secretary determines that
the sponsor meets the requirements of paragraph (2) with
respect to the covered energy project.
(c) Fees and Premiums.--
(1) Enrollment fee.--Not later than 60 days after the date
on which a sponsor is enrolled in the program under subsection
(b)(4), the sponsor shall pay to the Secretary a one-time
enrollment fee equal to 5 percent of the sponsor capital
contribution for the applicable covered energy project.
(2) Annual premiums.--
(A) In general.--The Secretary shall establish and
annually collect a premium from each sponsor enrolled
in the program for each covered energy project with
respect to which the sponsor is enrolled.
(B) Requirements.--A premium established and
collected from a sponsor under subparagraph (A) shall--
(i) be equal to 1.5 percent of the sponsor
capital contribution for the applicable covered
energy project; and
(ii) be paid beginning with the year of
enrollment and continuing until the earlier
of--
(I) fiscal year 2033; or
(II) the year in which the sponsor
withdraws from the program with respect
to the applicable covered energy
project.
(C) Adjustment.--The Secretary may adjust the
percentage required by subparagraph (B)(i) once every
two fiscal years to ensure Fund solvency, except that--
(i) the Secretary may not vary such
percentage between sponsors or projects; and
(ii) such percentage may not exceed 5
percent.
(D) Publication.--The Secretary shall publish in
the Federal Register not later than 60 days prior to
the start of each fiscal year a list of each premium to
be collected for the fiscal year.
(d) Compensation.--
(1) In general.--Using amounts available in the Fund, and
subject to paragraph (5), the Secretary shall provide
compensation to a sponsor enrolled in the program with respect
to a covered energy project if--
(A) the sponsor paid the enrollment fee and the
premium for each year the sponsor was enrolled in the
program with respect to the covered energy project; and
(B) the sponsor demonstrates, in a request
submitted to the Secretary, that a qualifying Federal
action has been issued or taken that has an effect
described in subsection (g)(4)(B) on the covered energy
project.
(2) Request for compensation.--A request under paragraph
(1) shall contain the following:
(A) Information on each Federal approval or permit
relating to the covered energy project, including the
date on which such approval or permit was issued.
(B) A certified accounting of capital expenditures
made in reliance on each such Federal approval or
permit.
(C) A description of, and, if applicable, a
citation to, the applicable qualifying Federal action.
(D) A causal statement showing how the qualifying
Federal action directly resulted in unrecoverable
losses or cessation of the covered energy project and
that absent the qualifying Federal action the project
would have otherwise been viable.
(E) Any supporting economic analysis demonstrating
the financial effects of the covered energy project
being rendered unviable.
(3) Approval.--The Secretary shall approve a request
submitted under paragraph (1) and, subject to paragraph (5),
provide compensation to the applicable sponsor if the Secretary
determines that such request is complete and in compliance with
the requirements of this section.
(4) Limitations on denials.--The Secretary may not deny a
request submitted under paragraph (1) based on--
(A) the merit of the applicable covered energy
project, as determined by the Secretary; or
(B) the type of technology used in the applicable
covered energy project.
(5) Limitations on compensation amount.--
(A) Sponsors.--The amount of compensation provided
to a sponsor under this subsection with respect to a
covered energy project shall not exceed the sponsor
capital contribution for the covered energy project.
(B) Available funds.--In determining the amount of
compensation to be provided to a sponsor under this
subsection--
(i) such amount may be any amount,
including zero, that is less than or equal to
the amount of the sponsor capital contribution
for the covered energy project, regardless of
the amount of capital expenditures made by the
sponsor (as certified and included in the
request pursuant to paragraph (2)(B)); and
(ii) the Secretary shall determine such
amount in a manner that ensures no funds will
be obligated or expended in amounts that exceed
the amounts in the Fund at the time of approval
of the applicable request submitted under
paragraph (1).
(e) De-Risking Compensation Fund.--
(1) Establishment.--There is established a fund, to be
known as the De-Risking Compensation Fund, consisting of such
amounts as are deposited in the Fund under this subsection or
credited to the Fund under subsection (f).
(2) Use of funds.--Amounts in the Fund--
(A) shall remain available until September 30,
2034; and
(B) may be used, without further appropriation--
(i) to make compensation payments to
sponsors under this section; and
(ii) to administer the program.
(3) Limitation on administrative expenses.--Not more than 3
percent of amounts in the Fund may be used to administer the
program.
(4) Deposits.--The Secretary shall deposit the fees and
premiums received under subsection (c) into the Fund.
(f) Fund Management and Investment.--The Fund shall be managed and
invested as follows:
(1) The Fund shall be maintained and administered by the
Secretary.
(2) Amounts in the Fund shall be invested in obligations of
the United States in accordance with the requirements of
section 9702 of title 31, United States Code.
(3) The interest on such investments shall be credited to
the Fund.
(g) Definitions.--For purposes of this section:
(1) Covered energy project.--The term ``covered energy
project'' means a project located in the United States for the
development, extraction, processing, transportation, or use of
coal, coal byproducts, critical minerals, oil, natural gas, or
nuclear energy with a total projected capital expenditure of
not less than $30,000,000, as certified by the Secretary.
(2) Fund.--The term ``Fund'' means the De-Risking
Compensation Fund established in subsection (e)(1).
(3) Program.--The term ``program'' means the De-Risking
Compensation Program established in subsection (b)(1).
(4) Qualifying federal action.--The term ``qualifying
Federal action'' means a regulation, administrative decision,
or executive action--
(A) issued or taken after a sponsor received a
Federal approval or permit for a covered energy
project; and
(B) that revokes such approval or permit or
cancels, delays, or renders unviable the covered energy
project regardless of whether the regulation,
administrative decision, or executive action is
responsive to a court order.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(6) Sponsor.--The term ``sponsor'' means an entity
incorporated and headquartered in the United States with an
ownership or development interest in a covered energy project.
(7) Sponsor capital contribution.--The term ``sponsor
capital contribution'' means the projected capital expenditure
of a sponsor for a covered energy project, as certified by the
Secretary at the time of enrollment in the program, which shall
include verifiable development, construction, permitting, and
financing costs directly related to the covered energy project.
SEC. 41008. STRATEGIC PETROLEUM RESERVE.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Department of Energy for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029--
(1) $218,000,000 for maintenance of, including repairs to,
storage facilities and related facilities (as such terms are
defined in section 152 of the Energy Policy and Conservation
Act (42 U.S.C. 6232)) of the Strategic Petroleum Reserve; and
(2) $1,321,000,000 to acquire, by purchase, petroleum
products for storage in the Strategic Petroleum Reserve.
(b) Repeal of Strategic Petroleum Reserve Drawdown and Sale
Mandate.--Section 20003 of Public Law 115-97 (42 U.S.C. 6241 note) is
repealed.
SEC. 41009. RESCISSIONS OF PREVIOUSLY APPROPRIATED UNOBLIGATED FUNDS.
(a) Rescissions.--Except as provided in subsection (b), of the
unobligated balances appropriated and made available to the Department
of Energy--
(1) for the Office of the Inspector General, $8,052,100 is
rescinded;
(2) for the Office of Clean Energy Demonstrations,
$60,152,900 is rescinded;
(3) for the Office for Human Capital, $76,900 is rescinded;
(4) for Federal Energy Management Programs, $53,442,200 is
rescinded;
(5) for State and Community Energy Programs, $262,506,100
is rescinded;
(6) for the Office of Minority Economic Impact, $2,783,100
is rescinded;
(7) for the Office of Energy Efficiency and Renewable
Energy, $401,850,700 is rescinded;
(8) for the Office of General Counsel, $239,400 is
rescinded;
(9) for the Office of Indian Energy Policy and Programs,
$44,701,900 is rescinded;
(10) for the Office of Management, $5,041,100 is rescinded;
(11) for the Office of the Secretary, $1,019,400 is
rescinded;
(12) for the Office of Public Affairs, $2,594,000 is
rescinded; and
(13) for the Office of Policy, $692,400 is rescinded.
(b) Exclusions.--The unobligated amounts rescinded under subsection
(a) may not include amounts appropriated and made available to the
Department of Energy--
(1) under Public Law 117-169 (commonly referred to as the
Inflation Reduction Act of 2022);
(2) under the Infrastructure Investment and Jobs Act
(Public Law 117-58); or
(3) that were designated by the Congress as an emergency
requirement pursuant to the Balanced Budget and Emergency
Deficit Control Act of 1985 or a concurrent resolution on the
budget, section 4001(a)(1) of S. Con. Res. 14 (117th Congress),
or section 1(e) of H. Res. 1151 (117th Congress) as engrossed
in the House of Representatives on June 8, 2022.
Subtitle B--Environment
PART 1--REPEALS AND RESCISSIONS
SEC. 42101. REPEAL AND RESCISSION RELATING TO CLEAN HEAVY-DUTY
VEHICLES.
(a) Repeal.--Section 132 of the Clean Air Act (42 U.S.C. 7432) is
repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 132 of the Clean Air Act (42 U.S.C. 7432) (as
in effect on the day before the date of enactment of this Act) is
rescinded.
SEC. 42102. REPEAL AND RESCISSION RELATING TO GRANTS TO REDUCE AIR
POLLUTION AT PORTS.
(a) Repeal.--Section 133 of the Clean Air Act (42 U.S.C. 7433) is
repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 133 of the Clean Air Act (42 U.S.C. 7433) (as
in effect on the day before the date of enactment of this Act) is
rescinded.
SEC. 42103. REPEAL AND RESCISSION RELATING TO GREENHOUSE GAS REDUCTION
FUND.
(a) Repeal.--Section 134 of the Clean Air Act (42 U.S.C. 7434) is
repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 134 of the Clean Air Act (42 U.S.C. 7434) (as
in effect on the day before the date of enactment of this Act) is
rescinded.
SEC. 42104. REPEAL AND RESCISSION RELATING TO DIESEL EMISSIONS
REDUCTIONS.
(a) Repeal.--Section 60104 of Public Law 117-169 is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60104 of Public Law 117-169 (as in effect on
the day before the date of enactment of this Act) is rescinded.
SEC. 42105. REPEAL AND RESCISSION RELATING TO FUNDING TO ADDRESS AIR
POLLUTION.
(a) Repeal.--Section 60105 of Public Law 117-169 is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60105 of Public Law 117-169 (as in effect on
the day before the date of enactment of this Act) is rescinded.
SEC. 42106. REPEAL AND RESCISSION RELATING TO FUNDING TO ADDRESS AIR
POLLUTION AT SCHOOLS.
(a) Repeal.--Section 60106 of Public Law 117-169 is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60106 of Public Law 117-169 (as in effect on
the day before the date of enactment of this Act) is rescinded.
SEC. 42107. REPEAL AND RESCISSION RELATING TO LOW EMISSIONS ELECTRICITY
PROGRAM.
(a) Repeal.--Section 135 of the Clean Air Act (42 U.S.C. 7435) is
repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 135 of the Clean Air Act (42 U.S.C. 7435) (as
in effect on the day before the date of enactment of this Act) is
rescinded.
SEC. 42108. REPEAL AND RESCISSION RELATING TO FUNDING FOR SECTION
211(O) OF THE CLEAN AIR ACT.
(a) Repeal.--Section 60108 of Public Law 117-169 is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60108 of Public Law 117-169 (as in effect on
the day before the date of enactment of this Act) is rescinded.
SEC. 42109. REPEAL AND RESCISSION RELATING TO FUNDING FOR
IMPLEMENTATION OF THE AMERICAN INNOVATION AND
MANUFACTURING ACT.
(a) Repeal.--Section 60109 of Public Law 117-169 is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60109 of Public Law 117-169 (as in effect on
the day before the date of enactment of this Act) is rescinded.
SEC. 42110. REPEAL AND RESCISSION RELATING TO FUNDING FOR ENFORCEMENT
TECHNOLOGY AND PUBLIC INFORMATION.
(a) Repeal.--Section 60110 of Public Law 117-169 is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60110 of Public Law 117-169 (as in effect on
the day before the date of enactment of this Act) is rescinded.
SEC. 42111. REPEAL AND RESCISSION RELATING TO GREENHOUSE GAS CORPORATE
REPORTING.
(a) Repeal.--Section 60111 of Public Law 117-169 is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60111 of Public Law 117-169 (as in effect on
the day before the date of enactment of this Act) is rescinded.
SEC. 42112. REPEAL AND RESCISSION RELATING TO ENVIRONMENTAL PRODUCT
DECLARATION ASSISTANCE.
(a) Repeal.--Section 60112 of Public Law 117-169 (42 U.S.C. 4321
note) is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60112 of Public Law 117-169 (42 U.S.C. 4321
note) (as in effect on the day before the date of enactment of this
Act) is rescinded.
SEC. 42113. REPEAL OF FUNDING FOR METHANE EMISSIONS AND WASTE REDUCTION
INCENTIVE PROGRAM FOR PETROLEUM AND NATURAL GAS SYSTEMS.
(a) Repeal and Rescission.--Subsections (a) and (b) of section 136
of the Clean Air Act (42 U.S.C. 7436) are repealed and the unobligated
balances of amounts made available under those subsections (as in
effect on the day before the date of enactment of this Act) are
rescinded.
(b) Conforming Amendments.--Section 136 of the Clean Air Act (42
U.S.C. 7436) is amended--
(1) by redesignating subsections (c) through (i) as
subsections (a) through (g), respectively;
(2) by striking ``subsection (c)'' each place it appears
and inserting ``subsection (a)'';
(3) by striking ``subsection (d)'' each place it appears
and inserting ``subsection (b)'';
(4) by striking ``subsection (f)'' each place it appears
and inserting ``subsection (d)'';
(5) in subsection (e) (as so redesignated), by striking
``calendar year 2024'' and inserting ``calendar year 2034'';
and
(6) in subsection (f) (as so redesignated)--
(A) by striking ``subsections (e) and (f)'' and
inserting ``subsections (c) and (d)''; and
(B) by striking ``including data collected pursuant
to subsection (a)(4),''.
SEC. 42114. REPEAL AND RESCISSION RELATING TO GREENHOUSE GAS AIR
POLLUTION PLANS AND IMPLEMENTATION GRANTS.
(a) Repeal.--Section 137 of the Clean Air Act (42 U.S.C. 7437) is
repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 137 of the Clean Air Act (42 U.S.C. 7437) (as
in effect on the day before the date of enactment of this Act) is
rescinded.
SEC. 42115. REPEAL AND RESCISSION RELATING TO ENVIRONMENTAL PROTECTION
AGENCY EFFICIENT, ACCURATE, AND TIMELY REVIEWS.
(a) Repeal.--Section 60115 of Public Law 117-169 is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60115 of Public Law 117-169 (as in effect on
the day before the date of enactment of this Act) is rescinded.
SEC. 42116. REPEAL AND RESCISSION RELATING TO LOW-EMBODIED CARBON
LABELING FOR CONSTRUCTION MATERIALS.
(a) Repeal.--Section 60116 of Public Law 117-169 (42 U.S.C. 4321
note) is repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 60116 of Public Law 117-169 (42 U.S.C. 4321
note) (as in effect on the day before the date of enactment of this
Act) is rescinded.
SEC. 42117. REPEAL AND RESCISSION RELATING TO ENVIRONMENTAL AND CLIMATE
JUSTICE BLOCK GRANTS.
(a) Repeal.--Section 138 of the Clean Air Act (42 U.S.C. 7438) is
repealed.
(b) Rescission.--The unobligated balance of any amounts made
available under section 138 of the Clean Air Act (42 U.S.C. 7438) (as
in effect on the day before the date of enactment of this Act) is
rescinded.
PART 2--REPEAL OF EPA RULE RELATING TO MULTI-POLLUTANT EMISSIONS
STANDARDS
SEC. 42201. REPEAL OF EPA RULE RELATING TO MULTI-POLLUTANT EMISSIONS
STANDARDS FOR LIGHT- AND MEDIUM-DUTY VEHICLES.
The final rule issued by the Environmental Protection Agency
relating to ``Multi-Pollutant Emissions Standards for Model Years 2027
and Later Light-Duty and Medium-Duty Vehicles'' (89 Fed. Reg. 27842
(April 18, 2024)) shall have no force or effect.
PART 3--REPEAL OF NHTSA RULE RELATING TO CAFE STANDARDS
SEC. 42301. REPEAL OF NHTSA RULE RELATING TO CAFE STANDARDS FOR
PASSENGER CARS AND LIGHT TRUCKS.
The final rule issued by the National Highway Traffic Safety
Administration relating to ``Corporate Average Fuel Economy Standards
for Passenger Cars and Light Trucks for Model Years 2027 and Beyond and
Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for
Model Years 2030 and Beyond'' (89 Fed. Reg. 52540 (June 24, 2024))
shall have no force or effect.
Subtitle C--Communications
PART 1--SPECTRUM AUCTIONS
SEC. 43101. IDENTIFICATION AND AUCTION OF SPECTRUM.
(a) Identification.--
(1) In general.--Not later than 2 years after the date of
the enactment of this Act, the Assistant Secretary and the
Commission shall identify, from spectrum in the covered band
that is allocated for Federal use, non-Federal use, or shared
Federal and non-Federal use, a total of not less than 600
megahertz of spectrum for reallocation for non-Federal use on
an exclusive, licensed basis for mobile broadband services,
fixed broadband services, mobile and fixed broadband services,
or a combination thereof.
(2) Withdrawal or modification of federal government
assignments.--The President, acting through the Assistant
Secretary, shall--
(A) withdraw or modify the assignments to Federal
Government stations of spectrum identified under
paragraph (1) as necessary for the Commission to comply
with subsection (b); and
(B) not later than 30 days after completing any
necessary withdrawal or modification under subparagraph
(A), notify the Commission that the withdrawal or
modification is complete.
(3) Rule of construction.--Nothing in this subsection may
be construed to change the respective authorities of the
Assistant Secretary and the Commission with respect to spectrum
allocated for Federal use, non-Federal use, or shared Federal
and non-Federal use.
(b) Auction.--
(1) In general.--The Commission shall, through 1 or more
systems of competitive bidding under section 309(j) of the
Communications Act of 1934 (47 U.S.C. 309(j)), grant licenses
for the use of the spectrum identified under subsection (a) on
an exclusive, licensed basis for mobile broadband services,
fixed broadband services, mobile and fixed broadband services,
or a combination thereof.
(2) Schedule.--Notwithstanding paragraph (15)(A) of section
309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)),
the Commission shall auction spectrum under paragraph (1) of
this subsection according to the following schedule:
(A) Not later than 3 years after the date of the
enactment of this Act, the Commission shall complete 1
or more systems of competitive bidding for not less
than 200 megahertz of such spectrum.
(B) Not later than 6 years after the date of the
enactment of this Act, the Commission shall complete 1
or more systems of competitive bidding for any
remaining spectrum required to be auctioned under
paragraph (1) after compliance with subparagraph (A) of
this paragraph.
(c) Auction Proceeds to Cover 110 Percent of Federal Relocation or
Sharing Costs.--Nothing in this section may be construed to relieve the
Commission from the requirements of section 309(j)(16)(B) of the
Communications Act of 1934 (47 U.S.C. 309(j)(16)(B)).
(d) Auction Authority.--Section 309(j)(11) of the Communications
Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a
license or permit under this subsection shall expire March 9, 2023''
and all that follows and inserting ``complete a system of competitive
bidding under this subsection shall expire September 30, 2034.''.
(e) Definitions.--In this section:
(1) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications
and Information.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Covered band.--
(A) In general.--The term ``covered band'' means
the band of frequencies between 1.3 gigahertz and 10
gigahertz, inclusive.
(B) Exclusion.--The term ``covered band'' does not
include the following:
(i) The band of frequencies between 3.1
gigahertz and 3.45 gigahertz, inclusive.
(ii) The band of frequencies between 5.925
gigahertz and 7.125 gigahertz, inclusive.
PART 2--ARTIFICIAL INTELLIGENCE AND INFORMATION TECHNOLOGY
MODERNIZATION
SEC. 43201. ARTIFICIAL INTELLIGENCE AND INFORMATION TECHNOLOGY
MODERNIZATION INITIATIVE.
(a) Appropriation of Funds.--There is hereby appropriated to the
Department of Commerce for fiscal year 2025, out of any funds in the
Treasury not otherwise appropriated, $500,000,000, to remain available
until September 30, 2035, to modernize and secure Federal information
technology systems through the deployment of commercial artificial
intelligence, the deployment of automation technologies, and the
replacement of antiquated business systems in accordance with
subsection (b).
(b) Authorized Uses.--The Secretary of Commerce shall use the funds
appropriated under subsection (a) for the following:
(1) To replace or modernize, within the Department of
Commerce, legacy business systems with state-of-the-art
commercial artificial intelligence systems and automated
decision systems.
(2) To facilitate, within the Department of Commerce, the
adoption of artificial intelligence models that increase
operational efficiency and service delivery.
(3) To improve, within the Department of Commerce, the
cybersecurity posture of Federal information technology systems
through modernized architecture, automated threat detection,
and integrated artificial intelligence solutions.
(c) Moratorium.--
(1) In general.--Except as provided in paragraph (2), no
State or political subdivision thereof may enforce any law or
regulation regulating artificial intelligence models,
artificial intelligence systems, or automated decision systems
during the 10-year period beginning on the date of the
enactment of this Act.
(2) Rule of construction.--Paragraph (1) may not be
construed to prohibit the enforcement of any law or regulation
that--
(A) the primary purpose and effect of which is to
remove legal impediments to, or facilitate the
deployment or operation of, an artificial intelligence
model, artificial intelligence system, or automated
decision system;
(B) the primary purpose and effect of which is to
streamline licensing, permitting, routing, zoning,
procurement, or reporting procedures in a manner that
facilitates the adoption of artificial intelligence
models, artificial intelligence systems, or automated
decision systems;
(C) does not impose any substantive design,
performance, data-handling, documentation, civil
liability, taxation, fee, or other requirement on
artificial intelligence models, artificial intelligence
systems, or automated decision systems unless such
requirement--
(i) is imposed under Federal law; or
(ii) in the case of a requirement imposed
under a generally applicable law, is imposed in
the same manner on models and systems, other
than artificial intelligence models, artificial
intelligence systems, and automated decision
systems, that provide comparable functions to
artificial intelligence models, artificial
intelligence systems, or automated decision
systems; and
(D) does not impose a fee or bond unless--
(i) such fee or bond is reasonable and
cost-based; and
(ii) under such fee or bond, artificial
intelligence models, artificial intelligence
systems, and automated decision systems are
treated in the same manner as other models and
systems that perform comparable functions.
(d) Definitions.--In this section:
(1) Artificial intelligence.--The term ``artificial
intelligence'' has the meaning given such term in section 5002
of the National Artificial Intelligence Initiative Act of 2020
(15 U.S.C. 9401).
(2) Artificial intelligence model.--The term ``artificial
intelligence model'' means a software component of an
information system that implements artificial intelligence
technology and uses computational, statistical, or machine-
learning techniques to produce outputs from a defined set of
inputs.
(3) Artificial intelligence system.--The term ``artificial
intelligence system'' means any data system, software,
hardware, application, tool, or utility that operates, in whole
or in part, using artificial intelligence.
(4) Automated decision system.--The term ``automated
decision system'' means any computational process derived from
machine learning, statistical modeling, data analytics, or
artificial intelligence that issues a simplified output,
including a score, classification, or recommendation, to
materially influence or replace human decision making.
Subtitle D--Health
PART 1--MEDICAID
Subpart A--Reducing Fraud and Improving Enrollment Processes
SEC. 44101. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO
ELIGIBILITY AND ENROLLMENT IN MEDICARE SAVINGS PROGRAMS.
The Secretary of Health and Human Services shall not, during the
period beginning on the date of the enactment of this section and
ending January 1, 2035, implement, administer, or enforce the
provisions of the final rule published by the Centers for Medicare &
Medicaid Services on September 21, 2023, and titled ``Streamlining
Medicaid; Medicare Savings Program Eligibility Determination and
Enrollment'' (88 Fed. Reg. 65230).
SEC. 44102. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO
ELIGIBILITY AND ENROLLMENT FOR MEDICAID, CHIP, AND THE
BASIC HEALTH PROGRAM.
The Secretary of Health and Human Services shall not, during the
period beginning on the date of the enactment of this section and
ending January 1, 2035, implement, administer, or enforce the
provisions of the final rule published by the Centers for Medicare &
Medicaid Services on April 2, 2024, and titled ``Medicaid Program;
Streamlining the Medicaid, Children's Health Insurance Program, and
Basic Health Program Application, Eligibility Determination,
Enrollment, and Renewal Processes'' (89 Fed. Reg. 22780).
SEC. 44103. ENSURING APPROPRIATE ADDRESS VERIFICATION UNDER THE
MEDICAID AND CHIP PROGRAMS.
(a) Medicaid.--
(1) In general.--Section 1902 of the Social Security Act
(42 U.S.C. 1396a) is amended--
(A) in subsection (a)--
(i) in paragraph (86), by striking ``and''
at the end;
(ii) in paragraph (87), by striking the
period and inserting ``; and''; and
(iii) by inserting after paragraph (87) the
following new paragraph:
``(88) provide--
``(A) beginning not later than January 1, 2027, in
the case of 1 of the 50 States and the District of
Columbia, for a process to regularly obtain address
information for individuals enrolled under such plan
(or a waiver of such plan) in accordance with
subsection (vv); and
``(B) beginning not later than October 1, 2029--
``(i) for the State to submit to the system
established by the Secretary under subsection
(uu), with respect to an individual enrolled or
seeking to enroll under such plan, not less
frequently than once each month and during each
determination or redetermination of the
eligibility of such individual for medical
assistance under such plan (or waiver of such
plan)--
``(I) the social security number of
such individual, if such individual has
a social security number and is
required to provide such number to
enroll under such plan (or waiver); and
``(II) such other information with
respect to such individual as
determined necessary by the Secretary
for purposes of preventing individuals
from simultaneously being enrolled
under State plans (or waivers of such
plans) of multiple States;
``(ii) for the use of such system to
prevent such simultaneous enrollment; and
``(iii) in the case that such system
indicates that an individual enrolled or
seeking to enroll under such plan (or wavier of
such plan) is enrolled under a State plan (or
waiver of such a plan) of another State, for
the taking of appropriate action (as determined
by the Secretary) to identify whether such an
individual resides in the State and disenroll
an individual from the State plan of such State
if such individual does not reside in such
State (unless such individual meets such an
exception as the Secretary may specify).''; and
(B) by adding at the end the following new
subsections:
``(uu) Prevention of Enrollment Under Multiple State Plans.--
``(1) In general.--Not later than October 1, 2029, the
Secretary shall establish a system to be utilized by the
Secretary and States to prevent an individual from being
simultaneously enrolled under the State plans (or waivers of
such plans) of multiple States. Such system shall--
``(A) provide for the receipt of information
submitted by a State under subsection (a)(88)(B)(i);
and
``(B) not less than once each month, notify or
transmit information to a State (or allow the Secretary
to notify or transmit information to a State) regarding
whether an individual enrolled or seeking to enroll
under the State plan of such State (or waiver of such
plan) is enrolled under the State plan (or waiver of
such plan) of another State.
``(2) Standards.--The Secretary shall establish such
standards as determined necessary by the Secretary to limit and
protect information submitted under such system and ensure the
privacy of such information, consistent with subsection (a)(7).
``(3) Implementation funding.--There are appropriated to
the Secretary, out of amounts in the Treasury not otherwise
appropriated, in addition to amounts otherwise available--
``(A) for fiscal year 2026, $10,000,000 for
purposes of establishing the system required under this
subsection, to remain available until expended; and
``(B) for fiscal year 2029, $20,000,000 for
purposes of maintaining such system, to remain
available until expended.
``(vv) Process to Obtain Enrollee Address Information.--
``(1) In general.--For purposes of subsection (a)(88)(A), a
process to regularly obtain address information for individuals
enrolled under a State plan (or a waiver of such plan) shall
obtain address information from reliable data sources described
in paragraph (2) and take such actions as the Secretary shall
specify with respect to any changes to such address based on
such information.
``(2) Reliable data sources described.--For purposes of
paragraph (1), the reliable data sources described in this
paragraph are the following:
``(A) Mail returned to the State by the United
States Postal Service with a forwarding address.
``(B) The National Change of Address Database
maintained by the United States Postal Service.
``(C) A managed care entity (as defined in section
1932(a)(1)(B)) or prepaid inpatient health plan or
prepaid ambulatory health plan (as such terms are
defined in section 1903(m)(9)(D)) that has a contract
under the State plan if the address information is
provided to such entity or plan directly from, or
verified by such entity or plan directly with, such
individual.
``(D) Other data sources as identified by the State
and approved by the Secretary.''.
(2) Conforming amendments.--
(A) PARIS.--Section 1903(r)(3) of the Social
Security Act (42 U.S.C. 1396b(r)(3)) is amended--
(i) by striking ``In order'' and inserting
``(A) In order'';
(ii) by striking ``through the Public'' and
inserting ``through--
``(i) the Public'';
(iii) by striking the period at the end and
inserting ``; and
``(ii) beginning October 1, 2029, the system
established by the Secretary under section 1902(uu).'';
and
(iv) by adding at the end the following new
subparagraph:
``(B) Beginning October 1, 2029, the Secretary may
determine that a State is not required to have in operation an
eligibility determination system which provides for data
matching through the system described in subparagraph (A)(i) to
meet the requirements of this paragraph.''.
(B) Managed care.--Section 1932 of the Social
Security Act (42 U.S.C. 1396u-2) is amended by adding
at the end the following new subsection:
``(j) Transmission of Address Information.--Beginning January 1,
2027, each contract under a State plan with a managed care entity (as
defined in section 1932(a)(1)(B)) or with a prepaid inpatient health
plan or prepaid ambulatory health plan (as such terms are defined in
section 1903(m)(9)(D)), shall provide that such entity or plan shall
promptly transmit to the State any address information for an
individual enrolled with such entity or plan that is provided to such
entity or plan directly from, or verified by such entity or plan
directly with, such individual.''.
(b) CHIP.--
(1) In general.--Section 2107(e)(1) of the Social Security
Act (42 U.S.C. 1397gg(e)(1)) is amended--
(A) by redesignating subparagraphs (H) through (U)
as subparagraphs (I) through (V), respectively; and
(B) by inserting after subparagraph (G) the
following new subparagraph:
``(H) Section 1902(a)(88) (relating to address
information for enrollees and prevention of
simultaneous enrollments).''.
(2) Managed care.--Section 2103(f)(3) of the Social
Security Act (42 U.S.C. 1397cc(f)(3)) is amended by striking
``and (e)'' and inserting ``(e), and (j)''.
SEC. 44104. MODIFYING CERTAIN STATE REQUIREMENTS FOR ENSURING DECEASED
INDIVIDUALS DO NOT REMAIN ENROLLED.
Section 1902 of the Social Security Act (42 U.S.C. 1396a), as
amended by section 44103, is further amended--
(1) in subsection (a)--
(A) in paragraph (87), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (88), by striking the period at
the end and inserting ``; and''; and
(C) by inserting after paragraph (88) the following
new paragraph:
``(89) provide that the State shall comply with the
eligibility verification requirements under subsection (ww),
except that this paragraph shall apply only in the case of the
50 States and the District of Columbia.''; and
(2) by adding at the end the following new subsection:
``(ww) Verification of Certain Eligibility Criteria.--
``(1) In general.--For purposes of subsection (a)(89), the
eligibility verification requirements, beginning January 1,
2028, are as follows:
``(A) Quarterly screening to verify enrollee
status.--The State shall, not less frequently than
quarterly, review the Death Master File (as such term
is defined in section 203(d) of the Bipartisan Budget
Act of 2013) to determine whether any individuals
enrolled for medical assistance under the State plan
(or waiver of such plan) are deceased.
``(B) Disenrollment under state plan.--If the State
determines, based on information obtained from the
Death Master File, that an individual enrolled for
medical assistance under the State plan (or waiver of
such plan) is deceased, the State shall--
``(i) treat such information as factual
information confirming the death of a
beneficiary for purposes of section 431.213(a)
of title 42, Code of Federal Regulations (or
any successor regulation);
``(ii) disenroll such individual from the
State plan (or waiver of such plan); and
``(iii) discontinue any payments for
medical assistance under this title made on
behalf of such individual (other than payments
for any items or services furnished to such
individual prior to the death of such
individual).
``(C) Reinstatement of coverage in the event of
error.--If a State determines that an individual was
misidentified as deceased based on information obtained
from the Death Master File and was erroneously
disenrolled from medical assistance under the State
plan (or waiver of such plan) based on such
misidentification, the State shall immediately re-
enroll such individual under the State plan (or waiver
of such plan), retroactive to the date of such
disenrollment.
``(2) Rule of construction.--Nothing under this subsection
shall be construed to preclude the ability of a State to use
other electronic data sources to timely identify potentially
deceased beneficiaries, so long as the State is also in
compliance with the requirements of this subsection (and all
other requirements under this title relating to Medicaid
eligibility determination and redetermination).''.
SEC. 44105. MEDICAID PROVIDER SCREENING REQUIREMENTS.
Section 1902(kk)(1) of the Social Security Act (42 U.S.C.
1396a(kk)(1)) is amended--
(1) by striking ``The State'' and inserting:
``(A) In general.--The State''; and
(2) by adding at the end the following new subparagraph:
``(B) Additional provider screening.--Beginning
January 1, 2028, as part of the enrollment (or
reenrollment or revalidation of enrollment) of a
provider or supplier under this title, and not less
frequently than monthly during the period that such
provider or supplier is so enrolled, the State conducts
a check of any database or similar system developed
pursuant to section 6401(b)(2) of the Patient
Protection and Affordable Care Act to determine whether
the Secretary has terminated the participation of such
provider or supplier under title XVIII, or whether any
other State has terminated the participation of such
provider or supplier under such other State's State
plan under this title (or waiver of the plan), or such
other State's State child health plan under title XXI
(or waiver of the plan).''.
SEC. 44106. ADDITIONAL MEDICAID PROVIDER SCREENING REQUIREMENTS.
Section 1902(kk)(1) of the Social Security Act (42 U.S.C.
1396a(kk)(1)), as amended by section 44105, is further amended by
adding at the end the following new subparagraph:
``(C) Provider screening against death master
file.--Beginning January 1, 2028, as part of the
enrollment (or reenrollment or revalidation of
enrollment) of a provider or supplier under this title,
and not less frequently than quarterly during the
period that such provider or supplier is so enrolled,
the State conducts a check of the Death Master File (as
such term is defined in section 203(d) of the
Bipartisan Budget Act of 2013) to determine whether
such provider or supplier is deceased.''.
SEC. 44107. REMOVING GOOD FAITH WAIVER FOR PAYMENT REDUCTION RELATED TO
CERTAIN ERRONEOUS EXCESS PAYMENTS UNDER MEDICAID.
(a) In General.--Section 1903(u)(1) of the Social Security Act (42
U.S.C. 1396b(u)(1)) is amended--
(1) in subparagraph (B)--
(A) by striking ``The Secretary'' and inserting
``(i) Subject to clause (ii), the Secretary''; and
(B) by adding at the end the following new clause:
``(ii) The amount waived under clause (i) for a fiscal year
may not exceed an amount equal to the difference between--
``(I) the amount of the reduction required under
subparagraph (A) for such fiscal year (without
application of this subparagraph); and
``(II) the sum of the erroneous excess payments for
medical assistance described in subclauses (I) and
(III) of subparagraph (D)(i) made for such fiscal
year.'';
(2) in subparagraph (C), by striking ``he'' in each place
it appears and inserting ``the Secretary'' in each such place;
and
(3) in subparagraph (D)(i)--
(A) in subclause (I), by striking ``and'' at the
end;
(B) in subclause (II), by striking the period at
the end and inserting ``, 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 eligible
individual who is not eligible for medical assistance under the
State plan (or a waiver of such plan) with respect to such
items and services.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply beginning with respect to fiscal year 2030.
SEC. 44108. INCREASING FREQUENCY OF ELIGIBILITY REDETERMINATIONS FOR
CERTAIN INDIVIDUALS.
Section 1902(e)(14) of the Social Security Act (42 U.S.C.
1396a(e)(14)) is amended by adding at the end the following new
subparagraph:
``(L) Frequency of eligibility redeterminations for
certain individuals.--Beginning on October 1, 2027, in
the case of an individual enrolled under subsection
(a)(10)(A)(i)(VIII), a State shall redetermine the
eligibility of such individual for medical assistance
under the State plan of such State (or a waiver of such
plan) once every 6 months.''.
SEC. 44109. REVISING HOME EQUITY LIMIT FOR DETERMINING ELIGIBILITY FOR
LONG-TERM CARE SERVICES UNDER THE MEDICAID PROGRAM.
(a) Revising Home Equity Limit.--Section 1917(f)(1) of the Social
Security Act (42 U.S.C. 1396p(f)(1)) is amended--
(1) in subparagraph (B)--
(A) by striking ``A State'' and inserting ``(i) A
State'';
(B) in clause (i), as inserted by subparagraph
(A)--
(i) by striking ```$500,000''' and
inserting ``the amount specified in
subparagraph (A)''; and
(ii) by inserting ``, in the case of an
individual's home that is located on a lot that
is zoned for agricultural use,'' after ``apply
subparagraph (A)''; and
(C) by adding at the end the following new clause:
``(ii) A State may elect, without regard to the
requirements of section 1902(a)(1) (relating to statewideness)
and section 1902(a)(10)(B) (relating to comparability), to
apply subparagraph (A), in the case of an individual's home
that is not described in clause (i), by substituting for the
amount specified in such subparagraph, an amount that exceeds
such amount, but does not exceed $1,000,000.''; and
(2) in subparagraph (C)--
(A) by inserting ``(other than the amount specified
in subparagraph (B)(ii) (relating to certain non-
agricultural homes))'' after ``specified in this
paragraph''; and
(B) by adding at the end the following new
sentence: ``In the case that application of the
preceding sentence would result in a dollar amount
(other than the amount specified in subparagraph (B)(i)
(relating to certain agricultural homes)) exceeding
$1,000,000, such amount shall be deemed to be equal to
$1,000,000.''.
(b) Clarification.--Section 1902 of the Social Security Act (42
U.S.C. 1396a) is amended--
(1) in subsection (r)(2), by adding at the end the
following new subparagraph:
``(C) This paragraph shall not be construed as permitting a State
to determine the eligibility of an individual for medical assistance
with respect to nursing facility services or other long-term care
services without application of the limit under section 1917(f)(1).'';
and
(2) in subsection (e)(14)(D)(iv)--
(A) by striking ``Subparagraphs'' and inserting
``(I) In general.--Subparagraphs'';
and
(B) by adding at the end the following new
subclause:
``(II) Application of home equity
interest limit.--Section 1917(f) shall
apply for purposes of determining the
eligibility of an individual for
medical assistance with respect to
nursing facility services or other
long-term care services.''.
(c) Effective Date.--The amendments made by subsection (a) shall
apply beginning on January 1, 2028.
SEC. 44110. PROHIBITING FEDERAL FINANCIAL PARTICIPATION UNDER MEDICAID
AND CHIP FOR INDIVIDUALS WITHOUT VERIFIED CITIZENSHIP,
NATIONALITY, OR SATISFACTORY IMMIGRATION STATUS.
(a) In General.--
(1) Medicaid.--Section 1903(i)(22) of the Social Security
Act (42 U.S.C. 1396b(i)(22)) is amended--
(A) by adding ``and'' at the end;
(B) by striking ``to amounts'' and inserting ``to--
``(A) amounts''; and
(C) by adding at the end the following new
subparagraph:
``(B) in the case that the State elects under
section 1902(a)(46)(C) to provide for making medical
assistance available to an individual during--
``(i) the period in which the individual is
provided the reasonable opportunity to present
satisfactory documentary evidence of
citizenship or nationality under section
1902(ee)(2)(C) or subsection (x)(4);
``(ii) the 90-day period described in
section 1902(ee)(1)(B)(ii)(II); or
``(iii) the period in which the individual
is provided the reasonable opportunity to
submit evidence indicating a satisfactory
immigration status under section 1137(d)(4),
amounts expended for such medical assistance, unless
the citizenship or nationality of such individual or
the satisfactory immigration status of such individual
(as applicable) is verified by the end of such
period;''.
(2) CHIP.--Section 2107(e)(1)(N) of the Social Security Act
(42 U.S.C. 1397gg(e)(1)(N)) is amended by striking ``and (17)''
and inserting ``(17), and (22)''.
(b) Eliminating State Requirement to Provide Medical Assistance
During Reasonable Opportunity Period.--
(1) Documentary evidence of citizenship or nationality.--
Section 1903(x)(4) of the Social Security Act (42 U.S.C.
1396b(x)) is amended--
(A) by striking ``under clauses (i) and (ii) of
section 1137(d)(4)(A)'' and inserting ``under section
1137(d)(4)''; and
(B) by inserting ``, except that the State shall
not be required to make medical assistance available to
such individual during the period in which such
individual is provided such reasonable opportunity if
the State has not elected the option under section
1902(a)(46)(C)'' before the period at the end.
(2) Social security data match.--Section 1902(ee) of the
Social Security Act (42 U.S.C. 1396a(ee)) is amended--
(A) in paragraph (1)(B)(ii)--
(i) in subclause (II), by striking ``(and
continues to provide the individual with
medical assistance during such 90-day period)''
and inserting ``and, if the State has elected
the option under subsection (a)(46)(C),
continues to provide the individual with
medical assistance during such 90-day period'';
and
(ii) in subclause (III), by inserting ``,
or denies eligibility for medical assistance
under this title for such individual, as
applicable'' after ``under this title''; and
(B) in paragraph (2)(C)--
(i) by striking ``under clauses (i) and
(ii) of section 1137(d)(4)(A)'' and inserting
``under section 1137(d)(4)''; and
(ii) by inserting ``, except that the State
shall not be required to make medical
assistance available to such individual during
the period in which such individual is provided
such reasonable opportunity if the State has
not elected the option under section
1902(a)(46)(C)'' before the period at the end.
(3) Individuals with satisfactory immigration status.--
Section 1137(d)(4) of the Social Security Act (42 U.S.C. 1320b-
7(d)(4)) is amended--
(A) in subparagraph (A)(ii), by inserting ``(except
that such prohibition on delay, denial, reduction, or
termination of eligibility for benefits under the
Medicaid program under title XIX shall apply only if
the State has elected the option under section
1902(a)(46)(C))'' after ``has been provided''; and
(B) in subparagraph (B)(ii), by inserting ``(except
that such prohibition on delay, denial, reduction, or
termination of eligibility for benefits under the
Medicaid program under title XIX shall apply only if
the State has elected the option under section
1902(a)(46)(C))'' after ``status''.
(c) Option to Continue Providing Medical Assistance During
Reasonable Opportunity Period.--
(1) Medicaid.--Section 1902(a)(46) of the Social Security
Act (42 U.S.C. 1396a(a)(46)) is amended--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B)(ii), by adding ``and'' at
the end; and
(C) by inserting after subparagraph (B)(ii) the
following new subparagraph:
``(C) provide, at the option of the State, for making
medical assistance available--
``(i) to an individual described in subparagraph
(B) during the period in which such individual is
provided the reasonable opportunity to present
satisfactory documentary evidence of citizenship or
nationality under subsection (ee)(2)(C) or section
1903(x)(4), or during the 90-day period described in
subsection (ee)(1)(B)(ii)(II); or
``(ii) to an individual who is not a citizen or
national of the United States during the period in
which such individual is provided the reasonable
opportunity to submit evidence indicating a
satisfactory immigration status under section
1137(d)(4);''.
(2) CHIP.--Section 2105(c)(9) of the Social Security Act
(42 U.S.C. 1397ee(c)(9)) is amended by adding at the end the
following new subparagraph:
``(C) Option to continue providing child health
assistance during reasonable opportunity period.--
Section 1902(a)(46)(C) shall apply to States under this
title in the same manner as it applies to a State under
title XIX.''.
(d) Effective Date.--The amendments made by this section shall
apply beginning October 1, 2026.
SEC. 44111. REDUCING EXPANSION FMAP FOR CERTAIN STATES PROVIDING
PAYMENTS FOR HEALTH CARE FURNISHED TO CERTAIN
INDIVIDUALS.
Section 1905 of the Social Security Act (42 U.S.C. 1395d) is
amended--
(1) in subsection (y)--
(A) in paragraph (1)(E), by inserting ``(or, for
calendar quarters beginning on or after October 1,
2027, in the case such State is a specified State with
respect to such calendar quarter, 80 percent)'' after
``thereafter''; and
(B) in paragraph (2), by adding at the end the
following new subparagraph:
``(C) Specified state.--The term `specified State'
means, with respect to a quarter, a State that--
``(i) provides any form of financial
assistance during such quarter, in whole or in
part, whether or not made under a State plan
(or waiver of such plan) under this title or
under another program established by the State,
and regardless of the source of funding for
such assistance, to or on behalf of an alien
who is not a qualified alien or otherwise
lawfully residing in the United States for the
purchasing of health insurance coverage (as
defined in section 2791(b)(1) of the Public
Health Service Act) for an alien who is not a
qualified alien or otherwise lawfully residing
in the United States; or
``(ii) provides any form of comprehensive
health benefits coverage during such quarter,
whether or not under a State plan (or wavier of
such plan) under this title or under another
program established by the State, and
regardless of the source of funding for such
coverage, to an alien who is not a qualified
alien or otherwise lawfully residing in the
United States.
``(D) Immigration terms.--
``(i) Alien.--The term `alien' has the
meaning given such term in section 101(a) of
the Immigration and Nationality Act.
``(ii) Qualified alien.--The term
`qualified alien' has the meaning given such
term in section 431 of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, except that--
``(I) the reference to `at the time
the alien applies for, receives, or
attempts to receive a Federal public
benefit' in subsection (b) of such
section shall be treated as a reference
to `at the time the alien is provided
comprehensive health benefits coverage
described in clause (ii) of section
1905(y)(C) of the Social Security Act
or is provided with financial
assistance described in clause (i) of
such section, as applicable'; and
``(II) the references to `(in the
opinion of the agency providing such
benefits)' in subsection (c) of such
section shall be treated as references
to `(in the opinion of the State in
which such comprehensive health
benefits coverage or such financial
assistance is provided, as
applicable)'.''; and
(2) in subsection (z)(2)--
(A) in subparagraph (A), by striking ``for such
year'' and inserting ``for such quarter''; and
(B) in subparagraph (B)(i)--
(i) in the matter preceding subclause (I),
by striking ``for a year'' and inserting ``for
a calendar quarter in a year''; and
(ii) in subclause (II), by striking ``for
the year'' and inserting ``for the quarter for
the State''.
Subpart B--Preventing Wasteful Spending
SEC. 44121. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO STAFFING
STANDARDS FOR LONG-TERM CARE FACILITIES UNDER THE
MEDICARE AND MEDICAID PROGRAMS.
The Secretary of Health and Human Services shall not, during the
period beginning on the date of the enactment of this section and
ending January 1, 2035, implement, administer, or enforce the
provisions of the final rule published by the Centers for Medicare &
Medicaid Services on May 10, 2024, and titled ``Medicare and Medicaid
Programs; Minimum Staffing Standards for Long-Term Care Facilities and
Medicaid Institutional Payment Transparency Reporting'' (89 Fed. Reg.
40876).
SEC. 44122. MODIFYING RETROACTIVE COVERAGE UNDER THE MEDICAID AND CHIP
PROGRAMS.
(a) In General.--Section 1902(a)(34) of the Social Security Act (42
U.S.C. 1396a(a)(34)) is amended--
(1) by striking ``him'' and inserting ``the individual'';
(2) by striking ``the third month'' and inserting ``the
month'';
(3) by striking ``he'' and inserting ``the individual'';
and
(4) by striking ``his'' and inserting ``the individual's''.
(b) Definition of Medical Assistance.--Section 1905(a) of the
Social Security Act (42 U.S.C. 1396d(a)) is amended by striking ``in or
after the third month before the month in which the recipient makes
application for assistance'' and inserting ``in or after the month
before the month in which the recipient makes application for
assistance''.
(c) CHIP.--Section 2102(b)(1)(B) of the Social Security Act (42
U.S.C. 1397bb(b)(1)(B)) is amended--
(1) in clause (iv), by striking ``and'' at the end;
(2) in clause (v), by striking the period and inserting ``;
and''; and
(3) by adding at the end the following new clause:
``(vi) shall, in the case that the State
elects to provide child health or pregnancy-
related assistance to an individual for any
period prior to the month in which the
individual made application for such assistance
(or application was made on behalf of the
individual), provide that such assistance is
not made available to such individual for items
and services included under the State child
health plan (or waiver of such plan) that are
furnished before the month preceding the month
in which such individual made application (or
application was made on behalf of such
individual) for such assistance.''.
(d) Effective Date.--The amendments made by this section shall
apply to medical assistance and child health and pregnancy-related
assistance with respect to individuals whose eligibility for such
medical assistance or child health assistance is based on an
application made on or after October 1, 2026.
SEC. 44123. ENSURING ACCURATE PAYMENTS TO PHARMACIES UNDER MEDICAID.
(a) In General.--Section 1927(f) of the Social Security Act (42
U.S.C. 1396r-8(f)) is amended--
(1) in paragraph (1)(A)--
(A) by redesignating clause (ii) as clause (iii);
and
(B) by striking ``and'' after the semicolon at the
end of clause (i) and all that precedes it through
``(1)'' and inserting the following:
``(1) Determining pharmacy actual acquisition costs.--The
Secretary shall conduct a survey of retail community pharmacy
drug prices and applicable non-retail pharmacy drug prices to
determine national average drug acquisition cost benchmarks (as
such term is defined by the Secretary) as follows:
``(A) Use of vendor.--The Secretary may contract
services for--
``(i) with respect to retail community
pharmacies, the determination of retail survey
prices of the national average drug acquisition
cost for covered outpatient drugs that
represent a nationwide average of consumer
purchase prices for such drugs, net of all
discounts, rebates, and other price concessions
(to the extent any information with respect to
such discounts, rebates, and other price
concessions is available) based on a monthly
survey of such pharmacies;
``(ii) with respect to applicable non-
retail pharmacies--
``(I) the determination of survey
prices, separate from the survey prices
described in clause (i), of the non-
retail national average drug
acquisition cost for covered outpatient
drugs that represent a nationwide
average of consumer purchase prices for
such drugs, net of all discounts,
rebates, and other price concessions
(to the extent any information with
respect to such discounts, rebates, and
other price concessions is available)
based on a monthly survey of such
pharmacies; and
``(II) at the discretion of the
Secretary, for each type of applicable
non-retail pharmacy, the determination
of survey prices, separate from the
survey prices described in clause (i)
or subclause (I) of this clause, of the
national average drug acquisition cost
for such type of pharmacy for covered
outpatient drugs that represent a
nationwide average of consumer purchase
prices for such drugs, net of all
discounts, rebates, and other price
concessions (to the extent any
information with respect to such
discounts, rebates, and other price
concessions is available) based on a
monthly survey of such pharmacies;
and'';
(2) in subparagraph (B) of paragraph (1), by striking
``subparagraph (A)(ii)'' and inserting ``subparagraph
(A)(iii)'';
(3) in subparagraph (D) of paragraph (1), by striking
clauses (ii) and (iii) and inserting the following:
``(ii) The vendor must update the Secretary
no less often than monthly on the survey prices
for covered outpatient drugs.
``(iii) The vendor must differentiate, in
collecting and reporting survey data, for all
cost information collected, whether a pharmacy
is a retail community pharmacy or an applicable
non-retail pharmacy, including whether such
pharmacy is an affiliate (as defined in
subsection (k)(14)), and, in the case of an
applicable non-retail pharmacy, which type of
applicable non-retail pharmacy it is using the
relevant pharmacy type indicators included in
the guidance required by subsection (d)(2) of
section 44123 of the Act titled `An Act to
provide for reconciliation pursuant to title II
of H. Con. Res. 14'.'';
(4) by adding at the end of paragraph (1) the following:
``(F) Survey reporting.--In order to meet the
requirement of section 1902(a)(54), a State shall
require that any retail community pharmacy or
applicable non-retail pharmacy in the State that
receives any payment, reimbursement, administrative
fee, discount, rebate, or other price concession
related to the dispensing of covered outpatient drugs
to individuals receiving benefits under this title,
regardless of whether such payment, reimbursement,
administrative fee, discount, rebate, or other price
concession is received from the State or a managed care
entity or other specified entity (as such terms are
defined in section 1903(m)(9)(D)) directly or from a
pharmacy benefit manager or another entity that has a
contract with the State or a managed care entity or
other specified entity (as so defined), shall respond
to surveys conducted under this paragraph.
``(G) Survey information.--Information on national
drug acquisition prices obtained under this paragraph
shall be made publicly available in a form and manner
to be determined by the Secretary and shall include at
least the following:
``(i) The monthly response rate to the
survey including a list of pharmacies not in
compliance with subparagraph (F).
``(ii) The sampling methodology and number
of pharmacies sampled monthly.
``(iii) Information on price concessions to
pharmacies, including discounts, rebates, and
other price concessions, to the extent that
such information may be publicly released and
has been collected by the Secretary as part of
the survey.
``(H) Penalties.--
``(i) In general.--Subject to clauses (ii),
(iii), and (iv), the Secretary shall enforce
the provisions of this paragraph with respect
to a pharmacy through the establishment of
civil money penalties applicable to a retail
community pharmacy or an applicable non-retail
pharmacy.
``(ii) Basis for penalties.--The Secretary
shall impose a civil money penalty established
under this subparagraph on a retail community
pharmacy or applicable non-retail pharmacy if--
``(I) the retail pharmacy or
applicable non-retail pharmacy refuses
or otherwise fails to respond to a
request for information about prices in
connection with a survey under this
subsection;
``(II) knowingly provides false
information in response to such a
survey; or
``(III) otherwise fails to comply
with the requirements established under
this paragraph.
``(iii) Parameters for penalties.--
``(I) In general.--A civil money
penalty established under this
subparagraph may be assessed with
respect to each violation, and with
respect to each non-compliant retail
community pharmacy (including a
pharmacy that is part of a chain) or
non-compliant applicable non-retail
pharmacy (including a pharmacy that is
part of a chain), in an amount not to
exceed $100,000 for each such
violation.
``(II) Considerations.--In
determining the amount of a civil money
penalty imposed under this
subparagraph, the Secretary may
consider the size, business structure,
and type of pharmacy involved, as well
as the type of violation and other
relevant factors, as determined
appropriate by the Secretary.
``(iv) Rule of application.--The provisions
of section 1128A (other than subsections (a)
and (b)) shall apply to a civil money penalty
under this subparagraph in the same manner as
such provisions apply to a civil money penalty
or proceeding under section 1128A(a).
``(I) Limitation on use of applicable non-retail
pharmacy pricing information.--No State shall use
pricing information reported by applicable non-retail
pharmacies under subparagraph (A)(ii) to develop or
inform payment methodologies for retail community
pharmacies.'';
(5) in paragraph (2)--
(A) in subparagraph (A), by inserting ``, including
payment rates and methodologies for determining
ingredient cost reimbursement under managed care
entities or other specified entities (as such terms are
defined in section 1903(m)(9)(D)),'' after ``under this
title''; and
(B) in subparagraph (B), by inserting ``and the
basis for such dispensing fees'' before the semicolon;
(6) by redesignating paragraph (4) as paragraph (5);
(7) by inserting after paragraph (3) the following new
paragraph:
``(4) Oversight.--
``(A) In general.--The Inspector General of the
Department of Health and Human Services shall conduct
periodic studies of the survey data reported under this
subsection, as appropriate, including with respect to
substantial variations in acquisition costs or other
applicable costs, as well as with respect to how
internal transfer prices and related party transactions
may influence the costs reported by pharmacies that are
affiliates (as defined in subsection (k)(13)) or are
owned by, controlled by, or related under a common
ownership structure with a wholesaler, distributor, or
other entity that acquires covered outpatient drugs
relative to costs reported by pharmacies not affiliated
with such entities. The Inspector General shall provide
periodic updates to Congress on the results of such
studies, as appropriate, in a manner that does not
disclose trade secrets or other proprietary
information.
``(B) Appropriation.--There is appropriated to the
Inspector General of the Department of Health and Human
Services, out of any money in the Treasury not
otherwise appropriated, $5,000,000 for fiscal year
2026, to remain available until expended, to carry out
this paragraph.''; and
(8) in paragraph (5), as so redesignated--
(A) by inserting ``, and $8,000,000 for each of
fiscal years 2026 through 2033,'' after ``2010''; and
(B) by inserting ``Funds appropriated under this
paragraph for each of fiscal years 2026 through 2033
shall remain available until expended.'' after the
period.
(b) Definitions.--Section 1927(k) of the Social Security Act (42
U.S.C. 1396r-8(k)) is amended--
(1) in the matter preceding paragraph (1), by striking ``In
the section'' and inserting ``In this section''; and
(2) by adding at the end the following new paragraphs:
``(12) Applicable non-retail pharmacy.--The term
`applicable non-retail pharmacy' means a pharmacy that is
licensed as a pharmacy by the State and that is not a retail
community pharmacy, including a pharmacy that dispenses
prescription medications to patients primarily through mail and
specialty pharmacies. Such term does not include nursing home
pharmacies, long-term care facility pharmacies, hospital
pharmacies, clinics, charitable or not-for-profit pharmacies,
government pharmacies, or low dispensing pharmacies (as defined
by the Secretary).
``(13) Affiliate.--The term `affiliate' means any entity
that is owned by, controlled by, or related under a common
ownership structure with a pharmacy benefit manager or a
managed care entity or other specified entity (as such terms
are defined in section 1903(m)(9)(D)).''.
(c) Effective Date.--
(1) In general.--Subject to paragraph (2), the amendments
made by this section shall apply beginning on the first day of
the first quarter that begins on or after the date that is 6
months after the date of enactment of this section.
(2) Delayed application to applicable non-retail
pharmacies.--The pharmacy survey requirements established by
the amendments to section 1927(f) of the Social Security Act
(42 U.S.C. 1396r-8(f)) made by this section shall apply to
retail community pharmacies beginning on the effective date
described in paragraph (1), but shall not apply to applicable
non-retail pharmacies until the first day of the first quarter
that begins on or after the date that is 18 months after the
date of enactment of this section.
(d) Identification of Applicable Non-retail Pharmacies.--
(1) In general.--Not later than January 1, 2027, the
Secretary of Health and Human Services shall, in consultation
with stakeholders as appropriate, publish guidance specifying
pharmacies that meet the definition of applicable non-retail
pharmacies (as such term is defined in subsection (k)(12) of
section 1927 of the Social Security Act (42 U.S.C. 1396r-8), as
added by subsection (b)), and that will be subject to the
survey requirements under subsection (f)(1) of such section, as
amended by subsection (a).
(2) Inclusion of pharmacy type indicators.--The guidance
published under paragraph (1) shall include pharmacy type
indicators to distinguish between different types of applicable
non-retail pharmacies, such as pharmacies that dispense
prescriptions primarily through the mail and pharmacies that
dispense prescriptions that require special handling or
distribution. An applicable non-retail pharmacy may be
identified through multiple pharmacy type indicators.
(e) Implementation.--
(1) In general.--Notwithstanding any other provision of
law, the Secretary of Health and Human Services may implement
the amendments made by this section by program instruction or
otherwise.
(2) Nonapplication of administrative procedure act.--
Implementation of the amendments made by this section shall be
exempt from the requirements of section 553 of title 5, United
States Code.
(f) Nonapplication of Paperwork Reduction Act.--Chapter 35 of title
44, United States Code, shall not apply to any data collection
undertaken by the Secretary of Health and Human Services under section
1927(f) of the Social Security Act (42 U.S.C. 1396r-8(f)), as amended
by this section.
SEC. 44124. PREVENTING THE USE OF ABUSIVE SPREAD PRICING IN MEDICAID.
(a) In General.--Section 1927 of the Social Security Act (42 U.S.C.
1396r-8) is amended--
(1) in subsection (e), by adding at the end the following
new paragraph:
``(6) Transparent prescription drug pass-through pricing
required.--
``(A) In general.--A contract between the State and
a pharmacy benefit manager (referred to in this
paragraph as a `PBM'), or a contract between the State
and a managed care entity or other specified entity (as
such terms are defined in section 1903(m)(9)(D) and
collectively referred to in this paragraph as the
`entity') that includes provisions making the entity
responsible for coverage of covered outpatient drugs
dispensed to individuals enrolled with the entity,
shall require that payment for such drugs and related
administrative services (as applicable), including
payments made by a PBM on behalf of the State or
entity, is based on a transparent prescription drug
pass-through pricing model under which--
``(i) any payment made by the entity or the
PBM (as applicable) for such a drug--
``(I) is limited to--
``(aa) ingredient cost; and
``(bb) a professional
dispensing fee that is not less
than the professional
dispensing fee that the State
would pay if the State were
making the payment directly in
accordance with the State plan;
``(II) is passed through in its
entirety (except as reduced under
Federal or State laws and regulations
in response to instances of waste,
fraud, or abuse) by the entity or PBM
to the pharmacy or provider that
dispenses the drug; and
``(III) is made in a manner that is
consistent with sections 447.502,
447.512, 447.514, and 447.518 of title
42, Code of Federal Regulations (or any
successor regulation) as if such
requirements applied directly to the
entity or the PBM, except that any
payment by the entity or the PBM for
the ingredient cost of such drug
purchased by a covered entity (as
defined in subsection (a)(5)(B)) may
exceed the actual acquisition cost (as
defined in 447.502 of title 42, Code of
Federal Regulations, or any successor
regulation) for such drug if--
``(aa) such drug was
subject to an agreement under
section 340B of the Public
Health Service Act;
``(bb) such payment for the
ingredient cost of such drug
does not exceed the maximum
payment that would have been
made by the entity or the PBM
for the ingredient cost of such
drug if such drug had not been
purchased by such covered
entity; and
``(cc) such covered entity
reports to the Secretary (in a
form and manner specified by
the Secretary), on an annual
basis and with respect to
payments for the ingredient
costs of such drugs so
purchased by such covered
entity that are in excess of
the actual acquisition costs
for such drugs, the aggregate
amount of such excess;
``(ii) payment to the entity or the PBM (as
applicable) for administrative services
performed by the entity or PBM is limited to an
administrative fee that reflects the fair
market value (as defined by the Secretary) of
such services;
``(iii) the entity or the PBM (as
applicable) makes available to the State, and
the Secretary upon request in a form and manner
specified by the Secretary, all costs and
payments related to covered outpatient drugs
and accompanying administrative services (as
described in clause (ii)) incurred, received,
or made by the entity or the PBM, broken down
(as specified by the Secretary), to the extent
such costs and payments are attributable to an
individual covered outpatient drug, by each
such drug, including any ingredient costs,
professional dispensing fees, administrative
fees (as described in clause (ii)), post-sale
and post-invoice fees, discounts, or related
adjustments such as direct and indirect
remuneration fees, and any and all other
remuneration, as defined by the Secretary; and
``(iv) any form of spread pricing whereby
any amount charged or claimed by the entity or
the PBM (as applicable) that exceeds the amount
paid to the pharmacies or providers on behalf
of the State or entity, including any post-sale
or post-invoice fees, discounts, or related
adjustments such as direct and indirect
remuneration fees or assessments, as defined by
the Secretary, (after allowing for an
administrative fee as described in clause (ii))
is not allowable for purposes of claiming
Federal matching payments under this title.
``(B) Publication of information.--The Secretary
shall publish, not less frequently than on an annual
basis and in a manner that does not disclose the
identity of a particular covered entity or
organization, information received by the Secretary
pursuant to subparagraph (A)(iii)(III) that is broken
out by State and by each of the following categories of
covered entity within each such State:
``(i) Covered entities described in
subparagraph (A) of section 340B(a)(4) of the
Public Health Service Act.
``(ii) Covered entities described in
subparagraphs (B) through (K) of such section.
``(iii) Covered entities described in
subparagraph (L) of such section.
``(iv) Covered entities described in
subparagraph (M) of such section.
``(v) Covered entities described in
subparagraph (N) of such section.
``(vi) Covered entities described in
subparagraph (O) of such section.''; and
(2) in subsection (k), as previously amended by this
subtitle, by adding at the end the following new paragraph:
``(14) Pharmacy benefit manager.--The term `pharmacy
benefit manager' means any person or entity that, either
directly or through an intermediary, acts as a price negotiator
or group purchaser on behalf of a State, managed care entity
(as defined in section 1903(m)(9)(D)), or other specified
entity (as so defined), or manages the prescription drug
benefits provided by a State, managed care entity, or other
specified entity, including the processing and payment of
claims for prescription drugs, the performance of drug
utilization review, the processing of drug prior authorization
requests, the managing of appeals or grievances related to the
prescription drug benefits, contracting with pharmacies,
controlling the cost of covered outpatient drugs, or the
provision of services related thereto. Such term includes any
person or entity that acts as a price negotiator (with regard
to payment amounts to pharmacies and providers for a covered
outpatient drug or the net cost of the drug) or group purchaser
on behalf of a State, managed care entity, or other specified
entity or that carries out 1 or more of the other activities
described in the preceding sentence, irrespective of whether
such person or entity calls itself a pharmacy benefit
manager.''.
(b) Conforming Amendments.--Section 1903(m) of such Act (42 U.S.C.
1396b(m)) is amended--
(1) in paragraph (2)(A)(xiii)--
(A) by striking ``and (III)'' and inserting
``(III)'';
(B) by inserting before the period at the end the
following: ``, and (IV) if the contract includes
provisions making the entity responsible for coverage
of covered outpatient drugs, the entity shall comply
with the requirements of section 1927(e)(6)''; and
(C) by moving the left margin 2 ems to the left;
and
(2) by adding at the end the following new paragraph:
``(10) No payment shall be made under this title to a State
with respect to expenditures incurred by the State for payment
for services provided by an other specified entity (as defined
in paragraph (9)(D)(iii)) unless such services are provided in
accordance with a contract between the State and such entity
which satisfies the requirements of paragraph (2)(A)(xiii).''.
(c) Effective Date.--The amendments made by this section shall
apply to contracts between States and managed care entities, other
specified entities, or pharmacy benefit managers that have an effective
date beginning on or after the date that is 18 months after the date of
enactment of this section.
(d) Implementation.--
(1) In general.--Notwithstanding any other provision of
law, the Secretary of Health and Human Services may implement
the amendments made by this section by program instruction or
otherwise.
(2) Nonapplication of administrative procedure act.--
Implementation of the amendments made by this section shall be
exempt from the requirements of section 553 of title 5, United
States Code.
(e) Nonapplication of Paperwork Reduction Act.--Chapter 35 of title
44, United States Code, shall not apply to any data collection
undertaken by the Secretary of Health and Human Services under section
1927(e) of the Social Security Act (42 U.S.C. 1396r-8(e)), as amended
by this section.
SEC. 44125. PROHIBITING FEDERAL MEDICAID AND CHIP FUNDING FOR GENDER
TRANSITION PROCEDURES FOR MINORS.
(a) Medicaid.--Section 1903(i) of the Social Security Act (42
U.S.C. 1396b(i)) is amended--
(1) in paragraph (26), by striking ``; or'' and inserting a
semicolon;
(2) in paragraph (27), by striking the period at the end
and inserting ``; or'';
(3) by inserting after paragraph (27) the following new
paragraph:
``(28) with respect to any amount expended for specified
gender transition procedures (as defined in section 1905(kk))
furnished to an individual under 18 years of age enrolled in a
State plan (or waiver of such plan).''; and
(4) in the flush left matter at the end, by striking ``and
(18),'' and inserting ``(18), and (28)''.
(b) CHIP.--Section 2107(e)(1)(N) of the Social Security Act (42
U.S.C. 1397gg(e)(1)(N)) is amended by striking ``and (17)'' and
inserting ``(17), and (28)''.
(c) Specified Gender Transition Procedures Defined.--Section 1905
of the Social Security Act (42 U.S.C. 1396d) is amended by adding at
the end the following new subsection:
``(kk) Specified Gender Transition Procedures.--
``(1) In general.--For purposes of section 1903(i)(28),
except as provided in paragraph (2), the term `specified gender
transition procedure' means, with respect to an individual, any
of the following when performed for the purpose of
intentionally changing the body of such individual (including
by disrupting the body's development, inhibiting its natural
functions, or modifying its appearance) to no longer correspond
to the individual's sex:
``(A) Performing any surgery, including--
``(i) castration;
``(ii) sterilization;
``(iii) orchiectomy;
``(iv) scrotoplasty;
``(v) vasectomy;
``(vi) tubal ligation;
``(vii) hysterectomy;
``(viii) oophorectomy;
``(ix) ovariectomy;
``(x) metoidioplasty;
``(xi) clitoroplasty;
``(xii) reconstruction of the fixed part of
the urethra with or without a metoidioplasty or
a phalloplasty;
``(xiii) penectomy;
``(xiv) phalloplasty;
``(xv) vaginoplasty;
``(xvi) vaginectomy;
``(xvii) vulvoplasty;
``(xviii) reduction thyrochondroplasty;
``(xix) chondrolaryngoplasty;
``(xx) mastectomy; and
``(xxi) any plastic, cosmetic, or aesthetic
surgery that feminizes or masculinizes the
facial or other body features of an individual.
``(B) Any placement of chest implants to create
feminine breasts or any placement of erection or
testicular prostheses.
``(C) Any placement of fat or artificial implants
in the gluteal region.
``(D) Administering, prescribing, or dispensing to
an individual medications, including--
``(i) gonadotropin-releasing hormone (GnRH)
analogues or other puberty-blocking drugs to
stop or delay normal puberty; and
``(ii) testosterone, estrogen, or other
androgens to an individual at doses that are
supraphysiologic than would normally be
produced endogenously in a healthy individual
of the same age and sex.
``(2) Exception.--Paragraph (1) shall not apply to the
following when furnished to an individual by a health care
provider with the consent of such individual's parent or legal
guardian:
``(A) Puberty suppression or blocking prescription
drugs for the purpose of normalizing puberty for an
individual experiencing precocious puberty.
``(B) Medically necessary procedures or treatments
to correct for--
``(i) a medically verifiable disorder of
sex development, including--
``(I) 46,XX chromosomes with
virilization;
``(II) 46,XY chromosomes with
undervirilization; and
``(III) both ovarian and testicular
tissue;
``(ii) sex chromosome structure, sex
steroid hormone production, or sex hormone
action, if determined to be abnormal by a
physician through genetic or biochemical
testing;
``(iii) infection, disease, injury, or
disorder caused or exacerbated by a previous
procedure described in paragraph (1), or a
physical disorder, physical injury, or physical
illness that would, as certified by a
physician, place the individual in imminent
danger of death or impairment of a major bodily
function unless the procedure is performed, not
including procedures performed for the
alleviation of mental distress; or
``(iv) procedures to restore or reconstruct
the body of the individual in order to
correspond to the individual's sex after one or
more previous procedures described in paragraph
(1), which may include the removal of a pseudo
phallus or breast augmentation.
``(3) Sex.--For purposes of paragraph (1), the term `sex'
means either male or female, as biologically determined and
defined in paragraphs (4) and (5), respectively.
``(4) Female.--For purposes of paragraph (3), the term
`female' means an individual who naturally has, had, will have,
or would have, but for a developmental or genetic anomaly or
historical accident, the reproductive system that at some point
produces, transports, and utilizes eggs for fertilization.
``(5) Male.--For purposes of paragraph (3), the term `male'
means an individual who naturally has, had, will have, or would
have, but for a developmental or genetic anomaly or historical
accident, the reproductive system that at some point produces,
transports, and utilizes sperm for fertilization.''.
SEC. 44126. FEDERAL PAYMENTS TO PROHIBITED ENTITIES.
(a) In General.--No Federal funds that are considered direct
spending and provided to carry out a State plan under title XIX of the
Social Security Act or a waiver of such a plan shall be used to make
payments to a prohibited entity for items and services furnished during
the 10-year period beginning on the date of the enactment of this Act,
including any payments made directly to the prohibited entity or under
a contract or other arrangement between a State and a covered
organization.
(b) Definitions.--In this section:
(1) Prohibited entity.--The term ``prohibited entity''
means an entity, including its affiliates, subsidiaries,
successors, and clinics--
(A) that, as of the date of enactment of this Act--
(i) is an organization described in section
501(c)(3) of the Internal Revenue Code of 1986
and exempt from tax under section 501(a) of
such Code;
(ii) is an essential community provider
described in section 156.235 of title 45, Code
of Federal Regulations (as in effect on the
date of enactment of this Act), that is
primarily engaged in family planning services,
reproductive health, and related medical care;
and
(iii) provides for abortions, other than an
abortion--
(I) if the pregnancy is the result
of an act of rape or incest; or
(II) in the case where a woman
suffers from a physical disorder,
physical injury, or physical illness,
including a life-endangering physical
condition caused by or arising from the
pregnancy itself, that would, as
certified by a physician, place the
woman in danger of death unless an
abortion is performed; and
(B) for which the total amount of Federal and State
expenditures under the Medicaid program under title XIX
of the Social Security Act in fiscal year 2024 made
directly, or by a covered organization, to the entity
or to any affiliates, subsidiaries, successors, or
clinics of the entity, or made to the entity or to any
affiliates, subsidiaries, successors, or clinics of the
entity as part of a nationwide health care provider
network, exceeded $1,000,000.
(2) Direct spending.--The term ``direct spending'' has the
meaning given that term under section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
900(c)).
(3) Covered organization.--The term ``covered
organization'' means a managed care entity (as defined in
section 1932(a)(1)(B) of the Social Security Act (42 U.S.C.
1396u-2(a)(1)(B))) or a prepaid inpatient health plan or
prepaid ambulatory health plan (as such terms are defined in
section 1903(m)(9)(D) of such Act (42 U.S.C. 1396b(m)(9)(D))).
(4) State.--The term ``State'' has the meaning given such
term in section 1101 of the Social Security Act (42 U.S.C.
1301).
Subpart C--Stopping Abusive Financing Practices
SEC. 44131. SUNSETTING ELIGIBILITY FOR INCREASED FMAP FOR NEW EXPANSION
STATES.
Section 1905(ii)(3) of the Social Security Act (42 U.S.C.
1396d(ii)(3)) is amended--
(1) by striking ``which has not'' and inserting the
following: ``which--
``(A) has not'';
(2) in subparagraph (A), as so inserted, by striking the
period at the end and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(B) begins to expend amounts for all such
individuals prior to January 1, 2026.''.
SEC. 44132. MORATORIUM ON NEW OR INCREASED PROVIDER TAXES.
Section 1903(w)(1)(A)(iii) of the Social Security Act (42 U.S.C.
1396b(w)(1)(A)(iii)) is amended--
(1) by striking ``or'' at the end;
(2) by striking ``if there'' and inserting ``if--
``(I) there''; and
(3) by adding at the end the following new subclauses:
``(II) the tax is first imposed by the State (or by
a unit of local government in the State) on or after
the date of the enactment of this subclause (other than
such a tax for which the legislation or regulations
providing for the imposition of such tax were enacted
or adopted prior to such date of enactment); or
``(III) on or after the date of the enactment of
this subclause, the State (or unit of local government)
increases the amount or rate of tax imposed with
respect to a class of health care items or services (or
with respect to a type of provider or activity within
such a class), or increases the base of the tax such
that the tax is imposed with respect to a class of
items or services (or with respect to a type of
provider or activity within such a class) to which the
tax did not previously apply, but only to the extent
that such revenues are attributable to such increase
and only if such increase was not provided for in
legislation or regulations enacted or adopted prior to
such date of enactment; or''.
SEC. 44133. REVISING THE PAYMENT LIMIT FOR CERTAIN STATE DIRECTED
PAYMENTS.
(a) In General.--Subject to subsection (b), the Secretary of Health
and Human Services 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 100 percent of the specified total published Medicare
payment rate.
(b) Grandfathering Certain Payments.--In the case of a payment
described in section 438.6(c)(2)(iii) of title 42, Code of Federal
Regulations (or a successor regulation) for which written prior
approval was made before the date of the enactment of this Act for the
rating period occurring as of such date of enactment, or a payment so
described for such rating period for which a preprint was submitted to
the Secretary of Health and Human Services prior to such date of
enactment, the revisions described in subsection (a) shall not apply to
such payment for such rating period and for any subsequent rating
period if the amount of such payment does not exceed the amount of such
payment so approved.
(c) 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).
(2) Total published medicare payment rate.--The term
``total published Medicare payment rate'' means amounts
calculated as payment for specific services that have been
developed under part A or part B of title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.).
(3) Written prior approval.--The term ``written prior
approval'' has the meaning given such term in section
438.6(c)(2)(i) of title 42, Code of Federal Regulations (or a
successor regulation).
(d) Funding.--There are appropriated out of any monies in the
Treasury not otherwise appropriated $7,000,000 for each of fiscal years
2026 through 2033 for purposes of carrying out this section.
SEC. 44134. REQUIREMENTS REGARDING WAIVER OF UNIFORM TAX REQUIREMENT
FOR MEDICAID PROVIDER TAX.
(a) In General.--Section 1903(w) of the Social Security Act (42
U.S.C. 1396b(w)) is amended--
(1) in paragraph (3)(E), by inserting after clause (ii)(II)
the following new clause:
``(iii) For purposes of clause (ii)(I), a tax is not considered to
be generally redistributive if any of the following conditions apply:
``(I) Within a permissible class, the tax rate imposed on
any taxpayer or tax rate group (as defined in paragraph (7)(J))
explicitly defined by its relatively lower volume or percentage
of Medicaid taxable units (as defined in paragraph (7)(H)) is
lower than the tax rate imposed on any other taxpayer or tax
rate group explicitly defined by its relatively higher volume
or percentage of Medicaid taxable units.
``(II) Within a permissible class, the tax rate imposed on
any taxpayer or tax rate group (as so defined) based upon its
Medicaid taxable units (as so defined) is higher than the tax
rate imposed on any taxpayer or tax rate group based upon its
non-Medicaid taxable unit (as defined in paragraph (7)(I)).
``(III) The tax excludes or imposes a lower tax rate on a
taxpayer or tax rate group (as so defined) based on or defined
by any description that results in the same effect as described
in subclause (I) or (II) for a taxpayer or tax rate group.
Characteristics that may indicate such type of exclusion
include the use of terminology to establish a tax rate group--
``(aa) based on payments or expenditures made under
the program under this title without mentioning the
term `Medicaid' (or any similar term) to accomplish the
same effect as described in subclause (I) or (II); or
``(bb) that closely approximates a taxpayer or tax
rate group under the program under this title, to the
same effect as described in subclause (I) or (II).'';
and
(2) in paragraph (7), by adding at the end the following
new subparagraphs:
``(H) The term `Medicaid taxable unit' means a unit that is
being taxed within a health care related tax that is applicable
to the program under this title. Such term includes a unit that
is used as the basis for--
``(i) payment under the program under this title
(such as Medicaid bed days);
``(ii) Medicaid revenue;
``(iii) costs associated with the program under
this title (such as Medicaid charges, claims, or
expenditures); and
``(iv) other units associated with the program
under this title, as determined by the Secretary.
``(I) The term `non-Medicaid taxable unit' means a unit
that is being taxed within a health care related tax that is
not applicable to the program under this title. Such term
includes a unit that is used as the basis for--
``(i) payment by non-Medicaid payers (such as non-
Medicaid bed days);
``(ii) non-Medicaid revenue;
``(iii) costs that are not associated with the
program under this title (such as non-Medicaid charges,
non-Medicaid claims, or non-Medicaid expenditures); and
``(iv) other units not associated with the program
under this title, as determined by the Secretary.
``(J) The term `tax rate group' means a group of entities
contained within a permissible class of a health care related
tax that are taxed at the same rate.''.
(b) Effective Date.--The amendments made by this section shall take
effect upon the date of enactment of this Act, subject to any
applicable transition period determined appropriate by the Secretary of
Health and Human Services, not to exceed 3 fiscal years.
SEC. 44135. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEMONSTRATION
PROJECTS UNDER SECTION 1115.
Section 1115 of the Social Security Act (42 U.S.C. 1315) is amended
by adding at the end the following new subsection:
``(g) Requirement of Budget Neutrality for Medicaid Demonstration
Projects.--
``(1) In general.--Beginning on the date of the enactment
of this subsection, the Secretary may not approve an
application for (or renewal or amendment of) an experimental,
pilot, or demonstration project undertaken under subsection (a)
to promote the objectives of title XIX in a State (in this
subsection referred to as a `Medicaid demonstration project')
unless the Secretary certifies that such project is not
expected to result in an increase in the amount of Federal
expenditures compared to the amount that such expenditures
would otherwise be in the absence of such project.
``(2) Treatment of savings.--In the event that Federal
expenditures with respect to a State under a Medicaid
demonstration project are, during an approval period for such
project, less than the amount of such expenditures that would
have otherwise been made in the absence of such project, the
Secretary shall specify the methodology to be used with respect
to any subsequent approval period for such project for purposes
of taking the difference between such expenditures into
account.''.
Subpart D--Increasing Personal Accountability
SEC. 44141. REQUIREMENT FOR STATES TO ESTABLISH MEDICAID COMMUNITY
ENGAGEMENT REQUIREMENTS FOR CERTAIN INDIVIDUALS.
(a) In General.--Section 1902 of the Social Security Act (42 U.S.C.
1396a), as amended by sections 44103 and 44104, is further amended by
adding at the end the following new subsection:
``(xx) Community Engagement Requirement for Applicable
Individuals.--
``(1) In general.--Beginning January 1, 2029, subject to
the succeeding provisions of this subsection, a State shall
provide, as a condition of eligibility for medical assistance
for an applicable individual, that such individual is required
to demonstrate community engagement under paragraph (2)--
``(A) in the case of an applicable individual who
has filed an application for medical assistance under a
State plan (or a waiver of such plan) under this title,
for 1 or more (as specified by the State) consecutive
months immediately preceding the month during which
such individual applies for such medical assistance;
and
``(B) in the case of an applicable individual
enrolled and receiving medical assistance under a State
plan (or under a waiver of such plan) under this title,
for 1 or more (as specified by the State) months,
whether or not consecutive--
``(i) during the period between such
individual's most recent determination (or
redetermination, as applicable) of eligibility
and such individual's next regularly scheduled
redetermination of eligibility (as verified by
the State as part of such regularly scheduled
redetermination of eligibility); or
``(ii) in the case of a State that has
elected under paragraph (4) to conduct more
frequent verifications of compliance with the
requirement to demonstrate community
engagement, during the period between the most
recent and next such verification with respect
to such individual.
``(2) Community engagement compliance described.--Subject
to paragraph (3), an applicable individual demonstrates
community engagement under this paragraph for a month if such
individual meets 1 or more of the following conditions with
respect to such month, as determined in accordance with
criteria established by the Secretary through regulation:
``(A) The individual works not less than 80 hours.
``(B) The individual completes not less than 80
hours of community service.
``(C) The individual participates in a work program
for not less than 80 hours.
``(D) The individual is enrolled in an educational
program at least half-time.
``(E) The individual engages in any combination of
the activities described in subparagraphs (A) through
(D), for a total of not less than 80 hours.
``(F) The individual has a monthly income that is
not less than the applicable minimum wage requirement
under section 6 of the Fair Labor Standards Act of
1938, multiplied by 80 hours.
``(3) Exceptions.--
``(A) Mandatory exception for certain
individuals.--The State shall deem an applicable
individual to have demonstrated community engagement
under paragraph (2) for a month if--
``(i) for part or all of such month, the
individual--
``(I) was a specified excluded
individual (as defined in paragraph
(9)(A)(ii)); or
``(II) was--
``(aa) under the age of 19;
``(bb) pregnant or entitled
to postpartum medical
assistance under paragraph (5)
or (16) of subsection (e);
``(cc) entitled to, or
enrolled for, benefits under
part A of title XVIII, or
enrolled for benefits under
part B of title XVIII; or
``(dd) described in any of
subclauses (I) through (VII) of
subsection (a)(10)(A)(i); or
``(ii) at any point during the 3-month
period ending on the first day of such month,
the individual was an inmate of a public
institution.
``(B) Optional exception for short-term hardship
events.--
``(i) In general.--The State plan (or
waiver of such plan) may provide, in the case
of an applicable individual who experiences a
short-term hardship event during a month, that
the State shall, upon the request of such
individual under procedures established by the
State (in accordance with standards specified
by the Secretary), deem such individual to have
demonstrated community engagement under
paragraph (2) for such month.
``(ii) Short-term hardship event defined.--
For purposes of this subparagraph, an
applicable individual experiences a short-term
hardship event during a month if, for part or
all of such month--
``(I) such individual receives
inpatient hospital services, nursing
facility services, services in an
intermediate care facility for
individuals with intellectual
disabilities, inpatient psychiatric
hospital services, or such other
services 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
``(BB) 1.5 times
the national
unemployment rate; or
``(III) such individual experiences
any other short-term hardship (as
defined by the Secretary).
``(4) Option to conduct more frequent compliance
verifications.--With respect to an applicable individual
enrolled and receiving medical assistance under a State plan
(or a waiver of such plan) under this title, the State shall
verify (in accordance with procedures specified by the
Secretary) that each such individual has met the requirement to
demonstrate community engagement under paragraph (1) during
each such individual's regularly scheduled redetermination of
eligibility, except that a State may provide for such
verifications more frequently.
``(5) Ex parte verifications.--For purposes of verifying
that an applicable individual has met the requirement to
demonstrate community engagement under paragraph (1), the State
shall, in accordance with standards established by the
Secretary, establish processes and use reliable information
available to the State (such as payroll data) without
requiring, where possible, the applicable individual to submit
additional information.
``(6) Procedure in the case of noncompliance.--
``(A) In general.--If a State is unable to verify
that an applicable individual has met the requirement
to demonstrate community engagement under paragraph (1)
(including, if applicable, by verifying that such
individual was deemed to have demonstrated community
engagement under paragraph (3)) the State shall (in
accordance with standards specified by the Secretary)--
``(i) provide such individual with the
notice of noncompliance described in
subparagraph (B);
``(ii) (I) provide such individual with a
period of 30 calendar days, beginning on the
date on which such notice of noncompliance is
received by the individual, to--
``(aa) make a satisfactory showing
to the State of compliance with such
requirement (including, if applicable,
by showing that such individual was
deemed to have demonstrated community
engagement under paragraph (3)); or
``(bb) make a satisfactory showing
to the State that such requirement does
not apply to such individual on the
basis that such individual does not
meet the definition of applicable
individual under paragraph (9)(A); and
``(II) if such individual is enrolled under
the State plan (or a waiver of such plan) under
this title, continue to provide such individual
with medical assistance during such 30-
calendar-day period; and
``(iii) if no such satisfactory showing is
made and the individual is not a specified
excluded individual described in paragraph
(9)(A)(ii), deny such individual's application
for medical assistance under the State plan (or
waiver of such plan) or, as applicable,
disenroll such individual from the plan (or
waiver of such plan) not later than the end of
the month following the month in which such 30-
calendar-day period ends, provided that--
``(I) the State first determines
whether, with respect to the
individual, there is any other basis
for eligibility for medical assistance
under the State plan (or waiver of such
plan) or for another insurance
affordability program; and
``(II) the individual is provided
written notice and granted an
opportunity for a fair hearing in
accordance with subsection (a)(3).
``(B) Notice.--The notice of noncompliance provided
to an applicable individual under subparagraph (A)(i)
shall include information (in accordance with standards
specified by the Secretary) on--
``(i) how such individual may make a
satisfactory showing of compliance with such
requirement (as described in subparagraph
(A)(ii)) or make a satisfactory showing that
such requirement does not apply to such
individual on the basis that such individual
does not meet the definition of applicable
individual under paragraph (9)(A); and
``(ii) how such individual may reapply for
medical assistance under the State plan (or a
waiver of such plan) under this title in the
case that such individuals' application is
denied or, as applicable, in the case that such
individual is disenrolled from the plan (or
waiver).
``(7) Treatment of noncompliant individuals in relation to
certain other provisions.--
``(A) Certain fmap increases.--A State shall not be
treated as not providing medical assistance to all
individuals described in section
1902(a)(10)(A)(i)(VIII), or as not expending amounts
for all such individuals under the State plan (or
waiver of such plan), solely because such an individual
is determined ineligible for medical assistance under
the State plan (or waiver) on the basis of a failure to
meet the requirement to demonstrate community
engagement under paragraph (1).
``(B) Other provisions.--For purposes of section
36B(c)(2)(B) of the Internal Revenue Code of 1986, an
individual shall be deemed to be eligible for minimum
essential coverage described in section
5000A(f)(1)(A)(ii) of such Code for a month if such
individual would have been eligible for medical
assistance under a State plan (or a waiver of such
plan) under this title but for a failure to meet the
requirement to demonstrate community engagement under
paragraph (1).
``(8) Outreach.--
``(A) In general.--In accordance with standards
specified by the Secretary, beginning not later than
October 1, 2028 (or, if earlier, the date that precedes
January 1, 2029, by the number of months specified by
the State under paragraph (1)(A) plus 3 months), and
periodically thereafter, the State shall notify
applicable individuals enrolled under a State plan (or
waiver) under this title of the requirement to
demonstrate community engagement under this subsection.
Such notice shall include information on--
``(i) how to comply with such requirement,
including an explanation of the exceptions to
such requirement under paragraph (3) and the
definition of the term `applicable individual'
under paragraph (9)(A);
``(ii) the consequences of noncompliance
with such requirement; and
``(iii) how to report to the State any
change in the individual's status that could
result in--
``(I) the applicability of an
exception under paragraph (3) (or the
end of the applicability of such an
exception); or
``(II) the individual qualifying as
a specified excluded individual under
paragraph (9)(A)(ii).
``(B) Form of outreach notice.--A notice required
under subparagraph (A) shall be delivered--
``(i) by regular mail (or, if elected by
the individual, in an electronic format); and
``(ii) in 1 or more additional forms, which
may include telephone, text message, an
internet website, other commonly available
electronic means, and such other forms as the
Secretary determines appropriate.
``(9) Definitions.--In this subsection:
``(A) Applicable individual.--
``(i) In general.--The term `applicable
individual' means an individual (other than a
specified excluded individual (as defined in
clause (ii)))--
``(I) who is eligible to enroll (or
is enrolled) under the State plan under
subsection (a)(10)(A)(i)(VIII); or
``(II) who--
``(aa) is otherwise
eligible to enroll (or is
enrolled) under a waiver of
such plan that provides
coverage that is equivalent to
minimum essential coverage (as
described in section
5000A(f)(1)(A) of the Internal
Revenue Code of 1986 and as
determined in accordance with
standards prescribed by the
Secretary in regulations); and
``(bb) has attained the age
of 19 and is under 65 years of
age, is not pregnant, is not
entitled to, or enrolled for,
benefits under part A of title
XVIII, or enrolled for benefits
under part B of title XVIII,
and is not otherwise eligible
to enroll under such plan.
``(ii) Specified excluded individual.--For
purposes of clause (i), the term `specified
excluded individual' means an individual, as
determined by the State (in accordance with
standards specified by the Secretary)--
``(I) who is described in
subsection (a)(10)(A)(i)(IX);
``(II) who--
``(aa) is an Indian or an
Urban Indian (as such terms are
defined in paragraphs (13) and
(28) of section 4 of the Indian
Health Care Improvement Act);
``(bb) is a California
Indian described in section
809(a) of such Act; or
``(cc) has otherwise been
determined eligible as an
Indian for the Indian Health
Service under regulations
promulgated by the Secretary;
``(III) who is the parent,
guardian, or caretaker relative of a
disabled individual or a dependent
child;
``(IV) who is a veteran with a
disability rated as total under section
1155 of title 38, United States Code;
``(V) who is medically frail or
otherwise has special medical needs (as
defined by the Secretary), including an
individual--
``(aa) who is blind or
disabled (as defined in section
1614);
``(bb) with a substance use
disorder;
``(cc) with a disabling
mental disorder;
``(dd) with a physical,
intellectual or developmental
disability that significantly
impairs their ability to
perform 1 or more activities of
daily living;
``(ee) with a serious and
complex medical condition; or
``(ff) subject to the
approval of the Secretary, with
any other medical condition
identified by the State that is
not otherwise identified under
this clause;
``(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
``(IX) who meets such other
criteria as the Secretary determines
appropriate.
``(B) Educational program.--The term `educational
program' means--
``(i) an institution of higher education
(as defined in section 101 of the Higher
Education Act of 1965);
``(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); or
``(iii) any other educational program that
meets such criteria as the Secretary determines
appropriate.
``(C) State.--The term `State' means 1 of the 50
States or the District of Columbia.
``(D) Work program.--The term `work program' has
the meaning given such term in section 6(o)(1) of the
Food and Nutrition Act of 2008.
``(10) Prohibiting waiver of community engagement
requirements.--Notwithstanding section 1115(a), the provisions
of this subsection may not be waived.''.
(b) Conforming Amendment.--Section 1902(a)(10)(A)(i)(VIII) of the
Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is amended by
striking ``subject to subsection (k)'' and inserting ``subject to
subsections (k) and (xx)''.
(c) Rulemaking.--Not later than July 1, 2027, the Secretary of
Health and Human Services shall promulgate regulations for purposes of
carrying out the amendments made by this section.
(d) Grants to States.--
(1) In general.--The Secretary of Health and Human Services
shall, out of amounts appropriated under paragraph (3), award
to each State a grant equal to the amount specified in
paragraph (2) for such State for purposes of establishing
systems necessary to carry out the provisions of, and
amendments made by, this section.
(2) Amount specified.--For purposes of paragraph (2), the
amount specified in this paragraph is an amount that bears the
same ratio to the amount appropriated under paragraph (3) as
the number of applicable individuals (as defined in section
1902(xx) of the Social Security Act, as added by subsection
(a)) residing in such State bears to the total number of such
individuals residing in all States.
(3) Funding.--There are appropriated, out of any monies in
the Treasury not otherwise appropriated, $100,000,000 for
fiscal year 2026 for purposes of awarding grants under
paragraph (1).
(4) Definition.--In this subsection, the term ``State''
means 1 of the 50 States and the District of Columbia.
(e) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Secretary of Health and Human Services,
$50,000,000 for fiscal year 2026, to remain available until expended.
SEC. 44142. MODIFYING COST SHARING REQUIREMENTS FOR CERTAIN EXPANSION
INDIVIDUALS UNDER THE MEDICAID PROGRAM.
(a) In General.--Section 1916 of the Social Security Act (42 U.S.C.
1396o) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by inserting ``(other than, beginning October 1, 2028,
specified individuals (as defined in subsection (k)(3)))''
after ``individuals''; and
(2) by adding at the end the following new subsection:
``(k) Special Rules for Certain Expansion Individuals.--
``(1) Premiums.--Beginning October 1, 2028, the State plan
shall provide that in the case of a specified individual (as
defined in paragraph (3)) who is eligible under the plan, no
enrollment fee, premium, or similar charge will be imposed
under the plan.
``(2) Required imposition of cost sharing.--
``(A) In general.--Subject to subparagraph (B) and
subsection (j), in the case of a specified individual,
the State plan shall, beginning October 1, 2028,
provide for the imposition of such deductions, cost
sharing, or similar charges determined appropriate by
the State (in an amount greater than $0) with respect
to medical assistance furnished to such an individual.
``(B) Limitations.--
``(i) Exclusion of certain services.--In no
case may a deduction, cost sharing, or similar
charge be imposed under the State plan with
respect to services described in any of
subparagraphs (B) through (J) of subsection
(a)(2) furnished to a specified individual.
``(ii) Item and service limitation.--
``(I) In general.--Except as
provided in subclause (II), in no case
may a deduction, cost sharing, or
similar charge imposed under the State
plan with respect to an item or service
furnished to a specified individual
exceed $35.
``(II) Special rules for
prescription drugs.--In no case may a
deduction, cost sharing, or similar
charge imposed under the State plan
with respect to a prescription drug
furnished to a specified individual
exceed the limit that would be
applicable under paragraph (2)(A)(i) or
(2)(B) of section 1916A(c) with respect
to such drug and individual if such
drug so furnished were subject to cost
sharing under such section.
``(iii) Maximum limit on cost sharing.--The
total aggregate amount of deductions, cost
sharing, or similar charges imposed under the
State plan for all individuals in the family
may not exceed 5 percent of the family income
of the family involved, as applied on a
quarterly or monthly basis (as specified by the
State).
``(C) Cases of nonpayment.--Notwithstanding
subsection (e) or any other provision of law, 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
enrolled under section 1902(a)(10)(A)(i)(VIII) 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.''.
(b) Conforming Amendments.--
(1) Required application.--Section 1902(a)(14) of the
Social Security Act (42 U.S.C. 1396a(a)(14)) is amended by
inserting ``and provide for imposition of such deductions, cost
sharing, or similar charges for medical assistance furnished to
specified individuals (as defined in paragraph (3) of section
1916(k)) in accordance with paragraph (2) of such section''
after ``section 1916''.
(2) Nonapplicability of alternative cost sharing.--Section
1916A(a)(1) of the Social Security Act (42 U.S.C. 1396o-
1(a)(1)) is amended, in the second sentence, by striking ``or
(j)'' and inserting ``(j), or (k)''.
PART 2--AFFORDABLE CARE ACT
SEC. 44201. ADDRESSING WASTE, FRAUD, AND ABUSE IN THE ACA EXCHANGES.
(a) Changes to Enrollment Periods for Enrolling in Exchanges.--
Section 1311 of the Patient Protection and Affordable Care Act (42
U.S.C. 18031) is amended--
(1) in subsection (c)(6)--
(A) by striking subparagraph (A);
(B) by striking ``The Secretary'' and inserting the
following:
``(A) In general.--The Secretary'';
(C) by redesignating subparagraphs (B) through (D)
as clauses (i) through (iii), respectively, and
adjusting the margins accordingly;
(D) in clause (i), as so redesignated, by striking
``periods, as determined by the Secretary for calendar
years after the initial enrollment period;'' and
inserting the following: ``periods for plans offered in
the individual market--
``(I) for enrollment for plan years
beginning before January 1, 2026, as
determined by the Secretary; and
``(II) for enrollment for plan
years beginning on or after January 1,
2026, beginning on November 1 and
ending on December 15 of the preceding
calendar year;'';
(E) in clause (ii), as so redesignated, by
inserting ``subject to subparagraph (B),'' before
``special enrollment periods specified''; and
(F) by adding at the end the following new
subparagraph:
``(B) Prohibited special enrollment period.--With
respect to plan years beginning on or after January 1,
2026, the Secretary may not require an Exchange to
provide for a special enrollment period for an
individual on the basis of the relationship of the
income of such individual to the poverty line, other
than a special enrollment period based on a change in
circumstances or the occurrence of a specific event.'';
and
(2) in subsection (d), by adding at the end the following
new paragraphs:
``(8) Prohibited enrollment periods.--An Exchange may not
provide for, with respect to enrollment for plan years
beginning on or after January 1, 2026--
``(A) an annual open enrollment period other than
the period described in subparagraph (A)(i) of
subsection (c)(6); or
``(B) a special enrollment period described in
subparagraph (B) of such subsection.
``(9) Verification of eligibility for special enrollment
periods.--
``(A) In general.--With respect to enrollment for
plan years beginning on or after January 1, 2026, an
Exchange shall verify that each individual seeking to
enroll in a qualified health plan offered by the
Exchange during a special enrollment period selected
under subparagraph (B) is eligible to enroll during
such special enrollment period prior to enrolling such
individual in such plan.
``(B) Selected special enrollment periods.--For
purposes of subparagraph (A), an Exchange shall select
one or more special enrollment periods for a plan year
with respect to which such Exchange shall conduct the
verification required under subparagraph (A) such that
the Exchange conducts such verification for not less
than 75 percent of all individuals enrolling in a
qualified health plan offered by the Exchange during
any special enrollment period with respect to such plan
year.''.
(b) Verifying Income for Individuals Enrolling in a Qualified
Health Plan Through an Exchange.--
(1) In general.--Section 1411(e)(4) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18081(e)(4)) is
amended--
(A) by redesignating subparagraph (C) as
subparagraph (E); and
(B) by inserting after subparagraph (B) the
following new subparagraphs:
``(C) Requiring verification of income and family
size when tax data is unavailable.--For plan years
beginning on or after January 1, 2026, for purposes of
subparagraph (A), in the case that the Exchange
requests data from the Secretary of the Treasury
regarding an individual's household income and the
Secretary of the Treasury does not return such data,
such information may not be verified solely on the
basis of the attestation of such individual with
respect to such household income, and the Exchange
shall take the actions described in subparagraph (A).
``(D) Requiring verification of income in the case
of certain income discrepancies.--
``(i) In general.--Subject to clause (iii),
for plan years beginning on or after January 1,
2026, for purposes of subparagraph (A), in the
case that a specified income discrepancy
described in clause (ii) of this subparagraph
exists with respect to the information provided
by an applicant under subsection (b)(3), the
household income of such individual shall be
treated as inconsistent with information in the
records maintained by persons under subsection
(c), or as not verified under subsection (d),
and the Exchange shall take the actions
described in such subparagraph (A).
``(ii) Specified income discrepancy.--For
purposes of clause (i), a specified income
discrepancy exists with respect to the
information provided by an applicant under
subsection (b)(3) if--
``(I) the applicant attests to a
projected annual household income that
would qualify such applicant to be an
applicable taxpayer under section
36B(c)(1)(A) of the Internal Revenue
Code of 1986 with respect to the
taxable year involved;
``(II) the Exchange receives data
from the Secretary of the Treasury or
the Commissioner of Social Security, or
other reliable, third party data, that
indicates that the household income of
such applicant is less than the
household income that would qualify
such applicant to be an applicable
taxpayer under such section
36B(c)(1)(A) with respect to the
taxable year involved;
``(III) such attested projected
annual household income exceeds the
income reflected in the data described
in subclause (II) by a reasonable
threshold established by the Exchange
and approved by the Secretary (which
shall be not less than 10 percent, and
may also be a dollar amount); and
``(IV) the Exchange has not
assessed or determined based on the
data described in subclause (II) that
the household income of the applicant
meets the applicable income-based
eligibility standard for the Medicaid
program under title XIX of the Social
Security Act or the State children's
health insurance program under title
XXI of such Act.
``(iii) Exclusion of certain individuals
ineligible for medicaid.--This subparagraph
shall not apply in the case of an applicant who
is an alien lawfully present in the United
States, who is not eligible for the Medicaid
program under title XIX of the Social Security
Act by reason of such alien status.''.
(2) Requiring individuals on whose behalf advance payments
of the premium tax credits are made to file and reconcile on an
annual basis.--Section 1412(b) of the Patient Protection and
Affordable Care Act (42 U.S.C. 18082(b)) is amended by adding
at the end the following new paragraph:
``(3) Annual requirement to file and reconcile.--
``(A) In general.--For plan years beginning on or
after January 1, 2026, in the case of an individual
with respect to whom any advance payment of the premium
tax credit allowable under section 36B of the Internal
Revenue Code of 1986 was made under this section to the
issuer of a qualified health plan for the relevant
prior tax year, an advance determination of eligibility
for such premium tax credit may not be made under this
subsection with respect to such individual and such
plan year if the Exchange determines, based on
information provided by the Secretary of the Treasury,
that such individual--
``(i) has not filed an income tax return,
as required under sections 6011 and 6012 of
such Code (and implementing regulations), for
the relevant prior tax year; or
``(ii) as necessary, has not reconciled (in
accordance with subsection (f) of such section
36B) the advance payment of the premium tax
credit made with respect to such individual for
such relevant prior tax year.
``(B) Relevant prior tax year.--For purposes of
subparagraph (A), the term `relevant prior tax year'
means, with respect to the advance determination of
eligibility made under this subsection with respect to
an individual, the taxable year for which tax return
data would be used for purposes of verifying the
household income and family size of such individual (as
described in section 1411(b)(3)(A)).
``(C) Preliminary attestation.--If an individual
subject to subparagraph (A) attests that such
individual has fulfilled the requirements to file an
income tax return for the relevant prior tax year and,
as necessary, to reconcile the advance payment of the
premium tax credit made with respect to such individual
for such relevant prior tax year (as described in
clauses (i) and (ii) of such subparagraph), the
Secretary may make an initial advance determination of
eligibility with respect to such individual and may
delay for a reasonable period (as determined by the
Secretary) any determination based on information
provided by the Secretary of the Treasury that such
individual has not fulfilled such requirements.
``(D) Notice.--If the Secretary determines that an
individual did not meet the requirements described in
subparagraph (A) with respect to the relevant prior tax
year and notifies the Exchange of such determination,
the Exchange shall comply with the notification
requirement described in section 155.305(f)(4)(i) of
title 45, Code of Federal Regulations (as in effect
with respect to plan year 2025).''.
(3) Removing automatic extension of period to resolve
income inconsistencies.--The Secretary of Health and Human
Services shall revise section 155.315(f) of title 45, Code of
Federal Regulations (or any successor regulation), to remove
paragraph (7) of such section such that, with respect to
enrollment for plan years beginning on or after January 1,
2026, in the case that an Exchange established under subtitle D
of title I of the Patient Protection and Affordable Care Act
(42 U.S.C. 18021 et seq.) provides an individual applying for
enrollment in a qualified health plan with a 90-day period to
resolve an inconsistency in the application of such individual
pursuant to section 1411(e)(4)(A)(ii)(II) of such Act, the
Exchange may not provide for an automatic extension to such 90-
day period on the basis that such individual is required to
present satisfactory documentary evidence to verify household
income.
(c) Revising Rules on Allowable Variation in Actuarial Value of
Health Plans.--The Secretary of Health and Human Services shall--
(1) revise section 156.140(c) of title 45, Code of Federal
Regulations (or a successor regulation), to provide that, for
plan years beginning on or after January 1, 2026, the allowable
variation in the actuarial value of a health plan applicable
under such section shall be the allowable variation for such
plan applicable under such section for plan year 2022;
(2) revise section 156.200(b)(3) of title 45, Code of
Federal Regulations (or a successor regulation), to provide
that, for plan years beginning on or after January 1, 2026, the
requirement for a qualified health plan issuer described in
such section is that the issuer ensures that each qualified
health plan complies with benefit design standards, as defined
in section 156.20 of such title; and
(3) revise section 156.400 of title 45, Code of Federal
Regulations (or a successor regulation), to provide that, for
plan years beginning on or after January 1, 2026, the term ``de
minimis variation for a silver plan variation'' means a minus 1
percentage point and plus 1 percentage point allowable
actuarial value variation.
(d) Updating Premium Adjustment Percentage Methodology.--Section
1302(c)(4) of the Patient Protection and Affordable Care Act (42 U.S.C.
18022(c)(4)) is amended--
(1) by striking ``For purposes'' and inserting:
``(A) In general.--For purposes''; and
(2) by adding at the end the following new subparagraph:
``(B) Update to methodology.--For calendar years
beginning with 2026, the premium adjustment percentage
under this paragraph for such calendar year shall be
determined consistent with the methodology published in
the Federal Register on April 25, 2019 (84 Fed. Reg.
17537 through 17541).''.
(e) Eliminating the Fixed-dollar and Gross-percentage Thresholds
Applicable to Exchange Enrollments.--The Secretary of Health and Human
Services shall revise section 155.400(g) of title 45, Code of Federal
Regulations (or a successor regulation) to eliminate, for plan years
beginning on or after January 1, 2026, the gross premium percentage-
based premium payment threshold policy described in paragraph (2) of
such section and the fixed-dollar premium payment threshold policy
described in paragraph (3) of such section.
(f) Prohibiting Automatic Reenrollment From Bronze to Silver Level
Qualified Health Plans Offered by Exchanges.--The Secretary of Health
and Human Services shall revise section 155.335(j) of title 45, Code of
Federal Regulations (or any successor regulation) to remove paragraph
(4) of such section such that, with respect to reenrollments for plan
years beginning on or after January 1, 2026, an Exchange established
under subtitle D of title I of the Patient Protection and Affordable
Care Act (42 U.S.C. 18021 et seq.) may not reenroll an individual who
was enrolled in a bronze level qualified health plan in a silver level
qualified health plan (as such terms are defined in section 1301(a) and
described in 1302(d) of such Act) unless otherwise permitted under
section 155.335(j) of title 45, Code of Federal Regulations, as in
effect on the day before the date of the enactment of this section.
(g) Reducing Advance Payments of Premium Tax Credits for Certain
Individuals Reenrolled in Exchanges.--Section 1412 of the Patient
Protection and Affordable Care Act (42 U.S.C. 18082) is amended--
(1) in subsection (a)(3), by inserting ``, subject to
subsection (c)(2)(C),'' after ``qualified health plans''; and
(2) in subsection (c)(2)--
(A) in subparagraph (A), by striking ``The'' and
inserting ``Subject to subparagraph (C), the''; and
(B) by adding at the end the following new
subparagraph:
``(C) Reduction in advance payment for specified
reenrolled individuals.--
``(i) In general.--The amount of an advance
payment made under subparagraph (A) to reduce
the premium payable for a qualified health plan
that provides coverage to a specified
reenrolled individual for an applicable month
shall be an amount equal to the amount that
would otherwise be made under such subparagraph
reduced by $5 (or such higher amount as the
Secretary determines appropriate).
``(ii) Definitions.--In this subparagraph:
``(I) Applicable month.--The term
`applicable month' means, with respect
to a specified reenrolled individual,
any month during a plan year beginning
on or after January 1, 2027 (or, in the
case of an individual reenrolled in a
qualified health plan by an Exchange
established pursuant to section
1321(c), January 1, 2026) if, prior to
the first day of such month, such
individual has failed to confirm or
update such information as is necessary
to redetermine the eligibility of such
individual for such plan year pursuant
to section 1411(f).
``(II) Specified reenrolled
individual.--The term `specified
reenrolled individual' means an
individual who is reenrolled in a
qualified health plan and with respect
to whom the advance payment made under
subparagraph (A) would, without
application of any reduction under this
subparagraph, reduce the premium
payable for a qualified health plan
that provides coverage to such an
individual to $0.''.
(h) Prohibiting Coverage of Gender Transition Procedures as an
Essential Health Benefit Under Plans Offered by Exchanges.--
(1) In general.--Section 1302(b)(2) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18022(b)(2)) is
amended by adding at the end the following new subparagraph:
``(C) Gender transition procedures.--For plan years
beginning on or after January 1, 2027, the essential
health benefits defined pursuant to paragraph (1) may
not include items and services furnished for a gender
transition procedure.''.
(2) Gender transition procedure defined.--Section 1304 of
the Patient Protection and Affordable Care Act (42 U.S.C.
18024) is amended by adding at the end the following new
subsection:
``(f) Gender Transition Procedure.--
``(1) In general.--In this title, except as provided in
paragraph (2), the term `gender transition procedure' means,
with respect to an individual, any of the following when
performed for the purpose of intentionally changing the body of
such individual (including by disrupting the body's
development, inhibiting its natural functions, or modifying its
appearance) to no longer correspond to the individual's sex:
``(A) Performing any surgery, including--
``(i) castration;
``(ii) sterilization;
``(iii) orchiectomy;
``(iv) scrotoplasty;
``(v) vasectomy;
``(vi) tubal ligation;
``(vii) hysterectomy;
``(viii) oophorectomy;
``(ix) ovariectomy;
``(x) metoidioplasty;
``(xi) clitoroplasty;
``(xii) reconstruction of the fixed part of
the urethra with or without a metoidioplasty or
a phalloplasty;
``(xiii) penectomy;
``(xiv) phalloplasty;
``(xv) vaginoplasty;
``(xvi) vaginectomy;
``(xvii) vulvoplasty;
``(xviii) reduction thyrochondroplasty;
``(xix) chondrolaryngoplasty;
``(xx) mastectomy; and
``(xxi) any plastic, cosmetic, or aesthetic
surgery that feminizes or masculinizes the
facial or other body features of an individual.
``(B) Any placement of chest implants to create
feminine breasts or any placement of erection or
testicular prosetheses.
``(C) Any placement of fat or artificial implants
in the gluteal region.
``(D) Administering, prescribing, or dispensing to
an individual medications, including--
``(i) gonadotropin-releasing hormone (GnRH)
analogues or other puberty-blocking drugs to
stop or delay normal puberty; and
``(ii) testosterone, estrogen, or other
androgens to an individual at doses that are
supraphysiologic than would normally be
produced endogenously in a healthy individual
of the same age and sex.
``(2) Exception.--Paragraph (1) shall not apply to the
following:
``(A) Puberty suppression or blocking prescription
drugs for the purpose of normalizing puberty for an
individual experiencing precocious puberty.
``(B) Medically necessary procedures or treatments
to correct for--
``(i) a medically verifiable disorder of
sex development, including--
``(I) 46,XX chromosomes with
virilization;
``(II) 46,XY chromosomes with
undervirilization; and
``(III) both ovarian and testicular
tissue;
``(ii) sex chromosome structure, sex
steroid hormone production, or sex hormone
action, if determined to be abnormal by a
physician through genetic or biochemical
testing;
``(iii) infection, disease, injury, or
disorder caused or exacerbated by a previous
procedure described in paragraph (1), or a
physical disorder, physical injury, or physical
illness that would, as certified by a
physician, place the individual in imminent
danger of death or impairment of a major bodily
function unless the procedure is performed, not
including procedures performed for the
alleviation of mental distress; or
``(iv) procedures to restore or reconstruct
the body of the individual in order to
correspond to the individual's sex after one or
more previous procedures described in paragraph
(1), which may include the removal of a pseudo
phallus or breast augmentation.
``(3) Sex.--For purposes of this subsection, the term `sex'
means either male or female, as biologically determined and
defined by subparagraph (A) and subparagraph (B).
``(A) Female.--The term `female' means an
individual who naturally has, had, will have, or would
have, but for a developmental or genetic anomaly or
historical accident, the reproductive system that at
some point produces, transports, and utilizes eggs for
fertilization.
``(B) Male.--The term `male' means an individual
who naturally has, had, will have, or would have, but
for a developmental or genetic anomaly or historical
accident, the reproductive system that at some point
produces, transports, and utilizes sperm for
fertilization.''.
(i) Clarifying Lawful Presence for Purposes of the Exchanges.--
(1) In general.--Section 1312(f) of the Patient Protection
and Affordable Care Act (42 U.S.C. 18032(f)) is amended by
adding at the end the following new paragraph:
``(4) Clarification of lawful presence.--In this title, the
term `alien lawfully present in the United States' does not
include an alien granted deferred action under the Deferred
Action for Childhood Arrivals process pursuant to the
memorandum of the Department of Homeland Security entitled
`Exercising Prosecutorial Discretion with Respect to
Individuals Who Came to the United States as Children' issued
on June 15, 2012.''.
(2) Cost-sharing reductions.--Section 1402(e)(2) of the
Patient Protection and Affordable Care Act (42 U.S.C.
18071(e)(2)) is amended by adding at the end the following new
sentence: ``For purposes of this section, an individual shall
not be treated as lawfully present if the individual is an
alien granted deferred action under the Deferred Action for
Childhood Arrivals process pursuant to the memorandum of the
Department of Homeland Security entitled `Exercising
Prosecutorial Discretion with Respect to Individuals Who Came
to the United States as Children' issued on June 15, 2012.''.
(3) Payment prohibition.--Section 1412(d) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18082(d)) is
amended by adding at the end the following new sentence: ``For
purposes of the previous sentence, an individual shall not be
treated as lawfully present if the individual is an alien
granted deferred action under the Deferred Action for Childhood
Arrivals process pursuant to the memorandum of the Department
of Homeland Security entitled `Exercising Prosecutorial
Discretion with Respect to Individuals Who Came to the United
States as Children' issued on June 15, 2012.''.
(4) Effective date.--The amendments made by this section
shall apply with respect to plan years beginning on or after
January 1, 2026.
(j) Ensuring Appropriate Application of Guaranteed Issue
Requirements in Case of Nonpayment of Past Premiums.--
(1) In general.--Section 2702 of the Public Health Service
Act (42 U.S.C. 300gg-1) is amended by adding at the end the
following new subsection:
``(e) Nonpayment of Past Premiums.--
``(1) In general.--A health insurance issuer offering
individual health insurance coverage may, to the extent allowed
under State law, deny such coverage in the case of an
individual who owes any amount for premiums for individual
health insurance coverage offered by such issuer (or by a
health insurance issuer in the same controlled group (as
defined in paragraph (3)) as such issuer) in which such
individual was previously enrolled.
``(2) Attribution of initial premium payment to owed
amount.--A health insurance issuer offering individual health
insurance coverage may, in the case of an individual described
in paragraph (1) and to the extent allowed under State law,
attribute the initial premium payment for such coverage
applicable to such individual to the amount owed by such
individual for premiums for individual health insurance
coverage offered by such issuer (or by a health insurance
issuer in the same controlled group as such issuer) in which
such individual was previously enrolled.
``(3) Controlled group defined.--For purposes of this
subsection, the term `controlled group' means a group of of two
or more persons that is treated as a single employer under
section 52(a), 52(b), 414(m), or 414(o) of the Internal Revenue
Code of 1986.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to plan years beginning on or after
January 1, 2026.
PART 3--IMPROVING AMERICANS' ACCESS TO CARE
SEC. 44301. EXPANDING AND CLARIFYING THE EXCLUSION FOR ORPHAN DRUGS
UNDER THE DRUG PRICE NEGOTIATION PROGRAM.
(a) In General.--Section 1192(e) of the Social Security Act (42
U.S.C. 1320f-1(e)) is amended--
(1) in paragraph (1), by adding at the end the following
new subparagraph:
``(C) Treatment of former orphan drugs.--In
calculating the amount of time that has elapsed with
respect to the approval of a drug or licensure of a
biological product under subparagraph (A)(ii) and
subparagraph (B)(ii), respectively, the Secretary shall
not take into account any period during which such drug
or product was a drug described in paragraph (3)(A).'';
and
(2) in paragraph (3)(A)--
(A) by striking ``only one rare disease or
condition'' and inserting ``one or more rare diseases
or conditions''; and
(B) by striking ``such disease or condition'' and
inserting ``one or more rare diseases or conditions (as
such term is defined in section 526(a)(2) of the
Federal Food, Drug, and Cosmetic Act)''.
(b) Application.--The amendments made by subsection (a) shall apply
with respect to initial price applicability years (as defined in
section 1191(b) of the Social Security Act (42 U.S.C. 1320f(b)))
beginning on or after January 1, 2028.
SEC. 44302. STREAMLINED ENROLLMENT PROCESS FOR ELIGIBLE OUT-OF-STATE
PROVIDERS UNDER MEDICAID AND CHIP.
(a) In General.--Section 1902(kk) of the Social Security Act (42
U.S.C. 1396a(kk)) is amended by adding at the end the following new
paragraph:
``(10) Streamlined enrollment process for eligible out-of-
state providers.--
``(A) In general.--The State--
``(i) adopts and implements a process to
allow an eligible out-of-State provider to
enroll under the State plan (or a waiver of
such plan) to furnish items and services to, or
order, prescribe, refer, or certify eligibility
for items and services for, qualifying
individuals without the imposition of screening
or enrollment requirements by such State that
exceed the minimum necessary for such State to
provide payment to an eligible out-of-State
provider under such State plan (or a waiver of
such plan), such as the provider's name and
National Provider Identifier (and such other
information specified by the Secretary); and
``(ii) provides that an eligible out-of-
State provider that enrolls as a participating
provider in the State plan (or a waiver of such
plan) through such process shall be so enrolled
for a 5-year period, unless the provider is
terminated or excluded from participation
during such period.
``(B) Definitions.--In this paragraph:
``(i) Eligible out-of-state provider.--The
term `eligible out-of-State provider' means,
with respect to a State, a provider--
``(I) that is located in any other
State;
``(II) that--
``(aa) was determined by
the Secretary to have a limited
risk of fraud, waste, and abuse
for purposes of determining the
level of screening to be
conducted under section
1866(j)(2), has been so
screened under such section
1866(j)(2), and is enrolled in
the Medicare program under
title XVIII; or
``(bb) was determined by
the State agency administering
or supervising the
administration of the State
plan (or a waiver of such plan)
of such other State to have a
limited risk of fraud, waste,
and abuse for purposes of
determining the level of
screening to be conducted under
paragraph (1) of this
subsection, has been so
screened under such paragraph
(1), and is enrolled under such
State plan (or a waiver of such
plan); and
``(III) that has not been--
``(aa) excluded from
participation in any Federal
health care program pursuant to
section 1128 or 1128A;
``(bb) excluded from
participation in the State plan
(or a waiver of such plan)
pursuant to part 1002 of title
42, Code of Federal Regulations
(or any successor regulation),
or State law; or
``(cc) terminated from
participating in a Federal
health care program or the
State plan (or a waiver of such
plan) for a reason described in
paragraph (8)(A).
``(ii) Qualifying individual.--The term
`qualifying individual' means an individual
under 21 years of age who is enrolled under the
State plan (or waiver of such plan).
``(iii) State.--The term `State' means 1 of
the 50 States or the District of Columbia.''.
(b) Conforming Amendments.--
(1) Section 1902(a)(77) of the Social Security Act (42
U.S.C. 1396a(a)(77)) is amended by inserting ``enrollment,''
after ``screening,''.
(2) The subsection heading for section 1902(kk) of such Act
(42 U.S.C. 1396a(kk)) is amended by inserting ``Enrollment,''
after ``Screening,''.
(3) Section 2107(e)(1)(G) of such Act (42 U.S.C.
1397gg(e)(1)(G)) is amended by inserting ``enrollment,'' after
``screening,''.
(c) Effective Date.--The amendments made by this section shall
apply beginning on the date that is 4 years after the date of enactment
of this Act.
SEC. 44303. DELAYING DSH REDUCTIONS.
(a) In General.--Section 1923(f) of the Social Security Act (42
U.S.C. 1396r-4(f)) is amended--
(1) in paragraph (7)(A)--
(A) in clause (i)--
(i) in the matter preceding subclause (I),
by striking ``2026 through 2028'' and inserting
``2029 through 2031''; and
(ii) in subclause (II), by striking ``or
period''; and
(B) in clause (ii), by striking ``2026 through
2028'' and inserting ``2029 through 2031''; and
(2) in paragraph (8), by striking ``2027'' and inserting
``2031''.
(b) Tennessee DSH Allotment.--Section 1923(f)(6)(A)(vi) of the
Social Security Act (42 U.S.C. 1396r-4(f)(6)(A)(vi)) is amended--
(1) in the header, by striking ``2025'' and inserting
``2028''; and
(2) by striking ``fiscal year 2025'' and inserting ``fiscal
year 2028''.
SEC. 44304. MODIFYING UPDATE TO THE CONVERSION FACTOR UNDER THE
PHYSICIAN FEE SCHEDULE UNDER THE MEDICARE PROGRAM.
Section 1848(d) of the Social Security Act (42 U.S.C. 1395w-4(d))
is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) in the first sentence, by striking
``and ending with 2025''; and
(ii) by striking the second sentence; and
(B) in subparagraph (D), by striking ``(or,
beginning with 2026, applicable conversion factor)'';
and
(2) by amending paragraph (20) to read as follows:
``(20) Update for 2026 and subsequent years.--The update to
the single conversion factor established in paragraph (1)(A)--
``(A) for 2026 is 75 percent of the Secretary's
estimate of the percentage increase in the MEI (as
defined in section 1842(i)(3)) for the year; and
``(B) for 2027 and each subsequent year is 10
percent of the Secretary's estimate of the percentage
increase in the MEI for the year.''.
SEC. 44305. MODERNIZING AND ENSURING PBM ACCOUNTABILITY.
(a) In General.--
(1) Prescription drug plans.--Section 1860D-12 of the
Social Security Act (42 U.S.C. 1395w-112) is amended by adding
at the end the following new subsection:
``(h) Requirements Relating to Pharmacy Benefit Managers.--For plan
years beginning on or after January 1, 2028:
``(1) Agreements with pharmacy benefit managers.--Each
contract entered into with a PDP sponsor under this part with
respect to a prescription drug plan offered by such sponsor
shall provide that any pharmacy benefit manager acting on
behalf of such sponsor has a written agreement with the PDP
sponsor under which the pharmacy benefit manager, and any
affiliates of such pharmacy benefit manager, as applicable,
agree to meet the following requirements:
``(A) No income other than bona fide service
fees.--
``(i) In general.--The pharmacy benefit
manager and any affiliate of such pharmacy
benefit manager shall not derive any
remuneration with respect to any services
provided on behalf of any entity or individual,
in connection with the utilization of covered
part D drugs, from any such entity or
individual other than bona fide service fees,
subject to clauses (ii) and (iii).
``(ii) Incentive payments.--For the
purposes of this subsection, an incentive
payment (as determined by the Secretary) paid
by a PDP sponsor to a pharmacy benefit manager
(or an affiliate of such pharmacy benefit
manager) that is performing services on behalf
of such sponsor shall be deemed a `bona fide
service fee' (even if such payment does not
otherwise meet the definition of such term
under paragraph (7)(B)) if such payment is a
flat dollar amount, is consistent with fair
market value (as specified by the Secretary),
is related to services actually performed by
the pharmacy benefit manager or affiliate of
such pharmacy benefit manager, on behalf of the
PDP sponsor making such payment, in connection
with the utilization of covered part D drugs,
and meets additional requirements, if any, as
determined appropriate by the Secretary.
``(iii) Clarification on rebates and
discounts used to lower costs for covered part
d drugs.--Rebates, discounts, and other price
concessions received by a pharmacy benefit
manager or an affiliate of a pharmacy benefit
manager from manufacturers, even if such price
concessions are calculated as a percentage of a
drug's price, shall not be considered a
violation of the requirements of clause (i) if
they are fully passed through to a PDP sponsor
and are compliant with all regulatory and
subregulatory requirements related to direct
and indirect remuneration for manufacturer
rebates under this part, including in cases
where a PDP sponsor is acting as a pharmacy
benefit manager on behalf of a prescription
drug plan offered by such PDP sponsor.
``(iv) Evaluation of remuneration
arrangements.--Components of subsets of
remuneration arrangements (such as fees or
other forms of compensation paid to or retained
by the pharmacy benefit manager or affiliate of
such pharmacy benefit manager), as determined
appropriate by the Secretary, between pharmacy
benefit managers or affiliates of such pharmacy
benefit managers, as applicable, and other
entities involved in the dispensing or
utilization of covered part D drugs (including
PDP sponsors, manufacturers, pharmacies, and
other entities as determined appropriate by the
Secretary) shall be subject to review by the
Secretary, in consultation with the Office of
the Inspector General of the Department of
Health and Human Services, as determined
appropriate by the Secretary. The Secretary, in
consultation with the Office of the Inspector
General, shall review whether remuneration
under such arrangements is consistent with fair
market value (as specified by the Secretary)
through reviews and assessments of such
remuneration, as determined appropriate.
``(v) Disgorgement.--The pharmacy benefit
manager shall disgorge any remuneration paid to
such pharmacy benefit manager or an affiliate
of such pharmacy benefit manager in violation
of this subparagraph to the PDP sponsor.
``(vi) Additional requirements.--The
pharmacy benefit manager shall--
``(I) enter into a written
agreement with any affiliate of such
pharmacy benefit manager, under which
the affiliate shall identify and
disgorge any remuneration described in
clause (v) to the pharmacy benefit
manager; and
``(II) attest, subject to any
requirements determined appropriate by
the Secretary, that the pharmacy
benefit manager has entered into a
written agreement described in
subclause (I) with any relevant
affiliate of the pharmacy benefit
manager.
``(B) Transparency regarding guarantees and cost
performance evaluations.--The pharmacy benefit manager
shall--
``(i) define, interpret, and apply, in a
fully transparent and consistent manner for
purposes of calculating or otherwise evaluating
pharmacy benefit manager performance against
pricing guarantees or similar cost performance
measurements related to rebates, discounts,
price concessions, or net costs, terms such
as--
``(I) `generic drug', in a manner
consistent with the definition of the
term under section 423.4 of title 42,
Code of Federal Regulations, or a
successor regulation;
``(II) `brand name drug', in a
manner consistent with the definition
of the term under section 423.4 of
title 42, Code of Federal Regulations,
or a successor regulation;
``(III) `specialty drug';
``(IV) `rebate'; and
``(V) `discount';
``(ii) identify any drugs, claims, or price
concessions excluded from any pricing guarantee
or other cost performance measure in a clear
and consistent manner; and
``(iii) where a pricing guarantee or other
cost performance measure is based on a pricing
benchmark other than the wholesale acquisition
cost (as defined in section 1847A(c)(6)(B)) of
a drug, calculate and provide a wholesale
acquisition cost-based equivalent to the
pricing guarantee or other cost performance
measure.
``(C) Provision of information.--
``(i) In general.--Not later than July 1 of
each year, beginning in 2028, the pharmacy
benefit manager shall submit to the PDP
sponsor, and to the Secretary, a report, in
accordance with this subparagraph, and shall
make such report available to such sponsor at
no cost to such sponsor in a format specified
by the Secretary under paragraph (5). Each such
report shall include, with respect to such PDP
sponsor and each plan offered by such sponsor,
the following information with respect to the
previous plan year:
``(I) A list of all drugs covered
by the plan that were dispensed
including, with respect to each such
drug--
``(aa) the brand name,
generic or non-proprietary
name, and National Drug Code;
``(bb) the number of plan
enrollees for whom the drug was
dispensed, the total number of
prescription claims for the
drug (including original
prescriptions and refills,
counted as separate claims),
and the total number of dosage
units of the drug dispensed;
``(cc) the number of
prescription claims described
in item (bb) by each type of
dispensing channel through
which the drug was dispensed,
including retail, mail order,
specialty pharmacy, long term
care pharmacy, home infusion
pharmacy, or other types of
pharmacies or providers;
``(dd) the average
wholesale acquisition cost,
listed as cost per day's
supply, cost per dosage unit,
and cost per typical course of
treatment (as applicable);
``(ee) the average
wholesale price for the drug,
listed as price per day's
supply, price per dosage unit,
and price per typical course of
treatment (as applicable);
``(ff) the total out-of-
pocket spending by plan
enrollees on such drug after
application of any benefits
under the plan, including plan
enrollee spending through
copayments, coinsurance, and
deductibles;
``(gg) total rebates paid
by the manufacturer on the drug
as reported under the Detailed
DIR Report (or any successor
report) submitted by such
sponsor to the Centers for
Medicare & Medicaid Services;
``(hh) all other direct or
indirect remuneration on the
drug as reported under the
Detailed DIR Report (or any
successor report) submitted by
such sponsor to the Centers for
Medicare & Medicaid Services;
``(ii) the average pharmacy
reimbursement amount paid by
the plan for the drug in the
aggregate and disaggregated by
dispensing channel identified
in item (cc);
``(jj) the average National
Average Drug Acquisition Cost
(NADAC); and
``(kk) total manufacturer-
derived revenue, inclusive of
bona fide service fees,
attributable to the drug and
retained by the pharmacy
benefit manager and any
affiliate of such pharmacy
benefit manager.
``(II) In the case of a pharmacy
benefit manager that has an affiliate
that is a retail, mail order, or
specialty pharmacy, with respect to
drugs covered by such plan that were
dispensed, the following information:
``(aa) The percentage of
total prescriptions that were
dispensed by pharmacies that
are an affiliate of the
pharmacy benefit manager for
each drug.
``(bb) The interquartile
range of the total combined
costs paid by the plan and plan
enrollees, per dosage unit, per
course of treatment, per 30-day
supply, and per 90-day supply
for each drug dispensed by
pharmacies that are not an
affiliate of the pharmacy
benefit manager and that are
included in the pharmacy
network of such plan.
``(cc) The interquartile
range of the total combined
costs paid by the plan and plan
enrollees, per dosage unit, per
course of treatment, per 30-day
supply, and per 90-day supply
for each drug dispensed by
pharmacies that are an
affiliate of the pharmacy
benefit manager and that are
included in the pharmacy
network of such plan.
``(dd) The lowest total
combined cost paid by the plan
and plan enrollees, per dosage
unit, per course of treatment,
per 30-day supply, and per 90-
day supply, for each drug that
is available from any pharmacy
included in the pharmacy
network of such plan.
``(ee) The difference
between the average acquisition
cost of the affiliate, such as
a pharmacy or other entity that
acquires prescription drugs,
that initially acquires the
drug and the amount reported
under subclause (I)(jj) for
each drug.
``(ff) A list inclusive of
the brand name, generic or non-
proprietary name, and National
Drug Code of covered part D
drugs subject to an agreement
with a covered entity under
section 340B of the Public
Health Service Act for which
the pharmacy benefit manager or
an affiliate of the pharmacy
benefit manager had a contract
or other arrangement with such
a covered entity in the service
area of such plan.
``(III) Where a drug approved under
section 505(c) of the Federal Food,
Drug, and Cosmetic Act (referred to in
this subclause as the `listed drug') is
covered by the plan, the following
information:
``(aa) A list of currently
marketed generic drugs approved
under section 505(j) of the
Federal Food, Drug, and
Cosmetic Act pursuant to an
application that references
such listed drug that are not
covered by the plan, are
covered on the same formulary
tier or a formulary tier
typically associated with
higher cost-sharing than the
listed drug, or are subject to
utilization management that the
listed drug is not subject to.
``(bb) The estimated
average beneficiary cost-
sharing under the plan for a
30-day supply of the listed
drug.
``(cc) Where a generic drug
listed under item (aa) is on a
formulary tier typically
associated with higher cost-
sharing than the listed drug,
the estimated average cost-
sharing that a beneficiary
would have paid for a 30-day
supply of each of the generic
drugs described in item (aa),
had the plan provided coverage
for such drugs on the same
formulary tier as the listed
drug.
``(dd) A written
justification for providing
more favorable coverage of the
listed drug than the generic
drugs described in item (aa).
``(ee) The number of
currently marketed generic
drugs approved under section
505(j) of the Federal Food,
Drug, and Cosmetic Act pursuant
to an application that
references such listed drug.
``(IV) Where a reference product
(as defined in section 351(i) of the
Public Health Service Act) is covered
by the plan, the following information:
``(aa) A list of currently
marketed biosimilar biological
products licensed under section
351(k) of the Public Health
Service Act pursuant to an
application that refers to such
reference product that are not
covered by the plan, are
covered on the same formulary
tier or a formulary tier
typically associated with
higher cost-sharing than the
reference product, or are
subject to utilization
management that the reference
product is not subject to.
``(bb) The estimated
average beneficiary cost-
sharing under the plan for a
30-day supply of the reference
product.
``(cc) Where a biosimilar
biological product listed under
item (aa) is on a formulary
tier typically associated with
higher cost-sharing than the
reference product, the
estimated average cost-sharing
that a beneficiary would have
paid for a 30-day supply of
each of the biosimilar
biological products described
in item (aa), had the plan
provided coverage for such
products on the same formulary
tier as the reference product.
``(dd) A written
justification for providing
more favorable coverage of the
reference product than the
biosimilar biological product
described in item (aa).
``(ee) The number of
currently marketed biosimilar
biological products licensed
under section 351(k) of the
Public Health Service Act,
pursuant to an application that
refers to such reference
product.
``(V) Total gross spending on
covered part D drugs by the plan, not
net of rebates, fees, discounts, or
other direct or indirect remuneration.
``(VI) The total amount retained by
the pharmacy benefit manager or an
affiliate of such pharmacy benefit
manager in revenue related to
utilization of covered part D drugs
under that plan, inclusive of bona fide
service fees.
``(VII) The total spending on
covered part D drugs net of rebates,
fees, discounts, or other direct and
indirect remuneration by the plan.
``(VIII) An explanation of any
benefit design parameters under such
plan that encourage plan enrollees to
fill prescriptions at pharmacies that
are an affiliate of such pharmacy
benefit manager, such as mail and
specialty home delivery programs, and
retail and mail auto-refill programs.
``(IX) The following information:
``(aa) A list of all
brokers, consultants, advisors,
and auditors that receive
compensation from the pharmacy
benefit manager or an affiliate
of such pharmacy benefit
manager for referrals,
consulting, auditing, or other
services offered to PDP
sponsors related to pharmacy
benefit management services.
``(bb) The amount of
compensation provided by such
pharmacy benefit manager or
affiliate to each such broker,
consultant, advisor, and
auditor.
``(cc) The methodology for
calculating the amount of
compensation provided by such
pharmacy benefit manager or
affiliate, for each such
broker, consultant, advisor,
and auditor.
``(X) A list of all affiliates of
the pharmacy benefit manager.
``(XI) A summary document submitted
in a standardized template developed by
the Secretary that includes such
information described in subclauses (I)
through (X).
``(ii) Written explanation of contracts or
agreements with drug manufacturers.--
``(I) In general.--The pharmacy
benefit manager shall, not later than
30 days after the finalization of any
contract or agreement between such
pharmacy benefit manager or an
affiliate of such pharmacy benefit
manager and a drug manufacturer (or
subsidiary, agent, or entity affiliated
with such drug manufacturer) that makes
rebates, discounts, payments, or other
financial incentives related to one or
more covered part D drugs or other
prescription drugs, as applicable, of
the manufacturer directly or indirectly
contingent upon coverage, formulary
placement, or utilization management
conditions on any other covered part D
drugs or other prescription drugs, as
applicable, submit to the PDP sponsor a
written explanation of such contract or
agreement.
``(II) Requirements.--A written
explanation under subclause (I) shall--
``(aa) include the
manufacturer subject to the
contract or agreement, all
covered part D drugs and other
prescription drugs, as
applicable, subject to the
contract or agreement and the
manufacturers of such drugs,
and a high-level description of
the terms of such contract or
agreement and how such terms
apply to such drugs; and
``(bb) be certified by the
Chief Executive Officer, Chief
Financial Officer, or General
Counsel of such pharmacy
benefit manager, or affiliate
of such pharmacy benefit
manager, as applicable, or an
individual delegated with the
authority to sign on behalf of
one of these officers, who
reports directly to the
officer.
``(III) Definition of other
prescription drugs.--For purposes of
this clause, the term `other
prescription drugs' means prescription
drugs covered as supplemental benefits
under this part or prescription drugs
paid outside of this part.
``(D) Audit rights.--
``(i) In general.--Not less than once a
year, at the request of the PDP sponsor, the
pharmacy benefit manager shall allow for an
audit of the pharmacy benefit manager to ensure
compliance with all terms and conditions under
the written agreement described in this
paragraph and the accuracy of information
reported under subparagraph (C).
``(ii) Auditor.--The PDP sponsor shall have
the right to select an auditor. The pharmacy
benefit manager shall not impose any
limitations on the selection of such auditor.
``(iii) Provision of information.--The
pharmacy benefit manager shall make available
to such auditor all records, data, contracts,
and other information necessary to confirm the
accuracy of information provided under
subparagraph (C), subject to reasonable
restrictions on how such information must be
reported to prevent redisclosure of such
information.
``(iv) Timing.--The pharmacy benefit
manager must provide information under clause
(iii) and other information, data, and records
relevant to the audit to such auditor within 6
months of the initiation of the audit and
respond to requests for additional information
from such auditor within 30 days after the
request for additional information.
``(v) Information from affiliates.--The
pharmacy benefit manager shall be responsible
for providing to such auditor information
required to be reported under subparagraph (C)
or under clause (iii) of this subparagraph that
is owned or held by an affiliate of such
pharmacy benefit manager.
``(2) Enforcement.--
``(A) In general.--Each PDP sponsor shall--
``(i) disgorge to the Secretary any amounts
disgorged to the PDP sponsor by a pharmacy
benefit manager under paragraph (1)(A)(v);
``(ii) require, in a written agreement with
any pharmacy benefit manager acting on behalf
of such sponsor or affiliate of such pharmacy
benefit manager, that such pharmacy benefit
manager or affiliate reimburse the PDP sponsor
for any civil money penalty imposed on the PDP
sponsor as a result of the failure of the
pharmacy benefit manager or affiliate to meet
the requirements of paragraph (1) that are
applicable to the pharmacy benefit manager or
affiliate under the agreement; and
``(iii) require, in a written agreement
with any such pharmacy benefit manager acting
on behalf of such sponsor or affiliate of such
pharmacy benefit manager, that such pharmacy
benefit manager or affiliate be subject to
punitive remedies for breach of contract for
failure to comply with the requirements
applicable under paragraph (1).
``(B) Reporting of alleged violations.--The
Secretary shall make available and maintain a mechanism
for manufacturers, PDP sponsors, pharmacies, and other
entities that have contractual relationships with
pharmacy benefit managers or affiliates of such
pharmacy benefit managers to report, on a confidential
basis, alleged violations of paragraph (1)(A) or
subparagraph (C).
``(C) Anti-retaliation and anti-coercion.--
Consistent with applicable Federal or State law, a PDP
sponsor shall not--
``(i) retaliate against an individual or
entity for reporting an alleged violation under
subparagraph (B); or
``(ii) coerce, intimidate, threaten, or
interfere with the ability of an individual or
entity to report any such alleged violations.
``(3) Certification of compliance.--
``(A) In general.--Each PDP sponsor shall furnish
to the Secretary (at a time and in a manner specified
by the Secretary) an annual certification of compliance
with this subsection, as well as such information as
the Secretary determines necessary to carry out this
subsection.
``(B) Implementation.--Notwithstanding any other
provision of law, the Secretary may implement this
paragraph by program instruction or otherwise.
``(4) Rule of construction.--Nothing in this subsection
shall be construed as--
``(A) prohibiting flat dispensing fees or
reimbursement or payment for ingredient costs
(including customary, industry-standard discounts
directly related to drug acquisition that are retained
by pharmacies or wholesalers) to entities that acquire
or dispense prescription drugs; or
``(B) modifying regulatory requirements or sub-
regulatory program instruction or guidance related to
pharmacy payment, reimbursement, or dispensing fees.
``(5) Standard formats.--
``(A) In general.--Not later than June 1, 2027, the
Secretary shall specify standard, machine-readable
formats for pharmacy benefit managers to submit annual
reports required under paragraph (1)(C)(i).
``(B) Implementation.--Notwithstanding any other
provision of law, the Secretary may implement this
paragraph by program instruction or otherwise.
``(6) Confidentiality.--
``(A) In general.--Information disclosed by a
pharmacy benefit manager, an affiliate of a pharmacy
benefit manager, a PDP sponsor, or a pharmacy under
this subsection that is not otherwise publicly
available or available for purchase shall not be
disclosed by the Secretary or a PDP sponsor receiving
the information, except that the Secretary may disclose
the information for the following purposes:
``(i) As the Secretary determines necessary
to carry out this part.
``(ii) To permit the Comptroller General to
review the information provided.
``(iii) To permit the Director of the
Congressional Budget Office to review the
information provided.
``(iv) To permit the Executive Director of
the Medicare Payment Advisory Commission to
review the information provided.
``(v) To the Attorney General for the
purposes of conducting oversight and
enforcement under this title.
``(vi) To the Inspector General of the
Department of Health and Human Services in
accordance with its authorities under the
Inspector General Act of 1978 (section 406 of
title 5, United States Code), and other
applicable statutes.
``(B) Restriction on use of information.--The
Secretary, the Comptroller General, the Director of the
Congressional Budget Office, and the Executive Director
of the Medicare Payment Advisory Commission shall not
report on or disclose information disclosed pursuant to
subparagraph (A) to the public in a manner that would
identify--
``(i) a specific pharmacy benefit manager,
affiliate, pharmacy, manufacturer, wholesaler,
PDP sponsor, or plan; or
``(ii) contract prices, rebates, discounts,
or other remuneration for specific drugs in a
manner that may allow the identification of
specific contracting parties or of such
specific drugs.
``(7) Definitions.--For purposes of this subsection:
``(A) Affiliate.--The term `affiliate' means, with
respect to any pharmacy benefit manager or PDP sponsor,
any entity that, directly or indirectly--
``(i) owns or is owned by, controls or is
controlled by, or is otherwise related in any
ownership structure to such pharmacy benefit
manager or PDP sponsor; or
``(ii) acts as a contractor, principal, or
agent to such pharmacy benefit manager or PDP
sponsor, insofar as such contractor, principal,
or agent performs any of the functions
described under subparagraph (C).
``(B) Bona fide service fee.--The term `bona fide
service fee' means a fee that is reflective of the fair
market value (as specified by the Secretary, through
notice and comment rulemaking) for a bona fide,
itemized service actually performed on behalf of an
entity, that the entity would otherwise perform (or
contract for) in the absence of the service arrangement
and that is not passed on in whole or in part to a
client or customer, whether or not the entity takes
title to the drug. Such fee must be a flat dollar
amount and shall not be directly or indirectly based
on, or contingent upon--
``(i) drug price, such as wholesale
acquisition cost or drug benchmark price (such
as average wholesale price);
``(ii) the amount of discounts, rebates,
fees, or other direct or indirect remuneration
with respect to covered part D drugs dispensed
to enrollees in a prescription drug plan,
except as permitted pursuant to paragraph
(1)(A)(ii);
``(iii) coverage or formulary placement
decisions or the volume or value of any
referrals or business generated between the
parties to the arrangement; or
``(iv) any other amounts or methodologies
prohibited by the Secretary.
``(C) Pharmacy benefit manager.--The term `pharmacy
benefit manager' means any person or entity that,
either directly or through an intermediary, acts as a
price negotiator or group purchaser on behalf of a PDP
sponsor or prescription drug plan, or manages the
prescription drug benefits provided by such sponsor or
plan, including the processing and payment of claims
for prescription drugs, the performance of drug
utilization review, the processing of drug prior
authorization requests, the adjudication of appeals or
grievances related to the prescription drug benefit,
contracting with network pharmacies, controlling the
cost of covered part D drugs, or the provision of
related services. Such term includes any person or
entity that carries out one or more of the activities
described in the preceding sentence, irrespective of
whether such person or entity calls itself a `pharmacy
benefit manager'.''.
(2) MA-PD plans.--Section 1857(f)(3) of the Social Security
Act (42 U.S.C. 1395w-27(f)(3)) is amended by adding at the end
the following new subparagraph:
``(F) Requirements relating to pharmacy benefit
managers.--For plan years beginning on or after January
1, 2028, section 1860D-12(h).''.
(3) Nonapplication of paperwork reduction act.--Chapter 35
of title 44, United States Code, shall not apply to the
implementation of this subsection.
(4) Funding.--
(A) Secretary.--In addition to amounts otherwise
available, there is appropriated to the Centers for
Medicare & Medicaid Services Program Management
Account, out of any money in the Treasury not otherwise
appropriated, $113,000,000 for fiscal year 2025, to
remain available until expended, to carry out this
subsection.
(B) OIG.--In addition to amounts otherwise
available, there is appropriated to the Inspector
General of the Department of Health and Human Services,
out of any money in the Treasury not otherwise
appropriated, $20,000,000 for fiscal year 2025, to
remain available until expended, to carry out this
subsection.
(b) GAO Study and Report on Price-Related Compensation Across the
Supply Chain.--
(1) Study.--The Comptroller General of the United States
(in this subsection referred to as the ``Comptroller General'')
shall conduct a study describing the use of compensation and
payment structures related to a prescription drug's price
within the retail prescription drug supply chain in part D of
title XVIII of the Social Security Act (42 U.S.C. 1395w-101 et
seq.). Such study shall summarize information from Federal
agencies and industry experts, to the extent available, with
respect to the following:
(A) The type, magnitude, other features (such as
the pricing benchmarks used), and prevalence of
compensation and payment structures related to a
prescription drug's price, such as calculating fee
amounts as a percentage of a prescription drug's price,
between intermediaries in the prescription drug supply
chain, including--
(i) pharmacy benefit managers;
(ii) PDP sponsors offering prescription
drug plans and Medicare Advantage organizations
offering MA-PD plans;
(iii) drug wholesalers;
(iv) pharmacies;
(v) manufacturers;
(vi) pharmacy services administrative
organizations;
(vii) brokers, auditors, consultants, and
other entities that--
(I) advise PDP sponsors offering
prescription drug plans and Medicare
Advantage organizations offering MA-PD
plans regarding pharmacy benefits; or
(II) review PDP sponsor and
Medicare Advantage organization
contracts with pharmacy benefit
managers; and
(viii) other service providers that
contract with any of the entities described in
clauses (i) through (vii) that may use price-
related compensation and payment structures,
such as rebate aggregators (or other entities
that negotiate or process price concessions on
behalf of pharmacy benefit managers, plan
sponsors, or pharmacies).
(B) The primary business models and compensation
structures for each category of intermediary described
in subparagraph (A).
(C) Variation in price-related compensation
structures between affiliated entities (such as
entities with common ownership, either full or partial,
and subsidiary relationships) and unaffiliated
entities.
(D) Potential conflicts of interest among
contracting entities related to the use of prescription
drug price-related compensation structures, such as the
potential for fees or other payments set as a
percentage of a prescription drug's price to advantage
formulary selection, distribution, or purchasing of
prescription drugs with higher prices.
(E) Notable differences, if any, in the use and
level of price-based compensation structures over time
and between different market segments, such as under
part D of title XVIII of the Social Security Act (42
U.S.C. 1395w-101 et seq.) and the Medicaid program
under title XIX of such Act (42 U.S.C. 1396 et seq.).
(F) The effects of drug price-related compensation
structures and alternative compensation structures on
Federal health care programs and program beneficiaries,
including with respect to cost-sharing, premiums,
Federal outlays, biosimilar and generic drug adoption
and utilization, drug shortage risks, and the potential
for fees set as a percentage of a drug's price to
advantage the formulary selection, distribution, or
purchasing of drugs with higher prices.
(G) Other issues determined to be relevant and
appropriate by the Comptroller General.
(2) Report.--Not later than 2 years after the date of
enactment of this section, the Comptroller General shall submit
to Congress a report containing the results of the study
conducted under paragraph (1), together with recommendations
for such legislation and administrative action as the
Comptroller General determines appropriate.
(c) MedPAC Reports on Agreements With Pharmacy Benefit Managers
With Respect to Prescription Drug Plans and MA-PD Plans.--
(1) In general.--The Medicare Payment Advisory Commission
shall submit to Congress the following reports:
(A) Initial report.--Not later than the first March
15 occurring after the date that is 2 years after the
date on which the Secretary makes the data available to
the Commission, a report regarding agreements with
pharmacy benefit managers with respect to prescription
drug plans and MA-PD plans. Such report shall include,
to the extent practicable--
(i) a description of trends and patterns,
including relevant averages, totals, and other
figures for the types of information submitted;
(ii) an analysis of any differences in
agreements and their effects on plan enrollee
out-of-pocket spending and average pharmacy
reimbursement, and other impacts; and
(iii) any recommendations the Commission
determines appropriate.
(B) Final report.--Not later than 2 years after the
date on which the Commission submits the initial report
under subparagraph (A), a report describing any changes
with respect to the information described in
subparagraph (A) over time, together with any
recommendations the Commission determines appropriate.
(2) Funding.--In addition to amounts otherwise available,
there is appropriated to the Medicare Payment Advisory
Commission, out of any money in the Treasury not otherwise
appropriated, $1,000,000 for fiscal year 2026, to remain
available until expended, to carry out this subsection.
TITLE V--COMMITTEE ON FINANCIAL SERVICES
SEC. 50001. GREEN AND RESILIENT RETROFIT PROGRAM FOR MULTIFAMILY FAMILY
HOUSING.
The unobligated balance of amounts made available under section
30002(a) of Public Law 117-169 (commonly referred to as the ``Inflation
Reduction Act''; 136 Stat. 2027) are rescinded.
SEC. 50002. PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD.
(a) During the period beginning on the date of enactment of this
Act and ending on the transfer date--
(1) all intellectual property retained by the Public
Company Accounting Oversight Board (``Board'') in support of
its programs for registration, standard-setting, and inspection
shall be shared with the Securities and Exchange Commission
(``Commission''); and
(2) pending enforcement and disciplinary actions of the
Board shall be referred to the Commission or other regulators
in accordance with section 105 of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7215).
(b) Effective on the transfer date--
(1) all unobligated fees collected under section 109(d) of
the Sarbanes-Oxley Act of 2002 shall be transferred to the
general fund of the Treasury, and the Commission may not
collect fees under such section 109(d);
(2) the duties and powers of the Board in effect as of the
day before the transfer date, other than those described in
section 107 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7217),
shall be transferred to the Commission;
(3) the Commission may not use funds to carry out section
107 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7217) for
activities related to overseeing the Board;
(4) the Board shall transfer all intellectual property
described in subsection (a)(1) to the Commission;
(5) existing processes and regulations of the Board,
including existing Board auditing standards, shall continue in
effect unless modified through rule making by the Commission;
and
(6) any reference to the Board in any law, regulation,
document, record, map, or other paper of the United States
shall be deemed a reference to the Commission.
(c) Any employee of the Board as of the date of enactment of this
Act may--
(1) be offered equivalent positions on the Commission
staff, as determined by the Commission, and submit to the
Commission's standard employment policies; and
(2) receive pay that is not higher than the highest paid
employee of similarly situated employees of the Commission.
(d) In this section, the term ``transfer date'' means the date
established by the Commission for purposes of this section, except that
such date may not be later than the date that is 1 year after the date
of enactment of this Act.
SEC. 50003. BUREAU OF CONSUMER FINANCIAL PROTECTION.
Section 1017(a)(2) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5497(a)(2)) is amended--
(1) in subparagraph (A)(iii)--
(A) by striking ``12 percent'' and inserting ``5
percent''; and
(B) by striking ``2013'' and inserting ``2025'';
and
(2) by striking subparagraph (C) and inserting the
following:
``(C) Limitation on unobligated balances.--With
respect to a fiscal year, the amount of unobligated
balances of the Bureau may not exceed 5 percent of the
dollar amount referred to in subparagraph (A)(iii), as
adjusted under subparagraph (B). The Director shall
transfer any excess amount of such unobligated balances
to the general fund of the Treasury.''.
SEC. 50004. CONSUMER FINANCIAL CIVIL PENALTY FUND.
Section 1017(d) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5497(d)) is amended--
(1) in paragraph (2)--
(A) in the first sentence, by inserting ``direct''
before ``victims''; and
(B) by striking the second sentence; and
(2) by adding at the end the following:
``(3) Treatment of excess amounts.--With respect to a civil
penalty described under paragraph (1), if the Bureau makes
payments to all of the direct victims of activities for which
that civil penalty was imposed, the Bureau shall transfer all
amounts that remain in the Civil Penalty Fund with respect to
that civil penalty to the general fund of the Treasury.''.
SEC. 50005. FINANCIAL RESEARCH FUND.
Section 155 of the Financial Stability Act of 2010 (12 U.S.C. 5345)
is amended by adding at the end the following:
``(e) Limitation on Assessments and the Financial Research Fund.--
``(1) Limitation on assessments.--Assessments may not be
collected under subsection (d) if the assessments would result
in--
``(A) the Financial Research Fund exceeding the
average annual budget amount; or
``(B) the total assessments collected during a
single fiscal year exceeding the average annual budget
amount.
``(2) Transfer of excess funds.--Any amounts in the
Financial Research Fund exceeding the average annual budget
amount shall be deposited into the general fund of the
Treasury.
``(3) Average annual budget amount defined.--In this
subsection the term `average annual budget amount' means the
annual average, over the 3 most recently completed fiscal
years, of the expenses of the Council in carrying out the
duties and responsibilities of the Council that were paid by
the Office using amounts obtained through assessments under
subsection (d).''.
TITLE VI--COMMITTEE ON HOMELAND SECURITY
SEC. 60001. BORDER BARRIER SYSTEM CONSTRUCTION, INVASIVE SPECIES, AND
BORDER SECURITY FACILITIES IMPROVEMENTS.
In addition to amounts otherwise available, there is appropriated
to the Commissioner of U.S. Customs and Border Protection for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2029, the following:
(1) $46,500,000,000 for necessary expenses relating to the
following:
(A) Construction, installation, or improvement of
primary, waterborne, and secondary barriers.
(B) Access roads.
(C) Barrier system attributes, including cameras,
lights, sensors, roads, and other detection technology.
(2) $50,000,000 for necessary expenses relating to
eradication and removal of the carrizo cane plant, salt cedar,
or any other invasive plant species that impedes border
security operations along the Rio Grande River.
(3) $5,000,000,000 for necessary expenses relating to
lease, acquisition, construction, or improvement of U.S.
Customs and Border Protection facilities and checkpoints in the
vicinity of the southwest, northern, and maritime borders.
SEC. 60002. U.S. CUSTOMS AND BORDER PROTECTION PERSONNEL AND FLEET
VEHICLES.
(a) CBP Personnel.--In addition to amounts otherwise available,
there is appropriated to the Commissioner of U.S. Customs and Border
Protection for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $4,100,000,000, to remain available until
September 30, 2029, to hire and train additional Border Patrol agents,
Office of Field Operations Officers, Air and Marine agents, rehired
annuitants, and U.S. Customs and Border Protection support personnel.
(b) Restrictions.--None of the funds made available by subsection
(a) may be used to recruit, hire, or train personnel for the duties of
processing coordinators.
(c) CBP Retention and Hiring Bonuses.--In addition to amounts
otherwise available, there is appropriated to the Commissioner of U.S.
Customs and Border Protection for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, $2,052,630,000, to remain
available until September 30, 2029, to provide annual retention bonuses
or signing bonuses to eligible Border Patrol agents, Office of Field
Operations Officers, and Air and Marine agents.
(d) CBP Vehicles.--In addition to amounts otherwise available,
there is appropriated to the Commissioner of U.S. Customs and Border
Protection for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $813,000,000, to remain available until
September 30, 2029, for the lease or acquisition of additional marked
patrol units.
(e) FLETC.--In addition to amounts otherwise available, there is
appropriated to the Director of the Federal Law Enforcement Training
Center for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated--
(1) $285,000,000, to remain available until September 30,
2029, to support the training of newly hired Federal law
enforcement personnel employed by the Department of Homeland
Security; and
(2) $465,000,000, to remain available until September 30,
2029, for procurement and construction, improvements, and
related expenses of the Federal Law Enforcement Training
Centers facilities.
(f) Border Security Workforce Recruitment and Applicant Sourcing.--
In addition to amounts otherwise available, there is appropriated to
the Commissioner of U.S. Customs and Border Protection for fiscal year
2025, out of any money in the Treasury not otherwise appropriated,
$600,000,000, to remain available until September 30, 2029, for
marketing, recruiting, applicant sourcing and vetting, and operational
mobility programs for border security personnel.
SEC. 60003. U.S. CUSTOMS AND BORDER PROTECTION TECHNOLOGY, NATIONAL
VETTING CENTER, AND OTHER EFFORTS TO ENHANCE BORDER
SECURITY.
(a) CBP Technology.--In addition to amounts otherwise available,
there is appropriated to the Commissioner of U.S. Customs and Border
Protection for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, to remain available until September 30, 2029,
the following:
(1) $1,076,317,000 for necessary expenses relating to
procurement and integration of new non-intrusive inspection
equipment and associated civil works, artificial intelligence,
integration, and machine learning, as well as other mission
support, to combat the entry of illicit narcotics along the
southwest, northern, and maritime borders.
(2) $2,766,000,000 for necessary expenses relating to
upgrades and procurement of border surveillance technologies
along the southwest, northern, and maritime borders.
(3) $673,000,000 for necessary expenses, including the
deployment of technology, relating to the biometric entry and
exit system under section 7208 of the Intelligence Reform and
Terrorism Prevention Act of 2004 (8 U.S.C. 1365b).
(b) Restrictions.--None of the funds made available pursuant to
subsection (a)(2) may be used for the procurement or deployment of
surveillance towers that have not been--
(1) tested, and
(2) accepted,
by the Federal Government to deliver autonomous capabilities.
(c) Air and Marine Operations.--In addition to amounts otherwise
available, there is appropriated to the Commissioner of U.S. Customs
and Border Protection for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, $1,234,000,000, to remain
available until September 30, 2029, for Air and Marine Operations'
upgrading and procurement of new platforms for rapid air and marine
response capabilities.
(d) National Vetting Center.--In addition to amounts otherwise
available, there is appropriated to the Commissioner of U.S. Customs
and Border Protection for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, $16,000,000, to remain available
until September 30, 2029, for necessary expenses relating to U.S.
Customs and Border Protection's National Vetting Center to support
screening, vetting activities, and expansion of the criminal history
database of foreign nationals.
(e) Other Efforts to Combat Drug Trafficking to Enhance Border
Security.--In addition to amounts otherwise available, there is
appropriated to the Secretary of Homeland Security for fiscal year
2025, out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until September 30, 2029, for
enhancing border security and combatting trafficking, including
fentanyl and its precursor chemicals, at the southwest, northern, and
maritime borders.
(f) Commemorations.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Homeland Security for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$1,000,000, to remain available until September 30, 2029, for
commemorating efforts and events related to border security.
(g) Definition.--In this section, the term ``autonomous'' means
integrated software and hardware systems that utilize sensors, onboard
computing, and artificial intelligence to identify items of interest
that would otherwise be manually identified by U.S. Customs and Border
Protection personnel.
SEC. 60004. STATE AND LOCAL LAW ENFORCEMENT PRESIDENTIAL RESIDENCE
PROTECTION.
(a) Presidential Residence Protection.--In addition to amounts
otherwise available, there is appropriated to the Administrator of the
Federal Emergency Management Agency, for fiscal year 2025, out of any
money in the Treasury not otherwise appropriated, $300,000,000, to
remain available until September 30, 2029, for the reimbursement of
extraordinary law enforcement personnel costs for protection activities
directly and demonstrably associated with any residence of the
President that is designated pursuant to section 3 of the Presidential
Protection Assistance Act of 1976 (Public Law 94-524) to be secured by
the United States Secret Service.
(b) Availability.--Funds under subsection (a) shall be available
only for costs that a State or local agency--
(1) incurred or incurs on or after July 1, 2024;
(2) can demonstrate to the Administrator of the Federal
Emergency Management Agency as being--
(A) in excess of the costs of normal and typical
law enforcement operations;
(B) directly attributable to the provision of
protection described in such subsection; and
(C) associated with a non-governmental property
designated pursuant to section 3 of the Presidential
Protection Assistance Act of 1976 (Public Law 94-524)
to be secured by the United States Secret Service; and
(3) certifies to the Administrator as being for protection
activities requested by the Director of the United States
Secret Service.
SEC. 60005. STATE HOMELAND SECURITY GRANT PROGRAM.
In addition to amounts otherwise available, there is appropriated
to the Administrator of the Federal Emergency Management Agency, for
fiscal year 2025, out of any money in the Treasury, not otherwise
appropriated, to be administered under the State Homeland Security
Grant Program authorized under section 2004 of the Homeland Security
Act of 2002 (6 U.S.C. 605), to enhance State, local, and Tribal
security through grants, contracts, cooperative agreements, and other
activities, of which--
(1) $500,000,000, to remain available until September 30,
2029, for State and local capabilities to detect, identify,
track, or monitor threats from unmanned aircraft systems (as
such term is defined in section 44801 of title 49, United
States Code);
(2) $625,000,000, to remain available until September 30,
2029, for security, planning, and other costs related to the
2026 FIFA World Cup;
(3) $1,000,000,000, to remain available until September 30,
2029, for security, planning, and other costs related to the
2028 Olympics; and
(4) $450,000,000, to remain available until September 30,
2029, for the Operation Stonegarden Grant Program.
TITLE VII--COMMITTEE ON THE JUDICIARY
Subtitle A--Immigration Matters
PART 1--IMMIGRATION FEES
SEC. 70001. APPLICABILITY OF THE IMMIGRATION LAWS.
(a) Applicability.--Notwithstanding any provision of the
immigration laws (as defined under section 101 of the Immigration and
Nationality Act), the fees under this subtitle shall apply.
(b) Terms.--The terms used under this subtitle shall have the
meanings given such terms in section 101 of the Immigration and
Nationality Act.
(c) References to Immigration and Nationality Act.--Except as
otherwise expressly provided, whenever this subtitle references a
section or other provision, the reference shall be considered to be to
a section or other provision of the Immigration and Nationality Act.
SEC. 70002. ASYLUM FEE.
(a) In General.--In addition to any other fee authorized by law,
the Secretary of Homeland Security or the Attorney General, as
applicable, shall impose a fee in the amount specified in this section
for a fiscal year on each alien who files an application for asylum
under section 208 of the Immigration and Nationality Act at the time
such application is filed.
(b) Initial Amount.--The amount specified in this section for
fiscal year 2025 shall be such amount as the Secretary or Attorney
General, as applicable, may by rule provide, but in any event not less
than $1,000.
(c) Subsequent Adjustment.--Beginning in fiscal year 2026 and each
fiscal year thereafter, the amount specified in this section for a
fiscal year shall be equal to the sum of--
(1) the amount imposed under this section for the prior
fiscal year; and
(2) rounded to the next lowest multiple of $10, the amount
referred to in paragraph (1), multiplied by the percentage (if
any) by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price Index for
All Urban Consumers for the same month of the preceding
calendar year.
(d) Crediting Certain Funds.--During any fiscal year, the total
amount of fees received under this section shall be credited as
follows:
(1) 50 percent of fees received from applications filed
with the Attorney General shall be credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation.
(2) 50 percent of fees received from applications filed
with the Secretary of Homeland Security shall be credited to
U.S. Citizenship and Immigration Services and deposited into
the Immigration Examinations Fee Account established under
section 286(m) of the Immigration and Nationality Act (8 U.S.C.
1356(m)) to retain and spend without further appropriation.
(3) Any amounts not credited to the Executive Office for
Immigration Review or U.S. Citizenship and Immigration Services
shall be credited as offsetting receipts and deposited into the
general fund of the Treasury.
(e) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70003. EMPLOYMENT AUTHORIZATION DOCUMENT FEES.
(a) Asylum Applicants.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of Homeland Security shall impose on any
alien who files an initial application for employment
authorization under section 208(d)(2) of the Immigration and
Nationality Act a fee in the amount specified in this
subsection at the time such initial employment authorization
application is filed. Each initial employment authorization
shall be valid for a period of not more than six months.
(2) Initial amount.-- For purposes of this subsection, the
amount specified in this subsection for fiscal year 2025 shall
be such amount as the Secretary may by rule provide, but in any
event not less than $550.
(3) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount for a fiscal year
shall be equal to the sum of--
(A) the amount imposed under this section for the
prior fiscal year; and
(B) rounded to the next lowest multiple of $10, the
amount referred to in subparagraph (A), multiplied by
the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
(4) Crediting of funds.--25 percent of fees received under
this section shall be credited to U.S. Citizenship and
Immigration Services and deposited into the Immigration
Examinations Fee Account established under section 286(m) of
the Immigration and Nationality Act (8 U.S.C. 1356(m)) to
retain and spend without further appropriation, of which 50
percent shall be used by U.S. Citizenship and Immigration
Services to detect and prevent immigration benefit fraud. Any
amounts not credited to U.S. Citizenship and Immigration
Services under this section shall be credited as offsetting
receipts and deposited into the general fund of the Treasury.
(5) No waiver.--A fee imposed under this subsection shall
not be waived or reduced.
(b) Parole.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of Homeland Security shall impose on any
alien paroled into the United States a fee for any initial
application for employment authorization in an amount specified
in this subsection at the time such initial application is
filed. Each initial employment authorization shall be valid for
a period of not more than six months.
(2) Initial amount.--For purposes of this subsection, the
amount specified in this subsection for fiscal year 2025 shall
be such amount as the Secretary may by rule provide, but in any
event not less than $550.
(3) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this subsection for
the prior fiscal year; and
(B) rounded to the next lowest multiple of $10, the
amount referred to in subparagraph (A), multiplied by
the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
(4) Crediting of funds.--The fees received under this
section shall be credited as offsetting receipts and deposited
into the general fund of the Treasury.
(5) No waiver.--A fee imposed under this subsection shall
not be waived or reduced.
(c) Temporary Protected Status.--
(1) In general.--In addition to any other fee authorized by
law, for any alien who files an initial application for
employment authorization under section 244(a)(1)(B) of the
Immigration and Nationality Act, the Secretary of Homeland
Security shall impose a fee in an amount specified in this
subsection at the time such initial application is filed. Each
initial employment authorization shall be valid for a period of
not more than six months.
(2) Initial amount.--For purposes of this subsection, the
amount specified in this subsection for fiscal year 2025 shall
be such amount as the Secretary may by rule provide, but in any
event not less than $550.
(3) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this subsection for
the prior fiscal year; and
(B) rounded to the next lowest multiple of $10, the
amount referred to in subparagraph (A), multiplied by
the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
(4) Crediting of certain funds.--The fees received under
this section shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(5) No waiver.--A fee imposed under this subsection shall
not be waived or reduced.
SEC. 70004. PAROLE FEE.
(a) In General.--In addition to any other fee authorized by law,
the Secretary of Homeland Security shall impose a fee in an amount
specified in this section on each alien who is paroled into the United
States, except if, as established by the alien, the alien is paroled
because--
(1) the alien has a medical emergency, and--
(A) the alien cannot obtain necessary treatment in
the foreign state in which the alien is residing; or
(B) the medical emergency is life-threatening and
there is insufficient time for the alien to be admitted
to the United States through the normal visa process;
(2) the alien is the parent or legal guardian of an alien
described in paragraph (1) and the alien described in paragraph
(1) is a minor;
(3) the alien is needed in the United States to donate an
organ or other tissue for transplant and there is insufficient
time for the alien to be admitted to the United States through
the normal visa process;
(4) the alien has a close family member in the United
States whose death is imminent and the alien could not arrive
in the United States in time to see such family member alive if
the alien were to be admitted to the United States through the
normal visa process;
(5) the alien is seeking to attend the funeral of a close
family member and the alien could not arrive in the United
States in time to attend such funeral if the alien were to be
admitted to the United States through the normal visa process;
(6) the alien is an adopted child with an urgent medical
condition who is in the legal custody of the petitioner for a
final adoption-related visa and whose medical treatment is
required before the expected award of a final adoption-related
visa;
(7) the alien is a lawful applicant for adjustment of
status under section 245 of the Immigration and Nationality Act
and is returning to the United States after temporary travel
abroad;
(8) the alien is returned to a contiguous country under
section 235(b)(2)(C) of the Immigration and Nationality Act and
paroled into the United States to allow the alien to attend the
alien's immigration hearing;
(9) the alien--
(A) is a national of the Republic of Cuba and is
living in the Republic of Cuba;
(B) is the beneficiary of an approved petition
under section 203(a) of the Immigration and Nationality
Act;
(C) is an alien for whom an immigrant visa is not
immediately available;
(D) meets all eligibility requirements for an
immigrant visa;
(E) is not otherwise inadmissible; and
(F) is receiving a grant of parole in furtherance
of the commitment of the United States to the minimum
level of annual legal migration of Cuban nationals to
the United States specified in the U.S.-Cuba Joint
Communique on Migration, done at New York September 9,
1994, and reaffirmed in the Cuba-United States: Joint
Statement on Normalization of Migration, Building on
the Agreement of September 9, 1994, done at New York
May 2, 1995; or
(10) the Secretary of Homeland Security determines that a
significant public benefit has resulted or will result from the
parole of an alien only if--
(A) the alien has assisted or will assist the
United States Government in a law enforcement matter;
(B) the alien's presence is required by the
Government in furtherance of such law enforcement
matter; and
(C) the alien is inadmissible, does not satisfy the
eligibility requirements for admission as a
nonimmigrant, or there is insufficient time for the
alien to be admitted to the United States through the
normal visa process.
(b) Initial Amount.--For purposes of this section, the amount
specified in this subsection for fiscal year 2025 shall be such amount
as the Secretary may by rule provide, but in any event not less than
$1,000.
(c) Subsequent Adjustment.--Beginning in fiscal year 2026 and each
fiscal year thereafter, the amount specified in this section for a
fiscal year shall be equal to the sum of--
(1) the amount imposed under this section for the prior
fiscal year; and
(2) rounded to the next lowest multiple of $10, the amount
referred to in paragraph (1), multiplied by the percentage (if
any) by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price Index for
All Urban Consumers for the same month of the preceding
calendar year.
(d) Crediting of Funds.--Fees received under this section shall be
credited as offsetting receipts and deposited in the general fund of
the Treasury.
(e) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70005. SPECIAL IMMIGRANT JUVENILE FEE.
(a) In General.--In addition to any other fee authorized by law,
the Secretary of Homeland Security shall impose a fee in an amount
specified in this section on any alien applying for special immigrant
juvenile status under section 101(a)(27)(J) of the Immigration and
Nationality Act if reunification with 1 parent or legal guardian is
viable, notwithstanding abuse, neglect, abandonment, or a similar basis
found under State law making reunification with the other parent or
legal guardian not viable.
(b) Initial Amount.--For purposes of this subsection, the amount
specified in this section for fiscal year 2025 shall be such amount as
the Secretary may by rule provide, but in any event not less than $500.
(c) Subsequent Adjustment.--Beginning in fiscal year 2026 and each
fiscal year thereafter, the amount specified in this section for a
fiscal year shall be equal to the sum of--
(1) the amount imposed under this section for the prior
fiscal year; and
(2) rounded to the next lowest multiple of $10, the amount
referred to in paragraph (1), multiplied by the percentage (if
any) by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price Index for
All Urban Consumers for the same month of the preceding
calendar year.
(d) Crediting of Funds.--Fees received under this section shall be
credited as offsetting receipts and deposited in the general fund of
the Treasury.
(e) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70006. TEMPORARY PROTECTED STATUS FEE.
(a) In General.--In addition to any other fee authorized by law,
the Secretary of Homeland Security shall impose a fee in an amount
specified in this section for the consideration of an application for
temporary protected status under section 244 of the Immigration and
Nationality Act on any alien who--
(1) has not been admitted into the United States; or
(2) has been admitted to the United States as a
nonimmigrant but at the time of application for temporary
protected status has failed--
(A) to maintain or extend the nonimmigrant status
in which the alien was admitted or to which the status
was changed under section 248 of the Immigration and
Nationality Act, including complying with the period of
stay authorized by the Secretary of Homeland Security
in connection with such status; or
(B) to comply with the conditions of such
nonimmigrant status.
(b) Initial Amount.--For purposes of this subsection, the amount
specified in this section for fiscal year 2025 shall be such amount as
the Secretary may by rule provide, but in any event not less than $500.
(c) Subsequent Adjustment.--Beginning in fiscal year 2026 and each
fiscal year thereafter, the amount specified in this section for a
fiscal year shall be equal to the sum of--
(1) the amount imposed under this section for the prior
fiscal year; and
(2) rounded to the next lowest multiple of $10, the amount
referred to in paragraph (1), multiplied by the percentage (if
any) by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price Index for
All Urban Consumers for the same month of the preceding
calendar year.
(d) Crediting of Funds.--Fees received under this section shall be
credited as offsetting receipts and deposited in the general fund of
the Treasury.
(e) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70007. UNACCOMPANIED ALIEN CHILD SPONSOR FEE.
(a) In General.--In addition to any other fee authorized by law,
before placing the child with an individual under section 235(c) of the
William Wilberforce Trafficking Victims Protection Reauthorization Act
of 2008, the Secretary of Health and Human Services shall collect from
that individual a fee in an amount specified in this section as partial
reimbursement to the Federal Government for the period during which the
child was in the custody of the Government, for processing, housing,
feeding, educating, transporting, and otherwise providing for the care
of the child.
(b) Initial Amount.--For purposes of this subsection, the amount
specified in this section for fiscal year 2025 shall be such amount as
the Secretary may by rule provide, but in any event not less than
$3,500.
(c) Subsequent Adjustment.--Beginning in fiscal year 2026 and each
fiscal year thereafter, the amount specified in this section for a
fiscal year shall be equal to the sum of--
(1) the amount imposed under this section for the prior
fiscal year; and
(2) rounded to the next lowest multiple of $10, the amount
referred to in paragraph (1), multiplied by the percentage (if
any) by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price Index for
All Urban Consumers for the same month of the preceding
calendar year.
(d) Crediting of Funds.--During any fiscal year, the total amount
of fees received under this section shall be credited as follows:
(1) 25 percent of fees received under this section shall be
credited to the Department of Health and Human Services to
retain and spend without further appropriation and shall be
used for the purpose of conducting background checks of
potential sponsors of unaccompanied alien children and of
adults residing in potential sponsors' households, which shall
include, at a minimum--
(A) the name of the individual and all adult
residents of the individual's household;
(B) the social security number of the individual
and all adult residents of the individual's household;
(C) the date of birth of the individual and all
adult residents of the individual's household;
(D) the validated location of the individual's
residence where the child will be placed;
(E) the immigration status of the individual and
all adult residents of the individual's household;
(F) contact information for the individual and all
adult residents of the individual's household; and
(G) the results of all background and criminal
records checks for the individual and all adult
residents of the individual's household, which shall
include at a minimum an investigation of the public
records sex offender registry, a public records
background check, and a national criminal history check
based on fingerprints.
(2) Any amounts not credited to the Department of Health
and Human Services shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(e) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70008. VISA INTEGRITY FEE.
(a) Visa Integrity Fee.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of State shall impose a fee in an amount
specified in this subsection on each alien issued a
nonimmigrant visa by the State Department upon the issuance of
such alien's nonimmigrant visa.
(2) Initial amount.--For purposes of this subsection, the
amount specified in this subsection for fiscal year 2025 shall
be such amount as the Secretary may by rule provide, but in any
event not less than $250.
(3) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this section for the
prior fiscal year; and
(B) rounded to the next lowest multiple of $1, the
amount referred to in subparagraph (A), multiplied by
the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
(4) Crediting of funds.--The fees received under this
subsection that are not reimbursed in accordance with
subsection (b) shall be credited as offsetting receipts and
deposited in the general fund of the Treasury.
(5) No waiver.--A fee imposed under this subsection shall
not be waived or reduced.
(b) Fee Reimbursement.--The Secretary of State may reimburse to an
alien a fee imposed under this section on that alien for the issuance
of a nonimmigrant visa after the expiration of such nonimmigrant visa's
period of validity if the alien demonstrates that--
(1) the alien has not sought admission during such period
of validity;
(2) the alien, after admission to the United States
pursuant to such nonimmigrant visa, complied with all
conditions of such nonimmigrant visa, including the condition
that an alien shall not accept unauthorized employment, and
that the alien departed the United States not later than 5 days
after the date on which the alien was authorized to remain in
the United States; or
(3) the alien filed to extend, change, or adjust such
status within the nonimmigrant visa's period of validity.
SEC. 70009. FORM I-94 FEE.
(a) Fee Authorized.--In addition to any other fee authorized by
law, the Secretary of Homeland Security shall impose a fee in an amount
specified in subsection (b) on any alien upon the alien's application
for a Form I-94 Arrival/Departure Record.
(b) Fee Specified.--
(1) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as the
Secretary may by rule provide, but in any event not less than
$24.
(2) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this section for the
prior fiscal year; and
(B) the amount referred to in subparagraph (A),
multiplied by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for the
month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month of the
preceding calendar year.
(c) Crediting of Funds.--During any fiscal year, the total amount
of fees received under this section shall be credited as follows:
(1) 20 percent of the fee collected under this section for
each application shall be deposited pursuant to section
286(q)(2) of the Immigration and Nationality Act (8 U.S.C.
1356(q)(2)) and made available to U.S. Customs and Border
Protection to retain and spend without further appropriation
for the purpose of processing Form I-94.
(2) Any amounts not credited to U.S. Customs and Border
Protection shall be credited as offsetting receipts and
deposited in the general fund of the Treasury.
(d) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70010. YEARLY ASYLUM FEE.
(a) Fee Authorized.--In addition to any other fee authorized by
law, for each calendar year that an alien's application for asylum
remains pending, the Secretary of Homeland Security or the Attorney
General, as applicable, shall impose a fee in an amount specified in
subsection (b) on that alien.
(b) Fee Specified.--
(1) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as the
Secretary and the Attorney General may by rule provide, but in
any event not less than $100.
(2) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this section for the
prior fiscal year; and
(B) the amount referred to in subparagraph (A),
multiplied by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for the
month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month of the
preceding calendar year.
(c) Crediting of Funds.--The fees received under this section shall
be credited as offsetting receipts and deposited in the general fund of
the Treasury.
(d) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70011. FEE FOR CONTINUANCES GRANTED IN IMMIGRATION COURT
PROCEEDINGS.
(a) In General.--In addition to any other fee authorized by law,
the Attorney General shall impose a fee in an amount specified in
subsection (b) on any alien who requests and is granted a continuance
by an immigration judge for each such continuance.
(b) Fee Specified.--
(1) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as the
Attorney General may by rule provide, but in any event not less
than $100.
(2) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this section for the
prior fiscal year; and
(B) the amount referred to in subparagraph (A),
multiplied by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for the
month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month of the
preceding calendar year.
(c) Crediting of Certain Funds.--Amounts received as fees under
this section shall be credited as offsetting receipts and deposited in
the general fund of the Treasury.
(d) No Waiver.--A fee imposed under this section shall not be
waived or reduced, except no fee shall be imposed on any alien whose
request for a continuance is granted based on exceptional circumstances
(as such term is defined in section 240 of the Immigration and
Nationality Act).
SEC. 70012. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT
AUTHORIZATION FOR PAROLEES.
(a) Fee Imposed.--In addition to any other fee authorized by law,
for a parolee who seeks a renewal or extension of employment
authorization based on a grant of parole, the Secretary of Homeland
Security shall impose a fee in an amount specified in subsection (b).
(b) Fee Specified.--
(1) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as the
Secretary may by rule provide, but in any event not less than
$550.
(2) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this subsection for
the prior fiscal year; and
(B) rounded to the next lowest multiple of $10, the
amount referred to in subparagraph (A), multiplied by
the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
(c) In General.--The employment authorization for any alien paroled
into the United States, or any renewal or extension thereof, shall be
valid for a period of not more than six months.
(d) Crediting of Funds.--The fees received under this section shall
be credited as offsetting receipts and deposited into the general fund
of the Treasury.
(e) No Waiver.--A fee imposed under this subsection shall not be
waived or reduced.
SEC. 70013. FEE RELATING TO TERMINATION, RENEWAL, AND EXTENSION OF
EMPLOYMENT AUTHORIZATION FOR ASYLUM APPLICANTS.
(a) Fee Imposed.--In addition to any other fee authorized by law,
for any alien who applies for asylum and who seeks a renewal or
extension of employment authorization based on such application, the
Secretary of Homeland Security shall impose a fee of not less than $550
for each such renewal or extension, in accordance with subsection (b).
(b) Employment Authorization.--The Secretary of Homeland Security
may provide employment authorization to an applicant for asylum for a
period of not more than six months. Each renewal or extension thereof
shall also be valid for a period of not more than six months.
(c) Termination.--Each initial employment authorization, or renewal
or extension of such authorization, shall terminate as follows:
(1) Immediately following the denial of an asylum
application by an asylum officer, unless the case is referred
to an immigration judge.
(2) On the date that is 30 days after the date on which an
immigration judge denies an asylum application, unless the
alien makes a timely appeal to the Board of Immigration
Appeals.
(3) Immediately following the denial by the Board of
Immigration Appeals of an appeal of a denial of an asylum
application.
(d) Prohibition.--The Secretary of Homeland Security shall not
grant, renew, or extend employment authorization to an alien if the
alien was previously granted employment authorization as an applicant
for asylum and the employment authorization was terminated pursuant to
a circumstance described in subsection (c), unless a Federal Court of
Appeals remands the alien's case to the Board of Immigration Appeals.
(e) Crediting of Funds.--The total amount of fees received under
this section shall be credited as offsetting receipts and deposited in
the general fund of the Treasury.
(f) No Waiver.--A fee imposed under this subsection shall not be
waived or reduced.
SEC. 70014. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT
AUTHORIZATION FOR ALIENS GRANTED TEMPORARY PROTECTED
STATUS.
(a) Fee Imposed.--In addition to any other fee authorized by law,
for any alien who seeks a renewal or extension of employment
authorization based on a grant of temporary protected status, the
Secretary of Homeland Security shall impose a fee in an amount
specified in subsection (b) at the time of each such renewal or
extension.
(b) Fee Specified.--
(1) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as the
Secretary may by rule provide, but in any event not less than
$550.
(2) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this subsection for
the prior fiscal year; and
(B) rounded to the next lowest multiple of $10, the
amount referred to in subparagraph (A), multiplied by
the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
(c) Employment Authorization.--Any employment authorization for an
alien granted temporary protected status, or any renewal or extension
thereof, shall be valid for a period of not more than six months.
(d) Crediting of Funds.--The fees received under this section shall
be credited as offsetting receipts and deposited into the general fund
of the Treasury.
(e) No Waiver.--A fee imposed under this subsection shall not be
waived or reduced.
SEC. 70015. DIVERSITY IMMIGRANT VISA FEES.
(a) Fee for Filing a Diversity Immigrant Visa Application.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of State shall impose on any alien who files
an application for a diversity immigrant visa as described in
section 203(c) of the Immigration and Nationality Act (8 U.S.C.
1153(c)) a fee in the amount specified in this subsection at
the time such application is filed.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Secretary may by rule provide, but in any event not
less than $400.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(b) Fee for Aliens Who Register for the Diversity Immigrant Visa
Program.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of State shall impose on any alien who
registers for the diversity immigrant visa program, as
described in section 203(c) of the Immigration and Nationality
Act (8 U.S.C. 1153(c)) a fee in the amount specified in this
subsection at the time of registration.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Secretary may by rule provide, but in any event not
less than $250.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(c) Crediting of Funds.--During any fiscal year, the total amount
of fees received under this section shall be credited as follows:
(1) 10 percent of fees received shall be credited to the
Department of State to retain and spend without further
appropriation to detect and prevent fraud in the diversity
immigrant visa program and to offset costs associated with such
program.
(2) 10 percent of fees received shall be credited to U.S.
Immigration and Customs Enforcement to retain and spend without
further appropriation for the purpose of detention and
immigration enforcement and removal operations.
(3) Any amounts not credited under this subsection to the
Department of State or U.S. Immigration and Customs Enforcement
shall be credited as offsetting receipts and deposited into the
general fund of the Treasury.
(d) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70016. EOIR FEES.
(a) Fee for Filing an Application to Adjust Status to That of a
Lawful Permanent Resident.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files with an immigration court an application to adjust the
alien's status to that of a lawful permanent resident, or whose
application to adjust status to that of a lawful permanent
resident is adjudicated in immigration court, a fee in the
amount specified in this subsection at the time such
application is filed, or, as applicable, prior to the
adjudication of such application in immigration court.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $1,500.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Crediting certain funds.--During any fiscal year, not
more than 50 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(b) Fee for Filing an Application for Waiver of Grounds of
Inadmissibility.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files with an immigration court an application for waiver of
grounds of inadmissibility, or whose application for waiver of
grounds of inadmissibility is adjudicated in immigration court,
a fee in the amount specified in this subsection at the time
such application is filed, or, as applicable, prior to the
adjudication of such application in immigration court.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $1,050.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(c) Fee for Filing an Application for Temporary Protected Status.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files with an immigration court an application for temporary
protected status, or whose application for temporary protected
status is adjudicated in immigration court, a fee in the amount
specified in this subsection at the time such application is
filed or, as applicable, prior to the adjudication of such
application in immigration court.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $500.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(d) Fee for Filing an Appeal From a Decision of an Immigration
Judge.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files any appeal from a decision of an immigration judge a fee
in the amount specified in this subsection at the time such
appeal is filed.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $900.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Exception.--The fee described in this section shall not
apply to the appeal of a bond decision.
(4) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(e) Fee for Filing an Appeal From a Decision of an Officer of the
Department of Homeland Security.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files an appeal from a decision of an officer of the Department
of Homeland Security a fee in the amount specified in this
subsection at the time such appeal is filed.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $900.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of Immigration
and Nationality and credited to the Executive Office for
Immigration Review to retain and spend without further
appropriation. Any amounts not credited under the previous
sentence shall be credited as offsetting receipts and deposited
into the general fund of the Treasury.
(f) Fee for Filing an Appeal From a Decision of an Adjudicating
Official in a Practitioner Disciplinary Case.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any practitioner
who files an appeal from a decision of an adjudicating official
in a practitioner disciplinary case a fee in the amount
specified in this subsection at the time such appeal is filed.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $1,325.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(g) Fee for Filing a Motion to Reopen or a Motion to Reconsider.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files a motion to reopen or motion to reconsider a decision of
an immigration judge or the Board of Immigration Appeals a fee
in the amount specified in this subsection at the time such
motion is filed.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $900.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Exceptions.--The fee described in this section shall
not apply to any motion that is:
(A) a motion to reopen a removal order entered in
absentia if the motion is filed under section
240(b)(5)(C)(ii) of the Immigration and Nationality
Act; or
(B) a motion to reopen a deportation order entered
in absentia if the motion is filed under section
242B(c)(3)(B) of the Immigration and Nationality Act,
as the section existed prior to April 1, 1997.
(4) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(h) Fee for Filing an Application for Suspension of Deportation.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files with an immigration court an application for suspension
of deportation a fee in the amount specified in this subsection
at the time such application is filed.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $600.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(i) Fee for Filing an Application for Cancellation of Removal for
Certain Permanent Residents.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files with an immigration court an application for cancellation
of removal for certain permanent residents a fee in the amount
specified in this subsection at the time such application is
filed.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $600.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(j) Fee for Filing an Application for Cancellation of Removal and
Adjustment of Status for Certain Nonpermanent Residents.--
(1) In general.--In addition to any other fees authorized
by law, the Attorney General shall impose on any alien who
files with an immigration court an application for cancellation
of removal and adjustment of status for certain nonpermanent
residents a fee in the amount specified in this subsection at
the time such application is filed.
(2) Fee specified.--
(A) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as
the Attorney General may by rule provide, but in any
event not less than $1,500.
(B) Subsequent adjustment.--Beginning in fiscal
year 2026 and each fiscal year thereafter, the amount
specified in this subsection for a fiscal year shall be
equal to the sum of--
(i) the amount imposed under this
subsection for the prior fiscal year; and
(ii) rounded to the next lowest multiple of
$10, the amount referred to in clause (i),
multiplied by the percentage (if any) by which
the Consumer Price Index for All Urban
Consumers for the month of July preceding the
date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year.
(3) Crediting certain funds.--During any fiscal year, not
more than 25 percent of the total amount of fees received under
this section shall be derived by transfer from the Immigration
Examinations Fee Account under section 286(n) of the
Immigration and Nationality Act and credited to the Executive
Office for Immigration Review to retain and spend without
further appropriation. Any amounts not credited under the
previous sentence shall be credited as offsetting receipts and
deposited into the general fund of the Treasury.
(k) No Waiver.--Any fee imposed under this section shall not be
waived or reduced.
(l) Condition on Funds.--No fees received under this section shall
be used to fund the Legal Orientation Program or any successor program.
SEC. 70017. ESTA FEE.
Section 217(h)(3)(B) of the Immigration and Nationality Act (8
U.S.C. 1187(h)(3)(B)) is amended--
(1) in clause (i)--
(A) in subclause (I), by striking ``and'' at the
end;
(B) in subclause (II)--
(i) by inserting after ``an amount'' the
following ``of not less than $10''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(III) not less than $13.'';
(2) in clause (ii)--
(A) by striking ``Amounts collected under clause
(i)(I)'' and inserting the following:
``(I) In general.--Notwithstanding
any other provision of law, of the
amounts collected under clause (i)(I)
during a fiscal year, not more than
$20,000,000'';
(B) by inserting before the period at the end of
the first sentence the following: ``, and the remainder
of the amounts collected under clause (i)(I) shall be
credited as offsetting receipts and deposited in the
general fund of the Treasury''; and
(C) by inserting after ``to pay the costs incurred
to administer the System.'' the following: ``Amounts
collected under clause (i)(III) shall be credited as
offsetting receipts and deposited in the general fund
of the Treasury.'';
(3) in clause (iii), by striking ``2028'' and inserting
``2034''; and
(4) by adding at the end the following:
``(iv) Subsequent adjustment.--Beginning in
fiscal year 2026 and each fiscal year
thereafter, the amount specified in clause
(i)(II) for a fiscal year shall be equal to the
sum of--
``(I) the amount imposed under this
subsection for the prior fiscal year;
and
``(II) the amount referred to in
subclause (I), multiplied by the
percentage (if any) by which the
Consumer Price Index for All Urban
Consumers for the month of July
preceding the date on which such
adjustment takes effect exceeds the
Consumer Price Index for All Urban
Consumers for the same month of the
preceding calendar year.''.
SEC. 70018. IMMIGRATION USER FEES.
Section 286 of the Immigration and Nationality Act (8 U.S.C. 1356)
is amended--
(1) in subsection (d)--
(A) by striking ``In addition to any other fee''
and inserting the following:
``(1) In general.--In addition to any other fee'';
(B) by inserting ``and except as provided in
subsection (e),'' before ``the Attorney General shall
charge and collect'';
(C) by striking ``$7'' and inserting ``a fee in an
amount specified in paragraph (2)''; and
(D) by adding at the end the following:
``(2) Initial amount.--For purposes of this section, the
amount specified in this section for fiscal year 2025 shall be
not less than $10.
``(3) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
``(A) the amount imposed under this subsection for
the prior fiscal year; and
``(B) rounded to the next lowest multiple of $0.25,
the amount referred to in subparagraph (A), multiplied
by the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
``(4) Crediting of amounts.--Of amounts collected under
this subsection $1 per individual for immigration inspection or
preinspection as described in this subsection shall be credited
as offsetting receipts and deposited in the general fund of the
Treasury.
``(5) No waiver.--A fee imposed under this subsection shall
not be waived or reduced.''; and
(2) in subsection (e)--
(A) by striking paragraph (1);
(B) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2); and
(C) in paragraph (2) (as redesignated by
subparagraph (B) above), by striking ``The Attorney
General shall charge'' and all that follows through
``this requirement shall not apply to'' and inserting
the following: ``No fee shall be charged under
subsection (d) for''.
SEC. 70019. EVUS FEE.
(a) In General.-- In addition to any other fee authorized by law,
the Secretary of Homeland Security shall impose on any alien subject to
the Electronic Visa Update System a fee in the amount specified in this
section at the time of such alien's enrollment in the Electronic Visa
Update System.
(b) Amount.--For purposes of this section, the amount specified in
this section for fiscal year 2025 shall be such amount as the Secretary
may by rule provide, but in any event not less than $30.
(c) Subsequent Adjustment.--Beginning in fiscal year 2026 and each
fiscal year thereafter, the amount specified in this section for a
fiscal year shall be equal to the sum of--
(1) the amount imposed under this section for the prior
fiscal year; and
(2) rounded to the next lowest multiple of $0.25, the
amount referred to in paragraph (1), multiplied by the
percentage (if any) by which the Consumer Price Index for All
Urban Consumers for the month of July preceding the date on
which such adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month of the
preceding calendar year.
(d) Crediting of Funds.--
(1) In general.--The fees received under this section shall
be deposited into the CBP Electronic Visa Update System
Account, less $5 per enrollment which shall be credited as
offsetting receipts and deposited into the general fund of the
Treasury.
(2) Establishment.--Notwithstanding any other provision of
law, there is hereby established in the Treasury of the United
States a separate account which shall be known as the ``CBP
Electronic Visa Update System Account''.
(3) Appropriation.-- Amounts deposited in the CBP
Electronic Visa Update System Account are hereby appropriated
to make payments and offset program costs as specified in this
section without further appropriation necessary and shall
remain available until expended for any U.S. Customs and Border
Protection costs associated with administering the Electronic
Visa Update System.
(e) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70020. FEE FOR SPONSOR OF UNACCOMPANIED ALIEN CHILD WHO FAILS TO
APPEAR IN IMMIGRATION COURT.
(a) Fee Imposed.--In addition to any other fee authorized by law,
for the sponsor of an unaccompanied alien child, the Secretary of
Health and Human Services shall impose a fee in an amount specified in
subsection (b) prior to the unaccompanied alien child's release to such
sponsor.
(b) Fee Specified.--
(1) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as the
Secretary may by rule provide, but in any event not less than
$5,000.
(2) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this subsection for
the prior fiscal year; and
(B) rounded to the next lowest multiple of $10, the
amount referred to in subparagraph (A), multiplied by
the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
(c) Fee Reimbursement.--At the conclusion of an unaccompanied alien
child's immigration court proceedings as an unaccompanied alien child,
or upon the ending of such sponsor's sponsorship of such unaccompanied
alien child, the Secretary of Health and Human Services may reimburse
to a sponsor a fee imposed under this section if such sponsor
demonstrates that the unaccompanied alien child in the care of such
sponsor was not ordered removed in absentia under section 240(b)(5) of
the Immigration and Nationality Act. In the case of a sponsor of an
unaccompanied alien child who was ordered removed in absentia and such
order was rescinded under section 240(b)(5)(C) of the Immigration and
Nationality Act, the sponsor may seek reimbursement of the fee under
this section.
(d) Crediting of Funds.--The fees received under this section shall
be credited as offsetting receipts and deposited into the general fund
of the Treasury.
(e) No Waiver.--A fee imposed under this subsection shall not be
waived or reduced.
SEC. 70021. FEE FOR ALIENS ORDERED REMOVED IN ABSENTIA.
(a) In General .--As partial reimbursement for the cost of
arresting an alien described in this section, the Secretary of Homeland
Security shall impose a fee in an amount specified in this section on
any alien who--
(1) is ordered removed in absentia under section 240(b)(5)
of the Immigration and Nationality Act (8 U.S.C. 1229a(b)(5));
and
(2) is subsequently arrested by U.S. Immigration and
Customs Enforcement.
(b) Initial Amount.--For purposes of this subsection, the amount
specified in this subsection for fiscal year 2025 shall be such amount
as the Secretary may by rule provide, but in any event not less than
$5,000.
(c) Subsequent Adjustment.--Beginning in fiscal year 2026 and each
fiscal year thereafter, the amount for a fiscal year shall be equal to
the sum of--
(1) the amount imposed under this section for the prior
fiscal year; and
(2) rounded to the next lowest multiple of $10, the amount
referred to in paragraph (1), multiplied by the percentage (if
any) by which the Consumer Price Index for All Urban Consumers
for the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price Index for
All Urban Consumers for the same month of the preceding
calendar year.
(d) Crediting of Funds.--The fees received under this section shall
be credited as offsetting receipts and deposited into the general fund
of the Treasury.
(e) No Waiver.--A fee imposed under this subsection shall not be
waived or reduced.
(f) Exception.--The fee described in this section shall not apply
to any alien who was ordered removed in absentia if such order was
rescinded under section 240(b)(5)(C) of the Immigration and Nationality
Act.
SEC. 70022. CUSTOMS AND BORDER PROTECTION INADMISSIBLE ALIEN
APPREHENSION FEE.
(a) Fee Imposed.--In addition to any other fee authorized by law,
for any inadmissible alien who is apprehended between ports of entry by
U.S. Customs and Border Protection, the Secretary of Homeland Security
shall impose a fee in an amount specified in subsection (b) at the time
of such apprehension.
(b) Fee Specified.--
(1) Initial amount.--The amount specified in this
subsection for fiscal year 2025 shall be such amount as the
Secretary may by rule provide, but in any event not less than
$5,000.
(2) Subsequent adjustment.--Beginning in fiscal year 2026
and each fiscal year thereafter, the amount specified in this
subsection for a fiscal year shall be equal to the sum of--
(A) the amount imposed under this subsection for
the prior fiscal year; and
(B) rounded to the next lowest multiple of $10, the
amount referred to in subparagraph (A), multiplied by
the percentage (if any) by which the Consumer Price
Index for All Urban Consumers for the month of July
preceding the date on which such adjustment takes
effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar
year.
(c) Crediting of Funds.--The fees received under this section shall
be credited as offsetting receipts and deposited into the general fund
of the Treasury.
(d) No Waiver.--A fee imposed under this section shall not be
waived or reduced.
SEC. 70023. AMENDMENT TO AUTHORITY TO APPLY FOR ASYLUM.
Section 208(d)(3) of the Immigration and Nationality Act (8 U.S.C.
1158(d)(3)) is amended--
(1) in the first sentence, by striking ``may'' and
inserting ``shall'';
(2) by striking ``Such fees shall not exceed'' and all that
follows; and
(3) by inserting after the first sentence ``Nothing in this
paragraph shall be construed to limit the authority of the
Attorney General to set additional adjudication and
naturalization fees in accordance with section 286(m).''.
PART 2--USE OF FUNDS
SEC. 70100. EXECUTIVE OFFICE FOR IMMIGRATION REVIEW.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Executive Office for Immigration Review
for fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $1,250,000,000 to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for purposes of--
(1) hiring the support staff necessary to support
immigration judges;
(2) hiring immigration judges; and
(3) expanding courtroom capacity and infrastructure.
SEC. 70101. ADULT ALIEN DETENTION CAPACITY AND FAMILY RESIDENTIAL
CENTERS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $45,000,000,000 to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for family residential center capacity and single
adult alien detention capacity.
(c) Duration.--The Department of Homeland Security may detain
family units of aliens at family residential centers, as described in
subsections (b) and (d), pending a decision on whether the aliens are
to be removed from the United States and, if such aliens are ordered
removed from the United States, until such aliens are removed.
(d) Family Residential Center Defined.--In this section, the term
``family residential center'' means a facility used by the Department
of Homeland Security to detain family units of aliens (including alien
children who are not unaccompanied alien children) who are encountered
or apprehended by the Department of Homeland Security, regardless of
whether the facility is licensed by the State or a political
subdivision of the State in which the facility is located.
(e) Detention Standards.--To efficiently utilize the funding
appropriated by this section, the detention standards for the single
adult detention capacity described in subsection (b) shall be set in
the sole discretion of the Secretary of Homeland Security.
SEC. 70102. RETENTION AND SIGNING BONUSES FOR U.S. IMMIGRATION AND
CUSTOMS ENFORCEMENT PERSONNEL.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $858,000,000 to remain available until September 30,
2029, for the purposes described in subsections (b) and (c).
(b) Retention Bonuses.--U.S. Immigration and Customs Enforcement
may provide retention bonuses to any U.S. Immigration and Customs
Enforcement agent, officer, or attorney who commits to two years of
additional service with U.S. Immigration and Customs Enforcement to
carry out immigration enforcement.
(c) Signing Bonuses.--U.S. Immigration and Customs Enforcement
shall provide a signing bonus to each U.S. Immigration and Customs
Enforcement agent, officer, or attorney who is hired on or after the
date of enactment of this Act and who commits to five years of service
with U.S. Immigration and Customs Enforcement to carry out immigration
enforcement.
(d) Rules for Bonuses.--U.S. Customs and Immigration Enforcement
shall provide qualifying individuals with written service agreements
that include--
(1) the commencement and termination dates of the required
service period (or provisions for the determination thereof);
(2) the amount of the bonus; and
(3) other terms and conditions under which the bonus is
payable, subject to the requirements of this subsection,
including--
(A) the conditions under which the agreement may be
terminated before the agreed-upon service period has
been completed; and
(B) the effect of a termination described in
subparagraph (A).
SEC. 70103. HIRING OF ADDITIONAL U.S. IMMIGRATION AND CUSTOMS
ENFORCEMENT PERSONNEL.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $8,000,000,000, to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used to hire additional personnel of U.S. Immigration and
Customs Enforcement, including officers, agents, and support staff, to
carry out immigration enforcement, and to prioritize and streamline the
hiring of retired U.S. Immigration and Customs Enforcement personnel.
There shall be a minimum of--
(1) 2,500 individuals hired in fiscal year 2025;
(2) 1,875 individuals hired in 2026;
(3) 1,875 individuals hired in 2027;
(4) 1,875 individuals hired in 2028; and
(5) 1,875 individuals hired in 2029.
SEC. 70104. U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT HIRING CAPABILITY.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $600,000,000, to remain available until September 30,
2029, for the purpose described in subsection (b).
(b) Use of Funds.--The funds made available under subsection (a)
shall only be used for the purpose of facilitating the recruitment,
hiring, and onboarding of additional U.S. Immigration and Customs
Enforcement personnel to carry out immigration enforcement, including
by investments in information technology, recruitment, marketing, and
staff necessary for such activities.
SEC. 70105. TRANSPORTATION AND REMOVAL OPERATIONS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $14,400,000,000, to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for transportation and removal operations, including
transportation of unaccompanied alien children, and for ensuring the
departure of aliens.
SEC. 70106. INFORMATION TECHNOLOGY INVESTMENTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $700,000,000 to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for U.S. Immigration and Customs Enforcement
information technology investments to support enforcement and removal
operations, including to streamline fine and penalty collections.
SEC. 70107. FACILITIES UPGRADES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $550,000,000 to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for U.S. Immigration and Customs Enforcement
facility upgrades to support enforcement and removal operations.
SEC. 70108. FLEET MODERNIZATION.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $250,000,000 to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for U.S. Immigration and Customs Enforcement fleet
modernization to support enforcement and removal operations.
SEC. 70109. PROMOTING FAMILY UNITY.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $20,000,000 to remain available until September 30, 2029,
for the purposes described in subsection (b).
(b) Use of Funds.--The funds made available under subsection (a)
shall only be used to--
(1) maintain the care and custody, during the period in
which the charges described in subparagraph (A) are pending, of
an alien who--
(A) is charged only with a misdemeanor offense
under section 275(a) of the Immigration and Nationality
Act (8 U.S.C. 1325(a)); and
(B) entered the United States with the alien's
child who has not attained 18 years of age; and
(2) detain the alien with the alien's child.
SEC. 70110. FUNDING SECTION 287(G) OF THE IMMIGRATION AND NATIONALITY
ACT.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the U.S. Immigration and Customs Enforcement
for fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $650,000,000, to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--The amounts made available under subsection (a)
shall only be used for purposes of facilitating and implementing
agreements under section 287(g) of the Immigration and Nationality Act
(8 U.S.C. 1357(g)).
SEC. 70111. COMPENSATION FOR INCARCERATION OF CRIMINAL ALIENS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Justice for fiscal year
2025, out of any money in the Treasury not otherwise appropriated,
$950,000,000, to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--The amounts made available under subsection (a)
shall only be used to compensate a State or political subdivision of a
State, as may be appropriate, with respect to the incarceration of any
alien who--
(1) has been convicted of a felony or two or more
misdemeanors; and
(2)(A) entered the United States without inspection or at
any time or place other than as designated by the Secretary of
Homeland Security;
(B) was the subject of removal proceedings at the time he
or she was taken into custody by the State or a political
subdivision of the State; or
(C) was admitted as a nonimmigrant and, at the time he or
she was taken into custody by the State or a political
subdivision of the State, has failed to maintain the
nonimmigrant status in which the alien was admitted, or to
which it was changed, or to comply with the conditions of any
such status.
(c) Limitation.--The amounts made available under subsection (a)
shall not be used to compensate any State or political subdivision of
the State if the State or political subdivision of the State prohibits
or in any way restricts a Federal, State, or local government entity,
official, or other personnel from any of the following:
(1) Complying with the immigration laws (as defined in
section 101(a)(17) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(17)).
(2) Assisting or cooperating with Federal law enforcement
entities, officials, or other personnel regarding the
enforcement of the immigration laws.
(3) Undertaking any one of the following law enforcement
activities as they relate to information regarding the
citizenship or immigration status, lawful or unlawful, the
inadmissibility or deportability, and the custody status, of
any individual:
(A) Making inquiries to any individual to obtain
such information regarding such individual or any other
individuals.
(B) Notifying the Federal Government regarding the
presence of individuals who are encountered by law
enforcement officials or other personnel of a State or
political subdivision of a State.
(C) Complying with requests for such information
from Federal law enforcement entities, officials, or
other personnel.
SEC. 70112. OFFICE OF THE PRINCIPAL LEGAL ADVISOR.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $1,320,000,000 to remain available until September 30,
2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for purposes of hiring additional support staff and
attorneys within the Office of the Principal Legal Advisor to represent
the Department of Homeland Security in removal proceedings.
SEC. 70113. RETURN OF ALIENS ARRIVING FROM CONTIGUOUS TERRITORY.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Homeland Security for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$500,000,000 to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--The funds made available under subsection (a)
shall only be used for purposes of return of aliens under section
235(b)(2)(C) of the Immigration and Nationality Act (8 U.S.C.
1225(b)(2)(C)).
SEC. 70114. STATE AND LOCAL PARTICIPATION IN HOMELAND SECURITY EFFORTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $787,000,000, to remain available until September 30,
2029, for the purpose described in subsection (b).
(b) Use of Funds.--The funds made available under subsection (a)
shall only be used for the purpose of ending the presence of criminal
gangs and transnational criminal organizations throughout the United
States, combating human smuggling and trafficking networks, supporting
immigration enforcement activities, and providing reimbursement for
State and local participation in such efforts.
SEC. 70115. UNACCOMPANIED ALIEN CHILDREN CAPACITY.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Office of Refugee Resettlement for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$3,000,000,000 to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--The funds made available under subsection (a)
shall only be used for the Office of Refugee Resettlement to house,
transport, and supervise unaccompanied alien children in the custody of
the Office of Refugee Resettlement pursuant to section 235 of the
William Wilberforce Trafficking Victims Protection Reauthorization Act
of 2008.
SEC. 70116. DEPARTMENT OF HOMELAND SECURITY CRIMINAL AND GANG CHECKS
FOR UNACCOMPANIED ALIEN CHILDREN.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to U.S. Customs and Border Protection for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$20,000,000, to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--In the case of an unaccompanied alien child who
has attained 12 years of age and is encountered by U.S. Customs and
Border Protection, the funds made available under subsection (a) shall
only be used to--
(1) contact the consulate or embassy of the country of
nationality or last habitual residence of such unaccompanied
alien child to request such unaccompanied alien child's
criminal record; and
(2) conduct an examination of such unaccompanied alien
child for gang-related tattoos and other gang-related markings,
(c) Unaccompanied Alien Child Defined.--In this section, the term
``unaccompanied alien child'' shall have the meaning given such term in
section 462(g) of the Homeland Security Act of 2002.
SEC. 70117. DEPARTMENT OF HEALTH AND HUMAN SERVICES CRIMINAL AND GANG
CHECKS FOR UNACCOMPANIED ALIEN CHILDREN.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Office of Refugee Resettlement for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$20,000,000, to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--In the case of each unaccompanied alien child
who has attained 12 years of age, the funds made available under
subsection (a) shall only be used for the purpose of making a
determination pursuant to section 235(c)(2)(A) of the William
Wilberforce Trafficking Victims Protection Reauthorization Act of 2008
about whether an unaccompanied alien child poses a danger to self or
others or has been charged with having committed a criminal offense,
to--
(1) contact the consulate or embassy of such unaccompanied
alien child's country of nationality or last habitual residence
to request such unaccompanied alien child's criminal record;
and
(2) conduct an examination of the unaccompanied alien child
for gang-related tattoos and other gang-related markings.
(c) Unaccompanied Alien Child Defined.--In this section, the term
``unaccompanied alien child'' shall have the meaning given such term in
section 462(g) of the Homeland Security Act of 2002.
SEC. 70118. INFORMATION ABOUT SPONSORS AND ADULT RESIDENTS OF SPONSOR
HOUSEHOLDS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Office of Refugee Resettlement for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Information About Individuals With Whom Unaccompanied Alien
Children Are Placed and Reside.--Before placing an unaccompanied alien
child with an individual pursuant to section 235(c) of the William
Wilberforce Trafficking Victims Protection Reauthorization Act of 2008,
the Secretary of Health and Human Services shall provide to the
Secretary of Homeland Security, regarding the individual with whom the
child will be placed and all adult residents of the individual's
household, information on--
(1) the name of the individual and all adult residents of
the individual's household;
(2) the social security number of the individual and all
adult residents of the individual's household;
(3) the date of birth of the individual and all adult
residents of the individual's household;
(4) the validated location of the individual's residence
where the child will be placed;
(5) the immigration status of the individual and all adult
residents of the individual's household;
(6) contact information for the individual and all adult
residents of the individual's household; and
(7) the results of all background and criminal records
checks for the individual and all adult residents of the
individual's household, which shall include at a minimum an
investigation of the public records sex offender registry, a
public records background check, and a national criminal
history check based on fingerprints.
(c) Unaccompanied Alien Child Defined.--In this section, the term
``unaccompanied alien child'' shall have the meaning given such term in
section 462(g) of the Homeland Security Act of 2002.
SEC. 70119. REPATRIATION OF UNACCOMPANIED ALIEN CHILDREN.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Homeland Security for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--Notwithstanding any other provision of law, the
funds made available under subsection (a) shall only be used to permit
a specified unaccompanied alien child to withdraw the child's
application for admission pursuant to section 235(a)(4) of the
Immigration and Nationality Act and return such child to the child's
country of nationality or country of last habitual residence.
(c) Definitions.--In this section--
(1) Specified unaccompanied alien child.--The term
``specified unaccompanied alien child'' means an unaccompanied
alien child (as defined in section 462(g) of the Homeland
Security Act of 2002) who the Secretary of Homeland Security
determines on a case-by-case basis--
(A) has been found by an immigration officer at a
land border or port of entry of the United States and
is inadmissible under the Immigration and Nationality
Act;
(B) has not been a victim of severe forms of
trafficking in persons, and there is no credible
evidence that such child is at risk of being trafficked
upon return to the child's country of nationality or of
last habitual residence; and
(C) does not have a fear of returning to the
child's country of nationality or of last habitual
residence owing to a credible fear of persecution.
(2) Severe forms of trafficking in persons.--The term
``severe forms of trafficking in persons'' shall have the
meaning given such term in section 103 of the Trafficking
Victims Protection Act of 2000.
SEC. 70120. UNITED STATES SECRET SERVICE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Director of the United States Secret
Service for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $1,170,000,000 to remain available until
September 30, 2029, for the purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for additional United States Secret Service
resources, including personnel, training facilities, and technology.
SEC. 70121. COMBATING DRUG TRAFFICKING AND ILLEGAL DRUG USE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Justice for fiscal year
2025, out of any money in the Treasury not otherwise appropriated,
$500,000,000 to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used for efforts to combat drug trafficking, including of
fentanyl and its precursor chemicals, and illegal drug use.
SEC. 70122. INVESTIGATING AND PROSECUTING IMMIGRATION RELATED MATTERS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Justice for fiscal year
2025, out of any money in the Treasury not otherwise appropriated,
$600,000,000, to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a)
shall only be used to investigate and prosecute immigration matters,
gang-related crimes involving aliens, child trafficking and smuggling
involving aliens, voting by aliens, violations of the Alien
Registration Act, and violations of or fraud relating to title IV of
the Personal Responsibility and Work Opportunity Act of 1996, including
through hiring Department of Justice personnel to investigate and
prosecute such matters.
SEC. 70123. EXPEDITED REMOVAL FOR CRIMINAL ALIENS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Homeland Security for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$75,000,000, to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--The amounts made available in subsection (a)
shall only be used for applying the provisions of section 235(b)(1) of
the Immigration and Nationality Act to any alien who is inadmissible
under paragraph (2) or (3) of section 212(a) of the Immigration and
Nationality Act, regardless of the period that such alien has been
physically present in the United States.
SEC. 70124. REMOVAL OF CERTAIN CRIMINAL ALIENS WITHOUT FURTHER HEARING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Homeland Security for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$25,000,000, to remain available until September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--The amounts made available in subsection (a)
shall only be used for applying the provisions of section 235(c) of the
Immigration and Nationality Act to any arriving alien that an
immigration officer or an immigration judge suspects may be
inadmissible under paragraph (2) or (3) of section 212(a) of the
Immigration and Nationality Act.
Subtitle B--Regulatory Matters
SEC. 70200. REVIEW OF AGENCY RULEMAKING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated:
(1) To the Director of the Office of Management and Budget
for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $10,000,000, to remain available
through September 30, 2034, to carry out this section and the
amendments made by this section.
(2) To the Comptroller General of the United States for
fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $10,000,000, to remain available
through September 30, 2034, to carry out this section and the
amendments made by this section.
(b) Use of Funds.--
(1) Office of management and budget.--The Director of the
Office of Management and Budget shall use amounts made
available under subsection (a)(1) to pay expenses associated
with implementing the requirements of subsections (c) and (d).
(2) Comptroller general.--The Comptroller General of the
United States shall use amounts made available under subsection
(a)(2) to pay expenses associated with implementing the
requirements of subsection (e).
(c) Congressional Review of Agency Rulemaking.--
(1) Chapter 8 of title 5, United States Code, is amended by
inserting at the end the following:
``Sec. 809. Additional reporting requirements
``(a) Agency Reports.--In the case of any rule for which a report
is submitted under section 801(a)(1)(A) the agency shall also include
in such report--
``(1) an estimate of the budgetary effects associated with
the enactment and enforcement of the rule;
``(2) an analysis of the direct and reasonably foreseeable
indirect costs associated with the rule;
``(3) an analysis of any jobs added or lost within each
affected industry, as identified by North American Industrial
Classification System code, differentiating between public and
private sector jobs, as a direct or indirect result of the
rule;
``(4) a determination, by the Administrator of the Office
of Information and Regulatory Affairs of the Office of
Management and Budget, of whether the rule is a major or
nonmajor rule, including an explanation of the finding
specifically addressing each criteria for a major rule
contained within subparagraphs (A) through (C) of section
804(2);
``(5) a list of information on which the rule is based,
including data, scientific and economic studies, and cost-
benefit analyses;
``(6) a list of any other related regulatory actions that
implement the same statutory provision or regulatory objective
as well as the estimated economic effects of those actions;
``(7) an estimate of the effect on inflation of the rule;
and
``(8) a statement of the constitutional authority
authorizing the agency to make the rule.
``(b) Comptroller General Reports.--If requested in writing by a
Member of Congress--
``(1) the Comptroller General of the United States shall
make a determination whether an agency action qualifies as a
rule for purposes of this chapter, and shall submit to Congress
this determination not later than 60 days after the date of the
request; and
``(2) the Comptroller General shall make a determination
whether a rule is considered a major rule for purposes of this
chapter, and shall submit to Congress this determination not
later than 90 days after the date of the request.
``(c) Determination.--For purposes of this section, a determination
under this subsection (b) shall be deemed to be a report under section
801(a)(1)(A).
``Sec. 810. Approval of certain major rules
``(a) Approval Required.--Notwithstanding any other provision of
this chapter, a major rule that increases revenues, as determined in
section 809(a), shall not take effect unless Congress enacts a joint
resolution of approval described in subsection (c).
``(b) Effect.--If a joint resolution of approval relating to a
major rule that increases revenue is not enacted into law by the end of
60 session days or legislative days, as applicable, beginning on the
date on which the report referred to in section 801(a)(1)(A) is
received by Congress (excluding days either House of Congress is
adjourned for more than 3 days during a session of Congress), then the
rule described in that resolution shall be deemed not to be approved
and such rule shall not take effect.
``(c) Resolution of Approval.--Section 802 shall apply to a joint
resolution of approval under this section to the same extent as it does
to a joint resolution of disapproval, except that the matter after the
resolving clause of a joint resolution of approval shall be as follows:
`That Congress approves the rule submitted by the _____ relating to
_____.' (The blank spaces being appropriately filled in).
``(d) Rulemaking Authority.--The enactment of a joint resolution of
approval under this section shall not be interpreted to serve as a
grant or modification of statutory authority by Congress for the
promulgation of a rule, shall not extinguish or affect any claim,
whether substantive or procedural, against any alleged defect in a rule
or the rulemaking process, and shall not form part of the record before
the court in any judicial proceeding concerning a rule except for
purposes of determining whether or not the rule is in effect.
``(e) Judicial Review.--Notwithstanding section 805, a court may
determine whether a Federal agency has completed the necessary
requirements under this chapter for a rule to take effect.
``Sec. 811. Additional review of rules
``(a) Additional Review.--In addition to the opportunity for review
otherwise provided under this chapter, notwithstanding any other
provision under this chapter, in the case of any rule for which a
report is submitted under section 801(a)(1)(A) which increases revenue
as determined under section 809(a) and which was submitted during the
final year of a President's term, the procedures described in section
802 shall apply to such rule in the succeeding session of Congress, and
a joint resolution may contain one or more such rules.
``(b) Resolution of Disapproval.--In the case of such a resolution
containing one or more such rules under this section, the matter after
the resolving clause shall be as follows: `That Congress disapproves
the following rules: the rule submitted by the __ relating to __; and
the rule submitted by the __ relating to __. Such rules shall have no
force or effect.' (The blank spaces being appropriately filled in and
additional clauses describing additional rules to be included as
necessary).
``Sec. 812. Review of rules currently in effect
``(a) Annual Review.--Beginning on the date that is 6 months after
the date of enactment of this section and annually thereafter for the 4
years following, each agency shall designate not less than 20 percent
of eligible rules made by that agency for review, and shall submit a
report including each such eligible rule in the same manner as a report
under section 801(a)(1). Sections 801, 802, 809, 810, and 811 shall
apply to each such rule, subject to subsection (c) of this section. No
eligible rule previously designated may be designated again.
``(b) Sunset for Eligible Rules Not Extended.--Beginning after the
date that is 5 years after the date of enactment of this section, if
Congress has not enacted a joint resolution of approval for that
eligible rule, that eligible rule shall not continue in effect.
``(c) Approval of Rules.--
``(1) Unless Congress approves all eligible rules
designated by executive agencies for review within 90 days
after designation, they shall have no effect and the Federal
agency which originally promulgated such rules may not enforce
such rules.
``(2) A single joint resolution of approval shall apply to
all eligible rules in a report designated for a year as
follows: `That Congress approves the rules submitted by the___
for the year ___.' (The blank spaces being appropriately filled
in).
``(d) Definition.--In this section the term `eligible rule' means a
rule that is in effect as of the date of enactment of this section.''.
(2) The table of chapters for chapter 8 of title 5, United
States Code, is amended by inserting after the item relating to
section 808 the following:
``809. Additional reporting requirements.
``810. Approval of certain major rules.
``811. Additional review of rules.
``812. Review of rules currently in effect.''.
(d) Technical and Conforming Amendments.--Chapter 8 of title 5,
United States Code, is amended--
(1) in section 801(a)(3)--
(A) in subparagraph (B)(ii), by striking ``or'' at
the end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; or''; and
(C) by inserting at the end the following:
``(D) in the case of a major rule that increases
revenue, such rule shall not take effect unless
Congress passes a joint resolution of approval
described in section 810.''; and
(2) in section 804, by amending paragraph (3) to read as
follows:
``(3) The term `rule' has the meaning given such term in
section 551, except that such term--
``(A) includes interpretative rules, general
statements of policy, and all other agency guidance
documents; and
``(B) does not include--
``(i) any rule of particular applicability,
including a rule that approves or prescribes
for the future rates, wages, prices, services,
or allowances therefore, corporate or financial
structures, reorganizations, mergers, or
acquisitions thereof, or accounting practices
or disclosures bearing on any of the foregoing;
``(ii) any rule relating to agency
management or personnel; or
``(iii) any rule of agency organization,
procedure, or practice that does not
substantially affect the rights or obligations
of nonagency parties.''.
(e) Government Accountability Office Study of Rules.--
(1) In general.--The Comptroller General of the United
States shall conduct a study to determine, as of the date of
the enactment of this section--
(A) how many rules (as such term is defined in
section 804 of title 5, United States Code) were in
effect;
(B) how many major rules (as such term is defined
in section 804 of title 5, United States Code) were in
effect; and
(C) the total estimated economic cost imposed by
all such rules.
(2) Report.--Not later than 1 year after the date of the
enactment of this section, the Comptroller General of the
United States shall submit a report (and publish the report on
the website of the Comptroller General) to Congress that
contains the findings of the study conducted under subsection
(e).
SEC. 70201. CONGRESSIONAL REVIEW ACT COMPLIANCE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Director of the Office of Management and
Budget for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $10,000,000, to remain available through
September 30, 2034, to carry out this section.
(b) Analysis.--The Administrator of the Office of Information and
Regulatory Affairs of the Office of Management and Budget shall use
amounts appropriated under this section to conduct de novo analysis of
the direct and reasonably foreseeable indirect costs of compliance
associated with rules submitted under section 801(a)(1)(A) of title 5,
United States Code. The Administrator shall use such analysis as the
basis for determining whether a rule is a major rule and publish each
such analysis to the regulatory review database of the Office of
Information and Regulatory Affairs prior to transmission of such rule
to each House of the Congress and the Comptroller General of the United
States. The Administrator shall also publish an estimate of the
budgetary effects associated with the promulgation and enforcement of
such rules prior to transmission.
Subtitle C--Other Matters
SEC. 70300. LIMITATION ON DONATIONS MADE PURSUANT TO SETTLEMENT
AGREEMENTS TO WHICH THE UNITED STATES IS A PARTY.
(a) Limitation on Required Donations.--An official or agent of the
Government may not enter into or enforce any settlement agreement on
behalf of the United States directing or providing for a payment to any
person or entity other than the United States, other than a payment
that provides restitution for or otherwise directly remedies actual
harm (including to the environment) directly and proximately caused by
the party making the payment, or constitutes payment for services
rendered in connection with the case.
(b) Penalty.--Any official or agent of the Government who violates
subsection (a) shall be subject to the same penalties that would apply
in the case of a violation of section 3302 of title 31, United States
Code.
(c) Effective Date.--Subsections (a) and (b) apply only in the case
of a settlement agreement entered on or after the date of enactment of
this Act.
(d) Definition.--The term ``settlement agreement'' means a
settlement agreement resolving a civil action or potential civil
action.
(e) Annual Audit Requirement.--
(1) In general.--Not later than at the end of the first
fiscal year that begins after the date of enactment of this
Act, and annually thereafter, the Inspector General of each
Federal agency shall submit, and make available on a publicly
accessible website, a report on any settlement agreement
entered into in violation of this section by that agency to--
(A) the Committee on the Judiciary of the Senate;
and
(B) the Committee on the Judiciary of the House of
Representatives.
(2) Prohibition on additional funding.--No additional funds
are authorized to be appropriated to carry out this subsection.
SEC. 70301. SOLICITATION OF ORDERS DEFINED.
Section 101(d) of Public Law 86--272 (73 Stat. 555) is amended--
(1) in paragraph (1) by striking ``and'' at the end,
(2) in paragraph (2) by striking the period at the end and
inserting ``; and'', and
(3) by adding at the end the following:
``(3) the term `solicitation of orders' means any business
activity that facilitates the solicitation of orders even if
that activity may also serve some independently valuable
business function apart from solicitation.''.
SEC. 70302. RESTRICTION OF FUNDS.
No court of the United States may use appropriated funds to enforce
a contempt citation for failure to comply with an injunction or
temporary restraining order if no security was given when the
injunction or order was issued pursuant to Federal Rule of Civil
Procedure 65(c), whether issued prior to, on, or subsequent to the date
of enactment of this section.
TITLE VIII--COMMITTEE ON NATURAL RESOURCES
Subtitle A--Energy and Mineral Resources
PART I--OIL AND GAS
SEC. 80101. ONSHORE OIL AND GAS LEASE SALES.
(a) Requirement to Immediately Resume Onshore Oil and Gas Lease
Sales.--
(1) In general.--The Secretary of the Interior shall
immediately resume quarterly onshore oil and gas lease sales in
compliance with the Mineral Leasing Act.
(2) Requirement.--The Secretary of the Interior shall
ensure--
(A) that any oil and gas lease sale pursuant to
paragraph (1) is conducted immediately on completion of
all requirements under the Mineral Leasing Act; and
(B) that the processes described in subparagraph
(A) are conducted in a timely manner to ensure
compliance with subsection (b)(1).
(3) Lease of oil and gas lands.--Section 17(b)(1)(A) of the
Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)) is amended by
inserting ``Eligible lands comprise all lands subject to
leasing under this Act and not excluded from leasing by a
statutory or regulatory prohibition. Land shall be considered
available under the preceding sentence if the land has been
designated as open for leasing under a land use plan developed
or revised under section 202 of the Federal Land Policy and
Management Act of 1976 and has been nominated for leasing
through the submission of an expression of interest, is subject
to drainage (as described in subsection (j)) in the absence of
leasing, or is otherwise designated as available pursuant to
regulations issued by the Secretary.'' after ``sales are
necessary.''.
(b) Quarterly Lease Sales.--
(1) In general.--In accordance with the Mineral Leasing
Act, each fiscal year, the Secretary of the Interior shall
conduct a minimum of four oil and gas lease sales in each of
the following States:
(A) Wyoming.
(B) New Mexico.
(C) Colorado.
(D) Utah.
(E) Montana.
(F) North Dakota.
(G) Oklahoma.
(H) Nevada.
(I) Alaska.
(J) Any other State in which there is land
available for oil and gas leasing under the Mineral
Leasing Act or any other mineral leasing law.
(2) Requirement.--In conducting a lease sale under
paragraph (1) in a State described in that paragraph, the
Secretary of the Interior shall offer not less than 50 percent
of all parcels nominated that are available and eligible
pursuant to the requirements of the Mineral Leasing Act.
(3) Replacement sales.--The Secretary of the Interior shall
conduct a replacement sale during the same fiscal year if--
(A) a lease sale under paragraph (1) is canceled,
delayed, or deferred, including for a lack of eligible
parcels; or
(B) during a lease sale under paragraph (1) the
percentage of acreage that does not receive a bid is
equal to or greater than 25 percent of the acreage
offered.
(c) Leasing of Oil and Gas.--Section 17 of the Mineral Leasing Act
(30 U.S.C. 226) is amended--
(1) by striking the section designation and all that
follows through the end of subsection (a) and inserting the
following:
``SEC. 17. LEASING OF OIL AND GAS.
``(a) Leasing.--
``(1) In general.--Not later than 18 months after the date
of receipt by the Secretary of an expression of interest in
leasing land that is subject to disposition under this Act and
is known or believed to contain oil or gas deposits, the
Secretary shall, subject to paragraph (2), offer such land for
oil and gas leasing if the Secretary determines that the land
is open to oil or gas leasing under a land use plan developed
or revised under section 202 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1712) and such land use
plan--
``(A) applies to the planning area in which the
land is located; and
``(B) is in effect on the date on which the
expression of interest was submitted to the Secretary.
``(2) Land use plans.--
``(A) Lease terms and conditions.--A lease issued
by the Secretary under this section--
``(i) shall include any terms and
conditions of the land use plan that apply to
the area of the lease; and
``(ii) shall not require any stipulations
or mitigation requirements not included in such
land use plan.
``(B) Effect of revisions.--The revision of a land
use plan shall not prevent or delay the Secretary from
offering land for leasing under this section if the
other requirements of this section have been met, as
determined by the Secretary.'';
(2) in subsection (p)--
(A) in paragraph (1), by inserting ``conduct a
complete review of the application with all applicable
agency staff required for the Secretary to determine
the application is complete and'' after ``drill, the
Secretary shall''; and
(B) by adding at the end the following:
``(4) Term.--A permit to drill approved under this
subsection shall be valid for a single, nonrenewable 4-year
period beginning on the date that the permit to drill is
approved.
``(5) Effect of pending civil action on processing
applications for permits to drill.--Pursuant to the
requirements of paragraph (2), notwithstanding the existence of
any pending civil actions affecting the application or a
related lease issued under this Act, the Secretary shall
process an application for a permit to drill or other
authorizations or approvals under a lease issued under this
Act.''; and
(3) by striking subsection (q) and inserting the following:
``(q) Other Requirements.--In utilizing the authorities provided by
section 390 of the Energy Policy Act of 2005 with respect to an
activity conducted pursuant to this Act, the Secretary of the Interior
shall not consider whether there are any extraordinary
circumstances.''.
SEC. 80102. NONCOMPETITIVE LEASING.
(a) Noncompetitive Leasing.--Section 17 of the Mineral Leasing Act
(30 U.S.C. 226) is further amended--
(1) in subsection (b)--
(A) in paragraph (1)(A)--
(i) in the first sentence, by striking
``paragraph (2)'' and inserting ``paragraph (2)
or (3)''; and
(ii) by adding at the end ``Lands for which
no bids are received or for which the highest
bid is less than the national minimum
acceptable bid shall be offered promptly within
30 days for leasing under subsection (c) of
this section and shall remain available for
leasing for a period of 2 years after the
competitive lease sale.''; and
(B) by adding at the end the following:
``(3)(A) If the United States held a vested future interest in a
mineral estate that, immediately prior to becoming a vested present
interest, was subject to a lease under which oil or gas was being
produced, or had a well capable of producing, in paying quantities at
an annual average production volume per well per day of either not more
than 15 barrels per day of oil or condensate, or not more than 60,000
cubic feet of gas, the holder of the lease may elect to continue the
lease as a noncompetitive lease under subsection (c)(1).
``(B) An election under this paragraph is effective--
``(i) in the case of an interest which vested after January
1, 1990, and on or before October 24, 1992, if the election is
made before the date that is 1 year after October 24, 1992;
``(ii) in the case of an interest which vests within 1 year
after October 24, 1992, if the election is made before the date
that is 2 years after October 24, 1992; and
``(iii) in any case other than those described in clause
(i) or (ii), if the election is made prior to the interest
becoming a vested present interest.'';
(2) by striking subsection (c) and inserting the following:
``(c) Lands Subject to Leasing Under Subsection (b); First
Qualified Applicant.--
``(1) If the lands to be leased are not leased under
subsection (b)(1) of this section or are not subject to
competitive leasing under subsection (b)(2) of this section,
the person first making application for the lease who is
qualified to hold a lease under this chapter shall be entitled
to a lease of such lands without competitive bidding, upon
payment of a nonrefundable application fee of at least $75. A
lease under this subsection shall be conditioned upon the
payment of a royalty at a rate of 12.5 percent in amount or
value of the production removed or sold from the lease. Leases
shall be issued within 60 days of the date on which the
Secretary identifies the first responsible qualified applicant.
``(2)(A) Lands (i) which were posted for sale under
subsection (b)(1) of this section but for which no bids were
received or for which the highest bid was less than the
national minimum acceptable bid and (ii) for which, at the end
of the period referred to in subsection (b)(1) of this section
no lease has been issued and no lease application is pending
under paragraph (1) of this subsection, shall again be
available for leasing only in accordance with subsection (b)(1)
of this section.
``(B) The land in any lease which is issued under paragraph
(1) of this subsection or under subsection (b)(1) of this
section which lease terminates, expires, is cancelled or is
relinquished shall again be available for leasing only in
accordance with subsection (b)(1) of this section.''; and
(3) by striking subsection (e) and inserting the following:
``(e) Primary Term.--Competitive and noncompetitive leases issued
under this section shall be for a primary term of 10 years: Provided,
however, That competitive leases issued in special tar sand areas shall
also be for a primary term of 10 years. Each such lease shall continue
so long after its primary term as oil or gas is produced in paying
quantities. Any lease issued under this section for land on which, or
for which under an approved cooperative or unit plan of development or
operation, actual drilling operations were commenced prior to the end
of its primary term and are being diligently prosecuted at that time
shall be extended for two years and so long thereafter as oil or gas is
produced in paying quantities.''.
(b) Failure to Comply With Provisions of Lease.--Section 31 of the
Mineral Leasing Act (30 U.S.C. 188) is amended--
(1) in subsection (d)(1), by striking ``section 17(b)'' and
inserting ``subsection (b) or (c) of section 17 of this Act'';
(2) in subsection (e)--
(A) in paragraph (2)--
(i) by inserting ``either'' after ``rentals
and''; and
(ii) by inserting ``or the inclusion in a
reinstated lease issued pursuant to the
provisions of section 17(c) of this Act of a
requirement that future rentals shall be at a
rate not less than $5 per acre per year, all''
before ``as determined by the Secretary''; and
(B) by amending paragraph (3) to read as follows:
``(3)(A) payment of back royalties and the inclusion in a
reinstated lease issued pursuant to the provisions of section
17(b) of this Act of a requirement for future royalties at a
rate of not less than 16\2/3\ percent computed on a sliding
scale based upon the average production per well per day, at a
rate which shall be not less than 4 percentage points greater
than the competitive royalty schedule then in force and used
for royalty determination for competitive leases issued
pursuant to such section as determined by the Secretary:
Provided, That royalty on such reinstated lease shall be paid
on all production removed or sold from such lease subsequent to
the termination of the original lease;
``(B) payment of back royalties and inclusion in a
reinstated lease issued pursuant to the provisions of section
17(c) of this Act of a requirement for future royalties at a
rate not less than 16\2/3 \percent: Provided, That royalty on
such reinstated lease shall be paid on all production removed
or sold from such lease subsequent to the cancellation or
termination of the original lease; and'';
(3) in subsection (f)--
(A) in paragraph (1), by striking ``in the same
manner as the original lease issued pursuant to section
17'' and inserting ``as a competitive or a
noncompetitive oil and gas lease in the same manner as
the original lease issued pursuant to subsection (b) or
(c) of section 17 of this Act'';
(B) by adding at the end the following:
``(4) Except as otherwise provided in this section, the issuance of
a lease in lieu of an abandoned patented oil placer mining claim shall
be treated as a noncompetitive oil and gas lease issued pursuant to
section 17(c) of this Act.'';
(4) in subsection (g), by striking ``subsection (d)'' and
inserting ``subsections (d) and (j)'';
(5) by amending subsection (h) to read as follows:
``(h) Royalty Reductions.--
``(1) In acting on a petition to issue a noncompetitive oil
and gas lease, under subsection (j) of this section or in
response to a request filed after issuance of such a lease, or
both, the Secretary is authorized to reduce the royalty on such
lease if in his judgment it is equitable to do so or the
circumstances warrant such relief due to uneconomic or other
circumstances which could cause undue hardship or premature
termination of production.
``(2) In acting on a petition for reinstatement pursuant to
subsection (d) of this section or in response to a request
filed after reinstatement, or both, the Secretary is authorized
to reduce the royalty in that reinstated lease on the entire
leasehold or any tract or portion thereof segregated for
royalty purposes if, in his judgment, there are uneconomic or
other circumstances which could cause undue hardship or
premature termination of production; or because of any written
action of the United States, its agents or employees, which
preceded, and was a major consideration in, the lessee's
expenditure of funds to develop the property under the lease
after the rent had become due and had not been paid; or if in
the judgment of the Secretary it is equitable to do so for any
reason.''; and
(6) by adding at the end the following:
``(j) Issuance of Noncompetitive Oil and Gas Lease; Conditions.--
Where an unpatented oil placer mining claim validly located prior to
February 24, 1920, which has been or is currently producing or is
capable of producing oil or gas, has been or is hereafter deemed
conclusively abandoned for failure to file timely the required
instruments or copies of instruments required by section 1744 of title
43, and it is shown to the satisfaction of the Secretary that such
failure was inadvertent, justifiable, or not due to lack of reasonable
diligence on the part of the owner, the Secretary may issue, for the
lands covered by the abandoned unpatented oil placer mining claim, a
noncompetitive oil and gas lease, consistent with the provisions of
section 17(e) of this Act, to be effective from the statutory date the
claim was deemed conclusively abandoned. Issuance of such a lease shall
be conditioned upon--
``(1) a petition for issuance of a noncompetitive oil and
gas lease, together with the required rental and royalty,
including back rental and royalty accruing from the statutory
date of abandonment of the oil placer mining claim, being filed
with the Secretary--
``(A) with respect to any claim deemed conclusively
abandoned on or before January 12, 1983, on or before
the one hundred and twentieth day after January 12,
1983; or
``(B) with respect to any claim deemed conclusively
abandoned after January 12, 1983, on or before the one
hundred and twentieth day after final notification by
the Secretary or a court of competent jurisdiction of
the determination of the abandonment of the oil placer
mining claim;
``(2) a valid lease not having been issued affecting any of
the lands covered by the abandoned oil placer mining claim
prior to the filing of such petition: Provided, however, That
after the filing of a petition for issuance of a lease under
this subsection, the Secretary shall not issue any new lease
affecting any of the lands covered by such abandoned oil placer
mining claim for a reasonable period, as determined in
accordance with regulations issued by him;
``(3) a requirement in the lease for payment of rental,
including back rentals accruing from the statutory date of
abandonment of the oil placer mining claim, of not less than $5
per acre per year;
``(4) a requirement in the lease for payment of royalty on
production removed or sold from the oil placer mining claim,
including all royalty on production made subsequent to the
statutory date the claim was deemed conclusively abandoned, of
not less than 12\1/2\ percent; and
``(5) compliance with the notice and reimbursement of costs
provisions of paragraph (4) of subsection (e) but addressed to
the petition covering the conversion of an abandoned unpatented
oil placer mining claim to a noncompetitive oil and gas
lease.''.
SEC. 80103. PERMIT FEES.
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is further
amended by adding at the end the following:
``(r) Fee for Commingling of Production.--
``(1) In general.--The Secretary of the Interior shall
approve applications allowing for the commingling of production
from two or more sources (including the area of an oil and gas
lease, the area included in a drilling spacing unit, a unit
participating area, a communitized area, or non-Federal
property) before production reaches the point of royalty
measurement regardless of ownership, the royalty rates, and the
number or percentage of acres for each source if the applicant
pays an application fee of $10,000 and agrees to install
measurement devices for each source, utilize an allocation
method that achieves volume measurement uncertainty levels
within plus or minus 2 percent during the production phase
reported on a monthly basis, or utilize an approved periodic
well testing methodology. Production from multiple oil and gas
leases, drilling spacing units, communitized areas, or
participating areas from a single wellbore shall be considered
a single source. Nothing in this subsection shall prevent the
Secretary of the Interior from continuing the current practice
of exercising discretion to authorize higher percentage volume
measurement uncertainty levels if appropriate technical and
economic justifications have been provided.
``(2) Revenue allocation.--Fees received under this
subsection shall be deposited into the Treasury as
miscellaneous receipts.
``(s) Fees for Permits-by-rule.--
``(1) In general.--The Secretary shall establish, by
regulation not later than 2 years after the date of enactment
of this subsection, a permit-by-rule process under which a
leaseholder may receive approval to drill for oil and gas if
the leaseholder certifies compliance with such regulations and
pays a fee of $5,000. Such permit-by-rule process shall allow
drilling operations to commence no later than 45 days after the
leaseholder has filed a registration that certifies compliance
with such regulations and paid the fee required by this
paragraph.
``(2) Revenue allocation.--Fees received under this
subsection shall be deposited into the Treasury as
miscellaneous receipts.''.
SEC. 80104. PERMITTING FEE FOR NON-FEDERAL LAND.
(a) In General.--Notwithstanding the Mineral Leasing Act, the
Federal Oil and Gas Royalty Management Act of 1982, or subpart 3162 of
part 3160 of title 43, Code of Federal Regulations (or successor
regulations), but subject to any applicable State requirements, the
Secretary of the Interior shall not require a permit to drill for an
oil and gas lease under the Mineral Leasing Act for an action occurring
within an oil and gas drilling or spacing unit if the leaseholder pays
a fee of $5,000 and--
(1) the Federal Government--
(A) owns less than 50 percent of the minerals
within the oil and gas drilling or spacing unit; and
(B) does not own or lease the surface estate within
the area directly impacted by the action; or
(2) the well is located on non-Federal land overlying a
non-Federal mineral estate, but some portion of the wellbore
traverses but does not produce from the Federal mineral estate
subject to the lease.
(b) Notification.--For each State permit to drill or drilling plan
that would impact or extract oil and gas owned by the Federal
Government--
(1) each lessee of Federal minerals in the unit, or
designee of a lessee, shall--
(A) notify the Secretary of the Interior of the
submission of a State application for a permit to drill
or drilling plan on submission of the application;
(B) provide a copy of the application described in
subparagraph (A) to the Secretary of the Interior not
later than 5 days after the date on which the permit or
plan is submitted; and
(C) pay to the Secretary of the Interior the $5,000
fee referenced in subsection (a) of this section;
(2) each lessee, designee of a lessee, or applicable State
shall notify the Secretary of the Interior of the approved
State permit to drill or drilling plan not later than 45 days
after the date on which the permit or plan is approved; and
(3) each lessee or designee of a lessee shall provide,
prior to commencing drilling operations, agreements authorizing
the Secretary of the Interior to enter non-Federal land, as
necessary, for inspection and enforcement of the terms of the
Federal lease.
(c) Effect.--Nothing in this section affects the amount of
royalties due to the Federal Government from the production of the
Federal minerals within the oil and gas drilling or spacing unit.
(d) Revenue Allocation.--Fees received under this section shall be
deposited into the Treasury as miscellaneous receipts.
(e) Authority on Non-Federal Land.--Section 17(g) of the Mineral
Leasing Act (30 U.S.C. 226(g)) is amended--
(1) by striking the subsection designation and all that
follows through ``Secretary of the Interior, or'' in the first
sentence and inserting the following:
``(g) Regulation of Surface Disturbing Activities.--
``(1) In general.--The Secretary of the Interior, or''; and
(2) by adding at the end the following:
``(2) Authority on non-federal land.--
``(A) In general.--In the case of an oil and gas
lease under this Act on land described in subparagraph
(B) located within an oil and gas drilling or spacing
unit, nothing in this Act authorizes the Secretary of
the Interior to--
``(i) require a bond to protect non-Federal
land;
``(ii) enter non-Federal land without the
consent of the applicable landowner;
``(iii) impose mitigation requirements; or
``(iv) require approval for surface
reclamation.
``(B) Land.--Land referred to in subparagraph (A)
is land where--
``(i) the Federal Government--
``(I) owns less than 50 percent of
the minerals within the oil and gas
drilling or spacing unit; and
``(II) does not own or lease the
surface estate within the area directly
impacted by the action;
``(ii) the well is located on non-Federal
land overlying a non-Federal mineral estate,
but some portion of the wellbore enters and
produces from the Federal mineral estate
subject to the lease; or
``(iii) the well is located on non-Federal
land overlying a non-Federal mineral estate,
but some portion of the wellbore traverses but
does not produce from the Federal mineral
estate subject to the lease.
``(C) No federal action.--An oil and gas
exploration or production activity carried out under a
lease described in subparagraph (A)--
``(i) shall require no Federal action; and
``(ii) may commence 30 days after the
leaseholder submits the State permit to the
Secretary.''.
SEC. 80105. REINSTATE REASONABLE ROYALTY RATES.
(a) Offshore Oil and Gas Royalty Rate.--Section 8(a)(1) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) is amended--
(1) in subparagraph (A), by striking ``not less than 16\2/
3\ percent, but not more than 18\3/4\ percent, during the 10-
year period beginning on the date of enactment of the Act
titled `An Act to provide for reconciliation pursuant to title
II of S. Con. Res. 14', and not less than 16\2/3\ percent
thereafter,'' and inserting ``not less than 12.5 percent, but
not more than 18\3/4\ percent,'';
(2) in subparagraph (C), by striking ``not less than 16\2/
3\ percent, but not more than 18\3/4\ percent, during the 10-
year period beginning on the date of enactment of the Act
titled `An Act to provide for reconciliation pursuant to title
II of S. Con. Res. 14', and not less than 16\2/3\ percent
thereafter,'' and inserting ``not less than 12.5 percent, but
not more than 18\3/4\ percent,'';
(3) in subparagraph (F), by striking ``not less than 16\2/
3\ percent, but not more than 18\3/4\ percent, during the 10-
year period beginning on the date of enactment of the Act
titled `An Act to provide for reconciliation pursuant to title
II of S. Con. Res. 14', and not less than 16\2/3\ percent
thereafter,'' and inserting ``not less than 12.5 percent, but
not more than 18\3/4\ percent,''; and
(4) in subparagraph (H), by striking ``not less than 16\2/
3\ percent, but not more than 18\3/4\ percent, during the 10-
year period beginning on the date of enactment of the Act
titled `An Act to provide for reconciliation pursuant to title
II of S. Con. Res. 14', and not less than 16\2/3\ percent
thereafter,'' and inserting ``not less than 12.5 percent, but
not more than 18\3/4\ percent,''.
(b) Onshore Oil and Gas Royalty Rates.--Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended--
(1) in subsection (b)--
(A) in paragraph (1)(A), by striking ``the Act
titled `An Act to provide for reconciliation pursuant
to title II of S. Con. Res. 14', 16\2/3\'' and
inserting ``subsection (s), 12.5''; and
(B) in paragraph (2)(A)(ii), by striking ``16\2/3\
percent'' and inserting ``16\2/3\ percent or, in the
case of a lease issued on or after the date of
enactment of subsection (s), 12.5 percent'';
(2) in subsection (l), by striking ``16\2/3\ percent'' each
place it appears and inserting ``16\2/3\ percent or, in the
case of a lease issued on or after the date of enactment of
subsection (s), 12.5 percent''; and
(3) in subsection (n)(1)(C), by striking ``16\2/3\
percent'' and inserting ``16\2/3\ percent or, in the case of a
lease issued on or after the date of enactment of subsection
(s), 12.5 percent''.
PART II--GEOTHERMAL
SEC. 80111. GEOTHERMAL LEASING.
Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C.
1003(b)) is amended--
(1) in paragraph (2), by striking ``2 years'' and inserting
``year''; and
(2) by adding at the end the following:
``(5) Replacement sales.--If a lease sale under paragraph
(2) for a year is canceled or delayed, the Secretary of the
Interior shall conduct a replacement sale during the same year.
``(6) Requirement.--In conducting a lease sale under
paragraph (2) in a State described in that paragraph, the
Secretary of the Interior shall offer all nominated parcels
eligible for geothermal development and utilization under a
land use plan developed or revised under section 202 of the
Federal Land Policy and Management Act of 1976 that is in
effect for the State.''.
SEC. 80112. GEOTHERMAL ROYALTIES.
Section 5(a)(1) of the Geothermal Steam Act of 1970 (30 U.S.C.
1004(a)(1)) is amended--
(1) in subparagraph (A)--
(A) by inserting ``with respect to each electric
generating facility producing electricity,'' before
``not less than''; and
(B) by inserting by ``by such facility'' after
``produced''; and
(2) in subparagraph (B)--
(A) by inserting ``with respect to each electric
generating facility producing electricity,'' before
``not less than''; and
(B) by inserting by ``by such facility'' after
``produced''.
PART III--ALASKA
SEC. 80121. COASTAL PLAIN OIL AND GAS LEASING.
(a) Definitions.--In this section:
(1) Coastal plain.--The term ``Coastal Plain'' has the
meaning given the term in section 20001(a) of Public Law 115-97
(16 U.S.C. 3143 note).
(2) Oil and gas program.--The term ``oil and gas program''
means the oil and gas program established under section
20001(b)(2) of Public Law 115-97 (16 U.S.C. 3143 note).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Administration.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall--
(1) withdraw--
(A) the supplemental environmental impact statement
described in the notice of availability of the Bureau
of Land Management entitled ``Notice of Availability of
the Final Coastal Plain Oil and Gas Leasing Program
Supplemental Environmental Impact Statement, Alaska''
(89 Fed. Reg. 88805 (November 8, 2024)); and
(B) the record of decision described in the notice
of availability of the Bureau of Land Management
entitled ``Notice of Availability of the Record of
Decision for the Final Supplemental Environmental
Impact Statement for the Coastal Plain Oil and Gas
Leasing Program, Alaska'' (89 Fed. Reg. 101042
(December 13, 2024)); and
(2) reinstate--
(A) the environmental impact statement described in
the notice of availability of the Bureau of Land
Management entitled ``Notice of Availability of the
Final Environmental Impact Statement for the Coastal
Plain Oil and Gas Leasing Program, Alaska'' (84 Fed.
Reg. 50472 (September 25, 2019)); and
(B) the record of decision described in the notice
of availability of the Bureau of Land Management
entitled ``Notice of Availability of the Record of
Decision for the Final Environmental Impact Statement
for the Coastal Plain Oil and Gas Leasing Program,
Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)).
(c) Reissuance of Cancelled Leases.--
(1) Acceptance of bids.--Not later than 30 days after the
date of enactment of this Act, the Secretary shall, without
modification or delay--
(A) accept the highest valid bid for each Coastal
Plain lease tract for which a valid bid was received on
January 6, 2021, pursuant to the requirement to hold
the first lease sale under section 20001(c)(1)(A) of
Public Law 115-97 (16 U.S.C. 3143 note); and
(B) provide the appropriate lease form to each
successful bidder under subparagraph (A) to execute and
return to the Secretary.
(2) Lease issuance.--On receipt of an executed lease form
under paragraph (1)(B) and payment in accordance with that
lease of the rental for the first year, the balance of the
bonus bid (unless deferred), and any required bond or security
from the successful bidder, the Secretary shall promptly issue
to the successful bidder a fully executed lease, in accordance
with--
(A) the applicable regulations, as in effect on
January 6, 2021; and
(B) the terms and conditions of the record of
decision described in subsection (b)(2)(B).
(3) Terms and conditions.--Leases reissued pursuant to this
subsection shall include the terms and conditions from the
record of decision described in the notice of availability of
the Bureau of Land Management entitled ``Notice of Availability
of the Record of Decision for the Final Environmental Impact
Statement for the Coastal Plain Oil and Gas Leasing Program,
Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)).
(4) Exception.--This subsection shall not apply to any bid
for which a lease was issued and subsequently relinquished by
the successful bidder prior to the date of enactment of this
Act.
(d) Lease Sales Required.--
(1) In general.--Subject to paragraph (2), in addition to
the lease sales required under section 20001(c)(1)(A) of Public
Law 115-97 (16 U.S.C. 3143 note), the Secretary shall conduct
not fewer than 4 lease sales area-wide under the oil and gas
program by not later than 10 years after the date of the
enactment of this Act.
(2) Sale acreages; schedule.--The Secretary shall offer--
(A) an initial lease sale under paragraph (1) not
later than 1 year after the date of the enactment of
this Act;
(B) a second lease sale under paragraph (1) not
later than 3 years after the date of the enactment of
this Act;
(C) a third lease sale under paragraph (1) not
later than 5 years after the date of the enactment of
this Act;
(D) a fourth lease sale under paragraph (1) not
later than 7 years after the date of the enactment of
this Act; and
(E)(i) not fewer than 400,000 acres area-wide in
each lease sale, including those areas that have the
highest potential for the discovery of hydrocarbons; or
(ii) the total number of unleased acres subject to
the provisions of this section if that total number of
available acres is less than 400,000 acres.
(3) Rights-of-way.--The Secretary shall issue any rights-
of-way, easements, authorizations, permits, verifications,
extensions, biological opinions, incidental take statements,
and any other approvals across the Coastal Plain to facilitate
the exploration, development, production, or transportation of
oil or gas under a lease issued under a lease sale conducted
under this subsection or reissued pursuant to subsection (c).
(4) Leasing certainty.--The rights-of-way, easements,
authorizations, permits, verifications, extensions, biological
opinions, incidental take statements, and any other approvals
or orders described in paragraph (3) and the record of decision
described in subsection (b)(2)(B) shall be considered to
satisfy the requirements of--
(A) the Alaska National Interest Lands Conservation
Act;
(B) the National Environmental Policy Act of 1969;
(C) Public Law 115-97;
(D) the Endangered Species Act of 1973;
(E) subchapter II of chapter 5 of title 5, United
States Code, and chapter 7 of title 5, United States
Code; and
(F) the Marine Mammal Protection Act of 1972.
(e) Lease Issuance.--Leases shall be reissued or issued under
subsections (c) and (d)--
(1) not later than 60 days after payment by the successful
bidder of the remainder of the bonus bid, if any, and the
annual rental for the first lease year;
(2) in accordance with the applicable regulations, as in
effect on January 6, 2021; and
(3) in accordance with the terms and conditions from the
record of decision described in the notice of availability of
the Bureau of Land Management entitled ``Notice of Availability
of the Record of Decision for the Final Environmental Impact
Statement for the Coastal Plain Oil and Gas Leasing Program,
Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)).
(f) Geophysical Surveys.--Not later than 30 days after the date on
which the Secretary receives a complete application pursuant to section
3152.1 of title 43, Code of Federal Regulations (or any successor
regulations), to conduct oil and gas geophysical exploration operations
in the Coastal Plain, the Secretary shall approve such application.
(g) Receipts.--Notwithstanding section 35 of the Mineral Leasing
Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law 115-97 (16
U.S.C. 668dd note), of the amount of adjusted bonus, rental, and
royalty receipts derived from the oil and gas program and operations on
the Coastal Plain pursuant to this section--
(1)(A) for fiscal years 2025 through 2034, 50 percent shall
be paid to the State of Alaska; and
(B) for fiscal year 2035 and thereafter, 90 percent shall
be paid to the State of Alaska; and
(2) the balance shall be deposited into the Treasury as
miscellaneous receipts.
(h) Judicial Preclusion.--
(1) In general.--Except as provided in paragraph (2), no
court shall have jurisdiction to review any action taken by the
Secretary, the Administrator of the Environmental Protection
Agency, a State or municipal government administrative agency,
or any other Federal agency (acting pursuant to Federal law)
to--
(A) reissue a lease pursuant to subsection (c) or
issue a lease under a lease sale conducted under
subsection (d); or
(B) grant or issue a right-of-way, easement,
authorization, permit, verification, biological
opinion, incidental take statement, or other approval
for a lease reissued pursuant to subsection (c) or
issued under a lease sale conducted under subsection
(d), whether reissued or issued prior to, on, or after
the date of the enactment of this Act, and including
any lawsuit or any other action pending in a court as
of the date of enactment of this Act.
(2) Petition by leaseholder.--
(A) In general.--A leaseholder or the State of
Alaska may obtain a review of an alleged failure by the
Secretary to act in accordance with this section or
with any law pertaining to granting or issuing a lease,
right-of-way, easement, authorization, permit,
verification, biological opinion, incidental take
statement, or other approval related to a lease under
this section by filing a written petition with a court
of competent jurisdiction seeking an order.
(B) Deadlines.--If a court of competent
jurisdiction finds pursuant to subparagraph (A) that an
agency has failed to act in accordance with this
section or with any law pertaining to granting or
issuing a lease, right-of-way, easement, authorization,
permit, verification, biological opinion, incidental
take statement, or other approval related to a lease
under this section, the court shall set a schedule and
deadline for the agency to act as soon as practicable,
which shall not exceed 90 days from the date on which
the order of the court is issued, unless the court
determines a longer time period is necessary to comply
with applicable law.
SEC. 80122. NATIONAL PETROLEUM RESERVE-ALASKA.
(a) Restoration of NPR-A Oil and Gas Program.--Effective beginning
on the date of enactment of this Act, the Secretary shall--
(1) expeditiously restore and resume the Program for
domestic energy production to generate Federal revenue, subject
to the requirements of section 107 of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6506a); and
(2) cease to implement, administer, or enforce the
regulations contained in part 2360 of title 43, Code of Federal
Regulations (as in effect on the date of the enactment of this
Act).
(3) Definitions.--In this subsection:
(A) 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).
(B) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
(b) Purpose.--The Naval Petroleum Reserves Production Act of 1976
is amended by inserting before section 101 (42 U.S.C. 6501) the
following:
``SEC. 1. PURPOSE.
``The purpose of this Act is to require and facilitate a leasing
program in the National Petroleum Reserve in Alaska for the expeditious
exploration, development, and production of petroleum to meet the
energy needs of the Nation and the world. In order to accomplish this
purpose, the Secretary shall, in consultation with the State of Alaska
and the North Slope Borough, Alaska, expedite administration of the
Program for domestic energy production and Federal revenue as
prescribed in section 107(d) of the Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6506a(d)).''.
(c) Required Lease Sales.--Section 107(d) of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6506a(d)) is amended--
(1) by striking ``First Lease Sale.--The first lease'' and
inserting ``Required Lease Sales.--
``(1) First lease sale.--The first lease''; and
(2) by adding at the end the following:
``(2) Subsequent lease sales.--
``(A) In general.--Subject to subparagraph (B),
beginning in the first full calendar year after the
date of enactment of this paragraph, the Secretary
shall conduct an oil and gas lease sale in the reserve
not less frequently than once every two years.
``(B) Acreages.--The Secretary shall offer not
fewer than 4,000,000 acres in each lease sale conducted
under subparagraph (A).
``(C) Terms and stipulations for npr-a lease
sales.--In conducting lease sales under this paragraph,
the Secretary shall offer the same lease form as lease
form AK-3130-1 (March 2018) and the same lease terms,
economic conditions, and stipulations as described in
the NPR-A record of decision published by the Bureau of
Land Management entitled `National Petroleum Reserve in
Alaska Integrated Activity Plan Record of Decision'
(December 2020).''.
(d) Receipts.--Section 107(l) of the Naval Petroleum Reserves
Production Act of 1976 (42 U.S.C. 6506a(l)) is amended--
(1) by striking ``All receipts from'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), all
receipts from''; and
(2) by adding at the end the following:
``(2) Percent share for fiscal year 2035 and thereafter.--
Beginning in fiscal year 2035, of the receipts described in
paragraph (1)--
``(A) 90 percent shall be paid to the State of
Alaska; and
``(B) 10 percent shall be paid into the Treasury of
the United States.''.
(e) Facilitation.--Section 107(n)(2) of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6506a(n)(2)) is amended to
read as follows:
``(2) Subsequent lease sales.--The detailed environmental
study and assessments that have been conducted and identified
in the document titled `Notice of Availability of the National
Petroleum Reserve in Alaska Integrated Activity Plan Final
Environmental Impact Statement' (85 Fed. Reg. 38388 (June 26,
2020)) are deemed to fulfill the requirements of the National
Environmental Policy Act of 1969 with regard to the oil and gas
lease sales required by subsection (d)(2).''.
(f) Geophysical Surveys; Judicial Preclusion.--Section 107 of the
Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a) is
amended by adding at the end the following:
``(q) Geophysical Surveys.--Not later than 30 days after the date
on which the Secretary of the Interior receives a complete application
pursuant to section 3152.1 of title 43, Code of Federal Regulations (or
any successor regulations), to conduct oil and gas geophysical
exploration operations in the National Petroleum Reserve in Alaska, the
Secretary of the Interior shall approve such application.
``(r) Judicial Preclusion.--
``(1) In general.--Except as provided in paragraph (2), no
court shall have jurisdiction to review any action taken by the
Secretary of the Interior, a State or municipal government
administrative agency, or any other Federal agency (acting
pursuant to Federal law) to grant or issue a right-of-way,
easement, authorization, permit, verification, biological
opinion, incidental take statement, or other approval for a
lease issued under this Act, whether issued prior to, on, or
after the date of the enactment of this subsection, and
including any lawsuit or any other action pending in a court as
of the date of enactment of this subsection.
``(2) Petition by leaseholder.--
``(A) In general.--A leaseholder or the State of
Alaska may obtain a review of an alleged failure by the
Secretary of the Interior to act in accordance with
this Act by filing a written petition with a court of
competent jurisdiction seeking an order.
``(B) Deadlines.--If a court of competent
jurisdiction finds pursuant to subparagraph (A) that an
agency has failed to act in accordance with this Act,
the court shall set a schedule and deadline for the
agency to act as soon as practicable, which shall not
exceed 90 days from the date on which the order of the
court is issued, unless the court determines a longer
time period is necessary to comply with applicable
law.''.
PART IV--MINING
SEC. 80131. SUPERIOR NATIONAL FOREST LANDS IN MINNESOTA.
(a) Rescission.--The Public Land Order of the Bureau of Land
Management titled ``Public Land Order No. 7917 for Withdrawal of
Federal Lands; Cook, Lake, and Saint Louis Counties, MN'' (88 Fed. Reg.
6308; published January 31, 2023) is hereby rescinded and shall have no
force or effect.
(b) Reinstatement, Issuance, and Modification of Certain Hardrock
Mineral Leases.--
(1) Reinstatement and term modification.--
(A) Reinstatement.--Notwithstanding Reorganization
Plan No. 3 of 1946 (5 U.S.C. App.), section 2478 of the
Revised Statutes (43 U.S.C. 1457c), the Act of June 30,
1950 (64 Stat. 311; 16 U.S.C. 508b), and the Act of
March 4, 1917 (39 Stat. 1150; 16 U.S.C. 520), and not
later than 5 calendar days after the date of the
enactment of this section, the Secretary shall
reinstate each covered lease.
(B) Lease term.--Upon reinstatement of each covered
lease under subparagraph (A)--
(i) each covered lease shall have an
initial term of 20 years from the date of such
reinstatement and a right to successive
renewals in accordance with paragraph (4);
(ii) the Secretary shall toll the initial
term of a covered lease during any period in
which permitting activities of the covered
lease are delayed by legal or administrative
proceedings not initiated by the holder of the
covered lease; and
(iii) the Secretary shall extend the
initial term of a covered lease by a period
equal to any tolling period under clause (ii).
(C) Applicable terms.--Except as modified by this
section, all terms and conditions of each covered lease
shall be in accordance with the original terms of the
covered lease.
(2) Revenue provisions.--
(A) Reinstatement fee.--Upon reinstatement of each
covered lease under paragraph (1)(A), the holder of a
covered lease shall pay to the Secretary a one-time fee
of $100 per acre of the covered lease.
(B) Supplemental rental.--In addition to the rental
payment specified in the reinstated covered lease, the
holder of a covered lease shall pay to the Secretary an
annual supplemental rental of $10 per acre of the
covered lease during years 6 through 10 of the initial
term of the covered lease.
(C) Revenue allocation.--All revenues collected
under this paragraph shall be deposited in the Treasury
as miscellaneous receipts.
(3) Grant of preference right hardrock mineral lease.--
(A) Congressional grant.--Notwithstanding
Reorganization Plan No. 3 of 1946 (5 U.S.C. App.),
section 2478 of the Revised Statutes (43 U.S.C. 1457c),
the Act of June 30, 1950 (64 Stat. 311; 16 U.S.C.
508b), and the Act of March 4, 1917 (39 Stat. 1150; 16
U.S.C. 520), and in recognition of the valid existing
rights created through the finding of a valuable
mineral deposit as determined by the issuance of a
Notice of Preliminary Valuable Deposit Determination
from the Bureau of Land Management, Congress hereby
grants to any holder of a Notice of Preliminary
Valuable Deposit Determination issued between January
20, 2017, and January 20, 2021, a preference right
hardrock mineral lease subject to the terms described
in this paragraph.
(B) Lease terms.--Each preference right hardrock
mineral lease granted under subparagraph (A) shall--
(i) have an initial term of 20 years from
the date of such grant and a right to
successive renewals in accordance with
paragraph (4);
(ii) except as provided in clause (iv), be
subject to the same terms and conditions as
adjacent covered leases, as modified by this
section;
(iii) be deemed part of the unified mining
operation with adjacent covered leases for
purposes of mine planning and operations; and
(iv) not be required to meet the diligence
requirements of adjacent covered leases until
the date on which the first term of the
preference right hardrock mineral lease after
the lease is renewed under paragraph (4)
begins.
(C) Revenue provisions.--
(i) In general.--Upon the grant of each
preference right hardrock mineral lease under
subparagraph (A), the holder of each lease
shall pay to the Secretary--
(I) a one-time issuance fee of $250
per acre of the preference right
hardrock mineral lease;
(II) an annual rental payment of $1
per acre of the preference right
hardrock mineral lease per year; and
(III) a production royalty in
accordance with the terms and
conditions described in subparagraph
(B)(ii).
(ii) Deposit of amounts.--Amounts collected
under this subparagraph shall be deposited in
the Treasury as miscellaneous receipts.
(4) Renewal provisions.--
(A) Renewal qualification.--If, during the last 2
years of each initial or renewal term of a lease
reinstated, granted, or renewed under this subsection,
the holder of the lease requests renewal, the Secretary
shall renew the lease in accordance with this
paragraph.
(B) Renewal process.--
(i) In general.--Not later than 90 days
before the date on which the term of a lease
for which the holder of the lease requests
renewal under subparagraph (A) ends, the holder
of the lease shall pay to the Secretary a
renewal fee of $100 per acre of the lease.
(ii) Renewal required.--Upon receipt of a
renewal request under subparagraph (A) and the
renewal fee required under clause (i) of this
subparagraph, the Secretary shall renew the
lease that is the subject of the renewal
request for an additional 10-year term.
(C) Renewal conditions.--
(i) In general.--
(I) Mine plan of operations not
required during initial term.--Approval
of a mine plan of operations is not
required during the initial term of a
lease reinstated or granted under this
subsection.
(II) Minimum production
requirements.--Minimum production
requirements as described in adjacent
covered leases shall begin with respect
to a lease reinstated or granted under
this subsection on the date that is 5
years after the approval of a mine plan
of operations for such lease.
(ii) Annual rental payments.--The annual
rental payment for a lease renewed under this
subsection shall be $2 per acre more than the
annual rental payment of such lease during the
preceding term of such lease.
(5) Judicial review.--
(A) In general.--The reinstatement, modification,
or grant of a lease, or a combination thereof, under
this section is not subject to judicial review.
(B) Exception.--Notwithstanding subparagraph (A),
the holder of a lease reinstated, modified, or granted
under this subsection may seek review of an alleged
failure by the Secretary to act in accordance with this
section.
(6) Definitions.--In this section:
(A) Covered lease.--The term ``covered lease''
means a hardrock mineral lease--
(i) located within the Superior National
Forest in the State of Minnesota;
(ii) issued or renewed in between January
20, 2017, and January 19, 2021; and
(iii) cancelled or otherwise rescinded
between January 20, 2021, and January 20, 2025.
(B) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.
SEC. 80132. AMBLER ROAD IN ALASKA.
(a) ANILCA.--Section 201(4)(b) of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 410hh(4)(b)) is amended by adding at
the end ``In accordance with the provisions of this subsection, each
Federal agency shall approve each authorization within its jurisdiction
with respect to the surface transportation corridor and each such
Federal agency shall promptly issue, in accordance with applicable law,
such rights-of-way, permits, licenses, leases, certificates, or other
authorizations as are necessary with respect to the establishment of
the surface transportation corridor, including the Secretary, who shall
permit such access across all Federal land and public lands, including
across the Western (Kobuk River) unit of the Gates of the Arctic
National Preserve administered by the National Park Service and the
Central Yukon Planning Area administered by the Bureau of Land
Management. Each such authorization shall be deemed to satisfy all
requirements of all applicable Federal law and shall not be subject to
judicial review.''''.
(b) Reinstatement of Joint Record of Decision.--Not later than 90
days after the date of the enactment of this subtitle, the Secretary
shall--
(1) rescind the record of decision published by the Bureau
of Land Management titled ``Ambler Road Supplemental
Environmental Impact Statement'' (June 2024);
(2) reinstate, as amended if the Secretary determines
necessary, and publish in the Federal Register the Joint Record
of Decision, which selected Alternative A as the preferred
alternative; and
(3) issue to the Applicant all Federal rights-of-way on
Federal land and public lands, and any associated permits,
approvals, or other authorizations, as necessary to implement
the Joint Record of Decision published under paragraph (2).
(c) Rental Payments.--The rental fee paid by the Applicant to the
Bureau of Land Management for a right-of-way issued pursuant to
subsection (b)(3) shall be $500,000 for each of fiscal years 2025
through 2034.
(d) Receipts.--Receipts derived from adjusted rental receipts under
subsection (c) shall be deposited into the Treasury as miscellaneous
receipts.
(e) Judicial Review.--
(1) In general.--An action taken by the Secretary pursuant
to this section is not subject to judicial review.
(2) Exception.--Notwithstanding paragraph (1), the
Applicant may seek review of an alleged failure by the
Secretary to act in accordance with this section.
(f) Definitions.--In this section:
(1) Alternative a.--The term ``Alternative A'' means
Alternative A as described in ``Section 2 (Alternatives)'' of
the document titled ``Ambler Road Environmental Impact
Statement, Final, Volume 1: Chapters 1-3, Appendices A-F)
(March 2020)''.
(2) Applicant.--The term ``Applicant'' has the meaning
given the term in the document titled ``Ambler Road
Environmental Impact Statement, Final, Volume 1: Chapters 1-3,
Appendices A-F) (March 2020)''.
(3) Federal land.--The term ``Federal land'' has the
meaning given such term in section 102 of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3102).
(4) Joint record of decision.--The term ``Joint Record of
Decision'' means the Joint Record of Decision as described in
the document titled ``Ambler Road Environmental Impact
Statement Joint Record of Decision (July 2020)''.
(5) Public lands.--The term ``public lands'' has the
meaning given such term in section 102 of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3102).
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
PART V--COAL
SEC. 80141. COAL LEASING.
(a) Mandatory Leasing and Other Required Approvals.--Not later than
90 days after the date of enactment of this Act in the case of a
pending application, or not later than 90 days after the date of
submission in the case of an application submitted after the date of
the enactment of this Act, the Secretary of the Interior shall--
(1) with respect to each qualified application--
(A) if not previously published for public comment,
publish any required environmental review;
(B) finalize the fair market value of the
applicable coal tract;
(C) hold a lease sale with respect to the
applicable coal tract;
(D) take all other intermediate actions necessary
to grant the qualified application; and
(E) after completing the actions required by
subparagraphs (A) through (D), grant the qualified
application and issue the applicable lease to the
person that submitted the qualified application if that
person submitted the highest bid in the lease sale held
under subparagraph (C); and
(2) with respect to previously issued coal leases, grant
any additional approvals of the Department of the Interior
required for mining activities to commence.
(b) Leases for Known Recoverable Coal Resources.--Notwithstanding
section 2(a)(3)(A) of the Mineral Leasing Act (30 U.S.C. 201(a)(3)(A))
and section 202 of the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1712), not later than 90 days after the date of enactment of
this Act, the Secretary of the Interior shall make available for lease
known recoverable coal resources of not less than 4,000,000 additional
acres on Federal land west of the 100th meridian located in the 48
contiguous States and Alaska, but which shall not include any Federal
land within--
(1) a National Monument;
(2) a National Recreation Area;
(3) a component of the National Wilderness Preservation
System;
(4) a component of the National Wild and Scenic Rivers
System;
(5) a component of the National Trails System;
(6) a National Conservation Area;
(7) a unit of the National Wildlife Refuge System;
(8) a unit of the National Fish Hatchery System;
(9) a unit of the National Park System;
(10) a National Preserve;
(11) a National Seashore or National Lakeshore;
(12) a National Historic Site;
(13) a National Memorial;
(14) a National Battlefield, National Battlefield Park,
National Battlefield Site, or National Military Park; or
(15) a National Historical Park.
(c) Definitions.--In this section:
(1) Coal lease.--The term ``coal lease'' means a lease
entered into by the United States as lessor, through the Bureau
of Land Management, and an applicant on Bureau of Land
Management Form 3400-012, or a successor form that contains
terms of a coal lease.
(2) Qualified application.--The term ``qualified
application'' means an application for a coal lease pending as
of the date of enactment of this Act or submitted within 90
days thereafter under the lease by application program
administered by the Bureau of Land Management pursuant to the
Mineral Leasing Act.
SEC. 80142. FUTURE COAL LEASING.
Secretarial Order 3338, issued by the Secretary of the Interior on
January 15, 2016, or any other actions limiting the Federal coal
leasing program, shall have no force or effect.
SEC. 80143. COAL ROYALTY.
(a) Rate.--Section 7(a) of the Mineral Leasing Act (30 U.S.C.
207(a)) is amended by striking ``12\1/2\ per centum'' and inserting
``12\1/2\ percent, except such amount shall be not more than 7 percent
during the period that begins on the date of enactment of subsection
(s) of section 17 and ends September 30, 2034,''.
(b) Retroactivity.--The amendment made by subsection (a) shall
apply to a coal lease--
(1) issued under section 2 of the Mineral Leasing Act (30
U.S.C. 201) before, on, or after the date of the enactment of
this subtitle; and
(2) that has not been terminated.
(c) Advance Royalties.--With respect to a lease issued under
section 2 of the Mineral Leasing Act (30 U.S.C. 201) for which the
lessee has paid advance royalties under section 7(b) of that Act (30
U.S.C. 207(b)), the Secretary of the Interior shall provide to the
lessee a credit for the difference between the amount paid by the
lessee in advance royalties for the lease before the date of the
enactment of this subtitle and the amount the lessee would have been
required to pay if the amendment made by subsection (a) had been made
before the lessee paid advance royalties for the lease.
SEC. 80144. AUTHORIZATION TO MINE FEDERAL MINERALS.
(a) In General.--All Federal coal reserves leased under Federal
Coal Lease MTM 97988 located within the covered Federal land are
authorized to be mined in accordance with the Bull Mountains Mining
Plan Modification.
(b) Definitions.--In this section:
(1) Bull mountains mining plan modification.--The term
``Bull Mountains Mining Plan Modification'' means the Mine No.
1, Amendment 3 mining plan modification for Federal coal lease
MTM 97988 described in the memorandum of the Department of the
Interior titled ``Recommendation regarding the previously
approved mining plan modification for Federal Lease MTM-97988
at Signal Peak Energy, LLC's Bull Mountains Mine No.1, located
in Musselshell and Yellowstone Counties, Montana'' (November
18, 2020).
(2) Covered federal land.--The term ``covered Federal
land'' means the following land comprising approximately 800
acres:
(A) The NE \1/4\ of sec. 8, T. 6 N., R. 27 E.,
Montana Principal Meridian.
(B) The SW \1/4\ of sec. 10, T. 6 N., R. 27 E.,
Montana Principal Meridian.
(C) The W \1/2\, SE \1/4\ of sec. 22, T. 6 N., R.
27 E., Montana Principal Meridian.
PART VI--NEPA
SEC. 80151. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS.
The National Environmental Policy Act of 1969 is amended by
inserting after section 111 (42 U.S.C. 4336e) the following:
``SEC. 112. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS.
``(a) Process.--
``(1) Project sponsor.--A project sponsor who intends to
pay a fee under this section for the preparation, or
supervision of the preparation, of an environmental assessment
or environmental impact statement with respect to the project
of the project sponsor shall submit to the Council--
``(A) a description of the project; and
``(B) a declaration of whether the project sponsor
intends to prepare the environmental assessment or
environmental impact statement under section 107(f) of
this title.
``(2) Council on environmental quality.--Not later than 15
days after the receipt of the information described in
paragraph (1), the Council shall provide to the project sponsor
that submitted such information notice of--
``(A) the relevant lead agency; and
``(B) the amount of the fee, as determined under
subsection (b).
``(3) Payment of fee.--A project sponsor may pay a fee
under this section after receipt of the notice described in
paragraph (2).
``(4) Deadline for environmental reviews for which a fee is
paid.--Notwithstanding section 107(g)(1)--
``(A) an environmental assessment for which a fee
was paid under this section shall be completed by not
later than 6 months after the sooner of, as applicable,
the dates described in clauses (i), (ii), and (iii) of
section 107(g)(1)(B); and
``(B) an environmental impact statement for which a
fee was paid under this section shall be completed by
not later than 1 year after the sooner of, as
applicable, the dates described in clauses (i), (ii),
and (iii) of section 107(g)(1)(A).
``(b) Fee Amount.--The amount of a fee under this section shall
be--
``(1) in the case of an environmental assessment or
environmental impact statement to be prepared by the lead
agency, 125 percent of the anticipated costs to prepare the
environmental assessment or environmental impact statement; and
``(2) in the case of an environmental assessment or
environmental impact statement to be prepared in whole or in
part by a project sponsor under section 107(f), 125 percent of
the anticipated costs to supervise preparation of, and (as
applicable) prepare, the environmental assessment or
environmental impact statement.
``(c) Administrative and Judicial Review.--
``(1) EA; eis.--There shall be no administrative or
judicial review of an environmental assessment or environmental
impact statement for which a fee is paid under this section.
``(2) FONSI; rod.--An action for administrative or judicial
review of a finding of no significant impact or record of
decision that is associated with an environmental assessment or
environmental impact statement described in paragraph (1) may
not challenge the finding of no significant impact or record of
decision based on an alleged issue with the environmental
assessment or environmental impact statement.
``(d) Revenue Allocation.--Fees received under this section shall
be deposited into the Treasury as miscellaneous receipts.''.
SEC. 80152. RESCISSION RELATING TO ENVIRONMENTAL AND CLIMATE DATA
COLLECTION.
The unobligated balance of any amounts made available under section
60401 of Public Law 117-169 is rescinded.
PART VII--MISCELLANEOUS
SEC. 80161. PROTEST FEES.
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is further
amended by adding at the end the following:
``(t) Protest Filing Fee.--
``(1) In general.--Before processing any protest under this
Act, the Secretary shall collect a filing fee in the amount
described in paragraph (2) from the protestor to recover the
cost for processing documents filed for the protest.
``(2) Amount.--The amount described in this paragraph is
calculated as follows:
``(A) For each protest filed in a submission not
exceeding 10 pages in length, the base filing fee shall
be $150.
``(B) For each protest filed in a submission
exceeding 10 pages in length, in addition to the base
filing fee, an assessment of $5 per page in excess of
10 pages shall apply.
``(C) For each protest filed in a submission that
includes more than one oil and gas lease parcel, right-
of-way, or application for permit to drill, an
additional assessment of $10 per additional lease
parcel, right-of-way, or application for permit to
drill shall apply.
``(3) Adjustment.--
``(A) In general.--Beginning on January 1, 2026,
and annually thereafter, the Secretary shall adjust the
filing fees established in this subsection to whole
dollar amounts to reflect changes in the Producer Price
Index, as published by the Bureau of Labor Statistics,
for the previous 12 months.
``(B) Publication of adjusted filing fees.--At
least 30 days before an adjustment to a filing fee
under this paragraph takes effect, the Secretary shall
publish notification of the adjustment in the Federal
Register.
``(4) Revenue allocation.--All revenues collected under
this paragraph shall be deposited in the Treasury as
miscellaneous receipts.''.
PART VIII--OFFSHORE OIL AND GAS LEASING
SEC. 80171. MANDATORY OFFSHORE OIL AND GAS LEASE SALES.
(a) In General.--
(1) Gulf of america.--
(A) In general.--Notwithstanding section 18 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1344), the
Secretary shall hold not fewer than 30 lease sales in
the Gulf of America during the 15-year period beginning
on the date of the enactment of this section.
(B) Location requirement.--For each lease sale held
under this paragraph, the Secretary may offer for lease
only an area identified as the Proposed Final Program
Area in Figure S-1 of the 2017-2022 Outer Continental
Shelf Oil and Gas Leasing Proposed Final Program
referenced in the notice of availability published by
the Bureau of Ocean Energy Management titled ``Notice
of Availability of the 2017-2022 Outer Continental
Shelf Oil and Gas Leasing Proposed Final Program'' (81
Fed. Reg. 84612; published November 23, 2016).
(C) Acreage requirement.--For each lease sale held
under this paragraph, the Secretary shall offer for
lease--
(i) not fewer than 80,000,000 acres; or
(ii) if there are fewer than 80,000,000
acres that are unleased, all such unleased
acres.
(D) Timing requirement.--Of the not fewer than 30
lease sales required under this paragraph, the
Secretary shall hold not fewer than 1 lease sale on or
before each of the following dates:
(i) August 15, 2025.
(ii) March 15, 2026.
(iii) August 15, 2026.
(iv) March 15, 2027.
(v) August 15, 2027.
(vi) March 15, 2028.
(vii) August 15, 2028.
(viii) March 15, 2029.
(ix) August 15, 2029.
(x) March 15, 2030.
(xi) August 15, 2030.
(xii) March 15, 2031.
(xiii) August 15, 2031.
(xiv) March 15, 2032.
(xv) August 15, 2032.
(xvi) March 15, 2033.
(xvii) August 15, 2033.
(xviii) March 15, 2034.
(xix) August 15, 2034.
(xx) March 15, 2035.
(xxi) August 15, 2035.
(xxii) March 15, 2036.
(xxiii) August 15, 2036.
(xxiv) March 15, 2037.
(xxv) August 15, 2037.
(xxvi) March 15, 2038.
(xxvii) August 15, 2038.
(xxviii) March 15, 2039.
(xxix) August 15, 2039.
(xxx) March 15, 2040.
(E) Lease terms and conditions.--
(i) In general.--For each lease sale held
under this paragraph, the Secretary shall offer
the same lease form, lease terms, economic
conditions, and stipulations 4 through 10 as
contained in the Bureau of Ocean Energy
Management final notice of sale titled ``Gulf
of Mexico Outer Continental Shelf Region-Wide
Oil and Gas Lease Sale 254'' (85 Fed. Reg.
8010; published February 12, 2020).
(ii) Update.--The Secretary is authorized
to update stipulations 1 through 3 of the final
notice of sale titled ``Gulf of Mexico Outer
Continental Shelf Region-Wide Oil and Gas Lease
Sale 254'' (85 Fed. Reg. 8010; published
February 12, 2020) to reflect current
conditions for lease sales held under this
paragraph.
(2) Cook inlet planning area.--
(A) In general.--Notwithstanding section 18 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1344), the
Secretary shall hold not fewer than 6 lease sales in
the Cook Inlet Planning Area during the 10-year period
beginning on the date of the enactment of this section.
(B) Location requirement.--For each lease sale held
under this paragraph, the Secretary may offer for lease
only an area identified in Figure S-2 of the 2017-2022
Outer Continental Shelf Oil and Gas Leasing Proposed
Final Program referenced in the notice of availability
published by the Bureau of Ocean Energy Management
titled ``Notice of Availability of the 2017-2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final
Program'' (81 Fed. Reg. 84612; published November 23,
2016).
(C) Acreage requirement.--For each lease sale held
under this paragraph, the Secretary shall offer for
lease--
(i) not fewer than 1,000,000 acres; or
(ii) if there are fewer than 1,000,000
acres that are unleased, all such unleased
acres.
(D) Timing requirement.--Of the not fewer than 6
lease sales required under this paragraph, the
Secretary shall hold not fewer than 1 lease sale on or
before each of the following dates:
(i) March 15, 2026.
(ii) March 15, 2027.
(iii) August 15, 2028.
(iv) March 15, 2030.
(v) August 15, 2031.
(vi) March 15, 2032.
(E) Lease terms and conditions.--For each lease
sale held under this paragraph, the Secretary shall
offer the same lease form, lease terms, economic
conditions, and stipulations as contained in the final
notice of sale titled ``Outer Continental Shelf Cook
Inlet, Alaska, Oil and Gas Lease Sale 244'' (82 Fed.
Reg. 23163; published May 22, 2017).
(F) Revenue sharing.--Notwithstanding section 8(g)
and 9 of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(g) and 1338), and beginning in fiscal year
2035, of the bonuses, rents, royalties, and other
revenues derived from leases issued pursuant to this
paragraph--
(i) 90 percent shall be paid to the State
of Alaska; and
(ii) 10 percent shall be deposited in the
Treasury as miscellaneous receipts.
(b) Lease Sales Held Under Proposed Final Program.--The lease sales
held under this section may be in addition to the lease sales held
under the Proposed Final Program for the 2024-2029 National Outer
Continental Shelf Oil and Gas Leasing Program referenced in the notice
of availability published by the Bureau of Ocean Energy Management
titled ``Notice of Availability of the 2024-2029 National Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program and Final
Programmatic Environmental Impact Statement'' (88 Fed. Reg. 67798;
published October 2, 2023).
(c) Other Requirements.--During the period beginning on the date of
the enactment of this section and ending on the date that is 2 years
after the date on which the last lease sale required to be held under
this section is held, with respect to each lease sale held, lease
issued, and any activity that requires a Federal authorization and is
associated with a lease issued pursuant to this title, the Outer
Continental Shelf Lands Act, or section 50264 of Public Law 117-169 in
the Gulf of America--
(1) adherence with the Biological Opinion shall satisfy the
Secretary's obligations under the Endangered Species Act of
1973 and the Marine Mammal Protection Act of 1972;
(2) the final programmatic environmental impact statement
referenced in the notice of availability titled ``Final
Programmatic Environmental Impact Statement for the 2017-2022
Outer Continental Shelf (OCS) Oil and Gas Leasing Program'' (81
Fed. Reg. 83870; published November 22, 2016), the Record of
Decision related to such final programmatic environmental
impact statement, and the final environmental impact statement
referenced in the notice of availability titled ``Final
Environmental Impact Statement for Outer Continental Shelf,
Gulf of Mexico, 2017-2022 Oil and Gas Lease Sales 249, 250,
251, 252, 253, 254, 256, 257, 259, and 261'' (82 Fed. Reg.
13363; published March 10, 2017) shall satisfy the Secretary's
obligations under the National Environmental Policy Act of 1969
and division A of subtitle III of title 54, United States Code;
and
(3) the consistency determinations prepared by the Bureau
of Ocean Energy Management under section 307 of the Coastal
Zone Management Act of 1972 (16 U.S.C. 1456) for Lease Sale 261
for the States of Texas, Louisiana, Mississippi, Alabama, and
Florida shall satisfy the Secretary's obligations under that
section (16 U.S.C. 1456).
(d) Waiver of Certain Requirements Under Outer Continental Shelf
Lands Act.--The Secretary may waive any requirement under the Outer
Continental Shelf Lands Act that the Secretary determines would delay
issuance of a lease under a lease sale held under this section.
(e) Issuance of Leases.--If the Secretary receives an acceptable
bid for an area offered in a lease sale held under this section, the
Secretary shall--
(1) in accordance with section 8 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337), accept the highest acceptable
bid for such area; and
(2) not later than 90 days after the date on which the
applicable lease sale ends, issue a lease of the area to the
highest responsible qualified bidder.
(f) Nomination of Areas for Inclusion in Lease Sale by Governor.--
(1) In general.--The Secretary shall establish a process
through which the Governor of a State may nominate for leasing
under a lease sale held under this section an area of the outer
Continental Shelf that is--
(A) adjacent to the waters of the State; and
(B) unleased and available for leasing.
(2) Inclusion of nominated area.--If under paragraph (1)
the Governor of a State nominates an area described in that
paragraph for leasing under a lease sale held under this
section, the Secretary shall include the area in the next
scheduled lease sale under subsection (a)(1)(D).
(g) Geological and Geophysical Surveys.--Not later than 30 days
after the date on which the Secretary receives a complete application
pursuant to section 551.5 of title 30, Code of Federal Regulations (as
in effect on September 22, 2015), to conduct a geological or
geophysical survey pursuant to oil and gas activities on the outer
Continental Shelf, the Secretary shall approve such application.
(h) Lease Sale 259 and Lease Sale 261 Leases.--
(1) Leasing revenue certainty.--A lease awarded under Lease
Sale 259 or Lease Sale 261, which has been fully executed by
the Secretary, shall not be set aside, vacated, enjoined,
suspended, or cancelled except in accordance with section 5 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1334).
(2) No additional terms or conditions.--The Secretary shall
not impose any additional terms or conditions on a lease
awarded under Lease Sale 259 or Lease Sale 261, which has been
fully executed by the Secretary, that were not included in the
Bureau of Ocean Energy Management final notice of sale titled
``Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale
259'' (88 Fed. Reg. 12404; published Feb. 27, 2023) or the
final notice of sale titled ``Gulf of Mexico Outer Continental
Shelf Oil and Gas Lease Sale 261'' (88 Fed. Reg. 80750;
published on Nov. 20, 2023).
(i) Judicial Review.--Section 23(c)(2) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1349(c)(2)) is amended to read as follows:
``(2) Any action of the Secretary to approve, require modification
of, or disapprove any exploration plan, development and production
plan, bidding procedure, lease sale, lease issuance, or permit or
authorization related to oil and gas exploration, development, or
production under this Act, or any inaction by the Secretary resulting
in the failure to hold a lease sale under any Federal law requiring oil
and gas lease sales on the outer Continental Shelf, shall be subject to
judicial review only in a United States court of appeals for a circuit
in which an affected State is located.''.
(j) Definitions.--In this section:
(1) Acceptable bid.--The term ``acceptable bid'' means a
bid that meets the requirements of the document published by
the Bureau of Ocean Energy Management titled ``Summary of
Procedures for Determining Bid Adequacy at Offshore Oil and Gas
Lease Sales Effective March 2016, with Central Gulf of Mexico
Sale 241 and Eastern Gulf of Mexico Sale 226''.
(2) Biological opinion.--The term ``Biological Opinion''--
(A) means the biological opinion issued by the
National Marine Fisheries Service titled ``Biological
Opinion on the Federally Regulated Oil and Gas Program
Activities in the Gulf of Mexico'' and the incidental
take statement associated with such biological opinion
(published March 12, 2020, and updated April 26, 2021);
and
(B) does not include sections 3.3.1 through 3.3.3
of such biological opinion.
(3) Lease.--The term ``lease'' means an oil and gas lease.
(4) Lease sale 259.--The term ``Lease Sale 259'' means the
lease sale held by the Bureau of Ocean Energy Management on
March 29, 2023.
(5) Lease sale 261.--The term ``Lease Sale 261'' means the
lease sale held by the Bureau of Ocean Energy Management on
December 20, 2023.
(6) Outer continental shelf.--The term ``outer Continental
Shelf'' has the meaning given such term in section 2 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1331).
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 80172. OFFSHORE COMMINGLING.
The Secretary of the Interior shall approve operator requests to
commingle production from multiple reservoirs within a single wellbore
completed on the Outer Continental Shelf of the Gulf of America unless
conclusive evidence establishes that such commingling--
(1) could not be conducted in a safe manner; or
(2) would result in the ultimate recovery from such
formations being reduced.
SEC. 80173. LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALIFIED OUTER
CONTINENTAL SHELF REVENUES.
Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006
(43 U.S.C. 1331 note) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking ``2055.'' and
inserting ``2024;''; and
(3) by adding at the end the following:
``(D) $650,000,000 for each of fiscal years 2025
through 2034; and
``(E) $500,000,000 for each of fiscal years 2035
through 2055.''.
PART IX--RENEWABLE ENERGY
SEC. 80181. RENEWABLE ENERGY FEES ON FEDERAL LANDS.
(a) Acreage Rent for Wind and Solar Rights-of-way.--
(1) In general.--Under the second sentence of section
504(g) of the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1764(g)), the Secretary shall, subject to paragraph
(3) and not later than January 1 of each calendar year, collect
from the holder of a right-of-way for a renewable energy
project an acreage rent in an amount based on the equation
described in paragraph (2).
(2) Calculation of acreage rent rate.--
(A) Equation.--The amount of an acreage rent
collected under paragraph (1) shall be determined using
the following equation: Acreage rent = A x B x ((1
+ C)\D\)).
(B) Definitions.--For purposes of subparagraph (A):
(i) The letter ``A'' means the Per-Acre
Rate.
(ii) The letter ``B'' means the Encumbrance
Factor.
(iii) The letter ``C'' means the Annual
Adjustment Factor.
(iv) The letter ``D'' means the year in the
term of the right-of-way.
(3) Payment until production.--The holder of a right-of-way
for a renewable energy project shall pay an acreage rent
collected under paragraph (1) until the date on which energy
generation begins.
(b) Capacity Fees.--
(1) In general.--The Secretary shall, subject to paragraph
(2), annually collect a capacity fee from the holder of a
right-of-way for a renewable energy project based on the amount
described in paragraph (2).
(2) Calculation of capacity fee.--The amount of a capacity
fee collected under paragraph (1) shall be equal to the greater
of--
(A) an amount equal to the acreage rent described
in subsection (a); and
(B) 4.58 percent of the gross proceeds from the
sale of electricity produced by the renewable energy
project.
(3) Multiple-use reduction factor.--
(A) Application.--The holder of a right-of-way for
a wind energy generation project may request that the
Secretary apply a 10-percent Multiple-Use Reduction
Factor to the amount of a capacity fee determined under
paragraph (2) by submitting to the Secretary an
application for approval.
(B) Approval.--The Secretary may approve an
application submitted under subparagraph (A) if not
less than 25 percent of the land within the area of the
right-of-way is authorized for use, occupancy, or
development with respect to an activity other than the
generation of wind energy for the entirety of the year
in which the capacity fee is collected.
(C) Late determination.--If the Secretary approves
an application under subparagraph (B) for a wind energy
generation project after the date on which the holder
of the right-of-way for the project begins paying a
capacity fee, the Secretary shall apply the Multiple-
Use Reduction Factor to the capacity fee in the
following years. Under this subparagraph, the Secretary
may not refund the holder of a right-of-way for the
difference in the amount of a capacity fee paid in a
previous year.
(c) Late Payment Fee; Termination.--
(1) In general.--The Secretary may charge the holder of a
right-of-way for a renewable energy project a late payment fee
if the Secretary does not receive payment for the acreage rent
under subsection (a) or the capacity fee under subsection (b)
by the date that is 15 days after the date on which the payment
was due.
(2) Termination of right-of-way.--The Secretary may
terminate a right-of-way for a renewable energy project if the
Secretary does not receive payment for the acreage rent under
subsection (a) or the capacity fee under subsection (b) by the
date that is 90 days after the date on which the payment was
due.
(d) Revenue Accuracy, Transparency, and Accountability.--The
Secretary shall document, verify, and make publicly available the
respective amount of wind and solar energy revenues collected under
this section on the Department of the Interior's Natural Resources
Revenue Data website.
(e) Ensuring Fee Certainty.--Section 3103 of the Energy Act of 2020
(43 U.S.C. 3003) is repealed.
(f) Definitions.--In this section:
(1) Annual adjustment factor.--The term ``Annual Adjustment
Factor'' means 3 percent.
(2) Encumbrance factor.--The term ``Encumbrance Factor''
means--
(A) 100 percent for solar energy generation
facilities; and
(B) 10 percent for wind energy generation
facilities.
(3) Per-acre rate.--The term ``Per-Acre Rate'' means the
average of per-acre pastureland rental rates published in the
Cash Rents Survey by the National Agricultural Statistics
Service for the State in which the right-of-way is located over
the 5 calendar-year period preceding the issuance or renewal of
the right-of-way.
(4) Project.--The term ``project'' means a system described
in section 2801.9(a)(4) of title 43, Code of Federal
Regulations (as such section is in effect on the date of the
enactment of this Act).
(5) Public lands.--The term ``public lands'' means--
(A) public lands as such term is defined in section
103 of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1702); and
(B) the lands of the National Forest System as
described in section 11(a) of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C.
1609(a)).
(6) Renewable energy project.--The term ``renewable energy
project'' means a project located on public lands that uses
wind or solar energy to generate energy.
(7) Right-of-way.--The term ``right-of-way'' has the
meaning given such term in section 103 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1702).
(8) Secretary.--The term ``Secretary'' means--
(A) the Secretary of the Interior with respect to
land controlled or administered by the Secretary of the
Interior; or
(B) the Secretary of Agriculture with respect to
the lands of the National Forest System controlled or
administered by the Secretary of Agriculture.
SEC. 80182. RENEWABLE ENERGY REVENUE SHARING.
(a) Disposition of Revenue.--
(1) Disposition of revenues.--Beginning on January 1, 2026,
the amounts collected from a renewable energy project as bonus
bids, rentals, fees, or other payments under a right-of-way,
permit, lease, or other authorization shall be--
(A) deposited in the general fund of the Treasury;
and
(B) without further appropriation or fiscal year
limitation, allocated as follows:
(i) 25 percent shall be paid from amounts
in the general fund of the Treasury to the
State within the boundaries of which the
revenue is derived.
(ii) 25 percent shall be paid from amounts
in the general fund of the Treasury to each
county within the boundaries of which the
revenue is derived, to be allocated among each
such county based on the percentage of land
from which the revenue is derived.
(2) Payments to states and counties.--
(A) In general.--The amounts paid to States and
counties under paragraph (1) shall be used consistent
with section 35 of the Mineral Leasing Act (30 U.S.C.
191).
(B) Payments in lieu of taxes.--A payment to a
county under paragraph (1) shall be in addition to a
payment in lieu of taxes received by the county under
chapter 69 of title 31, United States Code.
(C) Timing.--The amounts required to be paid under
paragraph (1)(B) for an applicable fiscal year shall be
made available not later than the fiscal year that
immediately follows the fiscal year for which the
amounts were collected.
(b) Definitions.--In this section:
(1) Covered land.--The term ``covered land'' means land
that is--
(A) public lands administered by the Secretary; and
(B) not excluded from the development of solar or
wind energy under--
(i) a land use plan; or
(ii) other Federal law.
(2) Public lands.--The term ``public lands'' means--
(A) public lands as such term is defined in section
103 of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1702); and
(B) lands of the National Forest System as
described in section 11(a) of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C.
1609(a)).
(3) Renewable energy project.--The term ``renewable energy
project'' means a system described in section 2801.9(a)(4) of
title 43, Code of Federal Regulations (as such section is in
effect on the date of the enactment of this Act), located on
covered land that uses wind or solar energy to generate energy.
(4) Secretary.--The term ``Secretary'' means--
(A) the Secretary of the Interior with respect to
land controlled or administered by the Secretary of the
Interior; or
(B) the Secretary of Agriculture with respect to
the lands of the National Forest System controlled or
administered by the Secretary of Agriculture.
Subtitle B--Water, Wildlife, and Fisheries
SEC. 80201. RESCISSION OF FUNDS FOR INVESTING IN COASTAL COMMUNITIES
AND CLIMATE RESILIENCE.
There is hereby rescinded the unobligated balance of funds made
available by section 40001 of Public Law 117-169.
SEC. 80202. RESCISSION OF FUNDS FOR FACILITIES OF NATIONAL OCEANIC AND
ATMOSPHERIC ADMINISTRATION AND NATIONAL MARINE
SANCTUARIES.
There is hereby rescinded the unobligated balance of funds made
available by section 40002 of Public Law 117-169.
SEC. 80203. SURFACE WATER STORAGE ENHANCEMENT.
In addition to amounts otherwise available, there is appropriated
to the Secretary of the Interior, acting through the Commissioner of
Reclamation, for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $2,000,000,000, to remain available through
September 30, 2034, for construction and associated activities that
increase the capacity of existing Bureau of Reclamation surface water
storage facilities, in a manner as determined by the Secretary:
Provided, That, for the purposes of section 203 of the Reclamation
Reform Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the
Reclamation Projects Authorization and Adjustment Act of 1992 (Public
Law 102-575), a contract or agreement entered into pursuant to this
section shall not be treated as a new or amended contract. None of the
funds provided under this section shall be reimbursable or subject to
matching or cost-share requirements.
SEC. 80204. WATER CONVEYANCE ENHANCEMENT.
In addition to amounts otherwise available, there is appropriated
to the Secretary of the Interior, acting through the Commissioner of
Reclamation, for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $500,000,000, to remain available through
September 30, 2034, for construction and associated activities that
restore or increase the capacity of existing Bureau of Reclamation
conveyance facilities, in a manner as determined by the Secretary. None
of the funds provided under this section shall be reimbursable or
subject to matching or cost-share requirements.
Subtitle C--Federal Lands
SEC. 80301. PROHIBITION ON THE IMPLEMENTATION OF THE ROCK SPRINGS FIELD
OFFICE, WYOMING, RESOURCE MANAGEMENT PLAN.
The Secretary of the Interior shall not implement, administer, or
enforce the Record of Decision and Approved Resource Management Plan
referred to in the notice of availability titled ``Notice of
Availability of the Record of Decision and Approved Resource Management
Plan for the Rock Springs Field Office, Wyoming'' published by the
Bureau of Land Management on January 7, 2025 (80 Fed. Reg. 1186).
SEC. 80302. PROHIBITION ON THE IMPLEMENTATION OF THE BUFFALO FIELD
OFFICE, WYOMING, RESOURCE MANAGEMENT PLAN.
The Secretary of the Interior shall not implement, administer, or
enforce the Record of Decision and Approved Resource Management Plan
Amendment referred to in the notice of availability titled ``Notice of
Availability of the Record of Decision and Approved Resource Management
Plan Amendment for the Buffalo Field Office, Wyoming'' published by the
Bureau of Land Management on November 27, 2024 (89 Fed. Reg. 93650).
SEC. 80303. PROHIBITION ON THE IMPLEMENTATION OF THE MILES CITY FIELD
OFFICE, MONTANA, RESOURCE MANAGEMENT PLAN.
The Secretary of the Interior shall not implement, administer, or
enforce the Record of Decision and Approved Resource Management Plan
Amendment referred to in the notice of availability titled ``Notice of
Availability of the Record of Decision and Approved Resource Management
Plan Amendment for the Miles City Field Office, Montana'' published by
the Bureau of Land Management on November 27, 2024 (89 Fed. Reg.
93650).
SEC. 80304. PROHIBITION ON THE IMPLEMENTATION OF THE NORTH DAKOTA
RESOURCE MANAGEMENT PLAN.
The Secretary of the Interior shall not implement, administer, or
enforce the Record of Decision and Approved Resource Management Plan
referred to in the notice of availability titled ``Record of Decision
and Approved Resource Management Plan for the North Dakota Resource
Management Plan/Environmental Impact Statement, North Dakota''
published by the Bureau of Land Management on January 15, 2025 (90 Fed.
Reg. 3915).
SEC. 80305. PROHIBITION ON THE IMPLEMENTATION OF THE COLORADO RIVER
VALLEY FIELD OFFICE AND GRAND JUNCTION FIELD OFFICE
RESOURCE MANAGEMENT PLANS.
The Secretary of the Interior shall not implement, administer, or
enforce the Records of Decision and Approved Resource Management Plans
referred to in the notice of availability titled ``Availability of the
Records of Decision and Approved Resource Management Plans for the
Grand Junction Field Office and the Colorado River Valley Field Office,
Colorado'' published by the Bureau of Land Management on October 22,
2024 (89 Fed. Reg. 84385).
SEC. 80306. RESCISSION OF FOREST SERVICE FUNDS.
There is hereby rescinded the unobligated balances of amounts made
available by section 23001(a)(4) of Public Law 117-169.
SEC. 80307. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU OF LAND
MANAGEMENT FUNDS.
There is hereby rescinded the unobligated balances of amounts made
available by section 50221 of Public Law 117-169.
SEC. 80308. RESCISSION OF BUREAU OF LAND MANAGEMENT AND NATIONAL PARK
SERVICE FUNDS.
There is hereby rescinded the unobligated balances of amounts made
available by section 50222 of Public Law 117-169.
SEC. 80309. RESCISSION OF NATIONAL PARK SERVICE FUNDS.
There is hereby rescinded the unobligated balances of amounts made
available by section 50223 of Public Law 117-169.
SEC. 80310. CELEBRATING AMERICA'S 250TH ANNIVERSARY.
In addition to amounts otherwise available, there is appropriated
to the Secretary of the Interior for fiscal year 2025, out of any money
in the Treasury not otherwise appropriated, to remain available through
fiscal year 2028--
(1) $150,000,000 for events, celebrations, and activities
related to the observance and commemoration of the 250th
anniversary of the founding of the United States; and
(2) $40,000,000 to carry out Executive Order 13934 of July
3, 2020 (85 Fed. Reg. 41165), Executive Order 13978 of January
18, 2021 (86 Fed. Reg. 6809), and Executive Order 14189 of
January 29, 2025 (90 Fed. Reg. 8849) to establish and maintain
a statuary park to be known as the National Garden of American
Heroes.
SEC. 80311. LONG-TERM CONTRACTS FOR THE FOREST SERVICE.
(a) In General.--For each of fiscal years 2025 through 2034, the
Chief of the Forest Service (in this section referred to as the
``Chief'') shall enter into not less than one long-term contract or
agreement with private persons or other public or private entities
under section 14(a) of the National Forest Management Act (16 U.S.C.
472a(a)) with respect to covered National Forest System lands in each
region of the Forest Service that contains covered National Forest
System lands.
(b) Terms.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the Chief shall enter into contracts or agreements under
subsection (a) in accordance with section 3903 of title 41,
United States Code, and section 14 of the National Forest
Management Act (16 U.S.C. 472a).
(2) Contract length.--The period of a contract or agreement
under subsection (a) shall be for at least 20 years, with
options for extensions and renewals as determined by the Chief.
(3) Cancellation ceilings.--A contract or agreement entered
into under subsection (a) shall include provisions for a
cancellation ceiling consistent with section 604(d) of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6591c(d)).
(c) Receipts.--Any monies derived from an agreement or contract
under this section by the Chief shall be deposited in the general fund
of the Treasury.
(d) Covered National Forest System Lands Defined.--In this section,
the term ``covered National Forest System lands'' means the proclaimed
National Forest System lands reserved or withdrawn from the public
domain of the United States.
SEC. 80312. LONG-TERM CONTRACTS FOR THE BUREAU OF LAND MANAGEMENT.
(a) In General.--For each of fiscal years 2025 through 2034, the
Director of the Bureau of Land Management (in this section referred to
as the ``Director'') shall enter into not less than one long-term
contract or agreement with private persons or other public or private
entities under section 1 of the Materials Act of 1947 (30 U.S.C. 601)
with respect to vegetative materials on covered public lands.
(b) Terms.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the Director shall enter into contracts or agreements
under subsection (a) in accordance with section 3903 of title
41, United States Code, and section 2(a) of the Materials Act
of 1947 (30 U.S.C. 602(a)).
(2) Contract length.--The period of a contract or agreement
under subsection (a) shall be for at least 20 years, with
options for extensions and renewals as determined by the
Director.
(3) Cancellation ceilings.--A contract or agreement entered
into under subsection (a) shall include provisions for a
cancellation ceiling consistent with section 604(d) of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6591c(d)).
(c) Receipts.--Any monies derived from an agreement or contract
under this section by the Director shall be deposited in the general
fund of the Treasury.
(d) Covered Public Lands Defined.--The term ``covered public
lands'' has the meaning given the term ``public lands'' in section 103
of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702),
except that the term includes Coos Bay Wagon Road Grant lands and
Oregon and California Railroad Grant lands.
SEC. 80313. TIMBER PRODUCTION FOR THE FOREST SERVICE.
(a) In General.--Not later than 1 year after the date of enactment
of this title, the Secretary of Agriculture, acting through the Chief
of the Forest Service or their designee, shall direct timber harvest on
covered National Forest System lands in amounts that--
(1) in total, equal or exceed the volume that is 25 percent
higher than the total volume harvested on such lands during
fiscal year 2024; and
(2) are in accordance with the applicable forest plan,
including the allowable sale quantity or probable sale
quantity, as applicable, of timber applicable to such lands on
the date of enactment of this title.
(b) Definitions.--In this section:
(1) Covered national forest system lands.--
(A) In general.--Except as provided in subparagraph
(B), the term ``covered National Forest System lands''
means the proclaimed National Forest System lands
reserved or withdrawn from the public domain of the
United States.
(B) Exclusions.--The term ``covered National Forest
System lands'' does not include lands--
(i) that are included in the National
Wilderness Preservation System;
(ii) that are located within a national or
State-specific inventoried roadless area
established by the Secretary of Agriculture
through regulation, unless--
(I) the forest management activity
to be carried out under such authority
is consistent with the forest plan
applicable to the area; or
(II) the activity is allowed under
the applicable roadless rule governing
such lands, including--
(aa) the Idaho roadless
rule under subpart C of part
294 of title 36, Code of
Federal Regulations;
(bb) the Colorado roadless
rule under subpart D of part
294 of title 36, Code of
Federal Regulations; or
(cc) any other roadless
rule developed after the date
of the enactment of this
section by the Secretary with
respect to a specific State; or
(iii) on which timber harvesting for any
purpose is prohibited by Federal statute.
(2) Forest plan.--The term ``forest plan'' means a land and
resource management plan prepared by the Forest Service for a
unit of the National Forest System pursuant to section 6 of the
Forest and Rangeland Renewable Resources Planning Act of 1974
(16 U.S.C. 1604).
SEC. 80314. TIMBER PRODUCTION FOR THE BUREAU OF LAND MANAGEMENT.
(a) In General.--Not later than 1 year after the date of enactment
of this title, the Secretary of the Interior, acting through the
Director of the Bureau of Land Management or their designee, shall
direct timber harvest on covered public lands in amounts that--
(1) in total, equal or exceed the volume that is 25 percent
higher than the total volume harvested on such lands during
fiscal year 2024; and
(2) are in accordance with the applicable forest plan.
(b) Definitions.--In this section:
(1) Covered public lands.--
(A) In general.--Except as provided in subparagraph
(B), the term ``covered public lands'' has the meaning
given the term ``public lands'' in section 103 of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1702), except that the term includes Coos Bay
Wagon Road Grant lands and Oregon and California
Railroad Grant lands.
(B) Exclusions.--The term ``covered public lands''
does not include lands--
(i) that are included in the National
Wilderness Preservation System; or
(ii) on which timber harvesting for any
purpose is prohibited by Federal statute.
(2) Forest plan.--The term ``forest plan'' means a land use
plan prepared by the Bureau of Land Management for public lands
pursuant to section 202 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1712).
SEC. 80315. BUREAU OF LAND MANAGEMENT LAND IN NEVADA.
(a) Lyon County.--
(1) In general.--Not later than 2 years after the date of
enactment of this title, the Secretary of the Interior
(referred to in this section as the ``Secretary''), in
accordance with this section and the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701), shall identify and
offer for sale to the City of Fernley, Nevada, all right,
title, and interest of the United States in and to the Federal
land--
(A) located in Lyon County, Nevada; and
(B) identified as ``Fernley Land Conveyance
Boundary'' on the map entitled ``Fernley Economic
Development Act'' and dated October 6, 2020.
(2) Costs.--As a condition of the conveyance of the Federal
land under paragraph (1), the City of Fernley, Nevada, shall
pay--
(A) an amount equal to the appraised value
determined in accordance with subsection (e)(2); and
(B) all costs related to the conveyance of the
Federal land to the City, including all surveys,
appraisals, and other associated administrative costs.
(b) Clark County.--
(1) In general.--Not later than 2 years after the date of
enactment of this title, the Secretary, in accordance with this
section and the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701), shall identify and offer for sale all right,
title, and interest of the United States in and to Federal land
located in Clark County, Nevada that has been identified--
(A) as suitable for disposal in the Las Vegas
Resource Management Plan in existence on the date of
enactment of this title; or
(B) as ``Modified Existing Disposal'' on the map
entitled ``Southern Nevada Economic Development and
Conservation Act Disposal Map'' and dated February 6,
2025.
(2) Compliance with local planning and zoning laws.--Before
carrying out a sale of Federal land under paragraph (1), Clark
County shall submit to the Secretary a certification that any
entity selected to purchase land through a competitive bidding
process under subsection (e)(1)(A)has agreed to comply with--
(A) zoning ordinances of the county; and
(B) any master plan for the area approved by the
county or region.
(3) Affordable housing.--
(A) In general.--Upon the request Clark County, the
Secretary shall make the Federal land identified as
``Modified Existing Disposal'' on the map entitled
``Southern Nevada Economic Development and Conservation
Act Disposal Map'' and dated February 6, 2025 available
at less than fair market value for affordable housing,
in accordance with section 7(b) of the Southern Nevada
Public Land Management Act of 1998 (Public Law 105-263;
112 Stat. 2349).
(B) Exemption from notice of realty action
requirement.--If any entity seeks to use covered land
for affordable housing purposes under subparagraph (A),
the entity--
(i) shall not be required to comply notice
of realty action requirements with respect to
the covered land; but
(ii) before using the covered land for
affordable housing purposes, shall provide for
a period of not less than 14 days adequate
public notice of the use of the covered land.
(4) Savings clause.--Nothing in this section shall be
construed to affect Federal lands previously identified for
disposal under the Southern Nevada Public Land Management Act
of 1998 (Public Law 105-263; 112 Stat. 2343) nor the
disposition of proceeds for such lands prior to the date of
enactment of this title.
(c) Washoe County.--
(1) In general.--Not later than 2 years after the date of
enactment of this title, the Secretary, in accordance with this
section and the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701), shall identify and offer for sale all right,
title, and interest of the United States in and to Federal land
located in Washoe County, Nevada, that has been identified--
(A) as suitable for disposal in the Carson City
Consolidated Resource Management Plan in existence on
the date of enactment of this title; or
(B) as ``BLM Land for Disposal'' on the map
entitled ``Washoe County Land Disposals'' and dated
February 7, 2025.
(2) Evaluation of additional land for potential disposal.--
(A) In general.--The Secretary shall, not later
than 1 year after the date of enactment of this title,
evaluate the parcels of Federal land depicted as
``Additional BLM Land Potentially Available for
Disposal'' on the map entitled ``Washoe County Land
Disposals'' and dated February 7, 2025, to assess the
suitability of the evaluated Federal land for disposal
in accordance with section 203(a) of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1713(a)).
(B) Sale.--The parcels of Federal land identified
by the Secretary as suitable for disposal under
subparagraph (A) may be offered for sale in accordance
with this section.
(3) Joint selection required; determination regarding
suitability for affordable housing.--
(A) In general.--The Secretary and Washoe County
shall jointly select which parcels of the Federal land
described in paragraph (2)(A) and identified as
suitable for disposal in subparagraph (B) to offer for
sale under this subsection.
(B) Determination.--During the selection process
under subparagraph (A), the Secretary and Washoe County
shall evaluate whether any parcels of the Federal land
described in that subparagraph are suitable for
affordable housing.
(C) Conveyance.--If a parcel of Federal land is
determined to be suitable for affordable housing under
subparagraph (B), on request of a State or local
governmental entity, the applicable parcel of Federal
land shall be made available at less than fair market
value to the governmental entity in accordance with
section 7(b) of the Southern Nevada Public Land
Management Act of 1998 (Public Law 105-263; 112 Stat.
2349).
(D) Survey.--The exact acreage and legal
description of a parcel of Federal land to be conveyed
under subparagraph (C) shall be determined by a survey
satisfactory to the Secretary.
(4) Compliance with local planning and zoning laws.--Before
carrying out a sale of Federal land under paragraph (2), Washoe
County shall submit to the Secretary a certification that any
entity selected to purchase land through a competitive bidding
process under subsection (e)(1)(A) has agreed to comply with--
(A) Washoe County zoning ordinances; and
(B) any master plan for the area approved by Washoe
County or region.
(5) Postponement; exclusion from sale.--At the request of
Washoe County, the Secretary shall postpone or exclude from
sale all or a portion of the Federal land described in
paragraph (2).
(6) Affordable housing.--
(A) Determination regarding suitability for
affordable housing.--Not later than 90 days after the
date of enactment of this title, the Secretary shall
conduct a review of the Federal land described in
subparagraph (C) to determine the suitability of the
Federal land for affordable housing.
(B) Authorization.--Upon the request of a State or
local governmental entity, the Secretary shall make the
Federal land described in subparagraph (C) available at
less than fair market value for affordable housing, in
accordance with section 7(b) of the Southern Nevada
Public Land Management Act of 1998 (Public Law 105-263;
112 Stat. 2349).
(C) Description of federal land.--The Federal land
referred to in subparagraphs (A) and (B) is the land
identified as ``BLM Land for Disposal Only for
Affordable Housing'' on the map entitled ``Washoe
County Land Disposals'' and dated February 7, 2025.
(D) Exemption from notice of realty action
requirement.--If any entity seeks to use covered land
for affordable housing purposes under subparagraph (B),
the entity--
(i) shall not be required to comply notice
of realty action requirements with respect to
the covered land; but
(ii) before using the covered land for
affordable housing purposes, shall provide for
a period of not less than 14 days adequate
public notice of the use of the covered land.
(d) Pershing County Checkerboard Resolution and Disposal.--
(1) Sale or exchange of eligible land.--
(A) Authorization of conveyance.--Not later than 2
years after the date of the enactment of this title,
the Secretary, in accordance with this section and
subject to valid existing rights, shall conduct sales
or exchanges of all right, title, and interest of the
United States in and to the eligible land.
(B) Joint selection required.--After providing
public notice, the Secretary and the County shall
jointly select parcels of eligible land to be offered
for sale or exchange under subparagraph (A).
(C) Land exchanges.--
(i) In general.--An exchange of eligible
land under subparagraph (A) shall be consistent
with section 206(a) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1716).
(ii) Equal value exchange.--
(I) In general.--The value of the
eligible land and private land to be
exchanged under subparagraph (A)--
(aa) shall be equal; or
(bb) shall be made equal in
accordance with subclause (II).
(II) Equalization.--
(aa) Surplus of eligible
land.--With respect to the
eligible land and private land
to be exchanged under
subparagraph (A), if the value
of the eligible land exceeds
the value of the private land,
the value of the eligible land
and the private land shall be
equalized by--
(AA) the owner of
the private land making
a cash equalization
payment to the
Secretary;
(BB) adding private
land to the exchange;
or
(CC) removing
eligible land from the
exchange.
(bb) Surplus of private
land.--With respect to the
eligible land and private land
to be exchanged under
subparagraph (A), if the value
of the private land exceeds the
value of the eligible land, the
value of the private land and
the eligible land shall be
equalized by--
(AA) the Secretary
making a cash
equalization payment to
the owner of the
private land, in
accordance with section
206(b) of the Federal
Land Policy and
Management Act of 1976
(43 U.S.C. 1716(b));
(BB) adding
eligible land to the
exchange; or
(CC) removing
private land from the
exchange.
(iii) Adjacent land.--To the extent
practicable, the Secretary shall seek to enter
into agreements with one or more owners of
private land adjacent to the eligible land for
the exchange of the private land for the
eligible land, if the Secretary determines that
the exchange would consolidate Federal land
ownership and facilitate improved Federal land
management.
(D) Deadline for sale or exchange; exclusions.--
(i) Deadline.--Not later than 2 years after
the date on which the eligible land is jointly
selected under subparagraph (B), the Secretary
shall offer for sale or exchange the parcels of
eligible land jointly selected under that
subparagraph.
(ii) Postponement or exclusion.--The
Secretary or the County may postpone or exclude
from sale or exchange all or a portion of the
eligible land jointly selected under
subparagraph (B) for emergency ecological or
safety reasons.
(2) Sale of encumbered land.--
(A) Authorization of conveyance.--Not later than 2
years after the date of the enactment of this title and
subject to valid existing rights held by third parties,
the Secretary shall offer to convey to qualified
entities, for fair market value, the remaining right,
title, and interest of the United States, in and to the
encumbered land.
(B) Offer to convey.--Not later than 180 days after
the date on which the Secretary receives a fair market
offer from a qualified entity for the conveyance of
encumbered land, the Secretary shall accept the fair
market value offer.
(C) Conveyance.--Not later than 180 days after the
date of acceptance by the Secretary of an offer from a
qualified entity under subparagraph (B) and completion
of a sale for all or part of the applicable portion of
encumbered land to the highest qualified entity, the
Secretary, by delivery of an appropriate deed, patent,
or other valid instrument of conveyance, shall convey
to the qualified entity all remaining right, title, and
interest of the United States in and to the applicable
portion of the encumbered land.
(D) Merger.--Subject to valid existing rights held
by third parties, on delivery of the instrument of
conveyance to the qualified entity under subparagraph
(C), the prior interests in the locatable minerals and
the right to use the surface for mineral purposes held
by the qualified entity under a mining claim, millsite,
tunnel site, or any other Federal land use
authorization applicable to the encumbered land
included in the instrument of conveyance, shall merge
with all right, title, and interest conveyed to the
qualified entity by the United States under this
section to ensure that the qualified entity receives
fee simple title to the purchased encumbered land.
(3) Definitions.--In this subsection:
(A) County.--The term ``County'' means Pershing
County, Nevada.
(B) Eligible land.--The term ``eligible land''
means any land administered by the Secretary, acting
through the Director of the Bureau of Land Management--
(i) that is within the area identified on
the Map as ``Checkerboard Lands Resolution
Area'' that is designated for disposal by the
Secretary through--
(I) the Winnemucca Consolidated
Resource Management Plan; or
(II) any subsequent amendment or
revision to the management plan that is
undertaken with full public
involvement;
(ii) that is the land identified on the Map
as ``Additional Lands Eligible for Disposal'';
and
(iii) that is not encumbered land.
(C) Encumbered land.--The term ``encumbered land''
means any land administered by the Secretary, acting
through the Director of the Bureau of Land Management,
within the area identified on the Map as ``Checkerboard
Resolution Area'' that is encumbered by mining claims,
millsites, or tunnel sites.
(D) Map.--The term ``Map'' means the map titled
``Pershing County Checkerboard Lands Resolution'' and
dated July 8, 2024.
(E) Qualified entity.--The term ``qualified
entity'' means, with respect to a portion of encumbered
land--
(i) the owner of a mining claim, millsite,
or tunnel site located on a portion of the
encumbered land on the date of the enactment of
this title; and
(ii) a successor in interest of an owner
described in clause (i).
(e) Appraisals and Methods of Sale.--
(1) Method of sale.--The sale or exchange of eligible lands
under this section shall be--
(A) through a competitive bidding process;
(B) for not less than fair market value, in
accordance with paragraphs (2) and (3); and
(C) subject to valid existing rights.
(2) Appraisals.--Any sales or exchanges carried out under
this section shall be for not less than fair market value,
based on an appraisal that is conducted in accordance with--
(A) the Uniform Appraisal Standards for Federal
Land Acquisitions; and
(B) the Uniform Standards of Professional Appraisal
Practice.
(3) Mass appraisals.--Not later than 2 years after the date
of the enactment of this title, and every 5 years thereafter,
the Secretary shall--
(A) conduct a mass appraisal of eligible land to be
sold or exchanged under this section;
(B) prepare an evaluation analysis for each land
transaction under this section; and
(C) make available to the public the results of the
mass appraisals conducted under subparagraph (A).
(f) Costs.--The qualified entity or entity selected through a
competitive bidding process to purchase or exchange land, as
appropriate, shall pay all costs associated with sales or exchanges
carried out under this section.
(g) Disposition of Proceeds.--Amounts received from the sale of
land under this section shall be deposited in the general fund of the
Treasury.
(h) Map and Legal Description.--
(1) In general.--Not later than 2 years after the date of
enactment of this title, the Secretary shall finalize the maps
and legal descriptions of the land to be sold or exchanged
under this section.
(2) Controlling document.--In the case of a discrepancy
between the maps and legal descriptions finalized under
paragraph (1), the map shall control.
(3) Corrections.--The Secretary may correct minor errors in
the maps or the legal descriptions finalized under paragraph
(1).
(4) Map on file.--The maps and legal descriptions finalized
under paragraph (1) shall be kept on file and available for
public inspection in each appropriate office of the Bureau of
Land Management.
(i) Rule of Construction.--Nothing in this section shall be
construed as authorizing the conveyance of any lands administered by
the National Park Service.
SEC. 80316. FOREST SERVICE LAND IN NEVADA.
(a) In General.--Not later than 2 years after the date of enactment
of this title, the Secretary of Agriculture (referred to in this
section as the ``Secretary''), in accordance with this section, shall
identify and offer for sale, subject to subsection (b), all right,
title, and interest of the United States in and to covered Federal land
located in Washoe County, Nevada.
(b) Joint Selection Required; Determination Regarding Suitability
for Affordable Housing.--
(1) In general.--The Secretary and Washoe County shall
jointly select which parcels of covered Federal land to offer
for sale under subsection (a).
(2) Determination.--During the selection process under
paragraph (1), the Secretary and Washoe County shall evaluate
whether any parcels of the Federal land described in that
paragraph are suitable for affordable housing.
(3) Conveyance.--If a parcel of Federal land is determined
to be suitable for affordable housing under paragraph (2), on
request of a State or local governmental entity, the applicable
parcel of Federal land shall be made available at less than
fair market value to the governmental entity in accordance with
section 7(b) of the Southern Nevada Public Land Management Act
of 1998 (Public Law 105-263; 112 Stat. 2349).
(4) Survey.--The exact acreage and legal description of a
parcel of Federal land to be conveyed under paragraph (3) shall
be determined by a survey satisfactory to the Secretary.
(5) Compliance with local planning and zoning laws.--Before
carrying out a sale of covered Federal land under subsection
(a), Washoe County shall submit to the Secretary a
certification that any entity selected to purchase covered
Federal land through a competitive bidding process under
subsection (d)(1)(A) has agreed to comply with--
(A) Washoe County zoning ordinances; and
(B) any master plan for the area approved by Washoe
County or region.
(6) Postponement; exclusion from sale.--At the request of
Washoe County, the Secretary shall postpone or exclude from
sale all or a portion of the Federal land described in
subsection (a).
(c) Affordable Housing.--
(1) Determination regarding suitability for affordable
housing.--Not later than 90 days after the date of enactment of
this title, the Secretary shall conduct a review of the
additional Federal land to determine the suitability of the
additional Federal land for affordable housing.
(2) Authorization.--Upon the request of a State or local
governmental entity and subject to valid existing rights, the
Secretary shall make the additional Federal land available at
less than fair market value for affordable housing, in
accordance with section 7(b) of the Southern Nevada Public Land
Management Act of 1998 (Public Law 105-263; 112 Stat. 2349).
(d) Appraisals and Method of Sale.--
(1) Method of sale.--The sale or exchange of any lands
under this section shall be--
(A) through a competitive bidding process;
(B) except as provided in subsections (b)(3) and
(c), for not less than fair market value, in accordance
with paragraphs (2) and (3); and
(C) subject to valid existing rights.
(2) Appraisals.--Any sales or exchanges carried out under
this section shall be for not less than fair market value,
based on an appraisal that is conducted in accordance with--
(A) the Uniform Appraisal Standards for Federal
Land Acquisitions; and
(B) the Uniform Standards of Professional Appraisal
Practice.
(3) Mass appraisals.--Not later than 2 years after the date
of the enactment of this title, and every 5 years thereafter,
the Secretary shall--
(A) conduct a mass appraisal of eligible land to be
sold or exchanged under this section;
(B) prepare an evaluation analysis for each land
transaction under this section; and
(C) make available to the public the results of the
mass appraisals conducted under subparagraph (A).
(e) Costs of Conveyance.--Any entity selected to purchase covered
Federal land or additional Federal land under this section shall pay
all costs associated with the sale.
(f) Disposition of Proceeds.--The proceeds from the sale of
additional Federal land and covered Federal land required under this
section shall be deposited in the general fund of the Treasury.
(g) Map and Legal Description.--
(1) In general.--Not later than 2 years after the date of
enactment of this title, the Secretary shall finalize the maps
and legal descriptions of the additional Federal land and
covered Federal land to be sold under this section.
(2) Controlling document.--In the case of a discrepancy
between the maps and legal descriptions finalized under
paragraph (1), the map shall control.
(3) Corrections.--The Secretary and Washoe County, by
mutual agreement, may correct minor errors in the maps or the
legal descriptions finalized under paragraph (1).
(4) Map on file.--The maps and legal descriptions finalized
under paragraph (1) shall be kept on file and available for
public inspection in each appropriate office of the Bureau of
Land Management.
(h) Rule of Construction.--Nothing in this section shall be
construed as authorizing the conveyance of any lands administered by
the National Park Service.
(i) Definitions.--In this section:
(1) Additional federal land.--The term ``additional Federal
land'' means the Federal land identified as ``USFS Land for
Disposal Only for Affordable Housing'' on the map entitled
``Washoe County Land Disposals'' and dated February 7, 2025.
(2) Covered federal land.--The term ``covered Federal
land'' means ``USFS Land for Disposal'' on the map entitled
``Washoe County Land Disposal'' and dated February 7, 2025.
SEC. 80317. FEDERAL LAND IN UTAH.
(a) Conveyance of Bureau of Land Management Land to Covered
Entity.--Not later than 180 days after the date of enactment of this
title, the Secretary shall convey to the covered entity all right,
title, and interest of the United States in and to the covered land.
(b) Requirements.--The conveyance of covered land under this
section shall be--
(1) subject to valid existing rights; and
(2) for not less than fair market value, based on an
appraisal that is conducted in accordance with--
(A) the Uniform Appraisal Standards for Federal
Land Acquisitions; and
(B) the Uniform Standards of Professional Appraisal
Practice.
(c) Costs of Conveyance.--The covered entity shall pay all costs
associated with the conveyances required under subsection (a).
(d) Proceeds From Conveyance.--The proceeds from the conveyances
required under subsection (a) shall be deposited in the general fund of
the Treasury.
(e) Map and Legal Description.--
(1) In general.--Not later than 120 days after the date of
enactment of this title, the Secretary shall finalize the maps
and legal descriptions of the covered land to be conveyed under
this section.
(2) Controlling document.--In the case of a discrepancy
between the maps and legal descriptions finalized under
paragraph (1), the map shall control.
(3) Corrections.--The Secretary and the covered entity, by
mutual agreement, may correct minor errors in the maps or the
legal descriptions finalized under paragraph (1).
(4) Map on file.--The maps and legal descriptions finalized
under paragraph (1) shall be kept on file and available for
public inspection in each appropriate office of the Forest
Service.
(f) Rule of Construction.--Nothing in this section shall be
construed as authorizing the conveyance of any lands administered by
the National Park Service.
(g) Definitions.--In this section:
(1) Covered entity.--The term ``covered entity'' means the
following:
(A) Beaver County, Utah, with respect to covered
land depicted on the map entitled ``Beaver County Land
Conveyance'' and dated March 8, 2025.
(B) The City of St. George, Utah, with respect to
covered land depicted on the map entitled ``City of St.
George, Utah, Land Conveyance'' and dated March 28,
2025.
(C) Washington County, Utah, with respect to
covered land depicted on--
(i) the map entitled ``Washington County
Land Conveyance - East Half'' and dated April
11, 2025; and
(ii) the map entitled ``Washington County
Land Conveyance - West Half'' and dated April
9, 2025.
(D) Washington County Water Conservancy District,
with respect to covered land depicted on the map
entitled ``Washington County Water Conservancy District
Land Conveyance'' and dated March 27, 2025.
(2) Covered land.--The term ``covered land'' means the
following:
(A) On the map entitled ``Beaver County Land
Conveyance'' and dated March 8, 2025, the following
parcels:
(i) The approximately 10.32 acres depicted
as ``Parcel 1''.
(ii) The approximately 10.81 acres depicted
as ``Parcel 2''.
(iii) The approximately 40.83 acres
depicted as ``Parcel 3''.
(B) On the map entitled ``City of St. George, Utah,
Land Conveyance'' and dated March 28, 2025, the
following parcels:
(i) The approximately 203.37 acres depicted
as ``Airport''.
(ii) The approximately 16.48 acres depicted
as ``Brigham Road''.
(iii) The approximately 9.57 acres depicted
as ``Curly Hollow''.
(iv) The approximately 11.52 acres depicted
as ``Devario Site''.
(v) The approximately 105.55 acres depicted
as ``Graveyard Dam''.
(vi) The approximately 4.88 acres depicted
as ``Gunlock Arsenic Plant''.
(vii) The approximately 1.17 acres depicted
as ``Gunlock Filter Station''.
(viii) The approximately 0.92 acres
depicted as ``Gunlock#1''.
(ix) The approximately 0.92 acres depicted
as ``Gunlock#2''.
(x) The approximately 0.92 acres depicted
as ``Gunlock#3''.
(xi) The approximately 0.92 acres depicted
as ``Gunlock#4''.
(xii) The approximately 0.92 acres depicted
as ``Gunlock#5''.
(xiii) The approximately 0.92 acres
depicted as ``Gunlock#6''.
(xiv) The approximately 0.92 acres depicted
as ``Gunlock#7''.
(xv) The approximately 1.1 acres depicted
as ``Gunlock#8''.
(xvi) The approximately 0.92 acres depicted
as ``Gunlock#9''.
(xvii) The approximately 0.92 acres
depicted as ``Gunlock#10''.
(xviii) The approximately 4.34 acres
depicted as ``Man O War Connecter''.
(xix) The approximately 36.56 acres
depicted as ``Sun River''.
(xx) The approximately 31.22 acres depicted
as ``Treatment Plant''.
(xxi) The approximately 3.75 acres depicted
as ``Virgin River Site''.
(xxii) The approximately 82.27 acres
depicted as ``Western Corridor (100' ROW)''.
(C) On the map entitled ``Washington County Land
Conveyance - East Half'' and dated April 11, 2025, the
following parcels:
(i) The approximately 330.58 acres depicted
as ``Parcel 1''.
(ii) The approximately 287.02 acres
depicted as ``Parcel 2''.
(iii) The approximately 279.72 acres
depicted as ``Parcel 3''.
(iv) The approximately 10.67 acres depicted
as ``Parcel 4''.
(v) The approximately 213.56 acres depicted
as ``Parcel 6''.
(vi) The approximately 180.51 acres
depicted as ``Parcel 11''.
(vii) The approximately 186.14 acres
depicted as ``Parcel 12''.
(viii) The approximately 153.74 acres
depicted as ``Parcel 13''.
(ix) The approximately 711.56 acres
depicted as ``Parcel 15''.
(x) The approximately 52.28 acres depicted
as ``Parcel 16''.
(xi) The approximately 197.52 acres
depicted as ``Parcel 17''.
(xii) The approximately 311.5 acres
depicted as ``Parcel 19''.
(xiii) The approximately 628.76 acres
depicted as ``Parcel 20''.
(xiv) The approximately 364.31 acres
depicted as ``Parcel 21''.
(xv) The approximately 921.52 acres
depicted as ``Parcel 22''.
(xvi) The approximately 129.77 acres
depicted as ``Parcel 23''.
(D) On the map entitled ``Washington County Land
Conveyance-West Half'' and dated April 9, 2025, the
following parcels:
(i) The approximately 338.6 acres depicted
as ``Parcel 5''.
(ii) The approximately 487.13 acres
depicted as ``Parcel 7''.
(iii) The approximately 121.08 acres
depicted as ``Parcel 8''.
(iv) The approximately 64.58 acres depicted
as ``Parcel 9''.
(v) The approximately 62.49 acres depicted
as ``Parcel 10''.
(vi) The approximately 404.63 acres
depicted as ``Parcel 14''.
(vii) The approximately 55.01 acres
depicted as ``Parcel 18''.
(E) On the map entitled ``Washington County Water
Conservancy District Land Conveyance'' and dated March
27, 2025, the following parcels:
(i) The approximately 35.955036 acres
depicted as ``Parcel 01''.
(ii) The approximately 22.836384 acres
depicted as ``Parcel 02''.
(iii) The approximately 29.321031 acres
depicted as ``Parcel 04''.
(iv) The approximately 5.307719 acres
depicted as ``Parcel 05''.
(v) The approximately 5.256227 acres
depicted as ``Parcel 06''.
(vi) The approximately 18.162944 acres
depicted as ``Parcel 07''.
(vii) The approximately 10.199554 acres
depicted as ``Parcel 08''.
(viii) The approximately 32.490829 acres
depicted as ``Parcel 09''.
(ix) The approximately 2.609287 acres
depicted as ``Parcel 10''.
(x) The approximately 4.358646 acres
depicted as ``Parcel 11''.
(xi) The approximately 534.961903 acres
depicted as ``Parcel 12''.
(xii) The approximately 0.213103 acres
depicted as ``Parcel 13''.
(xiii) The approximately 2.977254 acres
depicted as ``Parcel 14''.
(xiv) The approximately 13.315086 acres
depicted as ``Parcel 15''.
(xv) The approximately 418.173711 acres
depicted as ``Parcel 16''.
(xvi) The approximately 3.00085 acres
depicted as ``Parcel 17''.
(xvii) The approximately 8.453333 acres
depicted as ``Parcel 18''.
(xviii) The approximately 10.754291 acres
depicted as ``Parcel 19''.
(xix) The approximately 3.067501 acres
depicted as ``Parcel 20''.
(xx) The approximately 4.995197 acres
depicted as ``Parcel 21''.
(xxi) The approximately 11.596129 acres
depicted as ``Parcel 22''.
(xxii) The approximately 3,197.320604 acres
depicted as ``Parcel 23''.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the Bureau of
Land Management.
TITLE IX--COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM
SEC. 90001. INCREASE IN FERS EMPLOYEE CONTRIBUTION REQUIREMENTS.
Section 8422(a)(3) of title 5, United States Code, is amended--
(1) in subparagraph (A), by amending the table to read as
follows:
``Employee 7 January 1, 1987, to December 31,
1998.
7.25 January 1, 1999, to December 31,
1999.
7.4 January 1, 2000, to December 31,
2000.
7 January 1, 2001, to December 31,
2025.
8.8 January 1, 2026, to December 31,
2026.
10.6 After December 31, 2026.
Congressional employee 7.5 January 1, 1987, to December 31,
1998.
7.75 January 1, 1999, to December 31,
1999.
7.9 January 1, 2000, to December 31,
2000.
7.5 January 1, 2001, to December 31,
2025.
9.3 January 1, 2026, to December 31,
2026.
11.1 After December 31, 2026.
Member 7.5 January 1, 1987, to December 31,
1998.
7.75 January 1, 1999, to December 31,
1999.
7.9 January 1, 2000, to December 31,
2000.
8 January 1, 2001, to December 31,
2002.
7.5 January 1, 2003, to December 31,
2025.
9.3 January 1, 2026, to December 31,
2026.
11.1 After December 31, 2026.
Law enforcement officer, Firefighter, member of the Capitol 7.5 January 1, 1987, to December 31,
Police, member of the Supreme Court Police, or air traffic 1998.
controller
7.75 January 1, 1999, to December 31,
1999.
7.9 January 1, 2000, to December 31,
2000.
7.5 After December 31, 2000.
Nuclear materials courier 7 January 1, 1987, to October 16,
1998.
7.5 October 17, 1998, to December 31,
1998.
7.75 January 1, 1999, to December 31,
1999.
7.9 January 1, 2000, to December 31,
2000.
7.5 After December 31, 2000.
Customs and border protection officer 7.5 After June 29, 2008.''; and
(2) in subparagraph (B), by amending the table to read as
follows:
``Employee 9.3 January 1, 2013, to
December 31, 2025.
9.95 January 1, 2026, to
December 31, 2026.
10.6 After December 31, 2026.
Congressional employee 9.3 January 1, 2013, to
December 31, 2025.
9.95 January 1, 2026, to
December 31, 2026.
10.6 After December 31, 2026.
Member 9.3 January 1, 2013, to
December 31, 2025.
9.95 January 1, 2026, to
December 31, 2026.
10.6 After December 31, 2026.
Law enforcement officer, 9.8 After December 31, 2012.
Firefighter, member of the
Capitol Police, member of the
Supreme Court Police, or air
traffic controller
Nuclear materials courier 9.8 After December 31, 2012.
Customs and border protection 9.8 After December 31, 2012.''.
officer
SEC. 90002. ELIMINATION OF FERS ANNUITY SUPPLEMENT.
(a) In General.--Section 8421(a) of title 5, United States Code, is
amended--
(1) in paragraph (1), by inserting ``separated from service
under section 8425'' after ``individual''; and
(2) in paragraph (2), by inserting ``separated from service
under section 8425'' after ``an individual''.
(b) Applicability.--The amendments made by this section shall not
apply with respect to any individual entitled to an annuity supplement
under section 8421 of title 5, United States Code, prior to the date of
the enactment of this Act.
SEC. 90003. HIGH-5 AVERAGE PAY FOR CALCULATING CSRS AND FERS PENSION.
(a) CSRS.--Section 8331(4) of title 5, United States Code, is
amended to read as follows:
``(4) `average pay' means--
``(A) except as provided under subparagraph (B),
the largest annual rate resulting from averaging an
employee's or Member's rates of basic pay in effect
over any 3 consecutive years of creditable service or,
in the case of an annuity under subsection (d) or
(e)(1) of section 8341 of this title based on service
of less than 3 years, over the total service, with each
rate weighted by the time it was in effect; and
``(B) with respect to an employee or Member who
retires on or after January 1, 2027, other than an
individual entitled to an annuity under subsection (c)
or (e) of section 8336, the largest annual rate
resulting from averaging an employee's or Member's
rates of basic pay in effect over any 5 consecutive
years of creditable service or, in the case of an
annuity under subsection (d) or (e)(1) of section 8341
of this title based on service of less than 5 years,
over the total service, with each rate weighted by the
time it was in effect;''.
(b) FERS.--Section 8401(3) of title 5, United States Code, is
amended to read as follows:
``(3) the term `average pay' means--
``(A) except as provided under subparagraph (B),
the largest annual rate resulting from averaging an
employee's or Member's rates of basic pay in effect
over any 3 consecutive years of service or, in the case
of an annuity under this chapter based on service of
less than 3 years, over the total service, with each
rate weighted by the period it was in effect; and
``(B) with respect to an employee or Member who
retires on or after January 1, 2027, other than an
individual entitled to an annuity under subsection (d)
or (e) of section 8412, the largest annual rate
resulting from averaging the employee's or Member's
rates of basic pay in effect over any 5 consecutive
years of service or, in the case of an annuity under
this chapter based on service of less than 5 years,
over the total service, with each rate weighted by the
period it was in effect;''.
(c) Conforming Amendment.--Section 302(a) of the Federal Employee's
Retirement System Act of 1986 (5 U.S.C. 8331 note) is amended by
striking paragraph (6) and inserting the following:
``(6)(A) For purposes of any computation under paragraph
(4) or (5), the average pay to be used shall be--
``(i) except as provided under clause (ii), the
largest annual rate resulting from averaging the
individual's rates of basic pay in effect over any 3
consecutive years of creditable service or, in the case
of an annuity based on service of less than 3 years,
over the total period of service so creditable, with
each rate weighted by the period it was in effect; and
``(ii) with respect to an individual who retires on
or after January 1, 2027, other than an individual
entitled to an annuity under subsection (d) or (e) of
section 8412 of title 5, United States Code, the
largest annual rate resulting from averaging the
individual's rates of basic pay in effect over any 5
consecutive years of creditable service or, in the case
of an annuity based on service of less than 5 years,
over the total period of service so creditable, with
each rate weighted by the period it was in effect.
``(B) For purposes of subparagraph (A), service shall be
considered creditable if it would be considered creditable for
purposes of determining average pay under chapter 83 or 84 of
title 5, United States Code.''.
SEC. 90004. ELECTION FOR AT-WILL EMPLOYMENT AND LOWER FERS
CONTRIBUTIONS FOR NEW FEDERAL CIVIL SERVICE HIRES.
(a) Election.--
(1) In general.--Subchapter I of chapter 33 of title 5,
United States Code, is amended by adding at the end the
following:
``Sec. 3330g. Election for at-will employment and lower FERS
contributions
``(a) Election.--
``(1) In general.--Not later than the last day of the
probationary period (if any) for an individual initially
appointed to a covered position after the date of the enactment
of this section, such individual may make an irrevocable
election to be employed on an at-will basis, subject to the
requirements of this section.
``(2) Failure to make election.--An individual who does not
make the election under paragraph (1) shall be subject to the
requirements of section 8422(a)(3)(D).
``(b) At-will Employment.--Notwithstanding any other provision of
law, including chapters 43 and 75 of this title, any individual who
makes an affirmative election under subsection (a)(1) shall--
``(1) be considered an at-will employee; and
``(2) may be subject to an adverse action up to and
including removal, without notice or right to appeal, by the
head of the agency at which the individual is employed for good
cause, bad cause, or no cause at all.
``(c) Application of Other Laws.--Notwithstanding any other
requirement of this section, this section shall not be construed to
reduce, extinguish, or otherwise effect any right or remedy available
to any individual who elects to be an at-will employee under subsection
(a)(1) under any of the following provisions of law:
``(1) The protections relating to prohibited personnel
practices (as that term is defined in section 2302).
``(2) The Congressional Accountability Act of 1995, in the
case of employees of the legislative branch who are subject to
this section.
``(d) Covered Position.--In this section, the term `covered
position'--
``(1) means--
``(A) any position in the competitive service;
``(B) a career appointee position in the Senior
Executive Service;
``(C) a position in the excepted service; and
``(2) does not include any position--
``(A) excepted from the competitive service because
of its confidential, policy-determining, policy-making,
or policy-advocating character; or
``(B) excluded from the coverage of section 2302
(by operation of subsection (a)(2)(B) of such section)
or chapter 75.''.
(2) Clerical amendment.--The table of sections for such
subchapter is amended by adding after the item relating to
section 3330f the following:
``3330g. Election for at-will employment and lower FERS
contributions.''.
(b) Increase in FERS Contributions.--Section 8422(a) of title 5,
United States Code, is amended by adding at the end the following:
``(D) The applicable percentage under this
paragraph for civilian service by any individual who
elects not to be employed on an at-will basis under
section 3330g shall be equal to the percentage required
under subparagraph (C), increased by 5 percentage
points.''.
(c) Application.--This section and the amendments made by this
section shall apply to individuals initially appointed to positions in
the civil service subject to such section and amendments appointed on
or after the date of the enactment of this Act.
SEC. 90005. FILING FEE FOR MERIT SYSTEMS PROTECTION BOARD CLAIMS AND
APPEALS.
(a) In General.--Section 7701 of title 5, United States Code, is
amended--
(1) in redesignating subsection (k) as subsection (l); and
(2) by inserting after subsection (j) the following:
``(k)(1) The Board shall establish and collect a filing fee to be
paid by any employee, former employee, or applicant for employment
filing a claim or appeal with the Board under this title, or under any
other law, rule, or regulation, consistent with the requirements of
this subsection.
``(2) The filing fee under paragraph (1) shall--
``(A) be in an amount equal to the filing fee for a civil
action, suit, or proceeding under section 1914(a) of title 28;
``(B) be paid on the date the individual submits a claim or
appeal to the Board; and
``(C) if the individual is the prevailing party under such
claim or appeal, be returned to such individual.
``(3) The filing fee under this subsection shall not be required
for any--
``(A) action brought by the Special Counsel under section
1214, 1215, or 1216; or
``(B) any claim or appeal of a prohibited personnel
practice described in section 2302(b)(8) or 2302(b)(9)(A)(i),
(B), (C), or (D) or in section 1221.
``(4) On the date that a claim or appeal with respect to which the
individual is not the prevailing party has not been appealed and is no
longer appealable because the time for taking an appeal has expired, or
which has been appealed under section 7703 and the appeals process for
which is completed, the fee collected under paragraph (1) shall, except
as provided in paragraph (2)(C), be deposited into the miscellaneous
receipts of the Treasury.''.
(b) Application.--The fee required under the amendment made by
subsection (a) shall apply to any claim or appeal filed with the Merit
Systems Protection Board after the date that is 3 months after the date
of the enactment of this section.
SEC. 90006. FEHB PROTECTION.
(a) FEHB Improvements.--
(1) Definitions.--In this subsection:
(A) Director.--The term ``Director'' means the
Director of the Office of Personnel Management.
(B) Employing office.--The term ``employing
office'' has the meaning given the term in section
890.101(a) of title 5, Code of Federal Regulations, or
any successor regulation.
(C) Health benefits plan; member of family.--The
terms ``health benefits plan'' and ``member of family''
have the meanings given those terms in section 8901 of
title 5, United States Code.
(D) Inspector general.--The term ``Inspector
General'' means the Inspector General of the Office of
Personnel Management.
(E) Open season.--The term ``open season'' means an
open season described in section 890.301(f) of title 5,
Code of Federal Regulations, or any successor
regulation.
(F) Program.--The term ``Program'' means the health
insurance programs carried out under chapter 89 of
title 5, United States Code, including the program
carried out under section 8903c of that title.
(G) Qualifying life event.--The term ``qualifying
life event'' has the meaning given the term in section
892.101 of title 5, Code of Federal Regulations, or any
successor regulation.
(2) Verification requirements.--
(A) In general.--Not later than 1 year after the
date of the enactment of this Act, the Director shall
issue regulations and implement a process to verify--
(i) the veracity of any qualifying life
event through which an enrollee in the Program
seeks to add a member of family with respect to
the enrollee to a health benefits plan under
the Program; and
(ii) that, when an enrollee in the Program
seeks to add a member of family with respect to
the enrollee to the health benefits plan of the
enrollee under the Program, including during
any open season, the individual so added is a
qualifying member of family with respect to the
enrollee.
(B) Record retention.--The process implemented
under subparagraph (A) shall require the records used
for a verification described in such subparagraph under
such process with respect to an individual enrolled in
a health benefits plan under the Program to be provided
to the Office of Personnel Management and retained by
the Office of Personnel Management until the expiration
of a six-year period beginning after the date of such
verification in which such individual is not enrolled
in a health benefits plan under the Program.
(3) Fraud risk assessment.--In any fraud risk assessment
conducted with respect to the Program on or after the date of
the enactment of this Act, the Director shall include an
assessment of individuals who are enrolled in, or covered
under, a health benefits plan under the Program even though
those individuals are not eligible to be so enrolled or
covered.
(4) Family member eligibility verification audit.--
(A) In general.--During the 5-year period beginning
1 year after the date of the enactment of this Act, the
Director, in coordination with the head of each
employing office, shall conduct a comprehensive audit
regarding members of family who are covered under an
enrollment in a health benefits plan under the Program.
(B) Contents.--In conducting an audit required by
subparagraph (A), the Director, in coordination with
the head of each employing office, shall review
marriage certificates, birth certificates, and other
appropriate documents that are necessary to determine
eligibility to enroll in a health benefits plan under
the Program.
(C) Record retention.--All records pertaining to
the eligibility of an individual to be enrolled in, or
covered under, a health benefits plan under the Program
obtained by the Director or the head of the relevant
employing office in the audit required by subparagraph
(A) shall be retained by the Office of Personnel
Management until the expiration of a six-year period
beginning after the date of such audit in which such
individual is not enrolled in, or covered under, a
health benefits plan under the Program.
(D) Referral to inspector general.--The Director
shall refer any instances of individuals enrolled in,
or covered under, a health benefits plan under the
Program who are not eligible to be so enrolled or
covered that are identified in the audit required by
subparagraph (A) to the Inspector General.
(5) Disenrollment or removal.--
(A) In general.--Not later than 6 months after the
date of the enactment of this Act, the Director shall
develop a process by which any individual enrolled in,
or covered under, a health benefits plan under the
Program who is not eligible to be so enrolled or
covered shall be disenrolled or removed from enrollment
in a health benefits plan under the Program.
(B) Notify inspector general.--The Director shall
notify the Inspector General of each individual
disenrolled or removed from enrollment in a health
benefits plan under the Program under the process
developed under subparagraph (A).
(b) Earned Benefits and Healthcare Administrative Services
Associated Oversight and Audit Funding.--
(1) In general.--Section 8909(a)(2) of title 5, United
States Code, is amended by striking ``Congress.'' and inserting
``Congress, except that the amounts authorized under subsection
(b)(2) for the Office shall not be subject to the limitations
that may be specified annually by Congress.''.
(2) Oversight.--Section 8909(b) of title 5, United States
Code, is amended--
(A) by redesignating paragraph (2) as paragraph
(5); and
(B) by inserting after paragraph (1) the following:
``(2) In addition to the funds provided under paragraph
(1), amounts of all contributions shall be available for the
Office to develop, maintain, and conduct ongoing eligibility
verification and oversight over the enrollment and eligibility
systems with respect to benefits under this chapter, including
the Postal Service Health Benefits Program under section 8903c.
Amounts for the Office under this paragraph shall not be
available in excess of the following amounts in the following
fiscal years:
``(A) In fiscal year 2026, $36,792,000.
``(B) In fiscal year 2027, $44,733,161.
``(C) In fiscal year 2028, $50,930,778.
``(D) In fiscal year 2029, $54,198,238.
``(E) In fiscal year 2030, $54,855,425.
``(F) In fiscal year 2031, $56,062,244.
``(G) In fiscal year 2032, $57,295,613.
``(H) In fiscal year 2033, $58,556,117.
``(I) In fiscal year 2034, $59,844,351.
``(J) In fiscal year 2035 and each fiscal year
thereafter, the amount equal to the dollar limit for
the immediately preceding fiscal year, increased by
2.2. percent.
``(3) In fiscal year 2026, $80,000,000, to be derived from
all contributions and to remain available until expended, shall
be available for the Office to conduct the audit required under
section 90006(a)(4) of the Act titled `An Act to provide for
reconciliation pursuant to title II of H. Con. Res. 14'. Of
such amount, the Office may transfer funds as the Director of
the Office determines necessary to an employing office (as that
term is defined in section 890.101(a) of title 5, Code of
Federal Regulations, or any successor regulation) in order to
conduct the required audit.
``(4) Amounts of all contributions shall be available for
the Office of Personnel Management Office of the Inspector
General to conduct oversight associated with activities under
this chapter (including the Postal Service Health Benefits
Program under section 8903c), including activities associated
with enrollment and eligibility in these programs and any
associated audit activities as required under section 90006 of
the Act titled `An Act to provide for reconciliation pursuant
to title II of H. Con. Res. 14'. Amounts for the Office of the
Inspector General under this paragraph shall not be available
in excess of the following amounts in the following fiscal
years:
``(A) In fiscal year 2026, $5,090,278.
``(B) In fiscal year 2027 and each fiscal year
thereafter, the amount equal to the dollar limit for
the immediately preceding fiscal year, increased by 2.2
percent.''.
TITLE X--COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
SEC. 100001. COAST GUARD ASSETS NECESSARY TO SECURE THE MARITIME BORDER
AND INTERDICT MIGRANTS AND DRUGS.
(a) In General.--For the purpose of the acquisition, sustainment,
improvement, and operation of United States Coast Guard assets, in
addition to amounts otherwise made available, there is appropriated to
the Commandant of the Coast Guard for fiscal year 2025, out of any
money in the Treasury not otherwise appropriated, to remain available
until September 30, 2029--
(1) $571,500,000 for fixed wing aircraft and spare parts,
training simulators, support equipment, and program management
for such aircraft;
(2) $1,283,000,000 for rotary wing aircraft and spare
parts, training simulators, support equipment, and program
management for such aircraft;
(3) $140,000,000 for long-range unmanned aircraft systems
and base stations, support equipment, and program management
for such systems;
(4) $4,300,000,000 for Offshore Patrol Cutters and spare
parts and program management for such Cutters;
(5) $1,000,000,000 for Fast Response Cutters and spare
parts and program management for such Cutters;
(6) $4,300,000,000 for Polar Security Cutters and spare
parts and program management for such Cutters;
(7) $4,978,000,000 for Arctic Security Cutters and domestic
icebreakers and spare parts and program management for such
Cutters and icebreakers;
(8) $3,154,500,000 for design, planning, engineering,
construction of, and program management for shoreside
infrastructure, of which--
(A) $400,000,000 is provided for hangers and
maintenance and crew facilities for the fixed wing
aircraft for which funds are appropriated under
paragraph (1) and rotary wing aircraft for which funds
are appropriated under paragraph (2);
(B) $2,329,500,000 is provided for homeports for
the Cutters for which funds are appropriated under
paragraphs (4), (5), (6), and (7), National Security
Cutters, and other Fast Response Cutters; and
(C) $425,000,000 is provided for design, planning,
engineering, construction of, and program management
for enlisted boot camp barracks, multi-use training
centers, and other related facilities;
(9) $1,300,000,000 for aviation, cutter, shoreside facility
depot maintenance, and C5I service maintenance, of which
$500,000,000 is provided to acquire, procure, or construct a
floating dry dock under subsection (b) and conduct channel
dredging necessary to allow Cutters for which funds are
appropriated under paragraph (4) and National Security Cutters
to be maintained and repaired in such dry dock; and
(10) $180,000,000 for equipment and services for maritime
domain awareness, of which $75,000,000 is provided to contract
the services of, acquire, or procure autonomous maritime
systems.
(b) Requirements.--
(1) In general.--Except as provided in paragraph (2), the
Commandant may not acquire, procure, or construct a floating
dry dock for the Coast Guard Yard with amounts appropriated
under subsection (a).
(2) Permissible acquisition, procurement, or construction
methods.--Notwithstanding paragraph (1) of this subsection and
section 1105(a) of title 14, United States Code, the Commandant
may, through September 30, 2030--
(A) provide for an entity other than the Coast
Guard to contract for the acquisition, procurement, or
construction of a floating dry dock by contract,
purchase, or other agreement;
(B) construct a floating dry dock at the Coast
Guard Yard; or
(C) acquire or procure a commercially available
floating dry dock.
(3) Floating dry dock defined.--In this section, the term
``floating dry dock'' means equipment that is--
(A) documented under chapter 121 of title 46,
United States Code; and
(B) capable of meeting the lifting and maintenance
requirements of an Offshore Patrol Cutter or a National
Security Cutter.
(c) Limitation.--Not more than 15 percent of the amounts provided
in paragraph (9) of subsection (a) shall be available for design,
planning, and engineering of the facilities described in such
paragraph.
(d) Application.--In carrying out acquisitions or procurements for
which funds are appropriated under subsection (a), sections 1131, 1132,
and 1133 of title 14, United States Code, shall not apply.
(e) Entity Other Than the Coast Guard.--Notwithstanding section
1105(a) of title 14, United States Code, in carrying out acquisition,
procurement, or construction of Arctic Security Cutters or domestic
icebreakers for which funds are appropriated under subsection (a)(7),
the Commandant may provide for an entity other than the Coast Guard to
contract for such acquisition, procurement, or construction.
(f) Compliance With Applicable Reporting Requirements.--None of the
amounts provided in--
(1) this section may be obligated or expended during any
fiscal year in which the Commandant is not compliant with
sections 5102 and 5103 (excluding section 5103(e)) of title 14,
United States Code; and
(2) paragraphs (1) and (2) of subsection (a) may be
obligated or expended until the Commandant provides the report
required under section 11217 of the James M. Inhofe National
Defense Authorization Act for Fiscal Year 2023 (Public Law 117-
263) to the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate.
(g) Notification Requirement.--The Commandant shall notify the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate not less than 1 week prior to taking any
procurement actions impacting estimated costs or timelines for
acquisitions or procurements funded with amounts appropriated under
this section.
(h) Expenditure Plan.--Not later than 90 days after the date of
enactment of this Act, the Commandant shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Commerce, Science, and Transportation of the Senate a
detailed expenditure plan, including projected project timelines for
each acquisition and procurement funded under this section and a list
of project locations to be funded under paragraphs (8) and (9) of
subsection (a).
(i) Exception.--If the President authorizes an exception under
section 1151(b) of title 14, United States Code, for any Coast Guard
vessel, or the hull or superstructure of such vessel for which funds
are appropriated under paragraphs (4) through (7) of subsection (a), no
such funds shall be obligated until the President submits to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a written explanation of the circumstances
requiring such an exception in the national security interest,
including--
(1) a confirmation that there are insufficient qualified
United States shipyards to meet the national security interest
without such exception; and
(2) actions taken by the President to enable qualified
United States shipyards to meet national security requirements
prior to the issuance of such an exception.
SEC. 100002. CHANGES TO MANDATORY BENEFITS PROGRAMS TO ALLOW SELECTED
RESERVE ORDERS FOR PREPLANNED MISSIONS TO SECURE MARITIME
BORDERS AND INTERDICT PERSONS AND DRUGS.
(a) In General.--Subchapter I of chapter 37 of title 14, United
States Code, is amended by adding at the end the following:
``Sec. 3715. Selected reserve: order to active duty for preplanned
missions in support of the active component
``(a) Authority.--When the Commandant determines that it is
necessary to augment the active forces for a preplanned mission in
support of Coast Guard requirements, the Commandant may, subject to
subsection (b), order any member of the Selected Reserve, without the
consent of the member, to active duty for not more than 365 consecutive
days.
``(b) Limitations.--Members of the Selected Reserve may be ordered
to active duty under this section only if--
``(1) the manpower and associated costs of such active duty
are specifically included and identified in the materials
submitted to Congress by the Secretary of the department in
which the Coast Guard is operating, in support of the budget
for the fiscal year or years in which such members are
anticipated to be ordered to active duty; and
``(2) the budget information on such costs includes a
description of the mission for which such members are
anticipated to be ordered to active duty and the anticipated
length of time of the order of such members to active duty on
an involuntary basis.
``(c) Exclusion From Strength Limitations.--Members of the Selected
Reserve ordered to active duty under this section shall not be counted
in computing authorized strength in members on active duty or the total
number of members in grade under this title or any other law.
``(d) Termination of Duty.--Whenever any member of the Selected
Reserve is ordered to active duty under subsection (a), such service
may be terminated--
``(1) by order of the Commandant; or
``(2) by law.
``(e) Considerations for Involuntary Order to Active Duty.--In
determining which members of the Selected Reserve will be ordered to
duty without their consent under subsection (a), appropriate
consideration shall be given to--
``(1) the length and nature of previous service, to assure
such sharing of exposure to hazards as national security and
military requirements will reasonably allow;
``(2) the frequency of assignments during service career;
``(3) family responsibilities; and
``(4) employment necessary to maintain the national health,
safety, or interest.
``(f) Policies and Procedures.--The Commandant may prescribe
policies and procedures to carry out this section, including on
determinations with respect to orders to active duty under subsection
(e).''.
(b) Clerical Amendment.--The analysis for chapter 37 of title 14,
United States Code, is amended by inserting after the item relating to
section 3714 the following:
``3715. Selected reserve: order to active duty for preplanned missions
in support of the active component''.
(c) Definitions.--Section 3301(1)(B) of title 38, United States
Code is amended by striking ``section 712 of title 14.'' and inserting
``section 3713 or 3715 of title 14.''.
(d) Reemployment Rights of Persons Who Serve in the Uniformed
Services.--Section 4312(c)(4)(A) of title 38, United States Code is
amended by striking ``712 of title 14;'' and inserting ``section 3713
or 3715 of title 14;''.
(e) Medical and Dental Care for Members and Certain Former
Members.--Section 1074(d)(2) of title 10, United States Code is amended
by inserting ``, or section 3715 of title 14,'' after ``section
101(a)(13)(B) of this title''.
(f) Health Benefits.--Section 1145(a)(2)(B) of title 10, United
States Code is amended by inserting ``, or section 3715 of title 14,''
after ``section 101(a)(13)(B) of this title''.
(g) Age and Service Requirements.--Section 12731(f)(2)(B)(i) of
title 10, United States Code is amended by inserting ``, or section
3715 of title 14,'' after ``section 101(a)(13)(B) of this title''.
SEC. 100003. VESSEL TONNAGE DUTIES.
Section 60301 of title 46, United States Code, is amended--
(1) in subsection (a) by striking ``, for fiscal years 2006
through 2010, and 2 cents per ton, not to exceed a total of 10
cents per ton per year, for each fiscal year thereafter,''; and
(2) in subsection (b) by striking ``, for fiscal years 2006
through 2010, and 6 cents per ton, not to exceed a total of 30
cents per ton per year, for each fiscal year thereafter,''.
SEC. 100004. REGISTRATION FEE ON MOTOR VEHICLES.
(a) In General.--Chapter 1 of title 23, United States Code, is
amended by adding at the end the following:
``Sec. 180. Registration fee on motor vehicles.
``(a) In General.--The Administrator of the Federal Highway
Administration shall impose for each year the following registration
fee amounts on the owner of a vehicle registered for operation by a
State motor vehicle department:
``(1) $250 for a covered electric vehicle.
``(2) $100 for a covered hybrid vehicle.
``(b) Withholding of Funds for Noncompliance.--The Administrator
shall withhold, from amounts required to be apportioned to any State
under section 104(b), an amount equal to 125 percent to the amount
required to be remitted under subsection (c)(2). The Administrator
shall withhold the amount on the first day of each fiscal year
beginning after September 30, 2026, in which the State does not meet
the requirements of subsection (c).
``(c) Collection and Remittance of Fee.--
``(1) Collection of fee.--A State motor vehicle department
shall--
``(A) incorporate the collection of the fees
established under subsection (a) into the vehicle
registration and renewal processes administered by such
department, so long as such fees are imposed for each
year in which the fees are required; or
``(B) obtain approval from the Administrator to
establish an alternate means of compliance for the
collection of such fees that is acceptable to the
Administrator.
``(2) Remittance of fee.--Not later than 30 days after the
last day of each month, a State motor vehicle department shall
remit to the Administrator the balance of the total fee amounts
collected under this section in the preceding month less the
portion reserved for administrative expenses under subsection
(e).
``(d) Fee Assessment.--The amounts specified in subsection (a)
shall be increased on an annual basis to account for the rate of
inflation each fiscal year in accordance with the Consumer Price Index
for All Urban Consumers of the Bureau of Labor Statistics.
``(e) Administrative Expenses.--In any fiscal year in which a State
is in compliance with this section, such State may retain an amount not
to exceed 1 percent of the total fees collected under this section for
administrative expenses.
``(f) Applicability of Fees.--The fees imposed under paragraphs (1)
and (2) of subsection (a) shall terminate on October 1, 2035.
``(g) Definitions.--In this section:
``(1) Covered electric vehicle.--The term `covered electric
vehicle' means a covered motor vehicle with an electric motor
as the sole means of propulsion of such vehicle.
``(2) Covered motor vehicle.--The term `covered motor
vehicle' has the meaning given the term `motor vehicle' under
section 154(a) but excludes a motor vehicle that is a covered
farm vehicle or commercial motor vehicle (as such terms are
defined in section 390.5 of title 49, Code of Federal
Regulations).
``(3) Covered hybrid vehicle.--The term `covered hybrid
vehicle' means a covered motor vehicle propelled by a
combination of an electric motor and an internal combustion
engine or other power source and components thereof.''.
(b) Implementation of Certain Processes.--
(1) Implementation.--The Administrator of the Federal
Highway Administration shall provide grants to State motor
vehicle departments to implement a process to carry out section
180 of title 23, United States Code.
(2) Funding.--Out of any money in the Treasury not
otherwise appropriated, $104,000,000 is to remain available
until September 30, 2029, beginning in the first fiscal year
following the date of enactment of this Act, for grants under
paragraph (1).
(3) Eligible amounts.--Each State motor vehicle department
may receive not more than $2,000,000 under this subsection.
(c) Regulations.--The Administrator shall issue such regulations
and guidance as are necessary to--
(1) carry out section 180 of title 23, United States Code
(as added by this Act); and
(2) establish a process for the timely and accurate
remittance of fees collected under such section through an
electronic method.
(d) Report.--Not later than 2 years after the date of enactment of
this Act, the Administrator shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Environment and Public Works of the Senate a report on
the status of the implementation of section 180 of title 23, United
States Code (as added by this Act).
(e) Clerical Amendment.--The analysis for chapter 1 of title 23,
United States Code, is amended by adding at the end the following:
``180. Registration fee on motor vehicles.''.
SEC. 100005. DEPOSIT OF REGISTRATION FEE ON MOTOR VEHICLES.
Any amounts accrued pursuant to section 180 of title 23, United
States Code (as added by this Act), shall be deposited into the Highway
Trust Fund.
SEC. 100006. MOTOR CARRIER DATA.
(a) Public Confirmation of Authorized Motor Carriers.--There is
appropriated $5,000,000 to the Administrator of the Federal Motor
Carrier Safety Administration to establish a public website to present
data on motor carriers, as such term is defined in section 13102 of
title 49, United States Code, in a manner that indicates whether each
motor carrier meets or does not meet all Administration operating
requirements, including by displaying 1 of the following statements for
each motor carrier:
(1) ``This motor carrier meets Federal Motor Carrier Safety
Administration operating requirements and is authorized to
operate on the nation's roadways.''.
(2) ``This motor carrier does not meet Federal Motor
Carrier Safety Administration operating requirements and is not
authorized to operate on the nation's roadways.''.
(b) Usage Fee.--The Administrator shall assess an annual fee of
$100 on each person seeking access to the website established under
subsection (a). In each fiscal year through fiscal year 2033, monies
collected under this subsection shall be--
(1) credited to the account in the Treasury from which the
Administrator incurs expenses for establishing, maintaining,
and updating the website required to be established under
subsection (a); and
(2) available for establishing, maintaining, and updating
such website without further appropriation.
(c) Determination.--A broker, freight forwarder, or household goods
freight forwarder, as such terms are defined in section 13102 of title
49, United States Code, that uses the website established under
subsection (a) to ensure that a motor carrier engaged by such broker,
freight forwarder, or household goods freight forwarder meets Federal
Motor Carrier Safety Administration operating requirements shall be
considered to have taken reasonable and prudent determinations in
engaging such motor carrier.
SEC. 100007. IRA RESCISSIONS.
(a) Repeal of Funding for Alternative Fuel and Low-emission
Aviation Technology Program.--The unobligated balances of amounts made
available to carry out section 40007 of Public Law 117-169 (49 U.S.C.
44504 note) (as in effect on the day before the date of enactment of
this Act) are permanently rescinded.
(b) Repeal of Funding for Neighborhood Access and Equity Grant
Program.--The unobligated balances of amounts made available to carry
out section 177 of title 23, United States Code, (as in effect on the
day before the date of enactment of this Act) are permanently
rescinded.
(c) Repeal of Funding for Federal Building Assistance.--The
unobligated balances of amounts made available to carry out section
60502 of Public Law 117-169 (136 Stat. 2083) (as in effect on the day
before the date of enactment of this Act) are permanently rescinded.
(d) Repeal of Funding for Use of Low-carbon Materials for Federal
Building Assistance.-- The unobligated balances of amounts made
available to carry out section 60503 of Public Law 117-169 (136 Stat.
2083) (as in effect on the day before the date of enactment of this
Act) are permanently rescinded.
(e) Repeal of Funding for General Services Administration Emerging
Technologies.--The unobligated balances of amounts made available to
carry out section 60504 of Public Law 117-169 (136 Stat. 2083) (as in
effect on the day before the date of enactment of this Act) are
permanently rescinded.
(f) Repeal of Environmental Review Implementation Funds.--The
unobligated balances of amounts made available to carry out section 178
of title 23, United States Code, (as in effect on the day before the
date of enactment of this Act) are permanently rescinded.
(g) Repeal of Funding for Low-carbon Transportation Materials
Grants.-- The unobligated balances of amounts made available to carry
out section 179 of title 23, United States Code, (as in effect on the
day before the date of enactment of this Act) are permanently
rescinded.
SEC. 100008. AIR TRAFFIC CONTROL STAFFING AND MODERNIZATION.
(a) In General.--For the purpose of the acquisition, construction,
sustainment, improvement, and operation of facilities and equipment
necessary to improve or maintain aviation safety, and for personnel
expenses related to such facilities and equipment, in addition to
amounts otherwise made available, there is appropriated to the
Administrator of the Federal Aviation Administration for fiscal year
2025, out of any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2029--
(1) $2,160,000,000 for air traffic control tower and
terminal radar approach control facility replacement, of which
not less than $240,000,000 shall be available for Contract
Tower Program air traffic control tower replacement and airport
sponsor-owned air traffic control tower replacement;
(2) $3,000,000,000 for radar systems replacement;
(3) $4,750,000,000 for telecommunications infrastructure
and systems replacement;
(4) $500,000,000 for runway safety projects, airport
surface surveillance projects, and to carry out section 347 of
the FAA Reauthorization Act of 2024;
(5) $550,000,000 for unstaffed infrastructure sustainment
and replacement;
(6) $300,000,000 to carry out section 619 of the FAA
Reauthorization Act of 2024;
(7) $260,000,000 to carry out section 44745 of title 49,
United States Code; and
(8) $1,000,000,000 for air traffic controller recruitment,
retention, training, and advanced training technologies.
(b) Quarterly Reporting.--Not later than 180 days after the date of
enactment of this Act, and every 90 days thereafter, the Administrator
shall submit to Congress a report that describes any expenditures under
this section.
SEC. 100009. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS
APPROPRIATIONS.
In addition to amounts otherwise made available, there is
appropriated for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated--
(1) $241,750,000 for necessary expenses for capital repair
and restoration of the building and site of the John F. Kennedy
Center for the Performing Arts, to remain available until
September 30, 2029;
(2) $7,707,000 for necessary expenses for the operation,
maintenance, and security of the John F. Kennedy Center for the
Performing Arts, to remain available until September 30, 2027;
and
(3) $7,200,000 for administrative expenses of the John F.
Kennedy Center for the Performing Arts to carry out the
purposes of this section, to remain available until September
30, 2029.
TITLE XI--COMMITTEE ON WAYS AND MEANS, ``THE ONE, BIG, BEAUTIFUL BILL''
SEC. 110000. REFERENCES TO THE INTERNAL REVENUE CODE OF 1986, ETC.
(a) References.--Except as otherwise expressly provided, whenever
in this title, an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
(b) Certain Rules Regarding Effect of Rate Changes Not
Applicable.--Section 15 of the Internal Revenue Code of 1986 shall not
apply to any change in rate of tax by reason of any provision of, or
amendment made by, this title.
Subtitle A--Make American Families and Workers Thrive Again
PART 1--PERMANENTLY PREVENTING TAX HIKES ON AMERICAN FAMILIES AND
WORKERS
SEC. 110001. EXTENSION OF MODIFICATION OF RATES.
(a) In General.--Section 1(j) is amended--
(1) in paragraph (1), by striking ``, and before January 1,
2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Inflation Adjustment.--Section 1(j)(3)(B)(i) is amended by
inserting ``in the case of any taxable year beginning after December
31, 2025, solely for purposes of determining the dollar amounts at
which the 35-percent rate bracket ends and the 37-percent rate bracket
begins,'' before ``subsection (f)(3)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110002. EXTENSION OF INCREASED STANDARD DEDUCTION AND TEMPORARY
ENHANCEMENT.
(a) In General.--Section 63(c)(7) is amended--
(1) by striking ``, and before January 1, 2026'' in the
matter preceding subparagraph (A), and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Temporary Additional Increase in Standard Deduction.--Section
63(c)(7) is amended by adding at the end the following new
subparagraph:
``(C) Temporary additional increase in standard
deduction.--In the case of any taxable year beginning
after December 31, 2024, and before January 1, 2029--
``(i) the dollar amount otherwise in effect
under paragraph (2)(B) shall be increased by
$1,500, and
``(ii) the dollar amount otherwise in
effect under paragraph (2)(C) shall be
increased by $1,000.''.
(c) Recalculation of Inflation Adjustment.--Section
63(c)(7)(B)(ii)(II) is amended by striking ``, determined by
substituting `2017' for `2016' in subparagraph (A)(ii) thereof''.
(d) Effective Date.--
(1) In general.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31, 2025.
(2) Temporary additional increase in standard deduction.--
The amendment made by subsection (b) shall apply to taxable
years beginning after December 31, 2024.
SEC. 110003. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS.
(a) In General.--Section 151(d)(5) is amended--
(1) by striking ``and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110004. EXTENSION OF INCREASED CHILD TAX CREDIT AND TEMPORARY
ENHANCEMENT.
(a) Extension of Expanded Child Tax Credit.--Section 24(h) is
amended--
(1) in paragraph (1), by striking ``and before January 1,
2026,'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Increase in Child Tax Credit.--Section 24(h)(2) is amended to
read as follows:
``(2) Credit amount.--Subsection (a) shall be applied by
substituting--
``(A) in the case of taxable years beginning after
December 31, 2024, and before December 31, 2028,
`$2,500' for `$1,000', or
``(B) in the case of any subsequent taxable year,
`$2,000' for `$1,000'.''.
(c) Social Security Number Required.--Section 24(h)(7) is amended
to read as follows:
``(7) Social security number required.--
``(A) In general.--No credit shall be allowed under
this section to a taxpayer with respect to any
qualifying child unless the taxpayer includes on the
return of tax for the taxable year--
``(i) such individual's social security
number,
``(ii) the social security number of such
qualifying child, and
``(iii) if the individual is married, the
social security number of such individual's
spouse.
``(B) Social security number.--For purposes of this
paragraph, the term `social security number' means a
social security number issued to an individual by the
Social Security Administration, but only if the social
security number is issued--
``(i) to a citizen of the United States or
pursuant to subclause (I) (or that portion of
subclause (III) that relates to subclause (I))
of section 205(c)(2)(B)(i) of the Social
Security Act, and
``(ii) before the due date for such return.
``(C) Married individuals.--Rules similar to the
rules of section 32(d) shall apply to this section.''.
(d) Inflation Adjustments.--
(1) In general.--Section 24(i) is amended to read as
follows:
``(i) Inflation Adjustments.--
``(1) Maximum amount of refundable credit.--In the case of
a taxable year beginning after 2024, the $1,400 amount in
subsection (h)(5) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`2017' for `2016' in subparagraph (A)(ii) thereof.
``(2) Special rule for adjustment of credit amount.--In the
case of a taxable year beginning after 2028, the $2,000 amount
in subsection (h)(2)(B), shall be increased by an amount equal
to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`2024' for `2016' in subparagraph (A)(ii) thereof.
``(3) Rounding.--If any increase under this subsection is
not a multiple of $100, such increase shall be rounded to the
next lowest multiple of $100.''.
(e) Conforming Amendment.--Section 24(h)(5) is amended to read as
follows:
``(5) Maximum amount of refundable credit.--The amount
determined under subsection (d)(1)(A) with respect to any
qualifying child shall not exceed $1,400, and such subsection
shall be applied without regard to paragraph (4) of this
subsection.''.
(f) Treatment of Certain Benefits of Members of Religious and
Apostolic Associations as Earned Income.--Section 24(d)(1) is amended
by adding at the end the following: ``For purposes of subparagraph (B),
any amount treated as a dividend received under the last sentence of
section 501(d) shall be treated as earned income which is taken into
account in computing taxable income for the taxable year.''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 110005. EXTENSION OF DEDUCTION FOR QUALIFIED BUSINESS INCOME AND
PERMANENT ENHANCEMENT.
(a) Made Permanent.--Section 199A is amended by striking subsection
(i).
(b) Increase in Deduction.--Subsections (a)(2), (b)(1)(B), and
(b)(2)(A) of section 199A are each amended by striking ``20 percent''
and inserting ``23 percent''.
(c) Modification of Limitations Based on Taxable Income.--
(1) In general.--Section 199A(b)(3) is amended to read as
follows:
``(3) Modification of determination of combined qualified
business income amount based on taxable income.--
``(A) Exception from limitations.--In the case of
any taxpayer whose taxable income for the taxable year
does not exceed the threshold amount--
``(i) paragraph (2) shall be applied
without regard to subparagraph (B), and
``(ii) a specified service trade or
business shall not fail to be treated as a
qualified trade or business solely by reason of
subsection (d)(1)(A).
``(B) Phase-in of limitations.--In the case of any
taxpayer whose taxable income for the taxable year
exceeds the threshold amount, the sum described in
paragraph (1)(A) (determined without regard to this
subparagraph) shall instead be an amount (if greater)
equal to the excess (if any) of--
``(i) the sum described in paragraph (1)(A)
(determined by applying the rules of clauses
(i) and (ii) of subparagraph (A)), over
``(ii) the limitation phase-in amount.
``(C) Limitation phase-in amount.--For purposes of
subparagraph (B), the limitation phase-in amount shall
be an amount equal to 75 percent of the excess (if any)
of--
``(i) the taxable income of the taxpayer
for the taxable year, over
``(ii) the threshold amount.''.
(2) Conforming amendment.--Section 199A(d) is amended by
striking paragraph (3).
(d) Deduction for Qualified Business Income to Apply to Certain
Interest Dividends of Qualified Business Development Companies.--
(1) In general.--Subsections (b)(1)(B) and (c)(1) of
section 199A are each amended by inserting ``, qualified BDC
interest dividends,'' after ``qualified REIT dividends''.
(2) Qualified bdc interest dividend defined.--Section
199A(e) is amended by adding at the end the following new
paragraph:
``(5) Qualified bdc interest dividend.--
``(A) In general.--The term `qualified BDC interest
dividend' means any dividend from an electing business
development company received during the taxable year
which is attributable to net interest income of such
company which is properly allocable to a qualified
trade or business of such company.
``(B) Electing business development company.--For
purposes of this paragraph, the term `electing business
development company' means a business development
company (as defined in section 2(a) of the Investment
Company Act of 1940) which has an election in effect
under section 851 to be treated as a regulated
investment company.''.
(e) Modified Inflation Adjustment.--Section 199A(e)(2)(B) is
amended--
(1) by striking ``2018'' and inserting ``2025'', and
(2) in clause (ii), by striking ``, determined by
substituting `calendar year 2017' for `calendar year 2016' in
subparagraph (A)(ii) thereof''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110006. EXTENSION OF INCREASED ESTATE AND GIFT TAX EXEMPTION
AMOUNTS AND PERMANENT ENHANCEMENT.
(a) In General.--Section 2010(c)(3) is amended--
(1) in subparagraph (A) by striking ``$5,000,000'' and
inserting ``$15,000,000'',
(2) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking
``2011'' and inserting ``2026'', and
(B) in clause (ii), by striking ``calendar year
2010'' and inserting ``calendar year 2025'', and
(3) by striking subparagraph (C).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110007. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION
AND PHASE-OUT THRESHOLDS.
(a) In General.--Section 55(d)(4) is amended--
(1) in subparagraph (A), by striking ``, and before January
1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110008. EXTENSION OF LIMITATION ON DEDUCTION FOR QUALIFIED
RESIDENCE INTEREST.
(a) In General.--Section 163(h)(3)(F) is amended--
(1) in clause (i), by striking ``, and before January 1,
2026'',
(2) by striking clause (ii) and redesignating clauses (iii)
and (iv) as clauses (ii) and (iii), respectively, and
(3) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110009. EXTENSION OF LIMITATION ON CASUALTY LOSS DEDUCTION.
(a) In General.--Section 165(h)(5) is amended--
(1) in subparagraph (A), by striking ``and before January
1, 2026,'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110010. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTION.
(a) In General.--Section 67(g) is amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' and in the heading
inserting ``Beginning After 2017''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110011. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS.
(a) In General.--Section 68 is amended to read as follows:
``SEC. 68. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS.
``(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 exceeds the
dollar amount at which the 37 percent rate bracket under
section 1 begins with respect to the taxpayer.
``(b) Coordination With Other Limitations.--This section shall be
applied after the application of any other limitation on the allowance
of any itemized deduction.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 110012. TERMINATION OF QUALIFIED BICYCLE COMMUTING REIMBURSEMENT
EXCLUSION.
(a) In General.--Section 132(f)(8) is amended by striking ``, and
before January 1, 2026''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 110013. EXTENSION OF LIMITATION ON EXCLUSION AND DEDUCTION FOR
MOVING EXPENSES.
(a) Termination of Deduction.--Section 217(k) is amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Termination of Reimbursement.--Section 132(g)(2) is amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110014. EXTENSION OF LIMITATION ON WAGERING LOSSES.
(a) In General.--Section 165(d) is amended by striking ``and before
January 1, 2026,''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 110015. EXTENSION OF INCREASED LIMITATION ON CONTRIBUTIONS TO ABLE
ACCOUNTS AND PERMANENT ENHANCEMENT.
(a) In General.--Section 529A(b)(2)(B) is amended--
(1) in clause (i), by inserting ``(determined by
substituting `1996' for `1997' in paragraph (2)(B) thereof)''
after ``section 2503(b)'', and
(2) in clause (ii), by striking ``before January 1, 2026''.
(b) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
contributions made after December 31, 2025.
(2) Modified inflation adjustment.--The amendment made by
subsection (a)(1) shall apply to taxable years beginning after
December 31, 2025.
SEC. 110016. EXTENSION OF SAVERS CREDIT ALLOWED FOR ABLE CONTRIBUTIONS.
(a) In General.--Section 25B(d)(1) is amended to read as follows:
``(1) In general.--The term `qualified retirement savings
contributions' means, with respect to any taxable year, the sum
of--
``(A) the amount of contributions made by the
eligible individual during such taxable year to the
ABLE account (within the meaning of section 529A) of
which such individual is the designated beneficiary,
and
``(B) in the case of any taxable year beginning
before January 1, 2027--
``(i) the amount of the qualified
retirement contributions (as defined in section
219(e)) made by the eligible individual,
``(ii) the amount of--
``(I) any elective deferrals (as
defined in section 402(g)(3)) of such
individual, and
``(II) any elective deferral of
compensation by such individual under
an eligible deferred compensation plan
(as defined in section 457(b)) of an
eligible employer described in section
457(e)(1)(A), and
``(iii) the amount of voluntary employee
contributions by such individual to any
qualified retirement plan (as defined in
section 4974(c)).''.
(b) Coordination With SECURE 2.0 Act of 2022 Amendment.--Paragraph
(1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and
the Internal Revenue Code of 1986 shall be applied and administered as
though such paragraph were never enacted.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2025.
SEC. 110017. EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION PROGRAMS TO
ABLE ACCOUNTS PERMITTED.
(a) In General.--Section 529(c)(3)(C)(i)(III) is amended by
striking ``before January 1, 2026,''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 110018. EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS PERFORMING
SERVICES IN THE SINAI PENINSULA AND ENHANCEMENT TO
INCLUDE ADDITIONAL AREAS.
(a) Treatment Made Permanent.--Section 11026(a) of Public Law 115-
97 is amended by striking ``with respect to the applicable period,''.
(b) Kenya, Mali, Burkina Faso, and Chad Included as Hazardous Duty
Areas.--Section 11026(b) of Public Law 115-97 is amended to read as
follows:
``(b) Qualified Hazardous Duty Area.--For purposes of this section,
the term 'qualified hazardous duty area' means--
``(1) the Sinai Peninsula of Egypt, if as of December, 22,
2017, any member of the Armed Forces of the United States is
entitled to special pay under section 310 of title 37, United
States Code (relating to special pay; duty subject to hostile
fire or imminent danger), for services performed in such
location, and
``(2) Kenya, Mali, Burkina Faso, and Chad if, as of the
date of the enactment of this paragraph, any member of the
Armed Forces of the United States is entitled to special pay
under such section, for services performed in such location.
Such term includes any such location only during the period such
entitlement is in effect with respect to such location.''.
(c) Conforming Amendment.--Section 11026 of Public Law 115-97 is
amended by striking subsections (c) and (d).
(d) Effective Date.--The amendments made by this section shall take
effect on January 1, 2026.
SEC. 110019. EXTENSION OF EXCLUSION FROM GROSS INCOME OF STUDENT LOANS
DISCHARGED ON ACCOUNT OF DEATH OR DISABILITY.
(a) In General.--Section 108(f)(5) is amended to read as follows:
``(5) Discharges on account of death or disability.--
``(A) In general.--In the case of an individual,
gross income does not include any amount which (but for
this subsection) would be includible in gross income
for such taxable year by reason of the discharge (in
whole or in part) of any loan described in subparagraph
(B), if such discharge was--
``(i) pursuant to subsection (a) or (d) of
section 437 of the Higher Education Act of 1965
or the parallel benefit under part D of title
IV of such Act (relating to the repayment of
loan liability),
``(ii) pursuant to section 464(c)(1)(F) of
such Act, or
``(iii) otherwise discharged on account of
death or total and permanent disability of the
student.
``(B) Loans discharged.--A loan is described in
this subparagraph if such loan is--
``(i) a student loan (as defined in
paragraph (2)), or
``(ii) a private education loan (as defined
in section 140(a) of the Consumer Credit
Protection Act (15 U.S.C. 1650(a)).
``(C) Social security number requirement.--
``(i) In general.--Subparagraph (A) shall
not apply with respect to any discharge during
any taxable year unless the taxpayer includes
on the return of tax for such taxable year--
``(I) the taxpayer's social
security number, and
``(II) if the taxpayer is married,
the social security number of such
taxpayers's spouse.
``(ii) Social security number.--For
purposes of this subparagraph, the term `social
security number' has the meaning given such
term in section 24(h)(7).
``(iii) Married individuals.--Rules similar
to the rules of section 32(d) shall apply to
this subparagraph.''.
(b) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2) is amended by
striking ``and'' at the end of subparagraph (U), by striking the period
at the end of subparagraph (V) and inserting ``, and'', and by
inserting after subparagraph (V) the following new subparagraph:
``(W) an omission of a correct social security
number required under section 108(f)(5)(C) (relating to
discharges on account of death or disability).''.
(c) Effective Date.--The amendments made by this section shall
apply to discharges after December 31, 2025.
PART 2--ADDITIONAL TAX RELIEF FOR AMERICAN FAMILIES AND WORKERS
SEC. 110101. NO TAX ON TIPS.
(a) Deduction Allowed.--Part VII of subchapter B of chapter 1 is
amended by redesignating section 224 as section 225 and by inserting
after section 223 the following new section:
``SEC. 224. QUALIFIED TIPS.
``(a) In General.--There shall be allowed as a deduction an amount
equal to the qualified tips received during the taxable year that are
included on statements furnished to the individual pursuant to section
6041(d)(3), 6041A(e)(3), 6050W(f)(2), 6051(a)(18), or reported by the
taxpayer on Form 4137 (or successor).
``(b) Tips Received in Course of Trade or Business.--In the case of
qualified tips received by an individual during any taxable year in the
course of any trade or business of such individual, such qualified tips
shall be taken into account under subsection (a) only to the extent
that the gross receipts of the taxpayer from such trade or business for
such taxable year (including such qualified tips) exceeds the sum of--
``(1) cost of goods sold that are allocable to such
receipts, plus
``(2) other expenses, losses, or deductions (other than the
deduction allowed under this section), which are properly
allocable to such receipts.
``(c) Qualified Tips.--For purposes of this section--
``(1) In general.--The term `qualified tip' means any cash
tip received by an individual in an occupation which
traditionally and customarily received tips on or before
December 31, 2024, as provided by the Secretary.
``(2) Exclusions.--Such term shall not include any amount
received by an individual unless--
``(A) such amount is paid voluntarily without any
consequence in the event of nonpayment, is not the
subject of negotiation, and is determined by the payor,
``(B) the trade or business in the course of which
the individual receives such amount is not a specified
service trade or business (as defined in section
199A(d)(2)),
``(C) such individual is not a highly compensated
employee (as defined in section 414(q)(1)) of any
employer for the calendar year in which the taxable
year begins, and does not receive earned income in
excess of the dollar amount in effect under section
414(q)(1)(B)(i) for such calendar year, and
``(D) such other requirements as may be established
by the Secretary in regulations or other guidance are
satisfied.
``(d) Social Security Number Required.--
``(1) In general.--No deduction shall be allowed under this
section unless the taxpayer includes on the return of tax for
the taxable year--
``(A) such individual's social security number (as
defined in section 24(h)(7)), and
``(B) if the individual is married, the social
security number of such individual's spouse.
``(2) Married individuals.--Rules similar to the rules of
section 32(d) shall apply to this section.
``(e) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary to prevent reclassification of
income as qualified tips, including regulations or other guidance to
prevent abuse of the deduction allowed by this section.
``(f) Termination.--No deduction shall be allowed under this
section for any taxable year beginning after December 31, 2028.''.
(b) Deduction Allowed to Non-itemizers.--Section 63(b) is amended
by striking ``and'' at the end of paragraph (3), by striking the period
at the end of paragraph (4) and inserting ``and'', and by adding at the
end the following new paragraph:
``(5) the deduction provided in section 224.''.
(c) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended by striking ``and'' at the
end of subparagraph (V), by striking the period at the end of
subparagraph (W) and inserting ``, and'', and by inserting after
subparagraph (W) the following new subparagraph:
``(X) an omission of a correct social security
number required under section 224(d) (relating to
deduction for qualified tips).''.
(d) Exclusion From Qualified Business Income.--Section 199A(c)(4)
is amended by striking ``and'' at the end of subparagraph (B), by
striking the period at the end of subparagraph (C) and inserting ``,
and'', and by adding at the end the following new subparagraph:
``(D) any amount with respect to which a deduction
is allowable to the taxpayer under section 224(a) for
the taxable year.''.
(e) Extension of Tip Credit to Beauty Service Business.--Section
45B(b)(2) is amended to read as follows:
(1) In general.--
``(2) Application only to certain lines of business.--In
applying paragraph (1) there shall be taken into account only
tips received from customers or clients in connection with the
following services:
``(A) The providing, delivering, or serving of food
or beverages for consumption, if the tipping of
employees delivering or serving food or beverages by
customers is customary.
``(B) The providing of any of the following
services to a customer or client if the tipping of
employees providing such services is customary:
``(i) Barbering and hair care.
``(ii) Nail care.
``(iii) Esthetics.
``(iv) Body and spa treatments.''.
(2) Credit determined with respect to minimum wage in
effect.--Section 45B(b)(1)(B) is amended--
(A) by striking ``as in effect on January 1, 2007,
and'', and
(B) by inserting ``, and in the case of food or
beverage establishments, as in effect on January 1,
2007'' after ``without regard to section 3(m) of such
Act''.
(f) Reporting Requirements.--
(1) Returns for payments made in the course of a trade or
business.--
(A) Statement furnished to secretary.-- Section
6041(a) is amended by inserting ``(including a separate
accounting of any such amounts properly designated as
tips and whether such tips are received in an
occupation described in section 224(c)(1))'' after
``such gains, profits, and income''.
(B) Statement furnished to payee.--Section 6041(d)
is amended by striking ``and'' at the end of paragraph
(1), by striking the period at the end of paragraph (2)
and inserting ``, and'', and by inserting after
paragraph (2) the following new paragraph:
``(3) in the case of compensation to non-employees, the
portion of payments that have been properly designated as tips
and whether such tips are received in an occupation described
in section 224(c)(1).''.
(2) Returns for payments made for services and direct
sales.--
(A) Statement furnished to secretary.-- Section
6041A(a) is amended by inserting ``(including a
separate accounting of any such amounts properly
designated as tips and whether such tips are received
in an occupation described in section 224(c)(1))''
after ``amount of such payments''.
(B) Statement furnished to payee.--Section 6041A(e)
is amended by striking ``and'' at the end of paragraph
(1), by striking the period at the end of paragraph (2)
and inserting ``, and'', and by inserting after
paragraph (2) the following new paragraph:
``(3) the portion of payments that have been properly
designated as tips and whether such tips are received in an
occupation described in section 224(c)(1).''.
(3) Returns relating to third party settlement
organizations.--
(A) Statement furnished to secretary.--Section
6050W(a) is amended by striking ``and'' at the end of
paragraph (1), by striking the period at the end of
paragraph (2) and inserting ``and'', and by adding at
the end the following new paragraph:
``(3) in the case of a third party settlement organization,
the portion of reportable payment transactions that have been
properly designated by payors as tips and whether such tips are
received in an occupation described in section 224(c)(1).''.
(B) Statement furnished to payee.--Section
6050W(f)(2) is amended by inserting ``(including a
separate accounting of any such amounts that have been
properly designated by payors as tips and whether such
tips are received in an occupation described in section
224(c)(1))'' after ``reportable payment transactions''.
(4) Returns related to wages.--Section 6051(a) is amended
by striking ``and'' at the end of paragraph (16), by striking
the period at the end of paragraph (17) and inserting ``,
and'', and by inserting after paragraph (17) the following new
paragraph:
``(18) the total amount of tips reported by the employee
under section 6053(a).''.
(g) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 is amended by redesignating the item relating
to section 224 as relating to section 225 and by inserting after the
item relating to section 223 the following new item:
``Sec. 224. Qualified tips.''.
(h) Published List of Occupations Traditionally Receiving Tips.--
Not later than 90 days after the date of the enactment of this Act, the
Secretary of the Treasury (or the Secretary's delegate) shall publish a
list of occupations which traditionally and customarily received tips
on or before December 31, 2024, for purposes of section 224(c)(1) (as
added by subsection (a)).
(i) Withholding.--The Secretary of the Treasury (or the Secretary's
delegate) shall modify the tables and procedures prescribed under
section 3402(a) to take into account the deduction allowed under
section 224 (as added by this Act).
(j) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 110102. NO TAX ON OVERTIME.
(a) Deduction Allowed.--Part VII of subchapter B of chapter 1, as
amended by the preceding provisions of this Act, is amended by
redesignating section 225 as section 226 and by inserting after section
224 the following new section:
``SEC. 225. QUALIFIED OVERTIME COMPENSATION.
``(a) In General.--There shall be allowed as a deduction an amount
equal to the qualified overtime compensation received during the
taxable year.
``(b) Qualified Overtime Compensation.--
``(1) In general.--For purposes of this section, the term
`qualified overtime compensation' means overtime compensation
paid to an individual required under section 7 of the Fair
Labor Standards Act of 1938 that is in excess of the regular
rate (as used in such section) at which such individual is
employed.
``(2) Exclusions.--Such term shall not include--
``(A) any qualified tip (as defined in section
224(c)), or
``(B) any amount received by an individual during a
taxable year if such individual is a highly compensated
employee (as defined in section 414(q)(1)) of any
employer for the calendar year in which the taxable
year begins, or receives earned income in excess of the
dollar amount in effect under section 414(q)(1)(B)(i)
for such calendar year.
``(c) Social Security Number Required.--
``(1) In general.--No deduction shall be allowed under this
section unless the taxpayer includes on the return of tax for
the taxable year--
``(A) such individual's social security number (as
defined in section 24(h)(7)), and
``(B) if the individual is married, the social
security number of such individual's spouse.
``(2) Married individuals.--Rules similar to the rules of
section 32(d) shall apply to this section.
``(d) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section.
``(e) Termination.--No deduction shall be allowed under this
section for any taxable year beginning after December 31, 2028.''.
(b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended
by the preceding provisions of this Act, is amended by striking ``and''
at the end of paragraph (4), by striking the period at the end of
paragraph (5) and inserting ``and'', and by adding at the end the
following new paragraph:
``(6) the deduction provided in section 225.''.
(c) Requirement to Include Overtime Compensation on W-2.--Section
6051(a), as amended by the preceding provision of this Act, is amended
by striking ``and'' at the end of paragraph (17), by striking the
period at the end of paragraph (18) and inserting ``, and'', and by
inserting after paragraph (18) the following new paragraph:
``(19) the total amount of qualified overtime compensation
(as defined in section 225(b)).''.
(d) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended by striking ``and'' at the
end of subparagraph (W), by striking the period at the end of
subparagraph (X) and inserting ``, and'', and by inserting after
subparagraph (X) the following new subparagraph:
``(Y) an omission of a correct social security
number required under section 225(c) (relating to
deduction for qualified overtime).''.
(e) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1, as amended by the preceding provisions of
this Act, is amended by redesignating the item relating to section 225
as an item relating to section 226 and by inserting after the item
relating to section 224 the following new item:
``Sec. 225. Qualified overtime compensation.''.
(f) Withholding.--The Secretary of the Treasury (or the Secretary's
delegate) shall modify the tables and procedures prescribed under
section 3402(a) to take into account the deduction allowed under
section 225 (as added by this Act).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 110103. ENHANCED DEDUCTION FOR SENIORS.
(a) In General.--Section 63(f) is amended by adding at the end the
following new paragraph:
``(5) Bonus additional amount for seniors.--
``(A) In general.--In the case of any taxable year
beginning after December 31, 2024, and before January
1, 2029, the dollar amount in effect under paragraph
(1) shall be increased by $4,000.
``(B) Limitation based on modified adjusted gross
income.--In the case of any taxpayer for any taxable
year, the $4,000 amount in subparagraph(A) shall be
reduced (but not below zero) by 4 percent of so much of
the taxpayer's modified adjusted gross income as
exceeds $75,000 ($150,000 in the case of a joint
return).
``(C) Modified adjusted gross income.--For purposes
of this paragraph, the term `modified adjusted gross
income' means the adjusted gross income of the taxpayer
for the taxable year increased by any amount excluded
from gross income under section 911, 931, or 933.
``(D) Social security number required.--
``(i) In general.--Subparagraph (A) shall
not apply unless the taxpayer includes on the
return of tax for the taxable year--
``(I) such individual's social
security number (as defined in section
24(h)(7)), and
``(II) if the individual is
married, the social security number of
such individual's spouse.
``(ii) Married individuals.--Rules similar
to the rules of section 32(d) shall apply to
this section.
``(E) Coordination with inflation adjustment.--
Subsection (c)(4) shall not apply to any dollar amount
contained in this paragraph.
``(F) Allowance to seniors who elect to itemize.--
In the case of a taxpayer who elects to itemize
deductions for any taxable year beginning after
December 31, 2024, and before January 1, 2029, there
shall be allowed as a deduction the aggregate increase
which would be determined under subparagraph (A)
(determined after the application of subparagraphs (B),
(D), and (E)) with respect to such taxpayer for such
taxable year if such taxpayer did not so elect to
itemize deductions for such taxable year.''.
(b) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended by striking ``and'' at the
end of subparagraph (X), by striking the period at the end of
subparagraph (Y) and inserting ``, and'', and by inserting after
subparagraph (Y) the following new subparagraph:
``(Z) an omission of a correct social security
number required under section 63(f)(5)(D) (relating to
bonus additional amount for seniors).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 110104. NO TAX ON CAR LOAN INTEREST.
(a) In General.--Section 163(h) is amended by redesignating
paragraph (4) as paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) Special rules for taxable years 2024 through 2028
relating to qualified passenger vehicle loan interest.--
``(A) In general.--In the case of taxable years
beginning after December 31, 2024, and before January
1, 2029, for purposes of this subsection the term
`personal interest' shall not include qualified
passenger vehicle loan interest.
``(B) Qualified passenger vehicle loan interest
defined.--
``(i) In general.--For purposes of this
paragraph, the term `qualified passenger
vehicle loan interest' means any interest which
is paid or accrued during the taxable year on
indebtedness incurred by the taxpayer after
December 31, 2024, for the purchase of, and
that is secured by a first lien on, an
applicable passenger vehicle for personal use.
``(ii) Exceptions.--Such term shall not
include any amount paid or incurred on any of
the following:
``(I) A loan to finance fleet
sales.
``(II) A personal cash loan secured
by a vehicle previously purchased by
the taxpayer.
``(III) A loan incurred for the
purchase of a commercial vehicle that
is not used for personal purposes.
``(IV) Any lease financing.
``(V) A loan to finance the
purchase of a vehicle with a salvage
title.
``(VI) A loan to finance the
purchase of a vehicle intended to be
used for scrap or parts.
``(C) Limitations.--
``(i) Dollar limit.--The amount of interest
taken into account by a taxpayer under
subparagraph (B) for any taxable year shall not
exceed $10,000.
``(ii) Limitation based on modified
adjusted gross income.--
``(I) In general.--The amount which
is otherwise allowable as a deduction
under subsection (a) as qualified
passenger vehicle loan interest
(determined without regard to this
clause and after the application of
clause (i)) shall be reduced (but not
below zero) by $200 for each $1,000 (or
portion thereof) by which the modified
adjusted gross income of the taxpayer
for the taxable year exceeds $100,000
($200,000 in the case of a joint
return).
``(II) Modified adjusted gross
income.--For purposes of this clause,
the term `modified adjusted gross
income' means the adjusted gross income
of the taxpayer for the taxable year
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)(I) which is manufactured primarily
for use on public streets, roads, and highways,
``(II) which has at least 2 wheels, and
``(III) which is a car, minivan, van, sport
utility vehicle, pickup truck, or motorcycle,
``(ii) which is an all-terrain vehicle
(designed for use on land), or
``(iii) any trailer, camper, or vehicle
(designed for use on land) which--
``(I) is designed to provide
temporary living quarters for
recreational, camping, or seasonal use,
and
``(II) is a motor vehicle or is
designed to be towed by, or affixed to,
a motor vehicle.
Such term shall not include any vehicle the final
assembly of which did not occur within the United
States.
``(E) Other definitions and special rules.--For
purposes of this paragraph--
``(i) All-terrain vehicle.--The term `all-
terrain vehicle' means any motorized vehicle
which has 3 or 4 wheels, a seat designed to be
straddled by the operator, and handlebars for
steering control.
``(ii) Final assembly.--For purposes of
subparagraph (D), the term `final assembly'
means the process by which a manufacturer
produces a vehicle at, or through the use of, a
plant, factory, or other place from which the
vehicle is delivered to a dealer or importer
with all component parts necessary for the
mechanical operation of the vehicle included
with the vehicle, whether or not the component
parts are permanently installed in or on the
vehicle.
``(iii) Treatment of refinancing.--
Indebtedness described in subparagraph (B)
shall include indebtedness that results from
refinancing any indebtedness described in such
subparagraph, and that is secured by a first
lien on the applicable passenger vehicle with
respect to which the refinanced indebtedness
was incurred, but only to the extent the amount
of such resulting indebtedness does not exceed
the amount of such refinanced indebtedness.
``(iv) Related parties.--Indebtedness
described in subparagraph (B) shall not include
any indebtedness owed to a person who is
related (within the meaning of section 267(b)
or 707(b)(1)) to the taxpayer.''.
(b) Deduction Allowed Whether or Not Taxpayer Itemizes.--Section
62(a) is amended by inserting after paragraph (21) the following new
paragraph:
``(22) Qualified passenger vehicle loan interest.--So much
of the deduction allowed by section 163(a) as is attributable
to the exception under section 163(h)(4)(A).''.
(c) Reporting.--Subpart B of part III of subchapter A of chapter 61
is amended by adding at the end the following new section:
``SEC. 6050AA. RETURNS RELATING TO APPLICABLE PASSENGER VEHICLE LOAN
INTEREST RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS.
``(a) In General.--Any person--
``(1) who is engaged in a trade or business, and
``(2) who, in the course of such trade or business,
receives from any individual interest aggregating $600 or more
for any calendar year on a specified passenger vehicle loan,
shall make the return described in subsection (b) with respect to each
individual from whom such interest was received at such time as the
Secretary may provide.
``(b) Form and Manner of Returns.--A return is described in this
subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name and address of the individual from
whom the interest described in subsection (a)(2) was
received,
``(B) the amount of such interest received for the
calendar year,
``(C) the amount of outstanding principal on the
specified passenger vehicle loan as of the beginning of
such calendar year,
``(D) the date of the origination of such loan,
``(E) the year, make, and model of the applicable
passenger vehicle which secures such loan (or such
other description of such vehicle as the Secretary may
prescribe), and
``(F) such other information as the Secretary may
prescribe.
``(c) Statements to Be Furnished to Individuals With Respect to
Whom Information Is Required.--Every person required to make a return
under subsection (a) shall furnish to each individual whose name is
required to be set forth in such return a written statement showing--
``(1) the name, address, and phone number of the
information contact of the person required to make such return,
and
``(2) the information described in subparagraphs (B), (C),
(D), and (E) of subsection (b)(2) with respect to such
individual (and such information as is described in subsection
(b)(2)(F) with respect to such individual as the Secretary may
provide for purpoeses of this subsection).
The written statement required under the preceding sentence shall be
furnished on or before January 31 of the year following the calendar
year for which the return under subsection (a) was required to be made.
``(d) Definitions.--For purposes of this section--
``(1) In general.--Terms used in this section which are
also used in paragraph (4) of section 163(h) shall have the
same meaning as when used in such paragraph.
``(2) Specified passenger vehicle loan.--The term
`specified passenger vehicle loan' means the indebtedness
described in section 163(h)(4)(B) with respect to any
applicable passenger vehicle.
``(e) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance to
prevent the duplicate reporting of information under this section.''.
(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 is amended by adding at the end the
following new item:
``Sec. 6050AA. Returns relating to applicable passenger vehicle loan
interest received in trade or business from
individuals.''.
(e) Effective Date.--The amendments made by this section shall
apply to indebtedness incurred after December 31, 2024.
SEC. 110105. ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT.
(a) Increase of Amount of Qualified Child Care Expenditures Taken
Into Account.--Section 45F(a)(1) is amended by striking ``25 percent''
and inserting ``40 percent (50 percent in the case of an eligible small
business)''.
(b) Increase of Maximum Credit Amount.--Subsection (b) of section
45F is amended to read as follows:
``(b) Dollar Limitation.--
``(1) In general.--The credit allowable under subsection
(a) for any taxable year shall not exceed $500,000 ($600,000 in
the case of an eligible small business).
``(2) Inflation adjustment.--In the case of any taxable
year beginning after 2026, the $500,0000 and $600,000 amounts
in paragraph (1) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2025' for `calendar year 2016' in
subparagraph (A)(ii) thereof.''.
(c) Eligible Small Business.--Section 45F(c) is amended by adding
at the end the following new paragraph:
``(4) Eligible small business.--The term `eligible small
business' means a business that meets the gross receipts test
of section 448(c), determined--
``(A) by substituting `5-taxable-year' for `3-
taxable-year' in paragraph (1) thereof, and
``(B) by substituting `5-year' for `3-year' each
place such term appears in paragraph (3)(A) thereof.''.
(d) Credit Allowed for Third-party Intermediaries.--Section
45F(c)(1)(A)(iii) is amended by inserting ``, or under a contract with
an intermediate entity that contracts with one or more qualified child
care facilities to provide such child care services'' before the period
at the end.
(e) Treatment of Jointly Owned or Operated Child Care Facility.--
Section 45F(c)(2) is amended by adding at the end the following new
subparagraph:
``(C) Treatment of jointly owned or operated child
care facility.--A facility shall not fail to be treated
as a qualified child care facility of the taxpayer
merely because such facility is jointly owned or
operated by the taxpayer and other persons.''.
(f) Regulations and Guidance.--Section 45F is amended by adding at
the end the following new subsection:
``(g) Regulations and Guidance.--The Secretary shall issue such
regulations or other guidance as may be necessary to carry out the
purposes of this section, including guidance to carry out the purposes
of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).''.
(g) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2025.
SEC. 110106. EXTENSION AND ENHANCEMENT OF PAID FAMILY AND MEDICAL LEAVE
CREDIT.
(a) In General.--Section 45S is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the
following:
``(1) In general.--For purposes of section 38, in the case
of an eligible employer, the paid family and medical leave
credit is an amount equal to either of the following (as
elected by such employer):
``(A) The applicable percentage of the amount of
wages paid to qualifying employees with respect to any
period in which such employees are on family and
medical leave.
``(B) If such employer has an insurance policy with
regards to the provision of paid family and medical
leave which is in force during the taxable year, the
applicable percentage of the total amount of premiums
paid or incurred by such employer during such taxable
year with respect to such insurance policy.'', and
(B) by adding at the end the following:
``(3) Rate of payment determined without regard to whether
leave is taken.--For purposes of determining the applicable
percentage with respect to paragraph (1)(B), the rate of
payment under the insurance policy shall be determined without
regard to whether any qualifying employees were on family and
medical leave during the taxable year.'',
(2) in subsection (b)(1), by striking ``credit allowed''
and inserting ``wages taken into account'',
(3) in subsection (c), by striking paragraphs (3) and (4)
and inserting the following:
``(3) Aggregation rule.--
``(A) In general.--Except as provided in
subparagraph (B), all persons which are treated as a
single employer under subsections (b) and (c) of
section 414 shall be treated as a single employer.
``(B) Exception.--
``(i) In general.--Subparagraph (A) shall
not apply to any person who establishes to the
satisfaction of the Secretary that such person
has a substantial and legitimate business
reason for failing to provide a written policy
described in paragraph (1) or (2).
``(ii) Substantial and legitimate business
reason.--For purposes of clause (i), the term
`substantial and legitimate business reason'
shall not include the operation of a separate
line of business, the rate of wages or category
of jobs for employees (or any similar basis),
or the application of State or local laws
relating to family and medical leave, but may
include the grouping of employees of a common
law employer.
``(4) Treatment of benefits mandated or paid for by state
or local governments.--For purposes of this section, any leave
which is paid by a State or local government or required by
State or local law--
``(A) except as provided in subparagraph (B), shall
be taken into account in determining the amount of paid
family and medical leave provided by the employer, and
``(B) shall not be taken into account in
determining the amount of the paid family and medical
leave credit under subsection (a).'',
(4) in subsection (d)--
(A) in paragraph (1), by inserting ``(or, at the
election of the employer, for not less than 6 months)''
after ``1 year or more'', and
(B) in paragraph (2)--
(i) by inserting ``, as determined on an
annualized basis (pro-rata for part-time
employees),'' after ``compensation'', and
(ii) by striking the period at the end and
inserting ``, and'', and
(C) by adding at the end the following:
``(3) is customarily employed for not less than 20 hours
per week.'', and
(5) by striking subsection (i).
(b) No Double Benefit.--Section 280C(a) is amended--
(1) by striking ``45S(a)'' and inserting ``45S(a)(1)(A)'',
and
(2) by inserting after the first sentence the following:
``No deduction shall be allowed for that portion of the
premiums paid or incurred for the taxable year which is equal
to that portion of the paid family and medical leave credit
which is determined for the taxable year under section
45S(a)(1)(B).''
(c) Outreach.--
(1) SBA and resource partners.--Each district office of the
Small Business Administration and each resource partner of the
Small Business Administration, including small business
development centers described in section 21 of the Small
Business Act (15 U.S.C. 648)), women's business centers
described in section 29 of such Act (15 U.S.C. 656), each
chapter of the Service Corps of Retired Executives described in
section 8(b)(1)(B) of such Act (15 U.S.C. 637(b)(1)(B)), and
Veteran Business Outreach Centers described in section 32 of
such Act (15 U.S.C. 657b), shall conduct outreach to relevant
parties regarding the paid family and medical leave credit
under section 45S of the Internal Revenue Code of 1986,
including through--
(A) targeted communications, education, training,
and technical assistance; and
(B) the development of a written paid family leave
policy, as described in paragraphs (1) and (2) of
section 45S(c) of the Internal Revenue Code of 1986.
(2) Internal revenue service.--The Secretary of the
Treasury (or the Secretary's delegate) shall perform targeted
outreach to employers and other relevant entities regarding the
availability and requirements of the paid family and medical
leave credit under section 45S of the Internal Revenue Code of
1986, including providing relevant information as part of
Internal Revenue Service communications that are regularly
issued to entities that provide payroll services, tax
professionals, and small businesses.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110107. ENHANCEMENT OF ADOPTION CREDIT.
(a) In General.--Section 23(a) is amended by adding at the end the
following new paragraph:
``(4) Portion of credit refundable.--So much of the credit
allowed under paragraph (1) as does not exceed $5,000 shall be
treated as a credit allowed under subpart C and not as a credit
allowed under this subpart.''.
(b) Adjustments for Inflation.--Section 23(h) is amended to read as
follows:
``(h) Adjustments for Inflation.--
``(1) In general.--In the case of a taxable year beginning
after December 31, 2002, each of the dollar amounts in
paragraphs (3) and (4) of subsection (a) and paragraphs (1) and
(2)(A)(i) of subsection (b) shall be increased by an amount
equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2001' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--If any amount as increased under paragraph
(1) is not a multiple of $10, such amount shall be rounded to
the nearest multiple of $10.
``(3) Special rule for refundable portion.--In the case of
the dollar amount in subsection (a)(4), paragraph (1) shall be
applied--
``(A) by substituting `2025' for `2002' in the
matter preceding subparagraph (A), and
``(B) by substituting `calendar year 2024' for
`calendar year 2001' in subparagraph (B) thereof.''.
(c) Exclusion of Refundable Portion of Credit From Carryforward.--
Section 23(c)(1) is amended by striking ``credit allowable under
subsection (a)'' and inserting ``portion of the credit allowable under
subsection (a) which is allowed under this subpart''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 110108. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF
DETERMINING WHETHER A CHILD HAS SPECIAL NEEDS FOR
PURPOSES OF THE ADOPTION CREDIT.
(a) In General.--Section 23(d)(3) is amended--
(1) in subparagraph (A), by inserting ``or Indian tribal
government'' after ``a State'', and
(2) in subparagraph (B), by inserting ``or Indian tribal
government'' after ``such State''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 110109. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP
GRANTING ORGANIZATIONS.
(a) Allowance of Credit.--
(1) In general.--Subpart A of part IV of subchapter A of
chapter 1 is amended by inserting after section 25E the
following new section:
``SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the aggregate amount of
qualified contributions made by the taxpayer during the taxable year.
``(b) Limitations.--
``(1) In general.--The credit allowed under subsection (a)
to any taxpayer for any taxable year shall not exceed an amount
equal to the greater of--
``(A) 10 percent of the adjusted gross income of
the taxpayer for the taxable year, or
``(B) $5,000.
``(2) Allocation of volume cap.--The credit allowed under
subsection (a) to any taxpayer for any taxable year shall not
exceed the amount of the volume cap allocated by the Secretary
to such taxpayer under subsection (g) with respect to qualified
contributions made by the taxpayer during the taxable year.
``(3) Reduction based on state credit.--The amount allowed
as a credit under subsection (a) for a taxable year shall be
reduced by the amount allowed as a credit on any State tax
return of the taxpayer for qualified contributions made by the
taxpayer during the taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Eligible student.--The term `eligible student' means
an individual who--
``(A) is a member of a household with an income
which is not greater than 300 percent of the area
median gross income (as such term is used in section
42), and
``(B) is eligible to enroll in a public elementary
or secondary school.
``(2) Qualified contribution.--The term `qualified
contribution' means a charitable contribution (as defined by
section 170(c)) to a scholarship granting organization in the
form of cash or marketable securities.
``(3) Qualified elementary or secondary education
expense.--The term `qualified elementary or secondary education
expense' means the following expenses in connection with
enrollment or attendance at, or for students enrolled at or
attending, an elementary or secondary public, private, or
religious school:
``(A) Tuition.
``(B) Curriculum and curricular materials.
``(C) Books or other instructional materials.
``(D) Online educational materials.
``(E) Tuition for tutoring or educational classes
outside of the home, including at a tutoring facility,
but only if the tutor or instructor is not related to
the student and--
``(i) is licensed as a teacher in any
State,
``(ii) has taught at an eligible
educational institution, or
``(iii) is a subject matter expert in the
relevant subject.
``(F) Fees for a nationally standardized norm-
referenced achievement test, an advanced placement
examination, or any examinations related to college or
university admission.
``(G) Fees for dual enrollment in an institution of
higher education.
``(H) Educational therapies for students with
disabilities provided by a licensed or accredited
practitioner or provider, including occupational,
behavioral, physical, and speech-language therapies.
Such term shall include expenses for the purposes described in
subparagraphs (A) through (H) in connection with a homeschool
(whether treated as a homeschool or a private school for
purposes of applicable State law). No amount paid to an
elementary or secondary school shall be considered a qualified
elementary or secondary education expense for the purposes of
this section unless such school demonstrates that it maintains
a policy whereby its admissions standards do not take into
account whether the student seeking enrollment has a current
individualized education plan, nor takes into account that the
student requires equitable services for a learning disability,
and if a student does have such an individualized education
plan, the school abides by the plan's terms and provides
services outlined therein.
``(4) Scholarship granting organization.--The term
`scholarship granting organization' means any organization--
``(A) which--
``(i) is described in section 501(c)(3) and
exempt from tax under section 501(a), and
``(ii) is not a private foundation,
``(B) substantially all of the activities of which
are providing scholarships for qualified elementary or
secondary education expenses of eligible students,
``(C) which prevents the co-mingling of qualified
contributions with other amounts by maintaining one or
more separate accounts exclusively for qualified
contributions, and
``(D) which either--
``(i) meets the requirements of subsection
(d), or
``(ii) pursuant to State law, was able (as
of the date of the enactment of this section)
to receive contributions that are eligible for
a State tax credit if such contributions are
used by the organization to provide
scholarships to individual elementary and
secondary students, including scholarships for
attending private schools.
``(d) Requirements for Scholarship Granting Organizations.--
``(1) In general.--An organization meets the requirements
of this subsection if--
``(A) such organization provides scholarships to 2
or more students, provided that not all such students
attend the same school,
``(B) such organization does not provide
scholarships for any expenses other than qualified
elementary or secondary education expenses,
``(C) such organization provides a scholarship to
eligible students with a priority for--
``(i) students awarded a scholarship the
previous school year, and
``(ii) after application of clause (i), any
such students who have a sibling who was
awarded a scholarship from such organization,
``(D) such organization does not earmark or set
aside contributions for scholarships on behalf of any
particular student,
``(E) such organization takes appropriate steps to
verify the annual household income and family size of
eligible students to whom it awards scholarships, and
limits them to a member of a household for which the
income does not exceed the amount established under
subsection (c)(1)(A),
``(F) such organization--
``(i) obtains from an independent certified
public accountant annual financial and
compliance audits, and
``(ii) certifies to the Secretary (at such
time, and in such form and manner, as the
Secretary may prescribe) that the audit
described in clause (i) has been completed, and
``(G) no officer or board member of such
organization has been convicted of a felony.
``(2) Income verification.--For purposes of paragraph
(1)(E), review of all of the following (as applicable) shall be
treated as satisfying the requirement to take appropriate steps
to verify annual household income:
``(A) Federal and State income tax returns or tax
return transcripts with applicable schedules for the
taxable year prior to application.
``(B) Income reporting statements for tax purposes
or wage and income transcripts from the Internal
Revenue Service.
``(C) Notarized income verification letter from
employers.
``(D) Unemployment or workers compensation
statements.
``(E) Budget letters regarding public assistance
payments and Supplemental Nutrition Assistance Program
(SNAP) payments including a list of household members.
``(3) Independent certified public accountant.--For
purposes of paragraph (1)(F), the term `independent certified
public accountant' means, with respect to an organization, a
certified public accountant who is not a person described in
section 465(b)(3)(A) with respect to such organization or any
employee of such organization.
``(4) Prohibition on self-dealing.--
``(A) In general.--A scholarship granting
organization may not award a scholarship to any
disqualified person.
``(B) Disqualified person.--For purposes of this
paragraph, a disqualified person shall be determined
pursuant to rules similar to the rules of section 4946.
``(e) Denial of Double Benefit.--Any qualified contribution for
which a credit is allowed under this section shall not be taken into
account as a charitable contribution for purposes of section 170.
``(f) Carryforward of Unused Credit.--
``(1) In general.--If the credit allowable under subsection
(a) for any taxable year exceeds the limitation imposed by
section 26(a) for such taxable year reduced by the sum of the
credits allowable under this subpart (other than this section,
section 23, and section 25D), such excess shall be carried to
the succeeding taxable year and added to the credit allowable
under subsection (a) for such taxable year.
``(2) Limitation.--No credit may be carried forward under
this subsection to any taxable year following the fifth taxable
year after the taxable year in which the credit arose. For
purposes of the preceding sentence, credits shall be treated as
used on a first-in first-out basis.
``(g) Volume Cap.--
``(1) In general.--The volume cap applicable under this
section shall be $5,000,000,000 for each of calendar years 2026
through 2029, and zero for calendar years thereafter. Such
amount shall be allocated by the Secretary as provided in
paragraph (2) to taxpayers with respect to qualified
contributions made by such taxpayers, except that 10 percent of
such amount shall be divided evenly among the States, and shall
be available with respect to individuals residing in such
States.
``(2) First-come, first-serve.--For purposes of applying
the volume cap under this section, such volume cap for any
calendar year shall be allocated by the Secretary on a first-
come, first-serve basis, as determined based on the time
(during such calendar year) at which the taxpayer made the
qualified contribution with respect to which the allocation is
made. The Secretary shall not make any allocation of volume cap
for any calendar year after December 31 of such calendar year.
``(3) Real-time information.--For purposes of this section,
the Secretary shall develop a system to track the amount of
qualified contributions made during the calendar year for which
a credit may be claimed under this section, with such
information to be updated in real time.
``(4) Annual increases.--
``(A) In general.--In the case of the calendar year
after a high-use calendar year, the dollar amount
otherwise in effect under paragraph (1) for such
calendar year shall be equal to 105 percent of the
dollar amount in effect for such high-use calendar
year.
``(B) High-use calendar year.--For purposes of this
subsection, the term `high-use calendar year' means any
calendar year for which 90 percent or more of the
volume cap in effect for such calendar year under
paragraph (1) is allocated to taxpayers.
``(C) Prevention of decreases in annual volume
cap.--The volume cap in effect under paragraph (1) for
any calendar year shall not be less than the volume cap
in effect under such paragraph for the preceding
calendar year.
``(D) Publication of annual volume cap.--The
Secretary shall make publicly available the dollar
amount of the volume cap in effect under paragraph (1)
for each calendar year.
``(5) States.--For purposes of this subsection, the term
`State' includes the District of Columbia.''.
(2) Conforming amendments.--
(A) Section 25(e)(1)(C) is amended by striking
``and 25D'' and inserting ``25D, and 25F''.
(B) The table of sections for subpart A of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 25E the following
new item:
``Sec. 25F. Qualified elementary and secondary education
scholarships.''.
(b) Failure of Scholarship Granting Organizations to Make
Distributions.--
(1) In general.--Chapter 42 is amended by adding at the end
the following new subchapter:
``Subchapter I--Scholarship Granting Organizations
``Sec. 4969. Failure to distribute receipts.
``SEC. 4969. FAILURE TO DISTRIBUTE RECEIPTS.
``(a) In General.--In the case of any scholarship granting
organization (as defined in section 25F) which has been determined by
the Secretary to have failed to satisfy the requirement under
subsection (b) for any taxable year, any contribution made to such
organization during the first taxable year beginning after the date of
such determination shall not be treated as a qualified contribution (as
defined in section 25F(c)(2)) for purposes of section 25F.
``(b) Requirement.--The requirement described in this subsection is
that the amount of receipts of the scholarship granting organization
for the taxable year which are distributed before the distribution
deadline with respect to such receipts shall not be less than the
required distribution amount with respect to such taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Required distribution amount.--
``(A) In general.--The required distribution amount
with respect to a taxable year is the amount equal to
100 percent of the total receipts of the scholarship
granting organization for such taxable year--
``(i) reduced by the sum of such receipts
that are retained for reasonable administrative
expenses for the taxable year or are carried to
the succeeding taxable year under subparagraph
(C), and
``(ii) increased by the amount of the
carryover under subparagraph (C) from the
preceding taxable year.
``(B) Safe harbor for reasonable administrative
expenses.--For purposes of subparagraph (A)(i), if the
percentage of total receipts of a scholarship granting
organization for a taxable year which are used for
administrative purposes is equal to or less than 10
percent, such expenses shall be deemed to be reasonable
for purposes of such subparagraph.
``(C) Carryover.--With respect to the amount of the
total receipts of a scholarship granting organization
with respect to any taxable year, an amount not greater
than 15 percent of such amount may, at the election of
such organization, be carried to the succeeding taxable
year.
``(2) Distributions.--The term `distribution' includes
amounts which are formally committed but not distributed. A
formal commitment described in the preceding sentence may
include contributions set aside for eligible students for more
than one year.
``(3) Distribution deadline.--The distribution deadline
with respect to receipts for a taxable year is the first day of
the third taxable year following the taxable year in which such
receipts are received by the scholarship granting
organization.''.
(2) Clerical amendment.--The table of subchapters for
chapter 42 is amended by adding at the end the following new
item:
``subchapter i--scholarship granting organizations''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2025.
SEC. 110110. ADDITIONAL ELEMENTARY, SECONDARY, AND HOME SCHOOL EXPENSES
TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR
PURPOSES OF 529 ACCOUNTS.
(a) In General.--Section 529(c)(7) is amended to read as follows:
``(7) Treatment of elementary and secondary tuition.--Any
reference in this section to the term `qualified higher
education expense' shall include a reference to the following
expenses in connection with enrollment or attendance at, or for
students enrolled at or attending, an elementary or secondary
public, private, or religious school:
``(A) Tuition.
``(B) Curriculum and curricular materials.
``(C) Books or other instructional materials.
``(D) Online educational materials.
``(E) Tuition for tutoring or educational classes
outside of the home, including at a tutoring facility,
but only if the tutor or instructor is not related to
the student and--
``(i) is licensed as a teacher in any
State,
``(ii) has taught at an eligible
educational institution, or
``(iii) is a subject matter expert in the
relevant subject.
``(F) Fees for a nationally standardized norm-
referenced achievement test, an advanced placement
examination, or any examinations related to college or
university admission.
``(G) Fees for dual enrollment in an institution of
higher education.
``(H) Educational therapies for students with
disabilities provided by a licensed or accredited
practitioner or provider, including occupational,
behavioral, physical, and speech-language therapies.
Such term shall include expenses for the purposes described in
subparagraphs (A) through (H) in connection with a homeschool
(whether treated as a homeschool or a private school for
purposes of applicable State law).''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made after the date of the enactment of this Act.
SEC. 110111. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS
QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529
ACCOUNTS.
(a) In General.--Section 529(e)(3) is amended by adding at the end
the following new subparagraph:
``(C) Certain postsecondary credentialing
expenses.--The term `qualified higher education
expenses' includes qualified postsecondary
credentialing expenses (as defined in subsection
(f)).''.
(b) Qualified Postsecondary Credentialing Expenses.--Section 529 is
amended by redesignating subsection (f) as subsection (g) and by
inserting after subsection (e) the following new subsection:
``(f) Qualified Postsecondary Credentialing Expenses.--For purposes
of this section--
``(1) In general.--The term `qualified postsecondary
credentialing expenses' means--
``(A) tuition, fees, books, supplies, and equipment
required for the enrollment or attendance of a
designated beneficiary in a recognized postsecondary
credential program, or any other expense incurred in
connection with enrollment in or attendance at a
recognized postsecondary credential program if such
expense would, if incurred in connection with
enrollment or attendance at an eligible educational
institution, be covered under subsection (e)(3)(A),
``(B) fees for testing if such testing is required
to obtain or maintain a recognized postsecondary
credential, and
``(C) fees for continuing education if such
education is required to maintain a recognized
postsecondary credential.
``(2) Recognized postsecondary credential program.--The
term `recognized postsecondary credential program' means any
program to obtain a recognized postsecondary credential if--
``(A) such program is included on a State list
prepared under section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3152(d)),
``(B) such program is listed in the WEAMS Public
directory (or successor directory) maintained by the
Department of Veterans Affairs,
``(C) an examination (developed or administered by
an organization widely recognized as providing
reputable credentials in the occupation) is required to
obtain or maintain such credential and such
organization recognizes such program as providing
training or education which prepares individuals to
take such examination, or
``(D) such program is identified by the Secretary,
after consultation with the Secretary of Labor, as
being a reputable program for obtaining a recognized
postsecondary credential for purposes of this
subsection.
``(3) Recognized postsecondary credential.--The term
`recognized postsecondary credential' means--
``(A) any postsecondary employment credential that
is industry recognized, including--
``(i) any postsecondary employment
credential issued by a program that is
accredited by the Institute for Credentialing
Excellence, the National Commission on
Certifying Agencies, or the American National
Standards Institute,
``(ii) any postsecondary employment
credential that is included in the
Credentialing Opportunities On-Line (COOL)
directory of credentialing programs (or
successor directory) maintained by the
Department of Defense or by any branch of the
Armed Services, and
``(iii) any postsecondary employment
credential identified for purposes of this
clause by the Secretary, after consultation
with the Secretary of Labor, as being industry
recognized,
``(B) any certificate of completion of an
apprenticeship that is registered and certified with
the Secretary of Labor under the National
Apprenticeship Act (29 U.S.C. 50),
``(C) any occupational or professional license
issued or recognized by a State or the Federal
Government (and any certification that satisfies a
condition for obtaining such a license), and
``(D) any recognized postsecondary credential as
defined in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).''.
(c) Effective Date.--The amendments made by this section shall
apply to distributions made after the date of the enactment of this
Act.
SEC. 110112. REINSTATEMENT OF PARTIAL DEDUCTION FOR CHARITABLE
CONTRIBUTIONS OF INDIVIDUALS WHO DO NOT ELECT TO ITEMIZE.
(a) In General.--Section 170(p) is amended--
(1) by striking ``$300 ($600'' and inserting ``$150
($300'', and
(2) by striking ``in 2021'' and inserting ``after December
31, 2024, and before January 1, 2029''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 110113. EXCLUSION FOR CERTAIN EMPLOYER PAYMENTS OF STUDENT LOANS
UNDER EDUCATIONAL ASSISTANCE PROGRAMS MADE PERMANENT AND
ADJUSTED FOR INFLATION.
(a) In General.--Section 127(c)(1)(B) is amended by striking ``in
the case of payments made before January 1, 2026,''.
(b) Inflation Adjustment.--Section 127 is amended--
(1) by redesignating subsection (d) as subsection (e), and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2026, both of the $5,250 amounts in subsection
(a)(2) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2025' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase under paragraph (1) is not
a multiple of $50, such increase shall be rounded to the
nearest multiple of $50.''.
(c) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 2025.
SEC. 110114. EXTENSION OF RULES FOR TREATMENT OF CERTAIN DISASTER-
RELATED PERSONAL CASUALTY LOSSES.
For purposes of applying section 304(b) of the Taxpayer Certainty
and Disaster Tax Relief Act of 2020 (division EE of Public Law 116-
260), section 301 of such Act shall be applied by substituting the date
of the enactment of this section for ``the date of the enactment of
this Act'' each place it appears.
SEC. 110115. MAGA ACCOUNTS.
(a) In General.--Subchapter F of chapter 1 is amended by adding at
the end the following new part:
``PART IX--MAGA ACCOUNTS
``SEC. 530A. MAGA ACCOUNTS.
``(a) General Rule.--A MAGA account shall be exempt from taxation
under this subtitle. Notwithstanding the preceding sentence, such
account shall be subject to the taxes imposed by section 511 (relating
to imposition of tax on unrelated business income of charitable
organizations).
``(b) MAGA Account.--For purposes of this section--
``(1) In general.--The term `money account for growth and
advancement' or `MAGA account' means a trust created or
organized in the United States for the exclusive benefit of an
individual and which is designated (in such manner as the
Secretary shall prescribe) at the time of the establishment of
the trust as a MAGA account, but only if the written governing
instrument creating the trust meets the following requirements:
``(A) The individual establishing the account shall
provide to the trustee the social security number of
such individual and of the account beneficiary.
``(B) Except in the case of a qualified rollover
contribution described in subsection (e), no
contribution will be accepted--
``(i) before January 1, 2026,
``(ii) unless it is in cash,
``(iii) unless the account beneficiary has
not attained age 18, and
``(iv) if such contribution would result in
aggregate contributions for the taxable year
exceeding the contribution limit specified in
subsection (c)(1).
``(C) No distribution (other than a distribution of
a qualified rollover contribution) will be allowed--
``(i) before the date on which the account
beneficiary attains age 18, or
``(ii) in the case of such an account the
account beneficiary of which has not attained
age 25, if the aggregate distributions from
such account exceeds the amount that is \1/2\
the cash equivalent value of the account on the
date on which the account beneficiary attains
age 18.
``(D) The account beneficiary has not attained age
8 on the date of the establishment of the account.
``(E) The trustee is a bank (as defined in section
408(n)) or another person who demonstrates to the
satisfaction of the Secretary that the manner in which
that person will administer the trust will be
consistent with the requirements of this section or who
has so demonstrated with respect to any individual
retirement plan.
``(F) The interest of an individual in the balance
of his account is nonforfeitable.
``(G) The assets of the trust shall not be
commingled with other property except in a common trust
fund or common investment fund.
``(H) No part of the trust funds will be invested
in any asset other than eligible investments.
``(2) Eligible investments.--The term `eligible
investments' means stock of a regulated investment company
(within the meaning of section 851) which--
``(A) tracks a well-established index of United
States equities (or which invests in an equivalent
diversified portfolio of United States equities),
``(B) does not use leverage,
``(C) minimizes fees and expenses, and
``(D) meets such other criteria as the Secretary
determines appropriate for purposes of this section.
``(3) Account beneficiary.--The term `account beneficiary'
means the individual on whose behalf the MAGA account was
established.
``(c) Treatment of Contributions.--
``(1) Contribution limit.--The contribution limit for any
taxable year is $5,000.
``(2) Contributions from tax exempt sources and rollover
contributions.--The amount contributed to a MAGA account for
purposes of paragraph (1) shall be determined without regard
to--
``(A) a qualified rollover contribution,
``(B) any contribution from the Federal Government
or any State, local, or tribal government, or
``(C) any contribution made through the program
established under subsection (l).
``(3) Cost-of-living adjustment.--
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2026, the $5,000
amount under paragraph (1) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2025' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any increase under subparagraph
(A) is not a multiple of $100, such amount shall be
rounded to the next lower multiple of $100.
``(d) Distributions.--
``(1) Amounts allocable to investment in the contract.--A
distribution from a MAGA account of an amount allocable to the
investment in the contract shall not be includible in the gross
income of the distributee.
``(2) Amounts allocable to income on the contract used for
qualified expenses.--A distribution from a MAGA account of an
amount allocable to income on the contract and which is used
exclusively to pay for qualified expenses shall be includible
in net capital gain of the distributee under section 1(h)(12).
``(3) Amounts includible in gross income.--Any distribution
from a MAGA account which is not described in paragraph (1) or
(2) shall be includible in the gross income of the distributee.
``(4) Qualified expenses.--For purposes of this subsection,
the term `qualified expenses' means any of the following
expenses paid or incurred for the benefit of the account
beneficiary:
``(A) Qualified higher education expenses (as
defined in section 529(e)(3)) determined without regard
to section 529(c)(7).
``(B) Qualified post-secondary credentialing
expenses (as defined in section 529(f)).
``(C) Under regulations provided by the Secretary,
amounts paid or incurred with respect to any small
businesses for which the beneficiary has obtained any
small business loan, small farm loan, or similar loan.
``(D) Any amount used for the purchase (as defined
in section 36(c)(3)) of the principal residence (as
used in section 121) of the account beneficiary if such
account beneficiary is a first-time homebuyer (as
defined in section 36(c)(1)) with respect to such
purchase.
``(5) Exceptions.--Paragraphs (2) and (3) shall not apply
to any distribution which is a qualified rollover contribution.
``(6) Additional tax on certain distributions.--In the case
of a distributee who has not attained age 30, the tax imposed
by this chapter on the account beneficiary for any taxable year
in which there is a distribution from a MAGA account of such
beneficiary which is includible in gross income under paragraph
(3) shall be increased by 10 percent of the amount which is so
includible.
``(e) Qualified Rollover Contribution.--For purposes of this
section, the term `qualified rollover contribution' means an amount
which is paid in a direct trustee-to-trustee transfer from a MAGA
account maintained for the benefit of the account beneficiary to a MAGA
account maintained for such beneficiary.
``(f) Treatment After Death of Account Beneficiary.--Rules similar
to the rules of section 223(f)(8) shall apply for purposes of this
section.
``(g) Determinations of Aggregate Distributions and Investment in
Contract in the Case of Certain Rollover Contributions.--In the case of
a qualified rollover contribution which is described in subsection
(e)(2), any determination required under this section of the amount of
the investment of the contract or of aggregate distributions from the
MAGA account shall be determined with respect to the aggregate of such
amounts for all MAGA accounts of the same account beneficiary.
``(h) Custodial Accounts.--For purposes of this section, a
custodial account shall be treated as a trust under this section if--
``(1) the custodial account would, except for the fact that
it is not a trust, constitute a trust which meets the
requirements of subsection (b)(1), and
``(2) the assets of such account are held by a bank (as
defined in section 408(n)) or another person who demonstrates,
to the satisfaction of the Secretary, that the manner in which
he will administer the account will be consistent with the
requirements of this section.
For purposes of this title, in the case of a custodial account treated
as a trust by reason of the preceding sentence, the person holding the
assets of such account shall be treated as the trustee thereof.
``(i) Termination.--
``(1) Age 31.--Upon the date on which the account
beneficiary attains age 31, a MAGA account shall cease to be a
MAGA account and the amount in such account shall be treated as
distributed for purposes of subsection (d).
``(2) Multiple accounts of one beneficiary.--
``(A) In general.--In the case of any duplicate
MAGA account of any account beneficiary other than a
MAGA account which is established by the deposit
through a qualified rollover contribution of the entire
amount of another MAGA account of the account
beneficiary--
``(i) such duplicate MAGA account shall
cease to be a MAGA account and the amount in
such account shall be treated as distributed
for purposes of subsection (d), and
``(ii) there is imposed an excise tax on
the account beneficiary in an amount equal to
so much of cash value of the account as is
allocable to income on the contract.
``(B) Withholding requirement.--In the case of an
account terminated under subparagraph (A), the trustee
shall deduct and withhold upon the amount to be
distributed the amount in excess described in
subparagraph (A)(ii).
``(C) Notification.--The Secretary, upon
determining that a duplicate account exists, shall
provide a notice to the account beneficiary of such
duplicate account (and the account custodian, in the
case of a custodial account) and to each trustee of any
MAGA account of the account beneficiary of such
duplicate account which identifies each MAGA account of
such beneficiary and the trustee of each such account.
``(D) Duplicate account.--For purposes of this
paragraph, the term `duplicate account' means--
``(i) in the case of an account beneficiary
for the benefit of whom an account was
established by the Secretary under section
6434, any other MAGA account of such account
beneficiary, or
``(ii) in the case of any other account
beneficiary, any MAGA account established after
the first MAGA account established for the
benefit of such account beneficiary.
``(j) Investment in the Contract.--For purposes of this section,
rules similar to the rules applied to a qualified tuition program (as
defined in section 529(b)) under section 72(e)(9) shall apply for
purposes of determining the investment in the contract, except that
such amount shall be determined without regard to any contribution
which is described in subsection (c)(2).
``(k) Reports.--The trustee of a MAGA account shall make such
reports regarding such account to the Secretary and to the beneficiary
of the account with respect to contributions, distributions, the amount
of investment in the contract, and such other matters as the Secretary
may require. The reports required by this subsection shall be filed at
such time and in such manner and furnished to such individuals at such
time and in such manner as may be required.
``(l) Contributions to Predominately Unrelated Children.--The
Secretary shall establish a program through which contributions may be
made to the MAGA accounts of a large group of account beneficiaries
if--
``(1) the contribution is made by any person described in
any paragraph of section 501(c) and exempt from taxation under
section 501(a),
``(2) such accounts are selected on the basis of the
location of the residence of the account beneficiaries, the
school district in which such beneficiaries attend school, or
another basis the Secretary determines appropriate, and
``(3) all individuals who are account beneficiaries of such
an account who meet the selected criteria receive an equal
portion of the contribution.''.
(b) Distribution Taxed at Same Rate as Net Capital Gains.--Section
1(h) is amended by adding at the end the following new paragraph:
``(12) Distributions from maga account taxed as net capital
gain.--For purposes of this subsection, the term `net capital
gain' means the net capital gain (determined without regard to
this paragraph) increased by the amount includible in net
capital gain under this paragraph by reason of section
530A(d)(2).''.
(c) Tax on Excess Contributions.--
(1) In general.--Section 4973(a) is amended by striking
``or'' at the end of paragraph (5), by inserting ``or'' at the
end of paragraph (6), and by inserting after paragraph (6) the
following new paragraph:
``(7) a MAGA account (as defined in section 530A(b)),''.
(2) Excess contribution.--Section 4973 is amended by adding
at the end the following new subsection:
``(i) Excess Contributions to a MAGA Account.--For purposes of this
section, in the case of MAGA accounts (within the meaning of section
530A), the term `excess contributions' means the sum of--
``(1) the amount by which the amount contributed for the
calendar year to such account (other than qualified rollover
contributions (as defined in section 530A(e))) exceeds the
contribution limit under section 530A(c)(1) (determined without
regard to contributions described in section 530A(c)(2)), and
``(2) the amount determined under this subsection for the
preceding calendar year, reduced by the excess (if any) of the
maximum amount allowable as a contribution under section
530A(c)(1) (as so determined) for the calendar year over the
amount contributed to the account for the calendar year (other
than qualified rollover contributions (as so defined)).''.
(d) Disclosure of Return Information to Facilitate Certain
Contributions.--Section 6103(l) is amended by adding at the end the
following new paragraph:
``(23) Disclosure of return information to enable certain
contributions to maga accounts.--Upon written request signed by
the head of the bureau or office of the Department of the
Treasury requesting the inspection or disclosure, the Secretary
may disclose the following return information with respect to a
MAGA account (as defined in section 503A(b)) to officers and
employees of such bureau or office to the extent that such
disclosure is necessary to carry out section 530A(l):
``(A) Information necessary to identify the account
holders in a particular class of beneficiaries
identified by a donor as the intended recipients.
``(B) The name, address, and social security number
of a beneficiary.
``(C) The account custodian and the address of such
custodian.
``(D) The account number.
``(E) The routing number.
``(F) To the extent determined by the Secretary in
regulations, such other return information as the
Secretary determines necessary to ensure proper routing
of funds
Return information disclosed under this paragraph may only be
used to identify account holders in a particular class of
beneficiaries or for the proper routing of funds and may not be
redisclosed by the Secretary.''.
(e) Failure to Provide Reports on MAGA Accounts.--Section
6693(a)(2) is amended by striking ``and'' at the end of subparagraph
(E), by striking the period at the end of subparagraph (F) and
inserting ``, and'', and by adding at the end the following new
subparagraph:
``(G) section 530A(h) (relating to MAGA
accounts).''.
(f) Conforming Amendment.--The table of parts for subchapter F of
chapter 1 is amended by adding at the end the following new item:
``Part IX. MAGA Accounts''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 110116. MAGA ACCOUNTS CONTRIBUTION PILOT PROGRAM.
(a) In General.--Subchapter B of chapter 65 is amended by adding at
the end the following new section:
``SEC. 6434. MAGA ACCOUNTS CONTRIBUTION PILOT PROGRAM.
``(a) In General.--In the case of any taxpayer with respect to whom
an eligible individual is a qualifying child, there shall be allowed a
one-time credit of $1,000 with respect to each such eligible individual
who is a qualifying child of such taxpayer which shall be payable by
the Secretary only to the MAGA account with respect to which such
eligible individual is the account beneficiary.
``(b) Account Established by Secretary.--
``(1) In general.--In the case of any eligible individual
that the Secretary determines is not the account beneficiary of
any MAGA account as of the qualifying date of such eligible
individual, the Secretary shall establish an account for the
benefit of such eligible individual.
``(2) Qualifying date.--For purposes of paragraph (1), the
term `qualifying date' means, with respect to an eligible
individual, the first date on which a return of tax is filed by
an individual with respect to whom such eligible individual is
a qualifying child with respect to the taxable year to which
such return relates.
``(3) Notification.--In the case of any eligible individual
for the benefit of whom the Secretary establishes an account
under paragraph (1), the Secretary shall--
``(A) notify any individual with respect to whom
such eligible individual is a qualifying child for the
taxable year described in paragraph (2) of the
establishment of such account, and
``(B) shall provide an opportunity to such
individual to elect to decline the application of this
subsection to such qualifying child.
``(4) Determination of default trustee.--For purposes of
selecting a trustee for an account established under paragraph
(1), the Secretary shall take into account--
``(A) the history of reliability and regulatory
compliance of such trustee,
``(B) the customer service experience of such
trustee,
``(C) the costs imposed by such trustee on the
account or account beneficiary, and
``(D) to the extent practicable, the preferences of
any individual described in paragraph (3)(A) with
respect to such eligible individual.
``(c) Eligible Individual.--For purposes of subsection (a), the
term eligible individual means an individual--
``(1) who is born after December 31, 2024, and before
January 1, 2029, and
``(2) who is a United States citizen at birth.
``(d) Social Security Number Required.--
``(1) In general.--No credit shall be allowed under
subsection (a) to a taxpayer unless such taxpayer includes on
the return of tax for the taxable year--
``(A) such individual's social security number,
``(B) if such individual is married, the social
security number of such individual's spouse, and
``(C) the social security number of the eligible
individual with respect to whom such credit is allowed.
``(2) Social security number defined.--For purposes of
paragraph (1), the term `social security number' shall have the
meaning given such term in section 24(h)(7).
``(e) Definitions.--For purposes of this section--
``(1) Qualifying child.--The term qualifying child has the
meaning given such term in section 152(c).
``(2) MAGA account; account beneficiary.--The terms `MAGA
account' and `account beneficiary' have the meaning given such
terms in section 530A(b).''.
(b) Penalty for Negligent Claim or Fraudulent Claim.--Part I of
subchapter A of chapter 68 of subtitle F is amended by adding at the
end the following new section:
``SEC. 6659. IMPROPER CLAIM FOR MAGA ACCOUNT CONTRIBUTION PILOT PROGRAM
CREDIT.
``(a) In General.--In the case of any taxpayer that makes an
excessive claim for a credit under section 6434--
``(1) if such excess is a result of negligence or disregard
of the rules or regulations, there shall be imposed a penalty
of $500, or
``(2) if such excess is a result of fraud, there shall be
imposed a penalty of $1,000.
``(b) Definitions.--The terms `negligence' and `disregard' have the
same meaning as when such terms are used in section 6662.''.
(c) Omission of Correct Social Security Number Treated Mathematical
or Clerical Error.--Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended by striking ``and'' at the end of
subparagraph (Y), by striking the period at the end of subparagraph (Z)
and inserting ``, and'' , and by inserting after subparagraph (Z) the
following new subparagraph:
``(AA) an omission of a correct social security
number required under section 6434(d)(1) (relating to
the MAGA accounts contribution pilot program).''.
(d) Clerical Amendments.--
(1) The table of sections for subchapter B of chapter 65 is
amended by adding at the end the following new item:
``Sec. 6434. MAGA accounts contribution pilot program.''.
(2) The table of sections for part I of subchapter A of
chapter 68 of subtitle F is amended by inserting after the item
relating to section 6658 the following new item:
``Sec. 6659. Improper claim for MAGA account contribution pilot program
credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
PART 3--INVESTING IN HEALTH OF AMERICAN FAMILIES AND WORKERS
SEC. 110201. TREATMENT OF HEALTH REIMBURSEMENT ARRANGEMENTS INTEGRATED
WITH INDIVIDUAL MARKET COVERAGE.
(a) In General.--Section 9815(b) is amended--
(1) by striking ``Exception.--Notwithstanding subsection
(a)'' and inserting the following: ``Exceptions.--
``(1) Self-insured group health plans.--Notwithstanding
subsection (a)'', and
(2) by adding at the end the following new paragraph:
``(2) Custom health option and individual care expense
arrangements.--
``(A) In general.--For purposes of this subchapter,
a custom health option and individual care expense
arrangement shall be treated as meeting the
requirements of section 9802 and sections 2705, 2711,
2713, and 2715 of title XXVII of the Public Health
Service Act.
``(B) Custom health option and individual care
expense arrangements defined.--For purposes of this
section, the term `custom health option and individual
care expense arrangement' means a health reimbursement
arrangement--
``(i) which is an employer-provided group
health plan funded solely by employer
contributions to provide payments or
reimbursements for medical care subject to a
maximum fixed dollar amount for a period,
``(ii) under which such payments or
reimbursements may only be made for medical
care provided during periods during which the
individual is covered--
``(I) under individual health
insurance coverage (other than coverage
that consists solely of excepted
benefits), or
``(II) under part A and B of title
XVIII of the Social Security Act or
part C of such title,
``(iii) which meets the nondiscrimination
requirements of subparagraph (C),
``(iv) which meets the substantiation
requirements of subparagraph (D), and
``(v) which meets the notice requirements
of subparagraph (E).
``(C) Nondiscrimination.--
``(i) In general.--An arrangement meets the
requirements of this subparagraph if an
employer offering such arrangement to an
employee within a specified class of employee--
``(I) offers such arrangement to
all employees within such specified
class on the same terms, and
``(II) does not offer any other
group health plan (other than an
account-based group health plan or a
group health plan that consists solely
of excepted benefits) to any employees
within such specified class.
In the case of an employer who offers a group
health plan provided through health insurance
coverage in the small group market (that is
subject to section 2701 of the Public Health
Service Act) to all employees within such
specified class, subclause (II) shall not apply
to such group health plan.
``(ii) Specified class of employee.--For
purposes of this subparagraph, any of the
following may be designated as a specified
class of employee:
``(I) Full-time employees.
``(II) Part-time employees.
``(III) Salaried employees.
``(IV) Non-salaried employees.
``(V) Employees whose primary site
of employment is in the same rating
area.
``(VI) Employees who are included
in a unit of employees covered under a
collective bargaining agreement to
which the employer is subject
(determined under rules similar to the
rules of section 105(h)).
``(VII) Employees who have not met
a group health plan, or health
insurance issuer offering group health
insurance coverage, waiting period
requirement that satisfies section 2708
of the Public Health Service Act.
``(VIII) Seasonal employees.
``(IX) Employees who are
nonresident aliens and who receive no
earned income (within the meaning of
section 911(d)(2)) from the employer
which constitutes income from sources
within the United States (within the
meaning of section 861(a)(3)).
``(X) Such other classes of
employees as the Secretary may
designate.
An employer may designate (in such manner as is
prescribed by the Secretary) two or more of the
classes described in the preceding subclauses
as the specified class of employees to which
the arrangement is offered for purposes of
applying this subparagraph.
``(iii) Special rule for new hires.--An
employer may designate prospectively so much of
a specified class of employees as are hired
after a date set by the employer. Such subclass
of employees shall be treated as the specified
class for purposes of applying clause (i).
``(iv) Rules for determining type of
employee.--For purposes for clause (ii), any
determination of full-time, part-time, or
seasonal employment status shall be made under
rules similar to the rules of section 105(h) or
4980H, whichever the employer elects for the
plan year. Such election shall apply with
respect to all employees of the employer for
the plan year.
``(v) Permitted variation.--For purposes of
clause (i)(I), an arrangement shall not fail to
be treated as provided on the same terms within
a specified class merely because the maximum
dollar amount of payments and reimbursements
which may be made under the terms of the
arrangement for the year with respect to each
employee within such class--
``(I) increases as additional
dependents of the employee are covered
under the arrangement, and
``(II) increases with respect to a
participant as the age of the
participant increases, but not in
excess of an amount equal to 300
percent of the lowest maximum dollar
amount with respect to such a
participant determined without regard
to age.
``(D) Substantiation requirements.--An arrangement
meets the requirements of this subparagraph if the
arrangement has reasonable procedures to substantiate--
``(i) that the participant and any
dependents are, or will be, enrolled in
coverage described in subparagraph (B)(ii) as
of the beginning of the plan year of the
arrangement (or as of the beginning of coverage
under the arrangement in the case of an
employee who first becomes eligible to
participate in the arrangement after the date
notice is given with respect to the plan under
subparagraph (E) (determined without regard to
clause (iii) thereof), and
``(ii) any requests made for payment or
reimbursement of medical care under the
arrangement and that the participant and any
dependents remain so enrolled.
``(E) Notice.--
``(i) In general.--Except as provided in
clause (iii), an arrangement meets the
requirements of this subparagraph if, under the
arrangement, each employee eligible to
participate is, not later than 60 days before
the beginning of the plan year, given written
notice of the employee's rights and obligations
under the arrangement which--
``(I) is sufficiently accurate and
comprehensive to apprise the employee
of such rights and obligations, and
``(II) is written in a manner
calculated to be understood by the
average employee eligible to
participate.
``(ii) Notice requirements.--Such notice
shall include such information as the Secretary
may by regulation prescribe.
``(iii) Notice deadline for certain
employees.--In the case of an employee--
``(I) who first becomes eligible to
participate in the arrangement after
the date notice is given with respect
to the plan under clause (i)
(determined without regard to this
clause), or
``(II) whose employer is first
established fewer than 120 days before
the beginning of the first plan year of
the arrangement,
the requirements of this subparagraph shall be
treated as met if the notice required under
clause (i) is provided not later than the date
the arrangement may take effect with respect to
such employee.''.
(b) Inclusion of CHOICE Arrangment Permitted Benefits on W-2.--
(1) In general.--Section 6051(a), as amended by the
preceding provisions of this Act, is amended by striking
``and'' at the end of paragraph (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 permitted benefits for enrolled
individuals under a custom health option and individual care
expense arrangement (as defined in section 9815(b)(2)) with
respect to such employee.''.
(c) Treatment of Current Rules Relating to Certain Arrangements.--
(1) No inference.--To the extent not inconsistent with the
amendments made by this section--
(A) no inference shall be made from such amendments
with respect to the rules prescribed in the Federal
Register on June 20, 2019, (84 Fed. Reg. 28888)
relating to health reimbursement arrangements and other
account-based group health plans, and
(B) any reference to custom health option and
individual care expense arrangements shall for purposes
of such rules be treated as including a reference to
individual coverage health reimbursement arrangements.
(2) Other conforming of rules.--The Secretary of the
Treasury, the Secretary of Health and Human Services, and the
Secretary of Labor shall modify such rules as may be necessary
to conform to the amendments made by this section.
(d) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2025.
SEC. 110202. PARTICIPANTS IN CHOICE ARRANGEMENT ELIGIBLE FOR PURCHASE
OF EXCHANGE INSURANCE UNDER CAFETERIA PLAN.
(a) In General.--Section 125(f)(3) is amended by adding at the end
the following new subparagraph:
``(C) Exception for participants in CHOICE
arrangement.--Subparagraph (A) shall not apply in the
case of an employee participating in a custom health
option and individual care expense arrangement (within
the meaning of section 9815(b)(2)) offered by the
employee's employer.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 110203. EMPLOYER CREDIT FOR CHOICE ARRANGEMENT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 45BB. EMPLOYER CREDIT FOR CHOICE ARRANGEMENT.
``(a) In General.--For purposes of section 38, in the case of an
eligible employer, the CHOICE arrangement credit determined under this
section for any taxable year is an amount, with respect to each
employee enrolled during the credit period in a CHOICE arrangement
maintained by the employer, equal to--
``(1) $100 multiplied by the number of months for which the
employee is so enrolled during the first year in the credit
period, and
``(2) one-half of the dollar amount in effect under
paragraph (1) for the taxable year, multiplied by the number of
months for which the employee is so enrolled during the second
year of the credit period.
``(b) Arrangement Must Constitute Minimum Essential Coverage.--An
employee shall not be taken into account under subsection (a) unless
such employee's eligibility for the CHOICE arrangement (determined
without regard to the employee being enrolled) would cause the employee
to be treated under section 36B(c)(2) as being eligible for minimum
essential coverage consisting of an eligible employer-sponsored plan
(as defined in section 5000A(f)(2)).
``(c) Definitions.--For purposes of this section--
``(1) CHOICE arrangement.--The term `CHOICE arrangement'
means a custom health option and individual care expense
arrangement (as defined in section 9815(b)(2)(B)).
``(2) Credit period.--The credit period with respect to an
eligible employer is the first 2 one-year periods beginning
with the month during which the employer first establishes a
CHOICE arrangement on behalf of employees of the employer.
``(3) Eligible employer.--The term `eligible employer'
means, with respect to any taxable year beginning in a calendar
year, an employer who is not an applicable large employer for
the calendar year under section 4980H.
``(d) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning in a calendar year after 2026, the dollar amount in
subsection (a) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
such taxable year begins by substituting `calendar year
2025' for `calendar year 2016' in subparagraph (A)(ii)
thereof.
``(2) Rounding.--If any amount after adjustment under
paragraph (1) is not a multiple of $10, such amount shall be
rounded to the next lower multiple of $10.''.
(b) Credit Made Part of General Business Credit.--Section 38(b) is
amended by striking ``plus'' at the end of paragraph (40), by striking
the period at the end of paragraph (41) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(42) the CHOICE arrangement credit determined under
section 45BB(a).''.
(c) Credit Allowed Against Alternative Minimum Tax.--Section
38(c)(4)(B) is amended--
(1) by redesignating clauses (x), (xi), and (xii) as
clauses (xi), (xii), and (xiii), respectively, and
(2) by inserting after clause (ix) the following new
clause:
``(x) the credit determined under section
45BB,''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45BB. Employer credit for CHOICE arrangement.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110204. INDIVIDUALS ENTITLED TO PART A OF MEDICARE BY REASON OF
AGE ALLOWED TO CONTRIBUTE TO HEALTH SAVINGS ACCOUNTS.
(a) In General.--Section 223(c)(1)(B) is amended by striking
``and'' at the end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, and'', and by adding at the end the
following new clause:
``(iv) entitlement to hospital insurance
benefits under part A of title XVIII of the
Social Security Act by reason of section 226(a)
of such Act.''.
(b) Treatment of Health Insurance Purchased From Account.--Section
223(d)(2)(C)(iv) is amended by inserting ``and who is not an eligible
individual'' after ``who has attained the age specified in section 1811
of the Social Security Act''.
(c) Coordination With Penalty on Distributions Not Used for
Qualified Medical Expenses.--Section 223(f)(4)(C) is amended by
striking ``Subparagraph (A)'' and inserting ``Except in the case of an
eligible individual, subparagraph (A)''
(d) Conforming Amendment.--Section 223(b)(7) is amended by
inserting ``(other than an entitlement to benefits described in
subsection (c)(1)(B)(iv))'' after ``Social Security Act''.
(e) Effective Date.--The amendments made by this section shall
apply to months beginning after December 31, 2025.
SEC. 110205. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS.
(a) In General.--Section 223(c)(1) is amended by adding at the end
the following new subparagraph:
``(E) Treatment of direct primary care service
arrangements.--
``(i) In general.--A direct primary care
service arrangement shall not be treated as a
health plan for purposes of subparagraph
(A)(ii).
``(ii) Direct primary care service
arrangement.--For purposes of this
subparagraph--
``(I) In general.--The term `direct
primary care service arrangement'
means, with respect to any individual,
an arrangement under which such
individual is provided medical care (as
defined in section 213(d)) consisting
solely of primary care services
provided by primary care practitioners
(as defined in section 1833(x)(2)(A) of
the Social Security Act, determined
without regard to clause (ii) thereof),
if the sole compensation for such care
is a fixed periodic fee.
``(II) Limitation.--With respect to
any individual for any month, such term
shall not include any arrangement if
the aggregate fees for all direct
primary care service arrangements
(determined without regard to this
subclause) with respect to such
individual for such month exceed $150
(twice such dollar amount in the case
of an individual with any direct
primary care service arrangement (as so
determined) that covers more than one
individual).
``(iii) Certain services specifically
excluded from treatment as primary care
services.--For purposes of this subparagraph,
the term `primary care services' shall not
include--
``(I) procedures that require the
use of general anesthesia,
``(II) prescription drugs (other
than vaccines), and
``(III) laboratory services not
typically administered in an ambulatory
primary care setting.
The Secretary, after consultation with the
Secretary of Health and Human Services, shall
issue regulations or other guidance regarding
the application of this clause.''.
(b) Direct Primary Care Service Arrangement Fees Treated as Medical
Expenses.--Section 223(d)(2)(C) is amended by striking ``or'' at the
end of clause (iii), by striking the period at the end of clause (iv)
and inserting ``, or'', and by adding at the end the following new
clause:
``(v) any direct primary care service
arrangement.''.
(c) Inflation Adjustment.--Section 223(g)(1) is amended--
(1) by inserting ``, (c)(1)(E)(ii)(II),'' after ``(b)(2)''
each place it appears, and
(2) in subparagraph (B), by striking ``clause (ii)'' in
clause (i) and inserting ``clauses (ii) and (iii)'' , by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, and'', and
by inserting after clause (ii) the following new clause:
``(iii) in the case of the dollar amount in
subsection (c)(1)(E)(ii)(II) for taxable years
beginning in calendar years after 2026,
`calendar year 2025'.''.''.
(d) Effective Date.--The amendments made by this section shall
apply to months beginning after December 31, 2025.
SEC. 110206. ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN CONNECTION
WITH HEALTH SAVINGS ACCOUNTS.
(a) In General.--Section 223(c)(2) is amended by adding at the end
the following new subparagraph:
``(H) Bronze and catastrophic plans treated as high
deductible health plans.--The term `high deductible
health plan' shall include any plan--
``(i) available as individual coverage
through an Exchange established under section
1311 or 1321 of the Patient Protection and
Affordable Care Act, and
``(ii) described in subsection (d)(1)(A) or
(e) of section 1302 of such Act.''.
(b) Effective Date.--The amendment made by this section shall apply
to months beginning after December 31, 2025.
SEC. 110207. ON-SITE EMPLOYEE CLINICS.
(a) In General.--Section 223(c)(1), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new subparagraph:
``(F) Special rule for qualified items and
services.--
``(i) In general.--For purposes of
subparagraph (A)(ii), an individual shall not
be treated as covered under a health plan
described in subclauses (I) and (II) of such
subparagraph merely because the individual is
eligible to receive, or receives, qualified
items and services--
``(I) at a healthcare facility
located at a facility owned or leased
by the employer of the individual (or
of the individual's spouse), or
``(II) at a healthcare facility
operated primarily for the benefit of
employees of the employer of the
individual (or of the individual's
spouse).
``(ii) Qualified items and services
defined.--For purposes of this subparagraph,
the term `qualified items and services' means
the following:
``(I) Physical examination.
``(II) Immunizations, including
injections of antigens provided by
employees.
``(III) Drugs or biologicals other
than a prescribed drug (as such term is
defined in section 213(d)(3)).
``(IV) Treatment for injuries
occurring in the course of employment.
``(V) Preventive care for chronic
conditions (as defined in clause (iv)).
``(VI) Drug testing.
``(VII) Hearing or vision
screenings and related services.
``(iii) Aggregation.--For purposes of
clause (i), all persons treated as a single
employer under subsection (b), (c), (m), or (o)
of section 414 shall be treated as a single
employer.
``(iv) Preventive care for chronic
conditions.--For purposes of this subparagraph,
the term `preventive care for chronic
conditions' means any item or service specified
in the Appendix of Internal Revenue Service
Notice 2019-45 which is prescribed to treat an
individual diagnosed with the associated
chronic condition specified in such Appendix
for the purpose of preventing the exacerbation
of such chronic condition or the development of
a secondary condition, including any amendment,
addition, removal, or other modification made
by the Secretary (pursuant to the authority
granted to the Secretary under paragraph
(2)(C)) to the items or services specified in
such Appendix subsequent to the date of
publication of such Notice.''.
(b) Effective Date.--The amendments made by this section shall
apply to months in taxable years beginning after December 31, 2025.
SEC. 110208. CERTAIN AMOUNTS PAID FOR PHYSICAL ACTIVITY, FITNESS, AND
EXERCISE TREATED AS AMOUNTS PAID FOR MEDICAL CARE.
(a) In General.--Section 223(d)(2)(A) is amended by adding at the
end the following: ``For purposes of this subparagraph, amounts paid
for qualified sports and fitness expenses shall be treated as paid for
medical care.''.
(b) Qualified Sports and Fitness Expenses.--Section 223(d)(2) is
amended by adding at the end the following new subparagraph:
``(E) Qualified sports and fitness expenses.--For
purposes of this paragraph--
``(i) In general.--The term `qualified
sports and fitness expenses' means amounts paid
exclusively for the sole purpose of
participating in a physical activity
including--
``(I) for membership at a fitness
facility, or
``(II) for participation or
instruction in physical exercise or
physical activity.
``(ii) Overall dollar limitation.--
``(I) In general.--The aggregate
amount treated as qualified sports and
fitness expenses with respect to any
taxpayer for any taxable year shall not
exceed $500 ($1,000 in the case of a
joint return or a head of household (as
defined in section 2(b))).
``(II) Monthly limit.--The amount
taken into account under subparagraph
(A) as paid for participating in a
physical activity during a month
beginning during the taxable year shall
not exceed an amount equal to 1/12 of
the amount in effect with respect to
the taxpayer for the taxable year under
subclause (I).
``(iii) Fitness facility.--For purposes of
clause (i)(I), the term `fitness facility'
means a facility--
``(I) which provides instruction in
a program of physical exercise, offers
facilities for the preservation,
maintenance, encouragement, or
development of physical fitness, or
serves as the site of such a program of
a State or local government,
``(II) which is not a private club
owned and operated by its members,
``(III) which does not offer golf,
hunting, sailing, or riding facilities,
``(IV) the health or fitness
component of which is not incidental to
its overall function and purpose, and
``(V) which is fully compliant with
the State of jurisdiction and Federal
anti-discrimination laws.
``(iv) Treatment of personal trainers,
exercise videos, etc.--The term `qualified
sports and fitness expenses' shall not include
any amount paid for--
``(I) videos, books, or similar
materials,
``(II) remote or virtual
instruction in a physical exercise or
physical activity, unless such
instruction is live, or
``(III) one-on-one personal
training.
``(v) Programs which include components
other than physical exercise and physical
activity.--Rules similar to the rules of
section 213(d)(6) shall apply in the case of
any program that includes physical exercise or
physical activity and also other components.
For purposes of the preceding sentence, travel
and accommodations shall be treated as a
separate component.
``(vi) Membership, participation, and
instruction must be continuing.--An amount
shall not be treated as paid for the purpose of
participating in a physical activity unless--
``(I) in the case of a membership
at a fitness facility, such membership
is for more than 1 day, and
``(II) in the case of participation
or instruction in physical exercise or
physical activity, the amount paid
constitutes payment for more than 1
occasion of such participation or
instruction.
``(vii) Cost-of-living adjustment.--In the
case of any taxable year beginning in a
calendar year after 2026, each dollar amount in
clause (ii)(I) shall be increased by an amount
equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for the calendar year in which
such taxable year begins by
substituting `calendar year 2025' for
`calendar year 2016' in subparagraph
(A)(ii) thereof.
If any increase under the preceding sentence is
not a multiple of $50, such increase shall be
rounded to the nearest multiple of $50.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110209. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE
SAME HEALTH SAVINGS ACCOUNT.
(a) In General.--Section 223(b)(5) is amended to read as follows:
``(5) Special rule for married individuals with family
coverage.--
``(A) In general.--In the case of individuals who
are married to each other, if both spouses are eligible
individuals and either spouse has family coverage under
a high deductible health plan as of the first day of
any month--
``(i) the limitation under paragraph (1)
shall be applied by not taking into account any
other high deductible health plan coverage of
either spouse (and if such spouses both have
family coverage under separate high deductible
health plans, only one such coverage shall be
taken into account),
``(ii) such limitation (after application
of clause (i)) shall be reduced by the
aggregate amount paid to Archer MSAs of such
spouses for the taxable year, and
``(iii) such limitation (after application
of clauses (i) and (ii)) shall be divided
equally between such spouses unless they agree
on a different division.
``(B) Treatment of additional contribution
amounts.--If both spouses referred to in subparagraph
(A) have attained age 55 before the close of the
taxable year, the limitation referred to in
subparagraph (A)(iii) which is subject to division
between the spouses shall include the additional
contribution amounts determined under paragraph (3) for
both spouses. In any other case, any additional
contribution amount determined under paragraph (3)
shall not be taken into account under subparagraph
(A)(iii) and shall not be subject to division between
the spouses.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 110210. FSA AND HRA TERMINATIONS OR CONVERSIONS TO FUND HSAS.
(a) In General.--Section 106(e)(2) is amended to read as follows:
``(2) Qualified HSA distribution.--For purposes of this
subsection--
``(A) In general.--The term `qualified HSA
distribution' means, with respect to any employee, a
distribution from a health flexible spending
arrangement or health reimbursement arrangement of such
employee contributed directly to a health savings
account of such employee if--
``(i) such distribution is made in
connection with such employee establishing
coverage under a high deductible health plan
(as defined in section 223(c)(2)) if during the
4-year period preceding the date the employee
so establishes coverage the employee was not
covered under such a high deductible health
plan, and
``(ii) such arrangement is described in
section 223(c)(1)(B)(v) with respect to any
portion of the plan year remaining after such
distribution is made, if such employee remains
enrolled in such arrangement.
``(B) Dollar limitation.--The aggregate amount of
distributions from health flexible spending
arrangements and health reimbursement arrangements of
any employee which may be treated as qualified HSA
distributions in connection with an establishment of
coverage described in subparagraph (A)(i) shall not
exceed the dollar amount in effect under section
125(i)(1) (twice such amount in the case of coverage
which is described in section 223(b)(2)(B)).''.
(b) Partial Reduction of Limitation on Deductible HSA
Contributions.--Section 223(b)(4) is amended by striking ``and'' at the
end of subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by inserting after
subparagraph (C) the following new subparagraph:
``(D) so much of any qualified HSA distribution (as
defined in section 106(e)(2)) made to a health savings
account of such individual during the taxable year as
does not exceed the aggregate increases in the balance
of the arrangement from which such distribution is made
which occur during the portion of the plan year which
precedes such distribution (other than any balance
carried over to such plan year and determined without
regard to any decrease in such balance during such
portion of the plan year).''.
(c) Conversion to Hsa-compatible Arrangement for Remainder of Plan
Year.--Section 223(c)(1)(B), as amended by this preceding provisions of
this Act, is amended by striking ``and'' at the end of clause (iii), by
striking the period at the end of clause (iv) and inserting ``, and'',
and by adding at the end the following new clause:
``(v) coverage under a health flexible
spending arrangement or health reimbursement
arrangement for the portion of the plan year
after a qualified HSA distribution (as defined
in section 106(e)(2) determined without regard
to subparagraph (A)(ii) thereof) is made, if
the terms of such arrangement which apply for
such portion of the plan year are such that, if
such terms applied for the entire plan year,
then such arrangement would not be taken into
account under subparagraph (A)(ii) of this
paragraph for such plan year.''.
(d) Inclusion of Qualified HSA Distributions on w-2.--
(1) In general.--Section 6051(a), as amended by the
preceding provisions of this Act, is amended by striking
``and'' at the end of paragraph (18), by striking the period at
the end of paragraph (19) and inserting ``, and'', and by
inserting after paragraph (19) the following new paragraph:
``(20) the amount of any qualified HSA distribution (as
defined in section 106(e)(2)) with respect to such employee.''.
(2) Conforming amendment.--Section 6051(a)(12) is amended
by inserting ``(other than any qualified HSA distribution, as
defined in section 106(e)(2))'' before the comma at the end.
(e) Effective Date.--The amendments made by this section shall
apply to distributions made after December 31, 2025.
SEC. 110211. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE
ESTABLISHMENT OF HEALTH SAVINGS ACCOUNT.
(a) In General.--Section 223(d)(2), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new subparagraph:
``(F) Treatment of certain medical expenses
incurred before establishment of account.--If a health
savings account is established during the 60-day period
beginning on the date that coverage of the account
beneficiary under a high deductible health plan begins,
then, solely for purposes of determining whether an
amount paid is used for a qualified medical expense,
such account shall be treated as having been
established on the date that such coverage begins.''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to coverage beginning after December 31, 2025.
SEC. 110212. CONTRIBUTIONS PERMITTED IF SPOUSE HAS HEALTH FLEXIBLE
SPENDING ARRANGEMENT.
(a) Contributions Permitted if Spouse Has a Health Flexible
Spending Arrangement.--Section 223(c)(1)(B), as amended by this
preceding provisions of this Act, is amended by striking ``and'' at the
end of clause (iv), by striking the period at the end of clause (v) and
inserting ``, and'', and by adding at the end the following new clause:
``(vi) coverage under a health flexible
spending arrangement of the spouse of the
individual for any plan year of such
arrangement if the aggregate reimbursements
under such arrangement for such year do not
exceed the aggregate expenses which would be
eligible for reimbursement under such
arrangement if such expenses were determined
without regard to any expenses paid or incurred
with respect to such individual.''.
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after December 31, 2025.
SEC. 110213. INCREASE IN HEALTH SAVINGS ACCOUNT CONTRIBUTION LIMITATION
FOR CERTAIN INDIVIDUALS.
(a) Increase.--
(1) In general.--Section 223(b) is amended by adding at the
end the following new paragraph:
``(9) Increase in limitation for certain taxpayers.--
``(A) In general.--The applicable limitation under
subparagraphs (A) and (B) of paragraph (2) shall be
increased by $4,300 and $8,550, respectively.
``(B) Limitation based on modified adjusted gross
income.--The amount of the increase under subparagraph
(A) (determined without regard to this subparagraph)
shall be reduced (but not below zero) by the amount
which bears the same ratio to the amount of such
increase (as so determined) as--
``(i) the excess (if any) of--
``(I) the taxpayer's adjusted gross
income for such taxable year, over
``(II) $75,000 ($150,000 in the
case of a joint return, if the eligible
individual has family coverage), bears
to
``(ii) $25,000 ($50,000 in the case of a
joint return, if the eligible individual has
family coverage).
For purposes of the preceding sentence, adjusted gross
income shall be determined in the same manner as under
section 219(g)(3)(A), except determined without regard
to any deduction allowed under this section.''.
(2) Only to apply to employee contributions.--Section
106(d)(1) is amended by inserting ``and section 223(b)(9)''
after ``determined without regard to this subsection''.
(b) Inflation Adjustment.--Section 223(g), as amended by the
preceding provisions of this Act, is amended--
(1) by inserting ``, (b)(9)(A), (b)(9)(B)(i)(II),'' before
``and (c)(2)(A)'' each place it appears,
(2) by striking ``clauses (ii) and (ii)'' in paragraph
(1)(B)(i) and inserting ``clauses (ii), (iii), and (iv)'',
(3) by striking ``and'' at the end of paragraph (1)(B)(ii),
(4) by striking the period at the end of paragraph
(1)(B)(iii) and inserting ``, and'', and
(5) by inserting after paragraph (1)(B)(iii) the following
new clause:
``(iv) in the case of the dollar amounts in
subsections (b)(9)(A) and (b)(9)(B)(i)(II),
`calendar year 2025'.''.
(c) Effective Date.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31, 2025.
(2) Subsection (b).--The amendments made by subsection (b)
shall apply to taxable years beginning after December 31, 2026.
SEC. 110214. REGULATIONS.
The Secretary of the Treasury and the Secretary of Health and Human
Services may each prescribe such rules and other guidance as may be
necessary or appropriate to carry out the amendments made by this part.
Subtitle B--Make Rural America and Main Street Grow Again
PART 1--EXTENSION OF TAX CUTS AND JOBS ACT REFORMS FOR RURAL AMERICA
AND MAIN STREET
SEC. 111001. EXTENSION OF SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN
PROPERTY.
(a) In General.--Section 168(k) is amended--
(1) in paragraph (2)--
(A) by striking ``January 1, 2027'' each place it
appears and inserting ``January 1, 2030'', and
(B) in subparagraph (B)--
(i) in clause (i)(II), by striking
``January 1, 2028'' and inserting ``January 1,
2031'', and
(ii) in the heading of clause (ii), by
striking ``pre-january 1, 2027 basis'' and
inserting ``pre-january 1, 2030 basis'',
(2) in paragraph (5)(A), by striking ``January 1, 2027''
and inserting ``January 1, 2030'', and
(3) in paragraph (6)--
(A) in subparagraph (A)--
(i) by inserting ``in the case of property
acquired by the taxpayer before January 20,
2025,'' after ``Except as otherwise provided in
this paragraph'' , and
(ii) by striking ``and'' at the end of
clause (iv), by striking the period at the end
of clause (v) and inserting ``, and'', and by
adding at the end the following new clause:
``(vi) in the case of property placed in
service after December 31, 2026, 0 percent.'',
(B) in subparagraph (B)--
(i) by striking ``In the case of property
described'' and inserting ``In the case of
property acquired by the taxpayer before
January 20, 2025 and described'', and
(ii) by striking ``and'' at the end of
clause (iv), by striking the period at the end
of clause (v) and inserting ``, and'', and by
adding at the end the following new clause:
``(vi) in the case of property placed in
service after December 31, 2027, 0 percent.'',
(C) in subparagraph (C), by inserting ``and'' at
the end of clause (iii), by striking clauses (iv) and
(v), and by adding at the end the following new clause:
``(iv) in the case of a plant which is
planted or grafted after January 19, 2025, and
before January 1, 2030, 100 percent.'', and
(D) by adding at the end the following new
subparagraph:
``(D) Rule for property acquired after january 19,
2025.--
``(i) In general.--In the case of property
acquired by the taxpayer after January 19, 2025
and placed in service after such date and
before January 1, 2030 (January 1, 2031, in the
case of property described in subparagraph (B)
or (C) of paragraph (2)), the term `applicable
percentage' means 100 percent.
``(ii) Acquisition date determination.--For
purposes of clause (i), property shall not be
treated as acquired after the date on which a
written binding contract is entered into for
such acquisition.''.
(b) Conforming Amendment.--Section 460(c)(6)(B) is amended by
striking ``which'' and all that follows through the period and
inserting ``which has a recovery period of 7 years or less.''.
(c) Effective Dates.--
(1) In general.--Except as provided by paragraph (2), the
amendments made by this section shall apply to property
acquired after January 19, 2025 and placed in service after
such date.
(2) Specified plants.--The amendments made by this section
shall apply to specified plants planted or grafted after
January 19, 2025.
SEC. 111002. DEDUCTION OF DOMESTIC RESEARCH AND EXPERIMENTAL
EXPENDITURES.
(a) Suspension of Amortization for Domestic Research and
Experimental Expenditures.--Section 174 is amended by adding at the end
the following new subsection:
``(e) Suspension of Application to Domestic Research and
Experimental Expenditures.--In the case of any domestic research or
experimental expenditures (as defined in section 174A(b)), this section
shall not apply to such expenditures paid or incurred in taxable years
beginning after December 31, 2024, and before January 1, 2030.''.
(b) Reinstatement of Expensing for Domestic Research and
Experimental Expenditures.--Part VI of subchapter B of chapter 1 is
amended by inserting after section 174 the following new section:
``SEC. 174A. TEMPORARY RULES FOR DOMESTIC RESEARCH AND EXPERIMENTAL
EXPENDITURES.
``(a) Treatment as Expenses.--Notwithstanding section 263, there
shall be allowed as a deduction any domestic research or experimental
expenditures which are paid or incurred by the taxpayer during the
taxable year.
``(b) Domestic Research or Experimental Expenditures.--For purposes
of this section, the term `domestic research or experimental
expenditures' means research or experimental expenditures paid or
incurred by the taxpayer in connection with the taxpayer's trade or
business other than such expenditures which are attributable to foreign
research (within the meaning of section 41(d)(4)(F)).
``(c) Amortization of Certain Domestic Research and Experimental
Expenditures.--
``(1) In general.--At the election of the taxpayer, made in
accordance with regulations or other guidance provided by the
Secretary, in the case of domestic research or experimental
expenditures which would (but for subsection (a)) be chargeable
to capital account but not chargeable to property of a
character which is subject to the allowance under section 167
(relating to allowance for depreciation, etc.) or section 611
(relating to allowance for depletion), subsection (a) shall not
apply and the taxpayer shall--
``(A) charge such expenditures to capital account,
and
``(B) be allowed an amortization deduction of such
expenditures ratably over such period of not less than
60 months as may be selected by the taxpayer (beginning
with the midpoint of the taxable year in which such
expenditures are paid or incurred).
``(2) Time for and scope of election.--The election
provided by paragraph (1) may be made for any taxable year, but
only if made not later than the time prescribed by law for
filing the return for such taxable year (including extensions
thereof). The method so elected, and the period selected by the
taxpayer, shall be adhered to in computing taxable income for
the taxable year for which the election is made and for all
subsequent taxable years unless, with the approval of the
Secretary, a change to a different method (or to a different
period) is authorized with respect to part or all of such
expenditures. The election shall not apply to any expenditure
paid or incurred during any taxable year before the taxable
year for which the taxpayer makes the election.
``(d) Special Rules.--
``(1) Land and other property.--This section shall not
apply to any expenditure for the acquisition or improvement of
land, or for the acquisition or improvement of property to be
used in connection with the research or experimentation and of
a character which is subject to the allowance under section 167
(relating to allowance for depreciation, etc.) or section 611
(relating to allowance for depletion); but for purposes of this
section allowances under section 167, and allowances under
section 611, shall be considered as expenditures.
``(2) Exploration expenditures.--This section shall not
apply to any expenditure paid or incurred for the purpose of
ascertaining the existence, location, extent, or quality of any
deposit of ore or other mineral (including oil and gas).
``(3) Software development.--For purposes of this section,
any amount paid or incurred in connection with the development
of any software shall be treated as a research or experimental
expenditure.
``(e) Termination.--
``(1) In general.--This section shall not apply to amounts
paid or incurred in taxable years beginning after December 31,
2029.
``(2) Change in method of accounting.--In the case of a
taxpayer's first taxable year beginning after December 31,
2029, paragraph (1) (and the corresponding application of
section 174) shall be treated as a change in method of
accounting for purposes of section 481 and--
``(A) such change shall be treated as initiated by
the taxpayer,
``(B) such change shall be treated as made with the
consent of the Secretary, and
``(C) such change shall be applied only on a cut-
off basis for any domestic research or experimental
expenditures paid or incurred in taxable years
beginning after December 31, 2029, and no adjustment
under section 481(a) shall be made.''.
(c) Treatment of Foreign Research or Experimental Expenditures Upon
Disposition.--Section 174(d) is amended by inserting ``or reduction to
amount realized'' after ``no deduction''.
(d) Coordination With Certain Other Provisions.--
(1) Research credit.--
(A) Section 41(d)(1)(A) is amended by inserting
``or domestic research or experimental expenditures
under section 174A'' after ``section 174''.
(B) Section 280C(c) is amended by adding at the end
the following new paragraph:
``(4) Domestic research or experimental expenditures.--The
domestic research or experimental expenditures otherwise taken
into account under section 174A shall be reduced by the amount
of the credit allowed under section 41(a).''.
(C) Section 280C(c) is amended--
(i) in paragraph (1)(B)--
(I) by striking ``a deduction'' and
inserting ``an amortization
deduction'', and
(II) by inserting ``under section
174'' after ``basic research
expenses'', and
(ii) in paragraph (2)(A)(i), by striking
``paragraph (1)'' and inserting ``paragraphs
(1) and (4)''.
(2) AMT adjustment.--Section 56(b)(2) is amended--
(A) by striking ``174(a)'' each place it appears
and inserting ``174A(a)'', and
(B) by adding at the end of subparagraph (A) the
following new flush sentence:
``In the case of research and experimental expenditures
charged to capital account and amortized under section
174 or 174A, such amounts shall be amortized for
purposes of this subsection as provided in clause
(ii).''.
(3) Optional 10-year writeoff.--Section 59(e)(2)(B) is
amended by striking ``section 174(a) (relating to research and
experimental expenditures)'' and inserting ``section 174A(a)
(relating to temporary rules for domestic research and
experimental expenditures)''.
(4) Qualified small issue bonds.--Section 144(a)(4)(C)(iv)
is amended by inserting ``or 174A(a)'' after ``174(a)''.
(5) Start-up expenditures.--Section 195(c)(1) is amended by
striking ``or 174'' in the last sentence and inserting ``174,
or 174A''.
(6) Capital expenditures.--
(A) Section 263(a)(1)(B) is amended by inserting ``
or 174A'' after ``174''.
(B) Section 263A(c)(2) is amended by inserting ``or
174A'' after ``174''.
(7) Active business computer software royalties.--Section
543(d)(4)(A)(i) is amended by inserting ``174A,'' after
``174,''.
(8) Source rules.--Section 864(g)(2) is amended in the last
sentence--
(A) by striking ``treated as deferred expenses
under subsection (b) of section 174'' and inserting
``allowed as an amortization deduction under section
174(a) or section 174A(c),'', and
(B) by striking ``such subsection'' and inserting
``such section (as the case may be)''.
(9) Basis adjustment.--Section 1016(a)(14) is amended by
striking ``deductions as deferred expenses under section
174(b)(1) (relating to research and experimental
expenditures)'' and inserting ``deductions under section 174 or
174A(c)''.
(10) Small business stock.--Section 1202(e)(2)(B) is
amended by striking ``research and experimental expenditures
under section 174'' and inserting ``specified research or
experimental expenditures under section 174 or domestic
research or experimental expenditures under section 174A''.
(e) Clerical Amendment.--The table of sections for part VI of
subchapter B of chapter 1 is amended by inserting after the item
relating to section 174 the following new item:
``Sec. 174A. Temporary rules for domestic research and experimental
expenditures.''.
(f) Effective Date and Special Rule.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
amounts paid or incurred in taxable years beginning after
December 31, 2024.
(2) Treatment of foreign research or experimental
expenditures upon disposition.--The amendment made by
subsection (c) shall apply to property disposed, retired, or
abandoned after May 12, 2025.
(3) Coordination with research credit.--The amendments made
by subparagraphs (B) and (C) of subsection (d)(1) shall apply
to taxable years beginning after December 31, 2024.
(4) Special rule for short taxable years.--The Secretary of
the Treasury may prescribe such rules as are necessary or
appropriate to provide for the application of the amendments
made by this section in the case of any taxable year of less
than 12 months that begins after December 31, 2024, and ends
before the date of the enactment of this Act.
(5) Change in method of accounting.--The amendments made by
this section shall be treated as a change in method of
accounting for purposes of section 481 of the Internal Revenue
Code of 1986 and--
(A) such change shall be treated as initiated by
the taxpayer,
(B) such change shall be treated as made with the
consent of the Secretary, and
(C) such change shall be applied only on a cut-off
basis for any research or experimental expenditures
paid or incurred in taxable years beginning after
December 31, 2024, and no adjustments under section
481(a) shall be made.
(6) No inference.--The amendments made by subparagraphs (B)
and (C) of subsection (d)(1) shall not be construed to create
any inference with respect to the proper application of section
280C(c) of the Internal Revenue Code of 1986 with respect to
taxable years beginning before January 1, 2025.
SEC. 111003. MODIFIED CALCULATION OF ADJUSTED TAXABLE INCOME FOR
PURPOSES OF BUSINESS INTEREST DEDUCTION.
(a) In General.--Section 163(j)(8)(A)(v) is amended by striking
``beginning before January 1, 2022'' and inserting ``beginning after
December 31, 2024 and before January 1, 2030''.
(b) Floor Plan Financing Applicable to Certain Trailers and
Campers.--Section 163(j)(9)(C) is amended by adding at the end the
following new flush sentence:
``Such term shall also include any trailer or camper
which is designed to provide temporary living quarters
for recreational, camping, or seasonal use and is
designed to be towed by, or affixed to, a motor
vehicle.''.
(c) Effective Date and Special Rule.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
(2) Special rule for short taxable years.--The Secretary of
the Treasury may prescribe such rules as are necessary or
appropriate to provide for the application of the amendments
made by this section in the case of any taxable year of less
than 12 months that begins after December 31, 2024, and ends
before the date of the enactment of this Act.
SEC. 111004. EXTENSION OF DEDUCTION FOR FOREIGN-DERIVED INTANGIBLE
INCOME AND GLOBAL INTANGIBLE LOW-TAXED INCOME.
(a) In General.--Section 250(a) is amended by striking paragraph
(3).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 111005. EXTENSION OF BASE EROSION MINIMUM TAX AMOUNT.
(a) In General.--Section 59A(b) is amended by striking paragraph
(2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and
(3), respectively.
(b) Conforming Amendments.--
(1) Section 59A(b)(1) is amended by striking ``Except as
provided in paragraphs (2) and (3)'' and inserting ``Except as
provided in paragraph (2)''.
(2) Section 59A(b)(2), as redesignated by subsection
(a)(2), is amended by striking ``the percentage otherwise in
effect under paragraphs (1)(A) and (2)(A) shall each be
increased'' and inserting ``the percentages otherwise in effect
under paragraph (1)(A) shall be increased''.
(3) Section 59A(e)(1)(C) is amended by striking ``in the
case of a taxpayer described in subsection (b)(3)(B)'' and
inserting ``in the case of a taxpayer described in subsection
(b)(2)(B)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
PART 2--ADDITIONAL TAX RELIEF FOR RURAL AMERICA AND MAIN STREET
SEC. 111101. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED PRODUCTION
PROPERTY.
(a) In General.--Section 168 is amended by adding at the end the
following new subsection:
``(n) Special Allowance for Qualified Production Property.--
``(1) In general.--In the case of any qualified production
property--
``(A) the depreciation deduction provided by
section 167(a) for the taxable year in which such
property is placed in service shall include an
allowance equal to 100 percent of the adjusted basis of
the qualified production property, and
``(B) the adjusted basis of the qualified
production property shall be reduced by the amount of
such deduction before computing the amount otherwise
allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent
taxable year.
``(2) Qualified production property.--For purposes of this
subsection--
``(A) In general.--The term `qualified production
property' means that portion of any nonresidential real
property--
``(i) to which this section applies,
``(ii) which is used by the taxpayer as an
integral part of a qualified production
activity,
``(iii) which is placed in service in the
United States or any possession of the United
States,
``(iv) the original use of which commences
with the taxpayer,
``(v) the construction of which begins
after January 19, 2025, and before January 1,
2029,
``(vi) with respect to which the taxpayer
has elected the application of this subsection,
and
``(vii) which is placed in service before
January 1, 2033.
``(B) Special rule for certain property not
previously used in qualified production activities.--
``(i) In general.--In the case of property
acquired by the taxpayer during the period
described in subparagraph (A)(v), the
requirements of clauses (iv) and (v) of
subparagraph (A) shall be treated as satisfied
if such property was not used in a qualified
production activity (determined without regard
to the second sentence of subparagraph (D)) by
any person at any time during the period
beginning on January 1, 2021, and ending on May
12, 2025.
``(ii) Written binding contracts.--For
purposes of determining under clause (i)--
``(I) whether such property is
acquired before the period described in
subparagraph (A)(v), such property
shall be treated as acquired not later
than the date on which the taxpayer
enters into a written binding contract
for such acquisition, and
``(II) whether such property is
acquired after such period, such
property shall be treated as acquired
not earlier than such date.
``(C) Exclusion of office space, etc.--The term
`qualified production property' shall not include that
portion of any nonresidential real property which is
used for offices, administrative services, lodging,
parking, sales activities, research activities,
software engineering activities, or other functions
unrelated to manufacturing, production, or refining of
tangible personal property.
``(D) Qualified production activity.--The term
`qualified production activity' means the
manufacturing, production, or refining of a qualified
product. The activities of any taxpayer do not
constitute manufacturing, production, or refining of a
qualified product unless the activities of such
taxpayer result in a substantial transformation of the
property comprising the product.
``(E) Production.--The term `production' shall not
include activities other than agricultural production
and chemical production.
``(F) Qualified product.--The term `qualified
product' means any tangible personal property.
``(G) Syndication.--For purposes of subparagraph
(A)(iv), rules similar to the rules of subsection
(k)(2)(E)(iii) shall apply.
``(3) Deduction allowed in computing minimum tax.--For
purposes of determining alternative minimum taxable income
under section 55, the deduction under section 167 for qualified
production property shall be determined under this section
without regard to any adjustment under section 56.
``(4) Coordination with certain other provisions.--
``(A) Other special depreciation allowances.--The
term `qualified production property' shall not include
any property to which subsection (k), (l), or (m)
applies. For purposes of subsections (k)(7), (l)(3)(D),
and (m)(2)(B)(iii), qualified production property to
which this subsection applies shall be treated as a
separate class of property.
``(B) Alternative depreciation property.--The term
`qualified production property' shall not include any
property to which the alternative depreciation system
under subsection (g) applies. For purposes of
subsection (g)(7)(A), qualified production property to
which this subsection applies shall be treated as
separate nonresidential real property.
``(5) Recapture.--If, at any time during the 10-year period
beginning on the date that any qualified production property is
placed in service by the taxpayer, such property ceases to be
used as described in paragraph (2)(A)(ii) and is used by the
taxpayer in a productive use not described in paragraph
(2)(A)(ii)--
``(A) section 1245 shall be applied--
``(i) by treating such property as having
been disposed of by the taxpayer as of the
first time such property is so used in a
productive use not described in paragraph
(2)(A)(ii), and
``(ii) by treating the amount described in
subparagraph (B) of section 1245(a)(1) with
respect to such disposition as being not less
than the amount described in subparagraph (A)
of such section, and
``(B) the basis of the taxpayer in such property,
and the taxpayer's allowance for depreciation with
respect to such property, shall be appropriately
adjusted to take into account amounts recognized by
reason of subparagraph (A).
``(6) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this subsection,
including regulations or other guidance--
``(A) regarding what constitutes a substantial
transformation of property, and
``(B) providing for the application of paragraph
(5) with respect to a change in use described in such
paragraph by a transferee following a fully or
partially tax free transfer of qualified production
property.''.
(b) Treatment of Qualified Production Property as Section 1245
Property.--Section 1245(a)(3) is amended by striking ``or'' at the end
of subparagraph (E), by striking the period at the end of subparagraph
(F) and inserting ``, or'', and by adding at the end the following new
subparagraph:
``(G) any qualified production property (as defined
in section 168(n)(2)).''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 111102. RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES.
(a) Modification of Low-income Community Definition.--Section
1400Z-1(c)(1) is amended--
(1) by striking ``communities.--The term'' and inserting
the following: ``communities.--
``(A) In general.--The term'', and
(2) by adding at the end the following:
``(B) Modifications.--For purposes of subparagraph
(A), section 45D(e)(1) shall be applied in subparagraph
(B) thereof, by substituting `70 percent' for `80
percent' each place it appears.
``(C) Certain census tracts disallowed.--The term
`low-income community' shall not include any population
census tract if--
``(i) in the case of a tract not located
within a metropolitan area, the median family
income for such tract is at least 125 percent
of statewide median family income, or
``(ii) in the case of a tract located
within a metropolitan area, the median family
income for such tract is at least 125 percent
of the metropolitan area median family
income.''.
(b) New Round of Qualified Opportunity Zone Designations.--
(1) In general.--Section 1400Z-1 is amended by adding at
the end the following new subsection:
``(g) New Round of Qualified Opportunity Zone Designations.--
``(1) In general.--In addition to designations under
subsection (b), and under rules similar to the rules of such
subsection, the Secretary shall designate tracts nominated by
the chief executive officers of States for purposes of this
section.
``(2) Number of designations; proportion of rural areas
designated.--
``(A) In general.--Of the low-income communities
within a State, the Secretary may designate under this
subsection not more than 25 percent as qualified
opportunity zones, of which at least the lesser of the
following shall be qualified opportunity zones which
are comprised entirely of a rural area:
``(i) The applicable percentage of the
total number of qualified opportunity zone
designations which may be made within the State
under this subsection.
``(ii) All low-income communities within
the State which are comprised entirely of a
rural area.
``(B) Applicable percentage.--For purposes of this
paragraph, the applicable percentage shall be, for any
calendar year during which a designation is made, the
greater of--
``(i) 33 percent, or
``(ii) the percentage of the United States
population living within a rural area for the
preceding calendar year.
``(3) Rural area.--Whether a low-income community is
comprised entirely of a rural area shall be determined by the
Secretary in consultation with the Secretary of Agriculture.
For purposes of this subsection, the term `rural area' has the
meaning given such term by section 343(a)(13)(A) of the
Consolidated Farm and Rural Development Act.
``(4) Period for which designation is in effect.--A
designation as a qualified opportunity zone under this
subsection shall remain in effect for the period beginning on
January 1, 2027, and ending on December 31, 2033.
``(5) Contiguous tracts not eligible.--Subsection (e) shall
not apply to designations made under this subsection.''.
(2) Election with respect to new round of zones.--Section
1400Z-2(a)(2)(B) is amended by striking ``December 31, 2026''
and inserting ``December 31, 2033''.
(3) Year of inclusion.--Section 1400Z-2(b)(1)(B) is amended
to read as follows:
``(B)(i) December 31, 2026, in the case of an
amount invested before January 1, 2027, and
``(ii) December 31, 2033, in the case of an amount
invested after December 31, 2026, and before January 1,
2034.''.
(4) Winding down initial zone designations.--Section 1400Z-
1(f) is amended--
(A) by striking ``and ending'' and all that follows
and inserting the following: ``and ending on December
31, 2026.'', and
(B) by striking ``A designation'' and inserting
``Except as provided in subsection (g)(4), a
designation''.
(c) Modification of Opportunity Zone Investment Incentives.--
(1) Consolidated basis increases; rural zone basis
increase.--Section 1400Z-2(b)(2)(B) is amended by adding at the
end the following new clauses:
``(v) Consolidated basis increase for
investments after 2026.--In the case of
investments made after December 31, 2026--
``(I) clauses (iii) and (iv) shall
not apply, and
``(II) for any such investment held
by the taxpayer for at least 5 years,
the basis of such adjustment shall be
increased by an amount equal to 10
percent of the amount of gain deferred
by reason of subsection (a)(1)(A).
``(vi) Special rule for rural opportunity
funds.--Clause (v) shall be applied by
substituting `30 percent' for `10 percent' in
the case of an investment in a qualified rural
opportunity fund.
``(vii) Qualified rural opportunity fund.--
For purposes of clause (vi), a `qualified rural
opportunity fund' means a qualified opportunity
fund that holds at least 90 percent of its
assets in qualified opportunity zone property
which--
``(I) is qualified opportunity zone
business property substantially all of
the use of which, during substantially
all of the fund's holding period for
such property, was in a qualified
opportunity zone comprised entirely of
a rural area, or
``(II) is qualified opportunity
zone stock, or a qualified opportunity
zone partnership interest, in a
qualified opportunity zone business in
which substantially all of the tangible
property owned or leased is qualified
opportunity zone business property
described in subsection (d)(3)(A)(i)
and substantially all the use of which
is in a qualified opportunity zone
comprised entirely of a rural area.
For purposes of the preceding sentence,
property held in the fund shall be measured
under rules similar to the rules of subsection
(d)(1).''.
(2) Limited treatment of ordinary income.--Section 1400Z-
2(a) is amended by adding at the end the following new
paragraph:
``(3) Special rule for ordinary income.--In the case of any
ordinary income of the taxpayer for the taxable year--
``(A) the taxpayer may elect the application of
paragraph (1) with respect to so much of ordinary
income as does not exceed $10,000 (reduced by the
amount of any income with respect to which an election
pursuant to this paragraph has previously been made),
and
``(B) subsection (b)(2)(B) shall not apply to the
investment with respect to such election.''.
(3) Special rule for improvement of existing structures in
rural areas, including for data centers.--Section 1400Z-
2(d)(2)(D)(ii) is amended by inserting ``(50 percent of such
adjusted basis in the case of property in a qualified
opportunity zone comprised entirely of a rural area)'' after
``the adjusted basis of such property''.
(d) Information Reporting on Qualified Opportunity Funds and
Qualified Rural Opportunity Funds.--
(1) Filing requirements for funds and investors.--Subpart A
of part III of subchapter A of chapter 61 is amended by
inserting after section 6039J the following new sections:
``SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND
QUALIFIED RURAL OPPORTUNITY FUNDS.
``(a) In General.--Every qualified opportunity fund shall file an
annual return (at such time and in such manner as the Secretary may
prescribe) containing the information described in subsection (b).
``(b) Information From Qualified Opportunity Funds.--The
information described in this subsection is--
``(1) the name, address, and taxpayer identification number
of the qualified opportunity fund,
``(2) whether the qualified opportunity fund is organized
as a corporation or a partnership,
``(3) the value of the total assets held by the qualified
opportunity fund as of each date described in section 1400Z-
2(d)(1),
``(4) the value of all qualified opportunity zone property
held by the qualified opportunity fund on each such date,
``(5) with respect to each investment held by the qualified
opportunity fund in qualified opportunity zone stock or a
qualified opportunity zone partnership interest--
``(A) the name, address, and taxpayer
identification number of the corporation in which such
stock is held or the partnership in which such interest
is held, as the case may be,
``(B) each North American Industry Classification
System (NAICS) code that applies to the trades or
businesses conducted by such corporation or
partnership,
``(C) the population census tracts in which the
qualified opportunity zone business property of such
corporation or partnership is located,
``(D) the amount of the investment in such stock or
partnership interest as of each date described in
section 1400Z-2(d)(1),
``(E) the value of tangible property held by such
corporation or partnership on each such date which is
owned by such corporation or partnership,
``(F) the value of tangible property held by such
corporation or partnership on each such date which is
leased by such corporation or partnership,
``(G) the approximate number of residential units
(if any) for any real property held by such corporation
or partnership, and
``(H) the approximate average monthly number of
full-time equivalent employees of such corporation or
partnership for the year (within numerical ranges
identified by the Secretary) or such other indication
of the employment impact of such corporation or
partnership as determined appropriate by the Secretary,
``(6) with respect to the items of qualified opportunity
zone business property held by the qualified opportunity fund--
``(A) the North American Industry Classification
System (NAICS) code that applies to the trades or
businesses in which such property is held,
``(B) the population census tract in which the
property is located,
``(C) whether the property is owned or leased,
``(D) the aggregate value of the items of qualified
opportunity zone property held by the qualified
opportunity fund as of each date described in section
1400Z-2(d)(1), and
``(E) in the case of real property, number of
residential units (if any),
``(7) the approximate average monthly number of full-time
equivalent employees for the year of the trades or businesses
of the qualified opportunity fund in which qualified
opportunity zone business property is held (within numerical
ranges identified by the Secretary) or such other indication of
the employment impact of such trades or businesses as
determined appropriate by the Secretary,
``(8) with respect to each person who disposed of an
investment in the qualified opportunity fund during the year--
``(A) the name and taxpayer identification number
of such person,
``(B) the date or dates on which the investment
disposed was acquired, and
``(C) the date or dates on which any such
investment was disposed and the amount of the
investment disposed, and
``(9) such other information as the Secretary may require.
``(c) Statement Required to Be Furnished to Investors.--Every
person required to make a return under subsection (a) shall furnish to
each person whose name is required to be set forth in such return by
reason of subsection (b)(8) a written statement showing--
``(1) the name, address and phone number of the information
contact of the person required to make such return, and
``(2) the information required to be shown on such return
by reason of subsection (b)(8) with respect to the person whose
name is required to be so set forth.
``(d) Definitions.--For purposes of this section--
``(1) In general.--Any term used in this section which is
also used in subchapter Z of chapter 1 shall have the meaning
given such term under such subchapter.
``(2) Full-time equivalent employees.--The term `full-time
equivalent employees' means, with respect to any month, the sum
of--
``(A) the number of full-time employees (as defined
in section 4980H(c)(4)) for the month, plus
``(B) the number of employees determined (under
rules similar to the rules of section 4980H(c)(2)(E))
by dividing the aggregate number of hours of service of
employees who are not full-time employees for the month
by 120.
``(e) Application to Qualified Rural Opportunity Funds.--Every
qualified rural opportunity fund (as defined in section 1400Z-
2(b)(2)(B)(vii)) shall file the annual return required under subsection
(a), and the statements required under subsection (c), applied--
``(1) by substituting `qualified rural opportunity' for
`qualified opportunity' each place it appears,
``(2) by substituting `section 1400Z-2(b)(2)(B)(vii)' for
`section 1400Z-2(d)(1)' each place it appears, and
``(3) by treating any reference (after the application of
paragraph (1)) to qualified rural opportunity zone stock, a
qualified rural opportunity zone partnership interest, a
qualified rural opportunity zone business, or qualified
opportunity zone business property as stock, an interest, a
business, or property, respectively, described in (I) or (II),
as the case may be, of section 1400Z-2(b)(2)(B)(vii).
``SEC. 6039L. INFORMATION REQUIRED FROM QUALIFIED OPPORTUNITY ZONE
BUSINESSES AND QUALIFIED RURAL OPPORTUNITY ZONE
BUSINESSES.
``(a) In General.--Every applicable qualified opportunity zone
business shall furnish to the qualified opportunity fund described in
subsection (b) a written statement in such manner and setting forth
such information as the Secretary may by regulations prescribe for
purposes of enabling such qualified opportunity fund to meet the
requirements of section 6039K(b)(5).
``(b) Applicable Qualified Opportunity Zone Business.--For purposes
of subsection (a), the term `applicable qualified opportunity zone
business' means any qualified opportunity zone business--
``(1) which is a trade or business of a qualified
opportunity fund,
``(2) in which a qualified opportunity fund holds qualified
opportunity zone stock, or
``(3) in which a qualified opportunity fund holds a
qualified opportunity zone partnership interest.
``(c) Other Terms.--Any term used in this section which is also
used in subchapter Z of chapter 1 shall have the meaning given such
term under such subchapter.
``(d) Application to Qualified Rural Opportunity Businesses.--Every
applicable qualified rural opportunity zone business (as defined in
subsection (b) determined after application of the substitutions
described in this sentence) shall furnish the written statement
required under subsection (a), applied--
``(1) by substituting `qualified rural opportunity' for
`qualified opportunity' each place it appears, and
``(2) by treating any reference (after the application of
paragraph (1)) to qualified rural opportunity zone stock, a
qualified rural opportunity zone partnership interest, or a
qualified rural opportunity zone business as stock, an
interest, or a business, respectively, described in (I) or
(II), as the case may be, of section 1400Z-2(b)(2)(B)(vii).''.
(2) Penalties.--
(A) In general.--Part II of subchapter B of chapter
68 is amended by inserting after section 6725 the
following new section:
``SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS
RELATING TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED
RURAL OPPORTUNITY FUNDS.
``(a) In General.--In the case of any person required to file a
return under section 6039K fails to file a complete and correct return
under such section in the time and in the manner prescribed therefor,
such person shall pay a penalty of $500 for each day during which such
failure continues.
``(b) Limitation.--
``(1) In general.--The maximum penalty under this section
on failures with respect to any 1 return shall not exceed
$10,000.
``(2) Large qualified opportunity funds.--In the case of
any failure described in subsection (a) with respect to a fund
the gross assets of which (determined on the last day of the
taxable year) are in excess of $10,000,000, paragraph (1) shall
be applied by substituting `$50,000' for `$10,000'.
``(c) Penalty in Cases of Intentional Disregard.--If a failure
described in subsection (a) is due to intentional disregard, then--
``(1) subsection (a) shall be applied by substituting
`$2,500' for `$500',
``(2) subsection (b)(1) shall be applied by substituting
`$50,000' for `$10,000', and
``(3) subsection (b)(2) shall be applied by substituting
`$250,000' for `$50,000'.
``(d) Inflation Adjustment.--
``(1) In general.--In the case of any failure relating to a
return required to be filed in a calendar year beginning after
2025, each of the dollar amounts in subsections (a), (b), and
(c) shall be increased by an amount equal to such dollar amount
multiplied by the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year determined by
substituting `calendar year 2024' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--
``(A) In general.--If the $500 dollar amount in
subsection (a) and (c)(1) or the $2,500 amount in
subsection (c)(1), after being increased under
paragraph (1), is not a multiple of $10, such dollar
amount shall be rounded to the next lowest multiple of
$10.
``(B) Asset threshold.--If the $10,000,000 dollar
amount in subsection (b)(2), after being increased
under paragraph (1), is not a multiple of $10,000, such
dollar amount shall be rounded to the next lowest
multiple of $10,000.
``(C) Other dollar amounts.--If any dollar amount
in subsection (b) or (c) (other than any amount to
which subparagraph (A) or (B) applies), after being
increased under paragraph (1), is not a multiple of
$1,000, such dollar amount shall be rounded to the next
lowest multiple of $1,000.''.
(B) Information required to be sent to other
taxpayers.--Section 6724(d)(2) is amended--
(i) by striking ``or'' at the end of
subparagraph (KK),
(ii) by striking the period at the end of
the subparagraph (LL) and inserting a comma,
and
(iii) by inserting after subparagraph (LL)
the following new subparagraphs:
``(MM) section 6039K(c) (relating to disposition of
qualified opportunity fund investments), or
``(NN) section 6039L (relating to information
required from certain qualified opportunity zone
businesses and qualified rural opportunity zone
businesses).''.
(3) Electronic filing.--Section 6011(e) is amended by
adding at the end the following new paragraph:
``(8) Qualified opportunity funds and qualified rural
opportunity funds.--Notwithstanding paragraphs (1) and (2), any
return filed by a qualified opportunity fund or qualified rural
opportunity fund shall be filed on magnetic media or other
machine-readable form.''.
(4) Clerical amendments.--
(A) The table of sections for subpart A of part III
of subchapter A of chapter 61 is amended by inserting
after the item relating to section 6039J the following
new items:
``Sec. 6039K. Returns with respect to qualified opportunity funds and
qualified rural opportunity funds.
``Sec. 6039L. Information required from qualified opportunity zone
businesses and qualified rural opportunity
zone businesses.''.''.
(B) The table of sections for part II of subchapter
B of chapter 68 is amended by inserting after the item
relating to section 6725 the following new item:
``Sec. 6726. Failure to comply with information reporting requirements
relating to qualified opportunity funds and
qualified rural opportunity funds.''.
(5) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
(e) Secretary Reporting of Data on Opportunity Zone and Rural
Opportunity Zone Tax Incentives.--
(1) In general.--As soon as practical after the date of the
enactment of this Act, and annually thereafter, the Secretary
of the Treasury, or the Secretary's delegate (referred to in
this section as the ``Secretary''), in consultation with the
Director of the Bureau of the Census and such other agencies as
the Secretary determines appropriate, shall make publicly
available a report on qualified opportunity funds.
(2) Information included.--The report required under
paragraph (1) shall include, to the extent available, the
following information:
(A) The number of qualified opportunity funds.
(B) The aggregate dollar amount of assets held in
qualified opportunity funds.
(C) The aggregate dollar amount of investments made
by qualified opportunity funds in qualified opportunity
fund property, stated separately for each North
American Industry Classification System (NAICS) code.
(D) The percentage of population census tracts
designated as qualified opportunity zones that have
received qualified opportunity fund investments.
(E) For each population census tract designated as
a qualified opportunity zone, the approximate average
monthly number of full-time equivalent employees of the
qualified opportunity zone businesses in such qualified
opportunity zone for the preceding 12-month period
(within numerical ranges identified by the Secretary)
or such other indication of the employment impact of
such qualified opportunity fund businesses as
determined appropriate by the Secretary.
(F) The percentage of the total amount of
investments made by qualified opportunity funds in--
(i) qualified opportunity zone property
which is real property; and
(ii) other qualified opportunity zone
property.
(G) For each population census tract, the aggregate
approximate number of residential units resulting from
investments made by qualified opportunity funds in real
property.
(H) The aggregate dollar amount of investments made
by qualified opportunity funds in each population
census tract.
(3) Additional information.--
(A) In general.--Beginning with the report
submitted under paragraph (1) for the 6th year after
the date of the enactment of this Act, the Secretary
shall include in such report the impacts and outcomes
of a designation of a population census tract as a
qualified opportunity zone as measured by economic
indicators, such as job creation, poverty reduction,
new business starts, and other metrics as determined by
the Secretary.
(B) Semi-decennial information.--
(i) In general.--In the case of any report
submitted under paragraph (1) in the 6th year
or the 11th year after the date of the
enactment of this Act, the Secretary shall
include the following information:
(I) For population census tracts
designated as a qualified opportunity
zone, a comparison (based on aggregate
information) of the factors listed in
clause (iii) between the 5-year period
ending on the date of the enactment of
Public Law 115-97 and the most recent
5-year period for which data is
available.
(II) For population census tracts
designated as a qualified opportunity
zone, a comparison (based on aggregate
information) of the factors listed in
clause (iii) for the most recent 5-year
period for which data is available
between such population census tracts
and a similar population census tracts
that were not designated as a qualified
opportunity zone.
(ii) Control groups.--For purposes of
clause (i), the Secretary may combine
population census tracts into such groups as
the Secretary determines appropriate for
purposes of making comparisons.
(iii) Factors listed.--The factors listed
in this clause are the following:
(I) The unemployment rate.
(II) The number of persons working
in the population census tract,
including the percentage of such
persons who were not residents in the
population census tract in the
preceding year.
(III) Individual, family, and
household poverty rates.
(IV) Median family income of
residents of the population census
tract.
(V) Demographic information on
residents of the population census
tract, including age, income,
education, race, and employment.
(VI) The average percentage of
income of residents of the population
census tract spent on rent annually.
(VII) The number of residences in
the population census tract.
(VIII) The rate of home ownership
in the population census tract.
(IX) The average value of
residential property in the population
census tract.
(X) The number of affordable
housing units in the population census
tract.
(XI) The number and percentage of
residents in the population census
tract that were not employed for the
preceding year.
(XII) The number of new business
starts in the population census tract.
(XIII) The distribution of
employees in the population census
tract by North American Industry
Classification System (NAICS) code.
(4) Protection of identifiable return information.--In
making reports required under this subsection, the Secretary--
(A) shall establish appropriate procedures to
ensure that any amounts reported do not disclose
taxpayer return information that can be associated with
any particular taxpayer or competitive or proprietary
information, and
(B) if necessary to protect taxpayer return
information, may combine information required with
respect to individual population census tracts into
larger geographic areas.
(5) Definitions.--Any term used in this subsection which is
also used in subchapter Z of chapter 1 of the Internal Revenue
Code of 1986 shall have the meaning given such term under such
subchapter.
(6) Reports on qualified rural opportunity funds.--The
Secretary shall make publicly available, with respect to
qualified rural opportunity funds, separate reports as required
under this subsection, applied--
(A) by substituting ``qualified rural opportunity''
for ``qualified opportunity'' each place it appears,
(B) by substituting a reference to this Act for
``Public Law 115-97'', and
(C) by treating any reference (after the
application of subparagraph (A)) to qualified rural
opportunity zone stock, qualified rural opportunity
zone partnership interest, qualified rural opportunity
zone business, or qualified opportunity zone business
property as stock, interest, business, or property,
respectively, described in (I) or (II), as the case may
be, of section 1400Z-2(b)(2)(B)(vii) of the Internal
Revenue Code of 1986.
SEC. 111103. INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF CERTAIN
DEPRECIABLE BUSINESS ASSETS.
(a) In General.--Section 179(b) is amended--
(1) in paragraph (1), by striking ``$1,000,000'' and
inserting ``$2,500,000'' , and
(2) in paragraph (2), by striking ``$2,500,000'' and
inserting ``$4,000,000''.
(b) Conforming Amendments.--Section 179(b)(6)(A) is amended--
(1) by inserting ``(2025 in the case of the dollar amounts
in paragraphs (1) and (2))'' after ``In the case of any taxable
year beginning after 2018'', and
(2) in clause (ii), by striking ``determined by
substituting `calendar year 2017' for `calendar year 2016' in
subparagraph (A)(ii) thereof.'' and inserting ``determined by
substituting in subparagraph (A)(ii) thereof--
``(I) in the case of amounts in
paragraphs (1) and (2), `calendar year
2024' for `calendar year 2016', and
``(II) in the case of the amount in
paragraph (5)(A), `calendar year 2017'
for `calendar year 2016'.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service in taxable years beginning after
December 31, 2024.
SEC. 111104. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY
NETWORK TRANSACTIONS.
(a) Reinstatement of Exception for De Minimis Payments as in Effect
Prior to Enactment of American Rescue Plan Act of 2021.--
(1) In general.--Section 6050W(e) is amended to read as
follows:
``(e) Exception for De Minimis Payments by Third Party Settlement
Organizations.--A third party settlement organization shall be required
to report any information under subsection (a) with respect to third
party network transactions of any participating payee only if--
``(1) the amount which would otherwise be reported under
subsection (a)(2) with respect to such transactions exceeds
$20,000, and
``(2) the aggregate number of such transactions exceeds
200.''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in section 9674 of the
American Rescue Plan Act.
(b) Application of De Minimis Rule for Third Party Network
Transactions to Backup Withholding.--
(1) In general.--Section 3406(b) is amended by adding at
the end the following new paragraph:
``(8) Other reportable payments include payments in
settlement of third party network transactions only where
aggregate transactions exceed reporting threshold for the
calendar year.--
``(A) In general.--Any payment in settlement of a
third party network transaction required to be shown on
a return required under section 6050W which is made
during any calendar year shall be treated as a
reportable payment only if--
``(i) the aggregate number of transactions
with respect to the participating payee during
such calendar year exceeds the number of
transactions specified in section 6050W(e)(2),
and
``(ii) the aggregate amount of transactions
with respect to the participating payee during
such calendar year exceeds the dollar amount
specified in section 6050W(e)(1) at the time of
such payment.
``(B) Exception if third party network transactions
made in prior year were reportable.--Subparagraph (A)
shall not apply with respect to payments to any
participating payee during any calendar year if one or
more payments in settlement of third party network
transactions made by the payor to the participating
payee during the preceding calendar year were
reportable payments.''.
(2) Effective date.--The amendment made by this subsection
shall apply to calendar years beginning after December 31,
2024.
SEC. 111105. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING
WITH RESPECT TO CERTAIN PAYEES.
(a) In General.--Section 6041(a) is amended by striking ``$600''
and inserting ``$2,000''.
(b) Inflation Adjustment.--Section 6041 is amended by adding at the
end the following new subsection:
``(h) Inflation Adjustment.--In the case of any calendar year after
2026, the dollar amount in subsection (a) shall be increased by an
amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year, determined by
substituting `calendar year 2025' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
If any increase under the preceding sentence is not a multiple of $100,
such increase shall be rounded to the nearest multiple of $100.''.
(c) Application to Reporting on Remuneration for Services.--Section
6041A(a)(2) is amended by striking ``is $600 or more'' and inserting
``equals or exceeds the dollar amount in effect for such calendar year
under section 6041(a)''.
(d) Application to Backup Withholding.--Section 3406(b)(6) is
amended--
(1) by striking ``$600'' in subparagraph (A) and inserting
``the dollar amount in effect for such calendar year under
section 6041(a)'', and
(2) by striking ``only where aggregate for calendar year is
$600 or more'' in the heading and inserting ``only if in excess
of threshold''.
(e) Conforming Amendments.--
(1) The heading of section 6041(a) is amended by striking
``of $600 or More'' and inserting ``Exceeding Threshold''.
(2) Section 6041(a) is amended by striking ``taxable year''
and inserting ``calendar year''.
(f) Effective Date.--The amendments made by this section shall
apply with respect to payments made after December 31, 2025.
SEC. 111106. REPEAL OF EXCISE TAX ON INDOOR TANNING SERVICES.
(a) In General.--Subtitle D is amended by striking chapter 49 and
by striking the item relating to such chapter in the table of chapters
of such subtitle.
(b) Effective Date.--The amendments made by this section shall
apply to services performed after the date of the enactment of this
Act.
SEC. 111107. EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL OR
AGRICULTURAL REAL PROPERTY.
(a) In General.--Part III of subchapter B of chapter 1 is amended
by inserting after section 139I the following new section:
``SEC. 139J. INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL
PROPERTY.
``(a) In General.--Gross income shall not include 25 percent of the
interest received by a qualified lender on any qualified real estate
loan.
``(b) Qualified Lender.--For purposes of this section, the term
`qualified lender' means--
``(1) any bank or savings association the deposits of which
are insured under the Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.),
``(2) any State- or federally-regulated insurance company,
``(3) any entity wholly owned, directly or indirectly, by a
company that is treated as a bank holding company for purposes
of section 8 of the International Banking Act of 1978 (12
U.S.C. 3106) if--
``(A) such entity is organized, incorporated, or
established under the laws of the United States or any
State of the United States, and
``(B) the principal place of business of such
entity is in the United States (including any territory
of the United States),
``(4) any entity wholly owned, directly or indirectly, by a
company that is considered an insurance holding company under
the laws of any State if such entity satisfies the requirements
described in subparagraphs (A) and (B) of paragraph (3), and
``(5) with respect to interest received on a qualified real
estate loan secured by real estate described in subsection
(c)(3)(A), any federally chartered instrumentality of the
United States established under section 8.1(a) of the Farm
Credit Act of 1971 (12 U.S.C. 2279aa-1(a)).
``(c) Qualified Real Estate Loan.--For purposes of this section--
``(1) In general.--The term `qualified real estate loan'
means any loan--
``(A) secured by--
``(i) rural or agricultural real estate, or
``(ii) a leasehold mortgage (with a status
as a lien) on rural or agricultural real
estate,
``(B) made to a person other than a specified
foreign entity (as defined in section 7701(a)(51)), and
``(C) made after the date of the enactment of this
section and before January 1, 2029.
For purposes of the preceding sentence, the determination of
whether property securing such loan is rural or agricultural
real estate shall be made as of the time the interest income on
such loan is accrued.
``(2) Refinancings.--For purposes of subparagraphs (A) and
(C) of paragraph (1), a loan shall not be treated as made after
the date of the enactment of this section to the extent that
the proceeds of such loan are used to refinance a loan which
was made on or before the date of the enactment of this section
(or, in the case of any series of refinancings, the original
loan was made on or before such date).
``(3) Rural or agricultural real estate.--The term `rural
or agricultural real estate' means--
``(A) any real property which is substantially used
for the production of one or more agricultural
products,
``(B) any real property which is substantially used
in the trade or business of fishing or seafood
processing, and
``(C) any aquaculture facility.
Such term shall not include any property which is not located
in a State or a possession of the United States.
``(4) Aquaculture facility.--The term `aquaculture
facility' means any land, structure, or other appurtenance that
is used for aquaculture (including any hatchery, rearing pond,
raceway, pen, or incubator).
``(d) Coordination With Section 265.--Qualified real estate loans
shall be treated as obligations described in section 265(a)(2) the
interest on which is wholly exempt from the taxes imposed by this
subtitle.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 is amended by inserting after the item
relating to section 139I the following new item:
``Sec. 139J. Interest on loans secured by rural or agricultural real
property.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 111108. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING
PRODUCTIONS.
(a) Election To Treat Costs as Expenses.--Section 181(a)(1) is
amended by striking ``qualified film or television production, and any
qualified live theatrical production,'' and inserting ``qualified film
or television production, any qualified live theatrical production, and
any qualified sound recording production''.
(b) Dollar Limitation.--Section 181(a)(2) is amended by adding at
the end the following new subparagraph:
``(C) Qualified sound recording production.--
Paragraph (1) shall not apply to so much of the
aggregate cost of any qualified sound recording
production, or to so much of the aggregate, cumulative
cost of all such qualified sound recording productions
in the taxable year, as exceeds $150,000.''.
(c) No Other Deduction or Amortization Deduction Allowable.--
Section 181(b) is amended by striking ``qualified film or television
production or any qualified live theatrical production'' and inserting
``qualified film or television production, any qualified live
theatrical production, or any qualified sound recording production''.
(d) Election.--Section 181(c)(1) is amended by striking ``qualified
film or television production or any qualified live theatrical
production'' and inserting ``qualified film or television production,
any qualified live theatrical production, or any qualified sound
recording production''.
(e) Qualified Sound Recording Production Defined.--Section 181 is
amended by redesignating subsections (f) and (g) as subsections (g) and
(h), respectively, and by inserting after subsection (e) the following
new subsection:
``(f) Qualified Sound Recording Production.--For purposes of this
section, the term `qualified sound recording production' means a sound
recording (as defined in section 101 of title 17, United States Code)
produced and recorded in the United States.''.
(f) Application of Termination.--Section 181(g) is amended by
striking ``qualified film and television productions or qualified live
theatrical productions'' and inserting ``qualified film and television
productions, qualified live theatrical productions, and qualified sound
recording productions''.
(g) Bonus Depreciation.--
(1) Qualified sound recording production as qualified
property.--Section 168(k)(2)(A)(i), as amended by the preceding
provisions of this Act, is amended--
(A) by striking ``or'' at the end of subclause
(IV), by striking ``and'' and inserting ``or'' at the
end of subclause (V), and by inserting after subclause
(V) the following:
``(VI) which is a qualified sound
recording production (as defined in
subsection (f) of section 181) which is
placed in service before January 1,
2029, for which a deduction would have
been allowable under section 181
without regard to subsections (a)(2)
and (h) of such section or this
subsection, and'', and
(B) in subclauses (IV) and (V) (as so amended) by
striking ``without regard to subsections (a)(2) and
(g)'' both places it appears and inserting ``without
regard to subsections (a)(2) and (h)''.
(2) Production placed in service.--Section 168(k)(2)(H) is
amended by striking ``and'' at the end of clause (i), by
striking the period at the end of clause (ii) and inserting ``,
and'', and by adding after clause (ii) the following:
``(iii) a qualified sound recording
production shall be considered to be placed in
service at the time of initial release or
broadcast.''.
(h) Conforming Amendments.--
(1) The heading for section 181 is amended to read as
follows: ``treatment of certain qualified productions.''.
(2) The table of sections for part VI of subchapter B of
chapter 1 is amended by striking the item relating to section
181 and inserting the following new item:
``Sec. 181. Treatment of certain qualified productions.''.
(i) Effective Date.--The amendments made by this section shall
apply to productions commencing in taxable years ending after the date
of the enactment of this Act.
SEC. 111109. MODIFICATIONS TO LOW-INCOME HOUSING CREDIT.
(a) State Housing Credit Ceiling Increase for Low-income Housing
Credit.--
(1) In general.--Section 42(h)(3)(I) is amended--
(A) by striking ``and 2021,'' and inserting ``2021,
2026, 2027, 2028, and 2029,'', and
(B) by striking ``2018, 2019, 2020, and 2021'' in
the heading and inserting ``certain calendar years''.
(2) Effective date.--The amendments made by this subsection
shall apply to calendar years after 2025.
(b) Tax-exempt Bond Financing Requirement.--
(1) In general.--Section 42(h)(4) is amended by striking
subparagraph (B) and inserting the following:
``(B) Special rule where minimum percent of
buildings is financed with tax-exempt bonds subject to
volume cap.--For purposes of subparagraph (A),
paragraph (1) shall not apply to any portion of the
credit allowable under subsection (a) with respect to a
building if--
``(i) 50 percent or more of the aggregate
basis of such building and the land on which
the building is located is financed by 1 or
more obligations described in subparagraph (A),
or
``(ii)(I) 25 percent or more of the
aggregate basis of such building and the land
on which the building is located is financed by
1 or more qualified obligations, and
``(II) 1 or more of such qualified
obligations--
``(aa) are part of an issue the
issue date of which is after December
31, 2025, and
``(bb) provide the financing for
not less than 5 percent of the
aggregate basis of such building and
the land on which the building is
located.
``(C) Qualified obligation.--For purposes of
subparagraph (B)(ii), the term `qualified obligation'
means an obligation which is described in subparagraph
(A) and which is part of an issue the issue date of
which is before January 1, 2030.''.
(2) Effective date.--
(A) In general.--The amendment made by this
subsection shall apply to buildings placed in service
in taxable years beginning after December 31, 2025.
(B) Rehabilitation expenditures treated as separate
new building.--In the case of any building with respect
to which any expenditures are treated as a separate new
building under section 42(e) of the Internal Revenue
Code of 1986, for purposes of subparagraph (A), both
the existing building and the separate new building
shall be treated as having been placed in service on
the date such expenditures are treated as placed in
service under section 42(e)(4) of such Code.
(c) Temporary Inclusion of Indian Areas and Rural Areas as
Difficult Development Areas for Purposes of Certain Buildings.--
(1) In general.--Section 42(d)(5)(B)(iii)(I) is amended by
inserting before the period the following: ``, and, in the case
of buildings placed in service after December 31, 2025 and
before January 1, 2030, any Indian area or rural area''.
(2) Indian area; rural area.--Section 42(d)(5)(B)(iii) is
amended by redesignating subclause (II) as subclause (IV) and
by inserting after subclause (I) the following new subclauses:
``(II) Indian area.--For purposes
of subclause (I), the term `Indian
area' means any Indian area (as defined
in section 4(11) of the Native American
Housing Assistance and Self
Determination Act of 1996 (25 U.S.C.
4103(11))) and any housing area (as
defined in section 801(5) of such Act
(25 U.S.C. 4221(5))).
``(III) Rural area.--For purposes
of subclause (I), the term `rural area'
means any non-metropolitan area, or any
rural area as defined by section 520 of
the Housing Act of 1949, which is
identified by the qualified allocation
plan under subsection (m)(1)(B).''.
(3) Eligible buildings.--Section 42(d)(5)(B)(iii), as
amended by paragraph (2), is further amended by adding at the
end the following new subclause:
``(V) Special rule for buildings in
indian areas.--In the case of an area
which is a difficult development area
solely because it is an Indian area, a
building shall not be treated as
located in such area unless such
building is assisted or financed under
the Native American Housing Assistance
and Self Determination Act of 1996 (25
U.S.C. 4101 et seq.) or the project
sponsor is an Indian tribe (as defined
in section 45A(c)(6)), a tribally
designated housing entity (as defined
in section 4(22) of such Act (25 U.S.C.
4103(22))), or wholly owned or
controlled by such an Indian tribe or
tribally designated housing entity.''.
(4) Effective date.--The amendments made by this subsection
shall apply to buildings placed in service after December 31,
2025.
SEC. 111110. INCREASED GROSS RECEIPTS THRESHOLD FOR SMALL MANUFACTURING
BUSINESSES.
(a) In General.--Section 448(c) is amended by redesignating
paragraph (4) as paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) Gross receipts test for manufacturing taxpayers.--In
the case of a manufacturing taxpayer, paragraph (1) shall be
applied by substituting `$80,000,000' for `$25,000,000'.''.
(b) Inflation Adjustment.--Section 448(c)(5) (as so redesignated)
is amended by striking ``the dollar amount in paragraph (1) shall be
increased'' and inserting ``the dollar amounts in paragraphs (1) and
(4) shall each be increased''.
(c) Manufacturing Taxpayer Defined.--Section 448(d) is amended by
redesignating paragraph (8) as paragraph (9) and by inserting after
paragraph (7) the following new paragraph:
``(8) Manufacturing taxpayer.--
``(A) In general.--The term `manufacturing
taxpayer' means a corporation or partnership
substantially all the gross receipts of which during
the 3-taxable-year period described in subsection
(c)(1) are derived from the lease, rental, license,
sale, exchange, or other disposition of qualified
products.
``(B) Qualified product.--For purposes of
subparagraph (A), the term `qualified product' means a
product that is both--
``(i) tangible personal property which is
not a food or beverage prepared in the same
building as a retail establishment in which
substantially similar property is sold to the
public, and
``(ii) produced or manufactured by the
taxpayer in a manner which results in a
substantial transformation (within the meaning
of section 168(n)(2)(D)) of the property
comprising the product.
``(C) Aggregation rule.--Solely for purposes of
determining whether a taxpayer is a manufacturing
taxpayer under subparagraph (A)--
``(i) gross receipts shall be determined
under the rules of paragraphs (2) and (3) of
subsection (c), and
``(ii) for purposes of subsection (c)(2),
in applying section 52(b), the term `trade or
business' shall include any activity treated as
a trade or business under paragraph (5) or (6)
of section 469(c) (determined without regard to
the phrase `To the extent provided in
regulations' in such paragraph (6)).''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 111111. GLOBAL INTANGIBLE LOW-TAXED INCOME DETERMINED WITHOUT
REGARD TO CERTAIN INCOME DERIVED FROM SERVICES PERFORMED
IN THE VIRGIN ISLANDS.
(a) In General.--Section 951A(c)(2)(A)(i) is amended by striking
``and'' at the end of subclause (IV), by striking the period at the end
of subclause (V) and inserting ``, and'', and by adding at the end the
following new subclause:
``(VI) in the case of any specified
United States shareholder, any
qualified Virgin Islands services
income.''.
(b) Definitions and Special Rules.--Section 951A(c)(2) is amended
by adding at the end the following new subparagraph:
``(C) Provisions related to qualified virgin
islands services income.--For purposes of subparagraph
(A)(i)(VI)--
``(i) Qualified virgin islands services
income.--The term `qualified Virgin Islands
services income' means any gross income which
satisfies all of the following requirements:
``(I) Such gross income is
compensation for labor or personal
services performed in the Virgin
Islands by a corporation formed under
the laws of the Virgin Islands.
``(II) Such gross income is
attributable to services performed from
within the Virgin Islands by
individuals for the benefit of such
corporation.
``(III) Such gross income is
effectively connected with the conduct
of a trade or business within the
Virgin Islands.
``(ii) Specified united states
shareholder.--The term `specified United States
shareholder' means any United States
shareholder which is--
``(I) an individual, trust, or
estate, or
``(II) a closely held C corporation
(as defined in section 469(j)(1)) if
such corporation acquired its direct or
indirect equity interest in the foreign
corporation which derived the qualified
Virgin Islands services income before
December 31, 2023.
``(iii) Regulations.--The Secretary shall
prescribe such regulations or other guidance as
may be necessary or appropriate to carry out
this subparagraph and subparagraph (A)(i)(VI),
including regulations or other guidance to
prevent the abuse of such subparagraphs.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after the date
of the enactment of this Act, and to taxable years of United States
shareholders with or within which such taxable years of foreign
corporations end.
SEC. 111112. EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION
CREDIT.
(a) Prohibition on Foreign Feedstocks.--
(1) In general.--Section 45Z(f)(1)(A) is amended--
(A) in clause (i)(II)(bb), by striking ``and'' at
the end,
(B) in clause (ii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(iii) such fuel is exclusively derived
from a feedstock which was produced or grown in
the United States, Mexico, or Canada.''.
(2) Effective date.--The amendments made by this subsection
shall apply to transportation fuel sold after December 31,
2025.
(b) Determination of Emissions Rate.--
(1) In general.--Section 45Z(b)(1)(B) is amended by adding
at the end the following new clauses:
``(iv) Exclusion of indirect land use
changes.--Notwithstanding clauses (ii) and
(iii), the lifecycle greenhouse gas emissions
shall be adjusted as necessary to exclude any
emissions attributed to indirect land use
change. Any such adjustment shall be based on
regulations or methodologies determined by the
Secretary in consultation with the
Administrator of the Environmental Protection
Agency and the Secretary of Agriculture.
``(v) Animal manures.--For purposes of the
table described in clause (i), with respect to
any transportation fuels which are derived from
animal manure, a distinct emissions rate shall
be provided with respect to each of the
specific feedstocks used to such produce such
fuel, which shall include dairy manure, swine
manure, poultry manure, and such other sources
as are determined appropriate by the
Secretary.''.
(2) Conforming amendment.--Section 45Z(b)(1)(B)(i) is
amended by striking ``clauses (ii) and (iii)'' and inserting
``clauses (ii), (iii), (iv), and (v)''.
(3) Effective date.--The amendments made by this subsection
shall apply to emissions rates published for taxable years
beginning after December 31, 2025.
(c) Extension of Clean Fuel Production Credit.--Section 45Z(g) is
amended by striking ``December 31, 2027'' and inserting ``December 31,
2031''.
(d) Restrictions Relating to Prohibited Foreign Entities.--
(1) In general.--Section 45Z(f) is amended by adding at the
end the following new paragraph:
``(8) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit determined under
subsection (a) shall be allowed under section 38 for
any taxable year beginning after the date of enactment
of this paragraph if the taxpayer is a specified
foreign entity (as defined in section 7701(a)(51)(B)).
``(B) Other prohibited foreign entities.--No credit
determined under subsection (a) shall be allowed under
section 38 for any taxable year beginning after the
date which is 2 years after the date of enactment of
this paragraph if the taxpayer is a foreign-influenced
entity (as defined in section 7701(a)(51)(D)).''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after the date of
enactment of this Act.
PART 3--INVESTING IN THE HEALTH OF RURAL AMERICA AND MAIN STREET
SEC. 111201. EXPANDING THE DEFINITION OF RURAL EMERGENCY HOSPITAL UNDER
THE MEDICARE PROGRAM.
(a) In General.--Section 1861(kkk) of the Social Security Act (42
U.S.C. 1395x(kkk)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking ``the detailed
transition plan'' and all that follows through ``such
paragraph'' and inserting ``the detailed transition
plan described in clause (i)(I) of such paragraph or
the assessment of health care needs described in clause
(i)(II) of such paragraph, as applicable,'';
(B) in subparagraph (D)(vi), by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(E) in the case of a facility described in paragraph
(3)(B)--
``(i) submits an application under section 1866(j)
to enroll under this title as a rural emergency
hospital--
``(I) in the case that such facility is
located in a State that, as of January 1, 2027,
provides for the licensing of rural emergency
hospitals under State or applicable local law
(as described in paragraph (5)(A)), not later
than December 31, 2027; and
``(II) in the case that such facility is
located in a State that, as of January 1, 2027,
does not provide for the licensing of such
rural emergency hospitals under State or
applicable local law (as so described), not
later than the date that is 1 year after the
date on which such State begins to provide for
such licensing; and
``(ii) in the case that such facility is located
less than 35 miles away from the nearest hospital,
critical access hospital, or rural emergency hospital
as of the date on which such facility submits an
application under section 1866(j) to enroll under this
title as a rural emergency hospital, beginning not
later than 1 year after the end of the first full cost
reporting period for which the facility is so enrolled,
demonstrates annually, in a form and manner determined
appropriate by the Secretary, that more than 50 percent
of the services furnished for the most recent cost
reporting period (as determined by the Secretary) were
services described in paragraph (1)(A)(i), as
determined based on discharges of individuals entitled
to benefits under part A or enrolled under part B
during such cost reporting period.'';
(2) in paragraph (3)--
(A) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively, and adjusting the
margins accordingly;
(B) by striking ``A facility'' and inserting:
``(A) In general.--A facility''; and
(C) by adding at the end the following new
subparagraph:
``(B) Additional facilities.--Beginning January 1, 2027, a
facility described in this paragraph shall also include a
facility that--
``(i) at any time during the period beginning
January 1, 2014, and ending December 26, 2020--
``(I) was a critical access hospital; or
``(II) was a subsection (d) hospital (as
defined in section 1886(d)(1)(B)) with not more
than 50 beds located in a county (or equivalent
unit of local government) in a rural area (as
defined in section 1886(d)(2)(D)); and
``(ii) as of December 27, 2020, was not enrolled in
the program under this title under section 1866(j).'';
and
(3) in paragraph (4)--
(A) in subparagraph (A)(i)--
(i) in subclause (IV), by striking the
period at the end and inserting ``; and'';
(ii) by redesignating subclauses (I)
through (IV) as items (aa) through (dd),
respectively, and adjusting the margins
accordingly;
(iii) by striking ``including a detailed''
and inserting ``including--
``(I) except in the case of a facility
described in paragraph (3)(B), a detailed'';
and
(iv) by adding at the end the following new
subclause:
``(II) in the case of a facility described
in paragraph (3)(B), an assessment of the
health care needs of the county (or equivalent
unit of local government) in which such
facility is located, which shall include--
``(aa) a description of the
services furnished by the facility
during the period that such facility
was enrolled in the program under this
title under section 1866(j);
``(bb) a description of the reasons
that the facility, as of December 27,
2020, was no longer so enrolled;
``(cc) the population of such
county (or equivalent unit);
``(dd) the percentage of such
population who are individuals entitled
to benefits under part A or enrolled
under part B; and
``(ee) a description of any lack of
access to health care services
experienced by such individuals, and an
explanation of how reopening the
facility as a rural emergency hospital
would mitigate such lack of access.''.
(b) Amendments to Payment Rules.--Section 1834(x) of the Social
Security Act (42 U.S.C. 1395m(x)) is amended--
(1) in paragraph (1), by inserting ``, except that, in the
case of a facility described in section 1861(kkk)(3)(B) that,
as of the date on which such facility submits an application
under section 1866(j) to enroll under this title as a rural
emergency hospital, is located less than 35 miles away from the
nearest hospital, critical access hospital, or rural emergency
hospital, such increase shall not apply'' before the period at
the end; and
(2) in paragraph (2)(A), by inserting ``(other than a
facility described in section 1861(kkk)(3)(B) that, as of the
date on which such facility submits an application under
section 1866(j) to enroll under this title as a rural emergency
hospital, is located less than 10 miles away from the nearest
hospital, critical access hospital, or rural emergency
hospital)'' after ``rural emergency hospital''.
Subtitle C--Make America Win Again
PART 1--WORKING FAMILIES OVER ELITES
SEC. 112001. TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDIT.
(a) In General.--Section 25E(g) is amended by striking ``December
31, 2032'' and inserting ``December 31, 2025''.
(b) Effective Date.--The amendment made by this section shall apply
to vehicles acquired after December 31, 2025.
SEC. 112002. TERMINATION OF CLEAN VEHICLE CREDIT.
(a) In General.--Section 30D is amended--
(1) by redesignating subsection (h) as subsection (i), and
(2) in subsection (i), as so redesignated, by striking
``December 31, 2032'' and inserting ``December 31, 2026''.
(b) Special Rule for Taxable Year 2026.--Section 30D is amended by
inserting after subsection (g) the following new subsection:
``(h) Special Rule for Taxable Year 2026.--
``(1) In general.--With respect to any vehicle placed in
service after December 31, 2025, such vehicle shall not be
treated as a new clean vehicle for purposes of this section if,
during the period beginning on December 31, 2009, and ending on
December 31, 2025, the number of covered vehicles manufactured
by the manufacturer of such vehicle which are sold for use in
the United States is greater than 200,000.
``(2) Covered vehicles.--For purposes of this subsection,
the term `covered vehicles' means--
``(A) with respect to vehicles placed in service
before January 1, 2023, new qualified plug-in electric
drive motor vehicles (as defined in subsection (d)(1),
as in effect on December 31, 2022), and
``(B) new clean vehicles.
``(3) Controlled groups.--Rules similar to the rules of
section 30B(f)(4) shall apply for purposes of this
subsection.''.
(c) Conforming Amendments.--Section 30D(e) is amended--
(1) in paragraph (1)(B)--
(A) in clause (iii), by inserting ``and'' after the
comma at the end,
(B) in clause (iv), by striking ``, and'' and
inserting a period, and
(C) by striking clause (v), and
(2) in paragraph (2)(B)--
(A) in clause (ii), by inserting ``and'' after the
comma at the end,
(B) in clause (iii), by striking the comma at the
end and inserting a period, and
(C) by striking clauses (iv) through (vi).
(d) Effective Date.--The amendments made by this section shall
apply to vehicles placed in service after December 31, 2025.
SEC. 112003. TERMINATION OF QUALIFIED COMMERCIAL CLEAN VEHICLES CREDIT.
(a) In General.--Section 45W(g) is amended to read as follows:
``(g) Termination.--
``(1) In general.--No credit shall be determined under this
section with respect to any vehicle acquired after December 31,
2025.
``(2) Exception for binding contracts.--Paragraph (1) shall
not apply with respect to vehicles placed in service before
January 1, 2033, and acquired pursuant to a written binding
contract entered into before May 12, 2025.''.
(b) Effective Date.--The amendment made by this section shall apply
to vehicles acquired after December 31, 2025.
SEC. 112004. TERMINATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY
CREDIT.
(a) In General.--Section 30C(i) is amended by striking ``December
31, 2032'' and inserting ``December 31, 2025''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2025.
SEC. 112005. TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.
(a) In General.--Section 25C(i) is amended to read as follows:
``(i) Termination.--This section shall not apply with respect to
any property placed in service after December 31, 2025.''.
(b) Conforming Amendments.--
(1) Section 25C(d)(2)(C) is amended to read as follows:
``(C) Any oil furnace or hot water boiler which is
placed in service before January 1, 2026, and--
``(i) meets or exceeds 2021 Energy Star
efficiency criteria, and
``(ii) is rated by the manufacturer for use
with fuel blends at least 20 percent of the
volume of which consists of an eligible
fuel.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2025.
SEC. 112006. TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT.
(a) In General.--Section 25D(h) is amended by striking ``December
31, 2034'' and inserting ``December 31, 2025''.
(b) Conforming Amendments.--Section 25D(g) is amended--
(1) in paragraph (2), by inserting ``and'' after the comma
at the end,
(2) in paragraph (3), by striking ``January 1, 2033, 30
percent,'' and inserting ``January 1, 2026, 30 percent.'', and
(3) by striking paragraphs (4) and (5).
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2025.
SEC. 112007. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT.
(a) In General.--Section 45L(h) is amended to read as follows:
``(h) Termination.--This section shall not apply to any qualified
new energy efficient home acquired after December 31, 2025 (December
31, 2026, in the case of any home for which construction began before
May 12, 2025).''.
(b) Effective Date.--The amendment made by this section shall apply
to homes acquired after December 31, 2025.
SEC. 112008. PHASE-OUT AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION
CREDIT.
(a) Phase-out.--Section 45Y(d) is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``the construction of which begins during a
calendar year described in paragraph (2)'' and inserting
``which is placed in service after December 31, 2028,'', and
(2) by striking paragraphs (2) and (3) and inserting the
following new paragraph:
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility placed in service during
calendar year 2029, 80 percent,
``(B) for a facility placed in service during
calendar year 2030, 60 percent,
``(C) for a facility placed in service during
calendar year 2031, 40 percent, and
``(D) for a facility placed in service after
December 31, 2031, 0 percent.''.
(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 the date that is one year after the date of the
enactment of this subparagraph if the construction of
such facility includes any material assistance from a
prohibited foreign entity (as defined in section
7701(a)(52)).'', and
(2) in subsection (g), by adding at the end the following
new paragraph:
``(13) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit determined under
subsection (a) shall be allowed under section 38 for
any taxable year beginning after the date of enactment
of this paragraph if the taxpayer is a specified
foreign entity (as defined in section 7701(a)(51)(B)).
``(B) Other prohibited foreign entities.--No credit
determined under subsection (a) shall be allowed under
section 38 for any taxable year beginning after the
date which is 2 years after the date of enactment of
this paragraph if--
``(i) the taxpayer is a foreign-influenced
entity (as defined in section 7701(a)(51)(D)),
or
``(ii) during such taxable year, the
taxpayer--
``(I) makes a payment of dividends,
interest, compensation for services,
rentals or royalties, guarantees or any
other fixed, determinable, annual, or
periodic amount to a prohibited foreign
entity (as defined in section
7701(a)(51)) in an amount which is
equal to or greater than 5 percent of
the total of such payments made by such
taxpayer during such taxable year which
are related to the production of
electricity, or
``(II) makes payments described in
subclause (I) to more than 1 prohibited
foreign entity (as so defined) in an
amount which, in the aggregate, is
equal to or greater than 15 percent of
the total of such payments made by such
taxpayer during such taxable year which
are related to the production of
electricity.''.
(c) Repeal of Transferability.--Section 6418(f)(1) is amended--
(1) in subparagraph (A), by striking clause (vii), and
(2) in subparagraph (B), by striking ``(v), or (vii)'' and
inserting ``or (v)''.
(d) Definitions Relating to Prohibited Foreign Entities.--Section
7701(a) is amended by adding at the end the following new paragraphs:
``(51) Prohibited foreign entity.--
``(A) In general.--The term `prohibited foreign
entity' means a specified foreign entity or a foreign-
influenced entity.
``(B) Specified foreign entity.--For purposes of
subparagraph (A), the term `specified foreign entity'
means--
``(i) a foreign entity of concern described
in subparagraph (A), (B), (D), or (E) of
section 9901(8) of the William M. (Mac)
Thornberry National Defense Authorization Act
for Fiscal Year 2021 (Public Law 116-283; 15
U.S.C. 4651),
``(ii) an entity identified as a Chinese
military company operating in the United States
in accordance with section 1260H of the William
M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 113 note),
``(iii) an entity included on a list
required by clause (i), (ii), (iv), or (v) of
section 2(d)(2)(B) of Public Law 117-78 (135
Stat. 1527),
``(iv) an entity specified under section
154(b) of the National Defense Authorization
Act for Fiscal Year 2024 (Public Law 118-31; 10
U.S.C. note prec. 4651), or
``(v) a foreign-controlled entity.
``(C) Foreign-controlled entity.--For purposes of
subparagraph (B), the term `foreign-controlled entity'
means--
``(i) the government of a covered nation
(as defined in section 4872(f)(2) of title 10,
United States Code),
``(ii) a person who is a citizen, national,
or resident of a covered nation, provided that
such person is not an individual who is a
citizen or lawful permanent resident of the
United States,
``(iii) an entity or a qualified business
unit (as defined in section 989(a))
incorporated or organized under the laws of, or
having its principal place of business in, a
covered nation, or
``(iv) an entity (including subsidiary
entities) controlled (as determined under
subparagraph (F)) by an entity described in
clause (i), (ii), or (iii).
``(D) Foreign-influenced entity.--For purposes of
subparagraph (A), the term `foreign-influenced entity'
means an entity--
``(i) with respect to which, during the
taxable year--
``(I) a specified foreign entity
has the direct or indirect authority to
appoint a covered officer of such
entity,
``(II) a single specified foreign
entity owns at least 10 percent of such
entity,
``(III) one or more specified
foreign entities own in the aggregate
at least 25 percent of such entity, or
``(IV) at least 25 percent of the
debt of such entity is held in the
aggregate by one or more specified
foreign entities, or
``(ii) which, during the previous taxable
year--
``(I) makes a payment of dividends,
interest, compensation for services,
rentals or royalties, guarantees or any
other fixed, determinable, annual, or
periodic amount to a specified foreign
entity in an amount which is equal to
or greater than 10 percent of the total
of such payments made by such entity
during such taxable year, or
``(II) makes payments described in
subclause (I) to more than 1 specified
foreign entity in an amount which, in
the aggregate, is equal to or greater
than 25 percent of the total of such
payments made by such entity during
such taxable year.
Clause (ii) shall not apply unless such entity
makes such payments knowingly (or has reason to
know).
``(E) Covered officer.--For purposes of this
paragraph, the term `covered officer' means, with
respect to an entity--
``(i) a member of the board of directors,
board of supervisors, or equivalent governing
body,
``(ii) an executive-level officer,
including the president, chief executive
officer, chief operating officer, chief
financial officer, general counsel, or senior
vice president, or
``(iii) an individual having powers or
responsibilities similar to those of officers
or members described in clause (i) or (ii).
``(F) Determination of control.--For purposes of
subparagraph (C)(iv), the term `control' means--
``(i) in the case of a corporation,
ownership (by vote or value) of more than 50
percent of the stock in such corporation,
``(ii) in the case of a partnership,
ownership of more than 50 percent of the
profits interests or capital interests in such
partnership, or
``(iii) in any other case, ownership of
more than 50 percent of the beneficial
interests in the entity.
``(G) Determination of ownership.--For purposes of
this section, section 318 (relating to constructive
ownership of stock) shall apply for purposes of
determining ownership of stock in a corporation.
Similar principles shall apply for purposes of
determining ownership of interests in any other entity.
``(H) Regulations and guidance.--The Secretary may
prescribe such regulations and guidance as may be
necessary or appropriate to carry out the provisions of
this paragraph.
``(52) Material assistance from a prohibited foreign
entity.--
``(A) In general.--The term `material assistance
from a prohibited foreign entity' means, with respect
to any property--
``(i) any component, subcomponent, or
applicable critical mineral (as defined in
section 45X(c)(6)) included in such property
that is extracted, processed, recycled,
manufactured, or assembled by a prohibited
foreign entity, and
``(ii) any design of such property which is
based on any copyright or patent held by a
prohibited foreign entity or any know-how or
trade secret provided by a prohibited foreign
entity.
``(B) Exclusion.--
``(i) In general.--The term `material
assistance from a prohibited foreign entity'
shall not include any assembly part or
constituent material, provided that such part
or material is not acquired directly from a
prohibited foreign entity.
``(ii) Assembly part.--For purposes of this
subparagraph, the term `assembly part' means a
subcomponent or collection of subcomponents
which is--
``(I) not uniquely designed for use
in the construction of a qualified
facility described in section 45Y or
48E or an eligible component described
in section 45X, and
``(II) not exclusively or
predominantly produced by prohibited
foreign entities.
``(iii) Constituent material.--For purposes
of this subparagraph, the term `constituent
material' means any material which is--
``(I) not uniquely formulated for
use in a qualified facility described
in section 45Y or 48E or an eligible
component described in section 45X, and
``(II) not exclusively or
predominantly produced, processed, or
extracted by prohibited foreign
entities.
``(iv) Regulations and guidance.--The
Secretary may prescribe such regulations and
guidance as may be necessary or appropriate to
carry out the provisions of this paragraph.''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after the date of enactment of this Act.
(2) Other provisions.--The amendment made by subsection (c)
shall apply to facilities for which construction begins after
the date that is 2 years after the date of enactment of this
Act.
SEC. 112009. PHASE-OUT AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT
CREDIT.
(a) Phase-out.--Section 48E(e) is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``the construction of which begins during a
calendar year described in paragraph (2)'' and inserting
``which is placed in service after December 31, 2028,'', and
(2) by striking paragraphs (2) and (3) and inserting the
following:
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for any qualified investment with respect to
any qualified facility or energy storage technology
placed in service during calendar year 2029, 80
percent,
``(B) for any qualified investment with respect to
any qualified facility or energy storage technology
placed in service during calendar year 2030, 60
percent,
``(C) for any qualified investment with respect to
any qualified facility or energy storage technology
placed in service during calendar year 2031, 40
percent, and
``(D) for any qualified investment with respect to
any qualified facility or energy storage technology
placed in service after December 31, 2031, 0
percent.''.
(b) Restrictions Relating to Prohibited Foreign Entities.--
(1) In general.--Section 48E is amended--
(A) in subsection (b)(3), by adding at the end the
following new subparagraph:
``(D) Material assistance from prohibited foreign
entities.--The term `qualified facility' shall not
include any facility the construction of which begins
after the date that is one year after the date of the
enactment of this subparagraph if the construction of
such facility includes any material assistance from a
prohibited foreign entity (as defined in section
7701(a)(52)).'', and
(B) in subsection (c), by adding at the end the
following new paragraph:
``(3) Material assistance from prohibited foreign
entities.--The term `energy storage technology' shall not
include any property the construction of which begins after the
date that is one year after the date of the enactment of this
paragraph if the construction of such property includes any
material assistance from a prohibited foreign entity (as
defined in section 7701(a)(52)).''.
(2) Restrictions relating to prohibited foreign entities.--
Section 48E(d) is amended by adding at the end the following
new paragraph:
``(6) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit determined under
subsection (a) shall be allowed under section 38 for
any taxable year beginning after the date of enactment
of this paragraph if the taxpayer is a specified
foreign entity (as defined in section 7701(a)(51)(B)).
``(B) Other prohibited foreign entities.--No credit
determined under subsection (a) shall be allowed under
section 38 for any taxable year beginning after the
date which is 2 years after the date of enactment of
this paragraph if--
``(i) the taxpayer is a foreign-influenced
entity (as defined in section 7701(a)(51)(D)),
or
``(ii) during such taxable year, the
taxpayer--
``(I) makes a payment of dividends,
interest, compensation for services,
rentals or royalties, guarantees or any
other fixed, determinable, annual, or
periodic amount to a prohibited foreign
entity (as defined in section
7701(a)(51)) in an amount which is
equal to or greater than 5 percent of
the total of such payments made by such
taxpayer during such taxable year which
are related to the production of
electricity or storage of energy, or
``(II) makes payments described in
subclause (I) to more than 1 prohibited
foreign entity (as so defined) in an
amount which, in the aggregate, is
equal to or greater than 15 percent of
the total of such payments made by such
taxpayer during such taxable year which
are related to the production of
electricity or storage of energy.''.
(3) Recapture.--Section 50(a) is amended--
(A) by redesignating paragraphs (4) through (6) as
paragraphs (5) through (7), respectively,
(B) by inserting after paragraph (3) the following
new paragraph:
``(4) Payments to prohibited foreign entities.--
``(A) In general.--If there is an applicable
payment made by a specified taxpayer before the close
of the 10-year period beginning on the date such
taxpayer placed in service investment credit property
which is eligible for the clean electricity investment
credit under section 48E(a), then the tax under this
chapter for the taxable year in which such applicable
payment occurs shall be increased by 100 percent of the
aggregate decrease in the credits allowed under section
38 for all prior taxable years which would have
resulted solely from reducing to zero any credit
determined under section 46 which is attributable to
the clean electricity investment credit under section
48E(a) with respect to such property.
``(B) Applicable payment.--For purposes of this
paragraph, the term `applicable payment' means, with
respect to any taxable year, a payment or payments
described in subclause (I) or (II) of section
48E(d)(6)(B)(ii).
``(C) Specified taxpayer.--For purposes of this
paragraph, the term `specified taxpayer' means any
taxpayer who has been allowed a credit under section
48E(a) for any taxable year beginning after the date
which is 2 years after the date of enactment of this
paragraph.'',
(C) in paragraph (5), as redesignated by
subparagraph (A), by striking ``or any applicable
transaction to which paragraph (3)(A) applies,'' and
inserting ``any applicable transaction to which
paragraph (3)(A) applies, or any applicable payment to
which paragraph (4)(A) applies,'', and
(D) in paragraph (7), as redesignated by
subparagraph (A), by striking ``or (3)'' and inserting
``(3), or (4)''.
(c) Repeal of Transferability.--Section 6418, as amended by section
112008, is amended--
(1) in subsection (f)(1)(A), by striking clause (xi), and
(2) in subsection (g)(3), by striking ``clauses (ix)
through (xi)'' and inserting ``clause (ix) or (x)''.
(d) Conforming Amendments.--Section 48E(h)(4) is amended--
(1) in subparagraph (C), by striking ``December 31 of the
applicable year (as defined in section 45Y(d)(3))'' and
inserting ``December 31, 2031'',
(2) in subparagraph (D), by striking ``the third calendar
year following the applicable year (as defined in section
45Y(d)(3))'' and inserting ``2031'', and
(3) in subparagraph (E)(i), by striking ``after the date
that is 4 years after the date of the allocation with respect
to the facility of which such property is a part'' and
inserting ``the earlier of--
``(I) the date that is 4 years
after the date of the allocation with
respect to the facility of which such
property is a part, or
``(II) December 31, 2031.''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after the date of enactment of this Act.
(2) Other provisions.--The amendments made by subsection
(c) shall apply to facilities and energy storage technology for
which construction begins after the date that is 2 years after
the date of enactment of this Act.
SEC. 112010. REPEAL OF TRANSFERABILITY OF CLEAN FUEL PRODUCTION CREDIT.
(a) In General.--Section 6418(f)(1)(A), as amended by sections
112008 and 112009, is amended by striking clause (viii).
(b) Effective Date.--The amendment made by this section shall apply
to fuel produced after December 31, 2027.
SEC. 112011. RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT.
(a) Restrictions Relating to Prohibited Foreign Entities.--Section
45Q(f) is amended by adding at the end the following new paragraph:
``(10) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit determined under
subsection (a) shall be allowed under section 38 for
any taxable year beginning after the date of enactment
of this paragraph if the taxpayer is a specified
foreign entity (as defined in section 7701(a)(51)(B)).
``(B) Other prohibited foreign entities.--No credit
determined under subsection (a) shall be allowed under
section 38 for any taxable year beginning after the
date which is 2 years after the date of enactment of
this paragraph if the taxpayer is a foreign-influenced
entity (as defined in section 7701(a)(51)(D)).''.
(b) Repeal of Transferability.--Section 6418(f)(1), as amended by
sections 112008, 112009, and 112010, is amended--
(1) in subparagraph (A), by striking clause (iii), and
(2) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking
``clause (ii), (iii), or (v)'' and inserting ``clause
(ii) or (v)'', and
(B) in clause (ii), by striking ``(or, in the
case'' and all that follows through ``at such
facility)''.
(c) Effective Dates.--
(1) Restrictions relating to prohibited foreign entities.--
The amendments made by subsection (a) shall apply to taxable
years beginning after the date of enactment of this Act.
(2) Repeal of transferability.--The amendments made by
subsection (b) shall apply to carbon capture equipment the
construction of which begins after the date that is 2 years
after the date of enactment of this Act.
SEC. 112012. PHASE-OUT AND RESTRICTIONS ON ZERO-EMISSION NUCLEAR POWER
PRODUCTION CREDIT.
(a) Phase-out.--Section 45U(e) is amended to read as follows:
``(e) Credit Phase-out.--
``(1) In general.--For any taxable year beginning after
December 31, 2028, the amount of the zero-emission nuclear
power production credit under subsection (a) for such taxable
year shall be equal to the product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for any taxable year beginning in calendar
year 2029, 80 percent,
``(B) for any taxable year beginning in calendar
year 2030, 60 percent,
``(C) for any taxable year beginning in calendar
year 2031, 40 percent, and
``(D) for any taxable year beginning after December
31, 2031, 0 percent.''.
(b) Restrictions Relating to Prohibited Foreign Entities.--Section
45U(c) is amended by adding at the end the following new paragraph:
``(3) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit determined under
subsection (a) shall be allowed under section 38 for
any taxable year beginning after the date of enactment
of this paragraph if the taxpayer is a specified
foreign entity (as defined in section 7701(a)(51)(B)).
``(B) Other prohibited foreign entities.--No credit
determined under subsection (a) shall be allowed under
section 38 for any taxable year beginning after the
date which is 2 years after the date of enactment of
this paragraph if the taxpayer is a foreign-influenced
entity (as defined in section 7701(a)(51)(D)).''.
(c) Repeal of Transferability.--Section 6418(f)(1)(A), as amended
by section 112008, 112009, 112010, and 112011, is amended by striking
clause (iv).
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after the date of enactment of this Act.
(2) Repeal of transferability.--The amendment made by
subsection (c) shall apply to electricity produced and sold
after December 31, 2027.
SEC. 112013. TERMINATION OF CLEAN HYDROGEN PRODUCTION CREDIT.
(a) Termination.--Section 45V(c)(3)(C) is amended by striking
``January 1, 2033'' and inserting ``January 1, 2026''.
(b) Effective Date.--The amendment made by this section shall apply
to facilities the construction of which begins after December 31, 2025.
SEC. 112014. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING
PRODUCTION CREDIT.
(a) Phase-out.--Section 45X(b)(3) is amended--
(1) in subparagraph (B)--
(A) in clause (ii), by adding ``and'' at the end,
(B) in clause (iii), by striking ``during calendar
year 2032, 25 percent,'' and inserting ``after December
31, 2031, 0 percent.'', and
(C) by striking clause (iv), and
(2) by striking subparagraph (C) and inserting the
following:
``(C) Termination for wind energy components.--This
section shall not apply to wind energy components sold
after December 31, 2027.''.
(b) Restrictions Relating to Prohibited Foreign Entities.--Section
45X is amended--
(1) in subsection (c)(1), by adding at the end the
following new subparagraph:
``(C) Material assistance from prohibited foreign
entities.--In the case of taxable years beginning after
the date which is 2 years after the date of enactment
of this subparagraph, the term `eligible component'
shall not include any property which--
``(i) includes any material assistance from
a prohibited foreign entity (as defined in
section 7701(a)(52)), or
``(ii) is produced subject to a licensing
agreement with a prohibited foreign entity (as
defined in section 7701(a)(51)) for which the
value of such agreement is in excess of
$1,000,000.'', and
(2) in subsection (d), by adding at the end the following
new paragraph:
``(5) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit determined under
subsection (a) shall be allowed under section 38 for
any taxable year beginning after the date of enactment
of this paragraph if the taxpayer is a specified
foreign entity (as defined in section 7701(a)(51)(B)).
``(B) Other prohibited foreign entities.--No credit
determined under subsection (a) shall be allowed under
section 38 for any taxable year beginning after the
date which is 2 years after the date of enactment of
this paragraph if the taxpayer is a foreign-influenced
entity (as defined in section 7701(a)(51)(D)).
``(C) Payments to prohibited foreign entities.--
``(i) In general.--If, for any taxable year
beginning after the date that is 2 years after
the date of the enactment of this paragraph, a
taxpayer is described in clause (ii) for such
taxable year with respect to any eligible
component category, no credit shall be
determined under subsection (a) for eligible
components in such eligible component category
for such taxable year.
``(ii) Taxpayer described.--A taxpayer is
described in this clause for a taxable year
with respect to any eligible component category
if such taxpayer--
``(I) makes a payment of dividends,
interest, compensation for services,
rentals or royalties, guarantees or any
other fixed, determinable, annual, or
periodic amount to a prohibited foreign
entity (as defined in section
7701(a)(51)) in an amount which is
equal to or greater than 5 percent of
the total of such payments made by such
taxpayer during such taxable year which
are related to the production of
eligible components included within
such eligible component category, or
``(II) makes payments described in
subclause (I) to more than 1 prohibited
foreign entity (as so defined) in an
amount which, in the aggregate, is
equal to or greater than 15 percent of
such payments made by such taxpayer
during such taxable year which are
related to the production of eligible
components included within such
eligible component category.
``(iii) Eligible component category.--For
purposes of this subparagraph, the term
`eligible component category' means eligible
components which are included within each
respective clause under subsection
(c)(1)(A).''.
(c) Repeal of Transferability.--Section 6418, as amended by
sections 112008, 112009, 112010, 112011, and 112012 is amended--
(1) in subsection (f)(1)--
(A) in subparagraph (A)--
(i) by striking clause (vi), and
(ii) by redesignating clauses (v), (ix),
and (x) as clauses (iii), (iv), and (v),
respectively, and
(B) in subparagraph (B), by striking ``clause (ii)
or (v)'' and inserting ``clause (ii) or (iii)'', and
(2) in subsection (g)(3), by striking ``clause (ix) or
(x)'' and inserting ``clause (iv) or (v)''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after the date of enactment of this Act.
(2) Repeal of transferability.--The amendments made by
subsection (c) shall apply to components sold after December
31, 2027.
SEC. 112015. PHASE-OUT OF CREDIT FOR CERTAIN ENERGY PROPERTY.
(a) Phase-out.--Section 48(a) is amended--
(1) in paragraph (3)(vii), by striking ``the construction
of which begins before January 1, 2035'' and inserting ``the
construction of which begins before January 1, 2032'', and
(2) by striking paragraph (7) and inserting the following
new paragraph:
``(7) Phase-out for certain energy property.--In the case
of any energy property described in clause (vii) of paragraph
(3)(A), the energy percentage determined under paragraph (2)
shall be equal to--
``(A) in the case of any property the construction
of which begins before January 1, 2030, and which is
placed in service after December 31, 2021, 6 percent,
``(B) in the case of any property the construction
of which begins after December 31, 2029, and before
January 1, 2031, 5.2 percent, and
``(C) in the case of any property the construction
of which begins after December 31, 2030, and before
January 1, 2032, 4.4 percent.''.
(b) Restrictions Relating to Prohibited Foreign Entities.--Section
48(a) is amended by redesignating paragraph (16) as paragraph (17) and
by inserting after paragraph (15) the following new paragraph:
``(16) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit determined under this
subsection for energy property described in paragraph
(3)(A)(vii) shall be allowed under section 38 for any
taxable year beginning after the date of enactment of
this paragraph if the taxpayer is a specified foreign
entity (as defined in section 7701(a)(51)(B)).
``(B) Other prohibited foreign entities.--No credit
determined under this subsection for energy property
described in paragraph (3)(A)(vii) shall be allowed
under section 38 for any taxable year beginning after
the date which is 2 years after the date of enactment
of this paragraph if the taxpayer is a foreign-
influenced entity (as defined in section
7701(a)(51)(D)).''.
(c) Repeal of Transferability.--Section 6418(f)(1)(A)(iv), as
redesignated by section 112014, is amended by inserting ``(except so
much of the credit as is determined under paragraph (3)(A)(vii) of such
section)'' after ``section 48''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after the date of the enactment of this Act.
(2) Repeal of transferability.--The amendments made by
subsection (c) shall apply to property the construction of
which begins after the date that is 2 years after the date of
enactment of this Act.
SEC. 112016. INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE ADDED TO
QUALIFYING INCOME OF CERTAIN PUBLICLY TRADED PARTNERSHIPS
TREATED AS CORPORATIONS.
(a) In General.--Section 7704(d)(1)(E) is amended--
(1) by striking ``income and gains derived from the
exploration'' and inserting ``income and gains derived from--
``(i) the exploration'',
(2) by inserting ``or'' before ``industrial source'', and
(3) by striking ``, 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, or
``(iii) in the case of a qualified facility
(as defined in section 45Q(d), without regard
to any date by which construction of the
facility is required to begin) not less than 50
percent of the total carbon oxide production of
which is qualified carbon oxide (as defined in
section 45Q(c))--
``(I) the generation, availability
for such generation, or storage of
electric power at such facility, or
``(II) the capture of carbon
dioxide by such facility,''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 112017. LIMITATION ON AMORTIZATION OF CERTAIN SPORTS FRANCHISES.
(a) In General.--Section 197 is amended by redesignating subsection
(g) as subsection (h) and by inserting after subsection (f) the
following new subsection:
``(g) Limitation on Amortization of Certain Sports Franchises.--
``(1) In general.--In the case of a specified sports
franchise intangible, subsection (a) shall be applied by
substituting `50 percent of the adjusted basis' for `the
adjusted basis'.
``(2) Specified sports franchise intangible.--For purposes
of this subsection, the term `specified sports franchise
intangible' means any amortizable section 197 intangible which
is--
``(A) a franchise to engage in professional
football, basketball, baseball, hockey, soccer, or
other professional sport, or
``(B) acquired in connection with such a
franchise.''.
(b) Effective Date.--The amendments made by this section shall
apply to property acquired after the date of the enactment of this Act.
SEC. 112018. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND
LOCAL TAXES, ETC.
(a) In General.--Section 275 is amended by redesignating subsection
(b) as subsection (c) and by inserting after subsection (a) the
following new subsection:
``(b) Limitation on Individual Deductions for Certain State and
Local Taxes, etc.--
``(1) Limitation.--
``(A) In general.--In the case of an individual, no
deduction shall be allowed for--
``(i) any disallowed foreign real property
taxes, and
``(ii) any specified taxes to the extent
that such taxes for such taxable year in the
aggregate exceed--
``(I) $15,000, in the case of a
married individual filing a separate
return, and
``(II) $30,000, in the case of any
other taxpayer.
``(B) Phasedown based on modfied adjusted gross
income.--
``(i) In general.--Except as provided in
clause (ii), the $15,000 amount in subparagraph
(A)(ii)(I) and the $30,000 amount in
subparagraph (A)(ii)(II) shall each be reduced
by 20 percent of the excess (if any) of the
taxpayer's modified adjusted gross income
over--
``(I) $200,000, in the case of a
married individual filing a separate
return, and
``(II) $400,000, in the case of any
other taxpayer.
``(ii) Limitation on reduction.--The
reduction under clause (i) shall not result
in--
``(I) the dollar amount in effect
under subparagraph (A)(ii)(I) being
less than $5,000, or
``(II) the dollar amount in effect
under subparagraph (A)(ii)(II) being
less than $10,000.
``(C) Modified adjusted gross income.--For purposes
of this paragraph, the term `modified adjusted gross
income' means adjusted gross income increased by any
amount excluded from gross income under section 911,
931, or 933.
``(2) Disallowed foreign real property tax.--For purposes
of this subsection, the term `disallowed foreign real property
tax' means any tax which--
``(A) is a foreign real property tax described in
section 164(a)(1) or 216(a)(1), and
``(B) is not an excepted tax.
``(3) Specified tax.--For purposes of this subsection, the
term `specified tax' means--
``(A) any tax which--
``(i) is described in paragraph (1), (2),
or (3) of section 164(a), section 164(b)(5), or
section 216(a)(1), and
``(ii) is not an excepted tax or a
disallowed foreign real property tax, and
``(B) any substitute payment.
``(4) Excepted tax.--For purposes of this subsection--
``(A) In general.--The term `excepted tax' means--
``(i) any foreign tax described in section
164(a)(3),
``(ii) any tax described in section
164(a)(3) which is paid or accrued by a
qualifying entity with respect to carrying on a
qualified trade or business (as defined in
section 199A(d), without regard to section
199A(b)(3)), and
``(iii) any tax described in paragraph (1)
or (2) of section 164(a), or section 216(a)(1),
which is paid or accrued in carrying on a trade
or business or an activity described in section
212.
``(B) Qualifying entity.--For purposes of
subparagraph (A), the term `qualifying entity' means
any partnership or S corporation with gross receipts
for the taxable year (within the meaning of section
448(c)) if at least 75 percent of such gross receipts
are derived in a qualified trade or business (as
defined in section 199A(d), without regard to section
199A(b)(3)). For purposes of the preceding sentence,
the gross receipts of all trades or businesses which
are under common control (within the meaning of section
52(b)) with any trade or business of the partnership or
S corporation shall be taken into account as gross
receipts of the entity.
``(5) Substitute payment.--For purposes of this
subsection--
``(A) In general.--The term `substitute payment'
means any amount (other than a tax described in
paragraph (3)(A)) paid, incurred, or accrued to any
entity referred to in section 164(b)(2) if, under the
laws of one or more entities referred to in section
164(b)(2), one or more persons would (if the
assumptions described in subparagraphs (B) and (C)
applied) be entitled to specified tax benefits the
aggregate dollar value of which equals or exceeds 25
percent of such amount.
``(B) Assumption regarding dollar value of tax
benefits.--The assumption described in this
subparagraph is that the dollar value of a specified
tax benefit is--
``(i) in the case of a credit or refund,
the amount of such credit or refund,
``(ii) in the case of a deduction or
exclusion, 15 percent of the amount of such
deduction or exclusion, and
``(iii) in any other case, an amount
determined in such manner as the Secretary may
provide consistent with the principles of
clauses (i) and (ii).
``(C) Assumption regarding status of partners or
shareholders.--The assumption described in this
subparagraph is, in the case of any amount referred to
in subparagraph (A) which is paid, incurred, or accrued
by a partnership or S corporation, that all of the
partners or shareholders of such partnership or S
corporation, respectively, are individuals who are
residents of the jurisdiction of the entity or entities
providing the specified tax benefits (and possess such
other characteristics as the laws of such entities may
require for entitlement to such benefits).
``(D) Specified tax benefit.--For purposes of
subparagraph (A), the term `specified tax benefit'
means any benefit which--
``(i) is determined with respect to the
amount referred to in subparagraph (A), and
``(ii) is allowed against, or determined by
reference to, a tax described in paragraph
(3)(A).
``(E) Exception for non-deductible payments.--To
the extent that a deduction for an amount described in
subparagraph (A) is not allowed under this chapter
(determined without regard to this subsection, section
170(b)(1), section 703(a), section 704(d), and section
1363(b)), the term `substitute payment' shall not
include such amount.
``(F) Exception for certain withholding taxes.--To
the extent provided in regulations issued by the
Secretary, the term `substitute payment' shall not
include an amount withheld on behalf of another person
if all of such amount is included in the gross income
of such person (determined under this chapter).
``(6) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this subsection,
including regulations or other guidance--
``(A) to treat as a tax described in paragraph (3)
of section 164(a) any tax that is, in substance, based
on general tax principles, described in such paragraph,
``(B) to treat as a substitute payment any amount
that, in substance, substitutes for a specified tax,
``(C) to provide for the proper allocation, for
purposes of paragraph (4)(A)(ii), of taxes described in
section 164(a)(3) between trades or business described
in section 199A(d)(1) and trades or business not so
described, and
``(D) to otherwise prevent the avoidance of the
purposes of this subsection.''.
(b) State and Local Income Taxes Paid by Partnerships and S
Corporations Taken Into Account Separately by Partners and
Shareholders.--
(1) In general.--Section 702(a)(6) is amended to read as
follows:
``(6)(A) taxes, described in section 901, paid or accrued
to foreign countries,
``(B) taxes, described in section 901, paid or accrued to
possessions of the United States,
``(C) specified taxes (within the meaning of section
275(b)), other than taxes described in subparagraph (B), and
``(D) taxes described in section 275(b)(2),''.
(2) Treatment of substitute payments.--Section 702 is
amended by redesignating subsection (d) as subsection (e) and
by inserting after subsection (c) the following new subsection:
``(d) Treatment of Substitute Payments.--Any substitute payment (as
defined in section 275(b)(5)) shall be taken into account under
subsection (a)(6)(C) and not under any other paragraph of subsection
(a).''.
(3) Disallowance of deduction to partnerships.--Section
703(a)(2)(B) is amended to read as follows:
``(B) any deduction under this chapter with respect
to taxes or payments described in section 702(a)(6),''.
(4) S corporations.--For corresponding provisions related
to S corporations which apply by reason of the amendments made
by paragraphs (1) through (3), see sections 1366(a)(1) and
1363(b)(2) of the Internal Revenue Code of 1986.
(5) Allowable salt deductions taken into account for
purposes of limitation on partnership losses.--Section
704(d)(3) is amended by striking subparagraph (A), by
redesignating subparagraph (B) as subparagraph (C), and by
inserting before subparagraph (C) (as so redesignated) the
following new subparagraphs:
``(A) In general.--In determining the amount of any
loss under paragraph (1), there shall be taken into
account--
``(i) the partner's distributive share of
amounts described in paragraphs (4) and (6)(A)
of section 702(a),
``(ii) if the taxpayer chooses to take to
any extent the benefits of section 901, the
partner's distributive share of amounts
described in section 702(a)(6)(B), and
``(iii) the amount by which the deductions
allowed under this chapter (determined without
regard to this subsection) to the partner would
decrease if the partner's distributive share of
amounts described in section 702(a)(6)(C) were
not taken into account.
``(B) Treatment of possession taxes in event
partner does not elect the foreign tax credit.--In the
case of a taxpayer not described in subparagraph
(A)(ii), subparagraph (A)(iii) shall be applied by
substituting `subparagraphs (B) and (C) of section
702(a)(6)' for `section 702(a)(6)(C)'.''.
(6) Conforming amendment.--Section 56(b)(1)(A)(ii) is
amended by inserting ``or for any substitute payment (as
defined in section 275(b)(5))'' before the period at the end.
(c) Addition to Tax for State and Local Tax Allocation Mismatch.--
(1) In general.--Part I of subchapter A of chapter 68 is
amended by adding at the end the following new section:
``SEC. 6659. STATE AND LOCAL TAX ALLOCATION MISMATCH.
``(a) In General.--In the case of any covered individual, there
shall be added to the tax imposed under section 1 for the taxable year
an amount equal to the product of--
``(1) the highest rate of tax in effect under such section
for such taxable year, multiplied by
``(2) the sum of the State and local tax allocation
mismatches for such taxable year with respect to each
partnership specified tax payment with respect to which such
individual is a covered individual.
``(b) Covered Individual.--For purposes of this section, the term
`covered individual' means, with respect to any partnership specified
tax payment, any individual (or estate or trust) who--
``(1) is entitled (directly or indirectly) to one or more
specified tax benefits with respect to such payment, and
``(2) takes into account (directly or indirectly) any item
of income, gain, deduction, loss, or credit of the partnership
which made such payment.
``(c) State and Local Tax Allocation Mismatch.--For purposes of
this section--
``(1) In general.--The term `State and local tax allocation
mismatch' means, with respect to any partnership specified tax
payment, the excess (if any) of--
``(A) the aggregate dollar value of the specified
tax benefits of the covered individual with respect to
such payment, over
``(B) the amount of such payment taken into account
by such individual under section 702(a) (without regard
to sections 275(b) and 704(d)).
``(2) Taxable year of individual in which mismatch taken
into account.--In the case of any partnership specified tax
payment paid, incurred, or accrued in any taxable year of the
partnership, the State and local tax allocation mismatch
determined under paragraph (1) with respect to such payment
shall be taken into account under subsection (a) by the covered
individual for the taxable year of such individual in which
such individual takes into account the items referred to in
subsection (b)(2) which are determined with respect to such
partnership taxable year.
``(d) Determination of Dollar Value of Specified Tax Benefits.--
``(1) In general.--Except in the case of a covered
individual who elects the application of paragraph (3) for any
taxable year, the dollar value of any specified tax benefit
shall be the sum of--
``(A) the aggregate increase in tax liability (and
reduction in credit or refund) for taxes described in
section 275(b)(3)(A) for the taxable year and all prior
taxable years that would result if such specified tax
benefit were not taken into account with respect to
such taxes, plus
``(B) the deemed value of any carryforward of such
specified tax benefit (including any tax attribute
derived from such benefit) to any subsequent taxable
year.
``(2) Deemed value of carryforwards.--For purposes of
paragraph (1), the deemed value of any carryforward is--
``(A) in the case of a credit or refund, the amount
of such credit or refund,
``(B) in the case of a deduction or exclusion, the
product of--
``(i) the highest rate of tax which may be
imposed on individuals under the tax referred
to in subsection (e)(3)(B) with respect to the
specified tax benefit, multiplied by
``(ii) the amount of such deduction or
exclusion, and
``(C) in any other case, an amount determined in
such manner as the Secretary may provide consistent
with the principles of subparagraphs (A) and (B).
``(3) Election of simplified method.--In the case of a
covered individual who elects the application of this paragraph
for any taxable year, the dollar value of any specified tax
benefit shall be determined under the assumptions described in
section 275(b)(5)(B).
``(e) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Partnership specified tax payment.--The term
`partnership specified tax payment' means any specified tax
paid, incurred, or accrued by a partnership.
``(2) Specified tax.--The term `specified tax' has the
meaning given such term by section 275(b)(3).
``(3) Specified tax benefit.--The term `specified tax
benefit' means any benefit which--
``(A) is determined with respect to a partnership
specified tax payment, and
``(B) is allowed against, or determined by
reference to, a tax described in section 275(b)(3)(A).
``(f) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance
preventing avoidance of the addition to tax prescribed by this section
through partnership allocations that achieve similar tax reductions as
a State and local tax allocation mismatch.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter A of chapter 68 is amended by adding at the end
the following new item:
``Sec. 6659. State and local tax allocation mismatch.''.
(d) Limitation on Capitalization of Specified Taxes.--Section 275,
as amended by the preceding provisions of this section, is amended by
redesignating subsection (c) as subsection (d) and by inserting after
subsection (b) the following new subsection:
``(c) Limitations on Capitalization of Specified Taxes.--
Notwithstanding any other provision of this chapter, in the case of an
individual, specified taxes (as defined in subsection (b)) shall not be
treated as chargeable to capital account.''.
(e) Reporting by Partnerships and S Corporations With Respect to
Specified Service Trade or Business Income.--
(1) Partnerships.--Section 6031 is amended by adding at the
end the following new subsection:
``(g) Specified Service Trade or Business Income.--Returns required
under subsection (a), and copies required to be furnished under
subsection (b), shall include a statement of whether or not the
partnership had any gross receipts (within the meaning of section
448(c)) from a trade or business described in subsection 199A(d)(2).''.
(2) S corporations.--Section 6037 is amended by adding at
the end the following new subsection:
``(d) Specified Service Trade or Business Income.--Returns required
under subsection (a), and copies required to be furnished under
subsection (b), shall include a statement of whether or not the S
corporation had any gross receipts (within the meaning of section
448(c)) from a trade or business described in subsection 199A(d)(2).''.
(f) Conforming Amendment.--Section 164(b) is amended by striking
paragraph (6).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 112019. EXCESSIVE EMPLOYEE REMUNERATION FROM CONTROLLED GROUP
MEMBERS AND ALLOCATION OF DEDUCTION.
(a) Application of Aggregation Rules.--Section 162(m) is amended by
adding at the end the following new paragraph:
``(7) Remuneration from controlled group members.--
``(A) In general.--In the case of any publicly held
corporation which is a member of a controlled group--
``(i) paragraph (1) shall be applied by
substituting `specified covered employee' for
`covered employee', and
``(ii) if any person which is a member of
such controlled group (other than such publicly
held corporation) provides applicable employee
remuneration to an individual who is a
specified covered employee of such controlled
group and the aggregate amount described in
subparagraph (B)(ii) with respect to such
specified covered employee exceeds $1,000,000--
``(I) paragraph (1) shall apply to
such person with respect to such
remuneration, and
``(II) paragraph (1) shall apply to
such publicly held corporation and to
each such related person by
substituting `the allocable limitation
amount' for `$1,000,000'.
``(B) Allocable limitation amount.--For purposes of
this paragraph, the term `allocable limitation amount'
means, with respect to any member of the controlled
group referred to in subparagraph (A) with respect to
any specified covered employee of such controlled
group, the amount which bears the same ratio to
$1,000,000 as--
``(i) the amount of applicable employee
remuneration provided by such member with
respect to such specified covered employee,
bears to
``(ii) the aggregate amount of applicable
employee remuneration provided by all such
members with respect to such specified covered
employee.
``(C) Specified covered employee.--For purposes of
this paragraph, the term `specified covered employee'
means, with respect to any controlled group--
``(i) any employee described in
subparagraph (A), (B), or (D) of paragraph (3),
with respect to the publicly held corporation
which is a member of such controlled group, and
``(ii) any employee who would be described
in subparagraph (C) of paragraph (3) if such
subparagraph were applied by taking into
account the employees of all members of the
controlled group.
``(D) Controlled group.--For purposes of this
paragraph, the term `controlled group' means any group
treated as a single employer under subsection (b), (c),
(m), or (o) of section 414.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 112020. EXPANDING APPLICATION OF TAX ON EXCESS COMPENSATION WITHIN
TAX-EXEMPT ORGANIZATIONS.
(a) In General.--Section 4960(c)(2) is amended to read as follows:
``(2) Covered employee.--For purposes of this section, the
term `covered employee' means any employee (including any
former employee) of an applicable tax-exempt organization or
any related person or governmental entity.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2025.
SEC. 112021. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF CERTAIN
PRIVATE COLLEGES AND UNIVERSITIES.
(a) In General.--Section 4968 is amended to read as follows:
``SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE COLLEGES
AND UNIVERSITIES.
``(a) Tax Imposed.--There is hereby imposed on each applicable
educational institution for the taxable year a tax equal to the
applicable percentage of the net investment income of such institution
for the taxable year.
``(b) Applicable Percentage.--For purposes of this section, the
term `applicable percentage' means--
``(1) 1.4 percent in the case of an institution with a
student adjusted endowment in excess of $500,000, and not in
excess of $750,000,
``(2) 7 percent in the case of an institution with a
student adjusted endowment in excess of $750,000, and not in
excess of $1,250,000,
``(3) 14 percent in the case of an institution with a
student adjusted endowment in excess of $1,250,000, and not in
excess of $2,000,000, and
``(4) 21 percent in the case of an institution with a
student adjusted endowment in excess of $2,000,000.
``(c) Applicable Educational Institution.--For purposes of this
subchapter--
``(1) In general.--The term `applicable educational
institution' means an eligible educational institution (as
defined in section 25A(f)(2))--
``(A) which had at least 500 tuition-paying
students during the preceding taxable year,
``(B) more than 50 percent of the tuition-paying
students of which are located in the United States,
``(C) which is not--
``(i) described in the first sentence of
section 511(a)(2)(B) (relating to State
colleges and universities), or
``(ii) a qualified religious institution,
and
``(D) the student adjusted endowment of which is at
least $500,000.
``(2) Qualified religious institution.--For purposes of
this subsection, the term `qualified religious institution'
means any institution--
``(A) established after July 4, 1776,
``(B) that was established by or in association
with and has continuously maintained an affiliation
with an organization described in section
170(b)(1)(A)(i), and
``(C) which maintains a published institutional
mission that is approved by the governing body of such
institution and that includes, refers to, or is
predicated upon religious tenets, beliefs, or
teachings.
``(d) Student Adjusted Endowment.--For purposes of this section--
``(1) In general.--The term `student adjusted endowment'
means, with respect to any institution for any taxable year--
``(A) the aggregate fair market value of the assets
of such institution (determined as of the end of the
preceding taxable year), other than those assets which
are used directly in carrying out the institution's
exempt purpose, divided by
``(B) the number of eligible students of such
institution.
``(2) Eligible student.--For purposes of this subsection,
the term `eligible student' means a student of the institution
that meets the student eligibility requirements under section
484(a)(5) of the Higher Education Act of 1965.
``(e) Determination of Number of Students.--For purposes of
subsections (c)(1) and (d), the number of students of an institution
(including for purposes of determining the number of students at a
particular location) shall be based on the daily average number of
full-time students attending such institution (with part-time students
taken into account on a full-time student equivalent basis).
``(f) Net Investment Income.--For purposes of this section--
``(1) In general.--Net investment income shall be
determined under rules similar to the rules of section 4940(c).
``(2) Override of certain regulatory exceptions.--
``(A) Student loan interest.--Net investment income
shall be determined by taking into account any interest
income from a student loan made by the applicable
educational institution (or any related organization)
as gross investment income.
``(B) Federally-subsidized royalty income.--
``(i) In general.--Net investment income
shall be determined by taking into account any
Federally-subsidized royalty income as gross
investment income.
``(ii) Federally-subsidized royalty
income.--For purposes of this subparagraph--
``(I) In general.--The term
`Federally-subsidized royalty income'
means any otherwise-regulatory-exempt
royalty income if any Federal funds
were used in the research, development,
or creation of the patent, copyright,
or other intellectual or intangible
property from which such royalty income
is derived.
``(II) Otherwise-regulatory-exempt
royalty income.--For purposes of this
subparagraph, the term `otherwise-
regulatory-exempt royalty income' means
royalty income which (but for this
subparagraph) would not be taken into
account as gross investment income by
reason of being derived from patents,
copyrights, or other intellectual or
intangible property which resulted from
the work of students or faculty members
in their capacities as such with the
applicable educational institution.
``(III) Federal funds.--The term
`Federal funds' includes any grant made
by, and any payment made under any
contract with, any Federal agency to
the applicable educational institution,
any related organization, or any
student or faculty member referred to
in subclause (II).
``(g) Assets and Net Invstement Income of Related Organizations.--
``(1) In general.--For purposes of subsections (d) and (f),
assets and net investment income of any related organization
with respect to an educational institution shall be treated as
assets and net investment income, respectively, of the
educational institution, except that--
``(A) no such amount shall be taken into account
with respect to more than 1 educational institution,
and
``(B) unless such organization is controlled by
such institution or is described in section 509(a)(3)
with respect to such institution for the taxable year,
assets and net investment income which are not intended
or available for the use or benefit of the educational
institution shall not be taken into account.
``(2) Related organization.--For purposes of this
subsection, the term `related organization' means, with respect
to an educational institution, any organization which--
``(A) controls, or is controlled by, such
institution,
``(B) is controlled by 1 or more persons which also
control such institution, or
``(C) is a supported organization (as defined in
section 509(f)(3)), or an organization described in
section 509(a)(3), during the taxable year with respect
to such institution.
``(h) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary to prevent avoidance of the tax
under this section, including regulations or other guidance to prevent
avoidance of such tax through the restructuring of endowment funds or
other arrangements designed to reduce or eliminate the value of net
investment income or assets subject to the tax imposed by this
section.''.
(b) Requirement to Report Certain Information With Respect to
Application of Excise Tax Based on Investment Income of Private
Colleges and Universities.--Section 6033 is amended by redesignating
subsection (o) as subsection (p) and by inserting after subsection (n)
the following new subsection:
``(o) Requirement to Report Certain Information With Respect to
Excise Tax Based on Investment Income of Private Colleges and
Universities.--Each applicable educational institution described in
section 4968(c) which is subject to the requirements of subsection (a)
shall include on the return required under subsection (a)--
``(1) the number of eligible students taken into account
under section 4968(c)(1)(D), and
``(2) the number of students of such institution
(determined after application of section 4968(e)).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 112022. INCREASE IN RATE OF TAX ON NET INVESTMENT INCOME OF
CERTAIN PRIVATE FOUNDATIONS.
(a) In General.--Section 4940(a) is amended by striking ``1.39
percent'' and inserting ``the applicable percentage''.
(b) Applicable Percentage.--Section 4940(a) is amended--
(1) by striking ``There is hereby'' and inserting the
following:
``(1) Imposition of tax.--There is hereby'', and
(2) by adding at the end the following new paragraphs:
``(2) Applicable percentage.--For purposes of this
subsection, the term `applicable percentage' means, with
respect to any taxable year--
``(A) in the case of a private foundation with
assets of less than $50,000,000, 1.39 percent,
``(B) in the case of a private foundation with
assets of at least $50,000,000, and less than
$250,000,000, 2.78 percent,
``(C) in the case of a private foundation with
assets of at least $250,000,000, and less than
$5,000,000,000, 5 percent, and
``(D) in the case of a private foundation with
assets of at least $5,000,000,000, 10 percent.
``(3) Assets.--For purposes of this subsection, the assets
of any private foundation shall be determined with respect to
any taxable year as being the aggregate fair market value of
all assets of such private foundation, as determined as of the
close of such taxable year. The preceding sentence shall be
applied without reduction for any liabilities.
``(4) Aggregation.--
``(A) In general.--For purposes of paragraphs (2)
and (3), assets of any related organization with
respect to a private foundation shall be treated as
assets of the private foundation, except that--
``(i) no such assets shall be taken into
account with respect to more than 1 private
foundation, and
``(ii) unless such organization is
controlled by such private foundation, assets
which are not intended or available for the use
or benefit of the private foundation shall not
be taken into account.
``(B) Related organization.--For purposes of this
paragraph, the term `related organization' means, with
respect to a private foundation, any organization
which--
``(i) controls, or is controlled by, such
private foundation, or
``(ii) is controlled by 1 or more persons
which also control such private foundation.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 112023. CERTAIN PURCHASES OF EMPLOYEE-OWNED STOCK DISREGARDED FOR
PURPOSES OF FOUNDATION TAX ON EXCESS BUSINESS HOLDINGS.
(a) In General.--Section 4943(c)(4)(A) is amended by adding at the
end the following new clauses:
``(v) For purposes of clause (i), subparagraph (D),
and paragraph (2), any voting stock which--
``(I) is not readily tradable on an
established securities market,
``(II) is purchased by the business
enterprise on or after January 1, 2020, from an
employee stock ownership plan (as defined in
section 4975(e)(7)) in which employees of such
business enterprise participate, in connection
with a distribution from such plan, and
``(III) is held by the business enterprise
as treasury stock, cancelled, or retired,
shall be treated as outstanding voting stock, but only
to the extent so treating such stock would not result
in permitted holdings exceeding 49 percent (determined
without regard to this clause). The preceding sentence
shall not apply with respect to the purchase of stock
from a plan during the 10-year period beginning on the
date the plan is established.
``(vi) Section 4943(c)(4)(A)(ii) shall not apply
with respect to any decrease in the percentage of
holdings in a business enterprise by reason of the
application of clause (v).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years ending after the date of the enactment of this Act and
to purchases by a business enterprise of voting stock in taxable years
beginning after December 31, 2019.
SEC. 112024. UNRELATED BUSINESS TAXABLE INCOME INCREASED BY AMOUNT OF
CERTAIN FRINGE BENEFIT EXPENSES FOR WHICH DEDUCTION IS
DISALLOWED.
(a) In General.--Section 512(a) is amended by adding at the end the
following new paragraph:
``(7) Increase in unrelated business taxable income by
disallowed fringe.--
``(A) In general.--Unrelated business taxable
income of an organization shall be increased by any
amount--
``(i) which is paid or incurred by such
organization for any qualified transportation
fringe (as defined in section 132(f)) or any
parking facility used in connection with
qualified parking (as defined in section
132(f)(5)(C)),
``(ii) which is not directly connected with
an unrelated trade or business which is
regularly carried on by the organization, and
``(iii) for which a deduction is not
allowable under this chapter by reason of
section 274.
``(B) Exception for church organizations.--
Subparagraph (A) shall not apply to--
``(i) any organization to which section
6033(a)(1) does not apply by reason of clause
(i) or (iii) of section 6033(a)(3)(A), and
``(ii) any church-affiliated organization
described in section 501(c) which is not
required to file an annual return under section
6033(a)(1) by reason of section 6033(a)(3)(B).
``(C) Treatment as income from separate trade or
business.--For purposes of paragraph (6), any increase
under subparagraph (A) shall be treated as unrelated
business taxable income with respect to an unrelated
trade or business separate from any other unrelated
trade or business of the organization.
``(D) Regulations.-- The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this
paragraph, including regulations or other guidance
providing for the appropriate allocation of costs with
respect to facilities used for parking.''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred after December 31, 2025.
SEC. 112025. NAME AND LOGO ROYALTIES TREATED AS UNRELATED BUSINESS
TAXABLE INCOME.
(a) In General.--Section 513 is amended by adding at the end the
following new subsection:
``(k) Name and Logo Royalties.--Any sale or licensing by an
organization of any name or logo of the organization (including any
trademark or copyright relating to such name or logo) shall be treated
as an unrelated trade or business regularly carried on by such
organization.''.
(b) Calculation of Unrelated Business Taxable Income.--Section
512(b) is amended by adding at the end the following new paragraph:
``(20) Special rule for name and logo royalties.--
Notwithstanding any other paragraph of this subsection, any
income derived from any sale or licensing described in section
513(k) shall be included as an item of gross income derived
from an unrelated trade or business.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 112026. EXCLUSION OF RESEARCH INCOME LIMITED TO PUBLICLY AVAILABLE
RESEARCH.
(a) In General.--Section 512(b)(9) is amended by striking ``from
research'' and inserting ``from such research''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts received or accrued after December 31, 2025.
SEC. 112027. 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) Certain Net Operating Loss Carryover Taken Into Account.--
Section 461(l)(3) is amended--
(1) by inserting ``(except as provided in subparagraph
(B))'' after ``section 172'',
(2) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively, and
(3) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Certain net operating loss carryover taken
into account.--
``(i) In general.--For purposes of
subparagraph (A)(i), the aggregate deductions
of the taxpayer shall be increased by so much
of the net operating loss carried to the
taxable year as is attributable to the
treatment of a specified loss as a net
operating loss under paragraph (2).
``(ii) Specified loss.--For purposes of
this subparagraph, the term `specified loss'
means a loss which is disallowed under
paragraph (1) for a taxable year beginning
after December 31, 2024.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 112028. 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CONTRIBUTIONS
MADE BY CORPORATIONS.
(a) In General.--Section 170(b)(2)(A) is amended to read as
follows:
``(A) In general.--Any charitable contribution
(other than any contribution to which subparagraph (B)
or subparagraph (C) applies or any contribution for
which a deduction is not allowable under this section
without regard to this paragraph) shall be allowed as a
deduction under this subsection (a) only to the extent
that the aggregate of such contributions--
``(i) exceeds 1 percent of the taxpayer's
taxable income, and
``(ii) does not exceed 10 percent of the
taxpayer's taxable income.''.
(b) Application of Carryforward.--Section 170(d)(2) is amended to
read as follows:
``(2) Corporations.--
``(A) In general.--Any charitable contribution
taken into account under subsection (b)(2)(A) for any
taxable year which is not allowed as a deduction by
reason of clause (ii) thereof shall be taken into
account as a charitable contribution for the succeeding
taxable year, except that, for purposes of determining
under this subparagraph whether such contribution is
allowed in such succeeding taxable year, contributions
in such succeeding taxable year (determined without
regard to this paragraph) shall be taken into account
under subsection (b)(2)(A) before any contribution
taken into account by reason of this paragraph.
``(B) 5-year carryforward.--No charitable
contribution may be carried forward under subparagraph
(A) to any taxable year following the fifth taxable
year after the taxable year in which the charitable
contribution was first taken into account. For purposes
of the preceding sentence, contributions shall be
treated as allowed on a first-in first-out basis.
``(C) Contributions disallowed by 1-percent floor
carried forward only from years in which 10 percent
limitation is exceeded.--In the case of any taxable
year from which a charitable contribution is carried
forward under subparagraph (A) (determined without
regard this subparagraph), subparagraph (A) shall be
applied by substituting `clause (i) or (ii)' for
`clause (ii)'.
``(D) Special rule for net operating loss
carryovers.--The amount of charitable contributions
carried forward under subparagraph (A) shall be reduced
to the extent that such carryfoward would (but for this
subparagraph) reduce taxable income (as computed for
purposes of the second sentence of section 172(b)(2))
and increase a net operating loss carryover under
section 172 to a succeeding taxable year.''.
(c) Conforming Amendments.--Subparagraph (B)(ii) and (C)(ii) of
section 170(b)(2) are each amended by inserting ``other than
subparagraph (C) thereof'' after ``subsection (d)(2)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 112029. ENFORCEMENT OF REMEDIES AGAINST UNFAIR FOREIGN TAXES.
(a) In General.--Subpart D of part II of subchapter N of chapter 1
is amended by adding at the end the following new section:
``SEC. 899. ENFORCEMENT OF REMEDIES AGAINST UNFAIR FOREIGN TAXES.
``(a) Increased Rates of Tax on Foreign Persons of Discriminatory
Foreign Countries.--
``(1) Taxes other than withholding taxes.--
``(A) In general.--In the case of any applicable
person, each specified rate of tax (or any rate of tax
applicable in lieu of such statutory rate) shall be
increased by the applicable number of percentage
points.
``(B) Specified rate of tax.--For purposes of this
paragraph, the term `specified rate of tax' means--
``(i) the rates of tax specified in
paragraphs (1) and (2) of section 871(a),
``(ii) in the case of any applicable person
to which section 871(b) applies, each rate of
tax in effect under section 1,
``(iii) the rate of tax specified in
section 881(a),
``(iv) in the case of any applicable person
to which section 882(a) applies, the rate of
tax specified in section 11(b),
``(v) the rate of tax specified in section
884(a), and
``(vi) the rate of tax specified in section
4948(a).
``(C) Application of increased rates to effectively
connected income of nonresident alien individuals
limited to gains on united states real property
interests.--In the case of any individual to whom
subparagraph (A) applies, the tax imposed under section
1 on such individual (after application of subparagraph
(A)) shall be reduced (but not below zero) by the
excess of--
``(i) the tax which would be imposed under
such section (after application of subparagraph
(A)) if FIRPTA items were not taken into
account, over
``(ii) the tax which would be imposed under
such section if FIRPTA items were not taken
into account, and subparagraph (A) did not
apply.
For purposes of this clause, the term `FIRPTA items'
means gains and losses taken into account under section
871(b)(1) by reason of section 897(a)(1)(A).
``(D) Application of increased rates to certain
foreign governments.--In the case of any applicable
person described in subsection (b)(1)(A), section
892(a) shall not apply.
``(2) Modification of base erosion and anti-abuse tax.--In
the case of any corporation described in subsection (b)(1)(E)
(applied by substituting `corporation' for `foreign
corporation')--
``(A) such corporation shall be treated as
described in subparagraphs (B) and (C) of section
59A(e)(1) for purposes of determining whether such
corporation is an applicable taxpayer,
``(B) section 59A(b)(1) shall be applied by--
``(i) substituting `12.5 percent' for `10
percent' in subparagraph (A), and
``(ii) by treating the amount described in
section 59A(b)(1)(B)(ii) as being zero,
``(C) subsections (c)(2)(B), (c)(4)(B)(ii), and
(d)(5) of section 59A shall not apply, and
``(D) if any amount (other than the purchase price
of depreciable or amortizable property or inventory)
would have been a base erosion payment described in
section 59A(d)(1) but for the fact that the taxpayer
capitalizes the amount, then solely for purposes of
calculating the taxpayer's base erosion payments
(within the meaning of section 59A(d)) and base erosion
tax benefits (within the meaning of section 59A(c)(2)),
such amount shall be treated as if it had been deducted
rather than capitalized.
``(3) Withholding taxes.--
``(A) In general.--In the case of any payment to an
applicable person, each rate of tax specified in
section 1441(a) or 1442(a) (or any rate of tax
applicable in lieu of such statutory rate) shall be
increased by the applicable number of percentage
points. The preceding sentence shall not apply to the
14 percent rate of tax specified in section 1441(a).
``(B) Disposition of united states real property
interests.--In the case of any disposition of a United
States real property interest (as defined in section
897(c)) by an applicable person, the rate of tax
specified in section 1445(a) (or any rate of tax
applicable in lieu of such statutory rate) shall be
increased by the applicable number of percentage
points.
``(C) Other dispositions and distributions related
to united states real property interests.--In the case
of any disposition or distribution described in any
paragraph of section 1445(e), each rate of tax in such
paragraph (or any rate of tax applicable in lieu of
such statutory rate) shall be increased by the
applicable number of percentage points if--
``(i) in the case of section 1445(e)(1),
the foreign person referred to in subparagraph
(A) or (B) of such section is an applicable
person,
``(ii) in the case of section 1445(e)(2),
the foreign corporation referred to in such
section is an applicable person,
``(iii) in the case of section 1445(e)(3),
the foreign shareholder referred to in such
section is an applicable person,
``(iv) in the case of section 1445(e)(4),
the foreign person referred to in such section
is an applicable person,
``(v) in the case of section 1445(e)(5),
the Secretary issues regulations or other
guidance providing for such increase, and
``(vi) in the case of section 1445(e)(6),
the nonresident alien individual or foreign
corporation referred to in such section is an
applicable person.
``(4) Applicable number of percentage points.--For purposes
of this paragraph--
``(A) In general.--The term `applicable number of
percentage points' means, with respect to any
discriminatory foreign country--
``(i) with respect to the 1-year period
beginning on the applicable date with respect
to such foreign country, 5 percentage points,
and
``(ii) with respect to any period after the
1-year period to which clause (i) applies, the
sum of --
``(I) 5 percentage points, plus
``(II) an additional 5 percentage
points for each annual anniversary of
such applicable date which has occurred
before the beginning of such period.
``(B) Cap on increase.--Notwithstanding
subparagraph (A), the increase in any rate under
paragraph (1) or (3) shall not result in such rate
exceeding the amount of the statutory rate (determined
without regard to any rate applicable in lieu of such
statutory rate) increased by 20 percentage points.
``(C) Applicable date.--For purposes of this
section, the term `applicable date' means, with respect
to any discriminatory foreign country, the first day of
the first calendar year beginning on or after the
latest of--
``(i) 90 days after the date of enactment
of this section,
``(ii) 180 days after the date of enactment
of the unfair foreign tax that causes such
country to be treated as a discriminatory
foreign country, or
``(iii) the first date that an unfair
foreign tax of such country begins to apply.
``(D) Application to taxable years.--For purposes
of paragraph (1), the applicable number of percentage
points is the applicable number of percentage points in
effect for the discriminatory foreign country during
the taxpayer's taxable year. If more than one
applicable number of percentage points is in effect for
the discriminatory foreign country during the
taxpayer's taxable year, the applicable number of
percentage points shall be determined by using a
weighted average rate based on each applicable number
of percentage points in effect during such taxable year
and the number of days during which it was in effect.
For purposes of the prior sentence, the applicable
number of percentage points in effect for the
discriminatory foreign country for the period before
the applicable date is treated as zero, and, if the
taxpayer ceases to be an applicable person during its
taxable year, the applicable number of percentage
points in effect for the discriminatory foreign country
for the period after the taxpayer ceased to be an
applicable person is treated as zero.
``(E) Application to withholding taxes.--For
purposes of paragraph (3), the applicable number of
percentage points shall be determined with respect to
the date of the payment or disposition, as the case may
be.
``(F) Multiple discriminatory foreign countries.--
For purposes of paragraphs (1) and (3), if, on any day,
the taxpayer is an applicable person with respect to
more than one discriminatory foreign country, the
highest applicable number of percentage points in
effect shall apply.
``(G) Increase not applicable to nondiscriminatory
foreign countries.--In the case of any foreign country
which is not a discriminatory foreign country, the
applicable number of percentage points is zero.
``(5) Years to which applicable.--
``(A) Taxable year.--In the case of any person,
paragraphs (1) and (2) shall apply to each taxable year
beginning--
``(i) after the later of--
``(I) 90 days after the date of
enactment of this section,
``(II) 180 days after the date of
enactment of the unfair foreign tax
that causes such country to be treated
as a discriminatory foreign country, or
``(III) the first date that an
unfair foreign tax of such country
begins to apply, and
``(ii) before the last date on which the
discriminatory foreign country imposes an
unfair foreign tax.
``(B) Withholding.--In the case of any person,
paragraph (3) shall apply to each calendar year
beginning during the period that such person is an
applicable person.
``(C) Safe harbor for withholding.--Paragraph (3)
shall not apply--
``(i) in the case of any applicable person
to which clause (ii) does not apply, if the
discriminatory foreign country with respect to
which such person is an applicable person is
not listed by the Secretary as a discriminatory
foreign country, and
``(ii) in the case of any applicable person
described in subparagraph (E) or (F) of
subsection (b)(1), if the discriminatory
foreign country with respect to which such
person is an applicable person (and such
country's applicable date) has been listed in
such guidance for less than 90 days.
``(D) Temporary safe harbor for withholding
agents.--No penalties or interest shall be imposed with
respect to failures, before January 1, 2027, to deduct
or withhold any amounts by reason of paragraph (3) if
the person required to deduct or withhold such amounts
demonstrates to the satisfaction of the Secretary that
such person made best efforts to comply with paragraph
(3) in a timely manner.
``(b) Applicable Person.--For purposes of this section--
``(1) In general.--Except as otherwise provided by the
Secretary, the term `applicable person' means--
``(A) any government (within the meaning of section
892) of any discriminatory foreign country,
``(B) any individual (other than a citizen or
resident of the United States) who is tax resident of a
discriminatory foreign country,
``(C) any foreign corporation (other than a United
States-owned foreign corporation, as defined in section
904(h)(6)) which is a tax resident of a discriminatory
foreign country,
``(D) any private foundation (within the meaning of
section 4948) created or organized in a discriminatory
foreign country,
``(E) any foreign corporation (other than a
publicly held corporation) if more than 50 percent of--
``(i) the total combined voting power of
all classes of stock of such corporation
entitled to vote, or
``(ii) the total value of the stock of such
corporation,
is owned (within the meaning of section 958(a)) by
persons described in this paragraph,
``(F) any trust the majority of the beneficial
interests of which are held (directly or indirectly) by
persons described in this paragraph, and
``(G) foreign partnerships, branches, and any other
entity identified with respect to a discriminatory
foreign country by the Secretary for purposes of this
subsection.
``(2) Continuation of treatment during certain periods.--
For purposes of this section, if a person would cease to be an
applicable person for a period of less than one year, such
person shall continue to be treated as an applicable person
during such period.
``(c) Unfair Foreign Tax.--For purposes of this section--
``(1) In general.--The term `unfair foreign tax' means an
undertaxed profits rule (UTPR), digital services tax, diverted
profits tax, and, to the extent provided by the Secretary, an
extraterritorial tax, discriminatory tax, or any other tax
enacted with a public or stated purpose indicating the tax will
be economically borne, directly or indirectly,
disproportionately by United States persons. Such term shall
not include any tax which neither applies to--
``(A) any United States person (including a trade
or business of a United States person), nor
``(B) any foreign corporation (including a trade or
business of such foreign corporation) if the foreign
corporation is a controlled foreign corporation and
more than 50 percent of the total combined voting power
of all classes of stock of such corporation entitled to
vote, or the total value of the stock of such
corporation) is owned (within the meaning of section
958(a)) by United States persons.
``(2) Extraterritorial tax.--The term `extraterritorial
tax' means any tax imposed by a foreign country on a
corporation (including any trade or business of such
corporation) which is determined by reference to any income or
profits received by any person (including any trade or business
of any person) by reason of such person being connected to such
corporation through any chain of ownership, determined without
regard to the ownership interests of any individual, and other
than by reason of such corporation having a direct or indirect
ownership interest in such person.
``(3) Discriminatory tax.--The term `discriminatory tax'
means any tax imposed by a foreign country if--
``(A) such tax applies more than incidentally to
items of income that would not be considered to be from
sources, or effectively connected to a trade or
business, within the foreign country under the rules of
part I of this subchapter if such part were applied by
treating such foreign country as though it were the
United States,
``(B) such tax is imposed on a base other than net
income and is not computed by permitting recovery of
costs and expenses,
``(C) such tax is exclusively or predominantly
applicable, in practice or by its terms, to nonresident
individuals and foreign corporations or partnerships
(as determined under rules similar to paragraphs (4)
and (5) of section 7701(a) by treating the foreign
country as though it were the United States) because of
the application of revenue thresholds, exemptions or
exclusions for taxpayers subject to such foreign
country's corporate income tax, or restrictions of
scope that ensure that substantially all residents
(other than foreign corporations and partnerships (as
so determined)) supplying comparable goods or services
are excluded from the application of such tax, or
``(D) such tax is not treated as an income tax
under the laws of such foreign country or is otherwise
treated by such foreign country as outside the scope of
any agreements that are in force between such foreign
country and one or more other jurisdictions for the
avoidance of double taxation with respect to taxes on
income.
``(4) Exceptions.--Except as otherwise provided by the
Secretary, the terms `extraterritorial tax' and `discriminatory
tax' shall not include any generally applicable tax which
constitutes--
``(A) an income tax generally imposed on the income
of citizens or residents of the foreign country, even
if the computation of income includes payments that
would be foreign source income under part I of this
subchapter,
``(B) an income tax which would be an unfair
foreign tax (determined without regard to this
subparagraph) solely because it is imposed on the
income of nonresidents attributable to a trade or
business in such foreign country,
``(C) an income tax which would be an unfair
foreign tax (determined without regard to this
subparagraph) solely because it is imposed on citizens
or residents of such foreign country by reference to
the income of a corporate subsidiary of such person,
``(D) a withholding tax, or other gross basis tax,
on any amount described in section 871(a)(1) or 881(a),
other than any withholding tax, or other gross basis
tax, imposed with respect to services performed by
persons other than individuals,
``(E) a value added tax, goods and services tax,
sales tax, or other similar tax on consumption,
``(F) a tax imposed with respect to transactions on
a per-unit or per-transaction basis rather than on an
ad valorem basis,
``(G) a tax on real or personal property, an estate
tax, a gift tax, other similar tax,
``(H) a tax which would not be an extraterritorial
tax or discriminatory tax (determined without regard to
this subparagraph) except by reason of consolidation or
loss sharing rules that generally apply only with
respect to income of tax residents of the foreign
country, or
``(I) any other tax identified by the Secretary for
purposes of this paragraph.
``(d) Other Definitions.--For purposes of this section--
``(1) Discriminatory foreign country.--The term
`discriminatory foreign country' means any foreign country
which has one or more unfair foreign taxes.
``(2) Foreign country.--The term `foreign country' means a
foreign country (or political subdivision thereof) or a
dependent territory or possession of a foreign country. Such
term does not include any possession of the United States.
``(3) Tax.--The term `tax' includes any increase in tax
whether effectuated by an increase in the rate or base of a
tax, by a denial of deductions or credits, or otherwise.
``(e) Regulations and Other Guidance.--The Secretary shall issue
such regulations or other guidance as may be necessary or appropriate
to carry out the purposes of this section, including regulations or
other guidance which--
``(1) provide for such adjustments to the application of
this section as are necessary to prevent the avoidance of the
purposes of this section, including the application of this
section (including subsections (b)(1)(E) and (c)(2)(A)(ii))
with respect to branches, partnerships, and other entities
(whether or not otherwise disregarded for purposes of this
chapter),
``(2) list the discriminatory foreign countries (and each
such country's applicable date) in guidance, and update such
guidance on a quarterly basis,
``(3) provide notice to Congress with respect to changes to
the list under paragraph (2),
``(4) exercise the authority to provide exceptions under
subsections (b)(1), (c)(4), and
``(5) prevent the application of subsection (a)(2)(D) from
resulting in double counting of amounts for purposes of section
59A(c)(4)(A)(ii).''.
(b) Clerical Amendment.--The table of sections for subpart D of
part II of subchapter N of chapter 1 is amended by adding at the end
the following new item:
``Sec. 899. Enforcement of remedies against unfair foreign taxes.''.
SEC. 112030. REDUCTION OF EXCISE TAX ON FIREARMS SILENCERS.
(a) In General.--Section 5811(a) is amended to read as follows:
``(a) Rate.--There shall be levied, collected, and paid on firearms
transferred a tax at the rate of--
``(1) $5 for each firearm transferred in the case of a
weapon classified as any other weapon under section 5845(e),
``(2) $0 for each firearm transferred in the case of a
silencer (as defined in section 5845(a)(7)), and
``(3) $200 for any other firearm transferred.''.
(b) Effective Date.--The amendment made by this section shall apply
to transfers after the date of the enactment of this Act.
SEC. 112031. 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 law, shall be assessed, in addition to any other penalty
permitted by law, a civil penalty of up to $5,000 for the first
violation and up to $10,000 for each subsequent violation.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect 30 days after the date of the enactment of
this Act.
(b) Repeal of Commercial Shipment Exception.--
(1) Repeal.--Section 321(a)(2)(B) of such Act (19 U.S.C.
1321(a)(2)(B)) is amended by striking ``of this Act, or'' and
all that follows through ``subdivision (2); and'' and inserting
``of this Act; and''.
(2) Conforming repeal.--Subsection (c) of such section 321,
as added by subsection (a) of this section, is repealed.
(3) Effective date.--The amendments made by this subsection
shall take effect on July 1, 2027.
SEC. 112032. LIMITATION ON DRAWBACK OF TAXES PAID WITH RESPECT TO
SUBSTITUTED MERCHANDISE.
Effective for claims filed on or after July 1, 2026, for purposes
of drawback of internal revenue tax imposed under chapter 52 of the
Internal Revenue Code of 1986, the amount of drawback granted under
such Code, or the Tariff Act of 1930, on the export or destruction of
substituted merchandise may not exceed the amount of taxes paid (and
not returned by refund, credit, or drawback) on the substituted
merchandise.
PART 2--REMOVING TAXPAYER BENEFITS FOR ILLEGAL IMMIGRANTS
SEC. 112101. PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN
INDIVIDUALS.
(a) In General.--Section 36B(e)(1) is amended by inserting ``or, in
the case of aliens who are lawfully present, are not eligible aliens''
after ``individuals who are not lawfully present''.
(b) Eligible Aliens.--Section 36B(e)(2) is amended--
(1) by striking ``For purposes of this section, an
individual'' and inserting the following: ``For purposes of
this section--
``(A) In general.--An individual'', and
(2) by adding at the end the following new subparagraph:
``(B) Eligible aliens.--An individual who is an
alien and lawfully present shall be treated as an
eligible alien if and only if such individual is, and
is reasonably expected to be for the entire period of
enrollment for which the credit under this section is
being claimed--
``(i) an alien who is lawfully admitted for
permanent residence under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.),
``(ii) an alien who--
``(I) is a citizen or national of
the Republic of Cuba,
``(II) is the beneficiary of an
approved petition under section 203(a)
of the Immigration and Nationality Act
(8 U.S.C. 1153(a)),
``(III) meets all eligibility
requirements for an immigrant visa but
for whom such a visa is not immediately
available,
``(IV) is not otherwise
inadmissible under section 212(a) of
such Act (8 U.S.C. 1182(a)), and
``(V) is physically present in the
United States pursuant to a grant of
parole in furtherance of the commitment
of the United States to the minimum
level of annual legal migration of
Cuban nationals to the United States
specified in the U.S.-Cuba Joint
Communique on Migration, done at New
York September 9, 1994, and reaffirmed
in the Cuba-United States: Joint
Statement on Normalization of
Migration, Building on the Agreement of
September 9, 1994, done at New York May
2, 1995, or
``(iii) an individual who lawfully resides
in the United States in accordance with a
Compact of Free Association referred to in
section 402(b)(2)(G) of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C.
1612(b)(2)(G)).''.
(c) Conforming Amendments.--
(1) Verification of information.--Section 1411 of the
Patient Protection and Affordable Care Act (42 U.S.C. 18081) is
amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``and
section 36B(e) of the Internal Revenue Code of
1986''; and
(ii) in paragraph (2)--
(I) in subparagraph (A), by
striking ``and'' at the end;
(II) in subparagraph (B), by adding
``and'' at the end; and
(III) by adding at the end the
following new subparagraph:
``(C) in the case such individual is an alien
lawfully present in the United States, whether such
individual is an eligible alien (within the meaning of
section 36B(e)(2) of such Code);'';
(B) in subsection (b)(3), by adding at the end the
following new subparagraph:
``(D) Immigration status.--In the case the
individual's eligibility is based on an attestation of
the enrollee's immigration status, an attestation that
such individual is an eligible alien (within the
meaning of 36B(e)(2) of the Internal Revenue Code of
1986).''; and
(C) in subsection (c)(2)(B)(ii), by adding at the
end the following new subclause:
``(III) In the case of an
individual described in clause (i)(I)
with respect to whom a premium tax
credit or reduced cost-sharing under
section 36B of the Internal Revenue
Code of 1986 or section 1402 is being
claimed, the attestation that the
individual is an eligible alien (within
the meaning of section 36B(e)(2) of
such Code).''.
(2) Advance determinations.--Section 1412(d) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18082(d)) is
amended by inserting before the period at the end the
following: ``or, in the case of aliens who are lawfully
present, are not eligible aliens (within the meaning of section
36B(e)(2) of the Internal Revenue Code of 1986)''.
(3) Cost-sharing reductions.--Section 1402(e) of the
Patient Protection and Affordable Care Act (42 U.S.C. 18071(e))
is amended--
(A) in the header, by inserting ``or Not Eligible
Aliens'' after ``Individuals Not Lawfully Present'';
(B) in paragraph (1), in the matter preceding
subparagraph (A), by inserting ``or, in the case of an
alien who is lawfully present, is not an eligible alien
(within the meaning of section 36B(e)(2) of the
Internal Revenue Code of 1986)'' after ``not lawfully
present''; and
(C) by amending paragraph (2) to read as follows:
``(2) Eligible aliens.--For purposes of this section, an
individual shall be treated as an eligible alien (within the
meaning of section 36B(e)(2) of the Internal Revenue Code of
1986) if, and only if, the individual is, and for the entire
period of enrollment for which the cost-sharing reduction under
this section is being claimed is reasonably expected to be,
such an alien.''.
(4) Basic health programs.--Section 1331(e)(1) of the
Patient Protection and Affordable Care Act (42 U.S.C.
18051(e)(1)) is amended by inserting before the period at the
end the following: ``or, in the case of an alien who is
lawfully present, an individual who is not an eligible alien
(as defined in section 36B(e)(2) of the Internal Revenue Code
of 1986''.
(5) Effective date.--The amendments made by this subsection
shall apply with respect to plan years beginning on or after
January 1, 2027.
(d) Clerical Amendments.--
(1) The heading for section 36B(e) is amended by inserting
``and Not Eligible Aliens'' after ``Individuals Not Lawfully
Present''.
(2) The heading for section 36B(e)(2) is amended by
inserting ``; eligible aliens'' after ``Lawfully present''.
(e) Requirement to Maintain Minimum Essential Coverage.--Section
5000A(d)(3) is amended by striking ``an alien lawfully present in the
United States'' and inserting ``an eligible alien (within the meaning
of section 36B(e)(2))''.
(f) Regulations.--The Secretary of the Treasury and the Secretary
of Health and Human Services may each prescribe such rules and other
guidance as may be necessary or appropriate to carry out the amendments
made by this section.
(g) Effective Date.--The amendments made by this section (other
than the amendments made by subsection (c)) shall apply to taxable
years beginning after December 31, 2026.
SEC. 112102. CERTAIN ALIENS TREATED AS INELIGIBLE FOR PREMIUM TAX
CREDIT.
(a) In General.--Section 36B(e)(2), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new subparagraph:
``(C) Eligible aliens.--Notwithstanding
subparagraph (B), an individual who is an alien and
lawfully present shall be treated as an eligible alien
if and only if such individual is not, and is
reasonably expected not to be for the entire period of
enrollment for which the credit under this section is
being claimed--
``(i) an alien granted, or with a pending
application for, asylum under section 208 of
the Immigration and Nationality Act,
``(ii) an alien granted parole under
section 212(d)(5) or 236(a)(2)(B) of the
Immigration and Nationality Act,
``(iii) an alien granted temporary
protected status under section 244 of the
Immigration and Nationality Act,
``(iv) an alien granted deferred action or
deferred enforced departure, or
``(v) an alien granted withholding of
removal under section 241(b)(3) of the
Immigration and Nationality Act.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2026.
SEC. 112103. DISALLOWING PREMIUM TAX CREDIT DURING PERIODS OF MEDICAID
INELIGIBILITY DUE TO ALIEN STATUS.
(a) In General.--Section 36B(c)(1) is amended by striking
subparagraph (B) and by redesignating subparagraphs (C), (D), and (E)
as subparagraphs (B), (C), and (D), respectively.
(b) Conforming Amendments.--
(1) Section 36B(g)(4)(A) is amended by striking
``subsection (c)(1)(C)'' and inserting ``subsection
(c)(1)(B)''.
(2) Section 1331(e)(1)(B) of the Patient Protection and
Affordable Care Act (42 U.S.C. 18051(e)(1)(B)) is amended by
striking ``, or, in the case of'' and all that follows through
``such alien status''.
(3) Section 1402(b) of such Act (42 U.S.C. 18071(b)) is
amended by striking the second sentence.
(c) Regulations.--The Secretary of the Treasury and the Secretary
of Health and Human Services may each prescribe such rules and other
guidance as may be necessary or appropriate to carry out the amendments
made by this section.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 112104. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS.
Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is
amended by adding at the end the following new section:
``SEC. 1899C. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS.
``(a) In General.--Notwithstanding section 226, section 226A,
section 401 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, or any other provision of this title, but
subject to subsection (b), an individual may be entitled to, or
enrolled for, benefits under this title only if the individual is--
``(1) a citizen or national of the United States;
``(2) an alien who is lawfully admitted for permanent
residence under the Immigration and Nationality Act;
``(3) an alien who--
``(A) is a citizen or national of the Republic of
Cuba;
``(B) is the beneficiary of an approved petition
under section 203(a) of the Immigration and Nationality
Act;
``(C) meets all eligibility requirements for an
immigrant visa but for whom such a visa is not
immediately available;
``(D) is not otherwise inadmissible under section
212(a) of such Act; and
``(E) is physically present in the United States
pursuant to a grant of parole in furtherance of the
commitment of the United States to the minimum level of
annual legal migration of Cuban nationals to the United
States specified in the U.S.-Cuba Joint Communique on
Migration, done at New York September 9, 1994, and
reaffirmed in the Cuba-United States: Joint Statement
on Normalization of Migration, Building on the
Agreement of September 9, 1994, done at New York May 2,
1995; or
``(4) an individual who lawfully resides in the United
States in accordance with a Compact of Free Association
referred to in section 402(b)(2)(G) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996.
``(b) Application to Individuals Currently Entitled to or Enrolled
for Benefits.--
``(1) In general.--In the case of an individual who is
entitled to, or enrolled for, benefits under this title as of
the date of the enactment of this section, subsection (a) shall
apply beginning on the date that is 1 year after such date of
enactment.
``(2) Review by commissioner of social security.--
``(A) In general.--Not later than 6 months after
the date of the enactment of this section, the
Commissioner of Social Security shall complete a review
of individuals entitled to, or enrolled for, benefits
under this title as of such date of enactment for
purposes of identifying individuals not described in
any of paragraphs (1) through (4) of subsection (a).
``(B) Notice.--The Commissioner of Social Security
shall notify each individual identified under the
review conducted under subparagraph (A) that such
individual's entitlement to, or enrollment for,
benefits under this title will be terminated as of the
date that is 1 year after the date of the enactment of
this section. Such notification shall be made as soon
as practicable after such identification and in a
manner designed to ensure such individual's
comprehension of such notification.''.
SEC. 112105. EXCISE TAX ON REMITTANCE TRANSFERS.
(a) In General.--Chapter 36 is amended by inserting after
subchapter B the following new subchapter:
``Subchapter C--Remittance Transfers
``Sec. 4475. Imposition of tax.
``SEC. 4475. IMPOSITION OF TAX.
``(a) In General.--There is hereby imposed on any remittance
transfer a tax equal to 5 percent of the amount of such transfer.
``(b) Payment of Tax.--
``(1) In general.--The tax imposed by this section with
respect to any remittance transfer shall be paid by the sender
with respect to such transfer.
``(2) Collection.--The remittance transfer provider with
respect to any remittance transfer shall collect the amount of
the tax imposed under subsection (a) with respect to such
transfer from the sender and remit such tax quarterly to the
Secretary at such time and in such manner as provided by the
Secretary.
``(3) Secondary liability.--Where any tax imposed by
subsection (a) is not paid at the time the transfer is made,
then to the extent that such tax is not collected, such tax
shall be paid by the remittance transfer provider.
``(c) Exception for Remittance Transfers Sent by Citizens and
Nationals of the United States Through Certain Providers.--
``(1) In general.--Subsection (a) shall not apply to any
remittance transfer with respect to which the remittance
transfer provider is a qualified remittance transfer provider
and the sender is a verified United States sender.
``(2) Qualified remittance transfer provider.--For purposes
of this subsection, the term `qualified remittance transfer
provider' means any remittance transfer provider which enters
into a written agreement with the Secretary pursuant to which
such provider agrees to verify the status of senders as
citizens or nationals of the United States in such manner, and
in accordance with such procedures, as the Secretary may
specify.
``(3) Verified united states sender.--For purposes of this
subsection, the term `verified United States sender' means any
sender who is verified by a qualified remittance transfer
provider as being a citizen or national of the United States
pursuant to an agreement described in paragraph (2).
``(d) Definitions.--For purposes of this section, the terms
`remittance transfer', `remittance transfer provider', `designated
recipient', and `sender' shall each have the respective meanings given
such terms by section 920(g) of the Electronic Fund Transfer Act (15
U.S.C. 1693o-1; relating to ``Remittance Transfers'').
``(e) Application of Anti-conduit Rules.--For purposes of section
7701(l) with respect to any multiple-party arrangements involving the
sender, a remittance transfer shall be treated as a financing
transaction.''.
(b) Refundable Income Tax Credit Allowed to Citizens and Nationals
of the United States for Excise Tax on Remittance Transfers.--Subpart C
of part IV of subchapter A of chapter 1 is amended by inserting after
section 36B the following new section:
``SEC. 36C. CREDIT FOR EXCISE TAX ON REMITTANCE TRANSFERS OF CITIZENS
AND NATIONALS OF THE UNITED STATES.
``(a) In General.--In the case of any individual, there shall be
allowed as a credit against the tax imposed by this subtitle for any
taxable year an amount equal to the aggregate amount of taxes paid by
such individual under section 4475 during such taxable year.
``(b) Social Security Number Requirement.--
``(1) In general.--No credit shall be allowed under this
section unless the taxpayer includes on the return of tax for
the taxable year--
``(A) the individual's social security number, and
``(B) if the individual is married, the social
security number of such individuals's spouse.
``(2) Social security number.--For purposes of this
subsection, the term `social security number' has the meaning
given such term in section 24(h)(7).
``(3) Married individuals.--Rules similar to the rules of
section 32(d) shall apply to this section.
``(c) Substantiation Requirements.--No credit shall be allowed
under this section unless the taxpayer demonstrates to the satisfaction
of the Secretary that the tax under section 4475 with respect to which
such credit is determined--
``(1) was paid by the taxpayer, and
``(2) is with respect to a remittance transfer with respect
to which the taxpayer provided to the remittance transfer
provider the certification and information referred to in
section 6050AA(a)(2).
``(d) Definitions.--Any term used in this section which is also
used in section 4475 shall have the meaning given such term in section
4475.
``(e) Application of Anti-conduit Rules.--For rules providing for
the application of the anti-conduit rules of section 7701(l) to
remittance transfers, see section 4475(e).''.
(c) Reporting by Remittance Transfer Providers.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by adding at the end the following new
section:
``SEC. 6050AA. RETURNS RELATING TO REMITTANCE TRANSFERS.
``(a) In General.--Each remittance transfer provider shall make a
return at such time as the Secretary may provide setting forth--
``(1) in the case of a qualified remittance transfer
provider with respect to remittance transfers to which section
4475(a) does not apply by reason of section 4475(c), the
aggregate number and value of such transfers,
``(2) in the case of any remittance transfer not described
in paragraph (1) and with respect to which the sender certifies
to the remittance transfer provider an intent to claim the
credit under section 36C and provides the information described
in paragraph (1)--
``(A) the name, address, and social security number
of the sender,
``(B) the amount of tax paid by the sender under
section 4475(b)(1), and
``(C) the amount of tax remitted by the remittance
transfer provider under section 4475(b)(2), and
``(3) in the case of any remittance transfer not included
under paragraph (1) or (2)--
``(A) the aggregate amount of tax paid under
section 4475(b)(1) with respect to such transfers, and
``(B) the aggregate amount of tax remitted under
section 4475(b)(2) with respect to such transfers.
``(b) Statement to Be Furnished to Named Persons.--Every person
required to make a return under subsection (a) shall furnish, at such
time as the Secretary may provide, to each person whose name is
required to be set forth in such return a written statement showing--
``(1) the name and address of the information contact of
the required reporting person, and
``(2) the information described in subsection (a)(2) which
relates to such person.
``(c) Definitions.--Any term used in this section which is also
used in section 4475 shall have the meaning given such term in such
section.''.
(2) Penalties.--Section 6724(d), as amended by the
preceding provisions of this Act, is amended--
(A) in paragraph (1)(B), by striking ``or'' at the
end of clause (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 remittance transfers),
and'', and
(B) in paragraph (2), by striking ``or'' at the end
of subparagraph (MM), by striking the period at the end
of subparagraph (NN) and inserting ``, or'', and by
inserting after subparagraph (NN) the following new
subparagraph:
``(OO) section 6050AA(b) (relating to statements
relating to remittance transfers).''.
(d) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by inserting ``36C,''
after ``36B,''.
(2) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended by striking ``and'' at the
end of subparagraph (Z), by the striking the period at the end
of subparagraph (AA) and inserting ``, and'', and by inserting
after subparagraph (AA) the following new subparagraph:
``(BB) an omission of a correct social security
number under section 36C(b) to be included on a
return.''.
(3) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36C,'' after ``36B,''.
(4) The table of sections for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 36B the following new item:
``Sec. 36C. Credit for excise tax on remittance transfers of citizens
and nationals of the United States.''.
(5) The table of sections for subpart B of part III of
subchapter A of chapter 61 is amended by adding at the end the
following new item:
``Sec. 6050AA. Returns relating to remittance transfers.''.
(6) The table of subchapters for chapter 36 is amended by
inserting after the item relating to subchapter B the following
new item:
``subchapter c--remittance transfers''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
transfers made after December 31, 2025.
(2) Tax credit.--The amendments made by subsection (b), and
paragraphs (1) through (4) of subsection (d), shall apply to
taxable years ending after December 31, 2025.
SEC. 112106. SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN
OPPORTUNITY AND LIFETIME LEARNING CREDITS.
(a) Social Security Number of Taxpayer Required.--Section 25A(g)(1)
is amended to read as follows:
``(1) Identification requirement.--
``(A) Social security number requirement.--No
credit shall be allowed under subsection (a) to a
taxpayer unless the taxpayer includes on the return of
tax for the taxable year--
``(i) such individual's social security
number,
``(ii) if the individual is married, the
social security number of such individual's
spouse, and
``(iii) in the case of a credit with
respect to the qualified tuition and related
expenses of an individual other than the
taxpayer or the taxpayer's spouse, the name and
social security number of such individual.
``(B) Institution.--No American Opportunity Tax
Credit shall be allowed under this section unless the
taxpayer includes the employer identification number of
any institution to which the taxpayer paid qualified
tuition and related expenses taken into account under
this section on the return of tax for the taxable year.
``(C) Social security number defined.--For purposes
of this paragraph, the term `social security number'
shall have the meaning given such term in section
24(h)(7).''.
(b) Rules Related to Married Individuals.--Section 25A(g)(6) is
amended to read as follows:
``(6) Rules related to married individuals.--Rules similar
to the rules of section 32(d) shall apply to this section.''.
(c) Omission Treated as Mathematical or Clerical Error.--Section
6213(g)(2)(J) is amended by striking ``TIN'' and inserting ``social
security number or employer identification number''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
PART 3--PREVENTING FRAUD, WASTE, AND ABUSE
SEC. 112201. REQUIRING EXCHANGE VERIFICATION OF ELIGIBILITY FOR HEALTH
PLAN.
(a) In General.--Section 36B(c) is amended by adding at the end the
following new paragraphs:
``(5) Exchange enrollment verification requirement.--
``(A) In general.--The term `coverage month' shall
not include, with respect to any individual covered by
a qualified health plan enrolled in through an
Exchange, any month beginning before the Exchange
verifies, using applicable enrollment information that
shall be provided or verified by the applicant, such
individual's eligibility--
``(i) to enroll in the plan through the
Exchange,
``(ii) for any advance payment under
section 1412 of the Patient Protection and
Affordable Care Act of the credit allowed under
this section, and
``(iii) for any reduced cost-sharing under
section 1402 of such Act.
``(B) Applicable enrollment information.--For
purposes of subparagraph (A), applicable enrollment
information shall at least include affirmation of the
following information (to the extent relevant in
determining eligibility described in subparagraph (A)):
``(i) Income.
``(ii) Any immigration status.
``(iii) Any health coverage status or
eligibility for coverage.
``(iv) Place of residence.
``(v) Family size.
``(vi) Such other information as may be
determined by the Secretary (in consultation
with the Secretary of Health and Human
Services) as necessary to the verification
prescribed under subparagraph (A).
``(C) Verification of past months.--In the case of
a month that begins before verification prescribed by
subparagraph (A), such month shall be treated as a
coverage month if, and only if, the Exchange verifies
for such month (using applicable enrollment information
that shall be provided or verified by the applicant)
such individual's eligibility to have so enrolled, for
any such advance payment, and for any such reduced
cost-sharing.
``(D) Exchange participation; coordination with
other procedures for determining eligibility.--An
individual shall not, solely by reason of failing to
meet the requirements of this paragraph with respect to
a month, be treated for such month as ineligible to
enroll in a qualified health plan through an Exchange.
``(6) Exchange compliance with filing requirements.--The
term `coverage month' shall not include, with respect to any
individual covered by a qualified health plan enrolled in
through an Exchange, any month for which the Exchange does not
meet the requirements of section 155.305(f)(4) of title 45,
Code of Federal Regulations (as published in the Federal
Register on March 19, 2025 (90 FR 12942)), with respect to the
individual.''.
(b) Pre-enrollment Verification Process Required.--Section
36B(c)(3)(A) is amended--
(1) by striking ``health plan.--The term'' and inserting
the following: ``health plan.--
``(i) In general.--The term'', and
(2) by adding at the end the following new clause:
``(ii) Pre-enrollment verification process
required.--Such term shall not include any plan
enrolled in through an Exchange, unless such
Exchange provides a process for pre-enrollment
verification through which any applicant may,
beginning not later than August 1, verify with
the Exchange the applicant's eligibility for
enrollment in such plan for plan years
beginning in the subsequent year, for any
advance payment of the credit allowed under
this section, and for reduced cost-sharing
under section 1402 of the Patient Protection
and Affordable Care Act.''.
(c) Regulations.--The Secretary of the Treasury and the Secretary
of Health and Human Services may each prescribe such rules and other
guidance as may be necessary or appropriate to carry out the amendments
made by this section.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2027.
SEC. 112202. DISALLOWING PREMIUM TAX CREDIT IN CASE OF CERTAIN COVERAGE
ENROLLED IN DURING SPECIAL ENROLLMENT PERIOD.
(a) In General.--Section 36B(c)(3)(A), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new clause:
``(iii) Exception in case of certain
special enrollment periods.--Such term shall
not include any plan enrolled in during a
special enrollment period provided for by an
Exchange--
``(I) on the basis of the
relationship of the individual's
expected household income to such a
percentage of the poverty line (or such
other amount) as is prescribed by the
Secretary of Health and Human Services
for purposes of such period, and
``(II) not in connection with the
occurrence of an event or change in
circumstances specified by the
Secretary of Health and Human Services
for such purposes.''.
(b) Regulations.--The Secretary of Treasury and the Secretary of
Health and Human Services shall prescribe such rules (including interim
final and temporary regulations) and other guidance as may be necessary
to carry out the purposes of the amendments made by this section.
(c) Effective Date.--The amendments made by this section shall
apply with respect to plans enrolled in during calendar months
beginning after the third calendar month ending after the date of the
enactment of this Act.
SEC. 112203. ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT OF
PREMIUM TAX CREDIT.
(a) In General.--Section 36B(f)(2) is amended by striking
subparagraph (B).
(b) Conforming Amendments.--
(1) Section 36B(f)(2) is amended by striking ``advance
payments.--'' and all that follows through ``If the advance
payments'' and inserting the following: ``advance payments.--If
the advance payments''.
(2) Section 35(g)(12)(B)(ii) is amended by striking ``then
section 36B(f)(2)(B) shall be applied by substituting the
amount determined under clause (i) for the amount determined
under section 36B(f)(2)(A)'' and inserting ``then the amount
determined under clause (i) shall be substituted for the amount
determined under section 36B(f)(2)''.
(c) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 112204. IMPLEMENTING ARTIFICIAL INTELLIGENCE TOOLS FOR PURPOSES OF
REDUCING AND RECOUPING IMPROPER PAYMENTS UNDER MEDICARE.
(a) In General.--Part E of title XVIII of the Social Security Act
(42 U.S.C. 1395x et seq.), as amended by the preceding provisions of
this Act, is amended by adding at the end the following new section:
``SEC. 1899D. IMPLEMENTING ARTIFICIAL INTELLIGENCE TOOLS FOR PURPOSES
OF REDUCING AND RECOUPING IMPROPER PAYMENTS.
``(a) In General.--Not later than January 1, 2027, the Secretary
shall implement such artificial intelligence tools determined
appropriate by the Secretary for purposes of--
``(1) reducing improper payments made under parts A and B;
and
``(2) identifying any such improper payments so made.
``(b) Contracts.--The Secretary shall seek to contract with a
vendor of artificial intelligence tools and with data scientists for
purposes of implementing the artificial intelligence tools required
under subsection (a).
``(c) Recoupment.--The Secretary shall, to the extent practicable,
recoup payments identified using the artificial intelligence tools
implemented under subsection (a).
``(d) Report.--Not later than January 1, 2029, and not less
frequently than annually thereafter, the Secretary shall report to
Congress on the implementation of artificial intelligence tools under
subsection (a) and the recoupment of improper payments under subsection
(c). Such report shall include--
``(1) a description of any opportunities for further
reducing rates of improper payments described in subsection
(a)(1) or further increasing rates of recoupment of such
payments;
``(2) the total dollar amount of improper payments recouped
in the most recent year for which data is available; and
``(3) in the case that the Secretary fails to reduce the
rate of improper payments by 50 percent in such most recent
year as compared to the year prior to such most recent year, a
description of the reasons for such failure.''.
(b) Implementation Funding.--
(1) Federal hospital insurance trust fund.--The Secretary
of Health and Human Services shall provide for the transfer
from the Federal Hospital Insurance Trust Fund established
under section 1817 of the Social Security Act (42 U.S.C. 1395i)
to the Centers for Medicare & Medicaid Services Program
Management Account of $12,500,000 for fiscal year 2025 for
purposes of carrying out the amendment made by this section, to
remain available until expended.
(2) Federal supplementary medical insurance trust fund.--
The Secretary of Health and Human Services shall provide for
the transfer, from the Federal Supplementary Medical Insurance
Trust Fund established under section 1841 of the Social
Security Act (42 U.S.C. 1395t) to the Centers for Medicare &
Medicaid Services Program Management Account of $12,500,000 for
fiscal year 2025 for purposes of carrying out the amendment
made by this section, to remain available until expended.
SEC. 112205. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID-RELATED
EMPLOYEE RETENTION CREDITS.
(a) Increase in Assessable Penalty on COVID-ERTC Promoters for
Aiding and Abetting Understatements of Tax Liability.--
(1) In general.--If any COVID-ERTC promoter is subject to
penalty under section 6701(a) of the Internal Revenue Code of
1986 with respect to any COVID-ERTC document, notwithstanding
paragraphs (1) and (2) of section 6701(b) of such Code, the
amount of the penalty imposed under such section 6701(a) shall
be the greater of--
(A) $200,000 ($10,000, in the case of a natural
person), or
(B) 75 percent of the gross income derived (or to
be derived) by such promoter with respect to the aid,
assistance, or advice referred to in section 6701(a)(1)
of such Code with respect to such document.
(2) No inference.--Paragraph (1) shall not be construed to
create any inference with respect to the proper application of
the knowledge requirement of section 6701(a)(3) of the Internal
Revenue Code of 1986.
(b) Failure to Comply With Due Diligence Requirements Treated as
Knowledge for Purposes of Assessable Penalty for Aiding and Abetting
Understatement of Tax Liability.--In the case of any COVID-ERTC
promoter, the knowledge requirement of section 6701(a)(3) of the
Internal Revenue Code of 1986 shall be treated as satisfied with
respect to any COVID-ERTC document with respect to which such promoter
provided aid, assistance, or advice, if such promoter fails to comply
with the due diligence requirements referred to in subsection (c)(1).
(c) Assessable Penalty for Failure to Comply With Due Diligence
Requirements.--
(1) In general.--Any COVID-ERTC promoter which provides
aid, assistance, or advice with respect to any COVID-ERTC
document and which fails to comply with due diligence
requirements imposed by the Secretary with respect to
determining eligibility for, or the amount of, any COVID-
related employee retention tax credit, shall pay a penalty of
$1,000 for each such failure.
(2) Due diligence requirements.--Except as otherwise
provided by the Secretary, the due diligence requirements
referred to in paragraph (1) shall be similar to the due
diligence requirements imposed under section 6695(g) of the
Internal Revenue Code of 1986.
(3) Restriction to documents used in connection with
returns or claims for refund.--Paragraph (1) shall not apply
with respect to any COVID-ERTC document unless such document
constitutes, or relates to, a return or claim for refund.
(4) Treatment as assessable penalty, etc.--For purposes of
the Internal Revenue Code of 1986, the penalty imposed under
paragraph (1) shall be treated in the same manner as a penalty
imposed under section 6695(g) of such Code.
(5) Secretary.--For purposes of this subsection, the term
``Secretary'' means the Secretary of the Treasury or the
Secretary's delegate.
(d) Assessable Penalties for Failure to Disclose Information,
Maintain Client Lists, etc.--For purposes of sections 6111, 6112, 6707
and 6708 of the Internal Revenue Code of 1986--
(1) any COVID-related employee retention tax credit
(whether or not the taxpayer claims such COVID-related employee
retention tax credit) shall be treated as a listed transaction
(and as a reportable transaction) with respect to any COVID-
ERTC promoter if such promoter provides any aid, assistance, or
advice with respect to any COVID-ERTC document relating to such
COVID-related employee retention tax credit, and
(2) such COVID-ERTC promoter shall be treated as a material
advisor with respect to such transaction.
(e) COVID-ERTC Promoter.--For purposes of this section--
(1) In general.--The term ``COVID-ERTC promoter'' means,
with respect to any COVID-ERTC document, any person which
provides aid, assistance, or advice with respect to such
document if--
(A) such person charges or receives a fee for such
aid, assistance, or advice which is based on the amount
of the refund or credit with respect to such document
and, with respect to such person's taxable year in
which such person provided such assistance or the
preceding taxable year, the aggregate gross receipts of
such person for aid, assistance, and advice with
respect to all COVID-ERTC documents exceeds 20 percent
of the gross receipts of such person for such taxable
year, or
(B) with respect to such person's taxable year in
which such person provided such assistance or the
preceding taxable year--
(i) the aggregate gross receipts of such
person for aid, assistance, and advice with
respect to all COVID-ERTC documents exceeds 50
percent of the gross receipts of such person
for such taxable year, or
(ii) both--
(I) such aggregate gross receipts
exceeds 20 percent of the gross
receipts of such person for such
taxable year, and
(II) the aggregate gross receipts
of such person for aid, assistance, and
advice with respect to all COVID-ERTC
documents (determined after application
of paragraph (3)) exceeds $500,000.
(2) Exception for certified professional employer
organizations.--The term ``COVID-ERTC promoter'' shall not
include a certified professional employer organization (as
defined in section 7705 of the Internal Revenue Code of 1986).
(3) Aggregation rule.--For purposes of paragraph
(1)(B)(ii)(II), all persons treated as a single employer under
subsection (a) or (b) of section 52 of the Internal Revenue
Code of 1986, or subsection (m) or (o) of section 414 of such
Code, shall be treated as 1 person.
(4) Short taxable years.--In the case of any taxable year
of less than 12 months, paragraph (1) shall be applied with
respect to the calendar year in which such taxable year begins
(in addition to applying to such taxable year).
(f) COVID-ERTC Document.--For purposes of this section, the term
``COVID-ERTC document'' means any return, affidavit, claim, or other
document related to any COVID-related employee retention tax credit,
including any document related to eligibility for, or the calculation
or determination of any amount directly related to any COVID-related
employee retention tax credit.
(g) COVID-related Employee Retention Tax Credit.--For purposes of
this section, the term ``COVID-related employee retention tax credit''
means--
(1) any credit, or advance payment, under section 3134 of
the Internal Revenue Code of 1986, and
(2) any credit, or advance payment, under section 2301 of
the CARES Act.
(h) Limitation on Credit and Refund of COVID-related Employee
Retention Tax Credits.--Notwithstanding section 6511 of the Internal
Revenue Code of 1986 or any other provision of law, no credit or refund
of any COVID-related employee retention tax credit shall be allowed or
made after the date of the enactment of this Act, unless a claim for
such credit or refund is filed by the taxpayer on or before January 31,
2024.
(i) Amendments to Extend Limitation on Assessment.--
(1) In general.--Section 3134(l) is amended to read as
follows:
``(l) Extension of Limitation on Assessment.--
``(1) In general.--Notwithstanding section 6501, the
limitation on the time period for the assessment of any amount
attributable to a credit claimed under this section shall not
expire before the date that is 6 years after the latest of--
``(A) the date on which the original return which
includes the calendar quarter with respect to which
such credit is determined is filed,
``(B) the date on which such return is treated as
filed under section 6501(b)(2), or
``(C) the date on which the claim for credit or
refund with respect to such credit is made.
``(2) Deduction for wages taken into account in determining
improperly claimed credit.--
``(A) In general.--Notwithstanding section 6511, in
the case of an assessment attributable to a credit
claimed under this section, the limitation on the time
period for credit or refund of any amount attributable
to a deduction for improperly claimed ERTC wages shall
not expire before the time period for such assessment
expires under paragraph (1).
``(B) Improperly claimed ertc wages.--For purposes
of this paragraph, the term `improperly claimed ERTC
wages' means, with respect to an assessment
attributable to a credit claimed under this section,
the wages with respect to which a deduction would not
have been allowed if the portion of the credit to which
such assessment relates had been properly claimed.''.
(2) Application to cares act credit.--Section 2301 of the
CARES Act is amended by adding at the end the following new
subsection:
``(o) Extension of Limitation on Assessment.--
``(1) In general.--Notwithstanding section 6501 of the
Internal Revenue Code of 1986, the limitation on the time
period for the assessment of any amount attributable to a
credit claimed under this section shall not expire before the
date that is 6 years after the latest of--
``(A) the date on which the original return which
includes the calendar quarter with respect to which
such credit is determined is filed,
``(B) the date on which such return is treated as
filed under section 6501(b)(2) of such Code, or
``(C) the date on which the claim for credit or
refund with respect to such credit is made.
``(2) Deduction for wages taken into account in determining
improperly claimed credit.--
``(A) In general.--Notwithstanding section 6511 of
such Code, in the case of an assessment attributable to
a credit claimed under this section, the limitation on
the time period for credit or refund of any amount
attributable to a deduction for improperly claimed ERTC
wages shall not expire before the time period for such
assessment expires under paragraph (1).
``(B) Improperly claimed ertc wages.--For purposes
of this paragraph, the term `improperly claimed ERTC
wages' means, with respect to an assessment
attributable to a credit claimed under this section,
the wages with respect to which a deduction would not
have been allowed if the portion of the credit to which
such assessment relates had been properly claimed.''.
(j) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the provisions of this section shall apply to aid,
assistance, and advice provided after March 12, 2020.
(2) Due diligence requirements.--Subsections (b) and (c)
shall apply to aid, assistance, and advice provided after the
date of the enactment of this Act.
(3) Limitation on credit and refund of covid-related
employee retention tax credits.--Subsection (h) shall apply to
credits and refunds allowed or made after the date of the
enactment of this Act.
(4) Amendments to extend limitation on assessment.--The
amendments made by subsection (i) shall apply to assessments
made after the date of the enactment of this Act.
(k) Transition Rule With Respect to Requirements to Disclose
Information, Maintain Client Lists, etc.--Any return under section 6111
of the Internal Revenue Code of 1986, or list under section 6112 of
such Code, required by reason of subsection (d) of this section to be
filed or maintained, respectively, with respect to any aid, assistance,
or advice provided by a COVID-ERTC promoter with respect to a COVID-
ERTC document before the date of the enactment of this Act, shall not
be required to be so filed or maintained (with respect to such aid,
assistance or advice) before the date which is 90 days after the date
of the enactment of this Act.
(l) Provisions Not to Be Construed to Create Negative Inferences.--
(1) No inference with respect to application of knowledge
requirement to pre-enactment conduct of covid-ertc promoters,
etc.--Subsection (b) shall not be construed to create any
inference with respect to the proper application of section
6701(a)(3) of the Internal Revenue Code of 1986 with respect to
any aid, assistance, or advice provided by any COVID-ERTC
promoter on or before the date of the enactment of this Act (or
with respect to any other aid, assistance, or advice to which
such subsection does not apply).
(2) Requirements to disclose information, maintain client
lists, etc.--Subsections (d) and (k) shall not be construed to
create any inference with respect to whether any COVID-related
employee retention tax credit is (without regard to subsection
(d)) a listed transaction (or reportable transaction) with
respect to any COVID-ERTC promoter; and, for purposes of
subsection (k), a return or list shall not be treated as
required (with respect to such aid, assistance, or advice) by
reason of subsection (d) if such return or list would be so
required without regard to subsection (d).
(m) Regulations.--The Secretary (as defined in subsection (c)(5))
shall issue such regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section (and the
amendments made by this section).
SEC. 112206. EARNED INCOME TAX CREDIT REFORMS.
(a) Earned Income Tax Credit Certification Program.--
(1) Establishment of program.--
(A) In general.--Chapter 77 is amended by adding at
the end the following new section:
``SEC. 7531. EARNED INCOME TAX CREDIT CERTIFICATION PROGRAM.
``(a) In General.--To avoid duplicative and other erroneous claims
under section 32 with respect to a child of the taxpayer, for taxable
years beginning after December 31, 2027, the Secretary shall establish
a program under which, on the taxpayer's application with respect to
the child, the Secretary shall issue an EITC certificate for purposes
of section 32 establishing such child's status as a qualifying child
only of the taxpayer for a taxable year.
``(b) Application Requirements.--
``(1) In general.--The Secretary shall not issue to a
taxpayer an EITC certificate with respect to a child for a
taxable year unless the taxpayer applies under the program with
respect to the child and provides such information and
supporting documentation as the Secretary shall by regulation
prescribe as necessary to establish such child as a qualifying
child only of the taxpayer for the taxable year.
``(2) Time and manner of application.--Such application
shall be made, and such information and supporting
documentation shall be provided--
``(A) in such manner as may be provided by the
Secretary for purposes of this section (including
establishing an on-line portal), and
``(B) not later than the due date for the return of
tax for the taxable year or (if later) when the return
is filed.
``(3) Competing claims.--In the case of more than 1
taxpayer making an application with respect to a child under
the program for a taxable year beginning during a calendar
year, the Secretary shall not issue an EITC certificate to any
such taxpayer with respect to such child for such a taxable
year unless the Secretary can establish such child, based on
information and supporting documentation provided under
paragraph (1), as the qualifying child only of one such
taxpayer for such a taxable year.
``(c) Treatment of Credit Without Certification Under Program.--For
taxable years beginning after December 31, 2027--
``(1) In general.--In the case of a taxpayer who takes into
account as a qualifying child under section 32 a child for whom
an EITC certificate has not been issued for the taxable year to
the taxpayer--
``(A) the Secretary shall not credit the portion of
any overpayment for such taxable year that is
attributable to the taxpayer taking into account such
child as a qualifying child, unless the taxpayer
obtains, not later than the due date for the return for
the taxable year, an EITC certificate with respect to
such child for such taxable year, and
``(B) if the taxpayer fails to so obtain an EITC
certificate, such failure shall be treated--
``(i) as an omission of information
required by section 32 with respect to such
child, and
``(ii) as arising out of a mathematical or
clerical error and assessed according to
section 6213(b)(1).
``(2) Termination of certification.--In the case of a
taxpayer who for a taxable year takes into account as a
qualifying child under section 32 a child for whom an EITC
certificate is terminated for such taxable year, such
termination shall be treated in the same manner as a failure to
obtain an EITC certificate under paragraph (1)(B).
``(d) Transition Rules for Taxable Years Beginning Before 2028.--
``(1) In general.--If for any taxable year beginning after
December 31, 2023, and before January 1, 2027, more than 1
taxpayer makes a claim for credit under section 32 taking into
account the same child as a qualifying child, then the
Secretary shall send notice to each such taxpayer (by certified
or registered mail to the last known address of the taxpayer)
detailing the resultant treatment of such taxpayers under
paragraph (2) with respect to such child for any subsequent
taxable years beginning before 2028.
``(2) Subsequent taxable years beginning before 2028.--In
the case of a child with respect to whom paragraph (1) applied
by reason of claims for credit for a taxable year, for any
subsequent taxable years beginning before January 1, 2028--
``(A) subject to subparagraph (B), the Secretary
shall not credit the portion of any overpayment for the
taxable year that is attributable to a taxpayer taking
into account such child as a qualifying child under
section 32 until the 15th day of October following the
end of the taxable year, and
``(B) if more than one taxpayer makes a claim for
such credit for the taxable year taking into account
such child as a qualifying child, so taking such child
into account shall be treated--
``(i) as an omission of information
required by section 32 with respect to such
child, and
``(ii) as arising out of a mathematical or
clerical error and assessed according to
section 6213(b)(1).
``(e) Qualifying Child.--For purposes of this section, the term
`qualifying child' has the meaning given such term under section
32(c)(3).
``(f) Rebuttal of Treatment.--Treatment under subsection (c) or
(d)(2)(B) as having omitted information required by section 32 may be
rebutted by providing such information and supporting documentation as
satisfactorily demonstrates the child is a qualifying child of the
taxpayer for the taxable year.
``(g) Restrictions on Taxpayers Who Improperly Use Program.--
``(1) In general.--A taxpayer shall not be permitted to
apply for an EITC certificate under the program for any taxable
year in the disallowance period.
``(2) Disallowance period.--For purposes of paragraph (1),
the disallowance period is--
``(A) the period of 10 taxable years after the most
recent taxable year for which there was a penalty
imposed under 6720D on the taxpayer (but only if such
penalty has been imposed on such taxpayer more than
once, at least one instance of which was due to fraud
under section 6720D(b)),
``(B) the period of 2 taxable years after the most
recent taxable year for which there was a penalty
imposed under 6720D on the taxpayer (but only if such
penalty has been imposed on such taxpayer more than
once due to reckless or intentional disregard of rules
and regulations (but not imposed due to fraud)), and
``(C) any disallowance period with respect to the
taxpayer under section 32(k)(1).
``(h) Regulations.--The Secretary shall prescribe such rules as may
be necessary or appropriate to carry out the program and purposes of
this section, including--
``(1) a process for establishing alternating taxable year
treatment of a child as a qualifying child under a custodial
arrangement,
``(2) notwithstanding subsection (d)(2), a process for--
``(A) establishing the status of a child as a
qualifying child of the taxpayer under section 32 for
taxable years to which such subsection applies, and
``(B) allowing credit or refunds attributable to
such status,
``(3) a simplified process for re-certifying a child as a
qualifying child only of the taxpayer for a taxable year, and
``(4) a process for terminating EITC certificates in the
case of competing claims with respect to a child or in cases in
which issuance of the certificate is determined by the
Secretary to be erroneous.''.
(B) Conforming amendment.--Section 32 amended by
adding at the end the following new subsection:
``(o) EITC Certificate With Respect to Qualifying Children.--For
rules relating to EITC certificates with respect to qualifying children
and duplicate claims for the credit allowed under this section, see
section 7531.''.
(C) Clerical amendment.--The table of sections for
chapter 77 is amended by adding at the end the
following new item:
``Sec. 7531. Earned income tax credit certification program.''.
(2) Penalties for improper use of eitc certificate
program.--
(A) In general.--Part I of subchapter B of chapter
68 is amended by adding at the end the following new
section:
``SEC. 6720D. PENALTIES WITH RESPECT TO EITC CERTIFICATE PROGRAM.
``(a) Reckless or Intentional Disregard.--If--
``(1) any person makes a material misstatement or
inaccurate representation in an application under section 7531
for an EITC certificate, and
``(2) such misstatement or representation was due to
reckless or intentional disregard of rules and regulations (but
not due to fraud),
such person shall pay a penalty of $100 for each EITC certificate with
respect to which such misstatement or representation was made.
``(b) Fraud.--If a misstatement or representation described in
subsection (a)(1) is due to fraud on the part of the person making such
misstatement or representation, in addition to any criminal penalty,
such person shall pay a penalty of $500 for each EITC certificate with
respect to which such a misstatement or representation was made.''.
(B) Clerical amendment.--The table of sections for
part I of subchapter B of chapter 68 is amended by
adding at the end the following new item:
``Sec. 6720D. Penalties with respect to EITC certificate program.''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2024.
(b) Task Force to Design a Private Data Bouncing System for
Improvements to the Earned Income Tax Credit.--Out of any money in the
Treasury not otherwise appropriated, there is hereby appropriated
$10,000,000 for the fiscal year ending on September 30, 2026, for
necessary expenses of the Department of the Treasury, to establish,
within 90 days following the date of the enactment of this Act, a task
force to provide to the Secretary of the Treasury a report on the
following with respect to the administration of the earned income tax
credit:
(1) Recommendations for improvement of the integrity of
such administration.
(2) The potential use of third-party payroll and
consumption datasets to verify income.
(3) The integration of automated databases to allow
horizontal verification to reduce improper payments, fraud, and
abuse.
(c) Increased Earned Income Tax Credit for Purple Heart Recipients
Whose Social Security Disability Benefits Are Terminated by Reason of
Work Activity.--
(1) In general.--Section 32, as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new subsection:
``(p) Increase in Credit for Purple Heart Recipients Whose Social
Security Disability Benefits Are Terminated by Reason of Work
Activity.--
``(1) In general.--In the case of a specified Purple Heart
recipient, the credit otherwise determined under subsection (a)
for the taxable year shall be increased (whether or not such
specified Purple Heart recipient is an eligible individual) by
the sum of the SSDI benefit substitution amounts with respect
to qualified benefit termination months during such taxable
year.
``(2) Specified purple heart recipient.--For purposes of
this subsection, the term `specified Purple Heart recipient'
means any individual--
``(A) who received the Purple Heart,
``(B) who received disability insurance benefit
payments under section 223(a) of the Social Security
Act, and
``(C) with respect to whom such disability
insurance benefit payments ceased to be payable by
reason of section 223(e)(1) of such Act.
``(3) Qualified benefit termination month.--For purposes of
this subsection--
``(A) In general.--The term `qualified benefit
termination month' means, with respect to any specified
Purple Heart recipient, each month during the 12-month
period beginning with the first month with respect to
which disability insurance benefit payments described
in paragraph (2)(B) ceased to be payable as described
in paragraph (2)(C).
``(B) Exception for months for which benefits are
reinstated, etc.--Such term shall not include any month
if the specified Purple Heart recipient receives any
benefit payment under section 223(a) of the Social
Security Act with respect to such month.
``(4) SSDI benefit substitution amount.--For purposes of
this subsection, the term `SSDI benefit substitution amount'
means, with respect to specified Purple Heart recipient for any
qualified benefit termination month, an amount equal to the
disability insurance benefit payment received by such recipient
under section 223(a) of the Social Security Act for the month
immediately preceding the 12-month period described in
paragraph (3)(A).
``(5) Certain eitc limitations not applicable.--Subsections
(a)(2), (d), (e), (f), and (i) shall not apply with respect to
the increase under paragraph (1).''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 112207. TASK FORCE ON THE TERMINATION OF DIRECT FILE.
(a) Termination of Direct File.--As soon as practicable, and not
later than 30 days after the date of the enactment of this Act, the
Secretary of the Treasury shall ensure that the Internal Revenue
Service Direct File program has been terminated.
(b) Appropriation for Task Force to Design a Better Public-private
Partnership Between the IRS and Private Sector Tax Preparation Services
to Provide for Free Tax Filing to Replace the Existing ``Free File''
Program and Any ``Direct Efile'' Tax Return System.--Out of any money
in the Treasury not otherwise appropriated, there is hereby
appropriated for the fiscal year ending September 30, 2026, for
necessary expenses of the Department of the Treasury to deliver to
Congress, within 90 days following the date of the enactment of this
Act, a report on (1) the cost of a new public-private partnership to
provide for free tax filing for up to 70 percent of all taxpayers
calculated by adjusted gross income to replace free file and any IRS-
run direct file programs; (2) taxpayer opinions and preferences
regarding a taxpayer-funded, government-run service or a free service
provided by the private sector; and (3) assessment of the feasibility
of a new approach, how to make the options consistent and simple for
taxpayers across all participating providers, how to provide features
to address taxpayer needs, and how much money should be appropriated to
advertise the new option, $15,000,000, to remain available until
September 30, 2026.
SEC. 112208. POSTPONEMENT OF TAX DEADLINES FOR HOSTAGES AND INDIVIDUALS
WRONGFULLY DETAINED ABROAD.
(a) Prospective Relief.--
(1) In general.--Chapter 77 is amended by inserting after
section 7510 the following new section:
``SEC. 7511. TIME FOR PERFORMING CERTAIN ACTS POSTPONED FOR HOSTAGES
AND INDIVIDUALS WRONGFULLY DETAINED ABROAD.
``(a) Time To Be Disregarded.--
``(1) In general.--The period during which an applicable
individual was unlawfully or wrongfully detained abroad, or
held hostage abroad, shall be disregarded in determining, under
the internal revenue laws, in respect of any tax liability of
such individual--
``(A) whether any of the acts described in section
7508(a)(1) were performed within the time prescribed
thereof (determined without regard to extension under
any other provision of this subtitle for periods after
the initial date (as determined by the Secretary) on
which such individual was unlawfully or wrongfully
detained abroad or held hostage abroad),
``(B) the amount of any interest, penalty,
additional amount, or addition to the tax for periods
after such date, and
``(C) the amount of any credit or refund.
``(2) Application to spouse.--The provisions of paragraph
(1) shall apply to the spouse of any individual entitled to the
benefits of such paragraph.
``(b) Applicable Individual.--
``(1) In general.--For purposes of this section, the term
`applicable individual' means any individual who is--
``(A) a United States national unlawfully or
wrongfully detained abroad, as determined under section
302 of the Robert Levinson Hostage Recovery and
Hostage-Taking Accountability Act (22 U.S.C. 1741), or
``(B) a United States national taken hostage
abroad, as determined pursuant to the findings of the
Hostage Recovery Fusion Cell (as described in section
304 of the Robert Levinson Hostage Recovery and
Hostage-Taking Accountability Act (22 U.S.C. 1741b)).
``(2) Information provided to treasury.--For purposes of
identifying individuals described in paragraph (1), not later
than January 1, 2026, and annually thereafter--
``(A) the Secretary of State shall provide the
Secretary with a list of the individuals described in
paragraph (1)(A), as well as any other information
necessary to identify such individuals, and
``(B) the Attorney General, acting through the
Hostage Recovery Fusion Cell, shall provide the
Secretary with a list of the individuals described in
paragraph (1)(B), as well as any other information
necessary to identify such individuals.
``(c) Special Rule for Overpayments.--
``(1) In general.--Subsection (a) shall not apply for
purposes of determining the amount of interest on any
overpayment of tax.
``(2) Special rules.--If an individual is entitled to the
benefits of subsection (a) with respect to any return and such
return is timely filed (determined after the application of
such subsection), subsections (b)(3) and (e) of section 6611
shall not apply.
``(d) Modification of Treasury Databases and Information Systems.--
The Secretary shall ensure that databases and information systems of
the Department of the Treasury are updated as necessary to ensure that
statute expiration dates, interest and penalty accrual, and collection
activities are suspended consistent with the application of subsection
(a).
``(e) Refund and Abatement of Penalties and Fines Imposed Prior to
Identification as Applicable Individual.--In the case of any applicable
individual--
``(1) for whom any interest, penalty, additional amount, or
addition to the tax in respect to any tax liability for any
taxable year ending during the period described in subsection
(a)(1) was assessed or collected, and
``(2) who was, subsequent to such assessment or collection,
determined to be an individual described in subparagraph (A) or
(B) of subsection (b)(1),
the Secretary shall abate any such assessment and refund any amount
collected to such applicable individual in the same manner as any
refund of an overpayment of tax under section 6402.''.
(2) Clerical amendment.--The table of sections for chapter
77 is amended by inserting after the item relating to section
7510 the following new item:
``Sec. 7511. Time for performing certain acts postponed for hostages
and individuals wrongfully detained
abroad.''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years ending after the date of enactment
of this Act.
(b) Refund and Abatement of Penalties and Fines Paid by Eligible
Individuals.--
(1) In general.--Section 7511, as added by subsection (a),
is amended by adding at the end the following new subsection:
``(f) Refund and Abatement of Penalties and Fines Paid by Eligible
Individuals With Respect to Periods Prior to Date of Enactment of This
Section.--
``(1) In general.--
``(A) Establishment.--Not later than January 1,
2026, the Secretary (in consultation with the Secretary
of State and the Attorney General) shall establish a
program to allow any eligible individual (or the spouse
or any dependent (as defined in section 152) of such
individual) to apply for a refund or an abatement of
any amount described in paragraph (2) (including
interest) to the extent such amount was attributable to
the applicable period.
``(B) Identification of individuals.--Not later
than January 1, 2026, the Secretary of State and the
Attorney General, acting through the Hostage Recovery
Fusion Cell (as described in section 304 of the Robert
Levinson Hostage Recovery and Hostage-Taking
Accountability Act (22 U.S.C. 1741b)), shall--
``(i) compile a list, based on such
information as is available, of individuals who
were applicable individuals during the
applicable period, and
``(ii) provide the list described in clause
(i) to the Secretary.
``(C) Notice.--For purposes of carrying out the
program described in subparagraph (A), the Secretary
(in consultation with the Secretary of State and the
Attorney General) shall, with respect to any individual
identified under subparagraph (B), provide notice to
such individual--
``(i) in the case of an individual who has
been released on or before the date of
enactment of this subsection, not later than 90
days after the date of enactment of this
subsection, or
``(ii) in the case of an individual who is
released after the date of enactment of this
subsection, not later than 90 days after the
date on which such individual is released,
that such individual may be eligible for a refund or an
abatement of any amount described in paragraph (2)
pursuant to the program described in subparagraph (A).
``(D) Authorization.--
``(i) In general.--Subject to clause (ii),
in the case of any refund described in
subparagraph (A), the Secretary shall issue
such refund to the eligible individual in the
same manner as any refund of an overpayment of
tax.
``(ii) Extension of limitation on time for
refund.--With respect to any refund under
subparagraph (A)--
``(I) the 3-year period of
limitation prescribed by section
6511(a) shall be extended until the end
of the 1-year period beginning on the
date that the notice described in
subparagraph (C) is provided to the
eligible individual, and
``(II) any limitation under section
6511(b)(2) shall not apply.
``(2) Eligible individual.--For purposes of this
subsection, the term `eligible individual' means any applicable
individual who, for any taxable year ending during the
applicable period, paid or incurred any interest, penalty,
additional amount, or addition to the tax in respect to any tax
liability for such year of such individual based on a
determination that an act described in section 7508(a)(1) which
was not performed by the time prescribed therefor (without
regard to any extensions).
``(3) Applicable period.--For purposes of this subsection,
the term `applicable period' means the period--
``(A) beginning on January 1, 2021, and
``(B) ending on the date of enactment of this
subsection.''.
(2) Effective date.--The amendment made by this section
shall apply to taxable years ending on or before the date of
enactment of this Act.
SEC. 112209. TERMINATION OF TAX-EXEMPT STATUS OF TERRORIST SUPPORTING
ORGANIZATIONS.
(a) In General.--Section 501(p) is amended by adding at the end the
following new paragraph:
``(8) Application to terrorist supporting organizations.--
``(A) In general.--For purposes of this subsection,
in the case of any terrorist supporting organization--
``(i) such organization (and the
designation of such organization under
subparagraph (B)) shall be treated as described
in paragraph (2), and
``(ii) the period of suspension described
in paragraph (3) with respect to such
organization shall be treated as beginning on
the date that the Secretary designates such
organization under subparagraph (B) and ending
on the date that the Secretary rescinds such
designation under subparagraph (D).
``(B) Terrorist supporting organization.--For
purposes of this paragraph--
``(i) In general.--the term `terrorist
supporting organization' means any organization
which is designated by the Secretary as having
provided, during the 3-year period ending on
the date of such designation, material support
or resources to an organization described in
paragraph (2) (determined after the application
of this paragraph to such organization) in
excess of a de minimis amount.
``(ii) Material support or resources.--The
term `material support or resources' has the
meaning given such term in subsection (g)(4) of
section 2339B of title 18, United States Code,
except that such term shall not include--
``(I) support or resources that
were approved by the Secretary of State
with the concurrence of the Attorney
General for purposes of subsection (j)
of such section, or
``(II) humanitarian aid provided
with the approval of the Office of
Foreign Assets Control.
``(C) Designation procedure.--
``(i) Notice requirement.--Prior to
designating any organization as a terrorist
supporting organization under subparagraph (B),
the Secretary shall mail to the most recent
mailing address provided by such organization
on the organization's annual return or notice
under section 6033 (or subsequent form
indicating a change of address) a written
notice which includes--
``(I) a statement that the
Secretary will designate such
organization as a terrorist supporting
organization unless the organization
satisfies the requirements of subclause
(I) or (II) of clause (ii),
``(II) the name of the organization
or organizations with respect to which
the Secretary has determined such
organization provided material support
or sources as described in subparagraph
(B),
``(III) a description of such
material support or resources except to
the extent that the Secretary
determines that disclosure of such
description would be inconsistent with
national security or law enforcement
interests, and
``(IV) if the Secretary makes the
determination described in subclause
(III), a statement that the Secretary
has made such determination and that
all or part of the description of such
material support or resources is not
included in such notice by reason of
such determination.
``(ii) Opportunity to cure.--In the case of
any notice provided to an organization under
clause (i), the Secretary shall, at the close
of the 90-day period beginning on the date that
such notice was sent, designate such
organization as a terrorist supporting
organization under subparagraph (B) if (and
only if) such organization has not (during such
period)--
``(I) demonstrated to the
satisfaction of the Secretary that such
organization did not provide the
material support or resources referred
to in subparagraph (B),
``(II) made reasonable efforts to
have such support or resources returned
to such organization and certified in
writing to the Secretary that such
organization will not provide any
further support or resources to
organizations described in paragraph
(2), or
``(III) if such notice included a
statement described in clause (i)(IV),
filed a complaint with a United States
district court of competent
jurisdiction alleging that Secretary's
determination under clause (i)(III) is
erroneous.
A certification under subclause (II) shall not
be treated as valid if the organization making
such certification has provided any other such
certification during the preceding 5 years.
``(iii) Application of opportunity to cure
following complaint regarding determination to
withhold description of material support or
resources.--In the case of a final judgment of
a court of competent jurisdiction that the
Secretary's determination under clause (i)(III)
was not erroneous, clause (ii) shall be applied
without regard to subclause (III) thereof and
as though the notice referred to in such clause
was sent on the first date that all rights of
appeal with respect to such final judgement
have concluded.
``(D) Rescission.--The Secretary shall rescind a
designation under subparagraph (B) if (and only if)--
``(i) the Secretary determines that such
designation was erroneous,
``(ii) after the Secretary receives a
written certification from an organization that
such organization did not receive the notice
described in subparagraph (C)(i)--
``(I) the Secretary determines that
it is reasonable to believe that such
organization did not receive such
notice, and
``(II) such organization satisfies
the requirements of subclause (I) or
(II) of subparagraph (C)(ii)
(determined after taking into account
the last sentence thereof), or
``(iii) the Secretary determines, with
respect to all organizations to which the
material support or resources referred to in
subparagraph (B) were provided, the periods of
suspension under paragraph (3) have ended.
A certification described in the matter preceding
subclause (I) of clause (ii) shall not be treated as
valid if the organization making such certification has
provided any other such certification during the
preceding 5 years.
``(E) Administrative review by internal revenue
service independent office of appeals.--In the case of
the designation of an organization by the Secretary as
a terrorist supporting organization under subparagraph
(B), a dispute regarding such designation shall be
subject to resolution by the Internal Revenue Service
Independent Office of Appeals under section 7803(e) in
the same manner as if such designation were made by the
Internal Revenue Service and paragraph (5) of this
subsection did not apply.
``(F) Jurisdiction of united states courts.--
Notwithstanding paragraph (5), the United States
district courts shall have exclusive jurisdiction to
review any determination of the Secretary under
subparagraph (C)(i)(III) and any final determination
with respect to an organization's designation as a
terrorist supporting organization under subparagraph
(B). In the case of any such determination which was
based on classified information (as defined in section
1(a) of the Classified Information Procedures Act),
such information may be submitted to the reviewing
court ex parte and in camera. For purposes of this
subparagraph, a determination with respect to an
organization's designation as a terrorist supporting
organization shall not fail to be treated as a final
determination merely because such organization fails to
utilize the dispute resolution process of the Internal
Revenue Service Independent Office of Appeals provided
under subparagraph (E).
``(G) Classified information.--The Secretary shall
establish policies and procedures for purposes of this
paragraph that ensure that employees of the Department
of the Treasury comply with all laws regarding the
handling and review of classified information (as
defined in section 1(a) of the Classified Information
Procedures Act).''.
(b) Effective Date.--The amendment made by this section shall apply
to designations made after the date of the enactment of this Act in
taxable years ending after such date.
SEC. 112210. INCREASE IN PENALTIES FOR UNAUTHORIZED DISCLOSURES OF
TAXPAYER INFORMATION.
(a) In General.--Paragraphs (1), (2), (3), (4), and (5) of section
7213(a) are each amended by striking ``$5,000, or imprisonment of not
more than 5 years'' and inserting ``$250,000, or imprisonment of not
more than 10 years''.
(b) Disclosures of Return Information of Multiple Taxpayers Treated
as Multiple Violations.--Section 7213(a) is amended by adding at the
end the following new paragraph:
``(6) Disclosures of return information of multiple
taxpayers treated as multiple violations.--For purposes of this
subsection, a separate violation occurs with respect to each
taxpayer whose return or return information is disclosed in
violation of this subsection.''.
(c) Effective Date.--The amendments made by this section shall
apply to disclosures made after the date of the enactment of this Act.
SEC. 112211. RESTRICTION ON REGULATION OF CONTINGENCY FEES WITH RESPECT
TO TAX RETURNS, ETC.
The Secretary of the Treasury may not regulate, prohibit, or
restrict the use of a contingent fee in connection with tax returns,
claims for refund, or documents in connection with tax returns or
claims for refund prepared on behalf of a taxpayer.
Subtitle D--Increase in Debt Limit
SEC. 113001. MODIFICATION OF LIMITATION ON THE PUBLIC DEBT.
The limitation under section 3101(b) of title 31, United States
Code, as most recently increased by section 401(b) of Public Law 118-5
(31 U.S.C. 3101 note), is increased by $4,000,000,000,000.
Union Calendar No. 78
119th CONGRESS
1st Session
H. R. 1
[Report No. 119-106]
_______________________________________________________________________
A BILL
To provide for reconciliation pursuant to title II of H. Con. Res. 14.
_______________________________________________________________________
May 20, 2025
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed